Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 09, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | CLEARSIGN COMBUSTION CORP | |
Entity Central Index Key | 1,434,524 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | CLIR | |
Entity Common Stock, Shares Outstanding | 15,606,353 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Cash and cash equivalents | $ 3,511,000 | $ 1,259,000 |
Accounts receivable | 0 | 103,000 |
Contract assets | 126,000 | 0 |
Prepaid expenses and other assets | 575,000 | 535,000 |
Total current assets | 4,212,000 | 1,897,000 |
Fixed assets, net | 554,000 | 644,000 |
Patents and other intangible assets, net | 1,836,000 | 1,735,000 |
Other assets | 10,000 | 10,000 |
Total Assets | 6,612,000 | 4,286,000 |
Current Liabilities: | ||
Accounts payable and accrued liabilities | 863,000 | 755,000 |
Current portion of lease liabilities | 157,000 | 150,000 |
Accrued compensation and taxes | 501,000 | 669,000 |
Contract liabilities | 0 | 115,000 |
Total current liabilities | 1,521,000 | 1,689,000 |
Long Term Liabilities: | ||
Long term lease liabilities | 235,000 | 353,000 |
Deferred rent | 0 | 0 |
Total liabilities | 1,756,000 | 2,042,000 |
Commitments | ||
Stockholders’ Equity: | ||
Preferred stock, $0.0001 par value, zero shares issued and outstanding | 0 | 0 |
Common stock, $0.0001 par value, 15,606,353 and 12,983,938 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively | 2,000 | 1,000 |
Additional paid-in capital | 52,272,000 | 42,574,000 |
Accumulated deficit | (47,418,000) | (40,331,000) |
Total stockholders’ equity | 4,856,000 | 2,244,000 |
Total Liabilities and Stockholders’ Equity | $ 6,612,000 | $ 4,286,000 |
Condensed Balance Sheets _Paren
Condensed Balance Sheets [Parenthetical] - $ / shares | Sep. 30, 2017 | Dec. 31, 2016 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares issued | 15,606,353 | 12,983,938 |
Common stock, shares outstanding | 15,606,353 | 12,983,938 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Sales | $ 0 | $ 260,000 | $ 360,000 | $ 260,000 |
Cost of goods sold | 15,000 | 47,000 | 266,000 | 47,000 |
Gross profit | (15,000) | 213,000 | 94,000 | 213,000 |
Operating expenses: | ||||
Research and development | 1,329,000 | 1,226,000 | 3,644,000 | 3,767,000 |
General and administrative | 1,131,000 | 2,840,000 | 3,569,000 | 5,342,000 |
Total operating expenses | 2,460,000 | 4,066,000 | 7,213,000 | 9,109,000 |
Loss from operations | (2,475,000) | (3,853,000) | (7,119,000) | (8,896,000) |
Other income: | ||||
Interest income | 3,000 | 7,000 | 32,000 | 30,000 |
Net Loss | $ (2,472,000) | $ (3,846,000) | $ (7,087,000) | $ (8,866,000) |
Net Loss per share - basic and fully diluted | $ (0.16) | $ (0.3) | $ (0.46) | $ (0.69) |
Weighted average number of shares outstanding - basic and fully diluted | 15,603,880 | 12,957,029 | 15,358,655 | 12,914,665 |
Statement of Stockholders' Equi
Statement of Stockholders' Equity - 9 months ended Sep. 30, 2017 - USD ($) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balances at Dec. 31, 2016 | $ 2,244,000 | $ 1,000 | $ 42,574,000 | $ (40,331,000) |
Balances (in shares) at Dec. 31, 2016 | 12,983,938 | |||
Shares issued in rights offering ($3.03 per share) | 7,258,000 | $ 1,000 | 7,257,000 | 0 |
Shares issued in rights offering ($3.03 per share) (In shares) | 2,395,471 | |||
Warrants issued in rights offering ($0.97 per warrant) | 2,324,000 | $ 0 | 2,324,000 | 0 |
Issuance costs of rights offering | (915,000) | 0 | (915,000) | 0 |
Shares issued in payment of accrued compensation ($3.60 per share) | 490,000 | $ 0 | 490,000 | 0 |
Shares issued in payment of accrued compensation ($3.60 per share) (In shares) | 136,110 | |||
Shares issued for services ($4.85 per share) | 24,000 | $ 0 | 24,000 | 0 |
Shares issued for services ($4.85 per share) (in shares) | 5,000 | |||
Shares issued for services ($3.50 per share) | 9,000 | $ 0 | 9,000 | 0 |
Shares issued for services ($3.50 per share)(in shares) | 2,500 | |||
Shares issued for 2017 board services ($3.60 per share) | 0 | $ 0 | 0 | 0 |
Shares issued for 2017 board services ($3.60 per share) (In shares) | 83,334 | |||
Share based compensation | 509,000 | $ 0 | 509,000 | 0 |
Net loss | (7,087,000) | 0 | 0 | (7,087,000) |
Balances at Sep. 30, 2017 | $ 4,856,000 | $ 2,000 | $ 52,272,000 | $ (47,418,000) |
Balances (in shares) at Sep. 30, 2017 | 15,606,353 |
Statement of Stockholders' Equ6
Statement of Stockholders' Equity [Parenthetical] | 9 Months Ended |
Sep. 30, 2017$ / shares | |
Stock issued during period par value exercise of options one | $ 4.85 |
Stock issued during period par value exercise of options two | 3.50 |
Stock Issued During Period Rights Offering Per Share | 3.03 |
Warrants Issued During Period Rights Offering Per Share | 0.97 |
Stock Issued During Period In Payment Of Accrued Compensation Per Share | 3.60 |
Stock Issued During Period 2017 Board Services Per Share | $ 3.60 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (7,087,000) | $ (8,866,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Common stock issued for services | 258,000 | 144,000 |
Share based payments | 284,000 | 492,000 |
Depreciation and amortization | 209,000 | 139,000 |
Amortization of right of use asset | 119,000 | 106,000 |
Payments of lease liabilities | (111,000) | (106,000) |
Abandonment and impairment of capitalized patents pending | 0 | 1,971,000 |
Other | 0 | (13,000) |
Change in operating assets and liabilities: | ||
Contract assets | (126,000) | (144,000) |
Accounts receivable | 103,000 | 0 |
Prepaid expenses and other assets | (40,000) | (287,000) |
Accounts payable and accrued liabilities | 108,000 | 89,000 |
Accrued compensation and taxes | 322,000 | (260,000) |
Contract liabilities | (115,000) | 318,000 |
Net cash used in operating activities | (6,076,000) | (6,417,000) |
Cash flows from investing activities: | ||
Acquisition of fixed assets | (89,000) | (176,000) |
Disbursements for patents and other intangible assets | (250,000) | (834,000) |
Net cash used in investing activities | (339,000) | (1,010,000) |
Cash flows from financing activities: | ||
Proceeds from issuance of units of common stock and warrants for cash, net of offering costs | 8,667,000 | 0 |
Net cash provided by financing activities | 8,667,000 | 0 |
Net increase (decrease) in cash and cash equivalents | 2,252,000 | (7,427,000) |
Cash and cash equivalents, beginning of period | 1,259,000 | 10,985,000 |
Cash and cash equivalents, end of period | $ 3,511,000 | $ 3,558,000 |
Condensed Statements of Cash F8
Condensed Statements of Cash Flows [Parenthetical] - USD ($) | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Supplemental disclosure of non-cash operating activities: | |||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 136,110 | ||
Due to Officers or Stockholders, Current | $ 490,000 | ||
Employee Stock Option [Member] | |||
Supplemental disclosure of non-cash operating activities: | |||
Stock Issued During Period, Shares, Other | 60,883 | ||
Share-based Compensation Warrant Exercised | 118,959 | ||
Employee Stock Option [Member] | Minimum [Member] | |||
Supplemental disclosure of non-cash operating activities: | |||
Shares Issued, Price Per Share | $ 2.20 | ||
Employee Stock Option [Member] | Maximum [Member] | |||
Supplemental disclosure of non-cash operating activities: | |||
Shares Issued, Price Per Share | $ 4.51 |
Organization and Description of
Organization and Description of Business | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Organization, Consolidation, Basis Of Presentation, Business Description and Accounting Policies [Text Block] | Note 1 Organization and Description of Business ClearSign Combustion Corporation (ClearSign or the Company) designs and is developing technologies for the purpose of improving key performance characteristics of combustion systems, including emission and operational performance, energy efficiency and overall cost-effectiveness. The Company’s primary technology is its Duplex technology, which achieves very low emissions without the need of external flue gas recirculation, selective catalytic reduction, or higher excess air operation. Its other technology, Electrodynamic Combustion Control or ECC, introduces a computer-controlled electric field into the combustion region which may better control gas-phase chemical reactions and improve system performance and cost-effectiveness. The Company is headquartered in Seattle, Washington and was incorporated in the state of Washington in 2008. Going Concern The Company’s financial statements have been presented on the basis that it is a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company’s Duplex technology is currently in various states of commercial application regarding in three of the Company’s target markets and has generated nominal revenues from operations to date. Results are encouraging but the Company continues to further refine and expand our Duplex technology range. The Company’s ECC technology is in development stage and the Company has not had any commercial application of ECC technology to date. In order to generate meaningful revenues, one of the technologies must be fully developed, gain market recognition and acceptance, and develop a critical level of successful sales and product installations. The Company has incurred losses since its inception totaling $ 47,418,000 3,511,000 Management believes that the successful growth and operation of the Company’s business is dependent upon its ability to obtain adequate sources of funding through equity or debt financing, co-development agreements or strategic partnering agreements to adequately support research and development efforts, protect intellectual property, form relationships with strategic partners, and provide for working capital and general corporate purposes. Management has made estimates of future results of operations, using a wide range of assumptions regarding the level of revenue generated, operating expenses incurred, and future cash flows from financing activities and is working to execute these plans. While historically the Company has had success in raising capital, there can be no assurances that the Company will raise the necessary capital in the short-term in order to fund operations beyond the first quarter of 2018. Furthermore, there can be no assurance that the Company will be successful in achieving its long-term plans, or that such plans, if consummated, will enable the Company to obtain profitable operations or continue in the long-term as a going |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Note 2 Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The condensed balance sheet at December 31, 2016 has been derived from the Company’s audited financial statements. In the opinion of management, these financial statements reflect all normal recurring and other adjustments necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition, Cost of Sales and Change in Accounting Principle In September 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 (ASU No. 2014-09) regarding revenue recognition. The new standard provides authoritative guidance clarifying the principles for recognizing revenue and developing a common revenue standard for U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services. Additionally, the guidance requires improved disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. It is effective January 1, 2018 and early adoption is permitted. Management has elected early adoption of this standard to minimize the eventual cost of implementation. The Company previously accounted for revenues from design and installation of its products on the completed contract method. Revenues from contracts and related costs of goods sold were recognized once the contract was completed or substantially completed. Contract costs included all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, and depreciation costs. Provisions for estimated losses on uncompleted contracts were made in the period in which such losses were determined. The Company retroactively adopted ASU No. 2014-09 effective January 1, 2017. The Company reviewed each contract to identify contract rights, performance obligations, and transaction prices, including the allocation of prices to separate performance obligations. Revenues and costs of sales are recognized once the goods or services are delivered to the customer’s control and performance obligations are satisfied. Typically, the Company’s customer contracts include performance obligations related to emission levels or other metrics that are measured at project completion. Management analyzed prior year revenue recognition made under the completed contract method and determined that no changes in the previously reported financial statements were required. Management elected to not apply the practical expedients in the adoption of ASU No. 2014-09. The Company’s contracts with customers have performance obligations regarding air emissions and operational performance that are satisfied upon completion of service. Since this is the singular performance obligation and cannot be achieved until the air emissions and operational performance have been successfully tested, revenue related to the contracts is recognized upon project completion. The Company’s contracts generally include progress payments from the customer upon completion of defined milestones. As these payments are received they are offset against accumulated project costs and recorded as either Contract assets or Contract liabilities. Upon completion of the performance obligations and acceptance by the customer the projects can be recorded as revenue. The Company did not recognize any revenue from contracts during the quarter ended September 30, 2017. The Company recognized revenue of $ 360,000 The Company’s Product Warranties The Company warrants all installed products against defects in materials and workmanship for a period specified in each contract by replacing failed parts. Accruals for product warranties are based on historical warranty experience and current product performance trends, and are recorded at the time revenue is recognized as a component of cost of sales. The warranty liabilities are reduced by material and labor costs used to replace parts over the warranty period in the periods in which the costs are incurred. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary, and such adjustments could be material in the future if estimates differ significantly from actual warranty expense. The warranty liabilities are included in accrued liabilities in the balance sheets. Cash and Cash Equivalents Highly liquid investments purchased with an original maturity of three months or less are considered cash equivalents. Cash is maintained with a commercial bank where accounts are generally guaranteed by the Federal Deposit Insurance Corporation up to $ 250,000 Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount. An allowance for doubtful accounts is established, as necessary, based on past experience and other factors which, in management’s judgment, deserve current recognition in estimating bad debts. The determination of the collectability of amounts due from customer accounts requires the Company to make judgments regarding future events and trends. Allowances for doubtful accounts are determined based on assessing the Company’s portfolio on an individual customer and on an overall basis. This process consists of a review of historical collection experience, current aging status of the customer accounts, and the financial condition of the Company’s customers. Based on a review of these factors, the Company may establish or adjust the allowance for specific customers and the accounts receivable portfolio as a whole. Fixed Assets and Change in Accounting Principle for Leases Fixed assets are recorded at cost. As disclosed in Note 3, in 2017 the Company retroactively adopted Accounting Standards Update No. 2016-02 (ASU No. 2016-02) regarding leases. For those leases with a term greater than one year, the Company recognizes on the balance sheet at the time of lease inception or modification a right-of-use asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the income statement over the lease term on a straight-line basis. Operating leases with a term of 1 year or less (short-term leases) are recognized on a straight line basis over the term. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the life of the lease or their useful life, whichever is shorter. All other fixed assets are depreciated over two to four years. Maintenance and repairs are expensed as incurred. Patents and Trademarks Patents and trademarks are recorded at cost. Amortization is computed using the straight-line method over the estimated useful lives of the assets once they are awarded. Impairment of Long-Lived Assets The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the long-lived assets. Fair value is determined based on the present value of estimated expected cash flows using a discount rate commensurate with the risks involved, quoted market prices, or appraised values depending upon the nature of the assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair values are reduced for the cost of disposal. Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to establish fair value are the following: ⋅ Level 1 Quoted prices in active markets for identical assets or liabilities, ⋅ Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and ⋅ Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s In adopting ASU 2016-02 as described in Note 3, the Company recorded lease liabilities for the estimated present value of the lease payments under the lease agreements. The Company determined the interest rate based on an estimated incremental borrowing rate. The lease liabilities are classified within Level 3. The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value. Research and Development The cost of research and development is expensed as incurred. Research and development costs consist of salaries, benefits, share-based compensation, consulting fees, rent, utilities, depreciation, and consumables. Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Tax benefits from a tax position are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution. Share-Based Compensation The costs of all employee stock options, as well as other equity-based compensation arrangements, are reflected in the financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Share-based compensation for shares granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured. Basic loss per share is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive. At September 30, 2017 and 2016, potentially dilutive shares outstanding amounted to 3,474,094 1,335,363 In connection with the January 2017 rights offering (see Note 6), the Company evaluated the financial impact of FASB ASC 260, “Earnings per Share,” which states, among other things, that if a rights issue is offered to all existing stockholders at an exercise price that is less than the fair value of the stock, then the weighted average shares outstanding and basic and diluted earnings per share shall be adjusted retroactively to reflect the bonus element of the rights offering for all periods presented. The Company determined that the application of this specific provision of ASC 260 was immaterial to previously issued financial statements and, therefore, did not retroactively adjust previously reported weighted average shares outstanding and basic and diluted earnings per share. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. Emerging Growth Company The Company is an emerging growth company as defined under the Jumpstart Our Business Startups Act of 2012 (JOBS Act). An emerging growth company may delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company will remain an emerging growth company until December 31, 2017, although it will lose that status sooner if its revenues exceed $ 1.07 1 700 57 |
Fixed Assets
Fixed Assets | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 3 Fixed Assets September 30, December 31, 2017 2016 (unaudited) Machinery and equipment $ 801,000 $ 662,000 Office furniture and equipment 163,000 141,000 Leasehold improvements 145,000 134,000 Right of use asset-operating leases 518,000 518,000 Accumulated depreciation and amortization (1,073,000) (894,000) 554,000 561,000 Construction in progress - 83,000 $ 554,000 $ 644,000 In February 2016, the Financial Accounting Standards Board issued ASU No. 2016-02 regarding leases for the purpose of providing more comprehensive and standardized presentation of an entity’s cost of property essential to its operations and its related funding. The new standard requires lessee recognition on the balance sheet of a right-of-use asset and a lease liability, initially measured at the present value of the lease payments. It further requires recognition in the income statement of a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis. Finally, it requires classification of all cash payments within operating activities in the statements of cash flows. It is effective for fiscal years commencing after December 15, 2018 and early adoption is permitted. Management has elected early adoption of this standard to minimize the eventual cost of implementation. The Company has a triple net operating lease for office and laboratory space in Seattle, Washington through March 2020. This lease was modified in November 2016 to extend its term from February 2017 to March 2020. Rent escalated annually by 3 12,000 2,000 With the retroactive adoption of ASU No. 2016-02, the new lease standard was applied to the Tulsa lease in September 2016, the commencement of the lease term, and to the Seattle lease in November 2016, the time of the lease modification. A leasehold interest and corresponding lease liability was recognized related to the Tulsa lease and the Seattle lease retroactively in 2016 in the amounts of $ 71,000 447,000 5 19,000 17,000 For the three months ended For the nine months ended 2017 2016 2017 2016 Lease cost: Operating lease cost $ 54,000 $ 42,000 $ 161,000 $ 122,000 Short-term lease cost 40,000 4,000 47,000 21,000 Total lease cost $ 94,000 $ 46,000 $ 208,000 $ 143,000 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 129,000 Right-of-use assets obtained in exchange for new operating lease liabilities For operating lease: Weighted average remaining lease term (in years) 2.43 Weighted average discount rate 5.00 % Payments due Discounted lease under lease liability payments agreements 2017 $ 38,000 $ 43,000 2018 159,000 173,000 2019 158,000 164,000 2020 37,000 37,000 Total $ 392,000 $ 417,000 |
Patents and Other Intangible As
Patents and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Disclosure [Text Block] | Note 4 Patents and Other Intangible Assets September 30, December 31, 2017 2016 (unaudited) Patents Patents pending $ 1,163,000 $ 1,040,000 Issued patents 862,000 747,000 2,025,000 1,787,000 Trademarks Trademarks pending 36,000 23,000 Registered trademarks 23,000 23,000 59,000 46,000 Other 8,000 8,000 2,092,000 1,841,000 Accumulated amortization (256,000) (106,000) $ 1,836,000 $ 1,735,000 During the three and nine months ended September 30, 2017 and 2016, the Company recorded impairment losses of $ 0 0 1,739,000 1,971,000 2017 $ 54,000 2018 215,000 2019 193,000 2020 109,000 2021 38,000 Thereafter 29,000 $ 638,000 |
Sales, Contract Assets and Cont
Sales, Contract Assets and Contract Liabilities | 9 Months Ended |
Sep. 30, 2017 | |
Costs in Excess of Billings on Uncompleted Contracts or Programs [Abstract] | |
Sales, Contract Assets and Contract Liabilities [Text Block] | Note 5 Sales, Contract Assets and Contract Liabilities In the three months ended September 30, 2016, the Company entered into a multi-flare contract with a third-party contractor to supply its Duplex technology to a major California oil producer to retrofit its enclosed wellhead ground flares. This contract is valued at $ 900,000 360,000 540,000 280,000 126,000 0 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 6 Stockholders’ Equity Common Stock and Preferred Stock The Company is authorized to issue 62,500,000 2,000,000 In January 2017, the Company completed a rights offering and public offering of units comprised of common stock and warrants at $ 4.00 2,395,471 2,395,471 January 25, 2019 9.6 8.7 915,000 575,000 60,000 Equity Incentive Plan The Company has an Equity Incentive Plan (the Plan) which provides for the granting of options to purchase shares of common stock, stock awards to purchase shares at no less than 85 1,657,972 10 In February 2017, the Company issued 83,334 0.0001 3.60 225,000 75,000 In the nine months ended September 30, 2017, the Company granted 107,000 3.80 10 4 224,000 28,000 Expected life 6.25 years Weighted average volatility 69 % Forfeiture rate 13 % Weighted average risk-free interest rate 1.90 % Expected dividend rate 0 % Outstanding stock option grants at September 30, 2017 and December 31, 2016 totaled 978,310 882,815 720,643 547,532 194,000 140,000 509,000 199,000 604,000 202,648 75,000 499,000 2.6 Consultant Stock Plan The Company has a Consultant Stock Plan (the Consultant Plan) which provides for the granting of shares of common stock to consultants who provide services related to capital raising, investor relations, and making a market in or promoting the Company’s securities. The Company’s officers, employees, and board members are not entitled to receive grants from the Consultant Plan. The Compensation Committee of the Board of Directors is authorized to administer the Consultant Plan and establish the grant terms. The number of shares reserved for issuance under the Consultant Plan on September 30, 2017 totaled 142,384 101,634 10,000 3.50 35,000 9,000 33,000 12,000 32,000 Warrants Total Outstanding Warrants Exercise Price Warrants Wtd. Avg. Remaining $ 1.80 80,000 $ 1.80 3.38 $ 4.00 2,395,471 $ 4.00 1.32 $ 10.00 20,313 $ 10.00 1.43 2,495,784 $ 3.98 The intrinsic value of the outstanding warrants was $ 140,000 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Note 7 Related Party Transactions In connection with the January 2017 Rights Offering, the Company paid MDB, the dealer-manager and placement agent, fees of $ 575,000 60,000 |
Commitments
Commitments | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Note 8 Commitments On February 3, 2015, the Company and its Chief Executive Officer, Stephen E. Pirnat, entered into an employment agreement (the Agreement) which terminates on December 31, 2017 350,000 300,000 60 100,000 The Company has a field test agreement with a customer that was established to demonstrate and test the Duplex technology in a once through steam generator (OTSG) used to facilitate a thermally enhanced oil recovery process. Under the terms of the agreement, the Company has retrofitted an OTSG unit in order to achieve certain performance criteria. The agreement also includes time-sensitive pricing, delivery and installation terms, if elected, that will apply to future purchases of this Duplex application by this customer. |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The condensed balance sheet at December 31, 2016 has been derived from the Company’s audited financial statements. In the opinion of management, these financial statements reflect all normal recurring and other adjustments necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2016. Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. |
Use Of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and expenses during the reporting period. Actual results could differ from those estimates |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition, Cost of Sales and Change in Accounting Principle In September 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 (ASU No. 2014-09) regarding revenue recognition. The new standard provides authoritative guidance clarifying the principles for recognizing revenue and developing a common revenue standard for U.S. generally accepted accounting principles. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in the exchange for those goods or services. Additionally, the guidance requires improved disclosure to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. It is effective January 1, 2018 and early adoption is permitted. Management has elected early adoption of this standard to minimize the eventual cost of implementation. The Company previously accounted for revenues from design and installation of its products on the completed contract method. Revenues from contracts and related costs of goods sold were recognized once the contract was completed or substantially completed. Contract costs included all direct material and labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, and depreciation costs. Provisions for estimated losses on uncompleted contracts were made in the period in which such losses were determined. The Company retroactively adopted ASU No. 2014-09 effective January 1, 2017. The Company reviewed each contract to identify contract rights, performance obligations, and transaction prices, including the allocation of prices to separate performance obligations. Revenues and costs of sales are recognized once the goods or services are delivered to the customer’s control and performance obligations are satisfied. Typically, the Company’s customer contracts include performance obligations related to emission levels or other metrics that are measured at project completion. Management analyzed prior year revenue recognition made under the completed contract method and determined that no changes in the previously reported financial statements were required. Management elected to not apply the practical expedients in the adoption of ASU No. 2014-09. The Company’s contracts with customers have performance obligations regarding air emissions and operational performance that are satisfied upon completion of service. Since this is the singular performance obligation and cannot be achieved until the air emissions and operational performance have been successfully tested, revenue related to the contracts is recognized upon project completion. The Company’s contracts generally include progress payments from the customer upon completion of defined milestones. As these payments are received they are offset against accumulated project costs and recorded as either Contract assets or Contract liabilities. Upon completion of the performance obligations and acceptance by the customer the projects can be recorded as revenue. The Company did not recognize any revenue from contracts during the quarter ended September 30, 2017. The Company recognized revenue of $ 360,000 The Company’s |
Standard Product Warranty, Policy [Policy Text Block] | Product Warranties The Company warrants all installed products against defects in materials and workmanship for a period specified in each contract by replacing failed parts. Accruals for product warranties are based on historical warranty experience and current product performance trends, and are recorded at the time revenue is recognized as a component of cost of sales. The warranty liabilities are reduced by material and labor costs used to replace parts over the warranty period in the periods in which the costs are incurred. The Company periodically assesses the adequacy of its recorded warranty liabilities and adjusts the amounts as necessary, and such adjustments could be material in the future if estimates differ significantly from actual warranty expense. The warranty liabilities are included in accrued liabilities in the balance sheets. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Highly liquid investments purchased with an original maturity of three months or less are considered cash equivalents. Cash is maintained with a commercial bank where accounts are generally guaranteed by the Federal Deposit Insurance Corporation up to $ 250,000 |
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount. An allowance for doubtful accounts is established, as necessary, based on past experience and other factors which, in management’s judgment, deserve current recognition in estimating bad debts. The determination of the collectability of amounts due from customer accounts requires the Company to make judgments regarding future events and trends. Allowances for doubtful accounts are determined based on assessing the Company’s portfolio on an individual customer and on an overall basis. This process consists of a review of historical collection experience, current aging status of the customer accounts, and the financial condition of the Company’s customers. Based on a review of these factors, the Company may establish or adjust the allowance for specific customers and the accounts receivable portfolio as a whole. |
Fixed Assets Policy [Policy Text Block] | Fixed Assets and Change in Accounting Principle for Leases Fixed assets are recorded at cost. As disclosed in Note 3, in 2017 the Company retroactively adopted Accounting Standards Update No. 2016-02 (ASU No. 2016-02) regarding leases. For those leases with a term greater than one year, the Company recognizes on the balance sheet at the time of lease inception or modification a right-of-use asset and a lease liability, initially measured at the present value of the lease payments. Lease costs are recognized in the income statement over the lease term on a straight-line basis. Operating leases with a term of 1 year or less (short-term leases) are recognized on a straight line basis over the term. Depreciation is computed using the straight-line method over the estimated useful lives of the respective assets. Leasehold improvements are depreciated over the life of the lease or their useful life, whichever is shorter. All other fixed assets are depreciated over two to four years. Maintenance and repairs are expensed as incurred. |
Patents and Trademarks Policy [Policy Text Block] | Patents and Trademarks Patents and trademarks are recorded at cost. Amortization is computed using the straight-line method over the estimated useful lives of the assets once they are awarded. |
Impairment Of Long Lived Asset Policy [Policy Text Block] | Impairment of Long-Lived Assets The Company tests long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable through the estimated undiscounted cash flows expected to result from the use and eventual disposition of the assets. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the long-lived assets. Fair value is determined based on the present value of estimated expected cash flows using a discount rate commensurate with the risks involved, quoted market prices, or appraised values depending upon the nature of the assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair values are reduced for the cost of disposal. |
Fair Value Of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Assets and liabilities measured at fair value are categorized based on whether or not the inputs are observable in the market and the degree that the inputs are observable. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels of inputs used to establish fair value are the following: ⋅ Level 1 Quoted prices in active markets for identical assets or liabilities, ⋅ Level 2 Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and ⋅ Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s In adopting ASU 2016-02 as described in Note 3, the Company recorded lease liabilities for the estimated present value of the lease payments under the lease agreements. The Company determined the interest rate based on an estimated incremental borrowing rate. The lease liabilities are classified within Level 3. The Company did not identify any other non-recurring assets and liabilities that are required to be presented in the balance sheets at fair value. |
Research and Development Expense, Policy [Policy Text Block] | Research and Development The cost of research and development is expensed as incurred. Research and development costs consist of salaries, benefits, share-based compensation, consulting fees, rent, utilities, depreciation, and consumables. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. Tax benefits from a tax position are recognized only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution. |
Share-Based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Share-Based Compensation The costs of all employee stock options, as well as other equity-based compensation arrangements, are reflected in the financial statements based on the estimated fair value of the awards on the grant date. That cost is recognized over the period during which an employee is required to provide service in exchange for the award. Share-based compensation for shares granted to non-employees is determined as the fair value of the consideration received or the fair value of equity instruments issued, whichever is more reliably measured. |
Earnings Per Share, Policy [Policy Text Block] | Net Loss per Common Share Basic loss per share is computed by dividing loss available to common stockholders by the weighted-average number of common shares outstanding. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include additional common shares available upon exercise of stock options and warrants using the treasury stock method, except for periods for which no common share equivalents are included because their effect would be anti-dilutive. At September 30, 2017 and 2016, potentially dilutive shares outstanding amounted to 3,474,094 1,335,363 In connection with the January 2017 rights offering (see Note 6), the Company evaluated the financial impact of FASB ASC 260, “Earnings per Share,” which states, among other things, that if a rights issue is offered to all existing stockholders at an exercise price that is less than the fair value of the stock, then the weighted average shares outstanding and basic and diluted earnings per share shall be adjusted retroactively to reflect the bonus element of the rights offering for all periods presented. The Company determined that the application of this specific provision of ASC 260 was immaterial to previously issued financial statements and, therefore, did not retroactively adjust previously reported weighted average shares outstanding and basic and diluted earnings per share. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718) Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s financial statement presentation or disclosures. |
Growing Company [Policy Text Block] | Emerging Growth Company The Company is an emerging growth company as defined under the Jumpstart Our Business Startups Act of 2012 (JOBS Act). An emerging growth company may delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. The Company will remain an emerging growth company until December 31, 2017, although it will lose that status sooner if its revenues exceed $ 1.07 1 700 57 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Fixed assets are summarized as follows: September 30, December 31, 2017 2016 (unaudited) Machinery and equipment $ 801,000 $ 662,000 Office furniture and equipment 163,000 141,000 Leasehold improvements 145,000 134,000 Right of use asset-operating leases 518,000 518,000 Accumulated depreciation and amortization (1,073,000) (894,000) 554,000 561,000 Construction in progress - 83,000 $ 554,000 $ 644,000 |
Schedule of Leases Cost [Table Text Block] | Lease costs for the three and nine months ended September 30, 2017 and 2016 and other quantitative disclosures are as follows: For the three months ended For the nine months ended 2017 2016 2017 2016 Lease cost: Operating lease cost $ 54,000 $ 42,000 $ 161,000 $ 122,000 Short-term lease cost 40,000 4,000 47,000 21,000 Total lease cost $ 94,000 $ 46,000 $ 208,000 $ 143,000 Other information: Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 129,000 Right-of-use assets obtained in exchange for new operating lease liabilities For operating lease: Weighted average remaining lease term (in years) 2.43 Weighted average discount rate 5.00 % |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Minimum future payments under the Company’s leases at September 30, 2017 and their application to the corresponding lease liabilities are as follows: Payments due Discounted lease under lease liability payments agreements 2017 $ 38,000 $ 43,000 2018 159,000 173,000 2019 158,000 164,000 2020 37,000 37,000 Total $ 392,000 $ 417,000 |
Patents and Other Intangible 19
Patents and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | Patents and other intangible assets are summarized as follows: September 30, December 31, 2017 2016 (unaudited) Patents Patents pending $ 1,163,000 $ 1,040,000 Issued patents 862,000 747,000 2,025,000 1,787,000 Trademarks Trademarks pending 36,000 23,000 Registered trademarks 23,000 23,000 59,000 46,000 Other 8,000 8,000 2,092,000 1,841,000 Accumulated amortization (256,000) (106,000) $ 1,836,000 $ 1,735,000 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Future amortization expense associated with issued patents and registered trademarks as of September 30, 2017 is estimated as follows: 2017 $ 54,000 2018 215,000 2019 193,000 2020 109,000 2021 38,000 Thereafter 29,000 $ 638,000 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule Of Share Based Compensation Warrants Activity [Table Text Block] | The following weighted-average assumptions were utilized in the calculation of the fair value of the stock options: Expected life 6.25 years Weighted average volatility 69 % Forfeiture rate 13 % Weighted average risk-free interest rate 1.90 % Expected dividend rate 0 % |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The Company has the following warrants outstanding at September 30, 2017: Total Outstanding Warrants Exercise Price Warrants Wtd. Avg. Remaining $ 1.80 80,000 $ 1.80 3.38 $ 4.00 2,395,471 $ 4.00 1.32 $ 10.00 20,313 $ 10.00 1.43 2,495,784 $ 3.98 |
Organization and Description 21
Organization and Description of Business (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | 116 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization and Description of Business [Line Items] | |||||||
Net Loss | $ (2,472,000) | $ (3,846,000) | $ (7,087,000) | $ (8,866,000) | $ 47,418,000 | ||
Cash and Cash Equivalents, at Carrying Value, Total | $ 3,511,000 | $ 3,558,000 | $ 3,511,000 | $ 3,558,000 | $ 3,511,000 | $ 1,259,000 | $ 10,985,000 |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | |
Variable Interest Entity [Line Items] | |||||
Cash, FDIC Insured Amount | $ 250,000 | $ 250,000 | |||
Weighted Average Number of Shares Outstanding, Diluted | 3,474,094 | 1,335,363 | |||
Emerging Growth Company Minimum Revenue | $ 1,070,000,000 | ||||
Emerging Growth Company Non Convertible Debt | 1,000,000,000 | ||||
Emerging Growth Company Minimum Non-Affiliate Market Value Of Common Stock | 700,000,000 | ||||
Tax Benefits Recognized Description | The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate resolution. | ||||
Emerging Growth Company Non-Affiliate Market Value Of Common Stock | $ 57,000,000 | ||||
Property, Plant and Equipment, Estimated Useful Lives |  over two to four years | ||||
Revenues, Total | $ 0 | $ 260,000 | $ 360,000 | $ 260,000 |
Fixed Assets (Details)
Fixed Assets (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Machinery and equipment | $ 801,000 | $ 662,000 |
Office furniture and equipment | 163,000 | 141,000 |
Leasehold improvements | 145,000 | 134,000 |
Right of use asset-operating leases | 518,000 | 518,000 |
Accumulated depreciation and amortization | (1,073,000) | (894,000) |
Property Plant and Equipment Gross Excluding Construction In Progress | 554,000 | 561,000 |
Construction in progress | 0 | 83,000 |
Property, Plant and Equipment, Net, Total | $ 554,000 | $ 644,000 |
Fixed Assets (Details 1)
Fixed Assets (Details 1) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Lease cost: | ||||
Operating lease cost | $ 54,000 | $ 42,000 | $ 161,000 | $ 122,000 |
Short-term lease cost | 40,000 | 4,000 | 47,000 | 21,000 |
Total lease cost | $ 94,000 | $ 46,000 | 208,000 | $ 143,000 |
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from operating leases | $ 129,000 | |||
For operating lease: | ||||
Weighted average remaining lease term (in years) | 2 years 5 months 5 days | |||
Weighted average discount rate | 5.00% |
Fixed Assets (Details 2)
Fixed Assets (Details 2) | Sep. 30, 2017USD ($) |
Discounted Lease Liabilities Payments [Member] | |
2,017 | $ 38,000 |
2,018 | 159,000 |
2,019 | 158,000 |
2,020 | 37,000 |
Total | 392,000 |
Payments Due Under Lease Agreement [Member] | |
2,017 | 43,000 |
2,018 | 173,000 |
2,019 | 164,000 |
2,020 | 37,000 |
Total | $ 417,000 |
Fixed Assets (Details Textual)
Fixed Assets (Details Textual) - USD ($) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Feb. 28, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Rent Expense Escalation Percentage | 3.00% | |||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 3 years | |||
Incremental Borrowing Rate | 5.00% | |||
Amortization of Leased Asset | $ 119,000 | $ 106,000 | $ 19,000 | |
Principal Payment of Lease Liability | 17,000 | |||
Lease One [Member] | ||||
Triple Net Operating Cost | $ 12,000 | |||
Lease Two [Member] | ||||
Triple Net Operating Cost | $ 2,000 | |||
Accounting Standards Update 2016-02 [Member] | ||||
New Accounting Pronouncement or Change in Accounting Principle, Effect of Change on Net Income | 71,000 | |||
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 447,000 |
Patents and Other Intangible 27
Patents and Other Intangible Assets (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Patents, Gross | $ 2,025,000 | $ 1,787,000 |
Trademarks | 59,000 | 46,000 |
Other | 8,000 | 8,000 |
Finite Lived Intangible Assets Other Than Patents Gross | 2,092,000 | 1,841,000 |
Accumulated amortization | (256,000) | (106,000) |
Finite-Lived Intangible Assets, Net | 1,836,000 | 1,735,000 |
Patents Pending [Member] | ||
Finite-Lived Patents, Gross | 1,163,000 | 1,040,000 |
Issued Patents [Member] | ||
Finite-Lived Patents, Gross | 862,000 | 747,000 |
Trademarks Pending [Member] | ||
Trademarks | 36,000 | 23,000 |
Registered Trademarks [Member] | ||
Trademarks | $ 23,000 | $ 23,000 |
Patents and Other Intangible 28
Patents and Other Intangible Assets (Details 1) - Patents [Member] | Sep. 30, 2017USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 54,000 |
2,018 | 215,000 |
2,019 | 193,000 |
2,020 | 109,000 |
2,021 | 38,000 |
Thereafter | 29,000 |
Finite-Lived Intangible Assets, Net | $ 638,000 |
Patents and Other Intangible 29
Patents and Other Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Exploration Abandonment and Impairment Expense | $ 0 | $ 1,739,000 | $ 0 | $ 1,971,000 |
Sales, Contract Assets and Co30
Sales, Contract Assets and Contract Liabilities (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2017 | Mar. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Contract Revenue Cost | $ 280,000 | |||||
Costs in Excess of Billings, Current | $ 126,000 | 126,000 | $ 0 | |||
Revenues, Total | 0 | $ 260,000 | 360,000 | $ 260,000 | ||
Billings in Excess of Cost, Current | $ 0 | 0 | $ 115,000 | |||
California oil producer [Member] | ||||||
Contract Value | $ 900,000 | $ 540,000 | ||||
Revenues, Total | $ 360,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Equity Incentive Plan [Member] | 9 Months Ended |
Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life | 6 years 3 months |
Weighted average volatility | 69.00% |
Forfeiture rate | 13.00% |
Weighted average risk-free interest rate | 1.90% |
Expected dividend rate | 0.00% |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) | 9 Months Ended |
Sep. 30, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Warrants Outstanding | shares | 2,495,784 |
Warrants Outstanding Weighted Average Exercise Price | $ 3.98 |
Exercise Price 1.80 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Warrants Exercise Price | $ 1.80 |
Warrants Outstanding | shares | 80,000 |
Warrants Outstanding Weighted Average Exercise Price | $ 1.80 |
Warrants Outstanding Remaining Life (in years) | 3 years 4 months 17 days |
Exercise Price 4.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Warrants Exercise Price | $ 4 |
Warrants Outstanding | shares | 2,395,471 |
Warrants Outstanding Weighted Average Exercise Price | $ 4 |
Warrants Outstanding Remaining Life (in years) | 1 year 3 months 25 days |
Exercise Price 10.00 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Warrants Exercise Price | $ 10 |
Warrants Outstanding | shares | 20,313 |
Warrants Outstanding Weighted Average Exercise Price | $ 10 |
Warrants Outstanding Remaining Life (in years) | 1 year 5 months 5 days |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Aug. 31, 2017 | Feb. 28, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||||||||
Common Stock, Shares Authorized | 62,500,000 | 62,500,000 | ||||||
Preferred Stock, Shares Authorized | 2,000,000 | 2,000,000 | ||||||
Share-Based Compensation | $ 284,000 | $ 492,000 | ||||||
Stock Option Plan Description | The Consultant Plan provides for quarterly increases in the available number of authorized shares equal to the lesser of 1% of any new shares issued by the Company during the quarter immediately prior to the adjustment date or such lesser amount as the Board of Directors shall determine. | |||||||
Proceeds From Issuance Or Sale Of Equity | $ 8,667,000 | 0 | ||||||
Common Stock, Repurchase Price Per Share | $ 0.0001 | |||||||
Stock Issued During Period 2017 Board Services Per Share | $ 3.60 | $ 3.60 | ||||||
General and Administrative Expenses To Be Recognized in Remainder of Year | $ 75,000 | $ 75,000 | ||||||
General and Administrative Expense | $ 1,131,000 | $ 2,840,000 | 3,569,000 | 5,342,000 | ||||
Underwritten Public Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Value, New Issues | 9,600,000 | |||||||
Proceeds From Issuance Or Sale Of Equity | $ 8,700,000 | |||||||
Right Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Warrants Authorized For Issuance To Acquire Common Stock Shares Number | 2,395,471 | |||||||
Stock Issued During Period, Shares, Other | 2,395,471 | |||||||
Shares Issued, Price Per Share | $ 4 | |||||||
General and Administrative Expense [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, Issued for 2017 Board Services | 300,000 | |||||||
General and Administrative Expense | $ 225,000 | |||||||
Consultant Plan [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 142,384 | 142,384 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 10,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.50 | |||||||
Shares Reserved Unissued | 101,634 | 101,634 | ||||||
Share Based Compensation Arrangement by Share Based Payment Award Options Grants In Period Fair Value | $ 35,000 | |||||||
Consultant Plan Expenses | $ 9,000 | 12,000 | $ 33,000 | 32,000 | ||||
Common Stock [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Stock Issued During Period, Shares, Issued for 2017 Board Services | 83,334 | 83,334 | ||||||
Warrant [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Warrants,Intrinsic Value,Outstanding | $ 140,000 | $ 140,000 | ||||||
Warrant [Member] | Right Offering and Public Offering [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date | Jan. 25, 2019 | |||||||
Equity Incentive Plan [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award Purchase Price Share Minimum | 85.00% | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 1,657,972 | 1,657,972 | ||||||
Increase Decrease Of Share Based Compensation Arrangement By Share Based Payment Award Percentage | 10.00% | |||||||
Share-based Compensation Outstanding - Reserved but unissued shares under the Plan | 978,310 | 978,310 | 882,815 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 499,000 | $ 499,000 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 107,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.80 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term2 | 10 years | |||||||
Share-Based Compensation | $ 140,000 | $ 199,000 | $ 509,000 | $ 604,000 | ||||
Shares Reserved Unissued | 202,648 | 202,648 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number | 720,643 | 720,643 | 547,532 | |||||
Stock Granted During Period, Value, Share-Based Compensation, Gross | $ 224,000 | |||||||
Allocated Share-based Compensation Expense | $ 28,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period1 | 4 years | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 194,000 | $ 194,000 | ||||||
Equity Incentive Plan [Member] | Director [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized | $ 75,000 | 75,000 | ||||||
MDB Consulting Services [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Underwriting Expense | 915,000 | |||||||
Payments for Underwriting Expense | 575,000 | |||||||
Other Underwriting Expense | $ 60,000 |
Related Party Transactions (Det
Related Party Transactions (Details Textual) - MDB Consulting Services [Member] | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Related Party Transaction [Line Items] | |
Consulting Fee | $ 575,000 |
Other Underwriting Expense | $ 60,000 |
Commitments (Details Textual)
Commitments (Details Textual) | Feb. 03, 2015USD ($)shares |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Annual Cash Bonus | 60.00% |
Stephen E. Pirnat [Member] | |
Loss Contingencies [Line Items] | |
Salaries, Wages and Officers' Compensation | $ 350,000 |
Employment Agreement Termination Date | Dec. 31, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 300,000 |
Labor and Related Expense | $ 100,000 |