Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 27, 2015 | Jun. 30, 2014 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Vuzix Corp | ||
Entity Central Index Key | 1463972 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $16,035,000 | ||
Trading Symbol | VUZI | ||
Entity Common Stock, Shares Outstanding | 15,862,418 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets | ||
Cash and Cash Equivalents | $84,967 | $310,140 |
Accounts Receivable, Net | 383,533 | 214,920 |
Inventories, Net (Note 2) | 911,949 | 953,627 |
Prepaid Expenses and Other Assets | 579,000 | 200,936 |
Total Current Assets | 1,959,449 | 1,679,623 |
Tooling and Equipment, Net (Note 3) | 416,965 | 446,329 |
Patents and Trademarks, Net (Note 4) | 423,489 | 495,608 |
Software Development Costs, Net (Note 5) | 787,738 | 240,561 |
Debt Issuance Costs, Net (Note 6) | 112,521 | 0 |
Total Assets | 3,700,162 | 2,862,121 |
Current Liabilities | ||
Accounts Payable | 2,183,565 | 2,420,571 |
Line of Credit (Note 7) | 112,500 | 0 |
Notes Payable (Note 8) | 37,038 | 278,467 |
Current Portion of Long-term Debt, net of discount (Note 11) | 128,425 | 99,320 |
Current Portion of Capital Leases | 16,882 | 24,670 |
Customer Deposits | 120,550 | 131,077 |
Unearned Revenue | 53,403 | 39,700 |
Accrued Expenses (Note 9) | 699,067 | 591,199 |
Income and Other Taxes Payable | 35,158 | 75,851 |
Total Current Liabilities | 3,386,588 | 3,660,855 |
Long-Term Liabilities | ||
Long-Term Derivative Liability (Note 10) | 13,541,138 | 12,035,816 |
Long-Term Portion of Term Debt, net of discount (Note 11) | 1,088,996 | 170,496 |
Long-Term Portion of Capital Leases (Note 12) | 0 | 16,882 |
Long-Term Portion of Accrued Interest | 81,451 | 16,365 |
Total Long-Term Liabilities | 14,711,585 | 12,239,559 |
Total Liabilities | 18,098,173 | 15,900,414 |
Stockholders’ Deficit | ||
Preferred Stock — $.001 Par Value, 5,000,000 Shares Authorized; 0 Shares Issued and Outstanding in Each Period | 0 | 0 |
Common Stock — $.001 Par Value, 100,000,000 Shares Authorized December 31, 2014 and 700,000,000 Shares Authorized December 31, 2013; 11,295,387 Shares Issued and Outstanding December 31, 2014 and 9,600,453 on December 31, 2013 | 11,296 | 9,600 |
Additional Paid-in Capital | 29,752,083 | 23,244,639 |
Accumulated Deficit | -44,161,390 | -36,292,532 |
Total Stockholders’ Deficit | -14,398,011 | -13,038,293 |
Total Liabilities and Stockholders’ Deficit | $3,700,162 | $2,862,121 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Preferred Stock, Par Value | $0.00 | $0.00 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 100,000,000 | 700,000,000 |
Common Stock, Shares Issued | 11,295,387 | 9,600,453 |
Common Stock, Shares Outstanding | 11,295,387 | 9,600,453 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (USD $) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Preferred Stock | Subscription Receivable | ||
Balance at Dec. 31, 2012 | ($6,209,565) | $3,537 | $19,933,202 | ($26,146,304) | $0 | $0 | ||
Balance (in shares) at Dec. 31, 2012 | 3,536,865 | [1] | 0 | |||||
Issuance of Common Stock in Public Offering (in shares) | [1] | 4,025,000 | ||||||
Issuance of Common Stock in Public Offering | 8,050,000 | 4,025 | 8,045,975 | |||||
Direct Financing Associated Costs | -1,358,641 | -1,358,641 | ||||||
Conversion of Term Debt and Accrued Interest (in shares) | [1] | 1,158,003 | ||||||
Conversion of Term Debt and Accrued Interest | 2,316,007 | 1,158 | 2,314,849 | |||||
Conversion of Accrued Compensation and Interest (in shares) | [1] | 821,285 | ||||||
Conversion of Accrued Compensation and Interest | 1,642,569 | 821 | 1,641,748 | |||||
Exercise of Warrants (in shares) | [1] | 59,300 | ||||||
Exercise of Warrants | 133,425 | 59 | 133,366 | |||||
Stock Compensation Expense | 159,272 | 0 | 159,272 | 0 | 0 | 0 | ||
Issuance of Warrants in Conjunction with Public Offering | -8,236,786 | -8,236,786 | ||||||
Reclass Fair Value of Warrant Derivative Liability upon Expiration of Full Ratchet Price Protection | 526,245 | 526,245 | ||||||
Reclass Fair Value of Warrant Derivative Liability upon Exercise | 85,409 | 85,409 | ||||||
Net (Loss) | -10,146,228 | 0 | 0 | -10,146,228 | 0 | 0 | ||
Balance at Dec. 31, 2013 | -13,038,293 | 9,600 | 23,244,639 | -36,292,532 | 0 | 0 | ||
Balance (in shares) at Dec. 31, 2013 | 9,600,453 | [1] | 0 | |||||
Exercise of Warrants (in shares) | [1] | 1,228,582 | ||||||
Exercise of Warrants | 2,682,695 | 1,229 | 2,681,466 | |||||
Stock Compensation Expense | 260,746 | 0 | 260,746 | 0 | 0 | 0 | ||
Conversion of Note Payable (in shares) | [1] | 277,778 | ||||||
Conversion of Note Payable | 373,159 | 278 | 372,881 | |||||
Stock Issues for Services (in shares) | [1] | 188,574 | ||||||
Stock Issues for Services | 564,874 | 189 | 564,685 | |||||
Reclass Fair Value of Derivative Liability upon note conversion | 500,261 | 500,261 | ||||||
Reclass Fair Value of Warrant Derivative Liability upon Exercise | 2,127,405 | 2,127,405 | ||||||
Net (Loss) | -7,868,858 | 0 | 0 | -7,868,858 | 0 | 0 | ||
Balance at Dec. 31, 2014 | ($14,398,011) | $11,296 | $29,752,083 | ($44,161,390) | $0 | $0 | ||
Balance (in shares) at Dec. 31, 2014 | 11,295,387 | [1] | 0 | |||||
[1] | All share amounts for all periods reflect the Company’s 1-for-75 reverse stock split, which was effective February 6, 2013. |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Sales of Products | $2,474,559 | $1,856,806 |
Sales of Engineering Services | 557,517 | 532,247 |
Total Sales | 3,032,076 | 2,389,053 |
Cost of Sales — Products | 1,884,678 | 1,354,909 |
Cost of Sales — Engineering Services | 217,233 | 227,186 |
Total Cost of Sales | 2,101,911 | 1,582,095 |
Gross Profit | 930,165 | 806,958 |
Operating Expenses: | ||
Research and Development | 1,752,560 | 1,751,397 |
Selling and Marketing | 1,232,520 | 1,091,514 |
General and Administrative | 2,593,384 | 2,165,341 |
Depreciation and Amortization | 279,317 | 377,840 |
Impairment of Patents and Trademarks | 104,716 | 73,423 |
Total Operating Expenses | 5,962,497 | 5,459,515 |
Loss from Operations | -5,032,332 | -4,652,557 |
Other Income (Expense) | ||
Other Taxes | -83,419 | -88,274 |
Foreign Exchange Loss | -2,713 | -13,692 |
Loss on Sale of Assets | 0 | -40,352 |
Gain (Loss) on Debt Conversions and Extinguishment (Note 11) | 29,262 | -1,272,296 |
Loss on Derivative Valuation (Note 10) | -2,194,001 | -3,575,278 |
Amortization of Senior Term Debt Discount (Note 11) | -393,525 | 0 |
Interest Expense | -192,130 | -503,779 |
Total Other Income (Expense) | -2,836,526 | -5,493,671 |
Loss from Before Provision for Income Taxes | -7,868,858 | -10,146,228 |
Provision for Income Taxes (Note 13) | 0 | 0 |
Net Loss | ($7,868,858) | ($10,146,228) |
Basic and Diluted Loss per Share | ($0.75) | ($1.69) |
Weighted-average Shares Outstanding Basic and Diluted | 10,476,971 | 5,988,595 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash Flows from Operating Activities | ||
Net Loss | ($7,868,858) | ($10,146,228) |
Non-Cash Adjustments | ||
Depreciation and Amortization | 279,317 | 377,840 |
Impairment of Patents and Trademarks | 104,716 | 73,423 |
Stock-Based Compensation Expense | 260,747 | 159,272 |
Amortization and Write-off of Term Debt Discount | 368,223 | 732,584 |
Interest Converted into Common Stock | 0 | 222,032 |
Amortization of Term Debt Discount | 25,302 | 25,302 |
Loss on Sale of Assets | 0 | 40,352 |
Gain on Extinguishment of Debt for Note Conversions | -29,262 | |
Amortization and Write-off of Debt Issuance Costs | 26,819 | 257,692 |
Warrants Issued for Debt Extinguishment | 0 | 97,913 |
Common Stock Issued for Services | 395,205 | 0 |
Amortization of Software Development Costs | 71,613 | 0 |
Loss on Derivative Valuation | 2,194,001 | 3,575,278 |
(Increase) Decrease in Operating Assets | ||
Accounts Receivable | -168,613 | -44,320 |
Inventories | 41,679 | -266,446 |
Prepaid Expenses and Other Assets | -208,367 | -37,993 |
Increase (Decrease) in Operating Liabilities | ||
Accounts Payable | -237,006 | -379,634 |
Accrued Expenses | 1,216 | 34,592 |
Customer Deposits | -10,528 | 67,998 |
Unearned Revenue | 13,701 | 39,700 |
Income and Other Taxes Payable | -40,693 | 54,365 |
Accrued Compensation | 68,116 | 0 |
Accrued Interest | 103,622 | 24,728 |
Net Cash Flows Used in Operating Activities | -4,609,050 | -5,091,550 |
Cash Flows from Investing Activities | ||
Purchases of Tooling and Equipment | -195,903 | -145,929 |
Investments in Software Development | -618,790 | -240,561 |
Investments in Patents and Trademarks | -86,647 | -72,704 |
Net Cash Used in Investing Activities | -901,340 | -459,194 |
Cash Flows from Financing Activities | ||
Proceeds from Exercise of Warrants | 2,682,669 | 56,250 |
Issuance of Common Stock | 0 | 8,050,000 |
Repayment of Capital Leases | -24,670 | -55,733 |
Direct Offering Associated Costs | 0 | -1,204,779 |
Net Change in Line of Credit | 112,500 | -112,500 |
Repayment of Long-Term Debt and Notes Payable | -345,942 | -2,137,983 |
Proceeds from Senior Convertible Debt | 3,000,000 | 1,000,000 |
Issuance Costs on Senior Convertible Debt | -139,340 | -183,809 |
Proceeds from Notes Payable | 0 | 382,884 |
Net Cash Flows Provided by Financing Activities | 5,285,217 | 5,794,330 |
Net Increase (Decrease) in Cash and Cash Equivalents | -225,173 | 243,586 |
Cash and Cash Equivalents — Beginning of Period | 310,140 | 66,554 |
Cash and Cash Equivalents — End of Period | 84,967 | 310,140 |
Supplemental Disclosures | ||
Interest Paid | 88,508 | 230,112 |
Common Stock Issued For Services during 2014, Classified as Prepaid Expense | 564,873 | 0 |
Conversion of Accrued Interest into Common Stock | 0 | 1,076,250 |
Warrant Derivative Liability of Common Stock Offering and Debt Conversions | 0 | 8,236,786 |
Conversion of Accrued Compensation and Term Debt into Common Stock | 625,000 | 2,882,333 |
Unamortized Discount Upon Conversion of Term Debt | 222,580 | 0 |
Reclassification of Derivative Liability to Paid-In Capital upon Note Conversions and Warrant Exercises | 2,627,666 | 0 |
Discount on senior convertible debt attributed to embedded conversion price adjustment option | 1,938,988 | 0 |
Warrants granted for senior convertible debenture issuance costs | $0 | $66,603 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Summary of Significant Accounting Policies | Note 1 — Summary of Significant Accounting Policies | ||
Operations | |||
Vuzix Corporation (the Company) was formed in 1997 under the laws of the State of Delaware and maintains its corporate offices in Rochester, New York. The Company is engaged in the design, manufacture, marketing and sale of devices that are worn like eyeglasses and which feature built-in video screens that enable the user to view video and digital content, such as movies, computer data, the Internet or video games. Our products (known commercially as “Video Eyewear”) are used to view high resolution video and digital information from portable devices, such as cell phones, portable media players, gaming systems and laptop computers and from personal computers. Our products provide the user with a virtual viewing experience that emulates viewing a large screen television or desktop computer monitor practically anywhere, anytime. | |||
Principles of Consolidation | |||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Vuzix Europe. All significant inter-company transactions have been eliminated. | |||
Segment Data, Geographic Information and Significant Customers | |||
The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities. Accordingly, the Company does not accumulate discrete information, other than product revenue and material costs, with respect to separate product lines and does not have separately reportable segments as defined by FASB ASC Topic 280, “Disclosures about Segments of an Enterprise and Related Information,” | |||
Shipments to customers outside of the United States approximated 43% and 36% of sales in 2014 and 2013, respectively. No single international country represented more than 10% of revenues. The Company does not maintain significant amounts of long-lived assets outside of the United States other than tooling held by its third party manufacturers, primarily in China. | |||
The Company has at times had a concentration of sales to the U.S. government, they amounted to approximately 10% and 17% of sales in 2014 and 2013, respectively. Accounts receivable from the U.S. government accounted for 6% and 79% of accounts receivable at December 31, 2014 and 2013, respectively. | |||
Foreign Currency Transactions | |||
The British Pound is the functional currency of the Company’s foreign subsidiary. Gains and losses arising upon settlement of foreign currency denominated transactions or balances are included in the determination of net loss. | |||
Use of Estimates | |||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||
Concentration of Credit Risk | |||
The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. | |||
Cash and Cash Equivalents | |||
The Company’s cash received is applied against its revolving line of credit on a periodic basis based on projected monthly cash flows, reducing interest expense. Cash and cash equivalents can include highly liquid investments with original maturities of three months or less. | |||
Fair Value of Financial Instruments | |||
The Company’s financial instruments primarily consists of cash and cash equivalents, accounts receivable, accounts payable, lines of credit, long-term debt and capital leases, customer deposits, accrued expenses, and income taxes payable. | |||
As of the consolidated balance sheet date, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to both the short maturities of these instruments and that the interest rates on borrowing approximate those that would have been available for loans for similar remaining maturity and risk profiles. | |||
Accounts Receivable | |||
The Company carries its trade accounts receivable at invoice amount less an allowance for doubtful accounts. The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at risk receivables. There was no allowance for doubtful accounts as of December 31, 2014 and 2013. The Company does not accrue interest on past due accounts receivable unless it goes into collection. | |||
Inventories | |||
Inventories are valued at the lower of cost or market using the weighted average first-in, first-out method. The Company includes direct overhead costs in its inventory valuation costing. The Company records provisions for excess, obsolete or slow moving inventory based on changes in customer demand, technology developments or other economic factors. The Company’s products have product life cycles that range on average from two to three years currently. At both the product introduction and product discontinuation stage, there is a higher degree of risk of inventory obsolescence. The provision for obsolete and excess inventory is evaluated for adequacy at each quarter end. The estimate of the provision for obsolete and excess inventory is partially based on expected future product sales, which are difficult to forecast for certain products. | |||
Revenue Recognition | |||
The Company recognizes revenue from product sales in accordance with FASB ASC Topic 605 “Revenue Recognition”. Product sales represent the majority of the Company’s revenue. The Company recognizes revenue from these product sales when persuasive evidence of an arrangement exists, delivery has occurred, the sale price is fixed or determinable, and collectability is reasonably assured. The Company sells its products on terms which transfer title and risk of loss at a specified location, typically shipping point. Accordingly, revenue recognition from product sales occurs when all factors are met. If these conditions are not met, the Company will defer revenue recognition until such time as these conditions have been satisfied. The Company collects and remits sales taxes in certain jurisdictions and reports revenue net of any associated sales taxes. The Company also sells certain products through distributors who are granted limited rights of return for stock balancing against purchases made within a prior 90 day period, including price adjustments downwards that the Company implements on any existing inventory. The provision for product returns and price adjustments is assessed for adequacy both at the time of sale and at each quarter end and is based on recent historical experience and known customer claims and was not material as of December 31, 2014 or 2013. | |||
Revenue from any engineering consulting and other services is recognized at the time the services are rendered. The Company accounts for its longer-term development contracts, which to date have all been firm fixed-priced contracts, on the percentage-of-completion method, whereby income is recognized as work on contracts progresses, but estimated losses on contracts in progress are charged to operations immediately. The percentage-of-completion is determined using the cost-to-cost method. Amounts are generally billed on a monthly basis. To date all such contracts have been less than one calendar year in duration. | |||
The Company recognizes software license revenue under ASC 985-605 “Software Revenue Recognition” and under ASC 605-25 “Revenue Arrangements with Multiple Deliverables”, and related interpretations, as amended. | |||
Licensed software may be sold as a stand-alone element, with other software elements, or in conjunction with hardware products. When the Company’s products consists of more than one element, it is considered to be a multiple element arrangement (MEA). When sold as a stand-alone element, the revenue is recognized upon shipment as discussed above. When sold as part of a MEA, revenue from the licensed software is recognized when the product and embedded software is shipped to the customer. | |||
For either a single element transaction or a MEA, the Company allocates consideration to all deliverables based on their relative stand-alone selling prices. Amendments to ASC 605-25, which became effective January 1, 2011, establish a hierarchy to determine the stand-alone selling price as follows: | |||
· | Vendor Specific Objective Evidence of the fair value (VSOE), | ||
· | Third Party Evidence (TPE) | ||
· | Best Estimate of the Selling Price (ESP) | ||
Sales which constitute a MEA are accounted for by determining if the elements can be accounted for as separate accounting units, and if so, by applying values to those units, per the hierarchy above. If VSOE is not available, management estimates the fair selling price using historical pricing for similar items, in conjunction with current pricing and discount policies. | |||
Revenue from licensed software is recognized upon shipment and in accordance with industry-specific software recognition accounting guidance. Software updates that will be provided free of charge are evaluated on a case-by-case basis to determine whether they meet the definition of an upgrade and create a multiple element arrangement. The consideration allocated to the unspecified software upgrade rights and non-software services is deferred and recognized rateably over the 24-month estimated life of the devices. The Company’s BESP for the unspecified software upgrade right and non-software services is $25 per unit for the M100 Smart Glass. | |||
Fees charged to customers for post-contract Technical Support are recognized ratably over the term of the contract. Costs related to maintenance obligations are expensed as incurred. | |||
Unearned Revenue | |||
These amounts represent deferred revenue against unfulfilled deliverables of multiple-element products, including unspecified post-delivery support and software updates. | |||
Tooling and Equipment | |||
Tooling and equipment are stated at cost. Depreciation of tooling and equipment is provided for using the straight-line method over the following estimated useful lives: | |||
Computers and Software | 3 years | ||
Manufacturing Equipment | 5 years | ||
Tooling | 3 years | ||
Furniture and Equipment | 5 years | ||
Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized. | |||
Patents and Trademarks | |||
The Company capitalizes the costs of obtaining its patents and registration of Trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 years on a straight-line basis. Unsuccessful applications are written off and expensed in the fiscal period where the application is abandoned or discontinued. | |||
Software Development Costs | |||
The Company capitalizes the costs of obtaining its software once technological feasibility has been determined by management. Such costs are accumulated and capitalized and projects can take several years to complete. Unsuccessful or discontinued software projects are written off and expensed in the fiscal period where the application is abandoned or discontinued. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Once the product is available for general release, accumulated costs are amortized over the life of the asset. The amortization of these costs is included in cost of revenue over the estimated life of the products, which currently is estimated as 3 years using a straight-line basis. | |||
Long-Lived Assets | |||
The Company regularly assesses all of its long-lived assets for impairment when events or circumstances indicate their carrying amounts may not be recoverable, in accordance with FASB ASC Topic 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets.” In 2014, an impairment charge of $104,716 was recorded related to abandoned patents and trademarks. In 2013, an impairment charge of $73,423 was recorded related to abandoned patents and trademarks. | |||
Research and Development | |||
Research and development costs, are expensed as incurred consistent with the guidance of FASB ASC Topic 730, “Research and Development,” and include employee related costs, office expenses, third party design and engineering services, and new product prototyping costs. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. | |||
Shipping and Handling Costs | |||
Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in net sales and cost of goods sold, respectively, in accordance with FASB ASC Topic 605-45, “Revenue Recognition – Principal Agent Consideration”, “Accounting for Shipping and Handling Fees and Costs.” | |||
Provision for Future Warranty Costs | |||
The Company provides for the estimated returns under warranty and the costs of fulfilling our obligations under product warranties at the time the related revenue is recognized. The Company estimates the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific warranty terms and conditions vary depending upon the country in which we do business, but generally include parts and labor over a period generally ranging from one to two years from the date of product shipment. The Company provides a reserve for expected future warranty returns at the time of product shipment or produces over-builds to cover replacements. We regularly reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary each quarter end and is based on historical experience of warranty claims and costs. | |||
Customer Deposits | |||
Customer deposits represents money the Company received in advance of providing a product or engineering services to a customer. All such deposits are short term in nature as the Company delivers the product, unfulfilled portions or engineering services to the customer before the end of its next annual fiscal period. These deposits are credited to the customer against product deliveries or at the completion of the customer’s order. | |||
Advertising | |||
Advertising costs are expensed as incurred and recorded in “Selling and Marketing” in the Consolidated Statements of Operations. Advertising expense for the years ended December 31, 2014 and 2013 amounted to $192,181 and $231,552, respectively. | |||
Income Taxes | |||
The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes.” Accordingly, the Company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. A valuation allowance is established for deferred tax assets in amounts for which realization is not considered more likely than not to occur. | |||
The Company reports any interest and penalties accrued relating to uncertain income tax positions as a component of the income tax provision. | |||
Earnings Per Share | |||
Basic earnings per share is computed by dividing the net (loss) income less accrued dividends on any outstanding preferred stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise of all dilutive employee stock options and warrants applying the treasury stock method promulgated by FASB ASC Topic 260, “Earnings Per Share” and the conversion of any outstanding convertible preferred shares or notes payable that are-in-the-money, applying the as-if-converted method. However, if the assumed exercise of stock options and warrants and the conversion of any preferred shares or convertible notes payable are anti-dilutive, basic and diluted earnings per share are the same for all periods. As a results of the net loss generated in 2014 and 2013 all outstanding instruments would be antidilutive. As of December 31, 2014 and 2013, there were 7,012,767 and 7,362,293 respectively, of common stock share equivalents potentially issuable under convertible debt agreements, options, and warrants that could potentially dilute basic earnings per share in the future. See Note 22 for details of dilutive and potentially dilutive securities issued after December 31, 2014. | |||
Stock-Based Employee Compensation | |||
The Company accounts for share-based compensation to employees and directors in accordance with FASB ASC Topic 718 “Compensation Stock Expense,” which requires that compensation expense be recognized in the consolidated financial statements for share-based awards based on the grant-date fair value using a Black-Scholes valuation model of those awards. The Company uses the fair market value of our common stock on the date of each option grant based on market price of the Company’s common shares. Stock-based compensation expense includes an estimate of forfeitures and is recognized over the requisite service periods of the awards on a straight-line or graded vesting basis, which is generally commensurate with the vesting term. Stock-based compensation expense associated with stock option grants for the years ending December 31, 2014 and 2013 was $260,747 and $159,272, respectively. | |||
The Company issues new shares upon stock option exercises. Please refer to Note 16 Stock Option Plans, for further information. | |||
Derivative Liability and Fair Value Measurements | |||
FASB ASC Topic 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 clarifies that fair value is an 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. ASC 820 permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. In accordance with ASC 815-10-25, we measured the derivative liability using a Lattice pricing model at their issuance date and subsequently they are remeasured. Accordingly, at the end of each quarterly reporting date the derivative fair market value is remeasured and adjusted to current market value. Derivatives that have more than one year remaining in their life are shown as long term derivative liabilities. | |||
Significant unobservable inputs are used in the fair value measurement of the Company’s derivative liability. The primary input factors driving the economic or fair value of the derivative liabilities related to the warrants and convertible notes are the stock price of the Company’s shares, the price volatility of the shares, reset events, and exercise behavior. An important valuation input factor used in determining fair value was the expected volatility of observed share prices and the probability of projected resets in warrant exercise and note conversion prices from financing events before each security’s maturity. For exercise behavior the Company assumed that without a target price of 2 times the projected reset price or higher that the holders of the warrants and convertible notes would hold to maturity. In determining the fair value of the derivatives it was assumed that the Company’s business would be conducted as a going concern and that holding to maturity was reasonable. Further the January 2, 2015 Series A Preferred financing reduced the expected probably to near zero for price resets from financing events. | |||
ASC 820 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability. Such inputs include quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the asset or liability. Such inputs are used to measure fair value when observable inputs are not available. | |||
Recent Accounting Pronouncements | |||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. ASU 2014-09 will be effective in the first quarter of fiscal 2017 and may be applied on a full retrospective or modified retrospective approach. The Company is still currently evaluating the impact of implementation of this standard on its financial statements. | |||
In August 2014, the FASB issued ASU 2014-15, ”Presentation of Financial Statements – Going Concern”, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity will be required to provide certain disclosures if conditions of events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2014-15 on our consolidated financial statements and have not yet determined when we will adopt the standard. | |||
There are no other recent accounting pronouncements that are expected to have a material impact on the consolidated financial statements. | |||
Inventories_Net
Inventories, Net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Inventories, Net | Note 2 — Inventories, Net | |||||||
Inventories consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Purchased Parts and Components | $ | 1,251,224 | $ | 1,094,250 | ||||
Work in Process | 25,974 | 153,065 | ||||||
Finished Goods | 300,889 | 280,279 | ||||||
Less: Reserve for Obsolescence | -666,138 | -573,967 | ||||||
Net | $ | 911,949 | $ | 953,627 | ||||
Tooling_and_Equipment_Net
Tooling and Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
Tooling and Equipment, Net | Note 3 — Tooling and Equipment, Net | |||||||
Tooling and equipment consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Tooling and Manufacturing Equipment | $ | 1,374,751 | $ | 1,748,006 | ||||
Computers and Software | 581,472 | 645,429 | ||||||
Furniture and Equipment | 607,327 | 749,233 | ||||||
$ | 2,563,550 | $ | 3,142,668 | |||||
Less: Accumulated Depreciation | -2,146,585 | -2,696,339 | ||||||
Net | $ | 416,965 | $ | 446,329 | ||||
Total depreciation expense for tooling and equipment for the years ending December 31, 2014 and 2013 was $225,267 and $322,861, respectively. | ||||||||
Patents_and_Trademarks_Net
Patents and Trademarks, Net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Patents and Trademarks, Net | Note 4 — Patents and Trademarks, Net | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Patents and Trademarks | $ | 697,591 | $ | 777,593 | ||||
Less: Accumulated Amortization | -274,102 | -281,985 | ||||||
Net | $ | 423,489 | $ | 495,608 | ||||
Total amortization expense for patents and trademarks for the years ending December 31, 2014 and 2013 it was $54,050 and $54,979, respectively. The estimated aggregate annual amortization expense for each of the next five fiscal years is approximately $50,000. We recorded an impairment charge of $104,716 representing cost of $166,500, less accumulated amortization of $61,784 for the year ending December 31, 2014. We recorded an impairment charge of $73,423 representing cost of $98,788, less accumulated amortization of $25,375 for the year ending December 31, 2013 regarding our abandoned patents and trademarks. | ||||||||
Software_Development_Costs_Net
Software Development Costs, Net | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Research and Development [Abstract] | ||||||||
Software Development Costs, Net | Note 5 — Software Development Costs, Net | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Software Development Costs | $ | 859,351 | $ | 240,561 | ||||
Less: Accumulated Amortization | -71,613 | — | ||||||
Net | $ | 787,738 | $ | 240,561 | ||||
Total amortization expense for capitalized software development costs for the years ending December 31, 2014 was $71,613 and $-0- for 2013. These costs are being amortized over 3 years. The software was completed in September 2014. No amortization was recorded in 2013 because the related software project was not completed as of December 31, 2013. The estimated aggregate annual amortization expense for each of the next two fiscal years is approximately $286,000, and approximately $215,000 in the following year. | ||||||||
Debt_Issuance_Costs
Debt Issuance Costs | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt Issuance Cost | Note 6 — Debt Issuance Costs | |||||||
Debt issuance costs consist principally of legal and accounting fees incurred related to the Senior Convertible Note Financing dated June 3, 2014. | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Debt Issuance Costs | $ | 139,340 | $ | — | ||||
Less: Accumulated Amortization | -26,819 | — | ||||||
Total | $ | 112,521 | $ | — | ||||
The estimated aggregate annual amortization expense for each of the next two fiscal years is approximately $46,000 and approximately $21,000 in the following fiscal year. | ||||||||
Line_of_Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2014 | |
Line Of Credit Facility [Abstract] | |
Lines Of Credit | Note 7 — Line of Credit |
The Company has available a $112,500 line of credit with interest payable at the bank’s prime rate plus 1%. The line is unsecured and personally guaranteed by an officer of the Company. The outstanding balance on this line of credit amounted to $112,500 and $-0- at December 31, 2014 and 2013, respectively. | |
Notes_Payable
Notes Payable | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Notes Payable [Abstract] | ||||||||
Notes Payable | Note 8 — Notes Payable | |||||||
Notes payable represent promissory notes payable by the Company. | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Note payable to officers and shareholders of the Company. Principal along with accrued interest is payable on demand and paid on December 31, 2014. The notes bear interest at 18.5% and secured by all the assets of the Company. | $ | 37,038 | $ | 229,787 | ||||
Note payable secured by all the assets of Company and the guarantee of its President and CEO. The effective interest rate was 31%. The note was repaid in full during the year ended December 31, 2014. | — | 37,383 | ||||||
Note payable to an officer of the Company due on December 31, 2014. The note was secured by all the assets of the Company. The note was repaid in full during the year ended December 31, 2014. | — | 11,297 | ||||||
$ | 37,038 | $ | 278,467 | |||||
A total of $32,209 and $61,130 in accrued interest was paid during the years ending December 31, 2014 and 2013 respectively, to officers and stockholders related to various notes described above. | ||||||||
Accrued_Expenses
Accrued Expenses | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Accrued Expenses | Note 9 — Accrued Expenses | |||||||
Accrued expenses consisted of the following: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued Wages and Related Costs | $ | 101,445 | $ | 91,385 | ||||
Accrued Compensation | 428,786 | 360,670 | ||||||
Accrued Professional Services | 45,000 | 69,500 | ||||||
Accrued Warranty Obligations | 39,624 | 31,619 | ||||||
Accrued Interest | 75,471 | 36,935 | ||||||
Other Accrued Expenses | 8,741 | 1,090 | ||||||
Total | $ | 699,067 | $ | 591,199 | ||||
Included in the above accrued compensation amounts owed to officers of the Company for services rendered that remain outstanding. These amounts are not subject to a fixed repayment schedule and they bear interest at a rate of 8% per annum, compounding monthly. The amounts were $393,536 as of December 31, 2014 and $360,670 as of December 31, 2013. The related interest amounts included in Accrued Interest were $62,081 and $28,173 respectively at December 31, 2014 and December 31, 2013. | ||||||||
The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally one year except in European countries where it is two years. The costs incurred to provide for these warranty obligations are estimated and recorded as an accrued liability at the time of sale. The Company estimates its future warranty costs based on product-based historical performance rates and related costs to repair. | ||||||||
The changes in the Company’s accrued warranty obligations for the years ended December 31, 2014 and 2013 were as follows: | ||||||||
Accrued Warranty Obligations at December 31, 2012 | $ | 93,788 | ||||||
Reductions for Settling Warranties | -74,287 | |||||||
Warranty Issued During Year | 12,118 | |||||||
Accrued Warranty Obligations at December 31, 2013 | 31,619 | |||||||
Reductions for Settling Warranties | -96,460 | |||||||
Warranty Issued During Year | 104,465 | |||||||
Accrued Warranty Obligations at December 31, 2014 | $ | 39,624 | ||||||
Derivative_Liability_and_Fair_
Derivative Liability and Fair Value Measurements | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Derivative Liability and Fair Value Measurements | Note 10 – Derivative Liability and Fair Value Measurements | |||||||||||||
The Company recognized a derivative liability for the warrants to purchase shares of its common stock issued in connection with the equity offering and related debt conversions on August 5, 2013. These warrants have a cashless exercise provision and an exercise price that is subject to adjustment in the event of subsequent equity sales at a lower purchase price (subject to certain exceptions) along with full-ratchet anti-dilution provisions. In accordance with ASC 815-10-25, we measured the derivative liability using a Monte Carlo Options Lattice pricing model at their issuance date and subsequently remeasured the liability on each reporting date. | ||||||||||||||
Accordingly, at the end of each quarterly reporting date the derivative fair market value is remeasured and adjusted to current market value. As at December 31, 2014 and 2013 a total of 4,730,992 and 6,008,516 warrants were outstanding that contained a full-ratchet anti-dilution provision. | ||||||||||||||
The Company recognized a derivative liability during the year ended December 31, 2014 for the $3,000,000 of senior convertible notes with a conversion price that is subject to adjustment in the event of subsequent equity sales at a lower purchase price (subject to certain exceptions). In accordance with ASC 815-10-25, we measured the derivative liability of this embedded conversion option using a Monte Carlo Options Lattice pricing model at the June 3, 2014 issuance date as $1,938,988. The value of the derivative liability at issuance was recorded as a discount against the notes in the Long-Term Debt section of the balance sheet. Accordingly, at the end of each quarterly reporting date the derivative fair market value is remeasured and adjusted to current market value. | ||||||||||||||
The Company has adopted ASC Topic 820 for financial instruments measured at fair value on a recurring basis. ASC Topic 820 defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. | ||||||||||||||
Fair value is defined as 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. ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: | ||||||||||||||
- Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; | ||||||||||||||
- Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and | ||||||||||||||
- Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | ||||||||||||||
We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2014: | ||||||||||||||
Total | (Level 1) | (Level 2) | Level (3) | |||||||||||
Assets | $ | — | $ | — | $ | — | $ | — | ||||||
Total assets measured at fair value | — | — | — | — | ||||||||||
Liabilities | ||||||||||||||
Note Conversion Feature Liability in 2014 | 2,806,942 | — | — | 2,806,942 | ||||||||||
Warrant Liability | 10,734,196 | — | — | 10,734,196 | ||||||||||
Total liabilities measured at fair value (Long-Term) | $ | 13,541,138 | $ | — | $ | — | $ | 13,541,138 | ||||||
We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2013 | ||||||||||||||
Total | (Level 1) | (Level 2) | Level (3) | |||||||||||
Assets | $ | — | $ | — | $ | — | $ | — | ||||||
Total assets measured at fair value | — | — | — | — | ||||||||||
Liabilities | ||||||||||||||
Warrant Liability | 12,035,816 | — | — | 12,035,816 | ||||||||||
Total liabilities measured at fair value (Long-Term) | $ | 12,035,816 | $ | — | $ | — | $ | 12,035,816 | ||||||
Fair value – December 31,2012 | $ | — | ||||||||||||
Warrants issue during period | 9,067,283 | |||||||||||||
Reclassification (reset expiration) of warrant liabilities to Additional Paid-in Capital | -526,245 | |||||||||||||
Reclassification of warrant exercises to Additional Paid-in Capital | -80,500 | |||||||||||||
Change in fair value for the period of warrant derivative liability | -3,575,278 | |||||||||||||
Fair value – December 31, 2013 | 12,035,816 | |||||||||||||
Reclassification of warrant exercises to Additional Paid-in Capital | -2,127,405 | |||||||||||||
Change in fair value for the period of warrant derivative liability | 825,786 | |||||||||||||
Convertible debt issued with an embedded conversion price adjustment provision | 1,938,988 | |||||||||||||
Extinguishment of liability upon conversion of debt | -500,261 | |||||||||||||
Change in fair value of debt conversion price adjustment for the period | 1,368,215 | |||||||||||||
Fair value – December 31, 2014 | $ | 13,541,138 | ||||||||||||
For period ending December 31, 2014, the Monte Carlo Options Lattice pricing model was used to estimate the fair value of the embedded conversion option on the convertible notes issued during this period. The following summary table shows the assumptions used to compute the fair value of the embedded conversion option when granted at issuance and as of December 31, 2014: | ||||||||||||||
December 31, 2014 | At Issuance – June 3, | |||||||||||||
2014 | ||||||||||||||
Assumptions for Pricing Model: | ||||||||||||||
Expected term in years | 2.67 | 3 | ||||||||||||
Volatility range for years 1 to 5 | 81 | % | 57 | % | ||||||||||
Expected annual dividends | None | None | ||||||||||||
Value of convertible debt price adjustment: | ||||||||||||||
Fair value of debt embedded conversion price adjustment option | $ | 2,806,942 | $ | 1,938,988 | ||||||||||
The Monte Carlo Options Lattice pricing model was used to estimate the fair value of warrants outstanding: | ||||||||||||||
December 31, | December 31, | At Issuance | ||||||||||||
2014 | 2013 | Aug 5, 2013 | ||||||||||||
Assumptions for Pricing Model: | ||||||||||||||
Expected term in years | 3.47 to 4.04 | 4.2 to 4.6 | 4.62 to 5.0 | |||||||||||
Volatility range for years | 72 to 81% | 56 to 62% | 61 to 110% | |||||||||||
Risk-free interest rate | 0.93 to 1.83% | 1.75% | 0.77 to 1.41% | |||||||||||
Expected annual dividends | None | None | None | |||||||||||
Value of warrants outstanding: | ||||||||||||||
Fair value of warrants | $ | 10,734,196 | $ | 12,035,816 | $ | 9,067,283 | ||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Long-Term Debt | Note 11 — Long-Term Debt | |||||||
Long-term debt consisted of the following at December 31: | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Note payable for research and development equipment. The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2013 over 48 months. The note carries a 0% interest rate. | 186,131 | 256,727 | ||||||
The note carries a 0% interest, but imputed interest has been accrued based on a 12% discount rate and is reflected as a reduction in the principal. | -46,399 | -71,701 | ||||||
Note payable for which the principal and interest is subject to a fixed blended repayment schedule of 36 months, commencing July 15, 2013. The loan bears interest at 12% per annum and is secured by a subordinated position in all the assets of the Company. | 50,874 | 84,790 | ||||||
Convertible, Senior Secured Notes payable. The principal is due June 3, 2017 and no principal payments are required. The notes carry a 5% interest, payable upon the note’s maturity. Both the interest plus accrued interest is convertible into shares of the Company’s common shares at $2.25, subject to normal adjustments. The notes are secured by a first security position in all the assets of the Company. Most of the notes are held by existing stockholders of the Company. | 2,375,000 | — | ||||||
Unamortized debt discount related to derivative liability associated with above notes’ conversion price that is subject to adjustment in the event of subsequent equity sales at a lower purchase price (subject to certain exceptions). Upon issuance on June 3, 2014 the discount was $1,938,988. As of December 31, 2014 a net of $368,223 of the discount was recognized as interest expense and $222,580 was reversed due to conversions of the notes into shares of common stock. A net gain of $29,262 was recorded on the conversion of $625,000 in notes for the year ending December 31, 2014 resulting from the extinguishment of the debt and the related derivative liability. | -1,348,185 | — | ||||||
$ | 1,217,421 | $ | 269,816 | |||||
Less: Amount Due Within One Year | -128,425 | -99,320 | ||||||
Amount Due After One Year | $ | 1,088,996 | $ | 170,496 | ||||
The calendar year aggregate maturities for all long-term borrowings exclusive of discounts as of December 31, 2014 are as follows: | ||||||||
Total Aggregate Maturity For Period | Amounts | |||||||
2015 | $ | 153,727 | ||||||
2016 | 83,278 | |||||||
2017 | 2,375,000 | |||||||
Total Required Principal Payments Exclusive of Debt Discounts | 2,612,005 | |||||||
Total Unamortized Debt Discounts | -1,394,584 | |||||||
Total Net Long-Term Borrowings as of December 31, 2014 | $ | 1,217,421 | ||||||
On June 3, 2014, we entered into and closed a securities purchase agreement (the “June 2014 Purchase Agreement”) with various accredited investors (the “June 2014 Investors”) pursuant to which we issued and sold to the June 2014 Investors a total of $3,000,000 principal amount of 5% Senior Secured Convertible Notes (the “June 2014 Notes”). The Company granted the June 2014 Investors a first priority security interest in all of the present and future assets of the Company and its subsidiaries, including the equity interests of its subsidiaries. There are no scheduled payments on the June 2014 Notes, which are due on June 3, 2017, prior to maturity. Interest on the June 2014 Notes accrues at the rate of 5% per year, compounded annually, and is payable at maturity in cash, or (provided certain conditions are met) in shares of common stock valued at the then effective conversion price. The June 2014 Notes are convertible into common stock at an initial conversion price of $2.25 per share, subject to adjustment in the event of stock splits, stock dividends, and similar transactions, and, and under their initial terms, in the event of subsequent sales of common stock or securities convertible or exercisable for common stock, at a price per share lower than the then effective conversion price, subject to certain exceptions. The Company is not permitted to prepay any portion of the principal amount of the June 2014 Notes without the prior written consent of the June 2014 Investors unless certain conditions are met. | ||||||||
Pursuant to a registration rights agreement, dated June 3, 2014, between the Company and the June 2014 Investors, the Company agreed to file a registration statement, relating to the resale of common stock issuable upon conversion of the June 2014 Notes and payable as interest on the June 2014 Notes. The Company filed such registration statement on July 2, 2014, and the registration statement was declared effective by the Securities and Exchange Commission on July 10, 2014. | ||||||||
Since these notes were originally issued to December 31, 2014, a total of $625,000 of the June 2014 Notes were converted into 277,777 shares of common stock. | ||||||||
In connection with the sale of the TDG Assets in June 2012, certain of the Company’s lenders entered into Loan Modification and Consent agreements pursuant to which each consented to the sale, as required by the loan agreements between the Company and each such lender, and released their security interests in the TDG Assets sold. Pursuant to a Loan Modification and Consent Agreement regarding the Company’s Convertible, Senior Secured Term Debt Loan, which was in default at the time of the sale, the Company paid this Senior Lender $4,450,000 in reduction of the obligations of the Company to the Senior Lender. The obligation of the Company to repay the remaining amount due to the Convertible Senior Secured Term Debt Lender, $619,122 was represented by a new note in that amount. This new note carried an interest rate of 13.5%, to be paid monthly. The principal amount of the note was to be repaid over 15 months, with equal principal payments commencing on October 15, 2012. The Company did not make any of its required principal payments. The note plus accrued interest was repaid in full on August 5, 2013. | ||||||||
Pursuant to its original transaction with the holder of the Senior Secured Term Debt, the Company issued to that lender warrants to purchase up to 533,333 shares of common stock (the “Warrants”), at an exercise price of $7.47 per share, exercisable at any time prior to December 23, 2014. The fair value of these Warrants, $1,010,379 was reflected as a discount against the loan amount, but because of the loan’s restructuring and the early repayment of the principal resulting from the TDG Assets sale, the unamortized discount of $636,678 was fully expensed in the second quarter of 2012. | ||||||||
Pursuant to the various other Loan Modification and Consent agreements, each secured term note payable holder agreed to defer further payments on their respective Note Payable due from the Company until July 15, 2013 after which the notes were to be repaid in 24 to 36 equal monthly installments. | ||||||||
On March 27, 2013, and amended thereafter, the Company entered into several debt conversion agreements with the respective holders of $2,374,682 of the long-term debt reflected in table above. Pursuant to the agreements, each lender agreed to convert its outstanding secured promissory note, together with accrued interest thereon into shares of the Company’s common stock, subject to the closing of the Company’s proposed public stock offering, at a conversion price equal to the public offering price. In connection with the closing of the public offering on August 5, 2013, $1,755,570 of these loan amounts plus accrued interest were converted to shares of common stock and warrants and the remainder was repaid. | ||||||||
On March 21, 2013, the Company entered into a Securities Purchase Agreement with Hillair Capital Management L.P. (Hillair), pursuant to which, on March 21, 2013, the Company issued to Hillair a $800,000 16% secured convertible debenture due March 21, 2018. The debenture bore interest at a rate of 16% per year, payable quarterly in cash or shares of common stock at the Company’s option. Commencing on February 1, 2014, the Company was required to redeem a certain amount under the debenture on a periodic basis in an amount equal to $200,000 on each of February 1, 2014, May 1, 2014 and August 1, 2014 and $50,000 on each of August 1, 2015, August 1, 2016, August 1, 2017 and March 21, 2018, until the debenture’s maturity date of March 21, 2018; payable in cash or common stock at our option subject to certain conditions. The debenture was convertible into shares of our common stock at a conversion price of $4.29 per share, subject to certain conversion price adjustments. In connection with the debenture issuance, the Company also issued to Hillair five-year warrants to purchase 186,480 shares of its common stock at an initial exercise price of $4.72 per share, which was subject to exercise price adjustments for only the first six months. Upon the closing of the public offering, the warrant exercise was reduced to $2.25. The warrants were reflected as a derivative liability on the balance sheet and recorded as a discount against the debenture. Upon the closing of the public offering on August 5, 2013, the debenture principal and accrued interest was repaid along with an early repayment penalty of $160,000, and the warrant exercise was reduced to $2.25. | ||||||||
On July 15, 2013, the Company entered into a Securities Purchase Agreement with Hillair, pursuant to which the Company issued to Hillair a $200,000 senior secured convertible debenture due March 21, 2018, and (ii) a common stock purchase warrant to purchase up to 38,168 shares of our common stock at an initial exercise price of $5.24 per share, which is subject to exercise price adjustments for the first six months. The warrants may be exercised at any time on or after July 15, 2013 until March 21, 2018. The warrants were reflected as a derivative liability on the balance sheet and recorded as a discount against the debenture, The debenture was convertible into shares of common stock at a conversion price of $5.24 per share, subject to adjustments upon certain events. Interest on the Debenture accrued at the rate of 16% annually and was payable quarterly on February 1, May 1, August 1 and November 1, beginning on August 1, 2013, on any redemption, conversion and at maturity. Interest was payable in cash or at the Company’s option in shares of our common stock, provided certain conditions are met. Commencing on February 1, 2014, the Company would have been obligated to redeem a certain amount under the debenture on a periodic basis in an amount equal to $50,000 on each of February 1, 2014, May 1, 2014 and August 1, 2014 and $12,500 on each of August 1, 2015, August 1, 2016, August 1, 2017 and March 21, 2018, until the debenture’s maturity date of March 21, 2018. Upon the closing of the public offering on August 5, 2013, the debenture principal and accrued interest was repaid along with an early repayment penalty of $40,000, and the warrant exercise was reduced to $2.25. | ||||||||
Upon closing of the debenture transaction, the Company retained Gentry Capital Advisors LLC (Gentry) as a financial advisor and agreed to pay Gentry a fee of $50,000 over a period of 4 months commencing upon the closing. The Company also issued to Gentry five-year warrants to purchase 20,000 shares of common stock at an exercise price of $4.72 per share. The fair value of these warrants upon grant was calculated as $66,603 and was reflected in the deferred debenture issuance costs. In connections with the issuance of the two debentures the Company incurred issuance costs which totaled $257,691, inclusive of the financial advisor’s warrant discussed above. These costs were amortized on a straight-line basis over the five year life of the debenture, until the debt was repaid on August 5, 2013, after which it was expensed and included in debt extinguishment costs for the year ended December 31, 2013. | ||||||||
The Company used cash from the August 5, 2013 offering for the repurchases and cancellation of the two debentures. As a result of the two debt repayments above, the Company incurred a loss on debt extinguishment of $1,272,296 which also includes $240,637 of unamortized capitalized debt issuance costs and $685,965 of unamortized debt discounts which were written-off. | ||||||||
Capital_Lease_Obligations
Capital Lease Obligations | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Capital Lease Obligations [Abstract] | ||||||||
Capital Lease Obligations | Note 12 — Capital Lease Obligations | |||||||
The Company maintains equipment held under capital lease obligations due in monthly installments of $2,049 including interest at rates of 26.71%. The related equipment is collateral to the leases. Final payments are due through September 2015. | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Total Principal Payments | $ | 16,882 | $ | 41,552 | ||||
Less: Amount Due Within One Year | -16,882 | -24,670 | ||||||
Amount Due After One Year | $ | — | $ | 16,882 | ||||
Annual requirements for retirement of the capital lease obligations are as follows: | ||||||||
Amount | ||||||||
2015 | $ | 18,445 | ||||||
Total Minimum Lease Payments | $ | 18,445 | ||||||
Less: Amount Representing Interest | -1,563 | |||||||
Present Value of Minimum Lease Payments | $ | 16,882 | ||||||
The following is a summary of assets held under capital leases: | ||||||||
December 31, | 2014 | 2013 | ||||||
Computers and Software | $ | 16,200 | $ | 30,692 | ||||
Furniture and Equipment | 35,083 | 35,083 | ||||||
$ | 51,283 | 65,775 | ||||||
Less: Accumulated Depreciation | -42,230 | -52,275 | ||||||
Net | $ | 9,053 | $ | 13,500 | ||||
Depreciation expense related to the assets under capital lease amounted to $12,417 and $17,247 for years ended December 31, 2014 and 2013, respectively. | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Income Taxes | Note 13 — Income Taxes | ||||||||
The Company files U.S. federal and various state and foreign tax returns. | |||||||||
Pre-tax earnings consisted of the following for the years ended December 31, 2014 and 2013: | |||||||||
December 31, | 2014 | 2013 | |||||||
Pre-Tax (Loss) Earnings | |||||||||
U.S. | $ | -7,868,858 | $ | -10,146,228 | |||||
Outside the U.S. | — | — | |||||||
Total Pre-Tax (Loss) Earnings | $ | -7,868,858 | $ | -10,146,228 | |||||
The provision (benefit) for income taxes for the years ended December 31, 2014 and 2013 was as follows: | |||||||||
2014 | 2013 | ||||||||
U.S. Income Taxes | |||||||||
Current Provision | $ | — | $ | — | |||||
Deferred Provision | — | — | |||||||
Income Taxes Outside the U.S. | |||||||||
Current Provision | — | — | |||||||
Deferred Provision | — | — | |||||||
State Income Taxes | |||||||||
Current Provision | — | — | |||||||
Deferred Provision | — | — | |||||||
Total Provision | $ | — | $ | — | |||||
A reconciliation of the statutory U.S. federal income tax rate to the effective rates for the years ended December 31, 2014 and 2013 is as follows: | |||||||||
2014 | 2013 | ||||||||
Federal Income Tax at Statutory Rate | 34 | % | 34.4 | % | |||||
State Tax Provision, Net of Federal Benefit | 0.2 | % | 0.5 | % | |||||
Foreign Income Taxed at Other Than 34% | 0 | % | -0.2 | % | |||||
Loss on Derivative Valuation | -11.1 | % | -12.2 | % | |||||
Change in Rate Assumptions | 0 | % | 41 | % | |||||
Other | -2.2 | % | -0.3 | % | |||||
Effective Tax Rate | 20.9 | % | 63.2 | % | |||||
Change in Valuations Allowance | -20.9 | % | -63.2 | % | |||||
Net Effective Tax Rate | 0 | % | 0 | % | |||||
Deferred tax assets (liabilities) for the years ended December 31, 2014 and 2013 consist of the following: | |||||||||
2014 | 2013 | ||||||||
Deferred Tax Assets | |||||||||
Net Operating Loss Carry-forwards | 11,418,496 | 9,739,496 | |||||||
Tax Credit Carry-forwards | 1,433,229 | 1,466,429 | |||||||
Other | 876,606 | 486,497 | |||||||
Total Deferred Tax Assets | $ | 13,728,331 | $ | 11,692,422 | |||||
Deferred Tax Liabilities | |||||||||
Other | 614,027 | 226,344 | |||||||
Net Deferred Tax Assets Before Valuation Allowance | $ | 13,114,304 | $ | 11,466,078 | |||||
Valuation Allowance | -13,114,304 | -11,466,078 | |||||||
Net Deferred Tax Assets | $ | — | $ | — | |||||
As of December 31, 2014, the Company has approximately $33.3 million in net operating loss carry-forwards and approximately $1.4 million of credit carry-forwards which will begin to expire in 2018 if not utilized. | |||||||||
As the result of the assessment of the FASB ASC 740-10 (Prior Authoritative Literature: FASB Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes — An Interpretation of FASB Statement No. 109), the Company has no unrecognized tax benefits. By statute, tax years 2011-2014 are open to examination by the major taxing jurisdictions to which the Company is subject. | |||||||||
FASB ASC 740 (Prior Authoritative Literature: SFAS No. 109, Accounting for Income Taxes), requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differing treatment of items for financial reporting and income tax reporting purposes. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. In light of the historic losses of the Company, a 100% valuation allowance has been recorded to fully offset any benefit associated with the net deferred tax assets. | |||||||||
Capital_Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Note 14 — Capital Stock |
Preferred stock | |
Shares of undesignated preferred stock may be issued in one or more series. The Board of Directors is authorized to establish and designate the different series and to fix and determine the voting powers and other special rights and qualifications. A total of 5,000,000 shares of preferred authorized are authorized as of December 31, 2014 and December 31, 2013. There were 0 shares issued or outstanding on December 31, 2014 and 2013. There were no preferred dividends owing as of December 31, 2014 or 2013. See Subsequent Event Note 22. | |
Common Stock | |
All per share amounts, outstanding shares, warrants, options and shares issuable pursuant to convertible securities for all periods reflect the Company’s 1-for-75 reverse stock split, which was effective February 6, 2013. | |
On August 5, 2013, the Company consummated a public offering of 4,025,000 shares of common stock, and warrants to purchase up to an aggregate of 4,025,000 shares of common stock, at a public offering price of $2.00 per share and $0.0001 per warrant. The warrants have a per share exercise price of $2.25, are exercisable immediately, and expire 5 years from the date of issuance. Total gross proceeds from the public offering were $8,050,000, before underwriting discounts and commissions and other offering expenses of $1,358,641 payable by the Company. Upon the closing of this offering, the Company repaid $2,137,984 in term debt and $200,000 in early repayment penalties. Overall the Company netted approximately $4,350,000 from the public offering. | |
Simultaneous with the closing of this public offering $2,316,007 in outstanding secured debt and accrued interest thereon, converted into common stock and warrants at a conversion price equal to the offering price of $2.00. Additionally $1,642,569 in outstanding long-term accrued compensation and accrued interest owed to our officers was converted into common stock and warrants at a conversion price equal to the offering price of $2.00. | |
Stock_Warrants
Stock Warrants | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Stockholders' Equity Note [Abstract] | ||||||
Stock Warrants | Note 15 — Stock Warrants | |||||
The following table shows the various changes in warrants for the years December 31, 2014 and 2013. | ||||||
December 31, | December 31, | |||||
2014 | 2013 | |||||
Warrants Outstanding, Beginning of Year | 7,147,775 | 656,641 | ||||
Exercised During the Year | -1,285,746 | -59,300 | ||||
Issued During the Year | — | 6,551,654 | ||||
Forfeited During the Year | -625,369 | -1,220 | ||||
Warrants Outstanding, End of Year | 5,236,660 | 7,147,775 | ||||
The outstanding warrants as of December 31, 2014 expire from May 21, 2015 to August 5, 2018. The weighted average remaining term of the warrants is 3.6 years. The weighted average exercise price is $2.28 per share. | ||||||
A total of 206,420 warrants were re-priced to $2.25 from $4.72 and 38,168 warrants were re-priced to $2.25 from $5.24 upon the closing of the public offering on August 5, 2013. | ||||||
Stock_Option_Plans
Stock Option Plans | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||
Stock Option Plans | Note 16 — Stock Option Plans | |||||||||
The Company has the following Stock Option Plans (“Plans”) that allow for the granting of both statutory and incentive stock options or ISOs, which can result in potentially favorable tax treatment to the participant, and non-statutory stock options. The Company’s 2014 Equity Incentive Plan (the “2014 Plan”) was approved by the stockholders of the Company on June 26, 2014. The Company will no longer issue any options under the 2007 and 2009 Plans. The 2014 Plan has an “evergreen provision”, under which the maximum number of shares of common stock that may be issued under the 2014 Plan was initially 1,000,000 and shall automatically be increased each time the Company issues additional shares of common stock so that the total number of shares issuable hereunder shall at all times equal 10% of the then outstanding shares of common stock, unless in any case the Board of Directors adopts a resolution providing that the number of shares issuable under the 2014 Plan shall not be so increased. | ||||||||||
The exercise price per share subject to an option is determined by the administrator, but in the case of an ISO must not be less than the fair market value of a share of our common stock on the date of grant and in the case of a non-statutory stock option must not be less than 100% of the fair market value of a share of our common stock on the date of grant. | ||||||||||
Under the 2014 Plan, the Company may grant stock options, stock appreciation rights, performance awards of stock and/or cash, and stock awards of restricted stock. | ||||||||||
2007 Plan | 2009 Plan | 2014 Plan | Total | |||||||
Outstanding as of December 31, 2014 | 57,209 | 120,842 | 542,500 | 720,551 | ||||||
Available for future issuance under plan | — | — | 457,500 | 457,500 | ||||||
Totals authorized by plan | 57,209 | 120,842 | 1,000,000 | 1,178,051 | ||||||
The 2014 Plan gives the Board of Directors of the Company the ability to determine vesting periods for all stock incentives granted under the 2014 Plan, and allows option terms to be up to ten years from the original grant date. Employees’ incentive stock options must vest at a minimum rate of 20% per year over a five year period, commencing on the date of grant. Most vest ratably over four years commencing on the date of the option grant. In the case of directors, such options are granted annually and they expire ten years after the date of their grant and vest ratably, on a monthly basis, over the next 12 months. Non-employee directors have vesting of 50% immediately on grant and the balance vest ratably, on a monthly basis, over the next 12 months. Advisors or consultants can have vesting range from 100 percent of the option grants vesting immediately to ratably, on a monthly basis, up to 48 months. | ||||||||||
The following table summarizes stock option activity for the years ended December 31, 2014 and 2013: | ||||||||||
Weighted | Weighted Average | |||||||||
Number of | Average | Remaining Life | ||||||||
Shares | Exercise Price | (years) | ||||||||
Outstanding at December 31, 2012 | 192,729 | $ | 10.68 | 4.52 | ||||||
Granted | 45,000 | 2 | ||||||||
Exercised | — | — | ||||||||
Expired or Forfeited | -23,211 | 2.71 | ||||||||
Outstanding at December 31, 2013 | 214,518 | $ | 9.72 | 6.11 | ||||||
Granted | 548,000 | 2.63 | ||||||||
Exercised | -10,819 | 1.71 | ||||||||
Expired or Forfeited | -31,148 | 2.71 | ||||||||
Outstanding at December 31, 2014 | 720,551 | $ | 4.46 | 8.56 | ||||||
As of December 31, 2014, there were 257,786 options that were fully vested and exercisable at weighted average exercise price of $7.72 per share. The weighted average remaining contractual term on the vested options is 6.8 years. | ||||||||||
The unvested balance of 462,384 options as of December 31, 2014, are exercisable at a weighted average exercise price of $2.63 per share. The weighted average remaining contractual term on the vested options is 9.6 years. | ||||||||||
The aggregate intrinsic value of the options outstanding as of December 31, 2014 was approximately $268,000. | ||||||||||
The Black-Scholes-Merton option pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and expected volatility. For valuation purposes, stock option awards were categorized into two groups, stock option grants to employees and stock option grants to members of the Board of Directors. | ||||||||||
The expected term of options granted was estimated to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The expected volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted. The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. Cash dividends have never been paid and are not anticipated to be paid in the foreseeable future. Therefore, the assumed expected dividend yield is zero. | ||||||||||
The following summary table shows the assumptions used to compute the fair value of stock options granted during 2014 and 2013 and their estimated value: | ||||||||||
December 31, | 2014 | 2013 | ||||||||
Assumptions for Black-Scholes: | ||||||||||
Expected term in years | 5.6 to 10 .0 | 10 | ||||||||
Volatility | 118.6 to 119.7% | 128.8 | % | |||||||
Risk-free interest rate | 1.70 to 2.42% | 2.81 | % | |||||||
Expected annual dividends | None | None | ||||||||
Value of options granted: | ||||||||||
Number of options granted | 548,000 | 45,000 | ||||||||
Weighted average fair value/share | $ | 2.63 | $ | $2.00 | ||||||
Fair value of options granted | $ | 1,241,904 | $ | 81,884 | ||||||
FASB ASC Topic 718 requires pre-vesting option forfeitures at the time of grant to be estimated and periodically revised in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense is recorded only for those awards expected to vest using an estimated forfeiture rate based on historical pre-vesting forfeiture data. | ||||||||||
Unrecognized stock-based compensation expense was approximately $1,100,000 as of December 31, 2014, relating to a total of 462,765 unvested stock options under the Company’s stock option plans. This stock-based compensation expense is expected to be recognized over a weighted average period of approximately 2.1 years. | ||||||||||
Commitments
Commitments | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Commitments | Note 17 — Commitments | |||||||
The Company leases office and manufacturing space under operating leases that expires on September 30, 2015. It requires monthly payments of $4,200 plus insurance, taxes and common charges. | ||||||||
Rent expense for the years ended December 31, 2014 and 2013 totaled $116,743 and $104,766, respectively. | ||||||||
Future minimum payments required under operating lease obligations as of December 31, 2014 were as follows: | ||||||||
Total Minimum | ||||||||
2015 | Lease Payments | |||||||
$ | 81,080 | $ | 81,080 | |||||
For the lease agreements described above, the Company is required to pay the pro rata share of the real property taxes and assessments, expenses and other charges associated with these facilities. | ||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 18 — Employee Benefit Plans |
The Company has a Section 401(k) Savings Plan which covers employees who meet certain age and length of service requirements. To date the plan is comprised of 100% employee deferrals. | |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2014 | |
Litigation Disclosure [Abstract] | |
Litigation | Note 19 — Litigation |
We are not currently involved in any pending legal proceeding or litigation. | |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentrations | Note 20 — Concentrations |
For 2014 and 2013, sales to the U.S. government accounted for approximately 10% and 17%, respectively. | |
Accounts receivable from the U.S. government accounted for 6%, and 79% of accounts receivable at December 31, 2014 and 2013, respectively. | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 21 — Related Party Transactions |
Pursuant to a debt conversion agreement of March 2013 and in connection with the closing of the public offering on August 5, 2013, two notes payable to an officer of the Company entire principal amounts plus accrued interest were converted into shares of common stock based on the offering price of $2.00 per share and warrants exercisable at $2.25 per share. Interest expense related to the note payable amounted to $32,507 for the period it was outstanding in 2013. | |
On March 27, 2013, the Company entered into deferred compensation deferral and conversion option agreements with two officers, which agreements were subject to the closing of the Company’s public stock offering and which agreements were effective upon such closing on August 5, 2013. Pursuant to those agreements the officers each converted the entire long-term portion their deferred compensation amounts plus accrued interest in connection with the closing of the public offering on August 5, 2013 a total of $1,126,763 of their deferred compensation amounts plus accrued interest totaling $515,806 into shares of the Company’s common stock based on the offering price of $2.00 per share and warrants exercisable at $2.25 per share. Interest expense related to accrued current and long-term accrued compensation amounts to $0 and $107,209 for the years ended December 31, 2014 and 2013, respectively. | |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22 — Subsequent Events |
Series A Preferred Stock sale of $24,813,000 to Intel Corporation: | |
On January 2, 2015 (the “Series A Closing Date”), we entered into and closed a Series A Preferred Stock Purchase Agreement (the “Series A Purchase Agreement”) with Intel Corporation (the “Series A Purchaser”), pursuant to which we issued and sold to the Series A Purchaser, an aggregate of 49,626 shares of the Company’s Series A Preferred Stock, at a purchase price of $500 per share, for an aggregate purchase price of $24,813,000 (the “Series A Private Placement”). Each share of Series A Preferred Stock is convertible, at the option of the Series A Purchaser, into 100 shares of the Company’s common stock (determined by dividing the Series A Original Issue Price of $500 by the Series A Conversion Price. The Series A Conversion Price is $5.00, subject to adjustment in the event of stock splits, dividends or other combinations). Total costs incurred connection with this offering were approximately $150,000. | |
Each share of Series A Preferred Stock is entitled to receive dividends at a rate of 6% per annum, compounded quarterly and payable in cash or in kind, at the Company’s sole discretion. In the event of the liquidation, dissolution or winding up of the Company, each share of Series A Preferred Stock is entitled to a liquidation preference equal to one times (1x) the Series A Purchaser’s original per share purchase price, plus a right to receive an additional liquidation distribution together with the common stock holders pro rata on an as converted basis, but not in excess of $1,000 per share in the aggregate (subject to adjustment for accrued but unpaid dividends and in the event of stock splits, dividends or other combinations). Each share of Series A Preferred Stock is entitled to vote with the holders of the Company’s common stock on matters presented to its stockholders, and is entitled to cast such number of votes equal to the whole number of shares of common stock into which such shares of Series A Preferred Stock are convertible. The holders of record of the Series A Preferred Stock will be entitled to nominate and elect 2 directors to the Company’s Board of Directors (the “Board Election Right”), at least one of whom will be required to qualify as an “independent” director, as that term is used in applicable exchange listing rules. The Board Election Right with respect to the independent director will terminate on such date as the number of shares of Series A Preferred Stock then outstanding is less than 40% of the original amount purchased by the Series A Purchaser. The Board Election Right with respect to the second director shall terminate on such date as the number of shares of Series A Preferred Stock then outstanding is less than 20% of the original amount purchased by the Series A Purchaser. The Company also granted the Series A Purchaser the right to have a board observer at meetings of the Company’s Board of Directors and committees thereof. | |
For as long as at least 25% (or 12,406 shares) of the Series A Preferred Stock is outstanding, the Company may not, without the consent of holders of at least 60% of the then outstanding shares of Series A Preferred Stock, take certain actions, including but not limited to: (i) liquidate, dissolve, or wind up the business and affairs of the Company; (ii) amend, alter or repeal any provision of its charter or bylaws in a manner that adversely effects the rights of the Series A Preferred Stock; (iii) create or issue any capital stock that is equal to or senior to the Series A Preferred Stock with respect to preferences; (iv) create or issue any debt security, subject to certain exceptions; (v) pay off any debt obligation prior to its stated maturity date; or (vi) enter into any stockholders rights plan or similar arrangement or take other actions that may limit actions that holders of a majority of the Series A Preferred Stock can take under Section 203 (“Section 203”) of the Delaware General Corporation Law, as well as such other customary provisions protecting the rights of the holder of the Series A Preferred Stock, as are outlined in the Certificate of Designation. | |
The Series A Purchaser has the right to participate in any proposed issuance by the Company of its securities, subject to certain exceptions (the “Participation Right”). In the event the Series A Purchaser is not afforded the opportunity to exercise its Participation Right, the Series A Purchaser will have the right, but not the obligation, up to two times per calendar year, to acquire additional securities from the Company in such amount as is sufficient to maintain the Series A Purchaser’s ownership percentage in the Company, calculated immediately prior to such applicable financing, at a purchase price equal to the per share price of the Company’s securities in such applicable financing. | |
In connection with the Series A Private Placement, the Company entered into an investor’s rights agreement (the “Rights Agreement”) with the Series A Purchaser, pursuant to which the Company agreed to file a “resale” registration statement with the Securities and Exchange Commission (the “SEC”) covering all shares of common stock issuable upon conversion of the Series A Preferred Stock sold in the Series A Private Placement on or before February 14, 2015 (the “Filing Date”). The registration statement was declared effective on February 17, 2015. | |
In connection with the Series A Private Placement, each of the holders of notes issued by the Company on June 3, 2014 (the “June 2014 Notes”) agreed to irrevocably waive their rights to anti-dilution protection under Section 5(b) of the June 2014 Notes in the event the Company issues additional securities at a per share price lower than the conversion price of the June 2014 Notes (the “June 2014 Note Waiver”). The obligations of the holder of the June 2014 Notes under the June 2014 Note Waiver will be binding on all assignees of the June 2014 Notes. Additionally, holders of the June 2014 Notes waived their rights of participation with respect to the June 2014 Private Placement and agreed to subordinate their participation rights to the Series A Purchaser’s Participation Right. | |
In connection with the Series A Private Placement, holders of approximately 86% of outstanding warrants issued by the Company in its public offering on July 30, 2013 and in connection with the conversion by certain holders of the Company’s outstanding debt in connection with the Company’s public offering (collectively, the “July 2013 Warrants”) agreed to irrevocably waive their rights to anti-dilution protection under Section 2(b) of the July 2013 Warrants in the event the Company issues additional securities at a per share price lower than the exercise price of the July 2013 Warrants (the “July 2013 Warrant Waiver”). The obligations of the holder of the July 2013 Warrants under the July 2013 Warrant Waiver will be binding on all assignees of the July 2013 Warrants. | |
As a result of the foregoing, the Company’s cash balances would have increased to approximately $24,750,000, the stockholder’s equity (deficit) would have increased from $(14,398,011) to approximately $22,400,000 and the $13,541,138 in derivative liability on the Company’s balance sheet was reduced to approximately $1,390,880, if the January 2, 2015 transaction described herein had closed on December 31, 2014. | |
Additionally it should be noted that the Company’s financial statements for the years ending December 31, 2013 were prepared on the basis the Company would continue as a going concern but there was substantial doubt regarding this assumption expressed by our auditors. As a result of this January 2, 2015 financing, this note regarding doubt about the Company’s ability to continue as a going concern for at least the next 12 months has been deleted. | |
Recent Common Stock Issuances: | |
Since January 1, 2015, the Company has issued a total of 295,000 shares of its restricted common stock as stock awards under the Company’s 2014 Stock Plan and 40,000 shares of its restricted common stock for investor relations services. | |
Recent Warrant Exercises: | |
Since January 1, 2015, the Company has received requests to exercise 4,665,892 warrants that were associated with its August 2013 stock offering which were exercisable into common stock at $2.25 per share. A total of 504,500 of these warrants have been exercised for cash, netting proceeds of $1,135,125 to the Company. The balance of 4,161,392 warrants was exercised on a cashless basis resulting in the issuance of 3,551,281 common shares. The Company did not offer the holders of warrants any inducement to exercise. There are currently 65,100 warrants outstanding from the August 2013 offering and the total warrants outstanding as of the date of the filing of this Annual Report are 537,102. | |
Recent Note Conversions: | |
Since January 1, 2015, $337,500 in convertible notes have been converted to 150,000 shares of common stock during this same time period in 2015. Total convertible notes outstanding as of the date of the filing of this Annual Report, excluding accrued interest is $2,037,500, which is convertible into 905,556 shares. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Operations | Operations | ||
Vuzix Corporation (the Company) was formed in 1997 under the laws of the State of Delaware and maintains its corporate offices in Rochester, New York. The Company is engaged in the design, manufacture, marketing and sale of devices that are worn like eyeglasses and which feature built-in video screens that enable the user to view video and digital content, such as movies, computer data, the Internet or video games. Our products (known commercially as “Video Eyewear”) are used to view high resolution video and digital information from portable devices, such as cell phones, portable media players, gaming systems and laptop computers and from personal computers. Our products provide the user with a virtual viewing experience that emulates viewing a large screen television or desktop computer monitor practically anywhere, anytime. | |||
Principles of Consolidation | Principles of Consolidation | ||
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Vuzix Europe. All significant inter-company transactions have been eliminated. | |||
Segment Data, Geographic Information and Significant Customers | Segment Data, Geographic Information and Significant Customers | ||
The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities. Accordingly, the Company does not accumulate discrete information, other than product revenue and material costs, with respect to separate product lines and does not have separately reportable segments as defined by FASB ASC Topic 280, “Disclosures about Segments of an Enterprise and Related Information,” | |||
Shipments to customers outside of the United States approximated 43% and 36% of sales in 2014 and 2013, respectively. No single international country represented more than 10% of revenues. The Company does not maintain significant amounts of long-lived assets outside of the United States other than tooling held by its third party manufacturers, primarily in China. | |||
The Company has at times had a concentration of sales to the U.S. government, they amounted to approximately 10% and 17% of sales in 2014 and 2013, respectively. Accounts receivable from the U.S. government accounted for 6% and 79% of accounts receivable at December 31, 2014 and 2013, respectively. | |||
Foreign Currency Transactions | Foreign Currency Transactions | ||
The British Pound is the functional currency of the Company’s foreign subsidiary. Gains and losses arising upon settlement of foreign currency denominated transactions or balances are included in the determination of net loss. | |||
Use of Estimates | Use of Estimates | ||
The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. | |||
Concentration of Credit Risk | Concentration of Credit Risk | ||
The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. | |||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||
The Company’s cash received is applied against its revolving line of credit on a periodic basis based on projected monthly cash flows, reducing interest expense. Cash and cash equivalents can include highly liquid investments with original maturities of three months or less. | |||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||
The Company’s financial instruments primarily consists of cash and cash equivalents, accounts receivable, accounts payable, lines of credit, long-term debt and capital leases, customer deposits, accrued expenses, and income taxes payable. | |||
As of the consolidated balance sheet date, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to both the short maturities of these instruments and that the interest rates on borrowing approximate those that would have been available for loans for similar remaining maturity and risk profiles. | |||
Accounts Receivable | Accounts Receivable | ||
The Company carries its trade accounts receivable at invoice amount less an allowance for doubtful accounts. The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at risk receivables. There was no allowance for doubtful accounts as of December 31, 2014 and 2013. The Company does not accrue interest on past due accounts receivable unless it goes into collection. | |||
Inventories | Inventories | ||
Inventories are valued at the lower of cost or market using the weighted average first-in, first-out method. The Company includes direct overhead costs in its inventory valuation costing. The Company records provisions for excess, obsolete or slow moving inventory based on changes in customer demand, technology developments or other economic factors. The Company’s products have product life cycles that range on average from two to three years currently. At both the product introduction and product discontinuation stage, there is a higher degree of risk of inventory obsolescence. The provision for obsolete and excess inventory is evaluated for adequacy at each quarter end. The estimate of the provision for obsolete and excess inventory is partially based on expected future product sales, which are difficult to forecast for certain products. | |||
Revenue Recognition | Revenue Recognition | ||
The Company recognizes revenue from product sales in accordance with FASB ASC Topic 605 “Revenue Recognition”. Product sales represent the majority of the Company’s revenue. The Company recognizes revenue from these product sales when persuasive evidence of an arrangement exists, delivery has occurred, the sale price is fixed or determinable, and collectability is reasonably assured. The Company sells its products on terms which transfer title and risk of loss at a specified location, typically shipping point. Accordingly, revenue recognition from product sales occurs when all factors are met. If these conditions are not met, the Company will defer revenue recognition until such time as these conditions have been satisfied. The Company collects and remits sales taxes in certain jurisdictions and reports revenue net of any associated sales taxes. The Company also sells certain products through distributors who are granted limited rights of return for stock balancing against purchases made within a prior 90 day period, including price adjustments downwards that the Company implements on any existing inventory. The provision for product returns and price adjustments is assessed for adequacy both at the time of sale and at each quarter end and is based on recent historical experience and known customer claims and was not material as of December 31, 2014 or 2013. | |||
Revenue from any engineering consulting and other services is recognized at the time the services are rendered. The Company accounts for its longer-term development contracts, which to date have all been firm fixed-priced contracts, on the percentage-of-completion method, whereby income is recognized as work on contracts progresses, but estimated losses on contracts in progress are charged to operations immediately. The percentage-of-completion is determined using the cost-to-cost method. Amounts are generally billed on a monthly basis. To date all such contracts have been less than one calendar year in duration. | |||
The Company recognizes software license revenue under ASC 985-605 “Software Revenue Recognition” and under ASC 605-25 “Revenue Arrangements with Multiple Deliverables”, and related interpretations, as amended. | |||
Licensed software may be sold as a stand-alone element, with other software elements, or in conjunction with hardware products. When the Company’s products consists of more than one element, it is considered to be a multiple element arrangement (MEA). When sold as a stand-alone element, the revenue is recognized upon shipment as discussed above. When sold as part of a MEA, revenue from the licensed software is recognized when the product and embedded software is shipped to the customer. | |||
For either a single element transaction or a MEA, the Company allocates consideration to all deliverables based on their relative stand-alone selling prices. Amendments to ASC 605-25, which became effective January 1, 2011, establish a hierarchy to determine the stand-alone selling price as follows: | |||
· | Vendor Specific Objective Evidence of the fair value (VSOE), | ||
· | Third Party Evidence (TPE) | ||
· | Best Estimate of the Selling Price (ESP) | ||
Sales which constitute a MEA are accounted for by determining if the elements can be accounted for as separate accounting units, and if so, by applying values to those units, per the hierarchy above. If VSOE is not available, management estimates the fair selling price using historical pricing for similar items, in conjunction with current pricing and discount policies. | |||
Revenue from licensed software is recognized upon shipment and in accordance with industry-specific software recognition accounting guidance. Software updates that will be provided free of charge are evaluated on a case-by-case basis to determine whether they meet the definition of an upgrade and create a multiple element arrangement. The consideration allocated to the unspecified software upgrade rights and non-software services is deferred and recognized rateably over the 24-month estimated life of the devices. The Company’s BESP for the unspecified software upgrade right and non-software services is $25 per unit for the M100 Smart Glass. | |||
Fees charged to customers for post-contract Technical Support are recognized ratably over the term of the contract. Costs related to maintenance obligations are expensed as incurred. | |||
Unearned Revenue | Unearned Revenue | ||
These amounts represent deferred revenue against unfulfilled deliverables of multiple-element products, including unspecified post-delivery support and software updates. | |||
Tooling and Equipment | Tooling and Equipment | ||
Tooling and equipment are stated at cost. Depreciation of tooling and equipment is provided for using the straight-line method over the following estimated useful lives: | |||
Computers and Software | 3 years | ||
Manufacturing Equipment | 5 years | ||
Tooling | 3 years | ||
Furniture and Equipment | 5 years | ||
Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized. | |||
Patents and Trademarks | Patents and Trademarks | ||
The Company capitalizes the costs of obtaining its patents and registration of Trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 years on a straight-line basis. Unsuccessful applications are written off and expensed in the fiscal period where the application is abandoned or discontinued. | |||
Software Development Costs | Software Development Costs | ||
The Company capitalizes the costs of obtaining its software once technological feasibility has been determined by management. Such costs are accumulated and capitalized and projects can take several years to complete. Unsuccessful or discontinued software projects are written off and expensed in the fiscal period where the application is abandoned or discontinued. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Once the product is available for general release, accumulated costs are amortized over the life of the asset. The amortization of these costs is included in cost of revenue over the estimated life of the products, which currently is estimated as 3 years using a straight-line basis. | |||
Long-Lived Assets | Long-Lived Assets | ||
The Company regularly assesses all of its long-lived assets for impairment when events or circumstances indicate their carrying amounts may not be recoverable, in accordance with FASB ASC Topic 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets.” In 2014, an impairment charge of $104,716 was recorded related to abandoned patents and trademarks. In 2013, an impairment charge of $73,423 was recorded related to abandoned patents and trademarks. | |||
Research and Development | Research and Development | ||
Research and development costs, are expensed as incurred consistent with the guidance of FASB ASC Topic 730, “Research and Development,” and include employee related costs, office expenses, third party design and engineering services, and new product prototyping costs. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. | |||
Shipping and Handling Costs | Shipping and Handling Costs | ||
Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in net sales and cost of goods sold, respectively, in accordance with FASB ASC Topic 605-45, “Revenue Recognition – Principal Agent Consideration”, “Accounting for Shipping and Handling Fees and Costs.” | |||
Provision for Future Warranty Costs | Provision for Future Warranty Costs | ||
The Company provides for the estimated returns under warranty and the costs of fulfilling our obligations under product warranties at the time the related revenue is recognized. The Company estimates the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific warranty terms and conditions vary depending upon the country in which we do business, but generally include parts and labor over a period generally ranging from one to two years from the date of product shipment. The Company provides a reserve for expected future warranty returns at the time of product shipment or produces over-builds to cover replacements. We regularly reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary each quarter end and is based on historical experience of warranty claims and costs. | |||
Customer Deposits | Customer Deposits | ||
Customer deposits represents money the Company received in advance of providing a product or engineering services to a customer. All such deposits are short term in nature as the Company delivers the product, unfulfilled portions or engineering services to the customer before the end of its next annual fiscal period. These deposits are credited to the customer against product deliveries or at the completion of the customer’s order. | |||
Advertising | Advertising | ||
Advertising costs are expensed as incurred and recorded in “Selling and Marketing” in the Consolidated Statements of Operations. Advertising expense for the years ended December 31, 2014 and 2013 amounted to $192,181 and $231,552, respectively. | |||
Income Taxes | Income Taxes | ||
The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes.” Accordingly, the Company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. A valuation allowance is established for deferred tax assets in amounts for which realization is not considered more likely than not to occur. | |||
The Company reports any interest and penalties accrued relating to uncertain income tax positions as a component of the income tax provision. | |||
Earnings Per Share | Earnings Per Share | ||
Basic earnings per share is computed by dividing the net (loss) income less accrued dividends on any outstanding preferred stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise of all dilutive employee stock options and warrants applying the treasury stock method promulgated by FASB ASC Topic 260, “Earnings Per Share” and the conversion of any outstanding convertible preferred shares or notes payable that are-in-the-money, applying the as-if-converted method. However, if the assumed exercise of stock options and warrants and the conversion of any preferred shares or convertible notes payable are anti-dilutive, basic and diluted earnings per share are the same for all periods. As a results of the net loss generated in 2014 and 2013 all outstanding instruments would be antidilutive. As of December 31, 2014 and 2013, there were 7,012,767 and 7,362,293 respectively, of common stock share equivalents potentially issuable under convertible debt agreements, options, and warrants that could potentially dilute basic earnings per share in the future. See Note 22 for details of dilutive and potentially dilutive securities issued after December 31, 2014. | |||
Stock-Based Employee Compensation | Stock-Based Employee Compensation | ||
The Company accounts for share-based compensation to employees and directors in accordance with FASB ASC Topic 718 “Compensation Stock Expense,” which requires that compensation expense be recognized in the consolidated financial statements for share-based awards based on the grant-date fair value using a Black-Scholes valuation model of those awards. The Company uses the fair market value of our common stock on the date of each option grant based on market price of the Company’s common shares. Stock-based compensation expense includes an estimate of forfeitures and is recognized over the requisite service periods of the awards on a straight-line or graded vesting basis, which is generally commensurate with the vesting term. Stock-based compensation expense associated with stock option grants for the years ending December 31, 2014 and 2013 was $260,747 and $159,272, respectively. | |||
The Company issues new shares upon stock option exercises. Please refer to Note 16 Stock Option Plans, for further information. | |||
Derivative Liability and Fair Value Measurements | Derivative Liability and Fair Value Measurements | ||
FASB ASC Topic 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 clarifies that fair value is an 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. ASC 820 permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. In accordance with ASC 815-10-25, we measured the derivative liability using a Lattice pricing model at their issuance date and subsequently they are remeasured. Accordingly, at the end of each quarterly reporting date the derivative fair market value is remeasured and adjusted to current market value. Derivatives that have more than one year remaining in their life are shown as long term derivative liabilities. | |||
Significant unobservable inputs are used in the fair value measurement of the Company’s derivative liability. The primary input factors driving the economic or fair value of the derivative liabilities related to the warrants and convertible notes are the stock price of the Company’s shares, the price volatility of the shares, reset events, and exercise behavior. An important valuation input factor used in determining fair value was the expected volatility of observed share prices and the probability of projected resets in warrant exercise and note conversion prices from financing events before each security’s maturity. For exercise behavior the Company assumed that without a target price of 2 times the projected reset price or higher that the holders of the warrants and convertible notes would hold to maturity. In determining the fair value of the derivatives it was assumed that the Company’s business would be conducted as a going concern and that holding to maturity was reasonable. Further the January 2, 2015 Series A Preferred financing reduced the expected probably to near zero for price resets from financing events. | |||
ASC 820 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs are inputs other than quoted prices included in Level 1 that are directly or indirectly observable for the asset or liability. Such inputs include quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, or inputs derived principally from or corroborated by observable market data by correlation or other means. Level 3 inputs are unobservable inputs for the asset or liability. Such inputs are used to measure fair value when observable inputs are not available. | |||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 ("ASU 2014-09"), Revenue from Contracts with Customers, an updated standard on revenue recognition. ASU 2014-09 provides enhancements to the quality and consistency of how revenue is reported while also improving comparability in the financial statements of companies reporting using International Financial Reporting Standards and GAAP. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively, and improve guidance for multiple-element arrangements. ASU 2014-09 will be effective in the first quarter of fiscal 2017 and may be applied on a full retrospective or modified retrospective approach. The Company is still currently evaluating the impact of implementation of this standard on its financial statements. | |||
In August 2014, the FASB issued ASU 2014-15, ”Presentation of Financial Statements – Going Concern”, which provides guidance on determining when and how to disclose going-concern uncertainties in the financial statements. The new standard requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern within one year of the date the financial statements are issued. An entity will be required to provide certain disclosures if conditions of events raise substantial doubt about the entity’s ability to continue as a going concern. The ASU applies to all entities and is effective for annual periods ending after December 15, 2016, and interim periods thereafter, with early adoption permitted. We are currently evaluating the impact of the adoption of ASU 2014-15 on our consolidated financial statements and have not yet determined when we will adopt the standard. | |||
There are no other recent accounting pronouncements that are expected to have a material impact on the consolidated financial statements. | |||
Inventories_Net_Tables
Inventories, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ||||||||
Schedule of Inventories | Inventories consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Purchased Parts and Components | $ | 1,251,224 | $ | 1,094,250 | ||||
Work in Process | 25,974 | 153,065 | ||||||
Finished Goods | 300,889 | 280,279 | ||||||
Less: Reserve for Obsolescence | -666,138 | -573,967 | ||||||
Net | $ | 911,949 | $ | 953,627 | ||||
Tooling_and_Equipment_Net_Tabl
Tooling and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||
Property, Plant and Equipment | Tooling and equipment consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Tooling and Manufacturing Equipment | $ | 1,374,751 | $ | 1,748,006 | ||||
Computers and Software | 581,472 | 645,429 | ||||||
Furniture and Equipment | 607,327 | 749,233 | ||||||
$ | 2,563,550 | $ | 3,142,668 | |||||
Less: Accumulated Depreciation | -2,146,585 | -2,696,339 | ||||||
Net | $ | 416,965 | $ | 446,329 | ||||
Patents_and_Trademarks_Net_Tab
Patents and Trademarks, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||
Schedule of Finite-Lived Intangible Assets | December 31, | December 31, | ||||||
2014 | 2013 | |||||||
Patents and Trademarks | $ | 697,591 | $ | 777,593 | ||||
Less: Accumulated Amortization | -274,102 | -281,985 | ||||||
Net | $ | 423,489 | $ | 495,608 | ||||
Software_Development_Costs_Net1
Software Development Costs, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Research and Development [Abstract] | ||||||||
Schedule Of Software Development Costs | December 31, | December 31, | ||||||
2014 | 2013 | |||||||
Software Development Costs | $ | 859,351 | $ | 240,561 | ||||
Less: Accumulated Amortization | -71,613 | — | ||||||
Net | $ | 787,738 | $ | 240,561 | ||||
Debt_Issuance_Costs_Tables
Debt Issuance Costs (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule Of Debt issuance Cost | ||||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Debt Issuance Costs | $ | 139,340 | $ | — | ||||
Less: Accumulated Amortization | -26,819 | — | ||||||
Total | $ | 112,521 | $ | — | ||||
Notes_Payable_Tables
Notes Payable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Notes Payable [Abstract] | ||||||||
Notes payable represent promissory notes payable | Notes payable represent promissory notes payable by the Company. | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Note payable to officers and shareholders of the Company. Principal along with accrued interest is payable on demand and paid on December 31, 2014. The notes bear interest at 18.5% and secured by all the assets of the Company. | $ | 37,038 | $ | 229,787 | ||||
Note payable secured by all the assets of Company and the guarantee of its President and CEO. The effective interest rate was 31%. The note was repaid in full during the year ended December 31, 2014. | — | 37,383 | ||||||
Note payable to an officer of the Company due on December 31, 2014. The note was secured by all the assets of the Company. The note was repaid in full during the year ended December 31, 2014. | — | 11,297 | ||||||
$ | 37,038 | $ | 278,467 | |||||
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Payables and Accruals [Abstract] | ||||||||
Components of Accrued Expenses | Accrued expenses consisted of the following: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Accrued Wages and Related Costs | $ | 101,445 | $ | 91,385 | ||||
Accrued Compensation | 428,786 | 360,670 | ||||||
Accrued Professional Services | 45,000 | 69,500 | ||||||
Accrued Warranty Obligations | 39,624 | 31,619 | ||||||
Accrued Interest | 75,471 | 36,935 | ||||||
Other Accrued Expenses | 8,741 | 1,090 | ||||||
Total | $ | 699,067 | $ | 591,199 | ||||
Changes in Accrued Warranty Obligations | The changes in the Company’s accrued warranty obligations for the years ended December 31, 2014 and 2013 were as follows: | |||||||
Accrued Warranty Obligations at December 31, 2012 | $ | 93,788 | ||||||
Reductions for Settling Warranties | -74,287 | |||||||
Warranty Issued During Year | 12,118 | |||||||
Accrued Warranty Obligations at December 31, 2013 | 31,619 | |||||||
Reductions for Settling Warranties | -96,460 | |||||||
Warranty Issued During Year | 104,465 | |||||||
Accrued Warranty Obligations at December 31, 2014 | $ | 39,624 | ||||||
Derivative_Liability_and_Fair_1
Derivative Liability and Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2014: | |||||||||||||
Total | (Level 1) | (Level 2) | Level (3) | |||||||||||
Assets | $ | — | $ | — | $ | — | $ | — | ||||||
Total assets measured at fair value | — | — | — | — | ||||||||||
Liabilities | ||||||||||||||
Note Conversion Feature Liability in 2014 | 2,806,942 | — | — | 2,806,942 | ||||||||||
Warrant Liability | 10,734,196 | — | — | 10,734,196 | ||||||||||
Total liabilities measured at fair value (Long-Term) | $ | 13,541,138 | $ | — | $ | — | $ | 13,541,138 | ||||||
Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 2013 | ||||||||||||||
Total | (Level 1) | (Level 2) | Level (3) | |||||||||||
Assets | $ | — | $ | — | $ | — | $ | — | ||||||
Total assets measured at fair value | — | — | — | — | ||||||||||
Liabilities | ||||||||||||||
Warrant Liability | 12,035,816 | — | — | 12,035,816 | ||||||||||
Total liabilities measured at fair value (Long-Term) | $ | 12,035,816 | $ | — | $ | — | $ | 12,035,816 | ||||||
Schedule of Fair Value Level 3 warrant liabilities | Fair value – December 31,2012 | $ | — | |||||||||||
Warrants issue during period | 9,067,283 | |||||||||||||
Reclassification (reset expiration) of warrant liabilities to Additional Paid-in Capital | -526,245 | |||||||||||||
Reclassification of warrant exercises to Additional Paid-in Capital | -80,500 | |||||||||||||
Change in fair value for the period of warrant derivative liability | -3,575,278 | |||||||||||||
Fair value – December 31, 2013 | 12,035,816 | |||||||||||||
Reclassification of warrant exercises to Additional Paid-in Capital | -2,127,405 | |||||||||||||
Change in fair value for the period of warrant derivative liability | 825,786 | |||||||||||||
Convertible debt issued with an embedded conversion price adjustment provision | 1,938,988 | |||||||||||||
Extinguishment of liability upon conversion of debt | -500,261 | |||||||||||||
Change in fair value of debt conversion price adjustment for the period | 1,368,215 | |||||||||||||
Fair value – December 31, 2014 | $ | 13,541,138 | ||||||||||||
Schedule Of Fair Value Of Warrants | The following summary table shows the assumptions used to compute the fair value of the embedded conversion option when granted at issuance and as of December 31, 2014: | |||||||||||||
December 31, 2014 | At Issuance – June 3, | |||||||||||||
2014 | ||||||||||||||
Assumptions for Pricing Model: | ||||||||||||||
Expected term in years | 2.67 | 3 | ||||||||||||
Volatility range for years 1 to 5 | 81 | % | 57 | % | ||||||||||
Expected annual dividends | None | None | ||||||||||||
Value of convertible debt price adjustment: | ||||||||||||||
Fair value of debt embedded conversion price adjustment option | $ | 2,806,942 | $ | 1,938,988 | ||||||||||
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | The Monte Carlo Options Lattice pricing model was used to estimate the fair value of warrants outstanding: | |||||||||||||
December 31, | December 31, | At Issuance | ||||||||||||
2014 | 2013 | Aug 5, 2013 | ||||||||||||
Assumptions for Pricing Model: | ||||||||||||||
Expected term in years | 3.47 to 4.04 | 4.2 to 4.6 | 4.62 to 5.0 | |||||||||||
Volatility range for years | 72 to 81% | 56 to 62% | 61 to 110% | |||||||||||
Risk-free interest rate | 0.93 to 1.83% | 1.75% | 0.77 to 1.41% | |||||||||||
Expected annual dividends | None | None | None | |||||||||||
Value of warrants outstanding: | ||||||||||||||
Fair value of warrants | $ | 10,734,196 | $ | 12,035,816 | $ | 9,067,283 | ||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Components of Long-Term Debt | Long-term debt consisted of the following at December 31: | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Note payable for research and development equipment. The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2013 over 48 months. The note carries a 0% interest rate. | 186,131 | 256,727 | ||||||
The note carries a 0% interest, but imputed interest has been accrued based on a 12% discount rate and is reflected as a reduction in the principal. | -46,399 | -71,701 | ||||||
Note payable for which the principal and interest is subject to a fixed blended repayment schedule of 36 months, commencing July 15, 2013. The loan bears interest at 12% per annum and is secured by a subordinated position in all the assets of the Company. | 50,874 | 84,790 | ||||||
Convertible, Senior Secured Notes payable. The principal is due June 3, 2017 and no principal payments are required. The notes carry a 5% interest, payable upon the note’s maturity. Both the interest plus accrued interest is convertible into shares of the Company’s common shares at $2.25, subject to normal adjustments. The notes are secured by a first security position in all the assets of the Company. Most of the notes are held by existing stockholders of the Company. | 2,375,000 | — | ||||||
Unamortized debt discount related to derivative liability associated with above notes’ conversion price that is subject to adjustment in the event of subsequent equity sales at a lower purchase price (subject to certain exceptions). Upon issuance on June 3, 2014 the discount was $1,938,988. As of December 31, 2014 a net of $368,223 of the discount was recognized as interest expense and $222,580 was reversed due to conversions of the notes into shares of common stock. A net gain of $29,262 was recorded on the conversion of $625,000 in notes for the year ending December 31, 2014 resulting from the extinguishment of the debt and the related derivative liability. | -1,348,185 | — | ||||||
$ | 1,217,421 | $ | 269,816 | |||||
Less: Amount Due Within One Year | -128,425 | -99,320 | ||||||
Amount Due After One Year | $ | 1,088,996 | $ | 170,496 | ||||
Aggregate maturities for all long-term borrowings | The calendar year aggregate maturities for all long-term borrowings exclusive of discounts as of December 31, 2014 are as follows: | |||||||
Total Aggregate Maturity For Period | Amounts | |||||||
2015 | $ | 153,727 | ||||||
2016 | 83,278 | |||||||
2017 | 2,375,000 | |||||||
Total Required Principal Payments Exclusive of Debt Discounts | 2,612,005 | |||||||
Total Unamortized Debt Discounts | -1,394,584 | |||||||
Total Net Long-Term Borrowings as of December 31, 2014 | $ | 1,217,421 | ||||||
Capital_Lease_Obligations_Tabl
Capital Lease Obligations (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Capital Lease Obligations [Abstract] | ||||||||
Capital lease obligation payments | The related equipment is collateral to the leases. Final payments are due through September 2015. | |||||||
December 31, | December 31, | |||||||
2014 | 2013 | |||||||
Total Principal Payments | $ | 16,882 | $ | 41,552 | ||||
Less: Amount Due Within One Year | -16,882 | -24,670 | ||||||
Amount Due After One Year | $ | — | $ | 16,882 | ||||
Annual requirements for retirement of the capital lease obligations | Annual requirements for retirement of the capital lease obligations are as follows: | |||||||
Amount | ||||||||
2015 | $ | 18,445 | ||||||
Total Minimum Lease Payments | $ | 18,445 | ||||||
Less: Amount Representing Interest | -1,563 | |||||||
Present Value of Minimum Lease Payments | $ | 16,882 | ||||||
Summary of assets held under capital leases | The following is a summary of assets held under capital leases: | |||||||
December 31, | 2014 | 2013 | ||||||
Computers and Software | $ | 16,200 | $ | 30,692 | ||||
Furniture and Equipment | 35,083 | 35,083 | ||||||
$ | 51,283 | 65,775 | ||||||
Less: Accumulated Depreciation | -42,230 | -52,275 | ||||||
Net | $ | 9,053 | $ | 13,500 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Income Tax Disclosure [Abstract] | |||||||||
Schedule Of Pre Tax Earnings | Pre-tax earnings consisted of the following for the years ended December 31, 2014 and 2013: | ||||||||
December 31, | 2014 | 2013 | |||||||
Pre-Tax (Loss) Earnings | |||||||||
U.S. | $ | -7,868,858 | $ | -10,146,228 | |||||
Outside the U.S. | — | — | |||||||
Total Pre-Tax (Loss) Earnings | $ | -7,868,858 | $ | -10,146,228 | |||||
Schedule of Components of Income Tax Expense (Benefit) | The provision (benefit) for income taxes for the years ended December 31, 2014 and 2013 was as follows: | ||||||||
2014 | 2013 | ||||||||
U.S. Income Taxes | |||||||||
Current Provision | $ | — | $ | — | |||||
Deferred Provision | — | — | |||||||
Income Taxes Outside the U.S. | |||||||||
Current Provision | — | — | |||||||
Deferred Provision | — | — | |||||||
State Income Taxes | |||||||||
Current Provision | — | — | |||||||
Deferred Provision | — | — | |||||||
Total Provision | $ | — | $ | — | |||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal income tax rate to the effective rates for the years ended December 31, 2014 and 2013 is as follows: | ||||||||
2014 | 2013 | ||||||||
Federal Income Tax at Statutory Rate | 34 | % | 34.4 | % | |||||
State Tax Provision, Net of Federal Benefit | 0.2 | % | 0.5 | % | |||||
Foreign Income Taxed at Other Than 34% | 0 | % | -0.2 | % | |||||
Loss on Derivative Valuation | -11.1 | % | -12.2 | % | |||||
Change in Rate Assumptions | 0 | % | 41 | % | |||||
Other | -2.2 | % | -0.3 | % | |||||
Effective Tax Rate | 20.9 | % | 63.2 | % | |||||
Change in Valuations Allowance | -20.9 | % | -63.2 | % | |||||
Net Effective Tax Rate | 0 | % | 0 | % | |||||
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets (liabilities) for the years ended December 31, 2014 and 2013 consist of the following: | ||||||||
2014 | 2013 | ||||||||
Deferred Tax Assets | |||||||||
Net Operating Loss Carry-forwards | 11,418,496 | 9,739,496 | |||||||
Tax Credit Carry-forwards | 1,433,229 | 1,466,429 | |||||||
Other | 876,606 | 486,497 | |||||||
Total Deferred Tax Assets | $ | 13,728,331 | $ | 11,692,422 | |||||
Deferred Tax Liabilities | |||||||||
Other | 614,027 | 226,344 | |||||||
Net Deferred Tax Assets Before Valuation Allowance | $ | 13,114,304 | $ | 11,466,078 | |||||
Valuation Allowance | -13,114,304 | -11,466,078 | |||||||
Net Deferred Tax Assets | $ | — | $ | — | |||||
Stock_Warrants_Tables
Stock Warrants (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Stockholders' Equity Note [Abstract] | ||||||
Changes in Warrants | The following table shows the various changes in warrants for the years December 31, 2014 and 2013. | |||||
December 31, | December 31, | |||||
2014 | 2013 | |||||
Warrants Outstanding, Beginning of Year | 7,147,775 | 656,641 | ||||
Exercised During the Year | -1,285,746 | -59,300 | ||||
Issued During the Year | — | 6,551,654 | ||||
Forfeited During the Year | -625,369 | -1,220 | ||||
Warrants Outstanding, End of Year | 5,236,660 | 7,147,775 | ||||
Stock_Option_Plans_Tables
Stock Option Plans (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Stock Option Plans [Abstract] | ||||||||||
Stock option plans | Under the 2014 Plan, the Company may grant stock options, stock appreciation rights, performance awards of stock and/or cash, and stock awards of restricted stock. | |||||||||
2007 Plan | 2009 Plan | 2014 Plan | Total | |||||||
Outstanding as of December 31, 2014 | 57,209 | 120,842 | 542,500 | 720,551 | ||||||
Available for future issuance under plan | — | — | 457,500 | 457,500 | ||||||
Totals authorized by plan | 57,209 | 120,842 | 1,000,000 | 1,178,051 | ||||||
Summary of Stock Option Activity | The following table summarizes stock option activity for the years ended December 31, 2014 and 2013: | |||||||||
Weighted | Weighted Average | |||||||||
Number of | Average | Remaining Life | ||||||||
Shares | Exercise Price | (years) | ||||||||
Outstanding at December 31, 2012 | 192,729 | $ | 10.68 | 4.52 | ||||||
Granted | 45,000 | 2 | ||||||||
Exercised | — | — | ||||||||
Expired or Forfeited | -23,211 | 2.71 | ||||||||
Outstanding at December 31, 2013 | 214,518 | $ | 9.72 | 6.11 | ||||||
Granted | 548,000 | 2.63 | ||||||||
Exercised | -10,819 | 1.71 | ||||||||
Expired or Forfeited | -31,148 | 2.71 | ||||||||
Outstanding at December 31, 2014 | 720,551 | $ | 4.46 | 8.56 | ||||||
Summary of assumptions used to compute the fair value of stock options granted | The following summary table shows the assumptions used to compute the fair value of stock options granted during 2014 and 2013 and their estimated value: | |||||||||
December 31, | 2014 | 2013 | ||||||||
Assumptions for Black-Scholes: | ||||||||||
Expected term in years | 5.6 to 10 .0 | 10 | ||||||||
Volatility | 118.6 to 119.7% | 128.8 | % | |||||||
Risk-free interest rate | 1.70 to 2.42% | 2.81 | % | |||||||
Expected annual dividends | None | None | ||||||||
Value of options granted: | ||||||||||
Number of options granted | 548,000 | 45,000 | ||||||||
Weighted average fair value/share | $ | 2.63 | $ | $2.00 | ||||||
Fair value of options granted | $ | 1,241,904 | $ | 81,884 | ||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||
Contractual Payment Obligations for Operating Leases | Future minimum payments required under operating lease obligations as of December 31, 2014 were as follows: | |||||||
Total Minimum | ||||||||
2015 | Lease Payments | |||||||
$ | 81,080 | $ | 81,080 | |||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Property Plant And Equipment Useful Life) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Computers and Software | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Manufacturing Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Tooling | |
Property, Plant and Equipment, Estimated Useful Lives | 3 years |
Furniture and Equipment | |
Property, Plant and Equipment, Estimated Useful Lives | 5 years |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Additional Information) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Percentage Of Revenues From External Customers | 43.00% | 36.00% |
Maximum Percentage Of Revenues From Foreign Countries | 10.00% | |
Percentage On Accounts Receivable | 6.00% | 79.00% |
Advertising Expense | $192,181 | $231,552 |
Stock Options | 260,747 | 159,272 |
Asset Impairment Charges | $104,716 | $73,423 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |
Earnings Per Share, Potentially Dilutive Securities | 7,012,767 | 7,362,293 |
M100 Smart Glass | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Best Selling Price Per Unit | 25 | |
Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |
Trademarks and Patents | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 15 years | |
Minority Stockholder | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 17.00% |
Inventories_Net_Components_of_
Inventories, Net (Components of Inventories) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Inventory Disclosure [Line Items] | ||
Purchased Parts and Components | $1,251,224 | $1,094,250 |
Work in Process | 25,974 | 153,065 |
Finished Goods | 300,889 | 280,279 |
Less: Reserve for Obsolescence | -666,138 | -573,967 |
Net | $911,949 | $953,627 |
Tooling_and_Equipment_Net_Sche
Tooling and Equipment, Net (Schedule Of Tooling And Equipment) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $2,563,550 | $3,142,668 |
Less: Accumulated Depreciation | -2,146,585 | -2,696,339 |
Net | 416,965 | 446,329 |
Tooling and Manufacturing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 1,374,751 | 1,748,006 |
Computers and Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 581,472 | 645,429 |
Funiture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $607,327 | $749,233 |
Tooling_and_Equipment_Net_Addi
Tooling and Equipment, Net (Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation and Amortization | $279,317 | $377,840 |
Tooling and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation and Amortization | $225,267 | $322,861 |
Patents_and_Trademarks_Net_Sch
Patents and Trademarks, Net (Schedule Of Patents and Trademarks) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Patents and Trademarks | $697,591 | $777,593 |
Less: Accumulated Amortization | -274,102 | -281,985 |
Net | $423,489 | $495,608 |
Patents_and_Trademarks_Net_Add
Patents and Trademarks, Net (Additional Information) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization | $54,050 | $54,979 |
Impairment of Patents and Trademarks | 104,716 | 73,423 |
Amortization of Intangible Assets | 71,613 | 0 |
Abandoned Patents and Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 50,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 50,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 50,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 50,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 50,000 | |
Impairment of Patents and Trademarks | 104,716 | 73,423 |
Amortization of Intangible Assets | 166,500 | 98,788 |
Asset Impairment Cost | $61,784 | $25,375 |
Software_Development_Costs_Net2
Software Development Costs, Net (Schedule Of Software Development Costs) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Software Development Costs | $859,351 | $240,561 |
Less: Accumulated Amortization | -71,613 | 0 |
Net | $787,738 | $240,561 |
Software_Development_Costs_Net3
Software Development Costs, Net (Additional Information) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Amortization | $54,050 | $54,979 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |
Software and Software Development Costs [Member] | ||
Amortization | 71,613 | 0 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 286,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | $215,000 | |
Minimum [Member] | ||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years |
Debt_Issuance_Costs_Detail
Debt Issuance Costs (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Debt Issuance Costs | $139,340 | $0 |
Less: Accumulated Amortization | -26,819 | 0 |
Total | $112,521 | $0 |
Debt_Issuance_Costs_Additional
Debt Issuance Costs (Additional Information)(Details) (Convertible Notes Payable [Member], USD $) | Dec. 31, 2014 |
Convertible Notes Payable [Member] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $46,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | $21,000 |
Line_of_Credit_Additional_Info
Line of Credit (Additional Information) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Line of Credit Facility [Line Items] | ||
Line of credit | $112,500 | $0 |
Line Of Credit, Current | $112,500 | $0 |
Line of Credit Facility, Interest Rate Description | bank’s prime rate plus 1% |
Notes_Payable_Notes_Payable_Re
Notes Payable (Notes Payable Represent Promissory Notes) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Notes and Promissory Notes [Line Items] | ||
Notes Payable (Note 11) | $37,038 | $278,467 |
Officer and Shareholder | ||
Notes and Promissory Notes [Line Items] | ||
Notes Payable (Note 11) | 37,038 | 229,787 |
President and Ceo | Secured By Asset [Member] | ||
Notes and Promissory Notes [Line Items] | ||
Notes Payable (Note 11) | 0 | 37,383 |
Officer | ||
Notes and Promissory Notes [Line Items] | ||
Notes Payable (Note 11) | $0 | $11,297 |
Notes_Payable_Notes_Payable_Re1
Notes Payable (Notes Payable Represent Promissory Notes) (Parenthetical) (Detail) | Jul. 15, 2013 | Mar. 21, 2013 | Dec. 31, 2014 |
Notes and Promissory Notes [Line Items] | |||
Interest percentage | 16.00% | 16.00% | |
Officer and Shareholder | |||
Notes and Promissory Notes [Line Items] | |||
Interest percentage | 18.50% | ||
President and Ceo | Secured By Asset | |||
Notes and Promissory Notes [Line Items] | |||
Interest percentage | 31.00% |
Notes_Payable_Additional_Infor
Notes Payable (Additional Information) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Notes and Promissory Notes [Line Items] | ||
Accrued interest | $32,209 | $61,130 |
Accrued_Expenses_Components_of
Accrued Expenses (Components of Accrued Expenses) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Liabilities [Line Items] | ||
Accrued Wages and Related Costs | $101,445 | $91,385 |
Accrued Compensation | 428,786 | 360,670 |
Accrued Professional Services | 45,000 | 69,500 |
Accrued Warranty Obligations | 39,624 | 31,619 |
Accrued Interest | 75,471 | 36,935 |
Other Accrued Expenses | 8,741 | 1,090 |
Total | $699,067 | $591,199 |
Accrued_Expenses_Changes_in_Ac
Accrued Expenses (Changes in Accrued Warranty Obligations) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Class Of Warrant Or Right [Line Items] | ||
Accrued Warranty Obligations , begining balance | $31,619 | $93,788 |
Reductions for Settling Warranties | -96,460 | -74,287 |
Warranty Issued During Year | 104,465 | 12,118 |
Accrued Warranty Obligations , Ending balance | $39,624 | $31,619 |
Accrued_Expenses_Additional_In
Accrued Expenses - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Officers Compensation Payable Compounding Monthly Interest Rate | 8.00% | |
Employee-related Liabilities, Current | $393,536 | $360,670 |
Interest Payable | $62,081 | $28,173 |
Derivative_Liability_and_Fair_2
Derivative Liability and Fair Value Measurements (Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | $0 | $0 |
Total assets measured at fair value | 0 | 0 |
Note Conversion Feature Liability in 2014 | 2,806,942 | |
Warrant Liability | 10,734,196 | 12,035,816 |
Total liabilities measured at fair value (Long-Term) | 13,541,138 | 12,035,816 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Note Conversion Feature Liability in 2014 | 0 | |
Warrant Liability | 0 | 0 |
Total liabilities measured at fair value (Long-Term) | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Note Conversion Feature Liability in 2014 | 0 | |
Warrant Liability | 0 | 0 |
Total liabilities measured at fair value (Long-Term) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets | 0 | 0 |
Total assets measured at fair value | 0 | 0 |
Note Conversion Feature Liability in 2014 | 2,806,942 | |
Warrant Liability | 10,734,196 | 12,035,816 |
Total liabilities measured at fair value (Long-Term) | $13,541,138 | $12,035,816 |
Derivative_Liability_and_Fair_3
Derivative Liability and Fair Value Measurements (Schedule of Fair Value Level 3 Warrant Liabilities) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Jun. 03, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Convertible debt issued with an embedded conversion price adjustment provision | $1,938,988 | $2,806,942 | |
Extinguishment of liability upon conversion of debt | -500,261 | ||
Warrant Liabilities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value -beginning of period | 12,035,816 | 0 | |
Warrants issue during period | 9,067,283 | ||
Reclassification (reset expiration) of warrant liabilities to Additional Paid-in Capital | -526,245 | ||
Reclassification of warrant exercises to Additional Paid-in Capital | -2,127,405 | -80,500 | |
Change in fair value for the period of warrant derivative liability | 825,786 | -3,575,278 | |
Convertible debt issued with an embedded conversion price adjustment provision | 1,938,988 | ||
Extinguishment of liability upon conversion of debt | -500,261 | ||
Change in fair value of debt conversion price adjustment for the period | 1,368,215 | ||
Fair value - end of period | $13,541,138 | $12,035,816 |
Derivative_Liability_and_Fair_4
Derivative Liability and Fair Value Measurements (Compute The Fair Value Of Warrants Issued) (Detail) (USD $) | 0 Months Ended | 12 Months Ended |
Jun. 03, 2014 | Dec. 31, 2014 | |
Value of convertible debt price adjustment: | ||
Fair value of debt embedded conversion price adjustment option | $1,938,988 | $2,806,942 |
Embedded Conversion Option [Member] | ||
Assumptions for Pricing Model: | ||
Expected term in years | 3 years | 2 years 8 months 1 day |
Volatility range for years 1 to 5 | 57.00% | 81.00% |
Derivative_Liability_and_Fair_5
Derivative Liability and Fair Value Measurements (Estimate the fair value of warrants outstanding) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Aug. 05, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Value of warrants outstanding: | |||
Fair value of warrants | 9,067,283 | 10,734,196 | 12,035,816 |
Warrant [Member] | |||
Assumptions for Pricing Model: | |||
Risk-free interest rate | 1.75% | ||
Warrant [Member] | Minimum [Member] | |||
Assumptions for Pricing Model: | |||
Expected term in years | 4 years 7 months 13 days | 3 years 5 months 19 days | 4 years 2 months 12 days |
Volatility range for years | 61.00% | 72.00% | 56.00% |
Risk-free interest rate | 0.77% | 0.93% | |
Warrant [Member] | Maximum [Member] | |||
Assumptions for Pricing Model: | |||
Expected term in years | 5 years | 4 years 14 days | 4 years 7 months 6 days |
Volatility range for years | 110.00% | 81.00% | 62.00% |
Risk-free interest rate | 1.41% | 1.83% |
Derivative_Liability_and_Fair_6
Derivative Liability and Fair Value Measurements (Additional Information) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
Jun. 03, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 4,730,992 | 6,008,516 | |
Convertible Debt | $3,000,000 | ||
Fair Value Of Debt Embedded Conversion Price Adjustment Option | $1,938,988 | $2,806,942 |
LongTerm_Debt_Components_of_Lo
Long-Term Debt (Components of Long-Term Debt) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Long term debt | $1,217,421 | $269,816 |
Less: Amount Due Within One Year | 128,425 | 99,320 |
Amount Due After One Year | 1,088,996 | 170,496 |
The note carries a 0% interest, but imputed interest has been accrued based on a 12% discount rate and is reflected as a reduction in the principal [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | -46,399 | -71,701 |
Convertible to shares of the Company's common shares at 2.25, subject to adjustment | ||
Debt Instrument [Line Items] | ||
Long term debt | 2,375,000 | 0 |
Unamortized debt discount related to derivative liability associated with above notesb conversion price that is subject to adjustment in the event of subsequent equity sales at a lower purchase price (subject to certain exceptions). Upon issuance on June 3, 2014 the discount was $1,938,988. As of December 31, 2014 a net of $368,223 of the discount was recognized as interest expense and $222,580 was reversed due to conversions of the notes into shares of common stock [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Discount Related To Derivative Liability | -1,348,185 | 0 |
Notes Payable [Member] | The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2012 over 48 months [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | 186,131 | 256,727 |
Notes Payable [Member] | The principal and interest is subject to a fixed blended repayment schedule of 36 months, commencing July 15, 2013 [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | $50,874 | $84,790 |
LongTerm_Debt_Components_of_Lo1
Long-Term Debt (Components of Long-Term Debt) (Parenthetical) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Jun. 03, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 15, 2013 | Mar. 21, 2013 | Dec. 31, 2012 | |
Debt Instrument [Line Items] | ||||||
Long term debt, fixed interest repayment term | 36 months | |||||
Long term debt, fixed interest rate | 16.00% | 16.00% | ||||
Fair Value Of Debt Embedded Conversion Price Adjustment Option | $1,938,988 | $2,806,942 | ||||
Unamortized debt discount related to derivative liability associated with notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest Expense, Debt | 368,223 | |||||
Conversion of Stock, Amount Converted | $222,580 | |||||
Notes Payable [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt, fixed interest repayment term | 24 months | |||||
Notes Payable [Member] | The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2012 over 48 months [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt, fixed interest repayment term | 48 months | 48 months | ||||
Long term debt repayment starting date | 31-Oct-13 | 31-Oct-13 | ||||
Long term debt, fixed interest rate | 12.00% | 0.00% | ||||
Notes Payable [Member] | The principal and interest is subject to a fixed blended repayment schedule of 36 months, commencing July 15, 2013 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt, fixed interest repayment term | 36 months | 36 months | ||||
Long term debt repayment starting date | 15-Jul-13 | 15-Jul-13 | ||||
Long term debt, fixed interest rate | 12.00% | 0.00% | ||||
Convertible, Senior Secured Term Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt, fixed interest repayment term | 15 months | |||||
Long term debt, fixed interest rate | 13.50% | |||||
Convertible Senior Secured Notes payable [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt, fixed interest repayment term | 3-Jun-17 | |||||
Long term debt, fixed interest rate | 5.00% | |||||
Debt Instrument, Convertible, Conversion Price | $2.25 |
LongTerm_Debt_Aggregate_Maturi
Long-Term Debt (Aggregate Maturities For All Long Term Borrowings) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 |
Debt Instrument [Line Items] | |||
2015 | $153,727 | ||
2016 | 83,278 | ||
2017 | 2,375,000 | ||
Total Required Principal Payments Exclusive of Debt Discounts | 2,612,005 | ||
Total Unamortized Debt Discounts | -1,394,584 | -636,678 | |
Total Net Long-Term Borrowings as of December 31, 2014 | $1,217,421 | $269,816 |
LongTerm_Debt_Additional_Infor
Long-Term Debt (Additional Information) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||
Aug. 05, 2013 | Jul. 15, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 21, 2013 | Dec. 31, 2014 | Jun. 30, 2012 | Mar. 27, 2013 | Dec. 31, 2012 | |
Line of Credit Facility [Line Items] | |||||||||
Repayment of Convertible, Senior Secured Term Debt Loan | $345,942 | $2,137,983 | |||||||
Senior Secured debt | 1,217,421 | 269,816 | 1,217,421 | ||||||
Senior Secured debt repayment term | 36 months | ||||||||
Convertible, Senior Secured interest rate | 16.00% | 16.00% | |||||||
Unamortized discount | 1,394,584 | 1,394,584 | 636,678 | ||||||
Debt Conversion, Converted Instrument, Amount | 625,000 | 2,882,333 | |||||||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 38,168 | ||||||||
Investment Warrants Exercise Price | $2.28 | ||||||||
Debt Issuance Cost | 139,340 | 0 | |||||||
Investment Warrants Expiration term | 5 years | ||||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | 29,262 | -1,272,296 | |||||||
Unamortized Debt Issuance Expense | 112,521 | 0 | 112,521 | ||||||
Proceeds from Issuance of Senior Long-term Debt | 3,000,000 | 1,000,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 16.00% | 16.00% | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $2.25 | ||||||||
Securities Purchase Agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Unamortized discount | 685,965 | 685,965 | |||||||
Extinguishment of Debt, Gain (Loss), Net of Tax | 1,272,296 | ||||||||
Unamortized Debt Issuance Expense | 240,637 | 240,637 | |||||||
IPO [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Conversion, Converted Instrument, Amount | 1,755,570 | ||||||||
Convertible Debt [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Senior Secured debt | 2,374,682 | ||||||||
Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Common Stock Warrants Issued | 533,333 | ||||||||
Exercise price of warrants | $7.47 | ||||||||
Fair value of warrants | 1,010,379 | 1,010,379 | |||||||
Convertible, Senior Secured Term Debt [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Repayment of Convertible, Senior Secured Term Debt Loan | 4,450,000 | ||||||||
Senior Secured debt | 619,122 | ||||||||
Senior Secured debt repayment term | 15 months | ||||||||
Convertible, Senior Secured interest rate | 13.50% | ||||||||
Secured Long-term Debt, Noncurrent | 200,000 | 800,000 | |||||||
Debt Instrument Repayment Penalty | 40,000 | 160,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 13.50% | ||||||||
Notes Payable | Minimum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Senior Secured debt repayment term | 24 months | ||||||||
Senior Secured Convertible Note [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Convertible, Senior Secured interest rate | 5.00% | 5.00% | |||||||
Debt Instrument, Convertible, Conversion Price | $2.25 | $2.25 | |||||||
Proceeds from Issuance of Senior Long-term Debt | 3,000,000 | 625,000 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | |||||||
Conversion of Stock, Shares Converted | 277,777 | ||||||||
Senior Secured Convertible Note [Member] | Convertible Debt [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Exercise price of warrants | $2.25 | ||||||||
Two Debentures [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Issuance Cost | 257,691 | ||||||||
Hillair [Member] | February 1,2014 Securities Purchase Agreement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Periodic Payment | 50,000 | 200,000 | |||||||
Hillair [Member] | August 1,2015 Securities Purchase Agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Periodic Payment | 12,500 | 50,000 | |||||||
Hillair [Member] | May 1,2014 Securities Purchase Agreement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Periodic Payment | 50,000 | 200,000 | |||||||
Hillair [Member] | August 1,2014 Securities Purchase Agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Periodic Payment | 50,000 | 200,000 | |||||||
Hillair [Member] | August 1,2017 Securities Purchase Agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Periodic Payment | 12,500 | 50,000 | |||||||
Hillair [Member] | August 1,2016 Securities Purchase Agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Periodic Payment | 12,500 | 50,000 | |||||||
Hillair [Member] | March 21, 2018 Securities Purchase Agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt Instrument, Periodic Payment | 12,500 | 50,000 | |||||||
Hillair [Member] | Securities Purchase Agreement [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Exercise price of warrants | $2.25 | ||||||||
Secured Long-term Debt, Noncurrent | 200,000 | 800,000 | |||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 16.00% | 16.00% | |||||||
Debt Instrument, Convertible, Conversion Price | 5.24 | $4.29 | |||||||
Debt Conversion, Converted Instrument, Warrants or Options Issued | 186,480 | ||||||||
Debt Instrument Repayment Penalty | 40,000 | 160,000 | |||||||
Investment Warrants Expiration term | 5 years | 5 years | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $2.25 | $4.72 | $2.25 | ||||||
Gentry [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Financial Advisor Fees | 50,000 | ||||||||
Conversion of Stock, Shares Issued | 20,000 | ||||||||
Investment Warrants Exercise Price | $4.72 | ||||||||
Investment Owned, at Fair Value | $66,603 | $66,603 |
Capital_Lease_Obligations_Equi
Capital Lease Obligations (Equipment Held Under Capital Lease Obligations Due) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Capital Leased Assets [Line Items] | ||
Total Principal Payments | $16,882 | $41,552 |
Less: Amount Due Within One Year | 16,882 | 24,670 |
Amount Due After One Year | $0 | $16,882 |
Capital_Lease_Obligations_Annu
Capital Lease Obligations (Annual Requirements For Retirement Of The Capital Lease Obligations) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Capital Leases Future Minimum Payments [Line Items] | ||
2015 | $18,445 | |
Total Minimum Lease Payments | 18,445 | |
Less: Amount Representing Interest | -1,563 | |
Present Value of Minimum Lease Payments | $16,882 | $41,552 |
Capital_Lease_Obligations_Summ
Capital Lease Obligations (Summary Of Assets Held Under Capital Leases) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Capital Leased Assets, Gross | $51,283 | $65,775 |
Less: Accumulated Depreciation | -42,230 | -52,275 |
Net | 9,053 | 13,500 |
Funiture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Capital Leased Assets, Gross | 35,083 | 35,083 |
Computer and Software | ||
Property, Plant and Equipment [Line Items] | ||
Capital Leased Assets, Gross | $16,200 | $30,692 |
Capital_Lease_Obligations_Addi
Capital Lease Obligations (Additional Information) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Capital Lease Obligations Additional Information [Line Items] | ||
Capital Lease Obligation Monthly Lease Payments | $2,049 | |
Capital Lease Obligation Interest Rate | 26.71% | |
Depreciation | 279,317 | 377,840 |
Assets Held under Capital Leases [Member] | ||
Capital Lease Obligations Additional Information [Line Items] | ||
Depreciation | $12,417 | $17,247 |
Income_Taxes_PreTax_Earnings_D
Income Taxes (Pre-Tax Earnings) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pre-Tax (Loss) Earnings | ||
Total Pre-Tax (Loss) Earnings | ($7,868,858) | ($10,146,228) |
UNITED STATES | ||
Pre-Tax (Loss) Earnings | ||
Total Pre-Tax (Loss) Earnings | -7,868,858 | -10,146,228 |
Outside the U.S. [Member] | ||
Pre-Tax (Loss) Earnings | ||
Total Pre-Tax (Loss) Earnings | $0 | $0 |
Income_Taxes_Provision_Benefit
Income Taxes (Provision Benefit For Income Taxes) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
U.S. Income Taxes | ||
Current Provision | $0 | $0 |
Deferred Provision | 0 | 0 |
Income Taxes Outside the U.S. | ||
Current Provision | 0 | 0 |
Deferred Provision | 0 | 0 |
State Income Taxes | ||
Current Provision | 0 | 0 |
Deferred Provision | 0 | 0 |
Total Provision | $0 | $0 |
Income_Taxes_Reconciliation_Of
Income Taxes (Reconciliation Of Effective Rate) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Effective Income Tax Rate Reconciliation [Line Items] | ||
Federal Income Tax at Statutory Rate | 34.00% | 34.40% |
State Tax Provision, Net of Federal Benefit | 0.20% | 0.50% |
Foreign Income Taxed at Other Than 34% | 0.00% | -0.20% |
Loss on Derivative Valuation | -11.10% | -12.20% |
Change in Rate Assumptions | 0.00% | 41.00% |
Other | -2.20% | -0.30% |
Effective Tax Rate | 20.90% | 63.20% |
Change in Valuations Allowance | -20.90% | -63.20% |
Net Effective Tax Rate | 0.00% | 0.00% |
Income_Taxes_Components_Of_Def
Income Taxes (Components Of Deferred Tax assets And liabilities) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deferred Tax Assets | ||
Net Operating Loss Carry-forwards | $11,418,496 | $9,739,496 |
Tax Credit Carry-forwards | 1,433,229 | 1,466,429 |
Other | 876,606 | 486,497 |
Total Deferred Tax Assets | 13,728,331 | 11,692,422 |
Deferred Tax Liabilities | ||
Other | 614,027 | 226,344 |
Net Deferred Tax Assets Before Valuation Allowance | 13,114,304 | 11,466,078 |
Valuation Allowance | -13,114,304 | -11,466,078 |
Net Deferred Tax Assets | $0 | $0 |
Income_Taxes_Additional_Inform
Income Taxes (Additional Information) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Income Taxes Additional Information [Line Items] | ||
Federal and State Net Operating Loss Carryforwards | $33,300,000 | |
Percentage Of Valuation Allowance On Deferred Tax Assets | 100.00% | |
Deferred Tax Assets, Tax Credit Carryforwards | $1,433,229 | $1,466,429 |
Capital_Stock_Additional_Infor
Capital Stock (Additional Information) (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Aug. 05, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 05, 2014 | |
Capital Stock [Line Items] | ||||
Preferred Stock Shares Authorized | 5,000,000 | 5,000,000 | ||
Preferred Stock Shares Issued | 0 | 0 | ||
Preferred Stock Shares Outstanding | 0 | 0 | ||
Stockholders' Equity, Reverse Stock Split | All per share amounts, outstanding shares, warrants, options and shares issuable pursuant to convertible securities for all periods reflect the Company’s 1-for-75 reverse stock split, which was effective February 6, 2013. | |||
Common Stock Shares Issued | 4,025,000 | 11,295,387 | 9,600,453 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 4,025,000 | |||
Common Stock Price Per Share | $2 | $2 | ||
Class Of Warrant Or Right Share Price Of Warrants Or Rights | 0.0001 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $2.25 | |||
Investment Warrants Expiration term | 5 years | |||
Proceeds From Issuance Public Offering | $8,050,000 | |||
Other Accrued Liabilities Current | 8,741 | 1,090 | ||
Repayments of Debt | 2,137,984 | |||
Payments of Debt Extinguishment Costs | 200,000 | |||
Proceeds from Issuance Initial Public Offering | 4,350,000 | |||
Debt Conversion, Converted Instrument, Amount | 625,000 | 2,882,333 | ||
Other Offering Expenses [Member] | ||||
Capital Stock [Line Items] | ||||
Other Accrued Liabilities Current | 1,358,641 | |||
Common Stock And Warrants [Member] | ||||
Capital Stock [Line Items] | ||||
Debt Conversion, Converted Instrument, Amount | 2,316,007 | |||
Debt Instrument, Convertible, Conversion Price | $2 | |||
Common Stock And Warrants [Member] | Officer [Member] | ||||
Capital Stock [Line Items] | ||||
Debt Conversion, Converted Instrument, Amount | $1,642,569 | |||
Debt Instrument, Convertible, Conversion Price | $2 |
Stock_Warrants_Changes_in_Warr
Stock Warrants (Changes in Warrants) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Class Of Warrant Or Right [Line Items] | ||
Warrants Outstanding, Beginning of Year | 7,147,775 | 656,641 |
Exercised During the Year | -1,285,746 | -59,300 |
Issued During the Year | 0 | 6,551,654 |
Forfeited During the Year | -625,369 | -1,220 |
Warrants Outstanding, End of Year | 5,236,660 | 7,147,775 |
Stock_Warrants_Additional_Info
Stock Warrants (Additional Information) (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Aug. 05, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Warrant or Right [Line Items] | ||||
Weighted average term of warrants | 3 years 7 months 6 days | |||
Weighted average exercise price of warrants per share | $2.28 | |||
Class Of Warrant Or Right Outstanding | 5,236,660 | 7,147,775 | 656,641 | |
Warrants 1 | ||||
Class of Warrant or Right [Line Items] | ||||
Class Of Warrant Or Right Outstanding | 206,420 | |||
Warrants 2 | ||||
Class of Warrant or Right [Line Items] | ||||
Class Of Warrant Or Right Outstanding | 38,168 | |||
Minimum | ||||
Class of Warrant or Right [Line Items] | ||||
Outstanding Warrants Expiration Date | 21-May-15 | |||
Minimum | Warrants 1 | ||||
Class of Warrant or Right [Line Items] | ||||
Weighted average exercise price of warrants per share | $2.25 | |||
Minimum | Warrants 2 | ||||
Class of Warrant or Right [Line Items] | ||||
Weighted average exercise price of warrants per share | $2.25 | |||
Maximum | ||||
Class of Warrant or Right [Line Items] | ||||
Outstanding Warrants Expiration Date | 5-Aug-18 | |||
Maximum | Warrants 1 | ||||
Class of Warrant or Right [Line Items] | ||||
Weighted average exercise price of warrants per share | $4.72 | |||
Maximum | Warrants 2 | ||||
Class of Warrant or Right [Line Items] | ||||
Weighted average exercise price of warrants per share | $5.24 |
Stock_Option_Plans_Summary_Of_
Stock Option Plans (Summary Of Stock Option Plans) (Detail) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stock Option Plan [Line Items] | |||
Outstanding as of December 31, 2014 | 720,551 | 214,518 | 192,729 |
Available for future issuance under plan | 457,500 | ||
Totals authorized by plan | 1,178,051 | ||
2007 Plan | |||
Stock Option Plan [Line Items] | |||
Outstanding as of December 31, 2014 | 57,209 | ||
Available for future issuance under plan | 0 | ||
Totals authorized by plan | 57,209 | ||
2009 Plan | |||
Stock Option Plan [Line Items] | |||
Outstanding as of December 31, 2014 | 120,842 | ||
Available for future issuance under plan | 0 | ||
Totals authorized by plan | 120,842 | ||
2014 Plan | |||
Stock Option Plan [Line Items] | |||
Outstanding as of December 31, 2014 | 542,500 | ||
Available for future issuance under plan | 457,500 | ||
Totals authorized by plan | 1,000,000 |
Recovered_Sheet1
Stock Option Plans (Summary of Stock Option Activity) (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of shares outstanding | |||
Outstanding, Beginning Balance | 214,518 | 192,729 | |
Granted | 548,000 | 45,000 | |
Exercised | -10,819 | 0 | |
Expired or Forfeited | -31,148 | -23,211 | |
Outstanding, Ending Balance | 720,551 | 214,518 | 192,729 |
Weighted Average Exercise Price | |||
Outstanding, Beginning Balance | $9.72 | $10.68 | |
Granted | $2.63 | $2 | |
Exercised | $1.71 | $0 | |
Expired or Forfeited | $2.71 | $2.71 | |
Outstanding, Ending Balance | $4.46 | $9.72 | $10.68 |
Weighted Average Remaining Life (Years) | |||
Options Outstanding, Weighted Average Remaining Life (Years) | 8 years 6 months 22 days | 6 years 1 month 10 days | 4 years 6 months 7 days |
Stock_Option_Plans_Assumptions
Stock Option Plans (Assumptions Used To Compute The Fair Value Of Stock Options) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Assumptions for Pricing Model: | ||
Expected term in years | 10 years | |
Volatility | 128.80% | |
Risk-free interest rate | 2.81% | |
Value of options granted: | ||
Number of options granted | 548,000 | 45,000 |
Weighted average fair value/share | $2.63 | $2 |
Fair value of options granted | $1,241,904 | $81,884 |
Minimum [Member] | ||
Assumptions for Pricing Model: | ||
Expected term in years | 5 years 7 months 6 days | |
Volatility | 118.60% | |
Risk-free interest rate | 1.70% | |
Maximum [Member] | ||
Assumptions for Pricing Model: | ||
Expected term in years | 10 years | |
Volatility | 119.70% | |
Risk-free interest rate | 2.42% |
Stock_Option_Plans_Additional_
Stock Option Plans (Additional Information) (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Weighted average remaining contractual term on unvested options | 6 years 9 months 18 days |
Exercisable Options Outstanding Shares | 257,786 |
Weighted average exercise price per share | $7.72 |
Unvested Options Outstanding, Shares | 462,384 |
Unvested Options Outstanding, Weighted average exercise price | $2.63 |
Unvested Options Outstanding Weighted average remaining life (yrs) | 9 years 7 months 6 days |
Unrecognized stock compensation expense | $1,100,000 |
Weighted average recognition period | 2 years 1 month 6 days |
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 1,178,051 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 10 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $268,000 |
Employee Stock Option Plan | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Percentage Of Stock Option Vesting Period | 20.00% |
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 1,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 10.00% |
Non Employee Director | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Percentage Of Stock Option Vesting Period | 50.00% |
stock option plans [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Unvested Options Outstanding, Shares | 462,765 |
Commitments_Future_Minimum_Pay
Commitments (Future Minimum Payments Required Under Operating Lease) (Detail) (USD $) | Dec. 31, 2014 |
Future Minimum Payments Required Under Operating Lease [Line Items] | |
2015 | $81,080 |
Total Minimum Lease Payments | $81,080 |
Commitments_Additional_Informa
Commitments (Additional Information) (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Commitment Contingencies Disclosure [Line Items] | ||
Lease Expiration Date | 30-Sep-15 | |
Sale Leaseback Transaction, Monthly Rental Payments | $4,200 | |
Operating Leases, Rent Expense | $116,743 | $104,766 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans (Additional Information) (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Employee Benefit Plans [Line Items] | |
Percentage Of Employee Deferrals | 100.00% |
Concentrations_Additional_Info
Concentrations (Additional Information) (Detail) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Concentrations [Line Items] | ||
Percentage On Accounts Receivable | 6.00% | 79.00% |
Sales Revenue, Net [Member] | ||
Concentrations [Line Items] | ||
Concentration Risk, Percentage | 10.00% | 17.00% |
Related_Party_Transactions_Add
Related Party Transactions (Additional Information) (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2013 | Aug. 05, 2013 | Aug. 05, 2014 | Dec. 31, 2014 | |
Related Party Transactions Additional Information [Line Items] | ||||
Common Stock Price Per Share | $2 | $2 | ||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $2.25 | |||
Officer [Member] | ||||
Related Party Transactions Additional Information [Line Items] | ||||
Interest Expense, Debt | $32,507 | |||
Accrued Employee Benefits | 107,209 | 0 | ||
Accrued Compensation | ||||
Related Party Transactions Additional Information [Line Items] | ||||
Decrease In Employee Related Liabilities Noncurrent | 1,126,763 | |||
Accrued Interest | ||||
Related Party Transactions Additional Information [Line Items] | ||||
Decrease In Employee Related Liabilities Noncurrent | $515,806 |
Subsequent_EventsAdditional_In
Subsequent Events(Additional Information) (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Jul. 30, 2013 | Jan. 02, 2015 | Mar. 31, 2015 | Aug. 05, 2013 | Dec. 31, 2012 | ||
Subsequent Event [Line Items] | ||||||||
Stock Issued During Period, Value, New Issues | $8,050,000 | |||||||
Stockholders' Equity Attributable To Parent | -14,398,011 | -13,038,293 | -6,209,565 | |||||
Derivative Liability, Noncurrent | 13,541,138 | 12,035,816 | ||||||
Preferred Stock Shares Outstanding | 0 | 0 | ||||||
Preferred Stock Shares Outstanding In Percent liquidation or amendment actions | 60.00% | |||||||
Cash, Period Increase (Decrease) | 24,750,000 | |||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 10,819 | 0 | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $2.25 | |||||||
Proceeds from Warrant Exercises | 2,682,669 | 56,250 | ||||||
Class Of Warrant Or Right Outstanding | 5,236,660 | 7,147,775 | 656,641 | |||||
Debt Conversion, Converted Instrument, Amount | 625,000 | 2,882,333 | ||||||
Payments of Stock Issuance Costs | 0 | 1,204,779 | ||||||
Convertible Notes Payable | 2,806,942 | |||||||
Common Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 4,025,000 | [1] | ||||||
Stock Issued During Period, Value, New Issues | 4,025 | |||||||
Stockholders' Equity Attributable To Parent | 11,296 | 9,600 | 3,537 | |||||
Series A Preferred Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred Stock, Dividend Rate, Percentage | 6.00% | |||||||
Preferred Stock Shares Outstanding In Percent | 25.00% | |||||||
Preferred Stock Shares Outstanding | 12,406 | |||||||
Series A Preferred Stock [Member] | Director One [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred Stock Shares Outstanding In Percent | 40.00% | |||||||
Series A Preferred Stock [Member] | Director Two [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred Stock Shares Outstanding In Percent | 20.00% | |||||||
Series A Private Placement [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Warrants Outstanding Percentage | 86.00% | |||||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Preferred Stock, Liquidation Preference Per Share | $1,000 | |||||||
Stockholders' Equity Attributable To Parent | -14,398,011 | 22,400,000 | ||||||
Derivative Liability, Noncurrent | 1,390,880 | |||||||
Class Of Warrant Or Right Outstanding | 537,102 | |||||||
Debt Conversion, Converted Instrument, Amount | 337,500 | |||||||
Payments of Stock Issuance Costs | 150,000 | |||||||
Convertible Notes Payable | 2,037,500 | |||||||
Subsequent Event [Member] | Common Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Convertible Preferred Stock, Shares Issued upon Conversion | 100 | |||||||
Debt Conversion, Converted Instrument, Shares Issued | 150,000 | |||||||
Debt Instrument, Convertible, Number of Equity Instruments | 905,556 | |||||||
Subsequent Event [Member] | Common Stock [Member] | Stock Plan 2014 [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 295,000 | |||||||
Subsequent Event [Member] | Common Stock [Member] | Investor Relations Services [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 40,000 | |||||||
Subsequent Event [Member] | Series A [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Shares Issued, Price Per Share | $5 | |||||||
Conversion of Stock, Amount Converted | 500 | |||||||
Subsequent Event [Member] | August 2013 stock offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 4,665,892 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $2.25 | |||||||
Proceeds from Warrant Exercises | 1,135,125 | |||||||
Class Of Warrant Or Right Outstanding | 65,100 | |||||||
Subsequent Event [Member] | August 2013 stock offering [Member] | Cash [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 504,500 | |||||||
Subsequent Event [Member] | August 2013 stock offering [Member] | Common Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 3,551,281 | |||||||
Subsequent Event [Member] | Intel Corporation [Member] | Series A Preferred Stock [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Stock Issued During Period, Shares, New Issues | 49,626 | |||||||
Shares Issued, Price Per Share | $500 | |||||||
Stock Issued During Period, Value, New Issues | $24,813,000 | |||||||
Conversion of Stock, Description | Each share of Series A Preferred Stock is convertible, at the option of the Series A Purchaser, into 100 shares of the Company’s common stock (determined by dividing the Series A Original Issue Price of $500 by the Series A Conversion Price. The Series A Conversion Price is $5.00, subject to adjustment in the event of stock splits, dividends or other combinations). | |||||||
Subsequent Event [Member] | Cashless [Member] | August 2013 stock offering [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 4,161,392 | |||||||
[1] | All share amounts for all periods reflect the Companybs 1-for-75 reverse stock split, which was effective February 6, 2013. |