Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 12, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | Vuzix Corp | |
Entity Central Index Key | 1,463,972 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | VUZI | |
Entity Common Stock, Shares Outstanding | 16,059,434 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and Cash Equivalents | $ 16,072,222 | $ 84,967 |
Accounts Receivable | 664,567 | 383,533 |
Inventories, Net | 1,761,907 | 911,949 |
Prepaid Manufacturing Vendor Payments | 1,278,275 | 156,091 |
Prepaid Expenses and Other Assets | 370,566 | 422,909 |
Total Current Assets | 20,147,537 | 1,959,449 |
Tooling and Equipment, Net | 804,937 | 416,965 |
Patents and Trademarks, Net | 528,798 | 423,489 |
Software Development Costs, Net | 572,901 | 787,738 |
Debt Issuance Costs, Net | 77,781 | 112,521 |
Total Assets | 22,131,954 | 3,700,162 |
Current Liabilities | ||
Accounts Payable | 397,927 | 2,183,565 |
Line of Credit | 0 | 112,500 |
Notes Payable | 0 | 37,038 |
Current Portion of Long-term Debt, Net of discount | 73,985 | 128,425 |
Current Portion of Capital Leases | 0 | 16,882 |
Customer Deposits | 20,534 | 120,550 |
Unearned Revenue | 74,031 | 53,403 |
Accrued Expenses | 715,480 | 699,067 |
Income and Other Taxes Payable | 9,528 | 35,158 |
Total Current Liabilities | 1,291,485 | 3,386,588 |
Long-Term Liabilities | ||
Long-Term Derivative Liability | 110,788 | 13,541,138 |
Long-Term Portion of Term Debt, Net of discount | 1,193,559 | 1,088,996 |
Long-Term Portion of Accrued Interest | 149,309 | 81,451 |
Total Long-Term Liabilities | 1,453,656 | 14,711,585 |
Total Liabilities | 2,745,141 | 18,098,173 |
Stockholders’ Equity (Deficit) | ||
Preferred Stock $.001 Par Value, 5,000,000 Shares Authorized; 49,626 Shares Issued and Outstanding September 30, 2015, and 0 Shares Outstanding on December 31, 2014 | 50 | 0 |
Common Stock $.001 Par Value, 100,000,000 Shares Authorized; 16,059,434 Shares Issued and Outstanding September 30, 2015 and 11,295,387 on December 31, 2014 | 16,058 | 11,296 |
Additional Paid-in Capital | 73,450,245 | 29,752,083 |
Accumulated Deficit | (54,079,540) | (44,161,390) |
Total Stockholders’ Equity (Deficit) | 19,386,813 | (14,398,011) |
Total Liabilities and Stockholders’ Equity (Deficit) | $ 22,131,954 | $ 3,700,162 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Preferred Stock, Par Value | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 49,626 | 0 |
Preferred Stock, Shares Outstanding | 49,626 | 0 |
Common Stock, Par Value | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 100,000,000 | 100,000,000 |
Common Stock, Shares Issued | 16,059,434 | 11,295,387 |
Common Stock, Shares Outstanding | 16,059,434 | 11,295,387 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - 9 months ended Sep. 30, 2015 - USD ($) | Total | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Preferred Stock |
Balance at Dec. 31, 2014 | $ (14,398,011) | $ 11,296 | $ 29,752,083 | $ (44,161,390) | $ 0 |
Balance (in shares) at Dec. 31, 2014 | 11,295,387 | 0 | |||
Stock Compensation Expense | 401,863 | 401,863 | |||
Conversion of Note Payable | 472,500 | $ 210 | 472,290 | ||
Conversion of Note Payable (in shares) | 210,000 | ||||
Stock Issues for Services | 638,264 | $ 113 | 638,151 | ||
Stock Issues for Services (in shares) | 113,337 | ||||
Common Stock Awards to Officers, Directors and Law Firm | 1,669,700 | $ 325 | 1,669,375 | ||
Common Stock Awards to Officers, Directors and Law Firm (in Shares) | 325,000 | ||||
Warrants Issued for Services | 260,373 | 260,373 | |||
Exercise of Warrants | 1,262,626 | $ 4,106 | 1,258,520 | ||
Exercise of Warrants (in shares) | 4,107,254 | ||||
Reclass Fair Value of Warrant Derivative Liability upon Exercise | 2,855,463 | 2,855,463 | |||
Reclass Fair Value of Warrant Derivative Liability Upon Waiver of Certain Anti-Dilutive Provisions | 8,736,412 | 8,736,412 | |||
Reclass Fair Value of Note Derivative Liability Upon Waiver of Certain Anti-Dilutive Provisions | 2,806,942 | 2,806,942 | |||
Proceeds from Preferred Stock Offering | 24,813,000 | 24,812,950 | $ 50 | ||
Proceeds from Preferred Stock Offering (in Shares) | 49,626 | ||||
Direct costs of preferred stock Offering | (214,169) | (214,169) | |||
Exercise of Stock Options | 0 | $ 8 | (8) | ||
Exercise of Stock Options (in shares) | 8,456 | ||||
Net Loss | (9,918,150) | (9,918,150) | |||
Balance at Sep. 30, 2015 | $ 19,386,813 | $ 16,058 | $ 73,450,245 | $ (54,079,540) | $ 50 |
Balance (in shares) at Sep. 30, 2015 | 16,059,434 | 49,626 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Sales of Products | $ 890,629 | $ 624,586 | $ 2,014,015 | $ 1,883,891 |
Sales of Engineering Services | 79,750 | 40,000 | 193,331 | 302,371 |
Total Sales | 970,379 | 664,586 | 2,207,346 | 2,186,262 |
Cost of Sales - Products | 612,346 | 444,234 | 1,590,284 | 1,251,690 |
Cost of Sales - Engineering Services | 31,900 | 16,000 | 77,332 | 121,032 |
Total Cost of Sales | 644,246 | 460,234 | 1,667,616 | 1,372,722 |
Gross Profit | 326,133 | 204,352 | 539,730 | 813,540 |
Operating Expenses: | ||||
Research and Development | 944,426 | 484,510 | 2,191,624 | 1,177,484 |
Selling and Marketing | 469,443 | 336,099 | 1,172,252 | 957,422 |
General and Administrative | 1,120,982 | 592,914 | 5,079,131 | 1,605,112 |
Depreciation and Amortization | 88,285 | 59,680 | 226,472 | 260,823 |
(Loss) from Operations | (2,297,003) | (1,268,851) | (8,129,749) | (3,187,301) |
Other Income (Expense) | ||||
Interest Income | 12,621 | 0 | 12,621 | 0 |
Other Taxes | (30,443) | (9,747) | (44,508) | (56,282) |
Foreign Exchange Gain (Loss) | 287 | (3,473) | 1,335 | (3,710) |
Gain (Loss) on Derivative Valuation | 58,239 | (1,698,940) | (968,467) | 2,124,878 |
Amortization of Senior Term Debt Discount | (116,008) | (253,977) | (635,949) | (294,191) |
Amortization of Deferred Financing Costs | (11,708) | 0 | (34,740) | 0 |
Interest Expenses | (40,956) | (66,333) | (118,693) | (133,699) |
Total Other Income (Expense) | (127,968) | (2,032,470) | (1,788,401) | 1,636,996 |
(Loss) Before Provision for Income Taxes | (2,424,971) | (3,301,321) | (9,918,150) | (1,550,305) |
Provision (Benefit) for Income Taxes | 0 | 0 | 0 | 0 |
Net Income (Loss) | (2,424,971) | (3,301,321) | (9,918,150) | (1,550,305) |
Preferred Stock Dividends | (386,377) | 0 | (1,121,860) | 0 |
(Loss) Attributable to Common Stockholders | $ (2,811,348) | $ (3,301,321) | $ (11,040,010) | $ (1,550,305) |
(Loss) per Share | ||||
Basic and Diluted Loss per Share (Note 2) | $ (0.17) | $ (0.31) | $ (0.73) | $ (0.15) |
Weighted-average Shares Outstanding Basic and Diluted | 15,934,279 | 10,556,420 | 15,207,545 | 10,276,447 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net (Loss) | $ (9,918,150) | $ (1,550,305) |
Non-Cash Adjustments | ||
Depreciation and Amortization | 226,472 | 260,823 |
Amortization of Software Development Costs in cost of sales products | 214,838 | 0 |
Common Stock Awards Compensation Expense | 1,669,700 | 0 |
Stock-Based Option Compensation Expense | 401,863 | 201,671 |
Amortization of Term Debt Discount | 635,949 | 294,191 |
Amortization of Debt Issuance Costs | 34,740 | 15,112 |
Common Stock and Warrants Issued for Services | 984,559 | 0 |
(Gain) Loss on Derivative Valuation | 968,467 | (2,124,878) |
(Increase) Decrease in Operating Assets | ||
Accounts Receivable | (281,034) | 97,441 |
Inventories | (849,958) | (127,812) |
Vendor Prepayments | (1,122,184) | 0 |
Prepaid Expenses and Other Assets | (33,579) | 138,763 |
Increase (Decrease) in Operating Liabilities | ||
Accounts Payable | (1,785,638) | (678,576) |
Accrued Expense | 16,410 | 80,044 |
Customer Deposits | (100,016) | 6,484 |
Unearned Revenue | 20,628 | 0 |
Income and Other Taxes Payable | (25,630) | (29,051) |
Accrued Interest | 67,858 | 65,757 |
Net Cash Flows Used in Operating Activities | (8,874,705) | (3,350,336) |
Cash Flows from Investing Activities | ||
Purchases of Tooling and Equipment | (553,448) | (189,558) |
Purchases of Marketable Securities | 0 | 0 |
Investments in Software | 0 | (643,790) |
Investments in Patents and Trademarks | (166,305) | (68,884) |
Net Cash Used in Investing Activities | (719,753) | (902,232) |
Cash Flows from Financing Activities | ||
Proceeds from Exercise of Warrants | 1,262,626 | 1,928,241 |
Repayment of Capital Leases | (16,882) | (19,760) |
Repayment of Long-Term Debt and Notes Payable | (150,362) | (262,411) |
Proceeds from Senior Convertible Debt | 0 | 3,000,000 |
Issuance Costs on Senior Convertible Debt | 0 | (139,340) |
Proceeds from Preferred Stock Offering | 24,813,000 | 0 |
Issuance Costs on Preferred Stock Offering | (214,169) | 0 |
Net Change in Lines of Credit | (112,500) | 0 |
Net Cash Flows Provided by Financing Activities | 25,581,713 | 4,506,730 |
Net Increase in Cash and Cash Equivalents | 15,987,255 | 254,162 |
Cash and Cash Equivalents - Beginning of Period | 84,967 | 310,140 |
Cash and Cash Equivalents - End of Period | 16,072,222 | 564,302 |
Supplemental Disclosures | ||
Interest Paid | 21,690 | 67,942 |
Common Stock and Warrants Issued for Services, Initially as Prepaid Expense | 898,537 | 235,912 |
Unamortized Discount upon Conversion of Term Debt | 214,536 | |
Discount on Senior Convertible Debt attributed to embedded Conversion Price Adjustment Option | 0 | 1,938,988 |
Reclassification of Derivative Liability to Paid-In Capital upon Waiver of Certain Anti-Dilutive Provisions of Warrants and Convertible Debt | 11,543,354 | 0 |
Conversion of Long-Term Debt and Accrued Compensation into Common Stock | 427,500 | 600,000 |
Reclassification of Derivative to Additional Paid-In Capital upon Note Conversions and Warrant Exercises | $ 2,855,463 | $ 1,927,120 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Vuzix Corporation and Subsidiaries (“the Company") have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the Securities and Exchange Commission. Accordingly, the unaudited Condensed Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The condensed consolidated balance sheet as of December 31, 2014 was derived from the audited Consolidated Financial Statements in Form 10-K. The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of the Company as of December 31, 2014, as reported in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings (Loss) Per Share | |
Earnings (Loss) Per Share | Note 2 Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income or loss by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution from the assumed exercise of stock options and warrants, and the conversion of any convertible debt and convertible preferred shares. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are antidilutive. Since the Company reported a net loss for the three and nine months ended September 30, 2015 and 2014, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. As of September 30, 2015 and December 31, 2014, there were 6,393,485 7,012,767 |
Cash and Cash Equivalents
Cash and Cash Equivalents | 9 Months Ended |
Sep. 30, 2015 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Note 3 Cash and Cash Equivalents The Company considers all highly liquid, short-term debt instruments with original maturities of three months or less to be cash equivalents. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 4 Inventories Inventories are stated at the lower of cost (determined on the first-in, first-out or specific identification method) or market and consisted of the following as at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Purchased Parts and Components $ 1,653,152 $ 1,251,224 Work in Process 2,470 25,974 Finished Goods 472,000 300,889 Less: Reserve for Obsolescence (365,715) (666,138) Net $ 1,761,907 $ 911,949 |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2015 | |
Notes Payable [Abstract] | |
Notes Payable | Note 5 Notes Payable Notes payable represent promissory notes payable by the Company. September 30, 2015 December 31, 2014 Notes payable to officers and shareholders of the Company. The notes bore interest at 18.5% per year and were secured by all the assets of the Company. Paid in full during 2015. $ $ 37,038 $ $ 37,038 |
Accrued Expenses
Accrued Expenses | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 6 Accrued Expenses Accrued expenses consisted of the following: September 30, 2015 December 31, 2014 Accrued Wages and Related Costs $ 122,708 $ 101,445 Accrued Compensation 358,719 428,786 Accrued Professional Services 70,500 45,000 Accrued Warranty Obligations 59,876 39,624 Accrued Interest 103,677 75,471 Other Accrued Expenses 8,741 Total $ 715,480 $ 699,067 Included in the above accrued compensation are 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 94,006 62,801 29,340 26,735 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 certain 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 Accrued Warranty Obligations at December 31, 2014 $ 39,624 Reductions for Settling Warranties (54,840) Warranties Issued During Period 75,092 Accrued Warranty Obligations at September 30, 2015 $ 59,876 |
Derivative Liability and Fair V
Derivative Liability and Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liability and Fair Value Measurements | Note 7 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 public 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 September 30, 2015 a total of 45,100 4,730,992 86 The Company recognized a derivative liability during the year ended December 31, 2014 for the $ 3,000,000 1,938,988 In connection with the Series A Private Placement on January 2, 2015, each of the holders of notes issued by the Company on September 30, 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”). As a result this derivative liability was reversed to Nil and reclassified into stockholders equity under Additional Paid-In Capital. 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 Company has adopted FASB 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. FASB ASC Topic 820 establishes a six-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. 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 dates, 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. 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 September 30, 2015: Total Level 1 Level 2 Level 3 Warrant Liability 110,788 110,788 Total liabilities measured at fair value (Long-Term) $ 110,788 $ $ $ 110,788 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 Note Conversion Feature Liability 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 A summary of the various changes in the fair value of the derivative liability during the nine month period ended September 30, 2015 is as follows: Fair value December 31, 2014 $ 13,541,138 Reclassification of warrant exercises to Additional Paid-in Capital (2,855,463) Change in fair value for the period of warrant derivative liability 968,467 Reclassification of embedded debt conversion price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions (2,806,942) Reclassification of warrant exercise price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions (8,736,412) Fair value September 30, 2015 $ 110,788 We used the Monte Carlo Options Lattice pricing model to estimate the fair value of the derivative liability outstanding as follows: September 30, 2015 December 31, 2014 Assumptions for Pricing Model: Expected term in years 2.85 3.59 to 3.78 Volatility range for years 104 % 81 to 89 % Risk-free interest rate 0.64 % 0.83 to 1.11 % Expected annual dividends None None |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 8 Long-Term Debt September December 30, 2015 31, 2014 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. $ 98,243 $ 186,131 The note carries a 0% interest rate, but imputed interest has been accrued based on a 12% discount rate and is reflected as a reduction in the principal. (27,423) (46,399) 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 year and is secured by a subordinated position in all the assets of the Company. 25,437 50,874 Convertible, Senior Secured Notes payable. The principal is due June 3, 2017 and no principal payments are required prior to maturity. The notes carry 5% interest, payable upon the note’s maturity. Both the principal 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. 1,902,500 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. (731,213) (1,348,185) $ 1,267,544 $ 1,217,421 Less: Amount Due Within One Year (73,985) (128,425) Amount Due After One Year $ 1,193,559 $ 1,088,996 Total Aggregate Maturity For Period Amounts 2015 $ 99,287 2016 24,393 2017 1,902,500 Total Required Principal Payments Exclusive of Debt Discounts 2,026,180 Total Unamortized Debt Discounts (758,636) Total Net Long-Term Borrowings as of September 30, 2015 $ 1,267,544 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 Income Taxes The Company’s effective income tax rate is a combination of federal, state and foreign tax rates and differs from the U.S. statutory rate due to taxes on foreign income, permanent differences including tax-exempt interest, and the resolution of tax uncertainties, offset by a valuation allowance against U.S. deferred income tax assets. |
Preferred Stock
Preferred Stock | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Preferred Stock | Note 10 Preferred Stock The Company may issue shares of undesignated preferred stock 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 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 49,626 500 24,813,000 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). 214,169 Each share of Series A Preferred Stock is entitled to receive dividends at a rate of 6 1,121,860 1,000 40 20 For as long as at least 25 12,406 60 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 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 Company filed the registration statement on February 12, 2015 and the registration statement was declared effective by the SEC on February 17, 2015. |
Stock Warrants
Stock Warrants | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stock Warrants | Note 11 Stock Warrants Number of Shares Warrants Outstanding at December 31, 2014 5,236,660 Exercised During the Period (4,721,517) Issued During the Period 60,000 Expired During the Period (14,814) Warrants Outstanding, September 30, 2015 560,329 The outstanding warrants as of September 30, 2015 expire from December 31, 2015 to August 5, 2018. The weighted average remaining term of the warrants is 2.5 2.39 4,168,267 3,554,004 553,250 $ 1,262,626 The Black-Scholes-Merton pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton pricing model incorporates various highly subjective assumptions, including expected term and expected volatility. ⋅ Expected term in years 2.8 3.0 ⋅ Volatility 122.8 122.9 ⋅ Risk-free interest rate 0.90 0.99 ⋅ Expected annual dividends None ⋅ Fair value of warrants issued $ 260,373 The entire fair value amount of the warrants issued was recognized during the nine month period ended September 30, 2015. |
Stock Option Plans
Stock Option Plans | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plans | Note 12 Stock Option Plans Weighted Number of Average Shares Exercise Price Outstanding at December 31, 2014 720,551 $ 4.46 Granted 254,000 $ 5.45 Exercised (15,833) $ 2.60 Expired or Forfeited (34,167) $ 3.38 Outstanding at September 30, 2015 924,551 $ 4.81 As of September 30, 2015, there were 397,148 6.09 7.0 As of September 30, 2015 there were 525,468 3.83 9.5 The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At September 30, 2015, the Company had approximately $ 1,833,333 2.1 Expected term in years 6.0 years · Volatility 111.1% to 113.5% · Risk-free interest rate 1.74% to 1.84% · Expected annual dividends None · Fair value of options issued $1,159,754 The Company did not receive any cash from option exercises for the nine months ended September 30, 2015 and 2014. 8,456 15,833 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 13 Related Party Transactions During the nine months ended September 30, 2015, $ 325,625 24% on as-converted to common stock basis with respect to shares of Series A Preferred Stock held by such stockholder 290,625 |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2015 | |
Litigation Disclosure [Abstract] | |
Litigation | Note 14 Litigation We are not currently involved in any pending legal proceeding or litigation. |
Contractual Obligations
Contractual Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Contractual Obligations [Abstract] | |
Contractual Obligations | Note 15 Contractual Obligations The Company leases office and manufacturing space under operating leases that expire on September 30, 2015 through to September 27, 2017. 68,718 The Company signed a lease agreement for new office and manufacturing space under an operating lease that commenced October 3, 2015. The base rent contractual payment obligations under this operating lease will 335,248 year. The lease has an original five year term with an option by the Company to renew for two additional three year terms at pre-agreed to lease rates. The Company’s total contractual payment obligations for these new premises over the next five years is $1,676,240. The Company pursuant to its new office and manufacturing space has made commitments net of landlord allowances for additional leasehold improvements, cleanroom equipment, office furniture, various IT, telco and security equipment expected to total approximately $987,000 at its new location. These amounts are expected to be incurred during the fourth quarter of 2015. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Note 16 Recent Accounting Pronouncements FASB ASU 2015-03InterestImputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This FASB ASU requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability (same treatment as debt discounts). FASB ASU 2015-3 is effective for the annual periods beginning after December 15, 2015. Early adoption is permitted for financial statements that not have been previously issued. FASB ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This ASU requires inventory within the scope of the guidance be measured at the lower of cost or net realizable value. FASB ASU 2015-11 is effective for annual and interim periods beginning after December 15, 2016, with prospective application required. Early adoption is permitted. The Company is evaluating the potential impact of this FASB ASU on the condensed consolidated financial statements. There are no other recent accounting pronouncements that are expected to have a material impact on the condensed consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories are stated at the lower of cost (determined on the first-in, first-out or specific identification method) or market and consisted of the following as at September 30, 2015 and December 31, 2014: September 30, 2015 December 31, 2014 Purchased Parts and Components $ 1,653,152 $ 1,251,224 Work in Process 2,470 25,974 Finished Goods 472,000 300,889 Less: Reserve for Obsolescence (365,715) (666,138) Net $ 1,761,907 $ 911,949 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Payable [Abstract] | |
Notes payable represent promissory notes payable | Notes payable represent promissory notes payable by the Company. September 30, 2015 December 31, 2014 Notes payable to officers and shareholders of the Company. The notes bore interest at 18.5% per year and were secured by all the assets of the Company. Paid in full during 2015. $ $ 37,038 $ $ 37,038 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | Accrued expenses consisted of the following: September 30, 2015 December 31, 2014 Accrued Wages and Related Costs $ 122,708 $ 101,445 Accrued Compensation 358,719 428,786 Accrued Professional Services 70,500 45,000 Accrued Warranty Obligations 59,876 39,624 Accrued Interest 103,677 75,471 Other Accrued Expenses 8,741 Total $ 715,480 $ 699,067 |
Changes in Accrued Warranty Obligations | The Company estimates its future warranty costs based on product-based historical performance rates and related costs to repair Accrued Warranty Obligations at December 31, 2014 $ 39,624 Reductions for Settling Warranties (54,840) Warranties Issued During Period 75,092 Accrued Warranty Obligations at September 30, 2015 $ 59,876 |
Derivative Liability and Fair26
Derivative Liability and Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | 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 September 30, 2015: Total Level 1 Level 2 Level 3 Warrant Liability 110,788 110,788 Total liabilities measured at fair value (Long-Term) $ 110,788 $ $ $ 110,788 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 Note Conversion Feature Liability 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 |
Schedule of Fair Value Level 3 warrant liabilities | A summary of the various changes in the fair value of the derivative liability during the nine month period ended September 30, 2015 is as follows: Fair value December 31, 2014 $ 13,541,138 Reclassification of warrant exercises to Additional Paid-in Capital (2,855,463) Change in fair value for the period of warrant derivative liability 968,467 Reclassification of embedded debt conversion price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions (2,806,942) Reclassification of warrant exercise price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions (8,736,412) Fair value September 30, 2015 $ 110,788 |
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques | We used the Monte Carlo Options Lattice pricing model to estimate the fair value of the derivative liability outstanding as follows: September 30, 2015 December 31, 2014 Assumptions for Pricing Model: Expected term in years 2.85 3.59 to 3.78 Volatility range for years 104 % 81 to 89 % Risk-free interest rate 0.64 % 0.83 to 1.11 % Expected annual dividends None None |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | September December 30, 2015 31, 2014 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. $ 98,243 $ 186,131 The note carries a 0% interest rate, but imputed interest has been accrued based on a 12% discount rate and is reflected as a reduction in the principal. (27,423) (46,399) 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 year and is secured by a subordinated position in all the assets of the Company. 25,437 50,874 Convertible, Senior Secured Notes payable. The principal is due June 3, 2017 and no principal payments are required prior to maturity. The notes carry 5% interest, payable upon the note’s maturity. Both the principal 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. 1,902,500 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. (731,213) (1,348,185) $ 1,267,544 $ 1,217,421 Less: Amount Due Within One Year (73,985) (128,425) Amount Due After One Year $ 1,193,559 $ 1,088,996 |
Aggregate maturities for all long-term borrowings | The calendar year aggregate maturities for all long-term borrowings exclusive of discounts as of September 30, 2015 are as follows: Total Aggregate Maturity For Period Amounts 2015 $ 99,287 2016 24,393 2017 1,902,500 Total Required Principal Payments Exclusive of Debt Discounts 2,026,180 Total Unamortized Debt Discounts (758,636) Total Net Long-Term Borrowings as of September 30, 2015 $ 1,267,544 |
Stock Warrants (Tables)
Stock Warrants (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Changes in Warrants | Number of Shares Warrants Outstanding at December 31, 2014 5,236,660 Exercised During the Period (4,721,517) Issued During the Period 60,000 Expired During the Period (14,814) Warrants Outstanding, September 30, 2015 560,329 |
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 warrants granted during the nine month period ended September 30, 2015 for investor relations services and their estimated value: · Expected term in years 2.8 3.0 · Volatility 122.8 122.9 · Risk-free interest rate 0.90 0.99 · Expected annual dividends None · Fair value of warrants issued $ 260,373 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stock option plans | Weighted Number of Average Shares Exercise Price Outstanding at December 31, 2014 720,551 $ 4.46 Granted 254,000 $ 5.45 Exercised (15,833) $ 2.60 Expired or Forfeited (34,167) $ 3.38 Outstanding at September 30, 2015 924,551 $ 4.81 |
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 warrants granted during the nine month period ended September 30, 2015 for investor relations services and their estimated value: · Expected term in years 2.8 3.0 · Volatility 122.8 122.9 · Risk-free interest rate 0.90 0.99 · Expected annual dividends None · Fair value of warrants issued $ 260,373 |
Equity Option [Member] | |
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 options granted during the nine month period ended September 30, 2015 and their estimated value: Expected term in years 6.0 years · Volatility 111.1% to 113.5% · Risk-free interest rate 1.74% to 1.84% · Expected annual dividends None · Fair value of options issued $1,159,754 |
Earnings (Loss) Per Share (Addi
Earnings (Loss) Per Share (Additional Information) (Detail) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Earnings Per Share, Potentially Dilutive Securities | 6,393,485 | 7,012,767 |
Inventories (Components of Inve
Inventories (Components of Inventories) (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Line Items] | ||
Purchased Parts and Components | $ 1,653,152 | $ 1,251,224 |
Work in Process | 2,470 | 25,974 |
Finished Goods | 472,000 | 300,889 |
Less: Reserve for Obsolescence | (365,715) | (666,138) |
Net | $ 1,761,907 | $ 911,949 |
Notes Payable (Notes Payable Re
Notes Payable (Notes Payable Represent Promissory Notes) (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Notes and Promissory Notes [Line Items] | ||
Notes Payable | $ 0 | $ 37,038 |
Officer and Shareholders [Member] | ||
Notes and Promissory Notes [Line Items] | ||
Notes Payable | $ 0 | $ 37,038 |
Notes Payable (Notes Payable 33
Notes Payable (Notes Payable Represent Promissory Notes) (Parenthetical) (Detail) | Sep. 30, 2015 |
Officer and Shareholders [Member] | |
Notes and Promissory Notes [Line Items] | |
Interest percentage | 18.50% |
Accrued Expenses (Components of
Accrued Expenses (Components of Accrued Expenses) (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Accrued Liabilities [Line Items] | ||
Accrued Wages and Related Costs | $ 122,708 | $ 101,445 |
Accrued Compensation | 358,719 | 428,786 |
Accrued Professional Services | 70,500 | 45,000 |
Accrued Warranty Obligations | 59,876 | 39,624 |
Accrued Interest | 103,677 | 75,471 |
Other Accrued Expenses | 0 | 8,741 |
Total | $ 715,480 | $ 699,067 |
Accrued Expenses (Changes in Ac
Accrued Expenses (Changes in Accrued Warranty Obligations) (Detail) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Class Of Warrant Or Right [Line Items] | |
Accrued Warranty Obligations at December 31, 2014 | $ 39,624 |
Reductions for Settling Warranties | (54,840) |
Warranties Issued During Period | 75,092 |
Accrued Warranty Obligations at September 30, 2015 | $ 59,876 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Officers Compensation Payable Compounding Monthly Interest Rate | 8.00% | |
Interest Payable | $ 94,006 | $ 62,801 |
Interest Payable, Current | $ 29,340 | $ 26,735 |
Derivative Liability and Fair37
Derivative Liability and Fair Value Measurements (Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Note Conversion Feature Liability | $ 2,806,942 | |
Warrant Liability | $ 110,788 | 10,734,196 |
Total liabilities measured at fair value (Long-Term) | 110,788 | 13,541,138 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Note Conversion Feature Liability | 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] | ||
Note Conversion Feature Liability | 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] | ||
Note Conversion Feature Liability | 2,806,942 | |
Warrant Liability | 110,788 | 10,734,196 |
Total liabilities measured at fair value (Long-Term) | $ 110,788 | $ 13,541,138 |
Derivative Liability and Fair38
Derivative Liability and Fair Value Measurements (Schedule of Fair Value Level 3 Warrant Liabilities) (Detail) - Warrant Liabilities [Member] | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value - December 31, 2014 | $ 13,541,138 |
Reclassification of warrant exercises to Additional Paid-in Capital | (2,855,463) |
Change in fair value for the period of warrant derivative liability | 968,467 |
Reclassification of embedded debt conversion price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions | (2,806,942) |
Reclassification of warrant exercise price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions | (8,736,412) |
Fair value - September 30, 2015 | $ 110,788 |
Derivative Liability and Fair39
Derivative Liability and Fair Value Measurements (Estimate the fair value of warrants outstanding) (Detail) - Monte Carlo Options Lattice Pricing Model Warrants Outstanding [Member] | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Assumptions for Pricing Model: | ||
Expected term in years | 2 years 10 months 6 days | |
Volatility range for years | 104.00% | |
Risk-free interest rate | 0.64% | |
Minimum [Member] | ||
Assumptions for Pricing Model: | ||
Expected term in years | 3 years 7 months 2 days | |
Volatility range for years | 81.00% | |
Risk-free interest rate | 0.83% | |
Maximum [Member] | ||
Assumptions for Pricing Model: | ||
Expected term in years | 3 years 9 months 11 days | |
Volatility range for years | 89.00% | |
Risk-free interest rate | 1.11% |
Derivative Liability and Fair40
Derivative Liability and Fair Value Measurements (Additional Information) (Detail) - USD ($) | Jun. 03, 2014 | Sep. 30, 2015 | Dec. 31, 2014 |
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 | 45,100 | 4,730,992 | |
Convertible Debt | $ 3,000,000 | ||
Fair Value Of Debt Embedded Conversion Price Adjustment Option | $ 1,938,988 | ||
Percentage of Outstanding Warrants Issued By Parent | 86.00% |
Long-Term Debt (Components of L
Long-Term Debt (Components of Long-Term Debt) (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long term debt | $ 1,267,544 | $ 1,217,421 |
Less: Amount Due Within One Year | (73,985) | (128,425) |
Amount Due After One Year | 1,193,559 | 1,088,996 |
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 | (27,423) | (46,399) |
Convertible to shares of the Company's common shares at 2.25, subject to adjustment [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | 1,902,500 | 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 [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized Debt Discount Related To Derivative Liability | (731,213) | (1,348,185) |
Notes Payable [Member] | The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2013 over 48 months [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | 98,243 | 186,131 |
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 | $ 25,437 | $ 50,874 |
Long-Term Debt (Components of42
Long-Term Debt (Components of Long-Term Debt) (Parenthetical) (Detail) - USD ($) | Jun. 03, 2014 | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | |||
Fair Value Of Debt Embedded Conversion Price Adjustment Option | $ 1,938,988 | ||
The principal and interest is subject to a fixed blended repayment schedule of 36 months, commencing July 15, 2013. | |||
Debt Instrument [Line Items] | |||
Long term debt, fixed interest repayment term | 36 months | 36 months | |
Long term debt repayment starting date | Jul. 15, 2013 | Jul. 15, 2013 | |
Long term debt, fixed interest rate | 12.00% | 12.00% | |
The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2013 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 | Oct. 31, 2013 | Oct. 31, 2013 | |
Long term debt, fixed interest rate | 0.00% | 0.00% | |
Convertible Senior Secured Notes payable [Member] | |||
Debt Instrument [Line Items] | |||
Long term debt repayment starting date | Jun. 3, 2017 | Jun. 3, 2017 | |
Long term debt, fixed interest rate | 5.00% | 5.00% | |
Debt Instrument, Convertible, Conversion Price | $ 2.25 | $ 2.25 |
Long-Term Debt (Aggregate Matur
Long-Term Debt (Aggregate Maturities For All Long Term Borrowings) (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
2,015 | $ 99,287 | |
2,016 | 24,393 | |
2,017 | 1,902,500 | |
Total Required Principal Payments Exclusive of Debt Discounts | 2,026,180 | |
Total Unamortized Debt Discounts | (758,636) | |
Total Net Long-Term Borrowings as of September 30, 2015 | $ 1,267,544 | $ 1,217,421 |
Preferred Stock (Additional Inf
Preferred Stock (Additional Information) (Detail) - USD ($) | Jan. 02, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Preferred Stock Shares Authorized | 5,000,000 | 5,000,000 | |
Conversion of Stock, Description | 24% on as-converted to common stock basis with respect to shares of Series A Preferred Stock held by such stockholder | ||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | ||
Preferred Stock Shares Outstanding | 49,626 | 0 | |
Preferred Stock Shares Outstanding In Percent liquidation or amendment actions | 60.00% | ||
Dividends Payable | $ 1,121,860 | ||
Director Two [Member] | |||
Preferred Stock Shares Outstanding In Percent | 25.00% | ||
Director One [Member] | |||
Preferred Stock Shares Outstanding In Percent | 20.00% | ||
Series A Preferred Stock [Member] | |||
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 Companys 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). | ||
Preferred Stock, Dividend Rate, Percentage | 6.00% | ||
Preferred Stock Shares Outstanding | 12,406 | ||
Series A Preferred Stock [Member] | Director [Member] | |||
Preferred Stock Shares Outstanding In Percent | 40.00% | ||
Series A Preferred Stock [Member] | Corporation [Member] | |||
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 | ||
Payments of Stock Issuance Costs | $ 214,169 |
Stock Warrants (Changes in Warr
Stock Warrants (Changes in Warrants) (Detail) | 9 Months Ended |
Sep. 30, 2015shares | |
Class Of Warrant Or Right [Line Items] | |
Warrants Outstanding at December 31, 2014 | 5,236,660 |
Exercised During the Period | (4,721,517) |
Issued During the Period | 60,000 |
Expired During the Period | (14,814) |
Warrants Outstanding, September 30, 2015 | 560,329 |
Stock Warrants (Assumptions Use
Stock Warrants (Assumptions Used To Compute The Fair Value Of Warrants) (Detail) - Warrant [Member] | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Warrants Issued Aggregate Fair Value | $ 260,373 |
Minimum [Member] | |
Fair Value Assumptions, Expected Term | 2 years 9 months 18 days |
Fair Value Assumptions, Expected Volatility Rate | 122.80% |
Fair Value Assumptions, Risk Free Interest Rate | 0.90% |
Maximum [Member] | |
Fair Value Assumptions, Expected Term | 3 years |
Fair Value Assumptions, Expected Volatility Rate | 122.90% |
Fair Value Assumptions, Risk Free Interest Rate | 0.99% |
Stock Warrants (Additional Info
Stock Warrants (Additional Information) (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Class of Warrant or Right [Line Items] | ||
Weighted average term of warrants | 2 years 6 months | |
Weighted average exercise price of warrants per share | $ 2.39 | |
Class Of Warrant Or Right Outstanding | 560,329 | 5,236,660 |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 4,168,267 | |
Warrants 1 | ||
Class of Warrant or Right [Line Items] | ||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 3,554,004 | |
Warrant [Member] | ||
Class of Warrant or Right [Line Items] | ||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 1,262,626 |
Stock Option Plans (Summary of
Stock Option Plans (Summary of Stock Option Activity) (Detail) - Employee Stock Option [Member] | 9 Months Ended |
Sep. 30, 2015$ / sharesshares | |
Number of shares outstanding | |
Outstanding, Beginning Balance | 720,551 |
Granted | 254,000 |
Exercised | (15,833) |
Expired or Forfeited | (34,167) |
Outstanding, Ending Balance | 924,551 |
Weighted Average Exercise Price | |
Outstanding, Beginning Balance | $ / shares | $ 4.46 |
Granted | $ / shares | 5.45 |
Exercised | $ / shares | 2.60 |
Expired or Forfeited | $ / shares | 3.38 |
Outstanding, Ending Balance | $ / shares | $ 4.81 |
Stock Option Plans (Assumptions
Stock Option Plans (Assumptions Used To Compute The Fair Value Of Stock Options) (Detail) - Equity Option [Member] | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Assumptions for Pricing Model: | |
Expected term in years | 6 years |
Expected annual dividends | $ 0 |
Value of options granted: | |
Fair value of options issued | $ 1,159,754 |
Minimum [Member] | |
Assumptions for Pricing Model: | |
Volatility | 111.10% |
Risk-free interest rate | 1.74% |
Maximum [Member] | |
Assumptions for Pricing Model: | |
Volatility | 113.50% |
Risk-free interest rate | 1.84% |
Stock Option Plans (Additional
Stock Option Plans (Additional Information) (Detail) | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Weighted average remaining contractual term on unvested options | 7 years |
Exercisable Options Outstanding Shares | 397,148 |
Weighted average exercise price per share | $ / shares | $ 6.09 |
Unvested Options Outstanding, Shares | 525,468 |
Unvested Options Outstanding, Weighted average exercise price | $ / shares | $ 3.83 |
Unvested Options Outstanding Weighted average remaining life (yrs) | 9 years 6 months |
Unrecognized stock compensation expense | $ | $ 1,833,333 |
Weighted average recognition period | 2 years 1 month 6 days |
Equity Option [Member] | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Stock Issued During Period, Shares, Conversion of Convertible Securities | 8,456 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period | 15,833 |
Related Party Transactions (Add
Related Party Transactions (Additional Information) (Detail) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Related Party Transactions Additional Information [Line Items] | |
Revenue from Related Parties | $ 325,625 |
Conversion of Stock, Description | 24% on as-converted to common stock basis with respect to shares of Series A Preferred Stock held by such stockholder |
Accounts Receivable, Related Parties, Current | $ 290,625 |
Contractual Obligations (Additi
Contractual Obligations (Additional Information) (Detail) | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Contractual Obligation | $ 1,676,240 |
Description Of Lessor Leasing Arrangements Operating Leases | The Company leases office and manufacturing space under operating leases that expire on September 30, 2015 through to March 31, 2016. |
Purchase Obligation, Future Minimum Payments, Remainder of Fiscal Year | $ 335,248 |
Other Commitment, Total | 987,000 |
Premises [Member] | |
Contractual Obligation | $ 68,718 |