Vuzix (VUZI) 10-K 30 Mar 16 2015 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 30, 2016	Jun. 30, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Entity Registrant Name	Vuzix Corp
Entity Central Index Key	1,463,972
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 74,461,000
Trading Symbol	VUZI
Entity Common Stock, Shares Outstanding		16,097,951

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current Assets
Cash and Cash Equivalents	$ 11,877,058	$ 84,967
Accounts Receivable, Net	325,694	383,533
Inventories, Net	3,349,098	911,949
Manufacturing Vendor Prepayments	369,411	156,091
Prepaid Expenses and Other Assets	608,950	422,909
Total Current Assets	16,530,211	1,959,449
Tooling and Equipment, Net	2,015,433	416,965
Patents and Trademarks, Net	515,697	423,489
Software Development Costs, Net	501,288	787,738
Total Assets	19,562,629	3,587,641
Current Liabilities
Accounts Payable	907,434	2,183,565
Line of Credit	0	112,500
Notes Payable	0	37,038
Current Portion of Long-term Debt, Net of discount	55,790	128,425
Current Portion of Capital Leases	0	16,882
Customer Deposits	27,847	120,550
Unearned Revenue	69,481	53,403
Accrued Expenses	734,497	699,067
Income and Other Taxes Payable	7,073	35,158
Total Current Liabilities	1,802,122	3,386,588
Long-Term Liabilities
Long-Term Derivative Liability	240,786	13,541,138
Long-Term Portion of Term Debt, net of discounts	1,227,550	976,475
Long-Term Portion of Accrued Expenses	38,333	0
Long-Term Portion of Accrued Interest	160,967	81,451
Total Long-Term Liabilities	1,667,636	14,599,064
Total Liabilities	3,469,758	17,985,652
Stockholders’ Equity (Deficit)
Preferred Stock - $.001 Par Value, 5,000,000 Shares Authorized; 49,626 and 0 Shares Issued and Outstanding Respectively	50	0
Common Stock - $.001 Par Value, 100,000,000 Shares Authorized December 31, 2015 and 2014; 16,087,951 Shares Issued and Outstanding December 31, 2015 and 11,295,387 on December 31, 2014	16,088	11,296
Additional Paid-in Capital	73,665,601	29,752,083
Accumulated Deficit	(57,588,868)	(44,161,390)
Total Stockholders’ Equity (Deficit)	16,092,871	(14,398,011)
Total Liabilities and Stockholders’ Equity (Deficit)	$ 19,562,629	$ 3,587,641

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 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	16,087,951	11,295,387
Common Stock, Shares Outstanding	16,087,951	11,295,387

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' (DEFICIT) EQUITY - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
Balance at Dec. 31, 2013	$ (13,038,293)		$ 9,600	$ 23,244,639	$ (36,292,532)
Balance (in shares) at Dec. 31, 2013			9,600,453
Stock Issues for Services	564,874		$ 189	564,685
Stock Issues for Services (in shares)			188,574
Conversion of Note Payable and Interest	373,159		$ 278	372,881
Conversion of Note Payable and Interest (in shares)			277,778
Exercise of Warrants	2,682,695		$ 1,229	2,681,466
Exercise of Warrants (in shares)			1,228,582
Stock Compensation Expense	260,746			260,746
Reclass Fair Value of Warrant Derivative Liability upon Exercise	2,127,405			2,127,405
Reclass Fair Value of Derivative Liability upon note conversion	500,261			$ 500,261
Net Loss	(7,868,858)				(7,868,858)
Balance at Dec. 31, 2014	(14,398,011)		$ 11,296	$ 29,752,083	(44,161,390)
Balance (in shares) at Dec. 31, 2014			11,295,387
Stock Issues for Services	676,665		$ 121	676,544
Stock Issues for Services (in shares)			120,837
Conversion of Note Payable and Interest	472,500		$ 210	472,290
Conversion of Note Payable and Interest (in shares)			210,000
Exercise of Warrants	1,272,626		$ 4,128	1,268,498
Exercise of Warrants (in shares)			4,128,271
Warrants Issued for Services	260,373			260,373
Stock Compensation Expense	568,848			568,848
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
Proceeds from Preferred Stock Offering	24,813,000	$ 50		24,812,950
Proceeds from Preferred Stock Offering (in Shares)		49,626
Direct costs of preferred stock Offering	(214,169)			(214,169)
Reclass Fair Value of Warrant Derivative Liability Upon Waiver of Certain Anti-Dilutive Provisions	2,806,942			2,806,942
Reclass Fair Value of Note Derivative Liability Upon Waiver of Certain Anti-Dilutive Provisions	$ 8,736,412			8,736,412
Exercise of Stock Options			$ 8	(8)
Exercise of Stock Options (in shares)			8,456
Reclass Fair Value of Warrant Derivative Liability upon Exercise	$ 2,855,463			2,855,463
Net Loss	(13,427,478)				(13,427,478)
Balance at Dec. 31, 2015	$ 16,092,871	$ 50	$ 16,088	$ 73,665,601	$ (57,588,868)
Balance (in shares) at Dec. 31, 2015		49,626	16,087,951

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Sales of Products	$ 2,544,153	$ 2,474,559
Sales of Engineering Services	205,831	557,517
Total Sales	2,749,984	3,032,076
Cost of Sales - Products	2,101,466	1,884,678
Cost of Sales - Engineering Services	82,332	217,233
Total Cost of Sales (exclusive of depreciation shown separately below)	2,183,798	2,101,911
Gross Profit	566,186	930,165
Operating Expenses:
Research and Development	3,595,437	1,752,560
Selling and Marketing	1,798,041	1,232,520
General and Administrative	6,120,101	2,593,384
Depreciation and Amortization	380,841	279,317
Impairment of Patents and Trademarks	13,222	104,716
Loss from Operations	(11,341,456)	(5,032,332)
Total Operating Expenses	11,907,642	5,962,497
Other Income (Expense)
Other Taxes	(54,432)	(83,419)
Investment Income	20,790	0
Foreign Exchange Loss	(277)	(2,713)
Amortization of Deferred Financing Costs	(46,447)	(26,819)
Gain (Loss) on Debt Conversions and Extinguishment	0	29,262
Loss on Derivative Valuation	(1,098,465)	(2,194,001)
Amortization of Senior Term Debt Discount	(751,968)	(393,525)
Interest Expenses	(155,223)	(165,311)
Total Other Income (Expense)	(2,086,022)	(2,836,526)
Loss Before Provision for Income Taxes	(13,427,478)	(7,868,858)
Provision for Income Taxes	0	0
Net Loss	(13,427,478)	(7,868,858)
Preferred Stock Dividends	(1,514,081)	0
Loss Attributable to Common Stockholders	$ (14,941,559)	$ (7,868,858)
Basic and Diluted Loss per Share	$ (0.97)	$ (0.75)
Weighted-average Shares Outstanding Basic and Diluted	15,408,724	10,476,971

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash Flows from Operating Activities
Net Loss	$ (13,427,478)	$ (7,868,858)
Non-Cash Adjustments
Depreciation and Amortization	380,841	279,317
Amortization of Software Development Costs in cost of sales products	286,450	71,613
Impairment of Patents and Trademarks	13,222	104,716
Common Stock Awards Compensation Expense	1,669,700	0
Stock-Based Option Compensation Expense	568,848	260,747
Amortization of Term Debt Discount	751,968	368,223
Amortization of Debt Issuance Costs	46,447	52,121
Gain on Extinguishment of Debt for Note Conversions	0	(29,262)
Common Stock and Warrants Issued for Services	1,057,074	395,205
Loss on Derivative Valuation	1,098,465	2,194,001
(Increase) Decrease in Operating Assets
Accounts Receivable	57,839	(168,613)
Inventories	(2,437,149)	41,679
Vendor Prepayments	(213,320)	0
Prepaid Expenses and Other Assets	(306,078)	(208,367)
Increase (Decrease) in Operating Liabilities
Accounts Payable	(1,276,132)	(237,006)
Accrued Expense	143,830	1,216
Customer Deposits	(92,703)	(10,528)
Unearned Revenue	16,078	13,701
Income and Other Taxes Payable	(28,085)	(40,693)
Accrued Compensation	(70,067)	68,116
Accrued Interest & Long-Term Accrued Interest Converted	92,171	103,622
Net Cash Flows Used in Operating Activities	(11,668,079)	(4,609,050)
Cash Flows from Investing Activities
Purchases of Tooling and Equipment	(1,892,831)	(195,903)
Investments in Software	0	(618,790)
Investments in Patents and Trademarks	(191,908)	(86,647)
Net Cash Used in Investing Activities	(2,084,739)	(901,340)
Cash Flows from Financing Activities
Proceeds from Exercise of Warrants	1,272,627	2,682,669
Repayment of Capital Leases	(16,882)	(24,670)
Repayment of Long-Term Debt and Notes Payable	(197,167)	(345,942)
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)	112,500
Net Cash Flows Provided by Financing Activities	25,544,909	5,285,217
Net Increase (decrease) in Cash and Cash Equivalents	11,792,091	(225,173)
Cash and Cash Equivalents - Beginning of Period	84,967	310,140
Cash and Cash Equivalents - End of Period	11,877,058	84,967
Supplemental Disclosures
Interest Paid	41,194	88,508
Common Stock and Warrants Issued for Services, Classified as Prepaid Expense	936,937	564,873
Accrued Interest Converted into Common Stock	12,655	0
Conversion of Term Debt into Common Stock	459,845	625,000
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	2,627,666
Unamortized Discount upon Conversion of Term Debt	0	222,580
Reclassification of Derivative to Additional Paid-In Capital upon Note Conversions and Warrant Exercises	$ 2,855,463	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 1 — Summary of Significant Accounting Policies 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. 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. Certain prior year amounts have been reclassified to be consistent with current year presentation. 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 32 43 10 17 0 This customer accounted for 89 0 The Company has at times had a concentration of sales to the U.S. government, which amounted to approximately 4 10 0 6 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. The cumulative translation adjustment at December 31, 2015 and 2014 was not material. 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. The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. Cash and cash equivalents can include highly liquid investments with original maturities of three months or less. 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. 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, 2015 and 2014. The Company does not accrue interest on past due accounts receivable unless it goes into collection. Inventories are valued at the lower of cost or market using the weighted average first-in, first-out method. The Company includes labor and 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. The Company recognizes revenue from product sales in accordance with FASB ASC Topic 605 “Revenue Recognition ” 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, 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 (BESP) 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 ratably 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 40 These amounts represent deferred revenue against unfulfilled deliverables of multiple-element products, including unspecified post-delivery support and software updates Computers and Software 3 years Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years Leasehold improvements are depreciated over the shorter of their expected useful life or the lease term. Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized and depreciated over their expected useful life. 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 The Company capitalizes the costs of obtaining or developing 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 The Company at least annually 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 2015, an impairment charge of $ 13,222 104,716 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. 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. 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 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 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, 2015 and 2014 amounted to $ 432,325 192,181 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. 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 2015 and 2014 all outstanding instruments would be antidilutive. As of December 31, 2015 and 2014, there were 7,366,036 7,012,767 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, 2015 and 2014 was $ 568,848 260,747 The Company issues new shares upon stock option exercises. Please refer to Note 15 Stock Option Plans 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. 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: o Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; o 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 o 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. 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 2018 and may be applied on a full retrospective or modified retrospective approach. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. 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. In July 2015, the Financial Accounting Standards Board (“FASB”) issued guidance which requires inventory within the scope of the standard to be measured at the lower of cost and net realizable value. Previous guidance required inventory to be measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact, if any, the adoption of this standard will have on the consolidated financial statements. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). Current US generally accepted accounting principles (GAAP) requires lessees and lessors to classify leases as either capital leases or operating leases. Lessees recognize assets and liabilities for capital leases but do not recognize assets and liabilities for operating leases. ASU 2016-02 requires lessees to recognize assets and liabilities for all leases (with an exception for short-term leases). The new FASB guidance will be effective for fiscal years beginning after December 15, 2018, and interim periods thereafter. The Company is currently evaluating the impact, if any, the adoption of this standard will have on the consolidated financial statements. There are no other recent accounting pronouncements that are expected to have a material impact on the consolidated financial statements. The Company changed its presentation of debt issuance costs on its financial statements in its current fiscal year as a result of FASB ASU 2015-03—Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This 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 was permitted for financial statements that not have been previously issued and the Company has chosen to adopt this new policy early. December 31, December, 31, 2015 2014 Non-Current Assets – Net Debt Issuance Costs $ (66,074) $ (112,521) Total Assets $ (66,074) $ (112,521) Long-Term Portion of Term Debt, Net of Discount $ (66,074) $ (112,521) Total Long-Term Liabilities and Total Liabilities $ (66,074) $ (112,521) Total Liabilities and Stockholders’ Equity (Deficit) $ (66,074) $ (112,521) There were no changes in the Statement of Operations as a result of this change.

Inventories, Net

Inventories, Net	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Inventories	Note 2 — Inventories, Net December 31, December, 31, 2015 2014 Purchased Parts and Components $ 3,069,261 $ 1,251,224 Work in Process 154,880 25,974 Finished Goods 612,451 300,889 Less: Reserve for Obsolescence (487,494) (666,138) Net $ 3,349,098 $ 911,949

Tooling and Equipment, Net

Tooling and Equipment, Net	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment, Net [Abstract]
Tooling and Equipment, Net	Note 3 — Tooling and Equipment, Net December 31, December 31, 2015 2014 Tooling and Manufacturing Equipment $ 1,082,845 $ 1,374,751 Leaseholds 365,766 — Computers and Software 519,226 581,472 Furniture and Equipment 1,089,718 607,327 3,057,555 2,563,550 Less: Accumulated Depreciation (1,042,122) (2,146,585) Net $ 2,015,433 $ 416,965 Total depreciation expense for tooling and equipment for the years ending December 31, 2015 and 2014 was $ 294,363 225,267

Patents and Trademarks, Net

Patents and Trademarks, Net	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Patents and Trademarks, Net	Note 4 — Patents and Trademarks, Net December 31, December 31, 2015 2014 Patents and Trademarks $ 867,545 $ 697,591 Less: Accumulated Amortization (351,848) (274,102) Net $ 515,697 $ 423,489 Total amortization expense for patents and trademarks for the years ending December 31, 2015 and 2014 was $ 86,478 54,050 63,126 13,222 21,954 8,732 104,716 166,500 61,784

Software Development Costs, Net

Software Development Costs, Net	12 Months Ended
	Dec. 31, 2015
Research and Development [Abstract]
Software Development Costs, Net	Note 5 — Software Development Costs, Net December 31, December 31, 2015 2014 Software Development Costs $ 859,351 $ 859,351 Less: Accumulated Amortization (358,063) (71,613) Net $ 501,288 $ 787,738 Total amortization expense for capitalized software development costs for the years ending December 31, 2015 was $ 286,450 71,613 3 286,000 215,000

Line of Credit

Line of Credit	12 Months Ended
	Dec. 31, 2015
Line Of Credit Facility [Abstract]
Lines Of Credit	Note 6 — Line of Credit The Company had a $ 112,500 bank’s prime rate plus 1% 112,500

Notes Payable

Notes Payable	12 Months Ended
	Dec. 31, 2015
Notes Payable [Abstract]
Notes Payable	Note 7 — Notes Payable December 31, December 31, 2015 2014 Note 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 A total of $ 1,228 32,209

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
Accrued Expenses	Note 8 — Accrued Expenses December 31, December 31, 2015 2014 Accrued Wages and Related Costs $ 102,792 $ 101,445 Accrued Compensation 358,719 428,786 Accrued Professional Services 89,000 45,000 Accrued Warranty Obligations 64,002 39,624 Accrued Interest 109,984 75,471 Other Accrued Expenses 10,000 8,741 Total $ 734,497 $ 699,067 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 8 327,469 393,536 97,801 62,081 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. 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 Reductions for Settling Warranties (67,858) Warranty Issued During Year 92,236 Accrued Warranty Obligations at December 31, 2015 $ 64,002

Derivative Liability and Fair V

Derivative Liability and Fair Value Measurements	12 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liability and Fair Value Measurements	Note 9 – 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, 2015 and 2014 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 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”). As a result this derivative liability was reversed to Nil and reclassified into stockholders equity under Additional Paid-In Capital. We measure certain financial instruments at fair value on a recurring basis. Total Level 1 Level 2 Level 3 Warrant Liability $ 240,786 $ — $ — $ 240,786 Total liabilities measured at fair value (Long-Term) $ 240,786 $ — $ — $ 240,786 We measure certain financial instruments at fair value on a recurring basis. 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 Fair value – December 31, 2013 $ 12,035,815 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 Reclassification of warrant exercises to Additional Paid-in Capital (2,855,463) Change in fair value for the period of warrant derivative liability 1,098,465 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 – December 31, 2015 $ 240,786 For the period ending December 31, 2015, since the embedded conversion option as described above was permanently waived on January 2, 2015, the value reduced to zero. For the 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. December 31, At Issuance – 2014 June 3, 2014 Assumptions for Pricing Model: Expected term in years 2.67 3.00 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 December 31, December 31, 2015 2014 Assumptions for Pricing Model: Expected term in years 2.60 3.21 to 3.78 Volatility range for years 103 % 81 to 89% Risk-free interest rate 1.06 % 0.83 to 1.11% Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 240,786 $ 10,734,196

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Long-Term Debt	Note 10 — Long-Term Debt December 31, December 31, 2015 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. $ 59,917 $ 186,131 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. (21,085) (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. 16,958 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 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. 1,915,155 2,375,000 Convertible, Senior Secured Notes issued on June 3, 2014 Debt Issuance Costs of $139,340, net of accumulated amortization. The estimated aggregate annual amortization expense for each of the next fiscal years until maturity is approximately $46,000 and approximately $20,000 in the following fiscal year. (66,074) (112,521) 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 which is being amortized as interest expense over the life of the loan or sooner if the related debt is converted. (621,531) (1,348,185) $ 1,283,340 $ 1,104,900 Less: Amount Due Within One Year (55,790) (128,425) Amount Due After One Year $ 1,227,550 $ 976,475 Total Aggregate Maturity For Period Amounts 2016 $ 76,875 2017 1,915,155 Total Required Principal Payments Exclusive of Debt Discounts 1,992,030 Total Unamortized Debt Discounts and Deferred Costs (708,690) Total Net Long-Term Borrowings as of December 31, 2015 $ 1,283,340 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 5 5 2.25 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. Of these June 2014 Notes, $ 459,845 204,376 shares of common stock during the year ended December 31, 2015. And $ 625,000 277,000 $ 12,655 5,624

Capital Lease Obligations

Capital Lease Obligations	12 Months Ended
	Dec. 31, 2015
Capital Lease Obligations [Abstract]
Capital Lease Obligations	Note 11 — Capital Lease Obligations The Company maintains equipment held under capital lease obligations due in monthly installments of $ 2,049 26.71 December 31, December 31, 2015 2014 Total Principal Payments $ — $ 16,882 Less: Amount Due Within One Year — (16,882) Amount Due After One Year $ — $ — December 31, 2015 2014 Computers and Software $ — $ 16,200 Furniture and Equipment — 35,083 — 51,283 Less: Accumulated Depreciation — (42,230) Net $ — $ 9,053 Depreciation expense related to the assets under capital lease amounted to $ 9,053 12,417

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Note 12 — Income Taxes The Company files U.S. federal and various state and foreign tax returns. December 31, 2015 2014 Pre-Tax (Loss) Earnings U.S. $ (13,425,887) $ (7,868,858) Outside the U.S. (1,591) — Total Pre-Tax (Loss) Earnings $ (13,427,478) $ (7,868,858) 2015 2014 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 $ — $ — 2015 2014 Federal Income Tax at Statutory Rate 34.0 % 34.0 % State Tax Provision, Net of Federal Benefit 0.3 % 0.2 % Foreign Income Taxed at Other Than 34% (0.0) % (0.0) % Loss on Derivative Valuation (6.3) % (11.1) % Change in Rate Assumptions 0.0 % 0.0 % Other 0.7 % (2.2) % Effective Tax Rate 28.7 % 20.9 % Change in Valuations Allowance (28.7) % (20.9) % Net Effective Tax Rate 0.0 % 0.0 % 2015 2014 Deferred Tax Assets Net Operating Loss Carry-forwards $ 15,027,603 $ 11,418,496 Tax Credit Carry-forwards 1,823,661 1,433,229 Other 393,218 876,606 Total Deferred Tax Assets 17,244,482 13,728,331 Deferred Tax Liabilities Other 271,565 614,027 Net Deferred Tax Assets Before Valuation Allowance $ 16,972,917 $ 13,114,304 Valuation Allowance (16,972,917) (13,114,304) Net Deferred Tax Assets $ — $ — As of December 31, 2015, the Company has approximately $ 43.9 1.8 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 2012-2015 are open to examination by the major taxing jurisdictions to which the Company is subject. FASB ASC 740, 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 , which the company believes more-likely-than-not will not be recognized

Capital Stock

Capital Stock	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Capital Stock	Note 13 — 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 49,626 0 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 1,514,081 1,000 40 20 25 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. Common Stock The Company’s authorized common stock consists of 100,000,000 0.001 16,087,951 11,295,387

Stock Warrants

Stock Warrants	12 Months Ended
	Dec. 31, 2015
Stockholders' Equity Note [Abstract]
Stock Warrants	Note 14 — Stock Warrants December 31, December 31, 2015 2014 Warrants Outstanding, Beginning of Year 5,236,660 7,147,775 Exercised During the Year (4,746,755) (1,285,746) Issued During the Year 60,000 — Forfeited During the Year (14,814) (625,369) Warrants Outstanding, End of Year 535,091 5,236,660 The outstanding warrants as of December 31, 2015 expire from November 3, 2017 to August 5, 2018. The weighted average remaining term of the warrants is 2.3 2.43 During the year ending December 31, 2015 a total of 4,178,267 3,559,783 568,488 1,272,627 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. 60,000 ⋅ Expected term in years 2.8 to 3.0 years ⋅ Volatility 122.8 to 122.9% ⋅ Risk-free interest rate 0.90 to 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 year ended December 31, 2015.

Stock Option Plans

Stock Option Plans	12 Months Ended
	Dec. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option Plans	Note 15 — 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 10 1,608,795 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 2007 2009 2014 Plan Plan Plan Total Outstanding as of December 31, 2015 37,447 120,842 864,500 1,022,789 Available for future issuance under plan — — 744,295 744,295 Totals authorized by plan 37,447 120,842 1,608,795 1,767,084 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 50 Weighted Weighted Average Number of Average Remaining Life Shares Exercise Price (years) 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 Granted 374,000 5.67 Exercised (15,833) 2.60 Expired or Forfeited (55,929) 8.12 Outstanding at December 31, 2015 1,022,789 $ 4.59 7.56 As of December 31, 2015, there were 424,688 5.34 7.4 The unvested balance of 598,101 4.05 7.4 The aggregate intrinsic value of the options outstanding as of December 31, 2015 was approximately $ 3,449,805 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. December 31, 2015 2014 Assumptions for Black-Scholes: Expected term in years 6.0 to 7.9 5.6 to 10.0 Volatility 111.4 to 113.5% 118.6 to 119.7% Risk-free interest rate 1.74% to 2.02% 1.70 to 2.42% Expected annual dividends None None Value of options granted: Number of options granted 374,000 548,000 Weighted average fair value/share $ 4.50 $ 2.63 Fair value of options granted $ 1,684,179 $ 1,241,994 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 $ 2,186,000 598,101 2.2 1,100,000 462,765

Commitments

Commitments	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments	Note 16 — Commitments The Company has signed several lease agreements, with the largest being for its new office and manufacturing space under an operating lease that commenced October 3, 2015 October 3, 2020 335,248 Total Minimum Year Ending Lease Dec 31, Payments 2016 $ 416,052 2017 348,089 2018 335,248 2019 335,248 2020 251,436 Total $ 1,686,073 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. Rent expense for the years ended December 31, 2015 and 2014 totaled $ 186,471 116,743 The Company pursuant to its new office and manufacturing space has made commitments that total approximately $ 250,000

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Note 17 — 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

Litigation

Litigation	12 Months Ended
	Dec. 31, 2015
Litigation Disclosure [Abstract]
Litigation	Note 18 — Litigation We are not currently involved in any pending legal proceeding or litigation.

Concentrations

Concentrations	12 Months Ended
	Dec. 31, 2015
Risks and Uncertainties [Abstract]
Concentrations	Note 19 — Concentrations For 2015 and 2014, sales to the U.S. government accounted for approximately 4 10 18 0 Accounts receivable from the U.S. government accounted for 0 6

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Note 20 — Related Party Transactions 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 8 327,469 393,536 97,801 62,081 35,722 33,907 During the year ended December 31, 2015, $ 481,920 18 24 290,750

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2015
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	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. Certain prior year amounts have been reclassified to be consistent with current year presentation.
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 32 43 10 17 0 This customer accounted for 89 0 The Company has at times had a concentration of sales to the U.S. government, which amounted to approximately 4 10 0 6
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. The cumulative translation adjustment at December 31, 2015 and 2014 was not material.
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 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 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.
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, 2015 and 2014. 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 labor and 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 ” 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, 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 (BESP) 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 ratably 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 40
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 Computers and Software 3 years Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years Leasehold improvements are depreciated over the shorter of their expected useful life or the lease term. Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized and depreciated over their expected useful life.
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
Software Development Costs	Software Development Costs The Company capitalizes the costs of obtaining or developing 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
Long-Lived Assets	Long-Lived Assets The Company at least annually 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 2015, an impairment charge of $ 13,222 104,716
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.
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, 2015 and 2014 amounted to $ 432,325 192,181
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 2015 and 2014 all outstanding instruments would be antidilutive. As of December 31, 2015 and 2014, there were 7,366,036 7,012,767
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, 2015 and 2014 was $ 568,848 260,747 The Company issues new shares upon stock option exercises. Please refer to Note 15 Stock Option Plans
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. 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: o Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; o 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 o 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.
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 2018 and may be applied on a full retrospective or modified retrospective approach. Earlier application is permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. 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. In July 2015, the Financial Accounting Standards Board (“FASB”) issued guidance which requires inventory within the scope of the standard to be measured at the lower of cost and net realizable value. Previous guidance required inventory to be measured at the lower of cost or market (where market was defined as replacement cost, with a ceiling of net realizable value and floor of net realizable value less a normal profit margin). The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2016, with early adoption permitted. The Company is currently evaluating the impact, if any, the adoption of this standard will have on the consolidated financial statements. In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-02, Leases (Topic 842). Current US generally accepted accounting principles (GAAP) requires lessees and lessors to classify leases as either capital leases or operating leases. Lessees recognize assets and liabilities for capital leases but do not recognize assets and liabilities for operating leases. ASU 2016-02 requires lessees to recognize assets and liabilities for all leases (with an exception for short-term leases). The new FASB guidance will be effective for fiscal years beginning after December 15, 2018, and interim periods thereafter. The Company is currently evaluating the impact, if any, the adoption of this standard will have on the consolidated financial statements. There are no other recent accounting pronouncements that are expected to have a material impact on the consolidated financial statements.
Change In Method of Accounting For Debt Issuance Costs	Change in method of accounting for presentation of debt issuance costs The Company changed its presentation of debt issuance costs on its financial statements in its current fiscal year as a result of FASB ASU 2015-03—Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This 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 was permitted for financial statements that not have been previously issued and the Company has chosen to adopt this new policy early. December 31, December, 31, 2015 2014 Non-Current Assets – Net Debt Issuance Costs $ (66,074) $ (112,521) Total Assets $ (66,074) $ (112,521) Long-Term Portion of Term Debt, Net of Discount $ (66,074) $ (112,521) Total Long-Term Liabilities and Total Liabilities $ (66,074) $ (112,521) Total Liabilities and Stockholders’ Equity (Deficit) $ (66,074) $ (112,521) There were no changes in the Statement of Operations as a result of this change.

Summary of Significant Accoun28

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
Schedule of Property and Equipment Estimated Useful Life	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
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	The following financial statement line items for fiscal years 2015 and 2014 were affected by the change in accounting principle. December 31, December, 31, 2015 2014 Non-Current Assets – Net Debt Issuance Costs $ (66,074) $ (112,521) Total Assets $ (66,074) $ (112,521) Long-Term Portion of Term Debt, Net of Discount $ (66,074) $ (112,521) Total Long-Term Liabilities and Total Liabilities $ (66,074) $ (112,521) Total Liabilities and Stockholders’ Equity (Deficit) $ (66,074) $ (112,521)

Inventories (Tables)

Inventories (Tables)	12 Months Ended
	Dec. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following: December 31, December, 31, 2015 2014 Purchased Parts and Components $ 3,069,261 $ 1,251,224 Work in Process 154,880 25,974 Finished Goods 612,451 300,889 Less: Reserve for Obsolescence (487,494) (666,138) Net $ 3,349,098 $ 911,949

Tooling and Equipment, Net (Tab

Tooling and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Property, Plant and Equipment, Net [Abstract]
Property, Plant and Equipment	Tooling and equipment consisted of the following: December 31, December 31, 2015 2014 Tooling and Manufacturing Equipment $ 1,082,845 $ 1,374,751 Leaseholds 365,766 — Computers and Software 519,226 581,472 Furniture and Equipment 1,089,718 607,327 3,057,555 2,563,550 Less: Accumulated Depreciation (1,042,122) (2,146,585) Net $ 2,015,433 $ 416,965

Patents and Trademarks, Net (Ta

Patents and Trademarks, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	December 31, December 31, 2015 2014 Patents and Trademarks $ 867,545 $ 697,591 Less: Accumulated Amortization (351,848) (274,102) Net $ 515,697 $ 423,489

Software Development Costs, N32

Software Development Costs, Net (Tables)	12 Months Ended
	Dec. 31, 2015
Research and Development [Abstract]
Schedule Of Software Development Costs	December 31, December 31, 2015 2014 Software Development Costs $ 859,351 $ 859,351 Less: Accumulated Amortization (358,063) (71,613) Net $ 501,288 $ 787,738

Notes Payable (Tables)

Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2015
Notes Payable [Abstract]
Notes payable represent promissory notes payable	Notes payable represent promissory notes payable by the Company. December 31, December 31, 2015 2014 Note 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

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2015
Payables and Accruals [Abstract]
Components of Accrued Expenses	Accrued expenses consisted of the following: December 31, December 31, 2015 2014 Accrued Wages and Related Costs $ 102,792 $ 101,445 Accrued Compensation 358,719 428,786 Accrued Professional Services 89,000 45,000 Accrued Warranty Obligations 64,002 39,624 Accrued Interest 109,984 75,471 Other Accrued Expenses 10,000 8,741 Total $ 734,497 $ 699,067
Changes in Accrued Warranty Obligations	The changes in the Company’s accrued warranty obligations for the years ended December 31, 2015 and 2014 were as follows: 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 Reductions for Settling Warranties (67,858) Warranty Issued During Year 92,236 Accrued Warranty Obligations at December 31, 2015 $ 64,002

Derivative Liability and Fair35

Derivative Liability and Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2015
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, 2015: Total Level 1 Level 2 Level 3 Warrant Liability $ 240,786 $ — $ — $ 240,786 Total liabilities measured at fair value (Long-Term) $ 240,786 $ — $ — $ 240,786 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	Fair value – December 31, 2013 $ 12,035,815 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 Reclassification of warrant exercises to Additional Paid-in Capital (2,855,463) Change in fair value for the period of warrant derivative liability 1,098,465 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 – December 31, 2015 $ 240,786
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, At Issuance – 2014 June 3, 2014 Assumptions for Pricing Model: Expected term in years 2.67 3.00 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, 2015 2014 Assumptions for Pricing Model: Expected term in years 2.60 3.21 to 3.78 Volatility range for years 103 % 81 to 89% Risk-free interest rate 1.06 % 0.83 to 1.11% Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 240,786 $ 10,734,196

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
Components of Long-Term Debt	Long-term debt consisted of the following: December 31, December 31, 2015 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. $ 59,917 $ 186,131 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. (21,085) (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. 16,958 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 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. 1,915,155 2,375,000 Convertible, Senior Secured Notes issued on June 3, 2014 Debt Issuance Costs of $139,340, net of accumulated amortization. The estimated aggregate annual amortization expense for each of the next fiscal years until maturity is approximately $46,000 and approximately $20,000 in the following fiscal year. (66,074) (112,521) 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 which is being amortized as interest expense over the life of the loan or sooner if the related debt is converted. (621,531) (1,348,185) $ 1,283,340 $ 1,104,900 Less: Amount Due Within One Year (55,790) (128,425) Amount Due After One Year $ 1,227,550 $ 976,475
Aggregate maturities for all long-term borrowings	The calendar year aggregate maturities for all long-term borrowings exclusive of discounts as of December 31, 2015 are as follows: Total Aggregate Maturity For Period Amounts 2016 $ 76,875 2017 1,915,155 Total Required Principal Payments Exclusive of Debt Discounts 1,992,030 Total Unamortized Debt Discounts and Deferred Costs (708,690) Total Net Long-Term Borrowings as of December 31, 2015 $ 1,283,340

Capital Lease Obligations (Tabl

Capital Lease Obligations (Tables)	12 Months Ended
	Dec. 31, 2015
Capital Lease Obligations [Abstract]
Capital lease obligation payments	Final payments under the Company’s capital lease obligations were made in September 2015 and there are no further capital lease obligations. December 31, December 31, 2015 2014 Total Principal Payments $ — $ 16,882 Less: Amount Due Within One Year — (16,882) Amount Due After One Year $ — $ —
Annual requirements for retirement of the capital lease obligations	The following is a summary of assets held under capital leases: December 31, 2015 2014 Computers and Software $ — $ 16,200 Furniture and Equipment — 35,083 — 51,283 Less: Accumulated Depreciation — (42,230) Net $ — $ 9,053

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Schedule Of Pre Tax Earnings	Pre-tax earnings consisted of the following for the years ended December 31, 2015 and 2014: December 31, 2015 2014 Pre-Tax (Loss) Earnings U.S. $ (13,425,887) $ (7,868,858) Outside the U.S. (1,591) — Total Pre-Tax (Loss) Earnings $ (13,427,478) $ (7,868,858)
Schedule of Components of Income Tax Expense (Benefit)	The provision (benefit) for income taxes for the years ended December 31, 2015 and 2014 was as follows: 2015 2014 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, 2015 and 2014 is as follows: 2015 2014 Federal Income Tax at Statutory Rate 34.0 % 34.0 % State Tax Provision, Net of Federal Benefit 0.3 % 0.2 % Foreign Income Taxed at Other Than 34% (0.0) % (0.0) % Loss on Derivative Valuation (6.3) % (11.1) % Change in Rate Assumptions 0.0 % 0.0 % Other 0.7 % (2.2) % Effective Tax Rate 28.7 % 20.9 % Change in Valuations Allowance (28.7) % (20.9) % Net Effective Tax Rate 0.0 % 0.0 %
Schedule of Deferred Tax Assets and Liabilities	Deferred tax assets (liabilities) for the years ended December 31, 2015 and 2014 consist of the following: 2015 2014 Deferred Tax Assets Net Operating Loss Carry-forwards $ 15,027,603 $ 11,418,496 Tax Credit Carry-forwards 1,823,661 1,433,229 Other 393,218 876,606 Total Deferred Tax Assets 17,244,482 13,728,331 Deferred Tax Liabilities Other 271,565 614,027 Net Deferred Tax Assets Before Valuation Allowance $ 16,972,917 $ 13,114,304 Valuation Allowance (16,972,917) (13,114,304) Net Deferred Tax Assets $ — $ —

Stock Warrants (Tables)

Stock Warrants (Tables)	12 Months Ended
	Dec. 31, 2015
Changes in Warrants	The following table shows the various changes in warrants for the years December 31, 2015 and 2014. December 31, December 31, 2015 2014 Warrants Outstanding, Beginning of Year 5,236,660 7,147,775 Exercised During the Year (4,746,755) (1,285,746) Issued During the Year 60,000 — Forfeited During the Year (14,814) (625,369) Warrants Outstanding, End of Year 535,091 5,236,660
Schedule assumptions used to compute fair value of warrants granted	The following summary table shows the assumptions used to compute the fair value of the 60,000 ⋅ Expected term in years 2.8 to 3.0 years ⋅ Volatility 122.8 to 122.9% ⋅ Risk-free interest rate 0.90 to 0.99% ⋅ Expected annual dividends None ⋅ Fair value of warrants issued $260,373

Stock Option Plans (Tables)

Stock Option Plans (Tables)	12 Months Ended
	Dec. 31, 2015
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 2009 2014 Plan Plan Plan Total Outstanding as of December 31, 2015 37,447 120,842 864,500 1,022,789 Available for future issuance under plan — — 744,295 744,295 Totals authorized by plan 37,447 120,842 1,608,795 1,767,084
Summary of Stock Option Activity	Weighted Weighted Average Number of Average Remaining Life Shares Exercise Price (years) 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 Granted 374,000 5.67 Exercised (15,833) 2.60 Expired or Forfeited (55,929) 8.12 Outstanding at December 31, 2015 1,022,789 $ 4.59 7.56
Summary of assumptions used to compute the fair value of stock options granted	December 31, 2015 2014 Assumptions for Black-Scholes: Expected term in years 6.0 to 7.9 5.6 to 10.0 Volatility 111.4 to 113.5% 118.6 to 119.7% Risk-free interest rate 1.74% to 2.02% 1.70 to 2.42% Expected annual dividends None None Value of options granted: Number of options granted 374,000 548,000 Weighted average fair value/share $ 4.50 $ 2.63 Fair value of options granted $ 1,684,179 $ 1,241,994

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Contractual Payment Obligations for Operating Leases	Future minimum payments required under operating lease obligations as of December 31, 2015 are as follows: Total Minimum Year Ending Lease Dec 31, Payments 2016 $ 416,052 2017 348,089 2018 335,248 2019 335,248 2020 251,436 Total $ 1,686,073

Summary of Significant Accoun42

Summary of Significant Accounting Policies (Property Plant And Equipment Useful Life) (Detail)	12 Months Ended
	Dec. 31, 2015
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 Accoun43

Summary of Significant Accounting Policies (Balance Sheet Items Were Decreased A Result) (Details) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Non-Current Assets Net Debt Issuance Costs
Changes on Equity or Net Assets	$ (66,074)	$ (112,521)
Total Assets
Changes on Equity or Net Assets	(66,074)	(112,521)
Long-Term Portion of Term Debt, Net of Discount
Changes on Equity or Net Assets	(66,074)	(112,521)
Total Long-Term Liabilities and Total Liabilities
Changes on Equity or Net Assets	(66,074)	(112,521)
Total Liabilities and Stockholders’ Equity (Deficit)
Changes on Equity or Net Assets	$ (66,074)	$ (112,521)

Summary of Significant Accoun44

Summary of Significant Accounting Policies (Additional Information) (Detail)	12 Months Ended
	Dec. 31, 2015USD ($)$ / Unit	Dec. 31, 2014USD ($)
Summary Of Significant Accounting Policies [Line Items]
Percentage Of Revenues From External Customers	32.00%	43.00%
Maximum Percentage Of Revenues From Foreign Countries	10.00%
Percentage On Accounts Receivable	0.00%	6.00%
Advertising Expense	$ 432,325	$ 192,181
Stock Options	568,848	260,747
Asset Impairment Charges	$ 13,222	$ 104,716
Earnings Per Share, Potentially Dilutive Securities	7,366,036	7,012,767
Sales Revenue Net
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	17.00%	0.00%
Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	89.00%	0.00%
M100 Smart Glass
Summary Of Significant Accounting Policies [Line Items]
Best Selling Price Per Unit | $ / Unit	25
M100 software developer kits
Summary Of Significant Accounting Policies [Line Items]
Best Selling Price Per Unit | $ / Unit	40
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	4.00%	10.00%

Inventories Net (Components of

Inventories Net (Components of Inventories) (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Line Items]
Purchased Parts and Components	$ 3,069,261	$ 1,251,224
Work in Process	154,880	25,974
Finished Goods	612,451	300,889
Less: Reserve for Obsolescence	(487,494)	(666,138)
Net	$ 3,349,098	$ 911,949

Tooling and Equipment, Net (Sch

Tooling and Equipment, Net (Schedule Of Tooling And Equipment) (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 3,057,555	$ 2,563,550
Less: Accumulated Depreciation	(1,042,122)	(2,146,585)
Net	2,015,433	416,965
Tooling and Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	1,082,845	1,374,751
Leaseholds
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	365,766	0
Computers and Software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	519,226	581,472
Funiture and Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 1,089,718	$ 607,327

Tooling and Equipment, Net (Add

Tooling and Equipment, Net (Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Tooling and Equipment
Property, Plant and Equipment [Line Items]
Depreciation and Amortization	$ 294,363	$ 225,267

Patents and Trademarks, Net (Sc

Patents and Trademarks, Net (Schedule Of Patents and Trademarks) (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Patents and Trademarks	$ 867,545	$ 697,591
Less: Accumulated Amortization	(351,848)	(274,102)
Net	$ 515,697	$ 423,489

Patents and Trademarks, Net (Ad

Patents and Trademarks, Net (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 86,478	$ 54,050
Impairment of Patents and Trademarks	13,222	104,716
Representing Cost	286,450	71,613
Finite-Lived Intangible Assets, Accumulated Amortization	351,848	274,102
Abandoned Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	63,126
Finite-Lived Intangible Assets, Amortization Expense, Year Two	63,126
Finite-Lived Intangible Assets, Amortization Expense, Year Four	63,126
Finite-Lived Intangible Assets, Amortization Expense, Year Three	63,126
Finite-Lived Intangible Assets, Amortization Expense, Year Five	63,126
Impairment of Patents and Trademarks	13,222	104,716
Representing Cost	21,954	166,500
Finite-Lived Intangible Assets, Accumulated Amortization	$ 8,732	$ 61,784

Software Development Costs, N50

Software Development Costs, Net (Schedule Of Software Development Costs) (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Software Development Costs	$ 859,351	$ 859,351
Less: Accumulated Amortization	(358,063)	(71,613)
Net	$ 501,288	$ 787,738

Software Development Costs, N51

Software Development Costs, Net (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Amortization	$ 86,478	$ 54,050
Software and Software Development Costs
Amortization	$ 286,450	$ 71,613
Finite-Lived Intangible Assets, Remaining Amortization Period	3 years
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	$ 286,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	$ 215,000

Line of Credit (Additional Info

Line of Credit (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2015
Line of Credit Facility [Line Items]
Line of credit	$ 112,500
Line Of Credit, Current	$ 112,500	$ 0
Line of Credit Facility, Interest Rate Description	banks prime rate plus 1%

Notes Payable (Notes Payable Re

Notes Payable (Notes Payable Represent Promissory Notes) (Detail) - USD ($)	Dec. 31, 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 54

Notes Payable (Notes Payable Represent Promissory Notes) (Parenthetical) (Detail)	Dec. 31, 2015	Dec. 31, 2014
Officer and Shareholders [Member]
Notes and Promissory Notes [Line Items]
Interest percentage		18.50%

Notes Payable (Additional Infor

Notes Payable (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Notes and Promissory Notes [Line Items]
Interest Expense, Debt	$ 1,228	$ 32,209

Accrued Expenses (Components of

Accrued Expenses (Components of Accrued Expenses) (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Accrued Liabilities [Line Items]
Accrued Wages and Related Costs	$ 102,792	$ 101,445
Accrued Compensation	358,719	428,786
Accrued Professional Services	89,000	45,000
Accrued Warranty Obligations	64,002	39,624
Accrued Interest	109,984	75,471
Other Accrued Expenses	10,000	8,741
Total	$ 734,497	$ 699,067

Accrued Expenses (Changes in Ac

Accrued Expenses (Changes in Accrued Warranty Obligations) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Class Of Warrant Or Right [Line Items]
Accrued Warranty Obligations	$ 39,624	$ 31,619
Reductions for Settling Warranties	(67,858)	(96,460)
Warranty Issued During Year	92,236	104,465
Accrued Warranty Obligations	$ 64,002	$ 39,624

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Officers Compensation Payable Compounding Monthly Interest Rate	8.00%
Accrued Employee Benefits	$ 327,469	$ 393,536
Interest Payable, Current	$ 97,801	$ 62,081

Derivative Liability and Fair59

Derivative Liability and Fair Value Measurements (Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($)	Dec. 31, 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	$ 240,786	10,734,196
Total liabilities measured at fair value (Long-Term)	240,786	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	240,786	10,734,196
Total liabilities measured at fair value (Long-Term)	$ 240,786	$ 13,541,138

Derivative Liability and Fair60

Derivative Liability and Fair Value Measurements (Schedule of Fair Value Level 3 Warrant Liabilities) (Detail) - USD ($)	Jun. 03, 2014	Dec. 31, 2015	Dec. 31, 2014
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
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		$ 13,541,138	12,035,815
Reclassification of warrant exercises to Additional Paid-in Capital		(2,855,463)	(2,127,405)
Change in fair value for the period of warrant derivative liability		1,098,465	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
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		$ 240,786	$ 13,541,138

Derivative Liability and Fair61

Derivative Liability and Fair Value Measurements (Compute The Fair Value Of Warrants Issued) (Detail) - USD ($)	Jun. 03, 2014	Dec. 31, 2014
Value of convertible debt price adjustment:
Fair value of debt embedded conversion price adjustment option	$ 1,938,988
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%
Expected annual dividends	0.00%	0.00%
Value of convertible debt price adjustment:
Fair value of debt embedded conversion price adjustment option	$ 1,938,988	$ 2,806,942

Derivative Liability and Fair62

Derivative Liability and Fair Value Measurements (Estimate the fair value of warrants outstanding) (Detail) - Monte Carlo Options Lattice Pricing Model Warrants Outstanding - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Assumptions for Pricing Model:
Expected term in years	2 years 7 months 6 days
Volatility range for years	103.00%
Risk-free interest rate	1.06%
Expected annual dividends	0.00%	0.00%
Value of warrants outstanding:
Fair value of warrants	$ 240,786	$ 10,734,196
Minimum
Assumptions for Pricing Model:
Expected term in years		3 years 2 months 16 days
Volatility range for years		81.00%
Risk-free interest rate		0.83%
Maximum
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 Fair63

Derivative Liability and Fair Value Measurements (Additional Information) (Detail) - USD ($)	Jun. 03, 2014	Dec. 31, 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 ($)	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long term debt	$ 1,283,340	$ 1,104,900
Less: Amount Due Within One Year	(55,790)	(128,425)
Amount Due After One Year	1,227,550	976,475
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	(21,085)	(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	1,915,155	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 which is being amortized as interest expense over the life of the loan or sooner if the related debt is converted [Member]
Debt Instrument [Line Items]
Unamortized Debt Discount Related To Derivative Liability	(621,531)	(1,348,185)
Convertible, Senior Secured Notes Issued on June 3, 2014 [Member]
Debt Instrument [Line Items]
Long term debt	(66,074)	(112,521)
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	59,917	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	$ 16,958	$ 50,874

Long-Term Debt (Components of65

Long-Term Debt (Components of Long-Term Debt) (Parenthetical) (Detail) - USD ($)	Jun. 03, 2014	Dec. 31, 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 Issued on June 3, 2014 [Member]
Debt Instrument [Line Items]
Debt Issuance Cost	$ 139,340
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months		$ 46,000	$ 20,000
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 ($)	Dec. 31, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
2,016	$ 76,875
2,017	1,915,155
Total Required Principal Payments Exclusive of Debt Discounts	1,992,030
Total Unamortized Debt Discounts and Deferred Costs	(708,690)
Total Net Long-Term Borrowings as of December 31, 2015	$ 1,283,340	$ 1,104,900

Long-Term Debt (Additional Info

Long-Term Debt (Additional Information) (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2015	Dec. 31, 2014
Line of Credit Facility [Line Items]
Debt Conversion, Converted Instrument, Amount		$ 459,845	$ 625,000
Proceeds from Issuance of Senior Long-term Debt		0	3,000,000
Convertible, Senior Secured Notes Issued on June 3, 2014 [Member]
Line of Credit Facility [Line Items]
Debt Conversion, Converted Instrument, Amount		$ 12,655
Conversion of Stock, Shares Converted		5,624
June 2014 Notes [Member]
Line of Credit Facility [Line Items]
Extinguishment of Debt, Amount		$ 459,845	$ 625,000
Senior Secured Convertible Note [Member]
Line of Credit Facility [Line Items]
Debt Instrument, Convertible, Conversion Price		$ 2.25
Proceeds from Issuance of Senior Long-term Debt	$ 3,000,000
Debt Instrument, Interest Rate, Stated Percentage	5.00%	5.00%
Conversion of Stock, Shares Converted		204,376	277,000

Capital Lease Obligations (Equi

Capital Lease Obligations (Equipment Held Under Capital Lease Obligations Due) (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Capital Leased Assets [Line Items]
Total Principal Payments	$ 0	$ 16,882
Less: Amount Due Within One Year	0	16,882
Amount Due After One Year	$ 0	$ 0

Capital Lease Obligations (Summ

Capital Lease Obligations (Summary Of Assets Held Under Capital Leases) (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Capital Leased Assets, Gross	$ 0	$ 51,283
Less: Accumulated Depreciation	0	(42,230)
Net	0	9,053
Funiture and Equipment
Property, Plant and Equipment [Line Items]
Capital Leased Assets, Gross	0	35,083
Computer and Software
Property, Plant and Equipment [Line Items]
Capital Leased Assets, Gross	$ 0	$ 16,200

Capital Lease Obligations (Addi

Capital Lease Obligations (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Capital Lease Obligations Additional Information [Line Items]
Capital Lease Obligation Monthly Lease Payments	$ 2,049
Capital Lease Obligation Interest Rate	26.71%
Assets Held under Capital Leases [Member]
Capital Lease Obligations Additional Information [Line Items]
Depreciation	$ 9,053	$ 12,417

Income Taxes (Pre-Tax Earnings)

Income Taxes (Pre-Tax Earnings) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Pre-Tax (Loss) Earnings
Total Pre-Tax (Loss) Earnings	$ (13,427,478)	$ (7,868,858)
UNITED STATES
Pre-Tax (Loss) Earnings
Total Pre-Tax (Loss) Earnings	(13,425,887)	(7,868,858)
Outside the U.S. [Member]
Pre-Tax (Loss) Earnings
Total Pre-Tax (Loss) Earnings	$ (1,591)	$ 0

Income Taxes (Provision Benefit

Income Taxes (Provision Benefit For Income Taxes) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
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, 2015	Dec. 31, 2014
Effective Income Tax Rate Reconciliation [Line Items]
Federal Income Tax at Statutory Rate	34.00%	34.00%
State Tax Provision, Net of Federal Benefit	0.30%	0.20%
Foreign Income Taxed at Other Than 34%	(0.00%)	(0.00%)
Loss on Derivative Valuation	(6.30%)	(11.10%)
Change in Rate Assumptions	0.00%	0.00%
Other	0.70%	(2.20%)
Effective Tax Rate	28.70%	20.90%
Change in Valuations Allowance	(28.70%)	(20.90%)
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, 2015	Dec. 31, 2014
Deferred Tax Assets
Net Operating Loss Carry-forwards	$ 15,027,603	$ 11,418,496
Tax Credit Carry-forwards	1,823,661	1,433,229
Other	393,218	876,606
Total Deferred Tax Assets	17,244,482	13,728,331
Deferred Tax Liabilities
Other	271,565	614,027
Net Deferred Tax Assets Before Valuation Allowance	16,972,917	13,114,304
Valuation Allowance	(16,972,917)	(13,114,304)
Net Deferred Tax Assets	$ 0	$ 0

Income Taxes (Additional Inform

Income Taxes (Additional Information) (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Income Taxes Additional Information [Line Items]
Federal and State Net Operating Loss Carryforwards	$ 43,900,000
Percentage Of Valuation Allowance On Deferred Tax Assets	100.00%	100.00%
Deferred Tax Assets, Tax Credit Carryforwards	$ 1,823,661	$ 1,433,229

Capital Stock (Additional Infor

Capital Stock (Additional Information) (Detail) - USD ($)	Jan. 02, 2015	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2014
Preferred Stock Shares Authorized		5,000,000	5,000,000
Preferred Stock, Liquidation Preference Per Share		$ 1,000
Preferred Stock Shares Outstanding		49,626	0	0
Preferred Stock Shares Outstanding In Percent liquidation or amendment actions		0.00%
Dividends Payable		$ 1,514,081
Common Stock Shares Authorized		100,000,000	100,000,000
Common Stock Shares Issued		16,087,951	11,295,387
Common Stock Shares Outstanding		16,087,951	11,295,387
Common Stock, Par Or Stated Value Per Share		$ 0.001	$ 0.001
Preferred Stock Shares Issued		49,626	0
Director Two [Member]
Preferred Stock Shares Outstanding In Percent		25.00%
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 In Percent		20.00%
Description of Preferred Stock		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.
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) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Class Of Warrant Or Right [Line Items]
Warrants Outstanding, Beginning of Year	5,236,660	7,147,775
Exercised During the Year	(4,746,755)	(1,285,746)
Issued During the Year	60,000	0
Forfeited During the Year	(14,814)	(625,369)
Warrants Outstanding, End of Year	535,091	5,236,660

Stock Warrants (Assumptions Use

Stock Warrants (Assumptions Used To Compute The Fair Value Of Warrants) (Detail) - Warrant [Member]	12 Months Ended
	Dec. 31, 2015USD ($)
Fair Value Assumptions, Expected Dividend Rate	0.00%
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) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Class of Warrant or Right [Line Items]
Weighted average term of warrants	2 years 3 months 18 days
Weighted average exercise price of warrants per share	$ 2.43
Class Of Warrant Or Right Grants In Period	60,000	0
Stock Issued During Period, Shares, Warrant Exercised	3,559,783
Proceeds from Issuance of Warrants	$ 1,272,627
Class Of Warrant Exercised In Cashless Basis	4,178,267
Class Of Warrant Exercised In Cash Basis	568,488

Stock Option Plans (Summary Of

Stock Option Plans (Summary Of Stock Option Plans) (Detail) - shares	Dec. 31, 2015	Dec. 31, 2014
Stock Option Plan [Line Items]
Outstanding as of December 31, 2015	1,022,789
Available for future issuance under plan	744,295
Totals authorized by plan	1,767,084
2007 Plan
Stock Option Plan [Line Items]
Outstanding as of December 31, 2015	37,447
Available for future issuance under plan	0
Totals authorized by plan	37,447
2009 Plan
Stock Option Plan [Line Items]
Outstanding as of December 31, 2015	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, 2015	864,500
Available for future issuance under plan	744,295
Totals authorized by plan	1,608,795	1,000,000

Stock Option Plans (Summary o81

Stock Option Plans (Summary of Stock Option Activity) (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of shares outstanding
Outstanding, Ending Balance	1,022,789
Employee Stock Option [Member]
Number of shares outstanding
Outstanding, Beginning Balance	720,551	214,518
Granted	374,000	548,000
Exercised	(15,833)	(10,819)
Expired or Forfeited	(55,929)	(31,148)
Outstanding, Ending Balance	1,022,789	720,551	214,518
Weighted Average Exercise Price
Outstanding, Beginning Balance	$ 4.46	$ 9.72
Granted	5.67	2.63
Exercised	2.60	1.71
Expired or Forfeited	8.12	2.71
Outstanding, Ending Balance	$ 4.59	$ 4.46	$ 9.72
Weighted Average Remaining Life (Years)
Options Outstanding, Weighted Average Remaining Life (Years)	7 years 6 months 22 days	8 years 6 months 22 days	6 years 1 month 10 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, 2015	Dec. 31, 2014
Assumptions for Pricing Model:
Expected annual dividends	$ 0	$ 0
Value of options granted:
Number of options granted	374,000	548,000
Weighted average fair value/share	$ 4.50	$ 2.63
Fair value of options issued	$ 1,684,179	$ 1,241,994
Minimum [Member]
Assumptions for Pricing Model:
Expected term in years	6 years	5 years 7 months 6 days
Volatility	111.40%	118.60%
Risk-free interest rate	1.74%	1.70%
Maximum [Member]
Assumptions for Pricing Model:
Expected term in years	7 years 10 months 24 days	10 years
Volatility	113.50%	119.70%
Risk-free interest rate	2.02%	2.42%

Stock Option Plans (Additional

Stock Option Plans (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Exercisable Options Outstanding Shares	424,688
Weighted average exercise price per share	$ 5.34
Unvested Options Outstanding, Shares	598,101	462,765
Unvested Options Outstanding, Weighted average exercise price	$ 4.05
Unvested Options Outstanding Weighted average remaining life (yrs)	7 years 4 months 24 days
Weighted average remaining contractual term on unvested options	7 years 4 months 24 days
Unrecognized stock compensation expense	$ 2,186,000	$ 1,100,000
Weighted average recognition period	2 years 2 months 12 days
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized	1,767,084
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	$ 3,449,805
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	598,101
2014 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	1,608,795	1,000,000
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum	10.00%
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	100.00%

Commitments (Future Minimum Pay

Commitments (Future Minimum Payments Required Under Operating Lease) (Detail)	Dec. 31, 2015USD ($)
Future Minimum Payments Required Under Operating Lease [Line Items]
2,016	$ 416,052
2,017	348,089
2,018	335,248
2,019	335,248
2,020	251,436
Total	$ 1,686,073

Commitments (Additional Informa

Commitments (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Commitment Contingencies Disclosure [Line Items]
Lease Expiration Date	Oct. 3, 2020
Operating Leases, Rent Expense, Minimum Rentals	$ 335,248
Operating Leases, Rent Expense	186,471	$ 116,743
Other Commitment, Total	$ 250,000
Operating Lease Commencement Date	Oct. 3, 2015
Lessee Leasing Arrangements, Operating Leases, Term of Contract	5 years
Lessee Leasing Arrangements, Operating Leases, Renewal Term	3 years

Employee Benefit Plans (Additio

Employee Benefit Plans (Additional Information) (Detail)	12 Months Ended
	Dec. 31, 2015
Employee Benefit Plans [Line Items]
Percentage Of Employee Deferrals	100.00%

Concentrations (Additional Info

Concentrations (Additional Information) (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Sales Revenue, Net [Member]
Concentrations [Line Items]
Concentration Risk, Percentage	17.00%	0.00%
Sales Revenue, Net [Member] | U.S. government [Member]
Concentrations [Line Items]
Concentration Risk, Percentage	4.00%	10.00%
Sales Revenue, Net [Member] | One Customer [Member]
Concentrations [Line Items]
Concentration Risk, Percentage	18.00%	0.00%
Accounts Receivable [Member]
Concentrations [Line Items]
Concentration Risk, Percentage	89.00%	0.00%
Accounts Receivable [Member] | U.S. government [Member]
Concentrations [Line Items]
Concentration Risk, Percentage	0.00%	6.00%

Related Party Transactions (Add

Related Party Transactions (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions Additional Information [Line Items]
Interest Expense, Debt	$ 1,228	$ 32,209
Related Party Transaction, Rate	8.00%
Due to Officers or Stockholders	$ 327,469	393,536
Interest Expense, Related Party	$ 97,801	$ 62,081
Sales Revenue, Net [Member]
Related Party Transactions Additional Information [Line Items]
Concentration Risk, Percentage	17.00%	0.00%
Officer [Member]
Related Party Transactions Additional Information [Line Items]
Interest Expense, Debt	$ 35,722	$ 33,907
Major Stockholder [Member]
Related Party Transactions Additional Information [Line Items]
Accounts Receivable, Related Parties, Current	290,750
Revenues	$ 481,920
Percentage Of Preferred Stock Shares Converted In To Common Stock	24.00%
Major Stockholder [Member] | Sales Revenue, Net [Member]
Related Party Transactions Additional Information [Line Items]
Concentration Risk, Percentage	18.00%