Vuzix (VUZI) 10-K 16 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Mar. 16, 2017	Jun. 30, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2,016
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 Accelerated Filer
Entity Public Float			$ 95,110,000
Trading Symbol	VUZI
Entity Common Stock, Shares Outstanding		20,206,400

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current Assets
Cash and Cash Equivalents	$ 14,533,944	$ 11,877,058
Accounts Receivable	103,314	325,694
Inventories, Net	2,651,218	3,349,098
Manufacturing Vendor Prepayments	144,168	369,411
Prepaid Expenses and Other Assets	797,409	608,950
Total Current Assets	18,230,053	16,530,211
Long-Term Assets
Fixed Assets, Net	3,364,908	2,015,433
Patents and Trademarks, Net	535,461	515,697
Software Development Costs, Net	214,838	501,288
Total Assets	22,345,260	19,562,629
Current Liabilities
Accounts Payable	1,085,472	907,434
Current Portion of Long-term Debt, net of discount	1,416,480	55,790
Customer Deposits	66,162	27,847
Unearned Revenue	509,572	69,481
Accrued Expenses	1,331,983	734,497
Income and Other Taxes Payable	12,290	7,073
Total Current Liabilities	4,421,959	1,802,122
Long-Term Liabilities
Derivative Liability	173,131	240,786
Term Debt, net of discounts	0	1,227,550
Accrued Expenses	28,333	38,333
Accrued Interest	0	160,967
Total Long-Term Liabilities	201,464	1,667,636
Total Liabilities	4,623,423	3,469,758
Stockholders' Equity
Preferred Stock — $.001 Par Value, 5,000,000 Shares Authorized; 49,626 and 49,626 Shares Issued and Outstanding December 31, 2016 and 2015.	50	50
Common Stock — $.001 Par Value, 100,000,000 Shares Authorized December 31, 2016 and 2015; 19,569,247 and 16,087,951 Shares Issued and Outstanding December 31, 2016 and 2015, respectively.	19,569	16,088
Additional Paid-in Capital	94,541,168	73,665,601
Accumulated Deficit	(76,838,950)	(57,588,868)
Total Stockholders' Equity	17,721,837	16,092,871
Total Liabilities and Stockholders' Equity	$ 22,345,260	$ 19,562,629

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Preferred Stock, Par Value	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	5,000,000	5,000,000
Preferred Stock, Shares Issued	49,626	49,626
Preferred Stock, Shares Outstanding	49,626	49,626
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	100,000,000	100,000,000
Common Stock, Shares Issued	19,569,247	16,087,951
Common Stock, Shares Outstanding	19,569,247	16,087,951

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
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
Exercise of Warrants	1,272,626		$ 4,128	1,268,498
Exercise of Warrants (in shares)			4,128,271
Reclass Fair Value of Warrant Derivative Liability upon Exercise	2,855,463			2,855,463
Conversion of Note Payable and Interest	472,500		$ 210	472,290
Conversion of Note Payable and Interest (in shares)			210,000
Stock Issued for Services	676,665		$ 121	676,544
Stock Issued for Services (in shares)			120,837
Common Stock Awards to Officers and Directors (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	8,736,412			8,736,412
Reclass Fair Value of Note Derivative Liability Upon Waiver of Certain Anti-Dilutive Provisions	2,806,942			2,806,942
Exercise of Stock Options			$ 8	(8)
Exercise of Stock Options (in shares)			8,456
Warrants Issued for Services	260,373			260,373
Stock Compensation Expense	568,848			568,848
Common Stock Awards to Officers and Directors	1,669,700		$ 325	1,669,375
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
Exercise of Warrants	60,751		$ 97	60,654
Exercise of Warrants (in shares)			96,620
Reclass Fair Value of Warrant Derivative Liability upon Exercise	32,911			32,911
Conversion of Note Payable and Interest	342,036		$ 152	341,884
Conversion of Note Payable and Interest (in shares)			152,016
Stock Issued for Services	174,025		$ 32	173,993
Stock Issued for Services (in shares)			32,578
Common Stock Awards to Officers and Directors (in shares)			40,000
Direct costs of preferred stock Offering	(1,874,485)			(1,874,485)
Exercise of Stock Options	33,082		$ 10	33,072
Exercise of Stock Options (in shares)			10,082
Stock Compensation Expense	756,928			756,928
Common Stock Awards to Officers and Directors	241,300		$ 40	241,260
Proceeds from Common Stock Offerings	21,112,500		$ 3,150	21,109,350
Proceeds from Common Stock Offerings (in shares)			3,150,000
Net Loss	(19,250,082)				(19,250,082)
Balance at Dec. 31, 2016	$ 17,721,837	$ 50	$ 19,569	$ 94,541,168	$ (76,838,950)
Balance (in shares) at Dec. 31, 2016		49,626	19,569,247

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Sales of Products	$ 1,987,878	$ 2,544,153
Sales of Engineering Services	139,500	205,831
Total Sales	2,127,378	2,749,984
Cost of Sales — Products	3,251,906	2,101,466
Cost of Sales — Engineering Services	39,060	82,332
Total Cost of Sales	3,290,966	2,183,798
Gross Profit (Loss) (exclusive of depreciation shown separately below)	(1,163,588)	566,186
Operating Expenses:
Research and Development	6,947,878	3,595,437
Selling and Marketing	3,394,580	1,798,041
General and Administrative	5,114,139	6,120,101
Depreciation and Amortization	770,668	380,841
Loss on Inventory Valuation	1,124,401	0
Impairment of Patents and Trademarks	20,506	13,222
Total Operating Expenses	17,372,172	11,907,642
Loss from Operations	(18,535,760)	(11,341,456)
Other Income (Expense)
Other Taxes	(52,271)	(54,432)
Investment Income	26,693	20,790
Loss on asset disposal	(25,890)	0
Foreign Exchange Loss	(33,079)	(277)
Amortization of Deferred Financing Costs	(46,574)	(46,447)
Loss on Derivative Valuation	34,744	(1,098,465)
Amortization of Senior Term Debt Discount	(486,856)	(751,968)
Interest Expense	(131,089)	(155,223)
Total Other Income (Expense)	(714,322)	(2,086,022)
Loss Before Provision for Income Taxes	(19,250,082)	(13,427,478)
Provision for Income Taxes	0	0
Net Loss	(19,250,082)	(13,427,478)
Preferred Stock Dividends	(1,620,048)	(1,514,081)
Loss Attributable to Common Stockholders	$ (20,870,130)	$ (14,941,559)
Basic and Diluted Loss per Share	$ (1.23)	$ (0.97)
Weighted-average Shares Outstanding - Basic and Diluted	16,908,544	15,408,724

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash Flows from Operating Activities
Net Loss	$ (19,250,082)	$ (13,427,478)
Non-Cash Adjustments
Depreciation and Amortization	770,668	380,841
Amortization of Software Development Costs in cost of sales products	286,450	286,450
Impairment of Patents and Trademarks	20,506	13,222
Common Stock Awards Compensation Expense	146,050	1,669,700
Loss on disposal of fixed assets	25,890	0
Stock-Based Option Compensation Expense	756,928	568,848
Amortization of Term Debt Discount	486,856	751,968
Amortization of Debt Issuance Costs	46,574	46,447
Common Stock and Warrants Issued for Services	174,026	1,057,074
(Gain) Loss on Derivative Valuation	(34,744)	1,098,465
Loss on Inventory Valuation	1,124,401	0
(Increase) Decrease in Operating Assets
Accounts Receivable	222,380	57,839
Inventories	(426,521)	(2,437,149)
Vendor Prepayments	225,243	(213,320)
Prepaid Expenses and Other Assets	(78,389)	(306,078)
Increase (Decrease) in Operating Liabilities
Accounts Payable	178,037	(1,276,132)
Accrued Expense	31,909	143,830
Customer Deposits	38,315	(92,703)
Unearned Revenue	440,091	16,078
Income and Other Taxes Payable	5,217	(28,085)
Accrued Compensation	290,000	(70,067)
Accrued Interest & Long-Term Accrued Interest Converted	123,231	92,171
Net Cash Flows Used in Operating Activities	(14,396,964)	(11,668,079)
Cash Flows from Investing Activities
Purchases of Fixed Assets	(2,039,299)	(1,892,831)
Investments in Patents and Trademarks	(147,004)	(191,908)
Net Cash Used in Investing Activities	(2,186,303)	(2,084,739)
Cash Flows from Financing Activities
Proceeds from Exercise of Warrants	60,750	1,272,627
Repayment of Capital Leases	0	(16,882)
Repayment of Long-Term Debt and Notes Payable	(76,875)	(197,167)
Proceeds from Preferred Stock Offering	0	24,813,000
Issuance Costs on Preferred Stock Offering	0	(214,169)
Proceeds from Common Stock Offerings	21,112,500
Issuance Costs on Common Stock Offerings	(1,874,485)
Net Change in Lines of Credit	0	(112,500)
Proceeds from Exercise of Stock Options	18,263	0
Net Cash Flows Provided by Financing Activities	19,240,153	25,544,909
Net Increase in Cash and Cash Equivalents	2,656,886	11,792,091
Cash and Cash Equivalents - Beginning of Period	11,877,058	84,967
Cash and Cash Equivalents - End of Period	14,533,944	11,877,058
Supplemental Disclosures
Interest Paid in Cash	7,696	41,194
Common Stock and Warrants Issued for Services	174,026	936,937
Conversion of Term Debt and Accrued Interest into Common Stock	342,036	472,500
Reclassification of Derivative Liability to Paid-In Capital upon Waiver of Certain Anti-Dilutive Provisions of Warrants and Convertible Debt	0	11,543,354
Common Stock Issued for Services, Classified as Prepaid Expense Upon Issuance	190,500	0
Reclassification of Derivative Liability Upon Warrant Exercises	32,911	2,855,463
Receivable from Stock Option Exercise	$ 14,820	$ 0

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
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 wearable display devices, that are generally worn like eyeglasses, and are also referred to as head mounted displays (or HMDs), in the form of Augmented Reality (AR) glasses, Virtual Reality (VR) glasses and Smart Glasses, that are generally worn like eyeglasses. We now produce and sell two main types of wearable display products: Smart Glasses for a variety of enterprise and commercial users and applications, including AR; and Video Viewing glasses (for on-the-go users as mobile displays for entertainment, gaming as well as support for stepping into virtual worlds, simulations & VR gaming). 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 57 32 10 10 18 89 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, 2016 and 2015 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 5 3,700,000 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, 2016 and 2015. The Company does not accrue interest on a past due accounts receivable unless it goes into collection. Inventories are valued at the lower of cost or net realizable value 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 Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 consist of more than one element, the product 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 with this 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. Fixed Assets Computers and Software 3 years Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years 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 software development effort 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 2016, an impairment charge of $ 20,506 13,222 Research and development costs, are expensed as incurred consistent with the guidance of FASB ASC Topic 730, “Research and Development,” and include employee related costs, office expenses, third party design and engineering services, and new product prototyping costs. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Shipping and Handling Costs Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in net sales and cost of goods sold, respectively 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, based on historical experience of warranty claims and costs. Customer deposits represent money the Company has 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, 2016 and 2015 amounted to $ 1,279,998 432,325 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 income (loss) 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 result of the net losses generated in 2016 and 2015, all outstanding instruments would be antidilutive. As of December 31, 2016 and 2015, there were 7,227,738 7,475,623 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 estimates of forfeitures, option lives, and stock price volatility, 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 ended December 31, 2016 and 2015 was $ 756,928 568,848 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 Derivatives and Hedging 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, 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 In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update No. 2014-09 (ASU 2014-09) Revenue from Contracts with Customers In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ASU 2016-02 Leases In March 2016, the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU No. 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients Recently Adopted Accounting Pronouncements In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements – Going Concern In July 2015, the FASB issued ASU 2015-11 Inventory – Simplifying the Measurement of Inventory There are no other recent accounting pronouncements that are expected to have a material impact on the consolidated financial statements.

Going Concern Issues

Going Concern Issues	12 Months Ended
	Dec. 31, 2016
Going Concern Disclosure [Abstract]
Going Concern Issues	Note 2 — Going Concern Issues The accompanying Condensed Consolidated Financial Statements have been prepared assuming that we will continue as a going concern. This basis of accounting contemplates the recovery of our assets and the satisfaction of liabilities in the normal course of business. These Condensed Consolidated Financial Statements do not include any adjustments to the specific amounts and classifications of assets and liabilities, which might be necessary should we be unable to continue as a going concern. The Company incurred annual net losses of $19,250,082 in 2016 and $ 13,427,478 76,838,950 The Company’s cash requirements are primarily for funding operating losses, working capital, research, debt service and capital expenditures. Our cash requirements related to funding operating losses depend on numerous factors, including new product development activities, our ability to commercialize our products, our products’ timely market acceptance, selling prices and gross margins, and other factors. Historically, the Company has met these cash needs by borrowings under notes, sales of convertible debt, and the sales of equity. On July 11, 2016, the Company closed its public offering of 1,150,000 5.75 14,500,000 The Company’s management intends to take actions necessary to continue as a going concern, as discussed herein. The Company will need to grow its business significantly to become profitable and self-sustaining on a cash flow basis. Management’s plans concerning these matters and managing our liquidity includes among other things: · the commencement of volume manufacturing and sale of the new M300 Smart Glasses in March 2017; · the recent receipt of a $1,145,000 Smart Glasses development program with Toshiba, which we expect to be complete by September 2017; · the introduction of see-through waveguide including our M3000 Smart Glasses and Blade Smart Sunglasses; · tightly control operating costs and reduce spending growth rates wherever possible; · delay or curtail discretionary and non-essential capital expenditures not related to near-term new products; · reduce the rate of research and development spending on new technologies, particularly the use of costly external contractors; and · delay some planned new products based on new technology. However, if these plans are not successful within a reasonable time period, we will have to raise additional capital to maintain operations and/or materially reduce our operating and new product development costs. If the Company raises additional funds, the ownership interest of existing stockholders may be diluted. The amount of such dilution could increase due to the issuance of new warrants or securities with other dilutive characteristics, such as full ratchet anti-dilution clauses or price resets. Based upon our current amount of cash on hand, management’s historical ability to raise capital, and our ability to manage our cost structure and adjust operating plans if and as required, we have concluded that substantial doubt of our ability to continue as a going concern has been alleviated.

Inventories, Net

Inventories, Net	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Inventories	Note 3 — Inventories, Net December 31, December, 31, 2016 2015 Purchased Parts and Components $ 1,990,026 $ 3,069,261 Work in Process 454,120 154,880 Finished Goods 831,069 612,451 Less: Reserve for Obsolescence (623,997) (487,494) Net $ 2,651,218 $ 3,349,098 In addition to its normal Reserve for Obsolescence provision, the Company wrote-down to net realizable value all of its component and finished goods inventory related to its iWear Video Headphones resulting from the decision in early 2017 to reduce the suggested retail selling price to a price below the cost. The write down totaled $ 1,124,401

Fixed Assets, Net

Fixed Assets, Net	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment, Net [Abstract]
Fixed Assets, Net	Note 4 — Fixed Assets, Net Fixed Assets consisted of the following: December 31, December 31, Tooling and Manufacturing Equipment $ 2,702,468 $ 1,082,845 Leaseholds 403,737 365,766 Computers and Software 585,795 519,226 Furniture and Equipment 1,359,522 1,089,718 5,051,522 3,057,555 Less: Accumulated Depreciation (1,686,614) (1,042,122) Fixed Assets, Net $ 3,364,908 $ 2,015,433 Total depreciation expense for tooling and equipment for the years ended 663,934 294,363

Patents and Trademarks, Net

Patents and Trademarks, Net	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Patents and Trademarks, Net	Note 5 — Patents and Trademarks, Net December 31, December 31, 2016 2015 Patents and Trademarks $ 970,178 $ 867,545 Less: Accumulated Amortization (434,717) (351,848) Patents and Trademarks, Net $ 535,461 $ 515,697 Total amortization expense for patents and trademarks for the years ended 106,734 86,478 65,000 20,506 44,371 23,865 ended 13,222 21,954 8,732 ended December

Software Development Costs, Net

Software Development Costs, Net	12 Months Ended
	Dec. 31, 2016
Research and Development [Abstract]
Software Development Costs, Net	Note 6 — Software Development Costs, Net December 31, December 31, 2016 2015 Software Development Costs $ 859,351 $ 859,351 Less: Accumulated Amortization (644,513) (358,063) Software Development Costs, Net $ 214,838 $ 501,288 Total amortization expense for capitalized software development costs for the years ended and 2015 286,450 286,450 , respectively 3 in will be 215,000 for ended

Accrued Expenses

Accrued Expenses	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Accrued Expenses	Note 7 — Accrued Expenses December 31, December 31, 2016 2015 Accrued Wages and Related Costs $ 119,472 $ 102,792 Accrued Compensation 648,720 358,719 Accrued Professional Services 137,099 89,000 Accrued Warranty Obligations 41,132 64,002 Accrued Interest 375,560 109,984 Other Accrued Expenses 10,000 10,000 Total $ 1,331,983 $ 734,497 Included in the above accrued compensation are amounts owed to officers of the Company for services rendered that remain outstanding from prior to 2015, as well as 2016 declared bonuses. The pre-2015 amounts are not subject to a fixed repayment schedule and they bear interest at a rate of 8 358,720 358,719 141,645 97,801 290,000 The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally one year except in certain European countries where it is two years for some of our products. The costs incurred to provide for these warranty obligations are estimated and recorded as an accrued liability at the time of sale. The Company estimates its future warranty costs based on product-based historical performance rates and related costs to repair. Accrued Warranty Obligations at December 31, 2014 $ 39,624 Reductions for Settling Warranties (67,858) Warranty Issued During Year 92,236 Accrued Warranty Obligations at December 31, 2015 64,002 Reductions for Settling Warranties (103,265) Warranty Issued During Year 80,395 Accrued Warranty Obligations at December 31, 2016 $ 41,132

Derivative Liability and Fair V

Derivative Liability and Fair Value Measurements	12 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liability and Fair Value Measurements	Note 8 — 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 Derivatives and Hedging 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, 2016 and 2015 a total of 38,100 45,100 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 zero and reclassified into stockholders’ equity under Additional Paid-In Capital. 2016: Total Level 1 Level 2 Level 3 Warrant Liability $ 173,131 $ — $ — $ 173,131 Total liabilities measured at fair value (Long-Term) $ 173,131 $ — $ — $ 173,131 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 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 Reclassification of warrant exercises to Additional Paid-in Capital (32,911) Change in fair value for the period of warrant derivative liability (34,744) Fair value – December 31, 2016 $ 173,131 For the years ending December 31, 2016 and 2015, since the embedded conversion option as described above was permanently waived on January 2, 2015, the value was reduced to zero. December 31, December 31, 2016 2015 Assumptions for Pricing Model: Expected term in years 1.22 2.60 Volatility range for years 100 % 103 % Risk-free interest rate 1.47 % 1.06 % Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 173,131 $ 240,786

Long-Term Debt

Long-Term Debt	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Note 9 — Long-Term Debt December 31, December 31, 2016 2015 Note payable for research and development equipment. The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2012 over 48 months. The note carries a 0% interest rate. The note was repaid in full during 2016. $ — $ 59,917 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) 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. This note was repaid in full during 2016. — 16,958 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% annual interest rate, payable upon the note’s maturity. Both the interest plus accrued interest is convertible into shares of the Company’s common stock 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. 1,591,740 1,915,155 Convertible, Senior Secured Notes Debt Issuance Costs of $139,340, net of accumulated amortization. The estimated aggregate annual amortization expense is approximately $20,000 in 2017. (19,500) (66,074) 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. (155,760) (621,531) $ 1,416,480 $ 1,283,340 Less: Amount Due Within One Year (1,416,480) (55,790) Amount Due After One Year $ — $ 1,227,550 Total Aggregate Maturity For Period Amounts 2017 $ 1,591,740 Total Unamortized Debt Discounts and Deferred Costs (175,260) Total Borrowings as of December 31, 2016 $ 1,416,480 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, $ 323,415 143,740 459,845 204,376 $ 18,621 8,276 12,655 5,624

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Note 10 — Income Taxes The Company files U.S. federal and various state and foreign tax returns. December 31, December 31, 2016 2015 Pre-Tax (Loss) Earnings U.S. $ (18,262,129) $ (13,425,887) Outside the U.S. (987,953) (1,591) Total Pre-Tax (Loss) Earnings $ (19,250,082) $ (13,427,478) 2016 2015 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 $ — $ — 2016 2015 Federal Income Tax at Statutory Rate 34.0 34.0 State Tax Provision, Net of Federal Benefit 0.3 0.3 Foreign Income Taxed at Other Than 34% (0.7) (0.0) Loss on Derivative Valuation 0.0 (6.3) Other 0.5 0.7 Effective Tax Rate 34.1 28.7 Change in Valuation Allowance (34.1) (28.7) Net Effective Tax Rate 0.0 0.0 Significant components of the Company’s deferred tax assets and liabilities at year end are as follows: December 31, December 31, Deferred Tax Assets Net Operating Loss Carry-forwards $ 19,752,311 $ 15,027,603 Tax Credit Carry-forwards 2,398,817 1,823,661 Inventory Valuation Adjustment 622,168 161,944 Officer’s Compensation 271,095 141,491 Loss from Foreign Operations 197,907 Other 44,372 89,783 Total Deferred Tax Assets 23,286,670 17,244,482 Deferred Tax Liabilities Other 76,815 271,565 Net Deferred Tax Assets Before Valuation Allowance $ 23,209,855 $ 16,972,917 Valuation Allowance (23,209,855) (16,972,917) Net Deferred Tax Assets $ — $ — As of December 31, 2016, the Company has approximately $ 57.6 2.4 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 2012-2016 are open to examination by the major taxing jurisdictions to which the Company is subject. FASB ASC 740 (Prior Authoritative Literature: SFAS No. 109, Accounting for Income Taxes), requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differing treatment of items for financial reporting and income tax reporting purposes. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. In light of the historic losses of the Company, a 100

Capital Stock

Capital Stock	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Capital Stock	Note 11 — Capital Stock Preferred stock The Board of Directors is authorized to establish and designate different series of preferred stock and to fix and determine the voting powers and other special rights and qualifications of such series. A total of 5,000,000 49,626 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 3,134,129 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 19,569,247 16,087,951 1,150,000 5.75 6,612,500 2,000,000 7.25 14,500,000 19,238,015

Stock Warrants

Stock Warrants	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Stock Warrants	Note 12 — Stock Warrants December 31, December 31, 2016 2015 Warrants Outstanding, Beginning of Year 535,091 5,236,660 Exercised During the Year (133,232) (4,746,755) Issued During the Year - 60,000 Forfeited During the Year - (14,814) Warrants Outstanding, End of Year 401,859 535,091 The outstanding warrants as of December 31, 2016 expire from November 3, 2017 to August 5, 2018. The weighted average remaining term of the warrants is 1.3 2.41 During the year ended December 31, 2016 a total of 111,232 74,621 22,000 60,750 4,178,267 3,559,783 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 share price volatility. There were no new warrants issued during the year ended December 31, 2016. During the year ended December 31, 2015, 60,000 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, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option Plans	Note 13 — 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 1,956,925 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, 2016 21,977 132,771 929,550 1,084,298 Available for future issuance under plan — — 1,027,375 1,027,375 Totals authorized by plan 21,977 132,771 1,956,925 2,111,673 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 50 100 Weighted Weighted Average Number of Average Remaining Life Options Exercise Price (years) 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 Granted 116,750 6.60 Exercised (10,450) 3.46 Expired or Forfeited (44,791) 3.87 Outstanding at December 31, 2016 1,084,298 $ 4.76 7.57 As of December 31, 2016, there were 613,665 4.83 7.0 The unvested balance of 470,633 4.67 8.4 The aggregate intrinsic value of the options outstanding as of December 31, 2016 was approximately $ 2,776,068 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 share price 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 share price 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, 2016 2015 Assumptions for Black-Scholes: Expected term in years 7.9 6.0 to 7.9 Volatility 103.6% to 109.7% 111.4 to 113.5% Risk-free interest rate 1.27% to 1.68% 1.74% to 2.02% Expected annual dividends None None Value of options granted: Number of options granted 116,750 374,000 Weighted average fair value per share $ 5.73 $ 4.50 Fair value of options granted $ 669,435 $ 1,684,179 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 $ 2,080,180 2.4 2,186,000 598,101

Commitments

Commitments	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Commitments	Note 14 — 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, that expires on October 3, 2020. The base rent contractual payment obligations under this operating lease will be $335,248 per year. The lease has an original five year term with an option by the Company to renew for two additional three year terms at pre-agreed to lease rates. The Company also leases small office spaces in England under a two year lease and under a one year lease arrangements in Japan. Future minimum payments required under operating lease obligations as of December 31, 2016 are as follows: Total Year Ending Lease 2017 $ 369,352 2018 339,910 2019 335,248 2020 307,311 2021 - Total $ 1,351,821 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, 2016 and 2015 totaled $482,147 and $186,471, respectively.

Employee Benefit Plans

Employee Benefit Plans	12 Months Ended
	Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]
Employee Benefit Plans	Note 15 — 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, 2016
Litigation Disclosure [Abstract]
Litigation	Note 16 — Litigation The Company is currently not involved in any actual or pending legal proceeding or litigation.

Concentrations

Concentrations	12 Months Ended
	Dec. 31, 2016
Risks and Uncertainties [Abstract]
Concentrations	Note 17 — Concentrations For 2016 and 2015, sales to the U.S. government accounted for approximately 0 4 10 18

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 18 — Related Party Transactions The Company has accrued compensation 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 8 648,720 358,719 141,645 97,801 43,844 35,722 During the year ended December 31, 2016, $ 54,023 3 22 2,998 481,920 18 290,750

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 19 — Subsequent Events Recent Warrant Exercises Since January 1, 2017, the Company has received cashless exercises of 123,528 81,431 Recent Option Exercises: Since January 1, 2017, the Company has received cashless exercises of 35,000 23,571 Recent Note Conversions Since January 1, 2017, $ 1,043,750 463,890 153,571 68,262 372,730 165,658

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
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 wearable display devices, that are generally worn like eyeglasses, and are also referred to as head mounted displays (or HMDs), in the form of Augmented Reality (AR) glasses, Virtual Reality (VR) glasses and Smart Glasses, that are generally worn like eyeglasses. We now produce and sell two main types of wearable display products: Smart Glasses for a variety of enterprise and commercial users and applications, including AR; and Video Viewing glasses (for on-the-go users as mobile displays for entertainment, gaming as well as support for stepping into virtual worlds, simulations & VR gaming). Our products provide the user with a virtual viewing experience that emulates viewing a large screen television or desktop computer monitor practically anywhere, anytime.
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Vuzix Europe. All significant inter-company transactions have been eliminated. Certain prior year amounts have been reclassified to be consistent with current year presentation.
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 57 32 10 10 18 89
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, 2016 and 2015 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. The 5 3,700,000
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, 2016 and 2015. The Company does not accrue interest on a past due accounts receivable unless it goes into collection.
Inventories	Inventories Inventories are valued at the lower of cost or net realizable value 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	The Company recognizes revenue from product sales in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“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 consist of more than one element, the product 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 with this 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	Unearned Revenue These amounts represent deferred revenue against unfulfilled deliverables of multiple-element products, including unspecified post-delivery support and software updates.
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 software development effort 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 2016, an impairment charge of $ 20,506 13,222
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	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, based on historical experience of warranty claims and costs.
Customer Deposits	Customer Deposits Customer deposits represent money the Company has 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, 2016 and 2015 amounted to $ 1,279,998 432,325
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 income (loss) 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 result of the net losses generated in 2016 and 2015, all outstanding instruments would be antidilutive. As of December 31, 2016 and 2015, there were 7,227,738 7,475,623
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 estimates of forfeitures, option lives, and stock price volatility, 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 ended December 31, 2016 and 2015 was $ 756,928 568,848
Derivative Liability and Fair Value Measurements	Derivative Liability and Fair Value Measurements FASB ASC Topic 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. In accordance with ASC 815-10-25 Derivatives and Hedging 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, 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 In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update ASU 2016-02 Leases In March 2016, the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In April 2016, the FASB issued ASU No. 2016-10 Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing In May 2016, the FASB issued ASU No. 2016-12 Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients Recently Adopted Accounting Pronouncements In August 2014, the FASB issued ASU 2014-15 Presentation of Financial Statements – Going Concern In July 2015, the FASB issued ASU 2015-11 Inventory – Simplifying the Measurement of Inventory There are no other recent accounting pronouncements that are expected to have a material impact on the consolidated financial statements.

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
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 Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 years Tooling 3 years Furniture and Equipment 5 years

Inventories, Net (Tables)

Inventories, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories consisted of the following: December 31, December, 31, 2016 2015 Purchased Parts and Components $ 1,990,026 $ 3,069,261 Work in Process 454,120 154,880 Finished Goods 831,069 612,451 Less: Reserve for Obsolescence (623,997) (487,494) Net $ 2,651,218 $ 3,349,098

Fixed Assets, Net (Tables)

Fixed Assets, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Property, Plant and Equipment, Net [Abstract]
Fixed Assets, Net	Fixed Assets consisted of the following: December 31, December 31, Tooling and Manufacturing Equipment $ 2,702,468 $ 1,082,845 Leaseholds 403,737 365,766 Computers and Software 585,795 519,226 Furniture and Equipment 1,359,522 1,089,718 5,051,522 3,057,555 Less: Accumulated Depreciation (1,686,614) (1,042,122) Fixed Assets, Net $ 3,364,908 $ 2,015,433

Patents and Trademarks, Net (Ta

Patents and Trademarks, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	December 31, December 31, 2016 2015 Patents and Trademarks $ 970,178 $ 867,545 Less: Accumulated Amortization (434,717) (351,848) Patents and Trademarks, Net $ 535,461 $ 515,697

Software Development Costs, N31

Software Development Costs, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Research and Development [Abstract]
Schedule Of Software Development Costs	December 31, December 31, 2016 2015 Software Development Costs $ 859,351 $ 859,351 Less: Accumulated Amortization (644,513) (358,063) Software Development Costs, Net $ 214,838 $ 501,288

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Payables and Accruals [Abstract]
Components of Accrued Expenses	Accrued expenses consisted of the following: December 31, December 31, 2016 2015 Accrued Wages and Related Costs $ 119,472 $ 102,792 Accrued Compensation 648,720 358,719 Accrued Professional Services 137,099 89,000 Accrued Warranty Obligations 41,132 64,002 Accrued Interest 375,560 109,984 Other Accrued Expenses 10,000 10,000 Total $ 1,331,983 $ 734,497
Changes in Accrued Warranty Obligations	The changes in the Company’s accrued warranty obligations for the years ended December 31, 2016 and 2015 were as follows: 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 Reductions for Settling Warranties (103,265) Warranty Issued During Year 80,395 Accrued Warranty Obligations at December 31, 2016 $ 41,132

Derivative Liability and Fair33

Derivative Liability and Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis	2016: Total Level 1 Level 2 Level 3 Warrant Liability $ 173,131 $ — $ — $ 173,131 Total liabilities measured at fair value (Long-Term) $ 173,131 $ — $ — $ 173,131 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
Schedule of Fair Value Level 3 warrant liabilities	Changes in the fair value of the warrant liability were as follows: Fair value – December 31, 2014 $ 13,541,138 Reclassification of warrant exercises to Additional Paid-in Capital (2,855,463) Change in fair value for the period of warrant derivative liability 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 Reclassification of warrant exercises to Additional Paid-in Capital (32,911) Change in fair value for the period of warrant derivative liability (34,744) Fair value – December 31, 2016 $ 173,131
Schedule Of Fair Value Of Warrants	December 31, December 31, 2016 2015 Assumptions for Pricing Model: Expected term in years 1.22 2.60 Volatility range for years 100 % 103 % Risk-free interest rate 1.47 % 1.06 % Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 173,131 $ 240,786

Long-Term Debt (Tables)

Long-Term Debt (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Disclosure [Abstract]
Components of Long-Term Debt	Long-term debt consisted of the following: December 31, December 31, 2016 2015 Note payable for research and development equipment. The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2012 over 48 months. The note carries a 0% interest rate. The note was repaid in full during 2016. $ — $ 59,917 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) 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. This note was repaid in full during 2016. — 16,958 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% annual interest rate, payable upon the note’s maturity. Both the interest plus accrued interest is convertible into shares of the Company’s common stock 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. 1,591,740 1,915,155 Convertible, Senior Secured Notes Debt Issuance Costs of $139,340, net of accumulated amortization. The estimated aggregate annual amortization expense is approximately $20,000 in 2017. (19,500) (66,074) 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. (155,760) (621,531) $ 1,416,480 $ 1,283,340 Less: Amount Due Within One Year (1,416,480) (55,790) Amount Due After One Year $ — $ 1,227,550
Aggregate maturities for all long-term borrowings	The calendar year aggregate maturities for all borrowings exclusive of discounts as of December 31, 2016 are as follows: Total Aggregate Maturity For Period Amounts 2017 $ 1,591,740 Total Unamortized Debt Discounts and Deferred Costs (175,260) Total Borrowings as of December 31, 2016 $ 1,416,480

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Tax Disclosure [Abstract]
Schedule Of Pre Tax Earnings	December 31, December 31, 2016 2015 Pre-Tax (Loss) Earnings U.S. $ (18,262,129) $ (13,425,887) Outside the U.S. (987,953) (1,591) Total Pre-Tax (Loss) Earnings $ (19,250,082) $ (13,427,478)
Schedule of Components of Income Tax Expense (Benefit)	The provision (benefit) for income taxes for the years ended December 31, 2016 and 2015 was as follows: 2016 2015 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, 2016 and 2015 is as follows: 2016 2015 Federal Income Tax at Statutory Rate 34.0 34.0 State Tax Provision, Net of Federal Benefit 0.3 0.3 Foreign Income Taxed at Other Than 34% (0.7) (0.0) Loss on Derivative Valuation 0.0 (6.3) Other 0.5 0.7 Effective Tax Rate 34.1 28.7 Change in Valuation Allowance (34.1) (28.7) Net Effective Tax Rate 0.0 0.0
Schedule of Deferred Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets and liabilities at year end are as follows: December 31, December 31, Deferred Tax Assets Net Operating Loss Carry-forwards $ 19,752,311 $ 15,027,603 Tax Credit Carry-forwards 2,398,817 1,823,661 Inventory Valuation Adjustment 622,168 161,944 Officer’s Compensation 271,095 141,491 Loss from Foreign Operations 197,907 Other 44,372 89,783 Total Deferred Tax Assets 23,286,670 17,244,482 Deferred Tax Liabilities Other 76,815 271,565 Net Deferred Tax Assets Before Valuation Allowance $ 23,209,855 $ 16,972,917 Valuation Allowance (23,209,855) (16,972,917) Net Deferred Tax Assets $ — $ —

Stock Warrants (Tables)

Stock Warrants (Tables)	12 Months Ended
	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Changes in Warrants	The following table shows the various changes in warrants for the years ended: December 31, December 31, 2016 2015 Warrants Outstanding, Beginning of Year 535,091 5,236,660 Exercised During the Year (133,232) (4,746,755) Issued During the Year - 60,000 Forfeited During the Year - (14,814) Warrants Outstanding, End of Year 401,859 535,091
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, 2016
Stock Option Plans [Abstract]
Stock option plans	Options outstanding under the Stock Options Plans are as follows: 2007 2009 2014 Plan Plan Plan Total Outstanding as of December 31, 2016 21,977 132,771 929,550 1,084,298 Available for future issuance under plan — — 1,027,375 1,027,375 Totals authorized by plan 21,977 132,771 1,956,925 2,111,673
Summary of Stock Option Activity	Weighted Weighted Average Number of Average Remaining Life Options Exercise Price (years) 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 Granted 116,750 6.60 Exercised (10,450) 3.46 Expired or Forfeited (44,791) 3.87 Outstanding at December 31, 2016 1,084,298 $ 4.76 7.57
Summary of assumptions used to compute the fair value of stock options granted	The following summary table shows the assumptions used to compute the fair value of stock options granted during 2016 and 2015 and their estimated value: December 31, 2016 2015 Assumptions for Black-Scholes: Expected term in years 7.9 6.0 to 7.9 Volatility 103.6% to 109.7% 111.4 to 113.5% Risk-free interest rate 1.27% to 1.68% 1.74% to 2.02% Expected annual dividends None None Value of options granted: Number of options granted 116,750 374,000 Weighted average fair value per share $ 5.73 $ 4.50 Fair value of options granted $ 669,435 $ 1,684,179

Commitments (Tables)

Commitments (Tables)	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
Contractual Payment Obligations for Operating Leases	Total Minimum Year Ending Lease Dec 31, Payments 2017 $ 369,352 2018 339,910 2019 335,248 2020 307,311 2021 - Total $ 1,351,821

Summary of Significant Accoun39

Summary of Significant Accounting Policies (Property Plant And Equipment Useful Life) (Detail)	12 Months Ended
	Dec. 31, 2016
Computers and Software
Property, Plant and Equipment, Useful Life	3 years
Leasehold Improvements
Property, Plant and Equipment, Estimated Useful Lives	Lesser of expected life or lease term
Manufacturing Equipment
Property, Plant and Equipment, Useful Life	5 years
Tooling
Property, Plant and Equipment, Useful Life	3 years
Furniture and Equipment
Property, Plant and Equipment, Useful Life	5 years

Summary of Significant Accoun40

Summary of Significant Accounting Policies (Additional Information) (Detail)	12 Months Ended
	Dec. 31, 2016USD ($)$ / Unit	Dec. 31, 2015USD ($)
Summary Of Significant Accounting Policies [Line Items]
Percentage Of Revenues From External Customers	57.00%	32.00%
Maximum Percentage Of Revenues From Foreign Countries		10.00%
Advertising Expense	$ 1,279,998	$ 432,325
Stock Options	756,928	568,848
Asset Impairment Charges	$ 20,506	$ 13,222
Earnings Per Share, Potentially Dilutive Securities	7,227,738	7,475,623
Debt Conversion, Converted Instrument, Amount	$ 342,036	$ 472,500
Convertible Senior Secured Notes [] [Member]
Summary Of Significant Accounting Policies [Line Items]
Debt Instrument, Interest Rate, Stated Percentage	5.00%
Debt Conversion, Converted Instrument, Amount	$ 3,700,000
Sales Revenue Net
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage	10.00%	18.00%
Accounts Receivable
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage		89.00%
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

Going Concern Issues (Additiona

Going Concern Issues (Additional Information) (Detail) - USD ($)	Dec. 02, 2016	Jul. 11, 2016	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Commercial Loans [Line Items]
Net Income (Loss) Attributable To Parent			$ (19,250,082)	$ (13,427,478)
Retained Earnings Accumulated Deficit			(76,838,950)	$ (57,588,868)	$ 76,838,950
Stock Issued During Period, Shares, New Issues	2,000,000	1,150,000
Shares Issued, Price Per Share	$ 7.25	$ 5.75
Stock Issued During Period, Value, New Issues	$ 14,500,000	$ 6,612,500	21,112,500
Proceeds from Issuance Initial Public Offering			$ 19,238,015
M300 Smart Glasses [Member]
Commercial Loans [Line Items]
Revenues		$ 1,145,000
IPO [Member]
Commercial Loans [Line Items]
Stock Issued During Period, Shares, New Issues	2,000,000	1,150,000
Shares Issued, Price Per Share	$ 7.25	$ 5.75
Stock Issued During Period, Value, New Issues	$ 14,500,000	$ 6,612,500
Proceeds from Issuance Initial Public Offering	$ 19,238,015

Inventories Net (Components of

Inventories Net (Components of Inventories) (Detail) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Inventory Disclosure [Line Items]
Purchased Parts and Components	$ 1,990,026	$ 3,069,261
Work in Process	454,120	154,880
Finished Goods	831,069	612,451
Less: Reserve for Obsolescence	(623,997)	(487,494)
Net	$ 2,651,218	$ 3,349,098

Inventories, Net (Additional In

Inventories, Net (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Inventory Write-down	$ 1,124,401	$ 0

Fixed Assets, Net (Schedule Of

Fixed Assets, Net (Schedule Of Fixed Assets) (Detail) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 5,051,522	$ 3,057,555
Less: Accumulated Depreciation	(1,686,614)	(1,042,122)
Fixed Assets, Net	3,364,908	2,015,433
Tooling and Manufacturing Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	2,702,468	1,082,845
Leaseholds
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	403,737	365,766
Computers and Software
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	585,795	519,226
Funiture and Equipment
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	$ 1,359,522	$ 1,089,718

Fixed Assets, Net (Additional I

Fixed Assets, Net (Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Tooling and Equipment
Property, Plant and Equipment [Line Items]
Depreciation and Amortization	$ 663,934	$ 294,363

Patents and Trademarks, Net (Sc

Patents and Trademarks, Net (Schedule Of Patents and Trademarks) (Detail) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Patents and Trademarks	$ 970,178	$ 867,545
Less: Accumulated Amortization	(434,717)	(351,848)
Patents and Trademarks, Net	$ 535,461	$ 515,697

Patents and Trademarks, Net (Ad

Patents and Trademarks, Net (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 106,734	$ 86,478
Impairment of Patents and Trademarks	20,506	13,222
Finite-Lived Intangible Assets, Accumulated Amortization	434,717	351,848
Abandoned Patents and Trademarks
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	65,000
Finite-Lived Intangible Assets, Amortization Expense, Year Two	65,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	65,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	65,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	65,000
Impairment of Patents and Trademarks	20,506	13,222
Representing Cost	44,371	21,954
Finite-Lived Intangible Assets, Accumulated Amortization	$ 23,865	$ 8,732

Software Development Costs, N48

Software Development Costs, Net (Schedule Of Software Development Costs) (Detail) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Software Development Costs	$ 859,351	$ 859,351
Less: Accumulated Amortization	(644,513)	(358,063)
Software Development Costs, Net	$ 214,838	$ 501,288

Software Development Costs, N49

Software Development Costs, Net (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Capitalized Computer Software, Amortization	$ 286,450	$ 286,450
Software and Software Development Costs
Finite-Lived Intangible Assets, Remaining Amortization Period	3 years
Finite-Lived Intangible Assets, Amortization Expense, Year Two	$ 215,000
Capitalized Computer Software, Amortization	$ 286,450	$ 286,450

Accrued Expenses (Components of

Accrued Expenses (Components of Accrued Expenses) (Detail) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accrued Liabilities [Line Items]
Accrued Wages and Related Costs	$ 119,472	$ 102,792
Accrued Compensation	648,720	358,719
Accrued Professional Services	137,099	89,000
Accrued Warranty Obligations	41,132	64,002
Accrued Interest	375,560	109,984
Other Accrued Expenses	10,000	10,000
Total	$ 1,331,983	$ 734,497

Accrued Expenses (Changes in Ac

Accrued Expenses (Changes in Accrued Warranty Obligations) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Class Of Warrant Or Right [Line Items]
Accrued Warranty Obligations	$ 64,002	$ 39,624
Reductions for Settling Warranties	(103,265)	(67,858)
Warranty Issued During Year	80,395	92,236
Accrued Warranty Obligations	$ 41,132	$ 64,002

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Officers Compensation Payable Compounding Monthly Interest Rate	8.00%
Accrued Employee Benefits	$ 358,720	$ 358,719
Interest Payable, Current	141,645	97,801
Accrued Bonuses, Current	$ 290,000	$ 0

Derivative Liability and Fair53

Derivative Liability and Fair Value Measurements (Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant Liability	$ 173,131	$ 240,786
Total liabilities measured at fair value (Long-Term)	173,131	240,786
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
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]
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]
Warrant Liability	173,131	240,786
Total liabilities measured at fair value (Long-Term)	$ 173,131	$ 240,786

Derivative Liability and Fair54

Derivative Liability and Fair Value Measurements (Schedule of Fair Value Level 3 Warrant Liabilities) (Detail) - Warrant Liabilities [Member] - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 240,786	$ 13,541,138
Reclassification of warrant exercises to Additional Paid-in Capital	(32,911)	(2,855,463)
Change in fair value for the period of warrant derivative liability	(34,744)	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	$ 173,131	$ 240,786

Derivative Liability and Fair55

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, 2016	Dec. 31, 2015
Assumptions for Pricing Model:
Expected term in years	1 year 2 months 19 days	2 years 7 months 6 days
Volatility range for years	100.00%	103.00%
Risk-free interest rate	1.47%	1.06%
Expected annual dividends	0.00%	0.00%
Value of warrants outstanding:
Fair value of warrants	$ 173,131	$ 240,786

Derivative Liability and Fair56

Derivative Liability and Fair Value Measurements (Additional Information) (Detail) - USD ($)	Jun. 03, 2014	Dec. 31, 2016	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		38,100	45,100
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, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long term debt	$ 1,416,480	$ 1,283,340
Less: Amount Due Within One Year	(1,416,480)	(55,790)
Amount Due After One Year	0	1,227,550
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	0	(21,085)
Convertible to shares of the Company's common shares at 2.25, subject to adjustment [Member]
Debt Instrument [Line Items]
Long term debt	1,591,740	1,915,155
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 Issuance Expense	(155,760)	(621,531)
Convertible, Senior Secured Notes Issued Debt Issuance Costs [Member]
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense	(19,500)	(66,074)
Notes Payable [Member] | The principal is subject to a fixed semi-annual repayment schedule commencing October 31, 2012 over 48 months [Member]
Debt Instrument [Line Items]
Long term debt	0	59,917
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	$ 0	$ 16,958

Long-Term Debt (Components of58

Long-Term Debt (Components of Long-Term Debt) (Parenthetical) (Detail) - USD ($)	Jun. 03, 2014	Dec. 31, 2016	Dec. 31, 2015
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 Debt Issuance Costs [Member]
Debt Instrument [Line Items]
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months		$ 20,000
Debt Issuance Costs, Net	$ 139,340
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, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
2,017	$ 1,591,740
Total Unamortized Debt Discounts and Deferred Costs	(175,260)
Total Borrowings as of December 31, 2016	$ 1,416,480	$ 1,283,340

Long-Term Debt (Additional Info

Long-Term Debt (Additional Information) (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Jun. 30, 2014	Dec. 31, 2016	Dec. 31, 2015
Line of Credit Facility [Line Items]
Debt Conversion, Converted Instrument, Amount		$ 342,036	$ 472,500
Convertible, Senior Secured Notes Issued Debt Issuance Costs [Member]
Line of Credit Facility [Line Items]
Debt Conversion, Converted Instrument, Amount		$ 18,621	$ 12,655
Conversion of Stock, Shares Issued		8,276
Conversion of Stock, Shares Converted			5,624
June 2014 Notes [Member]
Line of Credit Facility [Line Items]
Extinguishment of Debt, Amount		$ 323,415	$ 459,845
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		143,740	204,376

Income Taxes (Pre-Tax Earnings)

Income Taxes (Pre-Tax Earnings) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Pre-Tax (Loss) Earnings
Total Pre-Tax (Loss) Earnings	$ (19,250,082)	$ (13,427,478)
UNITED STATES
Pre-Tax (Loss) Earnings
Total Pre-Tax (Loss) Earnings	(18,262,129)	(13,425,887)
Outside the U.S. [Member]
Pre-Tax (Loss) Earnings
Total Pre-Tax (Loss) Earnings	$ (987,953)	$ (1,591)

Income Taxes (Provision Benefit

Income Taxes (Provision Benefit For Income Taxes) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
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, 2016	Dec. 31, 2015
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%	0.30%
Foreign Income Taxed at Other Than 34%	(0.70%)	(0.00%)
Loss on Derivative Valuation	0.00%	(6.30%)
Other	0.50%	0.70%
Effective Tax Rate	34.10%	28.70%
Change in Valuation Allowance	(34.10%)	(28.70%)
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, 2016	Dec. 31, 2015
Deferred Tax Assets
Net Operating Loss Carry-forwards	$ 19,752,311	$ 15,027,603
Tax Credit Carry-forwards	2,398,817	1,823,661
Inventory Valuation Adjustment	622,168	161,944
Officer’s Compensation	271,095	141,491
Loss from Foreign Operations	197,907
Other	44,372	89,783
Total Deferred Tax Assets	23,286,670	17,244,482
Deferred Tax Liabilities
Other	76,815	271,565
Net Deferred Tax Assets Before Valuation Allowance	23,209,855	16,972,917
Valuation Allowance	(23,209,855)	(16,972,917)
Net Deferred Tax Assets	$ 0	$ 0

Income Taxes (Additional Inform

Income Taxes (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Taxes Additional Information [Line Items]
Federal and State Net Operating Loss Carryforwards	$ 57,600,000
Deferred Tax Assets, Tax Credit Carryforwards	$ 2,398,817	$ 1,823,661
Effective Income Tax Rate Reconciliation, Change In Deferred Tax Assets Valuation Allowance	(34.10%)	(28.70%)

Capital Stock (Additional Infor

Capital Stock (Additional Information) (Detail) - USD ($)	Dec. 02, 2016	Jul. 11, 2016	Jan. 02, 2015	Dec. 31, 2016	Dec. 31, 2015
Preferred Stock Shares Authorized				5,000,000	5,000,000
Stock Issued During Period, Shares, New Issues	2,000,000	1,150,000
Shares Issued, Price Per Share	$ 7.25	$ 5.75
Stock Issued During Period, Value, New Issues	$ 14,500,000	$ 6,612,500		$ 21,112,500
Payments of Stock Issuance Costs				$ 1,874,485
Preferred Stock, Liquidation Preference Per Share				$ 1,000
Preferred Stock Shares Outstanding In Percent liquidation or amendment actions				0.00%
Dividends Payable				$ 3,134,129
Common Stock Shares Authorized				100,000,000	100,000,000
Common Stock Shares Issued				19,569,247	16,087,951
Common Stock, Par Or Stated Value Per Share				$ 0.001	$ 0.001
Preferred Stock Shares Issued				49,626	49,626
Proceeds from Issuance Initial Public Offering				$ 19,238,015
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, 2016	Dec. 31, 2015
Class Of Warrant Or Right [Line Items]
Warrants Outstanding, Beginning of Year	535,091	5,236,660
Exercised During the Year	(133,232)	(4,746,755)
Issued During the Year	0	60,000
Forfeited During the Year	0	(14,814)
Warrants Outstanding, End of Year	401,859	535,091

Stock Warrants (Assumptions Use

Stock Warrants (Assumptions Used To Compute The Fair Value Of Warrants) (Detail)	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) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Class of Warrant or Right [Line Items]
Weighted average term of warrants	1 year 3 months 18 days
Weighted average exercise price of warrants per share	$ 2.41
Class Of Warrant Or Right Issued		60,000
Class Of Warrant Or Right Grants In Period	0	60,000
Class of Warrant or Right, Number of Securities Called by Warrants or Rights		3,559,783
Stock Issued During Period, Shares, Warrant Exercised	74,621
Class Of Warrant Exercised In Cashless Basis		4,178,267
Class Of Warrant Exercised In Cash Basis	111,232
Warrants 1
Class of Warrant or Right [Line Items]
Stock Issued During Period, Shares, Warrant Exercised	60,750
Class Of Warrant Exercised In Cash Basis	22,000

Stock Option Plans (Summary Of

Stock Option Plans (Summary Of Stock Option Plans) (Detail) - shares	Dec. 31, 2016	Dec. 31, 2014
Stock Option Plan [Line Items]
Outstanding as of December 31, 2016	1,084,298
Available for future issuance under plan	1,027,375
Totals authorized by plan	2,111,673
2007 Plan
Stock Option Plan [Line Items]
Outstanding as of December 31, 2016	21,977
Available for future issuance under plan	0
Totals authorized by plan	21,977
2009 Plan
Stock Option Plan [Line Items]
Outstanding as of December 31, 2016	132,771
Available for future issuance under plan	0
Totals authorized by plan	132,771
2014 Plan
Stock Option Plan [Line Items]
Outstanding as of December 31, 2016	929,550
Available for future issuance under plan	1,027,375
Totals authorized by plan	1,956,925	1,000,000

Stock Option Plans (Summary o71

Stock Option Plans (Summary of Stock Option Activity) (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Options outstanding
Outstanding, Beginning Balance
Outstanding, Ending Balance	1,084,298
Employee Stock Option [Member]
Number of Options outstanding
Outstanding, Beginning Balance	1,022,789	720,551
Granted	116,750	374,000
Exercised	(10,450)	(15,833)
Expired or Forfeited	(44,791)	(55,929)
Outstanding, Ending Balance	1,084,298	1,022,789	720,551
Weighted Average Exercise Price
Outstanding, Beginning Balance	$ 4.59	$ 4.46
Granted	6.60	5.67
Exercised	3.46	2.60
Expired or Forfeited	3.87	8.12
Outstanding, Ending Balance	$ 4.76	$ 4.59	$ 4.46
Weighted Average Remaining Life (Years)
Options Outstanding, Weighted Average Remaining Life (Years)	7 years 6 months 25 days	7 years 6 months 22 days	8 years 6 months 22 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, 2016	Dec. 31, 2015
Assumptions for Black-Scholes:
Expected term in years	7 years 10 months 24 days
Expected annual dividends	$ 0	$ 0
Value of options granted:
Number of options granted	116,750	374,000
Weighted average fair value per share	$ 5.73	$ 4.50
Fair value of options issued	$ 669,435	$ 1,684,179
Minimum [Member]
Assumptions for Black-Scholes:
Expected term in years		6 years
Volatility	103.60%	111.40%
Risk-free interest rate	1.27%	1.74%
Maximum [Member]
Assumptions for Black-Scholes:
Expected term in years		7 years 10 months 24 days
Volatility	109.70%	113.50%
Risk-free interest rate	1.68%	2.02%

Stock Option Plans (Additional

Stock Option Plans (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Exercisable Options Outstanding Shares	613,665
Weighted average exercise price per share	$ 4.83
Unvested Options Outstanding, Shares	470,633
Unvested Options Outstanding, Weighted average exercise price	$ 4.67
Unvested Options Outstanding Weighted average remaining life (yrs)	8 years 4 months 24 days
Weighted average remaining contractual term on unvested options	7 years
Unrecognized stock compensation expense	$ 2,080,180	$ 2,186,000
Weighted average recognition period	2 years 4 months 24 days
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized	2,111,673
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	$ 2,776,068
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	1,956,925		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, 2016USD ($)
Future Minimum Payments Required Under Operating Lease [Line Items]
2,017	$ 369,352
2,018	339,910
2,019	335,248
2,020	307,311
2,021	0
Total	$ 1,351,821

Commitments (Additional Informa

Commitments (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Commitment Contingencies Disclosure [Line Items]
Lease Expiration Date	Oct. 3, 2020
Operating Leases, Rent Expense, Minimum Rentals	$ 335,248
Operating Leases, Rent Expense	$ 482,147	$ 186,471
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, 2016
Employee Benefit Plans [Line Items]
Percentage Of Employee Deferrals	100.00%

Concentrations (Additional Info

Concentrations (Additional Information) (Detail) - Sales Revenue, Net [Member]	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Concentrations [Line Items]
Concentration Risk, Percentage	10.00%	18.00%
U.S. government [Member]
Concentrations [Line Items]
Concentration Risk, Percentage	0.00%	4.00%
One Customer [Member]
Concentrations [Line Items]
Concentration Risk, Percentage	10.00%
One United State Customer [Member]
Concentrations [Line Items]
Concentration Risk, Percentage		18.00%

Related Party Transactions (Add

Related Party Transactions (Additional Information) (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Related Party Transactions Additional Information [Line Items]
Related Party Transaction, Rate	8.00%
Due to Officers or Stockholders	$ 648,720	$ 358,719
Interest Expense, Related Party	$ 141,645	$ 97,801
Sales Revenue, Net [Member]
Related Party Transactions Additional Information [Line Items]
Concentration Risk, Percentage	10.00%	18.00%
Officer [Member]
Related Party Transactions Additional Information [Line Items]
Interest Expense, Debt	$ 43,844	$ 35,722
Major Stockholder [Member]
Related Party Transactions Additional Information [Line Items]
Accounts Receivable, Related Parties, Current	2,998	290,750
Revenues	$ 54,023	$ 481,920
Percentage Of Preferred Stock Shares Converted In To Common Stock	22.00%
Major Stockholder [Member] | Sales Revenue, Net [Member]
Related Party Transactions Additional Information [Line Items]
Concentration Risk, Percentage	3.00%	18.00%

Subsequent Events(Additional In

Subsequent Events(Additional Information) (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Jan. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		$ 342,036	$ 472,500
Subsequent Event [Member] | Equity Option [Member]
Subsequent Event [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period	35,000
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	23,571
Subsequent Event [Member] | Warrant [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised	123,528
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	81,431
Subsequent Event [Member] | Long-Term Convertible Notes [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 1,043,750
Debt Conversion, Converted Instrument, Shares Issued	463,890
Subsequent Event [Member] | Interest Payable [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 153,571
Debt Conversion, Converted Instrument, Shares Issued	68,262
Subsequent Event [Member] | Short-Term Convertible Notes [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 372,730
Debt Conversion, Converted Instrument, Shares Issued	165,658