Vuzix (VUZI) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 10, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	Vuzix Corp
Entity Central Index Key	1,463,972
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Trading Symbol	VUZI
Entity Common Stock, Shares Outstanding		20,408,926

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current Assets
Cash and Cash Equivalents	$ 10,395,656	$ 14,533,944
Accounts Receivable	320,575	103,314
Inventories, Net	2,720,832	2,651,218
Manufacturing Vendor Prepayments	212,279	144,168
Prepaid Expenses and Other Assets	550,722	797,409
Total Current Assets	14,200,064	18,230,053
Long-Term Assets
Fixed Assets, Net	3,413,262	3,364,908
Patents and Trademarks, Net	552,366	535,461
Software Development Costs, Net	143,225	214,838
Total Assets	18,308,917	22,345,260
Current Liabilities
Accounts Payable	1,003,149	1,085,472
Current Portion of Long-Term Debt, net of discount	518,374	1,416,480
Customer Deposits	108,285	66,162
Unearned Revenue	298,173	509,572
Accrued Expenses	1,245,973	1,331,983
Income and Other Taxes Payable	11,120	12,290
Total Current Liabilities	3,185,074	4,421,959
Long-Term Liabilities
Derivative Liability	150,571	173,131
Accrued Expenses	25,832	28,333
Total Long-Term Liabilities	176,403	201,464
Total Liabilities	3,361,477	4,623,423
Stockholders' Equity
Preferred Stock — $.001 Par Value, 5,000,000 Shares Authorized; 49,626 Shares Issued and Outstanding March 31, 2017, and December 31, 2016	50	50
Common Stock — $.001 Par Value, 100,000,000 Shares Authorized; 20,293,173 Shares Issued and Outstanding March 31, 2017 and 19,569,247 on December 31, 2016	20,293	19,569
Additional Paid-in Capital	95,947,859	94,541,168
Accumulated Deficit	(81,020,762)	(76,838,950)
Total Stockholders' Equity	14,947,440	17,721,837
Total Liabilities and Stockholders' Equity	$ 18,308,917	$ 22,345,260

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
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	20,293,173	19,569,247
Common Stock, Shares Outstanding	20,293,173	19,569,247

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - 3 months ended Mar. 31, 2017 - USD ($)	Total	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit
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
Conversion of Note Payable & Accrued Interest	1,197,341		$ 532	1,196,809
Conversion of Note Payable & Accrued Interest (in shares)			532,152
Exercise of Warrants			$ 168	(168)
Exercise of Warrants (in shares)			168,203
Stock Based Compensation Expense	210,074			210,074
Exercise of Stock Options			$ 24	(24)
Exercise of Stock Options (in shares)			23,571
Net Loss for the Quarter Ended March 31, 2017	(4,181,812)				(4,181,812)
Balance at Mar. 31, 2017	$ 14,947,440	$ 50	$ 20,293	$ 95,947,859	$ (81,020,762)
Balance (in shares) at Mar. 31, 2017		49,626	20,293,173

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Sales of Products	$ 959,383	$ 363,839
Sales of Engineering Services	251,280	0
Total Sales	1,210,663	363,839
Cost of Sales — Products	953,903	602,977
Cost of Sales — Engineering Services	108,000	0
Total Cost of Sales	1,061,903	602,977
Gross Profit (Loss) (exclusive of depreciation shown separately below)	148,760	(239,138)
Operating Expenses:
Research and Development	1,668,956	1,274,713
Selling and Marketing	1,030,999	1,126,499
General and Administrative	1,235,183	886,315
Depreciation and Amortization	239,830	169,188
Total Operating Expenses	4,174,968	3,456,715
Loss from Operations	(4,026,208)	(3,695,853)
Other Income (Expense)
Other Taxes	(10,550)	(20,721)
Investment Income	17,900	9,455
Foreign Exchange Gain (Loss)	1,097	(3,949)
Amortization of Deferred Financing Costs	(11,453)	(11,581)
Gain (Loss) on Derivative Valuation	22,560	101,666
Amortization of Senior Term Debt Discount and Issuance Expenses	(134,192)	(121,206)
Interest Expense, net of Interest Income	(40,966)	(33,550)
Total Other Income (Expense)	(155,604)	(79,886)
Loss Before Provision for Income Taxes	(4,181,812)	(3,775,739)
Provision for Income Taxes	0	0
Net Loss	(4,181,812)	(3,775,739)
Preferred Stock Dividends	(413,464)	(393,824)
Earnings Available to Common Stockholders	$ (4,595,276)	$ (4,169,563)
Basic and Diluted Loss Per Share	$ (0.23)	$ (0.26)
Weighted-average Shares Outstanding - Basic and Diluted	19,714,396	16,102,374

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash Flows from Operating Activities
Net Loss	$ (4,181,812)	$ (3,775,739)
Non-Cash Adjustments
Depreciation and Amortization	239,830	169,188
Amortization of Software Development Costs in cost of sales products	71,613	71,612
Stock Based Option Compensation Expense	210,074	173,816
Amortization of Term Debt Discount	134,192	121,206
Amortization of Debt Issuance Costs	11,453	11,581
Common Stock and Warrants Issued for Services	0	38,925
(Gain) Loss on Derivative Valuation	(22,560)	(101,666)
(Increase) Decrease in Operating Assets
Accounts Receivable	(217,261)	269,233
Inventories	(69,614)	(57,026)
Vendor Prepayments	(68,111)	33,337
Prepaid Expenses and Other Assets	246,687	169,204
Increase (Decrease) in Operating Liabilities
Accounts Payable	(82,323)	(469,658)
Accrued Expense	49,262	32,119
Customer Deposits	42,123	24,530
Unearned Revenue	(211,399)	44,994
Income and Other Taxes Payable	(1,169)	8,122
Accrued Compensation	(25,110)	0
Accrued Interest	40,926	23,647
Net Cash Flows Used in Operating Activities	(3,833,199)	(3,212,575)
Cash Flows from Investing Activities
Purchases of Fixed Assets	(262,774)	(411,440)
Investments in Patents and Trademarks	(42,315)	(30,709)
Net Cash Used in Investing Activities	(305,089)	(442,149)
Cash Flows from Financing Activities
Repayment of Long-Term Debt and Notes Payable	0	(8,479)
Net Cash Flows Used by Financing Activities	0	(8,479)
Net Decrease in Cash and Cash Equivalents	(4,138,288)	(3,663,203)
Cash and Cash Equivalents — Beginning of Period	14,533,944	11,877,058
Cash and Cash Equivalents — End of Period	10,395,656	8,213,855
Supplemental Disclosures
Interest Paid in Cash	10,690	7,431
Conversion of Long-Term Debt and Accrued Interest	1,197,341	22,500
Receivable from Stock Option Exercise	$ 14,820	$ 0

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Basis of Presentation	The accompanying unaudited Condensed Consolidated Financial Statements of Vuzix Corporation and Subsidiaries (“the Company") have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Regulation S-X of the Securities and Exchange Commission. Accordingly, the unaudited Condensed Consolidated Financial Statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments considered necessary for a fair presentation have been included. The condensed consolidated balance sheet as of December 31, 2016 was derived from the audited Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K (the “Annual Report”). The accompanying Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of the Company as of December 31, 2016, as reported in the Company’s Annual Report. The results of the Company’s operations for any interim period are not necessarily indicative of the results of the Company’s operations for any other interim period or for a full fiscal year. In the first quarter of 2017, Toshiba Japan represented 20 0 75 0 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 a net loss for the first three months of 2017 of $ 4,181,812 19,250,082 13,427,478 81,020,762 The Company’s cash requirements are primarily for funding operating losses, research, capital expenditures and working capital. Historically, the Company has met these cash needs by borrowings under notes, sales of convertible debt, and the sales of equity. In 2016, we received total net proceeds from public equity offerings of $ 19,238,015 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. In order for us to achieve positive cash flow from operations, our product sales will need to significantly increase. 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 full volume manufacturing of the new M300 Smart Glasses this spring, along with expected margin improvements from higher production volumes and assembly off shore; ⋅ the recent award of a Smart Glasses development program with Toshiba, which we expect to be completed by September 2017 and represents a further $ 905,000 ⋅ 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 ⋅ delay some planned new products based on new technology; and ⋅ the Company has $ 547,990 2.25 June 3, 2017 However, if these actions 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.

Loss Per Share

Loss Per Share	3 Months Ended
	Mar. 31, 2017
Earnings (Loss) Per Share
Loss Per Share	Note 2 – Loss Per Share Basic loss per share is computed by dividing the loss attributable to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution from the assumed exercise of stock options and warrants, and the conversion of any convertible debt and convertible preferred shares. During periods of net loss, all common stock equivalents are excluded from the diluted EPS calculation because they are antidilutive. Since the Company reported a net loss for the three months ended March 31, 2017 and 2016, the calculation for basic and diluted earnings per share is considered to be the same, as the impact of potential common shares is anti-dilutive. As of March 31, 2017 and December 31, 2016, there were 6,446,784 7,227,738

Inventories, Net

Inventories, Net	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Inventories	Note 3 — Inventories, Net March 31, 2017 December 31, 2016 Purchased Parts and Components $ 1,998,111 $ 1,990,026 Work in Process 364,329 454,120 Finished Goods 938,520 831,069 Less: Reserve for Obsolescence (580,128) (623,997) Net $ 2,720,832 $ 2,651,218

Accrued Expenses

Accrued Expenses	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Accrued Expenses	Note 4 — Accrued Expenses March 31, 2017 December 31, 2016 Accrued Wages and Related Costs $ 136,988 $ 119,472 Accrued Compensation 623,609 648,720 Accrued Professional Services 157,885 137,099 Accrued Warranty Obligations 54,592 41,132 Accrued Interest 262,899 375,560 Other Accrued Expenses 10,000 10,000 Total $ 1,245,973 $ 1,331,983 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 8 333,609 358,720 156,914 141,645 290,000 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, 2016 $ 41,132 Reductions for Settling Warranties (24,188) Warranties Issued During Period 37,648 Accrued Warranty Obligations at March 31, 2017 $ 54,592

Derivative Liability and Fair V

Derivative Liability and Fair Value Measurements	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Liability and Fair Value Measurements	Note 5 – 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 FASB ASC 815-10-25, we measured the derivative liability using a Monte Carlo Options Lattice pricing model at their issuance date and subsequently remeasured the liability on each reporting date. Accordingly, at the end of each quarterly reporting date, the derivative fair market value is remeasured and adjusted to current market value. As at March 31, 2017 and December 31, 2016 a total of 38,100 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 closing of the Series A Private Placement on January 2, 2015, each of the holders of notes issued by the Company on June 3, 2014 (the “June 2014 Notes”) agreed to irrevocably waive their rights to anti-dilution protection under Section 5(b) of the June 2014 Notes in the event the Company issues additional securities at a per share price lower than the conversion price of the June 2014 Notes (the “June 2014 Note Waiver”). As a result this derivative liability was reversed to Nil and reclassified into stockholders equity under Additional Paid-In Capital. The Company has adopted FASB ASC Topic 820 for financial instruments measured at fair value on a recurring basis. FASB ASC Topic 820 defines fair value, establishes a framework for measuring fair value in accordance with accounting principles generally accepted in the United States and expands disclosures about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. FASB ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: - Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; - Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and - Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. The carrying amount of cash, accounts receivable, accounts payable, and accrued expenses approximates their fair value due to their short maturity. The carrying amount of notes payable approximates fair value because stated or implied interest rates approximate current interest rates that are available for debt with similar terms. Total Level 1 Level 2 Level 3 Warrant Liability $ 150,571 $ — $ — $ 150,571 Total liabilities measured at fair value (Long-Term) $ 150,571 $ — $ — $ 150,571 We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 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 Fair value – December 31, 2016 $ 173,131 Change in fair value for the period of warrant derivative liability (22,560) Fair value – March 31, 2017 $ 150,571 March 31, December 31, 2017 2016 Assumptions for Pricing Model: Expected term in years 1.35 1.22 Volatility range for years 115 % 100 % Risk-free interest rate 1.03 % 1.47 % Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 150,571 $ 173,131

Long-Term Debt

Long-Term Debt	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Note 6 — Long-Term Debt March 31, December 31, 2017 2016 Convertible, Senior Secured Notes payable. The principal is due June 3, 2017 and no payments are required prior to maturity. The notes carry a 5% interest rate, payable upon the notes’ maturity. Both the principal 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. 547,990 1,591,740 Convertible, Senior Secured Notes Debt Issuance Costs of $139,340, net of accumulated amortization. The estimated aggregate annual amortization expense is approximately $8,000 in 2017. (8,048) (19,500) 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. (21,568) (155,760) $ 518,374 $ 1,416,480 Less: Amount Due Within One Year (518,374) (1,416,480) Amount Due After One Year $ — $ — Total Aggregate Maturity For Period Amounts 2017 (3 months) 547,990 Total Unamortized Debt Discounts and Deferred Costs (29,616) Total Borrowings as of March 31, 2017 $ 518,374 Of the Convertible Senior Secured Notes, $ 1,043,750 463,889 153,591 68,263

Income Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Note 7 — Income Taxes The Company’s effective income tax rate is a combination of federal, state and foreign tax rates and differs from the U.S. statutory rate due to taxes on foreign income, permanent differences including tax-exempt interest, and the resolution of tax uncertainties, offset by a valuation allowance against U.S. deferred income tax assets.

Capital Stock

Capital Stock	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Capital Stock	Note 8 — Capital Stock Preferred stock The Company may issue shares of undesignated preferred stock in one or more series. The Board of Directors is authorized to establish and designate the different series and to fix and determine their voting powers and other special rights and qualifications. A total of 5,000,000 49,626 49,626 On January 2, 2015 the Company closed a sale of Series A Preferred Stock to Intel Corporation (the “Series A Purchaser”), pursuant to which we issued and sold 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 holder, 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. Each share of Series A Preferred Stock is entitled to receive dividends at a rate of 6 3,547,594 3,134,129 The Series A Purchaser has the right, but not the obligation, to participate in any proposed issuance by the Company of its securities, subject to certain exceptions and 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. The Company’s registration statement covering these shares 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 20,293,173 19,569,247

Stock Warrants

Stock Warrants	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Stock Warrants	Note 9 — Stock Warrants Number of Shares Warrants Outstanding at December 31, 2016 401,859 Exercised During the Period (250,009) Issued During the Period — Expired During the Period — Warrants Outstanding, March 31, 2017 151,850 The outstanding warrants as of March 31, 2017 expire from November 3, 2017 to August 5, 2018. The weighted average remaining term of the warrants is 1.2 2.66

Stock Option Plans

Stock Option Plans	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Option Plans	Note 10 — Stock Option Plans Weighted Average Number of Exercise Shares Price Outstanding at December 31, 2016 1,084,298 $ 4.76 Granted — — Exercised (35,000) 2.40 Expired or Forfeited (7,619) 17.50 Outstanding at March 31, 2017 1,041,679 $ 4.75 The weighted average remaining contractual term for all options as of March 31, 2017 and December 31, 2016 was 7.4 7.6 As of March 31, 2017, there were 624,032 4.75 6.9 As of March 31, 2017, there were 417,647 4.73 8.2 No cash was received from option exercises for the three months ended March 31, 2017. The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At March 31, 2017, the Company had approximately $ 1,870,106 2.4

Litigation

Litigation	3 Months Ended
	Mar. 31, 2017
Litigation Disclosure [Abstract]
Litigation	Note 11 — Litigation We are not currently involved in any pending legal proceeding or litigation

Contractual Obligations

Contractual Obligations	3 Months Ended
	Mar. 31, 2017
Contractual Obligations [Abstract]
Contractual Obligations	Note 12 — Contractual Obligations The Company has signed several lease agreements, with the largest being for its new office and manufacturing space under an operating lease that commenced October 3, 2015 October 3, 2020 Total Minimum Lease Payments 2017 (9 months remaining) 276,503 2018 339,910 2019 335,248 2020 307,311 2021 - Total $ 1,258,972 Under 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 three months ended March 31, 2017 and 2016 totaled $ 110,369 123,814

Recent Accounting Pronouncement

Recent Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 13 — Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09 (ASU 2014-09) Revenue from Contracts with Customers In February 2016, the FASB issued Accounting Standards Update ASU 2016-02 Leases 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 March 2016, the FASB issued ASU No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In November 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 14 — Subsequent Events Recent Option Exercises: Since March 31, 2017, the Company has issued 211 shares of common stock upon the cashless exercise of 375 stock options. Recent Note Conversions Since March 31 2017, $225,000 in long-term convertible notes have been converted to 100,000 shares of common stock, and $34,972 in accrued interest have been converted to 15,543 shares of common stock. Recent Stock Awards: Since March 31, 2017, the Company has awarded 100,000 common shares, subject to vesting to its new COO and 16,543 common shares were awarded an IR firm as part of their annual retainer for services covering April 2017 to March 2018.

Inventories, Net (Tables)

Inventories, Net (Tables)	3 Months Ended
	Mar. 31, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are stated at the lower of cost and net realizable value and consisted of the following: March 31, 2017 December 31, 2016 Purchased Parts and Components $ 1,998,111 $ 1,990,026 Work in Process 364,329 454,120 Finished Goods 938,520 831,069 Less: Reserve for Obsolescence (580,128) (623,997) Net $ 2,720,832 $ 2,651,218

Accrued Expenses (Tables)

Accrued Expenses (Tables)	3 Months Ended
	Mar. 31, 2017
Payables and Accruals [Abstract]
Components of Accrued Expenses	Accrued expenses consisted of the following: March 31, 2017 December 31, 2016 Accrued Wages and Related Costs $ 136,988 $ 119,472 Accrued Compensation 623,609 648,720 Accrued Professional Services 157,885 137,099 Accrued Warranty Obligations 54,592 41,132 Accrued Interest 262,899 375,560 Other Accrued Expenses 10,000 10,000 Total $ 1,245,973 $ 1,331,983
Changes in Accrued Warranty Obligations	The changes in the Company’s accrued warranty obligations for the quarter ended March 31, 2017 and December 31, 2016 were as follows: Accrued Warranty Obligations at December 31, 2016 $ 41,132 Reductions for Settling Warranties (24,188) Warranties Issued During Period 37,648 Accrued Warranty Obligations at March 31, 2017 $ 54,592

Derivative Liability and Fair23

Derivative Liability and Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis	We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows at March 31, 2017: Total Level 1 Level 2 Level 3 Warrant Liability $ 150,571 $ — $ — $ 150,571 Total liabilities measured at fair value (Long-Term) $ 150,571 $ — $ — $ 150,571 We measure certain financial instruments at fair value on a recurring basis. Assets and liabilities measured at fair value on a recurring basis are as follows at December 31, 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
Schedule of Fair Value Level 3 warrant liabilities	Fair value – December 31, 2016 $ 173,131 Change in fair value for the period of warrant derivative liability (22,560) Fair value – March 31, 2017 $ 150,571
Schedule Of Fair Value Of Warrants	The Monte Carlo Options Lattice pricing model was used to estimate the fair value of the warrants outstanding: March 31, December 31, 2017 2016 Assumptions for Pricing Model: Expected term in years 1.35 1.22 Volatility range for years 115 % 100 % Risk-free interest rate 1.03 % 1.47 % Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 150,571 $ 173,131

Long-Term Debt (Tables)

Long-Term Debt (Tables)	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Components of Long-Term Debt	Long-term debt consisted of the following: March 31, December 31, 2017 2016 Convertible, Senior Secured Notes payable. The principal is due June 3, 2017 and no payments are required prior to maturity. The notes carry a 5% interest rate, payable upon the notes’ maturity. Both the principal 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. 547,990 1,591,740 Convertible, Senior Secured Notes Debt Issuance Costs of $139,340, net of accumulated amortization. The estimated aggregate annual amortization expense is approximately $8,000 in 2017. (8,048) (19,500) 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. (21,568) (155,760) $ 518,374 $ 1,416,480 Less: Amount Due Within One Year (518,374) (1,416,480) Amount Due After One Year $ — $ —
Aggregate maturities for all long-term borrowings	The calendar year aggregate maturities for all borrowings exclusive of discounts as of March 31, 2017 are as follows: Total Aggregate Maturity For Period Amounts 2017 (3 months) 547,990 Total Unamortized Debt Discounts and Deferred Costs (29,616) Total Borrowings as of March 31, 2017 $ 518,374

Stock Warrants (Tables)

Stock Warrants (Tables)	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Note [Abstract]
Changes in Warrants	A summary of the various changes in warrants during the three month period ended March 31, 2017 is as follows. Number of Shares Warrants Outstanding at December 31, 2016 401,859 Exercised During the Period (250,009) Issued During the Period — Expired During the Period — Warrants Outstanding, March 31, 2017 151,850

Stock Option Plans (Tables)

Stock Option Plans (Tables)	3 Months Ended
	Mar. 31, 2017
Stock Option Plans [Abstract]
Stock option plans	A summary of stock option activity for the three months ended March 31, 2017 is as follows: Weighted Average Number of Exercise Shares Price Outstanding at December 31, 2016 1,084,298 $ 4.76 Granted — — Exercised (35,000) 2.40 Expired or Forfeited (7,619) 17.50 Outstanding at March 31, 2017 1,041,679 $ 4.75

Contractual Obligations (Tables

Contractual Obligations (Tables)	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Contractual Payment Obligations for Operating Leases	Future minimum payments required under operating lease obligations as of March 31, 2017 are as follows: Total Minimum Lease Payments 2017 (9 months remaining) 276,503 2018 339,910 2019 335,248 2020 307,311 2021 - Total $ 1,258,972

Basis of Presentation (Addition

Basis of Presentation (Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended	12 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Basis Of Presentation [Line Items]
Net Income (Loss) Attributable To Parent	$ (4,181,812)	$ (3,775,739)		$ 19,250,082	$ 13,427,478
Long-Term Debt	518,374			1,416,480
Retained Earnings Accumulated Deficit	(81,020,762)			(76,838,950)
Proceeds from Issuance Initial Public Offering				19,238,015
Sales Revenue Net	$ 1,210,663	$ 363,839
Scenario, Forecast [Member]
Basis Of Presentation [Line Items]
Sales Revenue Net			$ 905,000
Convertible Debt [Member]
Basis Of Presentation [Line Items]
Long-Term Debt				$ 547,990
Debt Instrument, Convertible, Conversion Price	$ 2.25
Debt Instrument, Maturity Date	Jun. 3, 2017
Toshiba Japan [Member] | Sales Revenue, Net [Member]
Basis Of Presentation [Line Items]
Concentration Risk, Percentage	20.00%	0.00%
Toshiba Japan [Member] | Accounts Receivable [Member]
Basis Of Presentation [Line Items]
Concentration Risk, Percentage	75.00%	0.00%

Loss Per Share (Additional Info

Loss Per Share (Additional Information) (Detail)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Earnings Per Share, Potentially Dilutive Securities	6,446,784	7,227,738

Inventories Net (Components of

Inventories Net (Components of Inventories) (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Inventory Disclosure [Line Items]
Purchased Parts and Components	$ 1,998,111	$ 1,990,026
Work in Process	364,329	454,120
Finished Goods	938,520	831,069
Less: Reserve for Obsolescence	(580,128)	(623,997)
Net	$ 2,720,832	$ 2,651,218

Accrued Expenses (Components of

Accrued Expenses (Components of Accrued Expenses) (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Accrued Liabilities [Line Items]
Accrued Wages and Related Costs	$ 136,988	$ 119,472
Accrued Compensation	623,609	648,720
Accrued Professional Services	157,885	137,099
Accrued Warranty Obligations	54,592	41,132
Accrued Interest	262,899	375,560
Other Accrued Expenses	10,000	10,000
Total	$ 1,245,973	$ 1,331,983

Accrued Expenses (Changes in Ac

Accrued Expenses (Changes in Accrued Warranty Obligations) (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)
Class Of Warrant Or Right [Line Items]
Accrued Warranty Obligations at December 31, 2016	$ 41,132
Reductions for Settling Warranties	(24,188)
Warranty Issued During Year	37,648
Accrued Warranty Obligations at March 31, 2017	$ 54,592

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Officers Compensation Payable Compounding Monthly Interest Rate	8.00%
Accrued Employee Benefits	$ 333,609	$ 358,720
Interest Payable, Current	156,914	141,645
Accrued Bonuses, Current	$ 290,000	$ 290,000

Derivative Liability and Fair34

Derivative Liability and Fair Value Measurements (Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant Liability	$ 150,571	$ 173,131
Total liabilities measured at fair value (Long-Term)	150,571	173,131
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	150,571	173,131
Total liabilities measured at fair value (Long-Term)	$ 150,571	$ 173,131

Derivative Liability and Fair35

Derivative Liability and Fair Value Measurements (Schedule of Fair Value Level 3 Warrant Liabilities) (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value - December 31, 2016	$ 173,131
Change in fair value for the period of warrant derivative liability	(22,560)
Fair value - March 31, 2017	$ 150,571

Derivative Liability and Fair36

Derivative Liability and Fair Value Measurements (Estimate the fair value of warrants outstanding) (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Assumptions for Pricing Model:
Expected annual dividends	0.00%	0.00%
Monte Carlo Options Lattice Pricing Model Warrants Outstanding
Assumptions for Pricing Model:
Expected term in years	1 year 4 months 6 days	1 year 2 months 19 days
Volatility range for years	115.00%	100.00%
Risk-free interest rate	1.03%	1.47%
Value of warrants outstanding:
Fair value of warrants	$ 150,571	$ 173,131

Derivative Liability and Fair37

Derivative Liability and Fair Value Measurements (Additional Information) (Detail) - USD ($)	Jun. 03, 2014	Mar. 31, 2017	Dec. 31, 2016	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	38,100
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 ($)	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long term debt	$ 518,374	$ 1,416,480
Less: Amount Due Within One Year	(518,374)	(1,416,480)
Amount Due After One Year	0	0
Convertible to shares of the Company's common shares at 2.25, subject to adjustment [Member]
Debt Instrument [Line Items]
Long term debt	547,990	1,591,740
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	(21,568)	(155,760)
Convertible, Senior Secured Notes Issued Debt Issuance Costs [Member]
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense	$ (8,048)	$ (19,500)

Long-Term Debt (Components of39

Long-Term Debt (Components of Long-Term Debt) (Parenthetical) (Detail) - USD ($)	Jun. 03, 2014	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Fair Value Of Debt Embedded Conversion Price Adjustment Option	$ 1,938,988
Amortization of Financing Costs		$ 11,453	$ 11,581
Convertible, Senior Secured Notes Issued Debt Issuance Costs [Member]
Debt Instrument [Line Items]
Debt Issuance Costs, Net	$ 139,340
Convertible Senior Secured Notes payable [Member]
Debt Instrument [Line Items]
Long term debt, fixed interest repayment term		June 3, 2017		June 3, 2017
Long term debt, fixed interest rate		5.00%		5.00%
Debt Instrument, Convertible, Conversion Price		$ 2.25		$ 2.25
Amortization of Financing Costs		$ 8,000

Long-Term Debt (Aggregate Matur

Long-Term Debt (Aggregate Maturities For All Long Term Borrowings) (Detail) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
2017 (3 months)	$ 547,990
Total Unamortized Debt Discounts and Deferred Costs	(29,616)
Total Borrowings as of March 31, 2017	$ 518,374	$ 1,416,480

Long-Term Debt (Additional Info

Long-Term Debt (Additional Information) (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Line of Credit Facility [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 1,197,341	$ 22,500
Senior Secured Convertible Note [Member]
Line of Credit Facility [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 153,591
Conversion of Stock, Shares Issued	68,263
Conversion of Stock, Shares Converted	463,889
Extinguishment of Debt, Amount	$ 1,043,750

Capital Stock (Additional Infor

Capital Stock (Additional Information) (Detail) - USD ($)	Jan. 02, 2015	Mar. 31, 2017	Dec. 31, 2016
Preferred Stock Shares Authorized		5,000,000	5,000,000
Preferred Stock Shares Outstanding		49,626	49,626
Dividends Payable		$ 3,547,594	$ 3,134,129
Common Stock Shares Authorized		100,000,000	100,000,000
Common Stock Shares Issued		20,293,173	19,569,247
Common Stock Shares Outstanding		20,293,173	19,569,247
Common Stock, Par Or Stated Value Per Share		$ 0.001	$ 0.001
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 holder, 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%
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

Stock Warrants (Changes in Warr

Stock Warrants (Changes in Warrants) (Detail)	3 Months Ended
	Mar. 31, 2017shares
Class Of Warrant Or Right [Line Items]
Warrants Outstanding, Beginning of Year	401,859
Exercised During the Period	(250,009)
Issued During the Period	0
Expired During the Period	0
Warrants Outstanding, End of Year	151,850

Stock Warrants (Additional Info

Stock Warrants (Additional Information) (Detail)	3 Months Ended
	Mar. 31, 2017$ / shares
Class of Warrant or Right [Line Items]
Weighted average term of warrants	1 year 2 months 12 days
Weighted average exercise price of warrants per share	$ 2.66

Stock Option Plans (Summary of

Stock Option Plans (Summary of Stock Option Activity) (Detail) - Employee Stock Option [Member]	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Number of Options outstanding
Outstanding, Beginning Balance | shares	1,084,298
Granted | shares	0
Exercised | shares	(35,000)
Expired or Forfeited | shares	(7,619)
Outstanding, Ending Balance | shares	1,041,679
Weighted Average Exercise Price
Outstanding, Beginning Balance | $ / shares	$ 4.76
Granted | $ / shares	0
Exercised | $ / shares	2.4
Expired or Forfeited | $ / shares	17.5
Outstanding, Ending Balance | $ / shares	$ 4.75

Stock Option Plans (Additional

Stock Option Plans (Additional Information) (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Exercisable Options Outstanding Shares	624,032
Weighted average exercise price per share	$ 4.75
Unvested Options Outstanding, Shares	417,647
Unvested Options Outstanding, Weighted average exercise price	$ 4.73
Unvested Options Outstanding Weighted average remaining life (yrs)	8 years 2 months 12 days
Weighted average remaining contractual term on unvested options	6 years 10 months 24 days
Unrecognized stock compensation expense	$ 1,870,106
Weighted average recognition period	2 years 4 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	7 years 4 months 24 days	7 years 7 months 6 days

Contractual Obligations (Future

Contractual Obligations (Future Minimum Payments Required Under Operating Lease) (Detail)	Mar. 31, 2017USD ($)
Future Minimum Payments Required Under Operating Lease [Line Items]
2017 (9 months remaining)	$ 276,503
2,018	339,910
2,019	335,248
2,020	307,311
2,021	0
Total	$ 1,258,972

Contractual Obligations (Additi

Contractual Obligations (Additional Information) (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Commitment Contingencies Disclosure [Line Items]
Lease Expiration Date	Oct. 3, 2020
Operating Leases, Rent Expense	$ 110,369	$ 123,814
Operating Lease Commencement Date	Oct. 3, 2015

Subsequent Events (Additional I

Subsequent Events (Additional Information) (Detail) - USD ($)	1 Months Ended	3 Months Ended
	May 10, 2017	Mar. 31, 2017	Mar. 31, 2016
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount		$ 1,197,341	$ 22,500
Subsequent Event [Member] | Equity Option [Member]
Subsequent Event [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Exercises In Period	375
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period	211
Subsequent Event [Member] | Chief Operating Officer [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	100,000
Subsequent Event [Member] | Long-Term Convertible Notes [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 225,000
Debt Conversion, Converted Instrument, Shares Issued	100,000
Subsequent Event [Member] | Interest Payable [Member]
Subsequent Event [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 34,972
Debt Conversion, Converted Instrument, Shares Issued	15,543
Subsequent Event [Member] | IR firm [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	16,543