Vuzix (VUZI) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 09, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
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		20,674,742

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash and Cash Equivalents	$ 6,129,342	$ 14,533,944
Accounts Receivable	142,530	103,314
Accrued Revenue	420,314	0
Inventories, Net	3,407,141	2,651,218
Manufacturing Vendor Prepayments	206,148	144,168
Prepaid Expenses and Other Assets	517,512	797,409
Total Current Assets	10,822,987	18,230,053
Long-Term Assets
Fixed Assets, Net	3,586,193	3,364,908
Patents and Trademarks, Net	587,127	535,461
Software Development Costs, Net	171,611	214,838
Total Assets	15,167,918	22,345,260
Current Liabilities
Accounts Payable	1,809,146	1,085,472
Current Portion of Long-Term Debt, net of discount	0	1,416,480
Customer Deposits	47,409	66,162
Unearned Revenue	139,038	509,572
Accrued Expenses	1,064,451	1,331,983
Income and Other Taxes Payable	2,594	12,290
Total Current Liabilities	3,062,638	4,421,959
Long-Term Liabilities
Derivative Liability	163,987	173,131
Accrued Expenses	23,333	28,333
Total Long-Term Liabilities	187,320	201,464
Total Liabilities	3,249,958	4,623,423
Stockholders’ Equity
Preferred Stock — $.001 Par Value, 5,000,000 Shares Authorized; 49,626 Shares Issued and Outstanding June 30, 2017, and December 31, 2016	50	50
Common Stock — $.001 Par Value, 100,000,000 Shares Authorized; 20,609,182 Shares Issued and Outstanding June 30, 2017 and 19,569,247 on December 31, 2016	20,609	19,569
Additional Paid-in Capital	96,988,013	94,541,168
Accumulated Deficit	(85,090,712)	(76,838,950)
Total Stockholders’ Equity	11,917,960	17,721,837
Total Liabilities and Stockholders’ Equity	$ 15,167,918	$ 22,345,260

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 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	20,609,182	19,569,247
Common Stock, Shares Outstanding	20,609,182	19,569,247

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY - 6 months ended Jun. 30, 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	1,861,283		$ 827	1,860,456
Conversion of Note Payable & Accrued Interest (in shares)			827,237
Exercise of Warrants	0		$ 168	(168)
Exercise of Warrants (in shares)			168,203
Stock Based Compensation Expense	486,602		$ 4	486,598
Stock Based Compensation Expense (in shares)			4,170
Exercise of Stock Options	0		$ 24	(24)
Exercise of Stock Options (in shares)			23,782
Common Stock Issued for Services	100,000		$ 17	99,983
Common Stock Issued for Services (in shares)			16,543
Net Loss for the Six Months Ended June 30, 2017	(8,251,762)				(8,251,762)
Balance at Jun. 30, 2017	$ 11,917,960	$ 50	$ 20,609	$ 96,988,013	$ (85,090,712)
Balance (in shares) at Jun. 30, 2017		49,626	20,609,182

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Sales of Products	$ 904,947	$ 421,377	$ 1,864,330	$ 785,217
Sales of Engineering Services	420,314	139,500	671,594	139,500
Total Sales	1,325,261	560,877	2,535,924	924,717
Cost of Sales — Products	1,397,831	647,871	2,351,734	1,250,848
Cost of Sales — Engineering Services	356,917	39,060	464,917	39,060
Total Cost of Sales	1,754,748	686,931	2,816,651	1,289,908
Gross Loss (exclusive of depreciation shown separately below)	(429,487)	(126,054)	(280,727)	(365,191)
Operating Expenses:
Research and Development	1,198,940	1,669,043	2,867,748	2,943,756
Selling and Marketing	800,329	651,547	1,831,328	1,778,046
General and Administrative	1,308,234	1,199,427	2,543,417	2,085,744
Depreciation and Amortization	242,979	183,686	482,809	352,874
Loss from Operations	(3,979,969)	(3,829,757)	(8,006,029)	(7,525,611)
Other Income (Expense)
Investment Income	14,944	3,324	32,844	12,779
Other Taxes	(11,600)	(13,904)	(22,150)	(34,625)
Foreign Exchange Loss	(26,151)	(3,536)	(25,053)	(7,484)
(Loss) Gain on Derivative Valuation	(13,416)	(99,679)	9,144	1,987
Amortization of Senior Term Debt Discount	(21,568)	(114,816)	(155,760)	(236,022)
Amortization of Deferred Financing Costs	(8,048)	(11,580)	(19,500)	(23,160)
Interest Expense	(24,291)	(33,542)	(65,258)	(67,093)
Total Other Expense	(90,130)	(273,733)	(245,733)	(353,618)
Loss Before Income Taxes	(4,070,099)	(4,103,490)	(8,251,762)	(7,879,229)
Provision (Benefit) for Income Taxes	0	0	0	0
Net Loss	(4,070,099)	(4,103,490)	(8,251,762)	(7,879,229)
Preferred Stock Dividends	(424,243)	(399,715)	(837,708)	(793,540)
Loss Attributable to Common Stockholders	$ (4,494,342)	$ (4,503,205)	$ (9,089,470)	$ (8,672,769)
Loss per Share
Basic and Diluted Loss per Share (Note 2)	$ (0.22)	$ (0.28)	$ (0.45)	$ (0.54)
Weighted-average Shares Outstanding Basic and Diluted	20,446,824	16,137,419	20,082,633	16,135,881

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows from Operating Activities
Net Loss	$ (8,251,762)	$ (7,879,229)
Non-Cash Adjustments
Depreciation and Amortization	482,809	352,874
Amortization of Software Development Costs in cost of sales products	143,225	143,225
Stock Based Option Compensation Expense	486,602	349,206
Amortization of Term Debt Discount	155,760	236,022
Amortization of Debt Issuance Costs	19,500	23,160
Common Stock Issued for Services	100,000	175,674
Loss on Derivative Valuation	(9,144)	(1,987)
(Increase) Decrease in Operating Assets
Accounts Receivable	(39,216)	223,811
Accrued Revenue	(420,314)	0
Inventories	(755,923)	(121,856)
Vendor Prepayments	(61,980)	(55,163)
Prepaid Expenses and Other Assets	279,898	(210,899)
Increase (Decrease) in Operating Liabilities
Accounts Payable	723,632	149,734
Accrued Expense	56,711	179,151
Customer Deposits	(18,753)	7,123
Unearned Revenue	(370,534)	191,654
Income and Other Taxes Payable	(9,695)	11,327
Accrued Compensation	(124,918)	0
Accrued Interest	65,260	(160,967)
Net Cash Flows Used in Operating Activities	(7,548,842)	(6,387,140)
Cash Flows from Investing Activities
Purchases of Fixed Assets	(662,993)	(836,541)
Investments in Patents and Trademarks	(92,767)	(56,834)
Investments in Software Development	(100,000)	0
Net Cash Used in Investing Activities	(855,760)	(893,375)
Cash Flows from Financing Activities
Proceeds from Exercise of Warrants	0	45,000
Repayment of Long-Term Debt and Notes Payable	0	(55,210)
Net Cash Flows Used in Financing Activities	0	(10,210)
Net Decrease in Cash and Cash Equivalents	(8,404,602)	(7,290,725)
Cash and Cash Equivalents — Beginning of Period	14,533,944	11,877,058
Cash and Cash Equivalents — End of Period	6,129,342	4,586,333
Supplemental Disclosures
Interest Paid in Cash	39	11,444
Conversion of Debt and Accrued Interest	$ 1,861,283	$ 22,500

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation Of Financial Statements [Abstract]
Basis of Presentation	Note 1 — Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Vuzix Corporation and Subsidiaries (“the Company") have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and 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. For the six months ended June 30, 2017, Toshiba Japan represented 26 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 six months of 2017 of $ 8,251,762 19,250,082 13,427,478 85,090,712 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 in the spring of 2017, along with expected margin improvements from higher production volumes and assembly offshore, which we successfully completed in June 2017; · the recent award of a Smart Glasses development program with Toshiba, which we expect to be completed by early fall 2017 and represents approximately a further $ 715,000 · tighter control of operating costs and reduce spending growth rates wherever possible; · delay new product tooling and curtail discretionary and non-essential capital expenditures not related to select near-term new products; · reduce the rate of research and development spending on new technologies, particularly the use of costly external contractors for upcoming Blade 3000 smart glasses that will first be manufactured at our Rochester plant rather than at more costly external contractors; and · delaying planned new products based on new technology including the M3000 and AR 3000 Smart Glasses. However, if these actions are not successful in the near term, 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	6 Months Ended
	Jun. 30, 2017
Earnings (Loss) Per Share
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 and six months ended June 30, 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 June 30, 2017 and December 31, 2016, there were 6,499,941 7,227,738

Inventories, Net

Inventories, Net	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Note 3 — Inventories, Net June 30, 2017 December 31, 2016 Purchased Parts and Components $ 2,226,656 $ 1,990,026 Work in Process 302,387 454,120 Finished Goods 1,584,343 831,069 Less: Reserve for Obsolescence (706,245) (623,997) Net $ 3,407,141 $ 2,651,218

Accrued Expenses

Accrued Expenses	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Accrued Expenses	Note 4 — Accrued Expenses Accrued expenses consisted of the following: June 30, 2017 December 31, 2016 Accrued Wages and Related Costs $ 128,063 $ 119,472 Accrued Compensation 523,802 648,720 Accrued Professional Services 155,746 137,099 Accrued Warranty Obligations 75,603 41,132 Accrued Interest 171,237 375,560 Other Accrued Expenses 10,000 10,000 Total $ 1,064,451 $ 1,331,983 Included in the above accrued compensation are amounts owed to officers of the Company for services rendered that remain outstanding primarily for 2016 and prior years. The amounts are not subject to a fixed repayment schedule and they bear interest at a rate of 8% per year, compounding monthly. The related interest amounts included in Accrued Interest were $171,237 and $141,645 respectively at June 30, 2017 and December 31, 2016. 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 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. The changes in the Company’s accrued warranty obligations for the six months ended June 30, 2017 and December 31, 2016 were as follows: Accrued Warranty Obligations at December 31, 2016 $ 41,132 Reductions for Settling Warranties (57,718 ) Warranties Issued During Period 92,189 Accrued Warranty Obligations at June 30, 2017 $ 75,603

Derivative Liability and Fair V

Derivative Liability and Fair Value Measurements	6 Months Ended
	Jun. 30, 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 of June 30, 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 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 Derivative Liability $ 163,987 $ — $ — $ 163,987 Total liabilities measured at fair value (Long-Term) $ 163,987 $ — $ — $ 163,987 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 Derivative 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 (9,144) Fair value – June 30, 2017 $ 163,987 June 30, December 31, 2017 2016 Assumptions for Pricing Model: Expected term in years 1.10 1.22 Volatility range for years 133 % 100 % Risk-free interest rate 1.24 % 1.47 % Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 163,987 $ 173,131

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Long-Term Debt	Note 6 — Long-Term Debt June 30, 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% annual 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. — 1,591,740 Convertible, Senior Secured Notes Debt Issuance Costs of $139,340, net of accumulated amortization. — (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. — (155,760) $ — $ 1,416,480 Less: Amount Due Within One Year — (1,416,480) Amount Due After One Year $ — $ — All of the $ 1,591,740 707,440 269,543 119,797

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 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	6 Months Ended
	Jun. 30, 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 3,971,837 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 the resale of shares of common stock issuable upon conversion of the Series A Preferred Stock. The Company’s registration statement covering the resale of 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 20,609,182 19,569,247

Stock Warrants

Stock Warrants	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
Stock Warrants	Note 9 — Stock Warrants Number of Warrants Warrants Outstanding at December 31, 2016 401,859 Exercised During the Period (250,009) Issued During the Period — Expired During the Period — Warrants Outstanding, June 30, 2017 151,850 The outstanding warrants as of June 30, 2017 expire from November 3, 2017 to August 5, 2018. The weighted average remaining term of the warrants is 0.9 2.66

Stock Based Compensation Plans

Stock Based Compensation Plans	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock Based Compensation Plans	Note 10 — Stock Based Compensation Plans A summary of stock option activity for the six months ended June 30, 2017 is as follows: Number of Options Weighted Outstanding at December 31, 2016 1,084,298 $ 4.76 Granted 362,000 5.87 Exercised (35,375 ) 2.40 Expired or Forfeited (25,432 ) 8.16 Outstanding at June 30, 2017 1,385,491 $ 4.97 The weighted average remaining contractual term for all options as of June 30, 2017 and December 31, 2016 was 7.8 years and 7.6 years respectively. As of June 30, 2017, there were 675,464 options that were fully vested and exercisable at a weighted average exercise price of $4.57 per share. The weighted average remaining contractual term on the vested options is 6.5 years. As of June 30, 2017, there were 710,027 unvested options exercisable at a weighted average exercise price of $5.34 per share. The weighted average remaining contractual term on the unvested options is 8.9 years. No cash was received from option exercises for the six months ended June 30, 2017. The weighted average fair value of option grants was calculated using the Black-Scholes-Merton option pricing method. At June 30, 2017, the Company had approximately $2,942,000 of unrecognized stock compensation expense, which will be recognized over a weighted average period of approximately 3.1 years. During the six months ended June 30, 2017, the Company issued 100,000 shares of non-vested stock to an executive officer which vest over four years. The fair market value on the date of grant of the non-vested stock issued during the six months ended June 30, 2017 was $5.90, resulting in an aggregate fair value of $590,000. As of June 30, 2017, there was $565,000 of unrecognized compensation cost related to unvested stock awards. This amount is expected to be recognized over a weighted-average period of 3.8 years. For the three months ended June 30, 2017 and 2016, the Company recorded total stock compensation expense of approximately $277,000 and $175,000, respectively. For the six months ended June 30, 2017 and 2016, the Company recorded total stock compensation expense of approximately $487,000 and $349,000, respectively.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2017
Litigation Disclosure [Abstract]
Litigation	Note 11 — Litigation We are not currently involved in any pending legal proceeding or litigation.

Contractual Obligations

Contractual Obligations	6 Months Ended
	Jun. 30, 2017
Contractual Obligations [Abstract]
Contractual Obligations	Note 12 — Contractual Obligations The Company is party to several lease agreements, with the largest being for its office and manufacturing space under an operating lease that commenced October 3, 2015 October 3, 2020 Total Minimum Lease Payments 2017 (6 months remaining) 183,604 2018 339,910 2019 335,248 2020 307,311 2021 - Total $ 1,166,073 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 six months ended June 30, 2017 and 2016 totaled $ 228,509 246,704

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 13 — Recent Accounting Pronouncements In May 2014, the FASB issued ASU 2014-09, “ Revenue from Contracts with Customers, In February 2016, the FASB issued Accounting Standards Update ASU 2016-02 Leases Accounting Pronouncements Adopted in Q1 2017 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 There are no other recent accounting pronouncements that we expect to have a material impact on the consolidated financial statements.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 14 — Subsequent Events Recent Stock Awards: Since June 30, 2017, the Company has awarded 50,000 Recent Stock Option Awards: Since June 30, 2017, the Company has awarded 65,500 Sale of Common Stock: On August 9, 2017, the Company entered into agreements to sale 1,500,000 shares of common stock, at an offering price of $5.75 per share. Total gross proceeds from the offering will be $8,625,000, before commissions and offering expenses. The offering is expected to close on August 14, 2017 .

Inventories, Net (Tables)

Inventories, Net (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	Inventories are stated at the lower of cost and net realizable value and consisted of the following: June 30, 2017 December 31, 2016 Purchased Parts and Components $ 2,226,656 $ 1,990,026 Work in Process 302,387 454,120 Finished Goods 1,584,343 831,069 Less: Reserve for Obsolescence (706,245) (623,997) Net $ 3,407,141 $ 2,651,218

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
	Jun. 30, 2017
Payables and Accruals [Abstract]
Components of Accrued Expenses	June 30, 2017 December 31, 2016 Accrued Wages and Related Costs $ 128,063 $ 119,472 Accrued Compensation 523,802 648,720 Accrued Professional Services 155,746 137,099 Accrued Warranty Obligations 75,603 41,132 Accrued Interest 171,237 375,560 Other Accrued Expenses 10,000 10,000 Total $ 1,064,451 $ 1,331,983
Changes in Accrued Warranty Obligations	Accrued Warranty Obligations at December 31, 2016 $ 41,132 Reductions for Settling Warranties (57,718) Warranties Issued During Period 92,189 Accrued Warranty Obligations at June 30, 2017 $ 75,603

Derivative Liability and Fair23

Derivative Liability and Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 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 June 30, 2017: Total Level 1 Level 2 Level 3 Derivative Liability $ 163,987 $ — $ — $ 163,987 Total liabilities measured at fair value (Long-Term) $ 163,987 $ — $ — $ 163,987 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 Derivative 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 (9,144) Fair value – June 30, 2017 $ 163,987
Schedule Of Fair Value Of Warrants	The Monte Carlo Options Lattice pricing model was used to estimate the fair value of the warrants outstanding: June 30, December 31, 2017 2016 Assumptions for Pricing Model: Expected term in years 1.10 1.22 Volatility range for years 133 % 100 % Risk-free interest rate 1.24 % 1.47 % Expected annual dividends None None Value of warrants outstanding: Fair value of warrants $ 163,987 $ 173,131

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt Disclosure [Abstract]
Components of Long-Term Debt	Long-term debt consisted of the following: June 30, 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% annual 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. — 1,591,740 Convertible, Senior Secured Notes Debt Issuance Costs of $139,340, net of accumulated amortization. — (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. — (155,760) $ — $ 1,416,480 Less: Amount Due Within One Year — (1,416,480) Amount Due After One Year $ — $ —

Stock Warrants (Tables)

Stock Warrants (Tables)	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
Changes in Warrants	A summary of the various changes in warrants during the six month period ended June 30, 2017 is as follows: Number of Warrants Warrants Outstanding at December 31, 2016 401,859 Exercised During the Period (250,009) Issued During the Period — Expired During the Period — Warrants Outstanding, June 30, 2017 151,850

Stock Based Compensation Plans

Stock Based Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2017
Stock Based Compensation Plans [Abstract]
Stock option plans	A summary of stock option activity for the six months ended June 30, 2017 is as follows: Weighted Average Number of Exercise Options Price Outstanding at December 31, 2016 1,084,298 $ 4.76 Granted 362,000 5.87 Exercised (35,375) 2.40 Expired or Forfeited (25,432) 8.16 Outstanding at June 30, 2017 1,385,491 $ 4.97

Contractual Obligations (Tables

Contractual Obligations (Tables)	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Contractual Payment Obligations for Operating Leases	Future minimum payments required under operating lease obligations as of June 30, 2017 are as follows: Total Minimum Lease Payments 2017 (6 months remaining) 183,604 2018 339,910 2019 335,248 2020 307,311 2021 - Total $ 1,166,073

Basis of Presentation (Addition

Basis of Presentation (Additional Information (Detail) - USD ($)	3 Months Ended		6 Months Ended			12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Basis Of Presentation [Line Items]
Net Income (Loss) Attributable To Parent	$ (4,070,099)	$ (4,103,490)		$ (8,251,762)	$ (7,879,229)	$ 19,250,082	$ 13,427,478
Retained Earnings Accumulated Deficit	(85,090,712)			(85,090,712)		(76,838,950)
Proceeds from Issuance Initial Public Offering						$ 19,238,015
Sales Revenue Net	$ 1,325,261	$ 560,877		$ 2,535,924	$ 924,717
Scenario, Forecast [Member]
Basis Of Presentation [Line Items]
Sales Revenue Net			$ 715,000
Toshiba Japan [Member] | Sales Revenue, Net [Member]
Basis Of Presentation [Line Items]
Concentration Risk, Percentage				26.00%	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)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Earnings Per Share, Potentially Dilutive Securities	6,499,941	7,227,738

Inventories Net (Components of

Inventories Net (Components of Inventories) (Detail) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Line Items]
Purchased Parts and Components	$ 2,226,656	$ 1,990,026
Work in Process	302,387	454,120
Finished Goods	1,584,343	831,069
Less: Reserve for Obsolescence	(706,245)	(623,997)
Net	$ 3,407,141	$ 2,651,218

Accrued Expenses (Components of

Accrued Expenses (Components of Accrued Expenses) (Detail) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accrued Liabilities [Line Items]
Accrued Wages and Related Costs	$ 128,063	$ 119,472
Accrued Compensation	523,802	648,720
Accrued Professional Services	155,746	137,099
Accrued Warranty Obligations	75,603	41,132
Accrued Interest	171,237	375,560
Other Accrued Expenses	10,000	10,000
Total	$ 1,064,451	$ 1,331,983

Accrued Expenses (Changes in Ac

Accrued Expenses (Changes in Accrued Warranty Obligations) (Detail)	6 Months Ended
	Jun. 30, 2017USD ($)
Class Of Warrant Or Right [Line Items]
Accrued Warranty Obligations at December 31, 2016	$ 41,132
Reductions for Settling Warranties	(57,718)
Warranty Issued During Year	92,189
Accrued Warranty Obligations at June 30, 2017	$ 75,603

Accrued Expenses - Additional I

Accrued Expenses - Additional Information (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Officers Compensation Payable Compounding Monthly Interest Rate	8.00%
Interest Payable, Current	$ 171,237	$ 141,645

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 ($)	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability	$ 163,987	$ 173,131
Total liabilities measured at fair value (Long-Term)	163,987	173,131
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative 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]
Derivative 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]
Derivative Liability	163,987	173,131
Total liabilities measured at fair value (Long-Term)	$ 163,987	$ 173,131

Derivative Liability and Fair35

Derivative Liability and Fair Value Measurements (Schedule of Fair Value Level 3 Warrant Liabilities) (Detail)	6 Months Ended
	Jun. 30, 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	(9,144)
Fair value - June 30, 2017	$ 163,987

Derivative Liability and Fair36

Derivative Liability and Fair Value Measurements (Estimate the fair value of warrants outstanding) (Detail) - Monte Carlo Options Lattice Pricing Model Warrants Outstanding - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Assumptions for Pricing Model:
Expected term in years	1 year 1 month 6 days	1 year 2 months 19 days
Volatility range for years	133.00%	100.00%
Risk-free interest rate	1.24%	1.47%
Expected annual dividends	0.00%	0.00%
Value of warrants outstanding:
Fair value of warrants	$ 163,987	$ 173,131

Derivative Liability and Fair37

Derivative Liability and Fair Value Measurements (Additional Information) (Detail) - USD ($)	Jun. 03, 2014	Jun. 30, 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 ($)	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Long term debt	$ 0	$ 1,416,480
Less: Amount Due Within One Year	0	(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	0	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	0	(155,760)
Convertible, Senior Secured Notes Issued Debt Issuance Costs [Member]
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense	$ 0	$ (19,500)

Long-Term Debt (Components of39

Long-Term Debt (Components of Long-Term Debt) (Parenthetical) (Detail) - USD ($)	Jun. 03, 2014	Jun. 30, 2017	Jun. 03, 2017
Debt Instrument [Line Items]
Fair Value Of Debt Embedded Conversion Price Adjustment Option	$ 1,938,988
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
Long term debt, fixed interest rate		5.00%
Debt Instrument, Convertible, Conversion Price		$ 2.25

Long-Term Debt (Additional Info

Long-Term Debt (Additional Information) (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Line of Credit Facility [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 1,861,283	$ 22,500
Senior Secured Convertible Note [Member]
Line of Credit Facility [Line Items]
Debt Conversion, Converted Instrument, Amount	$ 269,543
Conversion of Stock, Shares Issued	119,797
Conversion of Stock, Shares Converted	707,440
Conversion of Stock, Amount Issued	$ 1,591,740

Capital Stock (Additional Infor

Capital Stock (Additional Information) (Detail) - USD ($)	Jan. 02, 2015	Jun. 30, 2017	Dec. 31, 2016
Preferred Stock Shares Authorized		5,000,000	5,000,000
Preferred Stock Shares Outstanding		49,626	49,626
Dividends Payable		$ 3,971,837	$ 3,134,129
Common Stock Shares Authorized		100,000,000	100,000,000
Common Stock Shares Issued		20,609,182	19,569,247
Common Stock Shares Outstanding		20,609,182	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)	6 Months Ended
	Jun. 30, 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)	6 Months Ended
	Jun. 30, 2017$ / shares
Class of Warrant or Right [Line Items]
Weighted average term of warrants	10 months 24 days
Weighted average exercise price of warrants per share	$ 2.66

Stock Based Compensation Plan44

Stock Based Compensation Plans (Summary of Stock Option Activity) (Detail) - Employee Stock Option [Member]	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Number of Options outstanding
Outstanding, Beginning Balance | shares	1,084,298
Granted | shares	362,000
Exercised | shares	(35,375)
Expired or Forfeited | shares	(25,432)
Outstanding, Ending Balance | shares	1,385,491
Weighted Average Exercise Price
Outstanding, Beginning Balance | $ / shares	$ 4.76
Granted | $ / shares	5.87
Exercised | $ / shares	2.4
Expired or Forfeited | $ / shares	8.16
Outstanding, Ending Balance | $ / shares	$ 4.97

Stock Based Compensation Plan45

Stock Based Compensation Plans (Additional Information) (Detail) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Exercisable Options Outstanding Shares	675,464		675,464
Weighted average exercise price per share	$ 4.57		$ 4.57
Unvested Options Outstanding, Shares	710,027		710,027
Unvested Options Outstanding, Weighted average exercise price			$ 5.34
Unvested Options Outstanding Weighted average remaining life (yrs)			8 years 10 months 24 days
Weighted average remaining contractual term on unvested options			6 years 6 months
Unrecognized stock compensation expense	$ 2,942,000		$ 2,942,000
Weighted average recognition period			3 years 1 month 6 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term			7 years 9 months 18 days		7 years 7 months 6 days
Share-Based Compensation	277,000	$ 175,000	$ 486,602	$ 349,206
Chief Executive Officer [Member]
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items]
Unrecognized stock compensation expense	$ 565,000		$ 565,000
Weighted average recognition period			3 years 9 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested Issued , Number			100,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, NonVested in Period, Fair Value			$ 590,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 5.90

Contractual Obligations (Future

Contractual Obligations (Future Minimum Payments Required Under Operating Lease) (Detail)	Jun. 30, 2017USD ($)
Future Minimum Payments Required Under Operating Lease [Line Items]
2017 (6 months remaining)	$ 183,604
2,018	339,910
2,019	335,248
2,020	307,311
2,021	0
Total	$ 1,166,073

Contractual Obligations (Additi

Contractual Obligations (Additional Information) (Detail) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Commitment Contingencies Disclosure [Line Items]
Lease Expiration Date	Oct. 3, 2020
Operating Leases, Rent Expense	$ 228,509	$ 246,704
Operating Lease Commencement Date	Oct. 3, 2015

Subsequent Events (Additional I

Subsequent Events (Additional Information) (Detail) - Subsequent Event [Member] - USD ($)	Aug. 14, 2017	Aug. 09, 2017
Subsequent Event [Line Items]
Common Stock Awards (in Shares)	1,500,000
Shares Issued, Price Per Share	$ 5.75
Common Stock Awards	$ 8,625,000
Employee Stock Option [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		65,500
External Board [Member]
Subsequent Event [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross		50,000