Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 16, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Vuzix Corp | ||
Entity Central Index Key | 1,463,972 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 111,187,000 | ||
Trading Symbol | VUZI | ||
Entity Common Stock, Shares Outstanding | 27,301,203 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and Cash Equivalents | $ 14,889,636 | $ 14,533,944 |
Accounts Receivable, Net | 974,172 | 103,314 |
Accrued Project Revenue | 497,784 | 0 |
Inventories, Net | 3,852,317 | 2,651,218 |
Manufacturing Vendor Prepayments | 154,717 | 144,168 |
Prepaid Expenses and Other Assets | 873,947 | 797,409 |
Total Current Assets | 21,242,573 | 18,230,053 |
Long-Term Assets | ||
Fixed Assets, Net | 4,124,466 | 3,364,908 |
Patents and Trademarks, Net | 813,774 | 535,461 |
Software Development Costs, Net | 408,723 | 214,838 |
Licenses, Net | 243,717 | 0 |
Total Assets | 26,833,253 | 22,345,260 |
Current Liabilities | ||
Accounts Payable | 3,726,056 | 1,085,472 |
Current Portion of Long-term Debt, Net of discounts | 0 | 1,416,480 |
Customer Deposits | 73,462 | 66,162 |
Unearned Revenue | 107,824 | 509,572 |
Accrued Expenses | 1,371,440 | 1,331,983 |
Derivative Liability | 152,927 | 0 |
Income and Other Taxes Payable | 3,500 | 12,290 |
Total Current Liabilities | 5,435,209 | 4,421,959 |
Long-Term Liabilities | ||
Derivative Liability | 0 | 173,131 |
Accrued Expenses | 18,331 | 28,333 |
Total Long-Term Liabilities | 18,331 | 201,464 |
Total Liabilities | 5,453,540 | 4,623,423 |
Stockholders' Equity | ||
Preferred Stock $.001 Par Value, 5,000,000 Shares Authorized; 49,626 and 49,626 Shares Issued and Outstanding December 31, 2017 and 2016. | 50 | 50 |
Common Stock $.001 Par Value, 100,000,000 Shares Authorized December 31, 2017 and 2016; 24,276,275 and 19,569,247 Shares Issued and Outstanding December 31, 2017 and 2016, respectively. | 24,276 | 19,569 |
Additional Paid-in Capital | 117,827,839 | 94,541,168 |
Accumulated Deficit | (96,472,452) | (76,838,950) |
Total Stockholders' Equity | 21,379,713 | 17,721,837 |
Total Liabilities and Stockholders' Equity | $ 26,833,253 | $ 22,345,260 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 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 | 24,276,275 | 19,569,247 |
Common Stock, Shares Outstanding | 24,276,275 | 19,569,247 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) | Total | Preferred Stock | Common Stock | Additional Paid-in Capital | Accumulated Deficit |
Balance at Dec. 31, 2014 | $ (14,398,011) | $ 11,296 | $ 29,752,083 | $ (44,161,390) | |
Balance (in shares) at Dec. 31, 2014 | 11,295,387 | ||||
Exercise of Warrants | 1,272,626 | $ 4,128 | 1,268,498 | ||
Exercise of Warrants (in shares) | 4,128,271 | ||||
Reclass Fair Value of Warrant Derivative Liability upon Exercise | 2,855,463 | 2,855,463 | |||
Conversion of Note Payable and Accrued Interest | 472,500 | $ 210 | 472,290 | ||
Conversion of Note Payable and Accrued Interest (in shares) | 210,000 | ||||
Stock Issued for Services | 676,665 | $ 121 | 676,544 | ||
Stock Issued for Services (in shares) | 120,837 | ||||
Warrants Issued for Services | 260,373 | 260,373 | |||
Stock Compensation Expense | 568,848 | 568,848 | |||
Common Stock Awards to Officers, Directors And Law Firm | 1,669,700 | $ 325 | 1,669,375 | ||
Common Stock Awards to Officers, Directors And Law Firm (in shares) | 325,000 | ||||
Proceeds from Preferred Stock Offering | 24,813,000 | $ 50 | 24,812,950 | ||
Proceeds from Preferred Stock Offering (in shares) | 49,626 | ||||
Direct Costs of Preferred Stock and Common Stock Offerings | (214,169) | (214,169) | |||
Reclass Fair Value of Derivative Liability upon Waiver of Certain Anti-Dilutive Provisions | 8,736,412 | 8,736,412 | |||
Reclass Fair Value of Note Derivative Liability upon Waiver of Certain Anti-Dilutive Provisions | 2,806,942 | 2,806,942 | |||
Exercise of Stock Options | $ 8 | (8) | |||
Exercise of Stock Options (in shares) | 8,456 | ||||
Net Loss | (13,427,478) | (13,427,478) | |||
Balance at Dec. 31, 2015 | 16,092,871 | $ 50 | $ 16,088 | 73,665,601 | (57,588,868) |
Balance (in shares) at Dec. 31, 2015 | 49,626 | 16,087,951 | |||
Exercise of Warrants | 60,751 | $ 97 | 60,654 | ||
Exercise of Warrants (in shares) | 96,620 | ||||
Reclass Fair Value of Warrant Derivative Liability upon Exercise | 32,911 | 32,911 | |||
Conversion of Note Payable and Accrued Interest | 342,036 | $ 152 | 341,884 | ||
Conversion of Note Payable and Accrued Interest (in shares) | 152,016 | ||||
Stock Issued for Services | 174,025 | $ 32 | 173,993 | ||
Stock Issued for Services (in shares) | 32,578 | ||||
Stock Compensation Expense | 756,928 | 756,928 | |||
Common Stock Awards to Officers, Directors And Law Firm | 241,300 | $ 40 | 241,260 | ||
Common Stock Awards to Officers, Directors And Law Firm (in shares) | 40,000 | ||||
Proceeds from Common Stock Offerings | 21,112,500 | $ 3,150 | 21,109,350 | ||
Proceeds from Common Stock Offerings (in shares) | 3,150,000 | ||||
Direct Costs of Preferred Stock and Common Stock Offerings | (1,874,485) | (1,874,485) | |||
Exercise of Stock Options | 33,082 | $ 10 | 33,072 | ||
Exercise of Stock Options (in shares) | 10,082 | ||||
Net Loss | (19,250,082) | (19,250,082) | |||
Balance at Dec. 31, 2016 | 17,721,837 | $ 50 | $ 19,569 | 94,541,168 | (76,838,950) |
Balance (in shares) at Dec. 31, 2016 | 49,626 | 19,569,247 | |||
Exercise of Warrants | $ 168 | (168) | |||
Exercise of Warrants (in shares) | 168,203 | ||||
Conversion of Note Payable and Accrued Interest | 1,861,283 | $ 827 | 1,860,456 | ||
Conversion of Note Payable and Accrued Interest (in shares) | 827,237 | ||||
Stock Issued for Services | 228,750 | $ 42 | 228,708 | ||
Stock Issued for Services (in shares) | 41,543 | ||||
Stock Compensation Expense | 1,355,522 | $ 17 | 1,355,505 | ||
Stock Compensation Expense (in shares) | 16,668 | ||||
Common Stock Awards to Officers, Directors And Law Firm | 335,000 | $ 50 | 334,950 | ||
Common Stock Awards to Officers, Directors And Law Firm (in shares) | 50,000 | ||||
Proceeds from Common Stock Offerings | 21,128,502 | $ 3,566 | 21,124,936 | ||
Proceeds from Common Stock Offerings (in shares) | 3,566,116 | ||||
Direct Costs of Preferred Stock and Common Stock Offerings | (1,617,679) | (1,617,679) | |||
Exercise of Stock Options | $ 37 | (37) | |||
Exercise of Stock Options (in shares) | 37,261 | ||||
Net Loss | (19,633,502) | (19,633,502) | |||
Balance at Dec. 31, 2017 | $ 21,379,713 | $ 50 | $ 24,276 | $ 117,827,839 | $ (96,472,452) |
Balance (in shares) at Dec. 31, 2017 | 49,626 | 24,276,275 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sales: | |||
Sales of Products | $ 4,548,689 | $ 1,987,878 | $ 2,544,153 |
Sales of Engineering Services | 989,064 | 139,500 | 205,831 |
Total Sales | 5,537,753 | 2,127,378 | 2,749,984 |
Cost of Sales: | |||
Cost of Sales Products | 5,269,900 | 3,251,906 | 2,101,466 |
Cost of Sales Engineering Services | 944,451 | 39,060 | 82,332 |
Total Cost of Sales | 6,214,351 | 3,290,966 | 2,183,798 |
Gross Profit (Loss) (exclusive of depreciation shown separately below) | (676,598) | (1,163,588) | 566,186 |
Operating Expenses: | |||
Research and Development | 6,706,690 | 6,947,878 | 3,595,437 |
Selling and Marketing | 3,694,913 | 3,394,580 | 1,798,041 |
General and Administrative | 6,126,335 | 5,114,139 | 6,120,101 |
Depreciation and Amortization | 998,528 | 770,668 | 380,841 |
Loss on Inventory Revaluation | 1,151,482 | 1,124,401 | 0 |
Impairment of Patents and Trademarks | 0 | 20,506 | 13,222 |
Total Operating Expenses: | 18,677,948 | 17,372,172 | 11,907,642 |
Loss from Operations | (19,354,546) | (18,535,760) | (11,341,456) |
Other Income (Expense) | |||
Investment Income | 58,530 | 26,693 | 20,790 |
Other Taxes | (28,363) | (52,271) | (54,432) |
Foreign Exchange Loss | (65,248) | (33,079) | (277) |
Gain (Loss) on Derivative Valuation | 20,204 | 34,744 | (1,098,465) |
Loss on Fixed Asset Disposal | (585) | (25,890) | 0 |
Amortization of Senior Term Debt Discounts | (155,760) | (486,856) | (751,968) |
Amortization of Deferred Financing Costs | (19,500) | (46,574) | (46,447) |
Interest Expense | (88,234) | (131,089) | (155,223) |
Total Other Income (Expense) | (278,956) | (714,322) | (2,086,022) |
Loss Before Provision for Income Taxes | (19,633,502) | (19,250,082) | (13,427,478) |
Provision for Income Taxes | 0 | 0 | 0 |
Net Loss | (19,633,502) | (19,250,082) | (13,427,478) |
Preferred Stock Dividends | (1,714,934) | (1,620,048) | (1,514,081) |
Loss Attributable to Common Stockholders | $ (21,348,436) | $ (20,870,130) | $ (14,941,559) |
Basic and Diluted Loss per Share | $ (1.02) | $ (1.23) | $ (0.97) |
Weighted-average Shares Outstanding - Basic and Diluted | 21,013,907 | 16,908,544 | 15,408,724 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net Loss | $ (19,633,502) | $ (19,250,082) | $ (13,427,478) |
Non-Cash Adjustments: | |||
Depreciation and Amortization | 998,528 | 770,668 | 380,841 |
Amortization of Software Development Costs in Cost of Sales - Products | 214,838 | 286,450 | 286,450 |
Impairment of Patents and Trademarks | 0 | 20,506 | 13,222 |
Common Stock Awards Compensation Expense | 267,750 | 146,050 | 1,669,700 |
Loss on Disposal of Fixed Assets | 585 | 25,890 | 0 |
Stock-Based Option Compensation Expense | 1,355,522 | 756,928 | 568,848 |
Amortization of Term Debt Discount | 155,760 | 486,856 | 751,968 |
Amortization of Debt Issuance Costs | 19,500 | 46,574 | 46,447 |
Common Stock and Warrants Issued for Services | 228,750 | 174,026 | 1,057,074 |
(Gain) Loss on Derivative Revaluation | (20,204) | (34,744) | 1,098,465 |
Loss on Inventory Revaluation | 1,151,482 | 1,124,401 | 0 |
(Increase) Decrease in Operating Assets: | |||
Accounts Receivable | (870,858) | 222,380 | 57,839 |
Accrued Project Revenue | (497,784) | 0 | 0 |
Inventories | (2,352,581) | (426,521) | (2,437,149) |
Vendor Prepayments | (10,549) | 225,243 | (213,320) |
Prepaid Expenses and Other Assets | (9,288) | (78,389) | (306,078) |
Increase (Decrease) in Operating Liabilities: | |||
Accounts Payable | 2,640,584 | 178,037 | (1,276,132) |
Accrued Expense | 554,832 | 31,909 | 143,830 |
Customer Deposits | 7,300 | 38,315 | (92,703) |
Unearned Revenue | (401,748) | 440,091 | 16,078 |
Income and Other Taxes Payable | (8,790) | 5,217 | (28,085) |
Accrued Compensation | (321,250) | 290,000 | (70,067) |
Accrued Interest & Long-Term Accrued Interest Converted | 65,417 | 123,231 | 92,171 |
Net Cash Flows Used in Operating Activities | (16,465,706) | (14,396,964) | (11,668,079) |
Cash Flows from Investing Activities: | |||
Purchases of Fixed Assets | (1,681,258) | (2,039,299) | (1,892,831) |
Investments in Licenses, Patents and Trademarks | (599,444) | (147,004) | (191,908) |
Investments in Software Development | (408,723) | 0 | 0 |
Net Cash Used in Investing Activities | (2,689,425) | (2,186,303) | (2,084,739) |
Cash Flows from Financing Activities: | |||
Proceeds from Exercise of Warrants | 0 | 60,750 | 1,272,627 |
Repayment of Capital Leases | 0 | 0 | (16,882) |
Repayment of Long-Term Debt and Notes Payable | 0 | (76,875) | (197,167) |
Proceeds from Preferred Stock Offering | 0 | 0 | 24,813,000 |
Issuance Costs on Preferred Stock Offering | 0 | 0 | (214,169) |
Proceeds from Common Stock Offerings | 21,128,502 | 21,112,500 | 0 |
Issuance Costs on Common Stock Offerings | (1,617,679) | (1,874,485) | 0 |
Net Change in Lines of Credit | 0 | 0 | (112,500) |
Proceeds from Exercise of Stock Options | 0 | 18,263 | 0 |
Net Cash Flows Provided by Financing Activities | 19,510,823 | 19,240,153 | 25,544,909 |
Net Increase in Cash and Cash Equivalents | 355,692 | 2,656,886 | 11,792,091 |
Cash and Cash Equivalents - Beginning of Period | 14,533,944 | 11,877,058 | 84,967 |
Cash and Cash Equivalents - End of Period | 14,889,636 | 14,533,944 | 11,877,058 |
Supplemental Disclosures | |||
Interest Paid in Cash | 22,814 | 7,696 | 41,194 |
Common Stock and Warrants Issued for Services | 228,750 | 174,026 | 936,937 |
Conversion of Term Debt and Accrued Interest into Common Stock | 1,861,283 | 342,036 | 472,500 |
Reclassification of Derivative Liability to Paid-In Capital upon Waiver of Certain Anti-Dilutive Provisions of Warrants and Convertible Debt | 0 | 0 | 11,543,354 |
Reclassification of Derivative Liability Upon Warrant Exercises | 0 | 32,911 | 2,855,463 |
Receivable from Stock Option Exercise | $ 0 | $ 14,820 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1 Summary of Significant Accounting Policies Vuzix Corporation (the Company) was formed in 1997 under the laws of the State of Delaware and maintains its corporate offices in Rochester, New York. The Company is engaged in the design, manufacture, marketing and sale of wearable display devices, that are generally worn like eyeglasses, and are also referred to as head mounted displays (or HMDs), in the form of Augmented Reality (AR) glasses and Smart Glasses. Our wearable display products provide virtual large high-resolution screens, fit in a user’s pocket or purse and can be viewed practically anywhere, anytime. We produce and sell two main types of wearable display products: Smart Glasses for a variety of enterprise and commercial users and applications, including AR; and Video Viewing glasses, for on-the-go users as mobile displays for entertainment and social media use. Our products are available with varying features, including with and without applications running computer processors, and are offered as either monocular or binocular display systems. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Vuzix Europe. All significant inter-company transactions have been eliminated. Certain prior year amounts have been reclassified to be consistent with current year presentation. The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities. Accordingly, the Company does not accumulate discrete information, other than product revenue and material costs, with respect to separate product lines and does not have separately reportable segments as defined by FASB ASC Topic 280, “Disclosures about Segments of an Enterprise and Related Information”. Refer to Note 17 Geographic Financial Information, Significant Customers and other financial information. The British Pound is the functional currency of the Company’s foreign subsidiary. Transactions are recorded at the functional currency of each subsidiary. Gains and losses arising upon settlement of foreign currency transactions are included in the determination of net loss. The financial statements of the foreign subsidiary are translated to the US dollar at each reporting date. The cumulative translation adjustment at December 31, 2017, 2016 and 2015 was not material, as well as from inception of UK subsidiary. The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. Cash and cash equivalents can include highly liquid investments with original maturities of three months or less. The Company’s financial instruments primarily consists of cash and cash equivalents, accounts receivable, accounts payable, long-term debt, customer deposits, accrued expenses, and income taxes payable. As of the consolidated balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to both the short maturities of these instruments and that the interest rates on borrowing approximate those that would have been available for loans for similar remaining maturity and risk profiles. The Company carries its trade accounts receivable at invoice amount less an allowance for doubtful accounts. The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at risk receivables. There was an allowance of $ 29,960 Accrued Project Revenue The Company carries its accrued project revenue based on the percentage of completion on the project measured using the input method based upon costs incurred to-date as a percentage of total expected costs to complete the project. Inventories are valued at the lower of cost or net realizable value using the weighted average first-in, first-out method. The Company includes labor and overhead costs in its inventory valuation costing. The Company records provisions for excess, obsolete or slow moving inventory based on changes in customer demand, technology developments or other economic factors. The Company’s products have product life cycles that range on average from two to three years currently. At both the product introduction and product discontinuation stage, there is a higher degree of risk of inventory obsolescence. The provision for obsolete and excess inventory is evaluated for adequacy at each quarter end. The estimate of the provision for obsolete and excess inventory is partially based on expected future product sales, which are difficult to forecast for certain products. The Company recognizes revenue from product sales in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605 “Revenue Recognition ” Revenue from any engineering consulting and other services is recognized at the time the services are rendered. The Company accounts for its longer-term development contracts, which to date have all been firm fixed-priced contracts, on the percentage-of-completion method, whereby income is recognized as work on contracts progresses, but estimated losses on contracts in progress are charged to operations immediately. The percentage-of-completion is determined using the cost-to-cost method. To date, all such contracts have been less than one calendar year in duration. The Company recognizes software license revenue under ASC 985-605 “Software Revenue Recognition” and under ASC 605-25 “Revenue Arrangements with Multiple Deliverables”, and related interpretations, as amended. Licensed software may be sold as a stand-alone element, with other software elements, or in conjunction with hardware products. When the Company’s products consist of more than one element, the product is considered to be a multiple element arrangement (MEA). When sold as a stand-alone element, the revenue is recognized upon shipment as discussed above. When sold as part of a MEA, revenue from the licensed software is recognized when the product with this embedded software is shipped to the customer. For either a single element transaction or a MEA, the Company allocates consideration to all deliverables based on their relative stand-alone selling prices. Amendments to ASC 605-25 establish a hierarchy to determine the stand-alone selling price as follows: ⋅ Vendor Specific Objective Evidence of the fair value (VSOE); ⋅ Third Party Evidence (TPE); and ⋅ Best Estimate of the Selling Price (BESP) Sales which constitute a MEA are accounted for by determining if the elements can be accounted for as separate accounting units, and if so, by applying values to those units, per the hierarchy above. If VSOE is not available, management estimates the fair selling price using historical pricing for similar items, in conjunction with current pricing and discount policies. Revenue from licensed software is recognized upon shipment and in accordance with industry-specific software recognition accounting guidance. Software updates that will be provided free of charge are evaluated on a case-by-case basis to determine whether they meet the definition of an upgrade and create a multiple element arrangement. The consideration allocated to the unspecified software upgrade rights and non-software services is deferred and recognized ratably over the 24-month estimated life of the devices. The Company’s BESP for the unspecified software upgrade right and non-software services is $ 25 40 Refer to Recent Accounting Pronouncements later in this Note for the expected future impact of updated FASB accounting guidance. These amounts represent deferred revenue against unfulfilled deliverables of multiple-element products, including unspecified post-delivery support and software updates. Cost of Product Revenues Cost of product revenue includes the direct and allocated indirect costs of products sold to customers. Direct costs include labor, materials, reserves for estimated warranty expenses, and other costs incurred directly, or charged to us by our contract manufacturers in the manufacture of these products. Indirect costs include labor, manufacturing overhead, and other costs associated with operating our manufacturing capabilities and capacity. Manufacturing overhead includes the costs of procuring, inspecting and storing material, facility and other costs, and is allocated to cost of product revenue based on the proportion of indirect labor which supported production activities. The cost of product revenue can fluctuate significantly from period to period, depending on the product mix and volume, the level of manufacturing overhead expense and the volume of direct material purchased. Cost of Engineering Services Revenues Cost of contract revenue includes both the direct and allocated indirect costs of performing on contracts and producing prototype units. Direct costs include labor, materials and other costs incurred directly in producing prototype units and product deliveries or performing on a contract. Indirect costs include labor and other costs associated with operating our research and development department based on the level of effort supporting the development activity. Cost of contract revenue is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. Fixed assets are stated at cost. Depreciation of fixed assets is provided for using the straight-line method over the following estimated useful lives: Computers and Purchased Software 3 Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 Tooling 3 Furniture and Equipment 5 Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized and depreciated over their expected useful life. The Company capitalizes the costs of obtaining its patents and registration of trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 The Company capitalizes the costs of obtaining or developing its software once technological feasibility has been determined by management. Such costs are accumulated and capitalized and projects can take several years to complete. Unsuccessful or discontinued software projects are written off and expensed in the fiscal period where the software development effort is abandoned or discontinued. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Once the product is available for general release, accumulated costs are amortized over the life of the asset. The amortization of these costs is included in cost of revenue over the estimated life of the products, which currently is estimated as 3 Licenses The Company capitalizes the costs of acquiring licenses and prepaid royalties. They are amortized on either a per unit basis or straight line over the life of the license. In some cases, future royalties are subject to annual limits. The Company at least annually assesses all of its long-lived assets for impairment when events or circumstances indicate their carrying amounts may not be recoverable, in accordance with FASB ASC Topic 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets.” There was no impairment charge in 2017. In 2016, an impairment charge of $ 20,506 13,222 Research and Development Research and development costs are expensed as incurred consistent with the guidance of FASB ASC Topic 730, “Research and Development,” and include employee related costs, office expenses, third party design and engineering services, and new product prototyping costs. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in net sales and cost of sales, respectively. The Company provides for the estimated returns under warranty and the costs of fulfilling our obligations under product warranties at the time the related revenue is recognized. The Company estimates the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific warranty terms and conditions vary depending upon the country in which we do business, but generally include parts and labor over a period generally ranging from one to two years from the date of product shipment. The Company provides a reserve for expected future warranty returns at the time of product shipment or produces over-builds to cover replacements. We regularly reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary each quarter end, based on historical experience of warranty claims and costs. Customer deposits represent money the Company has received in advance of providing a product or engineering services to a customer. All such deposits are short term in nature as the Company delivers the product, unfulfilled portions or engineering services to the customer before the end of its next annual fiscal period. These deposits are credited to the customer against product deliveries or at the completion of the customer’s order. Advertising costs are expensed as incurred and recorded in “Selling and Marketing” in the Consolidated Statements of Operations. Advertising expense for the years ended December 31, 2017, 2016 and 2015 amounted to $ 1,386,977 1,279,998 432,325 The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes.” Accordingly, the Company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. A valuation allowance is established for deferred tax assets in amounts for which realization is not considered more likely than not to occur. The Company reports any interest and penalties accrued relating to uncertain income tax positions as a component of the income tax provision. Basic earnings per share is computed by dividing the net income (loss) less accrued dividends on any outstanding preferred stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise of all dilutive employee stock options and warrants applying the treasury stock method promulgated by FASB ASC Topic 260, “Earnings Per Share” and the conversion of any outstanding convertible preferred shares or notes payable that are-in-the-money, applying the as-if-converted method. However, if the assumed exercise of stock options and warrants and the conversion of any preferred shares or convertible notes payable are anti-dilutive, basic and diluted earnings per share are the same for all periods. As a result of the net losses generated in 2017, 2016 and 2015, all outstanding instruments would be antidilutive. As of December 31, 2017, 2016 and 2015, there were 7,657,756 7,227,738 7,475,623 The Company accounts for share-based compensation to employees and directors in accordance with FASB ASC Topic 718 “Compensation Stock Expense,” which requires that compensation expense be recognized in the consolidated financial statements for share-based awards based on the grant-date fair value using a Black-Scholes valuation model of those awards. The Company uses the fair market value of our common stock on the date of each option grant based on the market price of the Company’s common shares. Stock-based compensation expense includes estimates of forfeitures, option lives, and stock price volatility, and is recognized over the requisite service period of the awards on a straight-line or graded vesting basis, which is generally commensurate with the vesting term. Stock-based compensation expense associated with stock option grants for the years ended December 31, 2017, 2016 and 2015 was $ 1,355,522 756,928 568,848 FASB ASC Topic 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. In accordance with ASC 815-10-25 Derivatives and Hedging Significant unobservable inputs are used in the fair value measurement of the Company’s derivative liability. The primary input factors driving the economic or fair value of the derivative liabilities related to the warrants and convertible notes are the stock price of the Company’s shares, the price volatility of the shares, reset events, and exercise behavior. An important valuation input factor used in determining fair value was the expected volatility of observed share prices and the probability of projected resets in warrant exercise and note conversion prices from financing events before each security’s maturity. For exercise behavior, the Company assumed that without a target price of 2 times the projected reset price or higher, the holders of the warrants and convertible notes would hold to maturity. In determining the fair value of the derivatives it was assumed that the Company’s business would be conducted as a going concern and that holding to maturity was reasonable. Further, the January 2, 2015 Series A Preferred financing reduced the expected probability to near zero for price resets from financing events. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: o Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; o Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and o Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The new standard is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. We do not expect the adoption of ASU 2017-09 to have a material impact on our consolidated financial statements and related disclosures because we do not anticipate any changes to our share-based payment plans. In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-18 (ASU 2016-18), Restricted Cash. The standard requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The new guidance shall be applied using a retrospective approach. We do not expect the implementation of this standard to have a material effect on our financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. Recognition, measurement and presentation of expenses and cash flows from a lease by a lessee have not significantly changed from previous guidance. The amendments also require qualitative disclosures along with specific quantitative disclosures. The new guidance will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The amendments must be applied on a modified retrospective basis. We anticipate the adoption of this standard will have a material impact on our financial statements. While we are continuing to assess all the potential impacts of the standard, we currently believe the most significant impact relates to our accounting for our office lease. Under the new guidance, the net present value of the obligation for our office lease will appear on the balance sheet. Currently, it is classified as an operating lease and payments are expensed in the periods incurred. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires entities to recognize revenues when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. Results for reporting periods beginning after January 1, 2018 will be presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting treatment under Topic 605. We recorded a net increase to opening retained earnings of less than $ 100,000 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 There are no other recent accounting pronouncements that are expected to have a material impact on the consolidated financial statements. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2 Inventories, Net December 31, December 31, Purchased Parts and Components $ 1,669,209 $ 1,990,026 Work in Process 25,090 454,120 Finished Goods 2,994,342 831,069 Less: Reserve for Obsolescence (836,324) (623,997) Net $ 3,852,317 $ 2,651,218 In addition to its normal Reserve for Obsolescence provision, the Company wrote-down to net realizable value all of its component and finished goods inventory related to its iWear Video Headphones, as well as accrued all related contractual obligations, resulting from the decision in the third quarter of 2017 to further reduce the suggested retail selling price to a price below the cost. The loss totaled $ 1,151,482 1,124,401 |
Fixed Assets, Net
Fixed Assets, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Fixed Assets, Net | Note 3 Fixed Assets, Net December 31, December 31, Tooling and Manufacturing Equipment $ 3,965,251 $ 2,702,468 Leaseholds 443,332 403,737 Computers and Purchased Software 646,272 585,795 Furniture and Equipment 1,322,405 1,359,522 6,377,260 5,051,522 Less: Accumulated Depreciation (2,252,794) (1,686,614) Fixed Assets, Net $ 4,124,466 $ 3,364,908 Total depreciation expense for fixed assets for the years ended December 31, 2017, 2016 and 2015 was $ 921,113 663,934 294,363 |
Patents and Trademarks, Net
Patents and Trademarks, Net | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Patents and Trademarks, Net | Note 4 Patents and Trademarks, Net December 31, December 31, Patents and Trademarks $ 1,325,905 $ 970,178 Less: Accumulated Amortization (512,131) (434,717) Patents and Trademarks, Net $ 813,774 $ 535,461 Total amortization expense for patents and trademarks for the years ended December 31, 2017, 2016 and 2015 was $ 77,415 106,734 86,478 88,000 20,506 44,371 23,865 13,222 21,954 8,732 |
Software Development Costs, Net
Software Development Costs, Net | 12 Months Ended |
Dec. 31, 2017 | |
Research and Development [Abstract] | |
Software Development Costs, Net | Note 5 Software Development Costs, Net December 31, December 31, Software Development Costs $ 859,351 $ 859,351 Less: Accumulated Amortization (859,351) (644,513) Additions 408,723 Software Development Costs, Net $ 408,723 $ 214,838 Total amortization expense for capitalized software development costs for the years ended December 31, 2017, 2016 and 2015 was $ 214,838 286,450 286,450 3 408,723 |
Licenses, Net
Licenses, Net | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of licenses,Net [Abstract] | |
Licenses, Net | Note 6 Licenses, Net December 31, December 31, Licenses $ 243,717 $ Less: Accumulated Amortization - Licenses, Net $ 243,717 $ The Company acquired two licenses in 2017. The first related to the renegotiation of an existing license at a cost of $ 114,967 10 The Company entered into Technology Acquisition Agreement where it acquired all the seller's right, title and interest in certain Transferred Intellectual Property (IP). Pursuant to the agreement, the Company paid approximately $ 75,702 25,000 128,750 25,000 50,000 200,000 There was no amortization expense related to licenses in the years ended December 31, 2017, 2016 and 2015. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Note 7 Accrued Expenses December 31, December 31, Accrued Wages and Related Costs $ 163,305 $ 119,472 Accrued Compensation 327,469 648,720 Accrued Professional Services 531,728 137,099 Accrued Warranty Obligations 167,503 41,132 Accrued Interest 171,435 375,560 Other Accrued Expenses 10,000 10,000 Total $ 1,371,440 $ 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 8 171,435 141,645 The Company has warranty obligations in connection with the sale of certain of its products. The warranty period for its products is generally one year except in certain European countries where it is two years for some of our products. The costs incurred to provide for these warranty obligations are estimated and recorded as an accrued liability at the time of sale. The Company estimates its future warranty costs based on product-based historical performance rates and related costs to repair. Accrued Warranty Obligations at December 31, 2014 $ 39,624 Reductions for Settling Warranties (67,858) Warranty Issued During Year 92,236 Accrued Warranty Obligations at December 31, 2015 64,002 Reductions for Settling Warranties (103,265) Warranty Issued During Year 80,395 Accrued Warranty Obligations at December 31, 2016 41,132 Reductions for Settling Warranties (157,035) Warranty Issued During Year 283,406 Accrued Warranty Obligations at December 31, 2017 $ 167,503 |
Derivative Liability and Fair V
Derivative Liability and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Liability and Fair Value Measurements | Note 8 Derivative Liability and Fair Value Measurements The Company recognized a derivative liability for the warrants to purchase shares of its common stock issued in connection with the equity offering and related debt conversions on August 5, 2013. These warrants have a cashless exercise provision and an exercise price that is subject to adjustment in the event of subsequent equity sales at a lower purchase price (subject to certain exceptions) along with full-ratchet anti-dilution provisions. In accordance with ASC 815-10-25 Derivatives and Hedging Accordingly, at the end of each quarterly reporting date the derivative fair market value is remeasured and adjusted to current market value. As at December 31, 2017 and 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 Series A Private Placement on January 2, 2015, each of the holders of notes issued by the Company on June 3, 2014 (the “June 2014 Notes”) agreed to irrevocably waive their rights to anti-dilution protection under Section 5(b) of the June 2014 Notes in the event the Company issues additional securities at a per share price lower than the conversion price of the June 2014 Notes (the “June 2014 Note Waiver”). As a result this derivative liability was reversed to zero and reclassified into stockholders’ equity under Additional Paid-In Capital. 2017: Total Level 1 Level 2 Level 3 Warrant Liability $ 152,927 $ $ $ 152,927 Total liabilities measured at fair value (Current Liabilities) $ 152,927 $ $ $ 152,927 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, 2014 $ 13,541,138 Reclassification of warrant exercises to Additional Paid-in Capital (2,855,463) Change in fair value for the period of warrant derivative liability 1,098,465 Reclassification of embedded debt conversion price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions (2,806,942) Reclassification of warrant exercise price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions (8,736,412) Fair value December 31, 2015 240,786 Reclassification of warrant exercises to Additional Paid-in Capital (32,911) Change in fair value for the period of warrant derivative liability (34,744) Fair value December 31, 2016 173,131 Reclassification of warrant exercises to Additional Paid-in Capital Change in fair value for the period of warrant derivative liability (20,204) Fair value December 31, 2017 $ 152,927 December 31, December 31, December 31, Assumptions for Pricing Model: Expected term in years 0.59 1.22 2.60 Volatility range for years 143 % 100 % 103 % Risk-free interest rate 1.76 % 1.47 % 1.06 % Expected annual dividends None None None Value of warrants outstanding: Fair value of warrants $ 152,927 $ 173,131 $ 240,786 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 9 Long-Term Debt December 31, December 31, Convertible, Senior Secured Notes payable. The principal was due June 3, 2017 and no payments were required prior to maturity. The notes carried a 5% annual interest rate, payable upon the notes’ maturity. Both the principal plus accrued interest were convertible into shares of the Company’s common stock at $2.25, subject to normal adjustments. The notes were 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 | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The Company files U.S. federal and various state and foreign tax returns. December 31, December 31, December 31, 2017 2016 2015 Pre-Tax (Loss) U.S. $ (19,680,720) $ (19,263,625) $ (13,425,887) Outside the U.S. 47,218 43,543 (1,591) Total Pre-Tax (Loss) $ (19,633,502) $ (19,250,082) $ (13,427,478) 2017 2016 2015 U.S. Income Taxes: Current Provision $ $ $ Deferred Provision 3,639,752 (5,963,589) (3,730,342) Valuation Allowance (3,639,752) 5,963,589 3,730,342 Income Taxes Outside the U.S.: Current Provision Deferred Provision 215,745 (197,907) Valuation Allowance (215,745) 197,907 State Income Taxes: Current Provision Deferred Provision (59,530) (75,442) (128,572) Valuation Allowance 59,530 75,442 128,572 Total Provision $ $ $ A reconciliation of the statutory U.S. federal income tax rate to the effective rates for the years ended December 31, 2017, 2016 and 2015 is as follows: 2017 2016 2015 Federal Income Tax at Statutory Rate 34.0 34.0 34.0 State Tax Provision, Net of Federal Benefit 0.3 0.3 0.3 Foreign Income Taxed at Other Than 34% (0.7) Change in Corporate Tax Rates from 34% to 21% (52.9) Loss on Derivative Valuation (6.3) Other (0.7) 0.5 0.7 Effective Tax Rate (19.3) 34.1 28.7 Change in Valuation Allowance 19.3 (34.1) (28.7) Net Effective Tax Rate December 31, December 31, December 31, 2017 2016 2015 Deferred Tax Assets: Net Operating Loss Carry-forwards $ 16,167,791 $ 19,752,311 $ 15,027,603 Tax Credit Carry-forwards 2,404,490 2,398,817 1,823,661 Inventory Valuation Adjustment 675,830 622,168 161,944 Officer’s Compensation 86,670 271,095 141,491 Loss from Foreign Operations 197,907 Other 108,734 44,372 89,783 Total Deferred Tax Assets 19,443,515 23,286,670 17,244,482 Deferred Tax Liabilities: Income from Foreign Operations 17,838 Other 11,789 Total Deferred Tax Liabilities 29,627 76,815 271,565 Net Deferred Tax Assets Before Valuation Allowance $ 19,413,888 $ 23,209,855 $ 16,972,917 Valuation Allowance (19,413,888) (23,209,855) (16,972,917) Net Deferred Tax Assets $ $ $ As of December 31, 2017, the Company has approximately $ 76 2.4 As a result of the assessment of the FASB ASC 740-10 (Prior Authoritative Literature: FASB Interpretation No. 48 (“FIN 48”), Accounting for Uncertainty in Income Taxes An Interpretation of FASB Statement No. 109), the Company has no unrecognized tax benefits. By statute, tax years 2013-2017 are open to examination by the major taxing jurisdictions to which the Company is subject. FASB ASC 740 “Accounting for Income Taxes”, requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on differing treatment of items for financial reporting and income tax reporting purposes. The deferred tax balances are adjusted to reflect tax rates by tax jurisdiction, based on currently enacted tax laws, which will be in effect in the years in which the temporary differences are expected to reverse. In light of the historic losses of the Company, a 100% valuation allowance has been recorded to fully offset any benefit associated with the net deferred tax assets, for which realization is not considered more likely than not to occur The Tax Cuts and Jobs Act (the “Tax Act”) enacted on December 22, 2017 significantly lowered the corporate income tax rate to a flat 21 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Note 11 Capital Stock Preferred stock The Board of Directors is authorized to establish and designate different series of preferred stock and to fix and determine the voting powers and other special rights and qualifications of such series. A total of 5,000,000 49,626 On January 2, 2015 (the “Series A Closing Date”), we entered into and closed a Series A Preferred Stock Purchase Agreement (the “Series A Purchase Agreement”) with Intel Corporation (the “Series A Purchaser”), pursuant to which we issued and sold to the Series A Purchaser, an aggregate of 49,626 500 24,813,000 Each share of Series A Preferred Stock is entitled to receive dividends at a rate of 6 4,849,063 1,000 40 20 For as long as at least 25 60 The Series A Purchaser has the right to participate in any proposed issuance by the Company of its securities, subject to certain exceptions (the “Participation Right”). In the event the Series A Purchaser is not afforded the opportunity to exercise its Participation Right, the Series A Purchaser will have the right, but not the obligation, up to two times per calendar year, to acquire additional securities from the Company in such amount as is sufficient to maintain the Series A Purchaser’s ownership percentage in the Company, calculated immediately prior to such applicable financing, at a purchase price equal to the per share price of the Company’s securities in such applicable financing. In connection with the Series A Private Placement, the Company entered into an investor’s rights agreement with the Series A Purchaser, pursuant to which the Company agreed to file a “resale” registration statement with the Securities and Exchange Commission (the “SEC”) covering all shares of common stock issuable upon conversion of the Series A Preferred Stock sold in the Series A Private Placement on or before February 14, 2015. The Company filed the registration statement on February 12, 2015 and the registration statement was declared effective by the SEC on February 17, 2015. Common Stock The Company’s authorized common stock consists of 100,000,000 0.001 24,276,275 19,569,247 1,500,000 5.75 7,978,321 10,000 6.10 On December 19, 2017, the Company closed a public offering of 2,066,116 6.05 11,532,502 three-year 7.00 On July 11, 2016, the Company closed its public offering of 1,150,000 5.75 6,612,500 2,000,000 7.25 14,500,000 19,238,015 |
Stock Warrants
Stock Warrants | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Stock Warrants | Note 12 Stock Warrants December 31, December 31, December 31, Warrants Outstanding, Beginning of Year 401,859 535,091 5,236,660 Exercised During the Year (250,009) (133,232) (4,746,755) Issued During the Year 1,033,062 - 60,000 Forfeited During the Year - - (14,814) Warrants Outstanding, End of Year 1,184,912 401,859 535,091 The outstanding warrants as of December 31, 2017 expire from March 21, 2018 to June 18, 2021. The weighted average remaining term of the warrants is 3.1 6.44 1.3 2.41 2.3 2.43 During the year ended December 31, 2017 a total of 250,009 168,000 111,232 74,621 22,000 60,750 4,178,267 3,559,783 568,488 1,272,627 Management completed a derivative analysis on the 1,033,062 |
Stock Option Plans
Stock Option Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Plans | Note 13 Stock Option Plans The Company has the following Stock Option Plans (“Plans”) that allow for the granting of both incentive stock options or ISOs, which can result in potentially favorable tax treatment to the participant, and non-statutory stock options. The Company’s 2014 Equity Incentive Plan (the “2014 Plan”) was approved by the stockholders of the Company on June 26, 2014. The Company will no longer issue any options under the 2007 and 2009 Plans. The 2014 Plan has an “evergreen provision”, under which the maximum number of shares of common stock that may be issued under the 2014 Plan was initially 1,000,000 10 2,427,628 The exercise price per share subject to an option is determined by the administrator, but in the case of an ISO must not be less than the fair market value of a share of our common stock on the date of grant and in the case of a non-statutory stock option must not be less than 100 Under the 2014 Plan, the Company may grant stock options, stock appreciation rights, performance awards of stock and/or cash, and stock awards of restricted stock. 2007 2009 2014 Total Outstanding as of December 31, 2015 37,447 120,842 864,500 1,022,789 Available for future issuance under plan - - 744,295 744,295 Total authorized by plan 37,447 120,842 1,608,795 1,767,084 Outstanding as of December 31, 2016 21,977 132,771 929,550 1,084,298 Available for future issuance under plan 1,027,375 1,027,375 Totals authorized by plan 21,977 132,771 1,956,925 2,111,673 Outstanding as of December 31, 2017 10,665 117,094 1,382,485 1,510,244 Available for future issuance under plan 1,045,143 1,045,143 Totals authorized by plan 10,665 117,094 2,427,628 2,555,387 The 2014 Plan gives the Board of Directors of the Company the ability to determine vesting periods for all stock incentives granted under the 2014 Plan, and allows option terms to be up to ten years from the original grant date. Employees’ incentive stock options must vest at a minimum rate of 20 50 Weighted Weighted Number of Average Remaining Life Outstanding at December 31, 2014 720,551 $ 4.46 8.56 Granted 374,000 5.67 Exercised (15,833) 2.60 Expired or Forfeited (55,929) 8.12 Outstanding at December 31, 2015 1,022,789 $ 4.59 7.56 Granted 116,750 6.60 Exercised (10,450) 3.46 Expired or Forfeited (44,791) 3.87 Outstanding at December 31, 2016 1,084,298 $ 4.76 7.57 Granted 534,500 5.74 Exercised (63,187) 2.89 Expired or Forfeited (45,367) 8.30 Outstanding at December 31, 2017 1,510,244 $ 5.04 7.58 As of December 31, 2017, there were 797,861 4.65 6.4 712,383 5.48 8.7 As of December 31, 2016, there were 613,665 4.83 7.0 470,633 4.67 8.4 As of December 31, 2015, there were 424,688 5.34 7.4 598,101 4.05 7.4 The aggregate intrinsic value of the options outstanding as of December 31, 2017, 2016 and 2015 was approximately $ 3,517,878 2,776,068 3,449,805 The Black-Scholes-Merton option pricing model was used to estimate the fair value of share-based awards under FASB ASC Topic 718. The Black-Scholes-Merton option pricing model incorporates various and highly subjective assumptions, including expected term and share price volatility. For valuation purposes, stock option awards were categorized into two groups, stock option grants to employees and stock option grants to members of the Board of Directors. The expected term of options granted was estimated to be the average of the vesting term, historical exercise and forfeiture rates, and the contractual life of the option. The share price volatility at the grant date is estimated using historical stock prices based upon the expected term of the options granted. The risk-free interest rate assumption is determined using the rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. Cash dividends have never been paid and are not anticipated to be paid in the foreseeable future. Therefore, the assumed expected dividend yield is zero. The following summary table shows the assumptions used to compute the fair value of stock options granted during 2017, 2016 and 2015 and their estimated value: December 31, 2017 2016 2015 Assumptions for Black-Scholes: Expected term in years 6.5 to 6.8 7.9 6.0 to 7.9 Volatility 122.8% to 133% 103.6% to 109.7% 114.4% to 113.5% Risk-free interest rate 1.98% to 2.30% 1.27% to 1.68% 1.74% to 2.02% Expected annual dividends None None None Value of options granted: Number of options granted 534,500 116,750 374,000 Weighted average fair value per share $ 5.24 $ 5.73 $ 4.50 Fair value of options granted $ 2,803,329 $ 669,435 $ 1,684,179 FASB ASC Topic 718 requires pre-vesting option forfeitures at the time of grant to be estimated and periodically revised in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense is recorded only for those awards expected to vest using an estimated forfeiture rate based on historical pre-vesting forfeiture data. Unrecognized stock-based compensation expense was $ 3,517,878 3 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments | Note 14 Commitments Purchase commitments At December 31, 2017, we have approximately $ 7 Adverse purchase commitments We have periodically entered into noncancelable purchase contracts in order to ensure the availability of materials to support production of our products. We continuously assess our outstanding commitments and recognize a loss on purchase commitments, when required, if such commitments are in excess of our product needs or the costs are not expected to be recoverable. As of December 31, 2017, such commitments are immaterial. Lease commitments The Company has signed several lease agreements, with the largest being for its new office and manufacturing space under an operating lease that commenced October 3, 2015 October 3, 2020 335,248 Total Year Ending Lease 2018 $ 411,135 2019 403,730 2020 363,881 2021 - 2022 - Total $ 1,178,746 For the lease agreements described above, the Company is required to pay the pro rata share of the real property taxes and assessments, expenses and other charges associated with these facilities. Rent expense for the years ended December 31, 2017, 2016 and 2015 totaled $ 461,246 482,147 186,471 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 15 Employee Benefit Plans The Company has a Section 401(k) Savings Plan which covers employees who meet certain age and length of service requirements. To date the plan is comprised of 100 |
Litigation
Litigation | 12 Months Ended |
Dec. 31, 2017 | |
Litigation Disclosure [Abstract] | |
Litigation | Note 16 Litigation The Company is currently not involved in any actual or pending legal proceeding or litigation and we are not aware of any such proceedings contemplated by or against us or our property. |
Geographic and Other Financial
Geographic and Other Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Segments, Geographical Areas [Abstract] | |
Geographic and Other Financial Information (Unaudited) | Note 17 Geographic and Other Financial Information (Unaudited) Geographic Financial Information (Unaudited) By Continent and Region: Fiscal Year 2017 2016 2015 Revenue % of Total Revenue % of Total Revenue % of Total Asia-Pacific $ 1,927 35 % $ 493 23 % $ 250 9 % Europe 1,892 34 % 649 31 % 334 12 % North America 1,687 30 % 981 46 % 2,161 79 % Others 32 1 % 4 0 % 5 0 % Total Revenues $ 5,538 100 % $ 2,127 100 % $ 2,750 100 % By Country: Fiscal Year 2017 2016 2015 Revenue % of Total Revenue % of Total Revenue % of Total US $ 1,618 29 % $ 962 45 % $ 2,147 78 % France 429 8 % 211 10 % 44 2 % Germany 526 9 % 263 12 % 129 5 % Japan 1,340 24 % 288 14 % 217 8 % United Kingdom 529 10 % 46 2 % 32 1 % Others 1,096 20 % 357 17 % 181 6 % Total Revenues $ 5,538 100 % $ 2,127 100 % $ 2,750 100 % The Company does not maintain significant amounts of long-lived assets outside of the United States. Customer Concentrations Toshiba Client Solutions Co. Ltd. (Toshiba) of Japan represented 18 10 18 Toshiba represented 25 100 10 89 |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Fiscal Year 2017 December 31, September 30, June 30, March 31, Revenue $ 1,597 $ 1,405 $ 1,325 $ 1,211 Gross profit (loss) (304) (92) (429) 149 Net loss (5,879) (5,502) (4,070) (4,182) Net loss per share, basic and diluted (0.29) (0.28) (0.22) (0.23) Net loss attributable to common stockholders (6,321) (5,938) (4,494) (4,595) Fiscal Year 2016 December 31, September 30, June 30, March 31, Revenue $ 620 $ 583 $ 561 $ 364 Gross profit (loss) (562) (237) (126) (239) Net loss (6,335) (5,036) (4,103) (3,776) Net loss per share, basic and diluted (0.37) (0.32) (0.28) (0.26) Net loss attributable to common stockholders (6,751) (5,446) (4,503) (4,170) |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 19 Related Party Transactions The Company has accrued compensation owed to officers of the Company for services rendered that remain outstanding. These amounts are not subject to a fixed repayment schedule and they bear interest at a rate of 8 327,469 648,720 358,719 171,435 141,645 97,801 52,221 43,844 35,722 During the year ended December 31, 2016, $ 54,023 3 15 2,998 481,920 18 290,750 0 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 20 Subsequent Events Recent Warrant Exercises : Since January 1, 2018, the Company has received cashless exercises of 10,000 7,428 17,500 39,375 Sale of Common Stock: On January 24, 2018, the Company entered into a securities purchase agreement with the purchasers set forth on the signature pages thereto for the purchase and sale of an aggregate of 3,000,000 1,200,000 10.00 0.4 30,000,000 10.00 |
Schedule II -Valuation And Qual
Schedule II -Valuation And Qualification Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts | Schedule II Valuation and Qualifying Accounts (in thousands) Description Balance at Charged to Deductions Balance at End For the Year Ended December 31, 2015 Allowances deducted from assets Doubtful Accounts $ - $ - $ - $ - Inventory 666 (179) (a) - 487 Total allowances deducted from assets $ 666 $ (179) $ - $ 487 For the Year Ended December 31, 2016 Allowances deducted from assets Doubtful Accounts $ - $ - $ - $ - Inventory 487 137 (a) - 624 Total allowances deducted from assets $ 487 $ 137 $ - $ 624 For the Year Ended December 31, 2017 Allowances deducted from assets Doubtful Accounts $ - $ 29 $ - $ 29 Inventory 624 212 (a) - 836 Total allowances deducted from assets $ 624 $ 241 $ - $ 865 (a) Net change in inventory allowance, excluding iWear net realizable writedown. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Operations | Vuzix Corporation (the Company) was formed in 1997 under the laws of the State of Delaware and maintains its corporate offices in Rochester, New York. The Company is engaged in the design, manufacture, marketing and sale of wearable display devices, that are generally worn like eyeglasses, and are also referred to as head mounted displays (or HMDs), in the form of Augmented Reality (AR) glasses and Smart Glasses. Our wearable display products provide virtual large high-resolution screens, fit in a user’s pocket or purse and can be viewed practically anywhere, anytime. We produce and sell two main types of wearable display products: Smart Glasses for a variety of enterprise and commercial users and applications, including AR; and Video Viewing glasses, for on-the-go users as mobile displays for entertainment and social media use. Our products are available with varying features, including with and without applications running computer processors, and are offered as either monocular or binocular display systems. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiary, Vuzix Europe. All significant inter-company transactions have been eliminated. Certain prior year amounts have been reclassified to be consistent with current year presentation. |
Segment Data, Geographic Information and Significant Customers | Segment Data, Geographic Information and Significant Customers The Company is not organized by market and is managed and operated as one business. A single management team that reports to the chief operating decision maker comprehensively manages the entire business. The Company does not operate any material separate lines of business or separate business entities. Accordingly, the Company does not accumulate discrete information, other than product revenue and material costs, with respect to separate product lines and does not have separately reportable segments as defined by FASB ASC Topic 280, “Disclosures about Segments of an Enterprise and Related Information”. Refer to Note 17 Geographic Financial Information, Significant Customers and other financial information. |
Foreign Currency Transactions | Foreign Currency Transactions The British Pound is the functional currency of the Company’s foreign subsidiary. Transactions are recorded at the functional currency of each subsidiary. Gains and losses arising upon settlement of foreign currency transactions are included in the determination of net loss. The financial statements of the foreign subsidiary are translated to the US dollar at each reporting date. The cumulative translation adjustment at December 31, 2017, 2016 and 2015 was not material, as well as from inception of UK subsidiary. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at year end and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk The Company maintains its cash in bank deposit accounts, which at times may exceed federally insured limits. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents can include highly liquid investments with original maturities of three months or less. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments primarily consists of cash and cash equivalents, accounts receivable, accounts payable, long-term debt, customer deposits, accrued expenses, and income taxes payable. As of the consolidated balance sheet dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented due to both the short maturities of these instruments and that the interest rates on borrowing approximate those that would have been available for loans for similar remaining maturity and risk profiles. |
Accounts Receivable | The Company carries its trade accounts receivable at invoice amount less an allowance for doubtful accounts. The Company establishes an allowance for uncollectible trade accounts receivable based on the age of outstanding invoices and management’s evaluation of collectability of outstanding balances. These provisions are established when the aging of outstanding amounts exceeds allowable terms and are re-evaluated at each quarter end for adequacy. In determining the adequacy of the provision, the Company considers known uncollectible or at risk receivables. There was an allowance of $ 29,960 |
Accrued Project Revenue | Accrued Project Revenue The Company carries its accrued project revenue based on the percentage of completion on the project measured using the input method based upon costs incurred to-date as a percentage of total expected costs to complete the project. |
Inventories | Inventories Inventories are valued at the lower of cost or net realizable value using the weighted average first-in, first-out method. The Company includes labor and overhead costs in its inventory valuation costing. The Company records provisions for excess, obsolete or slow moving inventory based on changes in customer demand, technology developments or other economic factors. The Company’s products have product life cycles that range on average from two to three years currently. At both the product introduction and product discontinuation stage, there is a higher degree of risk of inventory obsolescence. The provision for obsolete and excess inventory is evaluated for adequacy at each quarter end. The estimate of the provision for obsolete and excess inventory is partially based on expected future product sales, which are difficult to forecast for certain products. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from product sales in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 605 “Revenue Recognition ” Revenue from any engineering consulting and other services is recognized at the time the services are rendered. The Company accounts for its longer-term development contracts, which to date have all been firm fixed-priced contracts, on the percentage-of-completion method, whereby income is recognized as work on contracts progresses, but estimated losses on contracts in progress are charged to operations immediately. The percentage-of-completion is determined using the cost-to-cost method. To date, all such contracts have been less than one calendar year in duration. The Company recognizes software license revenue under ASC 985-605 “Software Revenue Recognition” and under ASC 605-25 “Revenue Arrangements with Multiple Deliverables”, and related interpretations, as amended. Licensed software may be sold as a stand-alone element, with other software elements, or in conjunction with hardware products. When the Company’s products consist of more than one element, the product is considered to be a multiple element arrangement (MEA). When sold as a stand-alone element, the revenue is recognized upon shipment as discussed above. When sold as part of a MEA, revenue from the licensed software is recognized when the product with this embedded software is shipped to the customer. For either a single element transaction or a MEA, the Company allocates consideration to all deliverables based on their relative stand-alone selling prices. Amendments to ASC 605-25 establish a hierarchy to determine the stand-alone selling price as follows: ⋅ Vendor Specific Objective Evidence of the fair value (VSOE); ⋅ Third Party Evidence (TPE); and ⋅ Best Estimate of the Selling Price (BESP) Sales which constitute a MEA are accounted for by determining if the elements can be accounted for as separate accounting units, and if so, by applying values to those units, per the hierarchy above. If VSOE is not available, management estimates the fair selling price using historical pricing for similar items, in conjunction with current pricing and discount policies. Revenue from licensed software is recognized upon shipment and in accordance with industry-specific software recognition accounting guidance. Software updates that will be provided free of charge are evaluated on a case-by-case basis to determine whether they meet the definition of an upgrade and create a multiple element arrangement. The consideration allocated to the unspecified software upgrade rights and non-software services is deferred and recognized ratably over the 24-month estimated life of the devices. The Company’s BESP for the unspecified software upgrade right and non-software services is $ 25 40 Refer to Recent Accounting Pronouncements later in this Note for the expected future impact of updated FASB accounting guidance. |
Unearned Revenue | Unearned Revenue These amounts represent deferred revenue against unfulfilled deliverables of multiple-element products, including unspecified post-delivery support and software updates. |
Cost of Product Revenues | Cost of Product Revenues Cost of product revenue includes the direct and allocated indirect costs of products sold to customers. Direct costs include labor, materials, reserves for estimated warranty expenses, and other costs incurred directly, or charged to us by our contract manufacturers in the manufacture of these products. Indirect costs include labor, manufacturing overhead, and other costs associated with operating our manufacturing capabilities and capacity. Manufacturing overhead includes the costs of procuring, inspecting and storing material, facility and other costs, and is allocated to cost of product revenue based on the proportion of indirect labor which supported production activities. The cost of product revenue can fluctuate significantly from period to period, depending on the product mix and volume, the level of manufacturing overhead expense and the volume of direct material purchased. |
Cost of Engineering Services Revenues | Cost of Engineering Services Revenues Cost of contract revenue includes both the direct and allocated indirect costs of performing on contracts and producing prototype units. Direct costs include labor, materials and other costs incurred directly in producing prototype units and product deliveries or performing on a contract. Indirect costs include labor and other costs associated with operating our research and development department based on the level of effort supporting the development activity. Cost of contract revenue is determined by the level of direct and indirect costs incurred, which can fluctuate substantially from period to period. |
Fixed Assets | Fixed Assets Fixed assets are stated at cost. Depreciation of fixed assets is provided for using the straight-line method over the following estimated useful lives: Computers and Purchased Software 3 Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 Tooling 3 Furniture and Equipment 5 Repairs and maintenance costs are expensed as incurred. Asset betterments are capitalized and depreciated over their expected useful life. |
Patents and Trademarks | Patents and Trademarks The Company capitalizes the costs of obtaining its patents and registration of trademarks. Such costs are accumulated and capitalized during the filing periods, which can take several years to complete. Successful applications that result in the granting of a patent or trademark are then amortized over 15 |
Software Development Costs | Software Development Costs The Company capitalizes the costs of obtaining or developing its software once technological feasibility has been determined by management. Such costs are accumulated and capitalized and projects can take several years to complete. Unsuccessful or discontinued software projects are written off and expensed in the fiscal period where the software development effort is abandoned or discontinued. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Once the product is available for general release, accumulated costs are amortized over the life of the asset. The amortization of these costs is included in cost of revenue over the estimated life of the products, which currently is estimated as 3 |
Licenses | Licenses The Company capitalizes the costs of acquiring licenses and prepaid royalties. They are amortized on either a per unit basis or straight line over the life of the license. In some cases, future royalties are subject to annual limits. |
Long-Lived Assets | The Company at least annually assesses all of its long-lived assets for impairment when events or circumstances indicate their carrying amounts may not be recoverable, in accordance with FASB ASC Topic 360-10, “Accounting for the Impairment or Disposal of Long-Lived Assets.” There was no impairment charge in 2017. In 2016, an impairment charge of $ 20,506 13,222 |
Research and Development | Research and Development Research and development costs are expensed as incurred consistent with the guidance of FASB ASC Topic 730, “Research and Development,” and include employee related costs, office expenses, third party design and engineering services, and new product prototyping costs. Costs incurred internally in researching and developing a computer software product are charged to expense until technological feasibility has been established for the product. |
Shipping and Handling Costs | Shipping and Handling Costs Amounts charged to customers and costs incurred by the Company related to shipping and handling are included in net sales and cost of sales, respectively. |
Provision for Future Warranty Costs | Provision for Future Warranty Costs The Company provides for the estimated returns under warranty and the costs of fulfilling our obligations under product warranties at the time the related revenue is recognized. The Company estimates the costs based on historical and projected product failure rates, historical and projected repair costs, and knowledge of specific product failures (if any). The specific warranty terms and conditions vary depending upon the country in which we do business, but generally include parts and labor over a period generally ranging from one to two years from the date of product shipment. The Company provides a reserve for expected future warranty returns at the time of product shipment or produces over-builds to cover replacements. We regularly reevaluate our estimates to assess the adequacy of the recorded warranty liabilities and adjust the amounts as necessary each quarter end, based on historical experience of warranty claims and costs. |
Customer Deposits | Customer Deposits Customer deposits represent money the Company has received in advance of providing a product or engineering services to a customer. All such deposits are short term in nature as the Company delivers the product, unfulfilled portions or engineering services to the customer before the end of its next annual fiscal period. These deposits are credited to the customer against product deliveries or at the completion of the customer’s order. |
Advertising | Advertising Advertising costs are expensed as incurred and recorded in “Selling and Marketing” in the Consolidated Statements of Operations. Advertising expense for the years ended December 31, 2017, 2016 and 2015 amounted to $ 1,386,977 1,279,998 432,325 |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with FASB ASC Topic 740-10, “Income Taxes.” Accordingly, the Company provides deferred income tax assets and liabilities based on the estimated future tax effects of differences between the financial and tax bases of assets and liabilities based on currently enacted tax laws. A valuation allowance is established for deferred tax assets in amounts for which realization is not considered more likely than not to occur. The Company reports any interest and penalties accrued relating to uncertain income tax positions as a component of the income tax provision. |
Net Loss Per Share | Net Loss Per Share Basic earnings per share is computed by dividing the net income (loss) less accrued dividends on any outstanding preferred stock by the weighted average number of common shares outstanding for the period. Diluted earnings per share calculations reflect the assumed exercise of all dilutive employee stock options and warrants applying the treasury stock method promulgated by FASB ASC Topic 260, “Earnings Per Share” and the conversion of any outstanding convertible preferred shares or notes payable that are-in-the-money, applying the as-if-converted method. However, if the assumed exercise of stock options and warrants and the conversion of any preferred shares or convertible notes payable are anti-dilutive, basic and diluted earnings per share are the same for all periods. As a result of the net losses generated in 2017, 2016 and 2015, all outstanding instruments would be antidilutive. As of December 31, 2017, 2016 and 2015, there were 7,657,756 7,227,738 7,475,623 |
Stock-Based Compensation Expense | Stock-Based Compensation Expense The Company accounts for share-based compensation to employees and directors in accordance with FASB ASC Topic 718 “Compensation Stock Expense,” which requires that compensation expense be recognized in the consolidated financial statements for share-based awards based on the grant-date fair value using a Black-Scholes valuation model of those awards. The Company uses the fair market value of our common stock on the date of each option grant based on the market price of the Company’s common shares. Stock-based compensation expense includes estimates of forfeitures, option lives, and stock price volatility, and is recognized over the requisite service period of the awards on a straight-line or graded vesting basis, which is generally commensurate with the vesting term. Stock-based compensation expense associated with stock option grants for the years ended December 31, 2017, 2016 and 2015 was $ 1,355,522 756,928 568,848 |
Derivative Liability and Fair Value Measurements | FASB ASC Topic 820, “Fair Value Measurements and Disclosures” defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. ASC 820 permits an entity to measure certain financial assets and financial liabilities at fair value with changes in fair value recognized in earnings each period. In accordance with ASC 815-10-25 Derivatives and Hedging Significant unobservable inputs are used in the fair value measurement of the Company’s derivative liability. The primary input factors driving the economic or fair value of the derivative liabilities related to the warrants and convertible notes are the stock price of the Company’s shares, the price volatility of the shares, reset events, and exercise behavior. An important valuation input factor used in determining fair value was the expected volatility of observed share prices and the probability of projected resets in warrant exercise and note conversion prices from financing events before each security’s maturity. For exercise behavior, the Company assumed that without a target price of 2 times the projected reset price or higher, the holders of the warrants and convertible notes would hold to maturity. In determining the fair value of the derivatives it was assumed that the Company’s business would be conducted as a going concern and that holding to maturity was reasonable. Further, the January 2, 2015 Series A Preferred financing reduced the expected probability to near zero for price resets from financing events. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). These tiers include: o Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; o Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and o Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). In May 2017, the Financial Accounting Standards Board (FASB) issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The new standard is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. We do not expect the adoption of ASU 2017-09 to have a material impact on our consolidated financial statements and related disclosures because we do not anticipate any changes to our share-based payment plans. In November 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update 2016-18 (ASU 2016-18), Restricted Cash. The standard requires restricted cash and cash equivalents to be included with cash and cash equivalents on the statement of cash flows. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. The new guidance shall be applied using a retrospective approach. We do not expect the implementation of this standard to have a material effect on our financial statements. In February 2016, the FASB issued Accounting Standards Update 2016-02 (ASU 2016-02), Leases (Topic 842). ASU 2016-02 requires lessees to recognize a right-of-use asset and lease liability in the balance sheet for all leases, including operating leases, with terms of more than twelve months. Recognition, measurement and presentation of expenses and cash flows from a lease by a lessee have not significantly changed from previous guidance. The amendments also require qualitative disclosures along with specific quantitative disclosures. The new guidance will be effective for fiscal years beginning after December 15, 2018, and interim periods within those years, with early adoption permitted. The amendments must be applied on a modified retrospective basis. We anticipate the adoption of this standard will have a material impact on our financial statements. While we are continuing to assess all the potential impacts of the standard, we currently believe the most significant impact relates to our accounting for our office lease. Under the new guidance, the net present value of the obligation for our office lease will appear on the balance sheet. Currently, it is classified as an operating lease and payments are expensed in the periods incurred. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (Topic 606) "Revenue from Contracts with Customers." Topic 606 supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605), and requires entities to recognize revenues when control of the promised goods or services is transferred to customers at an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. We adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. Results for reporting periods beginning after January 1, 2018 will be presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting treatment under Topic 605. We recorded a net increase to opening retained earnings of less than $ 100,000 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 There are no other recent accounting pronouncements that are expected to have a material impact on the consolidated financial statements. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment Estimated Useful Life | Fixed assets are stated at cost. Depreciation of fixed assets is provided for using the straight-line method over the following estimated useful lives: Computers and Purchased Software 3 Leasehold Improvements Lesser of expected life or lease term Manufacturing Equipment 5 Tooling 3 Furniture and Equipment 5 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consisted of the following: December 31, December 31, Purchased Parts and Components $ 1,669,209 $ 1,990,026 Work in Process 25,090 454,120 Finished Goods 2,994,342 831,069 Less: Reserve for Obsolescence (836,324) (623,997) Net $ 3,852,317 $ 2,651,218 |
Fixed Assets, Net (Tables)
Fixed Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment, Net [Abstract] | |
Fixed Assets, Net | Fixed Assets consisted of the following: December 31, December 31, Tooling and Manufacturing Equipment $ 3,965,251 $ 2,702,468 Leaseholds 443,332 403,737 Computers and Purchased Software 646,272 585,795 Furniture and Equipment 1,322,405 1,359,522 6,377,260 5,051,522 Less: Accumulated Depreciation (2,252,794) (1,686,614) Fixed Assets, Net $ 4,124,466 $ 3,364,908 |
Patents and Trademarks, Net (Ta
Patents and Trademarks, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Patents and Trademarks [Member] | |
Schedule of Finite-Lived Intangible Assets | December 31, December 31, Patents and Trademarks $ 1,325,905 $ 970,178 Less: Accumulated Amortization (512,131) (434,717) Patents and Trademarks, Net $ 813,774 $ 535,461 |
Software Development Costs, N33
Software Development Costs, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Research and Development [Abstract] | |
Schedule Of Software Development Costs | December 31, December 31, Software Development Costs $ 859,351 $ 859,351 Less: Accumulated Amortization (859,351) (644,513) Additions 408,723 Software Development Costs, Net $ 408,723 $ 214,838 |
Licenses, Net (Tables)
Licenses, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Licenses [Member] | |
Schedule of Finite-Lived Intangible Assets | December 31, December 31, Licenses $ 243,717 $ Less: Accumulated Amortization - Licenses, Net $ 243,717 $ |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Payables and Accruals [Abstract] | |
Components of Accrued Expenses | Accrued expenses consisted of the following: December 31, December 31, Accrued Wages and Related Costs $ 163,305 $ 119,472 Accrued Compensation 327,469 648,720 Accrued Professional Services 531,728 137,099 Accrued Warranty Obligations 167,503 41,132 Accrued Interest 171,435 375,560 Other Accrued Expenses 10,000 10,000 Total $ 1,371,440 $ 1,331,983 |
Changes in Accrued Warranty Obligations | The changes in the Company’s accrued warranty obligations for the years ended December 31, 2017, 2016 and 2015 were as follows: Accrued Warranty Obligations at December 31, 2014 $ 39,624 Reductions for Settling Warranties (67,858) Warranty Issued During Year 92,236 Accrued Warranty Obligations at December 31, 2015 64,002 Reductions for Settling Warranties (103,265) Warranty Issued During Year 80,395 Accrued Warranty Obligations at December 31, 2016 41,132 Reductions for Settling Warranties (157,035) Warranty Issued During Year 283,406 Accrued Warranty Obligations at December 31, 2017 $ 167,503 |
Derivative Liability and Fair36
Derivative Liability and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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 December 31, 2017 and 2016: 2017: Total Level 1 Level 2 Level 3 Warrant Liability $ 152,927 $ $ $ 152,927 Total liabilities measured at fair value (Current Liabilities) $ 152,927 $ $ $ 152,927 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 | Changes in the fair value of the warrant liability were as follows: Fair value December 31, 2014 $ 13,541,138 Reclassification of warrant exercises to Additional Paid-in Capital (2,855,463) Change in fair value for the period of warrant derivative liability 1,098,465 Reclassification of embedded debt conversion price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions (2,806,942) Reclassification of warrant exercise price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions (8,736,412) Fair value December 31, 2015 240,786 Reclassification of warrant exercises to Additional Paid-in Capital (32,911) Change in fair value for the period of warrant derivative liability (34,744) Fair value December 31, 2016 173,131 Reclassification of warrant exercises to Additional Paid-in Capital Change in fair value for the period of warrant derivative liability (20,204) Fair value December 31, 2017 $ 152,927 |
Schedule Of Fair Value Of Warrants | The Monte Carlo Options Lattice pricing model was used to estimate the fair value of warrants outstanding and reflected the following assumptions: December 31, December 31, December 31, Assumptions for Pricing Model: Expected term in years 0.59 1.22 2.60 Volatility range for years 143 % 100 % 103 % Risk-free interest rate 1.76 % 1.47 % 1.06 % Expected annual dividends None None None Value of warrants outstanding: Fair value of warrants $ 152,927 $ 173,131 $ 240,786 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Components of Long-Term Debt | Long-term debt consisted of the following: December 31, December 31, Convertible, Senior Secured Notes payable. The principal was due June 3, 2017 and no payments were required prior to maturity. The notes carried a 5% annual interest rate, payable upon the notes’ maturity. Both the principal plus accrued interest were convertible into shares of the Company’s common stock at $2.25, subject to normal adjustments. The notes were 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 $ $ |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule Of Pre Tax Earnings | Pre-tax earnings consisted of the following for the years ended: December 31, December 31, December 31, 2017 2016 2015 Pre-Tax (Loss) U.S. $ (19,680,720) $ (19,263,625) $ (13,425,887) Outside the U.S. 47,218 43,543 (1,591) Total Pre-Tax (Loss) $ (19,633,502) $ (19,250,082) $ (13,427,478) |
Schedule of Components of Income Tax Expense (Benefit) | The provision expense/(benefit) for income taxes for the years ended December 31, 2017, 2016 and 2015 was as follows: 2017 2016 2015 U.S. Income Taxes: Current Provision $ $ $ Deferred Provision 3,639,752 (5,963,589) (3,730,342) Valuation Allowance (3,639,752) 5,963,589 3,730,342 Income Taxes Outside the U.S.: Current Provision Deferred Provision 215,745 (197,907) Valuation Allowance (215,745) 197,907 State Income Taxes: Current Provision Deferred Provision (59,530) (75,442) (128,572) Valuation Allowance 59,530 75,442 128,572 Total Provision $ $ $ |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the statutory U.S. federal income tax rate to the effective rates for the years ended December 31, 2017, 2016 and 2015 is as follows: 2017 2016 2015 Federal Income Tax at Statutory Rate 34.0 34.0 34.0 State Tax Provision, Net of Federal Benefit 0.3 0.3 0.3 Foreign Income Taxed at Other Than 34% (0.7) Change in Corporate Tax Rates from 34% to 21% (52.9) Loss on Derivative Valuation (6.3) Other (0.7) 0.5 0.7 Effective Tax Rate (19.3) 34.1 28.7 Change in Valuation Allowance 19.3 (34.1) (28.7) Net Effective Tax Rate |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the Company’s deferred tax assets and liabilities at year end are as follows: December 31, December 31, December 31, 2017 2016 2015 Deferred Tax Assets: Net Operating Loss Carry-forwards $ 16,167,791 $ 19,752,311 $ 15,027,603 Tax Credit Carry-forwards 2,404,490 2,398,817 1,823,661 Inventory Valuation Adjustment 675,830 622,168 161,944 Officer’s Compensation 86,670 271,095 141,491 Loss from Foreign Operations 197,907 Other 108,734 44,372 89,783 Total Deferred Tax Assets 19,443,515 23,286,670 17,244,482 Deferred Tax Liabilities: Income from Foreign Operations 17,838 Other 11,789 Total Deferred Tax Liabilities 29,627 76,815 271,565 Net Deferred Tax Assets Before Valuation Allowance $ 19,413,888 $ 23,209,855 $ 16,972,917 Valuation Allowance (19,413,888) (23,209,855) (16,972,917) Net Deferred Tax Assets $ $ $ |
Stock Warrants (Tables)
Stock Warrants (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Changes in Warrants | The following table shows the various changes in warrants for the years ended: December 31, December 31, December 31, Warrants Outstanding, Beginning of Year 401,859 535,091 5,236,660 Exercised During the Year (250,009) (133,232) (4,746,755) Issued During the Year 1,033,062 - 60,000 Forfeited During the Year - - (14,814) Warrants Outstanding, End of Year 1,184,912 401,859 535,091 |
Stock Option Plans (Tables)
Stock Option Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stock Option Plans [Abstract] | |
Stock option plans | Options outstanding under the Stock Options Plans are as follows: 2007 2009 2014 Total Outstanding as of December 31, 2015 37,447 120,842 864,500 1,022,789 Available for future issuance under plan - - 744,295 744,295 Total authorized by plan 37,447 120,842 1,608,795 1,767,084 Outstanding as of December 31, 2016 21,977 132,771 929,550 1,084,298 Available for future issuance under plan 1,027,375 1,027,375 Totals authorized by plan 21,977 132,771 1,956,925 2,111,673 Outstanding as of December 31, 2017 10,665 117,094 1,382,485 1,510,244 Available for future issuance under plan 1,045,143 1,045,143 Totals authorized by plan 10,665 117,094 2,427,628 2,555,387 |
Summary of Stock Option Activity | The following table summarizes stock option activity for the years ended December 31, 2017, 2016 and 2015: Weighted Weighted Number of Average Remaining Life Outstanding at December 31, 2014 720,551 $ 4.46 8.56 Granted 374,000 5.67 Exercised (15,833) 2.60 Expired or Forfeited (55,929) 8.12 Outstanding at December 31, 2015 1,022,789 $ 4.59 7.56 Granted 116,750 6.60 Exercised (10,450) 3.46 Expired or Forfeited (44,791) 3.87 Outstanding at December 31, 2016 1,084,298 $ 4.76 7.57 Granted 534,500 5.74 Exercised (63,187) 2.89 Expired or Forfeited (45,367) 8.30 Outstanding at December 31, 2017 1,510,244 $ 5.04 7.58 |
Summary of assumptions used to compute the fair value of stock options granted | The following summary table shows the assumptions used to compute the fair value of stock options granted during 2017, 2016 and 2015 and their estimated value: December 31, 2017 2016 2015 Assumptions for Black-Scholes: Expected term in years 6.5 to 6.8 7.9 6.0 to 7.9 Volatility 122.8% to 133% 103.6% to 109.7% 114.4% to 113.5% Risk-free interest rate 1.98% to 2.30% 1.27% to 1.68% 1.74% to 2.02% Expected annual dividends None None None Value of options granted: Number of options granted 534,500 116,750 374,000 Weighted average fair value per share $ 5.24 $ 5.73 $ 4.50 Fair value of options granted $ 2,803,329 $ 669,435 $ 1,684,179 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual Payment Obligations for Operating Leases | Future minimum payments required under operating lease obligations as of December 31, 2017 are as follows: Total Year Ending Lease 2018 $ 411,135 2019 403,730 2020 363,881 2021 - 2022 - Total $ 1,178,746 |
Geographic and Other Financia42
Geographic and Other Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segments, Geographical Areas [Abstract] | |
Revenue from External Customers by Geographic Areas | Geographical revenue information, based on ship-to destination for the three years ended December 31, 2017, 2016 and 2015 was based on the location of the customers is as follows (in thousands): By Continent and Region: Fiscal Year 2017 2016 2015 Revenue % of Total Revenue % of Total Revenue % of Total Asia-Pacific $ 1,927 35 % $ 493 23 % $ 250 9 % Europe 1,892 34 % 649 31 % 334 12 % North America 1,687 30 % 981 46 % 2,161 79 % Others 32 1 % 4 0 % 5 0 % Total Revenues $ 5,538 100 % $ 2,127 100 % $ 2,750 100 % By Country: Fiscal Year 2017 2016 2015 Revenue % of Total Revenue % of Total Revenue % of Total US $ 1,618 29 % $ 962 45 % $ 2,147 78 % France 429 8 % 211 10 % 44 2 % Germany 526 9 % 263 12 % 129 5 % Japan 1,340 24 % 288 14 % 217 8 % United Kingdom 529 10 % 46 2 % 32 1 % Others 1,096 20 % 357 17 % 181 6 % Total Revenues $ 5,538 100 % $ 2,127 100 % $ 2,750 100 % |
Quarterly Financial Informati43
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following table summarizes our unaudited quarterly financial information for the periods shown below (in thousands, except per share data): Fiscal Year 2017 December 31, September 30, June 30, March 31, Revenue $ 1,597 $ 1,405 $ 1,325 $ 1,211 Gross profit (loss) (304) (92) (429) 149 Net loss (5,879) (5,502) (4,070) (4,182) Net loss per share, basic and diluted (0.29) (0.28) (0.22) (0.23) Net loss attributable to common stockholders (6,321) (5,938) (4,494) (4,595) Fiscal Year 2016 December 31, September 30, June 30, March 31, Revenue $ 620 $ 583 $ 561 $ 364 Gross profit (loss) (562) (237) (126) (239) Net loss (6,335) (5,036) (4,103) (3,776) Net loss per share, basic and diluted (0.37) (0.32) (0.28) (0.26) Net loss attributable to common stockholders (6,751) (5,446) (4,503) (4,170) |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Property Plant And Equipment Useful Life) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Computers and Software | |
Property, Plant and Equipment, Useful Life | 3 years |
Leasehold Improvements | |
Property, Plant and Equipment, Estimated Useful Lives | Lesser of expected life or lease term |
Manufacturing Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Tooling | |
Property, Plant and Equipment, Useful Life | 3 years |
Furniture and Equipment | |
Property, Plant and Equipment, Useful Life | 5 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Additional Information) (Detail) | Jan. 02, 2018USD ($) | Dec. 31, 2017USD ($)$ / Unit | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||
Advertising Expense | $ 1,386,977 | $ 1,279,998 | $ 432,325 | |
Stock Options | $ 1,355,522 | $ 756,928 | $ 568,848 | |
Earnings Per Share, Potentially Dilutive Securities | 7,657,756 | 7,227,738 | 7,475,623 | |
Increase In Retained Earnings | $ 100,000 | |||
Impairment Of Intangible Assets, Finite-Lived | $ 0 | $ 20,506 | $ 13,222 | |
Allowance for Doubtful Accounts Receivable | $ 29,960 | |||
M300 Smart Glass | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Best Selling Price Per Unit | $ / Unit | 25 | |||
M100 Smart Glass | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Best Selling Price Per Unit | $ / Unit | 25 | |||
M100 software developer kits | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Best Selling Price Per Unit | $ / Unit | 40 | |||
Minimum | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | |||
Trademarks and Patents | ||||
Summary Of Significant Accounting Policies [Line Items] | ||||
Finite-Lived Intangible Assets, Remaining Amortization Period | 15 years |
Inventories, Net (Components of
Inventories, Net (Components of Inventories) (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Line Items] | ||
Purchased Parts and Components | $ 1,669,209 | $ 1,990,026 |
Work in Process | 25,090 | 454,120 |
Finished Goods | 2,994,342 | 831,069 |
Less: Reserve for Obsolescence | (836,324) | (623,997) |
Net | $ 3,852,317 | $ 2,651,218 |
Inventories, Net (Additional In
Inventories, Net (Additional Information) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Inventory Write-down | $ 1,151,482 | $ 1,124,401 | $ 0 |
Fixed Assets, Net (Schedule Of
Fixed Assets, Net (Schedule Of Fixed Assets) (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 6,377,260 | $ 5,051,522 |
Less: Accumulated Depreciation | (2,252,794) | (1,686,614) |
Fixed Assets, Net | 4,124,466 | 3,364,908 |
Tooling and Manufacturing Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,965,251 | 2,702,468 |
Leaseholds | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 443,332 | 403,737 |
Computers and Purchased Software | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 646,272 | 585,795 |
Funiture and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 1,322,405 | $ 1,359,522 |
Fixed Assets, Net (Additional I
Fixed Assets, Net (Additional Information) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tooling and Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation and Amortization | $ 921,113 | $ 663,934 | $ 294,363 |
Patents and Trademarks, Net (Sc
Patents and Trademarks, Net (Schedule Of Patents and Trademarks) (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Patents and Trademarks, Net | $ 813,774 | $ 535,461 |
Patents and Trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patents and Trademarks | 1,325,905 | 970,178 |
Less: Accumulated Amortization | (512,131) | (434,717) |
Patents and Trademarks, Net | $ 813,774 | $ 535,461 |
Patents and Trademarks, Net (Ad
Patents and Trademarks, Net (Additional Information) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | $ 77,415 | $ 106,734 | $ 86,478 |
Impairment of Patents and Trademarks | 0 | 20,506 | 13,222 |
Abandoned Patents and Trademarks | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 88,000 | ||
Impairment of Patents and Trademarks | 20,506 | 13,222 | |
Representing Cost | 44,371 | 21,954 | |
Finite-Lived Intangible Assets, Accumulated Amortization | $ 23,865 | $ 8,732 |
Software Development Costs, N52
Software Development Costs, Net (Schedule Of Software Development Costs) (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Software Development Costs | $ 859,351 | $ 859,351 |
Less: Accumulated Amortization | (859,351) | (644,513) |
Additions | 408,723 | 0 |
Software Development Costs, Net | $ 408,723 | $ 214,838 |
Software Development Costs, N53
Software Development Costs, Net (Additional Information) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Capitalized Computer Software, Amortization | $ 214,838 | $ 286,450 | $ 286,450 |
Capitalized Computer Software, Additions | $ 408,723 | 0 | |
Software and Software Development Costs | |||
Finite-Lived Intangible Assets, Remaining Amortization Period | 3 years | ||
Capitalized Computer Software, Amortization | $ 286,450 | $ 286,450 |
Licenses, Net (Detail)
Licenses, Net (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Licenses,Net [Line Items] | |||
Licenses, Net | $ 243,717 | $ 0 | |
Licensing Agreements [Member] | |||
Licenses,Net [Line Items] | |||
Licenses | 243,717 | 0 | |
Less: Accumulated Amortization | 0 | 0 | $ 0 |
Licenses, Net | $ 243,717 | $ 0 |
Licenses, Net (Additional Infor
Licenses, Net (Additional Information) (Detail) - USD ($) | Dec. 02, 2016 | Jul. 11, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Licenses,Net [Line Items] | |||||
Stock Issued During Period, Shares, New Issues | 2,000,000 | 1,150,000 | |||
Research and Development Expense | $ 6,706,690 | $ 6,947,878 | $ 3,595,437 | ||
Stock Issued During Period, Value, New Issues | $ 14,500,000 | $ 6,612,500 | 21,128,502 | 21,112,500 | |
Intellectual Property [Member] | |||||
Licenses,Net [Line Items] | |||||
Patents Application Cost | $ 75,702 | ||||
Stock Issued During Period, Shares, New Issues | 25,000 | ||||
Stock Issued After Development | 25,000 | ||||
Stock Issued After Commercialization Of Products | 50,000 | ||||
Research and Development Expense | $ 200,000 | ||||
Stock Issued During Period, Value, New Issues | 128,750 | ||||
Licensing Agreements [Member] | |||||
Licenses,Net [Line Items] | |||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 0 | $ 0 | $ 0 | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
License Costs | $ 114,967 |
Accrued Expenses (Components of
Accrued Expenses (Components of Accrued Expenses) (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accrued Liabilities [Line Items] | ||
Accrued Wages and Related Costs | $ 163,305 | $ 119,472 |
Accrued Compensation | 327,469 | 648,720 |
Accrued Professional Services | 531,728 | 137,099 |
Accrued Warranty Obligations | 167,503 | 41,132 |
Accrued Interest | 171,435 | 375,560 |
Other Accrued Expenses | 10,000 | 10,000 |
Total | $ 1,371,440 | $ 1,331,983 |
Accrued Expenses (Changes in Ac
Accrued Expenses (Changes in Accrued Warranty Obligations) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class Of Warrant Or Right [Line Items] | |||
Accrued Warranty Obligations | $ 41,132 | $ 64,002 | $ 39,624 |
Reductions for Settling Warranties | (157,035) | (103,265) | (67,858) |
Warranty Issued During Year | 283,406 | 80,395 | 92,236 |
Accrued Warranty Obligations | $ 167,503 | $ 41,132 | $ 64,002 |
Accrued Expenses - Additional I
Accrued Expenses - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Officers Compensation Payable Compounding Monthly Interest Rate | 8.00% | |
Interest Payable, Current | $ 171,435 | $ 141,645 |
Derivative Liability and Fair59
Derivative Liability and Fair Value Measurements (Schedule of Assets And Liabilities Measured At Fair Value On A Recurring Basis) (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Warrant Liability | $ 152,927 | $ 173,131 |
Total liabilities measured at fair value (Long-Term) | 152,927 | 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 | 152,927 | 173,131 |
Total liabilities measured at fair value (Long-Term) | $ 152,927 | $ 173,131 |
Derivative Liability and Fair60
Derivative Liability and Fair Value Measurements (Schedule of Fair Value Level 3 Warrant Liabilities) (Detail) - Warrant Liabilities [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 173,131 | $ 240,786 | $ 13,541,138 |
Reclassification of warrant exercises to Additional Paid-in Capital | 0 | (32,911) | (2,855,463) |
Change in fair value for the period of warrant derivative liability | (20,204) | (34,744) | 1,098,465 |
Reclassification of embedded debt conversion price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions | (2,806,942) | ||
Reclassification of warrant exercise price adjustment provision liability to Additional Paid-in Capital upon waiver of certain anti-dilutive provisions | (8,736,412) | ||
Fair value | $ 152,927 | $ 173,131 | $ 240,786 |
Derivative Liability and Fair61
Derivative Liability and Fair Value Measurements (Estimate the fair value of warrants outstanding) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Value of warrants outstanding: | |||
Fair value of warrants | $ 152,927 | $ 173,131 | $ 240,786 |
Monte Carlo Options Lattice Pricing Model Warrants Outstanding | |||
Assumptions for Pricing Model: | |||
Expected term in years | 7 months 2 days | 1 year 2 months 19 days | 2 years 7 months 6 days |
Volatility range for years | 143.00% | 100.00% | 103.00% |
Risk-free interest rate | 1.76% | 1.47% | 1.06% |
Expected annual dividends | 0.00% | 0.00% | 0.00% |
Derivative Liability and Fair62
Derivative Liability and Fair Value Measurements (Additional Information) (Detail) - USD ($) | Jun. 03, 2014 | Dec. 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 ($) | Dec. 31, 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. | ||
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 of64
Long-Term Debt (Components of Long-Term Debt) (Parenthetical) (Detail) - USD ($) | Jun. 03, 2014 | Dec. 31, 2017 | Dec. 31, 2016 |
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 repayment starting date | Jun. 3, 2017 | Jun. 3, 2017 | |
Long term debt, fixed interest rate | 5.00% | 5.00% | |
Debt Instrument, Convertible, Conversion Price | $ 2.25 | $ 2.25 |
Long-Term Debt (Additional Info
Long-Term Debt (Additional Information) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | |||
Debt Conversion, Converted Instrument, Amount | $ 1,861,283 | $ 342,036 | $ 472,500 |
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 |
Income Taxes (Pre-Tax Earnings)
Income Taxes (Pre-Tax Earnings) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pre-Tax (Loss) Earnings | |||
Total Pre-Tax (Loss) Earnings | $ (19,633,502) | $ (19,250,082) | $ (13,427,478) |
U.S. | |||
Pre-Tax (Loss) Earnings | |||
Total Pre-Tax (Loss) Earnings | (19,680,720) | (19,263,625) | (13,425,887) |
Outside the U.S. [Member] | |||
Pre-Tax (Loss) Earnings | |||
Total Pre-Tax (Loss) Earnings | $ 47,218 | $ 43,543 | $ (1,591) |
Income Taxes (Provision Benefit
Income Taxes (Provision Benefit For Income Taxes) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
U.S. Income Taxes: | |||
Current Provision | $ 0 | $ 0 | $ (3,730,342) |
Deferred Provision | 3,639,752 | (5,963,589) | 3,730,342 |
Valuation Allowance | (3,639,752) | 5,963,589 | 0 |
Income Taxes Outside the U.S.: | |||
Current Provision | 0 | 0 | 0 |
Deferred Provision | 215,745 | (197,907) | 0 |
Valuation Allowance | (215,745) | 197,907 | 0 |
State Income Taxes: | |||
Current Provision | 0 | 0 | 0 |
Deferred Provision | (59,530) | (75,442) | (128,572) |
Valuation Allowance | 59,530 | 75,442 | 128,572 |
Total Provision | $ 0 | $ 0 | $ 0 |
Income Taxes (Reconciliation Of
Income Taxes (Reconciliation Of Effective Rate) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation [Line Items] | |||
Federal Income Tax at Statutory Rate | 34.00% | 34.00% | 34.00% |
State Tax Provision, Net of Federal Benefit | 0.30% | 0.30% | 0.30% |
Foreign Income Taxed at Other Than 34% | 0.00% | (0.70%) | 0.00% |
Change in Corporate Tax Rates from 34% to 21% | (52.90%) | 0.00% | 0.00% |
Loss on Derivative Valuation | 0.00% | 0.00% | (6.30%) |
Other | (0.70%) | 0.50% | 0.70% |
Effective Tax Rate | (19.30%) | 34.10% | 28.70% |
Change in Valuation Allowance | 19.30% | (34.10%) | (28.70%) |
Net Effective Tax Rate | 0.00% | 0.00% | 0.00% |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax assets And liabilities) (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets: | |||
Net Operating Loss Carry-forwards | $ 16,167,791 | $ 19,752,311 | $ 15,027,603 |
Tax Credit Carry-forwards | 2,404,490 | 2,398,817 | 1,823,661 |
Inventory Valuation Adjustment | 675,830 | 622,168 | 161,944 |
Officer’s Compensation | 86,670 | 271,095 | 141,491 |
Loss from Foreign Operations | 0 | 197,907 | 0 |
Other | 108,734 | 44,372 | 89,783 |
Total Deferred Tax Assets | 19,443,515 | 23,286,670 | 17,244,482 |
Deferred Tax Liabilities: | |||
Income from Foreign Operations | 17,838 | ||
Other | 11,789 | ||
Total Deferred Tax Liabilities | 29,627 | 76,815 | 271,565 |
Net Deferred Tax Assets Before Valuation Allowance | 19,413,888 | 23,209,855 | 16,972,917 |
Valuation Allowance | (19,413,888) | (23,209,855) | (16,972,917) |
Net Deferred Tax Assets | $ 0 | $ 0 | $ 0 |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes Additional Information [Line Items] | ||||
Federal and State Net Operating Loss Carryforwards | $ 76,000,000 | |||
Deferred Tax Assets, Tax Credit Carryforwards | $ 2,404,490 | $ 2,398,817 | $ 1,823,661 | |
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 34.00% | 34.00% | 34.00% | |
Scenario, Plan [Member] | ||||
Income Taxes Additional Information [Line Items] | ||||
Effective Income Tax Rate Reconciliation, At Federal Statutory Income Tax Rate | 21.00% |
Capital Stock (Additional Infor
Capital Stock (Additional Information) (Detail) - USD ($) | Aug. 14, 2017 | Dec. 02, 2016 | Jul. 11, 2016 | Jan. 02, 2015 | Dec. 19, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Preferred Stock Shares Authorized | 5,000,000 | 5,000,000 | |||||||
Stock Issued During Period, Shares, New Issues | 2,000,000 | 1,150,000 | |||||||
Shares Issued, Price Per Share | $ 5.75 | $ 7.25 | $ 5.75 | $ 6.05 | |||||
Stock Issued During Period, Value, New Issues | $ 14,500,000 | $ 6,612,500 | $ 21,128,502 | $ 21,112,500 | |||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | ||||||||
Preferred Stock Shares Outstanding | 49,626 | 49,626 | |||||||
Preferred Stock Shares Outstanding In Percent liquidation or amendment actions | 60.00% | ||||||||
Dividends Payable | $ 4,849,063 | ||||||||
Common Stock Shares Authorized | 100,000,000 | 100,000,000 | |||||||
Common Stock Shares Issued | 24,276,275 | 19,569,247 | |||||||
Common Stock Shares Outstanding | 24,276,275 | 19,569,247 | |||||||
Common Stock, Par Or Stated Value Per Share | $ 0.001 | $ 0.001 | |||||||
Preferred Stock Shares Issued | 49,626 | 49,626 | |||||||
Proceeds from Issuance Initial Public Offering | $ 19,238,015 | ||||||||
Class Of Warrant Or Right Outstanding | 49,626 | 1,184,912 | 401,859 | 535,091 | 5,236,660 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 7 | ||||||||
Proceeds from Issuance of Common Stock | $ 7,978,321 | $ 11,532,502 | $ 21,128,502 | $ 21,112,500 | $ 0 | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,033,058 | 3,559,783 | |||||||
Class of Warrant or Right,Expiry Term | three-year | ||||||||
Common Stock [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | 1,500,000 | 2,066,116 | 3,566,116 | 3,150,000 | |||||
Stock Issued During Period, Value, New Issues | $ 3,566 | $ 3,150 | |||||||
Director Two [Member] | |||||||||
Preferred Stock Shares Outstanding In Percent | 25.00% | ||||||||
Chief Operating Officer [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | 10,000 | ||||||||
Shares Issued, Price Per Share | $ 6.10 | ||||||||
Series A Preferred Stock [Member] | |||||||||
Conversion of Stock, Description | Each share of Series A Preferred Stock is convertible, at the option of the Series A Purchaser, into 100 shares of the 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). | ||||||||
Preferred Stock, Dividend Rate, Percentage | 6.00% | ||||||||
Preferred Stock Shares Outstanding In Percent | 20.00% | ||||||||
Description of Preferred Stock | For as long as at least 25% (or 12,406 shares) of the Series A Preferred Stock is outstanding, the Company may not, without the consent of holders of at least 60% of the then outstanding shares of Series A Preferred Stock, take certain actions, including but not limited to: (i) liquidate, dissolve, or wind up the business and affairs of the Company; (ii) amend, alter or repeal any provision of its charter or bylaws in a manner that adversely effects the rights of the Series A Preferred Stock; (iii) create or issue any capital stock that is equal to or senior to the Series A Preferred Stock with respect to preferences; (iv) create or issue any debt security, subject to certain exceptions; (v) pay off any debt obligation prior to its stated maturity date; or (vi) enter into any stockholders rights plan or similar arrangement or take other actions that may limit actions that holders of a majority of the Series A Preferred Stock can take under Section 203 (“Section 203”) of the Delaware General Corporation Law, as well as such other customary provisions protecting the rights of the holder of the Series A Preferred Stock, as are outlined in the Certificate of Designation. | ||||||||
Series A Preferred Stock [Member] | Director [Member] | |||||||||
Preferred Stock Shares Outstanding In Percent | 40.00% | ||||||||
Series A Preferred Stock [Member] | Corporation [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | 49,626 | ||||||||
Shares Issued, Price Per Share | $ 500 | ||||||||
Stock Issued During Period, Value, New Issues | $ 24,813,000 |
Stock Warrants (Changes in Warr
Stock Warrants (Changes in Warrants) (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class Of Warrant Or Right [Line Items] | |||
Warrants Outstanding, Beginning of Year | 401,859 | 535,091 | 5,236,660 |
Exercised During the Year | (250,009) | (133,232) | (4,746,755) |
Issued During the Year | 1,033,062 | 0 | 60,000 |
Forfeited During the Year | 0 | 0 | (14,814) |
Warrants Outstanding, End of Year | 1,184,912 | 401,859 | 535,091 |
Stock Warrants (Additional Info
Stock Warrants (Additional Information) (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Dec. 19, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Warrant or Right [Line Items] | ||||
Weighted average term of warrants | 3 years 1 month 6 days | 1 year 3 months 18 days | 2 years 3 months 18 days | |
Weighted average exercise price of warrants per share | $ 6.44 | $ 2.41 | $ 2.43 | |
Class Of Warrant Or Right Issued | 1,033,062 | |||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,033,058 | 3,559,783 | ||
Stock Issued During Period, Shares, Warrant Exercised | 168,000 | 74,621 | ||
Proceeds from Issuance of Warrants | $ 1,272,627 | |||
Class Of Warrant Exercised In Cashless Basis | 250,009 | 111,232 | 4,178,267 | |
Class Of Warrant Exercised In Cash Basis | 568,488 | |||
Warrants 1 | ||||
Class of Warrant or Right [Line Items] | ||||
Stock Issued During Period, Shares, Warrant Exercised | 60,750 | |||
Class Of Warrant Exercised In Cash Basis | 22,000 |
Stock Option Plans (Summary Of
Stock Option Plans (Summary Of Stock Option Plans) (Detail) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Stock Option Plan [Line Items] | ||||
Stock Options Plans, Outstanding | 1,510,244 | 1,084,298 | 1,022,789 | |
Available for future issuance under plan | 1,045,143 | 1,027,375 | 744,295 | |
Totals authorized by plan | 2,555,387 | 2,111,673 | 1,767,084 | |
2007 Plan | ||||
Stock Option Plan [Line Items] | ||||
Stock Options Plans, Outstanding | 10,665 | 21,977 | 37,447 | |
Available for future issuance under plan | 0 | 0 | 0 | |
Totals authorized by plan | 10,665 | 21,977 | 37,447 | |
2009 Plan | ||||
Stock Option Plan [Line Items] | ||||
Stock Options Plans, Outstanding | 117,094 | 132,771 | 120,842 | |
Available for future issuance under plan | 0 | 0 | 0 | |
Totals authorized by plan | 117,094 | 132,771 | 120,842 | |
2014 Plan | ||||
Stock Option Plan [Line Items] | ||||
Stock Options Plans, Outstanding | 1,382,485 | 929,550 | 864,500 | |
Available for future issuance under plan | 1,045,143 | 1,027,375 | 744,295 | |
Totals authorized by plan | 2,427,628 | 1,956,925 | 1,608,795 | 1,000,000 |
Stock Option Plans (Summary o75
Stock Option Plans (Summary of Stock Option Activity) (Detail) - $ / shares | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Options outstanding | ||||
Outstanding, Beginning Balance | 1,084,298 | 1,022,789 | ||
Outstanding, Ending Balance | 1,510,244 | 1,084,298 | 1,022,789 | |
Employee Stock Option [Member] | ||||
Number of Options outstanding | ||||
Outstanding, Beginning Balance | 1,084,298 | 1,022,789 | 720,551 | |
Granted | 534,500 | 116,750 | 374,000 | |
Exercised | (63,187) | (10,450) | (15,833) | |
Expired or Forfeited | (45,367) | (44,791) | (55,929) | |
Outstanding, Ending Balance | 1,510,244 | 1,084,298 | 1,022,789 | 720,551 |
Weighted Average Exercise Price | ||||
Outstanding, Beginning Balance | $ 4.76 | $ 4.59 | $ 4.46 | |
Granted | 5.74 | 6.6 | 5.67 | |
Exercised | 2.89 | 3.46 | 2.6 | |
Expired or Forfeited | 8.30 | 3.87 | 8.12 | |
Outstanding, Ending Balance | $ 5.04 | $ 4.76 | $ 4.59 | $ 4.46 |
Weighted Average Remaining Life (Years) | ||||
Options Outstanding, Weighted Average Remaining Life (Years) | 7 years 6 months 29 days | 7 years 6 months 25 days | 7 years 6 months 22 days | 8 years 6 months 22 days |
Stock Option Plans (Assumptions
Stock Option Plans (Assumptions Used To Compute The Fair Value Of Stock Options) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Assumptions for Black-Scholes: | |||
Expected term in years | 7 years 10 months 24 days | ||
Value of options granted: | |||
Number of options granted | 534,500 | 116,750 | 374,000 |
Weighted average fair value per share | $ 5.24 | $ 5.73 | $ 4.50 |
Fair value of options issued | $ 2,803,329 | $ 669,435 | $ 1,684,179 |
Minimum [Member] | |||
Assumptions for Black-Scholes: | |||
Expected term in years | 6 years 6 months | 6 years | |
Volatility | 122.80% | 103.60% | 114.40% |
Risk-free interest rate | 1.98% | 1.27% | 1.74% |
Maximum [Member] | |||
Assumptions for Black-Scholes: | |||
Expected term in years | 6 years 9 months 18 days | 7 years 10 months 24 days | |
Volatility | 133.00% | 109.70% | 113.50% |
Risk-free interest rate | 2.30% | 1.68% | 2.02% |
Stock Option Plans (Additional
Stock Option Plans (Additional Information) (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Exercisable Options Outstanding Shares | 797,861 | 613,665 | 424,688 | |
Weighted average exercise price per share | $ 4.65 | $ 4.83 | $ 5.34 | |
Unvested Options Outstanding, Shares | 712,383 | 470,633 | 598,101 | |
Unvested Options Outstanding, Weighted average exercise price | $ 5.48 | $ 4.67 | $ 4.05 | |
Unvested Options Outstanding Weighted average remaining life (yrs) | 8 years 8 months 12 days | 8 years 4 months 24 days | 7 years 4 months 24 days | |
Weighted average remaining contractual term on unvested options | 6 years 4 months 24 days | 7 years | 7 years 4 months 24 days | |
Unrecognized stock compensation expense | $ 3,517,878 | |||
Weighted average recognition period | 3 years | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 2,555,387 | 2,111,673 | 1,767,084 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 3,517,878 | $ 2,776,068 | $ 3,449,805 | |
Non Employee Director | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Percentage Of Stock Option Vesting Period | 50.00% | |||
2014 Plan | ||||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||||
Percentage Of Stock Option Vesting Period | 20.00% | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Number Of Shares Authorized | 2,427,628 | 1,956,925 | 1,608,795 | 1,000,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 10.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 100.00% |
Commitments (Future Minimum Pay
Commitments (Future Minimum Payments Required Under Operating Lease) (Detail) | Dec. 31, 2017USD ($) |
Future Minimum Payments Required Under Operating Lease [Line Items] | |
2,018 | $ 411,135 |
2,019 | 403,730 |
2,020 | 363,881 |
2,021 | 0 |
2,022 | 0 |
Total | $ 1,178,746 |
Commitments (Additional Informa
Commitments (Additional Information) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitment Contingencies Disclosure [Line Items] | |||
Lease Expiration Date | Oct. 3, 2020 | ||
Operating Leases, Rent Expense, Minimum Rentals | $ 335,248 | ||
Operating Leases, Rent Expense | $ 461,246 | $ 482,147 | $ 186,471 |
Operating Lease Commencement Date | Oct. 3, 2015 | ||
Lessee Leasing Arrangements, Operating Leases, Term of Contract | 5 years | ||
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 3 years | ||
Purchase Obligation | $ 7,000,000 |
Employee Benefit Plans (Additio
Employee Benefit Plans (Additional Information) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Employee Benefit Plans [Line Items] | |
Percentage Of Employee Deferrals | 100.00% |
Geographic and Other Financia81
Geographic and Other Financial Information (Unaudited) (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sales Revenue Net | $ 1,597 | $ 1,405 | $ 1,325 | $ 1,211 | $ 620 | $ 583 | $ 561 | $ 364 | $ 5,537,753 | $ 2,127,378 | $ 2,749,984 |
Geographic Concentration Risk 1 [Member] | |||||||||||
Sales Revenue Net | $ 5,538 | $ 2,127 | $ 2,750 | ||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | ||||||||
Geographic Concentration Risk 2 [Member] | |||||||||||
Sales Revenue Net | $ 5,538 | $ 2,127 | $ 2,750 | ||||||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | ||||||||
Asia Pacific [Member] | Geographic Concentration Risk 1 [Member] | |||||||||||
Sales Revenue Net | $ 1,927 | $ 493 | $ 250 | ||||||||
Concentration Risk, Percentage | 35.00% | 23.00% | 9.00% | ||||||||
Europe [Member] | Geographic Concentration Risk 1 [Member] | |||||||||||
Sales Revenue Net | $ 1,892 | $ 649 | $ 334 | ||||||||
Concentration Risk, Percentage | 34.00% | 31.00% | 12.00% | ||||||||
North America [Member] | Geographic Concentration Risk 1 [Member] | |||||||||||
Sales Revenue Net | $ 1,687 | $ 981 | $ 2,161 | ||||||||
Concentration Risk, Percentage | 30.00% | 46.00% | 79.00% | ||||||||
Other Continent [Member] | Geographic Concentration Risk 1 [Member] | |||||||||||
Sales Revenue Net | $ 32 | $ 4 | $ 5 | ||||||||
Concentration Risk, Percentage | 1.00% | 0.00% | 0.00% | ||||||||
Other Continent [Member] | Geographic Concentration Risk 2 [Member] | |||||||||||
Sales Revenue Net | $ 1,096 | $ 357 | $ 181 | ||||||||
Concentration Risk, Percentage | 20.00% | 17.00% | 6.00% | ||||||||
UNITED STATES | Geographic Concentration Risk 2 [Member] | |||||||||||
Sales Revenue Net | $ 1,618 | $ 962 | $ 2,147 | ||||||||
Concentration Risk, Percentage | 29.00% | 45.00% | 78.00% | ||||||||
FRANCE | Geographic Concentration Risk 2 [Member] | |||||||||||
Sales Revenue Net | $ 429 | $ 211 | $ 44 | ||||||||
Concentration Risk, Percentage | 8.00% | 10.00% | 2.00% | ||||||||
JAPAN | Geographic Concentration Risk 2 [Member] | |||||||||||
Sales Revenue Net | $ 1,340 | $ 288 | $ 217 | ||||||||
Concentration Risk, Percentage | 24.00% | 14.00% | 8.00% | ||||||||
GERMANY | Geographic Concentration Risk 2 [Member] | |||||||||||
Sales Revenue Net | $ 526 | $ 263 | $ 129 | ||||||||
Concentration Risk, Percentage | 9.00% | 12.00% | 5.00% | ||||||||
UNITED KINGDOM | Geographic Concentration Risk 2 [Member] | |||||||||||
Sales Revenue Net | $ 529 | $ 46 | $ 32 | ||||||||
Concentration Risk, Percentage | 10.00% | 2.00% | 1.00% |
Geographic and Other Financia82
Geographic and Other Financial Information (Unaudited) (Additional Information) (Detail) - Customer Concentration Risk [Member] | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Sales Revenue, Net [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Sales Revenue, Net [Member] | Toshiba Client Solutions Co. Ltd [Member] | |||
Concentration Risk, Percentage | 18.00% | ||
Sales Revenue, Net [Member] | One Customer [Member] | |||
Concentration Risk, Percentage | 18.00% | ||
Accounts Receivable [Member] | |||
Concentration Risk, Percentage | 10.00% | ||
Accounts Receivable [Member] | Toshiba Client Solutions Co. Ltd [Member] | |||
Concentration Risk, Percentage | 25.00% | ||
Accounts Receivable [Member] | One Customer [Member] | |||
Concentration Risk, Percentage | 89.00% | ||
Accrued Project Revenue [Member] | Toshiba Client Solutions Co. Ltd [Member] | |||
Concentration Risk, Percentage | 100.00% |
Quarterly Financial Informati83
Quarterly Financial Information (Unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | $ 1,597 | $ 1,405 | $ 1,325 | $ 1,211 | $ 620 | $ 583 | $ 561 | $ 364 | $ 5,537,753 | $ 2,127,378 | $ 2,749,984 |
Gross profit (Loss) | (304) | (92) | (429) | 149 | (562) | (237) | (126) | (239) | (676,598) | (1,163,588) | 566,186 |
Net loss | $ (5,879) | $ (5,502) | $ (4,070) | $ (4,182) | $ (6,335) | $ (5,036) | $ (4,103) | $ (3,776) | $ (19,633,502) | $ (19,250,082) | $ (13,427,478) |
Net loss per share, basic and diluted | $ (0.29) | $ (0.28) | $ (0.22) | $ (0.23) | $ (0.37) | $ (0.32) | $ (0.28) | $ (0.26) | $ (1.02) | $ (1.23) | $ (0.97) |
Net loss attributable to common stockholders | $ (6,321) | $ (5,938) | $ (4,494) | $ (4,595) | $ (6,751) | $ (5,446) | $ (4,503) | $ (4,170) | $ (21,348,436) | $ (20,870,130) | $ (14,941,559) |
Related Party Transactions (Add
Related Party Transactions (Additional Information) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transactions Additional Information [Line Items] | |||
Related Party Transaction, Rate | 8.00% | ||
Due to Officers or Stockholders | $ 327,469 | $ 648,720 | $ 358,719 |
Interest Expense, Related Party | 171,435 | 141,645 | 97,801 |
Officer [Member] | |||
Related Party Transactions Additional Information [Line Items] | |||
Interest Expense, Debt | 52,221 | 43,844 | 35,722 |
Major Stockholder [Member] | |||
Related Party Transactions Additional Information [Line Items] | |||
Revenue from Related Parties | $ 0 | ||
Accounts Receivable, Related Parties, Current | 2,998 | 290,750 | |
Revenues | $ 54,023 | $ 481,920 | |
Percentage Of Preferred Stock Shares Converted In To Common Stock | 15.00% | ||
Major Stockholder [Member] | Sales Revenue, Net [Member] | |||
Related Party Transactions Additional Information [Line Items] | |||
Concentration Risk, Percentage | 3.00% | 18.00% |
Subsequent Events(Additional In
Subsequent Events(Additional Information) (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2018 | Jan. 24, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 19, 2017 | |
Subsequent Event [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 7 | |||||
Proceeds from Warrant Exercises | $ 0 | $ 60,750 | $ 1,272,627 | |||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 38,100 | 38,100 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 10 | |||||
Proceeds from Warrant Exercises | $ 39,375 | |||||
Warrants Exercised For Cash | 17,500 | |||||
Purchase Of Common Stock | 3,000,000 | |||||
Purchase Of Warrants | 1,200,000 | |||||
Stock Purchase Price | $ 10 | |||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | 0.4 | |||||
Warrants Purchased value | $ 30,000,000 | |||||
Subsequent Event [Member] | Warrant [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Exercised | 10,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 7,428 |
Schedule II -Valuation And Qu86
Schedule II -Valuation And Qualification Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Balance at Beginning of Period | $ 624 | $ 487 | $ 666 | |
Charges to Expense | 241 | 137 | (179) | |
Deductions | 0 | 0 | 0 | |
Balance at End of Period | 865 | 624 | 487 | |
Doubtful Accounts | ||||
Balance at Beginning of Period | 0 | 0 | 0 | |
Charges to Expense | 29 | 0 | 0 | |
Deductions | 0 | 0 | 0 | |
Balance at End of Period | 29 | 0 | 0 | |
Inventory | ||||
Balance at Beginning of Period | 624 | 487 | 666 | |
Charges to Expense | [1] | 212 | 137 | (179) |
Deductions | 0 | 0 | 0 | |
Balance at End of Period | $ 836 | $ 624 | $ 487 | |
[1] | Net change in inventory allowance, excluding iWear net realizable writedown. |