Ener-Core (ENCR) 10-Q 14 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 14, 2014
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'Ener-Core Inc.	'
Entity Central Index Key	'0001495536	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2014	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	113,683,362

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$4,031,000	$1,201,000
Accounts receivable, net	113,000	16,000
Restricted cash	50,000	50,000
Costs in excess of billings on uncompleted contracts	'	801,000
Inventory	29,000	29,000
Prepaid expenses and other current assets	58,000	46,000
Total current assets	4,281,000	2,143,000
Property and equipment, net	649,000	764,000
Intangibles, net	36,000	41,000
Deposits	28,000	28,000
Total assets	4,994,000	2,976,000
Current liabilities:	'	'
Accounts payable	800,000	419,000
Accrued expenses	418,000	266,000
Unearned revenue	'	701,000
Warranty liability	22,000	'
Provision for contract loss	15,000	100,000
Capital leases payable - short term	18,000	8,000
Total current liabilities	1,273,000	1,494,000
Long term liabilities:	'	'
Other	31,000	6,000
Derivative liabilities	328,000	'
Capital lease payable - long term	39,000	29,000
Total liabilities	1,671,000	1,529,000
Commitments and contingencies (Note 14)	'	'
Stockholders' equity:	'	'
Preferred stock, $0.0001 par value. Authorized 50,000,000 shares; no shares issued and outstanding at September 30, 2014 and December 31, 2013	'	'
Common stock, $0.0001 par value. Authorized 200,000,000 shares; 113,683,000 and 72,554,000 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	11,000	7,000
Additional paid-in capital	18,586,000	8,945,000
Accumulated deficit	-15,274,000	-7,505,000
Total stockholders' equity	3,323,000	1,447,000
Total liabilities and stockholders' equity	$4,994,000	$2,976,000

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement Of Financial Position [Abstract]	'	'
Preferred stock, par value (in dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued	'	'
Preferred stock, shares outstanding	'	'
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	113,683,000	72,554,000
Common stock, shares outstanding	113,683,000	72,554,000

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Revenues:	'	'	'	'
Revenues	$58,000	'	$868,000	$7,000
Revenues - related party	'	'	'	9,000
Total revenues	58,000	'	868,000	16,000
Cost of good sold:	'	'	'	'
Cost of goods sold	44,000	'	847,000	6,000
Cost of goods sold - related party	'	'	'	6,000
Total costs of goods sold	44,000	'	847,000	12,000
Gross Profit	14,000	'	21,000	4,000
Operating expenses:	'	'	'	'
Selling, general, and administrative	1,226,000	1,303,000	4,017,000	3,250,000
Research and development	514,000	718,000	2,259,000	1,388,000
Total operating expenses	1,740,000	2,021,000	6,276,000	4,638,000
Operating loss	-1,726,000	-2,021,000	-6,255,000	-4,634,000
Other income (expenses):	'	'	'	'
Other income	'	1,000	'	2,000
Interest expense	-21,000	'	-28,000	'
Interest expense - related party	'	'	'	-10,000
Amortization of debt discount	-2,694,000	'	-3,234,000	'
Gain on derivative liabilities	1,618,000	'	1,748,000	'
Total other income (expense), net	-1,097,000	1,000	-1,514,000	-8,000
Loss before provision for income taxes	-2,823,000	-2,020,000	-7,769,000	-4,642,000
Provision for income taxes	'	'	1,000	'
Net loss	($2,823,000)	($2,020,000)	($7,770,000)	($4,642,000)
Loss per share - basic and diluted	($0.03)	($0.03)	($0.10)	($0.07)
Weighted average common shares - basic and diluted	82,129,000	68,889,000	75,750,000	66,447,000

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows used in operating activities:	'	'
Net loss	($7,770,000)	($4,642,000)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	176,000	159,000
Amortization of debt discount	3,234,000	'
Gain on change in fair value of derivative liability	-1,748,000	'
Stock-based compensation	2,813,000	688,000
Warrants issued for services	72,000	'
Changes in assets and liabilities:	'	'
Restricted cash	'	-50,000
Inventories	'	-65,000
Accounts and other receivables	-97,000	'
Payments on contract loss	-64,000	'
Prepaid expenses and other current assets	-12,000	-347,000
Deferred revenue	-701,000	'
Accounts payable	383,000	429,000
Accrued expenses and other liabilities	-9,000	-118,000
Increase (Decrease) in Accrued Liabilities	19,000	'
Costs in excess of billings of uncompleted contracts	801,000	'
Net cash used in operating activities	-2,903,000	-3,946,000
Cash flows used in investing activities:	'	'
Purchases of property and equipment	-27,000	-22,000
Net cash used in investing activities	-27,000	-22,000
Cash flows from financing activities:	'	'
Proceeds from issuance of common stock,net	3,895,000	4,191,000
Advance from related party	'	184,000
Proceeds from related party notes payable	'	560,000
Payments on related party notes payable	'	-300,000
Proceeds from convertible notes payable	3,757,000	'
Payments on convertible notes payable	-1,883,000	'
Proceeds from exercise of stock options	'	3,000
Repayment of capital leases payable	-9,000	'
Net cash provided by financing activities	5,760,000	4,638,000
Net increase in cash and cash equivalents	2,830,000	670,000
Cash and cash equivalents at beginning of period	1,201,000	93,000
Cash and cash equivalents at end of period	4,031,000	763,000
Supplemental disclosure of cash flow information:	'	'
Income taxes	1,000	'
Interest	4,000	10,000
Supplemental disclosure of non-cash activities:	'	'
Conversion of accounts payable into common stock	'	227,000
Conversion of advances from related party into common stock	'	184,000
Conversion of notes payable into common stock	'	260,000
Equipment purchased under capital leases	29,000	'
Debt discount and derivative liabilities recorded upon issuance of warrants and convertible secured notes	2,078,000	'
Original issue discount of convertible secured note issued	572,000	'
Debt discount and accrued broker fees upon issuance of convertible secured note	186,000	'
Debt discount for warrants issued for broker fee in convertible secured note	154,000	'
Warranty liability recorded for product commissioned	22,000	'
Conversion of convertible notes and accrued interest into common stock	2,711,000	'
Issuance of warrants for services	72,000	'
Issuance of common stock for placement fees	150,000	'
Issuance of warrants for placement fees	$101,000	'

Description_of_Business

Description of Business	9 Months Ended
	Sep. 30, 2014
Description of Business [Abstract]	'
Description of Business	'
	Note 1 -  Description of Business
	Organization
	Ener-Core, Inc. (the “Company”, “we”, “us”, “our”), a Nevada corporation, was formed on April 29, 2010 as Inventtech, Inc.  As further described under “Reverse Merger” below, on July 1, 2013, we acquired our wholly owned subsidiary, Ener-Core Power, Inc., (formerly Flex Power Generation, Inc.), a Delaware corporation (“Ener-Core Power” or “Successor”).  Subsequent to the acquisition date, the shareholders of Ener-Core Power became our majority shareholders and its management assumed managerial responsibility and the Company’s name was changed to Ener-Core, Inc.  The acquisition was treated as a “reverse merger.”  All equity amounts presented in the financial statements have been retroactively restated to reflect the reverse merger as if it had occurred on November 12, 2012.
	Reverse Merger
	We entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Ener-Core Power and Flex Merger Acquisition Sub, Inc., a Delaware corporation and our wholly owned subsidiary (“Merger Sub”), pursuant to which the Merger Sub would merge with and into Ener-Core Power, with Ener-Core Power as the surviving entity (the “Merger”). Prior to the Merger, we were a public reporting “shell company,” as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended.  The Merger Agreement was approved by the boards of directors of each of the parties to the Merger Agreement.  In April 2013, the pre-merger public shell company effected a 30-for-1 forward split of its common stock.  All share amounts have been retroactively restated to reflect the effect of the stock split.
	As provided in the Contribution Agreement dated November 12, 2012 (the “Contribution Agreement”) by and among FlexEnergy, Inc. (“FlexEnergy” or “Parent”), FlexEnergy Energy Systems, Inc. (“FEES”), and Ener-Core Power, Ener-Core Power was spun-off from FlexEnergy as a separate corporation.  As a part of that transaction, Ener-Core Power received all assets (including intellectual property) and certain liabilities pertaining to the Gradual Oxidizer business (Predecessor) of the Parent.  The owners of Predecessor did not distribute ownership of Successor entity pro rata.  The transaction was recorded as a transfer of net assets between entities under common control and the assets and liabilities transferred to us were recorded at their historical carrying amounts.
	We completed the Merger on July 1, 2013 with Ener-Core Power.  The Merger was accounted for as a “reverse merger” and recapitalization. As part of the Merger, the pre-Merger public shell company shareholders cancelled 120,520,000 of common stock outstanding on July 1, 2013.  This cancellation was retroactively recorded as of the November 12, 2012 inception date of Ener-Core Power. Ener-Core Power was determined to be the accounting acquirer in the transaction and the transaction was treated as a recapitalization of Ener-Core Power.  The assets and liabilities and the historical operations reflected in the financial statements are those of Ener-Core Power and are recorded at the historical cost basis of Ener-Core Power.  Our assets, liabilities and results of operations were de minimis at the time of the Merger.
	Description of the Business
	We design, develop, and manufacture electrical power generation products fueled by previously wasted or unusable low quality natural and commercial gases, collectively “waste gases.” We strive to expand the operating range of gaseous fuels while improving emissions, using our internally developed technologies we refer to collectively as “Gradual Oxidization” or a “Gradual Oxidizer” unit. The Gradual Oxidizer integrates with a gas turbine and generator to create a power station. The Gradual Oxidizer unit converts the waste gases through an oxidization process which generates heat and in turn drives an electrical generating turbine, as opposed to traditional combustion gas units which combust, or burn industrial grade gases, typically with more expensive and higher quality fuels, to generate heat to drive an electrical generating turbine. Our products aim to expand power generation into previously uneconomical markets while, at the same time, reduce gaseous emissions from industrial processes that contribute to air pollution and climate change.
	Our initial product, the FP250, is a complete system consisting of our designed and patented gradual oxidizer, integrated with a gas turbine and generator.  The FP250 has been designed to operate on fuels from 100% combustible gas down to concentrations of 5% or less combustible gas content.  The FP250 has applications in landfill, oil production, coal mining, and other operations, and offers our customers two distinct value propositions: the destruction of low quality waste gases with no harmful emissions and the generation of energy from a renewable fuel source. We sold and installed our first commercial FP250 unit in the second quarter of 2014 into a landfill application in the Netherlands.
	We are currently beginning development of our second commercial product, which will be a 2 MW Ener-Core Gradual Oxidizer that will be combined with a two megawatt gas turbine.  We have completed system layout and analytic models integrating our Gradual Oxidizer with the turbine and have initiated design and development of the 2 MW powerstation.  We expect that we will receive commercial orders for this 2 MW system in 2014, run field test units in late 2015, and complete commercial shipments shortly thereafter.
	We sell our products directly and through distributors in North America, Europe and Asia. We expect to continue to expand our distribution network worldwide, as commercial opportunities warrant this expansion.
	Going Concern
	Our condensed consolidated financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business.  Since our inception, we have made a substantial investment in research and development to develop the Gradual Oxidizer, have successfully deployed a FP250 field test unit at the U.S. Army base at Fort Benning, Georgia, and installed and commissioned our first commercial FP250 unit in the Netherlands in the second quarter of 2014.
	We have sustained recurring net losses and negative cash flows since inception and have not yet established an ongoing source of revenues sufficient to cover our operating costs and allow us to continue as a going concern. Despite a capital raise of $4.0 million in September 2014, we expect to require additional sources of capital to support the Company’s growth initiatives. We must secure additional funding to continue as a going concern and execute our business plan.
	Management’s plan is to obtain such resources by obtaining capital sufficient to meet our operating expenses by seeking additional equity and/or debt financing. The cash and cash equivalents balance (including restricted cash) on September 30, 2014 and November 13, 2014, was $4.1 million and $2.9 million (including restricted cash of $50,000), respectively.
	On April 16, 2014, we issued $4.6 million of senior secured convertible notes (see Note 8), with net proceeds of $3.8 million, of which $2.3 million was held in a control account subject to certain release conditions.  On August 15, 2014, we converted $2.7 million of the notes into 13.5 million shares of our common stock (see Note 10), and we received proceeds of $0.4 million from the control account.  The remaining $1.9 million in the control account was returned to the lenders.
	On September 22, 2014, we issued approximately 26.7 million shares of our common stock in exchange for cash proceeds of $3.9 million, net of 0.1 million of cash offering costs.
	We project that our unrestricted cash balance of $2.9 million as of November 13, 2014, will continue to meet our working capital needs, general corporate purposes, and related obligations into the second quarter of 2015 at our current spending levels. However, we expect to require significantly more cash for working capital and as financial security to support our growth initiatives.
	Management’s plan is to obtain capital sufficient to meet fund our growth initiatives by seeking additional equity and/or debt financing. We will need to obtain additional financing to continue our current operations past July, 2015. We cannot guaranty that we will be able to complete a financing on a timely basis, with favorable terms or at all. Even if we are able to secure financing, we may still have to significantly reduce costs and delay projects, which would adversely affect our business, customers and program development.
	We will pursue raising additional debt or equity financing to fund our operations and product development.  If future funds are raised through issuance of equity or debt, these securities could have rights, privileges, or preferences senior to those of common stock and debt covenants that could impose restrictions on the Company’s operations. The sale of additional equity securities or debt financing will likely result in additional dilution to the Company’s current shareholders.   Management’s inability to successfully complete any other financing will adversely impact our ability to continue as a going concern. If our business fails or we are unable to seek immediate financing, our investors may face a complete loss of their investment.
	The accompanying consolidated financial statements do not give effect to any adjustments that might be necessary if we were unable to meet our obligations or continue operations as a going concern.

Summary_of_Significant_Account

Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2014

Summary of Significant Accounting Policies [Abstract]

'

Summary of Significant Accounting Policies

'

Note 2 -  Summary of Significant Accounting Policies

Basis of Presentation

The Company has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. We have condensed or omitted certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with GAAP pursuant to such rules and regulations. The unaudited condensed financial statements reflect all adjustments, which are normal and recurring, that are, in the opinion of management, necessary to fairly state the financial position as of September 30, 2014 and the results of operations for the related three and nine months ended September 30, 2014 and 2013, respectively, and results of cash flows for the nine months ended September 30, 2014 and 2013, respectively.  The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or for any future periods. The unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2013, that have been included in the Company's annual report on Form 10-K filed on April 15, 2014.

The accompanying condensed consolidated financial statements include our accounts and our wholly-owned subsidiary, Ener-Core Power.  All significant intercompany transactions and accounts have been eliminated in consolidation. All amounts are rounded to the nearest $000, except certain per share amounts within the footnotes.

Segments

We operate in one segment.  All of our operations are located domestically.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.  Significant items subject to such estimates and assumptions include but are not limited to: collectability of receivables; the valuation of certain assets, useful lives, and carrying amounts of property and equipment, equity instruments and share-based compensation; provision for contract losses; valuation allowances for deferred income tax assets; valuation of derivative liabilities; and exposure to warranty and other contingent liabilities.  We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates.

Foreign Currency Adjustments

Our functional currency for all operations worldwide is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the year. Income statement accounts are translated at average rates for the year.  At September 30, 2014 and December 31, 2013, we did not hold any foreign currency asset or liability amounts.  Gains and losses resulting from foreign currency transactions are reported as other income in the period they occurred.

Concentrations of Credit Risk

Cash and Cash Equivalents

We maintain our non-interest bearing transactional cash accounts at financial institutions for which the Federal Deposit Insurance Corporation (“FDIC”) provides insurance coverage of up to $250,000.  For interest bearing cash accounts, from time to time, balances exceed the amount insured by the FDIC.  We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk related to these deposits.  At September 30, 2014, we had $3.8 million in excess of the FDIC limit.

We consider all highly liquid investments available for current use with an initial maturity of three months or less and are not restricted to be cash equivalents.  We invest our cash in short-term money market accounts.

Restricted Cash

The Special Deposit Account Control Agreement

In conjunction with our convertible secured notes payable dated April 16, 2014 (see Note 8), we entered into a Special Deposit Account Control Agreement (“Control Agreement”) whereby $2.3 million of the proceeds from the convertible secured notes was placed in a control account that the lender representative controls, with the funds to be released at the lender representative’s option, or when the outstanding convertible secured notes payable are less than the balance in the control account, at which time the lender representative would release the funds. In August 2014, the Control Agreement was terminated in conjunction with the settlement of the April 2014 Convertible notes and we received proceeds of $0.4 million from the control account while the remaining $1.9 million in the control account was returned to the lenders.

Collateral Account

Under a credit card processing agreement with a financial institution that was entered in 2013, we are required to maintain funds on deposit with the financial institution as collateral.  The amount of the deposit is at the discretion of the financial institution, and was $50,000 on September 30, 2014 and December 31, 2013.

Accounts Receivable

Our accounts receivable are typically from credit worthy customers or, for international customers, are supported by guarantees or letters of credit.  For those customers to whom we extend credit, we perform periodic evaluations of them and maintain allowances for potential credit losses as deemed necessary.  We generally do not require collateral to secure accounts receivable.  We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in existing accounts receivable.  We periodically review our accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt.  Account balances deemed to be uncollectible are charged to the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

At September 30, 2014, we reserved $26,000 related to rents receivable from our sublessee. At December 31, 2013, we did not have any allowance for doubtful accounts.  Although we expect to collect amounts due, actual collections may differ from the recorded amounts.

As of September 30, 2014 and December 31, 2013, two and one customers, respectively, accounted for 100% of net accounts receivable. One customer accounted for 97% of net revenues for the nine months ended September 30, 2014.  A different customer accounted for 100% of the net revenues for the three months ended September 30, 2014. Two customers accounted for 100% of net revenues for the nine months ended September 30, 2013. There was no revenue for the three months ended September 30, 2013.

Accounts Payable

As of September 30, 2014 and December 31, 2013, three and two vendors collectively accounted for approximately 47% and 48% of total accounts payable. There were no purchases made for the three or nine months ended September 30, 2014. For the three and nine months ended September 30, 2013, one vendor accounted for 66% of our purchases.

Inventory

Inventory, which consists of raw materials, is stated at the lower of cost or net realizable value, with cost being determined by the average-cost method, which approximates the first-in, first-out method.  At each balance sheet date, we evaluate our ending inventory for excess quantities and obsolescence.  This evaluation primarily includes an analysis of forecasted demand in relation to the inventory on hand, among consideration of other factors.  Based upon the evaluation, provisions are made to reduce excess or obsolete inventories to their estimated net realizable values.  Once established, write-downs are considered permanent adjustments to the cost basis of the respective inventories.  At September 30, 2014 and December 31, 2013, we did not have a reserve for slow-moving or obsolete inventory.

Costs in Excess of Billings on Uncompleted Contracts

Costs in excess of billings on uncompleted contracts in the accompanying consolidated balance sheets represents accumulation of costs for labor, materials, overhead and other costs that have been incurred. These costs will be recognized as costs of goods sold when the contract is considered complete in accordance with the completed-contract method.  Costs in excess of billings on uncompleted contracts were $0 and $801,000 at September 30, 2014 and December 31, 2013, respectively.  In June 2014, our contract with Efficient Energy Conversion Turbo Machinery, B.V. (“EECT”) was completed (see Note 14), resulting in the recognition of revenue related to the contract plus change orders and all associated costs.

Property and Equipment

Property and equipment are stated at cost, and are being depreciated using the straight-line method over the estimated useful lives of the related assets, ranging from three to ten years. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed.  At the time property and equipment are retired or otherwise disposed of, the cost and related accumulated depreciation accounts are relieved of the applicable amounts.  Gains or losses from retirements or sales are reflected in the consolidated statements of operations.

Deposits

Deposits primarily consist of amounts incurred or paid in advance of the receipt of fixed assets or are deposits for rent and insurance.

Deferred Rent

We record deferred rent expense, which represents the temporary differences between the reporting of rental expense on the financial statements and the actual amounts remitted to the landlord. The deferred rent portion of lease agreements are leasing inducements provided by the landlord.

Intangible Assets

We amortize our intangible assets with finite lives over their estimated useful lives.  See Note 6 for additional details regarding the components and estimated useful lives of intangible assets.

Impairment of Long-Lived Assets

We account for our long-lived assets in accordance with the accounting standards which require that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical carrying value of an asset may no longer be appropriate.  We consider the carrying value of assets may not be recoverable based upon its review of the following events or changes in circumstances: the asset’s ability to continue to generate income from operations and positive cash flow in future periods; loss of legal ownership or title to the assets; significant changes in our strategic business objectives and utilization of the asset; or significant negative industry or economic trends.  An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset are less than its carrying amount. As of September 30, 2014 and December 31, 2013, we do not believe there have been any other impairments of our long-lived assets.  There can be no assurance, however, that market conditions will not change or demand for our products will continue, which could result in impairment of long-lived assets in the future.

Fair Value of Financial Instruments

Our financial instruments consist primarily of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, derivative liabilities, Secured Notes payable and related debt discounts and capital lease liabilities.  Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2014 and December 31, 2013. The carrying amounts of short-term financial instruments are reasonable estimates of their fair values due to their short-term nature or proximity to market rates for similar items.  See Note 9 for additional fair value disclosure.

Derivative Financial Instruments

The Company issues derivative financial instruments in conjunction with its debt and equity offerings and to provide additional incentive to investors and placement agents. The Company’s uses derivative financial instruments in order to obtain the lowest cash cost-source of funds. Derivative liabilities are recognized in the condensed consolidated balance sheets at fair value based on the criteria specified in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) topic 815-40 “ Derivatives and Hedging – Contracts in Entity’s own Equity .” The estimated fair value of the derivative liabilities is calculated using either the Black-Scholes-Merton or Monte Carlo simulation model method.

The Company issued common stock warrants and convertible secured notes payable with conversion features in April 2014. These embedded derivatives were evaluated under ASC topic 815-40, were bifurcated from the debt host and are classified as liabilities on the condensed consolidated balance sheet. The Company records the warrants and embedded derivative liabilities at fair value and adjusts the carrying value of the common stock warrants and embedded derivatives to their estimated fair value at each reporting date with the increases or decreases in the fair value of such warrants and derivatives at each reporting date, recorded as a gain or (loss) in the condensed consolidated statements of operations (See Notes 8 and 9).

The Company issued common stock warrants for services in September 2014. These derivative securities were evaluated under ASC topic 815-40 and determined that they did not need to be recorded as liabilities on the condensed consolidated balance sheet. The warrants were valued on the date of issuance at fair value.

Revenue Recognition

We generate revenue from the sale of our clean power energy systems and from consulting services. Revenue is recognized when there is persuasive evidence of an arrangement, product delivery and acceptance have occurred, the sales price is fixed or determinable and collectability of the resulting receivable is reasonable assured.  Amounts billed to clients for shipping and handling are classified as sales of product with related costs incurred included in cost of sales.

Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded.  We defer any revenue for which the services have not been performed or which is subject to refund until such time that we and our customer jointly determine that the services have been performed or no refund will be required.

Revenues under long-term construction contracts are generally recognized using the completed-contract method of accounting.  Long-term construction-type contracts for which reasonably dependable estimates cannot be made or for which inherent hazards make estimates difficult are accounted for under the completed-contract method. Revenues under the completed-contract method are recognized upon substantial completion – that is acceptance by the customer, compliance with performance specifications demonstrated in a factory acceptance test or similar event.  Accordingly, during the period of contract performance, billings and costs are accumulated on the balance sheet, but no profit or income is recorded before completion or substantial completion of the work.  Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable.  Changes in estimate of profit or loss on contracts are included in earnings on a cumulative basis in the period the estimate is changed.  We had deferred all amounts received on our contract with EECT until the contract was substantially completed, which occurred in June 2014, at which time the entire contract, including change orders, was recorded as revenue.   As of September 30, 2014 and December 31, 2013, we had a provision for contract loss of approximately$0 and $100,000, respectively, related to our contract with EECT.

Research and Development Costs

Research and development costs are expensed as incurred.  Research and development was $0.5 million and $0.7 million for the three months ended September 30, 2014 and 13, respectively, and $2.3 million and $1.4 million for the nine months ended September 30, 2014 and 2013, respectively.

Share-Based Compensation

We maintain a stock option plan (see Note 12) and record expenses attributable to the stock option plan. We amortize share-based compensation from the date of grant on a weighted average basis over the requisite service period for the entire award.

We account for equity instruments issued to consultants and vendors in exchange for goods and services at fair value.  The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant’s or vendor’s performance is complete.  In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized to expense in accordance with the services provided under the underlying contract.

Income Taxes

We account for income taxes under FASB ASC 740 “Income Taxes.” Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that we will not realize tax assets through future operations.

Earnings (Loss) per Share

Basic earnings (loss) per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares assumed to be outstanding during the period of computation.  Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional common shares were dilutive.  Approximately 17.9 million shares of common stock are issuable upon the exercise of outstanding options and warrants at September 30, 2014.  There were no options and warrants outstanding at September 30, 2013. Dilutive equivalents were excluded from the computation of diluted loss per share due to the anti-dilutive effect on net loss per share.

Three Months Ended

Nine Months Ended

September 30,

September 30,

2014

2013

2014

2013

Net loss

$

(2,823,000

)

$

(2,020,000

)

$

(7,770,000

)

$

(4,642,000

)

Weighted average number of common shares outstanding:

Basic and diluted

82,129,000

68,889,000

75,750,000

66,447,000

Net loss attributable to common stockholders per share:

Basic and diluted

$

(0.03

)

$

(0.03

)

$

(0.10

)

$

(0.07

)

Comprehensive Income (Loss)

We have no items of other comprehensive income (loss) in any period presented. Therefore, net loss as presented in our Condensed Consolidated Statements of Operations equals comprehensive loss.

Recently Issued Accounting Pronouncements

Effective January 1, 2014, we adopted FASB Accounting Standards Update (“ASU”) 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting (“ASU 2013-07”). The amendments in ASU 2013-07 clarify when an entity should apply the liquidation basis of accounting and provide principles for the recognition and measurement of associated assets and liabilities. In accordance with the amendments, the liquidation basis is used when liquidation is imminent.  Liquidation is considered imminent when the likelihood is remote that the organization will return from liquidation and either: (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties; or (b) a plan for liquidation is being imposed by other forces. The adoption of ASU 2013-07 did not have a material impact on our condensed consolidated financial statements.

Effective January 1, 2014, we adopted FASB ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). The amendments in ASU 2013-11 clarify that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed.  In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of ASU 2013-11 did not have a material impact on our condensed consolidated financial statements.

In May, 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 provides a framework for addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. ASU 2014-09 is effective beginning with the calendar year ended December 31, 2017. The Company has not yet assessed the impact ASU 2014-09 will have upon adoption on its financial position, results of operations or cash flows.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 requires that an entity's management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. Certain disclosures are necessary in the footnotes to the financial statements in the event that conditions or events raise substantial doubt about an entity's ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter and early application is permitted. The Company has not yet assessed the impact ASU 2014-15 will have upon adoption.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2014
Inventory [Abstract]	'
Inventory	'
	Note 3 - Inventory
	Inventory consists of the following:
		September 30, 2014		December 31, 2013
		(unaudited)
	Raw materials	$	29,000	$	29,000
	Work-in-process		—		—
	Finished goods		—		—
	Less: inventory reserve		—		—
	Total inventory	$	29,000	$	29,000

Prepaid_Expenses_and_Other_Cur

Prepaid Expenses and Other Current Assets	9 Months Ended
	Sep. 30, 2014
Prepaid Expenses and Other Current Assets [Abstract]	'
Prepaid expenses and other current assets	'
	Note 4 - Prepaid expenses and other current assets
	Prepaid expenses and other current assets consisted of the following:
		September 30, 2014		December 31,
				2013
		(unaudited)
	Prepaid rent	$	26,000	$	26,000
	Prepaid insurance		15,000		11,000
	Prepaid licenses		4,000		6,000
	Prepaid fees		5,000		3,000
	Prepaid deposit		8,000		-
	Prepaid professional fees		-		-
	Total	$	58,000	$	46,000

Property_and_Equipment_Net

Property and Equipment, Net	9 Months Ended
	Sep. 30, 2014
Property and Equipment, Net [Abstract]	'
Property and Equipment, Net	'
	Note 5 - Property and Equipment, Net
	Property and equipment, net consisted of the following:
		September 30, 2014			December 31, 2013
		(unaudited)
	Machinery and equipment	$	877,000		$	849,000
	Office furniture and fixtures		198,000			198,000
	Computer equipment and software		126,000			97,000
	Total cost		1,201,000			1,144,000
	Less accumulated depreciation		(552,000	)		(380,000	)
	Net	$	649,000		$	764,000
	Assets recorded under capital leases and included in property and equipment in our balance sheets consist of the following:
		September 30, 2014			December 31, 2013
		(unaudited)
	Machinery and equipment	$	27,000		$	27,000
	Computer equipment and software		46,000			17,000
	Total assets under capital lease		73,000			44,000
	Less accumulated depreciation		(16,000	)		(1,000	)
	Net assets under capital lease	$	56,000		$	43,000
	Depreciation expense consisted of the following:
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014		2013
	Research and development	$	28,000		$	26,000		$	86,000	$	77,000
	General and administrative		27,000			26,000			85,000		77,000
		$	55,000		$	52,000		$	171,000	$	154,000
	Amortization of assets under capital lease was $5,000 and $0 for the three months ended September 30, 2014 and 2013, respectively, and $15,000 and $0 for the nine months ended September 30, 2014 and 2013, respectively.

Intangibles_Net

Intangibles, Net	9 Months Ended
	Sep. 30, 2014
Intangibles, Net [Abstract]	'
Intangibles, Net	'
	Note 6 - Intangibles, Net
	Intangibles, net consisted of the following:
		September 30, 2014			December 31, 2013
		(unaudited)
	Patents	$	80,000		$	80,000
	Less accumulated amortization		(44,000	)		(39,000	)
	Net	$	36,000		$	41,000
	Our patents are amortized over their remaining life.  Amortization expense related to these intangible assets was $2,000 for the three months ended September 30, 2014 and 2013, and $5,000 for the nine months ended September 30, 2014 and 2013.
	Amortization expense on intangible assets is $2,000 for the remainder of 2014, $7,000 per year for the years ending December 31, 2015 through December 31, 2018, and $6,000 for the year ending December 31, 2019.
	We continue to invest in our intellectually property portfolio and are actively filing for patent protection for our technology in both the United States and abroad.  The costs, including legal, associated with compiling and filing patent applications are expensed in selling, general and administrative expenses as incurred.

Accrued_Expenses

Accrued Expenses	9 Months Ended
	Sep. 30, 2014
Accrued Expenses [Abstract]	'
Accrued Expenses	'
	Note 7 - Accrued Expenses
	Accrued expenses consisted of the following:
		September 30, 2014		December 31,  2013
		(unaudited)
	Accrued professional fees		212,000	$	81,000
	Accrued payroll		26,000		26,000
	Accrued vacation		74,000		76,000
	Accrued expense reports		-		29,000
	Accrued board fees		20,000		-
	Accrued taxes		-		7,000
	Accrued other		51,000		12,000
	Accrued liabilities owed by Parent - reimbursable under Contribution Agreement		35,000		35,000
	Total accrued expenses	$	418,000	$	266,000

Convertible_Secured_Notes_Paya

Convertible Secured Notes Payable	9 Months Ended
	Sep. 30, 2014
Convertible Secured Notes Payable [Abstract]	'
Convertible Secured Notes Payable	'
	Note 8 – Convertible Secured Notes Payable
	Secured Notes
	Secured Notes payable activity is summarized in the table below:
			Secured			Debt			Net Total
			Notes			Discount
	Original Value - April 16, 2014		$	4,575,000		$	(3,236,000	)	$	1,339,000
	Amortization of debt discount			-			540,000			540,000
	Capitalization of Interest Payable			2,000			-			2,000
	Conversion and redemption of secured Notes Payable			(4,577,000	)		2,696,000			(1,881,000	)
	Ending balance - September 30, 2014			-			-			-
	On April 16, 2014, the Company issued $4.6 million of convertible secured promissory notes (“Secured Notes”) in a private placement to three institutional investors. The Secured Notes carried interest at a rate of 0.28% per year, subject to certain adjustments, and were originally set to mature in October 2015. The Secured Notes were convertible, at the holders’ option, into shares of the Company's common stock at an initial conversion price of $0.67 per share, subject to adjustments in the event the Company issued equity securities at a price per share below the conversion price. Interest on the Secured Notes was payable quarterly and the principal amount of the Secured Notes amortized monthly with payments originally set to begin on July 16, 2014 and extended in July 2014 to begin August 15, 2014 (see below). On each of the monthly principal installment dates, the Company’s scheduled principal amortization payment was to have been $286,000. Installment payments could be settled, at the Company’s option, in cash or shares of common stock, subject to certain conditions including: (i) the daily dollar trading volume of the Company's common stock during the thirty (30) trading days prior to the applicable date of determination shall be at least $50,000 commencing August 9, 2014; and (ii) the daily weighted average price of the Company's common stock for each trading day during the thirty (30) trading days ending on the trading day immediately prior to the applicable date of determination was initially set to be at least $0.50. Also subject to certain conditions, at any time, the holder may accelerate a limited amount of scheduled amortization payments.
	The Secured Notes were issued with detachable warrants to purchase up to 4.1 million shares of its common stock, exercisable for five years with an initial exercise price of $0.78 per share subject to potential future anti-dilution adjustments for the exercise price in the event the Company issues equity securities at a price per share lower than the warrant exercise price.
	The Company received gross proceeds of $4.0 million, and incurred cash transaction expenses of approximately $0.2 million. Of the $3.8 million net proceeds, $2.3 million was placed in a control account pursuant the Control Agreement and $1.5 million was available for the company to be used for overhead and general working capital purposes. The release of additional cash from the Control Agreement was at the discretion of the investors.
	In connection with the issuance of the Secured Notes, the Company agreed to pay the placement agent 6.5% of the total principal amount of the Secured Notes, of which $0.2 million were to be paid as the funds are released from the control account. The placement agent was granted warrants to purchase up to 0.7 million shares of common stock. The warrants are exercisable at $0.78 per share (subject to future anti-dilution adjustments) and expire on April 15, 2019.
	The Secured Notes were initially recorded net of a discount of $3.2 million, reflecting the original issue discount of $0.6 million, the fair value of the warrants and embedded derivatives within the Secured Notes on the issuance date of $2.1 million and $0.5 million in costs related to the issuance of the Secured Notes. See below for further detail on the fair value of the warrants and derivatives. The $3.2 million debt discount was amortized through interest expense on the condensed consolidated statements of operations over the term of the Secured Notes.
	Amendment to Secured Notes
	On July 11, 2014, the Company entered into a letter agreement with the investors who are parties to the Securities Purchase Agreement dated as of April 15, 2014 (the “SPA”). The letter agreement amended certain terms of the SPA and the Secured Notes issued thereunder.
	The letter agreement amended the SPA as follows:
		●	The period of time during which the Company may sell and issue up to $2.0 million of its equity securities without the consent of the investors was increased from 45 days commencing April 16, 2014, to 120 days.
	The letter agreement amended the Secured Notes as follows:
		●	The date of the Company’s first monthly installment payment was changed from July 16, 2014, to August 15, 2014;
		●	The date of the Company’s final monthly installment, as well as the maturity date of the Secured Notes, was changed from October 16, 2015, to November 16, 2015;
		●	The required closing price of the Company’s common stock in order to satisfy certain equity conditions was changed from $0.50 to $0.35; and
		●	The percentage used to determine the Market Price (as defined in the Secured Notes) of the Company’s common stock, was changed from 85% to 82%.
	Except for the foregoing amendments, the remaining terms of the SPA and the Secured Notes remained unchanged. The investors who were signatories to the letter agreement collectively constitute the Required Holders (as defined in the SPA and the Secured Notes) necessary to effectuate the foregoing amendments.
	Conversion and Redemption of Secured Notes Payable
	On August 14, 2014, we entered into a Conversion and Redemption Agreement (each, an "Agreement" and together the "Agreements") with each holder of the Secured Notes. Pursuant to the Agreements:
		●	The conversion price of the Secured Notes was adjusted to $0.20 per share;
		●	The holders of the Secured Notes converted a portion of the Secured Notes held by them, in an aggregate amount of $2,711,000, into 13,555,000 shares of our common stock in the aggregate based on the adjusted conversion price;
		●	The holders of the Secured Notes redeemed a portion of the Secured Notes held by them for cash, in the aggregate amount of $1,866,000, from the funds held in the control account;
		●	The Secured Notes were cancelled immediately following the foregoing conversion and redemption; and
		●	$405,000, net of $17,000 of legal fees, of the funds held in the control account was transferred to us immediately after the closing of the Agreements.
	The closing of the Agreements occurred on August 15, 2014, and we received funds from the control account on August 18, 2014. The following reflect changes to our financial statements resulted upon the conversion and redemption of the secured notes payable:
			Increase (decrease)
	Operating Cash		$	405,000
	Restricted Cash		$	(2,288,000	)
	Convertible Note		$	(4,575,000	)
	Discount on convertible note		$	(2,696,000	)
	Derivative liabilities		$	(724,000	)
	Common stock		$	1,000
	Paid in capital		$	2,710,000
	Outstanding shares			13,555,000
	Derivative Liabilities
	We apply the accounting standard that provides guidance for determining whether an equity-linked financial instrument, or embedded feature, is indexed to an entity’s own stock. The standard applies to any freestanding financial instruments or embedded features that have the characteristics of a derivative, and to any freestanding financial instruments that are potentially settled in an entity’s own common stock.
	The common stock purchase warrants were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation. The warrants do not qualify for hedge accounting, and as such, all future changes in the fair value of these warrants will be recognized currently in earnings until such time as the warrants are exercised or expire. These common stock purchase warrants do not trade in an active securities market, and as such, we estimate the fair value of these warrants and embedded conversion features using the Black-Scholes Option pricing model using the following assumptions:
				2014
	Annual dividend yield			-
	Expected life (years)			1.25-5.0
	Risk-free interest rate			0.04%-0.07	%
	Expected volatility			47.48%-60.06	%
	Expected volatility is based primarily on historical volatility of us and our peer group. Historical volatility was computed using weekly pricing observations for us and daily pricing observations for our peer group for recent periods that correspond to the expected term. We believe this method produces an estimate that is representative of our expectations of future volatility over the expected term of these warrants.
	We currently have no reason to believe future volatility over the expected remaining life of these warrants is likely to differ materially from historical volatility. The expected life is based on the remaining term of the warrants. The risk-free interest rate is based on one-year to five-year U.S. Treasury securities consistent with the remaining term of the warrants.
	The fair values of the April 2014 warrants and embedded derivatives, which require bifurcation from the debt host, were initially recorded within long-term liabilities on the condensed consolidated balance sheets. The embedded derivatives relate to the conversion option, redemption in the case of an event of default and redemption in the case of a change in control features of the convertible secured note. On August 14, 2014, the convertible secured note related derivatives were marked to market with the change recorded as an adjustment to the carrying value of these liabilities and a gain on derivatives liabilities recorded in the consolidated statements of operations and the remaining carrying value was eliminated when the underlying debt was redeemed and converted as described above. The April 2014 warrants will continue to be marked to market quarterly, with any change recorded as an adjustment to the carrying value of these liabilities and the gain or (loss) on warrant derivative liabilities recorded in the consolidated statements of operations. The fair value of the warrants and embedded derivatives from the issuance date to the September 30, 2014 declined $1.6 million. The following table provides a reconciliation of the derivative liability activity:
			Warrants			Embedded Note			Total
			Liability			Conversion
						Feature
	Original Value - April 16, 2014		$	1,250,000		$	828,000		$	2,078,000
	Adjustment to fair value			(26,000	)		(104,000	)		(130,000	)
	Balance – June 30, 2014		$	1,224,000		$	724,000		$	1,948,000
	Adjustment to fair value, Conversion Feature, August 14, 2014			-			(723,000	)		(723,000	)
	Conversion of convertible secured notes		$	-		$	(1,000	)	$	(1,000	)
	Adjustment to fair value, Warrants			(896,000	)		-			(896,000	)
	Ending balance - September 30, 2014		$	328,000		$	-		$	328,000

Fair_Value_Measurements_and_Di

Fair Value Measurements and Disclosures	9 Months Ended
	Sep. 30, 2014
Fair Value Measurements and Disclosures [Abstract]	'
Fair Value Measurements and Disclosures	'
	Note 9 – Fair Value Measurements and Disclosures
	Fair value is defined as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity. In addition, the fair value of liabilities should include consideration of non-performance risk, including the Company's own credit risk.
	Inputs used in measuring fair value are prioritized into a three-level hierarchy based on whether the inputs to those measurements are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. The fair-value hierarchy requires the use of observable market data when available and consists of the following levels:
		●	Level 1 – Quoted prices for identical instruments in active markets;
		●	Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and
		●	Level 3 – Valuations derived from valuation techniques in which one or more significant inputs are unobservable.
	The following tables present information on the Company’s financial instruments as of September 30, 2013:
			Fair Value		Level 1		Level 2		Level 3
	Warrant derivative liability			328,000		-		-		328,000

Notes_and_Capital_Leases_Payab

Notes and Capital Leases Payable	9 Months Ended
	Sep. 30, 2014
Notes and Capital Leases Payable [Abstract]	'
Notes and Capital Leases Payable	'
	Note 10 - Notes and Capital Leases Payable
	Notes Payable
	On October 24, 2013, we entered into a Loan, Security and Guarantee agreement with the Export-Import Bank of the United States (“Ex-Im Bank”).  Under this agreement, pursuant to the Global Credit Express Program, we can borrow up to a maximum amount of $400,000 from November 4, 2013 until November 4, 2014.  All outstanding principal and accrued and unpaid interest under each disbursement is due and payable in full on November 4, 2014 or per the conditions precedent noted below.  Interest accrues at a rate of 4.24% per year. There were no outstanding principal amounts as of September 30, 2014 and December 31, 2013.
	Capital Leases Payable
	Capital leases payable consisted of the following:
		September 30, 2014			December 31, 2013
		(unaudited)
	Capital lease payable to De Lange Landon secured by forklift, 10.0% interest, due on October 1, 2018, monthly payment of $451.50.		19,000			20,000
	Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on November 16, 2016, monthly payment of $607.58.		14,000			17,000
	Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on December 15, 2016, monthly payment of $604.93.	$	14,000		$	-
	Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on January 3, 2017, monthly payment of $415.40.		10,000			-
	Total capital leases		57,000			37,000
	Less: current portion		(18,000	)		(8,000	)
	Long-term portion of capital leases	$	39,000		$	29,000
	The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of September 30, 2014, are as follows:
		Year Ending			Amount
		December 31
			2014		$10,000
			2015		25,000
			2016		24,000
			2017		6,000
			2018		5,000
	Net minimum lease payments				70,000
	Less: Amount representing interest				(12,000	)
	Less: Taxes				(1,000	)
	Present value of net minimum lease payments				57,000
	Less: Current maturities of capital lease obligations				(18,000	)
	Long-term capital lease obligations				$39,000

Equity

Equity	9 Months Ended
	Sep. 30, 2014
Equity [Abstract]	'
Equity	'
	Note 11 - Equity
	Common Stock Issuances
	On August 15, 2014, we issued 13,555,000 shares of our common stock to the holders of the Secured Notes for the conversion of $2,711,000 of Secured Notes held by them based on the adjusted conversion price described in Note 9 above.
	On September 22, 2014, we sold and issued 26,666,658 shares of our common stock to 36 accredited investors at $0.15 per share (the “September 2014 PIPE”. We received net cash proceeds of $3,895,000 consisting of $4,000,000 in gross proceeds reduced by $105,000 in cash offering costs consisting of cash placement fees of $73,000 and legal fees of $32,000. In addition to the cash offering costs, we also issued: (1) 1,000,000 restricted shares of the Company’s common stock valued at $150,000; and (2) warrants to purchase up to 1,325,000 shares of the registrant’s common stock at an exercise price of $0.50 per share. The warrants issued for placement agent fees are exercisable for a period of four years after their issuance dates. The warrants issued to the placement agents were recorded to offering costs at fair value of $101,000 using the Black-Scholes option pricing model using a market price of $0.27 per share on the date of issuance, a risk free rate of 1.8%, a dividend rate of 0%, and volatility of 56.93%.
	In connection with the September 2014 PIPE transaction, the Company entered into a Registration Rights Agreement with the Investors (the “Registration Rights Agreement”), pursuant to which the Company was required to file a registration statement related to the September 2014 PIPE transaction with the SEC covering the resale of the Shares that were issued to the Investors. The Company filed the initial registration statement on October 22, 2014.

Stock_Options_and_Warrants

Stock Options and Warrants	9 Months Ended
	Sep. 30, 2014
Stock Options and Warrants [Abstract]	'
Stock Options and Warrants	'
	Note 12 - Stock Options and Warrants
	On July 1, 2013, our Board of Directors adopted and approved the 2013 Equity Incentive Plan.  The plan authorizes us to grant non-qualified stock options and restricted stock purchase rights to purchase up to 14,000,000 shares of our common stock with vesting to employees (including officers) and other service providers. To date, all issuances under the 2013 Equity Incentive Plan have been stock options. No restricted shares have been issued under the 2013 Equity Incentive plan.  At September 30, 2014, 3.9 million shares were available for future grants and total unrecognized deferred stock compensation expected to be recognized over the remaining vesting period of 3.89 years for outstanding grants was $3.7 million.
	In April 2014, all outstanding employee stock options granted under the 2013 Equity Incentive Plan were cancelled and reissued by our Board of Directors with an exercise price of $0.35 per share. Each reissued stock option grant had 15% of the stock option vesting immediately and the remainder in 1/36th in monthly increments over the next three years. As a result of the cancellation and reissuance of the options, we recognized a non-cash charge of $840,000 for the incremental change in fair value of the cancelled and reissued options over the vesting period of the reissued options. This cancellation and reissuance affected 21 employees who held 8.6 million stock options as of the date of the cancellation and reissuance.
	The fair value of option awards and warrants issued is estimated on the grant date using the Black-Scholes option valuation model.
	Estimates of fair value are not intended to predict actual future events or the value ultimately realized by employees who receive equity awards, and subsequent events are not indicative of the reasonableness of the original estimates of fair value made by us.  The following table presents the range of grant date assumptions used to estimate the fair value of options and warrants granted for the nine months ended September 30, 2014.
		September 30, 2014
		(unaudited)
	Expected volatility		70.8- 71.54	%
	Dividend yield		0	%
	Risk-free interest rate		1.64-1.70	%
	Expected life (in years)		4.5- 6.0
	Expected volatility represents the estimated volatility of the shares over the expected life of the options.  We have estimated the expected volatility based on the weighted-average historical volatilities of a pool of public companies that are comparable to Ener-Core.
	We use an expected dividend yield of zero since no dividends are expected to be paid.  The risk-free interest rate for periods within the expected life of the option is derived from the U.S. treasury interest rates in effect at the date of grant.  The expected option life represents the period of time the option is expected to be outstanding.  The simplified method is used to estimate the term since we do not have sufficient exercise history to calculate the expected life of the options.
	Stock-based compensation expense is recorded only for those awards expected to vest.  Currently, the forfeiture rate is zero.  The rate is adjusted if actual forfeitures differ from the estimates in order to recognize compensation cost only for those awards that actually vest.  If factors change and different assumptions are employed in future periods, the share-based compensation expense may differ from that recognized in previous periods.
	Stock-based award activity was as follows:
									Weighted-
						Weighted-			Average
						Average			Remaining			Aggregate
						Exercise			Contractual			Intrinsic
	Options	Shares				Price			Life			Value
	Balance, December 31, 2013		8,910,000			$	1.289			6.3
	Forfeited during 2014		(941,000	)			0.35			—
	Cancelled during 2014		(8,610,000	)			1.289
	Reissued during 2014		8,610,000				0.35
	Granted during 2014		2,410,000				0.27			—
	Balance, September 30, 2014		10,379,000			$	0.33			6.23		$	150,000
	Exercisable on September 30, 2014		3,119,000			$	0.39			5.59		$	—
	The options granted have a contract term ranging between five and seven years.  Options granted during 2014 had vesting schedules between zero and four years. Options cancelled and reissued had portions vested immediately and the remainder over a three year period, with 15% - 100% of the options vesting immediately upon grant and the remainder ratably over the vesting term.
	The following table summarizes information about stock options outstanding and exercisable at September 30, 2014:
		Options Outstanding										Options Exercisable
						Weighted-
						Average			Weighted-					Weighted-
						Remaining			Average					Average
	Exercise	Number of				Contractual			Exercise			Number of		Exercise
	Prices	Shares				Life			Price			Shares		Price
						(In years)
	$0.00 - $0.25		1,500,000				9.89		$	0.15			-	$	-
	$0.26 - $0.50		8,879,000				5.72		$	0.37			3,152,000	$	0.39
	$0.51 - $0.75		-				-		$	-			-	$	-
			10,379,000				5.64		$	0.33			2,605,000	$	0.39
	Total intrinsic value of stock options outstanding at September 30, 2014 was $0 and $150,000 for vested and unvested stock options respectively.
	Stock based compensation expense is comprised of the company’s consisted of the following:
		Three Months Ended							Nine months ended
									September 30,
		September 30,
		2014				2013			2014			2013
	Research and development	$	184,000			$	31,000		$	1,178,000		$	45,000
	General and administrative		260,000				-			1,635,000			-
		$	464,000			$	31,000		$	2,813,000		$	45,000
	Restricted Stock
	Restricted stock grants consist of common shares of the Company owned by employees, consultants, and directors which are subject to vesting conditions, typically for services provided to the company. Restricted Stock was originally issued in the first quarter of 2013 when all outstanding stock options in existence at that time were exercised prior to vesting. All unvested restricted shares are subject to repurchase rights and therefore recorded as restricted stock.
	Restricted stock activities in 2014 were as follows:
						Weighted-
						Average
						Grant
		Shares				Price
	Balance, December 31, 2013		1,677,000			$	0.001
	Repurchase of unvested restricted shares		(92,000	)		$
	Vested, nine months ending September 30, 2014		(603,000	)		$
	Unvested balance, September 30, 2014	$	982,000			$	0.001
	Under the terms of the stock option plan, we repurchased 92,000 shares from an employee for $92 during the nine months ended September 30, 2014.   The remaining unvested restricted shares vest over the next eighteen months.
	Warrants
	From time to time, we issue warrants to purchase shares of our common stock to investors, note holders and to non-employees for services
The following table provides a reconciliation of the warrant activity for the nine months ended September 30, 2014:
	Warrants
	Outstanding
	Number of				Weighted-Average
	Warrants				Exercise Price
					per Share
Balance outstanding at January 1, 2014		631,087			$	0.8
Warrants issued		6,904,852				0.53
Warrants exercised		-				-
Balance outstanding at September 30, 2014		7,535,939			$	0.55
Warrants exercisable at September 30, 2014		7,535,939			$	0.55
As of September 30, 2014, warrants outstanding had a weighted average remaining life of 4.49 years and no intrinsic value.
Warrants outstanding as of September 30, 2014 consist of:
		Issue Date		Expiry Date		Number of
						Warrants			Exercise Price
									per Share
2013 Services Warrants – July		13-Jul		18-Jul			474,687		$	0.75
2013 Services Warrants – August		13-Aug		18-Aug			36,400			0.75
2013 Services Warrants – November		13-Nov		18-Nov			120,000			1
2014 Services Warrants – April		14-Apr		19-Apr			682,836			0.78
2014 Convertible Notes Warrants		14-Apr		19-Apr			4,097,016			0.5
2014 Services Warrants – September		14-Sep		19-Sep			800,000			0.5
2014 PIPE Warrants – September		14-Sep		19-Sep			1,325,000			0.5
Balance outstanding at September 30, 2014							7,535,939		$	0.55
Warrants exercisable at September 30, 2014							7,535,939		$	0.55
The 2014 Convertible Notes Warrants (“Convertible Notes Warrants”) were issued in conjunction with the April 2014 Convertible Notes described in Note 8 above. The Convertible Notes Warrants were originally issued with an exercise price of $0.78 per share and have anti-dilution price protection whereby if the Company issues any common stock, or securities convertible or exercisable into common stock at a price per share less than the exercise price of the Convertible Notes Warrants, the Company is obligated to reduce the exercise price of the Convertible Notes Warrants to an exercise price at, or below the new issuance price. On September 22, 2014, the Company issued approximately 26.7 million common shares at a price per share of $0.15 as described in Note 11 above. In conjunction with this issuance, the Company received a waiver from the warrant holders which waived the reset of their exercise price which would have been to $0.15 per share. The terms of the waiver required the Company to reduce the warrant exercise price to $0.50 per share, from $0.78 per share and also required the Company to make a further adjustment to the exercise price on March 22, 2015. On that date, the Company is obligated to reset the warrant exercise price to the lower of the current exercise price of $0.50 per warrant, or to an exercise price equivalent to 70% of the weighted average price of the Company’s common stock for the preceding 10 trading days prior to March 22, 2015. The Company currently accounts for the Convertible Notes Warrants as derivative liabilities and no gain or loss was recorded for this change as these warrants were marked-to-market as of September 30, 2014 at the revised exercise price.

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	Note 13 - Related Party Transactions
	Notes Payable and Advances
	In January 2013, we borrowed $250,000 from a stockholder under a secured convertible note payable that was due at the earliest of February 28, 2013, or upon completion of a $1,000,000 financing event.  The note accrued interest at the rate of 12% and was convertible at the lender’s option into common stock at 85% of the price of a future financing or $3.6056 per share.  The note and accrued interest were repaid using proceeds from a $260,000 convertible note payable in March 2013.  The note was secured by our intangible assets.
	In March 2013, we borrowed $260,000 from a stockholder under a note payable that was due March 28, 2014, or earlier, upon completion of the Merger.  The note accrued interest at the rate of 12% and was convertible at the lender’s option into common stock at $0.75 per share.  The note was subsequently converted in April 2013 (see Note 11).  As the note was outstanding less than one month, no interest was due to the lender.
	In March 2013, a stockholder advanced us a total of $411,000 for operating capital.  The advance did not bear interest and was due on demand.  In April 2013, the advance was converted into our common stock at $0.75 per share at the stockholder’s election (see Note 11).
	In June 2013, we borrowed $100,000 from each of three individual stockholders under notes payable that were due December 31, 2013, or earlier, upon completion of the Merger.  The notes accrued interest at the rate of 8% and were convertible at the  holders’ option into our common stock at $0.75 per share. On July 1, 2013, $100,000 was converted into shares of common stock in the Merger-related private placement, and $200,025, including $25 of accrued interest, was repaid at the closing of the Merger.
	Related party interest expense was $10,000 for the nine months ended September 30, 2013. There was no related party interest expense for the three months ended September 30, 2013 or the three and nine months ended September 30, 2014.

Commitments_and_Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
	Note 14 - Commitments and Contingencies
	We may become a party to litigation in the normal course of business.  We accrue for open claims based on our historical experience and available insurance coverage.  In the opinion of management, there are no legal matters involving us that would have a material adverse effect upon our financial condition, results of operations or cash flows.
	EECT Agreement
	On December 31, 2012, we entered into a Master Purchase and Resale Agreement (“MPRSA”) with EECT. As part of this agreement, EECT is committed to buy a certain number of the FP250 and related optional equipment in order to maintain exclusivity in the region.  The pricing for the first unit was $760,000, and subsequent units will be sold at a higher price than the first unit.  In accordance with the MPRSA, EECT placed a Purchase Order (“PO”) with us on December 31, 2012, for the purchase of the first unit at $760,000.  The order was conditional on the issuance of an irrevocable letter of credit to us, according to the terms of the PO.  Such irrevocable letter of credit was issued on March 1, 2013, in the amount of 533,000 Euros, and we acknowledged the acceptance of the PO on the same date.  On November 14, 2013, we shipped the FP250 and on December 24, 2013, we received the proceeds from the letter of credit.  We had deferred all amounts received on our contract with EECT until the contract was substantially completed, which occurred in June 2014, at which time the entire contract, including change orders, was recorded as revenue.   As of September 30, 2014 and December 31, 2013, we had a provision for contract loss of approximately $0 and $100,000, respectively, related to our contract with EECT.
	Warranties
	Our warranty policy generally provides coverage for components of the Gradual Oxidizer that we produce. Typically, the coverage period is one calendar year from the date of commissioning.  Provisions for estimated expenses related to product warranties are made at the time products are commissioned. These estimates are established using available information on the nature, frequency, and average cost of claims. Revision to the reserves for estimated product warranties is made when necessary, based on changes in these factors. Management actively studies trends of claims and takes action to improve product quality and minimize claims.
	The following table presents the changes in the product warranty accrual included in accrued expenses in the accompanying condensed consolidated balance sheets for the nine months ended September 30, 2014:
			2014
	Beginning balance, January 1, 2014		$	-
	Charged to cost of revenues			22,000
	Usage			-
	Ending balance, September 30, 2014		$	22,000
	Product Liability
	With respect to product liability claims involving our products, we believe that any judgment against us for actual damages will be adequately covered by our recorded accruals and, where applicable, excess liability insurance coverage.
	Lease
	We lease our office facility, research and development facility and certain equipment under operating leases, which for the most part, are renewable.   Certain leases also provide that we pay insurance and taxes.
	Future minimum rental payments under operating leases that have initial noncancellable lease terms in excess of one year as of September 30, 2014 are as follows:
		2014			$	102,000
		2015				327,000
		2016				329,000
		2017				3,000
		2018				2,000
					$	763,000
	Minimum rent payments under operating leases are recognized on a straight-line basis over the term of each lease.  Rent expense, net of sublease income, was $97,000 and $266,000 for three and nine months ended September 30, 2014, respectively, and $72,000 and $135,000 for the three and nine months ended September 30, 2013, respectively.
	Our current headquarters is located at 9400 Toledo Way, Irvine, California 92618.  The property consists of a mixed use commercial office, production, and warehouse facility of 32,649 square feet.  Effective August 1, 2013, we assumed this lease (the “Lease”) from FEES.  The Lease has a remaining term of 26 months and expires December 31, 2016.  The current monthly rent payment is $26,044 and increases on an annual basis.
	We also lease space from the Regents of the University of California, Irvine, for the installation and demonstration of the FP250 equipment. The lease has a monthly payment of $7,705 and expires on January 1, 2015.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2014
Subsequent Events [Abstract]	'
Subsequent Events	'
	Note 15 -  Subsequent Events
	None.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2014

Summary of Significant Accounting Policies [Abstract]

'

Basis of Presentation

'

Basis of Presentation

The Company has prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) for interim reporting. We have condensed or omitted certain information and footnote disclosures normally included in our annual financial statements prepared in accordance with GAAP pursuant to such rules and regulations. The unaudited condensed financial statements reflect all adjustments, which are normal and recurring, that are, in the opinion of management, necessary to fairly state the financial position as of September 30, 2014 and the results of operations for the related three and nine months ended September 30, 2014 and 2013, respectively, and results of cash flows for the nine months ended September 30, 2014 and 2013, respectively.  The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014 or for any future periods. The unaudited condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2013, that have been included in the Company's annual report on Form 10-K filed on April 15, 2014.

The accompanying condensed consolidated financial statements include our accounts and our wholly-owned subsidiary, Ener-Core Power.  All significant intercompany transactions and accounts have been eliminated in consolidation. All amounts are rounded to the nearest $000, except certain per share amounts within the footnotes.

Segments

'

Segments

We operate in one segment.  All of our operations are located domestically.

Use of Estimates

'

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period.  Significant items subject to such estimates and assumptions include but are not limited to: collectability of receivables; the valuation of certain assets, useful lives, and carrying amounts of property and equipment, equity instruments and share-based compensation; provision for contract losses; valuation allowances for deferred income tax assets; valuation of derivative liabilities; and exposure to warranty and other contingent liabilities.  We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates.

Foreign Currency Adjustments

'

Foreign Currency Adjustments

Our functional currency for all operations worldwide is the U.S. dollar. Nonmonetary assets and liabilities are translated at historical rates and monetary assets and liabilities are translated at exchange rates in effect at the end of the year. Income statement accounts are translated at average rates for the year.  At September 30, 2014 and December 31, 2013, we did not hold any foreign currency asset or liability amounts.  Gains and losses resulting from foreign currency transactions are reported as other income in the period they occurred.

Concentrations of Credit Risk

'

Concentrations of Credit Risk

Cash and Cash Equivalents

'

Cash and Cash Equivalents

We maintain our non-interest bearing transactional cash accounts at financial institutions for which the Federal Deposit Insurance Corporation (“FDIC”) provides insurance coverage of up to $250,000.  For interest bearing cash accounts, from time to time, balances exceed the amount insured by the FDIC.  We have not experienced any losses in such accounts and believe we are not exposed to any significant credit risk related to these deposits.  At September 30, 2014, we had $3.8 million in excess of the FDIC limit.

We consider all highly liquid investments available for current use with an initial maturity of three months or less and are not restricted to be cash equivalents.  We invest our cash in short-term money market accounts.

Restricted Cash

'

Restricted Cash

The Special Deposit Account Control Agreement

In conjunction with our convertible secured notes payable dated April 16, 2014 (see Note 8), we entered into a Special Deposit Account Control Agreement (“Control Agreement”) whereby $2.3 million of the proceeds from the convertible secured notes was placed in a control account that the lender representative controls, with the funds to be released at the lender representative’s option, or when the outstanding convertible secured notes payable are less than the balance in the control account, at which time the lender representative would release the funds. In August 2014, the Control Agreement was terminated in conjunction with the settlement of the April 2014 Convertible notes and we received proceeds of $0.4 million from the control account while the remaining $1.9 million in the control account was returned to the lenders.

Collateral Account

Under a credit card processing agreement with a financial institution that was entered in 2013, we are required to maintain funds on deposit with the financial institution as collateral.  The amount of the deposit is at the discretion of the financial institution, and was $50,000 on September 30, 2014 and December 31, 2013.

Accounts Receivable

'

Accounts Receivable

Our accounts receivable are typically from credit worthy customers or, for international customers, are supported by guarantees or letters of credit.  For those customers to whom we extend credit, we perform periodic evaluations of them and maintain allowances for potential credit losses as deemed necessary.  We generally do not require collateral to secure accounts receivable.  We have a policy of reserving for uncollectible accounts based on our best estimate of the amount of probable credit losses in existing accounts receivable.  We periodically review our accounts receivable to determine whether an allowance is necessary based on an analysis of past due accounts and other factors that may indicate that the realization of an account may be in doubt.  Account balances deemed to be uncollectible are charged to the allowance after all means of collection have been exhausted and the potential for recovery is considered remote.

At September 30, 2014, we reserved $26,000 related to rents receivable from our sublessees. At December 31, 2013, we did not have any allowance for doubtful accounts.  Although we expect to collect amounts due, actual collections may differ from the recorded amounts.

As of September 30, 2014 and December 31, 2013, two and one customers, respectively, accounted for 100% of net accounts receivable. One customer accounted for 97% of net revenues for the nine months ended September 30, 2014.  A different customer accounted for 100% of the net revenues for the three months ended September 30, 2014. Two customers accounted for 100% of net revenues for the nine months ended September 30, 2013. There was no revenue for the three months ended September 30, 2013.

Accounts Payable

'

Accounts Payable

As of September 30, 2014 and December 31, 2013, three and two vendors collectively accounted for approximately 47% and 48% of total accounts payable. There were no purchases made for the three or nine months ended September 30, 2014. For the three and nine months ended September 30, 2013, one vendor accounted for 66% of our purchases.

Inventory

'

Inventory

Inventory, which consists of raw materials, is stated at the lower of cost or net realizable value, with cost being determined by the average-cost method, which approximates the first-in, first-out method.  At each balance sheet date, we evaluate our ending inventory for excess quantities and obsolescence.  This evaluation primarily includes an analysis of forecasted demand in relation to the inventory on hand, among consideration of other factors.  Based upon the evaluation, provisions are made to reduce excess or obsolete inventories to their estimated net realizable values.  Once established, write-downs are considered permanent adjustments to the cost basis of the respective inventories.  At September 30, 2014 and December 31, 2013, we did not have a reserve for slow-moving or obsolete inventory.

Costs in Excess of Billings on Uncompleted Contracts

'

Costs in Excess of Billings on Uncompleted Contracts

Costs in excess of billings on uncompleted contracts in the accompanying consolidated balance sheets represents accumulation of costs for labor, materials, overhead and other costs that have been incurred. These costs will be recognized as costs of goods sold when the contract is considered complete in accordance with the completed-contract method.  Costs in excess of billings on uncompleted contracts were $0 and $801,000 at September 30, 2014 and December 31, 2013, respectively.  In June 2014, our contract with Efficient Energy Conversion Turbo Machinery, B.V. (“EECT”) was completed (see Note 14), resulting in the recognition of revenue related to the contract plus change orders and all associated costs.

Property and Equipment

'

Property and Equipment

Property and equipment are stated at cost, and are being depreciated using the straight-line method over the estimated useful lives of the related assets, ranging from three to ten years. Maintenance and repairs that do not improve or extend the lives of the respective assets are expensed.  At the time property and equipment are retired or otherwise disposed of, the cost and related accumulated depreciation accounts are relieved of the applicable amounts.  Gains or losses from retirements or sales are reflected in the consolidated statements of operations.

Deposits

'

Deposits

Deposits primarily consist of amounts incurred or paid in advance of the receipt of fixed assets or are deposits for rent and insurance.

Deferred Rent

'

Deferred Rent

We record deferred rent expense, which represents the temporary differences between the reporting of rental expense on the financial statements and the actual amounts remitted to the landlord. The deferred rent portion of lease agreements are leasing inducements provided by the landlord.

Intangible Assets

'

Intangible Assets

We amortize our intangible assets with finite lives over their estimated useful lives.  See Note 6 for additional details regarding the components and estimated useful lives of intangible assets.

Impairment of Long-Lived Assets

'

Impairment of Long-Lived Assets

We account for our long-lived assets in accordance with the accounting standards which require that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the historical carrying value of an asset may no longer be appropriate.  We consider the carrying value of assets may not be recoverable based upon its review of the following events or changes in circumstances: the asset’s ability to continue to generate income from operations and positive cash flow in future periods; loss of legal ownership or title to the assets; significant changes in our strategic business objectives and utilization of the asset; or significant negative industry or economic trends.  An impairment loss would be recognized when estimated future cash flows expected to result from the use of the asset are less than its carrying amount. As of September 30, 2014 and December 31, 2013, we do not believe there have been any other impairments of our long-lived assets.  There can be no assurance, however, that market conditions will not change or demand for our products will continue, which could result in impairment of long-lived assets in the future.

Fair Value of Financial Instruments

'

Fair Value of Financial Instruments

Our financial instruments consist primarily of cash and cash equivalents, restricted cash, accounts receivable, accounts payable, derivative liabilities, Secured Notes payable and related debt discounts and capital lease liabilities.  Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2014 and December 31, 2013. The carrying amounts of short-term financial instruments are reasonable estimates of their fair values due to their short-term nature or proximity to market rates for similar items.  See Note 9 for additional fair value disclosure.

Derivative Financial Instruments

'

Derivative Financial Instruments

The Company issues derivative financial instruments in conjunction with its debt and equity offerings and to provide additional incentive to investors and placement agents. The Company’s uses derivative financial instruments in order to obtain the lowest cash cost-source of funds. Derivative liabilities are recognized in the condensed consolidated balance sheets at fair value based on the criteria specified in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) topic 815-40 “ Derivatives and Hedging – Contracts in Entity’s own Equity .” The estimated fair value of the derivative liabilities is calculated using either the Black-Scholes-Merton or Monte Carlo simulation model method.

The Company issued common stock warrants and convertible secured notes payable with conversion features in April 2014. These embedded derivatives were evaluated under ASC topic 815-40, were bifurcated from the debt host and are classified as liabilities on the condensed consolidated balance sheet. The Company records the warrants and embedded derivative liabilities at fair value and adjusts the carrying value of the common stock warrants and embedded derivatives to their estimated fair value at each reporting date with the increases or decreases in the fair value of such warrants and derivatives at each reporting date, recorded as a gain or (loss) in the condensed consolidated statements of operations (See Notes 8 and 9).

The Company issued common stock warrants for services in September 2014. These derivative securities were evaluated under ASC topic 815-40 and determined that they did not need to be recorded as liabilities on the condensed consolidated balance sheet. The warrants were valued on the date of issuance at fair value.

Revenue Recognition

'

Revenue Recognition

We generate revenue from the sale of our clean power energy systems and from consulting services. Revenue is recognized when there is persuasive evidence of an arrangement, product delivery and acceptance have occurred, the sales price is fixed or determinable and collectability of the resulting receivable is reasonable assured.  Amounts billed to clients for shipping and handling are classified as sales of product with related costs incurred included in cost of sales.

Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded.  We defer any revenue for which the services have not been performed or which is subject to refund until such time that we and our customer jointly determine that the services have been performed or no refund will be required.

Revenues under long-term construction contracts are generally recognized using the completed-contract method of accounting.  Long-term construction-type contracts for which reasonably dependable estimates cannot be made or for which inherent hazards make estimates difficult are accounted for under the completed-contract method. Revenues under the completed-contract method are recognized upon substantial completion – that is acceptance by the customer, compliance with performance specifications demonstrated in a factory acceptance test or similar event.  Accordingly, during the period of contract performance, billings and costs are accumulated on the balance sheet, but no profit or income is recorded before completion or substantial completion of the work.  Anticipated losses on contracts are recognized in full in the period in which losses become probable and estimable.  Changes in estimate of profit or loss on contracts are included in earnings on a cumulative basis in the period the estimate is changed.  We had deferred all amounts received on our contract with EECT until the contract was substantially completed, which occurred in June 2014, at which time the entire contract, including change orders, was recorded as revenue.   As of September 30, 2014 and December 31, 2013, we had a provision for contract loss of approximately$0 and $100,000, respectively, related to our contract with EECT.

Research and Development Costs

'

Research and Development Costs

Research and development costs are expensed as incurred.  Research and development was $0.5 million and $0.7 million for the three months ended September 30, 2014 and 13, respectively, and $2.3 million and $1.4 million for the nine months ended September 30, 2014 and 2013, respectively.

Share-Based Compensation

'

Share-Based Compensation

We maintain a stock option plan (see Note 12) and record expenses attributable to the stock option plan. We amortize share-based compensation from the date of grant on a weighted average basis over the requisite service period for the entire award.

We account for equity instruments issued to consultants and vendors in exchange for goods and services at fair value.  The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant’s or vendor’s performance is complete.  In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized to expense in accordance with the services provided under the underlying contract.

Income taxes

'

Income Taxes

We account for income taxes under FASB ASC 740 “Income Taxes.” Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that we will not realize tax assets through future operations.

Earnings (Loss) per Share

'

Earnings (Loss) per Share

Basic earnings (loss) per share is computed by dividing net loss attributable to common stockholders by the weighted average number of common shares assumed to be outstanding during the period of computation.  Diluted earnings (loss) per share is computed similar to basic earnings (loss) per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential shares had been issued and if the additional common shares were dilutive.  Approximately 17.9 million shares of common stock are issuable upon the exercise of outstanding options and warrants at September 30, 2014.  There were no options and warrants outstanding at September 30, 2013. Dilutive equivalents were excluded from the computation of diluted loss per share due to the anti-dilutive effect on net loss per share.

Three Months Ended

Nine Months Ended

September 30,

September 30,

2014

2013

2014

2013

Net loss

$

(2,823,000

)

$

(2,020,000

)

$

(7,770,000

)

$

(4,642,000

)

Weighted average number of common shares outstanding:

Basic and diluted

82,129,000

68,889,000

75,750,000

66,447,000

Net loss attributable to common stockholders per share:

Basic and diluted

$

(0.03

)

$

(0.03

)

$

(0.10

)

$

(0.07

)

Comprehensive Income (Loss)

'

Comprehensive Income (Loss)

We have no items of other comprehensive income (loss) in any period presented. Therefore, net loss as presented in our Condensed Consolidated Statements of Operations equals comprehensive loss.

Recently Issued Accounting Pronouncements

'

Recently Issued Accounting Pronouncements

Effective January 1, 2014, we adopted FASB Accounting Standards Update (“ASU”) 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting (“ASU 2013-07”). The amendments in ASU 2013-07 clarify when an entity should apply the liquidation basis of accounting and provide principles for the recognition and measurement of associated assets and liabilities. In accordance with the amendments, the liquidation basis is used when liquidation is imminent.  Liquidation is considered imminent when the likelihood is remote that the organization will return from liquidation and either: (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties; or (b) a plan for liquidation is being imposed by other forces. The adoption of ASU 2013-07 did not have a material impact on our condensed consolidated financial statements.

Effective January 1, 2014, we adopted FASB ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). The amendments in ASU 2013-11 clarify that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward if such settlement is required or expected in the event the uncertain tax position is disallowed.  In situations where a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction or the tax law of the jurisdiction does not require, and the entity does not intend to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The adoption of ASU 2013-11 did not have a material impact on our condensed consolidated financial statements.

In May, 2014, the FASB issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"). ASU 2014-09 provides a framework for addressing revenue recognition issues and, upon its effective date, replaces almost all existing revenue recognition guidance, including industry-specific guidance, in current U.S. generally accepted accounting principles. ASU 2014-09 is effective beginning with the calendar year ended December 31, 2017. The Company has not yet assessed the impact ASU 2014-09 will have upon adoption on its financial position, results of operations or cash flows.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. ASU 2014-15 requires that an entity's management evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Substantial doubt about an entity's ability to continue as a going concern exists when relevant conditions and events, considered in the aggregate, indicate that it is probable that the entity will be unable to meet its obligations as they become due within one year after the date that the financial statements are issued. Certain disclosures are necessary in the footnotes to the financial statements in the event that conditions or events raise substantial doubt about an entity's ability to continue as a going concern. ASU 2014-15 is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter and early application is permitted. The Company has not yet assessed the impact ASU 2014-15 will have upon adoption.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2014
Summary of Significant Accounting Policies [Abstract]	'
Schedule of earnings per share, basic and diluted	'
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014			2013
	Net loss	$	(2,823,000	)	$	(2,020,000	)	$	(7,770,000	)	$	(4,642,000	)
	Weighted average number of common shares outstanding:
	Basic and diluted		82,129,000			68,889,000			75,750,000			66,447,000
	Net loss attributable to common stockholders per share:
	Basic and diluted	$	(0.03	)	$	(0.03	)	$	(0.10	)	$	(0.07	)

Inventory_Tables

Inventory (Tables)	9 Months Ended
	Sep. 30, 2014
Inventory [Abstract]	'
Schedule of Inventory, Current	'
		September 30, 2014		December 31, 2013
		(unaudited)
	Raw materials	$	29,000	$	29,000
	Work-in-process		—		—
	Finished goods		—		—
	Less: inventory reserve		—		—
	Total inventory	$	29,000	$	29,000

Prepaid_Expenses_and_Other_Cur1

Prepaid Expenses and Other Current Assets (Tables)	9 Months Ended
	Sep. 30, 2014
Prepaid Expenses and Other Current Assets [Abstract]	'
Schedule of prepaid expenses and other current assets	'
		September 30, 2014		December 31,
				2013
		(unaudited)
	Prepaid rent	$	26,000	$	26,000
	Prepaid insurance		15,000		11,000
	Prepaid licenses		4,000		6,000
	Prepaid fees		5,000		3,000
	Prepaid deposit		8,000		-
	Prepaid professional fees		-		-
	Total	$	58,000	$	46,000

Property_and_Equipment_Net_Tab

Property and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2014
Property and Equipment, Net [Abstract]	'
Schedule of Property and Equipment	'
		September 30, 2014			December 31, 2013
		(unaudited)
	Machinery and equipment	$	877,000		$	849,000
	Office furniture and fixtures		198,000			198,000
	Computer equipment and software		126,000			97,000
	Total cost		1,201,000			1,144,000
	Less accumulated depreciation		(552,000	)		(380,000	)
	Net
Schedule of Capital Leased Assets	'
		September 30, 2014			December 31, 2013
		(unaudited)
	Machinery and equipment	$	27,000		$	27,000
	Computer equipment and software		46,000			17,000
	Total assets under capital lease		73,000			44,000
	Less accumulated depreciation		(16,000	)		(1,000	)
	Net assets under capital lease	$	56,000		$	43,000
Schedule of Depreciation and Amortization Expense	'
		Three Months Ended						Nine Months Ended
		September 30,						September 30,
		2014			2013			2014		2013
	Research and development	$	28,000		$	26,000		$	86,000	$	77,000
	General and administrative		27,000			26,000			85,000		77,000
		$	55,000		$	52,000		$	171,000	$	154,000

Intangibles_Net_Tables

Intangibles, Net (Tables)	9 Months Ended
	Sep. 30, 2014
Intangibles, Net [Abstract]	'
Finite-Lived Intangible Assets	'
		September 30, 2014			December 31, 2013
		(unaudited)
	Patents	$	80,000		$	80,000
	Less accumulated amortization		(44,000	)		(39,000	)
	Net	$	36,000		$	41,000

Accrued_Expenses_Tables

Accrued Expenses (Tables)	9 Months Ended
	Sep. 30, 2014
Accrued Expenses [Abstract]	'
Accrued Expenses	'
		September 30, 2014		December 31,  2013
		(unaudited)
	Accrued professional fees		212,000	$	81,000
	Accrued payroll		26,000		26,000
	Accrued vacation		74,000		76,000
	Accrued expense reports		-		29,000
	Accrued board fees		20,000		-
	Accrued taxes		-		7,000
	Accrued other		51,000		12,000
	Accrued liabilities owed by Parent - reimbursable under Contribution Agreement		35,000		35,000
	Total accrued expenses	$	418,000	$	266,000

Convertible_Secured_Notes_Paya1

Convertible Secured Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2014
Convertible Secured Notes Payable [Abstract]	'
Schedule of convertible secured promissory notes payable	'
		Secured			Debt			Net Total
		Notes			Discount
	Original Value - April 16, 2014	$	4,575,000		$	(3,236,000	)	$	1,339,000
	Amortization of debt discount		-			540,000			540,000
	Capitalization of Interest Payable		2,000			-			2,000
	Conversion and redemption of secured Notes Payable		(4,577,000	)		2,696,000			(1,881,000	)
	Ending balance - September 30, 2014		-			-			-
Schedule of changes in financial statements	'
		Increase (decrease)
	Operating Cash	$	405,000
	Restricted Cash	$	(2,288,000	)
	Convertible Note	$	(4,575,000	)
	Discount on convertible note	$	(2,696,000	)
	Derivative liabilities	$	(724,000	)
	Common stock	$	1,000
	Paid in capital	$	2,710,000
	Outstanding shares		13,555,000
Summary of assumptions	'
			2014
	Annual dividend yield		-
	Expected life (years)		1.25-5.0
	Risk-free interest rate		0.04%-0.07	%
	Expected volatility		47.48%-60.06	%
Summary of derivative liabilities	'
		Warrants			Embedded Note			Total
		Liability			Conversion
					Feature
	Original Value - April 16, 2014	$	1,250,000		$	828,000		$	2,078,000
	Adjustment to fair value		(26,000	)		(104,000	)		(130,000	)
	Balance – June 30, 2014	$	1,224,000		$	724,000		$	1,948,000
	Adjustment to fair value, Conversion Feature, August 14, 2014		-			(723,000	)		(723,000	)
	Conversion of convertible secured notes	$	-		$	(1,000	)	$	(1,000	)
	Adjustment to fair value, Warrants		(896,000	)		-			(896,000	)
	Ending balance - September 30, 2014	$	328,000		$	-		$	328,000

Fair_Value_Measurements_and_Di1

Fair Value Measurements and Disclosures (Tables)	9 Months Ended
	Sep. 30, 2014
Fair Value Measurements and Disclosures [Abstract]	'
Summary of financial instruments	'
		Fair Value		Level 1		Level 2		Level 3
	Warrant derivative liability		328,000		-		-		328,000

Notes_and_Capital_Leases_Payab1

Notes and Capital Leases Payable (Tables)	9 Months Ended
	Sep. 30, 2014
Notes and Capital Leases Payable [Abstract]	'
Summary of capital lease payable	'
		September 30, 2014			December 31, 2013
		(unaudited)
	Capital lease payable to De Lange Landon secured by forklift, 10.0% interest, due on October 1, 2018, monthly payment of $451.50.		19,000			20,000
	Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on November 16, 2016, monthly payment of $607.58.		14,000			17,000
	Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on December 15, 2016, monthly payment of $604.93.	$	14,000		$	-
	Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on January 3, 2017, monthly payment of $415.40.		10,000			-
	Total capital leases		57,000			37,000
	Less: current portion		(18,000	)		(8,000	)
	Long-term portion of capital leases	$	39,000		$	29,000
Summary of capital lease meturies	'
		Year Ending			Amount
		December 31
			2014		$	10,000
			2015			25,000
			2016			24,000
			2017			6,000
			2018			5,000
	Net minimum lease payments					70,000
	Less: Amount representing interest					(12,000	)
	Less: Taxes					(1,000	)
	Present value of net minimum lease payments					57,000
	Less: Current maturities of capital lease obligations					(18,000	)
	Long-term capital lease obligations				$	39,000

Stock_Options_and_Warrants_Tab

Stock Options and Warrants (Tables)	9 Months Ended
	Sep. 30, 2014
Stock Options and Warrants [Abstract]	'
Fair value option awards	'
		September 30, 2014
		(unaudited)
	Expected volatility		70.8- 71.54	%
	Dividend yield		0	%
	Risk-free interest rate		1.64-1.70	%
	Expected life (in years)		4.5- 6.0
Stock-based award	'
									Weighted-
						Weighted-				Average
						Average				Remaining			Aggregate
						Exercise				Contractual			Intrinsic
	Options	Shares				Price				Life			Value
	Balance, December 31, 2013		8,910,000			$	1.289				6.3
	Forfeited during 2014		(941,000	)			0.35				—
	Cancelled during 2014		(8,610,000	)			1.289
	Reissued during 2014		8,610,000				0.35
	Granted during 2014		2,410,000				0.27				—
	Balance, September 30, 2014		10,379,000			$	0.33				6.23		$	150,000
	Exercisable on September 30, 2014		3,119,000			$	0.39				5.59		$	—
Information about stock options outstanding and exercisable	'
		Options Outstanding											Options Exercisable
						Weighted-
						Average				Weighted-					Weighted-
						Remaining				Average					Average
	Exercise	Number of				Contractual				Exercise			Number of		Exercise
	Prices	Shares				Life				Price			Shares		Price
						(In years)
	$0.00 - $0.25		1,500,000				9.89			$	0.15			-	$	-
	$0.26 - $0.50		8,879,000				5.72			$	0.37			3,152,000	$	0.39
	$0.51 - $0.75		-				-			$	-			-	$	-
			10,379,000				5.64			$	0.33			2,605,000	$	0.39
Schedule of stock based compensation expense	'
		Three Months Ended								Nine months ended
										September 30,
		September 30,
		2014				2013				2014			2013
	Research and development	$	184,000			$	31,000			$	1,178,000		$	45,000
	General and administrative		260,000				-				1,635,000			-
		$	464,000			$	31,000			$	2,813,000		$	45,000
Restricted stock	'
						Weighted-
						Average
						Grant
		Shares				Price
	Balance, December 31, 2013		1,677,000			$	0.001
	Repurchase of unvested restricted shares		(92,000	)		$
	Vested, nine months ending September 30, 2014		(603,000	)		$
	Unvested balance, September 30, 2014	$	982,000			$	0.001
Reconciliation of warrant activity	'
		Warrants
		Outstanding
		Number of				Weighted-Average
		Warrants				Exercise Price
						per Share
	Balance outstanding at January 1, 2014		631,087			$	0.8
	Warrants issued		6,904,852				0.53
	Warrants exercised		-				-
	Balance outstanding at September 30, 2014		7,535,939			$	0.55
	Warrants exercisable at September 30, 2014		7,535,939			$	0.55
Schedule of warrants outstanding	'
			Issue Date		Expiry Date		Number of
							Warrants				Exercise Price
											per Share
	2013 Services Warrants – July		13-Jul		18-Jul			474,687			$	0.75
	2013 Services Warrants – August		13-Aug		18-Aug			36,400				0.75
	2013 Services Warrants – November		13-Nov		18-Nov			120,000				1
	2014 Services Warrants – April		14-Apr		19-Apr			682,836				0.78
	2014 Convertible Notes Warrants		14-Apr		19-Apr			4,097,016				0.5
	2014 Services Warrants – September		14-Sep		19-Sep			800,000				0.5
	2014 PIPE Warrants – September		14-Sep		19-Sep			1,325,000				0.5
	Balance outstanding at September 30, 2014							7,535,939			$	0.55
	Warrants exercisable at September 30, 2014							7,535,939			$	0.55

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Summary of product warranty accrual including accrued expenses	'
		2014
	Beginning balance, January 1, 2014	$	-
	Charged to cost of revenues		22,000
	Usage		-
	Ending balance, September 30, 2014	$	22,000
Minimum operating lease payments	'
	2014	$	102,000
	2015		327,000
	2016		329,000
	2017		3,000
	2018		2,000
		$	763,000

Description_of_Business_Detail

Description of Business (Details) (USD $)

0 Months Ended

1 Months Ended

0 Months Ended

1 Months Ended

9 Months Ended

Sep. 22, 2014

Aug. 14, 2014

Sep. 30, 2014

Apr. 16, 2014

Aug. 15, 2014

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2013

Jul. 02, 2013

Mar. 31, 2013

Dec. 31, 2012

Nov. 14, 2014

Nov. 13, 2014

Subsequent Event [Member]

Subsequent Event [Member]

Cancellation of shares in reverse merger

'

'

'

'

'

'

'

'

120,520,000

'

'

'

'

Consumtion of oil and gas description

'

'

'

'

'

'The FP250 has been designed to operate on fuels from 100% combustible gas down to concentrations of 5% or less combustible gas content.

'

'

'

'

'

'

'

Cash and cash equivalents

'

'

$4,031,000

'

'

$4,031,000

$1,201,000

$763,000

'

$24,000

$93,000

$2,900,000

'

Restricted cash

'

'

50,000

'

'

50,000

'

'

'

'

'

50,000

'

Senior secured financing, amount

'

'

'

4,600,000

'

'

'

'

'

'

'

'

'

Amount received from senior financing

'

'

'

3,800,000

'

'

'

'

'

'

'

'

'

Amount released from lenders option

'

'

'

2,300,000

'

'

'

'

'

'

'

'

'

Debt conversion, converted instrument, amount

'

2,711,000

'

'

'

-1,881,000

'

'

'

'

'

'

'

Debt conversion shares issued

'

13,555,000

'

'

'

'

'

'

'

'

'

'

'

Proceeds from issuance of convertible debt

'

'

'

4,000,000

400,000

2,300,000

'

'

'

'

'

'

'

Unrestricted cash balance

'

'

'

'

'

'

'

'

'

'

'

'

2,900,000

Short term liabilities

'

'

1,273,000

'

'

1,273,000

1,494,000

'

'

'

'

'

'

Capital raise

'

'

4,000,000

'

'

'

'

'

'

'

'

'

'

Stock issued during period, Value

3,900,000

'

'

'

'

'

'

'

'

'

'

'

'

Stock issued during period, Shares

26,700,000

'

'

'

'

'

'

'

'

'

'

'

'

Cash Offering Costs

$100,000

'

'

'

'

'

'

'

'

'

'

'

'

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net loss	($2,823,000)	($2,020,000)	($7,770,000)	($4,642,000)
Weighted average number of common shares outstanding, Basic and diluted	82,129,000	68,889,000	75,750,000	66,447,000
Net loss attributable to common stockholders per share, Basic and diluted	($0.03)	($0.03)	($0.10)	($0.07)

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details Textual) (USD $)

0 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Share data in Millions, unless otherwise specified

Apr. 16, 2014

Aug. 15, 2014

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Dec. 31, 2013

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Vendors

Sales Revenue, Net [Member]

Sales Revenue, Net [Member]

Sales Revenue, Net [Member]

Sales Revenue, Net [Member]

Accounts Receivable [Member]

Accounts Receivable [Member]

Accounts Payable [Member]

Accounts Payable [Member]

Accounts Payable [Member]

Accounts Payable [Member]

Customers

Customers

Customers

Customers

Customers

Customers

Vendors

Vendors

Vendors

Vendors

Options and warrants to purchase of common stock

'

'

'

'

17.9

'

'

'

'

'

'

'

'

'

'

'

'

Excess in cash FDIC amount

'

'

$3,800

'

$3,800

'

'

'

'

'

'

'

'

'

'

'

'

Security deposit as collateral with financial institution

'

'

50,000

'

50,000

'

50,000

'

'

'

'

'

'

'

'

'

'

Number of customer

'

'

'

'

'

'

'

'

'

1

2

2

1

'

'

'

'

Number of vendors

'

'

'

'

'

'

'

'

'

'

'

'

'

1

3

1

2

Concentration Risk, Percentage

'

'

'

'

'

'

'

100.00%

'

97.00%

100.00%

100.00%

100.00%

66.00%

47.00%

66.00%

48.00%

Provision for contract loss

'

'

15,000

'

15,000

'

100,000

'

'

'

'

'

'

'

'

'

'

Research and development

'

'

514,000

718,000

2,259,000

1,388,000

'

'

'

'

'

'

'

'

'

'

'

FDIC Insurance coverage

'

'

250,000

'

250,000

'

'

'

'

'

'

'

'

'

'

'

'

Costs in Excess of Billings, Current

'

'

'

'

'

'

801,000

'

'

'

'

'

'

'

'

'

'

Rents receivable

'

'

'

'

26,000

'

'

'

'

'

'

'

'

'

'

'

'

Proceeds from convertible secured notes

4,000,000

400,000

'

'

2,300,000

'

'

'

'

'

'

'

'

'

'

'

'

Remaining amount returne to lenders

'

$1,900,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Inventory_Details

Inventory (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Inventory [Abstract]	'	'
Raw materials	$29,000	$29,000
Work-in-process	'	'
Finished goods	'	'
Less: inventory reserve	'	'
Total inventory	$29,000	$29,000

Prepaid_Expenses_and_Other_Cur2

Prepaid Expenses and Other Current Assets (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Prepaid Expenses and Other Current Assets [Abstract]	'	'
Prepaid rent	$26,000	$26,000
Prepaid insurance	15,000	11,000
Prepaid licenses	4,000	6,000
Prepaid fees	5,000	3,000
Prepaid deposit	8,000	'
Prepaid professional fees	'	'
Total	$58,000	$46,000

Property_and_Equipment_Net_Det

Property and Equipment, Net (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]	'	'
Total cost	$1,201,000	$1,144,000
Less accumulated depreciation	-552,000	-380,000
Net	649,000	764,000
Machinery and equipment	'	'
Property, Plant and Equipment [Line Items]	'	'
Total cost	877,000	849,000
Office furniture and equipment	'	'
Property, Plant and Equipment [Line Items]	'	'
Total cost	198,000	198,000
Computer equipment and software	'	'
Property, Plant and Equipment [Line Items]	'	'
Total cost	$126,000	$97,000

Property_and_Equipment_Net_Det1

Property and Equipment, Net (Details 1) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Total cost	$1,201,000	$1,144,000
Less accumulated depreciation	552,000	380,000
Capital Lease	'	'
Total cost	73,000	44,000
Less accumulated depreciation	-16,000	-1,000
Net assets under capital lease	56,000	43,000
Machinery and Equipment [Member]	'	'
Total cost	877,000	849,000
Machinery and Equipment [Member] | Capital Lease	'	'
Total cost	27,000	27,000
Computer equipment and software	'	'
Total cost	126,000	97,000
Computer equipment and software | Capital Lease	'	'
Total cost	$46,000	$17,000

Property_and_Equipment_Net_Det2

Property and Equipment, Net (Details 2) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Depreciation	$55,000	$52,000	$171,000	$154,000
Research and Development Expense [Member]	'	'	'	'
Depreciation	28,000	26,000	86,000	77,000
General and Administrative Expense [Member]	'	'	'	'
Depreciation	$27,000	$26,000	$85,000	$77,000

Property_and_Equipment_Net_Det3

Property and Equipment, Net (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Property and Equipment, Net [Abstract]	'	'	'	'
Amortization of Leased Asset	$5,000	$0	$15,000	$0

Intangibles_Net_Details

Intangibles, Net (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Intangibles, Net [Abstract]	'	'
Patents	$80,000	$80,000
Less accumulated amortization	-44,000	-39,000
Net	$36,000	$41,000

Intangibles_Net_Details_Textua

Intangibles, Net (Details Textual) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Intangible Assets Net Excluding Goodwill (Textual)	'	'	'	'
Amortization of Intangible Assets	$2,000	$2,000	$5,000	$5,000
Amortization expense, 2014	2,000	'	2,000	'
Amortization expense, 2015	7,000	'	7,000	'
Amortization expense, 2016	7,000	'	7,000	'
Amortization expense, 2017	7,000	'	7,000	'
Amortization expense, 2018	7,000	'	7,000	'
Amortization expense, thereafter	$6,000	'	$6,000	'

Accrued_Expenses_Details

Accrued Expenses (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Accrued Expenses [Abstract]	'	'
Accrued professional fees	$212,000	$81,000
Accrued payroll	26,000	26,000
Accrued vacation	74,000	76,000
Accrued expense reports	'	29,000
Accrued board fees	20,000	'
Accrued taxes	'	7,000
Accrued other	51,000	12,000
Accrued liabilities owed by Parent - reimbursable under Contribution Agreement	35,000	35,000
Total accrued expenses	$418,000	$266,000

Convertible_Secured_Notes_Paya2

Convertible Secured Notes Payable (Details) (USD $)	0 Months Ended		3 Months Ended		9 Months Ended			9 Months Ended
	Aug. 14, 2014	Apr. 16, 2014	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Jan. 31, 2013	Sep. 30, 2014	Sep. 30, 2014	Mar. 31, 2014
								Secured Notes [Member]	Debt Discount [Member]	Debt Discount [Member]
Short-term Debt [Line Items]	'	'	'	'	'	'	'	'	'	'
Original Value - April 16, 2014	'	'	'	'	$1,339,000	'	$250,000	$4,575,000	($3,236,000)	($3,236,000)
Amortization of debt discount	'	3,200,000	2,694,000	'	3,234,000	'	'	'	540,000	'
Capitalization of Interest Payable	'	'	'	'	2,000	'	'	2,000	'	'
Conversion and redemption of secured Notes Payable	2,711,000	'	'	'	-1,881,000	'	'	-4,577,000	2,696,000	'
Ending balance - September 30, 2014	'	'	'	'	'	'	$250,000	'	'	($3,236,000)

Convertible_Secured_Notes_Paya3

Convertible Secured Notes Payable (Details 1) (USD $)	0 Months Ended
	Aug. 15, 2014
Convertible Secured Notes Payable [Abstract]	'
Operating Cash	$405,000
Restricted cash	-2,288,000
Convertible Note	-4,575,000
Discount on convertible note	-2,696,000
Derivative liabilities	-724,000
Common stock	1,000
Paid in capital	$2,710,000
Outstanding shares	13,555,000

Convertible_Secured_Notes_Paya4

Convertible Secured Notes Payable (Details 2)	0 Months Ended	9 Months Ended
	Sep. 22, 2014	Sep. 30, 2014	Sep. 30, 2014
		Minimum [Member]	Maximum [Member]
Annual dividend yield	0.00%	'	'
Expected life (years)	'	'1 year 3 months	'5 years
Risk-free interest rate	1.80%	0.04%	0.07%
Expected volatility	56.93%	47.48%	60.06%

Convertible_Secured_Notes_Paya5

Convertible Secured Notes Payable (Details 3) (USD $)	0 Months Ended		1 Months Ended	3 Months Ended
	Aug. 14, 2014	Apr. 16, 2014	Sep. 30, 2014	Jun. 30, 2014
Original Value	$1,948,000	'	($1,000)	$2,078,000
Adjustment to fair value	-723,000	2,100,000	-896,000	-130,000
Ending balance	-1,000	2,078,000	328,000	1,948,000
Embedded Note Conversion Feature [Member]	'	'	'	'
Original Value	724,000	'	-1,000	828,000
Adjustment to fair value	-723,000	'	'	-104,000
Ending balance	-1,000	'	'	724,000
Warrant Liability [Member]	'	'	'	'
Original Value	1,224,000	'	'	1,250,000
Adjustment to fair value	'	'	-896,000	-26,000
Ending balance	'	'	$328,000	$1,224,000

Convertible_Secured_Notes_Paya6

Convertible Secured Notes Payable (Details Textual) (USD $)

0 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

Sep. 22, 2014

Aug. 14, 2014

Aug. 14, 2014

Jul. 11, 2014

Apr. 16, 2014

Sep. 30, 2014

Aug. 15, 2014

Jun. 30, 2014

Sep. 30, 2014

Sep. 30, 2013

Sep. 30, 2014

Sep. 30, 2013

Dec. 31, 2013

Nov. 30, 2013

Aug. 31, 2013

Jul. 31, 2013

Jun. 30, 2013

Apr. 30, 2013

Mar. 31, 2013

Jan. 31, 2013

Convertible Secured Notes Payable (Textual)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Secured Promissory Notes

'

'

'

'

'

'

'

'

'

'

'

'

$1,339,000

'

'

'

'

'

'

$250,000

Proceeds from issuance of convertible debt

'

'

'

'

4,000,000

'

400,000

'

'

'

2,300,000

'

'

'

'

'

'

'

'

'

Aggregate amount of discount

'

'

'

'

600,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum purchase of common stock by issuance of warrants

'

'

'

'

4,100,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Transaction expenses

'

'

'

'

200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Funds released from control account

'

'

'

'

'

'

2,300,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Funds released from overhead and general working capital

'

'

'

'

'

'

1,500,000

'

'

'

'

'

'

'

'

'

'

'

'

'

Warrants expiration period

'4 years

'

'

'

'5 years

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Net proceeds

'

'

'

'

3,800,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Amortization of debt discount

'

'

'

'

3,200,000

'

'

'

2,694,000

'

3,234,000

'

'

'

'

'

'

'

'

'

Fair values of the warrants and embedded derivatives

'

'

'

'

'

1,600,000

'

'

1,600,000

'

1,600,000

'

'

'

'

'

'

'

'

'

Debt conversion, converted instrument, amount

'

'

2,711,000

'

'

'

'

'

'

'

-1,881,000

'

'

'

'

'

'

'

'

'

Debt conversion shares issued

'

'

13,555,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Conversion price

'

$0.20

$0.20

'

'

'

'

'

'

'

'

'

'

'

'

'

$0.75

$0.75

$0.75

$3.61

Debt discount and derivative liabilities recorded upon issuance of warrants and convertible secured notes

'

'

'

'

'

'

'

'

'

'

2,078,000

'

'

'

'

'

'

'

'

'

Common stock, par value (in dollars per share)

'

'

'

'

'

$0.00

'

'

$0.00

'

$0.00

'

$0.00

$1

$0.75

$0.75

'

$0.75

'

'

Warrants exercisable

$0.15

'

'

'

'

$0.55

'

'

$0.55

'

$0.55

'

'

'

'

'

'

'

'

'

Fair value of warrants

'

-723,000

'

'

2,100,000

-896,000

'

-130,000

'

'

'

'

'

'

'

'

'

'

'

'

Fair value of embedded derivatives

'

'

'

'

500,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Equity securities

'

'

'

2,000,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Equity trading securities, Description

'

'

'

'Equity securities without the consent of the investors wass increased from 45 days commencing April 16, 2014, to 120 days.

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Conversion price description

'

'

'

'Equity conditions was changed from $0.50 to $0.35.

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Common stock market price percentage description

'

'

'

'Market Price of the Company's common stock, was changed from 85% to 82%.

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Fund held in a control account

'

405,000

405,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Legal Fees

32,000

'

17,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Secured Debt [Member]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Secured Notes Payable (Textual)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Fund held in a control account

'

1,866,000

1,866,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

First Installment [Member]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Secured Notes Payable (Textual)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Secured notes mature date description

'

'

'

'Installment payment was changed from July 16, 2014, to August 15, 2014;

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Final Installment [Member]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Secured Notes Payable (Textual)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Secured notes mature date description

'

'

'

'Installment, as well as the maturity date of the Secured Notes, was changed from October 16, 2015, to November 16, 2015;

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

April 15, 2019 [Member]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Secured Notes Payable (Textual)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Maximum purchase of common stock by issuance of warrants

'

'

'

'

0.7

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Percentage of placement agent fee

'

'

'

'

6.50%

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Funds released from control account

'

'

'

'

200,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Warrants expire date

'

'

'

'

15-Apr-19

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Warrants exercisable

'

'

'

'

$0.78

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Private Placement [Member]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Secured Notes Payable (Textual)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Secured Promissory Notes

'

'

'

'

4,600,000

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Number of investors

'

'

'

'

3

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Notes Payable [Member]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Secured Notes Payable (Textual)

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Convertible Secured Promissory Notes

'

'

'

'

'

'

'

'

'

'

'

'

4,575,000

'

'

'

'

'

'

'

Secured notes bear interest rate

'

'

'

'

'

0.28%

'

'

0.28%

'

0.28%

'

'

'

'

'

'

'

'

'

Secured notes mature date description

'

'

'

'

'

'

'

'

'

'

'October 2015

'

'

'

'

'

'

'

'

'

Amortization payment amount

'

'

'

'

'

'

'

'

'

'

286,000

'

'

'

'

'

'

'

'

'

Secured notes redemption terms

'

'

'

'

'

'

'

'

'

'

'Installment payments could be settled, at the Company's option, in cash or shares of common stock, subject to certain conditions including: (i) the daily dollar trading volume of the Company's common stock during the thirty (30) trading days prior to the applicable date of determination shall be at least $50,000 commencing August 9, 2014; and (ii) the daily weighted average price of the Company's common stock for each trading day during the thirty (30) trading days ending on the trading day immediately prior to the applicable date of determination was initially set to be at least $0.50.

'

'

'

'

'

'

'

'

'

Net of discount on secured notes

'

'

'

'

'

3,200,000

'

'

3,200,000

'

3,200,000

'

'

'

'

'

'

'

'

'

Amortization of debt discount

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Derivative risk, Description

'

'

'

'

'

'

'

'

'

'

'The risk-free interest rate is based on one-year to five-year U.S. Treasury securities consistent with the remaining term of the warrants.

'

'

'

'

'

'

'

'

'

Debt conversion, converted instrument, amount

'

'

'

'

'

'

'

'

'

'

($4,577,000)

'

'

'

'

'

'

'

'

'

Common stock, par value (in dollars per share)

'

'

'

'

'

$0.67

'

'

$0.67

'

$0.67

'

'

'

'

'

'

'

'

'

Fair_Value_Measurements_and_Di2

Fair Value Measurements and Disclosures (Details) (Warrant Liability [Member], USD $)	Sep. 30, 2014
Derivative liabilities	'
Fair value	$328,000
Level 1 [Member]	'
Derivative liabilities	'
Fair value	'
Level 2 [Member]	'
Derivative liabilities	'
Fair value	'
Level 3 [Member]	'
Derivative liabilities	'
Fair value	$328,000

Notes_and_Capital_Leases_Payab2

Notes and Capital Leases Payable (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Total capital leases	$57,000	$37,000
Less: current portion	18,000	8,000
Long-term portion of capital leases	39,000	29,000
De Lage Landon [Member]	'	'
Total capital leases	19,000	20,000
November 16, 2016 [Member] | Dell Computers [Member]	'	'
Total capital leases	14,000	17,000
December 15, 2016 [Member] | Dell Computers [Member]	'	'
Total capital leases	14,000	'
January 3, 2017 [Member] | Dell Computers [Member]	'	'
Total capital leases	$10,000	'

Notes_and_Capital_Leases_Payab3

Notes and Capital Leases Payable (Details 1) (USD $)	Sep. 30, 2014	Dec. 31, 2013
2014	$10,000	'
2015	25,000	'
2016	24,000	'
2017	6,000	'
2018	5,000	'
Net minimum lease payments	70,000	'
Less: Amount representing interest	-12,000	'
Less: Taxes	-1,000	'
Present value of net minimum lease payments	57,000	'
Less: Current maturities of capital lease obligations	18,000	8,000
Long-term capital lease obligations	$39,000	$29,000

Notes_and_Capital_Leases_Payab4

Notes and Capital Leases Payable (Details Textual) (USD $)	1 Months Ended	9 Months Ended
	Oct. 24, 2013	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014
		De Lage Landon [Member]	November 16, 2016 [Member]	December 15, 2016 [Member]	January 3, 2017 [Member]
			Dell Computers [Member]	Dell Computers [Member]	Dell Computers [Member]
Security and guarantee agreement with the export-import bank	$400,000	'	'	'	'
Interest rate	4.24%	'	'	'	'
Lease expiration date	'	1-Oct-18	16-Nov-16	15-Dec-16	3-Jan-17
Capital Leases Payables	'	$451.50	$607.58	$604.93	$415.40
Tangible asset capital lease interest rate	'	10.00%	15.09%	15.09%	15.09%

Equity_Details

Equity (Details) (USD $)	0 Months Ended			9 Months Ended
	Sep. 22, 2014	Aug. 14, 2014	Apr. 16, 2014	Sep. 30, 2014
Equity (Textual)	'	'	'	'
Sold and Issued Shares	26,700,000	'	'	'
Stock value per share	$0.15	'	'	'
Proceeds from issuance of common stock	$3,900,000	'	'	'
Gross proceeds	4,000,000	'	'	'
Debt conversion shares issued	'	13,555,000	'	'
Debt conversion, converted instrument, amount	'	2,711,000	'	-1,881,000
Issuance of warrants to purchase of common stock	1,325,000	'	'	'
Warrants, Exercise price	$0.50	'	'	'
Net offering costs	105,000	'	'	'
Warrants expiration period	'4 years	'	'5 years	'
Placement agent fee	73,000	'	'	'
Legal expenses	32,000	17,000	'	'
Market price	$0.27	'	'	'
Risk-free interest rate	1.80%	'	'	'
Annual dividend yield	0.00%	'	'	'
Expected volatility	56.93%	'	'	'
Restricted stock value	150,000	'	'	'
Restricted stock shares	1,000,000	'	'	'
Issuance of warrants for placement fees	'	'	'	$101,000

Stock_Options_and_Warrants_Det

Stock Options and Warrants (Details)	9 Months Ended
	Sep. 30, 2014
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Dividend yield	0.00%
Minimum [Member]	'
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Expected volatility	70.80%
Risk-free interest rate	1.64%
Expected life (in years)	'4 years 6 months
Maximum [Member]	'
Fair Value Inputs, Assets, Quantitative Information [Line Items]	'
Expected volatility	71.54%
Risk-free interest rate	1.70%
Expected life (in years)	'6 years

Stock_Options_and_Warrants_Det1

Stock Options and Warrants (Details 1) (USD $)	9 Months Ended
	Sep. 30, 2014
Stock Options and Warrants [Abstract]	'
Balance, December 31, 2013	8,910,000
Forfeited during 2014	-941,000
Cancelled during 2014	-8,610,000
Reissued during 2014	8,610,000
Granted during 2014	2,410,000
Balance, September 30, 2014	10,379,000
Exercisable on September 30, 2014	3,119,000
Weighted Average Excerise Price, Balance, December 31, 2013	$1.29
Weighted Average Excerise Price, Forfeited during 2014	$0.35
Weighted Average Excerise Price, Cancelled during 2014	$1.29
Weighted Average Excerise Price, Reissued during 2014	$0.35
Weighted Average Excerise Price, Granted during 2014	$0.27
Weighted Average Excerise Price, Balance, September 30, 2014	$0.33
Weighted Average Excerise Price, Exercisable on September 30, 2014	$0.39
Weighted Average Remaining Contractual Life, Balance, December 31, 2013	'6 years 3 months 18 days
Weighted Average Remaining Contractual Life, Balance, September 30, 2014	'6 years 2 months 23 days
Weighted Average Remaining Contractual Life, Exercisable on September 30, 2014	'5 years 7 months 2 days
Outstanding Options, Aggregate Intrinsic Value	$150,000
Exercisable Options, Aggregate Intrinsic Value	'

Stock_Options_and_Warrants_Det2

Stock Options and Warrants (Details 2) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Options Outstanding, Number of Shares	10,379,000	8,910,000
Options Outstanding, Weighted Average Remaining Contractual Life	'6 years 2 months 23 days	'
Options Outstanding, Weighted Average Exercise Price	$0.33	$1.29
Options Exercisable, Number of Shares	3,119,000	'
Options Exercisable, Weighted Average Exercise Price	$0.39	'
Exercise Price Range One [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Exercise Price, Lower Limit	$0	'
Exercise Price, Upper Limit	$0.25	'
Options Outstanding, Number of Shares	1,500,000	'
Options Outstanding, Weighted Average Remaining Contractual Life	'9 years 10 months 21 days	'
Options Outstanding, Weighted Average Exercise Price	$0.15	'
Options Exercisable, Number of Shares	'	'
Options Exercisable, Weighted Average Exercise Price	'	'
Exercise Price Range Two [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Exercise Price, Lower Limit	$0.26	'
Exercise Price, Upper Limit	$0.50	'
Options Outstanding, Number of Shares	5,660,000	9,396,000
Options Outstanding, Weighted Average Remaining Contractual Life	'5 years 8 months 19 days	'
Options Outstanding, Weighted Average Exercise Price	$1.30	'
Options Exercisable, Number of Shares	3,152,000	'
Options Exercisable, Weighted Average Exercise Price	$0.39	'
Exercise Price Range Three [Member]	'	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'	'
Exercise Price, Lower Limit	$0.51	'
Exercise Price, Upper Limit	$0.75	'
Options Outstanding, Number of Shares	'	'
Options Outstanding, Weighted Average Exercise Price	'	'
Options Exercisable, Number of Shares	'	'
Options Exercisable, Weighted Average Exercise Price	'	'

Stock_Options_and_Warrants_Det3

Stock Options and Warrants (Details 3) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock based compensation expense	$464,000	$31,000	$2,813,000	$45,000
Research and development [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock based compensation expense	184,000	31,000	1,178,000	45,000
General and administrative [Member]	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock based compensation expense	$260,000	'	$1,635,000	'

Stock_Options_and_Warrants_Det4

Stock Options and Warrants (Details 4) (USD $)	9 Months Ended
	Sep. 30, 2014
Shares	'
Outstanding, Ending	7,535,939
Restricted Stock Units (RSUs)	'
Shares	'
Outstanding, Begining	1,677,000
Repurchase of unvested restricted shares	-92,000
Vested	-603,000
Outstanding, Ending	982,000
Weighted Average Exercise Price	'
Outstanding, Begining	$0.00
Outstanding, Ending	$0.00

Stock_Options_and_Warrants_Det5

Stock Options and Warrants (Details 5) (USD $)	9 Months Ended
	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]	'
Outstanding, Ending	7,535,939
Number of warrants exercisable	7,535,939
Weighted Average Exercise Price	'
Warrants exercisable	$0.55
Warrant [Member]	'
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]	'
Outstanding, Begining	631,087
Issued	6,904,852
Exercised	'
Outstanding, Ending	7,535,939
Number of warrants exercisable	7,535,939
Weighted Average Exercise Price	'
Outstanding, Begining	$0.80
Issued	$0.53
Exercised	'
Outstanding, Ending	$0.55
Warrants exercisable	$0.55

Stock_Options_and_Warrants_Det6

Stock Options and Warrants (Details 6) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 22, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Exercise Price per Share	$0.55	$0.15
Warrants exercisable Price per share	$0.55	'
Number of warrants outstanding	7,535,939	'
Number of warrants exercisable	7,535,939	'
2013 Services Warrants - July [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Issue Date	'Jul-13	'
Expiry Date	'Jul-18	'
Exercise Price per Share	$0.75	'
Number of warrants outstanding	474,687	'
2013 Services Warrants - August [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Issue Date	'Aug-13	'
Expiry Date	'Aug-18	'
Exercise Price per Share	$0.75	'
Number of warrants outstanding	36,400	'
2013 Services Warrants - November [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Issue Date	'Nov-13	'
Expiry Date	'Nov-18	'
Exercise Price per Share	$1	'
Number of warrants outstanding	120,000	'
2014 Services Warrants - April [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Issue Date	'Apr-14	'
Expiry Date	'Apr-19	'
Exercise Price per Share	$0.78	'
Number of warrants outstanding	682,836	'
2014 Convertible Notes Warrants [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Issue Date	'Apr-14	'
Expiry Date	'Apr-19	'
Exercise Price per Share	$0.50	'
Number of warrants outstanding	4,097,016	'
2014 Services Warrants - September [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Issue Date	'Sept-14	'
Expiry Date	'Sept-19	'
Exercise Price per Share	$0.50	'
Number of warrants outstanding	800,000	'
2014 PIPE Warrants - September [Member]	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Issue Date	'Sept-14	'
Expiry Date	'Sept-19	'
Exercise Price per Share	$0.50	'
Number of warrants outstanding	1,325,000	'

Stock_Options_and_Warrants_Det7

Stock Options and Warrants (Details Textual) (USD $)	0 Months Ended	9 Months Ended			1 Months Ended	9 Months Ended
	Sep. 22, 2014	Sep. 30, 2014	Sep. 30, 2013	Jul. 01, 2013	Apr. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Apr. 30, 2014
					Equity Incentive Plan [Member]	Maximum [Member]	Minimum [Member]	Convertible Notes Warrants [Member]
					Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'	'	'
Maximum number of common shares authorized to purchase	'	'	'	14,000,000	'	'	'	'
Number of shares available for future grant	'	3,900,000	'	'	'	'	'	'
Remaining weighted-average vesting period	'	'3 years 10 months 21 days	'	'	'	'	'	'
Shares outstanding under the plan, value	'	$3,700,000	'	'	'	'	'	'
Term of options granted	'	'	'	'	'	'7 years	'5 years	'
Vesting period of options granted	'	'3 years	'	'	'	'	'	'
Description of granted options vesting right	'	'	'	'	'	'	'	'
		The options granted have a contract term ranging between five and seven years.  Options granted during 2014 vested immediately or over a three year period, with 15% - 100% of the options vesting immediately upon grant and the remainder ratably over the vesting term.
Percentage of options vesting	'	'	'	'	'	100.00%	15.00%	'
Stock repurchased during period, Value	'	92	'	'	'	'	'	'
Stock repurchased during period, Shares	'	92,000	'	'	'	'	'	'
Weighted average remaining life of warrants	'	'4 years 5 months 27 days	'	'	'	'	'	'
Weighted Average Excerise Price, Reissued	'	$0.35	'	'	$0.35	'	'	'
Cancellation and reissuance of options	'	8,610,000	'	'	8,600,000	'	'	'
Reissuance of stock options description	'	'	'	'	'	'	'	'
					The reissuance also changed the vesting to 15% vesting immediately and the remainder in 1/36th in monthly increments over the next three years.
Fair Value of cancelled and reissued options	'	'	'	'	840,000	'	'	'
Stock-based compensation	'	2,813,000	688,000	'	'	'	'	'
Number of employees affected	'	'	'	'	21	'	'	'
Intrinsic value of stock options outstanding vested	'	0	'	'	'	'	'	'
Intrinsic value of stock options outstanding unvested	'	$150,000	'	'	'	'	'	'
Warrants exercisable	$0.15	$0.55	'	'	'	'	'	$0.78
Stock value per share	$0.15	'	'	'	'	'	'	'
Common stock issue	26,700,000	'	'	'	'	'	'	'

Related_Party_Transactions_Det

Related Party Transactions (Details) (USD $)	0 Months Ended	1 Months Ended			3 Months Ended		9 Months Ended
	Jul. 01, 2013	Jun. 30, 2013	Mar. 31, 2013	Jan. 31, 2013	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Aug. 14, 2014	Dec. 31, 2013	Apr. 30, 2013
Related Party Transactions [Abstract]	'	'	'	'	'	'	'	'	'	'	'
Convertible notes payable	'	'	'	$250,000	'	'	'	'	'	$1,339,000	'
Financing Event	'	'	'	1,000,000	'	'	'	'	'	'	'
Accrued Interest Rate	'	8.00%	12.00%	12.00%	'	'	'	8.00%	'	'	'
Percentage of convertible at lenders option into common stock	'	'	'	85.00%	'	'	'	'	'	'	'
Common Stock, Per share	'	$0.75	$0.75	$3.61	'	'	'	'	$0.20	'	$0.75
Notes payable	'	100,000,000	260,000	'	'	'	'	'	'	'	'
Advances from related parties	'	'	411,000	'	'	'	'	-184,000	'	'	'
Shares converted into common stock under private placement	100,000	'	'	'	'	'	'	'	'	'	'
Accrued Interest, Repaid at closing of merger	25	'	'	'	'	'	'	'	'	'	'
Related party interest expense	$200,025	'	'	'	'	'	'	$10,000	'	'	'

Commitments_and_Contingencies_1

Commitments and Contingencies (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Beginning balance, January 1, 2014	'
Charged to cost of revenues	22,000
Usage	'
Ending balance, September 30, 2014	$22,000

Commitments_and_Contingencies_2

Commitments and Contingencies (Details 1) (USD $)	Sep. 30, 2014
Future minimum rental payments for operating leases	'
2014	$102,000
2015	327,000
2016	329,000
2017	3,000
2018	2,000
Total future minimum rental payments, operating leases	$763,000

Commitments_and_Contingencies_3

Commitments and Contingencies (Details Textual)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013	Dec. 31, 2013	Aug. 31, 2013	Dec. 31, 2012	Mar. 31, 2013
	USD ($)	USD ($)	USD ($)	USD ($)	USD ($)	sqft	Efficient Energy Conversion Turbomachinery	Standby Letters of Credit
							USD ($)	EUR (€)
Commitments and Contingencies [Textual]	'	'	'	'	'	'	'	'
Unit pricing amount	'	'	'	'	'	'	$760,000	€ 533,000
Concentration risk percentage	'	'	'	'	'	'	'	'
Operating leases monthly rent expense	'	'	26,044	'	'	'	'	'
Operating lease useful life	'	'	'26 months	'	'	'	'	'
Area of lease property	'	'	'	'	'	32,649	'	'
Rent expense, net of sublease income	97,000	72,000	266,000	135,000	'	'	'	'
Lease agreement description	'	'	'The lease has a monthly payment of $7,705 and expires on January 1, 2015.	'	'	'	'	'
Provision for Loss on Contracts	$15,000	'	$15,000	'	$100,000	'	'	'