Ener-Core (ENCR) 10-K 14 Apr 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Apr. 10, 2017	Jun. 30, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	Ener-Core, Inc.
Entity Central Index Key	1,495,536
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 14.7
Entity Common Stock, Shares Outstanding		4,063,660

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 1,310,000	$ 2,605,000
Restricted cash	50,000	200,000
Accounts receivable, net	87,000
Inventory	2,764,000	747,000
Prepaid expenses and other current assets	302,000	408,000
Total current assets	4,513,000	3,960,000
Property and equipment, net	3,247,000	3,426,000
Intangibles, net	20,000	28,000
Deposits and other long term assets	28,000	143,000
Total assets	7,808,000	7,557,000
Current liabilities:
Accounts payable	1,665,000	1,631,000
Accrued expenses	697,000	657,000
Deferred revenues and customer advances	3,876,000	2,847,000
Accrued contract loss	600,000	600,000
Convertible unsecured notes payable, net of discounts	554,000
Derivative liabilities		2,510,000
Convertible secured notes payable, net of discounts		4,110,000
Capital leases payable-short term	10,000	26,000
Total current liabilities	7,402,000	12,379,000
Long term liabilities:
Convertible secured notes payable, net of discounts	630,000
Capital lease payable-long term	4,000	14,000
Deposits		8,000
Total liabilities	8,036,000	12,401,000
Commitments and contingencies (Note 16)
Stockholders' equity (deficit):
Preferred stock, $0.0001 par value; authorized 50,000,000 shares; no shares outstanding at December 31, 2016 and December 31, 2015
Common stock, $0.0001 par value; authorized 200,000,000 shares; 3,829,660 and 3,089,160 shares outstanding at December 31, 2016 and December 31, 2015 respectively
Additional paid-in capital	40,944,000	26,302,000
Accumulated deficit	(41,172,000)	(31,146,000)
Total stockholders' equity (deficit)	(228,000)	(4,844,000)
Total liabilities and stockholders' equity (deficit)	$ 7,808,000	$ 7,557,000

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2016	Dec. 31, 2015
Statement of Financial Position [Abstract]
Preferred stock, par value	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	50,000,000	50,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, Shares authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	3,829,660	3,089,160
Common stock, shares outstanding	3,829,660	3,089,160

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Revenues
Cost of goods sold		600,000
Gross profit (loss)		(600,000)
Operating expenses:
Selling, general and administrative	4,162,000	5,197,000
Research and development	3,752,000	3,412,000
Total operating expenses	7,914,000	8,609,000
Operating loss	(7,914,000)	(9,209,000)
Other income (expenses):
Interest income	1,000	2,000
Loss on debt conversion	(108,000)
Loss on exchange of warrants		(279,000)
Loss on modification of convertible debt	(1,429,000)
Loss on debt extinguishment	(262,000)	(707,000)
Gain (loss) on revaluation of derivative liabilities, net	4,094,000	(198,000)
Interest expense	(4,405,000)	(2,716,000)
Total other income (expenses), net	(2,109,000)	(3,898,000)
Loss before provision for income taxes	(10,023,000)	(13,107,000)
Provision for income taxes	3,000
Net loss	$ (10,026,000)	$ (13,107,000)
Loss per share-basic and diluted	$ (2.79)	$ (5.45)
Weighted average common shares-basic and diluted	3,594,026	2,405,147

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity (Deficit) - USD ($)	Total	Common stock	Preferred Stock	Additional paid-in capital	Accumulated Deficit
Balance at Dec. 31, 2014	$ 1,509,000			$ 19,548,000	$ (18,039,000)
Balances, shares at Dec. 31, 2014		2,282,120
Issuance of common stock for warrant exchange	885,000			885,000
Issuance of common stock for warrant exchange, shares		73,747
Issuance of whole shares in lieu of fractional shares - reverse split
Issuance of whole shares in lieu of fractional shares - reverse split, shares		293
Issuance of warrants for bank fees	246,000			246,000
Issuance of common stock for cash, net of offering costs	1,984,000			1,984,000
Issuance of common stock for cash, net of offering costs, shares		733,000
Issuance of warrants in in conjunction with Senior Notes	2,154,000			2,154,000
Stock-based compensation expense	1,485,000			1,485,000
Net loss	(13,107,000)				(13,107,000)
Balance at Dec. 31, 2015	(4,844,000)			26,302,000	(31,146,000)
Balances, shares at Dec. 31, 2015		3,089,160
Reclassification of derivative liabilities	1,772,000			1,772,000
Conversion of Senior Notes	111,000			111,000
Conversion of Senior Notes, shares		44,444
Issuance of common stock for cash, net of offering costs	2,883,000			2,883,000
Issuance of common stock for cash, net of offering costs, shares		696,056
Issuance of warrants in conjunction with Unsecured Notes	605,000			605,000
Modification of detachable warrants issued in conjunction with Senior Notes	316,000			316,000
Allocated value of conversion feature associated with Senior Notes	3,495,000			3,495,000
Allocated value of warrants issued with Senior Notes	4,133,000			4,133,000
Stock-based compensation expense	1,327,000			1,327,000
Net loss	(10,026,000)				(10,026,000)
Balance at Dec. 31, 2016	$ (228,000)			$ 40,944,000	$ (41,172,000)
Balances, shares at Dec. 31, 2016		3,829,660

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows used in operating activities:
Net loss	$ (10,026,000)	$ (13,107,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount and deferred financing fees	3,149,000	2,247,000
Loss on debt conversion	108,000
Loss on extinguishment of convertible senior secured notes	262,000	707,000
Loss on exchange of warrants for common stock		279,000
(Gain) Loss on change in fair value of derivative liability	(4,094,000)	198,000
Depreciation and amortization	528,000	402,000
Stock-based compensation	1,327,000	1,485,000
Provision for contract loss		600,000
Provision for bad debt expense		50,000
Loss on modification of convertible notes	1,429,000
Impairment of fixed assets	318,000
Changes in assets and liabilities:
Accounts and other receivables	69,000	57,000
Inventory	(2,017,000)	(694,000)
Prepaid expenses and other current assets	213,000	(202,000)
Deferred revenue	949,000	2,847,000
Restricted cash	(150,000)	(150,000)
Accounts payable and accrued expenses	(1,000)	914,000
Accrued interest		50,000
Net cash used in operating activities	(7,636,000)	(4,317,000)
Cash flows used in investing activities:
Purchase of property and equipment	(659,000)	(3,057,000)
Net cash used in investing activities	(659,000)	(3,057,000)
Cash flows from financing activities:
Proceeds from convertible unsecured notes payable	1,250,000
Proceeds from convertible senior secured notes payable	3,372,000	5,000,000
Offering costs-convertible notes payable	(479,000)	(303,000)
Payments on convertible notes payable		(19,000)
Repayment of capital leases payable	(26,000)	(19,000)
Proceeds from issuance of common stock	2,883,000	3,125,000
Net cash provided by financing activities	7,000,000	7,803,000
Net increase (decrease) in cash and cash equivalents	(1,295,000)	429,000
Cash and cash equivalents at beginning of period	2,605,000	2,176,000
Cash and cash equivalents at end of period	1,310,000	2,605,000
Cash paid during the period for:
Income taxes	3,000
Interest	802,000	351,000
Supplemental disclosure of non-cash activities:
Equipment purchased under capital leases	13,000	14,000
Debt discount and derivative liabilities recorded upon issuance of warrants and convertible secured notes		2,750,000
Debt discount and derivative liabilities recorded for amendments of convertible senior secured notes		791,000
Debt discount and derivative liabilities recorded for amendments of notes and warrants	1,645,000
Issuance of common stock in exchange for warrants		885,000
Issuance of warrants for bank fees		246,000
Reclassification of warrants and conversion feature previously recorded as derivative liabilities to paid-in capital	1,762,000
Debt discount and derivative liabilities recorded upon issuance of convertible unsecured notes payable	282,000
Debt discount recorded for detachable warrants issued with convertible unsecured notes payable	576,000
Debt discount recorded for amendments of warrants	236,000
Allocated value of conversion feature associated with convertible senior secured notes	3,495,000
Allocated value of warrants issued with convertible senior secured notes	4,133,000
Original issue discount recorded for convertible senior secured notes	$ 930,000

Organization

Organization	12 Months Ended
	Dec. 31, 2016
Organization [Abstract]
Organization	Note 1—Organization Organization Ener-Core, Inc. (the “Company”, “we”, “us”, “our”), a Delaware corporation, was formed on April 29, 2010 as Inventtech, Inc. On July 1, 2013, we acquired our wholly owned subsidiary, Ener-Core Power, Inc., (formerly Flex Power Generation, Inc.), a Delaware corporation. The stockholders of Ener-Core Power, Inc. are now our stockholders and the management of Ener-Core Power, Inc. is now our management. The acquisition was treated as a “reverse merger” and our financial statements are those of Ener-Core Power, Inc. All equity amounts presented have been retroactively restated to reflect the reverse merger as if it had occurred on November 12, 2012. Effective as of September 3, 2015, we changed our state of incorporation from the State of Nevada to the State of Delaware (the “Reincorporation”), pursuant to a plan of conversion dated September 2, 2015, following approval by our stockholders of the Reincorporation at our 2015 Annual Meeting of Stockholders held on August 28, 2015. As a Delaware corporation following the Reincorporation, we are deemed to be the same continuing entity as the Nevada corporation prior to the Reincorporation, and as such continue to possess all of the rights, privileges and powers and all of the debts, liabilities and obligations of the prior Nevada corporation. Upon effectiveness of the Reincorporation, all of the issued and outstanding shares of common stock of the Nevada corporation automatically converted into issued and outstanding shares of common stock of the Delaware corporation without any action on the part of our stockholders. Concurrent with the Reincorporation, on September 3, 2015 our authorized shares increased to 250,000,000 shares of stock consisting of 200,000,000 authorized shares of common stock and 50,000,000 authorized shares of preferred stock. Reverse Merger We entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Ener-Core Power, Inc. and Flex Merger Acquisition Sub, Inc., a Delaware corporation and our wholly owned subsidiary (“Merger Sub”), pursuant to which the Merger Sub merged with and into Ener-Core Power, Inc., with Ener-Core Power, Inc. 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”), FlexEnergy Energy Systems, Inc. (“FEES”), and Ener-Core Power, Inc., Ener-Core Power, Inc. was spun-off from FlexEnergy as a separate corporation. As a part of that transaction, Ener-Core Power, Inc. received all assets (including intellectual property) and certain liabilities pertaining to the Power Oxidizer business carved out of FlexEnergy. The owners of FlexEnergy did not distribute ownership of Ener-Core Power, Inc. pro rata. The assets and liabilities were transferred to us and recorded at their historical carrying amounts since the transaction was a transfer of net assets between entities under common control. On July 1, 2013, Ener-Core Power, Inc. completed the Merger with us. Upon completion of the Merger, we immediately became a public company. The Merger was accounted for as a “reverse merger” and recapitalization. As part of the Merger, 2,410,400 shares of outstanding common stock of the pre-merger public shell company were cancelled. This cancellation has been retroactively accounted for as of the inception of Ener-Core Power, Inc. on November 12, 2012. Accordingly, Ener-Core Power, Inc. was deemed to be the accounting acquirer in the transaction and, consequently, the transaction was treated as a recapitalization of Ener-Core Power, Inc. Accordingly, the assets and liabilities and the historical operations that are reflected in the financial statements are those of Ener-Core Power, Inc. and are recorded at the historical cost basis of Ener-Core Power, Inc. Our assets, liabilities and results of operations were de minimis at the time of the Merger. Reverse Stock Split The board of directors of the Company approved a reverse stock split of the Company’s authorized, issued and outstanding shares of common stock, par value $0.0001 per share, as well as the Company’s authorized shares of preferred stock, par value $0.0001 per share, of which no shares are issued and outstanding (together, the “Stock”), at a ratio of 1-for-50 (the “Reverse Stock Split”). The Reverse Stock Split became effective on July 8, 2015 (the “Effective Date”). As a result of the Reverse Stock Split, the authorized preferred stock decreased to 1,000,000 shares and the authorized common stock decreased to 4,000,000 shares. Both the preferred stock and common stock par value remained at $0.0001 per share. The number of authorized shares subsequently increased to 200,000,000 authorized shares of common stock and 50,000,000 authorized shares of preferred stock on September 3, 2015 with the Company’s reincorporation in Delaware, as described above. On the Effective Date, the total number of shares of common stock held by each stockholder of the Company were converted automatically into the number of shares of common stock equal to: (i) the number of issued and outstanding shares of common stock held by each such stockholder immediately prior to the Reverse Stock Split divided by (ii) 50. The Company issued one whole share of the post-Reverse Stock Split common stock to any stockholder who otherwise would have received a fractional share as a result of the Reverse Stock Split, determined at the beneficial owner level by share certificate. As a result, no fractional shares were issued in connection with the Reverse Stock Split and no cash or other consideration will be paid in connection with any fractional shares that would otherwise have resulted from the Reverse Stock Split. The Reverse Stock Split also affected all outstanding options and warrants by dividing each option or warrant outstanding by 50, rounded up to the nearest option or warrant, and multiplying the exercise price by 50 for each option or warrant outstanding. Description of the Business We design, develop, license and manufacture products based on proprietary technologies that aim to expand the operating range of gaseous fuel while improving emissions, which technologies we refer to collectively as “Power Oxidation” or “Power Oxidizer”. 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. The Power Oxidizer integrates with a gas turbine and generator to create a Powerstation. Our products, the EC250 and the Ener-Core Powerstation KG2-3GEF/PO (“KG2”), are complete systems consisting of our designed and patented Power Oxidizer, integrated with a gas turbine and generator. Our Power Oxidizers have been designed to operate on fuels from 100% combustible gas down to concentrations of 5% or less combustible gas content. Our Powerstation products have applications in landfills, distilleries, wastewater treatment plants, as well as numerous industrial processes, 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 and low-cost fuel source. We have deployed the EC250 product commercially in landfill applications are currently developing our second commercial product, the KG2 Powerstation, or KG2, which will combine our Power Oxidizer with a two megawatt gas turbine developed by Dresser-Rand a.s., a subsidiary of Dresser-Rand Group Inc. (“Dresser-Rand”). In 2015, we completed system layout and analytic models integrating our Power Oxidizer with the turbine and, to date in 2016, we have constructed a fully operational KG2 unit to be used in final technical tests expected to be completed in the fourth quarter of 2016, after which time we expect that the initial KG2 unit will be sold. We received an order for the first two commercial KG2 units, which we delivered in October 2016. On June 29, 2016, we entered into a Commercial License and Manufacturing Agreement with Dresser-Rand (the “CMLA”), which both companies intended would supersede and replace the CLA. In April 2017, we amended the terms of the CMLA to make the CMLA effective as of January 1, 2017, at which time it superseded and replaced the CLA (as defined below). Under the CMLA, KG2 manufacturing will transition to Dresser-Rand and each KG2 unit sold will generate for us a non-refundable license fee. We sell our EC250 product directly and through distributors in two countries, the United States and Netherlands, and sell the KG2 product directly and through Dresser-Rand’s commercial sales team. Going Concern Our 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 Power Oxidizer, have successfully deployed an EC250 field test unit at the U.S. Army base at Fort Benning, Georgia, and installed and commissioned our first commercial unit in the Netherlands in the second quarter of 2014. In November 2014, we signed a Commercial License Agreement with Dresser-Rand (as amended, the “CLA”) to incorporate our Power Oxidizer into Dresser-Rand’s 1.75 MW turbine. In August 2015, the CLA became a mutually binding agreement due to the satisfaction of certain binding conditions contained in the CLA. On June 29, 2016 we entered into the CMLA with Dresser-Rand, which both companies intended would supersede and replace the CLA. In April 2017, we amended the terms of the CMLA to make the CMLA effective as of January 1, 2017, at which time it superseded and replaced the CLA. 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 capital raises of $2.5 million in December 2015, $3.0 million in April 2016, $1.25 million in September 2016, and $3.4 million in December 2016, 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. Through the end of 2015, our product sales were limited to initial system sales that were not profitable and required additional cash in excess of expected cash receipts. In addition, we incurred significant development and administrative expenses in order to develop our products with little or no cash contribution from sales. Beginning in 2016 we began to focus on reduction of our operating costs payable in cash through headcount and overhead cost reductions and saw an increase in cash collections from customers from sales transactions that are expected to be cash flow positive. During 2015, we received no cash from license fees. In 2016, we received $1.1 million of cash from license fees and we expect to receive additional license fees in 2017 from our CMLA agreement with Dresser-Rand including $1.2 million expected in the second quarter of 2017 and additional license payments upon receipt of firm purchase orders for licenses along with product sales receipts for 250kW unit sales expected to be profitable. Management’s plan is to obtain capital sufficient to meet our operating expenses by seeking additional equity and/or debt financing. The cash and cash equivalents balance (excluding restricted cash) on December 31, 2016 and December 31, 2015 was approximately $1.3 million and $2.6 million, respectively. In April 2016, management began taking steps to reduce our operational cash burn through a combination of staff reductions and reductions of outside service providers. We expect to implement additional cost savings through reduced overhead costs later in 2017 as well as reduced non-recurring costs and capital expenditures related to our efforts to develop the 2 MW KG2 Powerstation. We expect that the $1.3 million of cash and cash equivalents as of December 31, 2016 and receipts on customer billings will continue to fund our working capital needs, general corporate purposes, and related obligations into the third quarter of 2017 at our reduced spending levels. However, we expect to require significantly more cash for working capital and as financial security to support our growth initiatives. We will pursue raising additional equity and/or debt financing to fund our operations and product development. If future funds are raised through issuance of stock or debt, these securities could have rights, privileges, or preferences senior to those of our common stock and debt covenants that could impose restrictions on our operations. Any equity or convertible debt financing will likely result in additional dilution to our current stockholders. We cannot make any assurances that any additional financing, including the proposed registered offering, will be completed on a timely basis, on acceptable terms or at all. Our inability to successfully raise capital in a timely manner will adversely impact our ability to continue as a going concern. If our business fails or we are unable to raise capital on a timely basis, 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 Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2—Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements include our accounts and our wholly-owned subsidiary, Ener-Core Power, Inc. All significant intercompany transactions and accounts have been eliminated in consolidation. All monetary amounts are rounded to the nearest $000, except certain per share amounts. The accompanying financial statements have been prepared in accordance with GAAP. Reclassifications Certain amounts in the 2015 consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications have no effect on previously reported net loss. 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 December 31, 2016 and 2015, 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 December 31, 2016, we had $1.1 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 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, which is at the discretion of the financial institution, was $50,000 on December 31, 2016 and 2015. Dresser-Rand Escrow Account Under the CLA, prepaid license fee payments of $400,000 per quarter were paid by Dresser-Rand into an escrow account with a financial institution beginning in August 2015. Dresser-Rand withdrew up to $125,000 per quarter from this escrow account for qualified engineering expenses incurred by Dresser-Rand under the terms and conditions of the CLA. Through September 26, 2016, Dresser-Rand funded $1,600,000 and withdrew $500,000. On September 26, 2016 substantially all of the remaining $1,100,000 was released to us from the escrow account and, in October 2016, the escrow account was closed. The balance in the escrow account was $0 and $150,000 on December 31, 2016 and 2015, respectively. See also “Note 8—Deferred Revenues and Customer Advances”. 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. As of December 31, 2016 and 2015, two customers accounted for 100% of net accounts receivable. Accounts Payable As of December 31, 2016 and 2015, eight and five vendors, respectively, collectively accounted for approximately 50% of our total accounts payable. 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 December 31, 2016 and 2015, we did not have a reserve for slow-moving or obsolete inventory. 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. Accrued Warranties Accrued warranties represent the estimated costs that will be incurred during the warranty period of our products. We make an estimate of expected costs that will be incurred by us during the warranty period and charge that expense to the consolidated statement of operations at the date of sale. We also reevaluate the estimate at each balance sheet date and if the estimate is changed, the effect is reflected in the consolidated statement of operations. We had no warranty accrual at December 31, 2016 or 2015. We expect that most terms for future warranties of our Powerstations and Power Oxidizers will be one to two years, depending on the warranties provided and the products sold. Accrued warranties for expected expenditures within one year are classified as current liabilities and as non-current liabilities for expected expenditures for time periods beyond one year. 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. Also, tenant improvement allowances provided are recorded as a deferred rent liability and recognized ratably as a reduction to rent expense over the lease term. Intangible Assets Our intangible assets represent intellectual property acquired during the reverse merger. We amortize our intangible assets with finite lives over their estimated useful lives. 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 our 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 December 31, 2016 and 2015, we do not believe there have been any 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 December 31, 2016 and 2015. 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. We determine the fair value of our financial instruments based on a three-level hierarchy established for fair value measurements under which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect management’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair-value hierarchy: ● Level 1: Valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Currently, we classify our cash and cash equivalents as Level 1 financial instruments. ● Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. We do not currently have any accounts under Level 2. ● Level 3: Valuations based on inputs that require inputs that are both significant to the fair value measurement and unobservable and involve management judgment (i.e., supported by little or no market activity). Currently, we classify our warrants and conversion options accounted for as derivative liabilities as Level 3 financial instruments. If the inputs used to measure fair value fall in different levels of the fair value hierarchy, a financial security’s hierarchy level is based upon the lowest level of input that is significant to the fair value measurement. Derivative Financial Instruments We issue derivative financial instruments in conjunction with its debt and equity offerings and to provide additional incentive to investors and placement agents. The Company uses derivative financial instruments in order to obtain the lowest cash cost-source of funds. Derivative liabilities are recognized in the consolidated balance sheets at fair value based on the criteria specified in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, topic 815-40 “ Derivatives and Hedging—Contracts in Entity’s own Equity We issued warrants to purchase common stock and secured debt with a conversion feature in April and May 2015, September 2016 and December 2016. We amended the convertible senior secured promissory notes originally issued in April and May 2015 (the “2015 Senior Notes”) to add a conversion feature in December 2015. We issued additional warrants to purchase common stock with price reset provisions in December 2015, February 2016 and March 2016. These embedded derivatives and warrants were evaluated under ASC topic 815-40. We determined that the conversion feature for the 2015 secured debt, the conversion feature for the September 2016 secured debt, and the warrants issued with price reset provisions should be accounted for as derivative liabilities. In August 2016, all outstanding warrants that we previously determined should be accounted for as derivative liabilities were amended and we determined that, after giving effect to the amendments, we were no longer required to account for the warrants as derivative liabilities. In December 2016, we modified the terms of the September 2016 secured debt and determined that, after giving effect to the amendments, we were no longer required to account for the conversion features as derivative liabilities. We determined that the conversion features of the warrants issued in April and May 2015, September 2016 and December 2016 should not be accounted for as derivative liabilities. Warrants and the debt conversion features determined to be derivative liabilities were bifurcated from the debt host and were classified as liabilities on the consolidated balance sheet. Warrants not determined to be derivative liabilities were recorded to debt discount and paid-in capital. We record the warrants and embedded derivative liabilities at fair value and adjust the carrying value of the warrants to purchase common stock 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 consolidated statements of operations. The warrants issued in 2015 that we no longer account for as derivative liabilities were recorded to debt discount with a corresponding entry to paid-in capital. The warrants that were amended in 2016 such that we were no longer required to account for them as derivative liabilities were marked to market immediately prior to the amendment and the fair value was reclassified on the amendment date from derivative liabilities to paid-in capital. 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 reasonably 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 are 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. As of December 31, 2016 and 2015, we had a $600,000 provision for contract losses. Research and Development Costs Research and development costs are expensed as incurred. Research and development costs were $3,628,000 and $3,412,000 for the years ended December 31, 2016 and 2015, respectively. Share-Based Compensation We maintain an equity incentive plan and record expenses attributable to the awards granted under the equity incentive plan. We amortize share-based compensation from the date of grant on a weighted average basis over the requisite service (vesting) 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 over the term of the consulting agreement. In accordance with the accounting standards, an asset acquired in exchange for the issuance of fully vested, non-forfeitable equity instruments should not be presented or classified as an offset to equity on the grantor’s balance sheet once the equity instrument is granted for accounting purposes. Accordingly, we record the fair value of the fully vested, non-forfeitable common stock issued for future consulting services as prepaid expense in our consolidated balance sheets. Income Taxes We account for income taxes under the provisions of the accounting standards. Under the accounting standards, deferred tax assets and liabilities are recognized for the expected future tax benefits or consequences attributable to temporary differences between the financial statement 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. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such asset will not be realized through future operations. Our deferred tax assets and liabilities are primarily related to our Net Operating Losses and timing differences between book and tax accounting for depreciation and our net deferred tax assets were fully reserved as of December 31, 2016 and 2015. The accounting guidance for uncertainty in income taxes provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. We recognize any uncertain income tax positions on income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. As of December 31, 2016 and 2015 there were no unrecognized tax benefits included in the consolidated balance sheets that would, if recognized, affect the effective tax rate. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. We had no accrual for interest or penalties on our consolidated balance sheets at December 31, 2016 and 2015 and have not recognized interest and/or penalties in the consolidated statements of operations for the years ended December 31, 2016 or 2015. We are subject to taxation in the U.S. and various state and foreign jurisdictions. We do not foresee material changes to our gross uncertain income tax position liability within the next twelve months. Earnings (Loss) per Share Basic 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 loss per share is computed similar to basic 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 9,808,000 and 1,084,000 shares of common stock issuable upon full exercise of all options and warrants at December 31, 2016 and 2015, respectively and all shares potentially issuable in the future under the terms of the Secured Notes Payable were excluded from the computation of diluted loss per share due to the anti-dilutive effect on the net loss per share. Year ended Year ended Net loss $ (10,026,000 ) $ (13,107,000 ) Weighted average number of common shares outstanding: Basic and diluted 3,594,026 2,405,147 Net loss attributable to common stockholders per share: Basic and diluted $ (2.79 ) $ (5.45 ) Comprehensive Income (Loss) We have no items of other comprehensive income (loss) in any period presented. Therefore, net loss as presented in our Consolidated Statements of Operations equals comprehensive loss. Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). In April 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (“ASU 2016-10”). ASU 2014-09, with additional guidance and clarification from ASU 2016-10, 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 2016-10 provides additional guidance specific to licensing and royalty revenue recognition. 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 July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 requires that entities measure inventory at the lower of cost and net realizable value. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and early application is permitted. The Company has not yet assessed the impact ASU 2015-11 will have upon adoption. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. ASU 2015-17 requires that entities’ deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for fiscal years beginning after December 15, 2017 and interim periods within annual periods beginning after December 15, 2018. The Company has not yet assessed the impact ASU 2015-17 will have upon adoption. In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842). ASU 2016-2 affects any entity entering into a lease and changes the accounting for operating leases to require companies to record an operating lease liability and a corresponding right-of-use lease asset, with limited exceptions. ASU 2016-2 is effective for fiscal years beginning after December 15, 2018. Early adoption is allowed. We have not yet assessed the impact ASU 2016-2 will have upon adoption.

Inventory

Inventory	12 Months Ended
	Dec. 31, 2016
Inventory [Abstract]
Inventory	Note 3—Inventory Inventory primarily consists of Powerstation parts used as raw materials for the Company’s EC250 and KG2 orders. Work-in-progress inventory consists of Powerstation parts and employee and contract labor assembly costs for Powerstation sub-assemblies. Sub-assemblies and parts are typically shipped to end customer locations and assembled on-site. Completed Powerstations awaiting final installation and commissioning would be carried as finished goods. There was no finished goods inventory at either December 31, 2016 or 2015. Inventories consist of: December 31, 2016 December 31, 2015 Raw material and spare parts $ 990,000 $ 724,000 Work-in-progress 1,774,000 23,000 Total $ 2,764,000 $ 747,000

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	12 Months Ended
	Dec. 31, 2016
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: December 31, 2016 December 31, 2015 Prepaid rent $ 52,000 $ 27,000 Prepaid insurance 43,000 40,000 Prepaid other 96,000 140,000 Prepaid professional fees 1,000 — Current portion—deferred financing fees for letter of credit 110,000 228,000 Total $ 302,000 $ 408,000

Property and Equipment, Net

Property and Equipment, Net	12 Months Ended
	Dec. 31, 2016
Property and Equipment, Net [Abstract]
Property and Equipment, Net	Note 5—Property and Equipment, Net Property and equipment, net consisted of the following: December 31, 2016 December 31, 2015 Machinery and equipment $ 4,377,000 $ 4,042,000 Office furniture and fixtures 217,000 217,000 Computer equipment and software 176,000 169,000 Total cost 4,770,000 4,428,000 Less accumulated depreciation (1,523,000 ) (1,002,000 ) Net $ 3,247,000 $ 3,426,000 Assets recorded under capital leases and included in property and equipment in our balance sheets consist of the following: December 31, 2016 December 31, 2015 Machinery and equipment $ 27,000 $ 27,000 Computer equipment and software 59,000 46,000 Total assets under capital lease 86,000 73,000 Less accumulated amortization (71,000 ) (46,000 ) Net assets under capital lease $ 15,000 $ 27,000 Depreciation expense for the years ended December 31: 2016 2015 Research and development $ 412,000 $ 286,000 General and administrative 116,000 116,000 $ 528,000 $ 402,000 Amortization of assets under capital lease was $25,000 and $20,000 for the years ended December 31, 2016 and 2015, respectively.

Intangibles, Net

Intangibles, Net	12 Months Ended
	Dec. 31, 2016
Intangibles, Net [Abstract]
Intangibles, Net	Note 6—Intangibles, Net Intangibles, net consisted of the following: December 31, 2016 December 31, 2015 Patents $ 80,000 $ 80,000 Less accumulated amortization (60,000 ) (52,000 ) Net $ 20,000 $ 28,000 This intangible asset is amortized over its remaining life. Amortization expense related to this intangible asset was $7,000 and $7,000 for the years ended December 31, 2016 and 2015, respectively. Amortization expense on intangible assets for the year ending December 31, 2017 and for each of the two succeeding years will be $7,000 per year. 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	12 Months Ended
	Dec. 31, 2016
Accrued Expenses [Abstract]
Accrued Expenses	Note 7—Accrued Expenses Accrued expenses consisted of the following: December 31, 2016 December 31, 2015 Accrued professional fees $ 138,000 $ 205,000 Accrued vacation & paid time off 346,000 333,000 Accrued expense reports — 46,000 Accrued board of directors fees 40,000 13,000 Accrued interest 29,000 50,000 Accrued claims – contract license agreement 124,000 — Accrued other 20,000 10,000 Total accrued expenses $ 697,000 $ 657,000

Deferred Revenues and Customer

Deferred Revenues and Customer Advances	12 Months Ended
	Dec. 31, 2016
Deferred Revenues and Customer Advances [Abstract]
Deferred Revenues and Customer Advances	Note 8—Deferred Revenues and Customer Advances Deferred revenues and customer advances consist of balances billed on existing customer contracts for which the revenue cycle is not complete. Customer advances on equipment sales represent down payments and progress payments under the terms and conditions of equipment sales of our Power Oxidizer and Powerstation units. Prepaid license fees represent payments of license fees by Dresser-Rand into an escrow account. Deferred revenues and customer advances consisted of the following: December 31, 2016 December 31, 2015 Customer advances on equipment sales $ 2,776,000 $ 2,572,000 Prepaid license fees 1,100,000 275,000 Total deferred revenues and customer advances $ 3,876,000 $ 2,847,000

Convertible Senior Notes Payabl

Convertible Senior Notes Payable	12 Months Ended
	Dec. 31, 2016
Convertible Senior Notes Payable [Abstract]
Convertible Senior Notes Payable	Note 9—Convertible Senior Notes Payable Convertible Senior Notes payable consisted of the following as of December 31, 2016 Principal Debt Discount Offering Costs Net Total Senior Notes $ 9,302,000 $ (8,558,000 ) $ (433,000 ) $ 311,000 Amortization of Debt Discount and Offering Costs — 304,000 18,000 322,000 Conversion (111,111 ) 102,000 6,000 (3,000 ) Balance, December 31, 2016 9,191,000 (8,152,000 ) (409,000 ) 630,000 Less: Current Portion — — — — Long Term Portion $ 9,191,000 $ (8,152,000 ) $ (409,000 ) $ 630,000 In the fourth quarter of 2016, the Company entered into a securities purchase agreement pursuant to which it issued a new series of convertible senior secured notes (collectively the “2016 Senior Notes”) and related warrants, and entered into amendment agreements related to its 2015 Senior Notes and the convertible unsecured promissory notes of the Company issued in September 2016 (the “Convertible Unsecured Notes”), as described in Note 10 below. The Company issued and sold new 2016 Senior Notes with a face value of $3,747,000 and an original issue discount of $375,000 for gross cash proceeds of $3,372,000. Additionally, the Company amended and restated the 2015 Senior Notes, the aggregate principal amount of which was $5,000,000 prior to such amendment and restatement. Upon the amendment and restatement of the 2015 Senior Notes, the face value of such 2015 Senior Notes was $5,556,000 with an original issue discount of $556,000. The Company refers to the 2016 Senior Notes and the amended and restated 2015 Senior Notes, collectively, as the “Senior Notes”. The Senior Notes are fully secured by all assets of the Company and the Company’s subsidiaries. The Senior Notes are convertible at a price per share of $2.50, which is adjustable upon a Company stock split, reverse split, or common share dividend. In conjunction with the issuance and/or amendment and restatement, as applicable, of the aggregate face value of $9,302,000 of the Senior Notes, we issued five-year warrants to purchase up to 3,720,839 shares of the Company’s common stock at $3.00 per share, which were valued using Black-Scholes option pricing model at $6,003,000. We allocated the fair value of these warrants and the conversion feature of the Senior Notes to debt discount as follows: $3,495,000 allocated to detachable warrants and $4,133,000 allocated to the conversion feature. We recorded an additional debt discount of $930,000 for the original issue discount, resulting in a debt discount recorded at issuance of $8,558,000. We will amortize this discount to interest expense over the expected remaining life of the Senior Notes, which mature on December 31, 2018. We incurred $479,000 of offering costs in conjunction with the issuance and sale of the 2016 Senior Notes and amendment and restatement of the 2015 Senior Notes, consisting of $298,000 of placement agent fees and costs and $181,000 of legal and professional fees. We will amortize the offering costs to interest expense over the expected remaining life of the Senior Notes. Upon an Event of Default, the Senior Notes will bear interest at a rate of 10% per annum. The Senior Notes will mature on December 31, 2018 and rank senior to the Convertible Unsecured Notes. The Senior Notes are convertible at the option of the holder into the Company’s common stock at an exercise price of $2.50 (as subject to adjustment therein) and will automatically convert into shares of the Company’s common stock on the fifth trading day immediately following the issuance date of the Senior Notes on which (i) the Weighted Average Price (as defined in the Senior Notes) of the Company’s common stock for each trading day during a twenty trading day period equals or exceeds $5.00 (as adjusted for any stock dividend, stock split, stock combination, reclassification or similar transaction) and no Equity Conditions Failure (as defined in the Senior Notes) has occurred. The Senior Notes also contain a blocker provision that prevents the Company from effecting a conversion in the event that the holder, together with certain affiliated parties, would beneficially own in excess of either 4.99% or 9.99%, with such threshold determined by the holder prior to issuance, of the shares of the Company’s common stock outstanding immediately after giving effect to such conversion. Upon an Event of Default and delivery to the holder of the Senior Note of notice thereof, such holder may require the Company to redeem all or any portion of its Senior Note at a price equal to 115% of the Conversion Amount (as defined in the Senior Notes) being redeemed. Additionally, upon a Change of Control and delivery to the holder of the Senior Note of notice thereof, such holder may also require the Company to redeem all or any portion of its Senior Note at a price equal to 115% of the Conversion Amount being redeemed. Further, at any time from and after January 1, 2018 and provided that the Company has not received either (i) initial deposits for at least eight 2 MW Power Oxidizer units or (ii) firm purchase orders totaling not less than $3,500,000 and initial payment collections of at least $1,600,000, in each case during the period commencing on the issuance date of the 2016 Senior Notes and ending on December 31, 2017, the holder of the Senior Note may require the Company to redeem all or any portion of its Senior Note at a price equal to 100% of the Conversion Amount being redeemed. At any time after the issuance date of the Senior Notes, the Company may redeem all or any portion of the then outstanding principal and accrued and unpaid interest with respect to such principal, at 100% of such aggregate amount; provided, however, that the aggregate Conversion Amount to be redeemed pursuant to all Senior Notes must be at least $500,000, or such lesser amount as is then outstanding. The portion of the Senior Note(s) to be redeemed shall be redeemed at a price equal to the greater of (i) 110% of the Conversion Amount of the Senior Note being redeems and (ii) the product of (A) the Conversion Amount being redeemed and (B) the quotient determined by dividing (I) the greatest Weighted Average Price (as defined in the Senior Notes) of the shares of the Company’s common stock during the period beginning on the date immediately preceding the date of the notice of such redemption by the Company and ending on the date on which the redemption by the Company occurs by (II) the lowest Conversion Price (as defined in the Senior Notes) in effect during such period. The Senior Notes will contain a provision that prevents the Company from entering into or becoming party to a Fundamental Transaction (as defined in the Senior Notes) unless the Company’s successor entity assumes all of the Company’s obligations under the Senior Notes and the related transaction documents (the “Transaction Documents”) pursuant to written agreements in form and substance satisfactory to at least a certain number of holders of the Senior Notes. In connection with foregoing, Ener-Core Power, Inc., the Company’s wholly-owned subsidiary, entered into a Guaranty, pursuant to which it agreed to guarantee all of the obligations of the Company under the securities purchase agreement for the 2016 Senior Notes, the Senior Notes and the Transaction Documents. In connection with the issuance and sale of the 2016 Senior Notes, the Company entered into a Registration Rights Agreement with the investors (the “Registration Rights Agreement”), pursuant to which the Company is required to file one or more registration statements with the Securities and Exchange Commission (the “SEC”) to register for resale by the investors the shares issuable upon conversion of the 2016 Senior Notes (the “Conversion Shares”) and shares underlying certain warrants issued to the holders of the 2016 Senior Notes (the “Warrant Shares”), and use its best efforts to maintain the effectiveness of such registration statement(s). The Company was required to file the first such registration statement promptly following the initial closing date under the securities purchase agreement for the 2016 Senior Notes, which occurred on December 2, 2016, but in no event later than the date that is forty-five (45) days after such initial closing date. The Registration Rights Agreement required the Company to obtain effectiveness of the required registration statement by specified deadlines contained in the Registration Rights Agreement. The Company complied with its obligation to file such registration statement on January 17, 2017 and the SEC declared such registration statement effective on February 21, 2017. If the Company fails to register the required number of securities, including the Conversion Shares and Warrant Shares, pursuant to the terms of the Registration Rights Agreement, or is unable to maintain a registration statement pursuant to the terms thereof, the Company is obligated to pay to each holder of securities registrable under such Registration Rights Agreement a cash amount equal to two percent of the aggregate purchase price of such investor’s registrable securities, in the manner and subject to the conditions set forth in such Registration Rights Agreement. 2015 Senior Notes As described below, on December 2, 2016, the Company amended and restated all outstanding 2015 Senior Notes and recorded the transaction as a debt extinguishment. The Company recorded a loss on debt extinguishment of $262,000 representing the combined unamortized debt discount and unamortized offering costs. The following table provides a reconciliation of the 2015 Senior Notes Payable activity during the year ended December 31, 2016: Notes Debt Discount Offering Costs Net Total Ending balance—December 31, 2015 $ 5,000,000 $ (791,000 ) $ (99,000 ) $ 4,110,000 Amortization of debt discount and deferred financing costs — 2,498,000 91,000 2,2,589,000 Additional debt discount—March 2016 warrants — (1,497,000 ) — (1,497,000 ) Additional debt discount—February 2016 warrants — (148,000 ) — (148,000 ) Additional debt discount—warrant modification — (316,000 ) — (316,000 ) Balance—December 2, 2016 $ 5,000,000 (254,000 ) (8,000 ) 4,738,000 Loss on debt extinguishment — (254,000 ) (8,000 ) (262,000 ) Amendment and restatement of 2015 Senior Notes Payable on December 2, 2016 $ (5,000,000 ) $ — $ — $ (5,000,000 ) Balance—December 31, 2016 $ — $ — $ — $ — During the year ended December 31, 2015, the Company issued and sold the 2015 Senior Notes, which had an aggregate principal amount of $5.0 million, in two separate tranches. The two tranches of the 2015 Senior Notes were identical, other than the issuance date and the term of the respective 2015 Senior Note tranches and the term of the related detachable warrants, described in greater detail below. On April 23, 2015, the Company closed the first tranche, representing $3.1 million in aggregate principal amount of 2015 Senior Notes issued in a private placement to seven institutional investors and on May 7, 2015, the Company closed the second tranche, representing $1.9 million in aggregate principal amount of 2015 Senior Notes to four institutional investors. The Company received total gross proceeds of $5.0 million, less transaction expenses of $0.3 million consisting of legal costs and placement agent fees. The 2015 Senior Notes bore interest at a rate of 12% per year, payable monthly, and were set to mature on the two-year anniversary of the issuance dates of the 2015 Senior Notes on April 23, 2017 and May 7, 2017 for the first and second tranches, respectively. Upon issuance of the 2015 Senior Notes, each investor, at its discretion, was entitled to convert up to 50% of the balance outstanding under the 2015 Senior Notes. Upon the execution of the December Amendments (as defined below), however, each investor became entitled to fully convert 100% of the balance outstanding under the 2015 Senior Notes into shares of the Company’s common stock. The 2015 Senior Notes permitted the Company to repay the outstanding balance at any time unless the 2015 Senior Notes were in default. The 2015 Senior Notes were secured by substantially all assets of the Company and provide for specified events of default, including: (i) failure to pay principal and interest when due, and (ii) failure to effectuate a reverse stock split on or prior to the three-month anniversary of the first tranche of 2015 Senior Notes, which the Company effectuated in July 2015. The 2015 Senior Notes previously required the Company to consummate a Qualified Public Offering on or prior to the six-month anniversary of the first tranche of 2015 Senior Notes. This default condition, however, was amended as described in greater detail below. Any event of default may be waived by the holders of at least a majority of the aggregate principal amount of 2015 Senior Notes, which must include a specified holder under specified circumstances. Upon the occurrence of an event of default, the interest rate immediately increases to 18% per annum and the 2015 Senior Notes become convertible at a price per share equal to 85% of the average of the five lowest volume weighted average prices of the Company’s common stock during a 15 consecutive trading day period immediately prior to the applicable conversion date. The 2015 Senior Notes were originally issued with detachable warrants to purchase 219,785 shares of the Company’s common stock, exercisable for five years with an exercise price of $12.50 per share (the “April and May 2015 Warrants”). In August 2016, the Company adjusted the exercise price of such April and May 2015 Warrants to $4.00 per share. The Company evaluated the accounting of the April and May 2015 Warrants and determined that such warrants should not be accounted for as derivative liabilities. Between May 2015 and December 2015, the Company and certain investors holding the requisite number of conversion shares and warrant shares underlying the 2015 Senior Notes and April and May 2015 Warrants executed several amendments to the Securities Purchase Agreements dated April 22, 2015 and May 7, 2015, respectively, related to the extension or modification of the debt covenants. Effective as of December 30, 2015, the Company executed a Fourth Amendment to Securities Purchase Agreement dated April 22, 2015, and a Third Amendment to Securities Purchase Agreement dated May 7, 2015 (collectively, the “December Amendments”), each with certain investors holding the requisite number of conversion shares and warrant shares underlying the 2015 Senior Notes and April and May 2015 Warrants pursuant to the referenced Securities Purchase Agreements. The December Amendments (i) extended the deadline to March 31, 2016 for the Company’s consummation of a firm commitment underwritten public offering registered under the Securities Act and related listing of its common stock on a national securities exchange, (ii) provided for the issuance of additional five-year warrants (the “Additional Warrants”), exercisable for ten shares of the Company’s common stock per $1,000 of outstanding principal of the 2015 Senior Notes held by each buyer pursuant to the April 2015 and May 2015 Securities Purchase Agreements, each with an exercise price of $12.50 per share, subject to adjustment as set forth within the Additional Warrants, issuable in tranches triggered by certain Company actions as set forth in the December Amendments and (iii) authorized the Company, prior to January 31, 2016, to issue to one or more investors up to an aggregate of $1,000,000 principal amount of senior secured notes, on the terms and subject to the restrictions set forth in the December Amendments. An initial tranche of Additional Warrants to purchase up to 50,000 shares of the Company’s common stock were issued in conjunction with the execution of the 2015 December Amendments (the “2015 December Warrants”). The 2015 December Amendments also amended the terms of the 2015 Senior Notes to allow for 100% of the balance outstanding under the 2015 Senior Notes to be converted into shares of the Company’s common stock. The modification for the additional conversion feature was accounted for as a debt extinguishment. The Company accelerated the original debt discount to “other expense—debt extinguishment” and recorded additional debt discounts consisting of $609,000 for the fair value of the beneficial conversion feature and $182,000 for the fair value of the 2015 December Warrants issued. On February 2, 2016, due to the Company’s failure to conclude its public offering, the Company issued Additional Warrants to purchase an aggregate of up to 50,000 shares of the Company’s common stock on the same terms as the 2016 December Warrants (the “February Warrants”). On March 31, 2016, the Company executed amendments to the 2015 Senior Notes and related Securities Purchase Agreements (collectively, the “March 2016 Amendments”), each with certain investors holding the requisite number of conversion shares and warrant shares underlying the 2015 Senior Notes and April and May 2015 Warrants pursuant to the referenced Securities Purchase Agreements. The March 2016 Amendments (i) removed the requirement that the Company consummate a “Qualified Public Offering”; (ii) extended the deadline for the Company to commence trading on a Qualified Eligible Market (as defined in the March Amendments) to no later than April 14, 2016; provided that if the Company consummated a private offering of its securities resulting in gross proceeds to the Company of at least $3,000,000 after March 31, 2016 and prior to or on April 14, 2016 (a “Qualified Private Offering”), such deadline would be automatically extended to October 15, 2016; (iii) provided for the issuance of warrants to purchase up to 500,000 shares of the Company’s common stock, each with an exercise price of $5.00 per share, subject to adjustment as set forth within the warrants (the “March 2016 Warrants”); and (iv) added an additional covenant on behalf of the Company that, on or prior to April 14, 2016, it would cause its net monthly cash flow directly associated with the CLA, taken together with its monthly capital expenditure spending associated with the CLA, and excluding expenditures associated with the FSAT requirements defined in the CLA, to be neutral or positive, to be accomplished by re-negotiation or termination of such CLA. On April 11, 2016, the Company consummated a $3 million private offering and thereby satisfied condition (ii) above. On March 31, 2016 the Company issued the March 2016 Warrants and remained in compliance with the net monthly cash flow covenant listed in (iv) above during all relevant times. On June 29, 2016, the Company entered into the CMLA with Dresser-Rand, which both companies intended would supersede and replace the CLA. In April 2017, we amended the terms of the CMLA to make the CMLA effective as of January 1, 2017, at which time it superseded and replaced the CLA. Additionally, upon execution of the September 2016 Amendments (as defined below), the monthly cash flow covenant listed in (iv) above was removed. In connection with the issuance of the March 2016 Warrants, the exercise price of certain warrants issued in December 2015 (the “December 2015 Warrants”) and February 2016 (the “February 2016 Warrants”) was reduced to $5.00 per share. The Company evaluated the February 2016 Warrants and the March 2016 Warrants and determined that both issuances should be accounted for as derivative liabilities on the date of issuance. The Company recorded an additional $148,000 of debt discount upon the issuance of the February 2016 Warrants and $1,497,000 of debt discount upon the issuance of the March 2016 Warrants. The December 31, 2015 debt discount and the additional discounts recorded in February 2016 and March 2016 were amortized over the expected remaining life of the debt. On August 24, 2016, the April and May 2015 Warrants, December 2015 Warrants, February 2016 Warrants and March 2016 Warrants were all amended to (i) reduce the exercise price of such warrants to $4.00 per share and (ii) remove the net cash settlement option which had given rise to derivative accounting. The warrants accounted for as derivative liabilities were marked to market at the $5.00 exercise price immediately prior to the amendment with any change in value recorded to income. The warrants with price adjustment from $12.50 per share to $4.00 per share were not previously accounted for as derivative liabilities. The foregoing warrants were then revalued with an amended exercise price of $4.00 and the difference in fair value resulting from an exercise price reduction of $12.50 per share to $4.00 per share, in the case of the April and May 2015 Warrants, and from $5.00 per share to $4.00 per share, in the case of the December 2015 Warrants, February 2016 Warrants and March 2016 Warrants, was recorded as an additional debt discount of $206,000, which will be amortized over the expected remaining life of the 2015 Senior Notes, as amended and restated. Effective as of September 1, 2016, the Company executed amendments to the 2015 Senior Notes and related Securities Purchase Agreements (collectively, the “September 2016 Amendments”), which are binding upon all of the holders of the 2015 Senior Notes. The September 2016 Amendments (i) extended the deadline for the Company to commence trading on a Qualified Eligible Market (as defined in the September Amendments) to no later than December 31, 2016; (ii) provided that the Company may, on or prior to September 1, 2016, issue to one or more investors up to an aggregate of $1,500,000 principal amount of one-year term unsecured notes, as described in Note 10 below, and related warrants, and approve the forms of agreements to be executed in connection with the issuance of such unsecured notes and warrants; (iii) removed the covenant on behalf of the Company related to net monthly cash flow directly associated with the CLA, as described above; (iv) extended the earliest date on which the holders of the 2015 Senior Notes may require the Company to redeem all or any portion of such 2015 Senior Notes until December 31, 2016; and (v) extended the deadline for the Company to consummate a Further Private Offering (as defined in the 2015 Senior Notes) to December 31, 2016. Effective as of October 21, 2016, the Company executed amendments to the 2015 Senior Notes to clarify and conform the terms of such 2015 Senior Notes to the terms of previous amendments to such 2015 Senior Notes and the related Securities Purchase Agreements. On December 2, 2016, the 2015 Senior Notes were amended and restated such that they rank pari passu with the 2016 Senior Notes. In addition, on December 2, 2016, the April and May 2015 Warrants, December 2015 Warrants, February 2016 Warrants and March 2016 Warrants were all amended to reduce the exercise price of such warrants to $3.00 per share. The foregoing warrants were then revalued with an amended exercise price of $3.00 and the difference in fair value resulting from an exercise price reduction of $4.00 per share to $3.00 per share was recorded as an additional debt discount of $110,000. Since the 2015 Senior Notes were subsequently amended and restated to reflect the terms of the 2016 Senior Notes, the additional discount was incorporated into the residual unamortized debt discount used to calculate the loss on debt extinguishment of $262,000 consisting of the remaining unamortized debt discount of $254,000 and unamortized financing costs of $8,000. Derivative Liabilities We evaluate 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 to determine if they are indexed to an entity’s own stock. During the fiscal year ended December 31, 2015, we determined that the issuance of the 2015 Senior Notes contained an embedded note conversion feature that is required to be accounted for as a derivative. In December 2015, we modified the conversion feature which gave rise to additional derivative liabilities and issued to the debt holders the December 2015 Warrants that included a price reset provision and net cash settlement option. The inclusion of the price reset provision and contingent net cash settlement provision required us to treat the December 2015 Warrants as derivative liabilities and increase the debt discount for the initial value of the derivative liability. Also, in December 2015, we issued warrants to purchase an aggregate of up to 312,500 shares of the Company’s common stock to the investors in the December 2015 equity offering (the “December Offering Warrants”). The December Offering Warrants included limited price reset and net cash settlement provisions, until the earlier of June 30, 2016 or upon the registration of the December 2015 equity securities. This price protection clause expired on June 30, 2016. We recorded the fair value of the December Offering Warrants issued as a derivative liability with a corresponding decrease in additional paid-in capital. In the first quarter of 2016, we issued the February 2016 Warrants and March 2016 Warrants to the holders of the 2015 Senior Notes in exchange for the waiver of certain debt covenants. The February 2016 Warrants and March 2016 Warrants were in substantially identical form to the December Offering Warrants and December 2015 Warrants. We recorded the fair value of the February 2016 Warrants and March 2016 Warrants issued as a derivative liability with a corresponding increase in debt discount. In September 2016, we issued Convertible Unsecured Notes with an embedded conversion feature that is required to be accounted for as a derivative. In December 2016, we modified the Convertible Unsecured Notes conversion feature to a fixed price conversion feature and determined that after the modification, the Convertible Unsecured Note embedded conversion feature no longer was required to be accounted for as a derivative. In August 2016, we amended the terms of all warrants accounted for as derivatives to eliminate the potential net settlement and price adjustment provisions which gave rise to derivative accounting treatment. In December 2016, we extinguished the 2015 Senior Notes upon the amendment and restatement thereof and thereby eliminated the embedded conversion feature associated with the 2015 Senior Notes. For all such changes in accounting from derivative treatment to non-derivative treatment, we marked the warrants to market immediately prior to the amendments in question and reclassified the residual and remaining fair value to paid-in capital. The embedded conversion features and 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 pricing model using the following assumptions: 2016 Annual dividend yield — Expected life (years) 0.1–5 years Risk-free interest rate 0.5–0.9 % Expected volatility 67–107 % 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. Derivative liabilities consisted of the following: Warrants Liability Embedded Note Conversion Feature Total Value as of December 31, 2015 $ 1,297,000 $ 1,213,000 $ 2,510,000 Adjustment to fair value (1,223,000 ) (2,871,000 ) (4,094,000 ) Additional warrants issued for debt amendment 1,645,000 — 1,645,000 Modification of conversion feature—debt amendment — 1,429,000 1,429,000 Warrant amendment—August 24, 2016 (1,719,000 ) — (1,719,000 ) Issuance of Convertible Unsecured Notes—September 1, 2016 — 282,000 282,000 Amendment of conversion feature—Convertible Unsecured Notes — (53,000 ) (53,000 ) Ending balance—December 31, 2016 $ — $ — $ — The Company evaluated the February 2016 Warrants to purchase up to 50,000 shares of the Company’s common stock and the March 2016 Warrants to purchase up to 500,000 shares of the Company’s common stock and determined that both issuances should be accounted for as derivative liabilities. The Company recorded an additional $148,000 of debt discount upon the issuance of the February Warrants and $1,497,000 of debt discount upon the issuance of the March 2016 Warrants. The December 31, 2015 debt discount and the additional discounts recorded in February 2016 and March 2016 were amortized over the expected remaining life of the debt. On August 24, 2016, we amended the terms of all warrants that had been previously accounted for as derivative liabilities. The amendments reduced the exercise price of each warrant series to $4.00 per share and removed net cash settlement language, and any price reset provisions had since lapsed. After the execution of the amendments, we determined that the December Offering Warrants, December 2015 Warrants, February 2016 Warrants and March 2016 Warrants were no longer required to be accounted for as derivative liabilities. We marked each warrant to market immediately prior to the execution of the amendments and reduced the derivative liability associated with each warrant to zero with a corresponding increase to paid-in capital. On September 1, 2016, we issued $1,250,000 principal amount of Convertible Unsecured Notes, as described in Note 10. The Convertible Unsecured Notes include an embedded conversion feature that is required to be accounted for as a derivative valued at $282,000 on the date of issuance. On December 2, 2016, we marked the embedded conversion feature of the 2015 Senior Notes to market immediately prior to the amendment and restatement that gave rise to the extinguishment, which reduced the value to below $1,000. Also on December 2, 2016, we modified the Convertible Unsecured Notes to change the conversion feature from a variable conversion price to a fixed conversion price. The change in conversion was evaluated and the Company determined that the revised conversion price should not be accounted for as a derivative liability. We marked the conversion features to market immediately prior to the execution of the amendment or the extinguishment and reduced the derivative liability associated with each instrument to zero with a corresponding increase to paid-in capital.

Convertible Unsecured Notes

Convertible Unsecured Notes	12 Months Ended
	Dec. 31, 2016
Convertible Unsecured Notes [Abstract]
Convertible Unsecured Notes	Note 10—Convertible Unsecured Notes Convertible Unsecured Notes payable consisted of the following as of December 31, 2016: Notes Debt Discount Offering Costs Net Total September 1, 2016 issuance $ 1,250,000 $ (553,000 ) $ (45,000 ) $ 652,000 Additional warrants issued — (305,000 ) — (305,000 ) Modification of warrants – exercise price change — (30,000 ) — (30,000 ) Amortization of debt discount and deferred financing costs — 222,000 15,000 48,000 Ending balance—December 31, 2016 1,250,000 (666,000 ) (30,000 ) 554,000 Less: Current Portion $ (1,250,000 ) $ 666,000 $ 30,000 $ (554,000 ) Long Term Portion $ — $ — $ — $ — On September 1, 2016, we entered into a securities purchase agreement and related notes and warrants pursuant to which we issued the Convertible Unsecured Notes and detachable five-year warrants to purchase an aggregate of 124,999 shares of the Company’s common stock at an exercise price of $4.00 per share (the “September 2016 Financing”). The Company received total gross proceeds of $1,250,000, less transaction expenses of $45,000 consisting of legal costs for net proceeds of $1,205,000. The Convertible Unsecured Notes bear interest at a rate of 12% per annum and mature on September 1, 2017; provided, however, that the Company may not prepay any portion of the outstanding principal and accrued and unpaid interest under the Convertible Unsecured Notes so long as any of the Senior Notes remain outstanding and in no event will the maturity date of such Convertible Unsecured Notes be earlier than at least ninety-one (91) days after the maturity date under the Senior Notes. The Convertible Unsecured Notes are subordinate to the Senior Notes described in Note 9. The Convertible Unsecured Notes were initially convertible at the option of the holder into common stock at a conversion price of $4.31 per share and will automatically convert into shares of common stock in the event of a conversion of at least 50% of the then outstanding (i) principal, (ii) accrued and unpaid interest with respect to such principal and (iii) accrued and unpaid late charges, if any, with respect to such principal and interest, under the Senior Notes. In connection with the issuance of the 2016 Senior Notes and amendment and restatement of the 2015 Senior Notes, the conversion price was reduced to $2.50 per share. The Convertible Unsecured Notes also contain a blocker provision that prevents the Company from effecting a conversion in the event that the holder, together with certain affiliated parties, would beneficially own in excess of 9.99% of the shares of common stock outstanding immediately after giving effect to such conversion. At any time after the issuance date of the Convertible Unsecured Notes, the Company may, at its option, redeem all or any portion of the then outstanding principal and accrued and unpaid interest with respect to such principal (the “Company Optional Redemption Amount”), at 100% of such aggregate amount; provided, however, that the Company may not redeem all or any portion of the Company Optional Redemption Amount so long as any of the Senior Notes remain outstanding without the prior written consent of the collateral agent with respect to such Senior Notes and certain investors holding the requisite number of conversion shares and warrant shares underlying the Senior Notes and April and May 2015 Warrants. The securities purchase agreement for the Convertible Unsecured Notes calls for the issuance of additional five-year warrants to purchase an aggregate of 62,500 shares at an exercise price of $4.00 per share on each of the 61st, 91st, 121st and 151st days after the closing of the September 2016 Financing, or, in each case, an Additional Warrant Date, but only in the event the Company not consummated a further financing consisting of the issuance of common stock and warrants for aggregate gross proceeds of at least $3,000,000 prior to such respective Additional Warrant Date. As of January 30, 2017, the Company had not consummated a further financing and, as a result, issued warrants to purchase an aggregate of 250,000 shares of the Company’s common stock, consisting of the issuance of an aggregate of 62,500 shares of the Company’s common stock on each of November 1, 2016, December 1, 2016, December 31, 2016 and January 30, 2017. The Company valued the warrants using the Black-Scholes Option pricing model at $305,000. The Company evaluated the accounting of the additional detachable warrants and determined that the warrants should not be accounted for as derivative liabilities. The Company evaluated the accounting of the detachable warrants and determined that the warrants should not be accounted for as derivative liabilities. The Company valued the warrants using the Black-Scholes Option pricing model at $271,000. Embedded Conversion Feature Liability The Company evaluated the conversion feature and determined that it should be accounted for as a derivative liability due to the potential variability of the conversion feature which is linked to the conversion of the Senior Notes Payable. The conversion feature was valued using the Black-Scholes Option pricing model at $282,000 and will be marked to market each reporting period beginning with the quarter ended September 30, 2016. See also the discussion of derivative liabilities in Note 9 above. The embedded derivatives were valued using Black-Scholes option pricing model where the exercise price was equal to the market price on the valuation date and the following assumptions: 2016 Annual dividend yield — Expected life (years) 0.8-1.0 years Risk-free interest rate 0.008-0.48 % Expected volatility 67–90 % 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 embedded derivatives is likely to differ materially from historical volatility. The expected life is based on the remaining term of the conversion option. The risk-free interest rate is based on the U.S. Treasury securities consistent with the remaining term of the embedded derivatives.

Fair Value Measurements and Dis

Fair Value Measurements and Disclosures	12 Months Ended
	Dec. 31, 2016
Fair Value Measurements and Disclosures [Abstract]
Fair Value Measurements and Disclosures	Note 11—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: At December 31, 2106 Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents, including restricted cash $ 1,360,000 $ 1,360,000 $ — $ — Derivative liabilities—warrants $ — $ — $ — $ — Embedded note conversion feature $ — $ — $ — $ — At December 31, 2015 Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents, including restricted cash $ 2,805,000 $ 2,805,000 $ — $ — Derivative liabilities—warrants $ 1,297,000 $ — $ — $ 1,297,000 Embedded note conversion feature $ 1,213,000 $ — $ — $ 1,213,000

Capital Leases Payable

Capital Leases Payable	12 Months Ended
	Dec. 31, 2016
Capital Leases Payable [Abstract]
Capital Leases Payable	Note 12—Capital Leases Payable Capital Leases Payable Capital leases payable consisted of the following: December 31, December 31, 2015 Capital lease payable to De Lange Landon secured by forklift, 10.0% interest, due on October 1, 2018, monthly payment of $452. $ 10,000 $ 13,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on November 16, 2016, monthly payment of $592. — 6,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on December 15, 2016, monthly payment of $590. — 6,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on January 3, 2017, monthly payment of $390. — 5,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on January 3, 2017, monthly payment of $394. 4,000 10,000 Total capital leases $ 14,000 $ 40,000 Less: current portion (10,000 ) (26,000 ) Long-term portion of capital leases $ 4,000 $ 14,000 The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of December 31, 2016, are as follows: Year Ending Amount 2017 10,000 2018 5,000 Net minimum lease payments $ 15,000 Less: Amount representing interest and taxes (1,000 ) Present value of net minimum lease payments $ 14,000 Less: Current maturities of capital lease payables (10,000 ) Long-term capital lease payables $ 4,000

Equity

Equity	12 Months Ended
	Dec. 31, 2016
Equity [Abstract]
Equity	Note 13—Equity On April 11, 2016, the Company entered into a stock purchase agreement dated April 11, 2016, pursuant to which it issued to an accredited investor an aggregate of 696,056 shares of the Company’s common stock in exchange for gross proceeds of approximately $3.0 million (the “April 2016 Private Placement”). The closing of the April 2016 Private Placement satisfied the Qualified Private Offering requirement in the March Amendments described under “March 2016 Amendment to 2015 Senior Notes” in Note 14 below.

Stock Options and Warrants

Stock Options and Warrants	12 Months Ended
	Dec. 31, 2016
Stock Options and Warrants [Abstract]
Stock Options and Warrants	Note 14—Stock Options and Warrants Stock Options On July 1, 2013, the Company’s board of directors adopted and approved the 2013 Equity Incentive Plan (the “2013 Plan”) and amended the 2013 Plan on March 24, 2015 to increase the number of shares available for issuance. The 2013 Plan previously authorized us to grant non-qualified stock options and restricted stock purchase rights to purchase up to 420,000 shares of the Company’s common stock to employees (including officers) and other service providers. With the approval of the 2015 Plan, described below, as of August 29, 2015, no shares of common stock were available for issuance under the 2013 Plan. On July 15, 2015, the Company’s board of directors approved the 2015 Omnibus Incentive Plan (the “2015 Plan”), which was approved by the Company’s stockholders on August 28, 2015. Upon adoption, the 2015 Plan authorized us to grant up to 300,000 shares of the Company’s common stock and replaced the 2013 Equity Incentive Plan. As a result of the approval of the 2015 Plan, no additional grants will be made under the 2013 Plan. On August 22, 2016, the Company’s board of directors approved an amendment to the 2015 Plan to increase the total authorized pool available under the 2015 Plan to 600,000 shares of the Company’s common stock, subject to automatic increase for any shares subject to outstanding awards under the 2013 Plan that are subsequently canceled or expire. The Company’s stockholders approved the foregoing amendment on September 26, 2016. As of December 31, 2016, 594,000 shares of the Company’s common stock were available for issuance under the 2015 Plan. The 2015 Plan permits the granting of any or all of the following types of awards: incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards, and performance awards payable in a combination of cash and company shares. As of December 31, 2016, the Company has issued options to purchase an aggregate of 6,000 shares of the Company’s common stock. The 2015 Plan has the following limitations: ● Limitation on terms of stock options and stock appreciation rights ● No repricing or grant of discounted stock options ● Clawback ● Double-trigger acceleration ● Code Section 162(m) Eligibility ● Dividends At December 31, 2016, total unrecognized deferred stock compensation expected to be recognized over the remaining weighted-average vesting periods of 0.4 years for outstanding grants was $0.7 million. The fair value of option awards 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. Stock-based compensation expense is recorded only for those awards expected to vest. Currently, the forfeiture rate used to calculate stock-based compensation expense is zero, which approximates the effective actual forfeiture rate. 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 Price Life Value Balance, December 31, 2015 308,464 $ 13.61 6.07 $ — Forfeited during 2016 (40,914 ) 11.69 — — Granted during 2016 6,000 4.31 9.75 — Balance, December 31, 2016 273,550 $ 13.70 5.02 $ — Exercisable on December 31, 2016 210,558 $ 15.02 4.94 $ — The options granted have a contract term ranging between three and ten years. Options granted typically vest over a four-year period, with 25% vesting after one year and the remainder ratably over the remaining three years. Of the Company’s outstanding options, options to purchase 267,550 shares of the Company’s common stock were outstanding and options to purchase 210,558 shares of the Company’s common stock were exercisable under the 2013 Plan and options to purchase 6,000 shares of the Company’s common stock were outstanding with none exercisable under the 2015 Plan on December 31, 2016. The following table summarizes information about stock options outstanding and exercisable at December 31, 2016: Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Number Remaining Average Number Average Exercise of Contractual Exercise of Exercise Prices Shares Life Price Shares Price (In years) $0–$10.00 99,840 7.04 $ 7.46 59,196 $ 7.46 $10.01–$15.00 31,100 7.16 $ 12.50 20,163 $ 12.50 $15.01–$20.00 122,766 3.50 $ 17.50 112,187 $ 17.50 $20.01–$25.00 19,844 4.30 $ 23.40 19,012 $ 23.40 273,550 5.27 $ 13.70 210,558 $ 15.02 Stock based compensation expense consisted of the following: Year ended December 31 2016 2015 Research and development $ 535,000 $ 583,000 General and administrative 792,000 902,000 Total $ 1,327,000 $ 1,485,000 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 rendered or to be rendered in the future. The following table represents the activity for warrants outstanding, exchanged, and issued for the year ending December 31, 2016. Balance outstanding at December 31, 2015 775,543 $ 12.04 Issued for Convertible Unsecured Notes 312,499 3.00 Issued for 2015 Senior Notes Amendments 550,000 3.00 Issued for 2016 Senior Notes 3,720,839 3.00 Balance outstanding at December 31, 2016 5,358,881 $ 3.77 All warrants were exercisable at December 31, 2016, the weighted average exercise price per share was $3.77 and the weighted average remaining life was 4.64 years. The warrants outstanding as of December 31, 2016 had no intrinsic value. February 2016 Additional Warrants On February 2, 2016, the Company issued the February 2016 Warrants to purchase an aggregate of 50,000 shares of the Company’s common stock to existing noteholders under the terms of the December Amendments. On August 24, 2016, the February 2016 Warrants were amended to reduce the exercise price to $4.00 per share and concurrent with the issuance of the 2016 Senior Notes,, the February 2016 Warrants were further amended to reduce the exercise price to $3.00 per share, as described below. March 2016 Amendment to 2015 Senior Notes On March 31, 2016, the Company executed the March Amendments with certain investors holding the requisite number of conversion shares and warrant shares underlying the 2015 Senior Notes and April and May 2015 Warrants pursuant to the related Securities Purchase Agreements. The March Amendments, described above in Note 9, provided for the issuance of the March 2016 Warrants, exercisable for 10 shares of the Company’s common stock per $100 of outstanding principal of the 2015 Senior Notes held by each buyer pursuant to the April 2015 and May 2015 Securities Purchase Agreements, each with an exercise price of $5.00 per share, subject to adjustment as set forth within the warrants. March 2016 Warrants to purchase an aggregate of 500,000 shares of the Company’s common stock were issued to the holders of the 2015 Senior Notes on March 31, 2016. On August 24, 2016, the March 2016 Warrants were amended to reduce the exercise price to $4.00 per share and concurrent with the issuance of the 2016 Senior Notes, the March 2016 Warrants were further amended to reduce the exercise price to $3.00 per share, as described below. August 2016 Warrant Amendments On August 24, 2016, the Company executed amendments to the April and May 2015 Warrants, December 2015 Warrants, December Offering Warrants, February 2016 Warrants and March 2016 Warrants, as indicated in the table below. The amendments reduced the exercise price of the warrants to $4.00 per share and removed all remaining net cash settlement provisions in each warrant. For the warrants accounted for as derivative liabilities, the Company marked the warrants to market immediately prior to the change in the strike price to a value of $1,719,000. The removal of the warrant agreement provisions that required derivative accounting resulted in a reclassification of $1,719,000 from derivative liabilities to paid-in capital. The reduction in exercise price to $4.00 resulted in an additional discount to the 2015 Senior Notes of $206,000 which will be amortized to interest expense over the expected remaining life of the 2015 Senior Notes, as amended and restated. Convertible Unsecured Notes Warrants On September 1, 2016, the Company issued warrants to purchase up to 124,999 shares of common stock to the holders of the Convertible Unsecured Notes payable. Under the terms of Securities Purchase Agreement for the Convertible Unsecured Notes, the holders of the Convertible Unsecured Notes were entitled, in the aggregate, to receive additional warrants to purchase up to 62,500 shares of common stock on each of the following dates: November 1, 2016, December 1, 2016, December 31, 2016, and January 30, 2017, in each case only in the event that the Convertible Unsecured Notes are not repaid or converted into an equity transaction prior to each issuance date. The Company issued warrants to purchase up to 250,000 shares of the Company’s common stock between November 1, 2016 and January 30, 2017, each with a five-year term. The September 1, 2016 and November 1, 2016 warrants were issued with a $4.00 per share exercise price, subsequently amended to a $3.00 per share exercise price. The Company recorded the difference in fair value, valued using the Black Scholes pricing model as $30,000 as a result of the price change as an additional debt discount to be amortized over the expected remaining life of the Convertible Unsecured Notes. The warrants issued on December 1, 2016, December 31, 2016 and January 30, 2017 were issued with a $3.00 per share exercise price. 2015 Senior Note Warrant Amendments Concurrent with the issuance of the 2016 Senior Notes, the Company executed amendments to all warrants associated with the 2015 Senior Notes, including the warrants issued in April and May 2015, the December 2015 Warrants, the February 2016 Warrants and the March 2016 Warrants. The exercise price of each series of warrants was reduced to $3.00 per share. Warrants outstanding as of December 31, 2016 consist of: Issue Date Expiry Date Number of Warrants Exercise Price per Share 2013 Services Warrants—July Jul-13 Jul-18 9,494 $ 37.50 2013 Services Warrants—August Aug-13 Aug-18 729 37.50 2013 Services Warrants—November Nov-13 Nov-18 2,400 50.00 2014 Services Warrants—April(1) Apr-14 Apr-19 13,657 39.00 2014 Services Warrants—September(2) Aug-14 Aug-19 16,000 25.00 2014 PIPE Warrants—September(3) Sept-14 Sept-18 26,500 25.00 2014 Services Warrants—November(4) Nov-14 Nov-18 6,500 25.00 2014 Settlement Warrants—December(5) Dec-14 Dec-19 38,464 25.00 2015 Senior Notes Warrants(6)(14) Apr/May-15 Apr/May-20 219,785 3.00 2015 Services Warrants—May(7) May-15 May-20 5,514 12.50 2015 LOC Guarantee Warrants—November(8) Nov-15 Nov-20 74,000 15.00 2015 Debt Amendment Warrants—December(9)(15) Dec-15 Dec-20 50,000 3.00 2015 PIPE Warrants—December(10)(15) Dec-15 Dec-20 312,500 4.00 2016 Debt Amendment Warrants—February(11)(15) Feb-16 Feb-21 50,000 3.00 2016 Debt Amendment Warrants—March(12)(15) Mar-16 Mar-21 500,000 3.00 2016 Unsecured Debt Warrants (13) Sep–Dec-16 Sep–Dec-21 312,999 3.00 2016 Senior Notes Warrants Dec-16 Dec-21 3,720,839 3.00 Warrants outstanding and exercisable at December 31, 2016 5,358,881 $ 3.77 (1) The 2014 Services Warrants—April were issued for fees incurred in conjunction with the issuance of convertible notes in 2014. The warrants were valued on the issuance date at $11.50 per share in conjunction with the valuation approach used for the initial valuation of the warrants issued in connection with the convertible notes issued in 2014. (2) The 2014 Services Warrants—September were issued to a consultant in exchange for advisory services with no readily available fair value. The warrants were originally issued at an exercise price of $39.00 per share and had a one-time price reset provision to the exercise price of the warrants issued to investors in the convertible notes offering in April 2014 if the exercise price of such convertible notes warrants changed prior to September 30, 2014. On September 22, 2014, the exercise price was changed to $25.00 per share. There are no further exercise price changes for this warrant series. The warrants were valued using the Black-Scholes option pricing model at $131,000 on the issuance date with an additional $6,000 recorded to expense on September 22, 2014 to reflect the change in fair value resulting from the exercise price change. (3) On September 22, 2014, the Company issued warrants to purchase up to 26,500 shares of common stock with an exercise price of $25.00 per share in conjunction with placement agent services for the Company’s September 2014 private equity placement. The warrants were valued using the Black-Scholes option pricing model at $296,000 on the issuance date. (4) On November 26, 2014, the Company issued warrants to purchase up to 6,500 shares of common stock with an exercise price of $25.00 per share for compensation for investor relations services provided. The warrants were valued using the Black-Scholes option pricing model at $43,000 on the issuance date. (5) On December 1, 2014, the Company issued warrants to purchase up to 19,232 shares of common stock with an exercise price of $39.00 per share and on December 15, 2014 issued warrants to purchase up to 19,232 shares of common stock with an exercise price of $25.00 per share to settle potential legal disputes resulting from claims made by the investors in the November 2013 private equity placement. The warrants issued on December 1, 2014 were issued concurrent with the issuance of 8,462 shares of the Company’s common stock in partial settlement of the potential legal disputes arising from claims by two investors. The Company settled all remaining potential legal disputes with all of the remaining investors in the November 2013 private placement on December 15, 2014 by issuing the second tranche of warrants and setting the exercise price of each warrant series issued at $25.00 with no further reset provisions. The combined issuance of the warrants and expense resulting from any price changes were valued using the Black-Scholes option pricing model at $246,000 and expensed to general and administrative expense. (6) On April 23, 2015, the Company issued warrants to purchase up to 136,267 shares of common stock and on May 7, 2015, the Company issued warrants to purchase up to 83,518 shares of common stock, each with an exercise price of $12.50 per share in conjunction with the 2015 Senior Notes described in Note 9. The warrants were valued using the Black-Scholes option pricing model at $2,139,000 on the issuance date. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share. (7) On May 1, 2015, the Company issued warrants to purchase up to 5,514 shares of common stock with an exercise price of $12.50 per share in conjunction with placement agent services for the Company’s May 2015 private equity placement. The warrants were valued using the Black-Scholes option pricing model at $56,000 on the issuance date. (8) On November 2, 2015, the Company issued warrants to purchase up to 74,000 shares of common stock with an exercise price of $15.00 per share in conjunction with the Letter of Credit described in Note 17. The warrants were valued using the Black-Scholes option pricing model at $246,000 on the issuance date. The warrants are exercisable beginning on November 1, 2016. (9) On December 30, 2015, the Company issued warrants to purchase up to 50,000 shares of common stock with an initial exercise price of $12.50 per share in conjunction with the amendment of the 2015 Senior Notes in December 2015, as described in Note 9 above. On March 31, 2016, concurrent with the issuance of the March 2016 Warrants, the exercise price was reduced to $5.00 per share. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share. (10) On December 31, 2015, the Company issued warrants to purchase up to 312,500 shares of common stock with an initial exercise price of $5.00 per share in conjunction with the December private equity placement (the “December PIPE”). The warrants initially provided that if, prior to the earlier of June 30, 2016 or thirty days after the date on which the December PIPE shares and underlying warrants are registered for resale, the Company issued common share derivative securities at a price per share less than $5.00 per share, the Company was obligated to reduce the exercise price of the December PIPE warrants to a price per share equal to the newly issued shares or derivative common stock securities. This price protection clause expired on June 30, 2016. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes the exercise price of the warrants was further reduced to $3.00 per share. (11) On February 2, 2016, the Company issued warrants to purchase up to 50,000 shares of common stock with an initial exercise price of $12.50 per share in conjunction with the amendment of the 2015 Senior Notes in December 2015, as described in Note 9 above. The warrants were valued using the Black-Scholes option pricing model at $148,000 on the issuance date and were recorded as a derivative liability and additional debt discount. The warrants provided that, in the event that the Company issued additional common stock derivative securities at a price per share less than the exercise price, the Company was obligated to reduce the exercise price of the February 2016 Warrants to a price per share equal to the newly issued shares or derivative common stock securities. On March 31, 2016, concurrent with the issuance of the additional debt amendment warrants, the exercise price was reduced to $5.00 per share. This price protection clause expired on June 30, 2016. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share. (12) On March 31, 2016, the Company issued warrants to purchase up to 500,000 shares of common stock with an initial exercise price of $5.00 per share in conjunction with the amendment of the 2015 Senior Notes in December 2015, as described in Note 9 above. The warrants were valued using the Black-Scholes option pricing model at $1,497,000 on the issuance date and were recorded as a derivative liability and additional debt discount. The warrants provided that, in the event that the Company issued additional common stock derivative securities at a price per share less than the exercise price, the Company was obligated to reduce the exercise price of the March 2016 Warrants to a price per share equal to the newly issued shares or derivative common stock securities. This price protection clause expired on June 30, 2016. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share. (13) On September 1, 2016, the Company issued warrants to purchase up to 124,999 shares of common stock with an initial exercise price of $4.00 per share in conjunction with Unsecured Convertible Notes as described in Note 9 above. The warrants were valued using the Black-Scholes option pricing model at $271,000 on the issuance date and were recorded as additional debt discount. Between November 1, 2016 and December 31, 2016, the Company issued additional warrants to purchase up to 187,500 shares of common stock, as described above. The additional warrants were valued using the Black-Scholes option pricing model at $305,000 and were recorded as additional debt discount. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants issued on November 1, 2016 was reduced to $3.00 per share. The warrants issued on December 1, 2016 and December 31, 2016 were issued with an initial exercise price of $4.00 per share. (14) Warrant exercise price was reduced from $12.50 to $4.00 per share on August 24, 2016 and further reduced to $3.00 per share concurrent with the issuance of the 2016 Senior Notes. (15) Warrant exercise price was reduced from $5.00 to $4.00 per share on August 24, 2016 and further reduced to $3.00 per share concurrent with the issuance of the 2016 Senior Notes. On August 24, 2016, the warrant agreement was amended to remove all provisions that had previously required derivative liability accounting treatment.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2016
Income Taxes [Abstract]
Income Taxes	Note 15—Income Taxes Income tax provision for the year ended December 31, 2016 and the year ended December 31, 2015 consists of the following: Year Ended December 31, 2016 Year Ended December 31, 2015 Current income tax expense: Federal $ — $ — State 3,000 1,000 Total $ 3,000 $ 1,000 Deferred income tax expense: Federal — — State — — Total $ — $ — Provision for income taxes $ 3,000 $ 1,000 Due to net losses, effective tax rate for the periods presented was 0%. Deferred income tax assets and liabilities are recorded for differences between the financial statement and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. The valuation allowance increased by $4.0 million from December 31, 2015 to December 31, 2016. December 31, 2016 December 31, 2015 Deferred tax assets: Net operating loss carry-forward $ 17,057,000 13,070,000 Valuation allowance (17,057,000 ) (13,070,000 ) Net deferred tax assets $ — $ — A significant component of our deferred tax assets consisted of net operating loss carry-forwards. We have evaluated the available evidence supporting the realization of our deferred tax assets, including the amount and timing of future taxable income, and have determined it is more likely than not that the assets will not be fully realized and a full valuation allowance is necessary as of December 31, 2016 and 2015. As of December 31, 2016, we have federal and state net operating loss carry-forwards of approximately $27.4 million and $26.9 million, respectively, which expire through 2032. The utilization of net operating loss carry-forwards may be subject to limitations under provision of the Internal Revenue Code Section 382 and similar state provisions. We follow ASC 740 related to accounting for uncertain tax positions, which prescribes a recognition threshold and measurement process for recording in the financial statements, uncertain tax positions taken or expected to be taken in a tax return. Under this provision, the impact of an uncertain income tax position on the income tax return must be recognized at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. Tax benefits of an uncertain tax position will not be recognized if it has less than a 50% likelihood of being sustained based on technical merits. We did not have any uncertain income tax position as of December 31, 2016 and 2015.

Related Party Transactions

Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 16—Related Party Transactions In December 2016, we sold and issued to 21 accredited investors unregistered convertible senior secured promissory notes with an aggregate principal amount of approximately $3.7 million and five-year warrants to purchase an aggregate of 1,498,622 shares of our common stock at an exercise price of $3.00 per share with aggregate net proceeds to us after a ten percent original issue discount and placement agent fee of approximately $3.0 million (the “December 2016 Financing”). The following officers and directors participated in the December 2016 Financing, in which they purchased the number of securities listed adjacent to their name. Name Position with Company Principal Amount of Notes Purchased in December 2016 Financing ($) Number of Shares Underlying Warrants Purchase in December 2016 Financing (#) Aggregate Purchase Price ($) Alain J. Castro Director and Chief Executive Officer 28,000 11,200 25,200 Stephen Markscheid Director 20,000 8,000 18,000

Commitments and Contingencies

Commitments and Contingencies	12 Months Ended
	Dec. 31, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 17—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. Lease We lease our office facility, research and development facility and equipment under operating leases, which for the most part, are renewable. The leases also provide that we pay insurance and taxes. Our primary operating lease expired on December 31, 2016 and we extended the lease for a three month period ending March 31, 2017 at a reduced interim rate. We signed a new lease on February 2017 for a separate facility and expect to move into new facilities in April 2017. As of December 31, 2016 we had no future minimum rental payments under operating leases in excess of one year. For the year ended December 31, 2016 and through March 31, 2017, our headquarters were located at 9400 Toledo Way, Irvine, California 92618. The property consisted of a mixed use commercial office, production, and warehouse facility of 32,649 square feet and expired December 31, 2016. We extended the lease at a reduced rate until March 31, 2017. The monthly rent was $26,825 for 2016 and reduced to $15,000 per month for the three months ending March 31, 2017. As of April 1, 2017, our headquarters is located at 8965 Research Drive, Irvine, CA 92618 and consists of a mixed use commercial office of 4,960 square feet. From January through March 2017, our monthly rent was $15,000 for the Toledo Way property holdover and, from April 1, 2017, our monthly rent is $10,168 per month, with annual escalations on April 1, 2018 to $10,473 per month and on April 1, 2019 to $10,787 per month for the Research Drive property. The Toledo Way lease terminated on April 1, 2017 and the Research Drive property lease expires on March 31, 2020. As of March 31, 2017 our combined remaining minimum lease payments for both the residual three months at Toledo Way and the new lease at Research Drive is $422,000. In addition, we lease space from the Regents of the University of California, Irvine, for the installation and demonstration of the EC250 equipment. The lease expired on January 1, 2015 and reverted to a month-to-month lease with a monthly payment of $7,780. The university will provide certain goods and services including certain research and development services. Standby Letter of Credit Pursuant to the terms of the CLA, the Company is required to provide a backstop security of $2.1 million to secure performance of certain obligations under the CLA (the “BSS”). Effective November 2, 2015, the Company executed that certain Backstop Security Support Agreement (the “Support Agreement”), pursuant to which an investor agreed to provide the Company with financial and other assistance (including the provision of sufficient and adequate collateral) as necessary in order for the Company to obtain a $2.1 million letter of credit acceptable to Dresser-Rand as the BSS and with an expiration date of June 30, 2017 (“Letter of Credit”). If the investor is required to make any payments on the Letter of Credit, subject to the terms of the Intercreditor Agreement (as defined below), the Company must reimburse the investor the full amount of any such payment. Such payment obligation is secured by a pledge of certain collateral of the Company pursuant to a Security Agreement dated November 2, 2015 (“Security Agreement”), and the security interest in favor of and the payment obligations to the investor are subject to the terms of that certain Subordination and Intercreditor Agreement executed concurrently with the Support Agreement and Security Agreement (the “Intercreditor Agreement”) by and among the investor, the Company and the collateral agent pursuant to the Senior Notes. The term of the Company’s obligations under the Support Agreement (the “Term”) commenced on November 2, 2015, the issuance date of the Letter of Credit, and will terminate on the earliest of: (a) replacement of the Letter of Credit with an alternative BSS in favor of Dresser-Rand, (b) Dresser-Rand eliminating the BSS requirement under the CLA, or (c) the last day of the twenty-fourth calendar month following the commencement of the Term. In consideration of the investor’s support commitment, the Company paid the investor a one-time fee equal to 4% of the amount of the Letter of Credit and is obligated to pay a monthly fee equal to 1% of the amount of the Letter of Credit for the first twelve months. If the Support Agreement has not terminated after the initial twelve months, the Company will pay another one-time fee equal to 4% of the amount of the Letter of Credit, and a monthly fee equal to 2% of the amount of the Letter of Credit for up to another twelve months. Concurrent with the execution of the amendment to the CMLA in April 2017, we and Dresser-Rand agreed to modify the requirements for our existing backstop security. As modified, we are required to maintain a $500,000 backstop security, reduced from $2.1 million, and the backstop security was extended from June 2017 to March 31, 2018.

Subsequent Events

Subsequent Events	12 Months Ended
	Dec. 31, 2016
Subsequent Events [Abstract]
Subsequent Events	Note 18—Subsequent Events In April 2017, we exe cuted an amendment to the CMLA with Dresser-Rand, pursuant to which Dresser-Rand agreed to pay us $1.2 million in April 2017 in cash, which represents advance payments on license fees for KG2/PO units representing less than the required minimum number of licenses which would otherwise be required to maintain their exclusivity under the CMLA, as amended. In exchange for this payment, we have agreed to provide a total credit of $1,760,000 against future license payments associated for these KG2/PO units, consisting of a payment credit of $1,200,000 and an additional discount of $560,000. The Amendment further settled certain expense claims made by each party and provided for a mutual release. Because of this claims settlement, the Company accrued $124,000 at December 31, 2016. The payment of the claims accrual is to be made in advance of certain future license fee payments payable from Dresser-Rand to the Company, expected during 2017. Concurrent with the execution of the amendment to the CMLA in April 2017, we and Dresser-Rand agreed to modify the requirements for our existing backstop security. As modified, we are required to maintain a $500,000 backstop security, reduced from $2.1 million, and the backstop security was extended from June 2017 to March 31, 2018. A version of the CMLA Amendment is filed as an Exhibit to this Form 10-K filing.

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying consolidated financial statements include our accounts and our wholly-owned subsidiary, Ener-Core Power, Inc. All significant intercompany transactions and accounts have been eliminated in consolidation. All monetary amounts are rounded to the nearest $000, except certain per share amounts. The accompanying financial statements have been prepared in accordance with GAAP.
Reclassifications	Reclassifications Certain amounts in the 2015 consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications have no effect on previously reported net loss.
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 December 31, 2016 and 2015, 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 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 December 31, 2016, we had $1.1 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 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, which is at the discretion of the financial institution, was $50,000 on December 31, 2016 and 2015.
Dresser-Rand Escrow Account	Dresser-Rand Escrow Account Under the CLA, prepaid license fee payments of $400,000 per quarter were paid by Dresser-Rand into an escrow account with a financial institution beginning in August 2015. Dresser-Rand withdrew up to $125,000 per quarter from this escrow account for qualified engineering expenses incurred by Dresser-Rand under the terms and conditions of the CLA. Through September 26, 2016, Dresser-Rand funded $1,600,000 and withdrew $500,000. On September 26, 2016 substantially all of the remaining $1,100,000 was released to us from the escrow account and, in October 2016, the escrow account was closed. The balance in the escrow account was $0 and $150,000 on December 31, 2016 and 2015, respectively. See also “Note 8—Deferred Revenues and Customer Advances”.
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. As of December 31, 2016 and 2015, two customers accounted for 100% of net accounts receivable.
Accounts Payable	Accounts Payable As of December 31, 2016 and 2015, eight and five vendors, respectively, collectively accounted for approximately 50% of our total accounts payable.
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 December 31, 2016 and 2015, we did not have a reserve for slow-moving or obsolete inventory.
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.
Accrued Warranties	Accrued Warranties Accrued warranties represent the estimated costs that will be incurred during the warranty period of our products. We make an estimate of expected costs that will be incurred by us during the warranty period and charge that expense to the consolidated statement of operations at the date of sale. We also reevaluate the estimate at each balance sheet date and if the estimate is changed, the effect is reflected in the consolidated statement of operations. We had no warranty accrual at December 31, 2016 or 2015. We expect that most terms for future warranties of our Powerstations and Power Oxidizers will be one to two years, depending on the warranties provided and the products sold. Accrued warranties for expected expenditures within one year are classified as current liabilities and as non-current liabilities for expected expenditures for time periods beyond one year.
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. Also, tenant improvement allowances provided are recorded as a deferred rent liability and recognized ratably as a reduction to rent expense over the lease term.
Intangible Assets	Intangible Assets Our intangible assets represent intellectual property acquired during the reverse merger. We amortize our intangible assets with finite lives over their estimated useful lives.
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 our 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 December 31, 2016 and 2015, we do not believe there have been any 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 December 31, 2016 and 2015. 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. We determine the fair value of our financial instruments based on a three-level hierarchy established for fair value measurements under which these assets and liabilities must be grouped, based on significant levels of observable or unobservable inputs. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect management’s market assumptions. This hierarchy requires the use of observable market data when available. These two types of inputs have created the following fair-value hierarchy: ● Level 1: Valuations based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Currently, we classify our cash and cash equivalents as Level 1 financial instruments. ● Level 2: Valuations based on observable inputs (other than Level 1 prices), such as quoted prices for similar assets at the measurement date quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability. We do not currently have any accounts under Level 2. ● Level 3: Valuations based on inputs that require inputs that are both significant to the fair value measurement and unobservable and involve management judgment (i.e., supported by little or no market activity). Currently, we classify our warrants and conversion options accounted for as derivative liabilities as Level 3 financial instruments. If the inputs used to measure fair value fall in different levels of the fair value hierarchy, a financial security’s hierarchy level is based upon the lowest level of input that is significant to the fair value measurement.
Derivative Financial Instruments	Derivative Financial Instruments We issue derivative financial instruments in conjunction with its debt and equity offerings and to provide additional incentive to investors and placement agents. The Company uses derivative financial instruments in order to obtain the lowest cash cost-source of funds. Derivative liabilities are recognized in the consolidated balance sheets at fair value based on the criteria specified in Financial Accounting Standards Board, or FASB, Accounting Standards Codification, or ASC, topic 815-40 “ Derivatives and Hedging—Contracts in Entity’s own Equity We issued warrants to purchase common stock and secured debt with a conversion feature in April and May 2015, September 2016 and December 2016. We amended the convertible senior secured promissory notes originally issued in April and May 2015 (the “2015 Senior Notes”) to add a conversion feature in December 2015. We issued additional warrants to purchase common stock with price reset provisions in December 2015, February 2016 and March 2016. These embedded derivatives and warrants were evaluated under ASC topic 815-40. We determined that the conversion feature for the 2015 secured debt, the conversion feature for the September 2016 secured debt, and the warrants issued with price reset provisions should be accounted for as derivative liabilities. In August 2016, all outstanding warrants that we previously determined should be accounted for as derivative liabilities were amended and we determined that, after giving effect to the amendments, we were no longer required to account for the warrants as derivative liabilities. In December 2016, we modified the terms of the September 2016 secured debt and determined that, after giving effect to the amendments, we were no longer required to account for the conversion features as derivative liabilities. We determined that the conversion features of the warrants issued in April and May 2015, September 2016 and December 2016 should not be accounted for as derivative liabilities. Warrants and the debt conversion features determined to be derivative liabilities were bifurcated from the debt host and were classified as liabilities on the consolidated balance sheet. Warrants not determined to be derivative liabilities were recorded to debt discount and paid-in capital. We record the warrants and embedded derivative liabilities at fair value and adjust the carrying value of the warrants to purchase common stock 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 consolidated statements of operations. The warrants issued in 2015 that we no longer account for as derivative liabilities were recorded to debt discount with a corresponding entry to paid-in capital. The warrants that were amended in 2016 such that we were no longer required to account for them as derivative liabilities were marked to market immediately prior to the amendment and the fair value was reclassified on the amendment date from derivative liabilities to paid-in capital.
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 reasonably 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 are 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. As of December 31, 2016 and 2015, we had a $600,000 provision for contract losses.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred. Research and development costs were $3,628,000 and $3,412,000 for the years ended December 31, 2016 and 2015, respectively.
Share-Based Compensation	Share-Based Compensation We maintain an equity incentive plan and record expenses attributable to the awards granted under the equity incentive plan. We amortize share-based compensation from the date of grant on a weighted average basis over the requisite service (vesting) 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 over the term of the consulting agreement. In accordance with the accounting standards, an asset acquired in exchange for the issuance of fully vested, non-forfeitable equity instruments should not be presented or classified as an offset to equity on the grantor’s balance sheet once the equity instrument is granted for accounting purposes. Accordingly, we record the fair value of the fully vested, non-forfeitable common stock issued for future consulting services as prepaid expense in our consolidated balance sheets.
Income taxes	Income Taxes We account for income taxes under the provisions of the accounting standards. Under the accounting standards, deferred tax assets and liabilities are recognized for the expected future tax benefits or consequences attributable to temporary differences between the financial statement 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. A valuation allowance is provided for significant deferred tax assets when it is more likely than not that such asset will not be realized through future operations. Our deferred tax assets and liabilities are primarily related to our Net Operating Losses and timing differences between book and tax accounting for depreciation and our net deferred tax assets were fully reserved as of December 31, 2016 and 2015. The accounting guidance for uncertainty in income taxes provides that a tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. We recognize any uncertain income tax positions on income tax returns at the largest amount that is more-likely-than-not to be sustained upon audit by the relevant taxing authority. An uncertain income tax position will not be recognized if it has less than a 50% likelihood of being sustained. As of December 31, 2016 and 2015 there were no unrecognized tax benefits included in the consolidated balance sheets that would, if recognized, affect the effective tax rate. Our practice is to recognize interest and/or penalties related to income tax matters in income tax expense. We had no accrual for interest or penalties on our consolidated balance sheets at December 31, 2016 and 2015 and have not recognized interest and/or penalties in the consolidated statements of operations for the years ended December 31, 2016 or 2015. We are subject to taxation in the U.S. and various state and foreign jurisdictions. We do not foresee material changes to our gross uncertain income tax position liability within the next twelve months.
Earnings (Loss) per Share	Earnings (Loss) per Share Basic 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 loss per share is computed similar to basic 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 9,808,000 and 1,084,000 shares of common stock issuable upon full exercise of all options and warrants at December 31, 2016 and 2015, respectively and all shares potentially issuable in the future under the terms of the Secured Notes Payable were excluded from the computation of diluted loss per share due to the anti-dilutive effect on the net loss per share. Year ended Year ended Net loss $ (10,026,000 ) $ (13,107,000 ) Weighted average number of common shares outstanding: Basic and diluted 3,594,026 2,405,147 Net loss attributable to common stockholders per share: Basic and diluted $ (2.79 ) $ (5.45 )
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 Consolidated Statements of Operations equals comprehensive loss.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”). In April 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing (“ASU 2016-10”). ASU 2014-09, with additional guidance and clarification from ASU 2016-10, 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 2016-10 provides additional guidance specific to licensing and royalty revenue recognition. 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 July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. ASU 2015-11 requires that entities measure inventory at the lower of cost and net realizable value. ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years and early application is permitted. The Company has not yet assessed the impact ASU 2015-11 will have upon adoption. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. ASU 2015-17 requires that entities’ deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for fiscal years beginning after December 15, 2017 and interim periods within annual periods beginning after December 15, 2018. The Company has not yet assessed the impact ASU 2015-17 will have upon adoption. In February 2016, the FASB issued ASU 2016-2, Leases (Topic 842). ASU 2016-2 affects any entity entering into a lease and changes the accounting for operating leases to require companies to record an operating lease liability and a corresponding right-of-use lease asset, with limited exceptions. ASU 2016-2 is effective for fiscal years beginning after December 15, 2018. Early adoption is allowed. We have not yet assessed the impact ASU 2016-2 will have upon adoption.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies [Abstract]
Schedule of earnings per share, basic and diluted	Year ended Year ended Net loss $ (10,026,000 ) $ (13,107,000 ) Weighted average number of common shares outstanding: Basic and diluted 3,594,026 2,405,147 Net loss attributable to common stockholders per share: Basic and diluted $ (2.79 ) $ (5.45 )

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory [Abstract]
Summary of Inventories	December 31, 2016 December 31, 2015 Raw material and spare parts $ 990,000 $ 724,000 Work-in-progress 1,774,000 23,000 Total $ 2,764,000 $ 747,000

Prepaid Expenses and Other Cu28

Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2016
Prepaid Expenses and Other Current Assets [Abstract]
Schedule of prepaid expenses and other current assets	December 31, 2016 December 31, 2015 Prepaid rent $ 52,000 $ 27,000 Prepaid insurance 43,000 40,000 Prepaid other 96,000 140,000 Prepaid professional fees 1,000 — Current portion—deferred financing fees for letter of credit 110,000 228,000 Total $ 302,000 $ 408,000

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Property and Equipment, Net [Abstract]
Schedule of property and equipment	December 31, 2016 December 31, 2015 Machinery and equipment $ 4,377,000 $ 4,042,000 Office furniture and fixtures 217,000 217,000 Computer equipment and software 176,000 169,000 Total cost 4,770,000 4,428,000 Less accumulated depreciation (1,523,000 ) (1,002,000 ) Net $ 3,247,000 $ 3,426,000
Schedule of assets recorded under capital leases	December 31, 2016 December 31, 2015 Machinery and equipment $ 27,000 $ 27,000 Computer equipment and software 59,000 46,000 Total assets under capital lease 86,000 73,000 Less accumulated amortization (71,000 ) (46,000 ) Net assets under capital lease $ 15,000 $ 27,000
Schedule of depreciation expense	2016 2015 Research and development $ 412,000 $ 286,000 General and administrative 116,000 116,000 $ 528,000 $ 402,000

Intangibles, Net (Tables)

Intangibles, Net (Tables)	12 Months Ended
	Dec. 31, 2016
Intangibles, Net [Abstract]
Finite-Lived Intangible Assets	December 31, 2016 December 31, 2015 Patents $ 80,000 $ 80,000 Less accumulated amortization (60,000 ) (52,000 ) Net $ 20,000 $ 28,000

Accrued Expenses (Tables)

Accrued Expenses (Tables)	12 Months Ended
	Dec. 31, 2016
Accrued Expenses [Abstract]
Schedule of accrued expenses	December 31, 2016 December 31, 2015 Accrued professional fees $ 138,000 $ 205,000 Accrued vacation & paid time off 346,000 333,000 Accrued expense reports — 46,000 Accrued board of directors fees 40,000 13,000 Accrued interest 29,000 50,000 Accrued claims – contract license agreement 124,000 — Accrued other 20,000 10,000 Total accrued expenses $ 697,000 $ 657,000

Deferred Revenues and Custome32

Deferred Revenues and Customer Advances (Tables)	12 Months Ended
	Dec. 31, 2016
Deferred Revenues and Customer Advances [Abstract]
Schedule of deferred revenues and customer advances	December 31, 2016 December 31, 2015 Customer advances on equipment sales $ 2,776,000 $ 2,572,000 Prepaid license fees 1,100,000 275,000 Total deferred revenues and customer advances $ 3,876,000 $ 2,847,000

Convertible Senior Notes Paya33

Convertible Senior Notes Payable (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Instrument [Line Items]
Schedule of secured notes payable	Notes Debt Discount Offering Costs Net Total Ending balance—December 31, 2015 $ 5,000,000 $ (791,000 ) $ (99,000 ) $ 4,110,000 Amortization of debt discount and deferred financing costs — 2,498,000 91,000 2,2,589,000 Additional debt discount—March 2016 warrants — (1,497,000 ) — (1,497,000 ) Additional debt discount—February 2016 warrants — (148,000 ) — (148,000 ) Additional debt discount—warrant modification — (316,000 ) — (316,000 ) Balance—December 2, 2016 $ 5,000,000 (254,000 ) (8,000 ) 4,738,000 Loss on debt extinguishment — (254,000 ) (8,000 ) (262,000 ) Amendment and restatement of 2015 Senior Notes Payable on December 2, 2016 $ (5,000,000 ) $ — $ — $ (5,000,000 ) Balance—December 31, 2016 $ — $ — $ — $ —
Summary of fair value of warrants and embedded conversion features using Black-Scholes pricing model	2016 Annual dividend yield — Expected life (years) 0.1–5 years Risk-free interest rate 0.5–0.9 % Expected volatility 67–107 %
Schedule of derivative liabilities	Warrants Liability Embedded Note Conversion Feature Total Value as of December 31, 2015 $ 1,297,000 $ 1,213,000 $ 2,510,000 Adjustment to fair value (1,223,000 ) (2,871,000 ) (4,094,000 ) Additional warrants issued for debt amendment 1,645,000 — 1,645,000 Modification of conversion feature—debt amendment — 1,429,000 1,429,000 Warrant amendment—August 24, 2016 (1,719,000 ) — (1,719,000 ) Issuance of Convertible Unsecured Notes—September 1, 2016 — 282,000 282,000 Amendment of conversion feature—Convertible Unsecured Notes — (53,000 ) (53,000 ) Ending balance—December 31, 2016 $ — $ — $ —
Convertible Senior Notes payable [Member]
Debt Instrument [Line Items]
Schedule of convertible note payable	Principal Debt Discount Offering Costs Net Total Senior Notes $ 9,302,000 $ (8,558,000 ) $ (433,000 ) $ 311,000 Amortization of Debt Discount and Offering Costs — 304,000 18,000 322,000 Conversion (111,111 ) 102,000 6,000 (3,000 ) Balance, December 31, 2016 9,191,000 (8,152,000 ) (409,000 ) 630,000 Less: Current Portion — — — — Long Term Portion $ 9,191,000 $ (8,152,000 ) $ (409,000 ) $ 630,000

Convertible Unsecured Notes (Ta

Convertible Unsecured Notes (Tables)	12 Months Ended
	Dec. 31, 2016
Debt Instrument [Line Items]
Schedule of embedded derivative using black-scholes model	2016 Annual dividend yield — Expected life (years) 0.8-1.0 years Risk-free interest rate 0.008-0.48 % Expected volatility 67–90 %
Convertible Unsecured Notes payable [Member]
Debt Instrument [Line Items]
Schedule of convertible unsecured notes payable	Notes Debt Discount Offering Costs Net Total September 1, 2016 issuance $ 1,250,000 $ (553,000 ) $ (45,000 ) $ 652,000 Additional warrants issued — (305,000 ) — (305,000 ) Modification of warrants – exercise price change — (30,000 ) — (30,000 ) Amortization of debt discount and deferred financing costs — 222,000 15,000 48,000 Ending balance—December 31, 2016 1,250,000 (666,000 ) (30,000 ) 554,000 Less: Current Portion $ (1,250,000 ) $ 666,000 $ 30,000 $ (554,000 ) Long Term Portion $ — $ — $ — $ —

Fair Value Measurements and D35

Fair Value Measurements and Disclosures (Tables)	12 Months Ended
	Dec. 31, 2016
Fair Value Measurements and Disclosures [Abstract]
Summary of fair-value measurement liabilities table present information	At December 31, 2106 Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents, including restricted cash $ 1,360,000 $ 1,360,000 $ — $ — Derivative liabilities—warrants $ — $ — $ — $ — Embedded note conversion feature $ — $ — $ — $ — At December 31, 2015 Fair Value Level 1 Level 2 Level 3 Cash and cash equivalents, including restricted cash $ 2,805,000 $ 2,805,000 $ — $ — Derivative liabilities—warrants $ 1,297,000 $ — $ — $ 1,297,000 Embedded note conversion feature $ 1,213,000 $ — $ — $ 1,213,000

Capital Leases Payable (Tables)

Capital Leases Payable (Tables)	12 Months Ended
	Dec. 31, 2016
Capital Leases Payable [Abstract]
Summary of capital lease payable	December 31, December 31, 2015 Capital lease payable to De Lange Landon secured by forklift, 10.0% interest, due on October 1, 2018, monthly payment of $452. $ 10,000 $ 13,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on November 16, 2016, monthly payment of $592. — 6,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on December 15, 2016, monthly payment of $590. — 6,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on January 3, 2017, monthly payment of $390. — 5,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on January 3, 2017, monthly payment of $394. 4,000 10,000 Total capital leases $ 14,000 $ 40,000 Less: current portion (10,000 ) (26,000 ) Long-term portion of capital leases $ 4,000 $ 14,000
Summary of capital lease future minimum lease payments	Year Ending Amount 2017 10,000 2018 5,000 Net minimum lease payments $ 15,000 Less: Amount representing interest and taxes (1,000 ) Present value of net minimum lease payments $ 14,000 Less: Current maturities of capital lease payables (10,000 ) Long-term capital lease payables $ 4,000

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	12 Months Ended
	Dec. 31, 2016
Stock Options and Warrants [Abstract]
Schedule of stock-based award activity	Weighted- Weighted- Average Average Remaining Aggregate Exercise Contractual Intrinsic Options Price Life Value Balance, December 31, 2015 308,464 $ 13.61 6.07 $ — Forfeited during 2016 (40,914 ) 11.69 — — Granted during 2016 6,000 4.31 9.75 — Balance, December 31, 2016 273,550 $ 13.70 5.02 $ — Exercisable on December 31, 2016 210,558 $ 15.02 4.94 $ —
Schedule of information about stock options outstanding and exercisable	Options Outstanding Options Exercisable Weighted- Average Weighted- Weighted- Number Remaining Average Number Average Exercise of Contractual Exercise of Exercise Prices Shares Life Price Shares Price (In years) $0–$10.00 99,840 7.04 $ 7.46 59,196 $ 7.46 $10.01–$15.00 31,100 7.16 $ 12.50 20,163 $ 12.50 $15.01–$20.00 122,766 3.50 $ 17.50 112,187 $ 17.50 $20.01–$25.00 19,844 4.30 $ 23.40 19,012 $ 23.40 273,550 5.27 $ 13.70 210,558 $ 15.02
Schedule of stock based compensation expense	Year ended December 31 2016 2015 Research and development $ 535,000 $ 583,000 General and administrative 792,000 902,000 Total $ 1,327,000 $ 1,485,000
Schedule of warrants outstanding activity	Balance outstanding at December 31, 2015 775,543 $ 12.04 Issued for Convertible Unsecured Notes 312,499 3.00 Issued for 2015 Senior Notes Amendments 550,000 3.00 Issued for 2016 Senior Notes 3,720,839 3.00 Balance outstanding at December 31, 2016 5,358,881 $ 3.77
Schedule of warrants outstanding	Issue Date Expiry Date Number of Warrants Exercise Price per Share 2013 Services Warrants—July Jul-13 Jul-18 9,494 $ 37.50 2013 Services Warrants—August Aug-13 Aug-18 729 37.50 2013 Services Warrants—November Nov-13 Nov-18 2,400 50.00 2014 Services Warrants—April(1) Apr-14 Apr-19 13,657 39.00 2014 Services Warrants—September(2) Aug-14 Aug-19 16,000 25.00 2014 PIPE Warrants—September(3) Sept-14 Sept-18 26,500 25.00 2014 Services Warrants—November(4) Nov-14 Nov-18 6,500 25.00 2014 Settlement Warrants—December(5) Dec-14 Dec-19 38,464 25.00 2015 Senior Notes Warrants(6)(14) Apr/May-15 Apr/May-20 219,785 3.00 2015 Services Warrants—May(7) May-15 May-20 5,514 12.50 2015 LOC Guarantee Warrants—November(8) Nov-15 Nov-20 74,000 15.00 2015 Debt Amendment Warrants—December(9)(15) Dec-15 Dec-20 50,000 3.00 2015 PIPE Warrants—December(10)(15) Dec-15 Dec-20 312,500 4.00 2016 Debt Amendment Warrants—February(11)(15) Feb-16 Feb-21 50,000 3.00 2016 Debt Amendment Warrants—March(12)(15) Mar-16 Mar-21 500,000 3.00 2016 Unsecured Debt Warrants (13) Sep–Dec-16 Sep–Dec-21 312,999 3.00 2016 Senior Notes Warrants Dec-16 Dec-21 3,720,839 3.00 Warrants outstanding and exercisable at December 31, 2016 5,358,881 $ 3.77 (1) The 2014 Services Warrants—April were issued for fees incurred in conjunction with the issuance of convertible notes in 2014. The warrants were valued on the issuance date at $11.50 per share in conjunction with the valuation approach used for the initial valuation of the warrants issued in connection with the convertible notes issued in 2014. (2) The 2014 Services Warrants—September were issued to a consultant in exchange for advisory services with no readily available fair value. The warrants were originally issued at an exercise price of $39.00 per share and had a one-time price reset provision to the exercise price of the warrants issued to investors in the convertible notes offering in April 2014 if the exercise price of such convertible notes warrants changed prior to September 30, 2014. On September 22, 2014, the exercise price was changed to $25.00 per share. There are no further exercise price changes for this warrant series. The warrants were valued using the Black-Scholes option pricing model at $131,000 on the issuance date with an additional $6,000 recorded to expense on September 22, 2014 to reflect the change in fair value resulting from the exercise price change. (3) On September 22, 2014, the Company issued warrants to purchase up to 26,500 shares of common stock with an exercise price of $25.00 per share in conjunction with placement agent services for the Company’s September 2014 private equity placement. The warrants were valued using the Black-Scholes option pricing model at $296,000 on the issuance date. (4) On November 26, 2014, the Company issued warrants to purchase up to 6,500 shares of common stock with an exercise price of $25.00 per share for compensation for investor relations services provided. The warrants were valued using the Black-Scholes option pricing model at $43,000 on the issuance date. (5) On December 1, 2014, the Company issued warrants to purchase up to 19,232 shares of common stock with an exercise price of $39.00 per share and on December 15, 2014 issued warrants to purchase up to 19,232 shares of common stock with an exercise price of $25.00 per share to settle potential legal disputes resulting from claims made by the investors in the November 2013 private equity placement. The warrants issued on December 1, 2014 were issued concurrent with the issuance of 8,462 shares of the Company’s common stock in partial settlement of the potential legal disputes arising from claims by two investors. The Company settled all remaining potential legal disputes with all of the remaining investors in the November 2013 private placement on December 15, 2014 by issuing the second tranche of warrants and setting the exercise price of each warrant series issued at $25.00 with no further reset provisions. The combined issuance of the warrants and expense resulting from any price changes were valued using the Black-Scholes option pricing model at $246,000 and expensed to general and administrative expense. (6) On April 23, 2015, the Company issued warrants to purchase up to 136,267 shares of common stock and on May 7, 2015, the Company issued warrants to purchase up to 83,518 shares of common stock, each with an exercise price of $12.50 per share in conjunction with the 2015 Senior Notes described in Note 9. The warrants were valued using the Black-Scholes option pricing model at $2,139,000 on the issuance date. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share. (7) On May 7, 2015, the Company issued warrants to purchase up to 5,514 shares of common stock with an exercise price of $12.50 per share in conjunction with placement agent services for the Company’s May 2015 private equity placement. The warrants were valued using the Black-Scholes option pricing model at $56,000 on the issuance date. (8) On November 2, 2015, the Company issued warrants to purchase up to 74,000 shares of common stock with an exercise price of $15.00 per share in conjunction with the Letter of Credit described in Note 17. The warrants were valued using the Black-Scholes option pricing model at $246,000 on the issuance date. The warrants are exercisable beginning on November 1, 2016. (9) On December 30, 2015, the Company issued warrants to purchase up to 50,000 shares of common stock with an initial exercise price of $12.50 per share in conjunction with the amendment of the 2015 Senior Notes in December 2015, as described in Note 9 above. On March 31, 2016, concurrent with the issuance of the March 2016 Warrants, the exercise price was reduced to $5.00 per share. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share. (10) On December 31, 2015, the Company issued warrants to purchase up to 312,500 shares of common stock with an initial exercise price of $5.00 per share in conjunction with the December private equity placement (the “December PIPE”). The warrants initially provided that if, prior to the earlier of June 30, 2016 or thirty days after the date on which the December PIPE shares and underlying warrants are registered for resale, the Company issued common share derivative securities at a price per share less than $5.00 per share, the Company was obligated to reduce the exercise price of the December PIPE warrants to a price per share equal to the newly issued shares or derivative common stock securities. This price protection clause expired on June 30, 2016. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes the exercise price of the warrants was further reduced to $3.00 per share. (11) On February 2, 2016, the Company issued warrants to purchase up to 50,000 shares of common stock with an initial exercise price of $12.50 per share in conjunction with the amendment of the 2015 Senior Notes in December 2015, as described in Note 9 above. The warrants were valued using the Black-Scholes option pricing model at $148,000 on the issuance date and were recorded as a derivative liability and additional debt discount. The warrants provided that, in the event that the Company issued additional common stock derivative securities at a price per share less than the exercise price, the Company was obligated to reduce the exercise price of the February 2016 Warrants to a price per share equal to the newly issued shares or derivative common stock securities. On March 31, 2016, concurrent with the issuance of the additional debt amendment warrants, the exercise price was reduced to $5.00 per share. This price protection clause expired on June 30, 2016. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share. (12) On March 31, 2016, the Company issued warrants to purchase up to 500,000 shares of common stock with an initial exercise price of $5.00 per share in conjunction with the amendment of the 2015 Senior Notes in December 2015, as described in Note 9 above. The warrants were valued using the Black-Scholes option pricing model at $1,497,000 on the issuance date and were recorded as a derivative liability and additional debt discount. The warrants provided that, in the event that the Company issued additional common stock derivative securities at a price per share less than the exercise price, the Company was obligated to reduce the exercise price of the March 2016 Warrants to a price per share equal to the newly issued shares or derivative common stock securities. This price protection clause expired on June 30, 2016. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share. (13) On September 1, 2016, the Company issued warrants to purchase up to 124,999 shares of common stock with an initial exercise price of $4.00 per share in conjunction with Unsecured Convertible Notes as described in Note 9 above. The warrants were valued using the Black-Scholes option pricing model at $271,000 on the issuance date and were recorded as additional debt discount. Between November 1, 2016 and December 31, 2016, the Company issued additional warrants to purchase up to 187,500 shares of common stock, as described above. The additional warrants were valued using the Black-Scholes option pricing model at $305,000 and were recorded as additional debt discount. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants issued on November 1, 2016 was reduced to $3.00 per share. The warrants issued on December 1, 2016 and December 31, 2016 were issued with an initial exercise price of $4.00 per share. (14) Warrant exercise price was reduced from $12.50 to $4.00 per share on August 24, 2016 and further reduced to $3.00 per share concurrent with the issuance of the 2016 Senior Notes. (15) Warrant exercise price was reduced from $5.00 to $4.00 per share on August 24, 2016 and further reduced to $3.00 per share concurrent with the issuance of the 2016 Senior Notes. On August 24, 2016, the warrant agreement was amended to remove all provisions that had previously required derivative liability accounting treatment.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2016
Income Taxes [Abstract]
Schedule of income tax provision	Year Ended December 31, 2016 Year Ended December 31, 2015 Current income tax expense: Federal $ — $ — State 3,000 1,000 Total $ 3,000 $ 1,000 Deferred income tax expense: Federal — — State — — Total $ — $ — Provision for income taxes $ 3,000 $ 1,000
Schedule of deferred tax assets and liabilities	December 31, 2016 December 31, 2015 Deferred tax assets: Net operating loss carry-forward $ 17,057,000 13,070,000 Valuation allowance (17,057,000 ) (13,070,000 ) Net deferred tax assets $ — $ —

Related Party Transactions (Tab

Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Schedule of related party transactions	Name Position with Company Principal Amount of Notes Purchased in December 2016 Financing ($) Number of Shares Underlying Warrants Purchase in December 2016 Financing (#) Aggregate Purchase Price ($) Alain J. Castro Director and Chief Executive Officer 28,000 11,200 25,200 Stephen Markscheid Director 20,000 8,000 18,000

Organization (Details)

Organization (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Sep. 26, 2016	Apr. 30, 2016	Dec. 31, 2016	Dec. 31, 2015	Sep. 03, 2015	Jul. 01, 2013
Organization (Textual)
Increased authorized shares of stock					250,000,000
Common stock, Shares authorized			200,000,000	200,000,000	200,000,000
Preferred stock, Shares authorized			50,000,000	50,000,000	50,000,000
Forward stock split			30-for-1
Cancellation of shares in reverse merger						2,410,400
Common stock, par value			$ 0.0001	$ 0.0001
Preferred stock, par value			$ 0.0001	$ 0.0001
Reverse stock split			1-for-50
Consumption of oil and gas description			Our Power Oxidizers have been designed to operate on fuels from 100% combustible gas down to concentrations of 5% or less combustible gas content.
Increase in capital	$ 1,250	$ 3,000	$ 3,200	$ 2,500
Unrestricted cash balance			$ 1,300	$ 2,600
Effective date of reverse stock split			Jul. 8, 2015
Entity Incorporation, State Country Name			Delaware
Entity Incorporation, Date of Incorporation			Sep. 3, 2015
License fees			$ 1,100
Second quarter of 2017 [Member]
Organization (Textual)
License fees			$ 1,200
Common stock [Member]
Organization (Textual)
Reduction of shares due to reverse stock split				293

Summary of Significant Accoun41

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Net loss	$ (10,026,000)	$ (13,107,000)
Weighted average number of common shares outstanding:
Basic and diluted	3,594,026	2,405,147
Net loss attributable to common stockholders per share:
Basic and diluted	$ (2.79)	$ (5.45)

Summary of Significant Accoun42

Summary of Significant Accounting Policies (Details Textual)	1 Months Ended		9 Months Ended	12 Months Ended
	Sep. 26, 2016USD ($)	Aug. 31, 2015USD ($)	Sep. 30, 2015shares	Dec. 31, 2016USD ($)segmentCustomersVendorsshares	Dec. 31, 2015USD ($)CustomersVendorsshares
Summary of Significant Accounting Policies (Textual)
Number of operating segments | segment				1
FDIC Insurance coverage				$ 250,000
Cash in excess of FDIC				1,100,000
Security deposit as collateral with financial institution				50,000	$ 50,000
Escrow account balance	$ 1,600,000,000
Dresser-Rand fund with draw	500,000
Escrow deposits released to related party	$ 1,100,000
Number of customers | Customers					2
Provision for contract loss					$ 600,000
Research and development costs				$ 3,752,000	$ 3,412,000
Unrecognized tax benefits, Description				Less than a 50
Options and warrants to purchase of common stock | shares				1,500,000	1,084,000
Dresser Rand Corporation [Member]
Summary of Significant Accounting Policies (Textual)
Prepaid license fee payments		$ 400,000
Engineering expenses incurred by Dresser-Rand		$ 125,000
Escrow account balance				$ 0	$ 150,000
Accounts Receivable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage				100.00%	100.00%
Number of customers | Customers				2	2
Accounts Payable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage				50.00%	50.00%
Number of vendors | Vendors				8	5

Inventory (Details)

Inventory (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Inventory [Abstract]
Raw material and spare parts	$ 990,000	$ 724,000
Work-in-progress	1,774,000	23,000
Total	$ 2,764,000	$ 747,000

Inventory (Details Textual)

Inventory (Details Textual) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Inventory (Textual)
Inventory reserve

Prepaid Expenses and Other Cu45

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Prepaid Expenses and Other Current Assets [Abstract]
Prepaid rent	$ 52,000	$ 27,000
Prepaid insurance	43,000	40,000
Prepaid other	96,000	140,000
Prepaid professional fees	1,000
Current portion-deferred financing fees for letter of credit	110,000	228,000
Total	$ 302,000	$ 408,000

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total cost	$ 4,770,000	$ 4,428,000
Less accumulated depreciation	(1,523,000)	(1,002,000)
Net	3,247,000	3,426,000
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost	4,377,000	4,042,000
Office furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost	217,000	217,000
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 176,000	$ 169,000

Property and Equipment, Net (47

Property and Equipment, Net (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Total assets under capital lease	$ 4,770,000	$ 4,428,000
Less accumulated amortization	(1,523,000)	(1,002,000)
Capital Lease [Member]
Property, Plant and Equipment [Line Items]
Total assets under capital lease	86,000	73,000
Less accumulated amortization	(71,000)	(46,000)
Net assets under capital lease	15,000	27,000
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total assets under capital lease	4,377,000	4,042,000
Machinery and Equipment [Member] | Capital Lease [Member]
Property, Plant and Equipment [Line Items]
Total assets under capital lease	27,000	27,000
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Total assets under capital lease	176,000	169,000
Computer equipment and software [Member] | Capital Lease [Member]
Property, Plant and Equipment [Line Items]
Total assets under capital lease	$ 59,000	$ 46,000

Property and Equipment, Net (48

Property and Equipment, Net (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 528,000	$ 402,000
Research and development [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	412,000	286,000
General and administrative [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 116,000	$ 116,000

Property and Equipment, Net (49

Property and Equipment, Net (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Property Plant and Equipment Net (Textual)
Amortization of assets under capital lease	$ 25,000	$ 20,000

Intangibles, Net (Details)

Intangibles, Net (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Intangibles, Net [Abstract]
Patents	$ 80,000	$ 80,000
Less accumulated amortization	(60,000)	(52,000)
Net	$ 20,000	$ 28,000

Intangibles, Net (Details Textu

Intangibles, Net (Details Textual) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Intangibles, Net (Textual)
Amortization of intangible asset	$ 7,000	$ 7,000
Amortization expense, December 2017	$ 7,000

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Accrued Expenses [Abstract]
Accrued professional fees	$ 138,000	$ 205,000
Accrued vacation and paid time off	346,000	333,000
Accrued expense reports		46,000
Accrued board of directors fees	40,000	13,000
Accrued interest	29,000	50,000
Accrued claims - contract license agreement	124,000
Accrued other	20,000	10,000
Total accrued expenses	$ 697,000	$ 657,000

Deferred Revenues and Custome53

Deferred Revenues and Customer Advances (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred Revenues and Customer Advances [Abstract]
Customer advances on equipment sales	$ 2,776,000	$ 2,572,000
Prepaid license fees	1,100,000	275,000
Total deferred revenues and customer advances	$ 3,876,000	$ 2,847,000

Convertible Senior Notes Paya54

Convertible Senior Notes Payable (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Net Total, Less: Current Portion		$ 4,110,000
Net Total, Long Term Portion	630,000
Convertible Senior Notes payable [Member]
Debt Instrument [Line Items]
Principal, Balance	9,191,000
Principal, Less: Current Portion
Principal, Long Term Portion	9,191,000
Debt Discount, Balance	(8,152,000)
Debt Discount, Less: Current Portion
Debt Discount, Long Term Portion	(8,152,000)
Offering Costs, Balance	(409,000)
Offering Costs, Less: Current Portion
Offering Costs, Long Term Portion	(409,000)
Net Total, Balance	630,000
Net Total, Less: Current Portion
Net Total, Long Term Portion	630,000
Convertible Senior Notes payable [Member] | Senior Notes [Member]
Debt Instrument [Line Items]
Principal, Balance	9,302,000
Debt Discount, Balance	(8,558,000)
Offering Costs, Balance	(433,000)
Net Total, Balance	311,000
Convertible Senior Notes payable [Member] | Amortization of Debt Discount and Offering Costs [Member]
Debt Instrument [Line Items]
Principal, Balance
Debt Discount, Balance	304,000
Offering Costs, Balance	18,000
Net Total, Balance	322,000
Convertible Senior Notes payable [Member] | Conversion [Member]
Debt Instrument [Line Items]
Principal, Balance	(111,111)
Debt Discount, Balance	102,000
Offering Costs, Balance	6,000
Net Total, Balance	$ (3,000)

Convertible Senior Notes Paya55

Convertible Senior Notes Payable (Details 1) - USD ($)	1 Months Ended	11 Months Ended	12 Months Ended
	Dec. 31, 2016	Dec. 02, 2016	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Beginning balance		$ 4,110,000	$ 4,110,000
Amortization of debt discount and deferred financing costs			3,149,000	$ 2,247,000
Loss on debt extinguishment			(262,000)	(707,000)
Ending balance	$ 4,519,000		4,519,000	4,110,000
2015 Senior Notes Payable [Member]
Debt Instrument [Line Items]
Beginning balance	4,738,000	4,110,000	4,110,000
Additional debt discount-March 2016 warrants		(1,497,000)
Additional debt discount-February 2016 warrants		(148,000)
Additional debt discount-warrant modification		(316,000)
Loss on debt extinguishment	(262,000)
Amendment and restatement of 2015 Senior Notes Payable on December 2, 2016	(5,000,000)
Ending balance		4,738,000		4,110,000
2015 Senior Notes Payable [Member] | Notes [Member]
Debt Instrument [Line Items]
Beginning balance	5,000,000	5,000,000	5,000,000
Additional debt discount-March 2016 warrants
Additional debt discount-February 2016 warrants
Additional debt discount-warrant modification
Loss on debt extinguishment
Amendment and restatement of 2015 Senior Notes Payable on December 2, 2016	(5,000,000)
Ending balance		5,000,000		5,000,000
2015 Senior Notes Payable [Member] | Debt Discount [Member]
Debt Instrument [Line Items]
Beginning balance	(254,000)	(791,000)	(791,000)
Additional debt discount-March 2016 warrants		(1,497,000)
Additional debt discount-February 2016 warrants		(148,000)
Additional debt discount-warrant modification		(316,000)
Loss on debt extinguishment	(254,000)
Amendment and restatement of 2015 Senior Notes Payable on December 2, 2016
Ending balance		(254,000)		(791,000)
2015 Senior Notes Payable [Member] | Offering Costs [Member]
Debt Instrument [Line Items]
Beginning balance	(8,000)	(99,000)	(99,000)
Additional debt discount-March 2016 warrants
Additional debt discount-February 2016 warrants
Additional debt discount-warrant modification
Loss on debt extinguishment	(8,000)
Amendment and restatement of 2015 Senior Notes Payable on December 2, 2016
Ending balance		$ (8,000)		$ (99,000)

Convertible Senior Notes Paya56

Convertible Senior Notes Payable (Details 2) - Derivative Liabilities [Member]	12 Months Ended
	Dec. 31, 2016
Debt Instrument [Line Items]
Annual dividend yield
Minimum [Member]
Debt Instrument [Line Items]
Expected life (years)	1 month 6 days
Risk-free interest rate	0.50%
Expected volatility	67.00%
Maximum [Member]
Debt Instrument [Line Items]
Expected life (years)	5 years
Risk-free interest rate	0.90%
Expected volatility	107.00%

Convertible Senior Notes Paya57

Convertible Senior Notes Payable (Details 3)	12 Months Ended
	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Value	$ 2,510,000
Ending balance
Derivative Liabilities [Member]
Debt Instrument [Line Items]
Value	2,510,000
Adjustment to fair value	(4,094,000)
Additional warrants issued for debt amendment	1,645,000
Modification of conversion feature-debt amendment	1,429,000
Warrant amendment - August 24, 2016	(1,719,000)
Issuance of Convertible Unsecured Notes-September 1, 2016	282,000
Amendment of conversion feature - Convertible Unsecured Notes	(53,000)
Ending balance
Derivative Liabilities [Member] | Embedded Note Conversion Feature [Member]
Debt Instrument [Line Items]
Value	1,213,000
Adjustment to fair value	(2,871,000)
Additional warrants issued for debt amendment
Modification of conversion feature-debt amendment	1,429,000
Warrant amendment - August 24, 2016
Issuance of Convertible Unsecured Notes-September 1, 2016	282,000
Amendment of conversion feature - Convertible Unsecured Notes	(53,000)
Ending balance
Derivative Liabilities [Member] | Warrants Liability [Member]
Debt Instrument [Line Items]
Value	1,297,000
Adjustment to fair value	(1,223,000)
Additional warrants issued for debt amendment	1,645,000
Modification of conversion feature-debt amendment
Warrant amendment - August 24, 2016	(1,719,000)
Issuance of Convertible Unsecured Notes-September 1, 2016
Amendment of conversion feature - Convertible Unsecured Notes
Ending balance

Convertible Senior Notes Paya58

Convertible Senior Notes Payable (Details Textual)	3 Months Ended	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares
Line of Credit Facility [Line Items]
Purchase of warrants | shares	5,358,881	5,358,881
Allocated value of warrants issued with Senior Notes		$ 4,133,000
Allocated value of conversion feature associated with Senior Notes		3,495,000
2016 Senior Notes [Member]
Line of Credit Facility [Line Items]
Original issue discount	$ 930,000	$ 930,000
Convertible price per share | $ / shares	$ 2.50	$ 2.50
Debt discount	$ 8,558,000	$ 8,558,000
Offering costs	$ 479,000	479,000
Placement agent fees		298,000
Legal and professional fees		$ 181,000
Bear interest rate	10.00%	10.00%
Exercise price | $ / shares		$ 2.50
Trading day, Description		(i) the Weighted Average Price (as defined in the Senior Notes) of the Company's common stock for each trading day during a twenty trading day period equals or exceeds $5.00 (as adjusted for any stock dividend, stock split, stock combination, reclassification or similar transaction) and no Equity Conditions Failure (as defined in the Senior Notes) has occurred.
Beneficially own, Description		The Senior Notes also contain a blocker provision that prevents the Company from effecting a conversion in the event that the holder, together with certain affiliated parties, would beneficially own in excess of either 4.99% or 9.99%, with such threshold determined by the holder prior to issuance, of the shares of the Company's common stock outstanding immediately after giving effect to such conversion.
Percentage of conversion amount		115.00%
Debt instrument redemption, Description		The Company may redeem all or any portion of the then outstanding principal and accrued and unpaid interest with respect to such principal, at 100% of such aggregate amount; provided, however, that the aggregate Conversion Amount to be redeemed pursuant to all Senior Notes must be at least $500,000, or such lesser amount as is then outstanding. The portion of the Senior Note(s) to be redeemed shall be redeemed at a price equal to the greater of (i) 110% of the Conversion Amount of the Senior Note being redeems and (ii) the product of (A) the Conversion Amount being redeemed and (B) the quotient determined by dividing (I) the greatest Weighted Average Price (as defined in the Senior Notes) of the shares of the Company's common stock during the period beginning on the date immediately preceding the date of the notice of such redemption by the Company and ending on the date on which the redemption by the Company occurs by (II) the lowest Conversion Price (as defined in the Senior Notes) in effect during such period.
2016 Senior Notes [Member] | Warrants [Member]
Line of Credit Facility [Line Items]
Face amount	$ 9,302,000	$ 9,302,000
Purchase of warrants | shares	3,720,839	3,720,839
Shares price | $ / shares	$ 3	$ 3
Issued warrants term		5 years
Option pricing		$ 6,003,000
Convertible senior secured notes [Member]
Line of Credit Facility [Line Items]
Percentage of conversion amount		115.00%
Debt instrument redemption, Description		Further, at any time from and after January 1, 2018 and provided that the Company has not received either (i) initial deposits for at least eight 2 MW Power Oxidizer units or (ii) firm purchase orders totaling not less than $3,500,000 and initial payment collections of at least $1,600,000, in each case during the period commencing on the issuance date of the 2016 Senior Notes and ending on December 31, 2017, the holder of the Senior Note may require the Company to redeem all or any portion of its Senior Note at a price equal to 100% of the Conversion Amount being redeemed.
Convertible senior secured notes [Member] | 2016 Senior Notes [Member] | Senior notes, Issued [Member]
Line of Credit Facility [Line Items]
Face amount	$ 3,747,000	$ 3,747,000
Original issue discount	375,000	375,000
Cash proceeds from secured note	3,372,000
Convertible senior secured notes [Member] | 2015 Senior Notes [Member] | Senior notes one, Issued [Member]
Line of Credit Facility [Line Items]
Principal amount	5,000,000	5,000,000
Face amount	5,556,000	5,556,000
Original issue discount	$ 556,000	$ 556,000

Convertible Senior Notes Paya59

Convertible Senior Notes Payable (Details Textual 1)	Sep. 01, 2016USD ($)	Aug. 24, 2016USD ($)	Apr. 11, 2016USD ($)	May 07, 2015USD ($)Investors	Apr. 23, 2015USD ($)Investors	Dec. 31, 2016USD ($)$ / sharesshares	Mar. 31, 2016USD ($)	Feb. 02, 2016shares	Dec. 02, 2016USD ($)	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2015USD ($)shares
Convertible Senior Notes Payable (Textual)
Loss on debt extinguishment										$ (262,000)	$ (707,000)
Senior secured promissory notes aggregate principal amount						$ 4,519,000				$ 4,519,000	4,110,000
Warrants excercise price, description		The terms of all warrants that had been previously accounted for as derivative liabilities. The amendments reduced the exercise price of each warrant series to $4.00 per share and removed net cash settlement language, and any price reset provisions had since lapsed.
Warrant exercise price | $ / shares						$ 3.77				$ 3.77
Issuance of warrant to investors | shares						5,358,881				5,358,881
Principal amount											$ 4,110,000
Investor [Member]
Convertible Senior Notes Payable (Textual)
Aggregate principal amount						$ 1,500,000				$ 1,500,000
Secured notes payable, description										Issue to one or more investors.
Secured notes payable term										1 year
December 2015 Equity Offering [Member]
Convertible Senior Notes Payable (Textual)
Warrants to purchase of common stock | shares											312,500
Issuance of warrant to investors | shares											312,500
February 2016 Warrants [Member]
Convertible Senior Notes Payable (Textual)
Issuance of warrant to investors | shares						50,000				50,000
Additional debt discount						$ 148,000				$ 148,000
March 2016 Warrants [Member]
Convertible Senior Notes Payable (Textual)
Issuance of warrant to investors | shares						500,000				500,000
Additional debt discount						$ 1,497,000				$ 1,497,000
Convertible Debt [Member]
Convertible Senior Notes Payable (Textual)
Convertible unsecured notes						1,250,000				1,250,000
Junior notes conversion feature						282,000				282,000
Senior notes conversion feature						757,000				757,000
2015 Senior Notes converted into 2016 Senior Notes [Member]
Convertible Senior Notes Payable (Textual)
Loss on debt extinguishment									$ 262,000
Unamortized debt discount									254,000
Unamortized financing costs									8,000
2015 Senior Notes [Member]
Convertible Senior Notes Payable (Textual)
Loss on debt extinguishment						$ 262,000
Aggregate principal amount				$ 1,900,000	$ 3,100,000
Number of institutional investors | Investors				4	7
Proceeds recieved from debt gross							$ 3,000,000			5,000,000
Transaction expenses										$ 300,000
Notes convert description										Upon issuance of the 2015 Senior Notes, each investor, at its discretion, was entitled to convert up to 50% of the balance outstanding under the 2015 Senior Notes. Upon the execution of the December Amendments (as defined below), however, each investor became entitled to fully convert 100% of the balance outstanding under the 2015 Senior Notes into shares of the Company's common stock. The 2015 Senior Notes permitted the Company to repay the outstanding balance at any time unless the 2015 Senior Notes were in default.
Increased interest rate										18.00%
Notes convertible price										85.00%
Consecutive trading days										15 days
Number of warrants issued for common stock | shares										219,785
Exercise price per share | $ / shares										$ 12.5
Warrants excercise price, description										In August 2016, the Company adjusted the exercise price of such April and May 2015 Warrants to $4.00 per share.
Securities purchase agreement, description										(i) Extended the deadline to March 31, 2016 for the Company's consummation of a firm commitment underwritten public offering registered under the Securities Act and related listing of its common stock on a national securities exchange, (ii) provided for the issuance of additional five-year warrants (the "Additional Warrants"), exercisable for ten shares of the Company's common stock per $1,000 of outstanding principal of the 2015 Senior Notes held by each buyer pursuant to the April 2015 and May 2015 Securities Purchase Agreements, each with an exercise price of $12.50 per share, subject to adjustment as set forth within the Additional Warrants, issuable in tranches triggered by certain Company actions as set forth in the December Amendments and (iii) authorized the Company, prior to January 31, 2016, to issue to one or more investors up to an aggregate of $1,000,000 principal amount of senior secured notes, on the terms and subject to the restrictions set forth in the December Amendments. An initial tranche of Additional Warrants to purchase up to 50,000 shares of the Company's common stock were issued in conjunction with the execution of the 2015 December Amendments (the "2015 December Warrants").
Embedded conversion feature liability, description										The 2015 December Amendments also amended the terms of the 2015 Senior Notes to allow for 100% of the balance outstanding under the 2015 Senior Notes to be converted into shares of the Company's common stock.
Proceeds from secured note										$ 5,000,000
Secured notes payable term										2 years
Warrants exercisable term										5 years
Percentage of conversion feature										100.00%
Fair value of beneficial conversion feature									$ 1,000	$ 609,000
Fair value of additional warrants issued										$ 182,000
Warrants to purchase of common stock | shares								50,000		500,000
Warrant exercise price | $ / shares						$ 5				$ 5
Private offering			$ 3,000,000
Additional warrants excercise price per share		On August 24, 2016, the April and May 2015 Warrants, December 2015 Warrants, February 2016 Warrants and March 2016 Warrants were all amended to (i) reduce the exercise price of such warrants to $4.00 per share and (ii) remove the net cash settlement option which had given rise to derivative accounting. The warrants accounted for as derivative liabilities were marked to market at the $5.00 exercise price immediately prior to the amendment with any change in value recorded to income. The warrants with price adjustment from $12.50 per share to $4.00 per share were not previously accounted for as derivative liabilities. The foregoing warrants were then revalued with an amended exercise price of $4.00 and the difference in fair value resulting from an exercise price reduction of $12.50 per share to $4.00 per share, in the case of the April and May 2015 Warrants, and from $5.00 per share to $4.00 per share, in the case of the December 2015 Warrants, February 2016 Warrants and March 2016 Warrants, was recorded as an additional debt discount of $206,000, which will be amortized over the expected remaining life of the 2015 Senior Notes, as amended and restated.
2015 Senior Notes [Member] | Securities Purchase Agreements [Member]
Convertible Senior Notes Payable (Textual)
Warrants excercise price, description									On December 2, 2016, the 2015 Senior Notes were amended and restated such that they rank pari passu with the 2016 Senior Notes. In addition, on December 2, 2016, the April and May 2015 Warrants, December 2015 Warrants, February 2016 Warrants and March 2016 Warrants were all amended to reduce the exercise price of such warrants to $3.00 per share. The foregoing warrants were then revalued with an amended exercise price of $3.00 and the difference in fair value resulting from an exercise price reduction of $4.00 per share to $3.00 per share was recorded as an additional debt discount of $110,000.
Unsecured notes, Term	1 year
Principal amount	$ 1,500,000
2015 Senior Notes [Member] | December 2015 Warrants [Member]
Convertible Senior Notes Payable (Textual)
Warrant exercise price | $ / shares						5				5
Additional debt discount		$ 206,000
2015 Senior Notes [Member] | February 2016 Warrants [Member]
Convertible Senior Notes Payable (Textual)
Warrant exercise price | $ / shares						$ 5				$ 5
Additional debt discount		206,000				$ 148,000				$ 148,000
2015 Senior Notes [Member] | March 2016 Warrants [Member]
Convertible Senior Notes Payable (Textual)
Additional debt discount		$ 206,000				$ 1,497,000				$ 1,497,000
2015 Senior Notes [Member] | Tranche One [Member]
Convertible Senior Notes Payable (Textual)
Senior secured promissory notes aggregate principal amount											$ 5,000,000
Bear interest rate											12.00%
Notes mature date										Apr. 23, 2017
2015 Senior Notes [Member] | Tranche Two [Member]
Convertible Senior Notes Payable (Textual)
Senior secured promissory notes aggregate principal amount											$ 5,000,000
Bear interest rate											12.00%
Notes mature date										May 7, 2017
Junior Notes [Member]
Convertible Senior Notes Payable (Textual)
Convertible unsecured notes	1,250,000
Junior notes conversion feature	$ 282,000

Convertible Unsecured Notes (De

Convertible Unsecured Notes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Modification of warrants - exercise price change		$ 279,000
Amortization of debt discount and deferred financing fees	3,149,000	2,247,000
Unsecured Debt [Member]
Debt Instrument [Line Items]
Begining Balance	652,000
Additional warrants issued	(305,000)
Modification of warrants - exercise price change	(30,000)
Amortization of debt discount and deferred financing fees	48,000
Ending Balance	554,000	652,000
Less: Current Portion	(554,000)
Long Term Portion
Notes [Member]
Debt Instrument [Line Items]
Begining Balance	1,250,000
Ending Balance	1,250,000	1,250,000
Notes [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Begining Balance	1,250,000,000
Additional warrants issued
Modification of warrants - exercise price change
Amortization of debt discount and deferred financing fees
Ending Balance	1,250,000	1,250,000,000
Less: Current Portion	(1,250,000)
Long Term Portion
Debt Discount [Member]
Debt Instrument [Line Items]
Begining Balance	(553,000)
Ending Balance	(507,000)	(553,000)
Debt Discount [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Begining Balance	(553,000,000)
Additional warrants issued	(305,000)
Modification of warrants - exercise price change	(30,000)
Amortization of debt discount and deferred financing fees	222,000
Ending Balance	(666,000)	(553,000,000)
Less: Current Portion	666,000
Long Term Portion
Offering Costs [Member]
Debt Instrument [Line Items]
Begining Balance	(20,000)
Ending Balance	(18,000)	(20,000)
Offering Costs [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Begining Balance	(45,000,000)
Additional warrants issued
Modification of warrants - exercise price change
Amortization of debt discount and deferred financing fees	15,000
Ending Balance	(30,000)	$ (45,000,000)
Less: Current Portion	30,000
Long Term Portion

Convertible Unsecured Notes (61

Convertible Unsecured Notes (Details 1) - Unsecured Debt [Member]	12 Months Ended
	Dec. 31, 2016
Debt Instrument [Line Items]
Annual dividend yield
Minimum [Member]
Debt Instrument [Line Items]
Expected life (years)	9 months 18 days
Risk-free interest rate	0.008%
Expected volatility	67.00%
Maximum [Member]
Debt Instrument [Line Items]
Expected life (years)	1 year
Risk-free interest rate	0.48%
Expected volatility	90.00%

Convertible Unsecured Notes (62

Convertible Unsecured Notes (Details Textual) - USD ($)	Sep. 01, 2016	Sep. 26, 2016	Dec. 31, 2016
Debt Instrument [Line Items]
Purchase of warrants			250,000
Ownership percentage			50.00%
Warrants valued using the black-scholes option pricing model			$ 271,000
Conversion feature of black-scholes option pricing model		$ 282,000
Securities Purchase Agreement [Member]
Debt Instrument [Line Items]
Warrants exercisable term	5 years
Purchase of warrants	124,999
Exercise price per share	$ 4
Convertible unsecured notes	$ 1,250,000		1,250,000
Transaction expenses and consisting of legal costs	45,000
Net proceeds	$ 1,205,000
Convertible unsecured notes bear interest rate	12.00%
Unsecured notes maturity date	Sep. 1, 2017
Unsecured notes conversion, description	The Convertible Unsecured Notes are subordinate to the Senior Notes described in Note 9. The Convertible Unsecured Notes were initially convertible at the option of the holder into common stock at a conversion price of $4.31 per share and will automatically convert into shares of common stock in the event of a conversion of at least 50% of the then outstanding (i) principal, (ii) accrued and unpaid interest with respect to such principal and (iii) accrued and unpaid late charges, if any, with respect to such principal and interest, under the Senior Notes. In connection with the issuance of the 2016 Senior Notes and amendment and restatement of the 2015 Senior Notes, the conversion price was reduced to $2.50 per share.
Ownership percentage	9.99%
Unpaid interest rate on notes	100.00%
Warrants valued using the black-scholes option pricing model			$ 305,000
Securities Purchase Agreement One [Member]
Debt Instrument [Line Items]
Warrants exercisable term	5 years
Purchase of warrants	62,500
Exercise price per share	$ 4
Gross proceeds from issuance of warrants	$ 3,000,000

Fair Value Measurements and D63

Fair Value Measurements and Disclosures (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Cash and cash equivalents, including restricted cash	$ 1,360,000	$ 2,805,000
Derivative liabilities-warrants		1,297,000
Embedded note conversion features		1,213,000
Level 1 [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Cash and cash equivalents, including restricted cash	1,360,000	2,805,000
Derivative liabilities-warrants
Embedded note conversion features
Level 2 [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Cash and cash equivalents, including restricted cash
Derivative liabilities-warrants
Embedded note conversion features
Level 3 [Member]
Fair Value, Option, Qualitative Disclosures Related to Election [Line Items]
Cash and cash equivalents, including restricted cash
Derivative liabilities-warrants		1,297,000
Embedded note conversion features		$ 1,213,000

Capital Leases Payable (Details

Capital Leases Payable (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Total capital leases	$ 14,000	$ 40,000
Less: current portion	(10,000)	(26,000)
Long-term portion of capital leases	4,000	14,000
October 1, 2018 [Member] | De Lange Landon [Member]
Total capital leases	10,000	13,000
November 16, 2016 [Member] | Dell Computers [Member]
Total capital leases		6,000
December 15, 2016 [Member] | Dell Computers [Member]
Total capital leases		6,000
January 3, 2017 [Member] | Dell Computers [Member]
Total capital leases		5,000
January 3, 2017 One [Member] | Dell Computers [Member]
Total capital leases	$ 4,000	$ 10,000

Capital Leases Payable (Detai65

Capital Leases Payable (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Capital Leases Payable [Abstract]
2,017	$ 10,000
2,018	5,000
Net minimum lease payments	15,000
Less: Amount representing interest and taxes	(1,000)
Present value of net minimum lease payments	14,000
Less: current portion	10,000	$ 26,000
Long-term portion of capital leases	$ 4,000	$ 14,000

Capital Leases Payable (Detai66

Capital Leases Payable (Details Textual)	12 Months Ended
	Dec. 31, 2016USD ($)
Capital Leases Payables (Textual)
Lease expiration date	Dec. 31, 2016
October 1, 2018 [Member] | De Lange Landon [Member]
Capital Leases Payables (Textual)
Lease expiration date	Oct. 1, 2018
Capital lease payable	$ 452
Tangible asset capital lease interest rate	10.00%
November 16, 2016 [Member] | Dell Computers [Member]
Capital Leases Payables (Textual)
Lease expiration date	Nov. 16, 2016
Capital lease payable	$ 592
Tangible asset capital lease interest rate	15.09%
December 15, 2016 [Member] | Dell Computers [Member]
Capital Leases Payables (Textual)
Lease expiration date	Dec. 15, 2016
Capital lease payable	$ 590
Tangible asset capital lease interest rate	15.09%
January 3, 2017 [Member] | Dell Computers [Member]
Capital Leases Payables (Textual)
Lease expiration date	Jan. 3, 2017
Capital lease payable	$ 390
Tangible asset capital lease interest rate	15.09%
January 3, 2017 One [Member] | Dell Computers [Member]
Capital Leases Payables (Textual)
Lease expiration date	Jan. 3, 2017
Capital lease payable	$ 394
Tangible asset capital lease interest rate	15.09%

Equity (Details)

Equity (Details) $ in Millions	Apr. 11, 2016USD ($)shares
Equity (Textual)
Proceeds from issuance of private placement | $	$ 3
Aggregate of common stock shares | shares	696,056

Stock Options and Warrants (Det

Stock Options and Warrants (Details)	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
Stock Options and Warrants [Abstract]
Shares Balance, December 31, 2015 | shares	308,464
Forfeited during 2016 | shares	(40,914)
Granted during 2016 | shares	6,000
Shares Balance, December 31, 2016 | shares	273,550
Exercisable on December 31, 2016 | shares	210,558
Weighted- Average Excerise Price, Balance, December 31, 2015 | $ / shares	$ 13.61
Weighted- Average Excerise Price, Forfeited during 2016 | $ / shares	11.69
Weighted- Average Exercise Price, Granted during 2016 | $ / shares	4.31
Weighted- Average Excerise Price, Balance, December 31, 2016 | $ / shares	13.70
Weighted- Average Excerise Price, Exercisable on December 31, 2016 | $ / shares	$ 15.02
Options Outstanding, Weighted-Average Remaining Contractual Life	6 years 26 days
Weighted- Average Remaining Contractual Life, Granted during 2016	9 years 9 months
Options Outstanding, Weighted- Average Remaining Contractual Life, December 31, 2016	5 years 7 days
Weighted- Average Remaining Contractual Life, Exercisable	4 years 11 months 9 days
Aggregate Intrinsic Value, Balance, December 31, 2015 | $
Aggregate Intrinsic Value, Balance, December 31, 2016 | $
Aggregate Intrinsic Value, Granted during 2016 | $
Aggregate Intrinsic Value, Exercisable on December 31, 2016 | $

Stock Options and Warrants (D69

Stock Options and Warrants (Details 1) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of Shares	273,550	308,464
Options Outstanding, Weighted-Average Remaining Contractual Life	6 years 26 days
Options Outstanding, Weighted-Average Exercise Price	$ 13.70	$ 13.61
Options Exercisable, Number of Shares	210,558
Options Exercisable, Weighted-Average Exercise Price	$ 15.02
$0 - $10.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Limit	0
Exercise Price, Upper Limit	$ 10
Options Outstanding, Number of Shares	99,840
Options Outstanding, Weighted-Average Remaining Contractual Life	7 years 15 days
Options Outstanding, Weighted-Average Exercise Price	$ 7.46
Options Exercisable, Number of Shares	59,196
Options Exercisable, Weighted-Average Exercise Price	$ 7.46
$10.01 - $15.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Limit	10.01
Exercise Price, Upper Limit	$ 15
Options Outstanding, Number of Shares	31,100
Options Outstanding, Weighted-Average Remaining Contractual Life	7 years 1 month 28 days
Options Outstanding, Weighted-Average Exercise Price	$ 12.50
Options Exercisable, Number of Shares	20,163
Options Exercisable, Weighted-Average Exercise Price	$ 12.50
$15.01 - $20.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Limit	15.01
Exercise Price, Upper Limit	$ 20
Options Outstanding, Number of Shares	122,766
Options Outstanding, Weighted-Average Remaining Contractual Life	3 years 6 months
Options Outstanding, Weighted-Average Exercise Price	$ 17.50
Options Exercisable, Number of Shares	112,187
Options Exercisable, Weighted-Average Exercise Price	$ 17.50
$20.01 - $25.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Limit	20.01
Exercise Price, Upper Limit	$ 25
Options Outstanding, Number of Shares	19,844
Options Outstanding, Weighted-Average Remaining Contractual Life	4 years 3 months 18 days
Options Outstanding, Weighted-Average Exercise Price	$ 23.40
Options Exercisable, Number of Shares	19,012
Options Exercisable, Weighted-Average Exercise Price	$ 23.40

Stock Options and Warrants (D70

Stock Options and Warrants (Details 2) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	$ 1,327,000	$ 1,485,000
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	535,000	583,000
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	$ 792,000	$ 902,000

Stock Options and Warrants (D71

Stock Options and Warrants (Details 3)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Balance outstanding at December 31, 2016, Exercise price per share	$ 3.77
Warrant [Member]
Balance outstanding at December 31, 2015 | shares	775,543
Issued for Convertible Unsecured Notes | shares	312,499
Issued for 2015 Senior Notes Amendments | shares	550,000
Issued for 2016 Senior Notes | shares	3,720,839
Balance outstanding at December 31, 2016 | shares	5,358,881
Balance outstanding at December 31, 2015, Exercise price per share	$ 12.04
Issued for Convertible Unsecured Notes, Exercise price per share	3
Issued for 2015 Senior Notes Amendments, Exercise price per share	3
Issued for 2016 Senior Notes, Exercise price per share	3
Balance outstanding at December 31, 2016, Exercise price per share	$ 3.77

Stock Options and Warrants (D72

Stock Options and Warrants (Details 4)	12 Months Ended
	Dec. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants | shares	5,358,881
Warrant exercise price	$ 3.77
Warrants outstanding and exercisable at December 31, 2016	$ 3.77
Services Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Jul13
Expiry Date	Jul18
Number of Warrants | shares	9,494
Warrant exercise price	$ 37.50
2013 Services Warrants- August [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Aug13
Expiry Date	Aug18
Number of Warrants | shares	729
Warrant exercise price	$ 37.50
2013 Services Warrants - November [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Nov13
Expiry Date	Nov18
Number of Warrants | shares	2,400
Warrant exercise price	$ 50
2014 Services Warrants - April (1) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Apr14	[1]
Expiry Date	Apr19	[1]
Number of Warrants | shares	13,657	[1]
Warrant exercise price	$ 39	[1]
2014 Services Warrants-September(2) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Aug14	[2]
Expiry Date	Aug19	[2]
Number of Warrants | shares	16,000	[2]
Warrant exercise price	$ 25	[3]
2014 PIPE Warrants-September(3) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Sept14	[4]
Expiry Date	Sept18	[4]
Number of Warrants | shares	26,500	[4]
Warrant exercise price	$ 25	[4]
2014 Services Warrants-November(4) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Nov14	[5]
Expiry Date	Nov18	[5]
Number of Warrants | shares	6,500	[5]
Warrant exercise price	$ 25	[6]
2014 Settlement Warrants-December(5) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Dec14	[7]
Expiry Date	Dec19	[7]
Number of Warrants | shares	38,464	[7]
Warrant exercise price	$ 25	[7]
2015 Senior Notes Warrants(6) (14) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Apr/May-15	[8],[9]
Expiry Date	Apr/May-20	[8],[9]
Number of Warrants | shares	219,785	[8],[9]
Warrant exercise price	$ 3	[8],[9]
2015 Services Warrants-May(7) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	May15	[10]
Expiry Date	May20	[10]
Number of Warrants | shares	5,514	[10]
Warrant exercise price	$ 12.50	[10]
2015 LOC Guarantee Warrants - November (8) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Nov15	[11]
Expiry Date	Nov20	[11]
Number of Warrants | shares	74,000	[11]
Warrant exercise price	$ 15	[11]
2015 Debt Amendment Warrants - December (9), (15) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Dec15	[12],[13]
Expiry Date	Dec20	[12],[13]
Number of Warrants | shares	50,000	[12],[13]
Warrant exercise price	$ 3	[9],[12]
2015 PIPE Warrants - December (10), (15) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Dec15	[13],[14]
Expiry Date	Dec20	[13],[14]
Number of Warrants | shares	312,500	[13],[14]
Warrant exercise price	$ 4	[9],[14]
2016 Debt Amendment Warrants - February (11), (15) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Feb16	[13],[15]
Expiry Date	Feb21	[13],[15]
Number of Warrants | shares	50,000	[13],[15]
Warrant exercise price	$ 3	[9],[15]
2016 Debt Amendment Warrants - March (12), (15) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Mar16	[13],[16]
Expiry Date	Mar21	[13],[16]
Number of Warrants | shares	500,000	[13],[16]
Warrant exercise price	$ 3	[9],[16]
2016 Unsecured Debt Warrants (13) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Sep-Dec-16	[17]
Expiry Date	Sep-Dec-21	[17]
Number of Warrants | shares	312,999	[17]
Warrant exercise price	$ 3	[17]
2016 Senior Notes Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	Dec16
Expiry Date	Dec21
Number of Warrants | shares	3,720,839
Warrant exercise price	$ 3
[1]	The 2014 Services Warrants April were issued for fees incurred in conjunction with the issuance of convertible notes in 2014. The warrants were valued on the issuance date at $11.50 per share in conjunction with the valuation approach used for the initial valuation of the warrants issued in connection with the convertible notes issued in 2014.
[2]	The 2014 Services Warrants-September were issued to a consultant in exchange for advisory services with no readily available fair value. The warrants were originally issued at an exercise price of $39.00 per share and had a one-time price reset provision to the exercise price of the warrants issued to investors in the convertible notes offering in April 2014 if the exercise price of such convertible notes warrants changed prior to September 30, 2014. On September 22, 2014, the exercise price was changed to $25.00 per share. There are no further exercise price changes for this warrant series. The warrants were valued using the Black-Scholes option pricing model at $131,000 on the issuance date with an additional $6,000 recorded to expense on September 22, 2014 to reflect the change in fair value resulting from the exercise price change.
[3]	The 2014 Services Warrants September were issued to a consultant in exchange for advisory services with no readily available fair value. The warrants were originally issued at $39.00 per share and had a one-time price reset provision to the exercise price of the warrants issued to investors in the convertible notes offering in April 2014 if the exercise price of such convertible notes warrants changed prior to September 30, 2014. On September 22, 2014, the exercise price was changed to $25.00 per share. There are no further exercise price changes for this warrant series. The warrants were valued using the Black-Scholes option pricing model at $131,000 on the issuance date with an additional $6,000 recorded to expense on September 22, 2014 to reflect the change in fair value resulting from the exercise price change.
[4]	On September 22, 2014, the Company issued warrants to purchase up to 26,500 shares of common stock with an exercise price of $25.00 per share in conjunction with placement agent services for the Company's September 2014 private equity placement. The warrants were valued using the Black-Scholes option pricing model at $296,000 on the issuance date.
[5]	On November 26, 2014, the Company issued warrants to purchase up to 6,500 shares of common stock with an exercise price of $25.00 per share for compensation for investor relations services provided. The warrants were valued using the Black-Scholes option pricing model at $43,000 on the issuance date.
[6]	On November 26, 2014, the Company issued 6,500 warrants with an exercise price of $25.00 per share for compensation for investor relations services provided. The warrants were valued using the Black-Scholes option pricing model at $43,000 on the issuance date.
[7]	On December 1, 2014, the Company issued warrants to purchase up to 19,232 shares of common stock with an exercise price of $39.00 per share and on December 15, 2014 issued warrants to purchase up to 19,232 shares of common stock with an exercise price of $25.00 per share to settle potential legal disputes resulting from claims made by the investors in the November 2013 private equity placement. The warrants issued on December 1, 2014 were issued concurrent with the issuance of 8,462 shares of the Company's common stock in partial settlement of the potential legal disputes arising from claims by two investors. The Company settled all remaining potential legal disputes with all of the remaining investors in the November 2013 private placement on December 15, 2014 by issuing the second tranche of warrants and setting the exercise price of each warrant series issued at $25.00 with no further reset provisions. The combined issuance of the warrants and expense resulting from any price changes were valued using the Black-Scholes option pricing model at $246,000 and expensed to general and administrative expense.
[8]	On April 23, 2015, the Company issued warrants to purchase up to 136,267 shares of common stock and on May 7, 2015, the Company issued warrants to purchase up to 83,518 shares of common stock, each with an exercise price of $12.50 per share in conjunction with the 2015 Senior Notes described in Note 9. The warrants were valued using the Black-Scholes option pricing model at $2,139,000 on the issuance date. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share.
[9]	Warrant exercise price was reduced from $12.50 to $4.00 per share on August 24, 2016 and further reduced to $3.00 per share concurrent with the issuance of the 2016 Senior Notes.
[10]	On May 1, 2015, the Company issued warrants to purchase up to 5,514 shares of common stock with an exercise price of $12.50 per share in conjunction with placement agent services for the Company's May 2015 private equity placement. The warrants were valued using the Black-Scholes option pricing model at $56,000 on the issuance date.
[11]	On November 2, 2015, the Company issued warrants to purchase up to 74,000 shares of common stock with an exercise price of $15.00 per share in conjunction with the Letter of Credit described in Note 17. The warrants were valued using the Black-Scholes option pricing model at $246,000 on the issuance date. The warrants are exercisable beginning on November 1, 2016.
[12]	On December 30, 2015, the Company issued warrants to purchase up to 50,000 shares of common stock with an initial exercise price of $12.50 per share in conjunction with the amendment of the 2015 Senior Notes in December 2015, as described in Note 9 above. On March 31, 2016, concurrent with the issuance of the March 2016 Warrants, the exercise price was reduced to $5.00 per share. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share.
[13]	Warrant exercise price was reduced from $5.00 to $4.00 per share on August 24, 2016 and further reduced to $3.00 per share concurrent with the issuance of the 2016 Senior Notes. On August 24, 2016, the warrant agreement was amended to remove all provisions that had previously required derivative liability accounting treatment.
[14]	On December 31, 2015, the Company issued warrants to purchase up to 312,500 shares of common stock with an initial exercise price of $5.00 per share in conjunction with the December private equity placement (the "December PIPE"). The warrants initially provided that if, prior to the earlier of June 30, 2016 or thirty days after the date on which the December PIPE shares and underlying warrants are registered for resale, the Company issued common share derivative securities at a price per share less than $5.00 per share, the Company was obligated to reduce the exercise price of the December PIPE warrants to a price per share equal to the newly issued shares or derivative common stock securities. This price protection clause expired on June 30, 2016. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes the exercise price of the warrants was further reduced to $3.00 per share.
[15]	On February 2, 2016, the Company issued warrants to purchase up to 50,000 shares of common stock with an initial exercise price of $12.50 per share in conjunction with the amendment of the 2015 Senior Notes in December 2015, as described in Note 9 above. The warrants were valued using the Black-Scholes option pricing model at $148,000 on the issuance date and were recorded as a derivative liability and additional debt discount. The warrants provided that, in the event that the Company issued additional common stock derivative securities at a price per share less than the exercise price, the Company was obligated to reduce the exercise price of the February 2016 Warrants to a price per share equal to the newly issued shares or derivative common stock securities. On March 31, 2016, concurrent with the issuance of the additional debt amendment warrants, the exercise price was reduced to $5.00 per share. This price protection clause expired on June 30, 2016. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share.
[16]	On March 31, 2016, the Company issued warrants to purchase up to 500,000 shares of common stock with an initial exercise price of $5.00 per share in conjunction with the amendment of the 2015 Senior Notes in December 2015, as described in Note 9 above. The warrants were valued using the Black-Scholes option pricing model at $1,497,000 on the issuance date and were recorded as a derivative liability and additional debt discount. The warrants provided that, in the event that the Company issued additional common stock derivative securities at a price per share less than the exercise price, the Company was obligated to reduce the exercise price of the March 2016 Warrants to a price per share equal to the newly issued shares or derivative common stock securities. This price protection clause expired on June 30, 2016. On August 24, 2016, the exercise price of the warrants was reduced to $4.00 per share. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants was further reduced to $3.00 per share.
[17]	On September 1, 2016, the Company issued warrants to purchase up to 124,999 shares of common stock with an initial exercise price of $4.00 per share in conjunction with Unsecured Convertible Notes as described in Note 9 above. The warrants were valued using the Black-Scholes option pricing model at $271,000 on the issuance date and were recorded as additional debt discount. Between November 1, 2016 and December 31, 2016, the Company issued additional warrants to purchase up to 187,500 shares of common stock, as described above. The additional warrants were valued using the Black-Scholes option pricing model at $305,000 and were recorded as additional debt discount. Concurrent with the issuance of the 2016 Senior Notes, the exercise price of the warrants issued on November 1, 2016 was reduced to $3.00 per share. The warrants issued on December 1, 2016 and December 31, 2016 were issued with an initial exercise price of $4.00 per share.

Stock Options and Warrants (D73

Stock Options and Warrants (Details Textual) - USD ($)		Dec. 01, 2016	Nov. 23, 2016	Nov. 01, 2016	Sep. 01, 2016	Aug. 24, 2016	Apr. 11, 2016	Dec. 31, 2015	Dec. 30, 2015	Nov. 02, 2015	May 07, 2015	Apr. 23, 2015	Dec. 15, 2014	Dec. 01, 2014	Dec. 31, 2016	Mar. 31, 2016	Feb. 02, 2016	Nov. 26, 2014	Sep. 22, 2014	Sep. 30, 2015	Dec. 02, 2016	Dec. 31, 2016	Dec. 31, 2015	Aug. 22, 2016	Sep. 03, 2015	Jul. 15, 2015	Jul. 01, 2013
Equity Stock Options and Warrants (textual)
Common stock, shares authorized								200,000,000							200,000,000							200,000,000	200,000,000		200,000,000
Remaining weighted-average vesting period																						9 months 18 days
Description of granted options vesting right																						The remaining weighted-average vesting periods of 0.4 years for outstanding grants was $0.7 million.
Stock-based compensation																						$ 1,327,000	$ 1,485,000
Warrants issued														8,462			50,000
Warrants valued using the black-scholes option pricing model																						$ 271,000
Options granted contract term																						6 years 26 days
Proceeds from issuance of private placement							$ 3,000,000
Aggregate of common stock shares							696,056
Reclassification of warrants previously recorded as derivative liabilities to paid in capital																						$ 1,719,000
Debt discount recorded for amendments of warrants																						$ 236,000
Options outsatnding								308,464							273,550							273,550	308,464
Options exercisable, number of shares															210,558							210,558
Outstanding warrants exercisable															5,358,881							5,358,881
Weighted average exercise price															$ 15.02							$ 15.02
Stock Option [Member]
Equity Stock Options and Warrants (textual)
Description of granted options vesting right																						The options granted have a contract term ranging between three and ten years. Options granted typically vest over a four year period, with 25% vesting after one year and the remainder ratably over the remaining three years.
Options vesting period																						4 years
Options vesting percentage																						25.00%
2014 Services Warrants - April [Member]
Equity Stock Options and Warrants (textual)
Exercise price per share																						$ 11.50
Outstanding warrants exercisable	[1]														13,657							13,657
2014 Convertible Notes Warrants [Member]
Equity Stock Options and Warrants (textual)
Outstanding warrants exercisable	[2]														16,000							16,000
2014 Services Warrants - September [Member]
Equity Stock Options and Warrants (textual)
Exercise price per share																						$ 39
Outstanding warrants exercisable	[3]														26,500							26,500
2013 Equity Incentive Plan [Member]
Equity Stock Options and Warrants (textual)
Maximum number of common shares authorized to purchase																											420,000
Options outsatnding															267,550							267,550
Options exercisable, number of shares															210,558							210,558
2015 Equity Incentive Award Plan [Member]
Equity Stock Options and Warrants (textual)
Maximum number of common shares authorized to purchase															594,000							594,000		600,000
Common stock, shares authorized																										300,000
Term of stock option and stock appreciation right																						The maximum term of each stock option and stock appreciation right (SAR) is 10 years.
Aggregate of common stock shares															6,000							6,000
Options outsatnding															6,000							6,000
Options exercisable, number of shares
Minimum [Member]
Equity Stock Options and Warrants (textual)
Options granted contract term																						3 years
Maximum [Member]
Equity Stock Options and Warrants (textual)
Options granted contract term																						10 years
Warrants [Member]
Equity Stock Options and Warrants (textual)
Warrants issued											5,514
Exercise price per share											$ 12.50										$ 3
Warrants valued using the black-scholes option pricing model											$ 56,000
Reduction in warrants exercise price																					3
Warrants [Member] | Minimum [Member]
Equity Stock Options and Warrants (textual)
Exercise price per share						$ 4
Reduction in warrants exercise price						4
Warrants [Member] | Maximum [Member]
Equity Stock Options and Warrants (textual)
Exercise price per share						12.50
Reduction in warrants exercise price						5
Warrant 1 [Member]
Equity Stock Options and Warrants (textual)
Weighted average remaining life of warrants																						4 years 7 months 21 days
Warrants issued		62,500		62,500	124,999			312,500	50,000	74,000	83,518	136,267	19,232	19,232	250,000	500,000	50,000	6,500				62,500
Warrant issued value																		$ 43,000	$ 296,000
Exercise price per share					$ 4	4		$ 5	$ 12.50	$ 15	$ 12.50	$ 12.50	$ 25	$ 39		$ 5	$ 12.50	$ 25	$ 25
Warrants valued using the black-scholes option pricing model					$ 271,000					$ 246,000	$ 2,139,000	$ 2,139,000		$ 246,000		$ 1,497,000	$ 148,000
Reduction in warrants exercise price			$ 3			$ 4										$ 5
Warrants outstanding																$ 100
Weighted average exercise price															$ 3.77							$ 3.77
Convertible Unsecured Notes Warrant [Member] | 2014 Services Warrants - September [Member]
Equity Stock Options and Warrants (textual)
Stock-based compensation																			$ 6,000
Warrant issued value																			$ 131,000
Exercise price per share																			$ 25
Junior Notes Warrants [Member]
Equity Stock Options and Warrants (textual)
Warrants issued															187,500
Exercise price per share		$ 4		$ 4	$ 4																	$ 3
Reduction in warrants exercise price																					$ 3
Reclassification of warrants previously recorded as derivative liabilities to paid in capital																						$ 30,000
Warrant term															5 years
[1]	The 2014 Services Warrants April were issued for fees incurred in conjunction with the issuance of convertible notes in 2014. The warrants were valued on the issuance date at $11.50 per share in conjunction with the valuation approach used for the initial valuation of the warrants issued in connection with the convertible notes issued in 2014.
[2]	The 2014 Services Warrants-September were issued to a consultant in exchange for advisory services with no readily available fair value. The warrants were originally issued at an exercise price of $39.00 per share and had a one-time price reset provision to the exercise price of the warrants issued to investors in the convertible notes offering in April 2014 if the exercise price of such convertible notes warrants changed prior to September 30, 2014. On September 22, 2014, the exercise price was changed to $25.00 per share. There are no further exercise price changes for this warrant series. The warrants were valued using the Black-Scholes option pricing model at $131,000 on the issuance date with an additional $6,000 recorded to expense on September 22, 2014 to reflect the change in fair value resulting from the exercise price change.
[3]	On September 22, 2014, the Company issued warrants to purchase up to 26,500 shares of common stock with an exercise price of $25.00 per share in conjunction with placement agent services for the Company's September 2014 private equity placement. The warrants were valued using the Black-Scholes option pricing model at $296,000 on the issuance date.

Income Taxes (Details)

Income Taxes (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Current income tax expense:
Federal
State	3,000	1,000
Total	3,000	1,000
Deferred income tax expense:
Federal
State
Total
Provision for income taxes	$ 3,000

Income Taxes (Details 1)

Income Taxes (Details 1) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Deferred tax assets:
Net operating loss carry-forward	$ 17,057,000	$ 13,070,000
Valuation allowance	(17,057,000)	(13,070,000)
Net deferred tax assets

Income Taxes (Details Textual)

Income Taxes (Details Textual) $ in Millions	12 Months Ended
	Dec. 31, 2016USD ($)
Income Tax (Textual)
Effective tax rate	0.00%
Valuation allowance	$ 4
Operating loss carryforwards, federal	27.4
Operating loss carryforwards, state	$ 26.9
Expire period of net operating loss carry-forwards	Expire through 2032.
Ownership percentage	50.00%

Related Party Transactions (Det

Related Party Transactions (Details)	12 Months Ended
	Dec. 31, 2016USD ($)shares
Director [Member] | Stephen Markscheid [Member]
Related Party Transaction [Line Items]
Principal Amount of Notes Purchased in December 2016 Financing	$ 20,000
Number of Shares Underlying Warrants Purchase in December 2016 Financing | shares	8,000
Aggregate Purchase Price	$ 18,000
Director and Chief Executive Officer [Member] | Alain J. Castro [Member]
Related Party Transaction [Line Items]
Principal Amount of Notes Purchased in December 2016 Financing	$ 28,000
Number of Shares Underlying Warrants Purchase in December 2016 Financing | shares	11,200
Aggregate Purchase Price	$ 25,200

Related Party Transactions (D78

Related Party Transactions (Details Textual) $ / shares in Units, $ in Millions	1 Months Ended
	Dec. 31, 2016USD ($)AccreditedInvestors$ / sharesshares
Related Party Transactions (Textual)
Warrant exercise price | $ / shares	$ 3.77
Convertible Senior Secured Promissory Notes [Member]
Related Party Transactions (Textual)
Number of accredited investors | AccreditedInvestors	21
Aggregate principal amount | $	$ 3.7
Warrant term	5 years
Warrants to purchase an aggregate shares of common stock | shares	1,498,622
Warrant exercise price | $ / shares	$ 3
Percentage of original issue discount	10.00%
Placement agent fees | $	$ 3

Commitments and Contingencies (

Commitments and Contingencies (Details)	Apr. 01, 2017ft²	Apr. 30, 2017	Mar. 31, 2017USD ($)	Dec. 31, 2016USD ($)ft²
Commitments and Contingencies (Textual)
Area of lease property | ft²				32,649
Operating leases monthly rent expense				$ 26,825
Lease expiration date				Dec. 31, 2016
Extension of lease expiration date				Mar. 31, 2017
Lease agreement, Description				The lease expired on January 1, 2015 and reverted to a month-to-month lease with a monthly payment of $7,780.
January through March 2017 [Member]
Commitments and Contingencies (Textual)
Rent expense net of sublease income				$ 10,168
Subsequent Event [Member]
Commitments and Contingencies (Textual)
Area of lease property | ft²	4,960
Operating leases monthly rent expense			$ 15,000
Lease expiration date	Mar. 31, 2020
Lease agreement, Description	Annual escalations on April 1, 2018 to $10,473 per month and on April 1, 2019 to $10,787 per month for the Research Drive property
Remaining minimum lease payments			$ 422,000
Letter of credit, Description		We and Dresser-Rand agreed to modify the requirements for our existing backstop security. As modified, we are required to maintain a $500,000 backstop security, reduced from $2.1 million, and the backstop security was extended from June 2017 to March 31, 2018.
Standby Letter of Credit [Member]
Commitments and Contingencies (Textual)
Lease expiration date				Jun. 30, 2017
Lease agreement, Description				(a) replacement of the Letter of Credit with an alternative BSS in favor of Dresser-Rand, (b) Dresser-Rand eliminating the BSS requirement under the CLA, or (c) the last day of the twenty-fourth calendar month following the commencement of the Term. In consideration of the investor's support commitment, the Company paid the investor a one-time fee equal to 4% of the amount of the Letter of Credit and is obligated to pay a monthly fee equal to 1% of the amount of the Letter of Credit for the first twelve months. If the Support Agreement has not terminated after the initial twelve months, the Company will pay another one-time fee equal to 4% of the amount of the Letter of Credit, and a monthly fee equal to 2% of the amount of the Letter of Credit for up to another twelve months.
Secured performance fees				$ 2,100,000
Line of credit				$ 2,100,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	1 Months Ended
	Apr. 30, 2017	Dec. 31, 2016	Dec. 31, 2015
Subsequent Events [Textual]
Accrued claims		$ 124,000
Subsequent Events [Member]
Subsequent Events [Textual]
Future license payments	$ 1,760,000
Credit of license payments	1,200,000
Additional discount of license payments	$ 560,000
Letter of credit, Description	We and Dresser-Rand agreed to modify the requirements for our existing backstop security. As modified, we are required to maintain a $500,000 backstop security, reduced from $2.1 million, and the backstop security was extended from June 2017 to March 31, 2018.
Subsequent Events [Member] | Dresser-Rand [Member]
Subsequent Events [Textual]
Advance payments on license fees	$ 1,200,000