Ener-Core (ENCR) 10-Q18 Aug 172017 Q2 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2017	Aug. 14, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	Ener-Core, Inc.
Entity Central Index Key	1,495,536
Trading Symbol	ENCR
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,017
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		4,063,660

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 121,000	$ 1,310,000
Restricted cash		50,000
Accounts receivable	216,000	87,000
Inventory	3,065,000	2,764,000
Prepaid expenses and other current assets	189,000	302,000
Total current assets	3,591,000	4,513,000
Property and equipment, net	2,830,000	3,247,000
Intangibles, net	17,000	20,000
Deposits and other long-term assets	44,000	28,000
Total assets	6,482,000	7,808,000
Current liabilities:
Accounts payable	1,783,000	1,665,000
Accrued expenses	766,000	573,000
Deferred revenues and customer advances	5,177,000	3,876,000
Accrued contract loss	760,000	724,000
Convertible unsecured notes payable, net of discounts	1,055,000	554,000
Capital leases payable-short term	15,000	10,000
Total current liabilities	9,556,000	7,402,000
Long term liabilities:
Convertible secured notes payable, net of discounts	2,754,000	630,000
Capital lease payable	18,000	4,000
Total liabilities	12,328,000	8,036,000
Stockholders' deficit:
Preferred stock, $0.0001 par value. Authorized 50,000,000 shares; no shares issued and outstanding at June 30, 2017 and December 31, 2016
Common stock, $0.0001 par value. Authorized 200,000,000 shares; 4,063,660 and 3,829,660 shares issued and outstanding at June 30, 2017 and December 31, 2016, respectively
Additional paid-in capital	41,786,000	40,944,000
Accumulated deficit	(47,632,000)	(41,172,000)
Total stockholders' (deficit)	(5,846,000)	(228,000)
Total liabilities and stockholders' deficit	$ 6,482,000	$ 7,808,000

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
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	4,063,660	3,829,660
Common stock, shares outstanding	4,063,660	3,829,660

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Statement [Abstract]
Revenues
Cost of goods sold:
Gross profit
Operating expenses:
Selling, general, and administrative	1,004,000	1,051,000	2,035,000	2,318,000
Research and development	600,000	755,000	1,183,000	1,698,000
Total operating expenses	1,604,000	1,806,000	3,218,000	4,016,000
Operating loss	(1,604,000)	(1,806,000)	(3,218,000)	(4,016,000)
Other income (expenses):
Interest expense	(117,000)	(272,000)	(921,000)	(739,000)
Amortization of debt discount	(1,365,000)	(825,000)	(2,132,000)	(1,400,000)
Loss on disposition of assets	(124,000)		(137,000)
Loss on debt extinguishment			(10,000)
Loss on modification of convertible debt			(43,000)	(1,429,000)
Gain (loss) on valuation of derivative liabilities		719,000		1,554,000
Total other income (expenses), net	(1,606,000)	(378,000)	(3,243,000)	(2,014,000)
Loss before provision for income taxes	(3,210,000)	(2,184,000)	(6,461,000)	(6,030,000)
Provision for income taxes		1,000		3,000
Net loss	$ (3,210,000)	$ (2,185,000)	$ (6,461,000)	$ (6,033,000)
Loss per share-basic and diluted	$ (0.79)	$ (0.59)	$ (1.61)	$ (1.84)
Weighted average common shares-basic and diluted	4,063,660	3,708,782	4,007,953	3,400,711

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net loss	$ (6,461,000)	$ (6,033,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	252,000	266,000
Stock-based compensation	653,000	727,000
(Gain) on revaluation of derivative liabilities		(1,554,000)
Amortization of debt discount and deferred financing fees	2,772,000	1,656,000
Expense related to modification of convertible debt		1,429,000
Loss on debt conversions	53,000
Loss on asset disposal	152,000
Changes in assets and liabilities:
Restricted cash	50,000
Accounts and other receivables	(99,000)
Prepaid expenses and other current assets	111,000	(197,000)
Inventory	(243,000)	(1,023,000)
Deferred revenues, net	1,301,000	123,000
Deposits	5,000
Accounts payable and other current liabilities	204,000	613,000
Cash used in operating activities	(1,250,000)	(3,993,000)
Cash flows from investing activities:
Purchases of property and equipment		(933,000)
Proceeds from sale of assets	67,000
Net cash provided by (used in) investing activities	67,000	(933,000)
Cash flows from financing activities:
Proceeds from issuance of common stock, net		2,967,000
Repayment of capital leases payable	(6,000)	(13,000)
Cash (used in) provided by financing activities	(6,000)	2,954,000
Net decrease in cash and cash equivalents	(1,189,000)	(1,972,000)
Cash and cash equivalents at beginning of period	1,310,000	2,605,000
Cash and cash equivalents at end of period	121,000	633,000
Cash paid during the period for:
Income taxes
Interest	75,000	428,000
Supplemental disclosure of non-cash activities:
Capital lease for purchase of equipment	25,000
Debt discount and derivative liabilities recorded upon issuance of warrants
Debt discount and derivative liabilities recorded for amendments of notes		1,497,000
Conversion of senior convertible notes into common shares
Debt discount recorded upon issuance of warrants		$ 148,000

Organization

Organization	6 Months Ended
Organization	Jun. 30, 2017
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, manufacture and have commercially deployed products based on proprietary technologies that generate industrial levels of usable heat in a pressure vessel using a wide variety of organic gases as fuel for an oxidation reaction. Our technology allows for the use of gases that, historically, were unusable as fuels for traditional industrial gas to energy conversion systems, such as combustion chambers, and that typically required costly pollution abatement equipment in order for industries to reduce the pollutant gas emissions and therefore to comply with increasingly stringent air pollution standards. Our technology facilitates a high-temperature oxidation reaction for a variety of organic gases which in turn allows our pressure vessels to extract heat energy from organic gases, including many “waste” gases considered to be air pollution by many industries. We refer to our technology as “Power Oxidation,” and refer to our products as “Power Oxidizers” or “Power Oxidation Vessels.” We develop applications for our technology by integrating our Power Oxidizers with traditional gas-fired industrial equipment (such as boilers, dryers, ovens, and chillers) that require steady and consistent heat sources. In our first deployed applications, our technology serves as a low-emissions alternative for combustion chambers used with gas-fired electric turbines. Our Power Oxidizers produce a steady heat source that can be used to (i) generate electricity by coupling our technology with a variety of modified gas turbines, (ii) produce steam by coupling our technology with a variety of modified steam boilers, or (iii) provide on-site heat at industrial facilities through heat exchanger applications. Our proprietary and patented Power Oxidation technology is designed to create greater industrial efficiencies by providing the opportunity to convert low-quality organic waste gases generated from industrial processes into usable on-site energy, thereby decreasing both operating costs and significantly reducing environmentally harmful gaseous emissions. We design, develop, license, manufacture and market our Power Oxidizers, which, when bundled with an electricity generating turbine in the 250 kilowatt, or kW, and 2 megawatt, or MW, sizes, are called Powerstations. We currently partner and are pursuing partnerships with large established manufacturers to integrate our Power Oxidizer with their gas turbines, with the goal to open substantial new opportunities for our partners to market these modified gas turbines to industries for which traditional power generation technologies previously were not technically feasible. We currently manufacture our Powerstations in the 250 kW size and manufactured the Power Oxidizer for the 2 MW size for the initial two units sold. Beginning in 2017, pursuant to the CMLA (as defined below), our 2 MW partner, Dresser-Rand a.s., a subsidiary of Dresser-Rand Group Inc., a Siemens company, or Dresser-Rand, will manufacture the 2 MW Power Oxidizers under a manufacturing license and will pay us a non-refundable license fee for each unit manufactured by Dresser-Rand. On November 14, 2014, we entered into a commercial license agreement (“CLA”) with Dresser-Rand, pursuant to which we agreed to jointly develop a Powerstation that consisted of our Power Oxidizer integrated with a Dresser-Rand KG2 turbine rated up to 2 MW of power output. The CLA granted Dresser-Rand the right to market and sell the Dresser-Rand KG2-3GEF 2 MW gas turbine coupled with our Power Oxidizer. In June 2016, we executed a contract manufacturing and commercial licensing agreement (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. The first two systems sold to Dresser-Rand pursuant to the CLA were shipped to a Stockton, California biorefinery site owned by Pacific Ethanol, Inc. in the fourth quarter of 2016. 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. Going Concern Our condensed consolidated financial statements are prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and have been prepared on a going concern basis, which contemplates the realization of assets and settlement of liabilities in the normal course of business. Since our inception, we have made a substantial investment in research and development to develop the 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 entered into 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. Pursuant to the amendment, Dresser-Rand paid us $1.2 million in cash in April 2017, 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. 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. In July 2017, we executed an additional amendment for additional payments of up to $250,000 to be applied against future license payments consisting of a payment credit of approximately $365,000 and an additional discount of approximately $115,000 for a combined payment credit of $2.1 million. The April 2017 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 June 30, 2017 and 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. 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 our 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 the CMLA, including $1.2 million received in the second quarter of 2017, $250,000 expected in the third quarter of 2017 and additional license payments upon receipt of firm purchase orders for licenses along with product sales receipts for 250kW unit sales. 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 (including restricted cash transferred to unrestricted cash in April 2017) on June 30, 2017 was approximately $0.1 million. During the first half of 2017, we continued our cost cutting measures by entering into a lease for a lower-cost headquarters facility, which we have occupied since April 2017, and through additional headcount reductions. We expect that the $0.1 million of cash and cash equivalents as of June 30, 2017, combined with 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 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 condensed 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	6 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 2—Summary of Significant Accounting Policies Basis of Presentation The accompanying condensed 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. The accompanying financial information is unaudited, but, in the opinion of management, reflects all adjustments (which include only normally recurring adjustments) necessary to present fairly the Company’s financial position, operating results and cash flows for the periods presented. It is management’s opinion that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statement presentation. Reclassifications Certain amounts in the 2016 condensed 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. 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 June 30, 2017, we had no amounts 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 and terminated in April 2017, we were 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 $0 at June 30, 2017 and $50,000 at December 31, 2016. 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 June 30, 2017, three customers accounted for approximately 96% of our accounts receivable and as of December 31, 2016, two customers accounted for 100% of our accounts receivable. Accounts Payable As of June 30, 2017 and December 31, 2016, two and eight vendors, respectively, collectively accounted for approximately 28% and 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 June 30, 2017 and December 31, 2016, 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 condensed 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 condensed 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 condensed consolidated statement of operations. We had no warranty accrual at June 30, 2017 or December 31, 2016. We expect that most terms for future warranties of our Powerstations and 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. 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 recoverable. 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 June 30, 2017 and December 31, 2016, 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, and capital lease liabilities. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2017 and December 31, 2016. 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. Derivative Financial Instruments The Company issues derivative financial instruments in conjunction with its debt and equity offerings and to provide additional incentive to investors and placement agents. The Company uses derivative financial instruments in order to obtain the lowest cash cost-source of funds. Derivative liabilities are recognized in the condensed consolidated balance sheets at fair value based on the criteria specified in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) topic 815-40 “ Derivatives and Hedging—Contracts in Entity’s own Equity The Company issued warrants to purchase common stock and secured debt with a conversion feature in April and May 2015, September 2016 and December 2016. In December 2015, we amended the secured debt issued in April and May 2015 (the “2015 Senior Notes”) to add a conversion feature. The Company 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 condensed 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 condensed 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 reasonable assured. Amounts billed to clients for shipping and handling are classified as sales of product with related costs incurred included in cost of sales. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded. We defer any revenue for which the services have not been performed or 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 a 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 June 30, 2017 and December 31, 2016, we had provisions for contract losses in the amounts of $760,000 and $724,000, respectively. Our deferred revenue balances as of June 30, 2017 consisted primary of billings and receipts of the Dresser-Rand licenses and the two Power Oxidizer units sold to Dresser-Rand and installed at a Pacific Ethanol location in Stockton, California. While delivery of the Power Oxidizer units has occurred, customer acceptance had not occurred as of June 30, 2017 and a contractual risk of loss still remained on the licensing collections. As such, we did not recognize revenues for the three or six months ended June 30, 2017. Research and Development Costs Research and development costs are expensed as incurred. Research and development costs were $600,000 and $755,000 for the three months ended June 30, 2017 and 2016, respectively, and were $1,183,000 and $1,698,000 for the six months ended June 30, 2017 and 2016, 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 condensed consolidated balance sheets. Income Taxes We account for income taxes under FASB ASC 740 “Income Taxes.” Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that we will not realize tax assets through future operations. Earnings (Loss) per Share Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock 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 shares of common stock that would have been outstanding if the potential shares had been issued and if the additional shares of common stock were dilutive. Approximately 10.3 million and 1.6 million shares of common stock issuable upon full exercise of all options and warrants at June 30, 2017 and 2016, respectively, and all shares potentially issuable in the future under the terms of the Secured Notes Payable for 2017 and Senior Notes Payable for 2016 were excluded from the computation of diluted loss per share due to the anti-dilutive effect on the net loss per share. All share and per share amounts in the table below have been adjusted to reflect the 1-for-50 reverse split of our issued and outstanding common stock on July 8, 2016, retroactively. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (3,210,000 ) $ (2,185,000 ) $ (6,461,000 ) $ (6,033,000 ) Weighted average number of common shares outstanding: Basic and diluted 4,063,660 3,708,782 4,007,953 3,400,711 Net loss attributable to common stockholders per share: Basic and diluted $ (0.79 ) $ (0.59 ) $ (1.61 ) $ (1.84 ) Comprehensive Income (Loss) We have no items of other comprehensive income (loss) in any period presented. Therefore, net loss as presented in our condensed consolidated statements of operations equals comprehensive loss. Recently Issued Accounting Pronouncements From time to time, the FASB issues Accounting Standards Updates (“ASUs”) to amend the authoritative literature in ASC. Management believes that those issued to date that are not described below either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). In April 2016, the FASB issued Accounting Standards Update 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. 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 adopted ASU 2014-09 and ASU 2016-10 effective as of January 1, 2017. There was no impact to the Company’s financial position, results of operations, or cash flows as a result of the adoption. 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 adopted ASU 2015-11 effective as of January 1, 2017. There was no impact to the Company’s financial position, results of operations, or cash flows as a result of the 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. In May 2017, the FASB issued ASU 2017-9, Compensation-Stock Compensation (Topic 718). ASU 2017-9 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-9 is effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is allowed. We have not yet assessed the impact ASU 2017-9 will have upon adoption. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. The amendments in Part I of this ASU change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments in Part II of this ASU recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. Amendments in Part I of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The amendments in Part II of the ASU do not require any transition guidance because those amendments do not have an accounting effect. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. We have not yet assessed the impact ASU 2017-11 will have upon adoption.

Inventory

Inventory	6 Months Ended
Inventory	Jun. 30, 2017
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 June 30, 2017 or December 31, 2016. Inventories consist of: June 30, (unaudited) December 31, Raw material and spare parts $ 1,080,000 $ 990,000 Work-in-progress 1,985,000 1,774,000 Total $ 3,065,000 $ 2,764,000

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	6 Months Ended
Prepaid Expenses and Other Current Assets	Jun. 30, 2017
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: June 30, (unaudited) December 31, 2016 Prepaid rent $ — $ 52,000 Prepaid insurance 30,000 43,000 Prepaid other 53,000 96,000 Prepaid professional fees 62,000 1,000 Prepaid deferred financing fees 44,000 110,000 Total $ 189,000 $ 302,000

Property and Equipment, Net

Property and Equipment, Net	6 Months Ended
Property and Equipment, Net	Jun. 30, 2017
Property and Equipment, Net [Abstract]
Property and Equipment, Net	Note 5—Property and Equipment, Net Property and equipment, net consisted of the following: June 30, (unaudited) December 31, Machinery and equipment $ 4,311,000 $ 4,377,000 Office furniture and fixtures 49,000 217,000 Computer equipment and software 202,000 176,000 Total cost 4,562,000 4,770,000 Less accumulated depreciation (1,732,000 ) (1,523,000 ) Net $ 2,830,000 $ 3,247,000 Assets recorded under capital leases and included in property and equipment in our balance sheets consist of the following: June 30, (unaudited) December 31, Machinery and equipment $ 27,000 $ 27,000 Computer equipment and software 84,000 59,000 Total assets under capital lease 111,000 86,000 Less accumulated amortization (77,000 ) (71,000 ) Net assets under capital lease $ 34,000 $ 15,000 Depreciation expense for the three and six months ended June 30, 2017 and 2016 consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Research and development $ 98,000 $ 103,000 $ 198,000 $ 203,000 General and administrative 24,000 29,000 51,000 58,000 $ 122,000 $ 132,000 $ 249,000 $ 261,000 Amortization of assets under capital lease was $2,000 for the three months ended June 30, 2017 and 2016, respectively, and $3,000 for the six months ended June 30, 2017 and 2016, respectively.

Accrued Expenses

Accrued Expenses	6 Months Ended
Accrued Expenses	Jun. 30, 2017
Accrued Expenses [Abstract]
Accrued Expenses	Note 6—Accrued Expenses Accrued expenses consisted of the following; June 30, (unaudited) December 31, Accrued professional fees $ 105,000 $ 138,000 Accrued compensation 441,000 346,000 Accrued board of directors’ fees 120,000 40,000 Accrued interest 10,000 29,000 Accrued other 90,000 20,000 Total accrued expenses $ 766,000 $ 573,000

Deferred Revenues and Customer

Deferred Revenues and Customer Advances	6 Months Ended
Deferred Revenues and Customer Advances	Jun. 30, 2017
Deferred Revenues and Customer Advances [Abstract]
Deferred Revenues and Customer Advances	Note 7—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 and received in September 2016 but for which right of return existed as of June 30, 2017. Deferred revenues and customer advances consisted of the following: June 30, (unaudited) December 31, Customer advances on equipment sales $ 2,877,000 $ 2,776,000 Prepaid license fees 2,300,000 1,100,000 Total deferred revenues and customer advances $ 5,177,000 $ 3,876,000

Convertible Senior Notes Payabl

Convertible Senior Notes Payable	6 Months Ended
Convertible Senior Notes Payable	Jun. 30, 2017
Convertible Senior Notes Payable [Abstract]
Convertible Senior Notes Payable	Note 8—Convertible Senior Notes Payable Convertible Senior Notes payable consisted of the following as of June 30, 2017: Principal Debt Discount Offering Costs Net Total Balance, December 31, 2016 $ 9,191,000 $ (8,152,000 ) $ (409,000 ) $ 630,000 Amortization of Debt Discount and Offering Costs — 2,029,000 102,000 2,131,000 Conversion into common shares (60,000 ) 50,000 3,000 (7,000 ) Balance, June 30, 2017 9,131,000 (6,073,000 ) (304,000 ) 2,754,000 Less: Current Portion — — — — Long Term Portion $ 9,131,000 $ (6,073,000 ) $ (304,000 ) $ 2,754,000 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 9 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, the Company 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 redeemed 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 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. During the six months ended June 30, 2017, two holders of Senior Notes converted $60,000 of principal into 24,000 shares of the Company’s common stock. As a result of these conversions, the Company incurred a loss of $53,000, representing the unamortized debt discount and deferred financing fees.

Convertible Unsecured Notes

Convertible Unsecured Notes	6 Months Ended
Convertible Unsecured Notes	Jun. 30, 2017
Convertible Unsecured Notes [Abstract]
Convertible Unsecured Notes	Note 9—Convertible Unsecured Notes Convertible Unsecured Notes payable consisted of the following as of June 30, 2017: Notes Debt Discount Offering Costs Net Total December 31, 2016 Balance $ 1,250,000 $ (666,000 ) $ (30,000 ) $ 554,000 Amortization of debt discount and deferred financing costs — 552,000 22,000 574,000 Issuance of additional warrants (73,000 ) — (73,000 ) Ending balance—June 30, 2017 1,250,000 (187,000 ) (8,000 ) 1,055,000 Less: Current Portion $ (1,250,000 ) $ 187,000 $ 8,000 $ (1,055,000 ) 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. We recorded a discount of $553,000 on the date of issuance representing the fair value of the warrants issued and the value of the beneficial conversion feature on the date of issuance. In the fourth quarter of 2016, we increased our debt discount recorded by $335,000, consisting of $305,000 recorded for the issuance of additional warrants at fair value of $305,000 and $30,000 for the difference in fair value for warrants repriced from $4.00 per share to $3.00 per share. 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 8. 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 called 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 had 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 to purchase an aggregate of 62,500 shares of common stock issued in the first quarter of 2017 using the Black-Scholes option pricing model at $73,000 and recorded an additional discount on the date of issuance. The Company evaluated the accounting of the additional detachable warrants and determined that the warrants should not be accounted for as derivative liabilities.

Fair Value Measurements and Dis

Fair Value Measurements and Disclosures	6 Months Ended
Fair Value Measurements and Disclosures	Jun. 30, 2017
Fair Value Measurements and Disclosures [Abstract]
Fair Value Measurements and Disclosures	Note 10—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. As of June 30, 2017, there were no investments that required fair value measurement disclosure.

Capital Leases Payable

Capital Leases Payable	6 Months Ended
Capital Leases Payable	Jun. 30, 2017
Capital Leases Payable [Abstract]
Capital Leases Payable	Note 11—Capital Leases Payable Capital Leases Payable Capital leases payable consisted of the following: June 30, 2017 (unaudited) December 31, Capital lease payable to De Lange Landon secured by forklift, 10.0% interest, due on October 1, 2018, monthly payment of $452. $ 7,000 $ 10,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on November 22, 2017, monthly payment of $394. 2,000 4,000 Capital lease payable to Dell Computers secured by computer equipment, 4.99% interest, due on May 1, 2020, monthly payment of $716. 24,000 — Total capital leases $ 33,000 $ 14,000 Less: current portion (15,000 ) (10,000 ) Long-term portion of capital leases $ 18,000 $ 4,000 The future minimum lease payments required under the capital leases and the present value of the net minimum lease payments as of June 30, 2017, are as follows: Year Ending December 31, Amount 2017 $ 10,000 2018 12,000 2019 8,000 2020 5,000 Net minimum lease payments $ 35,000 Less: Amount representing interest (2,000 ) Less: Taxes - Present value of net minimum lease payments $ 33,000 Less: Current maturities of capital lease payables (15,000 ) Long-term capital lease payables $ 18,000

Equity

Equity	6 Months Ended
Equity	Jun. 30, 2017
Equity [Abstract]
Equity	Note 12—Equity During the six months ended June 30, 2017 holders of our Senior Notes converted $60,000 of Senior Notes principal into 24,000 shares of the Company’s common stock.

Stock Options and Warrants

Stock Options and Warrants	6 Months Ended
Stock Options and Warrants	Jun. 30, 2017
Stock Options and Warrants [Abstract]
Stock Options and Warrants	Note 13—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, other than pursuant to previously issued options. 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 June 30, 2017, 27,465 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 June 30, 2017, the Company has issued 210,000 shares of restricted common stock and options to purchase an aggregate of 440,000 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 June 30, 2017, total unrecognized deferred stock compensation expected to be recognized over the remaining weighted-average vesting periods of 3.87 years for outstanding grants was $1.5 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, 2016 273,550 $ 13.70 5.02 $ — Forfeited during 2017 (38,027 ) 16.05 — — Granted during 2017 440,000 2.50 9.76 — Balance, June 30, 2017 675,523 $ 5.38 8.09 $ — Exercisable on June 30, 2017 341,390 $ 9.29 6.76 $ — 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 235,523 shares of the Company’s common stock were outstanding and options to purchase 195,373 shares of the Company’s common stock were exercisable under the 2013 Plan and options to purchase 440,000 shares of the Company’s common stock were outstanding with 146,016 exercisable under the 2015 Plan on June 30, 2017. The following table summarizes information about stock options outstanding at June 30, 2017: 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–$10.00 532,140 9.18 $ 3.35 205,728 $ 3.98 $10.01–$15.00 30,300 6.42 $ 12.50 22,579 $ 12.50 $15.01–$20.00 96,845 2.83 $ 17.50 96,845 $ 17.50 $20.01–$25.00 16,238 4.03 $ 23.26 16,238 $ 23.26 675,523 8.02 $ 6.27 341,390 $ 9.29 Stock based compensation expense consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Research and development $ 134,000 $ 149,000 $ 303,000 $ 310,000 General and administrative 249,000 202,000 350,000 417,000 $ 383,000 $ 351,000 $ 653,000 $ 727,000 Restricted Stock Restricted stock grants consist of shares of common stock of the Company owned by employees, consultants, and directors that are subject to vesting conditions, typically for services provided to the Company. All unvested shares of restricted stock are subject to repurchase rights and, therefore, are recorded as restricted stock. Restricted stock activities during the six months ended June 30, 2017 were as follows: Weighted- Average Grant Shares Price Balance, December 31, 2016 — $ — Granted 210,000 $ 1.55 Vested (65,625 ) $ — Unvested balance, June 30, 2017 144,375 $ 1.55 Expenses related to vesting of restricted stock are included in stock-based compensation expense. The remaining unvested shares of restricted stock vest 33% per year on March 31, 2018, 2019 and 2020. 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 six months ended June 30, 2017. Balance outstanding at December 31, 2016 5,358,881 $ 3.77 Issued for Convertible Unsecured Notes 62,500 3.00 Issued for amendments to Backstop Security 41,000 3.00 Balance outstanding at June 30, 2017 5,462,381 $ 3.59 All warrants were exercisable at June 30, 2017, the weighted average exercise price per share was $3.59 and the weighted average remaining life was 4.16 years. The warrants outstanding as of June 30, 2017 had no intrinsic value. 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. Warrants outstanding as of June 30, 2017 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 3.00 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-16–Jan-17 Sep-21–Jan-22 374,499 3.00 2016 Senior Notes Warrants Dec-16 Dec-21 3,720,839 3.00 2017 Backstop Security Amendments—April(16) Apr-17 Apr-22 41,000 3.00 Warrants outstanding and exercisable at June 30, 2017 5,462,381 $ 3.59 (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 14. 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. On April 27, 2017, the exercise price was reduced to $3.00 per share in conjunction with the amendment of the Letter of Credit described in Note 14. The Company recorded additional deferred financing charges of $30,000, representing the difference in fair value immediately before and after the repricing, which will be amortized ratably to expense through March 31, 2018. (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, December 31, 2016, and January 30, 2017 were issued with an initial exercise price of $3.00 per share. On January 30, 2017 the Company issued 62,500 warrants with an exercise price of $3.00 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. (16) On April 27, 2017, the Company issued a warrant to purchase 41,000 shares of common stock at an exercise price of $3.00 per share in conjunction with the amendment of the Letter of Credit described in Note 14. The warrant was valued using the Black-Scholes option pricing model at $26,000, which will be recorded to deferred financing charges and amortized to expense ratably through the end of March 2018.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
Commitments and Contingencies	Jun. 30, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 14—Commitments and Contingencies We may become a party to litigation in the normal course of business. We accrue for open claims based on our historical experience and available insurance coverage. In the opinion of management, there are no legal matters involving us that would have a material adverse effect upon our financial condition, results of operations or cash flows. 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 in February 2017 for a separate facility and moved into our new headquarters facilities in April 2017. Through March 31, 2017, our headquarters was 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 $15,000 per month for the three months ended March 31, 2017. As of April 1, 2017, our headquarters are located at 8965 Research Drive, Irvine, California 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. Future minimum rental payments under operating leases that have initial noncancelable lease terms in excess of one year as of June 30, 2017 are as follows: Six months ending December 31, 2017 $ 61,000 Year ending December 31, 2018 125,000 Year ending December 31, 2019 128,000 Year ending December 31, 2020 32,000 Total $ 346,000 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 “Backstop Security”). 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 Backstop Security 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 Backstop Security in favor of Dresser-Rand, (b) Dresser-Rand eliminating the Backstop Security 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. Amendments to Backstop Security and Senior Notes Effective as of April 27, 2017, the Company executed a First Amendment to the Support Agreement (the “BSSA Amendment”), with the individual investor. The BSSA Amendment is intended to conform the terms of the Support Agreement and related Letter of Credit to the terms of the CMLA. The BSSA Amendment (i) reduces the security obligation underlying the Letter of Credit from $2.1 million to $500,000, consistent with the current terms of the CMLA, (ii) extends the term of the backstop security to March 31, 2018, (iii) reduces the related fee payable under the Support Agreement to 1% per month for the remainder of the term, (iv) provided for the amendment and restatement of the warrant issued to the investor in connection with the execution of the Support Agreement in order to reduce the exercise price per share of common stock of to $3.00 and insert a beneficial ownership blocker provision at 4.99% (as amended and restated, the “Restated Warrant”) and (v) provided that the Company would issue the investor an additional warrant to purchase 41,000 shares of Common Stock at an exercise price of $3.00 per share, subject to a 4.99% beneficial ownership blocker. In connection with the execution of the BSSA Amendment, on April 27, 2017, we and certain investors holding Senior Notes executed first amendments to such Senior Notes to revise the definition of “Backstop Agreement” to include any amendments, restatements, supplements or other modifications thereof, as may be permitted thereunder.

Subsequent Events

Subsequent Events	6 Months Ended
Subsequent Events	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 15—Subsequent Events None.

Summary of Significant Accoun21

Summary of Significant Accounting Policies (Policies)	6 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying condensed 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. The accompanying financial information is unaudited, but, in the opinion of management, reflects all adjustments (which include only normally recurring adjustments) necessary to present fairly the Company’s financial position, operating results and cash flows for the periods presented. It is management’s opinion that all material adjustments (consisting of normal recurring adjustments) have been made, which are necessary for a fair financial statement presentation.
Reclassifications	Reclassifications Certain amounts in the 2016 condensed 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.
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 June 30, 2017, we had no amounts 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 and terminated in April 2017, we were 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 $0 at June 30, 2017 and $50,000 at December 31, 2016.
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 June 30, 2017, three customers accounted for approximately 96% of our accounts receivable and as of December 31, 2016 two customers accounted for 100% of our accounts receivable.
Accounts Payable	Accounts Payable As of June 30, 2017 and December 31, 2016, two and eight vendors, respectively, collectively accounted for approximately 28% and 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 June 30, 2017 and December 31, 2016, 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 condensed 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 condensed 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 condensed consolidated statement of operations. We had no warranty accrual at June 30, 2017 or December 31, 2016. We expect that most terms for future warranties of our Powerstations and 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.
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 recoverable. 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 June 30, 2017 and December 31, 2016, 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, and capital lease liabilities. Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2017 and December 31, 2016. 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.
Derivative Financial Instruments	Derivative Financial Instruments The Company issues derivative financial instruments in conjunction with its debt and equity offerings and to provide additional incentive to investors and placement agents. The Company uses derivative financial instruments in order to obtain the lowest cash cost-source of funds. Derivative liabilities are recognized in the condensed consolidated balance sheets at fair value based on the criteria specified in Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) topic 815-40 “ Derivatives and Hedging—Contracts in Entity’s own Equity The Company issued warrants to purchase common stock and secured debt with a conversion feature in April and May 2015, September 2016 and December 2016. In December 2015, we amended the secured debt issued in April and May 2015 (the “2015 Senior Notes”) to add a conversion feature. The Company 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 condensed 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 condensed 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 reasonable assured. Amounts billed to clients for shipping and handling are classified as sales of product with related costs incurred included in cost of sales. Provisions for discounts and rebates to customers, estimated returns and allowances, and other adjustments are provided for in the same period the related revenue is recorded. We defer any revenue for which the services have not been performed or 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 a 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 June 30, 2017 and December 31, 2016, we had provisions for contract losses in the amounts of $760,000 and $724,000, respectively. Our deferred revenue balances as of June 30, 2017 consisted primary of billings and receipts of the Dresser-Rand licenses and the two Power Oxidizer units sold to Dresser-Rand and installed at a Pacific Ethanol location in Stockton, California. While delivery of the Power Oxidizer units has occurred, customer acceptance had not occurred as of June 30, 2017 and a contractual risk of loss still remained on the licensing collections. As such, we did not recognize revenues for the three or six months ended June 30, 2017.
Research and Development Costs	Research and Development Costs Research and development costs are expensed as incurred. Research and development costs were $600,000 and $755,000 for the three months ended June 30, 2017 and 2016, respectively, and were $1,183,000 and $1,698,000 for the six months ended June 30, 2017 and 2016, 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 condensed consolidated balance sheets.
Income taxes	Income Taxes We account for income taxes under FASB ASC 740 “Income Taxes.” Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that we will not realize tax assets through future operations.
Earnings (Loss) per Share	Earnings (Loss) per Share Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average number of shares of common stock 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 shares of common stock that would have been outstanding if the potential shares had been issued and if the additional shares of common stock were dilutive. Approximately 10.3 million and 1.6 million shares of common stock issuable upon full exercise of all options and warrants at June 30, 2017 and 2016, respectively, and all shares potentially issuable in the future under the terms of the Secured Notes Payable for 2017 and Senior Notes Payable for 2016 were excluded from the computation of diluted loss per share due to the anti-dilutive effect on the net loss per share. All share and per share amounts in the table below have been adjusted to reflect the 1-for-50 reverse split of our issued and outstanding common stock on July 8, 2016, retroactively. Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (3,210,000 ) $ (2,185,000 ) $ (6,461,000 ) $ (6,033,000 ) Weighted average number of common shares outstanding: Basic and diluted 4,063,660 3,708,782 4,007,953 3,400,711 Net loss attributable to common stockholders per share: Basic and diluted $ (0.79 ) $ (0.59 ) $ (1.61 ) $ (1.84 )
Comprehensive Income (Loss)	Comprehensive Income (Loss) We have no items of other comprehensive income (loss) in any period presented. Therefore, net loss as presented in our condensed consolidated statements of operations equals comprehensive loss.
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements From time to time, the FASB issues Accounting Standards Updates (“ASUs”) to amend the authoritative literature in ASC. Management believes that those issued to date that are not described below either (i) provide supplemental guidance, (ii) are technical corrections, (iii) are not applicable to us or (iv) are not expected to have a significant impact our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). In April 2016, the FASB issued Accounting Standards Update 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing. 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 adopted ASU 2014-09 and ASU 2016-10 effective as of January 1, 2017. There was no impact to the Company’s financial position, results of operations, or cash flows as a result of the adoption. 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 adopted ASU 2015-11 effective as of January 1, 2017. There was no impact to the Company’s financial position, results of operations, or cash flows as a result of the 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. In May 2017, the FASB issued ASU 2017-9, Compensation-Stock Compensation (Topic 718). ASU 2017-9 provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. ASU 2017-9 is effective for all entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is allowed. We have not yet assessed the impact ASU 2017-9 will have upon adoption. In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Noncontrolling Interests with a Scope Exception. The amendments in Part I of this ASU change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments in Part II of this ASU recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception. Those amendments do not have an accounting effect. Amendments in Part I of this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The amendments in Part II of the ASU do not require any transition guidance because those amendments do not have an accounting effect. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. We have not yet assessed the impact ASU 2017-11 will have upon adoption.

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Tables)	6 Months Ended
Summary of Significant Accounting Policies (Tables)	Jun. 30, 2017
Summary of Significant Accounting Policies [Abstract]
Schedule of earnings (loss) per share	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Net loss $ (3,210,000 ) $ (2,185,000 ) $ (6,461,000 ) $ (6,033,000 ) Weighted average number of common shares outstanding: Basic and diluted 4,063,660 3,708,782 4,007,953 3,400,711 Net loss attributable to common stockholders per share: Basic and diluted $ (0.79 ) $ (0.59 ) $ (1.61 ) $ (1.84 )

Inventory (Tables)

Inventory (Tables)	6 Months Ended
Inventory (Tables)	Jun. 30, 2017
Inventory [Abstract]
Summary of Inventories	June 30, (unaudited) December 31, Raw material and spare parts $ 1,080,000 $ 990,000 Work-in-progress 1,985,000 1,774,000 Total $ 3,065,000 $ 2,764,000

Prepaid Expenses and Other Cu24

Prepaid Expenses and Other Current Assets (Tables)	6 Months Ended
Prepaid Expenses and Other Current Assets (Tables)	Jun. 30, 2017
Prepaid Expenses and Other Current Assets [Abstract]
Schedule of prepaid expenses and other current assets	June 30, (unaudited) December 31, 2016 Prepaid rent $ — $ 52,000 Prepaid insurance 30,000 43,000 Prepaid other 53,000 96,000 Prepaid professional fees 62,000 1,000 Prepaid deferred financing fees 44,000 110,000 Total $ 189,000 $ 302,000

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	6 Months Ended
Property and Equipment, Net (Tables)	Jun. 30, 2017
Property and Equipment, Net [Abstract]
Schedule of property and equipment	June 30, (unaudited) December 31, Machinery and equipment $ 4,311,000 $ 4,377,000 Office furniture and fixtures 49,000 217,000 Computer equipment and software 202,000 176,000 Total cost 4,562,000 4,770,000 Less accumulated depreciation (1,732,000 ) (1,523,000 ) Net $ 2,830,000 $ 3,247,000
Schedule of assets recorded under capital leases	June 30, (unaudited) December 31, Machinery and equipment $ 27,000 $ 27,000 Computer equipment and software 84,000 59,000 Total assets under capital lease 111,000 86,000 Less accumulated amortization (77,000 ) (71,000 ) Net assets under capital lease $ 34,000 $ 15,000
Schedule of depreciation expense	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Research and development $ 98,000 $ 103,000 $ 198,000 $ 203,000 General and administrative 24,000 29,000 51,000 58,000 $ 122,000 $ 132,000 $ 249,000 $ 261,000

Accrued Expenses (Tables)

Accrued Expenses (Tables)	6 Months Ended
Accrued Expenses (Tables)	Jun. 30, 2017
Accrued Expenses [Abstract]
Schedule of accrued expenses	June 30, (unaudited) December 31, Accrued professional fees $ 105,000 $ 138,000 Accrued compensation 441,000 346,000 Accrued board of directors’ fees 120,000 40,000 Accrued interest 10,000 29,000 Accrued other 90,000 20,000 Total accrued expenses $ 766,000 $ 573,000

Deferred Revenues and Custome27

Deferred Revenues and Customer Advances (Tables)	6 Months Ended
Deferred Revenues and Customer Advances (Tables)	Jun. 30, 2017
Deferred Revenues and Customer Advances [Abstract]
Schedule of deferred revenues and customer advances	June 30, (unaudited) December 31, Customer advances on equipment sales $ 2,877,000 $ 2,776,000 Prepaid license fees 2,300,000 1,100,000 Total deferred revenues and customer advances $ 5,177,000 $ 3,876,000

Convertible Senior Notes Paya28

Convertible Senior Notes Payable (Tables)	6 Months Ended
Convertible Senior Notes Payable (Tables)	Jun. 30, 2017
Convertible Senior Notes Payable [Abstract]
Schedule of convertible senior notes payable	Principal Debt Discount Offering Costs Net Total Balance, December 31, 2016 $ 9,191,000 $ (8,152,000 ) $ (409,000 ) $ 630,000 Amortization of Debt Discount and Offering Costs — 2,029,000 102,000 2,131,000 Conversion into common shares (60,000 ) 50,000 3,000 (7,000 ) Balance, June 30, 2017 9,131,000 (6,073,000 ) (304,000 ) 2,754,000 Less: Current Portion — — — — Long Term Portion $ 9,131,000 $ (6,073,000 ) $ (304,000 ) $ 2,754,000

Convertible Unsecured Notes (Ta

Convertible Unsecured Notes (Tables)	6 Months Ended
Convertible Unsecured Notes (Tables)	Jun. 30, 2017
Convertible Unsecured Notes [Abstract]
Schedule of convertible unsecured notes	Notes Debt Discount Offering Costs Net Total December 31, 2016 Balance $ 1,250,000 $ (666,000 ) $ (30,000 ) $ 554,000 Amortization of debt discount and deferred financing costs — 552,000 22,000 574,000 Issuance of additional warrants (73,000 ) — (73,000 ) Ending balance—June 30, 2017 1,250,000 (187,000 ) (8,000 ) 1,055,000 Less: Current Portion $ (1,250,000 ) $ 187,000 $ 8,000 $ (1,055,000 ) Long Term Portion $ — $ — $ — $ —

Capital Leases Payable (Tables)

Capital Leases Payable (Tables)	6 Months Ended
Capital Leases Payable (Tables)	Jun. 30, 2017
Capital Leases Payable [Abstract]
Summary of capital leases payable	June 30, 2017 (unaudited) December 31, Capital lease payable to De Lange Landon secured by forklift, 10.0% interest, due on October 1, 2018, monthly payment of $452. $ 7,000 $ 10,000 Capital lease payable to Dell Computers secured by computer equipment, 15.09% interest, due on November 22, 2017, monthly payment of $394. 2,000 4,000 Capital lease payable to Dell Computers secured by computer equipment, 4.99% interest, due on May 1, 2020, monthly payment of $716. 24,000 — Total capital leases $ 33,000 $ 14,000 Less: current portion (15,000 ) (10,000 ) Long-term portion of capital leases $ 18,000 $ 4,000
Summary of capital lease future minimum leases payments	Year Ending December 31, Amount 2017 $ 10,000 2018 12,000 2019 8,000 2020 5,000 Net minimum lease payments $ 35,000 Less: Amount representing interest (2,000 ) Less: Taxes - Present value of net minimum lease payments $ 33,000 Less: Current maturities of capital lease payables (15,000 ) Long-term capital lease payables $ 18,000

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	6 Months Ended
Stock Options and Warrants (Tables)	Jun. 30, 2017
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, 2016 273,550 $ 13.70 5.02 $ — Forfeited during 2017 (38,027 ) 16.05 — — Granted during 2017 440,000 2.50 9.76 — Balance, June 30, 2017 675,523 $ 5.38 8.09 $ — Exercisable on June 30, 2017 341,,390 $ 9.29 6.76 $ —
Schedule of 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–$10.00 532,140 9.18 $ 3.35 205,728 $ 3.98 $10.01–$15.00 30,300 6.42 $ 12.50 22,579 $ 12.50 $15.01–$20.00 96,845 2.83 $ 17.50 96,845 $ 17.50 $20.01–$25.00 16,238 4.03 $ 23.26 16,238 $ 23.26 675,523 8.02 $ 6.27 341,390 $ 9.29
Schedule of stock based compensation expense	Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 Research and development $ 134,000 $ 149,000 $ 303,000 $ 310,000 General and administrative 249,000 202,000 350,000 417,000 $ 383,000 $ 351,000 $ 653,000 $ 727,000
Schedule of restricted stock activity	Weighted- Average Grant Shares Price Balance, December 31, 2016 — $ — Granted 210,000 $ 1.55 Vested (65,625 ) $ — Unvested balance, June 30, 2017 144,375 $ 1.55
Schedule of warrants outstanding activity	Balance outstanding at December 31, 2016 5,358,881 $ 3.77 Issued for Convertible Unsecured Notes 62,500 3.00 Issued for amendments to Backstop Security 41,000 3.00 Balance outstanding at June 30, 2017 5,462,381 $ 3.59
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 3.00 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-16–Jan-17 Sep-21–Jan-22 374,499 3.00 2016 Senior Notes Warrants Dec-16 Dec-21 3,720,839 3.00 2017 Backstop Security Amendments—April(16) Apr-17 Apr-22 41,000 3.00 Warrants outstanding and exercisable at June 30, 2017 5,462,381 $ 3.59 (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 14. 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. On April 27, 2017, the exercise price was reduced to $3.00 per share in conjunction with the amendment of the Letter of Credit described in Note 14. The Company recorded additional deferred financing charges of $30,000, representing the difference in fair value immediately before and after the repricing, which will be amortized ratably to expense through March 31, 2018. (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, December 31, 2016, and January 30, 2017 were issued with an initial exercise price of $3.00 per share. On January 30, 2017 the Company issued 62,500 warrants with an exercise price of $3.00 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. (16) On April 27, 2017, the Company issued a warrant to purchase 41,000 shares of common stock at an exercise price of $3.00 per share in conjunction with the amendment of the Letter of Credit described in Note 14. The warrant was valued using the Black-Scholes option pricing model at $26,000, which will be recorded to deferred financing charges and amortized to expense ratably through the end of March 2018.

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
Commitments and Contingencies (Tables)	Jun. 30, 2017
Commitments and Contingencies [Abstract]
Summary of future minimum rental payments under operating leases	Six months ending December 31, 2017 $ 61,000 Year ending December 31, 2018 125,000 Year ending December 31, 2019 128,000 Year ending December 31, 2020 32,000 Total $ 346,000

Organization (Details)

Organization (Details) - USD ($)	1 Months Ended						6 Months Ended	12 Months Ended
Organization (Details) - USD ($)	Jul. 31, 2017	Apr. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Apr. 30, 2016	Dec. 31, 2015	Jun. 30, 2017	Dec. 31, 2016	Mar. 31, 2017	Jun. 30, 2016	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			200,000,000
Preferred stock, Shares authorized			50,000,000				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	$ 0.0001
Preferred stock, par value			$ 0.0001				$ 0.0001	$ 0.0001
Reverse stock split							1-for-50
Increase in capital			$ 3,400,000	$ 1,250,000	$ 3,000,000	$ 2,500,000
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								$ 1,100,000
Cash and cash equivalents			1,310,000			$ 2,605,000	$ 121,000	1,310,000	$ 1,300,000	$ 633,000
Advance payments received on license fees for KG2/PO units		$ 1,200,000
Future license payments		1,760,000
Credit of license payments		1,200,000
Additional discount of license payments		$ 560,000
Accrued claims			$ 124,000				124,000	$ 124,000
Subsequent Events [Member]
Organization (Textual)
Combined payment credited for future license	$ 2,100,000
Future license payments	250,000
Credit of license payments	365,000
Additional discount of license payments	$ 115,000
Second quarter of 2017 [Member]
Organization (Textual)
License fees							1,200,000
Third quarter 2017 [Member]
Organization (Textual)
License fees							$ 250,000
Common stock [Member]
Organization (Textual)
Reduction of shares due to reverse stock split							4,000,000
Preferred stock [Member]
Organization (Textual)
Reduction of shares due to reverse stock split							1,000,000

Summary of Significant Accoun34

Summary of Significant Accounting Policies (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary of Significant Accounting Policies [Abstract]
Net loss	$ (3,210,000)	$ (2,185,000)	$ (6,461,000)	$ (6,033,000)
Weighted average number of common shares outstanding:
Basic and diluted	4,063,660	3,708,782	4,007,953	3,400,711
Net loss attributable to common stockholders per share:
Basic and diluted	$ (0.79)	$ (0.59)	$ (1.61)	$ (1.84)

Summary of Significant Accoun35

Summary of Significant Accounting Policies (Details Textual) shares in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)segmentCustomervendorshares	Jun. 30, 2016USD ($)shares	Dec. 31, 2016USD ($)Customervendor
Summary of Significant Accounting Policies (Textual)
Basis of Presentation, description			The nearest $000, except certain per share amounts.
Number of operating segments \| segment			1
FDIC Insurance coverage	$ 250,000		$ 250,000
Cash in excess of FDIC
Security deposit as collateral with financial institution	0		0		$ 50,000
Research and development costs	$ 600,000	$ 755,000	$ 1,183,000	$ 1,698,000
Reverse stock split reflect			1-for-50
Provisions for contract loss			$ 760,000		$ 724,000
Common stock issuable exercise options and warrants \| shares			10.3	1.6
Accounts Receivable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage			96.00%		100.00%
Number of customers \| Customer			3		2
Accounts Payable [Member]
Summary of Significant Accounting Policies (Textual)
Concentration risk, Percentage			28.00%		50.00%
Number of vendors \| vendor			2		8

Inventory (Details)

Inventory (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Inventory [Abstract]
Raw material and spare parts	$ 1,080,000	$ 990,000
Work-in-progress	1,985,000	1,774,000
Total	$ 3,065,000	$ 2,764,000

Prepaid Expenses and Other Cu37

Prepaid Expenses and Other Current Assets (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Prepaid Expenses and Other Current Assets [Abstract]
Prepaid rent		$ 52,000
Prepaid insurance	30,000	43,000
Prepaid other	53,000	96,000
Prepaid professional fees	62,000	1,000
Prepaid deferred financing fees	44,000	110,000
Total	$ 189,000	$ 302,000

Property and Equipment, Net (De

Property and Equipment, Net (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total cost	$ 4,562,000	$ 4,770,000
Less accumulated depreciation	(1,732,000)	(1,523,000)
Net	2,830,000	3,247,000
Machinery and equipment [Member]
Property, Plant and Equipment [Line Items]
Total cost	4,311,000	4,377,000
Office furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Total cost	49,000	217,000
Computer equipment and software [Member]
Property, Plant and Equipment [Line Items]
Total cost	$ 202,000	$ 176,000

Property and Equipment, Net (39

Property and Equipment, Net (Details 1) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Total assets under capital lease	$ 4,562,000	$ 4,770,000
Less accumulated amortization	(1,732,000)	(1,523,000)
Capital Lease [Member]
Property, Plant and Equipment [Line Items]
Total assets under capital lease	111,000	86,000
Less accumulated amortization	(77,000)	(71,000)
Net assets under capital lease	34,000	15,000
Machinery and Equipment [Member]
Property, Plant and Equipment [Line Items]
Total assets under capital lease	4,311,000	4,377,000
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	202,000	176,000
Computer equipment and software [Member] \| Capital Lease [Member]
Property, Plant and Equipment [Line Items]
Total assets under capital lease	$ 84,000	$ 59,000

Property and Equipment, Net (40

Property and Equipment, Net (Details 2) - USD ($)	3 Months Ended		6 Months Ended
Property and Equipment, Net (Details 2) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 122,000	$ 132,000	$ 249,000	$ 261,000
Research and development [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	98,000	103,000	198,000	203,000
General and administrative [Member]
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 24,000	$ 29,000	$ 51,000	$ 58,000

Property and Equipment, Net (41

Property and Equipment, Net (Details Textual) - USD ($)	3 Months Ended		6 Months Ended
Property and Equipment, Net (Details Textual) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property and Equipment, Net (Textual)
Amortization of assets under capital lease	$ 2,000	$ 2,000	$ 3,000	$ 3,000

Accrued Expenses (Details)

Accrued Expenses (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accrued Expenses [Abstract]
Accrued professional fees	$ 105,000	$ 138,000
Accrued compensation	441,000	346,000
Accrued board of directors' fees	120,000	40,000
Accrued interest	10,000	29,000
Accrued other	90,000	20,000
Total accrued expenses	$ 766,000	$ 573,000

Deferred Revenues and Custome43

Deferred Revenues and Customer Advances (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Deferred Revenues and Customer Advances [Abstract]
Customer advances on equipment sales	$ 2,877,000	$ 2,776,000
Prepaid license fees	2,300,000	1,100,000
Total deferred revenues and customer advances	$ 5,177,000	$ 3,876,000

Convertible Senior Notes Paya44

Convertible Senior Notes Payable (Details) - Convertible Senior Notes payable [Member]	6 Months Ended
	Jun. 30, 2017USD ($)
Principal [Member]
Debt Instrument [Line Items]
Balance, December 31, 2016	$ 9,191,000
Amortization of Debt Discount and Offering Costs
Conversion into common shares	(60,000)
Balance, June 30, 2017	9,131,000
Less: Current Portion
Long Term Portion	9,131,000
Debt Discount [Member]
Debt Instrument [Line Items]
Balance, December 31, 2016	(8,152,000)
Amortization of Debt Discount and Offering Costs	2,029,000
Conversion into common shares	50,000
Balance, June 30, 2017	(6,073,000)
Less: Current Portion
Long Term Portion	(6,073,000)
Offering Costs [Member]
Debt Instrument [Line Items]
Balance, December 31, 2016	(409,000)
Amortization of Debt Discount and Offering Costs	102,000
Conversion into common shares	3,000
Balance, June 30, 2017	(304,000)
Less: Current Portion
Long Term Portion	(304,000)
Net Total [Member]
Debt Instrument [Line Items]
Balance, December 31, 2016	630,000
Amortization of Debt Discount and Offering Costs	2,131,000
Conversion into common shares	(7,000)
Balance, June 30, 2017	2,754,000
Less: Current Portion
Long Term Portion	$ 2,754,000

Convertible Senior Notes Paya45

Convertible Senior Notes Payable (Details Textual) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Line of Credit Facility [Line Items]
Purchase of warrants	5,462,381
Unamortized debt discount and deferred financing fees	$ 53,000
Senior notes converted principal amount	$ 60,000
2016 Senior Notes [Member]
Line of Credit Facility [Line Items]
Original issue discount		$ 930,000
Convertible price per share		$ 2.50
Unamortized debt discount and deferred financing fees		$ 8,558,000
Offering costs		479,000
Placement agent fees		298,000
Legal and professional fees		$ 181,000
Bear interest rate		10.00%
Exercise price		$ 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 redeemed 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.
Conversion of stock, shares converted into common stock	24,000
2016 Senior Notes [Member] \| Warrants [Member]
Line of Credit Facility [Line Items]
Face amount		$ 9,302,000
Purchase of warrants		3,720,839
Shares price		$ 3
Issued warrants term		5 years
Option pricing		$ 6,003,000
Convertible senior secured notes [Member]
Line of Credit Facility [Line Items]
Allocated value of warrants issued with Senior Notes		4,133,000
Allocated value of conversion feature associated with Senior Notes		$ 3,495,000
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.
Senior Notes mature date		Dec. 31, 2018
Convertible senior secured notes [Member] \| 2016 Senior Notes [Member] \| Senior Notes, Issued [Member]
Line of Credit Facility [Line Items]
Face amount		$ 3,747,000
Original issue discount		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
Face amount		5,556,000
Original issue discount		$ 556,000

Convertible Unsecured Notes (De

Convertible Unsecured Notes (Details) - Convertible Unsecured Notes payable [Member]	6 Months Ended
	Jun. 30, 2017USD ($)
Notes [Member]
Debt Instrument [Line Items]
December 31, 2016 Balance	$ 1,250,000
Amortization of debt discount and deferred financing costs
Issuance of additional warrants
Ending balance-June 30, 2017	1,250,000
Less: Current Portion	(1,250,000)
Long Term Portion
Debt Discount [Member]
Debt Instrument [Line Items]
December 31, 2016 Balance	(666,000)
Amortization of debt discount and deferred financing costs	552,000
Issuance of additional warrants	(73,000)
Ending balance-June 30, 2017	(187,000)
Less: Current Portion	187,000
Long Term Portion
Offering Costs [Member]
Debt Instrument [Line Items]
December 31, 2016 Balance	(30,000)
Amortization of debt discount and deferred financing costs	22,000
Issuance of additional warrants
Ending balance-June 30, 2017	(8,000)
Less: Current Portion	8,000
Long Term Portion
Net Total [Member]
Debt Instrument [Line Items]
December 31, 2016 Balance	554,000
Amortization of debt discount and deferred financing costs	574,000
Issuance of additional warrants	(73,000)
Ending balance-June 30, 2017	1,055,000
Less: Current Portion	(1,055,000)
Long Term Portion

Convertible Unsecured Notes (47

Convertible Unsecured Notes (Details Textual) - USD ($)	Sep. 01, 2016	Jan. 30, 2017	Jun. 30, 2017	Dec. 31, 2016	Apr. 27, 2017
Convertible Unsecured Notes (Textual)
Purchase of warrants		250,000
Ownership percentage					4.99%
Warrants valued using Black-Scholes Option pricing model			$ 73,000
Debt discount			$ 53,000
Warrant exercise price			$ 3	$ 3
Issuance of warrants			62,500
Unsecured Debt [Member] \| Minimum [Member]
Convertible Unsecured Notes (Textual)
Debt discount				$ 305,000
Fair value of additional issuance to warrants				$ 30,000
Warrant exercise price				$ 3
Unsecured Debt [Member] \| Maximum [Member]
Convertible Unsecured Notes (Textual)
Debt discount				$ 335,000
Fair value of additional issuance to warrants				$ 305,000
Warrant exercise price				$ 3
Securities Purchase Agreement [Member]
Convertible Unsecured Notes (Textual)
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 8. 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%
Debt discount	$ 553,000
Securities Purchase Agreement One [Member]
Convertible Unsecured Notes (Textual)
Warrants exercisable term	5 years
Purchase of warrants	62,500
Exercise price per share	$ 4
Gross proceeds from issuance of warrants	$ 3,000,000

Capital Leases Payable (Details

Capital Leases Payable (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Capital Leased Assets [Line Items]
Total capital leases	$ 33,000	$ 14,000
Less: current portion	(15,000)	(10,000)
Long-term portion of capital leases	18,000	4,000
October 1, 2018 [Member] \| De Lange Landon [Member]
Capital Leased Assets [Line Items]
Total capital leases	7,000	10,000
November 22, 2017 [Member] \| Dell Computers [Member]
Capital Leased Assets [Line Items]
Total capital leases	2,000	4,000
May 1, 2020 [Member] \| Dell Computers [Member]
Capital Leased Assets [Line Items]
Total capital leases	$ 24,000

Capital Leases Payable (Detai49

Capital Leases Payable (Details 1) - Capital Leases [Member]	Jun. 30, 2017USD ($)
Finite-Lived Intangible Assets [Line Items]
2,017	$ 10,000
2,018	12,000
2,019	8,000
2,020	5,000
Net minimum lease payments	35,000
Less: Amount representing interest	(2,000)
Less: Taxes
Present value of net minimum lease payments	33,000
Less: Current maturities of capital lease payables	(15,000)
Long-term capital lease payables	$ 18,000

Capital Leases Payable (Detai50

Capital Leases Payable (Details Textual) - USD ($)	3 Months Ended	6 Months Ended
Capital Leases Payable (Details Textual) - USD ($)	Mar. 31, 2017	Jun. 30, 2017
Capital Leases Payable (Textual)
Lease expiration date	Dec. 31, 2016
October 1, 2018 [Member] \| De Lange Landon [Member]
Capital Leases Payable (Textual)
Lease expiration date		Oct. 1, 2018
Capital lease payable		$ 452
Tangible asset capital lease interest rate		10.00%
November 22, 2017 [Member] \| Dell Computers [Member]
Capital Leases Payable (Textual)
Lease expiration date		Nov. 22, 2017
Capital lease payable		$ 394
Tangible asset capital lease interest rate		15.09%
May 1, 2020 [Member] \| Dell Computers [Member]
Capital Leases Payable (Textual)
Lease expiration date		May 1, 2020
Capital lease payable		$ 716
Tangible asset capital lease interest rate		4.99%

Equity (Details)

Equity (Details)	6 Months Ended
Equity (Details)	Jun. 30, 2017USD ($)shares
Equity (Textual)
Senior notes converted principal amount \| $	$ 60,000
Senior notes converted common stock, shares \| shares	24,000

Stock Options and Warrants (Det

Stock Options and Warrants (Details)	6 Months Ended
Stock Options and Warrants (Details)	Jun. 30, 2017USD ($)$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate Intrinsic Value, Balance, December 31, 2016 \| $
Aggregate Intrinsic Value, Balance, June 30, 2017 \| $
Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options Balance, December 31, 2016 \| shares	273,550
Forfeited during 2017 \| shares	(38,027)
Granted during 2017 \| shares	440,000
Options Balance, June 30, 2017 \| shares	675,523
Exercisable on June 30, 2017 \| shares	341,390
Weighted- Average Exercise Price, Balance, December 31, 2016	$ 13.70
Weighted- Average Exercise Price, Forfeited during 2017	16.05
Weighted- Average Exercise Price, Granted during 2017	2.50
Weighted- Average Exercise Price, Balance, June 30, 2017	5.38
Weighted- Average Exercise Price, Exercisable on June 30, 2017	$ 9.29
Options Outstanding, Weighted-Average Remaining Contractual Life, December 31, 2016	5 years 7 days
Options outstanding, Weighted-Average Remaining Contractual Life, Granted	9 years 9 months 3 days
Options Outstanding, Weighted-Average Remaining Contractual Life	8 years 7 days
Weighted-Average Remaining Contractual Life, Exercisable	6 years 9 months 3 days
Aggregate Intrinsic Value, Balance, December 31, 2016 \| $
Aggregate Intrinsic Value, Granted
Aggregate Intrinsic Value, Forfeited
Aggregate Intrinsic Value, Balance, June 30, 2017 \| $
Aggregate Intrinsic Value, Exercisable on June 30, 2017 \| $

Stock Options and Warrants (D53

Stock Options and Warrants (Details 1) - Employee Stock Option [Member] - $ / shares	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of Shares	675,523	273,550
Options Outstanding, Weighted-Average Remaining Contractual Life	8 years 7 days
Options Outstanding, Weighted-Average Exercise Price	$ 5.38	$ 13.70
Options Exercisable, Number of Shares	341,390
Options Exercisable, Weighted-Average Exercise Price	$ 9.29
$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	532,140
Options Outstanding, Weighted-Average Remaining Contractual Life	9 years 4 months 9 days
Options Outstanding, Weighted-Average Exercise Price	$ 3.35
Options Exercisable, Number of Shares	205,728
Options Exercisable, Weighted-Average Exercise Price	$ 3.98
$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	30,300
Options Outstanding, Weighted-Average Remaining Contractual Life	9 years 2 months 5 days
Options Outstanding, Weighted-Average Exercise Price	$ 12.50
Options Exercisable, Number of Shares	22,579
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	96,845
Options Outstanding, Weighted-Average Remaining Contractual Life	2 years 9 months 29 days
Options Outstanding, Weighted-Average Exercise Price	$ 17.50
Options Exercisable, Number of Shares	96,845
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	16,238
Options Outstanding, Weighted-Average Remaining Contractual Life	4 years 11 days
Options Outstanding, Weighted-Average Exercise Price	$ 23.26
Options Exercisable, Number of Shares	16,238
Options Exercisable, Weighted-Average Exercise Price	$ 23.26

Stock Options and Warrants (D54

Stock Options and Warrants (Details 2) - USD ($)	3 Months Ended		6 Months Ended
Stock Options and Warrants (Details 2) - USD ($)	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	$ 383,000	$ 351,000	$ 653,000	$ 727,000
Research and development [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	134,000	149,000	303,000	310,000
General and administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock based compensation expense	$ 249,000	$ 202,000	$ 350,000	$ 417,000

Stock Options and Warrants (D55

Stock Options and Warrants (Details 3) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance \| shares
Granted \| shares	210,000
Vested \| shares	(65,625)
Unvested Balance \| shares	144,375
Weighted-Average Grant Price, Balance \| $ / shares
Weighted-Average Grant Price, Granted \| $ / shares	1.55
Weighted-Average Grant Price, Vested \| $ / shares
Weighted-Average Grant Price, Unvested Balance \| $ / shares	$ 1.55

Stock Options and Warrants (D56

Stock Options and Warrants (Details 4)	6 Months Ended
Stock Options and Warrants (Details 4)	Jun. 30, 2017$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance outstanding, Exercise price per share \| $ / shares	$ 3
Balance outstanding, Exercise price per share \| $ / shares	$ 3
Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Balance outstanding \| shares	5,358,881
Issued for Convertible Unsecured Notes \| shares	62,500
Issued for amendments to Backstop Security \| shares	41,000
Balance outstanding \| shares	5,462,381
Balance outstanding, Exercise price per share \| $ / shares	$ 3.77
Issued for Convertible Unsecured Notes, Exercise price per share \| $ / shares	$ 3
Issued for amendments to Backstop Security, Exercise Price \| shares	3
Balance outstanding, Exercise price per share \| $ / shares	$ 3.59

Stock Options and Warrants (D57

Stock Options and Warrants (Details 5) - $ / shares		6 Months Ended
Stock Options and Warrants (Details 5) - $ / shares		Jun. 30, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Warrants		5,462,381
Exercise Price per Share		$ 3	$ 3
2013 Services Warrants-July [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date		Jul13
Expiry Date		Jul18
Number of Warrants		9,494
Exercise Price per Share		$ 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		729
Exercise Price per Share		$ 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		2,400
Exercise Price per Share		$ 50
2014 Services Warrants-April [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[1]	Apr14
Expiry Date	[1]	Apr19
Number of Warrants	[1]	13,657
Exercise Price per Share	[1]	$ 39
2014 Services Warrants-September [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[2]	Aug14
Expiry Date	[2]	Aug19
Number of Warrants	[2]	16,000
Exercise Price per Share	[2]	$ 25
2014 PIPE Warrants-September [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[3]	Sept14
Expiry Date	[3]	Sept18
Number of Warrants	[3]	26,500
Exercise Price per Share	[3]	$ 25
2014 Services Warrants-November [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[4]	Nov14
Expiry Date	[4]	Nov18
Number of Warrants	[4]	6,500
Exercise Price per Share	[4]	$ 25
2014 Settlement Warrants-December [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[5]	Dec14
Expiry Date	[5]	Dec19
Number of Warrants	[5]	38,464
Exercise Price per Share	[5]	$ 25
2015 Senior Notes Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[6],[7]	Apr/May-15
Expiry Date	[6],[7]	Apr/May-20
Number of Warrants	[6],[7]	219,785
Exercise Price per Share	[6],[7]	$ 3
2015 Services Warrants-May [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[8]	May15
Expiry Date	[8]	May20
Number of Warrants	[8]	5,514
Exercise Price per Share	[8]	$ 12.50
2015 LOC Guarantee Warrants-November [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[9]	Nov15
Expiry Date	[9]	Nov20
Number of Warrants	[9]	74,000
Exercise Price per Share	[9]	$ 3
2015 Debt Amendment Warrants-December [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[10],[11]	Dec15
Expiry Date	[10],[11]	Dec20
Number of Warrants	[10],[11]	50,000
Exercise Price per Share	[10],[11]	$ 3
2015 PIPE Warrants-December [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[11],[12]	Dec15
Expiry Date	[11],[12]	Dec20
Number of Warrants	[11],[12]	312,500
Exercise Price per Share	[11],[12]	$ 4
2016 Debt Amendment Warrants-February [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[11],[13]	Feb16
Expiry Date	[11],[13]	Feb21
Number of Warrants	[11],[13]	50,000
Exercise Price per Share	[11],[13]	$ 3
2016 Debt Amendment Warrants-March [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[11],[14]	Mar16
Expiry Date	[11],[14]	Mar21
Number of Warrants	[11],[14]	500,000
Exercise Price per Share	[11],[14]	$ 3
2016 Unsecured Debt Warrants [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[15]	Sep-16 Jan-17
Expiry Date	[15]	Sep-21 Jan-22
Number of Warrants	[15]	374,499
Exercise Price per Share	[15]	$ 3
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		3,720,839
Exercise Price per Share		$ 3
2017 Backstop Security Amendments-April [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issue Date	[16]	Apr17
Expiry Date	[16]	Apr22
Number of Warrants	[16]	41,000
Exercise Price per Share	[16]	$ 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]	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]	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.
[8]	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.
[9]	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 14. 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. On April 27, 2017 the exercise price was reduced to $3.00 per warrant in conjunction with the amendment of the Letter of Credit described in Note 14. The Company recorded additional deferred financing charges of $30,000, representing the difference in fair value immediately before and after the repricing, and which will be amortized ratably to expense through March 31, 2018.
[10]	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.
[11]	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.
[12]	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.
[13]	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.
[14]	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.
[15]	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, December 31, 2016, and January 30, 2017 were issued with an initial exercise price of $3.00 per share. On January 30, 2017 the Company issued 62,500 warrants with an exercise price of $3.00 per share
[16]	On April 27, 2017, the Company issued a warrant to purchase 41,000 shares of common stock at an exercise price of $3.00 per share in conjunction with the amendment of the Letter of Credit described in Note 14. The warrant was valued using the Black-Scholes option pricing model at $26,000, which will be recorded to deferred financing charges and amortized to expense ratably through the end of March 2018.

Stock Options and Warrants (D58

Stock Options and Warrants (Details Textual) - USD ($)		Dec. 01, 2016	Nov. 01, 2016	Sep. 01, 2016	Aug. 24, 2016	Dec. 31, 2015	Dec. 30, 2015	Nov. 02, 2015	May 07, 2015	May 01, 2015	Apr. 23, 2015	Dec. 15, 2014	Dec. 01, 2014	Apr. 27, 2017	Jan. 30, 2017	Dec. 31, 2016	Dec. 31, 2016	Mar. 31, 2016	Feb. 02, 2016	Nov. 26, 2014	Sep. 22, 2014	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Aug. 22, 2016	Sep. 03, 2015	Jul. 15, 2015	Jul. 01, 2013
Stock Options and Warrants (Textual)
Class of Warrant or Right, Exercise Price of Warrants or Rights																$ 3	$ 3					$ 3		$ 3
Common stock, shares authorized																200,000,000	200,000,000					200,000,000		200,000,000		200,000,000
Stock-based compensation																						$ 653,000	$ 727,000
Warrants issued to purchase common stock													8,462			187,500
Warrants valued using Black-Scholes Option pricing model																						73,000
Debt discount recorded upon issuance of warrants																$ 305,000							$ 148,000
Outstanding warrants exercisable																						5,462,381
Stock Option [Member]
Stock Options and Warrants (Textual)
Description of 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 granted contract term																						8 years 7 days
Options vesting period																						4 years
Options vesting percentage																						25.00%
Total unrecognized deferred stock compensation																						$ 1,500,000
Weighted-average vesting periods																						3 years 10 months 14 days
Options outstanding																273,550	273,550					675,523		273,550
Options exercisable, number of shares																						341,390
Weighted average exercise price																						$ 9.29
2014 Services Warrants - April [Member]
Stock Options and Warrants (Textual)
Class of Warrant or Right, Exercise Price of Warrants or Rights	[1]																					39
Exercise price per share																						$ 11.50
Outstanding warrants exercisable	[1]																					13,657
2014 Convertible Notes Warrants [Member]
Stock Options and Warrants (Textual)
Class of Warrant or Right, Exercise Price of Warrants or Rights	[2]																					$ 25
Outstanding warrants exercisable	[2]																					16,000
2014 Services Warrants - September [Member]
Stock Options and Warrants (Textual)
Class of Warrant or Right, Exercise Price of Warrants or Rights	[3]																					$ 25
Exercise price per share																						$ 39
Outstanding warrants exercisable	[3]																					26,500
2013 Equity Incentive Plan [Member]
Stock Options and Warrants (Textual)
Maximum number of common shares authorized to purchase																						440,000						420,000
Options outstanding																						235,523
Options exercisable, number of shares																						195,373
2015 Omnibus Incentive Plan [Member]
Stock Options and Warrants (Textual)
Maximum number of common shares authorized to purchase																						27,465			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																						440,000
Options outstanding																6,000	6,000							6,000
Options exercisable, number of shares																						146,016
Minimum [Member]
Stock Options and Warrants (Textual)
Options granted contract term																						3 years
Maximum [Member]
Stock Options and Warrants (Textual)
Options granted contract term																						10 years
Restricted Stock [Member]
Stock Options and Warrants (Textual)
Description of vesting right																						The remaining unvested restricted shares vest 33% per year on March 31, 2018, 2019, and 2020.
Restricted stock issued																						210,000
Warrants [Member]
Stock Options and Warrants (Textual)
Class of Warrant or Right, Exercise Price of Warrants or Rights																$ 3.77	$ 3.77					$ 3.59		$ 3.77
Exercise price per share														$ 3
Deferred financing charges														$ 30,000
Warrants [Member] \| Black Scholes Option Pricing Model [Member]
Stock Options and Warrants (Textual)
Warrants issued to purchase common stock														41,000
Exercise price per share														$ 3
Deferred financing charges														$ 26,000
Warrants [Member] \| Minimum [Member]
Stock Options and Warrants (Textual)
Exercise price per share					$ 4
Reduction in warrants exercise price					3
Warrants [Member] \| Maximum [Member]
Stock Options and Warrants (Textual)
Exercise price per share					12.50
Reduction in warrants exercise price					$ 3
Warrant 1 [Member]
Stock Options and Warrants (Textual)
Weighted average remaining life of warrants																						4 years 1 month 27 days
Warrants issued to purchase common stock		62,500	62,500	124,999		312,500	50,000	74,000	83,518	5,514	136,267	19,232	19,232		62,500		250,000	500,000	50,000	6,500	26,500	62,500		62,500
Warrant issued value																				$ 43,000	$ 296,000
Exercise price per share		$ 3		$ 4		$ 5	$ 12.50	$ 15	$ 12.50	$ 12.50	$ 12.50	$ 25	$ 39		$ 3			$ 5	$ 12.50	$ 25	$ 25			$ 3
Warrants valued using Black-Scholes Option pricing model				$ 271,000				$ 246,000	$ 2,139,000	$ 56,000	$ 2,139,000		$ 246,000					$ 1,497,000	$ 148,000
Reduction in warrants exercise price																		$ 5
Warrant term																								5 years
Weighted average exercise price																						$ 3.59
Convertible Unsecured Notes Warrant [Member]
Stock Options and Warrants (Textual)
Exercise price per share		$ 4	$ 4	$ 4																		$ 3
Reclassification of warrants previously recorded as derivative liabilities to paid in capital																						$ 30,000
Convertible Unsecured Notes Warrant [Member] \| 2014 Services Warrants - September [Member]
Stock Options and Warrants (Textual)
Stock-based compensation																					$ 6,000
Warrant issued value																					$ 131,000
Exercise price per share																					$ 25

[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.

Commitments and Contingencies59

Commitments and Contingencies (Details)	Jun. 30, 2017USD ($)
Commitments and Contingencies [Abstract]
Six months ending December 31, 2017	$ 61,000
Year ending December 31, 2018	125,000
Year ending December 31, 2019	128,000
Year ending December 31, 2020	32,000
Total	$ 346,000

Commitments and Contingencies60

Commitments and Contingencies (Details Textual)	Nov. 02, 2015USD ($)	Jul. 31, 2017USD ($)	Apr. 30, 2017USD ($)	Apr. 27, 2017	Mar. 31, 2017USD ($)ft²	Jun. 30, 2017USD ($)	Apr. 01, 2017ft²	Dec. 31, 2016USD ($)
Commitments and Contingencies (Textual)
Area of lease property \| ft²					32,649		4,960
Operating leases monthly rent expense					$ 15,000
Lease expiration date					Dec. 31, 2016
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.
Future license payments			$ 1,760,000
Credit of license payments			1,200,000
Additional discount of license payments			$ 560,000
Accrued claims						$ 124,000		$ 124,000
Equity Method Investment, Ownership Percentage				4.99%
Letter of Credit [Member]
Commitments and Contingencies (Textual)
Letter of credit, Description				The BSSA Amendment (i) reduces the security obligation underlying the Letter of Credit from $2.1 million to $500,000, consistent with the current terms of the CMLA, (ii) extends the term of the backstop security to March 31, 2018, (iii) reduces the related fee payable under the Support Agreement to 1% per month for the remainder of the term, (iv) provided for the amendment and restatement of the warrant issued to the investor in connection with the execution of the Support Agreement in order to reduce the exercise price per share of common stock of to $3.00 and insert a beneficial ownership blocker provision at 4.99% (as amended and restated, the “Restated Warrant”) and (v) provided that the Company would issue the investor an additional warrant to purchase 41,000 shares of Common Stock at an exercise price of $3.00 per share, subject to a 4.99% beneficial ownership blocker.
January through March 2017 [Member]
Commitments and Contingencies (Textual)
Rent expense net of sublease income					$ 10,168
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.
Subsequent Event [Member]
Commitments and Contingencies (Textual)
Future license payments		$ 250,000
Credit of license payments		365,000
Additional discount of license payments		$ 115,000
Standby Letter of Credit [Member]
Commitments and Contingencies (Textual)
Lease agreement, Description	Replacement of the Letter of Credit with an alternative Backstop Security in favor of Dresser-Rand, (b) Dresser-Rand eliminating the Backstop Security 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