Vislink (VISL) S-126 Mar 14IPO registrationFinancial data

Company Profile

Document_And_Entity_Informatio

Document And Entity Information	12 Months Ended
Document And Entity Information	Dec. 31, 2013
Document Information [Line Items]	'
Entity Registrant Name	'xG TECHNOLOGY, INC.
Entity Central Index Key	'0001565228
Document Type	'S-1
Amendment Flag	'false
Document Period End Date	31-Dec-13
Entity Filer Category	'Smaller Reporting Company

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Dec. 31, 2013		Dec. 31, 2012
In Thousands, unless otherwise specified	Dec. 31, 2013		Dec. 31, 2012
ASSETS	'		'
Cash	$5,517		$271
Inventory	2,916		0
Accounts Receivable, net of allowance of $16 ($470 from related party, net of allowance of $10)	788		0
Prepaid expenses and other current assets	49		16
Due from related party	1,350		0
Total current assets	10,620		287
Property and equipment, net	806		1,725
Intangible assets, net	18,196		17,608
Total assets	29,622		19,620
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	'		'
Accounts payable	1,841		655
Accrued expenses	772		754
Accrued bonuses	298		2,633
Accrued interest	42		42
Accrued interest to related parties	0		1,127
Due to related party	1,526		1,098
Deferred revenue - related party	480		0
Obligation under capital lease	129		0
Convertible notes payable to related party	0		17,198
Total current liabilities	5,088		23,507
Long-term obligation under capital lease	118		0
Convertible notes payable	2,000		2,000
Total liabilities	7,206		25,507
Commitments	'		'
Stockholdersâ€™ equity (deficit)	'		'
Series A Convertible Preferred Stock - $0.01 par value per share:10,000,000 and 25,000,000 shares authorized, none issued or outstanding as of December 31, 2013 and 2012	0		0
Common stock, - $0.00001 par value, 300,000,000 and 250,000,000 shares authorized, 18,682,310 and 6,041,946 shares issued as of December 31, 2013 and 2012,respectively	0	[1]	0	[1]
Additional paid in capital	174,000		118,247
Accumulated deficit	-151,562		-124,112
Treasury stock, at cost - 2,284 shares as of December 31, 2013 and 2012, respectively	-22		-22
Total stockholders' equity (deficit)	22,416		-5,887
Total liabilities and stockholders' equity	$29,622		$19,620

[1]	Less than $1

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	300,000,000	250,000,000
Common stock, shares issued	18,682,310	6,041,946
Treasury stock, shares	2,284	2,284
Allowance for Doubtful Accounts Receivable, Current	$16,000	$0
Allowance for Doubtful Other Receivables, Current	10,000	'
Accounts Receivable Related Parties Net Current	$470,000	'
Series A Convertible Preferred Stock [Member]	'	'
Preferred stock, par value (in dollars per share)	$0.01	$0.01
Preferred stock, shares authorized	10,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0

STATEMENTS_OF_OPERATIONS

STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Revenue	$406	$0
Cost of revenue and operating expenses	'	'
Cost of components and personnel	102	0
General and administrative expenses	5,501	5,543
Development	5,468	4,806
Stock based compensation	796	554
Amortization and depreciation	2,370	2,063
Total cost of revenue and operating expenses	14,237	12,966
Loss from operations	-13,831	-12,966
Other income (expense)	'	'
Other expense	-10,068	0
Inducement expense	-391	0
Interest expense, net	-2,227	-535
Impairment	-933	-286
Total other income (expense)	-13,619	-821
Loss before income tax provision	-27,450	-13,787
Income tax provision	0	0
Net loss	($27,450)	($13,787)
Basic and diluted net loss per share (in dollars per share)	($2.86)	($2.29)
Weighted average number of shares outstanding basic and diluted (in shares)	9,598	6,031

STATEMENTS_OF_STOCKHOLDERS_EQU

STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)	Total	Common Stock [Member]		Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit during Development Stage [Member]
In Thousands, except Share data	Total	Common Stock [Member]		Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit during Development Stage [Member]
Balance at Dec. 31, 2011	$6,677	$0	[1]	$117,012	($10)	($110,325)
Balance (in shares) at Dec. 31, 2011	'	6,016,455		'	'	'
Net loss	-13,787	0		0	0	-13,787
Stock based compensation	410	0		410	0	0
Compensation granted in stock	97	0	[1]	97	0	0
Compensation granted in stock (in Shares)	'	3,217		'	'	'
Issuance of stock for inducement of 2011 Convertible note payable	400	0	[1]	400	0	0
Issuance of common shares (in shares)	'	11,428		'	'	'
Exercise of options	5	0	[1]	5	0	0
Exercise of options (in shares)	'	660		'	'	'
Purchase of treasury stock	-12	0		0	-12	0
Issuance of stock in exchange for payment of interest on convertible debt	180	0	[1]	180	0	0
Issuance of stock in exchange for payment of interest on convertible debt (shares)	'	10,186		'	'	'
Conversion of 2011 Convertible Note Payable Principal Balance	0	'		'	'	'
Issuance of warrants for the Bridge Loan and extinguishment	143	0		143	0	0
Balance at Dec. 31, 2012	-5,887	0	[1]	118,247	-22	-124,112
Balance (in shares) at Dec. 31, 2012	'	6,041,946		'	'	'
Net loss	-27,450	0		0	0	-27,450
Stock based compensation	796	0		796	0	0
Compensation granted in stock	94	0	[1]	94	0	0
Compensation granted in stock (in Shares)	'	15,242		'	'	'
Exercise of options (in shares)	93,805	857,250		'	'	'
Issuance of stock in exchange for payment of interest on convertible debt	180	0	[1]	180	0	0
Issuance of stock in exchange for payment of interest on convertible debt (shares)	'	41,672		'	'	'
Conversion of 2011 Convertible Note Payable Principal Balance	15,000	0	[1]	15,000	0	0
Conversion of 2011 Convertible Note Payable Principal Balance (in shares)	'	1,127,820		'	'	'
Issuance of stock for inducement of 2011 Convertible note payable	0	0	[1]	0	0	0
Stock Issued During Period, Shares, New Issues (in shares)	'	159,330		'	'	'
Issuance of stock for conversion of Bridge Loan and extinguishment	11,480	0	[1]	11,480	0	0
Issuance of stock for conversion of Bridge Loan and extinguishment (in shares)	'	2,187,529		'	'	'
Issuance of Warrants - conversion of bridge loan	392	0		392	0	0
Issuance of warrants for the Bridge Loan and extinguishment	401	0		401	0	0
Issuance of shares and warrants - IPO	6,751	0	[1]	6,751	0	0
Issuance of shares and warrants - IPO (in shares)	'	1,337,792		'	'	'
Issuance of shares and warrants - IPO over-allotment	1,027	0	[1]	1,027	0	0
Issuance of shares and warrants - IPO over-allotment (in shares)	'	200,668		'	'	'
Issuance of - shares, warrants, and modification of options for one-time agreement with MBTH	10,067	0	[1]	10,067	0	0
Issuance of - shares, warrants, and modification of options for one-time agreement with MBTH (in shares)	'	1,599,453		'	'	'
Issuance of shares and warrants - secondary offering	9,147	0	[1]	9,147	0	0
Issuance of shares and warrants - secondary offering (in shares)	'	5,715,000		'	'	'
Issuance of stock - secondary offering exercise of over-allotment	415	0	[1]	415	0	0
Issuance of stock - secondary offering exercise of over-allotment (in shares)	'	255,000		'	'	'
Issuance of stock from exercise of warrants	3	0	[1]	3	0	0
Issuance of stock from exercise of warrants (in shares)	'	858		'	'	'
Balance at Dec. 31, 2013	$22,416	$0	[1]	$174,000	($22)	($151,562)
Balance (in shares) at Dec. 31, 2013	'	18,682,310		'	'	'

[1]	Less than $1

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities	'	'
Net loss	($27,450)	($13,787)
Adjustments to reconcile net loss to net cash used in operating activities	'	'
Stock based compensation	796	554
Share-based consulting and other services	94	100
Allowance for doubtful accounts	16	0
Depreciation and amortization	2,370	2,063
Impairment	933	286
Accretion of financing instruments	176	0
Amounts paid by affiliate on behalf of xG	0	1,500
Inducement expense	391	0
Other expense	10,068	0
Non-cash interest expense	601	0
Reversal of 2011 and 2012 accrued bonus expense	-2,335	0
Changes in assets and liabilities	'	'
Accounts receivable	-804	0
Inventory	-2,621	0
Prepaid expenses and other current assets	293	28
Accounts payable	1,186	-32
Accrued expenses	21	191
Accrued bonuses	0	1,258
Accrued interest and fees	1,300	1,180
Deferred revenue - related party	480	0
Due to related party	91	1,098
Net cash used in operating activities	-14,395	-5,561
Cash flows from investing activities	'	'
Capital expenditures for property and equipment	-294	-515
Capitalization of intangible assets	-2,602	-4,491
Net cash used in investing activities	-2,896	-5,006
Cash flows from financing activities	'	'
Repayment of capital lease	-123	0
Proceeds from convertible notes payable	450	10,315
Proceeds from convertible bridge loan payable ($2,727 to related party)	4,994	0
Repayment of convertible bridge loan payable	-125	0
Proceeds from issuance of common stock	17,340	400
Purchase of treasury stock	0	-12
Proceeds from exercise of options	0	2
Proceeds from issuance of warrants	1	0
Net cash provided by financing activities	22,537	10,705
Net increase in cash	5,246	138
Cash, beginning of year	271	133
Cash, end of year	5,517	271
Supplemental cash flow disclosures of investing and financing activities	'	'
Conversion of 2011 Convertible Note Payable Principal Balance	15,000	0
Conversion of convertible bridge loan payable including interest and fees	9,023	0
Interest and fees refinanced under the bridge loan	5,408	0
Due to related party refinanced under the bridge loan	1,393	0
Related party amount refinanced under the bridge loan	1,013	0
Capital lease obligation for property and equipment	370	0
Reclass of fixed asset to inventory	293	0
Stock issued as payment for interest on convertible notes	$180	$180

STATEMENTS_OF_CASH_FLOWS_Paren

STATEMENTS OF CASH FLOWS (Parenthetical) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013
Proceeds from Related Party Debt	$2,727

NATURE_OF_OPERATIONS

NATURE OF OPERATIONS	12 Months Ended
NATURE OF OPERATIONS	Dec. 31, 2013
Accounting Policies [Abstract]	'
Nature of Operations [Text Block]	'
	1 — NATURE OF OPERATIONS

	Description of Business

	xG Technology, Inc. (the “Company”) is a Delaware corporation that has developed a broad portfolio of innovative intellectual property that we believe will enhance wireless communications. Our intellectual property is embedded in proprietary software algorithms designed to offer cognitive interference mitigation and spectrum access solutions to organizations in a wide variety of industries, including national defense and rural broadband, which represent the primary vertical markets that the Company is initially targeting.

GOING_CONCERN

GOING CONCERN	12 Months Ended
GOING CONCERN	Dec. 31, 2013
Going Concern [Abstract]	'
Going Concern Disclosure [Text Block]	'
	2— GOING CONCERN

	The financial statements have been prepared in conformity with generally accepted accounting principles which contemplate continuation of the Company as a going concern. As of December 31, 2013, the Company has an accumulated deficit of $151,562,000 and a net loss of $27.5 million for the year then ended. This and other factors raise substantial doubt about the Company’s ability to continue as a going concern.

	The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital, obtain other means of financing, and to fulfill its existing backlog. As of March 6, 2014, the Company has a total backlog of $34.6 million. The ability to recognize revenue and ultimately cash receipts, on the existing backlog is contingent upon, but not limited to, acceptable performance of the delivered equipment and services. The Company began fulfilling orders associated with its back log during the fourth quarter of 2013. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Cash and Cash Equivalents

The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents. At times, the Company’s cash balances may exceed the current insured amounts under the Federal Deposit Insurance Corporation.

Concentrations of Credit Risk for Cash

The Company does not have any off-balance-sheet concentrations of credit risk. The Company expects cash to be the single asset most likely to subject the Company to concentration of credit risk. The Company’s policy is to maintain its cash with high credit quality financial institutions to limit its risk of loss exposure.

During the year, the Company had cash balances in excess of the federally insured limits of $250,000. The funds are on deposit with Wells Fargo Bank, N.A. Consequently, the Company does not believe that there is a significant risk having these balances in one financial institution. The Company has not experienced any losses in its bank accounts through December 31, 2013.

Inventory

Inventories, consisting principally of raw materials and finished goods, are carried at the lower of cost or market. Cost is determined using the first-in, first-out (FIFO) method. Raw materials consist of purchased parts, components and work in process. The Company evaluates inventory balances and adjusts inventory to the lower of cost or market based upon anticipated usage of the inventory and the potential for obsolescence.

Intangible Assets

Capitalized software costs incurred in the research, design and development of software for sale to others as a separate product or embedded in a product and sold as part of the product as a whole are charged to expense until technological feasibility is established and amortized on a straight-line basis over five years, beginning when the products are offered for sale or the enhancements are integrated into the products. Management is required to use its judgment in determining whether capitalized software costs meet the criteria for immediate expense or capitalization, in accordance with Generally Accepted Accounting Principles (“GAAP”). The unamortized capitalized costs of a computer software product are compared to the net realizable value of that product and any excess is written off.

The Company’s proprietary software solutions operate in a fast changing industry that may generate unknown methods of detecting and monitoring disturbances that could render our technology inferior, resulting in the Company’s results of operations being materially adversely affected. The Company does, however, closely monitor trends and changes in technologies and customer demand that could adversely impact its competitiveness and overall success. It is reasonably possible that those estimates of anticipated future gross revenues, the remaining estimated economic life of the product, or both will be reduced significantly in the near term due to competitive pressures. As a result, the carrying amount of the capitalized software costs for the Company’s products may be reduced materially in the near term.

Costs incurred for product enhancements are charged to expense as research and development until the technological feasibility of the enhancement has been established. These enhancements are amortized on a straight line basis over the useful life of the product enhancement which is currently estimated to be five years beginning when the enhancements are integrated into the products that are offered for sale.

The Company’s software is inherently complex and may contain defects and errors that are only detectable when the products are in use. Such defects or errors could have a serious impact on our end customers, which could damage our reputation, harm our customer relationships and expose us to liability. Defects in the Company’s software could adversely affect our ability and that of our customers to ship products on a timely basis as well as customer or licensee demand for our products. Any such delays or declines in demand could reduce the Company’s revenues and harm our ability to achieve or sustain desired levels of profitability. We and our customers may also experience component or software failures or defects that could require significant product recalls, rework and/or repairs that are not covered by warranty reserves. Intellectual property is embedded in proprietary software algorithms that offer cognitive spectrum access and interference mitigation solutions.

Patents and licenses are measured initially at purchase cost and are amortized on a straight line basis over their useful lives which range between 18.5 to 20 years.

Property, Plant and Equipment

Property, plant and equipment are presented at cost at the date of acquisition. Depreciation is computed using the straight-line method over estimated useful asset lives, which range from 3 to 7 years commencing the month following the purchase.

Impairment of Long-Lived Assets

Long lived assets including certain intangible assets with finite lives are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the undiscounted future net cash flows expected to be generated by that asset. If the carrying amount of an asset exceeds its estimated future undiscounted cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Impairment of intangible assets amounted to $37,000 and $18,000 for the years ended December 31, 2013 and 2012, respectively. Impairment of property and equipment amounted to $896,000 and $268,000 for the years ended December 31, 2013 and 2012, respectively.

Allowance for Doubtful Accounts

In the event that management determines that a receivable becomes uncollectible, or events or circumstances change, which result in a temporary cessation of payments from the customer, we will make our best estimate of probable or potential losses in our accounts receivable balance using he allowance method for each quarterly period. Management will periodically review the receivables at the end of each quarterly reporting period and the appropriate accrual will be made based on current available evidence and historical experience. Allowance for doubtful accounts were $16,000 and $0 for the years ended December 31, 2013 and 2012, respectively.

Revenue Recognition

The Company recognizes revenues when persuasive evidence of an arrangement exists, services have been rendered, the price is fixed and determinable, and collectability is reasonably assured. Revenues from management and consulting, time-and-materials service contracts, maintenance agreements and other services are recognized as the services are provided or at the time the goods are shipped and title as passed.

Development Expenses

Development expenses consist primarily of salaries and related costs for technical and programming personnel, are expensed as incurred and were $5,468,000 and $4,806,000 for the years ended December 31, 2013 and 2012, respectively.

Income Taxes

The Company accounts for income taxes using the assets and liability method. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the tax rate is recognized in income or expense in the period that the change is effective. Tax benefits are recognized when it is probable that the deduction will be sustained. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized.

The Company files a U.S. federal and state income tax return. The Company recognizes liabilities for uncertain tax positions based on the two-step process prescribed by GAAP. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. The Company reevaluates these uncertain tax positions on a quarterly basis. This evaluation is based on factors including, but not limited to, changes in facts or circumstances, changes in tax law, effectively settled issues under audit, and new audit activity. Such a change in recognition or measurement would result in the recognition of a tax benefit or an additional charge to the tax provision in the period. The Company recognizes interest and penalties as incurred in finance income (expense), net in the Statements of Operations. There were no liabilities recorded for uncertain tax positions at December 31, 2013 and 2012.

Stock Based Compensation

The Company accounts for stock-based awards to employees in accordance with applicable accounting principles, which requires compensation expense related to share-based transactions, including employee stock options, to be measured and recognized in the financial statements based on a determination of the fair value of the stock options.

The grant date fair value is determined using the Black-Scholes-Merton (“Black-Scholes”) pricing model. For all employee stock options, the Company recognizes expense over the employee’s requisite service period (generally the vesting period of the equity grant). The Company’s option pricing model requires the input of highly subjective assumptions, including the expected stock price volatility, expected term, and forfeiture rate. Any changes in these highly subjective assumptions significantly impact stock-based compensation expense.

Options awarded to purchase shares of common stock issued to non-employees in exchange for services are accounted for as variable awards in accordance with applicable accounting principles. Such options are valued using the Black-Scholes option pricing model.

Treasury Stock

Shares of common stock repurchased are recorded at cost as treasury stock. When shares are reissued, the cost method is used for determining cost. In accordance with GAAP, the excess of the acquisition cost over the reissuance price of the treasury stock, if any, is recorded to additional paid-in capital, limited to the amount previously credited to additional paid-in capital, if any. Any excess is charged to accumulated deficit.

Earnings Per Share

Basic earnings per common share amounts are based on weighted average number of common shares outstanding. Diluted earnings per share amounts are based on the weighted average number of common shares outstanding, plus the incremental shares that would have been outstanding upon the assumed exercise of all potentially dilutive stock options, warrants and convertible stock, subject to anti-dilution limitations. All such potentially dilutive instruments were anti-dilutive as of December 31, 2013 and 2012. At December 31, 2013 and 2012 approximately 5.29 million and 2.05 million shares underlying the convertible debentures, options and warrants were anti-dilutive.

Warranty Reserve

The Company established a warranty reserve policy effective for the fiscal year ending December 31, 2013. Although the Company tests its product in accordance with its quality programs and processes, its warranty obligation is affected by product failure rates and service delivery costs incurred in correcting a product failure. Should actual product failure rates or service costs differ from the Company’s estimates, which are based on limited historical data, where applicable, revisions to the estimated warranty liability would be required. The warranty reserve for the fiscal year ending December 31, 2013 and 2012 was $8,000 and $0, respectively.

Fair Value of Financial Instruments

Generally accepted accounting principles require disclosing the fair value of financial instruments to the extent practicable for financial instruments which are recognized or unrecognized in the balance sheet. The fair value of the financial instruments disclosed herein is not necessarily representative of the amount that could be realized or settled, nor does the fair value amount consider the tax consequences of realization or settlement.

In assessing the fair value of financial instruments, the Company uses a variety of methods and assumptions, which are based on estimates of market conditions and risks existing at the time. For certain instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, it was estimated that the carrying amount approximated fair value because of the short maturities of these instruments. All debt is based on current rates at which the Company could borrow funds with similar remaining maturities and approximates fair value.

GAAP establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use on unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is described below:

Level 1:

Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2:

Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3:

Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2013, consistent with the fair value hierarchy provisions:

Quoted Prices

Significant Other Observable Inputs (Level 2)

Significant Unobservable Inputs (Level 3)

Carrying Amount

in Active Markets for Identical

Assets/Liabilities

(Level 1)

Assets:

Cash

5,517,000

—

5,517,000

Liabilities:

Convertible notes payable

—

90,000

—

2,000,000

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2012, consistent with the fair value hierarchy provisions:

Quoted Prices

Significant Other Observable Inputs (Level 2)

Significant Unobservable Inputs (Level 3)

Carrying Amount

in Active Markets for Identical Assets/Liabilities

(Level 1)

Assets:

Cash

271,000

—

271,000

Liabilities:

Convertible notes payable

—

10,595,533

—

19,198,000

Recently Issued Accounting Principles

We are an “emerging growth company” as defined in the Jumpstart Our Business Startups Act of 2012, or JOBS Act. We will remain an emerging growth company for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our annual gross revenue exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Exchange Act, which would occur if the market value of our common stock that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three-year period. Pursuant to Section 107 of the JOBS Act, we have elected to utilize the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2013
Inventory Disclosure [Abstract]	'
Inventory Disclosure [Text Block]	'
	4 — INVENTORY

	Inventories included in the accompanying balance sheet are stated at the lower of cost or market as summarized below:

		December		December
		31,		31,
		2013		2012
	Raw materials consisting of purchased parts, components and work in	$	2,461,000	$	—
	process
	Finished goods		455,000		—
	Total Inventory	$	2,916,000	$	—

	Based upon the Company’s analysis of the lower of cost or market, there was no reserve for inventory recorded as of December 31, 2013.

ACCOUNTS_RECEIVABLE

ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2013
Receivables [Abstract]	'
Financing Receivables [Text Block]	'
	5 — ACCOUNTS RECEIVABLE

	Accounts receivable consist of the following:

		December 31,		December 31,
		2013		2012
	Accounts receivable	$	324,000	$	—
	Accounts receivable – related party		480,000		—
	Net allowance for doubtful accounts		-16,000		—
	Net accounts receivable	$	788,000	$	—

PROPERTY_AND_EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
PROPERTY AND EQUIPMENT	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment Disclosure [Text Block]	'
	6 — PROPERTY AND EQUIPMENT

	Property and equipment consist of the following:

			December 31,
		Useful Life (years)	2013		2012
	Cost:
	Furniture and equipment	3 – 7 years	$	2,633,000	$	1,970,000
	Hardware	4 – 5 years		—		2,486,000
				2,633,000		4,456,000
	Accumulated depreciation:			-1,827,000		-2,731,000
	Property and equipment, net		$	806,000	$	1,725,000

	Depreciation of property and equipment amounted to $393,000 and $662,000 for the years ended December 31, 2013 and 2012, respectively. Impairment of property and equipment amounted to $896,000 and $268,000 for the years ended December 31, 2013 and 2012, respectively. We also reclassified $293,000 of hardware supplies into inventory in 2013. The impairment charge of $896,000 in 2013 was related to hardware with a cost of $2,193,000 and an accumulated depreciation of $1,297,000.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	12 Months Ended
INTANGIBLE ASSETS	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Intangible Assets Disclosure [Text Block]	'
	7 — INTANGIBLE ASSETS

	Intangible assets consist of the following:


		Software Development Costs				Patents & Licenses
		Cost		A.A.		Cost		A.A.		Total
	Balance as of December 31, 2011	$	7,975,000	$	-479,000	$	12,051,000	$	-5,010,000	$	14,537,000
	Additions		4,251,000		—		239,000		—		4,490,000
	Impairments		—		—		-18,000		—		-18,000
	Amortization		—		-782,000		—		-619,000		-1,401,000
	Balance as of December 31, 2012	$	12,226,000	$	-1,261,000	$	12,272,000	$	-5,629,000	$	17,608,000
	Additions		2,562,000		—		39,000		—		2,601,000
	Impairments		—		—		-36,000		—		-36,000
	Amortization		—		-1,313,000		—		-664,000		-1,977,000
	Balance as of December 31, 2013	$	14,788,000	$	-2,574,000	$	12,275,000	$	-6,293,000	$	18,196,000

	Amortization of intangible assets amounted to $1,977,000 and $1,401,000 for 2013 and 2012, respectively. The total cost basis of intangible assets at December 31, 2013 was $27.1 million which consists of $26.8 million of costs that are subject to amortization at December 31, 2013 and $0.3 million of assets that are not subject to amortization at December 31, 2013.

	Software Development Costs:

	At December 31, 2013 the Company has capitalized a total of $14.8 million of software development costs. On September 26, 2013, the Company received the last remaining certification from the FCC needed for the xMax cognitive radio products. The xMax cognitive radio products include the xAP, xMod, xVM and xMSC. Beginning on September 30, 2013, Management determined that the xMax cognitive radio products were available for sale and these products will be amortized on a straight line basis over an estimated life of five years. The Company recognized amortization of software development costs available for sale of $1.3 million and $0.8 million in 2013 and 2012. Since October 1, 2013, the Company has been focusing on the enhancement of the xMax cognitive radio products. These costs are not being amortized considering that the enhancement is yet incorporated in products and available for sale.

	Patents & Licenses:

	At December 31, 2013 the Company has capitalized a total of $12.3 million of patents & licenses. Included in the capitalized costs is $12.2 million of costs associated with patents and licenses that have been filed. Also included in the capitalized costs is $0.1 million of costs associated with provisional patents and pending applications which have not yet been filed.

	The Company amortizes patents and licenses that have been filed over their useful lives which range between 18.5 to 20 years. The costs of provisional patents and pending applications is not amortized until the patent is filed and is reviewed each reporting period to determine if it is likely that the patent will be successfully filed. The Company recognized $0.7 million of amortization expense related to patents and licenses in each of the years ended December 31, 2013 and 2012.

	Estimated amortization expense for the succeeding five years is as follows:

	2014	$	3,590,000
	2015		3,590,000
	2016		3,127,000
	2017		2,809,000
	2018 and thereafter		4,840,000
		$	17,956,000

OBLIGATION_UNDER_CAPITAL_LEASE

OBLIGATION UNDER CAPITAL LEASE	12 Months Ended
OBLIGATION UNDER CAPITAL LEASE	Dec. 31, 2013
Leases, Capital [Abstract]	'
Capital Leases in Financial Statements of Lessee Disclosure [Text Block]	'
	8 — OBLIGATION UNDER CAPITAL LEASE

	The future minimum payments for capital leases as at December 31, 2013 are as follows:

	2014	$	129,000
	2015		128,000
	Total minimum lease payments		257,000
	Less amount representing interest		10,000
	Present value of the net minimum lease payments		247,000
	Less obligations under capital lease maturing within one year		129,000
	Long-term portion of obligations under capital lease	$	118,000

	During 2013, the Company financed certain capital expenditures totaling $257,000 through the issuance of capital leases. The interest rate for this transaction was 4%.

CONVERTIBLE_NOTES_PAYABLE

CONVERTIBLE NOTES PAYABLE	12 Months Ended
CONVERTIBLE NOTES PAYABLE	Dec. 31, 2013
Debt Disclosure [Abstract]	'
Debt Disclosure [Text Block]	'
	9 —CONVERTIBLE NOTES PAYABLE

	On May 19, 2011, the Company entered into a convertible promissory note (the “May 2011 Convertible Note”) whereby the Company borrowed principal advances in the amount of up to $15 million with MBTH (subject to increase by mutual agreement). The loan was payable on final maturity, May 19, 2016, or earlier demand, and was convertible, at MBTH’s option, into shares of the Company at a price of $26.25 per share. Interest was payable semi-annually in cash or shares, at the Company’s option, at the rate of 8% per year. Additionally, a facility fee of 2% was payable by the Company at maturity. The loan facility was secured against substantially all of the assets of the Company. As of December 31, 2012, the Company had drawn down $17.2 million of principal balance under the May 2011 Convertible Note and accrued interest and fees at December 31, 2012 was $1.1 million.

	The Company drew down an additional $450,000 on the May 2011 Convertible Note with MBTH from January 1, 2013 through January 16, 2013 to finance operating activities of the Company. Additionally, the Company accrued additional interest and fees of $266,000 from January 1, 2013 through January 16, 2013.

	On January 16, 2013, the Company entered into several agreements as part of negotiations to induce MBTH to convert $15.0 million of the principal balance under the May 2011 Convertible Loan. As part of these negotiations, the Company entered into Amendment Number 1 to the May 2011 Convertible Loan Facility whereby the Company modified the conversion price on the May 2011 Convertible Loan from $26.25 to $13.30 (the “Modified Strike Price”). In addition, the Company agreed to issue MBTH 142,857 common shares upon the exercise in full of MBTH’s conversion rights, termination of the May 2011 Shareholder Loan and the discharge of all MBTH’s collateral over the Company’s assets.

	The Company agreed to modify the exercise price on two options representing 571,428 underlying common shares granted to MBTH under the February 2011 Convertible Loan from $17.50 with respect to an option for 285,714 underlying shares and $35.00 with respect to an option for 285,714 common shares to the Modified Strike Price of $13.30. The Company also agreed to compensate MBTH for funding and other costs assumed by MBTH by issuing MBTH 16,474 common shares at the Modified Strike Price for the difference between the interest rate of 8% that the Company owed to MBTH under the May 2011 Convertible Loan and the interest rate of 9.5% that MBTH pays to investors for monies raised by MBTH.

	The Company agreed to grant MBTH a warrant to subscribe for 42,857 common shares (the “42,857 Warrant”) with an exercise price of $0.35 per share. The 42,857 Warrant is contingent upon shareholders of MBTH electing to exercise a warrant issued to them by MBTH (the “MBTH Warrant”) in xG Technology, Inc. common shares. If the MBTH shareholder elect not to exercise the MBTH Warrant or they elect to exercise a portion or all of the MBTH Warrant into shares of MBTH, a proportionate number of common shares under the 42,857 Warrant will be issued to MBTH.

	The Company agreed to award MBTH an option for 142,857 common shares with an exercise price equal to $8.75 per share.

	On January 16, 2013, in consideration of the terms above, MBTH gave the Company notice to its intention to exercise the conversion rights on the 2011 Convertible Loan. On March 26, 2013, the Company issued 1,127,819 common shares to MBTH in consideration of the conversion rights under the May 2011 Convertible Note to convert the principal balance of $15.0 million into common shares at $13.30 per share, and 142,857 common shares were issued for the discharge of MBTH’s collateral over the Company’s assets. The additional consideration described above was considered an induced conversion of the 2011 Convertible Loan. The Company recorded debt inducement for the differential in the value of securities issued to the debt holder under the original terms compared to the value of securities issued to the debt holder under the amended terms. Additionally, the modification of options were accounted for as debt inducement based upon the valuation of the option immediately prior to the amendment compared to the value of the option with the amended terms. As a result of the modified terms, the Company recorded debt inducement of $14.1 million during the year ended December 31, 2013. The inducement was recorded as a reduction and increase to additional paid in capital as MBTH is a related party.

	The Company agreed to award MBTH a 3% cash success fee if MBTH arranges additional financing for the Company by a third party (other than the Bridge Loan as defined below) or arranges a merger, consolidation or sale by the Company of substantially all of the assets to a third party.

	Bridge Loan

	Under a subscription agreement and convertible promissory note (the “Bridge Loan”) between the Company and MBTH dated January 16, 2013, MBTH committed to advance to the Company $5 million as part of a new convertible bridge loan for up to an aggregate of $10 million. The Bridge Loan was issued to refinance principal advances under the May 2011 Convertible Loan in excess of $15 million, all accrued interest and fees under the May 2011 Convertible Loan and for general corporate purposes including; additional working capital and product development. On January 16, 2013, the Company refinanced principal of $2,648,000 and accrued interest of fees of $1,393,000 under the May 2011 Convertible Note for a beginning principal balance of $4,041,000 under the Bridge Loan.

	The Bridge Loan was for a term of one year and was convertible, at each loan note holder’s option, into common shares at any time prior to final maturity at $5.225 (95% of $5.50, the price of the Company’s initial public offering completed on July 24, 2013). Interest was payable at 20% per annum, semi-annually in cash or shares, at the option of each loan note holder. The Bridge Loan may be prepaid by the Company in whole (or in part), subject to payment of a minimum of six months’ interest if prepaid within the first six months. The Company may redeem 50% of the Bridge Loan without prepayment penalty by forcing a conversion into shares, provided that the shares are marginable and freely tradable on a liquid exchange, and provided further that, if such forced conversion was effected within six months from the date of the Bridge Loan, then the Company shall pay six month’s interest on the unpaid and unconverted principal balance of the Bridge Loan immediately before such forced conversion (such interest being payable in cash or shares, at the option of each loan note holder).

	For every $350 of principal amount of Bridge Loan advanced by MBTH, the loan note holder will be issued one warrant to subscribe one share at a subscription price of $0.35 per share. The warrants are exercisable for a period of five years from issuance. The Company agreed to pay an origination fee of 5% to note holders.

	The Company drew down an additional $6,768,000 with MBTH and $2,267,300 with the other investors to finance operating activities through July 18, 2013. Additionally, the Company accrued additional interest and fees of $1,355,000 from January 16, 2013 through July 18, 2013.

	On July 18, 2013, the Company exercised its right to force a conversion of 50% of the then outstanding principal balance under the Bridge Loan Agreement and received notification of intent to convert the remaining 50% of the principal balance under the Bridge Loan and all accrued interest and fees from MBTH and other non-related investors that investors holding a total principal balance under the Bridge Loan of $8,910,000 and accrued interest and fees of approximately $1,355,000.

	On August 7, 2013, the Company repaid $125,000 to a non-related investor for investment into the Bridge Loan.

	On August 22, 2013, the Company refinanced approximately $1,013,000 of liabilities previously paid by MBTH during 2013 on behalf of the Company through the Bridge Loan and incurred an origination fee of approximately $50,000. The Company received notification from MBTH of its intent to convert the principal balance and accrued fees and interest of $101,000.

	On August 22, 2013, the Company issued 2,187,529 common shares for the conversion of the balance of approximately $11,429,000 in principal and accrued interest and fees at a price per share of $5.225. Because the Bridge Loan was convertible into shares at 95% of the price of the IPO price, the Company recorded a charge of $0.6 million in interest expense during the year ended December 31, 2013, due to the difference between the IPO price of $5.50 and conversion price of $5.225. Additionally, the Company issued warrants to purchase 1,093,778 underlying shares as additional consideration to the investors who exercised their conversion option. The warrants vested immediately and are exercisable into common shares at an exercise price of $6.87 per share and have a term of five years from the date of issuance.

	On August 22, 2013, the Company recorded an inducement charge of $1.8 million for the additional warrants to purchase 1,093,778 underlying shares as additional consideration to the investors who exercised their conversion option. The issuance of the warrants is considered an inducement to convert the Bridge Loan balance as the warrants were issued in addition to the common shares contractually required by the Bridge Loan Agreement. The charge was calculated using the fair market value of the warrant. As a result, the Company recorded during the year ended December 31, 2013, an inducement expense of $0.4 million on the statement of operations for 237,173 warrants given to non-related parties and an inducement of $1.4 million to additional paid in capital for 856,605 warrants given to related parties.

	On October 6, 2011, the Company entered into a convertible promissory note (the “$2 million Convertible Note”) in favor of Treco, as part of the settlement compensation to Treco for terminating the infrastructure agreement. The $2 million Convertible Note is payable on final maturity, October 6, 2018 and is convertible, at Treco’s option, into common shares of the Company at a price of $35.00 per share. Interest at the rate of 9% per year is payable semi-annually in cash or shares, at the Company’s option. As of December 31, 2013, $2 million of principal balance was outstanding under the $2 million Convertible Note. The accrued interest at December 31, 2013 was $42,329 and is reflected in the balance sheet as accrued interest and fees. On May 7, 2013, the Company issued 6,923 shares in repayment of $90,000 of interest. On December 2, 2013, the Company issued 34,749 shares in repayment of $90,000 of interest.

INCOME_TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Income Tax Disclosure [Text Block]	'
	10 — INCOME TAXES

	The provision (benefit) for income taxes consists of the following:

		December 31,
		2013			2012
	Current tax provision
	Federal	$	—		$	—
	State		—			—
			—			—
	Deferred tax provision
	Federal		—			—
	State		—			—
			—			—
	Income tax provision	$	—		$	—

	A reconciliation of the statutory tax rate to the effective tax rate is as follows:

		December 31,
		2013		2012
	Statutory Federal income tax (benefit) rate	-35	%	-35	%
	State and local taxes net of Federal (benefit)	-5.5	%	-5.5	%
	Permanent differences	1.24	%	1.17	%
	Valuation allowance	39.26	%	39.33	%
	Effective tax rate	0	%	0	%

	There were no significant uncertain tax positions taken, or expected to be taken, in a tax return that would be determined to be an unrecognized tax benefit taken or expected to be taken in a tax return that should have been recorded on the Company’s financial statements for the years ended December 31, 2013 or 2012.

	Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial accounting purposes and the amounts used for income tax reporting. Significant components of the Company’s deferred tax assets are as follows:

		December 31,
		2013			2012
	Deferred tax assets
	Net operating loss carry forwards	$	42,122,000		$	42,848,000
	Research and development tax credit carry forwards		1,207,000			1,186,000
	Accrued expenses		96,000			1,017,000
	Total deferred tax asset		49,425,000			45,051,000
	Valuation allowance		-49,425,000			-45,051,000
		$	—		$	—

	Net operating losses (“NOL”) of approximately $118.8 million will expire beginning in 2027 for federal and state purposes. The Company also has research and development credits of approximately $1.2 million which will begin to expire in 2027.

	Realization of the NOL carry forwards and other deferred tax temporary differences is contingent on future taxable earnings. The Company’s deferred tax asset was reviewed for expected utilization using a “more likely than not” approach by assessing the available positive and negative evidence surrounding its recoverability. Accordingly, a valuation allowance has been recorded against the Company’s deferred tax asset, as it was determined based upon past and present losses that it was “more likely than not” that the Company’s deferred tax assets would not be realized. The valuation allowance was increased to the full carrying amount of the Company’s deferred tax assets. In future years, if the deferred tax assets are determined by management to be “more likely than not” to be realized, the recognized tax benefits relating to the reversal of the valuation allowance as of December 31, 2013 will be recorded. The Company will continue to assess and evaluate strategies that will enable the deferred tax asset, or portion thereof, to be utilized, and will reduce the valuation allowance appropriately as such time when it is determined that the “more likely than not” criteria is satisfied. The federal and state tax returns for the years ending December 31, 2010, 2011 and 2012 are currently open.

EQUITY

EQUITY	12 Months Ended
EQUITY	Dec. 31, 2013
Warrants and Rights Note Disclosure [Abstract]	'
Stockholders Equity Note Disclosure [Text Block]	'
	11 — EQUITY

	On March 5, 2013, the Board approved a resolution to amend the Corporation’s Certificate of Incorporation, declaring said resolution to be advisable, and calling for the submission of the following resolution a proposal to authorize the Board to effect a reverse split of the Corporation’s outstanding common stock, at an exchange ratio ranging between 2-to-1 and 50-to-1 at any time prior to the next annual meeting of stockholders. Effective March 24, 2013, holders of outstanding stock having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted acting by written consent to approve the Board’s authority to effect the reverse split. On March 24, 2013, we effected a 1-for-25 reverse stock split and on March 28, 2013 we effected a 1-for-1.4 reverse stock split. Upon the effectiveness of the first reverse stock split, every 25 shares of outstanding common stock decreased to one share of common stock. Similarly, the number of shares of common stock into which each outstanding option and warrant to purchase common stock is exercisable decreased on a 1-for-25 basis and the exercise price of each outstanding option and warrant to purchase common stock increased proportionately. Upon the effectiveness of the second reverse stock split, every 1.4 shares of outstanding common stock decreased to one share of common stock and the number of shares of common stock into which each outstanding option and warrant to purchase common stock is exercisable decreased on a 1-for-1.4 basis and the exercise price of each outstanding option and warrant to purchase common stock increased proportionately. The purpose of the second reverse split was to provide for a cumulative or aggregate reverse split of 1-for-35 taking into account both reverse stock splits. On March 26, 2013, the Board approved a resolution to amend the Corporation’s Certificate of Incorporation, declaring said resolution to be advisable, and calling for the submission of the following resolution a proposal to authorize the Board to decrease the par value $0.01 for common stock per share, to par value $0.00001 per share. All share and per share information has been retroactively adjusted to reflect the reverse stock split.

	On March 26, 2013, the Board approved a resolution to amend the Corporation’s Certificate of Incorporation, declaring said resolution to be advisable, and calling for the submission of the following resolution a proposal to authorize the Board to increase common stock from 250,000,000 shares of common stock to 300,000,000 shares common stock per share.

	Initial Public Offering

	On July 24, 2013, the Company closed its initial public offering of 1,337,792 shares of common stock, par value $0.00001 per share, and warrants to purchase 668,896 shares of common stock, at a purchase price to the public of $5.50 per share and $0.01 per warrant, for net proceeds to the Company, after deducting underwriter discounts and offering expenses, of $6,750,673. The warrants have an exercise price of $6.87 per share and are exercisable immediately and will expire five years from the date of issuance.

	Over-allotment Option

	On August 19, 2013, the underwriters exercised in full their over-allotment option to purchase an additional 200,668 shares of common stock and warrants to purchase 100,334 shares of common stock with an exercise price of $6.87, at a purchase price to the public of $5.50 per share and $0.01 per warrant, for net proceeds to the Company, after deducting underwriter discounts, of $1,027,349.

	Issuance of Shares and Warrants to MBTH

	On September 30, 2013, directors of the Company not related with MBTH authorized a onetime agreement, whereby the Company issued to MBTH 1,599,453 shares of common stock and a warrant to purchase 1,363,636 shares of common stock at an exercise price of $6.87 per share for the difference in price between the shares issued to them in March 2013 at a price of $13.30 per share in exchange for the conversion of its 2011 Convertible Note and the $5.50 purchase price for shares sold in our initial public offering in July 2013. Additionally, the Modified Strike Price, agreed upon between the Company and MBTH in January 2013, of $13.30 per share for the two options representing 571,428 underlying shares granted to MBTH in February 2011 has been lowered to $5.50. In connection with the onetime agreement, the Company recorded a total of $10.1 million to Other expense, of which, $7.8 million was the fair market value of the 1,599,453 shares of common stock issued to MBTH; $1.8 million was the fair value of the warrants to purchase 1,363,636 shares of common stock which were issued to MBTH; and $0.5 million was the change in the fair market value immediately before and after the modification of the stock price for options with 571,428 underlying shares.

	Secondary Offering

	On November 18, 2013, the Company closed its secondary public offering of 5,715,000 shares of common stock, par value $0.00001 per share, at a purchase price to the public of $1.75 per share, for net proceeds to the Company, after deducting underwriter discounts and offering expenses, of $9,146,888. In connection with the offering, the Company issued warrants to the underwriters to purchase 171,450 shares of common stock, for an aggregate price of $100. The warrants have an exercise price of $2.1875 per share and are exercisable immediately and will expire five years from the date of issuance.

	Over-allotment Option

	On December 12, 2013, the underwriters made a partial exercise of their over-allotment option in which they purchased an additional 255,000 shares of common stock at a purchase price to the public of $1.75 per share, for net proceeds to the Company, after deducting underwriter discounts, of $415,013. The underwriters had an option to purchase up to 857,250 shares of common stock or 15% of the total number of shares offered within 45 days after the closing of the Offering.

	Stock Options — Equity Incentive Plans:

	The Company’s stock option plans provide for the grant of options to purchase shares of common stock to officers, directors, other key employees and consultants. The purchase price may be paid in cash or “net settled” in shares of the Company’s common stock. In a net settlement of an option, the Company does not require a payment of the exercise price of the option from the optionee, but reduces the number of shares of common stock issued upon the exercise of the option by the smallest number of whole shares that has an aggregate fair market value equal to or in excess of the aggregate exercise price for the option shares covered by the option exercised. Options generally vest over a three year period from the date of grant and expire ten years from the date of grant.

	A summary of the Company’s historical stock option plan activity as of December 31, 2013 is as follows:

	Plan Name		Options Authorized		Options Granted		Shares Exercised		Shares		Options Outstanding
	Plan Name		Options Authorized		Options Granted		Shares Exercised		Forfeited/Expired		Options Outstanding
	2004		142,857		142,857		67,460		24,287		51,110
	2005		142,857		142,857		10,000		58,572		74,285
	2006		314,285		310,102		6,304		65,882		237,916
	2007		28,571		25,714		—		4,285		21,429
	2009		285,714		358,440		10,041		55,784		292,615
	2013		906,291		305,625		—		—		305,625
	Total		1,820,575		1,285,595		93,805		208,810		982,980

	Under ASC 718, the weighted average fair value of options granted was $1.99 and $15.75 for options granted in 2013 and 2012, respectively. Each option is estimated on the date of grant, using the Black-Scholes model and the following assumptions (all in weighted averages):

			2013				2012
	Exercise price		$	2.43			$	16.45
	Volatility			109	%			145	%
	Risk-free interest rate			1.37	%			1.42	%
	Expected dividend yield			0	%			0	%
	Expected term (years)			6				9.2

	The risk-free rate is based on the rate for the U.S. Treasury note over the expected term of the option. The expected term for employees represents the period of time that options granted are expected to be outstanding using the simplified method, for non-employee options the expected term is the full term of the option. Expected volatility is based on the average of the weekly share price changes over the shorter of the expected term or the period from the placement on AIM to the date of the grant. The forfeiture rate is based on historical data related to prior option grants, as we believe such historical data will be similar to future results.


	A summary of the status of the Company’s stock option plans for the years ended December 31, 2013 and 2012 is as follows:

			Number of Options		Weighted
			(in Shares)		Average
					Exercise Price
	Options Outstanding January 1, 2012		653,896		$	39.9
	Granted		71,000			16.45
	Exercised		660			7.7
	Forfeited or Expired		23,333			22.4
Options outstanding, December 31, 2012		700,903			38.15
Exercisable, December 31, 2012		513,603		$	47.6
Options Outstanding, January 1, 2013		700,903		$	38.15
Granted		334,161			2.43
Exercised		—			—
Forfeited or Expired		52,084			13.16
Options outstanding, December 31, 2013		982,980			28.05
Exercisable, December 31, 2013		571,261		$	44.79

Summary information regarding the options outstanding and exercisable at December 31, 2013 is as follows:

		Outstanding							Exercisable
Range of		Number		Weighted Average		Weighted			Number		Weighted
Exercise		Outstanding (in		Remaining Contractual		Average			Exercisable (in		Average Exercise
Prices		shares)		Life (in years)		Exercise			shares)		Price
						Price
$1.05 – 8.05		429,705		9.1		$	3.36		96,111		$	7.12
8.40 – 23.80		282,795		4.69			14.16		204,670			14.02
35.00 – 70.00		241,133		2.22			68.74		241,133			68.74
122.50 – 288.75		29,347		3.08			187.26		29,347			187.26
		982,980							571,261

Under the provisions of ASC 718, the Company recorded approximately $796,000 and $554,000 of stock based compensation expense for the years ended December 31, 2013 and 2012, respectively. Stock based compensation for employees was approximately $421,000 and $371,000 and stock based compensation expense for non-employees was approximately $375,000 and $183,000 for the years ended December 31, 2013 and 2012, respectively. As of December 31, 2013 and 2012, there was approximately $1.2 million and $1.6 million, respectively, of unrecognized compensation cost related to non-vested options under the plans.

In 2013, no options were exercised and in 2012, the Company received proceeds of $2,000 from the exercise of options with 238 underlying shares. In 2012, options for 422 underlying shares were net settled through cashless exercises. The intrinsic value of options exercised in 2013 and 2012 were $0 and $5,000, respectively. The intrinsic value of options exercisable at December 31, 2013 and 2012 was $0 and $996,000, respectively. The total fair value of shares vested during 2013 and 2012 was $846,000 and $619,000, respectively.

Deferred tax benefits recognized from the timing difference of recognizing stock based compensation expense per the financial statements compared to the income tax return has been fully reserved for as the Company is in a net loss position. No windfall tax benefits have been recognized for the exercise of stock options.

Warrants:

The Company has issued warrants, outside of the equity incentive plans, at exercise prices equal to or greater than market value of the Company’s common stock at the date of issuance.

A summary of the warrant and option activity is as follows:

		Number of		Weighted
		Options/Warrants		Average
		(in Shares)		Exercise Price
Warrants Outstanding January 1, 2012		629,160		$	24.85
Granted		8,571			35
Exercised		—			—
Forfeited or Expired		43,446			—
Warrants Outstanding, December 31, 2012		594,285			25.9
Exercisable, December 31, 2012		594,285		$	25.9
Warrants Outstanding, January 1, 2013		594,285		$	25.9
Granted		3,652,669			6.61
Exercised		858			0.35
Forfeited or Expired		—			—
Warrants Outstanding, December 31, 2013		4,246,096			6.53
Exercisable, December 31, 2013		4,246,096		$	6.53

Summary information regarding the warrants as of December 31, 2013 is as follows:

Exercise Price		Number Outstanding (in shares)		Weighted Average Remaining
				Contractual Life
				(in years)
$0.35		70,726		4.65
$2.19		171,450		4.89
$5.50		571,428		2.13
$6.87		3,266,778		4.66
$7.87		14,286		1.28
$8.75		142,857		4.04
$35.00		8,571		3.2
Exercisable, December 31, 2013		4,246,096


The Company issued a warrant to purchase 8,571 common shares of the Company to a non-employee on March 28, 2012. The warrant was fully vested on the date of issuance and the Company recorded stock based compensation expense for non-employees of $143,000. The Company used the following assumptions in the Black Scholes model to calculate the fair value of the warrant on March 28, 2012:

		2012
Exercise price		$	35
Black-Scholes			16.68
Volatility			149	%
Risk-free interest rate			1.13	%
Expected dividend yield			0	%
Expected term (years)			5

The risk-free rate is based on the rate for the U.S. Treasury note over the expected term of the warrant. The expected term for non-employee warrants is the full term of the warrant. Expected volatility is based on the average of the weekly share price changes over the shorter of the expected term or the period from the placement on AIM to the date of the grant.

The modification of the existing options with MBTH (refer to Note 9 — Convertible Notes Payable) was considered an induced conversion. The Company calculated the value of the options immediately prior to the amendment compared to the value of the option with the amended terms.

The Company agreed to modify the exercise price on two options representing 571,428 underlying common shares granted to MBTH under the February 2011 Convertible Loan from $13.30 to the Modified Strike Price of $5.50. The Company calculated the value of the options immediately prior to the amendment compared to the value of the option with the amended terms.

T he Company used the following assumptions in the Black Scholes Model to calculate the fair value of the warrants:

		January 16, 2013 Amended Terms				September 30, 2013 Amended Terms
Exercise Price		$	13.3			$	5.5
Black-Scholes Value		$	10.35			$	2.93
Volatility			140	%			109.8	%
Risk-free interest rate			0.27	%			0.13	%
Expected dividend yield			0	%			0	%
Expected term (years)			3				3

The Company agreed to award MBTH an option for 142,857 common shares with an exercise price equal to $8.75 per share. The warrants are exercisable for a period of five years from issuance and are fully vested on the date of issuance. The Company agreed to award MBTH an option for 42,857 common shares with an exercise price equal to $0.35 per share. The warrants are exercisable for a period of five years from issuance and are fully vested on the date of issuance.

For every $350 of principal amount of Bridge Loan advanced by a loan note holder, the loan note holder was issued a warrant for one underlying share with an exercise price of $0.35 per share. The warrants for 28,727 underlying shares are exercisable for a period of five years from issue and are fully vested on the date of issuance. The warrants were issued in connection with the Bridge Loan and were recorded as a debt discount of $401,000 against the Bridge Loan. The Company used the following weighted average assumptions in the Black Scholes model to calculate the fair value of the warrants:

On November 19, 2013, in connection with the secondary offering, the Company issued warrants to the underwriters to purchase 171,450 shares of common stock with an exercise price of $2.1875 per share and are exercisable immediately and will expire five years from the date of issuance.

		January 16, 2013				March 12, 2013				Bridge Loan			November 19, 2013
Number of shares			142,857				42,857				28,727			171,450
Exercise Price		$	8.75			$	0.35			$	0.35		$	2.1875
Black-Scholes Value		$	13.57			$	14.71			$	5.98 to $14.71		$	1.2
Volatility			139.9	%			137.7	%			104.4	%		108.4	%
Risk-free interest rate			0.75	%			0.88	%			0.68	%		1.37	%
Expected dividend yield			0	%			0	%			0	%		0	%
Expected term (years)			5				5				5			5

The risk-free rate is based on the rate for the U.S. Treasury note over the expected term of the warrants. The expected term is the full term of the warrant. Expected volatility is based on the average of the weekly share price changes over the shorter of the expected term or the period from the placement on AIM to the date of the grant.

The Company issued warrants to purchase 1,093,778 underlying shares as additional consideration to the investors who exercised their conversion option. The warrants vested immediately and are exercisable into common shares at an exercise price of $6.87 per share and have a term of five years from the date of issuance.

The Company agreed to award MBTH a warrant to purchase 1,363,636 shares of our common stock with an exercise price equal to $6.87 per share. The warrants are exercisable for a period of five years from issuance and are fully vested on the date of issuance. The Company used the trading price to calculate the fair value of the warrants.

On July 24, 2013, the Company closed its initial public offering and issued warrants to purchase 668,896 shares of common stock with an exercise price of $6.87 per share. The warrants are exercisable immediately and will expire five years from the date of issuance. The Company issued warrants to the underwriters to purchase 40,134 shares of common stock with an exercise price of $6.87 per share. The warrants are exercisable immediately and will expire five years from the date of issuance.

On August 19, 2013, the underwriters exercised in full their over-allotment option and they received warrants to purchase 100,334 shares of common stock with an exercise price of $6.87 per share. The warrants are exercisable immediately and will expire five years from the date of issuance.

The Company used the XGTIW trading price to value these warrants as the warrants issued had identical terms to the warrants traded on the market.

The Company cancelled a warrant to purchase 43,446 common shares of the Company to the non-employee on March 22, 2012. Pursuant to an agreement, warrants issued to the non-employee upon inception of engagement were to be performance based. Pursuant to a mutual agreement with the Company, these warrants will not be exercised and have been cancelled. The cumulative compensation expense of $194,000 was reversed during 2012 upon cancelation.

RETIREMENT_PLAN

RETIREMENT PLAN	12 Months Ended
RETIREMENT PLAN	Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]	'
Pension and Other Postretirement Benefits Disclosure [Text Block]	'
	12— RETIREMENT PLAN

	The Company has a 401(k) plan for all full–time employees who have attained the age of 21 and completed 90 days. The Company does not provide any match for the 401(k).

COMMITMENTS

COMMITMENTS	12 Months Ended
COMMITMENTS	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments Disclosure [Text Block]	'
	13 — COMMITMENTS

	The Company’s office rental, deployment sites and warehouse facilities expenses aggregated approximately $304,000 and $287,000 of which approximately $83,000 and $106,000 was capitalized during the years ended December 31, 2013 and 2012, respectively. The leases will expire on different dates from 2014 through 2016. The company also entered into contract agreements with two of its principal vendors to provide parts for production. Total obligation of purchasing parts under contractual agreements, minimum future annual rentals, exclusive of real estate taxes and related costs, are approximately as follows:

	Year Ending December 31,
	2014	$	2,523,000
	2015		309,000
	2016		201,000
		$	3,033,000

	The Company has an employment agreement with its CEO, John Coleman, for a term of three years with automatic renewals unless terminated. Mr. Coleman’s agreement was effective on August 1, 2011. It provides that he will receive a salary of no less than $250,000 per year, subject to annual increases as determined by the Board. In addition, he is entitled to incentive compensation not to exceed two (2) times his base salary. The incentive compensation is payable in shares of common stock at the Company’s discretion. He is also entitled to participate in all other benefits that the Company may provide to other senior executives. The agreement contains a non-compete and non-solicitation agreement.

CONCENTRATIONS

CONCENTRATIONS	12 Months Ended
CONCENTRATIONS	Dec. 31, 2013
Risks and Uncertainties [Abstract]	'
Concentration Risk Disclosure [Text Block]	'
	14 — CONCENTRATIONS

	During the year ended December 31, 2013, the Company recorded individual sales of $83,000 (20%), $158,000 (39%) and $114,000 (28%) in excess of 10% of the Company’s total sales.

	At December 31, 2013, approximately 79% of net accounts receivable was due from three customers and 37% of net accounts receivable was due from one customer.

	During the year ended December 31, 2013, approximately 15% of the Company’s inventory purchases were derived from one vendor.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
RELATED PARTY TRANSACTIONS	Dec. 31, 2013
Related Party Transactions [Abstract]	'
Related Party Transactions Disclosure [Text Block]	'
	15 — RELATED PARTY TRANSACTIONS

	MBTH

	As of December 31, 2013 MBTH owned approximately 33% of the Company’s outstanding shares, which represents a controlling interest. The Company has entered into convertible notes with MBTH refer to Note 9 — Convertible Notes Payable.

	Due from Related Party

	On November 20, 2013, the Company paid $1,350,000 to MBTH which is recorded as a related party receivable as of December 31, 2013. On January 7, 2014, MBTH paid the company $1,350,000 in repayment of the receivable balance.

	Due to Related Party

	Effective July 1, 2011, by agreement of a committee of the Directors who did not own interests in MBTH, the Company entered into an arrangement with MBTH whereby MBTH assumed certain liabilities of the Company including certain payroll, management fees and other operating costs in the amount of $250,000 per month for a period of twelve months. In consideration for this agreement, the Company issued MBTH 342,857 shares on June 23, 2011 at a price of $8.75 per share for proceeds of $3 million. On July 1, 2012 the agreement with MBTH to assume liabilities of the Company expired. Subsequent to the assumption of liability agreement and through December 31, 2013, MBTH paid additional liabilities on behalf of the Company amounting to $3.6 million. From January 1, 2013 through December 31, 2013, MBTH paid additional liabilities on the behalf of the Company of approximately $2,506,000, the Company repaid MBTH $1,065,000 for liabilities previously paid by MBTH, and the Company refinanced $1,013,000 of liabilities previously paid by MBTH into the Bridge Loan (see Note 9 – Convertible Notes Payable) for a net increase in the related party liability of $428,000. The due to related party balance was $1,526,000 as of December 31, 2013.

	On September 30, 2013, the independent directors of the Company not related with MBTH authorized a onetime agreement, whereby we issued to MBTH 1,599,453 shares of our common stock and a warrant to purchase 1,363,636 shares of our common stock at an exercise price of $6.87 per share for the difference in price between the shares issued to them in March 2013 at a price of $13.30 per share in exchange for the conversion of its 2011 Convertible Note and the $5.50 purchase price for shares sold in our initial public offering in July 2013. Additionally, the Modified Strike Price, agreed upon between the Company and MBTH in January 2013, of $13.30 per share for the two options representing 571,428 underlying shares granted to MBTH in February 2011 has been lowered to $5.50. See Note 11 — Equity.

	Deferred Revenue

	On October 16, 2013, the Company completed the first delivery of our xMax comprehensive cognitive radio system, shipping equipment required to fulfill the $155,000 purchase order that was received from rural broadband provider Walnut Hill Telephone Company on November 26, 2012. Larry Townes is Chairman of Townes Tele-Communications, Inc., the parent company of Walnut Hill Telephone Company. Given that Larry Townes is a director of xG Technology, the sale of equipment to Walnut Hill Telephone Company is considered to be a related party transaction. Due to Walnut Hill Telephone Company waiting for the equipment to meet certain technical specifications, the revenue from this transaction is considered deferred revenue as of December 31, 2013.

	On December 16, 2013, the Company sold our xMax comprehensive cognitive radio system to Haxtun Telephone Company for $301,000 to fulfill a purchase order that was received on November 24, 2012. Larry Townes is Chairman of Townes Tele-Communications, Inc., the parent company of Haxtun Telephone Company. Given that Larry Townes is a director of xG Technology, the sale of equipment to Haxtun Telephone Company is considered to be a related party transaction. Due to Haxtun Telephone Company waiting for the equipment to meet certain technical specifications, the revenue from this transaction is considered deferred revenue as of December 31, 2013.

	Mooers Branton & Co. Incorporated

	On March 2, 2006, the Company entered into a management agreement (the “Management Agreement”) with Mooers Branton & Co. Incorporated (“MBC”), a Florida corporation, pursuant to which MBC agreed to provide certain management and financial services to the Company for a monthly fee of $80,000. The Management Agreement was effective January 1, 2006. The Company incurred fees related to the Management Agreement of $960,000 in the years ended December 31, 2013 and 2012, of which $960,000 was assumed by MBTH in 2013 and 2012. MBC is beneficially controlled and operated by Rick Mooers and Roger Branton, a director and the Chief Financial Officer, respectively, of the Company.

CONTINGENCIES

CONTINGENCIES	12 Months Ended
CONTINGENCIES	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Contingencies Disclosure [Text Block]	'
	16—CONTINGENCIES

	The Company is subject, from time to time, to claims by third parties under various legal theories. The defense of such claims, or any adverse outcome relating to any such claims, could have a material adverse effect on the Company’s liquidity, financial condition and cash flows. For the years ended December 31, 2013 and 2012, the Company did not have any legal actions pending.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	12 Months Ended
SUBSEQUENT EVENTS	Dec. 31, 2013
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	17 — SUBSEQUENT EVENTS

	The cancellation of the Company’s common stock on the London Stock Exchange’s AIM Market became effective January 3, 2014. On December 20, 2013, the shareholders approved the cancellation of admission to trading the Company’s common stock on the London Stock Exchange’s AIM Market.

	On January 7, 2014, the Company received $1,350,000 from MBTH. As of December 31, 2013, this amount was recorded as a due from a related party.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk for Cash

Inventory, Policy [Policy Text Block]

Inventory

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Intangible Assets

Patents and licenses are measured initially at purchase cost and are amortized on a straight line basis over their useful lives which range between 18.5 to 20 years.

Property, Plant and Equipment, Policy [Policy Text Block]

Property, Plant and Equipment

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets

Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]

Allowance for Doubtful Accounts

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Research and Development Expense, Policy [Policy Text Block]

Development Expenses

Income Tax, Policy [Policy Text Block]

Income Taxes

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Based Compensation

Treasury Stock Policy [Policy Text Block]

Treasury Stock

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share

Guarantees, Indemnifications and Warranties Policies [Policy Text Block]

Warranty Reserve

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Level 1:

Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs.

Level 2:

Observable prices that are based on inputs not quoted on active markets, but corroborated by market data.

Level 3:

Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs.

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2013, consistent with the fair value hierarchy provisions:

Quoted Prices

Significant Other

Significant

Carrying

in Active Markets for

Observable Inputs (Level 2)

Unobservable Inputs

Amount

Identical

(Level 3)

Assets/Liabilities

(Level 1)

Assets:

Cash

5,517,000

—

5,517,000

Liabilities:

Convertible notes

—

90,000

—

2,000,000

payable

The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2012, consistent with the fair value hierarchy provisions:

Quoted Prices in

Significant Other

Significant

Carrying

Active Markets for

Observable Inputs

Unobservable Inputs

Amount

Identical Assets/Liabilities

(Level 2)

(Level 3)

(Level 1)

Assets:

Cash

271,000

—

271,000

Liabilities:

Convertible

—

10,595,533

—

19,198,000

notes payable

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Principles

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	'
	The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2013, consistent with the fair value hierarchy provisions:

		Quoted Prices		Significant Other		Significant		Carrying
		in Active Markets for		Observable Inputs (Level 2)		Unobservable Inputs		Amount
		Identical				(Level 3)
		Assets/Liabilities
		(Level 1)
	Assets:
	Cash	$	5,517,000	$	—	$	—	$	5,517,000
	Liabilities:
	Convertible notes	$	—	$	90,000	$	—	$	2,000,000
	payable

	The following table presents the Company’s assets and liabilities that are measured at fair value on a recurring basis at December 31, 2012, consistent with the fair value hierarchy provisions:

		Quoted Prices in		Significant Other		Significant		Carrying
		Active Markets for		Observable Inputs		Unobservable Inputs		Amount
		Identical Assets/Liabilities		(Level 2)		(Level 3)
		(Level 1)
	Assets:
	Cash	$	271,000	$	—	$	—	$	271,000
	Liabilities:
	Convertible	$	—	$	10,595,533	$	—	$	19,198,000
	notes payable

INVENTORY_Tables

INVENTORY (Tables)	12 Months Ended
	Dec. 31, 2013
Inventory Disclosure [Abstract]	'
Schedule of Inventory, Current [Table Text Block]	'
	Inventories included in the accompanying balance sheet are stated at the lower of cost or market as summarized below:

		December		December
		31,		31,
		2013		2012
	Raw materials consisting of purchased parts, components and work in	$	2,461,000	$	—
	process
	Finished goods		455,000		—
	Total Inventory	$	2,916,000	$	—

ACCOUNTS_RECEIVABLE_Tables

ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
ACCOUNTS RECEIVABLE (Tables)	Dec. 31, 2013
Receivables [Abstract]	'
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	'
	Accounts receivable consist of the following:

		December 31,		December 31,
		2013		2012
	Accounts receivable	$	324,000	$	—
	Accounts receivable – related party		480,000		—
	Net allowance for doubtful accounts		-16,000		—
	Net accounts receivable	$	788,000	$	—

PROPERTY_AND_EQUIPMENT_Tables

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT (Tables)	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment [Table Text Block]	'
	Property and equipment consist of the following:

			December 31,
		Useful Life (years)	2013		2012
	Cost:
	Furniture and equipment	3 – 7 years	$	2,633,000	$	1,970,000
	Hardware	4 – 5 years		—		2,486,000
				2,633,000		4,456,000
	Accumulated depreciation:			-1,827,000		-2,731,000
	Property and equipment, net		$	806,000	$	1,725,000

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	12 Months Ended
INTANGIBLE ASSETS (Tables)	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
Schedule of Finite-Lived Intangible Assets [Table Text Block]	'
	Intangible assets consist of the following:


		Software Development Costs				Patents & Licenses
		Cost		A.A.		Cost		A.A.		Total
	Balance as of December 31, 2011	$	7,975,000	$	-479,000	$	12,051,000	$	-5,010,000	$	14,537,000
	Additions		4,251,000		—		239,000		—		4,490,000
	Impairments		—		—		-18,000		—		-18,000
	Amortization		—		-782,000		—		-619,000		-1,401,000
	Balance as of December 31, 2012	$	12,226,000	$	-1,261,000	$	12,272,000	$	-5,629,000	$	17,608,000
	Additions		2,562,000		—		39,000		—		2,601,000
	Impairments		—		—		-36,000		—		-36,000
	Amortization		—		-1,313,000		—		-664,000		-1,977,000
	Balance as of December 31, 2013	$	14,788,000	$	-2,574,000	$	12,275,000	$	-6,293,000	$	18,196,000

Finite-lived Intangible Assets Amortization Expense [Table Text Block]	'
	Estimated amortization expense for the succeeding five years is as follows:

	2014	$	3,590,000
	2015		3,590,000
	2016		3,127,000
	2017		2,809,000
	2018 and thereafter		4,840,000
		$	17,956,000

OBLIGATION_UNDER_CAPITAL_LEASE1

OBLIGATION UNDER CAPITAL LEASE (Tables)	12 Months Ended
OBLIGATION UNDER CAPITAL LEASE (Tables)	Dec. 31, 2013
Leases, Capital [Abstract]	'
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block]	'
	The future minimum payments for capital leases as at December 31, 2013 are as follows:

	2014	$	129,000
	2015		128,000
	Total minimum lease payments		257,000
	Less amount representing interest		10,000
	Present value of the net minimum lease payments		247,000
	Less obligations under capital lease maturing within one year		129,000
	Long-term portion of obligations under capital lease	$	118,000

INCOME_TAXES_Tables

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]	'
	The provision (benefit) for income taxes consists of the following:

		December 31,
		2013			2012
	Current tax provision
	Federal	$	—		$	—
	State		—			—
			—			—
	Deferred tax provision
	Federal		—			—
	State		—			—
			—			—
	Income tax provision	$	—		$	—

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	'
	A reconciliation of the statutory tax rate to the effective tax rate is as follows:

		December 31,
		2013		2012
	Statutory Federal income tax (benefit) rate	-35	%	-35	%
	State and local taxes net of Federal (benefit)	-5.5	%	-5.5	%
	Permanent differences	1.24	%	1.17	%
	Valuation allowance	39.26	%	39.33	%
	Effective tax rate	0	%	0	%

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]	'
	Significant components of the Company’s deferred tax assets are as follows:

		December 31,
		2013			2012
	Deferred tax assets
	Net operating loss carry forwards	$	42,122,000		$	42,848,000
	Research and development tax credit carry forwards		1,207,000			1,186,000
	Accrued expenses		96,000			1,017,000
	Total deferred tax asset		49,425,000			45,051,000
	Valuation allowance		-49,425,000			-45,051,000
		$	—		$	—

EQUITY_Tables

EQUITY (Tables)	12 Months Ended
EQUITY (Tables)	Dec. 31, 2013
Class of Warrant or Right [Line Items]	'
Schedule of Share-based Compensation, Activity [Table Text Block]	'
	A summary of the warrant and option activity is as follows:

		Number of		Weighted
		Options/Warrants		Average
		(in Shares)		Exercise Price
	Warrants Outstanding January 1, 2012	629,160		$	24.85
	Granted	8,571			35
	Exercised	—			—
	Forfeited or Expired	43,446			—
	Warrants Outstanding, December 31, 2012	594,285			25.9
	Exercisable, December 31, 2012	594,285		$	25.9
	Warrants Outstanding, January 1, 2013	594,285		$	25.9
	Granted	3,652,669			6.61
	Exercised	858			0.35
	Forfeited or Expired	—			—
	Warrants Outstanding, December 31, 2013	4,246,096			6.53
	Exercisable, December 31, 2013	4,246,096		$	6.53

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	'
	Summary information regarding the warrants as of December 31, 2013 is as follows:

	Exercise Price	Number Outstanding (in shares)		Weighted Average Remaining
				Contractual Life
				(in years)
	$0.35	70,726		4.65
	$2.19	171,450		4.89
	$5.50	571,428		2.13
	$6.87	3,266,778		4.66
	$7.87	14,286		1.28
	$8.75	142,857		4.04
	$35.00	8,571		3.2
	Exercisable, December 31, 2013	4,246,096

Equity Incentive Plans One [Member]	'
Class of Warrant or Right [Line Items]	'
Schedule of Share-based Compensation, Activity [Table Text Block]	'
	A summary of the Company’s historical stock option plan activity as of December 31, 2013 is as follows:

	Plan Name	Options Authorized		Options Granted		Shares Exercised		Shares		Options Outstanding
	Plan Name	Options Authorized		Options Granted		Shares Exercised		Forfeited/Expired		Options Outstanding
	2004	142,857		142,857		67,460		24,287		51,110
	2005	142,857		142,857		10,000		58,572		74,285
	2006	314,285		310,102		6,304		65,882		237,916
	2007	28,571		25,714		—		4,285		21,429
	2009	285,714		358,440		10,041		55,784		292,615
	2013	906,291		305,625		—		—		305,625
	Total	1,820,575		1,285,595		93,805		208,810		982,980

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	'
	Each option is estimated on the date of grant, using the Black-Scholes model and the following assumptions (all in weighted averages):

		2013				2012
	Exercise price	$	2.43			$	16.45
	Volatility		109	%			145	%
	Risk-free interest rate		1.37	%			1.42	%
	Expected dividend yield		0	%			0	%
	Expected term (years)		6				9.2

Equity Incentive Plans Two [Member]	'
Class of Warrant or Right [Line Items]	'
Schedule of Share-based Compensation, Activity [Table Text Block]	'
	A summary of the status of the Company’s stock option plans for the years ended December 31, 2013 and 2012 is as follows:

		Number of Options		Weighted
		(in Shares)		Average
				Exercise Price
	Options Outstanding January 1, 2012	653,896		$	39.9
	Granted	71,000			16.45
	Exercised	660			7.7
	Forfeited or Expired	23,333			22.4
	Options outstanding, December 31, 2012	700,903			38.15
	Exercisable, December 31, 2012	513,603		$	47.6
	Options Outstanding, January 1, 2013	700,903		$	38.15
	Granted	334,161			2.43
	Exercised	—			—
	Forfeited or Expired	52,084			13.16
	Options outstanding, December 31, 2013	982,980			28.05
	Exercisable, December 31, 2013	571,261		$	44.79

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	'
	Summary information regarding the options outstanding and exercisable at December 31, 2013 is as follows:

		Outstanding							Exercisable
	Range of	Number		Weighted Average		Weighted			Number		Weighted
	Exercise	Outstanding (in		Remaining Contractual		Average			Exercisable (in		Average Exercise
	Prices	shares)		Life (in years)		Exercise			shares)		Price
						Price
	$1.05 – 8.05	429,705		9.1		$	3.36		96,111		$	7.12
	8.40 – 23.80	282,795		4.69			14.16		204,670			14.02
	35.00 – 70.00	241,133		2.22			68.74		241,133			68.74
	122.50 – 288.75	29,347		3.08			187.26		29,347			187.26
		982,980							571,261

Warrant [Member]	'
Class of Warrant or Right [Line Items]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	'
	The Company used the following assumptions in the Black Scholes model to calculate the fair value of the warrant on March 28, 2012:

		2012
	Exercise price	$	35
	Black-Scholes		16.68
	Volatility		149	%
	Risk-free interest rate		1.13	%
	Expected dividend yield		0	%
	Expected term (years)		5

MB Technology Holdings LLC [Member]	'
Class of Warrant or Right [Line Items]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	'
	The Company calculated the value of the options immediately prior to the amendment compared to the value of the option with the amended terms.

	The Company used the following assumptions in the Black Scholes Model to calculate the fair value of the warrants:

		January 16, 2013 Amended Terms				September 30, 2013 Amended Terms
	Exercise Price	$	13.3			$	5.5
	Black-Scholes Value	$	10.35			$	2.93
	Volatility		140	%			109.8	%
	Risk-free interest rate		0.27	%			0.13	%
	Expected dividend yield		0	%			0	%
	Expected term (years)		3				3

MB Technology Holdings Options One [Member]	'
Class of Warrant or Right [Line Items]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]	'
	The Company used the following weighted average assumptions in the Black Scholes model to calculate the fair value of the warrants:

	On November 19, 2013, in connection with the secondary offering, the Company issued warrants to the underwriters to purchase 171,450 shares of common stock with an exercise price of $2.1875 per share and are exercisable immediately and will expire five years from the date of issuance.

		January 16, 2013				March 12, 2013				Bridge Loan			November 19, 2013
	Number of shares		142,857				42,857				28,727			171,450
	Exercise Price	$	8.75			$	0.35			$	0.35		$	2.1875
	Black-Scholes Value	$	13.57			$	14.71			$	5.98 to $14.71		$	1.2
	Volatility		139.9	%			137.7	%			104.4	%		108.4	%
	Risk-free interest rate		0.75	%			0.88	%			0.68	%		1.37	%
	Expected dividend yield		0	%			0	%			0	%		0	%
	Expected term (years)		5				5				5			5

COMMITMENTS_Tables

COMMITMENTS (Tables)	12 Months Ended
COMMITMENTS (Tables)	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]	'
	The company also entered into contract agreements with two of its principal vendors to provide parts for production. Total obligation of purchasing parts under contractual agreements, minimum future annual rentals, exclusive of real estate taxes and related costs, are approximately as follows:

	Year Ending December 31,
	2014	$	2,523,000
	2015		309,000
	2016		201,000
		$	3,033,000

GOING_CONCERN_Details_Textual

GOING CONCERN (Details Textual) (USD $)	12 Months Ended		1 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Mar. 31, 2014
	Dec. 31, 2013	Dec. 31, 2012	Subsequent Event [Member]
Going Concern Disclosure [Line Items]	'	'	'
Retained Earnings (Accumulated Deficit)	$151,562,000	$124,112,000	'
Working Capital Requirement Backlog	'	'	34,600,000
Net Income (Loss) Attributable to Parent, Total	($27,450,000)	($13,787,000)	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Cash [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash	$5,517,000	$271,000
Cash [Member] \| Fair Value, Inputs, Level 1 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash	5,517,000	271,000
Cash [Member] \| Fair Value, Inputs, Level 2 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash	0	0
Cash [Member] \| Fair Value, Inputs, Level 3 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash	0	0
Convertible Notes Payable [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Convertible notes payable	2,000,000	19,198,000
Convertible Notes Payable [Member] \| Fair Value, Inputs, Level 1 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Convertible notes payable	0	0
Convertible Notes Payable [Member] \| Fair Value, Inputs, Level 2 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Convertible notes payable	90,000	10,595,533
Convertible Notes Payable [Member] \| Fair Value, Inputs, Level 3 [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Convertible notes payable	$0	$0

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)	12 Months Ended
Share data in Millions, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Cash, FDIC Insured Amount	$250,000	'
Impairment of Intangible Assets, Finite-lived	37,000	18,000
Impairment of Long-Lived Assets to be Disposed of	896,000	268,000
Allowance for Doubtful Accounts Receivable, Current	16,000	0
Research and Development Expense, Total	5,468,000	4,806,000
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	5.29	2.05
Stock Issued During Period Non Convertible Debt	1,000,000,000	'
Common Stock Held By Non Affiliates	700,000,000	'
Interest Payable, Current	42,000	42,000
Warranty Reserves [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Product Warranty Expense	$8,000	$0
Maximum [Member] \| Property, Plant and Equipment [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Property, Plant and Equipment, Useful Life	'7 years	'
Minimum [Member] \| Property, Plant and Equipment [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Property, Plant and Equipment, Useful Life	'3 years	'
Patents And Licenses [Member] \| Maximum [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Finite-Lived Intangible Asset, Useful Life	'20 years	'
Patents And Licenses [Member] \| Minimum [Member]	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Finite-Lived Intangible Asset, Useful Life	'18 years 6 months	'

INVENTORY_Details

INVENTORY (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Inventory [Line Items]	'	'
Raw materials consisting of purchased parts, components and work in process	$2,461,000	$0
Finished goods	455,000	0
Total Inventory	$2,916,000	$0

ACCOUNTS_RECEIVABLE_Details

ACCOUNTS RECEIVABLE (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Accounts, Notes, Loans and Financing Receivable [Line Items]	'	'
Accounts receivable	$324,000	$0
Accounts receivable - related party	480,000	0
Net allowance for doubtful accounts	-16,000	0
Net accounts receivable	$788,000	$0

PROPERTY_AND_EQUIPMENT_Details

PROPERTY AND EQUIPMENT (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2013
			Furniture and Fixtures [Member]	Furniture and Fixtures [Member]	Furniture and Fixtures [Member]	Furniture and Fixtures [Member]	Hardware [Member]	Hardware [Member]	Hardware [Member]	Hardware [Member]
					Maximum [Member]	Minimum [Member]			Maximum [Member]	Minimum [Member]
Cost:	'	'	'	'	'	'	'	'	'	'
Property and equipment, cost	$2,633,000	$4,456,000	$2,633,000	$1,970,000	'	'	$0	$2,486,000	'	'
Accumulated depreciation:	-1,827,000	-2,731,000	'	'	'	'	'	'	'	'
Property and equipment, net	$806,000	$1,725,000	'	'	'	'	'	'	'	'
Useful Life	'	'	'	'	'7 years	'3 years	'	'	'5 years	'4 years

PROPERTY_AND_EQUIPMENT_Details1

PROPERTY AND EQUIPMENT (Details Textual) (USD $)	12 Months Ended
PROPERTY AND EQUIPMENT (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]	'	'
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$1,827,000	$2,731,000
Tangible Asset Impairment Charges, Total	896,000	268,000
Depreciation	393,000	662,000
Hardware Supplies [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	1,297,000	'
Prior Period Reclassification Adjustment	293,000	'
Impairment Charge on Reclassified Assets	896,000	'
Property, Plant and Equipment, Other, Gross	$2,193,000	'

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	12 Months Ended
INTANGIBLE ASSETS (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Finite-Lived Intangible Assets [Line Items]	'	'
Balance Beginning	$17,608,000	$14,537,000
Additions	2,601,000	4,490,000
Impairments	-36,000	-18,000
Amortization	-1,977,000	-1,401,000
Balance Ending, Cost	27,100,000	'
Balance Ending	18,196,000	17,608,000
Patents And Licenses [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Balance Beginning, Cost	12,272,000	12,051,000
Balance Beginning, A.A.	-5,629,000	-5,010,000
Additions	39,000	239,000
Impairments	-36,000	-18,000
Amortization	-664,000	-619,000
Balance Ending, Cost	12,275,000	12,272,000
Balance Ending, A.A.	-6,293,000	-5,629,000
Software Development [Member]	'	'
Finite-Lived Intangible Assets [Line Items]	'	'
Balance Beginning, Cost	12,226,000	7,975,000
Balance Beginning, A.A.	-1,261,000	-479,000
Additions	2,562,000	4,251,000
Impairments	0	0
Amortization	-1,313,000	-782,000
Balance Ending, Cost	14,788,000	12,226,000
Balance Ending, A.A.	($2,574,000)	($1,261,000)

INTANGIBLE_ASSETS_Details_1

INTANGIBLE ASSETS (Details 1) (USD $)	Dec. 31, 2013
Finite-Lived Intangible Assets [Line Items]	'
2014	$3,590,000
2015	3,590,000
2016	3,127,000
2017	2,809,000
2018 and thereafter	4,840,000
Finite Lived Intangible Assets Amortization Expenses	$17,956,000

INTANGIBLE_ASSETS_Details_Text

INTANGIBLE ASSETS (Details Textual) (USD $)	12 Months Ended
INTANGIBLE ASSETS (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Finite-Lived Intangible Assets [Line Items]	'	'	'
Finite-Lived Intangible Assets, Gross	$26,800,000	'	'
Intangible Assets, Gross (Excluding Goodwill), Total	27,100,000	'	'
Amortization of Intangible Assets	1,977,000	1,401,000	'
Amortization Of Intangible Assets Accumulated Amortization	300,000	'	'
Patents And Licenses [Member]	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'
Intangible Assets, Gross (Excluding Goodwill), Total	12,275,000	12,272,000	12,051,000
Amortization of Intangible Assets	664,000	619,000	'
Patents And Licenses [Member] \| Minimum [Member]	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'
Finite-Lived Intangible Asset, Useful Life	'18 years 6 months	'	'
Patents And Licenses [Member] \| Maximum [Member]	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'
Finite-Lived Intangible Asset, Useful Life	'20 years	'	'
Filed Patents And Licenses [Member]	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'
Intangible Assets, Gross (Excluding Goodwill), Total	12,200,000	'	'
Provisional Patents And Pending Licenses [Member]	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'
Intangible Assets, Gross (Excluding Goodwill), Total	100,000	'	'
Software Development [Member]	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'
Intangible Assets, Gross (Excluding Goodwill), Total	14,788,000	12,226,000	7,975,000
Amortization of Intangible Assets	$1,313,000	$782,000	'

OBLIGATION_UNDER_CAPITAL_LEASE2

OBLIGATION UNDER CAPITAL LEASE (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
2014	$129,000	'
2015	128,000	'
Total minimum lease payments	257,000	'
Less amount representing interest	10,000	'
Present value of the net minimum lease payments	247,000	'
Less obligations under capital lease maturing within one year	129,000	'
Long-term obligation under capital lease	$118,000	$0

OBLIGATION_UNDER_CAPITAL_LEASE3

OBLIGATION UNDER CAPITAL LEASE (Details Textual) (USD $)	12 Months Ended
OBLIGATION UNDER CAPITAL LEASE (Details Textual) (USD $)	Dec. 31, 2013
Capital Leases, Future Minimum Payments, Net Minimum Payments, Total	$257,000
Interest Rate on Capital Leases	4.00%

CONVERTIBLE_NOTES_PAYABLE_Deta

CONVERTIBLE NOTES PAYABLE (Details Textual) (USD $)

1 Months Ended

9 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

0 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

0 Months Ended

1 Months Ended

6 Months Ended

12 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

Aug. 31, 2013

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 12, 2013

Aug. 22, 2013

Jul. 18, 2013

Jan. 16, 2013

Dec. 31, 2013

Aug. 19, 2013

Dec. 31, 2013

Aug. 31, 2013

Jul. 31, 2013

Aug. 31, 2013

Dec. 31, 2013

Aug. 31, 2013

Jul. 18, 2013

Jul. 19, 2013

Aug. 22, 2013

Jul. 31, 2013

Jan. 16, 2013

Sep. 30, 2013

Dec. 31, 2013

Oct. 06, 2011

Dec. 31, 2013

Nov. 30, 2013

Aug. 31, 2013

Jul. 18, 2013

Dec. 31, 2013

Sep. 30, 2013

Aug. 31, 2013

Jul. 18, 2013

Dec. 31, 2013

Jan. 16, 2013

19-May-11

Jun. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Jan. 16, 2013

Mar. 31, 2013

Sep. 30, 2013

Dec. 31, 2013

Feb. 08, 2011

Dec. 31, 2013

Sep. 30, 2013

Dec. 31, 2013

Non Related Party [Member]

Common Stock [Member]

IPO [Member]

Non Related Investors [Member]

Minimum [Member]

Convertibles and Bonds with Warrants Attached [Member]

Bridge Loan [Member]

Treco International, S.A [Member]

MB Technology Holdings LLC [Member]

Related Party [Member]

May 2011 Convertible Note [Member]

February 2011 Convertible Loan [Member]

IPO [Member]

Convertibles and Bonds with Warrants Attached [Member]

Common Stock [Member]

IPO [Member]

Non Related Investors [Member]

Bridge Loan [Member]

Maximum [Member]

Minimum [Member]

Bridge Loan [Member]

MB Technology Holdings LLC [Member]

Maximum [Member]

Minimum [Member]

MB Technology Holdings LLC [Member]

Subsequent Event [Member]

Debt Instrument [Line Items]

Convertible Notes Payable

$15,000,000

$5,000,000

$2,000,000

$15,000,000

$4,041,000

Debt Instrument, Maturity Date

19-May-16

Debt Instrument, Convertible, Conversion Price (in dollars per share)

$13.30

$5.22

$35

$13.30

$26.25

$13.30

Debt Instrument, Frequency of Periodic Payment

'semi-annually

Debt Instrument, Interest Rate, Stated Percentage

20.00%

9.00%

8.00%

9.50%

8.00%

Debt Instrument Percentage Of Facility Fee

2.00%

Debt Instrument, Face Amount

2,000,000

17,200,000

Proceeds from Notes Payable

450,000

10,315,000

450,000

Accrued Interest And Fees To Related Parties

1,127,000

1,100,000

Debt Instrument, Increase, Accrued Interest

1,355,000

1,393,000

266,000

Debt Instrument Convertible Modified Strike Price

$13.30

Debt Conversion, Converted Instrument, Shares Issued (in shares)

34,749

6,923

2,187,529

142,857

1,127,819

1,599,453

16,474

Debt Conversion Converted Instrument Stock Options Issued

571,428

28,727

571,428

285,714

571,428

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance

$8.75

$35

$17.50

Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period

142,857

Conversion of 2011 Convertible Note Payable Principal Balance

15,000,000

[1]

15,000,000

Adjustments to Additional Paid in Capital, Convertible Debt with Conversion Feature

14,100,000

Debt Instrument Percentage Of Fee

3.00%

Loan Origination Fees

50,000

Accrued Interest And Fees

101,000

1,355,000

Bridge Loan

10,000,000

Short-term Debt, Refinanced, Amount

1,013,000

2,648,000

Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed

50.00%

Long-term Debt, Gross

42,857

350

2,000,000

Warrants Exercise Price

$0.35

Convertible Notes Payable, Current

8,910,000

Stock To be Issued Upon Conversion Of Warrant

42,857

1,363,636

Percentage Of Completed Initial Public Offering

95.00%

Share Price (in dollars per share)

$5.50

$0.00

$5.50

Payments for Operating Activities, Total

6,768,000

2,267,300

Repayments of Related Party Debt

125,000

1,350,000

1,065,000

Debt Conversion, Original Debt, Amount

11,429,000

Interest and Debt Expense, Total

600,000

Stock Issue Price

$5.50

Debt Instrument, Convertible, Number of Equity Instruments

1,093,778

Exercise Price Of Warrant (in dollars per share)

$6.87

$0.35

$6.87

$0.35

$6.87

Inducement expense

1,800,000

391,000

400,000

1,400,000

Number of Shared To Be Issued Upon Conversion of Warrant

1,093,778

Number Of Warrants Issued

237,173

668,896

856,605

Percentage of Origination Fee

5.00%

Paid-in-Kind Interest

90,000

Interest Payable, Current

$42,000

$42,329

[1]

Less than $1

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	12 Months Ended
INCOME TAXES (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Current tax provision	'	'
Federal	$0	$0
State	0	0
Current Income Tax Expense (Benefit), Total	0	0
Deferred tax provision	'	'
Federal	0	0
State	0	0
Deferred Income Tax Expense (Benefit), Total	0	0
Income tax provision	$0	$0

INCOME_TAXES_Details_1

INCOME TAXES (Details 1)	12 Months Ended
INCOME TAXES (Details 1)	Dec. 31, 2013	Dec. 31, 2012
Operating Loss Carryforwards [Line Items]	'	'
Statutory Federal income tax (benefit) rate	-35.00%	-35.00%
State and local taxes net of Federal (benefit)	-5.50%	-5.50%
Permanent differences	1.24%	1.17%
Valuation allowance	39.26%	39.33%
Effective tax rate	0.00%	0.00%

INCOME_TAXES_Details_2

INCOME TAXES (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Deferred tax assets	'	'
Net operating loss carry forwards	$42,122,000	$42,848,000
Research and development tax credit carry forwards	1,207,000	1,186,000
Accrued expenses	96,000	1,017,000
Total deferred tax asset	49,425,000	45,051,000
Valuation allowance	-49,425,000	-45,051,000
Deferred Tax Assets, Net, Total	$0	$0

INCOME_TAXES_Details_Textual

INCOME TAXES (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Operating Loss Carryforwards [Line Items]	'	'
Operating Loss Carryforwards	$118,800,000	'
Deferred Tax Assets, Tax Credit Carryforwards, Research	$1,207,000	$1,186,000

EQUITY_Details

EQUITY (Details)	12 Months Ended
EQUITY (Details)	Dec. 31, 2013	Nov. 19, 2013	Mar. 12, 2013	Jan. 16, 2013
Class of Warrant or Right [Line Items]	'	'	'	'
Options Authorized	1,820,575	171,450	42,857	142,857
Options Granted	1,285,595	'	'	'
Shares Exercised	93,805	'	'	'
Shares Forfeited/Expired	208,810	'	'	'
Options Outstanding	982,980	'	'	'
Option Plan 2004 [Member]	'	'	'	'
Class of Warrant or Right [Line Items]	'	'	'	'
Options Authorized	142,857	'	'	'
Options Granted	142,857	'	'	'
Shares Exercised	67,460	'	'	'
Shares Forfeited/Expired	24,287	'	'	'
Options Outstanding	51,110	'	'	'
Option Plan 2005 [Member]	'	'	'	'
Class of Warrant or Right [Line Items]	'	'	'	'
Options Authorized	142,857	'	'	'
Options Granted	142,857	'	'	'
Shares Exercised	10,000	'	'	'
Shares Forfeited/Expired	58,572	'	'	'
Options Outstanding	74,285	'	'	'
Option Plan 2006 [Member]	'	'	'	'
Class of Warrant or Right [Line Items]	'	'	'	'
Options Authorized	314,285	'	'	'
Options Granted	310,102	'	'	'
Shares Exercised	6,304	'	'	'
Shares Forfeited/Expired	65,882	'	'	'
Options Outstanding	237,916	'	'	'
Option Plan 2007 [Member]	'	'	'	'
Class of Warrant or Right [Line Items]	'	'	'	'
Options Authorized	28,571	'	'	'
Options Granted	25,714	'	'	'
Shares Exercised	0	'	'	'
Shares Forfeited/Expired	4,285	'	'	'
Options Outstanding	21,429	'	'	'
Option Plan 2009 [Member]	'	'	'	'
Class of Warrant or Right [Line Items]	'	'	'	'
Options Authorized	285,714	'	'	'
Options Granted	358,440	'	'	'
Shares Exercised	10,041	'	'	'
Shares Forfeited/Expired	55,784	'	'	'
Options Outstanding	292,615	'	'	'
Option Plan 2013 [Member]	'	'	'	'
Class of Warrant or Right [Line Items]	'	'	'	'
Options Authorized	906,291	'	'	'
Options Granted	305,625	'	'	'
Shares Exercised	0	'	'	'
Shares Forfeited/Expired	0	'	'	'
Options Outstanding	305,625	'	'	'

EQUITY_Details_1

EQUITY (Details 1) (USD $)	1 Months Ended	0 Months Ended		12 Months Ended
EQUITY (Details 1) (USD $)	Nov. 19, 2013	Mar. 12, 2013	Jan. 16, 2013	Dec. 31, 2013	Dec. 31, 2012
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'	'	'	'	'
Exercise price	$2.19	$0.35	$8.75	$2.43	$16.45
Volatility	108.40%	137.70%	139.90%	109.00%	145.00%
Risk-free interest rate	1.37%	0.88%	0.75%	1.37%	1.42%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%	0.00%
Expected term (years)	'5 years	'5 years	'5 years	'6 years	'9 years 2 months 12 days

EQUITY_Details_2

EQUITY (Details 2) (USD $)	12 Months Ended		12 Months Ended
	Dec. 31, 2013	Dec. 12, 2013	Dec. 31, 2013	Dec. 31, 2012
	Dec. 31, 2013	Dec. 12, 2013	Equity Incentives Plan Two [Member]	Equity Incentives Plan Two [Member]
Class of Warrant or Right [Line Items]	'	'	'	'
Number of Options, Outstanding	'	'	700,903	653,896
Number of Options, Granted	1,285,595	'	334,161	71,000
Number of Options, Exercised	93,805	'	0	660
Number of Options, Forfeited or Expired	208,810	'	52,084	23,333
Number of Options, Outstanding	982,980	'	982,980	700,903
Number of Options, Exercisable	'	'	571,261	513,603
Weighted Average Exercise Price Outstanding	'	$35	$38.15	$39.90
Weighted Average Exercise Price, Granted	'	'	$2.43	$16.45
Weighted Average Exercise Price, Exercised	'	'	$0	$7.70
Weighted Average Exercise Price, Forfeited or Expired	'	'	$13.16	$22.40
Weighted Average Exercise Price, Outstanding	$8.75	$35	$28.05	$38.15
Weighted Average Exercise Price, Exercisable	'	'	$44.79	$47.60

EQUITY_Details_3

EQUITY (Details 3) (USD $)	Dec. 31, 2013	Dec. 12, 2013	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013
			Equity Incentives Plan Two [Member]	Equity Incentives Plan Two [Member]	Equity Incentives Plan Two [Member]	Equity Incentives Plan Two [Member]	Equity Incentives Plan Two [Member]	Equity Incentives Plan Two [Member]	Equity Incentives Plan Two [Member]
						Exercise Prices Range 1 [Member]	Exercise Prices Range 2 [Member]	Exercise Prices Range 3 [Member]	Exercise Prices Range 4 [Member]
Class of Warrant or Right [Line Items]	'	'	'	'	'	'	'	'	'
Number Outstanding (in shares)	982,980	'	982,980	700,903	653,896	429,705	282,795	241,133	29,347
Weighted Average Remaining Contractual Life (in years)	'	'	'	'	'	'9 years 1 month 6 days	'4 years 8 months 8 days	'2 years 2 months 19 days	'3 years 29 days
Weighted Average Exercise Price	$8.75	$35	$28.05	$38.15	$39.90	$3.36	$14.16	$68.74	$187.26
Number Exercisable (in shares)	'	'	571,261	513,603	'	96,111	204,670	241,133	29,347
Exercisable Weighted Average Exercise Price	'	'	$44.79	$47.60	'	$7.12	$14.02	$68.74	$187.26
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	'	'	'	'	'	$1.05	$8.40	$35	$122.50
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	'	'	'	'	'	$8.05	$23.80	$70	$288.75

EQUITY_Details_4

EQUITY (Details 4) (USD $)	12 Months Ended
EQUITY (Details 4) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Class of Warrant or Right [Line Items]	'	'
Warrants Outstanding, Number of Options/Warrants (in Shares)	594,285	629,160
Granted, Number of Options/Warrants (in Shares)	3,652,669	8,571
Exercised, Number of Options/Warrants (in Shares)	858	0
Forfeited or Expired, Number of Options/Warrants (in Shares)	0	43,446
Warrants Outstanding, Number of Options/Warrants (in Shares)	4,246,096	594,285
Exercisable, Number of Options/Warrants (in Shares)	4,246,096	594,285
Warrants Outstanding, Weighted Average Exercise Price	$25.90	$24.85
Granted, Weighted Average Exercise Price	$6.61	$35
Exercised, Weighted Average Exercise Price	$0.35	$0
Forfeited or Expired, Weighted Average Exercise Price	$0	$0
Warrants Outstanding, Weighted Average Exercise Price	$6.53	$25.90
Exercisable, Weighted Average Exercise Price	$6.53	$25.90

EQUITY_Details_5

EQUITY (Details 5)	12 Months Ended
EQUITY (Details 5)	Dec. 31, 2013
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'
Class of Warrant or Right, Outstanding	4,246,096
Exercise Price $0.35 [Member]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'
Class of Warrant or Right, Outstanding	70,726
Warrants, Weighted Average Remaining Contractual Term	'4 years 7 months 24 days
Exercise Price $2.19 [Member]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'
Class of Warrant or Right, Outstanding	171,450
Warrants, Weighted Average Remaining Contractual Term	'4 years 10 months 20 days
Exercise Price $5.50 [Member]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'
Class of Warrant or Right, Outstanding	571,428
Warrants, Weighted Average Remaining Contractual Term	'2 years 1 month 17 days
Exercise Price $6.87 [Member]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'
Class of Warrant or Right, Outstanding	3,266,778
Warrants, Weighted Average Remaining Contractual Term	'4 years 7 months 28 days
Exercise Price $7.87 [Member]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'
Class of Warrant or Right, Outstanding	14,286
Warrants, Weighted Average Remaining Contractual Term	'1 year 3 months 11 days
Exercise Price $8.75 [Member]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'
Class of Warrant or Right, Outstanding	142,857
Warrants, Weighted Average Remaining Contractual Term	'4 years 14 days
Exercise Price $35.00 [Member]	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'
Class of Warrant or Right, Outstanding	8,571
Warrants, Weighted Average Remaining Contractual Term	'3 years 2 months 12 days

EQUITY_Details_6

EQUITY (Details 6) (USD $)	1 Months Ended	0 Months Ended		12 Months Ended		1 Months Ended
	Nov. 19, 2013	Mar. 12, 2013	Jan. 16, 2013	Dec. 31, 2013	Dec. 31, 2012	Mar. 28, 2012
	Nov. 19, 2013	Mar. 12, 2013	Jan. 16, 2013	Dec. 31, 2013	Dec. 31, 2012	Equity Incentives Plan One [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'	'	'	'	'	'
Exercise price	$2.19	$0.35	$8.75	$2.43	$16.45	$35
Black-Scholes	$1.20	$14.71	$13.57	'	'	$16.68
Volatility	108.40%	137.70%	139.90%	109.00%	145.00%	149.00%
Risk-free interest rate	1.37%	0.88%	0.75%	1.37%	1.42%	1.13%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Expected term (years)	'5 years	'5 years	'5 years	'6 years	'9 years 2 months 12 days	'5 years

EQUITY_Details_7

EQUITY (Details 7) (USD $)	1 Months Ended	0 Months Ended		12 Months Ended
EQUITY (Details 7) (USD $)	Nov. 19, 2013	Mar. 12, 2013	Jan. 16, 2013	Dec. 31, 2013	Dec. 31, 2012
Exercise price	$2.19	$0.35	$8.75	$2.43	$16.45
Black-Scholes Value	$1.20	$14.71	$13.57	'	'
Volatility	108.40%	137.70%	139.90%	109.00%	145.00%
Risk-free interest rate	1.37%	0.88%	0.75%	1.37%	1.42%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%	0.00%
Expected term (years)	'5 years	'5 years	'5 years	'6 years	'9 years 2 months 12 days
January 16, 2013 Amended Terms [Member]	'	'	'	'	'
Exercise price	'	'	'	$13.30	'
Black-Scholes Value	'	'	'	$10.35	'
Volatility	'	'	'	140.00%	'
Risk-free interest rate	'	'	'	0.27%	'
Expected dividend yield	'	'	'	0.00%	'
Expected term (years)	'	'	'	'3 years	'
September 30, 2013 Amended Terms [Member]	'	'	'	'	'
Exercise price	'	'	'	$5.50	'
Black-Scholes Value	'	'	'	$2.93	'
Volatility	'	'	'	109.80%	'
Risk-free interest rate	'	'	'	0.13%	'
Expected dividend yield	'	'	'	0.00%	'
Expected term (years)	'	'	'	'3 years	'

EQUITY_Details_8

EQUITY (Details 8) (USD $)	1 Months Ended	0 Months Ended		12 Months Ended
EQUITY (Details 8) (USD $)	Nov. 19, 2013	Mar. 12, 2013	Jan. 16, 2013	Dec. 31, 2013	Dec. 31, 2012
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'	'	'	'	'
Number of shares	171,450	42,857	142,857	1,820,575	'
Exercise Price	$2.19	$0.35	$8.75	$2.43	$16.45
Black-Scholes Value	$1.20	$14.71	$13.57	'	'
Volatility	108.40%	137.70%	139.90%	109.00%	145.00%
Risk-free interest rate	1.37%	0.88%	0.75%	1.37%	1.42%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%	0.00%
Expected term (years)	'5 years	'5 years	'5 years	'6 years	'9 years 2 months 12 days
Bridge Loan [Member]	'	'	'	'	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'	'	'	'	'
Number of shares	'	'	'	28,727	'
Exercise Price	'	'	'	$0.35	'
Volatility	'	'	'	104.40%	'
Risk-free interest rate	'	'	'	0.68%	'
Expected dividend yield	'	'	'	0.00%	'
Expected term (years)	'	'	'	'5 years	'
Bridge Loan [Member] \| Maximum [Member]	'	'	'	'	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'	'	'	'	'
Black-Scholes Value	'	'	'	$14.71	'
Bridge Loan [Member] \| Minimum [Member]	'	'	'	'	'
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]	'	'	'	'	'
Black-Scholes Value	'	'	'	$5.98	'

EQUITY_Details_Textual

EQUITY (Details Textual) (USD $)

1 Months Ended

9 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

Aug. 31, 2013

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 12, 2013

Mar. 26, 2013

Jan. 31, 2013

Jan. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Dec. 31, 2012

Mar. 22, 2012

Mar. 31, 2013

Aug. 19, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 12, 2013

Aug. 19, 2013

Dec. 31, 2013

Mar. 28, 2012

Dec. 31, 2013

Jan. 16, 2013

Jun. 30, 2011

Dec. 31, 2013

Sep. 30, 2013

Dec. 31, 2011

Aug. 31, 2013

Mar. 31, 2013

Sep. 30, 2013

Dec. 31, 2013

Aug. 31, 2013

Jul. 31, 2013

Aug. 31, 2013

Nov. 19, 2013

Nov. 30, 2013

Dec. 31, 2013

Aug. 31, 2013

Aug. 22, 2013

Jul. 31, 2013

Jul. 19, 2013

Sep. 30, 2013

Dec. 31, 2013

Employee Stock Option [Member]

Employees [Member]

Non Employees [Member]

First Reverse Stock Split [Member]

Second Reverse Stock Split [Member]

Minimum [Member]

Maximum [Member]

Common Stock [Member]

Warrant [Member]

Warrant 1 [Member]

2011 Convertible Note [Member]

MB Technology Holdings LLC [Member]

IPO [Member]

Secondary Offer [Member]

Convertibles and Bonds with Warrants Attached [Member]

Bridge Loan [Member]

February 2011 Convertible Loan [Member]

Non Employees [Member]

Minimum [Member]

Maximum [Member]

Common Stock [Member]

2011 Convertible Note [Member]

Non Employees [Member]

Minimum [Member]

MB Technology Holdings LLC [Member]

Non Employees [Member]

Convertibles and Bonds with Warrants Attached [Member]

Class of Warrant or Right [Line Items]

Long-term Debt, Gross

$42,857

$350

Debt Discount Recorded On Bridge Loan

401,000

Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in shares)

142,857

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance (in dollars per share)

$8.75

$35

Issuance of stock for inducement of 2011 Convertible note payable

400,000

[1]

1,337,792,000

Share Price

$5.50

$0.00

$5.50

Number Of Warrants Issued

668,896

Number Of Shares To Be Issued Upon Conversion Of Warrants

100,334

42,857

668,896

40,134

171,450

1,093,778

Stock Issue Price

$5.50

Warrant Issue Price

$0.01

Payments of Stock Issuance Costs

6,750,673

Exercise Price Of Warrant

$6.87

$0.35

$6.87

$0.35

Warrant Expiry Period

'5 years

Underwriters Discounts

1,027,349

Debt Conversion, Converted Instrument, Shares Issued

34,749

142,857

1,127,819

1,599,453

2,187,529

Stock To be Issued Upon Conversion Of Warrant

42,857

1,363,636

Debt Conversion Converted Instrument Exercise Price

$6.87

Debt Instrument, Convertible, Conversion Price

$13.30

$26.25

$13.30

$26.25

$13.30

$5.22

$13.30

Debt Conversion Converted Instrument Stock Options Issued

571,428

28,727

571,428

Number of Options, Exercised

93,805

238

422

200,668

857,250

660

100,334

Other Expenses, Total

10,100,000

10,068,000

Fair value of Common Stock Issued During Period

7,800,000

Fair value of Warrants Issued During Period

1,800,000

Increase Decrease In Fair value Of Stock Option

500,000

Stockholders Equity, Reverse Stock Split

'5,715,000

'1-for-25

'1-for-1.4

'2-to-1

'50-to-1

Common Stock, Par or Stated Value Per Share

$0.00

$0.01

Common Stock, Shares Authorized

300,000,000

250,000,000

300,000,000

250,000,000

Stock To Be Issued Upon Conversion of Warrants

1,363,636

171,450

1,363,636

Shares Issued, Price Per Share

$1.75

$8.75

Proceeds from Issuance of Warrants

1,000

9,146,888

Exercise Price of Warrants

$2.19

Stock Issued During Period, Shares Secondary Public Offering Exercise Of Over Allotment

255,000

Proceeds from Issuance of Common Stock

17,340,000

400,000

415,013

3,000,000

Stock To Be Issued Upon Conversion of Warrants Value

100

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

$1.99

$15.75

Share-based Compensation, Total

796,000

554,000

421,000

371,000

375,000

183,000

143,000

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Total

1,200,000

1,600,000

Proceeds from Stock Options Exercised

2,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value

5,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value

996,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value

$846,000

$619,000

Warrants Issued During Period Number Of Warrants

43,446

8,571

Percentage of Shares Offered to Public

15.00%

[1]

Less than $1

COMMITMENTS_Details

COMMITMENTS (Details) (USD $)	Dec. 31, 2013
Other Commitments [Line Items]	'
2014	$2,523,000
2015	309,000
2016	201,000
Operating Leases, Future Minimum Payments Due, Total	$3,033,000

COMMITMENTS_Details_Textual

COMMITMENTS (Details Textual) (USD $)	12 Months Ended
COMMITMENTS (Details Textual) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Other Commitments [Line Items]	'	'
Operating Leases, Rent Expense, Net, Total	$304,000	$287,000
Operating Leases Costs Capitalized	$83,000	$106,000
Operating Leases Expiration Term	'2014 through 2016	'
Other Commitments, Description	'The Company has an employment agreement with its CEO, John Coleman, for a term of three years with automatic renewals unless terminated. Mr. Coleman’s agreement was effective on August 1, 2011. It provides that he will receive a salary of no less than $250,000 per year, subject to annual increases as determined by the Board. In addition, he is entitled to incentive compensation not to exceed two (2) times his base salary. The incentive compensation is payable in shares of common stock at the Company’s discretion. He is also entitled to participate in all other benefits that the Company may provide to other senior executives. The agreement contains a non-compete and non-solicitation agreement.	'

CONCENTRATIONS_Details_Textual

CONCENTRATIONS (Details Textual)	12 Months Ended
CONCENTRATIONS (Details Textual)	Dec. 31, 2013
Concentration Risk [Line Items]	'
Concentration Risk, Benchmark Description	'the Company recorded individual sales of $83,000 (20%), $158,000 (39%) and $114,000 (28%) in excess of 10% of the Company’s total sales.
Sales Revenue, Net [Member]	'
Concentration Risk [Line Items]	'
Concentration Risk, Percentage	10.00%
Three Customers [Member] \| Accounts Receivable [Member]	'
Concentration Risk [Line Items]	'
Concentration Risk, Percentage	79.00%
One Customer [Member] \| Accounts Receivable [Member]	'
Concentration Risk [Line Items]	'
Concentration Risk, Percentage	37.00%
Supplier Concentration Risk [Member] \| Cost of Goods, Total [Member]	'
Concentration Risk [Line Items]	'
Concentration Risk, Percentage	15.00%

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details Textual) (USD $)

9 Months Ended

12 Months Ended

18 Months Ended

6 Months Ended

12 Months Ended

1 Months Ended

12 Months Ended

1 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2013

Jun. 30, 2013

Dec. 31, 2013

Nov. 30, 2013

Aug. 31, 2013

Jun. 30, 2011

Dec. 31, 2013

Dec. 31, 2011

Sep. 30, 2013

Jan. 31, 2014

Mar. 31, 2013

Sep. 30, 2013

Dec. 31, 2013

Dec. 31, 2012

Dec. 31, 2006

Dec. 31, 2013

2011 Convertible Note [Member]

MB Technology Holdings LLC [Member]

Mooers Branton & Co [Member]

Walnut Hill Telephone Company [Member]

Haxtun Telephone Company [Member]

Subsequent Event [Member]

2011 Convertible Note [Member]

Related Party Transaction [Line Items]

Noncontrolling Interest, Ownership Percentage by Parent

33.00%

Liabilities Assumed

$250,000

Stock Issued During Period, Shares, New Issues (in shares)

342,857

Shares Issued, Price Per Share (in dollars per share)

$1.75

$8.75

Related Party Transaction, Expenses from Transactions with Related Party

960,000

80,000

Increase (Decrease) in Due to Related Parties, Total

91,000

1,098,000

428,000

Debt Conversion, Converted Instrument, Shares Issued

34,749

142,857

1,127,819

1,599,453

Debt Conversion Converted Instrument Exercise Price

$6.87

Stock To be Issued Upon Conversion Of Warrant

42,857

1,363,636

Debt Instrument, Convertible, Conversion Price

$13.30

$26.25

$13.30

Share Price

$5.50

Debt Conversion Converted Instrument Stock Options Issued

571,428

Other Noncash Expense

1,500,000

3,600,000

2,506,000

Repayments of Related Party Debt

1,350,000

1,065,000

Short-term Debt, Refinanced, Amount

2,648,000

1,013,000

Due to Affiliate

1,526,000

Proceeds from Related Party Debt

2,727,000

1,350,000

Related Party Transaction, Other Revenues from Transactions with Related Party

155,000

301,000

Proceeds from Issuance of Common Stock

$17,340,000

$400,000

$3,000,000

SUBSEQUENT_EVENTS_Details_Text

SUBSEQUENT EVENTS (Details Textual) (USD $)	12 Months Ended	1 Months Ended
	Dec. 31, 2013	Jan. 31, 2014
		Subsequent Event [Member]
		MB Technology Holdings LLC [Member]
Subsequent Event [Line Items]	'	'
Proceeds from Related Party Debt	$2,727,000	$1,350,000