Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document Information [Line Items] | ' |
Entity Registrant Name | 'xG TECHNOLOGY, INC. |
Entity Central Index Key | '0001565228 |
Document Type | 'S-1 |
Amendment Flag | 'true |
Amendment Description | 'xG Technology, Inc. amended Note 14 to the financial statements as of June 30, 2014 and December 31, 2013 and for the three Months and six Months ended June 30, 2014 and 2013, included in the Registration Statement on Form S-1 (File No. 333-191867). |
Document Period End Date | 30-Jun-14 |
Entity Filer Category | 'Smaller Reporting Company |
CONDENSED_BALANCE_SHEETS
CONDENSED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
In Thousands, unless otherwise specified | ||||||
Current assets | ' | ' | ' | |||
Cash | $4,960 | $5,517 | $271 | |||
Inventory | 4,202 | 2,916 | 0 | |||
Accounts Receivable, net of allowance of $20 and $16 ($478 and $470 from related parties, net of allowance of $10) | 996 | 788 | 0 | |||
Prepaid expenses and other current assets | 65 | 49 | 16 | |||
Due from related party | 0 | 1,350 | 0 | |||
Total current assets | 10,223 | 10,620 | 287 | |||
Property and equipment, net | 806 | 806 | 1,725 | |||
Intangible assets, net | 16,968 | 18,196 | 17,608 | |||
Total assets | 27,997 | 29,622 | 19,620 | |||
Current liabilities | ' | ' | ' | |||
Accounts payable | 795 | 1,841 | 655 | |||
Accrued expenses | 1,005 | 772 | 754 | |||
Accrued bonuses | 78 | 298 | 2,633 | |||
Accrued interest | 42 | 42 | 42 | |||
Accrued interest to related parties | ' | 0 | 1,127 | |||
Due to related party | 1,131 | 1,526 | 1,098 | |||
Deferred revenue - related parties | 480 | 480 | 0 | |||
Obligation under capital lease | 129 | 129 | 0 | |||
Convertible notes payable to related party | ' | 0 | 17,198 | |||
Total current liabilities | 3,660 | 5,088 | 23,507 | |||
Long-term obligation under capital lease | 56 | 118 | 0 | |||
Convertible notes payable | 2,000 | 2,000 | 2,000 | |||
Total liabilities | 5,716 | 7,206 | 25,507 | |||
Commitments and contingencies | ' | ' | ' | |||
Stockholders' equity | ' | ' | ' | |||
Series A Convertible Preferred Stock - $0.00001 par value per share:10,000,000 shares authorized at June 30, 2014 and December 31, 2013; none issued or outstanding as of June 30, 2014 and December 31, 2013 | 0 | 0 | 0 | |||
Common stock - $0.00001 par value, 100,000,000 and 300,000,000 shares authorized at June 30, 2014 and December 31, 2013, respectively 24,137,177 and 18,682,310 shares issued at June 30, 2014 and December 31, 2013, respectively | 0 | [1] | 0 | [1] | 0 | [1] |
Additional paid in capital | 183,548 | 174,000 | 118,247 | |||
Accumulated deficit | -161,245 | -151,562 | -124,112 | |||
Treasury stock, at cost - 2,284 shares at June 30, 2014 and December 31, 2013, respectively | -22 | -22 | -22 | |||
Total stockholders’ equity | 22,281 | 22,416 | -5,887 | |||
Total liabilities and stockholders' equity | $27,997 | $29,622 | $19,620 | |||
[1] | Less than $1 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | |||
Common stock, par value (in dollars per share) | $0.00 | $0.00 | $0.00 |
Common stock, shares authorized | 100,000,000 | 300,000,000 | 250,000,000 |
Common stock, shares issued | 24,137,177 | 18,682,310 | 6,041,946 |
Treasury stock, shares | 2,284 | 2,284 | 2,284 |
Allowance for Doubtful Accounts Receivable, Current | $20 | $16 | $0 |
Accounts Receivable Related Parties Net Current | 478 | 470 | ' |
Allowance for Doubtful Other Receivables, Current | $10 | $10 | ' |
Series A Convertible Preferred Stock [Member] | ' | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 | 25,000,000 |
Preferred stock, shares issued | 0 | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 | 0 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | $163 | $0 | $413 | $0 | $406 | $0 |
Cost of revenue and operating expenses | ' | ' | ' | ' | ' | ' |
Cost of components and personnel | 41 | 0 | 105 | 0 | 102 | 0 |
General and administrative expenses | 1,447 | 1,158 | 3,126 | 2,508 | 5,501 | 5,543 |
Development | 2,056 | 1,352 | 4,510 | 2,999 | 5,468 | 4,806 |
Stock based compensation | 148 | 201 | 361 | 336 | 796 | 554 |
Amortization and depreciation | 958 | 435 | 1,906 | 870 | 2,370 | 2,063 |
Total cost of revenue and operating expenses | 4,650 | 3,146 | 10,008 | 6,713 | 14,237 | 12,966 |
Loss from operations | -4,487 | -3,146 | -9,595 | -6,713 | -13,831 | -12,966 |
Other | ' | ' | ' | ' | ' | ' |
Other expense | ' | ' | ' | ' | -10,068 | 0 |
Inducement expense | ' | ' | ' | ' | -391 | 0 |
Interest expense, net | -43 | -424 | -88 | -1,038 | -2,227 | -535 |
Impairment | ' | ' | ' | ' | -933 | -286 |
Total other income (expense) | -43 | -424 | -88 | -1,038 | -13,619 | -821 |
Loss before income tax provision | -4,530 | -3,570 | -9,683 | -7,751 | -27,450 | -13,787 |
Income tax provision | 0 | 0 | 0 | 0 | 0 | 0 |
Net loss | ($4,530) | ($3,570) | ($9,683) | ($7,751) | ($27,450) | ($13,787) |
Basic and diluted net loss per share (in dollars per share) | ($0.20) | ($0.49) | ($0.47) | ($1.15) | ($2.86) | ($2.29) |
Weighted average number of shares outstanding basic and diluted (in shares) | 22,829 | 7,319 | 20,815 | 6,723 | 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 | ||||||
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 | ' | ' | ' | |
Conversion of 2011 Convertible Note Payable Principal Balance | 0 | ' | ' | ' | ' | |
Issuance of stock for inducement of 2011 Convertible note payable | 400 | 0 | [1] | 400 | 0 | 0 |
Issuance of stock for inducement of 2011 Convertible note payable (in shares) | ' | 11,428 | ' | ' | ' | |
Exercise of options | 5 | 0 | [1] | 5 | 0 | 0 |
Exercise of options (in shares) | ' | 660 | ' | ' | ' | |
Issuance of warrants for the Bridge Loan and extinguishment | 143 | 0 | 143 | 0 | 0 | |
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 | ' | ' | ' | |
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 | ' | ' | ' | |
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 | 0 | 0 | 0 | |
Issuance of stock for inducement of 2011 Convertible note payable (in shares) | ' | 159,330 | ' | ' | ' | |
Exercise of options (in shares) | 93,805 | 857,250 | ' | ' | ' | |
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 for the Bridge Loan and extinguishment | 401 | 0 | 401 | 0 | 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) | ' | 41,672 | ' | ' | ' | |
Issuance of Warrants - conversion of bridge loan | 392 | 0 | 392 | 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 |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | ' | ' | ' | ' |
Net loss | ($9,683) | ($7,751) | ($27,450) | ($13,787) |
Adjustments to reconcile net loss to net cash used in operating activities | ' | ' | ' | ' |
Stock based compensation | 361 | 336 | 796 | 554 |
Share-based consulting and other services | 86 | 34 | 94 | 100 |
Allowance for doubtful accounts | 4 | 0 | 16 | 0 |
Depreciation and amortization | 1,906 | 870 | 2,370 | 2,063 |
Impairment | ' | ' | 933 | 286 |
Accretion of financing instruments | 0 | 119 | 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 | -213 | 0 | -804 | 0 |
Inventory | -1,285 | -453 | -2,621 | 0 |
Other current assets | -16 | -362 | 293 | 28 |
Accounts payable | -1,047 | 1,510 | 1,186 | -32 |
Accrued expenses | 300 | 168 | 21 | 191 |
Accrued bonuses | ' | ' | 0 | 1,258 |
Accrued interest and fees | 0 | 1,110 | 1,300 | 1,180 |
Deferred revenue - related party | ' | ' | 480 | 0 |
Due to related party | 955 | 1,218 | 91 | 1,098 |
Net cash used in operating activities | -8,632 | -3,201 | -14,395 | -5,561 |
Cash flows from investing activities | ' | ' | ' | ' |
Capital expenditures for property and equipment | -114 | -12 | -294 | -515 |
Capitalization of intangible assets | -565 | -1,707 | -2,602 | -4,491 |
Net cash used in investing activities | -679 | -1,719 | -2,896 | -5,006 |
Cash flows from financing activities | ' | ' | ' | ' |
Payment of capital lease | -62 | 0 | -123 | 0 |
Proceeds from convertible notes payable to related party | 0 | 450 | 450 | 10,315 |
Proceeds from convertible bridge loan payable ($2,747 to related party) | 0 | 4,224 | 4,994 | 0 |
Repayment of convertible bridge loan payable | ' | ' | -125 | 0 |
Purchase of treasury stock | ' | ' | 0 | -12 |
Proceeds from exercise of options | ' | ' | 0 | 2 |
Proceeds from issuance of warrants | ' | ' | 1 | 0 |
Net proceeds from issuance of common stock | 8,816 | 0 | 17,340 | 400 |
Net cash provided by financing activities | 8,754 | 4,674 | 22,537 | 10,705 |
Net (decrease) increase in cash | -557 | -246 | 5,246 | 138 |
Cash, beginning of period | 5,517 | 271 | 271 | 133 |
Cash, end of period | 4,960 | 25 | 5,517 | 271 |
Supplemental cash flow disclosures of investing and financing activities | ' | ' | ' | ' |
Stock issued as payment of bonus | 195 | 0 | ' | ' |
Conversion of notes payable | 0 | 15,000 | 15,000 | 0 |
Conversion of convertible bridge loan payable including interest and fees | 0 | 4,041 | 9,023 | 0 |
Interest and fees refinanced under the bridge loan | ' | ' | 5,408 | 0 |
Debt discount recorded on bridge loan | 0 | 336 | 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 | $90 | $90 | $180 | $180 |
CONDENSED_STATEMENTS_OF_CASH_F1
CONDENSED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 30, 2013 | Dec. 31, 2013 |
Proceeds from Related Party Debt | $2,747 | $2,727 |
NATURE_OF_OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Going Concern [Abstract] | ' | ' |
Going Concern Disclosure [Text Block] | ' | ' |
NOTE 2 — GOING CONCERN | 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 June 30, 2014, the Company had an accumulated deficit of $161.2 million and a net loss of $9.7 million for the six months ended June 30, 2014. This and other factors raise substantial doubt about the Company’s ability to continue as a 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 our ability to obtain other financing or fulfill our existing backlog. As of August 14, 2014, the Company has a total backlog of $34.3 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 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. | 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. | |
ORGANIZATION_AND_SUMMARY_OF_SI
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ' | ||||||||||||||||||
NOTE 1 — ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||||
Description of Business | Use of Estimates | |||||||||||||||||||
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. The Company’s 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. | 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. | |||||||||||||||||||
Basis of Presentation | Cash and Cash Equivalents | |||||||||||||||||||
The accompanying unaudited financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read in conjunction with the 2013 Financial Statements as filed on the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | 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. | |||||||||||||||||||
The preparation of financial statements in conformity with these accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of expenses during the reported period. Ultimate results could differ from the estimates of management. | Concentrations of Credit Risk for Cash | |||||||||||||||||||
In the opinion of management, the unaudited financial statements included herein contain all adjustments necessary to present fairly the Company's financial position as of June 30, 2014 and the results of its operations and cash flows for the three months and six months ended June 30, 2014 and 2013. Such adjustments are of a normal recurring nature. The results of operations for the three months and six months ended June 30, 2014 may not be indicative of results for the full year. | 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. | |||||||||||||||||||
Use of Estimates | 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. | |||||||||||||||||||
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. | Inventory | |||||||||||||||||||
Cash and Cash Equivalents | 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. | |||||||||||||||||||
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 of $250,000. | Intangible Assets | |||||||||||||||||||
Concentrations of Credit Risk | 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 does not have any off-balance-sheet concentrations of credit risk. Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The company’s credit risk is primarily attributable to its cash and account receivables. 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 June 30, 2014. For customers, management assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. The majority of trade receivables are those of related parties and management does not expect any losses from non-performance of these parties. | 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. | |||||||||||||||||||
Inventory | 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. | |||||||||||||||||||
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. | 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. | |||||||||||||||||||
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. | |||||||||||||||||||
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. | Property, Plant and Equipment | |||||||||||||||||||
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. | 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. | |||||||||||||||||||
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. | Impairment of Long-Lived Assets | |||||||||||||||||||
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. | 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. | |||||||||||||||||||
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. | Allowance for Doubtful Accounts | |||||||||||||||||||
Property, Plant and Equipment | 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. | |||||||||||||||||||
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. | Revenue Recognition | |||||||||||||||||||
Impairment of Long-Lived Assets | 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. | |||||||||||||||||||
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. | Development Expenses | |||||||||||||||||||
Allowance for Doubtful Accounts | 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. | |||||||||||||||||||
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 $20,000 and $0 for the six months ended June 30, 2014 and 2013, respectively. | Income Taxes | |||||||||||||||||||
Revenue Recognition | 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 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. | 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. | |||||||||||||||||||
Development Expenses | Stock Based Compensation | |||||||||||||||||||
Development expenses consist primarily of salaries and related costs for technical and programming personnel, are expensed as incurred and were $4,510,000 and $2,999,000 for the six months ended June 30, 2014 and 2013. | 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. | |||||||||||||||||||
Income Taxes | 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. | |||||||||||||||||||
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. | 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. | |||||||||||||||||||
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 June 30, 2014, December 31, 2013 and 2012. | Treasury Stock | |||||||||||||||||||
Stock Based Compensation | 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. | |||||||||||||||||||
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. | Earnings Per Share | |||||||||||||||||||
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. | 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. | |||||||||||||||||||
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. | Warranty Reserve | |||||||||||||||||||
Treasury Stock | 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. | |||||||||||||||||||
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. | Fair Value of Financial Instruments | |||||||||||||||||||
Earnings Per Share | 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. | |||||||||||||||||||
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 debt, subject to anti-dilution limitations. All such potentially dilutive instruments were anti-dilutive as of June 30, 2014 and December 31, 2013. At June 30, 2014 and December 31, 2013 approximately 5.23 million and 5.35 million shares underlying the options, warrants and convertible debt were anti-dilutive. | 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. | |||||||||||||||||||
Warranty Reserve | 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: | |||||||||||||||||||
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 quarter ending June 30, 2014 and fiscal year ending December 31, 2013 was $10,000 and $8,000, respectively. | 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. | ||||||||||||||||||
Fair Value of Financial Instruments | Level 2: | Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | ||||||||||||||||||
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. | 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. | ||||||||||||||||||
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. | 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: | |||||||||||||||||||
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 in active markets for identical assets or liabilities. | |||||||||||||||||||
Level 2 — | Observable prices that are based on inputs not quoted on active markets, but corroborated by market data. | Quoted Prices | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Carrying Amount | |||||||||||||||
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. | in Active Markets for Identical | ||||||||||||||||||
Recently Issued Accounting Principles | Assets/Liabilities | |||||||||||||||||||
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. | (Level 1) | |||||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers: Topic 606. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to illustrate the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. This ASU is effective retrospectively for fiscal years, and interim periods within those years beginning after December 15, 2016 for public companies and 2017 for non-public entities. Management is evaluating the effect, if any, on the Company’s financial position and results of operations. | Assets: | |||||||||||||||||||
In June 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation — Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. | 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 | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | ' | |||||||||||||||
Inventory Disclosure [Text Block] | ' | ' | |||||||||||||||
NOTE 3 — INVENTORY | 4 — INVENTORY | ||||||||||||||||
Inventories included in the accompanying condensed balance sheet are stated at the lower of cost or market as summarized below: | Inventories included in the accompanying balance sheet are stated at the lower of cost or market as summarized below: | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Raw materials consisting of purchased parts, components and supplies | $ | 1,671,000 | $ | 2,461,000 | December 31, | December 31, | |||||||||||
Finished goods | 2,531,000 | 455,000 | 2013 | 2012 | |||||||||||||
Total Inventory | $ | 4,202,000 | $ | 2,916,000 | Raw materials consisting of purchased parts, components and work in process | $ | 2,461,000 | $ | — | ||||||||
Based upon the Company’s analysis of the lower of cost or market, there was no reserve for inventory recorded as of June 30, 2014 and December 31, 2013. | 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 | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||
Receivables [Abstract] | ' | ' | |||||||||||||||
Financing Receivables [Text Block] | ' | ' | |||||||||||||||
NOTE 4 — ACCOUNTS RECEIVABLE | 5 — ACCOUNTS RECEIVABLE | ||||||||||||||||
Accounts receivable consist of the following: | Accounts receivable consist of the following: | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Accounts receivable | $ | 528,000 | $ | 324,000 | December 31, | December 31, | |||||||||||
Accounts receivable – related parties | 488,000 | 480,000 | 2013 | 2012 | |||||||||||||
1,016,000 | 804,000 | Accounts receivable | $ | 324,000 | $ | — | |||||||||||
Net allowance for doubtful accounts | -20,000 | -16,000 | Accounts receivable – related party | 480,000 | — | ||||||||||||
Net accounts receivable | $ | 996,000 | $ | 788,000 | Net allowance for doubtful accounts | (16,000 | ) | — | |||||||||
Net accounts receivable | $ | 788,000 | $ | — | |||||||||||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ' | ||||||||||||||||||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ' | ||||||||||||||||||||||||
NOTE 5 — PROPERTY AND EQUIPMENT | 6 — PROPERTY AND EQUIPMENT | |||||||||||||||||||||||||
Property and equipment consist of the following: | ||||||||||||||||||||||||||
Property and equipment consist of the following: | ||||||||||||||||||||||||||
Useful Life (years) | December 31, | |||||||||||||||||||||||||
Useful | June 30, | December 31, | 2013 | 2012 | ||||||||||||||||||||||
Life | 2014 | 2013 | Cost: | |||||||||||||||||||||||
Cost: | Furniture and equipment | 3 – 7 years | $ | 2,633,000 | $ | 1,970,000 | ||||||||||||||||||||
Furniture and equipment | 3 – 7 years | $ | 2,746,000 | $ | 2,633,000 | Hardware | 4 – 5 years | — | 2,486,000 | |||||||||||||||||
Accumulated depreciation: | (1,940,000 | ) | (1,827,000 | ) | 2,633,000 | 4,456,000 | ||||||||||||||||||||
Property and equipment, net | $ | 806,000 | $ | 806,000 | Accumulated depreciation: | (1,827,000 | ) | (2,731,000 | ) | |||||||||||||||||
Property and equipment, net | $ | 806,000 | $ | 1,725,000 | ||||||||||||||||||||||
Depreciation expense amounted to approximately $113,000 and $177,000 for the six months ended June 30, 2014 and 2013, respectively. | 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 | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||
NOTE 6 — INTANGIBLE ASSETS | 7 — INTANGIBLE ASSETS | |||||||||||||||||||||||||||||||||||||
Intangible assets consist of the following: | Intangible assets consist of the following: | |||||||||||||||||||||||||||||||||||||
Software Development Costs | Patents & Licenses | |||||||||||||||||||||||||||||||||||||
Costs | A.A. | Cost | A.A. | Total | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 14,788,000 | $ | -2,574,000 | $ | 12,275,000 | $ | -6,293,000 | $ | 18,196,000 | Software Development Costs | Patents & Licenses | ||||||||||||||||||||||||||
Additions | 462,000 | — | 103,000 | — | 565,000 | Cost | A.A. | Cost | A.A. | Total | ||||||||||||||||||||||||||||
Amortization | — | -1,460,000 | — | -333,000 | -1,793,000 | Balance as of December 31, 2011 | $ | 7,975,000 | $ | (479,000 | ) | $ | 12,051,000 | $ | (5,010,000 | ) | $ | 14,537,000 | ||||||||||||||||||||
Balance as of June 30, 2014 | $ | 15,250,000 | $ | -4,034,000 | $ | 12,378,000 | $ | -6,626,000 | $ | 16,968,000 | Additions | 4,251,000 | — | 239,000 | — | 4,490,000 | ||||||||||||||||||||||
Impairments | — | — | (18,000 | ) | — | (18,000 | ) | |||||||||||||||||||||||||||||||
Amortization of intangible assets amounted to $1,793,000 and $693,000 for the six months ended June 30, 2014 and 2013, respectively. The total cost basis of intangible assets at June 30, 2014 was $27.6 million which consists of $26.9 million of costs that are subject to amortization and $0.7 million of assets that are not subject to amortization. | Amortization | — | (782,000 | ) | — | (619,000 | ) | (1,401,000 | ) | |||||||||||||||||||||||||||||
Software Development Costs | Balance as of December 31, 2012 | $ | 12,226,000 | $ | (1,261,000 | ) | $ | 12,272,000 | $ | (5,629,000 | ) | $ | 17,608,000 | |||||||||||||||||||||||||
At June 30, 2014 the Company has capitalized a total of $15.3 million of software development costs. Included in the capitalized costs is $0.6 million of costs associated with enhancement of the xMax cognitive radio products. These costs are not being amortized considering that the enhancement is not yet incorporated in products and available for sale. During the six months ended June 30, 2014 and 2013, the Company recognized amortization of software development costs available for sale of $1.5 million and $0.4 million, respectively. | Additions | 2,562,000 | — | 39,000 | — | 2,601,000 | ||||||||||||||||||||||||||||||||
Patents & Licenses | Impairments | — | — | (36,000 | ) | — | (36,000 | ) | ||||||||||||||||||||||||||||||
At June 30, 2014 the Company has capitalized a total of $12.4 million of patents & licenses. Included in the capitalized costs is $12.3 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 $0.3 million of amortization expense related to patents and licenses for the six months ended June 30, 2014 and 2013. | Amortization | — | (1,313,000 | ) | — | (664,000 | ) | (1,977,000 | ) | |||||||||||||||||||||||||||||
Estimated amortization expense for the twelve-month periods ended June 30 as follows: | Balance as of December 31, 2013 | $ | 14,788,000 | $ | (2,574,000 | ) | $ | 12,275,000 | $ | (6,293,000 | ) | $ | 18,196,000 | |||||||||||||||||||||||||
2015 | $ | 3,593,000 | 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. | |||||||||||||||||||||||||||||||||||
2016 | 3,481,000 | Software Development Costs: | ||||||||||||||||||||||||||||||||||||
2017 | 3,068,000 | 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. | ||||||||||||||||||||||||||||||||||||
2018 | 3,030,000 | Patents & Licenses: | ||||||||||||||||||||||||||||||||||||
2019 and thereafter | 3,083,000 | 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. | ||||||||||||||||||||||||||||||||||||
$ | 16,255,000 | 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 | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||
Leases, Capital [Abstract] | ' | ' | ||||||||
Capital Leases in Financial Statements of Lessee Disclosure [Text Block] | ' | ' | ||||||||
NOTE 7 — OBLIGATION UNDER CAPITAL LEASE | 8 — OBLIGATION UNDER CAPITAL LEASE | |||||||||
The future minimum payments for capital leases as of June 30, 2014 are as follows: | The future minimum payments for capital leases as at December 31, 2013 are as follows: | |||||||||
2014 | $ | 129,000 | ||||||||
2015 | 63,000 | |||||||||
Total minimum lease payments | 192,000 | 2014 | $ | 129,000 | ||||||
Less Amount representing interest | -7,000 | 2015 | 128,000 | |||||||
Present value of the net minimum lease payments | 185,000 | Total minimum lease payments | 257,000 | |||||||
Less obligations under capital lease maturing within one year | -129,000 | Less amount representing interest | 10,000 | |||||||
Long-term portion of obligations under capital lease | $ | 56,000 | Present value of the net minimum lease payments | 247,000 | ||||||
The interest rate for capital leases was 4%. | 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
Debt Disclosure [Text Block] | ' | ' |
NOTE 8 — CONVERTIBLE NOTES PAYABLE | 9 —CONVERTIBLE NOTES PAYABLE | |
Treco | ||
On October 6, 2011, the Company entered into a convertible promissory note (the “$2 million Convertible Note”) in favor of Treco International, S.A. (“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 June 30, 2014, $2 million of principal balance was outstanding under the $2 million Convertible Note. The accrued interest at June 30, 2014 and 2013 was $42,000. On May 7, 2014, the Company issued 34,091 shares in repayment of $90,000 of interest. | 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 | ||||||||
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) | (5.50 | )% | (5.50 | )% | |||||
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 | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||
Warrants and Rights Note Disclosure [Abstract] | ' | ' | |||||||||||||||||||||||
Stockholders Equity Note Disclosure [Text Block] | ' | ' | |||||||||||||||||||||||
NOTE 10 — EQUITY | 11 — EQUITY | ||||||||||||||||||||||||
On April 22, 2014, the Company closed an underwritten public offering of 5,265,000 shares of common stock, par value $0.00001 per share, at a purchase price to the public of $1.90 per share, for net proceeds to the Company, after deducting underwriter discounts and offering expenses, of $8,815,655. Roth Capital Partners and Feltl and Company acted as underwriters for the offering. | |||||||||||||||||||||||||
On June 11, 2014, 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 to the shareholders to authorize the Board to decrease common stock from 300,000,000 shares of common stock to 100,000,000 shares of common stock. | 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. | ||||||||||||||||||||||||
Warrants and Options | |||||||||||||||||||||||||
The Company has issued warrants and options outside of the equity incentive plans. A summary of the warrant and option activity is as follows: | 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. | ||||||||||||||||||||||||
Number of Warrants | Weighted Average | ||||||||||||||||||||||||
and Options | Exercise | Initial Public Offering | |||||||||||||||||||||||
(in Shares) | Price | ||||||||||||||||||||||||
Outstanding January 1, 2014 | 5,229,076 | $ | 10.57 | 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. | |||||||||||||||||||||
Granted | 58,300 | 1.4 | |||||||||||||||||||||||
Exercised | — | — | Over-allotment Option | ||||||||||||||||||||||
Forfeited or Expired | -113,013 | 17.74 | |||||||||||||||||||||||
Outstanding, June 30, 2014 | 5,174,363 | 10.31 | 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. | ||||||||||||||||||||||
Exercisable, June 30, 2014 | 4,775,193 | $ | 10.68 | ||||||||||||||||||||||
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 | ||||||||||||||||||||
Forfeited/Expired | |||||||||||||||||||||||||
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 |
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 | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ||||||||
Commitments Disclosure [Text Block] | ' | ' | ||||||||
NOTE 9 — COMMITMENTS | 13 — COMMITMENTS | |||||||||
The Company's office rental, deployment sites and warehouse facilities expenses aggregated approximately $206,000 and $134,000 for the six months ended June 30, 2014 and 2013, respectively. The leases will expire on different dates from 2014 through 2016. The company also entered into contract agreements with one 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: | ||||||||||
Twelve Months | 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: | |||||||||
Ended | ||||||||||
June 30, | Year Ending December 31, | |||||||||
2015 | $ | 1,966,000 | 2014 | $ | 2,523,000 | |||||
2016 | 158,000 | 2015 | 309,000 | |||||||
$ | 2,124,000 | 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Risks and Uncertainties [Abstract] | ' | ' |
Concentration Risk Disclosure [Text Block] | ' | ' |
NOTE 12 — CONCENTRATIONS | 14 — CONCENTRATIONS | |
During the six months ended June 30, 2014, the Company recorded revenue from individual sales or services rendered of $104,000 (25%), $100,000 (24%), $100,000 (24%), $50,000 (12%) and $50,000 (12%) in excess of 10% of the Company’s total sales. | ||
At June 30, 2014, approximately 94% of net accounts receivable was due from five customers broken down individually as follows; $295,000 (30%), $214,000 (21%), $175,000 (18%), $155,000 (15%), and $98,000 (10%). | 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. | |
During the six months ended June 30, 2014, approximately 23% of the Company’s inventory purchases were derived from two vendors. | ||
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' | ' |
Related Party Transactions Disclosure [Text Block] | ' | ' |
NOTE 11 — RELATED PARTY TRANSACTIONS | 15 — RELATED PARTY TRANSACTIONS | |
MBTH | ||
On April 29, 2014, the Company entered into a management agreement (the “Management Agreement”) with MB Technology Holdings, LLC (“MBTH”), pursuant to which MBTH agreed to provide certain management and financial services to the Company for a monthly fee of $25,000. The Management Agreement was effective January 1, 2014. The Company incurred fees related to the Management Agreement of $150,000 and $0, respectively, for the six months ended June 30, 2014 and 2013. As of June 30, 2014, MBTH owned approximately 25.63% of the Company’s outstanding shares. Roger Branton, the Company’s Chief Financial Officer, and George Schmitt, the Company’s Executive Chairman, are directors of MBTH, and Richard Mooers, a director of the Company, is the CEO and a director of MBTH. | MBTH | |
During the six months ended June 30, 2014, MBTH incurred no new liabilities on behalf of the Company. From January 1, 2014 to June 30, 2014, the Company repaid MBTH $395,000 for liabilities previously paid by MBTH. The due to related party balance was $1,131,000 as of June 30, 2014. | ||
Deferred Revenue | 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. | |
On October 16, 2013, the Company completed the first delivery of our xMax comprehensive cognitive radio system, shipping equipment and providing engineering services required to fulfill the $179,000 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 June 30, 2014. | ||
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 June 30, 2014. | Due from Related Party | |
Mooers Branton & Co. Incorporated | ||
On March 2, 2006, the Company entered into a management agreement (the “MBC 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 MBC Management Agreement was terminated on January 1, 2014. The Company incurred fees related to the MBC Management Agreement of $0 and $480,000, respectively, for the six months ended June 30, 2014 and 2013. MBC is beneficially controlled and operated by Richard Mooers, a director and Roger Branton, a director and the Chief Financial Officer, of the Company. | 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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Contingencies Disclosure [Text Block] | ' | ' |
NOTE 13 — CONTINGENCIES | 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. As of June 30, 2014, the Company did not have any legal actions pending. | ||
Litigation settled with former banker | 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. | |
On April 22, 2014, the Company’s former banker filed a lawsuit in the U.S. District Court for the Southern District of New York alleging that the Company breached the underwriting agreement signed in November 2013. The plaintiff has alleged damages in excess of $75,000. The parties reached a confidential agreement to settle the action and the lawsuit was dismissed with prejudice on June 18, 2014. The amount of the settlement did not have a material impact on the Company’s financial position or results of operations. | ||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' | ' |
Subsequent Events [Text Block] | ' | ' |
NOTE 14 — SUBSEQUENT EVENTS | 17 — SUBSEQUENT EVENTS | |
On July 28, 2014, the Company has announced that it has been awarded a subcontract by CACI International Inc to provide communications and network services on CACI’s prime contract with the U.S. Army's Communications-Electronics Research, Development and Engineering Center Space and Terrestrial Communications Directorate. The prime contract has a duration of five-years (three base plus two options) and is a multiple-award indefinite delivery/indefinite quantity (IDIQ) contract. This represents the second subcontract awarded to xG Technology under the multiple-award contract. The initial subcontract award was announced on June 23, 2014. As of the date of this filing, no determination has been made as to how much the Company will be awarded from the prime contract because the company is still negotiating the scope of work which will be documented in each task order which will define the ceiling and funding to be performed for both subcontracts. No task orders have been received as of the date of this filing. | ||
On August 1, 2014, the Company filed a shelf registration statement on Form S-3 with the SEC to register shares of our common stock for sale, giving us the opportunity to raise funding when considered appropriate at prices and on terms to be determined at the time of any such offerings. Pursuant to the instructions to Form S-3, the Company currently has the ability to sell shares under the shelf registration statement, during any 12-month period, in an amount less than or equal to one-third of the aggregate market value of our common stock held by non-affiliates. | 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 September 19, 2014, we also entered into a Purchase Agreement (the “$15M Purchase Agreement”) and a Registration Rights Agreement (the “Registration Rights Agreement”) with Lincoln Park. In consideration for entering into the transaction under the $15M Purchase Agreement, we issued 175,000 shares of our common stock to Lincoln Park upon execution of the $15M Purchase Agreement. Lincoln Park also agreed to purchase up to $15,000,000 of our shares of common stock over the 24-month term of the $15M Purchase Agreement. | ||
The $15M Purchase Agreement provides that, from time to time over the term of the $15M Purchase Agreement, on any business day, as often as every other business day, and at our sole discretion, we may require Lincoln Park to purchase up to 100,000 shares of our common stock (a “Regular Purchase”); provided, however, that (i) a Regular Purchase may be increased to up to 150,000 shares of our common stock provided that the closing sale price of our common stock is not below $2.00 on the purchase date, (ii) a Regular Purchase may be increased to up to 200,000 shares of our common stock provided that the closing sale price of our common stock is not below $2.50 on the purchase date and (iii) a Regular Purchase may be increased to up to 250,000 shares of our common stock provided that the closing sale price of our common stock is not below $3.00 on the purchase date; and provided, further, that the aggregate price of any Regular Purchase shall not exceed $1,000,000. We may not sell any shares of our common stock as a Regular Purchase on a date in which the closing sale price of our common stock is below $1.50. The purchase price for Regular Purchases shall be equal to the lesser of (i) the lowest sale price of our common stock on the purchase date and (ii) the average of the three (3) lowest closing sale prices of our common stock during the ten (10) business days prior to the purchase date, as reported on the NASDAQ Capital 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. | |
We also have the right, at our sole discretion, to require Lincoln Park to make an accelerated purchase on the business day following the purchase date of a Regular Purchase in an amount up to the lesser of (i) 200% of the number of shares of common stock purchased as a Regular Purchase and (ii) 30% of the trading volume of our common stock on such accelerated purchase date, provided that the closing price of our common stock equals or exceeds $1.50 on such accelerated purchase date, as reported on the NASDAQ Capital Market. The purchase price per share of common stock for any accelerated purchase will be equal to the lesser of (i) the closing sale price of our common stock on the accelerated purchase date and (ii) 95% of the volume weighted average price of our common stock on the accelerated purchase date. | ||
On September 22, 2014, the Company entered into a Purchase Agreement (the “$1M Purchase Agreement”) with Lincoln Park pursuant to which we offered 500,000 shares of our common stock to Lincoln Park at a price of $2.00 per share, for an aggregate purchase price of $1,000,000. The closing of the transaction contemplated by the $1M Purchase Agreement occurred on September 24, 2014. | ||
On September 30, 2014, the Company received certification from the U.S. Federal Communications Commission (FCC) in connection with the CN3200 Dual Band Routing Modem (“CN3200”). The certification allows the Company to begin delivery of this technology throughout the U.S. to both current and prospective customers. | ||
ORGANIZATION_AND_SUMMARY_OF_SI1
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||
Accounting Policies [Abstract] | ' | ' | ||||||||||||||||||
Description of Business [Policy Text Block] | ' | ' | ||||||||||||||||||
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. The Company’s 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. | ||||||||||||||||||||
Basis of Accounting, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Basis of Presentation | ||||||||||||||||||||
The accompanying unaudited financial statements were prepared using generally accepted accounting principles for interim financial information and the instructions to Form 10-Q and Regulation S-X. Accordingly, these financial statements do not include all information or notes required by generally accepted accounting principles for annual financial statements and should be read in conjunction with the 2013 Financial Statements as filed on the Company's Annual Report on Form 10-K for the year ended December 31, 2013. | ||||||||||||||||||||
The preparation of financial statements in conformity with these accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements; and the reported amounts of expenses during the reported period. Ultimate results could differ from the estimates of management. | ||||||||||||||||||||
In the opinion of management, the unaudited financial statements included herein contain all adjustments necessary to present fairly the Company's financial position as of June 30, 2014 and the results of its operations and cash flows for the three months and six months ended June 30, 2014 and 2013. Such adjustments are of a normal recurring nature. The results of operations for the three months and six months ended June 30, 2014 may not be indicative of results for the full year. | ||||||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Use of Estimates | 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. | ||||||||||||||||||||
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, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Cash and Cash Equivalents | 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 of $250,000. | ||||||||||||||||||||
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. | ||||||||||||||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Concentrations of Credit Risk | Concentrations of Credit Risk for Cash | |||||||||||||||||||
The Company does not have any off-balance-sheet concentrations of credit risk. Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the company. The company’s credit risk is primarily attributable to its cash and account receivables. 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 June 30, 2014. For customers, management assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. The majority of trade receivables are those of related parties and management does not expect any losses from non-performance of these parties. | ||||||||||||||||||||
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, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Inventory | 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. | ||||||||||||||||||||
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, Finite-Lived, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Intangible Assets | 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. | 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. | |||||||||||||||||||
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. | 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. | |||||||||||||||||||
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. | ||||||||||||||||||||
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, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Property, Plant and Equipment | 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. | ||||||||||||||||||||
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 or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Impairment of Long-Lived Assets | 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. | ||||||||||||||||||||
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. | ||||||||||||||||||||
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Allowance for Doubtful Accounts | 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 $20,000 and $0 for the six months ended June 30, 2014 and 2013, respectively. | ||||||||||||||||||||
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, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Revenue Recognition | 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. | ||||||||||||||||||||
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. | ||||||||||||||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Development Expenses | Development Expenses | |||||||||||||||||||
Development expenses consist primarily of salaries and related costs for technical and programming personnel, are expensed as incurred and were $4,510,000 and $2,999,000 for the six months ended June 30, 2014 and 2013. | ||||||||||||||||||||
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 Tax, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Income Taxes | 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 June 30, 2014, December 31, 2013 and 2012. | 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. | ||||||||||||||||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Stock Based Compensation | 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. | 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. | |||||||||||||||||||
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. | ||||||||||||||||||||
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 Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Treasury Stock | 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. | ||||||||||||||||||||
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, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Earnings Per Share | 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 debt, subject to anti-dilution limitations. All such potentially dilutive instruments were anti-dilutive as of June 30, 2014 and December 31, 2013. At June 30, 2014 and December 31, 2013 approximately 5.23 million and 5.35 million shares underlying the options, warrants and convertible debt were anti-dilutive. | 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. | |||||||||||||||||||
Guarantees, Indemnifications and Warranties Policies [Policy Text Block] | ' | ' | ||||||||||||||||||
Warranty Reserve | 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 quarter ending June 30, 2014 and fiscal year ending December 31, 2013 was $10,000 and $8,000, respectively. | 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, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Fair Value of Financial Instruments | 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. | 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. | 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: | 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 in active markets for identical assets or liabilities. | 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 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. | 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 | ||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ' | ||||||||||||||||||
Recently Issued Accounting Principles | 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. | ||||||||||||||||||||
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers: Topic 606. This update affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets, unless those contracts are within the scope of other standards. The guidance in this update supersedes the revenue recognition requirements in Topic 605, Revenue Recognition and most industry-specific guidance. The core principle of the guidance is that an entity should recognize revenue to illustrate the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The new guidance also includes a cohesive set of disclosure requirements that will provide users of financial statements with comprehensive information about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a reporting organization’s contracts with customers. This ASU is effective retrospectively for fiscal years, and interim periods within those years beginning after December 15, 2016 for public companies and 2017 for non-public entities. Management is evaluating the effect, if any, on the Company’s financial position and results of operations. | 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. | |||||||||||||||||||
In June 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718, Compensation — Stock Compensation, as it relates to awards with performance conditions that affect vesting to account for such awards. The performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. If the performance target becomes probable of being achieved before the end of the requisite service period, the remaining unrecognized compensation cost should be recognized prospectively over the remaining requisite service period. The total amount of compensation cost recognized during and after the requisite service period should reflect the number of awards that are expected to vest and should be adjusted to reflect those awards that ultimately vest. The requisite service period ends when the employee can cease rendering service and still be eligible to vest in the award if the performance target is achieved. | ||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT
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) | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||
Inventory Disclosure [Abstract] | ' | ' | |||||||||||||||
Schedule of Inventory, Current [Table Text Block] | ' | ' | |||||||||||||||
Inventories included in the accompanying condensed balance sheet are stated at the lower of cost or market as summarized below: | Inventories included in the accompanying balance sheet are stated at the lower of cost or market as summarized below: | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Raw materials consisting of purchased parts, components and supplies | $ | 1,671,000 | $ | 2,461,000 | December 31, | December 31, | |||||||||||
Finished goods | 2,531,000 | 455,000 | 2013 | 2012 | |||||||||||||
Total Inventory | $ | 4,202,000 | $ | 2,916,000 | Raw materials consisting of purchased parts, components and work in process | $ | 2,461,000 | $ | — | ||||||||
Finished goods | 455,000 | — | |||||||||||||||
Total Inventory | $ | 2,916,000 | $ | — | |||||||||||||
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 6 Months Ended | 12 Months Ended | |||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||
Receivables [Abstract] | ' | ' | |||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | ' | |||||||||||||||
Accounts receivable consist of the following: | Accounts receivable consist of the following: | ||||||||||||||||
June 30, | December 31, | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Accounts receivable | $ | 528,000 | $ | 324,000 | December 31, | December 31, | |||||||||||
Accounts receivable – related parties | 488,000 | 480,000 | 2013 | 2012 | |||||||||||||
1,016,000 | 804,000 | Accounts receivable | $ | 324,000 | $ | — | |||||||||||
Net allowance for doubtful accounts | -20,000 | -16,000 | Accounts receivable – related party | 480,000 | — | ||||||||||||
Net accounts receivable | $ | 996,000 | $ | 788,000 | Net allowance for doubtful accounts | (16,000 | ) | — | |||||||||
Net accounts receivable | $ | 788,000 | $ | — | |||||||||||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ' | ' | ||||||||||||||||||||||||
Property, Plant and Equipment [Table Text Block] | ' | ' | ||||||||||||||||||||||||
Property and equipment consist of the following: | Property and equipment consist of the following: | |||||||||||||||||||||||||
Useful | June 30, | December 31, | Useful Life (years) | December 31, | ||||||||||||||||||||||
Life | 2014 | 2013 | 2013 | 2012 | ||||||||||||||||||||||
Cost: | Cost: | |||||||||||||||||||||||||
Furniture and equipment | 3 – 7 years | $ | 2,746,000 | $ | 2,633,000 | Furniture and equipment | 3 – 7 years | $ | 2,633,000 | $ | 1,970,000 | |||||||||||||||
Accumulated depreciation: | (1,940,000 | ) | (1,827,000 | ) | Hardware | 4 – 5 years | — | 2,486,000 | ||||||||||||||||||
Property and equipment, net | $ | 806,000 | $ | 806,000 | 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) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ' | ||||||||||||||||||||||||||||||||||||
Intangible assets consist of the following: | Intangible assets consist of the following: | |||||||||||||||||||||||||||||||||||||
Software Development Costs | Patents & Licenses | |||||||||||||||||||||||||||||||||||||
Costs | A.A. | Cost | A.A. | Total | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2013 | $ | 14,788,000 | $ | -2,574,000 | $ | 12,275,000 | $ | -6,293,000 | $ | 18,196,000 | Software Development Costs | Patents & Licenses | ||||||||||||||||||||||||||
Additions | 462,000 | — | 103,000 | — | 565,000 | Cost | A.A. | Cost | A.A. | Total | ||||||||||||||||||||||||||||
Amortization | — | -1,460,000 | — | -333,000 | -1,793,000 | Balance as of December 31, 2011 | $ | 7,975,000 | $ | (479,000 | ) | $ | 12,051,000 | $ | (5,010,000 | ) | $ | 14,537,000 | ||||||||||||||||||||
Balance as of June 30, 2014 | $ | 15,250,000 | $ | -4,034,000 | $ | 12,378,000 | $ | -6,626,000 | $ | 16,968,000 | 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 twelve-month periods ended June 30 as follows: | Estimated amortization expense for the succeeding five years is as follows: | |||||||||||||||||||||||||||||||||||||
2015 | $ | 3,593,000 | ||||||||||||||||||||||||||||||||||||
2016 | 3,481,000 | |||||||||||||||||||||||||||||||||||||
2017 | 3,068,000 | 2014 | $ | 3,590,000 | ||||||||||||||||||||||||||||||||||
2018 | 3,030,000 | 2015 | 3,590,000 | |||||||||||||||||||||||||||||||||||
2019 and thereafter | 3,083,000 | 2016 | 3,127,000 | |||||||||||||||||||||||||||||||||||
$ | 16,255,000 | 2017 | 2,809,000 | |||||||||||||||||||||||||||||||||||
2018 and thereafter | 4,840,000 | |||||||||||||||||||||||||||||||||||||
$ | 17,956,000 | |||||||||||||||||||||||||||||||||||||
OBLIGATION_UNDER_CAPITAL_LEASE1
OBLIGATION UNDER CAPITAL LEASE (Tables) | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | 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 of June 30, 2014 are as follows: | The future minimum payments for capital leases as at December 31, 2013 are as follows: | |||||||||
2014 | $ | 129,000 | ||||||||
2015 | 63,000 | |||||||||
Total minimum lease payments | 192,000 | 2014 | $ | 129,000 | ||||||
Less Amount representing interest | -7,000 | 2015 | 128,000 | |||||||
Present value of the net minimum lease payments | 185,000 | Total minimum lease payments | 257,000 | |||||||
Less obligations under capital lease maturing within one year | -129,000 | Less amount representing interest | 10,000 | |||||||
Long-term portion of obligations under capital lease | $ | 56,000 | 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 | ||||||||
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) | (5.50 | )% | (5.50 | )% | |||||
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) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||
Class of Warrant or Right [Line Items] | ' | ' | |||||||||||||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | ' | ' | |||||||||||||||||||||||
The Company has issued warrants and options outside of the equity incentive plans. A summary of the warrant and option activity is as follows: | A summary of the warrant and option activity is as follows: | ||||||||||||||||||||||||
Number of Warrants | Weighted Average | ||||||||||||||||||||||||
and Options | Exercise | Number of | Weighted | ||||||||||||||||||||||
(in Shares) | Price | Options/Warrants | Average | ||||||||||||||||||||||
Outstanding January 1, 2014 | 5,229,076 | $ | 10.57 | (in Shares) | Exercise Price | ||||||||||||||||||||
Granted | 58,300 | 1.4 | Warrants Outstanding January 1, 2012 | 629,160 | $ | 24.85 | |||||||||||||||||||
Exercised | — | — | Granted | 8,571 | 35 | ||||||||||||||||||||
Forfeited or Expired | -113,013 | 17.74 | Exercised | — | — | ||||||||||||||||||||
Outstanding, June 30, 2014 | 5,174,363 | 10.31 | Forfeited or Expired | 43,446 | — | ||||||||||||||||||||
Exercisable, June 30, 2014 | 4,775,193 | $ | 10.68 | 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 | ||||||||||||||||||||
Forfeited/Expired | |||||||||||||||||||||||||
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] | ' | ' | |||||||||||||||||||||||
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 | |||||||||||||||||||||||
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) | 6 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ||||||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ' | ||||||||
Total obligation of purchasing parts under contractual agreements, minimum future annual rentals, exclusive of real estate taxes and related costs, are approximately as follows: | 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: | |||||||||
Twelve Months | ||||||||||
Ended | Year Ending December 31, | |||||||||
June 30, | 2014 | $ | 2,523,000 | |||||||
2015 | $ | 1,966,000 | 2015 | 309,000 | ||||||
2016 | 158,000 | 2016 | 201,000 | |||||||
$ | 2,124,000 | $ | 3,033,000 | |||||||
GOING_CONCERN_Details_Textual
GOING CONCERN (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Aug. 14, 2014 | |
Subsequent Event [Member] | ||||||||
Scenario, Forecast [Member] | ||||||||
Going Concern Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Retained Earnings (Accumulated Deficit) | $161,245,000 | ' | $161,245,000 | ' | $151,562,000 | $124,112,000 | ' | ' |
Net Income (Loss) Attributable to Parent, Total | -4,530,000 | -3,570,000 | -9,683,000 | -7,751,000 | -27,450,000 | -13,787,000 | ' | ' |
Alternative Net Capital Requirement | ' | ' | ' | ' | ' | ' | $34,600,000 | $34,300,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
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 |
ORGANIZATION_AND_SUMMARY_OF_SI2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Share data in Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 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 | ' | $250,000 | ' | $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 | 20,000 | 0 | 20,000 | 0 | 16,000 | 0 |
Research and Development Expense, Total | 2,056,000 | 1,352,000 | 4,510,000 | 2,999,000 | 5,468,000 | 4,806,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | 5.23 | ' | 5.29 | 2.05 |
Stock Issued During Period Non Convertible Debt | ' | ' | 1,000,000,000 | ' | 1,000,000,000 | ' |
Common Stock Held By Non Affiliates | 700,000,000 | ' | 700,000,000 | ' | 700,000,000 | ' |
Warranty Reserves [Member] | ' | ' | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' |
Product Warranty Expense | ' | ' | $10,000 | ' | $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 | ' | '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 | ' | '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 | ' | '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 | ' | '18 years 6 months | ' |
INVENTORY_Details
INVENTORY (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Inventory [Line Items] | ' | ' | ' |
Raw materials consisting of purchased parts, components and supplies | $1,671,000 | $2,461,000 | $0 |
Finished goods | 2,531,000 | 455,000 | 0 |
Total Inventory | $4,202,000 | $2,916,000 | $0 |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ' |
Accounts receivable | $528,000 | $324,000 | ' | $0 |
Accounts receivable - related parties | 488,000 | 480,000 | ' | 0 |
Accounts Receivable, Gross | 1,016,000 | 804,000 | ' | ' |
Net allowance for doubtful accounts | -20,000 | -16,000 | 0 | 0 |
Net accounts receivable | $996,000 | $788,000 | ' | $0 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | 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] | Furniture and Fixtures [Member] | Furniture and Fixtures [Member] | Furniture and Fixtures [Member] | Hardware [Member] | Hardware [Member] | Hardware [Member] | Hardware [Member] | ||||
Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | |||||||||
Cost: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, cost | ' | $2,633,000 | $4,456,000 | $2,746,000 | $2,633,000 | $1,970,000 | ' | ' | ' | ' | $0 | $2,486,000 | ' | ' |
Accumulated depreciation: | -1,940,000 | -1,827,000 | -2,731,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment, net | $806,000 | $806,000 | $1,725,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Useful Life | ' | ' | ' | ' | ' | ' | '7 years | '7 years | '3 years | '3 years | ' | ' | '5 years | '4 years |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $1,940,000 | ' | $1,827,000 | $2,731,000 |
Tangible Asset Impairment Charges, Total | ' | ' | 896,000 | 268,000 |
Depreciation | 113,000 | 177,000 | 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 $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Balance Beginning, Cost | $27,100,000 | ' | ' | ' |
Balance Beginning | 18,196,000 | 17,608,000 | 17,608,000 | 14,537,000 |
Additions | 565,000 | ' | 2,601,000 | 4,490,000 |
Impairments | ' | ' | -36,000 | -18,000 |
Amortization | -1,793,000 | -693,000 | -1,977,000 | -1,401,000 |
Balance Ending, Cost | 27,600,000 | ' | 27,100,000 | ' |
Balance Ending | 16,968,000 | ' | 18,196,000 | 17,608,000 |
Patents And Licenses [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Balance Beginning, Cost | 12,275,000 | 12,272,000 | 12,272,000 | 12,051,000 |
Balance Beginning, A.A. | -6,293,000 | -5,629,000 | -5,629,000 | -5,010,000 |
Additions | 103,000 | ' | 39,000 | 239,000 |
Impairments | ' | ' | -36,000 | -18,000 |
Amortization | -333,000 | -300,000 | -664,000 | -619,000 |
Balance Ending, Cost | 12,378,000 | ' | 12,275,000 | 12,272,000 |
Balance Ending, A.A. | -6,626,000 | ' | -6,293,000 | -5,629,000 |
Software Development [Member] | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' |
Balance Beginning, Cost | 14,788,000 | 12,226,000 | 12,226,000 | 7,975,000 |
Balance Beginning, A.A. | -2,574,000 | -1,261,000 | -1,261,000 | -479,000 |
Additions | 462,000 | ' | 2,562,000 | 4,251,000 |
Impairments | ' | ' | 0 | 0 |
Amortization | -1,460,000 | ' | -1,313,000 | -782,000 |
Balance Ending, Cost | 15,250,000 | ' | 14,788,000 | 12,226,000 |
Balance Ending, A.A. | ($4,034,000) | ' | ($2,574,000) | ($1,261,000) |
INTANGIBLE_ASSETS_Details_1
INTANGIBLE ASSETS (Details 1) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $3,593,000 | $3,590,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,481,000 | 3,590,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 3,068,000 | 3,127,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 3,030,000 | 2,809,000 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 3,083,000 | 4,840,000 |
Finite Lived Intangible Assets Amortization Expenses | $16,255,000 | $17,956,000 |
INTANGIBLE_ASSETS_Details_Text
INTANGIBLE ASSETS (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | $26,900,000 | ' | $26,800,000 | ' | ' |
Intangible Assets, Gross (Excluding Goodwill), Total | 27,600,000 | ' | 27,100,000 | ' | ' |
Amortization of Intangible Assets | 1,793,000 | 693,000 | 1,977,000 | 1,401,000 | ' |
Amortization Of Intangible Assets Accumulated Amortization | 700,000 | ' | 300,000 | ' | ' |
Patents And Licenses [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible Assets, Gross (Excluding Goodwill), Total | 12,378,000 | ' | 12,275,000 | 12,272,000 | 12,051,000 |
Amortization of Intangible Assets | 333,000 | 300,000 | 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 | ' | '18 years 6 months | ' | ' |
Patents And Licenses [Member] | Maximum [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '20 years | ' | '20 years | ' | ' |
Filed Patents And Licenses [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible Assets, Gross (Excluding Goodwill), Total | 12,300,000 | ' | 12,200,000 | ' | ' |
Provisional Patents And Pending Licenses [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible Assets, Gross (Excluding Goodwill), Total | 100,000 | ' | 100,000 | ' | ' |
Software Development [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets, Gross | 1,500,000 | 400,000 | ' | ' | ' |
Intangible Assets, Gross (Excluding Goodwill), Total | 15,250,000 | ' | 14,788,000 | 12,226,000 | 7,975,000 |
Amortization of Intangible Assets | 1,460,000 | ' | 1,313,000 | 782,000 | ' |
Software Development [Member] | xAP xMod and xMSC [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible Assets, Gross (Excluding Goodwill), Total | $600,000 | ' | ' | ' | ' |
OBLIGATION_UNDER_CAPITAL_LEASE2
OBLIGATION UNDER CAPITAL LEASE (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
2014 | $129,000 | $129,000 | ' |
2015 | 63,000 | 128,000 | ' |
Total minimum lease payments | 192,000 | 257,000 | ' |
Less amount representing interest | -7,000 | 10,000 | ' |
Present value of the net minimum lease payments | 185,000 | 247,000 | ' |
Less obligations under capital lease maturing within one year | -129,000 | 129,000 | ' |
Long-term portion of obligations under capital lease | $56,000 | $118,000 | $0 |
OBLIGATION_UNDER_CAPITAL_LEASE3
OBLIGATION UNDER CAPITAL LEASE (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Capital Leases, Future Minimum Payments, Net Minimum Payments, Total | $192,000 | $257,000 |
Interest Rate on Capital Leases | 4.00% | 4.00% |
CONVERTIBLE_NOTES_PAYABLE_Deta
CONVERTIBLE NOTES PAYABLE (Details Textual) (USD $) | 1 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 6 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | 6 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 | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Aug. 31, 2013 | Jun. 30, 2014 | Jun. 30, 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 | Dec. 31, 2012 | Sep. 30, 2014 | Aug. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2014 | Aug. 31, 2013 | Sep. 30, 2014 | 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 | Jun. 30, 2014 | Jun. 30, 2013 | Oct. 06, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Oct. 06, 2011 | Nov. 30, 2013 | Aug. 31, 2013 | Jul. 18, 2013 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 30, 2013 | Jul. 18, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Jan. 16, 2013 | 19-May-11 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 16, 2013 | Jan. 16, 2013 | Jan. 16, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 08, 2011 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | ||
Non Related Party [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | IPO [Member] | IPO [Member] | IPO [Member] | Non Related Investors [Member] | Maximum [Member] | Minimum [Member] | Convertibles and Bonds with Warrants Attached [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Treco International, S.A [Member] | Treco International, S.A [Member] | Treco International, S.A [Member] | Treco International, S.A [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | Related Party [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | May 2011 Convertible Note [Member] | February 2011 Convertible Loan [Member] | February 2011 Convertible Loan [Member] | February 2011 Convertible Loan [Member] | February 2011 Convertible Loan [Member] | February 2011 Convertible Loan [Member] | ||||||||||||
Subsequent Event [Member] | Common Stock [Member] | IPO [Member] | Convertibles and Bonds with Warrants Attached [Member] | Convertibles and Bonds with Warrants Attached [Member] | Convertible Notes Payable [Member] | Convertible Notes Payable [Member] | Non Related Party [Member] | Common Stock [Member] | IPO [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Maximum [Member] | Minimum [Member] | Bridge Loan [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | Maximum [Member] | Minimum [Member] | MB Technology Holdings LLC [Member] | ||||||||||||||||||||||||||||||||||||||||||||||
Subsequent Event [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Convertible Notes Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' | ' | $2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $15,000,000 | $15,000,000 | ' | $15,000,000 | ' | ' | ' | $4,041,000 | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Maturity Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6-Oct-18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19-May-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Convertible, Conversion Price (in dollars per share) | ' | ' | ' | ' | $13.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.22 | ' | ' | ' | $5.22 | $5.22 | ' | ' | ' | ' | ' | ' | $35 | ' | ' | $35 | ' | ' | ' | ' | $13.30 | ' | $13.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $26.25 | ' | $26.25 | $13.30 | ' | ' | $13.30 | $13.30 | ' | ' | ' | ' | ' | |
Debt Instrument, Frequency of Periodic Payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'semi-annually | ' | ' | ' | ' | ' | ' | ' | 'semi-annually | ' | 'semi-annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'semi-annually | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Interest Rate, Stated Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | ' | ' | ' | ' | ' | 9.00% | ' | ' | 9.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | ' | ' | 9.50% | ' | 8.00% | ' | ' | ' | |
Debt Instrument Percentage Of Facility Fee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Face Amount | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Proceeds from Notes Payable | ' | 0 | 450,000 | ' | 450,000 | 10,315,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Accrued Interest And Fees To Related Parties | ' | ' | ' | ' | 0 | 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 | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $35 | $17.50 | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | ' | ' | ' | ' | 142,857 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 142,857 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Conversion of 2011 Convertible Note Payable Principal Balance | ' | 0 | 15,000,000 | ' | 15,000,000 | 0 | ' | ' | ' | ' | ' | ' | 0 | [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 | ' | ' | 1,013,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,648,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Long-term Debt, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,857 | ' | ' | ' | ' | ' | ' | ' | 350 | 2,000,000 | ' | 2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Warrants Exercise Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.35 | ' | ' | ' | ' | ' | ' | ' | $0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Convertible Notes Payable, Current | ' | ' | ' | ' | ' | ' | ' | ' | 8,910,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock To be Issued Upon Conversion Of Warrant | ' | ' | ' | 1,363,636 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.50 | ' | ' | ' | ' | ' | |
Payments for Operating Activities, Total | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,768,000 | ' | ' | ' | ' | 2,267,300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Repayments of Related Party Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,350,000 | ' | ' | 395,000 | 1,065,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Debt Conversion, Original Debt, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,429,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Interest and Debt Expense, Total | ' | ' | ' | ' | 600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock Issue Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.50 | ' | ' | ' | $5.50 | $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 | ' | ' | ' | ' | $6.87 | ' | ' | ' | ' | ' | $6.87 | ' | ' | ' | ' | ' | ' | $0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Inducement expense | 1,800,000 | ' | ' | ' | 391,000 | 0 | ' | ' | ' | ' | 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 | ' | ' | 42,000 | 42,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,000 | 42,000 | ' | 42,329 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 159,330 | 11,428 | 175,000 | ' | ' | 5,265,000 | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 34,091 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 342,857 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Interest Expense, Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $90,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Less than $1 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | 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 | $0 | $0 | $0 | $0 |
INCOME_TAXES_Details_1
INCOME TAXES (Details 1) | 12 Months Ended | |
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 | |||
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 | ||
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 | |
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 $) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Warrants Outstanding, Number of Options/Warrants (in Shares) | 5,229,076 | 594,285 | 629,160 |
Granted, Number of Options/Warrants (in Shares) | 58,300 | 3,652,669 | 8,571 |
Exercised, Number of Options/Warrants (in Shares) | 0 | 858 | 0 |
Forfeited or Expired, Number of Options/Warrants (in Shares) | -113,013 | 0 | 43,446 |
Warrants Outstanding, Number of Options/Warrants (in Shares) | 5,174,363 | 5,229,076 | 594,285 |
Exercisable, Number of Options/Warrants (in Shares) | 4,775,193 | 4,246,096 | 594,285 |
Warrants Outstanding, Weighted Average Exercise Price | $10.57 | $25.90 | $24.85 |
Granted, Weighted Average Exercise Price | $1.40 | $6.61 | $35 |
Exercised, Weighted Average Exercise Price | $0 | $0.35 | $0 |
Forfeited or Expired, Weighted Average Exercise Price | $17.74 | $0 | $0 |
Warrants Outstanding, Weighted Average Exercise Price | $10.31 | $10.57 | $25.90 |
Exercisable, Weighted Average Exercise Price | $10.68 | $6.53 | $25.90 |
EQUITY_Details_5
EQUITY (Details 5) | 12 Months Ended |
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 | |
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 | ||
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 | ||
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 | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 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 | 6 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||
Aug. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 11, 2014 | 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 | Mar. 31, 2013 | Mar. 31, 2013 | 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 | Jan. 16, 2013 | Jun. 30, 2011 | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 30, 2013 | Aug. 31, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Jul. 31, 2013 | Jun. 30, 2014 | Jun. 11, 2014 | Apr. 22, 2014 | Jul. 31, 2013 | Aug. 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 | Dec. 31, 2013 | ||
Employee Stock Option [Member] | Employee Stock Option [Member] | Employees [Member] | Employees [Member] | Non Employees [Member] | Non Employees [Member] | Non Employees [Member] | First Reverse Stock Split [Member] | Second Reverse Stock Split [Member] | Minimum [Member] | Maximum [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Warrant [Member] | Warrant [Member] | Warrant 1 [Member] | 2011 Convertible Note [Member] | 2011 Convertible Note [Member] | 2011 Convertible Note [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | IPO [Member] | Secondary Offer [Member] | Secondary Offer [Member] | Convertibles and Bonds with Warrants Attached [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | Bridge Loan [Member] | February 2011 Convertible Loan [Member] | |||||||||||||||
Non Employees [Member] | Minimum [Member] | Maximum [Member] | Common Stock [Member] | 2011 Convertible Note [Member] | 2011 Convertible Note [Member] | 2011 Convertible Note [Member] | Non Employees [Member] | Minimum [Member] | MB Technology Holdings LLC [Member] | Non Employees [Member] | Non Employees [Member] | Convertibles and Bonds with Warrants Attached [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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 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 | ' | ' | ' | ' | ' | ' | 0 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,337,792,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Price | ' | ' | ' | ' | ' | ' | $5.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.50 | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.50 | ' | ' | ' | $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 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.50 | $5.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Warrant Issue Price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Payments of Stock Issuance Costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,750,673 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Exercise Price Of Warrant | $6.87 | ' | ' | ' | ' | ' | $0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.87 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $6.87 | ' | ' | ' | ' | $6.87 | ' | ' | ' | $6.87 | ' | ' | ' | ' | ' | $6.87 | ' | ' | ' | ' | $0.35 | ' | |
Warrant Expiry Period | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | '5 years | ' | ' | '5 years | ' | ' | '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 | ' | ' | ' | ' | ' | 1,363,636 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 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 | ' | $13.30 | ' | ' | $13.30 | $13.30 | ' | ' | ' | ' | ' | ' | $5.22 | ' | ' | ' | ' | ' | $5.22 | ' | $5.22 | ' | ' | $13.30 | |
Debt Conversion Converted Instrument Stock Options Issued | ' | ' | ' | ' | ' | 571,428 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 571,428 | 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 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
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 | ' | $0.00 | ' | ' | $0.00 | $0.00 | ' | ' | $0.00 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Common Stock, Shares Authorized | ' | 100,000,000 | ' | 100,000,000 | ' | ' | 300,000,000 | 250,000,000 | 100,000,000 | ' | ' | 300,000,000 | 250,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock To Be Issued Upon Conversion of Warrants | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,363,636 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Shares Issued, Price Per Share | ' | ' | ' | ' | ' | ' | $1.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.75 | ' | ' | ' | ' | ' | ' | ' | ' | $8.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Proceeds from Issuance of Warrants | ' | ' | ' | ' | ' | ' | 1,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 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 | ' | ' | ' | 8,816,000 | 0 | ' | 17,340,000 | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 415,013 | ' | ' | ' | ' | ' | ' | ' | ' | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
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 | ' | 148,000 | 201,000 | 361,000 | 336,000 | ' | 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 | ' | ' | ' | ' | ' | ' | 0 | 2,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | ' | ' | ' | ' | ' | ' | 0 | 5,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | ' | ' | ' | ' | ' | ' | 0 | 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% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 159,330 | 11,428 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 342,857 | ' | ' | ' | ' | ' | ' | ' | 5,265,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Proceeds from Issuance Initial Public Offering | ' | ' | ' | $8,815,655 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Sale of Stock, Price Per Share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
[1] | Less than $1 |
COMMITMENTS_Details
COMMITMENTS (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
Other Commitments [Line Items] | ' | ' |
2014 | ' | $2,523,000 |
2015 | 1,966,000 | 309,000 |
2016 | 158,000 | 201,000 |
Operating Leases, Future Minimum Payments Due, Total | $2,124,000 | $3,033,000 |
COMMITMENTS_Details_Textual
COMMITMENTS (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Commitments [Line Items] | ' | ' | ' | ' |
Operating Leases, Rent Expense, Net, Total | $206,000 | $134,000 | $304,000 | $287,000 |
Operating Leases Costs Capitalized | ' | ' | $83,000 | $106,000 |
Operating Leases Expiration Term | '2014 through 2016 | ' | '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. Colemans 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 Companys 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) (USD $) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | 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 Companys total sales. |
Sales Revenue, Net [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | ' | 10.00% |
Accounts Receivable [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 94.00% | ' |
Accounts Receivable [Member] | Customer 1 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -30.00% | ' |
Concentration Risk, Net Assets Amount, Geographic Area | 295,000 | ' |
Accounts Receivable [Member] | Customer 2 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -21.00% | ' |
Concentration Risk, Net Assets Amount, Geographic Area | 214,000 | ' |
Accounts Receivable [Member] | Customer 3 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -18.00% | ' |
Concentration Risk, Net Assets Amount, Geographic Area | 175,000 | ' |
Accounts Receivable [Member] | Customer 4 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -15.00% | ' |
Concentration Risk, Net Assets Amount, Geographic Area | 155,000 | ' |
Accounts Receivable [Member] | Customer 5 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -10.00% | ' |
Concentration Risk, Net Assets Amount, Geographic Area | 98,000 | ' |
Accounts Receivable [Member] | Three Customers [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | ' | 79.00% |
Accounts Receivable [Member] | One Customer [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | ' | 37.00% |
Cost of Goods, Total [Member] | Supplier Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 23.00% | 15.00% |
Product Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | 10.00% | ' |
Product Concentration Risk [Member] | Customer 1 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -25.00% | ' |
Revenue, Net | 104,000 | ' |
Product Concentration Risk [Member] | Customer 2 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -24.00% | ' |
Revenue, Net | 100,000 | ' |
Product Concentration Risk [Member] | Customer 3 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -24.00% | ' |
Revenue, Net | 100,000 | ' |
Product Concentration Risk [Member] | Customer 4 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -12.00% | ' |
Revenue, Net | 50,000 | ' |
Product Concentration Risk [Member] | Customer 5 [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Concentration Risk, Percentage | -12.00% | ' |
Revenue, Net | 50,000 | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 6 Months Ended | 9 Months Ended | 12 Months Ended | 18 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | 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 | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Sep. 30, 2013 | Jan. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Apr. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2006 | Oct. 16, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
2011 Convertible Note [Member] | 2011 Convertible Note [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | MB Technology Holdings LLC [Member] | Mooers Branton & Co [Member] | Mooers Branton & Co [Member] | Mooers Branton & Co [Member] | Mooers Branton & Co [Member] | Mooers Branton & Co [Member] | Mooers Branton & Co [Member] | Walnut Hill Telephone Company [Member] | Walnut Hill Telephone Company [Member] | Haxtun Telephone Company [Member] | |||||||
Subsequent Event [Member] | 2011 Convertible Note [Member] | 2011 Convertible Note [Member] | 2011 Convertible Note [Member] | |||||||||||||||||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.63% | 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 | ' | $1.75 | ' | ' | ' | ' | ' | ' | ' | $8.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | 150,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000 | 0 | 480,000 | 960,000 | 960,000 | 80,000 | ' | ' | ' |
Increase (Decrease) in Due to Related Parties, Total | 955,000 | 1,218,000 | ' | 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 | ' | ' | 1,363,636 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 42,857 | ' | ' | ' | ' | ' | 1,363,636 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Convertible, Conversion Price | ' | ' | ' | $13.30 | ' | $13.30 | ' | $26.25 | ' | ' | ' | ' | $13.30 | ' | $13.30 | ' | ' | $13.30 | $13.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share Price | ' | ' | ' | $5.50 | ' | $5.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5.50 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Conversion Converted Instrument Stock Options Issued | ' | ' | 571,428 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 571,428 | 571,428 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Noncash Expense | ' | ' | ' | 0 | 1,500,000 | 3,600,000 | ' | ' | ' | ' | ' | ' | 2,506,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repayments of Related Party Debt | ' | ' | ' | ' | ' | ' | ' | ' | 1,350,000 | ' | ' | 395,000 | 1,065,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Short-term Debt, Refinanced, Amount | ' | ' | ' | ' | ' | ' | 2,648,000 | ' | ' | 1,013,000 | ' | ' | 1,013,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Due to Affiliate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,131,000 | 1,526,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from Related Party Debt | ' | 2,747,000 | ' | 2,727,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,350,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related Party Transaction, Other Revenues from Transactions with Related Party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 155,000 | 179,000 | 301,000 |
Proceeds from Issuance of Common Stock | $8,816,000 | $0 | ' | $17,340,000 | $400,000 | ' | ' | ' | ' | ' | $3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
CONTINGENCIES_Details_Textual
CONTINGENCIES (Details Textual) (USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Loss Contingencies [Line Items] | ' |
Loss Contingency, Damages Sought, Value | $75,000 |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (USD $) | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||
Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2013 | Jun. 30, 2014 | Apr. 22, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | ||
IPO [Member] | IPO [Member] | IPO [Member] | Common Stock [Member] | Common Stock [Member] | MB Technology Holdings LLC [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |||||
Common Stock [Member] | Common Stock [Member] | Common Stock One [Member] | Common Stock Two [Member] | Common Stock Three [Member] | Common Stock Four [Member] | MB Technology Holdings LLC [Member] | Lincoln Park Capital Fund,LLC [Member] | Lincoln Park Capital Fund,LLC [Member] | Lincoln Park Capital Fund,LLC [Member] | |||||||||||
Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Weighted Average [Member] | Common Stock [Member] | ||||||||||||||
Subsequent Event [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |
Proceeds from Related Party Debt | $2,747,000 | $2,727,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,350,000 | ' | ' | ' | |
Sale of Stock, Consideration Received Per Transaction | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | 1,000,000 | |
Stock Issued During Period, Shares, New Issues | ' | ' | ' | ' | 5,265,000 | ' | 159,330 | 11,428 | 342,857 | 175,000 | 100,000 | 150,000 | 200,000 | 250,000 | ' | ' | ' | ' | 500,000 | |
Stock Issued During Period, Value, New Issues | ' | $0 | $400,000 | $1,337,792,000 | ' | ' | $0 | $0 | [1] | ' | $15,000,000 | $1,000,000 | ' | ' | ' | ' | ' | ' | ' | $1,000,000 |
Sale of Stock, Price Per Share | ' | ' | ' | ' | ' | $1.90 | ' | ' | ' | ' | ' | $2 | $2.50 | $3 | $1.50 | ' | $1.50 | ' | $2 | |
Common Stock Shares Purchase Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200.00% | ' | ' | |
Common Stock Shares Trading Volume Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | 95.00% | ' | |
[1] | Less than $1 |