Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 28, 2014 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'INTRUSION INC | ' | ' |
Entity Central Index Key | '0000736012 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Entity Public Float | ' | ' | $6,619,000 |
Entity Common Stock, Shares Outstanding | ' | 12,386,696 | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash and cash equivalents | $1,139,000 | $52,000 |
Accounts receivable | 816,000 | 946,000 |
Inventories, net | 19,000 | 5,000 |
Prepaid expenses | 95,000 | 48,000 |
Total current assets | 2,069,000 | 1,051,000 |
Property and Equipment: | ' | ' |
Equipment | 893,000 | 719,000 |
Furniture and fixtures | 32,000 | 24,000 |
Leasehold improvements | 42,000 | 42,000 |
Total property and equipment, gross | 967,000 | 785,000 |
Accumulated depreciation and amortization | -670,000 | -525,000 |
Property and equipment, net | 297,000 | 260,000 |
Other assets | 51,000 | 48,000 |
TOTAL ASSETS | 2,417,000 | 1,359,000 |
Current Liabilities: | ' | ' |
Accounts payable, trade | 156,000 | 159,000 |
Accrued expenses | 842,000 | 548,000 |
Dividends payable | 437,000 | 279,000 |
Line of credit payable | ' | 130,000 |
Obligations under capital lease, current portion | 106,000 | 96,000 |
Deferred revenue | 139,000 | 52,000 |
Total current liabilities | 1,680,000 | 1,264,000 |
Loan payable to officer | 1,530,000 | 1,530,000 |
Obligations under capital lease, noncurrent portion | 67,000 | 116,000 |
Commitments and Contingencies | ' | ' |
Stockholders' Deficit: | ' | ' |
Preferred stock | 2,006,000 | 2,006,000 |
Common stock, $0.01 par value: Authorized shares - 80,000 Issued shares - 12,182 Outstanding shares - 12,172 | 122,000 | 122,000 |
Common stock held in treasury, at cost-10 shares | -362,000 | -362,000 |
Additional paid-in-capital | 55,905,000 | 55,837,000 |
Accumulated deficit | -58,424,000 | -59,047,000 |
Accumulated other comprehensive loss | -107,000 | -107,000 |
Total stockholders' deficit | -860,000 | -1,551,000 |
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | 2,417,000 | 1,359,000 |
Series 1 | ' | ' |
Stockholders' Deficit: | ' | ' |
Preferred stock | 778,000 | 778,000 |
Series 2 | ' | ' |
Stockholders' Deficit: | ' | ' |
Preferred stock | 724,000 | 724,000 |
Series 3 | ' | ' |
Stockholders' Deficit: | ' | ' |
Preferred stock | $504,000 | $504,000 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, except Per Share data, unless otherwise specified | Series 1 | Series 2 | Series 3 | ||
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 | ' | ' | ' |
Preferred stock, Authorized shares | 5,000 | 5,000 | ' | ' | ' |
Preferred stock, shares issued | ' | ' | 220 | 460 | 354 |
Preferred stock, shares outstanding | ' | ' | 220 | 460 | 354 |
Preferred stock, Liquidation preference (in dollars per share) | ' | ' | $1,251 | $1,313 | $881 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 | ' | ' | ' |
Common stock, Authorized shares | 80,000 | 80,000 | ' | ' | ' |
Common stock, Issued shares | 12,182 | 12,182 | ' | ' | ' |
Common stock, Outstanding shares | 12,172 | 12,172 | ' | ' | ' |
Common stock held in treasury, shares | 10 | 10 | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
CONSOLIDATED STATEMENTS OF OPERATIONS | ' | ' |
Net product revenue | $7,578 | $6,569 |
Net customer support and maintenance revenue | 85 | 128 |
Total revenue | 7,663 | 6,697 |
Cost of product revenue | 2,730 | 2,685 |
Cost of customer support and maintenance revenue | 21 | 22 |
Total cost of revenue | 2,751 | 2,707 |
Gross profit | 4,912 | 3,990 |
Operating expenses: | ' | ' |
Sales and marketing | 1,435 | 1,317 |
Research and development | 1,579 | 1,660 |
General and administrative | 1,144 | 1,143 |
Operating income (loss) | 754 | -130 |
Interest expense | -131 | -116 |
Income (loss) from operations before income taxes | 623 | -246 |
Income tax provision | 0 | ' |
Net income (loss) | 623 | -246 |
Preferred stock dividends accrued | -151 | -152 |
Net income (loss) attributable to common stockholders | $472 | ($398) |
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) | $0.04 | ($0.03) |
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) | $0.03 | ($0.03) |
Weighted average common shares outstanding: | ' | ' |
Basic (in shares) | 12,172 | 12,035 |
Diluted (in shares) | 14,290 | 12,035 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (USD $) | Total | PREFERRED STOCK | COMMON STOCK | TREASURY SHARES | ADDITIONAL PAID-IN-CAPITAL | ACCUMULATED DEFICIT | ACCUMULATED OTHER COMPREHENSIVE LOSS |
In Thousands, unless otherwise specified | |||||||
Balance at Dec. 31, 2011 | ' | $2,006 | $119 | ($362) | $55,686 | ($58,801) | ($107) |
Balance (in shares) at Dec. 31, 2011 | ' | 1,034 | 11,952 | ' | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | 213 | ' | ' |
Exercise of stock options | ' | ' | 3 | ' | 73 | ' | ' |
Exercise of stock options (in shares) | 230 | ' | 130 | ' | ' | ' | ' |
Exercise of warrants (in shares) | ' | ' | 100 | ' | ' | ' | ' |
Preferred stock dividends declared, net of waived penalties by shareholders | -152 | ' | ' | ' | -135 | ' | ' |
Net income (loss) | -246 | ' | ' | ' | ' | -246 | ' |
Balance at Dec. 31, 2012 | -1,551 | 2,006 | 122 | -362 | 55,837 | -59,047 | -107 |
Balance (in shares) at Dec. 31, 2012 | ' | 1,034 | 12,182 | ' | ' | ' | ' |
Increase (decrease) in stockholders' equity | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation | ' | ' | ' | ' | 189 | ' | ' |
Preferred stock dividends declared, net of waived penalties by shareholders | -151 | ' | ' | ' | -121 | ' | ' |
Net income (loss) | 623 | ' | ' | ' | ' | 623 | ' |
Balance at Dec. 31, 2013 | ($860) | $2,006 | $122 | ($362) | $55,905 | ($58,424) | ($107) |
Balance (in shares) at Dec. 31, 2013 | ' | 1,034 | 12,182 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities: | ' | ' |
Net income (loss) | $623 | ($246) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 147 | 155 |
Stock-based compensation | 189 | 213 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 130 | -466 |
Inventories | -14 | ' |
Prepaid expenses and other assets | -50 | 34 |
Accounts payable, accrued expenses and other current liabilities | 298 | 78 |
Deferred revenue | 87 | -44 |
Net cash provided by (used in) operating activities | 1,410 | -276 |
Investing Activities: | ' | ' |
Purchases of property and equipment | -116 | -21 |
Financing Activities: | ' | ' |
Proceeds from line of credit | 508 | 994 |
Payments on line of credit | -638 | -944 |
Penalties and waived penalties on dividends | 30 | 16 |
Principal payments on capital lease equipment | -107 | -101 |
Proceeds from stock options exercised | ' | 76 |
Net cash provided by (used in) financing activities | -207 | 41 |
Net increase (decrease) in cash and cash equivalents | 1,087 | -256 |
Cash and cash equivalents at beginning of year | 52 | 308 |
Cash and cash equivalents at end of year | 1,139 | 52 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ' | ' |
Interest paid on leased assets | 17 | 19 |
SUPPLEMENTAL DISCLOSURE OF NON CASH FINANCING ACTIVITIES: | ' | ' |
Preferred stock dividends accrued | 151 | 152 |
Purchase of equipment through capital lease | $68 | $187 |
Description_of_Business
Description of Business | 12 Months Ended |
Dec. 31, 2013 | |
Description of Business | ' |
Description of Business | ' |
1. Description of Business | |
We develop, market, and support a family of entity identification, data mining, regulated information compliance, data privacy protection and network intrusion prevention/detection products. Our product families include: TraceCop for identity identification, Savant for data mining and advanced persistent threat detection, Compliance Commander for regulated information and data privacy protection, and SecureNet for network intrusion prevention and detection. Intrusion’s products help protect critical information assets by quickly detecting, protecting, analyzing and reporting attacks or misuse of classified, private and regulated information for government and enterprise networks. | |
We market and distribute our products through a direct sales force to end-users, distributors and numerous system integrators, managed service providers and value-added resellers. Our end-user customers include banks, credit unions, other financial institutions, U.S. federal government entities, foreign government entities, hospitals and other healthcare providers. Essentially, our end-users can be defined as end-users requiring network security solutions for protecting their mission critical data. | |
We were organized in Texas in September 1983 and reincorporated in Delaware in October 1995. For more than 15 years, we provided local area networking equipment and were known as Optical Data Systems or ODS Networks. On April 17, 2000, we sold, or otherwise disposed of, our networking divisions, which included our Essential Communications division and our local area networking assets. On June 1, 2000, we changed our name from ODS Networks, Inc. to Intrusion.com, Inc., and our ticker symbol from ODSI to INTZ to reflect our focus on intrusion prevention and detection solutions, along with information compliance and data privacy protection products. On November 1, 2001, we changed our name from Intrusion.com, Inc. to Intrusion Inc. | |
Our principal executive offices are located at 1101 East Arapaho Road, Suite 200, Richardson, Texas 75081, and our telephone number is (972) 234-6400. Our website URL is www.intrusion.com. | |
References to the “Company”, “we”, “us”, “our”, “Intrusion” or “Intrusion Inc.” refer to Intrusion Inc. and its subsidiaries. Compliance Commander™, SecureNet™ and TraceCop™ are registered trademarks of Intrusion Inc. | |
As of December 31, 2013, we had cash and cash equivalents of approximately $1,139,000, up from approximately $52,000 as of December 31, 2012. We generated net income of $623,000 for the year ended December 31, 2013 compared to a net loss of $246,000 for the year ended December 31, 2012. As of December 31, 2013, in addition to cash and cash equivalents of $1,139,000, we had $455,000 in funding available under our $0.625 million line of credit at Silicon Valley Bank (“SVB”) and $670,000 funding available from a promissory note to borrow up to $2.2 million from G. Ward Paxton, the Company’s Chief Executive Officer. We are obligated to make payments of accrued dividends on all our outstanding shares of preferred stock that will reduce our available cash resources. Based on projections of growth in revenue and net income in the coming quarters, and the borrowings available previously mentioned, we believe that we will have sufficient cash resources to finance our operations and expected capital expenditures for the next twelve months. We expect to fund our operations through Company profits, our line of credit, borrowings from the Company’s CEO, and possibly additional investments of private equity and debt, which, if we are able to obtain, will have the effect of diluting our existing common stockholders, perhaps significantly. Any equity or debt financings, if available at all, may be on terms which are not favorable to us and, in the case of equity financings, may result in dilution to our stockholders. If our operations do not generate positive cash flow in the upcoming year, or if we are not able to obtain additional debt or equity financing on terms and conditions acceptable to us, if at all, we may be unable to implement our business plan, fund our liquidity needs or even continue our operations. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Summary of Significant Accounting Policies | ' | |||||
Summary of Significant Accounting Policies | ' | |||||
2. Summary of Significant Accounting Policies | ||||||
Principles of Consolidation | ||||||
Our consolidated financial statements include our accounts and those of our wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. | ||||||
Cash and Cash Equivalents | ||||||
Cash and all highly liquid investments purchased with an original maturity of less than three months are considered to be cash and cash equivalents. | ||||||
Risk Concentration | ||||||
Financial instruments, which potentially subject us to concentrations of credit risk, are primarily cash and cash equivalents, investments and accounts receivable. Cash and cash equivalent deposits are at risk to the extent that they exceed Federal Deposit Insurance Corporation insured amounts. To minimize risk, we place our investments in U.S. government obligations, corporate securities and money market funds. Substantially all of our cash, cash equivalents and investments are maintained with two major U.S. financial institutions. We do not believe that we are subject to any unusual financial risk with our banking arrangements. We have not experienced any significant losses on our cash and cash equivalents. | ||||||
We sell our products to customers in diversified industries worldwide and periodically have receivables from customers, primarily in North America, Europe and Asia. Fluctuations in currency exchange rates and adverse economic developments in foreign countries could adversely affect the Company’s operating results. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral. We maintain reserves for potential credit losses, and such losses, in the aggregate, have historically been minimal and have not exceeded management’s expectations. | ||||||
While we believe that many of the materials used in the production of our products are generally readily available from a variety of sources, certain components may be available from one or a limited number of suppliers. The inability of any supplier or manufacturer to fulfill supply requirements of the Company could impact future results. | ||||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||
Trade accounts receivable are stated at the amount we expect to collect. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on management’s assessment, we provide for estimated uncollectible amounts through a charge to earnings and an increase to a valuation allowance. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance. | ||||||
Inventories | ||||||
Inventories are stated at the lower of cost or market. We value our inventories using average cost, which approximates actual cost on a first-in, first-out basis. Our management estimates the allowance required to state inventory at the lower of cost or market. There is a risk that we will forecast demand for our products and market conditions incorrectly and maintain excess inventories. Therefore, there can be no assurance that we will not maintain excess inventory and incur inventory lower of cost or market charges in the future. | ||||||
Property and Equipment | ||||||
Equipment and furniture and fixtures are stated at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Such lives vary from 1 to 5 years. Leasehold improvements are stated at cost less accumulated amortization and are amortized on a straight-line basis over the shorter of estimated useful lives of the assets or the remaining terms of the leases. Such lives vary from 2 to 5 years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Repair and maintenance costs are expensed as incurred. Depreciation and amortization expense totaled approximately $147,000 and $155,000 for the years ended December 31, 2013 and 2012, respectively. | ||||||
Long-Lived Assets | ||||||
We review long-lived assets, including property and equipment 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 future undiscounted cash flows to be generated by the asset. If the carrying value exceeds the future undiscounted cash flows, the assets are written down to fair value. During the years ended December 31, 2013 and 2012, there was no impairment of long-lived assets. | ||||||
Foreign Currency | ||||||
All assets and liabilities in the balance sheets of foreign subsidiaries whose functional currency is other than the U.S. dollar are translated at year-end exchange rates. All revenues and expenses in the statement of operations of these foreign subsidiaries are translated at average exchange rates for the year. Translation gains and losses are not included in determining net income but are shown in accumulated other comprehensive loss in the stockholders’ deficit section of the consolidated balance sheet. Foreign currency transaction gains and losses are included in determining net income (loss) and were not significant. | ||||||
Accounting for Stock Options | ||||||
We account for stock options using the guidance in Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 718. FASB ASC Topic 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. | ||||||
Stock-based compensation expense recognized in the statements of operations for the years ended 2013 and 2012 is based on awards ultimately expected to vest, reduced by estimated forfeitures. FASB ASC Topic 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | ||||||
Valuation Assumptions | ||||||
The fair values of option awards were estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions for fiscal years ended December 31, 2013 and 2012, respectively: | ||||||
2013 | 2012 | |||||
Weighted average grant date fair value | $0.49 | $0.63 | ||||
Weighted average assumptions used: | ||||||
Expected dividend yield | 0 | % | 0 | % | ||
Risk-free interest rate | 0.83 | % | 0.84 | % | ||
Expected volatility | 225.21 | % | 213.17 | % | ||
Expected life (in years) | 4.91 | 4.89 | ||||
Expected volatility is based on historical volatility and in part on implied volatility. The expected term considers the contractual term of the option as well as historical exercise and forfeiture behavior. The risk-free interest rate is based on the rates in effect on the grant date for U.S. Treasury instruments with maturities matching the relevant expected term of the award. | ||||||
Net Income (Loss) Per Share | ||||||
We report two separate net income (loss) per share numbers, basic and diluted. Basic net income (loss) attributable to common stockholders per share is computed by dividing net income (loss) attributable to common stockholders for the year by the weighted average number of common shares outstanding for the year. Diluted net income (loss) attributable to common stockholders per share is computed by dividing the net income (loss) attributable to common stockholders for the year by the weighted average number of common shares and dilutive common stock equivalents outstanding for the year. Our common stock equivalents include all common stock issuable upon conversion of convertible preferred stock and the exercise of outstanding options and warrants. Common stock equivalents are included in the diluted income (loss) per share for the years ended December 31, 2013 and 2012 except in cases where the issuance would be anti-dilutive. The aggregate number of common stock equivalents excluded from the diluted income (loss) per share calculation at December 31, 2013 and 2012 totaled 904,148 and 4,008,364, respectively. | ||||||
Revenue Recognition | ||||||
We generally recognize product revenue upon shipment. These products include both hardware and perpetual software licenses, as we do not currently offer software on a subscription basis. We accrue for estimated warranty costs and sales returns at the time of shipment based on our experience. There is a risk that technical issues on new products could result in unexpected warranty costs and returns. To the extent that our warranty costs exceed our expectations, we will increase our warranty reserve to compensate for the additional expense expected to be incurred. We review these estimates periodically and determine the appropriate reserve percentage. However, to date, warranty costs and sales returns have not been material. The customer may return a product only under very limited circumstances during the first thirty days from delivery for a replacement if the product is damaged or for a full refund if the product does not perform as intended. Historically, most or our sales returns were related to hardware-based products. As we continue to migrate away from such hardware-based products, these returns have declined. | ||||||
We recognize software revenue from the licensing of our software products in accordance with FASB ASC Topic 605 whereby revenue from the licensing of our products is not recognized until all four of the following have been met: i) execution of a written agreement; ii) delivery of the product has occurred; iii) the fee is fixed and determinable; and iv) collectability is probable. Bundled hardware and software product revenue is recognized at time of delivery, as our licenses are not sold on a subscription basis. Product sales which include maintenance and customer support allocate revenue in an arrangement using estimated selling prices of the delivered goods and services based on a selling price hierarchy using the relative selling price method. All of our product offering and service offering market values are readily determined based on current and prior stand-alone sales. We defer and recognize maintenance and support revenue over the term of the contract period, which is generally one year. | ||||||
Service revenue, primarily including maintenance, training and installation are recognized upon delivery of the service and typically are unrelated to product sales. To date, training and installation revenue has not been material. These revenues are included in net customer support and maintenance revenues in the statement of operations. | ||||||
Our normal payment terms offered to customers, distributors and resellers are net 30 days domestically and net 45 days internationally. We do not offer payment terms that extend beyond one year and rarely do we extend payment terms beyond our normal terms. If certain customers do not meet our credit standards, we do require payment in advance to limit our credit exposure. | ||||||
Shipping and handling costs are billed to the customer and included in product revenue. Our costs of shipping and handling are included in cost of product revenue. | ||||||
Research and Development Costs | ||||||
We incur research and development costs that relate primarily to the development of new security software, appliances and integrated solutions, and major enhancements to existing services and products. Research and development costs are comprised primarily of salaries and related benefits expenses, contract labor and prototype and other related expenses. | ||||||
Software development costs are included in research and development and are expensed as incurred. FASB ASC Topic 350 requires that software development costs incurred subsequent to reaching technological feasibility be capitalized, if material. If the process of developing a new product or major enhancement does not include a detailed program design, technological feasibility is determined only after completion of a working model. To date, the period between achieving technological feasibility and the general availability of such software has been short, and the software development costs qualifying for capitalization have been insignificant. | ||||||
Use of Estimates | ||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates are used for, but not limited to, the accounting for doubtful accounts, sales discounts, sales returns, revenue recognition, warranty costs, inventory obsolescence, depreciation and income taxes. Actual results could differ from these estimates. | ||||||
Fair Value of Financial Instruments | ||||||
We calculate the fair value of our assets and liabilities which qualify as financial instruments and include additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued expenses, and dividends payable approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of the line of credit payable approximates fair value since this instrument bears market interest rates. Loans payable to officer are with a related party and as a result do not bear market rates of interest. Management believes based on its current financial position that it could not obtain comparable amounts of third party financing, and as such cannot estimate the fair value of the loans payable to officer. None of these instruments are held for trading purposes. | ||||||
Income Taxes | ||||||
Deferred income taxes are determined using the liability method in accordance with FASB ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. | ||||||
FASB ASC 740 creates a single model to address accounting for uncertainty in tax positions by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. FASB ASC 740 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. There are no unrecognized tax benefits to disclose in the notes to the consolidated financial statements. | ||||||
We file income tax returns in the United States federal jurisdiction. At December 31, 2013, tax returns related to fiscal years ended December 31, 2010 through December 31, 2012 remain open to possible examination by the tax authorities. No tax returns are currently under examination by any tax authorities. We did not incur any penalties or interest during the years ended December 31, 2013 and 2012. |
Balance_Sheet_Detail_in_thousa
Balance Sheet Detail (in thousands) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Balance Sheet Detail (in thousands) | ' | |||||||
Balance Sheet Detail (in thousands) | ' | |||||||
3. Balance Sheet Detail (in thousands) | ||||||||
Inventories | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Finished products | $ | 19 | $ | 5 | ||||
Accrued Expenses | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accrued payroll | $ | 96 | $ | 76 | ||||
Accrued vacation | 290 | 271 | ||||||
Rent payable | 106 | — | ||||||
Accrued interest | 76 | 130 | ||||||
Accrued bonus | 116 | — | ||||||
Other | 158 | 71 | ||||||
$ | 842 | $ | 548 | |||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies. | ' | ||||||||||
Commitments and Contingencies | ' | ||||||||||
4. Commitments and Contingencies | |||||||||||
Leases | |||||||||||
We lease office space for our corporate headquarters in Richardson, Texas under an operating lease, the base term of which expires in December 2017. We lease office space in San Diego, California for a portion of our security software research and development staff under two separate operating leases, normally renewing for one year terms. | |||||||||||
The Company’s lease for the headquarters facility contains escalation provisions. The Company records rent expense on facility leases on a straight-line basis. Rent expense totaled approximately $387,000 and $339,000 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||
We have other capital lease obligations that consist primarily of obligations to purchase goods that are enforceable and legally binding. Our obligations primarily relate to software licensing and computer equipment. | |||||||||||
Future minimum lease obligations consisted of the following at December 31, 2013 (in thousands): | |||||||||||
Operating | Capital Lease | ||||||||||
Year ending December 31, | Leases | Obligations | Total | ||||||||
2014 | $ | 398 | $ | 115 | $ | 513 | |||||
2015 | 406 | 58 | 464 | ||||||||
2016 | 394 | 11 | 405 | ||||||||
2017 and thereafter | 130 | — | 130 | ||||||||
$ | 1,328 | $ | 184 | $ | 1,512 | ||||||
Legal Proceedings | |||||||||||
We are subject to legal proceedings and claims that arise in the ordinary course of business. We do not believe that the outcome of those matters will have a material adverse affect on our consolidated financial position, operating results or cash flows. However, there can be no assurance such legal proceedings will not have a material impact. | |||||||||||
We are not aware of any material claims outstanding or pending against Intrusion Inc. at December 31, 2013. | |||||||||||
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2013 | |
Employee Benefit Plan | ' |
Employee Benefit Plan | ' |
5. Employee Benefit Plan | |
Employee 401(k) Plan | |
We have a plan known as the Intrusion Inc. 401(k) Savings Plan (the “Plan”) to provide retirement and incidental benefits for our employees. The Plan covers substantially all employees who meet minimum age and service requirements. As allowed under Section 401(k) of the Internal Revenue Code, the Plan provides tax deferred salary deductions for eligible employees. | |
Employees may contribute from 1% to 25% of their annual compensation to the Plan, limited to a maximum amount as set by the Internal Revenue Service. Participants who are over the age of 50 may contribute an additional amount of their salary per year, as defined annually by the Internal Revenue Service. We match employee contributions at the rate of $0.25 per each $1.00 of contribution on the first 4% of compensation. Matching contributions to the Plan were approximately $28,000 for the year ended December 31, 2013 and $27,000 for 2012. |
Line_of_Credit
Line of Credit | 12 Months Ended |
Dec. 31, 2013 | |
Line of Credit | ' |
Line of Credit | ' |
6. Line of Credit | |
On March 29, 2006, we entered into a Loan and Security Agreement with Silicon Valley Bank (“SVB”) to establish a $1.0 million line of credit (the “2006 Credit Line”). On June 30, 2008, we entered into an Amended and Restated Loan and Security Agreement with SVB to, among other things, replace the 2006 Credit Line with a $2.5 million line of credit (the “2008 Credit Line”). On June 24, 2013, we entered into the Fifth Amendment to the Amended and Restated Loan and Security Agreement (as amended, the “Loan Agreement”) with SVB to replace our expiring line with a $0.625 million line of credit (the “Current Line of Credit”). Our obligations under the Loan Agreement are secured by substantially all of our assets, including all of our intellectual property. In addition, G. Ward Paxton, the Company’s Chairman, President and Chief Executive Officer, has established a Guaranty Agreement with SVB securing all outstanding balances under the Current Line of Credit. Borrowings under the Current Line of Credit are based on advances (each an “Advance”) against certain of our accounts receivable that are approved by SVB (each an “Eligible Account”). SVB may make an Advance of up to eighty percent (80%) of each Eligible Account, or such other percentage SVB may determine in its sole discretion. Each Advance is subject to a finance charge calculated as a daily rate that is based on a 360-day annual rate of the greater of the prime rate plus 2.0% or 7.0%. Finance charges are payable at the same time its related Advance is due. Each Advance is also subject to a monthly collateral handling fee of 0.5% of all outstanding Advances, depending on certain qualifying financial factors specified in the Loan Agreement. The collateral handling fee is payable at the same time its related Advance is due. Each Advance must be repaid at the earliest of (a) the date that the Eligible Account related to the Advance is paid, (b) the date the Eligible Account is no longer eligible under the Loan Agreement, or (c) the date on which any “Adjustment” (as defined in the Loan Agreement) is asserted to the Eligible Account. We have certain non-financial and financial covenants, including a liquidity coverage ratio and a rolling EBITDA computation, as defined in the Loan Agreement. On June 24, 2014, the Loan Agreement terminates and all outstanding Advances, accrued but unpaid finance charges, outstanding collateral handing fees, and other amounts become due under the Loan Agreement and related documents. As of December 31, 2013 we had no borrowings outstanding under the current Line of Credit. |
Borrowings_from_Officer
Borrowings from Officer | 12 Months Ended |
Dec. 31, 2013 | |
Borrowings from Officer | ' |
Borrowings from Officer | ' |
7. Borrowings from Officer | |
On February 7, 2013, the Company entered into an unsecured revolving promissory note to borrow up to $2,200,000 from G. Ward Paxton, the Company’s Chief Executive Officer. Under the terms of the note, the Company may borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2014. | |
On February 6, 2014, the Company entered into an unsecured revolving promissory note, to replace the note listed above, to borrow up to $2,200,000 from G. Ward Paxton, the Company’s Chief Executive Officer. Under the terms of the note, the Company may borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2015. | |
Amounts borrowed from this officer accrue interest at a floating rate per annum equal to SVB’s prime rate plus 1% (5% at December 31, 2013). All outstanding borrowings and accrued but unpaid interest is due on March 31, 2015. As of December 31, 2013, the borrowings outstanding totaled $1,530,000 and accrued interest totaled $76,000. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ' | |||||||
8. Income Taxes | ||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets (liabilities) as of December 31, 2013 and 2012 are as follows (in thousands): | ||||||||
December 31 | ||||||||
2013 | 2012 | |||||||
Net operating loss carryforwards | $ | 32,253 | $ | 29,919 | ||||
Net operating loss carryforwards of foreign subsidiaries | 374 | 374 | ||||||
Book over tax depreciation | (43 | ) | (41 | ) | ||||
Stock-based compensation expense | 577 | 490 | ||||||
Other | 116 | 130 | ||||||
Deferred tax assets | 33,277 | 30,872 | ||||||
Valuation allowance for deferred tax assets | (33,277 | ) | (30,872 | ) | ||||
Deferred tax assets, net of allowance | $ | — | $ | — | ||||
Deferred tax assets are required to be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. Realization of the future benefits related to the deferred tax assets is dependent on many factors, including the Company’s ability to generate taxable income within the near to medium term. Management has considered these factors in determining the valuation allowance for 2013 and 2012. | ||||||||
The differences between the provision for income taxes and income taxes computed using the federal statutory rate for the years ended December 31, 2013 and 2012 are as follows (in thousands): | ||||||||
2013 | 2012 | |||||||
Reconciliation of income tax benefit to statutory rate: | ||||||||
Income tax (benefit) at statutory rate | $ | 212 | $ | (84 | ) | |||
State income taxes, net of federal income tax benefit | 4 | — | ||||||
Changes in state net operating loss carryforwards | — | (2 | ) | |||||
Permanent differences | 8 | 9 | ||||||
True-up prior year NOL | (8 | ) | 213 | |||||
Change in valuation allowance | 2,405 | (138 | ) | |||||
Change in state tax rate | (2,605 | ) | — | |||||
Other | (16 | ) | 2 | |||||
$ | — | $ | — | |||||
At December 31, 2013, we had federal net operating loss carryforwards of approximately $85.7 million for income tax purposes that begin to expire in 2021 and are subject to the ownership change limitations under Internal Revenue Code Section 382. We also had approximately $6 million of state net operating loss carryforwards that begin to expire in 2017. |
Stock_Options
Stock Options | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock Options | ' | |||||||||||||
Stock Options | ' | |||||||||||||
9. Stock Options | ||||||||||||||
At December 31, 2013, we had three stock-based compensation plans, which are described below. These plans were developed to retain and attract key employees and directors. | ||||||||||||||
In 1995, we adopted our 1995 Stock Option Plan (the “1995 Plan”), which provides for the issuance of up to 400,000 shares of common stock upon exercise of options granted pursuant to the 1995 Plan. In 2000 and 2001, our stockholders approved to increase the overall number of shares available for issuance pursuant to the plan to a total of 825,000 shares of common stock. The 1995 Plan provides for the issuance of both non-qualified and incentive stock options to our employees, officers, and employee-directors. The 1995 Plan expired by its terms on March 21, 2005 and no options were available for future issuance after the expiration. At December 31, 2013, 67,365 employee options have been exercised and employee options to purchase a total of 172,675 shares of common stock were outstanding. | ||||||||||||||
In 1995, we adopted the 1995 Non-Employee Director Stock Option Plan (the “1995 Non-Employee Director Plan”). The 1995 Non-Employee Director Plan provided for the issuance of non-qualified stock options to non-employee directors. The 1995 Non-Employee Director Plan was amended in April 2002 to increase the number of shares available for issuance to 65,000 from 40,000 shares. The 1995 Non-Employee Director Plan expired by its terms on March 21, 2005 and no options were available for future issuance after the expiration. No options have been exercised under the 1995 Non-Employee Director Plan. Non-employee options to purchase a total of 7,500 shares of common stock were outstanding at December 31, 2013. A total of 62,500 options have been granted to directors pursuant to the 1995 Non-Employee Director Plan, of which, 55,000 have been cancelled. | ||||||||||||||
On March 17, 2005, the Board approved the 2005 Stock Incentive Plan (the “2005 Plan”), which was approved by the stockholders on June 14, 2005. The 2005 Plan serves as a replacement for the 1995 Non-Employee Director Plan and the 1995 Plan which expired by their terms on March 21, 2005. The approval of the 2005 Plan had no effect on the 1995 Plans or any options granted pursuant to either plan. All options will continue with their existing terms and will be subject to the 1995 Non-Employee Director Plan or the 1995 Plan, as applicable. Further, the Company will not be able to re-issue any option which is cancelled or terminated under the 1995 Non-Employee Director Plan or the 1995 Plan. The 2005 Plan provided for the issuance of up to 750,000 shares of common stock upon exercise of options granted pursuant to the 2005 Plan. On May 30, 2007, the stockholders approved an Amendment to the 2005 Plan that increased this amount by 750,000 for a total of 1,500,000 shares of common stock that may be issued upon the exercise of options granted pursuant to the 2005 Plan. On May 29, 2008 and May 21, 2009, the stockholders approved an increase of 500,000 shares, respectively, of common stock that may be issued pursuant to the 2005 Plan for a total of 2,500,000 shares. On May 20, 2010, the stockholders approved an additional increase of 500,000 shares of common stock that may be issued pursuant to the 2005 Plan for a total of 3,000,000 shares. On May 19, 2011, the stockholders approved an additional increase of 400,000 shares of common stock that may be issued pursuant to the 2005 Plan for a total of 3,400,000 shares. Finally, on May 17, 2012, the stockholders approved an additional increase of 300,000 shares of common stock that may be issued pursuant to the 2005 Plan for a total of 3,700,000 shares. | ||||||||||||||
The 2005 Plan consists of three separate equity incentive programs: the Discretionary Option Grant Program; the Stock Issuance Program; and the Automatic Option Grant Program for non-employee Board members. Officers and employees, non-employee Board members and independent contractors are eligible to participate in the Discretionary Option Grant and Stock Issuance Programs. Participation in the Automatic Option Grant Program is limited to non-employee members of the Board. Each non-employee Board member will receive an option grant for 10,000 shares of common stock upon initial election or appointment to the Board, provided that such individual has not previously been employed by the Company in the preceding six (6) months. In addition, on the date of each annual stockholders meeting, each Board member will automatically be granted an option to purchase 5,000 shares of common stock, provided he or she has served as a non-employee Board member for at least six months. At December 31, 2013, 297,001 options had been exercised and options to purchase a total of 2,864,500 shares of common stock were outstanding. A total of 3,553,500 options had been granted under the 2005 Plan, of which 391,999 have been cancelled and options for 538,499 shares remained available for future grant. No shares have been issued pursuant to the Stock Issuance Program. | ||||||||||||||
Common shares reserved for future issuance, including conversions of preferred stock, outstanding options and options available for future grant under all of the stock option plans totaled 4,747,102 shares at December 31, 2013 as follows, in thousands: | ||||||||||||||
(In thousands) | Common Shares | |||||||||||||
Reserved for Future | ||||||||||||||
Issuance | ||||||||||||||
Preferred Stock | 1,164 | |||||||||||||
1995 Plan | 172 | |||||||||||||
1995 Non-Employee Director Plan | 8 | |||||||||||||
2005 Plan | 3,403 | |||||||||||||
Total | 4,747 | |||||||||||||
The Compensation Committee of our Board of Directors determines for all employee options, the term of each option, option exercise price within limits set forth in the plans, number of shares for which each option is granted and the rate at which each option is exercisable (generally ratably over one, three or five years from grant date). However, the exercise price of any incentive stock option may not be less than the fair market value of the shares on the date granted (or less than 110% of the fair market value in the case of optionees holding more than 10% of our voting stock of the Company), and the term cannot exceed ten years (five years for incentive stock options granted to holders of more than 10% of our voting stock). | ||||||||||||||
Stock Incentive Plan Summary | ||||||||||||||
A summary of our stock option activity and related information for the years ended December 31, 2013 and 2012 is as follows: | ||||||||||||||
2013 | 2012 | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Options (in | Average | Options (in | Average | |||||||||||
thousands) | Exercise | thousands) | Exercise | |||||||||||
Price | Price | |||||||||||||
Outstanding at beginning of year | 2,779 | $ | 0.78 | 2,691 | $ | 0.77 | ||||||||
Granted at price =arket value | 219 | 0.51 | 223 | 0.65 | ||||||||||
Granted at price > market value | 75 | 0.53 | 105 | 0.72 | ||||||||||
Exercised | - | - | (230 | ) | 0.33 | |||||||||
Forfeited | (3 | ) | 0.48 | - | - | |||||||||
Expired | (25 | ) | 1.99 | (10 | ) | 5.21 | ||||||||
Outstanding at end of year | 3,045 | $ | 0.74 | 2,779 | $ | 0.78 | ||||||||
Options exercisable at end of year | 2,396 | $ | 0.78 | 2,012 | $ | 0.84 | ||||||||
Stock Options Outstanding and Exercisable | ||||||||||||||
Information related to stock options outstanding at December 31, 2013, is summarized below: | ||||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Range of Exercise Prices | Outstanding at | Weighted | Weighted | Exercisable at | Weighted | |||||||||
12/31/13 (in | Average | Average | 12/31/13 (in | Average | ||||||||||
thousands) | Remaining | Exercise | thousands) | Exercise | ||||||||||
Contractual Life | Price | Price | ||||||||||||
$ 0.20-$0.50 | 1,831 | 4.41 years | $ | 0.34 | 1,623 | $ | 0.32 | |||||||
$ 0.51-$1.00 | 846 | 5.82 years | $ | 0.68 | 413 | $ | 0.7 | |||||||
$ 1.01-$3.00 | 123 | 1.44 years | $ | 2.41 | 115 | $ | 2.5 | |||||||
$ 3.01-$5.44 | 245 | 1.34 years | $ | 3.11 | 245 | $ | 3.11 | |||||||
3,045 | 4.44 years | $ | 0.74 | 2,396 | $ | 0.78 | ||||||||
Summarized information about outstanding stock options as of December 31, 2013, that are fully vested and those that are expected to vest in the future as well as stock options that are fully vested and currently exercisable, are as follows: | ||||||||||||||
Outstanding Stock | Options that are | |||||||||||||
Options (Fully Vested | Exercisable | |||||||||||||
and Expected to Vest)* | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Number of outstanding options | 3,045 | 2,396 | ||||||||||||
Weighted average remaining contractual life | 4.44 | 3.76 | ||||||||||||
Weighted average exercise price per share | $ | 0.74 | $ | 0.78 | ||||||||||
Intrinsic value (in thousands) | $ | 2,250 | $ | 1,868 | ||||||||||
* Includes effects of expected forfeitures | ||||||||||||||
As of December 31, 2013, the total unrecognized compensation cost related to non-vested options not yet recognized in the statement of operations totaled approximately $84 thousand (including expected forfeitures) and the weighted average period over which these awards are expected to vest was .75 years. |
Preferred_Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2013 | |
Preferred Stock | ' |
Preferred Stock | ' |
10. Preferred Stock | |
5% Preferred Stock | |
On March 25, 2004, we completed a $5.0 million private placement of our 5% convertible preferred stock and warrants. In the private placement, we sold 1,000,000 shares of our 5% preferred stock at a price of $5.00 per share for gross proceeds of $5.0 million, less $275,000 of issuance costs. The 5% preferred shares were initially convertible into 1,590,331 shares of common stock at a conversion price of $3.144 per share. Holders of the 5% convertible preferred stock include 140,000 shares purchased by our CEO and 60,000 shares purchased by a director of the Company. | |
The 5% dividends related to the 5% preferred stock are paid semi-annually on the last business day in March and September of each year, beginning with September 2004. Preferred stockholders vote together with common stockholders on an as converted to common stock basis. Based on the conversion rate of the preferred stock, holders of our 5% preferred stock will receive 1.5903 votes per share rounded to the nearest whole number. The liquidation preference for the 5% preferred stock is an amount equal to $5.00 per share plus any accrued and unpaid dividends. Holders of our 5% preferred stock have liquidation preference rights over common stockholders. | |
All warrants previously issued to 5% convertible preferred stock holders have expired. | |
We have the right to redeem any or all of the outstanding 5% preferred stock at a price of $5.00 per share plus accrued dividends at any time if certain conditions are met. | |
At December 31, 2013 there were 220,000 shares of our 5% preferred stock outstanding. | |
Series 2 5% Preferred Stock | |
On March 28, 2005, we completed a $2.7 million private placement of Series 2 5% convertible preferred stock and warrants. In the private placement, we sold 1,065,200 shares of preferred stock at a price of $2.50 per share for gross proceeds of $2.7 million, less $173,000 of issuance costs. The shares of Series 2 5% preferred stock are convertible into 1,065,200 shares of common stock at an initial conversion price of $2.50 per share. Holders of the Series 2 5% preferred stock include 260,000 shares by our CEO, 100,000 shares by our CFO and 60,000 shares by a director of the Company. | |
The 5% dividends accruing on the Series 2 5% preferred stock are required to be paid quarterly on the first business day in March, June, September and December of each year, beginning with June 2005. The liquidation preference for the preferred stock is an amount equal to $2.50 per share plus any accrued and unpaid dividends. Holders of our Series 2 5% preferred stock have liquidation preference rights over our 5% preferred stock holders as well as our common stockholders. The holders of the Series 2 5% preferred stock are not entitled to vote on any matter, except as otherwise required by law or with respect to certain limited matters specified in the certificate of designations. | |
All warrants previously issued to Series 2 5% convertible preferred stock holders have expired. | |
Holders of Series 2 5% preferred stock have the right to require us to redeem any or all of the their shares upon the occurrence of certain events within the Company’s control that are defined in Certificate of Designation at a price equal the sum of (1) the greater of $3.25 and the product of the volume weighted average price of our common stock on the trading day immediately preceding the event multiplied by $2.50 divided by the conversion price then in effect plus (2) any accrued but unpaid dividends on the Series 2 5% preferred stock plus (3) all liquidated damages or other amounts payable to the holders of Series 2 5% preferred stock. | |
At December 31, 2013 there were 460,000 shares of Series 2 5% preferred stock outstanding. | |
Series 3 5% Preferred Stock | |
On December 2, 2005, we completed a $1.2 million private placement of Series 3 5% convertible preferred stock and warrants. In the private placement, we sold 564,607 shares of preferred stock at a price of $2.18 per share for gross proceeds of $1.2 million, less $100,000 of issuance costs. The shares of Series 3 5% preferred stock are convertible into 564,607 shares of common stock at an initial conversion price of $2.18 per share. Holders of the Series 3 5% preferred stock include 123,853 shares by our CEO, 68,808 shares by our CFO and 27,523 shares purchased by a director of the Company. | |
The 5% dividends accruing on the Series 3 5% preferred stock are required to be paid quarterly on the first business day in March, June, September and December of each year, beginning with March 1, 2006. The liquidation preference for the preferred stock is an amount equal to $2.18 per share plus any accrued and unpaid dividends. Holders of our Series 3 5% preferred stock have liquidation preference rights over holders of our 5% preferred, Series 2 5% preferred stock and common stock. The holders of the Series 3 5% preferred stock are not entitled to vote on any matter, except as otherwise required by law or with respect to certain limited matters specified in the certificate of designations. | |
All warrants previously issued to Series 3 5% convertible preferred stock holders have expired. | |
Holders of Series 3 5% preferred stock have the right to require us to redeem any or all of their shares upon the occurrence of certain events within the Company’s control that are defined in the certificate of designation at a price equal the sum of (1) the greater of $2.834 and the product of the volume weighted average price of our common stock on the trading day immediately preceding the event multiplied by $2.18 divided by the conversion price then in effect plus (2) any accrued but unpaid dividends on the Series 3 5% preferred stock plus (3) all liquidated damages or other amounts payable to the holders of Series 3 5% preferred stock. | |
At December 31, 2013 there are 354,056 shares of Series 3 5% preferred stock outstanding. | |
Dividends Payable | |
During the fiscal year ended December 31, 2013, we accrued $55,000 in dividends to the holders of our 5% Preferred Stock, $57,000 in dividends to the holders of our Series 2 5% Preferred Stock and $39,000 in dividends to the holders of our Series 3 5% Preferred Stock. As of December 31, 2013, we have $437,000 in accrued and unpaid dividends included in other current liabilities. Delaware law provides that we may only pay dividends out of our capital surplus or, if no surplus is available, out of our net profits for the fiscal year the dividend is declared and/or the preceding fiscal year. |
Concentrations
Concentrations | 12 Months Ended |
Dec. 31, 2013 | |
Concentrations | ' |
Concentrations | ' |
11. Concentrations | |
Our operations are concentrated in one area—security software/entity identification. Sales to the U.S. Government through direct and indirect channels totaled 50.1% of total revenues for 2013 and 40.5% of total revenues for 2012. During 2013 approximately 46.0% of total revenues are attributable to four government customers. During 2012 approximately 38.2% of total revenues are attributable to four government customers. One individual commercial customer in 2013 exceeded 30% of total revenues for the year; while 2012 had one individual commercial customer that exceeded 57% of total revenues for the year. Our similar product and service offerings are not viewed as individual segments, as our management analyzes the business as a whole and expenses are not allocated to each product offering. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
12. Subsequent Events | |
On February 6, 2014, the Company entered into an unsecured revolving promissory note to borrow up to $2,200,000 from G. Ward Paxton, the Company’s Chief Executive Officer. Under the terms of the note, the Company may borrow, repay and reborrow on the loan as needed up to an outstanding principal balance due of $2,200,000 at any given time through March 2015. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Summary of Significant Accounting Policies | ' | |||||
Principles of Consolidation | ' | |||||
Principles of Consolidation | ||||||
Our consolidated financial statements include our accounts and those of our wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. | ||||||
Cash and Cash Equivalents | ' | |||||
Cash and Cash Equivalents | ||||||
Cash and all highly liquid investments purchased with an original maturity of less than three months are considered to be cash and cash equivalents. | ||||||
Risk Concentration | ' | |||||
Risk Concentration | ||||||
Financial instruments, which potentially subject us to concentrations of credit risk, are primarily cash and cash equivalents, investments and accounts receivable. Cash and cash equivalent deposits are at risk to the extent that they exceed Federal Deposit Insurance Corporation insured amounts. To minimize risk, we place our investments in U.S. government obligations, corporate securities and money market funds. Substantially all of our cash, cash equivalents and investments are maintained with two major U.S. financial institutions. We do not believe that we are subject to any unusual financial risk with our banking arrangements. We have not experienced any significant losses on our cash and cash equivalents. | ||||||
We sell our products to customers in diversified industries worldwide and periodically have receivables from customers, primarily in North America, Europe and Asia. Fluctuations in currency exchange rates and adverse economic developments in foreign countries could adversely affect the Company’s operating results. We perform ongoing credit evaluations of our customers’ financial condition and generally require no collateral. We maintain reserves for potential credit losses, and such losses, in the aggregate, have historically been minimal and have not exceeded management’s expectations. | ||||||
While we believe that many of the materials used in the production of our products are generally readily available from a variety of sources, certain components may be available from one or a limited number of suppliers. The inability of any supplier or manufacturer to fulfill supply requirements of the Company could impact future results. | ||||||
Accounts Receivable and Allowance for Doubtful Accounts | ' | |||||
Accounts Receivable and Allowance for Doubtful Accounts | ||||||
Trade accounts receivable are stated at the amount we expect to collect. We maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. Management considers the following factors when determining the collectability of specific customer accounts: customer credit-worthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. If the financial condition of our customers were to deteriorate, adversely affecting their ability to make payments, additional allowances would be required. Based on management’s assessment, we provide for estimated uncollectible amounts through a charge to earnings and an increase to a valuation allowance. Balances that remain outstanding after we have used reasonable collection efforts are written off through a charge to the valuation allowance. | ||||||
Inventories | ' | |||||
Inventories | ||||||
Inventories are stated at the lower of cost or market. We value our inventories using average cost, which approximates actual cost on a first-in, first-out basis. Our management estimates the allowance required to state inventory at the lower of cost or market. There is a risk that we will forecast demand for our products and market conditions incorrectly and maintain excess inventories. Therefore, there can be no assurance that we will not maintain excess inventory and incur inventory lower of cost or market charges in the future. | ||||||
Property and Equipment | ' | |||||
Property and Equipment | ||||||
Equipment and furniture and fixtures are stated at cost less accumulated depreciation and depreciated on a straight-line basis over the estimated useful lives of the assets. Such lives vary from 1 to 5 years. Leasehold improvements are stated at cost less accumulated amortization and are amortized on a straight-line basis over the shorter of estimated useful lives of the assets or the remaining terms of the leases. Such lives vary from 2 to 5 years. Expenditures for major renewals and betterments that extend the useful lives of property and equipment are capitalized. Repair and maintenance costs are expensed as incurred. Depreciation and amortization expense totaled approximately $147,000 and $155,000 for the years ended December 31, 2013 and 2012, respectively. | ||||||
Long-Lived Assets | ' | |||||
Long-Lived Assets | ||||||
We review long-lived assets, including property and equipment 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 future undiscounted cash flows to be generated by the asset. If the carrying value exceeds the future undiscounted cash flows, the assets are written down to fair value. During the years ended December 31, 2013 and 2012, there was no impairment of long-lived assets. | ||||||
Foreign Currency | ' | |||||
Foreign Currency | ||||||
All assets and liabilities in the balance sheets of foreign subsidiaries whose functional currency is other than the U.S. dollar are translated at year-end exchange rates. All revenues and expenses in the statement of operations of these foreign subsidiaries are translated at average exchange rates for the year. Translation gains and losses are not included in determining net income but are shown in accumulated other comprehensive loss in the stockholders’ deficit section of the consolidated balance sheet. Foreign currency transaction gains and losses are included in determining net income (loss) and were not significant. | ||||||
Accounting for Stock Options | ' | |||||
Accounting for Stock Options | ||||||
We account for stock options using the guidance in Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 718. FASB ASC Topic 718 requires all share-based payments to employees, including grants of employee stock options, to be recognized in the financial statements based on their fair values. | ||||||
Stock-based compensation expense recognized in the statements of operations for the years ended 2013 and 2012 is based on awards ultimately expected to vest, reduced by estimated forfeitures. FASB ASC Topic 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. | ||||||
Valuation Assumptions | ||||||
The fair values of option awards were estimated at the date of grant using a Black-Scholes option-pricing model with the following assumptions for fiscal years ended December 31, 2013 and 2012, respectively: | ||||||
2013 | 2012 | |||||
Weighted average grant date fair value | $0.49 | $0.63 | ||||
Weighted average assumptions used: | ||||||
Expected dividend yield | 0 | % | 0 | % | ||
Risk-free interest rate | 0.83 | % | 0.84 | % | ||
Expected volatility | 225.21 | % | 213.17 | % | ||
Expected life (in years) | 4.91 | 4.89 | ||||
Expected volatility is based on historical volatility and in part on implied volatility. The expected term considers the contractual term of the option as well as historical exercise and forfeiture behavior. The risk-free interest rate is based on the rates in effect on the grant date for U.S. Treasury instruments with maturities matching the relevant expected term of the award. | ||||||
Net Income (Loss) Per Share | ' | |||||
Net Income (Loss) Per Share | ||||||
We report two separate net income (loss) per share numbers, basic and diluted. Basic net income (loss) attributable to common stockholders per share is computed by dividing net income (loss) attributable to common stockholders for the year by the weighted average number of common shares outstanding for the year. Diluted net income (loss) attributable to common stockholders per share is computed by dividing the net income (loss) attributable to common stockholders for the year by the weighted average number of common shares and dilutive common stock equivalents outstanding for the year. Our common stock equivalents include all common stock issuable upon conversion of convertible preferred stock and the exercise of outstanding options and warrants. Common stock equivalents are included in the diluted income (loss) per share for the years ended December 31, 2013 and 2012 except in cases where the issuance would be anti-dilutive. The aggregate number of common stock equivalents excluded from the diluted income (loss) per share calculation at December 31, 2013 and 2012 totaled 904,148 and 4,008,364, respectively. | ||||||
Revenue Recognition | ' | |||||
Revenue Recognition | ||||||
We generally recognize product revenue upon shipment. These products include both hardware and perpetual software licenses, as we do not currently offer software on a subscription basis. We accrue for estimated warranty costs and sales returns at the time of shipment based on our experience. There is a risk that technical issues on new products could result in unexpected warranty costs and returns. To the extent that our warranty costs exceed our expectations, we will increase our warranty reserve to compensate for the additional expense expected to be incurred. We review these estimates periodically and determine the appropriate reserve percentage. However, to date, warranty costs and sales returns have not been material. The customer may return a product only under very limited circumstances during the first thirty days from delivery for a replacement if the product is damaged or for a full refund if the product does not perform as intended. Historically, most or our sales returns were related to hardware-based products. As we continue to migrate away from such hardware-based products, these returns have declined. | ||||||
We recognize software revenue from the licensing of our software products in accordance with FASB ASC Topic 605 whereby revenue from the licensing of our products is not recognized until all four of the following have been met: i) execution of a written agreement; ii) delivery of the product has occurred; iii) the fee is fixed and determinable; and iv) collectability is probable. Bundled hardware and software product revenue is recognized at time of delivery, as our licenses are not sold on a subscription basis. Product sales which include maintenance and customer support allocate revenue in an arrangement using estimated selling prices of the delivered goods and services based on a selling price hierarchy using the relative selling price method. All of our product offering and service offering market values are readily determined based on current and prior stand-alone sales. We defer and recognize maintenance and support revenue over the term of the contract period, which is generally one year. | ||||||
Service revenue, primarily including maintenance, training and installation are recognized upon delivery of the service and typically are unrelated to product sales. To date, training and installation revenue has not been material. These revenues are included in net customer support and maintenance revenues in the statement of operations. | ||||||
Our normal payment terms offered to customers, distributors and resellers are net 30 days domestically and net 45 days internationally. We do not offer payment terms that extend beyond one year and rarely do we extend payment terms beyond our normal terms. If certain customers do not meet our credit standards, we do require payment in advance to limit our credit exposure. | ||||||
Shipping and handling costs are billed to the customer and included in product revenue. Our costs of shipping and handling are included in cost of product revenue. | ||||||
Research and Development Costs | ' | |||||
Research and Development Costs | ||||||
We incur research and development costs that relate primarily to the development of new security software, appliances and integrated solutions, and major enhancements to existing services and products. Research and development costs are comprised primarily of salaries and related benefits expenses, contract labor and prototype and other related expenses. | ||||||
Software development costs are included in research and development and are expensed as incurred. FASB ASC Topic 350 requires that software development costs incurred subsequent to reaching technological feasibility be capitalized, if material. If the process of developing a new product or major enhancement does not include a detailed program design, technological feasibility is determined only after completion of a working model. To date, the period between achieving technological feasibility and the general availability of such software has been short, and the software development costs qualifying for capitalization have been insignificant. | ||||||
Use of Estimates | ' | |||||
Use of Estimates | ||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Estimates are used for, but not limited to, the accounting for doubtful accounts, sales discounts, sales returns, revenue recognition, warranty costs, inventory obsolescence, depreciation and income taxes. Actual results could differ from these estimates. | ||||||
Fair Value of Financial Instruments | ' | |||||
Fair Value of Financial Instruments | ||||||
We calculate the fair value of our assets and liabilities which qualify as financial instruments and include additional information in the notes to consolidated financial statements when the fair value is different than the carrying value of these financial instruments. The estimated fair value of accounts receivable, accounts payable and accrued expenses, and dividends payable approximate their carrying amounts due to the relatively short maturity of these instruments. The carrying value of the line of credit payable approximates fair value since this instrument bears market interest rates. Loans payable to officer are with a related party and as a result do not bear market rates of interest. Management believes based on its current financial position that it could not obtain comparable amounts of third party financing, and as such cannot estimate the fair value of the loans payable to officer. None of these instruments are held for trading purposes. | ||||||
Income Taxes | ' | |||||
Income Taxes | ||||||
Deferred income taxes are determined using the liability method in accordance with FASB ASC 740, Accounting for Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. In addition, a valuation allowance is established to reduce any deferred tax asset for which it is determined that it is more likely than not that some portion of the deferred tax asset will not be realized. | ||||||
FASB ASC 740 creates a single model to address accounting for uncertainty in tax positions by prescribing a minimum recognition threshold that a tax position is required to meet before being recognized in the financial statements. FASB ASC 740 also provides guidance on derecognition, measurement, classification, interest and penalties, accounting in interim periods, disclosure and transition. There are no unrecognized tax benefits to disclose in the notes to the consolidated financial statements. | ||||||
We file income tax returns in the United States federal jurisdiction. At December 31, 2013, tax returns related to fiscal years ended December 31, 2010 through December 31, 2012 remain open to possible examination by the tax authorities. No tax returns are currently under examination by any tax authorities. We did not incur any penalties or interest during the years ended December 31, 2013 and 2012. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Summary of Significant Accounting Policies | ' | |||||
Schedule of assumptions used to estimate the fair values of employee and director options awards at the date of grant using a Black-Scholes option-pricing model | ' | |||||
2013 | 2012 | |||||
Weighted average grant date fair value | $0.49 | $0.63 | ||||
Weighted average assumptions used: | ||||||
Expected dividend yield | 0 | % | 0 | % | ||
Risk-free interest rate | 0.83 | % | 0.84 | % | ||
Expected volatility | 225.21 | % | 213.17 | % | ||
Expected life (in years) | 4.91 | 4.89 |
Balance_Sheet_Detail_in_thousa1
Balance Sheet Detail (in thousands) (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Balance Sheet Detail (in thousands) | ' | |||||||
Schedule of inventories | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Finished products | $ | 19 | $ | 5 | ||||
Schedule of accrued expenses | ' | |||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Accrued payroll | $ | 96 | $ | 76 | ||||
Accrued vacation | 290 | 271 | ||||||
Rent payable | 106 | — | ||||||
Accrued interest | 76 | 130 | ||||||
Accrued bonus | 116 | — | ||||||
Other | 158 | 71 | ||||||
$ | 842 | $ | 548 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2013 | |||||||||||
Commitments and Contingencies. | ' | ||||||||||
Schedule of future minimum lease obligations | ' | ||||||||||
Future minimum lease obligations consisted of the following at December 31, 2013 (in thousands): | |||||||||||
Operating | Capital Lease | ||||||||||
Year ending December 31, | Leases | Obligations | Total | ||||||||
2014 | $ | 398 | $ | 115 | $ | 513 | |||||
2015 | 406 | 58 | 464 | ||||||||
2016 | 394 | 11 | 405 | ||||||||
2017 and thereafter | 130 | — | 130 | ||||||||
$ | 1,328 | $ | 184 | $ | 1,512 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Taxes | ' | |||||||
Schedule of significant components of deferred tax assets (liabilities) | ' | |||||||
Significant components of our deferred tax assets (liabilities) as of December 31, 2013 and 2012 are as follows (in thousands): | ||||||||
December 31 | ||||||||
2013 | 2012 | |||||||
Net operating loss carryforwards | $ | 32,253 | $ | 29,919 | ||||
Net operating loss carryforwards of foreign subsidiaries | 374 | 374 | ||||||
Book over tax depreciation | (43 | ) | (41 | ) | ||||
Stock-based compensation expense | 577 | 490 | ||||||
Other | 116 | 130 | ||||||
Deferred tax assets | 33,277 | 30,872 | ||||||
Valuation allowance for deferred tax assets | (33,277 | ) | (30,872 | ) | ||||
Deferred tax assets, net of allowance | $ | — | $ | — | ||||
Schedule of differences between the provision for income taxes and income taxes computed using the federal statutory rate | ' | |||||||
The differences between the provision for income taxes and income taxes computed using the federal statutory rate for the years ended December 31, 2013 and 2012 are as follows (in thousands): | ||||||||
2013 | 2012 | |||||||
Reconciliation of income tax benefit to statutory rate: | ||||||||
Income tax (benefit) at statutory rate | $ | 212 | $ | (84 | ) | |||
State income taxes, net of federal income tax benefit | 4 | — | ||||||
Changes in state net operating loss carryforwards | — | (2 | ) | |||||
Permanent differences | 8 | 9 | ||||||
True-up prior year NOL | (8 | ) | 213 | |||||
Change in valuation allowance | 2,405 | (138 | ) | |||||
Change in state tax rate | (2,605 | ) | — | |||||
Other | (16 | ) | 2 | |||||
$ | — | $ | — |
Stock_Options_Tables
Stock Options (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stock Options | ' | |||||||||||||
Schedule of common shares reserved for future issuance, including conversions of preferred stock, outstanding options and options available for future grant under all of the stock option plans | ' | |||||||||||||
Common shares reserved for future issuance, including conversions of preferred stock, outstanding options and options available for future grant under all of the stock option plans totaled 4,747,102 shares at December 31, 2013 as follows, in thousands: | ||||||||||||||
(In thousands) | Common Shares | |||||||||||||
Reserved for Future | ||||||||||||||
Issuance | ||||||||||||||
Preferred Stock | 1,164 | |||||||||||||
1995 Plan | 172 | |||||||||||||
1995 Non-Employee Director Plan | 8 | |||||||||||||
2005 Plan | 3,403 | |||||||||||||
Total | 4,747 | |||||||||||||
Summary of stock option activity | ' | |||||||||||||
2013 | 2012 | |||||||||||||
Number of | Weighted | Number of | Weighted | |||||||||||
Options (in | Average | Options (in | Average | |||||||||||
thousands) | Exercise | thousands) | Exercise | |||||||||||
Price | Price | |||||||||||||
Outstanding at beginning of year | 2,779 | $ | 0.78 | 2,691 | $ | 0.77 | ||||||||
Granted at price =arket value | 219 | 0.51 | 223 | 0.65 | ||||||||||
Granted at price > market value | 75 | 0.53 | 105 | 0.72 | ||||||||||
Exercised | - | - | (230 | ) | 0.33 | |||||||||
Forfeited | (3 | ) | 0.48 | - | - | |||||||||
Expired | (25 | ) | 1.99 | (10 | ) | 5.21 | ||||||||
Outstanding at end of year | 3,045 | $ | 0.74 | 2,779 | $ | 0.78 | ||||||||
Options exercisable at end of year | 2,396 | $ | 0.78 | 2,012 | $ | 0.84 | ||||||||
Schedule of information related to stock options outstanding and exercisable, by exercise price range | ' | |||||||||||||
Options Outstanding | Options Exercisable | |||||||||||||
Range of Exercise Prices | Outstanding at | Weighted | Weighted | Exercisable at | Weighted | |||||||||
12/31/13 (in | Average | Average | 12/31/13 (in | Average | ||||||||||
thousands) | Remaining | Exercise | thousands) | Exercise | ||||||||||
Contractual Life | Price | Price | ||||||||||||
$ 0.20-$0.50 | 1,831 | 4.41 years | $ | 0.34 | 1,623 | $ | 0.32 | |||||||
$ 0.51-$1.00 | 846 | 5.82 years | $ | 0.68 | 413 | $ | 0.7 | |||||||
$ 1.01-$3.00 | 123 | 1.44 years | $ | 2.41 | 115 | $ | 2.5 | |||||||
$ 3.01-$5.44 | 245 | 1.34 years | $ | 3.11 | 245 | $ | 3.11 | |||||||
3,045 | 4.44 years | $ | 0.74 | 2,396 | $ | 0.78 | ||||||||
Summary of information about outstanding stock options fully vested and expected to vest in the future as well as stock options fully vested and currently exercisable | ' | |||||||||||||
Outstanding Stock | Options that are | |||||||||||||
Options (Fully Vested | Exercisable | |||||||||||||
and Expected to Vest)* | ||||||||||||||
As of December 31, 2013 | ||||||||||||||
Number of outstanding options | 3,045 | 2,396 | ||||||||||||
Weighted average remaining contractual life | 4.44 | 3.76 | ||||||||||||
Weighted average exercise price per share | $ | 0.74 | $ | 0.78 | ||||||||||
Intrinsic value (in thousands) | $ | 2,250 | $ | 1,868 | ||||||||||
* Includes effects of expected forfeitures | ||||||||||||||
Description_of_Business_Detail
Description of Business (Details) (USD $) | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Jun. 24, 2013 | Dec. 31, 2013 | Feb. 07, 2013 | |
Current Line of Credit | Current Line of Credit | Promissory note | Promissory note | ||||
G. Ward Paxton, chief executive officer | G. Ward Paxton, chief executive officer | ||||||
Description of Business | ' | ' | ' | ' | ' | ' | ' |
Minimum number of years for which local area networking equipment was provided | '15 years | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | $1,139,000 | $52,000 | $308,000 | ' | ' | ' | ' |
Net income (loss) | 623,000 | -246,000 | ' | ' | ' | ' | ' |
Period during which the entity expects to have sufficient cash resources to finance its operations and capital expenditures | '12 months | ' | ' | ' | ' | ' | ' |
Description of Business | ' | ' | ' | ' | ' | ' | ' |
Funding available | ' | ' | ' | 455,000 | ' | 670,000 | ' |
Maximum borrowing capacity | ' | ' | ' | $625,000 | $625,000 | $2,200,000 | $2,200,000 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
item | ||
Risk Concentration | ' | ' |
Number of major U.S. financial institutions with whom cash, cash equivalents and investments are maintained | 2 | ' |
Number of suppliers from whom certain components may be available | 1 | ' |
Property and equipment | ' | ' |
Depreciation and amortization | $147 | $155 |
Equipment and furniture and fixtures | Minimum | ' | ' |
Property and equipment | ' | ' |
Estimated useful lives | '1 year | ' |
Equipment and furniture and fixtures | Maximum | ' | ' |
Property and equipment | ' | ' |
Estimated useful lives | '5 years | ' |
Leasehold improvements | Minimum | ' | ' |
Property and equipment | ' | ' |
Estimated useful lives | '2 years | ' |
Leasehold improvements | Maximum | ' | ' |
Property and equipment | ' | ' |
Estimated useful lives | '5 years | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Valuation Assumptions | ' | ' |
Weighted average grant date fair value (in dollars per share) | $0.49 | $0.63 |
Weighted average assumptions used: | ' | ' |
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Risk-free interest rate (as a percent) | 0.83% | 0.84% |
Expected volatility (as a percent) | 225.21% | 213.17% |
Expected life | '4 years 10 months 28 days | '4 years 10 months 20 days |
Net Income Per Share | ' | ' |
Number of common stock equivalents excluded from the diluted income (loss) per share calculation (in shares) | 904,148 | 4,008,364 |
Long-Lived Assets | ' | ' |
Impairment of long-lived assets | $0 | $0 |
Revenue Recognition | ' | ' |
Number of days available to the customer to return the product from the date of delivery | '30 days | ' |
Term of the contract period over which maintenance and support revenue is deferred and recognized | '1 year | ' |
Period of payment terms offered to customers, distributors and resellers domestically | '30 days | ' |
Period of payment terms offered to customers, distributors and resellers internationally | '45 days | ' |
Maximum period for which payment terms can be offered | '1 year | ' |
Income Taxes | ' | ' |
Unrecognized tax benefits | $0 | $0 |
Balance_Sheet_Detail_in_thousa2
Balance Sheet Detail (in thousands) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Inventories | ' | ' |
Finished products | $19 | $5 |
Accrued Expenses | ' | ' |
Accrued payroll | 96 | 76 |
Accrued vacation | 290 | 271 |
Rent payable | 106 | ' |
Accrued interest | 76 | 130 |
Accrued bonus | 116 | ' |
Other | 158 | 71 |
Total Accrued expenses | $842 | $548 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
item | ||
Leases | ' | ' |
Number of operating leases | 2 | ' |
Renewal term | '1 year | ' |
Rent expense | $387,000 | $339,000 |
Operating Leases | ' | ' |
2014 | 398,000 | ' |
2015 | 406,000 | ' |
2016 | 394,000 | ' |
2017 and thereafter | 130,000 | ' |
Future minimum lease obligations | 1,328,000 | ' |
Capital Lease Obligations | ' | ' |
2014 | 115,000 | ' |
2015 | 58,000 | ' |
2016 | 11,000 | ' |
Future minimum lease obligations | 184,000 | ' |
Total | ' | ' |
2014 | 513,000 | ' |
2015 | 464,000 | ' |
2016 | 405,000 | ' |
2017 and thereafter | 130,000 | ' |
Future minimum lease obligations | $1,512,000 | ' |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employee 401(k) Plan | ' | ' |
Matching contribution by employer per dollar of contribution by participant | 25.00% | ' |
Maximum contribution by employer (as a percent) | 4.00% | ' |
Contribution by employer | $28,000 | $27,000 |
Minimum age for contribution of an additional amount of salary per year by participants | '50 years | ' |
Minimum | ' | ' |
Employee 401(k) Plan | ' | ' |
Contribution by participating employee (as a percent) | 1.00% | ' |
Maximum | ' | ' |
Employee 401(k) Plan | ' | ' |
Contribution by participating employee (as a percent) | 25.00% | ' |
Line_of_Credit_Details
Line of Credit (Details) (USD $) | Mar. 29, 2006 | Jun. 30, 2008 | Dec. 31, 2013 | Jun. 24, 2013 | Dec. 31, 2013 |
2006 Credit Line | 2008 Credit Line | Current Line of Credit | Current Line of Credit | Current Line of Credit | |
Maximum | |||||
Line of Credit | ' | ' | ' | ' | ' |
Maximum borrowing capacity | $1,000,000 | $2,500,000 | $625,000 | $625,000 | ' |
Contingent advances as a percentage of each Eligible Account | ' | ' | ' | ' | 80.00% |
Period of annual rate for calculating daily rate of finance charge on each advance | ' | ' | '360 days | ' | ' |
Finance charge basis | ' | ' | 'prime rate | ' | ' |
Percentage points added in daily rate of finance charge | ' | ' | 2.00% | ' | ' |
Minimum interest rate (as a percent) | ' | ' | 7.00% | ' | ' |
Monthly collateral handling fee (as a percent) | ' | ' | 0.50% | ' | ' |
Borrowings outstanding | ' | ' | $0 | ' | ' |
Borrowings_from_Officer_Detail
Borrowings from Officer (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Feb. 07, 2013 | Feb. 06, 2014 |
G. Ward Paxton, chief executive officer | G. Ward Paxton, chief executive officer | G. Ward Paxton, chief executive officer | |||
Revolving promissory note | Revolving promissory note | Revolving promissory note | |||
Subsequent event | |||||
Borrowing from Officer | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | $2,200,000 | $2,200,000 | $2,200,000 |
Finance charge basis | ' | ' | 'prime rate | ' | ' |
Percentage points added in interest rate | ' | ' | 1.00% | ' | ' |
Interest rate (as a percent) | ' | ' | 5.00% | ' | ' |
Loan payable to officer | 1,530,000 | 1,530,000 | 1,530,000 | ' | ' |
Accrued interest | $76,000 | $130,000 | $76,000 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets, net | ' | ' |
Net operating loss carryforwards | $32,253 | $29,919 |
Net operating loss carryforwards of foreign subsidiaries | 374 | 374 |
Book over tax depreciation | -43 | -41 |
Stock-based compensation expense | 577 | 490 |
Other | 116 | 130 |
Deferred tax assets | 33,277 | 30,872 |
Valuation allowance for deferred tax assets | -33,277 | -30,872 |
Deferred tax assets, net of allowance | 0 | ' |
Reconciliation of income tax benefit to statutory rate: | ' | ' |
Income tax (benefit) at statutory rate | 212 | -84 |
State income taxes, net of federal income tax benefit | 4 | ' |
Changes in state net operating loss carryforwards | ' | -2 |
Permanent differences | 8 | 9 |
True-up prior year NOL | -8 | 213 |
Change in valuation allowance | 2,405 | -138 |
Change in state tax rate | -2,605 | ' |
Other | -16 | 2 |
Income tax benefit | $0 | ' |
Income_Taxes_Details2
Income Taxes (Details2) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Federal | ' |
Operating loss carryforwards | ' |
Net operating loss carryforwards | $85.70 |
State | ' |
Operating loss carryforwards | ' |
Net operating loss carryforwards | $6 |
Stock_Options_Details
Stock Options (Details) (USD $) | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Mar. 22, 2005 | Dec. 31, 2001 | Dec. 31, 1995 | Dec. 31, 2013 | Mar. 22, 2005 | Apr. 30, 2002 | Dec. 31, 1995 | 17-May-12 | 19-May-11 | 20-May-10 | 21-May-09 | 29-May-08 | 30-May-07 | Dec. 31, 2013 | Mar. 17, 2005 | Dec. 31, 2013 | |
item | Maximum | Minimum | Preferred stock | 1995 Plan | 1995 Plan | 1995 Plan | 1995 Plan | 1995 Non-Employee Director Plan | 1995 Non-Employee Director Plan | 1995 Non-Employee Director Plan | 1995 Non-Employee Director Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | 2005 Plan | |||
item | Non-employee Board member | ||||||||||||||||||||||
Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of stock-based compensation plans | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for issuance | ' | ' | ' | ' | ' | ' | ' | ' | 825,000 | 400,000 | ' | ' | 65,000 | 40,000 | 3,700,000 | 3,400,000 | 3,000,000 | 2,500,000 | ' | 1,500,000 | ' | 750,000 | ' |
Options exercised (in shares) | ' | ' | ' | ' | ' | ' | 67,365 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 297,001 | ' | ' |
Options outstanding (in shares) | 3,045,000 | 2,779,000 | 2,691,000 | ' | ' | ' | 172,675 | ' | ' | ' | 7,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,864,500 | ' | ' |
Options granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 62,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,553,500 | ' | ' |
Options cancelled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 391,999 | ' | ' |
Additional increase in number of shares available for issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | 400,000 | 500,000 | 500,000 | 500,000 | 750,000 | ' | ' | ' |
Number of separate equity incentive programs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Options that will be granted upon initial election or appointment to the Board (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 |
Preceding period within which individual has not previously been employed by the company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months |
Options that will be granted to purchase shares of common stock on the date of each annual stockholders meeting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000 |
Period for which individual should serve as a non-employee Board member | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '6 months |
Shares available for future grant | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | 538,499 | ' | ' |
Shares issued pursuant to the Stock Issuance Program | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' |
Common Shares Reserved for Future Issuance | 4,747,000 | ' | ' | ' | ' | 1,164,000 | 172,000 | ' | ' | ' | 8,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,403,000 | ' | ' |
Option exercisable period one | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option exercisable period two | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Option exercisable period three | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercise price as a percentage of the fair market value of common stock in case of optionees holding more than 10% of voting stock | ' | ' | ' | 110.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Voting stock percentage to be held by optionees | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration term | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expiration term for incentive stock options granted to holders of more than 10% of the entity's voting stock | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock_Options_Details_2
Stock Options (Details 2) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Number of Options | ' | ' |
Outstanding at beginning of year (in shares) | 2,779 | 2,691 |
Granted at price =arket value (in shares) | 219 | 223 |
Granted at price > market value (in shares) | 75 | 105 |
Exercised (in shares) | ' | -230 |
Forfeited (in shares) | -3 | ' |
Expired (in shares) | -25 | -10 |
Outstanding at end of year (in shares) | 3,045 | 2,779 |
Options exercisable at end of year (in shares) | 2,396 | 2,012 |
Weighted Average Exercise Price | ' | ' |
Outstanding at beginning of year (in dollars per share) | $0.78 | $0.77 |
Granted at price =arket value (in dollars per share) | $0.51 | $0.65 |
Granted at price > market value (in dollars per share) | $0.53 | $0.72 |
Exercised (in dollars per share) | ' | $0.33 |
Forfeited (in dollars per share) | $0.48 | ' |
Expired (in dollars per share) | $1.99 | $5.21 |
Outstanding at end of year (in dollars per share) | $0.74 | $0.78 |
Options exercisable at end of year (in dollars per share) | $0.78 | $0.84 |
Stock_Options_Details_3
Stock Options (Details 3) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 |
Options Outstanding | ' |
Outstanding at the end of the period (in shares) | 3,045 |
Weighted Average Remaining Contractual Life | '4 years 5 months 8 days |
Weighted Average Exercise Price (in dollars per share) | $0.74 |
Options Exercisable | ' |
Exercisable at the end of the period (in shares) | 2,396 |
Weighted Average Exercise Price (in dollars per share) | $0.78 |
$0.20-$0.50 | ' |
Stock Options Outstanding and Exercisable | ' |
Exercise price, low end of range (in dollars per share) | $0.20 |
Exercise price, high end of range (in dollars per share) | $0.50 |
Options Outstanding | ' |
Outstanding at the end of the period (in shares) | 1,831 |
Weighted Average Remaining Contractual Life | '4 years 4 months 28 days |
Weighted Average Exercise Price (in dollars per share) | $0.34 |
Options Exercisable | ' |
Exercisable at the end of the period (in shares) | 1,623 |
Weighted Average Exercise Price (in dollars per share) | $0.32 |
$0.51-$1.00 | ' |
Stock Options Outstanding and Exercisable | ' |
Exercise price, low end of range (in dollars per share) | $0.51 |
Exercise price, high end of range (in dollars per share) | $1 |
Options Outstanding | ' |
Outstanding at the end of the period (in shares) | 846 |
Weighted Average Remaining Contractual Life | '5 years 9 months 25 days |
Weighted Average Exercise Price (in dollars per share) | $0.68 |
Options Exercisable | ' |
Exercisable at the end of the period (in shares) | 413 |
Weighted Average Exercise Price (in dollars per share) | $0.70 |
$1.01-$3.00 | ' |
Stock Options Outstanding and Exercisable | ' |
Exercise price, low end of range (in dollars per share) | $1.01 |
Exercise price, high end of range (in dollars per share) | $3 |
Options Outstanding | ' |
Outstanding at the end of the period (in shares) | 123 |
Weighted Average Remaining Contractual Life | '1 year 5 months 8 days |
Weighted Average Exercise Price (in dollars per share) | $2.41 |
Options Exercisable | ' |
Exercisable at the end of the period (in shares) | 115 |
Weighted Average Exercise Price (in dollars per share) | $2.50 |
$3.01-$5.44 | ' |
Stock Options Outstanding and Exercisable | ' |
Exercise price, low end of range (in dollars per share) | $3.01 |
Exercise price, high end of range (in dollars per share) | $5.44 |
Options Outstanding | ' |
Outstanding at the end of the period (in shares) | 245 |
Weighted Average Remaining Contractual Life | '1 year 4 months 2 days |
Weighted Average Exercise Price (in dollars per share) | $3.11 |
Options Exercisable | ' |
Exercisable at the end of the period (in shares) | 245 |
Weighted Average Exercise Price (in dollars per share) | $3.11 |
Stock_Options_Details_4
Stock Options (Details 4) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Outstanding Stock Options (Fully Vested and Expected to Vest) | ' | ' |
Number of outstanding options (in shares) | 3,045 | ' |
Weighted average remaining contractual life | '4 years 5 months 8 days | ' |
Weighted average exercise price per share (in dollars per share) | $0.74 | ' |
Intrinsic value (in thousands) | $2,250 | ' |
Options that are Exercisable | ' | ' |
Number of outstanding options (in shares) | 2,396 | 2,012 |
Weighted average remaining contractual life | '3 years 9 months 4 days | ' |
Weighted average exercise price per share (in dollars per share) | $0.78 | $0.84 |
Intrinsic value (in thousands) | 1,868 | ' |
Additional disclosures | ' | ' |
Total unrecognized compensation cost related to non-vested options | $84 | ' |
Weighted average recognition period | '9 months | ' |
Preferred_Stock_Details
Preferred Stock (Details) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 25, 2004 | Dec. 31, 2013 | Mar. 25, 2004 | Mar. 25, 2004 | Mar. 28, 2005 | Dec. 31, 2013 | Mar. 28, 2005 | Mar. 28, 2005 | Mar. 28, 2005 | Mar. 28, 2005 | Dec. 02, 2005 | Dec. 31, 2013 | Dec. 02, 2005 | Dec. 02, 2005 | Dec. 02, 2005 | Dec. 02, 2005 | |
5% preferred stock | 5% preferred stock | 5% preferred stock | 5% preferred stock | Series 2 5% preferred stock | Series 2 5% preferred stock | Series 2 5% preferred stock | Series 2 5% preferred stock | Series 2 5% preferred stock | Series 2 5% preferred stock | Series 3 5% preferred stock | Series 3 5% preferred stock | Series 3 5% preferred stock | Series 3 5% preferred stock | Series 3 5% preferred stock | Series 3 5% preferred stock | |||
item | CEO | Director | Minimum | CEO | Director | CFO | Minimum | CEO | Director | CFO | ||||||||
Preferred Stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend rate (as a percent) | ' | ' | 5.00% | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' |
Value of shares issued under private placement | ' | ' | $5,000,000 | ' | ' | ' | $2,700,000 | ' | ' | ' | ' | ' | $1,200,000 | ' | ' | ' | ' | ' |
Shares issued under private placement | ' | ' | 1,000,000 | ' | 140,000 | 60,000 | 1,065,200 | ' | ' | 260,000 | 60,000 | 100,000 | 564,607 | ' | ' | 123,853 | 27,523 | 68,808 |
Share issued price (in dollars per share) | ' | ' | $5 | ' | ' | ' | $2.50 | ' | ' | ' | ' | ' | $2.18 | ' | ' | ' | ' | ' |
Issuance costs incurred for shares issued | ' | ' | 275,000 | ' | ' | ' | 173,000 | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' |
Shares of common stock issued upon conversion of preferred stock | ' | ' | 1,590,331 | ' | ' | ' | 1,065,200 | ' | ' | ' | ' | ' | 564,607 | ' | ' | ' | ' | ' |
Conversion price per share (in dollars per share) | ' | ' | $3.14 | ' | ' | ' | $2.50 | ' | ' | ' | ' | ' | $2.18 | ' | ' | ' | ' | ' |
Number of votes per share that holders of preferred stock will receive | ' | ' | 1.5903 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liquidation preference value preferred stock price per share | ' | ' | $5 | $1,251 | ' | ' | $2.50 | $1,313 | ' | ' | ' | ' | $2.18 | $881 | ' | ' | ' | ' |
Redemption price per share (in dollars per share) | ' | ' | $5 | ' | ' | ' | ' | ' | $3.25 | ' | ' | ' | ' | ' | $2.83 | ' | ' | ' |
Shares outstanding | ' | ' | ' | 220,000 | ' | ' | ' | 460,000 | ' | ' | ' | ' | ' | 354,000 | ' | ' | ' | ' |
Dividends Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred stock dividends accrued during the period | 151,000 | 152,000 | ' | 55,000 | ' | ' | ' | 57,000 | ' | ' | ' | ' | ' | 39,000 | ' | ' | ' | ' |
Accrued and unpaid dividends | $437,000 | $279,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentrations_Details
Concentrations (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
item | item | |
Concentrations | ' | ' |
Number of areas in which operations are concentrated | 1 | ' |
One individual commercial customer | ' | ' |
Concentrations | ' | ' |
Number of customers | 1 | 1 |
Four government customers | ' | ' |
Concentrations | ' | ' |
Number of customers | 4 | 4 |
Total revenues | Customer | U.S. Government | ' | ' |
Concentrations | ' | ' |
Percentage of revenue | 50.10% | 40.50% |
Total revenues | Customer | One individual commercial customer | ' | ' |
Concentrations | ' | ' |
Percentage of revenue | 30.00% | 57.00% |
Total revenues | Customer | Four government customers | ' | ' |
Concentrations | ' | ' |
Percentage of revenue | 46.00% | 38.20% |
Subsequent_Events_Details
Subsequent Events (Details) (G. Ward Paxton, chief executive officer, Revolving promissory note, USD $) | Dec. 31, 2013 | Feb. 07, 2013 | Feb. 06, 2014 |
Subsequent event | |||
Subsequent Events | ' | ' | ' |
Maximum borrowing capacity | $2,200,000 | $2,200,000 | $2,200,000 |