Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 15, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | Intrusion Inc | ||
Entity Central Index Key | 736,012 | ||
Trading Symbol | intz | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 12,747,836 | ||
Entity Public Float | $ 2,748 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 64,000 | $ 102,000 |
Accounts receivable | 745,000 | 580,000 |
Inventories, net | 45,000 | 45,000 |
Prepaid expenses | 75,000 | 69,000 |
Total current assets | 929,000 | 796,000 |
Property and Equipment: | ||
Equipment | 1,708,000 | 1,602,000 |
Furniture and fixtures | 43,000 | 43,000 |
Leasehold improvements | 48,000 | 42,000 |
Total property, plant and equipment, gross | 1,799,000 | 1,687,000 |
Accumulated depreciation and amortization | (1,491,000) | (1,201,000) |
Property, plant and equipment, net, total | 308,000 | 486,000 |
Other assets | 40,000 | 43,000 |
TOTAL ASSETS | 1,277,000 | 1,325,000 |
Current Liabilities: | ||
Accounts payable, trade | 205,000 | 220,000 |
Accrued expenses | 691,000 | 620,000 |
Dividends payable | 303,000 | 160,000 |
Obligations under capital lease, current portion | 139,000 | 197,000 |
Deferred revenue | 395,000 | 386,000 |
Total current liabilities | 1,733,000 | 1,583,000 |
Loan payable to officer | 2,885,000 | 1,530,000 |
Obligations under capital lease, noncurrent portion | 61,000 | 139,000 |
Commitments and contingencies | ||
Stockholders’ Deficit: | ||
Common stock | 128,000 | 126,000 |
Common stock held in treasury, at cost—10 shares | (362,000) | (362,000) |
Additional paid-in-capital | 56,595,000 | 56,520,000 |
Accumulated deficit | (61,499,000) | (59,947,000) |
Accumulated other comprehensive loss | (107,000) | (107,000) |
Total stockholders’ deficit | (3,402,000) | (1,927,000) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | 1,277,000 | 1,325,000 |
Series 1 [Member] | ||
Stockholders’ Deficit: | ||
Preferred stock | 707,000 | 707,000 |
Series 2 [Member] | ||
Stockholders’ Deficit: | ||
Preferred stock | 724,000 | 724,000 |
Series 3 [Member] | ||
Stockholders’ Deficit: | ||
Preferred stock | $ 412,000 | $ 412,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 5,000 | 5,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 80,000 | 80,000 |
Common stock, shares issued (in shares) | 12,758 | 12,622 |
Common stock, shares outstanding (in shares) | 12,748 | 12,612 |
Common stock held in treasury, shares (in shares) | 10 | 10 |
Series 1 [Member] | ||
Preferred stock, shares issued (in shares) | 200 | 200 |
Preferred stock, shares outstanding (in shares) | 200 | 200 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,113 | $ 1,063 |
Series 2 [Member] | ||
Preferred stock, shares issued (in shares) | 460 | 460 |
Preferred stock, shares outstanding (in shares) | 460 | 460 |
Preferred stock, liquidation preference (in dollars per share) | $ 1,270 | $ 1,212 |
Series 3 [Member] | ||
Preferred stock, shares issued (in shares) | 289 | 289 |
Preferred stock, shares outstanding (in shares) | 289 | 289 |
Preferred stock, liquidation preference (in dollars per share) | $ 697 | $ 665 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Net product revenue | $ 6,102,000 | $ 6,795,000 |
Net customer support and maintenance revenue | 29,000 | |
Total revenue | 6,102,000 | 6,824,000 |
Cost of product revenue | 2,183,000 | 2,517,000 |
Cost of customer support and maintenance revenue | 13,000 | |
Total cost of revenue | 2,183,000 | 2,530,000 |
Gross profit | 3,919,000 | 4,294,000 |
Operating expenses: | ||
Sales and marketing | 1,637,000 | 1,894,000 |
Research and development | 2,499,000 | 2,315,000 |
General and administrative | 1,190,000 | 1,227,000 |
Operating loss | (1,407,000) | (1,142,000) |
Interest expense, net | (145,000) | (107,000) |
Loss from operations before income taxes | (1,552,000) | (1,249,000) |
Income tax provision | ||
Net loss | (1,552,000) | (1,249,000) |
Preferred stock dividends accrued | (139,000) | (139,000) |
Net loss attributable to common stockholders | $ (1,691,000) | $ (1,388,000) |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.13) | $ (0.11) |
Net loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.13) | $ (0.11) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 12,737 | 12,598 |
Diluted (in shares) | 12,737 | 12,598 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Deficit - USD ($) shares in Thousands | Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance, beginning of year and end of year (in shares) | 949 | 12,471 | |||||
Balance, beginning of year and end of year | $ 1,843,000 | $ 125,000 | $ 56,382,000 | $ (58,698,000) | |||
Total stockholders’ deficit | $ 1,843,000 | $ 125,000 | 56,382,000 | (58,698,000) | |||
Balance, beginning of year (in shares) at Dec. 31, 2014 | 949 | 12,471 | |||||
Conversion of preferred stock to common (in shares) | |||||||
Balance, end of year (in shares) at Dec. 31, 2015 | 949 | 12,622 | (362) | ||||
Balance, beginning of year and end of year at Dec. 31, 2014 | $ 1,843,000 | $ 125,000 | 56,382,000 | (58,698,000) | |||
Conversion of preferred stock to common | |||||||
Balance, end of year at Dec. 31, 2015 | $ 1,843,000 | $ 126,000 | 56,520,000 | (59,947,000) | $ (107,000) | $ (1,927,000) | |
Exercise of stock options (in shares) | 151 | 150 | |||||
Exercise of stock options | $ 1,000 | 66,000 | |||||
Balance, beginning of year and end of year (in shares) | 949 | 12,622 | (362) | ||||
Stock-based compensation | 206,000 | ||||||
Preferred stock dividends declared, net of waived penalties by shareholders | (134,000) | $ (160,000) | |||||
Net loss | (1,249,000) | (1,249,000) | |||||
Balance, beginning of year and end of year | $ 1,843,000 | $ 126,000 | 56,520,000 | (59,947,000) | (107,000) | (1,927,000) | |
Total stockholders’ deficit | $ 1,843,000 | $ 126,000 | 56,520,000 | (59,947,000) | (107,000) | (1,927,000) | |
Balance, beginning of year and end of year (in shares) | 949 | 12,622 | (362) | ||||
Balance, beginning of year and end of year | $ 1,843,000 | $ 126,000 | 56,520,000 | (59,947,000) | (107,000) | (1,927,000) | |
Total stockholders’ deficit | $ 1,843,000 | $ 126,000 | 56,520,000 | (59,947,000) | (107,000) | (1,927,000) | |
Conversion of preferred stock to common (in shares) | |||||||
Balance, end of year (in shares) at Dec. 31, 2016 | 949 | 12,758 | (362) | ||||
Conversion of preferred stock to common | |||||||
Balance, end of year at Dec. 31, 2016 | $ 1,843,000 | $ 128,000 | 56,595,000 | (61,499,000) | (107,000) | $ (3,402,000) | |
Exercise of stock options (in shares) | 136 | 136 | |||||
Exercise of stock options | $ 2,000 | 98,000 | |||||
Balance, beginning of year and end of year (in shares) | 949 | 12,622 | (362) | ||||
Stock-based compensation | 96,000 | ||||||
Preferred stock dividends declared, net of waived penalties by shareholders | (119,000) | $ (139,000) | |||||
Net loss | (1,552,000) | (1,552,000) | |||||
Balance, beginning of year and end of year | $ 1,843,000 | $ 126,000 | 56,520,000 | (59,947,000) | (107,000) | (3,402,000) | |
Total stockholders’ deficit | $ 1,843,000 | $ 126,000 | 56,520,000 | (59,947,000) | (107,000) | (3,402,000) | |
Balance, beginning of year and end of year (in shares) | 949 | 12,758 | (362) | ||||
Balance, beginning of year and end of year | $ 1,843,000 | $ 128,000 | 56,595,000 | (61,499,000) | (107,000) | (3,402,000) | |
Total stockholders’ deficit | $ 1,843,000 | $ 128,000 | $ 56,595,000 | $ (61,499,000) | $ (107,000) | $ (3,402,000) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Activities: | ||
Net loss | $ (1,552,000) | $ (1,249,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 291,000 | 299,000 |
Stock-based compensation | 96,000 | 206,000 |
Penalties and waived penalties on dividends | 20,000 | 6,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (165,000) | 157,000 |
Inventories | (33,000) | |
Prepaid expenses and other assets | (6,000) | 48,000 |
Accounts payable and accrued expenses | 60,000 | (22,000) |
Deferred revenue | 9,000 | (56,000) |
Net cash used in operating activities | (1,244,000) | (638,000) |
Investing Activities: | ||
Purchases of property and equipment | (47,000) | (121,000) |
Financing Activities: | ||
Proceeds from line of credit | 364,000 | |
Payments on line of credit | (364,000) | |
Borrowings on loan from officer | 1,355,000 | |
Principal payments on capital lease equipment | (202,000) | (211,000) |
Proceeds from stock options exercised | 100,000 | 66,000 |
Net cash provided by (used in) financing activities | 1,253,000 | (145,000) |
Net decrease in cash and cash equivalents | (38,000) | (904,000) |
Cash and cash equivalents at beginning of year | 102,000 | 1,006,000 |
Cash and cash equivalents at end of year | 64,000 | 102,000 |
SUPPLEMENTAL CASH FLOW INFORMATION: | ||
Interest paid on leased assets | 14,000 | 24,000 |
Income taxes paid | ||
SUPPLEMENTAL DISCLOSURE OF NON CASH FINANCING ACTIVITIES: | ||
Preferred stock dividends accrued | 139,000 | 160,000 |
Purchase of equipment through capital lease | $ 66,000 | $ 273,000 |
Note 1. Description of Business
Note 1. Description of Business | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Nature of Operations [Text Block] | 1. We develop, market, and support a family of entity identification, data mining, regulated information compliance and data privacy protection. Our product families include: TraceCop for identity identification, Savant for data mining and advanced persistent threat detection and Compliance Commander for regulated information and data privacy protection. 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 October 1995. 15 April 17, 2000, June 1, 2000, November 1, 2001, Our principal executive offices are located at 1101 200, 75081, (972) 234 6400. References to the “Company”, “we”, “us”, “our”, “Intrusion” or “Intrusion Inc.” refer to Intrusion Inc. and its subsidiaries. Compliance Commander™ and TraceCop™ are registered trademarks of Intrusion Inc. As of December 31, 2016, $64,000, $102,000 December 31, 2015. $1,552,000 December 31, 2016 $1,249,000 December 31, 2015. February 9, 2017, , $515,000 $3.4 March 31, 2018. may may may |
Note 2 - Summary of significant
Note 2 - Summary of significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 2. 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 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 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. 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. There was no December 31, 2016 2015 . 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 first December 31, 2016 2015 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 5 2 5 $291,000 $299,000 December 31, 2016 2015, 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 December 31, 2016 2015, 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 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. 718 Stock-based compensation expense recognized in the statements of operations for the years ended 2016 2015 718 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, 2016 2015, 201 6 2015 Weighted average grant date fair value $ 0.28 $ 1.94 Weighted average assumptions used: Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 1.64 % 1.51 % Expected volatility 110.24 % 229.24 % Expected life (in years) 5.00 5.00 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 Loss Per Share We report two December 31, 2016 2015 December 31, 2016 2015 3,509,241 3,765,959, 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 first thirty We recognize software revenue from the licensing of our software products in accordance with FASB ASC Topic 605 four may may one 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 45 one 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 Intangibles—Goodwill and Other 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. Loans payable to officer are with a related party and as a result do not bear market rates of interest. Capital leases approximate fair value as they bear market rates of interest. Management believes based on its current financial position that it could not obtain comparable amounts of third Income Taxes Deferred income taxes are determined using the liability method in accordance with FASB ASC 740, Accounting for Income Taxes FASB ASC 740 740 We file income tax returns in the United States federal jurisdiction. At December 31, 2016, December 31, 2013 December 31, 2015 not December 31, 2016 2015 . Recent Accounting Pronouncements Revenue Recognition In May 2014, 2014 09, 2014 09), 2014 09 2014 09 five may 2018, 2014 09 2014 09 2018. In November 2015, 2015 17, 740): first 2017. In February 2016, 2016 02, Leases (Topic 842) 2016 02), first 2019 In March 2016, 2016 09”). December 15, 2016, In August 2014, one December 15, 2016, or cash flows and we have updated our disclosures as necessary based on this guidance. |
Note 3 - Balance Sheet Detail (
Note 3 - Balance Sheet Detail (in Thousands) | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 3. Accrued Expenses December 31, 201 6 201 5 Accrued payroll $ 134 $ 132 Accrued vacation 279 281 Rent payable 13 51 Accrued interest, related party 184 76 Other 81 80 $ 691 $ 620 |
Note 4 - Commitments and Contin
Note 4 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 4. Leases We lease office space for our corporate headquarters in Richardson, Texas under an operating lease, the base term of which expires in April 2021. two one two 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 $415,000 $384,000 December 31, 2016 2015, Future minimum rental payments under these leases as of December 31, 2016 Year ending December 31, Minimum 2017 $ 295 2018 2,736 2019 and thereafter 622 $ 1,190 We have other capital lease obligations that consist primarily of computer equipment. Future minimum payments under these leases as of December 31, 2016 Year ending December 31, Capital Lease 2017 $ 145 2018 45 2019 17 2020 and thereafter — 207 Less amounts representing interest (7 ) $ 200 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 effect 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, 2016 . |
Note 5 - Employee Benefit Plan
Note 5 - Employee Benefit Plan | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 5. Employee 401(k) We have a plan known as the Intrusion Inc. 401(k) 401(k) Employees may 1% 25% 50 may $0.25 $1.00 first 4% $32,000 $31,000, December 31, 2016 2015 . |
Note 6 - Line of Credit
Note 6 - Line of Credit | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6. On March 29, 2006, $1.0 “2006 June 30, 2008, 2006 $2.5 “2008 June 23, 2015, $0.625 June 21, 2016, Due to increasing fees associated with the Line of Credit, we chose not to renew the loan agreement on the termination date. We replaced the line with an increased commitment under the CEO Note (Note 7 |
Note 7 - Loan Payable to Office
Note 7 - Loan Payable to Officer | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 7. On February 4, 2016, $2,200,000 may $2,200,000 March 2018. On September 30, 2016, $2,700,000 March 2018. On February 9, 2017, $3,400,000 March 2019. Amounts borrowed under the CEO Note officer accrue interest at a floating rate per annum equal to Silicon Valley Bank’s (“SVB”) prime rate plus 1% (5% September 30, 2016). March 31, 2019. December 31, 2016, $2,885,000 $184,000. |
Note 8 - Income Taxes
Note 8 - Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8. 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, 2016 2015 December 31 201 6 201 5 Net operating loss carryforwards $ 32,644 $ 31,777 Net operating loss carryforwards of foreign subsidiaries 374 374 Book over tax depreciation (48 ) (62 ) Stock-based compensation expense 38 25 Other 124 128 Deferred tax assets 33,132 32,242 Valuation allowance for deferred tax assets (33,132 ) (32,242 ) 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 2016 2015. The differences between the provision for income taxes and income taxes computed using the federal statutory rate for the years ended December 31, 2016 2015 2016 2015 Reconciliation of income tax benefit to statutory rate: Income benefit at statutory rate $ (528 ) $ (425 ) State income taxes (benefit), net of federal income tax benefit (40 ) (28 ) RTP (ISO expense) 38 116 Permanent differences 28 65 Change in valuation allowance 890 (316 ) Change in state tax rate (345 ) 577 Other (43 ) 11 $ — $ — At December 31, 2016, $88.0 2022 382. $6 2017. |
Note 9 - Stock Options
Note 9 - Stock Options | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 9. At December 31, 2016, two On March 17, 2005, 2005 “2005 June 14, 2005. 2005 750,000 2005 May 30, 2007, 2005 750,000 1,500,000 may 2005 May 29, 2008 May 21, 2009, 500,000 may 2005 2,500,000 May 20, 2010, 500,000 may 2005 3,000,000 May 19, 2011, 400,000 may 2005 3,400,000 May 17, 2012, 300,000 may 2005 3,700,000 December 31, 2015, 768,835 2,185,167 shares of common stock were outstanding. A total of 3,892,000 2005 937,998 2005 December 31, 2015 On March 19, 2015, 2015 “2015 May 14, 2015. 2015 2005 June 14, 2015. 2015 2005 2005 2005 2015 600,000 2015 The 2015 three 10,000 three (3) 8,000 three December 31, 2016, no 69,000 72,000 2015 3,000 , and options for 531 ,000 No 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 3,852,609 December 31, 2016 (In thousands) Common Shares Preferred Stock 1,067 2015 Plan 600 2005 Plan 2,185 Total 3,852 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 five may 110% 10% ten (five 10% Stock Incentive Plan Summary A summary of our stock option activity and related information for the years ended December 31, 2016 2015 2016 2015 Number of Weighted Number of Weighted Outstanding at beginning of year 2,598 $ 0.63 3,076 $ 0.86 Granted at price = market value 69 0.36 43 2.13 Granted at price > market value — — — — Exercised (136 ) 0.73 (150 ) 0.44 Forfeited (18 ) 1.80 (10 ) 1.36 Expired (259 ) 0.35 (361 ) 2.77 Outstanding at end of year 2,254 $ 0.64 2,598 $ 0.63 Options exercisable at end of year 2,079 $ 0.59 2,287 $ 0.51 Stock Options Outstanding and Exercisable Information related to stock options outstanding at December 31, 2016, Options Outstanding Options Exercisable Range of Exercise Prices Outstanding at (in Weighted Weighted Exercisable at 6 (in Weighted $0.20 - $0.50 1,296 2.56 $ 0.34 1,228 $ 0.34 $0.51 - $1.00 661 2.95 $ 0.67 661 $ 0.67 $1.01 - $2.73 297 5.62 $ 1.91 190 $ 1.89 2,254 3.07 $ 0.64 2,079 $ 0.59 Summarized information about outstanding stock options as of December 31, 2016, Outstanding Stock Options that are As of December 31, 201 6 Number of outstanding options (in thousands) 2,254 2,079 Weighted average remaining contractual life 3.07 2.69 Weighted average exercise price per share $ 0.64 $ 0.59 Intrinsic value (in thousands) $ 121 $ 116 * Includes effects of expected forfeitures As of December 31, 2016, $37 .84 |
Note 10 - Preferred Stock
Note 10 - Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Preferred Stock [Text Block] | 10. 5% On March 25, 2004, $5.0 5% 1,000,000 5% $5.00 $5.0 $275,000 5% 1,590,331 $3.144 5% 140,000 60,000 The 5% 5% March September September 2004. 5% 1.5903 5% $5.00 5% All warrants previously issued to 5% We have the right to redeem any or all of the outstanding 5% $5.00 At December 31, 2016, 200,000 1 318,065 Series 2 5% On March 28, 2005, $2.7 2 5% 1,065,200 $2.50 $2.7 $173,000 2 5% 1,065,200 $2.50 2 5% 260,000 100,000 60,000 The 5% 2 5% first March, June, September December June 2005. $2.50 2 5% 5% 2 5% All warrants previously issued to Series 2 5% Holders of Series 2 5% (1) $3.25 $2.50 (2) 2 5% (3) 2 5% At December 31, 2016 460,000 2 460,000 Series 3 5% On December 2, 2005, $1.2 3 5% 564,607 $2.18 $1.2 $100,000 3 5% 564,607 $2.18 3 5% 123,853 68,808 27,523 The 5% 3 5% first March, June, September December March 1, 2006. $2.18 3 5% 5% 2 5% 3 5% All warrants previously issued to Series 3 5% Holders of Series 3 5% (1) $2.834 $2.18 (2) 3 5% (3) 3 5% At December 31, 2016 289,377 3 289,377 Dividends Payable During the fiscal year ended December 31, 2016, $50,000 5% $58,000 2 5% $31,000 3 5% December 31, 2016 2015, $303,000 $160,000 may December 31, 2014. |
Note 11 - Concentrations
Note 11 - Concentrations | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 11. Our operations are concentrated in one 69.3% 2016 54.7% 2015. 2016 49.7% three 2015 43.9% three 2016 2015 30% |
Note 12 - Subsequent Event
Note 12 - Subsequent Event | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 12. On February 9, 2017, $3,400,000 may $3,400,000 March 2019 . |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | 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, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and all highly liquid investments purchased with an original maturity of less than three |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | 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 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. |
Trade and Other Accounts Receivable, Policy [Policy Text Block] | 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. There was no allowance at December 31, 2016 2015 . |
Inventory, Policy [Policy Text Block] | 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 first December 31, 2016 2015 |
Property, Plant and Equipment, Policy [Policy Text Block] | 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 5 2 5 $291,000 $299,000 December 31, 2016 2015, |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | 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 December 31, 2016 2015, |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | 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 loss and were not significant. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Accounting for Stock Options We account for stock options using the guidance in Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) Topic 718. 718 Stock-based compensation expense recognized in the statements of operations for the years ended 2016 2015 718 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, 2016 2015, 201 6 2015 Weighted average grant date fair value $ 0.28 $ 1.94 Weighted average assumptions used: Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 1.64 % 1.51 % Expected volatility 110.24 % 229.24 % Expected life (in years) 5.00 5.00 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. |
Earnings Per Share, Policy [Policy Text Block] | Net Loss Per Share We report two December 31, 2016 2015 December 31, 2016 2015 3,509,241 3,765,959, |
Revenue Recognition, Policy [Policy Text Block] | 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 first thirty We recognize software revenue from the licensing of our software products in accordance with FASB ASC Topic 605 four may may one 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 45 one 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 Expense, Policy [Policy Text Block] | 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 Intangibles—Goodwill and Other |
Use of Estimates, Policy [Policy Text Block] | 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, Policy [Policy Text Block] | 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. Loans payable to officer are with a related party and as a result do not bear market rates of interest. Capital leases approximate fair value as they bear market rates of interest. Management believes based on its current financial position that it could not obtain comparable amounts of third |
Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income taxes are determined using the liability method in accordance with FASB ASC 740, Accounting for Income Taxes FASB ASC 740 740 We file income tax returns in the United States federal jurisdiction. At December 31, 2016, December 31, 2013 December 31, 2015 December 31, 2016 2015 . |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements Revenue Recognition In May 2014, 2014 09, 2014 09), 2014 09 2014 09 five may 2018, 2014 09 2014 09 2018. In November 2015, 2015 17, 740): first 2017. In February 2016, 2016 02, Leases (Topic 842) 2016 02), first 2019 In March 2016, 2016 09”). December 15, 2016, In August 2014, one December 15, 2016, or cash flows and we have updated our disclosures as necessary based on this guidance. |
Note 2 - Summary of significa20
Note 2 - Summary of significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 201 6 2015 Weighted average grant date fair value $ 0.28 $ 1.94 Weighted average assumptions used: Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 1.64 % 1.51 % Expected volatility 110.24 % 229.24 % Expected life (in years) 5.00 5.00 |
Note 3 - Balance Sheet Detail21
Note 3 - Balance Sheet Detail (in Thousands) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | December 31, 201 6 201 5 Accrued payroll $ 134 $ 132 Accrued vacation 279 281 Rent payable 13 51 Accrued interest, related party 184 76 Other 81 80 $ 691 $ 620 |
Note 4 - Commitments and Cont22
Note 4 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Year ending December 31, Minimum 2017 $ 295 2018 2,736 2019 and thereafter 622 $ 1,190 |
Schedule of Future Minimum Lease Payments for Capital Leases [Table Text Block] | Year ending December 31, Capital Lease 2017 $ 145 2018 45 2019 17 2020 and thereafter — 207 Less amounts representing interest (7 ) $ 200 |
Note 8 - Income Taxes (Tables)
Note 8 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31 201 6 201 5 Net operating loss carryforwards $ 32,644 $ 31,777 Net operating loss carryforwards of foreign subsidiaries 374 374 Book over tax depreciation (48 ) (62 ) Stock-based compensation expense 38 25 Other 124 128 Deferred tax assets 33,132 32,242 Valuation allowance for deferred tax assets (33,132 ) (32,242 ) Deferred tax assets, net of allowance $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2016 2015 Reconciliation of income tax benefit to statutory rate: Income benefit at statutory rate $ (528 ) $ (425 ) State income taxes (benefit), net of federal income tax benefit (40 ) (28 ) RTP (ISO expense) 38 116 Permanent differences 28 65 Change in valuation allowance 890 (316 ) Change in state tax rate (345 ) 577 Other (43 ) 11 $ — $ — |
Note 9 - Stock Options (Tables)
Note 9 - Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Common Shares Reserved for Future Issuance [Table text Block] | (In thousands) Common Shares Preferred Stock 1,067 2015 Plan 600 2005 Plan 2,185 Total 3,852 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 2016 2015 Number of Weighted Number of Weighted Outstanding at beginning of year 2,598 $ 0.63 3,076 $ 0.86 Granted at price = market value 69 0.36 43 2.13 Granted at price > market value — — — — Exercised (136 ) 0.73 (150 ) 0.44 Forfeited (18 ) 1.80 (10 ) 1.36 Expired (259 ) 0.35 (361 ) 2.77 Outstanding at end of year 2,254 $ 0.64 2,598 $ 0.63 Options exercisable at end of year 2,079 $ 0.59 2,287 $ 0.51 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Options Exercisable Range of Exercise Prices Outstanding at (in Weighted Weighted Exercisable at 6 (in Weighted $0.20 - $0.50 1,296 2.56 $ 0.34 1,228 $ 0.34 $0.51 - $1.00 661 2.95 $ 0.67 661 $ 0.67 $1.01 - $2.73 297 5.62 $ 1.91 190 $ 1.89 2,254 3.07 $ 0.64 2,079 $ 0.59 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Outstanding Stock Options that are As of December 31, 201 6 Number of outstanding options (in thousands) 2,254 2,079 Weighted average remaining contractual life 3.07 2.69 Weighted average exercise price per share $ 0.64 $ 0.59 Intrinsic value (in thousands) $ 121 $ 116 |
Note 1. Description of Busine25
Note 1. Description of Business (Details Textual) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Feb. 09, 2017 | Sep. 30, 2016 | Feb. 04, 2016 | Dec. 31, 2014 | |
Minimum Number of Years During Which Local Area Networking Equipment is Provided | 15 years | |||||
Cash and Cash Equivalents, at Carrying Value | $ 64,000 | $ 102,000 | $ 1,006,000 | |||
Net Income (Loss) Attributable to Parent | $ (1,552,000) | $ (1,249,000) | ||||
Revolving Credit Facility [Member] | Chief Executive Officer [Member] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,700,000 | $ 2,200,000 | ||||
Revolving Credit Facility [Member] | Chief Executive Officer [Member] | Subsequent Event [Member] | ||||||
Line of Credit Facility, Current Borrowing Capacity | $ 515,000 | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,400,000 |
Note 2 - Summary of significa26
Note 2 - Summary of significant Accounting Policies (Details Textual) | 12 Months Ended | |
Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares | |
Number of Major United States Financial Institutions | 2 | |
Depreciation, Depletion and Amortization | $ 291,000 | $ 299,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 3,509,241 | 3,765,959 |
Period During Which Customer May Return Product Under Very Limited Circumstances | 30 days | |
Maintenance and Support Revenue, Recognition Period | 1 year | |
Period of Payment Terms Offered to Customers Distributions and Resellers Domestically | 30 days | |
Period of Payment Terms Offered to Customers Distributors and Resllers Internationally | 45 days | |
Period for Which Payment Terms can be Offered, Maximum | 1 year | |
Allowance for Doubtful Accounts Receivable | $ 0 | $ 0 |
Income Tax Examination, Penalties and Interest Accrued | $ 0 | $ 0 |
Equipment and Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 1 year | |
Equipment and Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment, Useful Life | 2 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment, Useful Life | 5 years |
Note 2 - Summary of Significa27
Note 2 - Summary of Significant Accounting Policies - Valuation Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average grant date fair value (in dollars per share) | $ 0.28 | $ 1.94 |
Weighted average assumptions used: | ||
Expected dividend yield | 0.00% | 0.00% |
Risk-free interest rate | 1.64% | 1.51% |
Expected volatility | 110.24% | 229.24% |
Expected life (in years) (Year) | 5 years | 5 years |
Note 3 - Balance Sheet Detail28
Note 3 - Balance Sheet Detail (in Thousands) - Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accrued payroll | $ 134 | $ 132 |
Accrued vacation | 279 | 281 |
Rent payable | 13 | 51 |
Accrued interest, related party | 184 | 76 |
Other | 81 | 80 |
Total accrued expenses | $ 691 | $ 620 |
Note 4 - Commitments and Cont29
Note 4 - Commitments and Contingencies (Details Textual) | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of Operating Leases | 2 | |
Operating Leases, Rent Expense, Net | $ 415,000 | $ 384,000 |
Minimum [Member] | ||
Lessor Leasing Arrangements, Operating Leases, Renewal Term | 1 year | |
Maximum [Member] | ||
Lessor Leasing Arrangements, Operating Leases, Renewal Term | 2 years |
Note 4 - Commitments and Cont30
Note 4 - Commitments and Contingencies - Future Minimum Payments for Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 295 |
2,018 | 2,736 |
2019 and thereafter | 622 |
Future minimum operating lease obligations | $ 1,190 |
Note 4 - Commitments and Cont31
Note 4 - Commitments and Contingencies - Future Minimum Payments for Capital Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 145 |
2,018 | 45 |
2,019 | 17 |
2020 and thereafter | |
Capital lease obligations, total | 207 |
Less amounts representing interest | (7) |
Future minimum capital lease obligations | $ 200 |
Note 5 - Employee Benefit Plan
Note 5 - Employee Benefit Plan (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan, Minimum age Required for Contribution of Additional Amount of Salary Per Year | 50 years | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 0.25% | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4.00% | |
Defined Contribution Plan, Cost Recognized | $ 32,000 | $ 31,000 |
Minimum [Member] | ||
Define Contribution Plan, Percentage of Contribution by Employees | 1.00% | |
Maximum [Member] | ||
Define Contribution Plan, Percentage of Contribution by Employees | 25.00% |
Note 6 - Line of Credit (Detail
Note 6 - Line of Credit (Details Textual) - Silicon Valley Bank [Member] - USD ($) $ in Thousands | Jun. 23, 2015 | Jun. 30, 2008 | Mar. 29, 2006 |
Credit Line, 2006 [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,000 | ||
Credit Line, 2008 [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,500 | ||
Line of Credit [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 625 |
Note 7 - Loan Payable to Offi34
Note 7 - Loan Payable to Officer (Details Textual) - USD ($) | 9 Months Ended | ||||
Sep. 30, 2016 | Feb. 09, 2017 | Dec. 31, 2016 | Feb. 04, 2016 | Dec. 31, 2015 | |
Interest Payable, Current | $ 184,000 | $ 76,000 | |||
Revolving Credit Facility [Member] | Chief Executive Officer [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,700,000 | $ 2,200,000 | |||
Line of Credit Facility, Interest Rate at Period End | 5.00% | ||||
Long-term Line of Credit | 2,885,000 | ||||
Interest Payable, Current | $ 184,000 | ||||
Revolving Credit Facility [Member] | Chief Executive Officer [Member] | Prime Rate [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | ||||
Revolving Credit Facility [Member] | Chief Executive Officer [Member] | Subsequent Event [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,400,000 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) $ in Millions | Dec. 31, 2016USD ($) |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards | $ 88 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards | $ 6 |
Note 8 - Income Taxes - Deferre
Note 8 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Net operating loss carryforwards | $ 32,644 | $ 31,777 |
Net operating loss carryforwards of foreign subsidiaries | 374 | 374 |
Book over tax depreciation | (48) | (62) |
Stock-based compensation expense | 38 | 25 |
Other | 124 | 128 |
Deferred tax assets | 33,132 | 32,242 |
Valuation allowance for deferred tax assets | (33,132) | (32,242) |
Deferred tax assets, net of allowance |
Note 8 - Income Taxes - Income
Note 8 - Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of income tax benefit to statutory rate: | ||
Income benefit at statutory rate | $ (528) | $ (425) |
State income taxes (benefit), net of federal income tax benefit | (40) | (28) |
RTP (ISO expense) | 38 | 116 |
Permanent differences | 28 | 65 |
Change in valuation allowance | 890 | (316) |
Change in state tax rate | (345) | 577 |
Other | $ (43) | $ 11 |
Note 9 - Stock Options (Details
Note 9 - Stock Options (Details Textual) $ in Thousands | May 17, 2012shares | May 19, 2011shares | May 20, 2010shares | May 21, 2009shares | May 29, 2008shares | May 30, 2007shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015shares | Mar. 19, 2015shares | Dec. 31, 2014shares |
Number of Stock-based Compensation Plans | 2 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,254,000 | 2,598,000 | 3,076,000 | |||||||
Common Stock, Capital Shares Reserved for Future Issuance | 3,852,609 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Exercisable Period 1 | 1 year | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Exercisable Period 2 | 3 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Exercisable Period 3 | 5 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||||||||
Share-based Compensation Arrangements By Share-based Payment Award, Options Expiration Term For Options Granted To Holders Of More Than Specified Percentage Of Voting Stock | 5 years | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | $ 37 | |||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 306 days | |||||||||
Maximum [Member] | ||||||||||
Share-based Compensation Arrangement By Share-based Payment Award Of Exercise Price Of Common Stock Percentage In Case Of Optionees Holding More Than Specified Percentage Of Voting Stock | 110.00% | |||||||||
Minimum [Member] | ||||||||||
Share-based Compensation Arrangement By Share-based Payment Award Voting Stock Percentage To Be Held By Optionees | 10.00% | |||||||||
The 2005 Stock Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,700,000 | 3,400,000 | 3,000,000 | 2,500,000 | 1,500,000 | 750,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | 300,000 | 400,000 | 500,000 | 500,000 | 500,000 | 750,000 | ||||
Aggregate Stock Options Exercised for the Plan | 768,835 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,185,167 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants Aggregate | 3,892,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Forfeitures Aggregate | 937,998 | |||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 2,185,000 | |||||||||
The 2015 Stock Incentive Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 531,000 | 600,000 | ||||||||
Aggregate Stock Options Exercised for the Plan | 0 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 69,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants Aggregate | 72,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options Forfeitures Aggregate | 3,000 | |||||||||
Number of Equity Incentive Programs | 3 | |||||||||
Common Stock, Capital Shares Reserved for Future Issuance | 600,000 | |||||||||
Stock Issued During Period, Shares, Share-based Compensation, Gross | 0 | |||||||||
The 2015 Stock Incentive Plan [Member] | Non-employee Board Member [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options That Will Be Granted Upon Initial Election Or Appointment to Board | 10,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Preceding Period With in Which Individual Should Not Be Employed | 3 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Option That Will Be Granted to Purchase Shares On Date of Each Annual Stockholders Meeting | 8,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Period for Which Individual Should Serve As Member of Non Employee Board | 3 years |
Note 9 - Stock Options - Common
Note 9 - Stock Options - Common Shares Reserved for Future Issuance (Details) | Dec. 31, 2016shares |
Common shares reserved for future issuance (in shares) | 3,852,609 |
The 2015 Stock Incentive Plan [Member] | |
Common shares reserved for future issuance (in shares) | 600,000 |
The 2005 Stock Incentive Plan [Member] | |
Common shares reserved for future issuance (in shares) | 2,185,000 |
Preferred Stock [Member] | |
Common shares reserved for future issuance (in shares) | 1,067,000 |
Note 9 - Stock Options - Number
Note 9 - Stock Options - Number & Weighted Average Exercise Price (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Outstanding at beginning of year (in shares) | 2,598 | 3,076 |
Outstanding at beginning of year (in dollars per share) | $ 0.63 | $ 0.86 |
Granted at price = market value (in shares) | 69 | 43 |
Granted at price = market value (in dollars per share) | $ 0.36 | $ 2.13 |
Granted at price > market value (in shares) | ||
Granted at price > market value (in dollars per share) | ||
Exercised (in shares) | (136) | (150) |
Exercised (in dollars per share) | $ 0.73 | $ 0.44 |
Forfeited (in shares) | (18) | (10) |
Forfeited (in dollars per share) | $ 1.80 | $ 1.36 |
Expired (in shares) | (259) | (361) |
Expired (in dollars per share) | $ 0.35 | $ 2.77 |
Outstanding at end of year (in shares) | 2,254 | 2,598 |
Outstanding at end of year (in dollars per share) | $ 0.64 | $ 0.63 |
Options exercisable at end of year (in shares) | 2,079 | 2,287 |
Options exercisable at end of year (in dollars per share) | $ 0.59 | $ 0.51 |
Note 9 - Stock Options - Exerci
Note 9 - Stock Options - Exercise Price (Details) shares in Thousands | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Outstanding at the end of the period (in shares) | shares | 2,254 |
Options outstanding weighted average remaining contractual life (Year) | 3 years 25 days |
Options outstanding weighted average exercise price (in dollars per share) | $ 0.64 |
Options exercisable (in shares) | shares | 2,079 |
Options exercisable weighted average exercise price (in dollars per share) | $ 0.59 |
Range 1 [Member] | |
Exercise price, low end of range (in dollars per share) | 0.20 |
Exercise price, high end of range (in dollars per share) | $ 0.50 |
Outstanding at the end of the period (in shares) | shares | 1,296 |
Options outstanding weighted average remaining contractual life (Year) | 2 years 204 days |
Options outstanding weighted average exercise price (in dollars per share) | $ 0.34 |
Options exercisable (in shares) | shares | 1,228 |
Options exercisable weighted average exercise price (in dollars per share) | $ 0.34 |
Range 2 [Member] | |
Exercise price, low end of range (in dollars per share) | 0.51 |
Exercise price, high end of range (in dollars per share) | $ 1 |
Outstanding at the end of the period (in shares) | shares | 661 |
Options outstanding weighted average remaining contractual life (Year) | 2 years 346 days |
Options outstanding weighted average exercise price (in dollars per share) | $ 0.67 |
Options exercisable (in shares) | shares | 661 |
Options exercisable weighted average exercise price (in dollars per share) | $ 0.67 |
Range 3 [Member] | |
Exercise price, low end of range (in dollars per share) | 1.01 |
Exercise price, high end of range (in dollars per share) | $ 2.73 |
Outstanding at the end of the period (in shares) | shares | 297 |
Options outstanding weighted average remaining contractual life (Year) | 5 years 226 days |
Options outstanding weighted average exercise price (in dollars per share) | $ 1.91 |
Options exercisable (in shares) | shares | 190 |
Options exercisable weighted average exercise price (in dollars per share) | $ 1.89 |
Note 9 - Stock Options - Outsta
Note 9 - Stock Options - Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Number of outstanding options (in thousands) (in shares) | 2,254 | |
Number of outstanding options (in thousands) (in shares) | 2,079 | 2,287 |
Weighted average remaining contractual life (Year) | 3 years 25 days | |
Weighted average remaining contractual life (Year) | 2 years 251 days | |
Weighted average exercise price per share (in dollars per share) | $ 0.64 | |
Weighted average exercise price per share (in dollars per share) | $ 0.59 | $ 0.51 |
Intrinsic value (in thousands) | $ 121 | |
Intrinsic value (in thousands) | $ 116 |
Note 10 - Preferred Stock (Deta
Note 10 - Preferred Stock (Details Textual) | Dec. 02, 2005USD ($)$ / sharesshares | Mar. 28, 2005USD ($)$ / sharesshares | Mar. 25, 2004USD ($)$ / sharesshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) |
Preferred Stock Dividends, Income Statement Impact | $ | $ 139,000 | $ 139,000 | |||
Dividends Payable, Current | $ | 303,000 | 160,000 | |||
Other Current Liabilities [Member] | |||||
Dividends Payable, Current | $ | $ 303,000 | $ 160,000 | |||
Series A Preferred Stock [Member] | |||||
Stock Issued During Period, Value, New Issues | $ | $ 5,000,000 | ||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||||
Stock Issued During Period, Shares, New Issues | 1,000,000 | ||||
Share Price | $ / shares | $ 5 | ||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ | $ 5,000,000 | ||||
Preferred Stock Issuance Costs | $ | $ 275,000 | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 1,590,331 | 318,065 | |||
Preferred Stock, Conversion Price Per Share | $ / shares | $ 3.144 | ||||
Preferred Stock, Voting Rights Number | 1.5903 | ||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 5 | ||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 5 | ||||
Preferred Stock, Shares Outstanding | 200,000 | ||||
Preferred Stock Dividends, Income Statement Impact | $ | $ 50,000 | ||||
Series A Preferred Stock [Member] | Chief Executive Officer [Member] | |||||
Stock Issued During Period, Shares, New Issues | 140,000 | ||||
Series A Preferred Stock [Member] | Director [Member] | |||||
Stock Issued During Period, Shares, New Issues | 60,000 | ||||
Series B Preferred Stock [Member] | |||||
Stock Issued During Period, Value, New Issues | $ | $ 2,700,000 | ||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||||
Stock Issued During Period, Shares, New Issues | 1,065,200 | ||||
Share Price | $ / shares | $ 2.50 | ||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ | $ 2,700,000 | ||||
Preferred Stock Issuance Costs | $ | $ 173,000 | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 1,065,200 | 460,000 | |||
Preferred Stock, Conversion Price Per Share | $ / shares | $ 2.50 | ||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | 2.50 | ||||
Preferred Stock, Shares Outstanding | 460,000 | ||||
Preferred Stock Dividends, Income Statement Impact | $ | $ 58,000 | ||||
Series B Preferred Stock [Member] | Minimum [Member] | |||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 3.25 | ||||
Series B Preferred Stock [Member] | Chief Executive Officer [Member] | |||||
Stock Issued During Period, Shares, New Issues | 260,000 | ||||
Series B Preferred Stock [Member] | Director [Member] | |||||
Stock Issued During Period, Shares, New Issues | 60,000 | ||||
Series B Preferred Stock [Member] | Chief Financial Officer [Member] | |||||
Stock Issued During Period, Shares, New Issues | 100,000 | ||||
Series C Preferred Stock [Member] | |||||
Stock Issued During Period, Value, New Issues | $ | $ 1,200,000 | ||||
Preferred Stock, Dividend Rate, Percentage | 5.00% | ||||
Stock Issued During Period, Shares, New Issues | 564,607 | ||||
Share Price | $ / shares | $ 2.18 | ||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ | $ 1,200,000 | ||||
Preferred Stock Issuance Costs | $ | $ 100,000 | ||||
Convertible Preferred Stock, Shares Issued upon Conversion | 564,607 | 289,377 | |||
Preferred Stock, Conversion Price Per Share | $ / shares | $ 2.18 | ||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | 2.18 | ||||
Preferred Stock, Shares Outstanding | 289,377 | ||||
Preferred Stock Dividends, Income Statement Impact | $ | $ 31,000 | ||||
Series C Preferred Stock [Member] | Minimum [Member] | |||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 2.834 | ||||
Series C Preferred Stock [Member] | Chief Executive Officer [Member] | |||||
Stock Issued During Period, Shares, New Issues | 123,853 | ||||
Series C Preferred Stock [Member] | Director [Member] | |||||
Stock Issued During Period, Shares, New Issues | 27,523 | ||||
Series C Preferred Stock [Member] | Chief Financial Officer [Member] | |||||
Stock Issued During Period, Shares, New Issues | 68,808 |
Note 11 - Concentrations (Detai
Note 11 - Concentrations (Details Textual) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Number of Areas in Which Operations are Concentrated | 1 | |
Concentration Risk, Threshold Percentage | 30.00% | |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | U.S. Government [Member] | ||
Concentration Risk, Percentage | 69.30% | 54.70% |
Customer Concentration Risk [Member] | Sales Revenue, Net [Member] | Government Customers [Member] | ||
Concentration Risk, Percentage | 49.70% | 43.90% |
Number of Major Customers | 3 | 3 |
Note 12 - Subsequent Event (Det
Note 12 - Subsequent Event (Details Textual) - Revolving Credit Facility [Member] - Chief Executive Officer [Member] - USD ($) | Feb. 09, 2017 | Sep. 30, 2016 | Feb. 04, 2016 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,700,000 | $ 2,200,000 | |
Subsequent Event [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,400,000 |