Micron Solutions (MICRD) 10-Q 12 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information Document	9 Months Ended
	Sep. 30, 2014	Nov. 12, 2014
Document Information [Line Items]	'	'
Entity Registrant Name	'Arrhythmia Research Technology Inc /DE/	'
Entity Central Index Key	'0000819689	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q3	'
Amendment Flag	'false	'
Entity Common Stock, Shares Outstanding	'	2,757,339

Consolidated_Balance_Sheets_un

Consolidated Balance Sheets (unaudited) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets:	'	'
Cash and cash equivalents	$329,240	$749,766
Restricted cash	0	1,000,000
Trade accounts receivable, net of allowance for doubtful accounts of $50,000 at September 30, 2014 and $40,000 at December 31, 2013	3,709,782	3,803,853
Inventories, net	3,144,105	2,335,291
Prepaid expenses and other current assets	647,957	513,197
Assets from discontinued operations	0	1,509
Total current assets	7,831,084	8,403,616
Property, plant and equipment, net	7,569,024	7,579,556
Intangible assets, net	121,063	184,517
Other assets	104,841	185,595
Total assets	15,626,012	16,353,284
Current liabilities:	'	'
Revolving line of credit	2,046,495	0
Equipment line of credit, current portion	0	85,387
Term notes payable, current portion	485,027	335,760
Accounts payable	2,234,735	2,156,031
Accrued expenses & other current liabilities	713,225	436,775
Customer deposits	525,607	341,465
Deferred revenue, current	187,792	248,559
Performance guarantee liability	0	1,000,000
Liabilities from discontinued operations, current	320,056	319,787
Total current liabilities	6,512,937	4,923,764
Long-term liabilities:	'	'
Revolving line of credit	0	2,774,495
Equipment line of credit, non-current portion	0	538,707
Term notes payable, non-current portion	1,455,066	1,179,709
Subordinated promissory notes	438,531	417,769
Deferred revenue, non-current	91,824	172,316
Total long-term liabilities	1,985,421	5,082,996
Total liabilities	8,498,358	10,006,760
Commitments and Contingencies	'	'
Shareholders' equity:	'	'
Preferred stock, $1 par value; 2,000,000 shares authorized, none issued	0	0
Common stock, $.01 par value; 10,000,000 shares authorized; 3,926,491 issued, 2,731,839 outstanding at September 30, 2014 and 3,926,491 issued, 2,722,239 outstanding at December 31,2013	39,265	39,265
Additional paid-in-capital	11,308,105	11,236,236
Treasury stock at cost, 1,169,152 shares at September 30, 2014 and 1,204,252 at December 31, 2013	-3,190,369	-3,272,808
Accumulated other comprehensive income	42,502	42,502
Accumulated deficit	-1,071,849	-1,698,671
Total shareholders’ equity	7,127,654	6,346,524
Total liabilities and shareholders’ equity	$15,626,012	$16,353,284

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets Parenthetical (Parentheticals) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Consolidated Balance Sheet Parenthetical [Line Items]	'	'
Allowance for doubtful accounts receivable, current	$50,000	$40,000
Preferred stock, par value per share	$1	$1
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Common stock, par value per share	$0.01	$0.01
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,926,491	3,926,491
Common stock, shares outstanding	2,757,339	2,722,239
Treasury stock, shares	1,169,152	1,204,252

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Net sales	$6,045,872	$4,728,217	$18,329,472	$15,251,851
Cost of sales	4,885,043	4,178,406	14,723,334	13,192,226
Gross profit	1,160,829	549,811	3,606,138	2,059,625
Selling and marketing	252,995	209,498	785,075	696,712
General and administrative	597,413	727,664	1,735,279	2,037,139
Research and development	110,441	131,077	292,962	251,772
Total operating expenses	960,849	1,068,239	2,813,316	2,985,623
Income (loss) from continuing operations	199,980	-518,428	792,822	-925,998
Other income (expense):	'	'	'	'
Interest expense	-66,236	-51,393	-206,914	-258,940
Other income (expense), net	-4,099	293	44,900	8,063
Total other expense, net	-70,335	-51,100	-162,014	-250,877
Income (loss) from continuing operations before income taxes	129,645	-569,528	630,808	-1,176,875
Income tax provision	0	0	2,207	2,267,969
Net income (loss) from continuing operations	129,645	-569,528	628,601	-3,444,844
Discontinued Operations:	'	'	'	'
Income (loss) from discontinued operations, net of tax provisions of $0 for the three and nine months ended September 30, 2014 and 2013, respectively	0	3,977	-1,779	-16,569
Net income (loss)	$129,645	($565,551)	$626,822	($3,461,413)
Income (loss) per share - basic	'	'	'	'
Continuing operations	$0.05	($0.21)	$0.23	($1.27)
Discontinued operations	$0	$0	$0	($0.01)
Income (loss) per share - basic	$0.05	($0.21)	$0.23	($1.28)
Income (loss) per share - diluted	'	'	'	'
Continuing operations	$0.05	($0.21)	$0.22	($1.27)
Discontinued operations	$0	$0	$0	($0.01)
Income (loss) per share - diluted	$0.05	($0.21)	$0.22	($1.28)
Weighted average common shares outstanding - basic	2,748,479	2,704,239	2,731,530	2,704,239
Weighted average common shares outstanding - diluted	2,855,223	2,704,239	2,815,776	2,704,239

Consolidated_Statements_of_Ope1

Consolidated Statements of Operations Parenthetical (Parentheticals) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Consolidated Statement of Operations Parenthetical [Abstract]	'	'	'	'
Tax provision, discontinued operations	$0	$0	$0	$0

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (unaudited) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Cash flows from operating activities:	'	'
Net income (loss)	$626,822	($3,461,413)
Loss from discontinued operations	1,779	16,569
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:	'	'
(Gain) loss on sale of property, plant and equipment	-21,000	174
Depreciation and amortization	1,177,364	1,065,405
Non-cash interest expense	20,762	0
Change in allowance for doubtful accounts	10,000	-77,098
Deferred income taxes	0	2,267,969
Share-based compensation expense	22,186	40,646
Changes in operating assets and liabilities:	'	'
Accounts receivable	84,071	716,930
Inventories	-808,814	-238,907
Prepaid expenses and other current assets	-134,760	-47,646
Other non-current assets	80,753	-44,171
Accounts payable	78,704	102,581
Accrued expenses and other current liabilities	399,826	77,803
Other non-current liabilities	-80,492	-86,238
Net cash provided by (used in) operating activities of continuing operations	1,457,201	332,604
Net cash provided by (used in) operating activites of discontinued operations	-1,509	-277,215
Net cash provided by (used in) operating activities	1,455,692	55,389
Cash flows from investing activities:	'	'
Purchases of property, plant and equipment	-1,104,265	-1,200,346
Proceeds from sale of property, plant and equipment	24,500	1,528
Cash paid for patents and trademarks	-2,613	-33,902
Net cash provided by (used in) investing activities from continuing operations	-1,082,378	-1,232,720
Net cash provided by (used in) investing activities from discontinued operations	0	284,300
Net cash provided by (used in) investing activities	-1,082,378	-948,420
Cash flows from financing activities:	'	'
(Payments on) proceeds from revolving line of credit, net	-728,000	2,399,493
Payments on demand line of credit	0	-800,000
Proceeds from equipment line of credit	116,905	177,251
Proceeds from term notes payable	0	1,500,000
Payments on term notes payable	-316,376	-1,432,201
Proceeds from stock options exercises	97,022	0
Proceeds from warrant exercises	35,100	0
Restricted cash	0	-1,000,000
Net cash provided by (used in) financing activities from continuing operations	-795,349	844,543
Net cash provided by (used in) financing activities from discontinued operations	0	0
Net cash provided by (used in) financing activities	-795,349	844,543
Net increase (decrease) in cash and cash equivalents	-422,035	-48,488
Cash and cash equivalents, beginning of period	751,275	508,590
Cash and cash equivalents, end of period	329,240	460,102
Less: cash and cash equivalents of discontinued operations at end of period	0	4,285
Cash and cash equivalents of continuing operations at end of period	329,240	455,817
Supplemental Cash Flow Information (unaudited)	'	'
Cash paid for interest	173,445	91,751
Cash received from tax refund	0	66,951
Non-cash activities:	'	'
Acquisition of equipment with equipment notes	0	272,500
Equipment line of credit converted to term notes payable	740,999	0
Reduction of restricted cash offset by performance guarantee	$975,430	$0

1_Basis_of_Presentation_Notes

1. Basis of Presentation (Notes)	9 Months Ended
	Sep. 30, 2014
Basis of presentation [Abstract]	'
Basis of presentation	'
	Basis of Presentation
	The consolidated financial statements (the "financial statements") include the accounts of Arrhythmia Research Technology, Inc (“ART”) and its subsidiary, Micron Products, Inc. ("Micron" and together with ART, the “Company”). ART discontinued operations of it’s wholly-owned Pennsylvania subsidiary, RMDDxUSA Corp. (“RMDDxUSA”) and that subsidiary’s Prince Edward Island subsidiary, RMDDx Corporation (“RMDDx” and collectively with RMDDxUSA,“WirelessDx”) in the third quarter of 2012. The WirelessDx results are presented herein as discontinued operations. All intercompany balances and transactions have been eliminated in consolidation.
	The unaudited interim consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC").  Accordingly, certain information and footnote disclosures normally included in complete financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to such rules and regulations.  These financial statements and related notes should be read in conjunction with the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 21, 2014. Certain reclassifications have been made to prior period amounts to conform to the current year presentation.
	The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. The Company's balance sheet at December 31, 2013 has been derived from the audited financial statements at that date, but does not include all the information and footnotes required by GAAP for complete financial statements.
	The information presented reflects, in the opinion of the management of the Company, all adjustments necessary for a fair presentation of the financial results for the interim periods presented. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

2_Earnings_per_share_Notes

2. Earnings per share (Notes)	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Earnings Per Share	'
	Earnings per Share ("EPS")
	Basic earnings (loss) per share is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding.  The computation of diluted earnings (loss) per share is similar to the computation of basic earnings (loss) per share except that the denominator is increased to include the average number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued.  In addition, the numerator is adjusted for any changes in net income (loss) that would result from the assumed conversions of those potential shares.
	The following table presents the calculation of both basic and diluted EPS.
		Three months ended September 30,					Nine months ended September 30,
		2014		2013			2014			2013
	Income (loss) from continuing operations	$	129,645	$	(569,528	)	$	628,601		$	(3,444,844	)
	Income (loss) from discontinued operations, net of tax	—		3,977			(1,779		)	(16,569		)
	Net income (loss) available to common shareholders	$	129,645	$	(565,551	)	$	626,822		$	(3,461,413	)
	Basic EPS:
	Weighted average common shares outstanding	2,748,479		2,704,239			2,731,530			2,704,239
	Income (loss) per share - basic
	Continuing operations	$	0.05	$	(0.21	)	$	0.23		$	(1.27	)
	Discontinued operations	—		—			—			(0.01		)
	Consolidated basic EPS	$	0.05	$	(0.21	)	$	0.23		$	(1.28	)
	Diluted EPS:
	Weighted average common shares outstanding	2,748,479		2,704,239			2,731,530			2,704,239
	Assumed conversion of net common shares issuable under stock option plans	62,359		—			49,439			—
	Assumed conversion of net common shares issuable under warrants	44,385		—			34,807			—
	Weighted average common and common equivalent shares outstanding, diluted	2,855,223		2,704,239			2,815,776			2,704,239
	Income (loss) per share - diluted
	Continuing operations	$	0.05	$	(0.21	)	$	0.22		$	(1.27	)
	Discontinued operations	—		—			—			(0.01		)
	Consolidated diluted EPS	$	0.05	$	(0.21	)	$	0.22		$	(1.28	)

3_Inventories

3. Inventories	9 Months Ended
	Sep. 30, 2014
Inventories [Abstract]	'
Inventories, net	'
	Inventories, net
	Inventories consist of the following:
		September 30, 2014		31-Dec-13
	Raw materials	$	1,054,274	$	947,765
	Work-in-process	860,008		266,431
	Finished goods	1,229,823		1,121,095
	Total	$	3,144,105	$	2,335,291
	The cost of silver in inventory that is included in raw materials, work-in-process and finished goods had an estimated cost of $482,000 and $382,000 as of September 30, 2014 and December 31, 2013, respectively. Work-in-process increased $593,577 from December 31, 2013 to September 30, 2014. This increase was primarily due to in-process tooling of $411,733.

4_Property_Plant_and_Equipment

4. Property, Plant and Equipment, Net	9 Months Ended
	Sep. 30, 2014
Property, Plant and Equipment, Net [Abstract]	'
Property, Plant and Equipment, Net	'
	Property, Plant and Equipment, Net
	Property, plant and equipment consist of the following:
		Asset Lives (in years)			September 30, 2014			31-Dec-13
	Machinery and equipment	3	to	15	$	14,402,503		$	13,734,528
	Building and improvements		20		4,360,114			4,303,156
	Vehicles	3	to	5	90,713			94,227
	Furniture, fixtures, computers and software	3	to	5	1,349,931			1,317,189
	Land				202,492			202,492
	Construction in progress				364,267			177,473
	Total property, plant and equipment				20,770,020			19,829,065
	Less: accumulated depreciation				(13,200,996		)	(12,249,509		)
	Property, plant and equipment, net				$	7,569,024		$	7,579,556
	For the three and nine months ended September 30, 2014, the Company recorded $369,518 and $1,111,297 of depreciation expense, respectively, as compared to $369,917 and $1,065,283 for the three and nine months ended September 30, 2013, respectively.

5_Intangibles_Notes

5. Intangibles (Notes)	9 Months Ended
	Sep. 30, 2014
Intangible Assets, Net [Abstract]	'
Intangibles	'
	Intangible Assets, Net
	The Company assesses the impairment of long-lived assets and intangible assets with finite lives whenever events or changes in circumstances indicate that the carrying value may not be fully recoverable.  In the third quarter of 2014, the Company reviewed unamortized patent costs for patents pending. As a result of this review, the Company determined that the patents pending related to the Ambulatory Physiological Monitoring with Remote Analysis were no longer patentable and recorded an impairment charge of $56,237 for the full cost of these patents pending. The impairment charge is included as a component of general and administrative expense on the statement of operations for the three and nine months ended September 30, 2014 and is reflected in the statement of cash flows within depreciation and amortization.
	Additionally, in 2014, the Company removed the fully-amortized gross and accumulated amortization balances for the discontinued operations of WirelessDx. Intangible assets consist of the following:
			September 30, 2014						December 31, 2013
		Estimated Useful Life (in years)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	Patents and trademarks	12	$	414,437	$	393,931	$	20,506	$	476,390	$	454,566	$	21,824
	Patents and trademarks pending	—	83,494		—		83,494		143,968		—		143,968
	Trade names	8	33,250		16,187		17,063		33,250		14,525		18,725
	Total intangible assets		$	531,181	$	410,118	$	121,063	$	653,608	$	469,091	$	184,517
	Amortization expense, including the $56,237 impairment charge, for the three and nine months ended September 30, 2014 was $57,231 and $66,067, respectively, and was $994 and $122 for the three and nine months ended September 30, 2013. Amortization expense for the nine months ended September 30, 2013 also reflects adjustments to correct year to date accumulated amortization in the second quarter of 2013.

6_Debt

6. Debt	9 Months Ended
	Sep. 30, 2014
Debt [Abstract]	'
Debt	'
	Debt
	The following tables set forth the items which comprise debt for the Company:
	Lines of credit
		September 30, 2014		31-Dec-13
	Revolving line of credit, current	$	2,046,495	$	—
	Revolving line of credit, non-current	$	—	$	2,774,495
	Equipment line of credit, current portion	$	—	$	85,387
	Equipment line of credit, non-current portion	$	—	$	538,707
	Long-term debt and promissory notes
		September 30, 2014		31-Dec-13
	Term notes payable
	Commercial term loan	$	1,082,005	$	1,293,378
	Equipment term loan	674,550		—
	Equipment notes	183,538		222,091
	Term notes payable	1,940,093		1,515,469
	Less: current portion	485,027		335,760
	Long-term notes payable	$	1,455,066	$	1,179,709
	Subordinated promissory notes	$	438,531	$	417,769
	The revolving line of credit, equipment line of credit, equipment term loan and the commercial term loan are all under the terms of a multi-year credit facility with a bank entered into on March 29, 2013. The bank facility contains both financial and non-financial covenants.
	Revolving line of credit
	The revolving line of credit provides for borrowings up to 80% of eligible accounts receivable and 50% of eligible raw materials inventory.  The interest rate on the revolver is calculated at the bank's prime rate plus 0.25% (3.50% at September 30, 2014). The revolver has a maturity date of June 2015.
	Equipment line of credit and equipment term loan
	The equipment line of credit allowed for advances of up to $1.0 million and included a one-year draw period during which payments were interest only. The draw period ended March 29, 2014 and the then outstanding balance on the equipment line of credit of $740,999 was converted to a five-year term loan with a maturity date of March 29, 2019 with monthly payments of $13,890, consisting of principal and interest at a fixed rate of 4.65%.
	On June 26, 2014, the Company entered into a new equipment line of credit for $1.0 million under the Company's multi-year credit facility. This equipment line of credit is for the purchase of capital equipment. At September 30, 2014, no amounts had been drawn on the equipment line. The term of this equipment line is six years, maturing on June 26, 2020, inclusive of a maximum one year draw period. Repayment shall consist of monthly interest only payments, equal to the bank's prime rate plus 0.25% as to each advance commencing on the date of the loan through the earlier of: (i) one year from the date of the loan or (ii) the date upon which the equipment line of credit is fully advanced (the “Conversion Date”). On the Conversion Date, principal and interest payments will be due and payable monthly in an amount sufficient to pay the loan in full based upon an amortization schedule commensurate with the remaining term of the loan.
	Commercial term loan
	The commercial term loan has a five year term with a maturity date in March 2018. The interest rate on the loan is a fixed 4.25% per annum.
	Equipment notes
	In January 2013, the Company entered into two equipment notes totaling $272,500 with a financing company to acquire production equipment. The notes bear interest at the fixed rate of 4.66% and require monthly payments of principal and interest over a five year term maturing in January 2018.
	Subordinated promissory notes
	In December 2013, the Company completed a private offering in which the Company sold an aggregate of $500,000 in subordinated promissory notes. The notes are unsecured and require quarterly interest-only payments at a rate of 10% per annum. On the second anniversary following issuance, the interest rate increases to 12% per annum. The notes mature in December 2016 at which point the outstanding balance is due in full. The subordinated promissory notes may be prepaid by the Company at any time following the first anniversary thereof without penalty. The notes are subordinated to all indebtedness of the Company pursuant to the bank credit facility.
	In connection with the subordinated promissory notes, the Company issued warrants to purchase the Company's common stock at $3.51 per share. The warrants expire in December 2016. The proceeds were allocated between the notes and warrants on a relative fair value basis resulting in $416,950 allocated to the notes and $83,050 allocated to the warrants as part of Additional-Paid-in-Capital. The total discount on the notes is being recognized as non-cash interest expense over the term of the notes. For the three and nine months ended September 30, 2014, the Company recorded $6,920 and 20,762 of non-cash interest expense, respectively, related to the amortization of the discount. The unamortized discount which is net against the outstanding balance of the subordinated promissory notes is $61,469 at September 30, 2014 and $82,231 at December 31, 2013.

7_Income_Taxes

7. Income Taxes	9 Months Ended
	Sep. 30, 2014
Income Taxes [Abstract]	'
Income Taxes	'
	Income Taxes
	The tax provisions for the three and nine months ended September 30, 2014 and 2013 are attributable to the U.S. Federal, state and foreign income taxes on our continuing operations. No provision was recorded for the three months ended September 30, 2014, as such amounts were determined to be negligible because of the Company’s ability to offset the taxable income with loss carryforwards and the reversal of portions of the valuation allowance on deferred tax assets.
	The tax provision for the nine months ended September 30, 2013 also includes the impact on tax expense of $2,267,969 associated with the establishment of a full valuation allowance of the Company’s beginning of the year deferred tax assets. The Company has a full valuation allowance against its deferred tax assets at September 30, 2014 and December 31, 2013. Management expects to reevaluate the allowance on its deferred tax assets at December 31, 2014.
	The Company has federal, state and foreign net operating loss carryforwards totaling $7,420,000, $10,471,000 and $1,039,000 respectively, which begin to expire in 2030. The Company also had federal and state tax credit carryovers of $243,000 and $281,000, respectively. The federal and state tax credits begin to expire in 2026 and 2014, respectively.

8_Commitments_and_Contingencie

8. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies [Abstract]	'
Commitments and Contingencies	'
	Commitments and Contingencies
	Legal matters
	In the ordinary course of its business, the Company is involved in various legal proceedings involving a variety of matters. The Company does not believe there are any pending legal proceedings that will have a material impact on the Company’s financial position or results of operations. With respect to a specific matter, a third party had asserted a claim of approximately $100,000 against the Company as of December 31, 2013. On April 22, 2014 the case was dismissed with no judgment issued against the Company.

9_Stock_Options_Sharebased_Inc

9. Stock Options & Share-based Incentive Plan	9 Months Ended
	Sep. 30, 2014
Stock Options [Abstract]	'
Stock Options & Share-based Incentive Plan	'
	Stock Options and Share-Based Incentive Plan
	Options
	The following table sets forth the stock option transactions for the nine months ended September 30, 2014:
		Number of options		Weighted average Exercise Price		Weighted average remaining contractual term (in years)	Aggregate Intrinsic Value
	Outstanding at December 31, 2013	256,500		$	5.61	5.3	—
	Granted	—		—		—	—
	Exercised	(25,100	)	3.87		—	—
	Forfeited/expired	(56,500	)	7.15		—	—
	Outstanding at September 30, 2014	174,900		5.36		6.4	—
	Exercisable at September 30, 2014	67,900		$	6.3	4.6	$	100,037
	Exercisable at December 31, 2013	120,000		$	6.34	2.5	$	8,850
	For the three and nine months ended September 30, 2014, share-based compensation expense related to stock options amounted to ($4,361) and $22,186, respectively, and is included in general and administrative expenses. The credit for the three months ended September 30, 2014 was the result of adjustments to forfeiture rate estimates.
	For the three and nine months ended September 30, 2014, 15,500 and 25,100 stock options were exercised generating proceeds of $64,286 and 97,022, respectively.
	Warrants
	In July 2014, the Company received proceeds of $35,100 from the exercise of 10,000 warrants.

10_Discontinued_Operations

10. Discontinued Operations	9 Months Ended
	Sep. 30, 2014
Discontinued Operations [Abstract]	'
Discontinued Operations	'
	Discontinued Operations
	There was no revenue from discontinued operations for the three and nine months ended September 30, 2014 or 2013, respectively. Activity during the above noted periods consisted primarily of legal and other fees incurred offset by minor reversals.
	At December 31, 2013, the Company had a $1.0 million liability for an unmet performance obligation related to the discontinued operations. This performance obligation was secured by $1.0 million of restricted cash. The performance guarantee liability was carried on the balance sheet of continuing operations, as the liability was guaranteed by ART.
	In May 2014, $975,430 was drawn from the restricted cash, satisfying the guarantee on the performance obligation. The balance of $24,570 was returned to ART and recorded as other income on the condensed consolidated statements of operations.
	The assets and liabilities of the discontinued operations are listed below:
		September 30, 2014		31-Dec-13
	Cash	$	—	$	1,509
	Total current assets from discontinued operations	—		1,509
	Total assets from discontinued operations	$	—	$	1,509
	Accounts payable and accrued expenses	$	320,056	$	319,787
	Total current liabilities from discontinued operations	320,056		319,787
	Total liabilities from discontinued operations	$	320,056	$	319,787
	On May 8, 2014, RMDDxUSA filed a voluntary petition for relief under Chapter 7 (Liquidation) of the United States Bankruptcy Code in the District of Massachusetts. A trustee was assigned to review the assets and liabilities of the company. The trustee conducted the statutory Meeting of Creditors on June 16, 2014. There has been no further activity in the bankruptcy proceeding.

2_Earnings_per_share_Tables

2. Earnings per share (Tables)	9 Months Ended
	Sep. 30, 2014
Earnings Per Share [Abstract]	'
Earnings per Share	'
	The following table presents the calculation of both basic and diluted EPS.
		Three months ended September 30,					Nine months ended September 30,
		2014		2013			2014			2013
	Income (loss) from continuing operations	$	129,645	$	(569,528	)	$	628,601		$	(3,444,844	)
	Income (loss) from discontinued operations, net of tax	—		3,977			(1,779		)	(16,569		)
	Net income (loss) available to common shareholders	$	129,645	$	(565,551	)	$	626,822		$	(3,461,413	)
	Basic EPS:
	Weighted average common shares outstanding	2,748,479		2,704,239			2,731,530			2,704,239
	Income (loss) per share - basic
	Continuing operations	$	0.05	$	(0.21	)	$	0.23		$	(1.27	)
	Discontinued operations	—		—			—			(0.01		)
	Consolidated basic EPS	$	0.05	$	(0.21	)	$	0.23		$	(1.28	)
	Diluted EPS:
	Weighted average common shares outstanding	2,748,479		2,704,239			2,731,530			2,704,239
	Assumed conversion of net common shares issuable under stock option plans	62,359		—			49,439			—
	Assumed conversion of net common shares issuable under warrants	44,385		—			34,807			—
	Weighted average common and common equivalent shares outstanding, diluted	2,855,223		2,704,239			2,815,776			2,704,239
	Income (loss) per share - diluted
	Continuing operations	$	0.05	$	(0.21	)	$	0.22		$	(1.27	)
	Discontinued operations	—		—			—			(0.01		)
	Consolidated diluted EPS	$	0.05	$	(0.21	)	$	0.22		$	(1.28	)

3_Inventories_Tables

3. Inventories (Tables)	9 Months Ended
	Sep. 30, 2014
Inventory [Abstract]	'
Inventories, net	'
	Inventories consist of the following:
		September 30, 2014		31-Dec-13
	Raw materials	$	1,054,274	$	947,765
	Work-in-process	860,008		266,431
	Finished goods	1,229,823		1,121,095
	Total	$	3,144,105	$	2,335,291

4_Property_Plant_and_Equipment1

4. Property, Plant and Equipment, Net (Tables)	9 Months Ended
	Sep. 30, 2014
Property, Plant and Equipment [Abstract]	'
Property, Plant and Equipment	'
	Property, plant and equipment consist of the following:
		Asset Lives (in years)			September 30, 2014			31-Dec-13
	Machinery and equipment	3	to	15	$	14,402,503		$	13,734,528
	Building and improvements		20		4,360,114			4,303,156
	Vehicles	3	to	5	90,713			94,227
	Furniture, fixtures, computers and software	3	to	5	1,349,931			1,317,189
	Land				202,492			202,492
	Construction in progress				364,267			177,473
	Total property, plant and equipment				20,770,020			19,829,065
	Less: accumulated depreciation				(13,200,996		)	(12,249,509		)
	Property, plant and equipment, net				$	7,569,024		$	7,579,556

5_Intangibles_Tables

5. Intangibles (Tables)	9 Months Ended
	Sep. 30, 2014
Intangible Assets, Net [Abstract]	'
Intangibles	'
	Intangible assets consist of the following:
			September 30, 2014						December 31, 2013
		Estimated Useful Life (in years)	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
	Patents and trademarks	12	$	414,437	$	393,931	$	20,506	$	476,390	$	454,566	$	21,824
	Patents and trademarks pending	—	83,494		—		83,494		143,968		—		143,968
	Trade names	8	33,250		16,187		17,063		33,250		14,525		18,725
	Total intangible assets		$	531,181	$	410,118	$	121,063	$	653,608	$	469,091	$	184,517

6_Debt_Tables

6. Debt (Tables)	9 Months Ended
	Sep. 30, 2014
Debt [Abstract]	'
Lines of credit	'
	Lines of credit
		September 30, 2014		31-Dec-13
	Revolving line of credit, current	$	2,046,495	$	—
	Revolving line of credit, non-current	$	—	$	2,774,495
	Equipment line of credit, current portion	$	—	$	85,387
	Equipment line of credit, non-current portion	$	—	$	538,707
Long-term debt and promissory notes	'
	Long-term debt and promissory notes
		September 30, 2014		31-Dec-13
	Term notes payable
	Commercial term loan	$	1,082,005	$	1,293,378
	Equipment term loan	674,550		—
	Equipment notes	183,538		222,091
	Term notes payable	1,940,093		1,515,469
	Less: current portion	485,027		335,760
	Long-term notes payable	$	1,455,066	$	1,179,709
	Subordinated promissory notes	$	438,531	$	417,769

9_Stock_Options_Sharebased_Inc1

9. Stock Options & Share-based Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2014
Stock Options [Abstract]	'
Stock Option Transactions	'
	The following table sets forth the stock option transactions for the nine months ended September 30, 2014:
		Number of options		Weighted average Exercise Price		Weighted average remaining contractual term (in years)	Aggregate Intrinsic Value
	Outstanding at December 31, 2013	256,500		$	5.61	5.3	—
	Granted	—		—		—	—
	Exercised	(25,100	)	3.87		—	—
	Forfeited/expired	(56,500	)	7.15		—	—
	Outstanding at September 30, 2014	174,900		5.36		6.4	—
	Exercisable at September 30, 2014	67,900		$	6.3	4.6	$	100,037
	Exercisable at December 31, 2013	120,000		$	6.34	2.5	$	8,850

10_Discontinued_Operations_Tab

10. Discontinued Operations (Tables)	9 Months Ended
	Sep. 30, 2014
Discontinued Operations [Abstract]	'
Assets and Liabilities of Discontinued Operations	'
	The assets and liabilities of the discontinued operations are listed below:
		September 30, 2014		31-Dec-13
	Cash	$	—	$	1,509
	Total current assets from discontinued operations	—		1,509
	Total assets from discontinued operations	$	—	$	1,509
	Accounts payable and accrued expenses	$	320,056	$	319,787
	Total current liabilities from discontinued operations	320,056		319,787
	Total liabilities from discontinued operations	$	320,056	$	319,787

2_Earnings_per_share_Details

2. Earnings per share (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Earnings Per Share [Abstract]	'	'	'	'
Income (loss) from continuing operations	$129,645	($569,528)	$628,601	($3,444,844)
Income (loss) from discontinued operations, net of tax	0	3,977	-1,779	-16,569
Net income (loss) available to common shareholders	$129,645	($565,551)	$626,822	($3,461,413)
Basic EPS:	'	'	'	'
Weighted average of common shares outstanding	2,748,479	2,704,239	2,731,530	2,704,239
Income (loss) per share - basic	'	'	'	'
Continuing operations	$0.05	($0.21)	$0.23	($1.27)
Discontinued operations	$0	$0	$0	($0.01)
Consolidated basic EPS	$0.05	($0.21)	$0.23	($1.28)
Diluted EPS:	'	'	'	'
Weighted average common shares outstanding	2,748,479	2,704,239	2,731,530	2,704,239
Assumed conversion of net common shares issuable under stock option plans	62,359	0	49,439	0
Assumed conversion of net common shares issuable under warrants	44,385	0	34,807	0
Weighted average common and common equivalent shares outstanding, diluted	2,855,223	2,704,239	2,815,776	2,704,239
Income (loss) per share - diluted	'	'	'	'
Continuing operations	$0.05	($0.21)	$0.22	($1.27)
Discontinued operations	$0	$0	$0	($0.01)
Consolidated diluted EPS	$0.05	($0.21)	$0.22	($1.28)

3_Inventories_Details

3. Inventories (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Inventories, net	'	'
Raw materials	$1,054,274	$947,765
Work-in-process	860,008	266,431
Finished goods	1,229,823	1,121,095
Total	3,144,105	2,335,291
Silver inventory	$482,000	$382,000

3_Inventories_Change_in_Invent

3. Inventories Change in Inventory (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Change in inventory [Abstract]	'
Increase in work-in-process	$593,577
Increase in in-process tooling	$411,733

4_Property_Plant_and_Equipment2

4. Property, Plant and Equipment, Net (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Property, Plant and Equipment	'	'
Machinery and equipment	$14,402,503	$13,734,528
Building and improvements	4,360,114	4,303,156
Vehicles	90,713	94,227
Furniture, fixtures, computers and software	1,349,931	1,317,189
Land	202,492	202,492
Construction in progress	364,267	177,473
Total property, plant and equipment	20,770,020	19,829,065
Less: accumulated depreciation	-13,200,996	-12,249,509
Property, plant and equipment, net	$7,569,024	$7,579,556
Minimum asset life (years)	'	'
Property, Plant and Equipment	'	'
Machinery and equipment	3	'
Vehicles	3	'
Furniture, fixtures, computers and software	3	'
Maximum asset life (years)	'	'
Property, Plant and Equipment	'	'
Machinery and equipment	15	'
Vehicles	5	'
Furniture, fixtures, computers and software	5	'
Asset life (years)	'	'
Property, Plant and Equipment	'	'
Building and improvements	20	'

4_Property_Plant_and_Equipment3

4. Property, Plant and Equipment, Net Depreciation Expense (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Depreciation [Abstract]	'	'	'	'
Depreciation expense	$369,518	$369,917	$1,111,297	$1,065,283

5_Intangibles_Details

5. Intangibles (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Intangible Assets [Line Items]	'	'
Gross	$531,181	$653,608
Accumulated Amortization	410,118	469,091
Net	121,063	184,517
Patents and trademarks [Member]	'	'
Intangible Assets [Line Items]	'	'
Estimated Useful Life (in years)	12	'
Gross	414,437	476,390
Accumulated Amortization	393,931	454,566
Net	20,506	21,824
Patents and trademarks pending [Member]	'	'
Intangible Assets [Line Items]	'	'
Estimated Useful Life (in years)	0	'
Gross	83,494	143,968
Accumulated Amortization	0	0
Net	83,494	143,968
Trade Names [Member]	'	'
Intangible Assets [Line Items]	'	'
Estimated Useful Life (in years)	8	'
Gross	33,250	33,250
Accumulated Amortization	16,187	14,525
Net	$17,063	$18,725

5_Intangibles_Amortization_and

5. Intangibles Amortization and Impairment (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Amortization and Impairment [Abstract]	'	'	'	'
Intangible asset impairment charge	$56,237	'	'	'
Amortization	$57,231	$994	$66,067	$122

6_Debt_Lines_of_Credit_Details

6. Debt Lines of Credit (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Lines of credit [Abstract]	'	'
Revolving line of credit, current	$2,046,495	$0
Revolving line of credit, non-current	0	2,774,495
Equipment line of credit, current portion	0	85,387
Equipment line of credit, non-current portion	$0	$538,707

6_Debt_Longterm_Debt_Details

6. Debt Long-term Debt (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Term notes payable [Abstract]	'	'
Commercial term loan	$1,082,005	$1,293,378
Equipment term loan	674,550	0
Equipment notes	183,538	222,091
Term notes payable	1,940,093	1,515,469
Less: current portion	-485,027	-335,760
Long-term notes payable	1,455,066	1,179,709
Subordinated Long-term Debt, Noncurrent	$438,531	$417,769

6_Debt_Credit_Facility_Details

6. Debt Credit Facility (Details) (USD $)	Sep. 30, 2014	Jun. 26, 2014	Mar. 29, 2014	Mar. 31, 2013	Mar. 29, 2013
Credit Facility [Abstract]	'	'	'	'	'
Percent borrowable of net eligible accounts receivable, Revolving line of credit	'	'	'	'	80.00%
Percent borrowable of net eligible raw materials inventory, Revolving line of credit	'	'	'	'	50.00%
Revolving line of credit, interest rate in addition to bank's prime rate	'	'	'	'	0.25%
Revolving line of credit, current interest rate	3.50%	'	'	'	'
Equipment line of credit	'	'	'	'	$1,000,000
Equipment line of credit, outstanding balance at end of draw period	'	'	740,999	'	'
Equipment line of credit, monthly payment	'	'	13,890	'	'
Equipment line of credit, fixed interest rate	'	'	4.65%	'	'
Equipment line of credit, 2014	'	1,000,000	'	'	'
Equipment line of credit, 2014, interest rate in addition to bank's prime rate	'	0.25%	'	'	'
Commercial term loan, fixed interest rate	'	'	'	'	4.25%
Equipment Notes [Abstract]	'	'	'	'	'
Equipment notes	'	'	'	$272,500	'
Equipment notes, fixed interest rate	'	'	'	4.66%	'

6_Debt_Subordinated_Promissory

6. Debt Subordinated Promissory Notes (Details) (USD $)	Dec. 19, 2013	Sep. 30, 2014	Sep. 30, 2014	Sep. 30, 2014	Dec. 31, 2013
	Subordinated debt obligations	Non cash interest expense	Non cash interest expense	Unamortized discount	Unamortized discount
Subordinated promissory notes [Line Items]	'	'	'	'	'
Subordinated Debt	$500,000	'	'	'	'
Subordinated borrowing, Interest rate years 1 and 2	10.00%	'	'	'	'
Subordinated Borrowing, Interest rate after year 2	12.00%	'	'	'	'
Per share purchase price of warrants in connection to the subordinated promissory notes	$3.51	'	'	'	'
Subordinated debt, relative fair value	416,950	'	'	'	'
Additional-Paid-in-Capital, stock option warrants, subordinated debt	83,050	'	'	'	'
Non-cash interest expense	'	6,920	20,762	'	'
Unamortized discount, net against outstanding balance of subordinated promissory notes	'	'	'	$61,469	$82,231

7_Income_Taxes_Details

7. Income Taxes (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2014
Income Taxes [Abstract]	'	'
Valuation allowance, deferred tax asset	$2,267,969	'
Federal operating loss carryforward	'	7,420,000
State operating loss carryforward	'	10,471,000
Foreign operating loss carryforward	'	1,039,000
Federal tax credit carryover	'	243,000
State tax credit carryover	'	$281,000

8_Commitments_and_Contingencie1

8. Commitments and Contingencies (Details) (USD $)	Dec. 31, 2013
Commitments and Contingencies [Line Items]	'
Legal matters, approximate claim	$100,000

9_Stock_Options_Sharebased_Inc2

9. Stock Options & Share-based Incentive Plan Stock Option Transactions (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Number of options	'	'
Stock Options	'	'
Outstanding	174,900	256,500
Granted	0	'
Exercised	-25,100	'
Forfeited/expired	-56,500	'
Exercisable	67,900	120,000
Weighted average Exercise Price	'	'
Stock Options	'	'
Outstanding	5.36	5.61
Granted	0	'
Exercised	3.87	'
Forfeited/expired	7.15	'
Exercisable	6.3	6.34
Weighted average remaining contractual term (in years)	'	'
Stock Options	'	'
Outstanding	6.4	5.3
Granted	0	'
Exercised	0	'
Forfeited/expired	0	'
Exercisable	4.6	2.5
Aggregate Intrinsic Value	'	'
Stock Options	'	'
Outstanding	0	0
Granted	0	'
Exercised	0	'
Forfeited/expired	0	'
Exercisable	100,037	8,850

9_Stock_Options_Sharebased_Inc3

9. Stock Options & Share-based Incentive Plan Share-based Compensation (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Share-based Compensation [Line Items]	'	'
Share-based compensation expense	($4,361)	$22,186
Stock options exercised	15,500	25,100
Proceeds from Stock Options Exercised	64,286	97,022
Proceeds from warrant exercises	$35,100	'
Warrants exercised	10,000	'

10_Discontinued_Operations_Det

10. Discontinued Operations (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Assets and liabilities of discontinued operations	'	'
Cash	$0	$1,509
Total current assets from discontinued operations	0	1,509
Total assets from discontinued operations	0	1,509
Accounts payable and accrued expenses	320,056	319,787
Total current liabilities from discontinued operations	320,056	319,787
Total Liabilities from discontinued operations	$320,056	$319,787

10_Discontinued_Operations_Add

10. Discontinued Operations Additional Information (Details) (USD $)	9 Months Ended
	Sep. 30, 2014	Dec. 31, 2013
Discontinued Operations Information [Abstract]	'	'
Performance guarantee obligation	$0	$1,000,000
Restricted cash that secured performance obligation	'	1,000,000
Amount drawn from restricted cash to satisfy guarantee on the performance obligation	975,430	'
Portion of performance guarantee obligation returned to ART	$24,570	'