Neonode (NEON) 10-Q6 May 152015 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2015	1-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	Neonode, Inc
Entity Central Index Key	87050
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Document Type	10-Q
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		40,455,352

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$4,453	$6,129
Accounts receivable, net	2,041	1,106
Projects in process	613	200
Prepaid expenses and other current assets	536	513
Total current assets	7,643	7,948
Property and equipment, net	554	654
Total assets	8,197	8,602
Current liabilities:
Accounts payable	735	566
Accrued expenses	1,143	935
Deferred revenues	4,146	3,403
Current portion of capital lease obligation	56	61
Total current liabilities	6,080	4,965
Capital lease obligation, net of current portion	319	367
Total liabilities	6,399	5,332
Commitments and contingencies
Stockholders' equity:
Common stock, 70,000,000 shares authorized with par value $0.001 per share; 40,455,352 shares issued and outstanding at March 31, 2015 and December 31, 2014	40	40
Additional paid-in capital	169,608	169,010
Accumulated other comprehensive income	151	149
Accumulated deficit	-168,001	-165,929
Total stockholders' equity	1,798	3,270
Total liabilities and stockholders' equity	8,197	8,602
Series B Preferred Stock
Stockholders' equity:
Series B Preferred stock, 54,425 shares authorized with par value $0.001 per share; 83 shares issued and outstanding at March 31, 2015 and December 31, 2014. (In the event of dissolution, each share of Series B Preferred stock has a liquidation preference equal to par value of $0.001 per share over the shares of common stock)

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Unaudited)(Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Common stock, shares authorized	70,000,000	70,000,000
Common stock, par value	$0.00	$0.00
Common stock, shares issued	40,455,352	40,455,352
Common stock, shares outstanding	40,455,352	40,455,352
Series B Preferred Stock
Preferred stock, shares authorized	54,425	54,425
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares issued	83	83
Preferred stock, shares outstanding	83	83
Preferred stock, liquidation preference	$0.00	$0.00

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Statements of Operations [Abstract]
Net revenues	$2,263	$1,014
Cost of revenues	338	166
Gross margin	1,925	848
Operating expenses:
Product research and development	1,579	1,784
Sales and marketing	850	1,042
General and administrative	1,562	2,029
Total operating expenses	3,991	4,855
Operating loss	-2,066	-4,007
Other expense
Other expense, net	4
Total other expense	4
Loss before provision for income taxes	-2,070	-4,007
Provision for income taxes	2	1
Net loss	($2,072)	($4,008)
Loss per common share:
Basic and diluted loss per share	($0.05)	($0.11)
Basic and diluted - weighted average number of common shares outstanding	40,455	37,941

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Statements of Comprehensive Loss [Abstract]
Net loss	($2,072)	($4,008)
Other comprehensive income (loss):
Foreign currency translation adjustments	2	35
Total comprehensive loss	($2,070)	($3,973)

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($2,072)	($4,008)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation expense	598	1,072
Depreciation and amortization	51	41
Changes in operating assets and liabilities:
Accounts receivable	-935	314
Projects in process	-417	-202
Prepaid expenses and other current assets	-58	-139
Accounts payable and accrued expenses	502	228
Deferred revenues	746	48
Net cash used in operating activities	-1,585	-2,646
Cash flows from investing activities:
Purchase of property and equipment	-3	-46
Net cash used in investing activities	-3	-46
Cash flows from financing activities:
Proceeds from exercise of stock warrants		36
Principal payments on capital lease obligation	-14
Net cash (used in) provided by financing activities	-14	36
Effect of exchange rate changes on cash	-74	33
Net decrease in cash	-1,676	-2,623
Cash at beginning of period	6,129	8,815
Cash at end of period	4,453	6,192
Supplemental disclosure of cash flow information:
Cash paid for income taxes	2	1
Cash paid for interest	$4

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders' Equity (USD $)	Total	Series A Preferred Stock	Series B Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
In Thousands, except Share data	Total	Series A Preferred Stock	Series B Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Beginning Balances at Dec. 31, 2011	$13,673			$33	$142,955	$13	($129,328)
Beginning Balances, Shares at Dec. 31, 2011				32,779
Foreign currency translation adjustment						-8
Net loss							-9,287
Stock option and warrant compensation expense to employees	3,499				3,499
Common stock issued upon exercise of common stock warrants	223				223
Common stock issued upon exercise of common stock warrants, shares				550
Exchange of Series B preferred stock for common stock, shares				2
Ending Balances at Dec. 31, 2012	8,100			33	146,677	5	-138,615
Ending Balances, shares at Dec. 31, 2012				33,331
Proceeds from sale of common stock, net of offering costs	6,892			2	6,890
Proceeds from sale of common stock, net of offering costs, shares				1,169
Common stock issued upon exercise of common stock options	1,060				1,060
Common stock issued upon exercise of common stock options, shares				241
Foreign currency translation adjustment						6
Net loss							-13,080
Stock option and warrant compensation expense to employees, directors and vendors	2,656				2,656
Common stock issued upon exercise of common stock warrants	714			3	711
Common stock issued upon exercise of common stock warrants, shares				3,152
Exchange of Series A preferred stock for common stock,shares				40
Exchange of Series B preferred stock for common stock, shares				1
Ending Balances at Dec. 31, 2013	6,348			38	157,994	11	-151,695
Ending Balances, shares at Dec. 31, 2013				37,934
Stock based compensation expense to employees, directors and vendors	1,729				1,729
Proceeds from sale of common stock, net of offering costs	9,253			2	9,251
Proceeds from sale of common stock, net of offering costs, shares				2,500
Foreign currency translation adjustment						138
Net loss							-14,234
Common stock issued upon exercise of common stock warrants	36				36
Common stock issued upon exercise of common stock warrants, shares				21
Ending Balances at Dec. 31, 2014	$3,270			$40	$169,010	$149	($165,929)
Ending Balances, shares at Dec. 31, 2014				40,455

Interim_Period_Reporting

Interim Period Reporting	3 Months Ended
Interim Period Reporting	Mar. 31, 2015
Interim Period Reporting [Abstract]
Interim Period Reporting	1. Interim Period Reporting



	The accompanying unaudited interim condensed consolidated financial statements, include all adjustments, consisting of normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations and cash flows for the interim periods presented. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of results for a full fiscal year or any other period.



	The accompanying condensed consolidated financial statements for the three months ended March 31, 2015 and 2014 have been prepared by us, pursuant to the rules and regulations of the United States (“U.S.”) Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally contained in financial statements prepared in accordance with accounting principles generally accepted in the U.S. (“U.S. GAAP”) have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2014.



	Operations



	Neonode Inc. (collectively with its subsidiaries, is referred to in this Form 10-Q Report as “Neonode”, “we”, “us”, “our” or the “Company”), develops and licenses user interfaces and optical infrared touch technology. We license our multi-touch technology to Original Equipment Manufacturers (“OEMs”) and Original Design Manufacturers (“ODMs”) who incorporate it into devices that they produce and sell.



	Liquidity



	We have incurred significant operating losses and negative cash flows from operations since our inception. The Company incurred net losses of approximately $2.1 million and $4.0 million the three months ended March 31, 2015 and 2014, respectively, and had an accumulated deficit of approximately $168.0 million and $165.9 million as of March 31, 2015 and December 31, 2014, respectively. In addition, the Company used cash in operating activities of approximately $1.6 million and $2.6 million for the three months ended March 31, 2015 and 2014, respectively.



	In June 2014, we filed a shelf registration statement with the SEC that became effective on June 12, 2014. We may from time to time issue shares of our common stock under our shelf registration in amounts, at prices, and on terms to be announced when and if the securities are offered. The specifics of any future offerings, along with the use of proceeds of any securities offered, will be described in a prospectus supplement and any other offering materials, at the time of the offering. There are 5,000,000 shares registered and available for issuance under our shelf registration.



	In the future, we may require sources of capital in addition to cash on hand to continue operations and to implement our strategy. If our operations do not become cash flow positive, we may be forced to seek credit line facilities from financial institutions, equity investments or debt arrangements. No assurances can be given that we will be successful in obtaining such additional financing on reasonable terms, or at all. If adequate funds are not available on acceptable terms, or at all, we may be unable to adequately fund our business plans and it could have a negative effect on our business, results of operations and financial condition. In addition, if funds are available, the issuance of equity securities or securities convertible into equity could dilute the value of shares of our common stock and cause the market price to fall, and the issuance of debt securities could impose restrictive covenants that could impair our ability to engage in certain business transactions.

Summary_of_Significant_Account

Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Summary of significant accounting policies	2. Summary of Significant Accounting Policies



	Principles of Consolidation



	The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of Neonode Inc. and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.



	The unaudited condensed consolidated balance sheet at March 31, 2015 and the condensed consolidated statements of operations, comprehensive loss and cash flows for the three months ended March 31, 2015, include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.), Neno User Interface Solutions AB (Sweden), Neonode Korea Ltd. (South Korea) and Neonode Taiwan Ltd. (Taiwan).



	The audited condensed consolidated balance sheet at December 31, 2014 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.), Neno User Interface Solutions AB (Sweden) and Neonode Korea Ltd. (South Korea).



	The unaudited condensed consolidated statements of operations, comprehensive loss and cash flows for the three months ended March 31, 2014 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.) and Neno User Interface Solutions AB (Sweden).



	Estimates



	The preparation of financial statements in conformity with U.S. GAAP requires making estimates and assumptions that affect, at the date of the financial statements, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Actual results could differ from these estimates. Significant estimates include, but are not limited to, collectability of accounts receivable,the achievement of substantive milestones and vendor-specific objective evidence (“VSOE”) of fair value for purposes of revenue recognition (or deferral of revenue), recoverability of capitalized project costs and long-lived assets, the valuation allowance related to our deferred tax assets and the fair value of options and warrants issued for stock-based compensation.



	Concentration of Cash Balance Risks



	Cash balances are maintained at various banks in the U.S., Japan, Korea, Taiwan and Sweden. At times, deposits held with financial institutions in the U.S. may exceed the amount of insurance provided by the U.S. Federal Deposit Insurance Corporation, which provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 100,000 Euro per customer and covers deposits in all types of accounts. The Japanese government provides insurance coverage up to 10,000,000 Yen per customer. The Korea Deposit Insurance Corporation provides insurance coverage up to 50,000,000 Won per customer. The Central Deposit Insurance Corporation in Taiwan provides insurance coverage up to 3,000,000 Taiwan Dollar per customer. As of March 31, 2015, we had approximately $4.0 million in excess of insurance limits.



	Accounts Receivable and Allowance for Doubtful Accounts



	Our accounts receivable are stated at net realizable value. Our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make required payments. Credit limits are established through a process of reviewing the financial history and stability of each customer. Where appropriate, we obtain credit rating reports and financial statements of the customer when determining or modifying its credit limits. We regularly evaluate the collectability of our trade receivable balances based on a combination of factors. When a customer’s account balance becomes past due, we initiate dialogue with the customer to determine the cause. If it is determined that the customer will be unable to meet its financial obligation, such as in the case of a bankruptcy filing, deterioration in the customer’s operating results or financial position or other material events impacting its business, we record a specific allowance to reduce the related receivable to the amount we expect to recover. Should all efforts fail to recover the related receivable, we will write-off the account. We also record an allowance for all customers based on certain other factors including the length of time the receivables are past due and historical collection experience with customers. Our allowance for doubtful accounts was $167,000 as of March 31, 2015 and December 31, 2014.



	Projects in Process



	Projects in process consist of costs incurred toward the completion of various projects for certain customers. These costs are primarily comprised of direct engineering labor costs and project-specific equipment costs. These costs are capitalized on our consolidated balance sheet as an asset and deferred until revenue for each project is recognized in accordance with our revenue recognition policy. Costs capitalized in projects in process were $613,000 and $200,000 as of March 31, 2015 and December 31, 2014, respectively.



	Property and Equipment



	Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based upon estimated useful lives of the assets as follows:



Estimated useful lives



Computer equipment		3 years
Furniture and fixtures		5 years



Equipment purchased under capital leases is amortized on a straight-line basis over the estimated useful life of the asset or the term of the lease, whichever is shorter.



Upon retirement or sale of property and equipment, cost and accumulated depreciation and amortization are removed from the accounts and any gains or losses are reflected in the consolidated statement of operations. Maintenance and repairs are charged to expense as incurred.



Long-lived Assets



We assess any impairment by estimating the future cash flow from the associated asset in accordance with relevant accounting guidance. If the estimated undiscounted future cash flow related to these assets decreases or the useful life is shorter than originally estimated, we may incur charges for impairment of these assets. As of March 31, 2015, we believe there was no impairment of our long-lived assets. There can be no assurance, however, that market conditions will not change or sufficient demand for our products and services will continue, which could result in impairment of long-lived assets in the future.



Foreign Currency Translation and Transaction Gains and Losses



The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen, the South Korean Won and the Taiwan Dollar. The translation from Swedish Krona, Japanese Yen, South Korean Won and Taiwan Dollar to U.S. Dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted-average exchange rate during the period. Gains or (losses) resulting from translation are included as a separate component of accumulated other comprehensive income (loss). Foreign currency translation gains were $2,000 and $35,000 during the three months ended March 31, 2015 and 2014, respectively. Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $26,000 during the three months ended March 31, 2015 and 2014.



Concentration of Credit and Business Risks



Our customers are located in U.S., Europe and Asia.



As of March 31, 2015, one customer represented approximately 68% of the Company’s accounts receivable.



As of December 31, 2014, three customers represented approximately 87% of the Company’s accounts receivable.



Our net revenues for the three months ended March 31, 2015 were earned from twenty-four customers. Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2015 are as follows:



	●	Hewlett Packard Company – 30%
	●	Amazon -28%



Our net revenues for the three months ended March 31, 2014 were earned from fourteen customers. Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2014 are as follows:



	●	Leap Frog – 30%
	●	Sony Corporation – 16%
	●	Netronix Inc. – 14%
	●	KOBO Inc. – 11%



Revenue Recognition



Licensing Revenues:



We derive revenue from the licensing of internally developed intellectual property (“IP”). We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. Fees under these agreements may include license fees relating to our IP and royalties payable following the distribution by our licensees of products incorporating the licensed technology. The license for our IP has standalone value and can be used by the licensee without maintenance and support. We follow U.S. GAAP for revenue recognition as per unit royalty products are distributed or licensed by our customers. For technology license arrangements that do not require significant modification or customization of the underlying technology, we recognize technology license revenue when: (1) we enter into a legally binding arrangement with a customer for the license of technology; (2) the customer distributes or licenses the products; (3) the customer payment is deemed fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is reasonably assured. Our customers report to us the quantities of products distributed or licensed by them after the end of the reporting period stipulated in the contract, generally 30 to 45 days after the end of the month or quarter. We recognize licensing revenue in the period in which royalty reports are received, rather than the period in which the products are distributed or to which the license relates.



Explicit return rights are not offered to customers. There have been no returns through March 31, 2015.



Engineering Services:



We may sell engineering consulting services to our customers on a flat rate or hourly rate basis. We recognize revenue from these services when all of the following conditions are met: (1) evidence existed of an arrangement with the customer, typically consisting of a purchase order or contract; (2) our services were performed and risk of loss passed to the customer; (3) we completed all of the necessary terms of the contract; (4) the amount of revenue to which we were entitled was fixed or determinable; and (5) we believed it was probable that we would be able to collect the amount due from the customer. To the extent that one or more of these conditions has not been satisfied, we defer recognition of revenue.



Generally, we recognize revenue as the engineering services stipulated under the contract are completed and accepted by our customers. Engineering services are performed under a signed Statement of Work (“SOW”) with a customer. The deliverables and payment terms stipulated under the SOW provide guidance on the project revenue recognition.



Revenues from contracts that are short-term in nature and related costs that are difficult to estimate are accounted for under the completed contract method.



Revenues from contracts with substantive defined milestones that we have determined are reasonable, relevant to all the deliverables and payment terms in the SOW that are commensurate with the efforts required to achieve the milestones are recognized under the milestone recognition method.



Estimated losses on all SOW projects are recognized in full as soon as they become evident.



Deferred Revenues



From time-to-time we receive pre-payments from our customers related to future services or future license fee revenues. We defer the license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed and royalty reports are received. Engineering development fee revenues are deferred until such time as the engineering work has been completed and accepted by our customers.



Advertising



Advertising costs are expensed as incurred. Advertising costs for the three months ended March 31, 2015 and 2014 amounted to approximately $20,000 and $106,000, respectively.



Product Research and Development



Research and development (“R&D”) costs are expensed as incurred. R&D costs consist mainly of personnel related costs in addition to some external consultancy costs such as testing, certifying and measurements.



Stock-Based Compensation Expense



We measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the estimated fair value of the award on the grant date, and recognize the value as compensation expense over the period the employee is required to provide services in exchange for the award, usually the vesting period, net of estimated forfeitures.



We account for equity instruments issued to non-employees at their estimated fair value. The measurement date for the estimated fair value for the equity instruments issued is determined at the earlier of (1) the date at which a commitment for performance by the consultant or vendor is reached, or (2) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instruments is primarily recognized over the term of the consulting agreement. The estimated fair value of the stock-based compensation is periodically re-measured and income or expense is recognized during the vesting term.



When determining stock-based compensation expense involving options and warrants, we determine the estimated fair value of options and warrants using the Black-Scholes option pricing model.



Income Taxes



We recognize deferred tax liabilities and assets for the expected future tax consequences of items that have been included in the consolidated financial statements or tax returns. We estimate income taxes based on rates in effect in each of the jurisdictions in which we operate. Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The realization of deferred tax assets is based on historical tax positions and expectations about future taxable income. Valuation allowances are recorded against net deferred tax assets when, in our opinion, realization is uncertain based on the “more likely than not” criteria of the accounting guidance.



Based on the uncertainty of future pre-tax income, we fully reserved our net deferred tax assets as of March 31, 2015 and December 31, 2014. In the event we were to determine that we would be able to realize our deferred tax assets in the future, an adjustment to the deferred tax asset would increase income in the period such determination was made. The provision for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period.



We follow U.S. GAAP related to uncertain tax positions, which provisions include a two-step approach to recognizing, de-recognizing and measuring uncertain tax positions. As a result, we did not recognize a liability for unrecognized tax benefits. As of March 31, 2015 and December 31, 2014, we had no unrecognized tax benefits.



Net Loss per Share



Net loss per share amounts have been computed based on the weighted average number of shares of common stock outstanding during the three months ended March 31, 2015 and 2014. Net loss per share, assuming dilution amounts from common stock equivalents, is computed based on the weighted-average number of shares of common stock and potential common stock equivalents outstanding during the period. The weighted-average number of shares of common stock and potential common stock equivalents used in computing the net loss per share for the three months ended March 31, 2015 and 2014 exclude the potential common stock equivalents, as the effect would be anti-dilutive (See Note 8).



Other Comprehensive Income



Our other comprehensive income includes foreign currency translation gains and losses. The cumulative amount of translation gains and losses are reflected as a separate component of stockholders’ equity in the consolidated balance sheets as accumulated other comprehensive income.



Cash Flow Information



Cash flows in foreign currencies have been converted to U.S. dollars at an approximate weighted-average exchange rate for the respective reporting periods. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 8.32 and 6.46 Swedish Krona to one U.S. Dollar for the three months ended March 31, 2015 and 2014, respectively. The exchange rate for the condensed consolidated balance sheets was 8.60 and 7.80 Swedish Krona to one U.S. Dollar as of March 31, 2015 and December 31, 2014, respectively. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 119.15 and 102.82 Japanese Yen to one U.S. Dollar for the three months ended March 31, 2015 and 2014, respectively. The exchange rate for the condensed consolidated balance sheets was 119.63 and 119.93 Japanese Yen to one U.S. Dollar as of March 31, 2015 and December 31, 2014, respectively. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 1,100.00 South Korean Won to one U.S. Dollar for the three months ended March 31, 2015. The exchange rate for the condensed consolidated balance sheets was 1,104.97 and 1,096.73 South Korean Won to one U.S. Dollar as of March 31, 2015 and December 31, 2014, respectively. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 31.56 Taiwan Dollar to one U.S. Dollar for the three months ended March 31, 2015. The exchange rate for the condensed consolidated balance sheet was 31.20 Taiwan Dollar to one U.S. Dollar as of March 31, 2015.



Fair Value of Financial Instruments



We disclose the estimated fair values for all financial instruments for which it is practicable to estimate fair value. Financial instruments including cash, accounts receivable, accounts payable and accrued expenses are deemed to approximate fair value due to their short maturities.



New Accounting Pronouncements



In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. On April 29, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of the reporting periods beginning after December 15, 2016. We have not yet selected a transition method and are currently assessing the impact the adoption of ASU 2014-09 will have on our consolidated financial statements and disclosures.



In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments in this update provide guidance in U.S. GAAP about management's responsibilities to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The main provision of the amendments are for an entity's management, in connection with the preparation of financial statements, to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Management's evaluation should be based on relevant conditions and events that are known or reasonably knowable at the date the consolidated financial statements are issued. When management identifies conditions or events that raise substantial doubt about an entity's ability to continue as a going concern, the entity should disclose information that enables users of the consolidated financial statements to understand all of the following: (1) principal conditions or events that raised substantial doubt about the entity's ability to continue as a going concern (before consideration of management's plans); (2) management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations; and (3) management's plans that alleviated substantial doubt about the entity's ability to continue as a going concern or management's plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity's ability to continue as a going concern. The amendments in this update are effective for interim and annual reporting periods beginning after December 15, 2016 and early application is permitted. We are currently assessing this guidance for future implementation.

Deferred_Revenues

Deferred Revenues	3 Months Ended
Deferred Revenues	Mar. 31, 2015
Deferred Revenues [Abstract]
Deferred Revenues	3. Deferred Revenues



	We defer license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed and royalty reports are received. Engineering development fee revenues are deferred until such time as the engineering work has been completed and accepted by our customers. As of March 31, 2015 and December 31, 2014, we had $2.3 million and $3.0 million, respectively, of deferred license fee revenue related to prepayments for future license fees from five customers, and a total of $1.8 million and $0.4 million, respectively, of deferred engineering development fees from three and five customers, respectively.

Stockholders_Equity

Stockholders' Equity

3 Months Ended

Mar. 31, 2015

Stockholders' Equity [Abstract]

Stockholders' Equity

4. Stockholders’ Equity

Common Stock

During the three months ended March 31, 2015, there were no activities that affected common stock.

Preferred Stock

We have one class of preferred stock outstanding. The terms of the Series B Preferred stock are as follows:

Dividends and Distributions

The holders of shares of Series B Preferred stock are entitled to participate with the holders of our common stock with respect to any dividends declared on the common stock in proportion to the number of shares of common stock issuable upon conversion of the shares of Series B Preferred stock held by them.

Liquidation Preference

In the event of any liquidation, dissolution, or winding up of our operations, either voluntary or involuntary, subject to the rights of the Series B Preferred stock and Senior Preferred stock, shall be entitled to receive, after any distribution to the holders of senior preferred stock and prior to and in preference to any distribution to the holders of common stock, $0.001 for each share of Series B Preferred stock then outstanding.

Voting

The holders of shares of Series B Preferred stock have one vote for each share of Series B Preferred stock held by them.

Conversion

Initially, each share of Series B Preferred stock was convertible into one share of our common stock. On March 31, 2009, our stockholders approved a resolution to increase the authorized share capital, and to increase the conversion ratio to 132.07 shares of our common stock for each share of Series B Preferred stock.

Conversion of Preferred Stock Issued to Common Stock

The following table summarizes the amounts as of March 31, 2015.

Shares of Preferred Stock Not Exchanged as of

Conversion Ratio

Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged at

31-Mar-15

Series B Preferred stock

132.07

10,962

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
Stock-Based Compensation	Mar. 31, 2015
Stock-Based Compensation [Abstract]
Stock-Based Compensation	5. Stock-Based Compensation



	The stock-based compensation expense for the three months ended March 31, 2015 and 2014 reflects the estimated fair value of the vested portion of options granted to employees, directors and eligible consultants. In addition, on March 3, 2015, the Company issued to certain Swedish employees an aggregate of 265,000 immediately vested options to purchase shares of the Company’s common stock at an exercise price of $4.15 per share that expire on March 3, 2018. Under Sweden law, the employees are required to purchase the stock options from the Company that was recorded as stock-based compensation expense. The purchase price of the stock options was determined to be $0.70 per option for a total amount of $185,500. At the discretion of the Board of Directors, the Company absorbed the cost and recorded the amount as a bonus to these employees on date of grant. Stock-based compensation expense in the accompanying condensed consolidated statements of operations is as follows (in thousands):



			Three months ended
			March 31,
			2015				2014
	Product research and development		$	223			$	268
	Sales and marketing			106				175
	General and administrative			269				629
	Total stock-based compensation expense		$	598			$	1,072



			Remaining unrecognized
			expense at
			31-Mar-15
	Stock-based compensation		$	1,180



	The remaining unrecognized expense related to stock options will be recognized on a straight line basis monthly as compensation expense over the remaining vesting period, which approximates 2.0 years.



	The estimated fair value of stock-based awards is calculated using the Black-Scholes option pricing model, even though this model was developed to estimate the fair value of freely tradable, fully transferable options without vesting restrictions, which differ significantly from our stock options. The Black-Scholes model also requires subjective assumptions, including future stock price volatility and expected time to exercise, which greatly affect the calculated values. The expected term and forfeiture rate of options granted is derived from historical data on employee exercises and post-vesting employment termination behavior, as well as expected behavior on outstanding options. The risk-free rate is based on the U.S. Treasury rates in effect during the corresponding period of grant. The expected volatility is based on the historical volatility of our stock price. These factors could change in the future, which would affect fair values of stock options granted in such future periods, and could cause volatility in the total amount of the stock-based compensation expense reported in future periods.



	Stock Options



	We have adopted equity incentive plans for which stock options and restricted stock awards are available to grant to employees, consultants and directors. Except for the 265,000 options issued to certain Swedish employees (see above), all employee, consultant and director stock options granted under our stock option plans have an exercise price equal to the market value of the underlying common stock on the grant date. There are no vesting provisions tied to performance conditions for any options, as vesting for all outstanding option grants was based only on continued service as an employee, consultant or director. All of our outstanding stock options and restricted stock awards are classified as equity instruments.



	As of March 31, 2015 we had two equity incentive plans:



		●	The 1998 Non-Officer Stock Option Plan (the “1998 Plan”), which expired in June 2008; and
		●	The 2006 Equity Incentive Plan, (the “2006 Plan”).



	We also had one non-employee director stock option plan as of March 31, 2015:



		●	The 2001 Non-Employee Director Stock Option Plan (the “Director Plan”), which expired in March 2011.



	A summary of the combined activity under all of the stock option plans is set forth below:



			Number of Options Outstanding				Weighted Average Exercise Price
	Outstanding at January 1, 2015			1,709,400			$	4.92
Granted			575,000				3.55
Expired/forfeited			(3,200	)			86.25
Outstanding at March 31, 2015			2,281,200			$	4.46



The aggregate intrinsic value of the 2,281,200 stock options that are outstanding, vested and expected to vest as of March 31, 2015 was $83,000.



For the three months ended March 31, 2015 and 2014, we recorded $0.6 million and $1.1 million, respectively, of compensation expense related to the vesting of stock options, including options granted to certain Swedish employees, as described above. The fair value of the stock-based compensation was calculated using the Black-Scholes option pricing model as of the date of grant of the stock option.



During the three months ended March 31, 2015, we granted options to purchase 485,000 shares of our common stock to employees and options to purchase 90,000 shares of our common stock to four members of our board of directors with a grant date fair value of $0.6 million computed using the Black-Scholes option pricing model. The total options granted includes 265,000 options issued to certain Swedish employees, as described above. The weighted-average grant date fair value of the options granted during the three months ended March 31, 2015 was $3.55 per share.



See below for assumptions used in the valuation of stock options:



		For the three months
		ended March 31, 2015

Annual dividend yield		-
Expected life (years)		1.50 - 4.24
Risk-free interest rate		0.47% - 1.41%
Expected volatility		70% - 72%



The 1998 Plan terminated effective June 15, 2008. Although we can no longer issue stock options out of the plans, the outstanding options at the date of termination will remain outstanding and vest in accordance with their terms. Options granted under the Director Plan vested over a one to four-year period, expire five to seven years after the date of grant and have exercise prices reflecting market value of the shares of our common stock on the date of grant. Stock options granted under the 1998 and 2006 Plans are exercisable over a maximum term of ten years from the date of grant, vest in various installments over a one to four-year period and have exercise prices reflecting the market value of the shares of common stock on the date of grant.



Warrants



A summary of all warrant activity is set forth below:



		31-Mar-15
Outstanding and exercisable		Warrants				Weighted Average Exercise Price				Weighted Average
Outstanding and exercisable		Warrants				Weighted Average Exercise Price				Remaining Contractual Life
1-Jan-15			3,335,073			$	4.45				0.93
Granted			--				--				--
Expired/cancelled			--				--				--
Exercised			--				--				--
Outstanding and exercisable, March 31, 2015			3,335,073			$	4.45				0.69



Outstanding Warrants to Purchase
Common Stock as of March 31, 2015:

Description		Issue Date		Exercise				Shares				Expiration
Description		Issue Date		Price				Shares				Date

August 2009 Employee Warrants		8/25/09		$	0.5				80,000			8/25/16
2007 Debt Extension Warrants		9/22/10		$	1				16,000			9/22/15
December 2010 Employee Warrants		12/3/10		$	1.63				200,000			12/3/15
February 2011 Legal Advisor Warrant		2/22/11		$	2.5				80,000			2/22/16
March 2011 Investor Warrants		3/9/11		$	3.13				349,973			3/9/16
March 2011 Investor Warrants		4/7/11		$	3.13				34,100			4/7/16
May 2014 Agent Warrant		5/15/14		$	5.09				75,000			11/15/15
May 2014 Investor Warrant		5/15/14		$	5.09				2,500,000			11/15/15
Total Warrants Outstanding									3,335,073

Commitments_and_Contingencies

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Mar. 31, 2015
Commitments and Contingencies [Abstract]
Commitments and Contingencies	6. Commitments and Contingencies



	Indemnities and Guarantees



	We have agreed to indemnify each of our executive officers and directors for certain events or occurrences arising as a result of the officer or director serving in such capacity. The term of the indemnification period is for the officer’s or director’s lifetime. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited. However, we have a directors’ and officers’ liability insurance policy that should enable us to recover a portion of future amounts paid. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal and have no liabilities recorded for these agreements as of March 31, 2015 and December 31, 2014.



	We enter into indemnification provisions under our agreements with other companies in the ordinary course of business, typically with business partners, contractors, customers and landlords. Under these provisions we generally indemnify and hold harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of our activities or, in some cases, as a result of the indemnified party’s activities under the agreement. These indemnification provisions often include indemnifications relating to representations made by us with regard to intellectual property rights. These indemnification provisions generally survive termination of the underlying agreement. The maximum potential amount of future payments we could be required to make under these indemnification provisions is unlimited. We have not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, we believe the estimated fair value of these agreements is minimal. Accordingly, we have no liabilities recorded for these indemnification provisions as of March 31, 2015 and December 31, 2014.



	Non-Recurring Engineering Development Costs



	On February 4, 2011, we entered into an Analog Device Development Agreement with an effective date of January 24, 2010 (the “NN1001 Agreement”) with Texas Instruments (“TI”) pursuant to which TI integrated Neonode’s intellectual property into an Application Specific Integrated Circuit (“ASIC”) developed by TI. The NN1001 ASIC only can be sold by TI exclusively to licensees of Neonode. Under the terms of the NN1001 Agreement, we will reimburse TI up to $500,000 of non-recurring engineering (“NRE”) development costs based on shipments of the NN1001. Under the terms of the NN1001 Agreement, we will reimburse TI an NRE fee of $0.08 per unit for each of the first one million units sold and $0.05 for the next eight million units sold. During the three months ended March 31, 2015 and 2014, approximately $20,000 and $31,000, respectively, of NRE expense related to the NN1001 Agreement is included in product research and development in the condensed consolidated statements of operations. Through March 31, 2015, we made no payments under the NN1001 Agreement and there is approximately $81,000 included in our accrued expenses as of March 31, 2015.



	On April 25, 2013, we entered into an additional Analog Device Development Agreement with an effective date of December 6, 2012 (the “NN1002 Agreement”) with TI pursuant to which TI will integrate our intellectual property into an ASIC developed by TI. The NN1002 ASIC only can be sold by TI exclusively to licensees of Neonode. Under the terms of the NN1002 Agreement, we will reimburse TI up to $500,000 of NRE costs based on shipments of the NN1002. Under the terms of the NN1002 Agreement we will reimburse TI an NRE fee of $0.25 per unit for each of the first two million units sold. The NN1002 is currently in development and has not been released to mass production. Through March 31, 2015, we had made no payments under the NN1002 Agreement.

Segment_Information

Segment Information	3 Months Ended
Segment Information	Mar. 31, 2015
Segment Information [Abstract]
Segment Information	7. Segment Information



	We have one reportable segment, which is comprised of the touch technology licensing business. All of our sales for the three months ended March 31, 2015 and 2014 were to customers located in the U.S., Europe and Asia. Of our total assets, 77% and 85% were held in the U.S. as of March 31, 2015 and December 31, 2014, respectively, and 20% and 14% were held in Sweden, respectively.



	The following table presents net revenues by geographic region for the three months ended March 31, 2015 and 2014 (in thousands):



		Three months ended					Three months ended
		31-Mar-15					31-Mar-14
		Amount		Percentage			Amount		Percentage
	Net revenues from customers in the Americas	$	1,693		75	%	$	668		66	%
	Net revenues from customers in Asia		413		18	%		321		32	%
	Net revenues from customers in Europe		157		7	%		25		2	%
		$	2,263		100	%	$	1,014		100	%

Net_Loss_Per_Share

Net Loss Per Share	3 Months Ended
	Mar. 31, 2015
Net Loss Per Share [Abstract]
Net Loss Per Share	8. Net Loss per Share



	Basic net loss per common share for the three months ended March 31, 2015 and 2014 was computed by dividing the net loss for the relevant period by the weighted average number of shares of common stock outstanding. Diluted loss per common share is computed by dividing net loss by the weighted average number of shares of common stock and common stock equivalents outstanding.



	Potential common stock equivalents of approximately 2.3 million and 0.5 million outstanding stock options and 3.3 million and 0.5 million outstanding stock warrants under the treasury stock method, and 11,000 shares issuable upon conversion of preferred stock are excluded from the diluted earnings per share calculation for the three months ended March 31, 2015 and 2014, respectively, due to their anti-dilutive effect.



	(in thousands, except per share amounts)	Three months ended
		March 31,
		2015			2014
	BASIC AND DILUTED
	Weighted average number of common shares outstanding		40,455			37,941
	Net loss	$	(2,072	)	$	(4,008	)

	Net loss per share - basic and diluted	$	(0.05	)	$	(0.11	)

Subsequent_Events

Subsequent Events	3 Months Ended
Subsequent Events	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	9. Subsequent Events



	We have evaluated subsequent events through the filing date of this Form 10-Q, and determined that no subsequent events have occurred that would require recognition in the condensed consolidated financial statements or disclosure in the notes thereto other than as discussed in the accompanying notes.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Principles of Consolidation	Principles of Consolidation



	The consolidated financial statements have been prepared in accordance with U.S. GAAP and include the accounts of Neonode Inc. and its wholly owned subsidiaries. All inter-company accounts and transactions have been eliminated in consolidation.



	The unaudited condensed consolidated balance sheet at March 31, 2015 and the condensed consolidated statements of operations, comprehensive loss and cash flows for the three months ended March 31, 2015, include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.), Neno User Interface Solutions AB (Sweden), Neonode Korea Ltd. (South Korea) and Neonode Taiwan Ltd. (Taiwan).



	The audited condensed consolidated balance sheet at December 31, 2014 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.), Neno User Interface Solutions AB (Sweden) and Neonode Korea Ltd. (South Korea).



	The unaudited condensed consolidated statements of operations, comprehensive loss and cash flows for the three months ended March 31, 2014 include our accounts and those of our wholly owned subsidiaries, Neonode Technologies AB (Sweden), Neonode Americas Inc. (U.S.), Neonode Japan Inc. (Japan), NEON Technology Inc. (U.S.) and Neno User Interface Solutions AB (Sweden).

Estimates	Estimates



	The preparation of financial statements in conformity with U.S. GAAP requires making estimates and assumptions that affect, at the date of the financial statements, the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses. Actual results could differ from these estimates. Significant estimates include, but are not limited to, collectability of accounts receivable,the achievement of substantive milestones and vendor-specific objective evidence (“VSOE”) of fair value for purposes of revenue recognition (or deferral of revenue), recoverability of capitalized project costs and long-lived assets, the valuation allowance related to our deferred tax assets and the fair value of options and warrants issued for stock-based compensation.
Concentration of Cash Balance Risks	Concentration of Cash Balance Risks



	Cash balances are maintained at various banks in the U.S., Japan, Korea, Taiwan and Sweden. At times, deposits held with financial institutions in the U.S. may exceed the amount of insurance provided by the U.S. Federal Deposit Insurance Corporation, which provides basic deposit coverage with limits up to $250,000 per owner. The Swedish government provides insurance coverage up to 100,000 Euro per customer and covers deposits in all types of accounts. The Japanese government provides insurance coverage up to 10,000,000 Yen per customer. The Korea Deposit Insurance Corporation provides insurance coverage up to 50,000,000 Won per customer. The Central Deposit Insurance Corporation in Taiwan provides insurance coverage up to 3,000,000 Taiwan Dollar per customer. As of March 31, 2015, we had approximately $4.0 million in excess of insurance limits.
Accounts Receivable and Allowance for Doubtful Accounts	Accounts Receivable and Allowance for Doubtful Accounts



	Our accounts receivable are stated at net realizable value. Our policy is to maintain allowances for estimated losses resulting from the inability of our customers to make required payments. Credit limits are established through a process of reviewing the financial history and stability of each customer. Where appropriate, we obtain credit rating reports and financial statements of the customer when determining or modifying its credit limits. We regularly evaluate the collectability of our trade receivable balances based on a combination of factors. When a customer’s account balance becomes past due, we initiate dialogue with the customer to determine the cause. If it is determined that the customer will be unable to meet its financial obligation, such as in the case of a bankruptcy filing, deterioration in the customer’s operating results or financial position or other material events impacting its business, we record a specific allowance to reduce the related receivable to the amount we expect to recover. Should all efforts fail to recover the related receivable, we will write-off the account. We also record an allowance for all customers based on certain other factors including the length of time the receivables are past due and historical collection experience with customers. Our allowance for doubtful accounts was $167,000 as of March 31, 2015 and December 31, 2014.
Projects in Process	Projects in Process



	Projects in process consist of costs incurred toward the completion of various projects for certain customers. These costs are primarily comprised of direct engineering labor costs and project-specific equipment costs. These costs are capitalized on our consolidated balance sheet as an asset and deferred until revenue for each project is recognized in accordance with our revenue recognition policy. Costs capitalized in projects in process were $613,000 and $200,000 as of March 31, 2015 and December 31, 2014, respectively.
Property and Equipment	Property and Equipment



	Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method based upon estimated useful lives of the assets as follows:



	Estimated useful lives



	Computer equipment		3 years
	Furniture and fixtures		5 years



	Equipment purchased under capital leases is amortized on a straight-line basis over the estimated useful life of the asset or the term of the lease, whichever is shorter.



	Upon retirement or sale of property and equipment, cost and accumulated depreciation and amortization are removed from the accounts and any gains or losses are reflected in the consolidated statement of operations. Maintenance and repairs are charged to expense as incurred.
Long-lived Assets	Long-lived Assets



	We assess any impairment by estimating the future cash flow from the associated asset in accordance with relevant accounting guidance. If the estimated undiscounted future cash flow related to these assets decreases or the useful life is shorter than originally estimated, we may incur charges for impairment of these assets. As of March 31, 2015, we believe there was no impairment of our long-lived assets. There can be no assurance, however, that market conditions will not change or sufficient demand for our products and services will continue, which could result in impairment of long-lived assets in the future.
Foreign Currency Translation and Transaction Gains and Losses	Foreign Currency Translation and Transaction Gains and Losses



	The functional currency of our foreign subsidiaries is the applicable local currency, the Swedish Krona, the Japanese Yen, the South Korean Won and the Taiwan Dollar. The translation from Swedish Krona, Japanese Yen, South Korean Won and Taiwan Dollar to U.S. Dollars is performed for balance sheet accounts using current exchange rates in effect at the balance sheet date and for income statement accounts using a weighted-average exchange rate during the period. Gains or (losses) resulting from translation are included as a separate component of accumulated other comprehensive income (loss). Foreign currency translation gains were $2,000 and $35,000 during the three months ended March 31, 2015 and 2014, respectively. Gains or (losses) resulting from foreign currency transactions are included in general and administrative expenses in the accompanying consolidated statements of operations and were $26,000 during the three months ended March 31, 2015 and 2014.
Concentration of Credit and Business Risks	Concentration of Credit and Business Risks



	Our customers are located in U.S., Europe and Asia.



	As of March 31, 2015, one customer represented approximately 68% of the Company’s accounts receivable.



	As of December 31, 2014, three customers represented approximately 87% of the Company’s accounts receivable.



	Our net revenues for the three months ended March 31, 2015 were earned from twenty-four customers. Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2015 are as follows:



		●	Hewlett Packard Company – 30%
		●	Amazon -28%



	Our net revenues for the three months ended March 31, 2014 were earned from fourteen customers. Customers who accounted for 10% or more of our net revenues during the three months ended March 31, 2014 are as follows:



		●	Leap Frog – 30%
		●	Sony Corporation – 16%
		●	Netronix Inc. – 14%
		●	KOBO Inc. – 11%
Revenue Recognition	Revenue Recognition



	Licensing Revenues:



	We derive revenue from the licensing of internally developed intellectual property (“IP”). We enter into IP licensing agreements that generally provide licensees the right to incorporate our IP components in their products with terms and conditions that vary by licensee. Fees under these agreements may include license fees relating to our IP and royalties payable following the distribution by our licensees of products incorporating the licensed technology. The license for our IP has standalone value and can be used by the licensee without maintenance and support. We follow U.S. GAAP for revenue recognition as per unit royalty products are distributed or licensed by our customers. For technology license arrangements that do not require significant modification or customization of the underlying technology, we recognize technology license revenue when: (1) we enter into a legally binding arrangement with a customer for the license of technology; (2) the customer distributes or licenses the products; (3) the customer payment is deemed fixed or determinable and free of contingencies or significant uncertainties; and (4) collection is reasonably assured. Our customers report to us the quantities of products distributed or licensed by them after the end of the reporting period stipulated in the contract, generally 30 to 45 days after the end of the month or quarter. We recognize licensing revenue in the period in which royalty reports are received, rather than the period in which the products are distributed or to which the license relates.



	Explicit return rights are not offered to customers. There have been no returns through March 31, 2015.



	Engineering Services:



	We may sell engineering consulting services to our customers on a flat rate or hourly rate basis. We recognize revenue from these services when all of the following conditions are met: (1) evidence existed of an arrangement with the customer, typically consisting of a purchase order or contract; (2) our services were performed and risk of loss passed to the customer; (3) we completed all of the necessary terms of the contract; (4) the amount of revenue to which we were entitled was fixed or determinable; and (5) we believed it was probable that we would be able to collect the amount due from the customer. To the extent that one or more of these conditions has not been satisfied, we defer recognition of revenue.



	Generally, we recognize revenue as the engineering services stipulated under the contract are completed and accepted by our customers. Engineering services are performed under a signed Statement of Work (“SOW”) with a customer. The deliverables and payment terms stipulated under the SOW provide guidance on the project revenue recognition.



	Revenues from contracts that are short-term in nature and related costs that are difficult to estimate are accounted for under the completed contract method.



	Revenues from contracts with substantive defined milestones that we have determined are reasonable, relevant to all the deliverables and payment terms in the SOW that are commensurate with the efforts required to achieve the milestones are recognized under the milestone recognition method.



	Estimated losses on all SOW projects are recognized in full as soon as they become evident.

Deferred Revenues	Deferred Revenues



	From time-to-time we receive pre-payments from our customers related to future services or future license fee revenues. We defer the license fees until we have met all accounting requirements for revenue recognition as per unit royalty products are distributed and royalty reports are received. Engineering development fee revenues are deferred until such time as the engineering work has been completed and accepted by our customers.
Advertising	Advertising



	Advertising costs are expensed as incurred. Advertising costs for the three months ended March 31, 2015 and 2014 amounted to approximately $20,000 and $106,000, respectively.
Product Research and Development	Product Research and Development



	Research and development (“R&D”) costs are expensed as incurred. R&D costs consist mainly of personnel related costs in addition to some external consultancy costs such as testing, certifying and measurements.
Stock-Based Compensation Expense	Stock-Based Compensation Expense



	We measure the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the estimated fair value of the award on the grant date, and recognize the value as compensation expense over the period the employee is required to provide services in exchange for the award, usually the vesting period, net of estimated forfeitures.



	We account for equity instruments issued to non-employees at their estimated fair value. The measurement date for the estimated fair value for the equity instruments issued is determined at the earlier of (1) the date at which a commitment for performance by the consultant or vendor is reached, or (2) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instruments is primarily recognized over the term of the consulting agreement. The estimated fair value of the stock-based compensation is periodically re-measured and income or expense is recognized during the vesting term.



	When determining stock-based compensation expense involving options and warrants, we determine the estimated fair value of options and warrants using the Black-Scholes option pricing model.
Income Taxes	Income Taxes



	We recognize deferred tax liabilities and assets for the expected future tax consequences of items that have been included in the consolidated financial statements or tax returns. We estimate income taxes based on rates in effect in each of the jurisdictions in which we operate. Deferred income tax assets and liabilities are determined based upon differences between the financial statement and income tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The realization of deferred tax assets is based on historical tax positions and expectations about future taxable income. Valuation allowances are recorded against net deferred tax assets when, in our opinion, realization is uncertain based on the “more likely than not” criteria of the accounting guidance.



	Based on the uncertainty of future pre-tax income, we fully reserved our net deferred tax assets as of March 31, 2015 and December 31, 2014. In the event we were to determine that we would be able to realize our deferred tax assets in the future, an adjustment to the deferred tax asset would increase income in the period such determination was made. The provision for income taxes represents the net change in deferred tax amounts, plus income taxes paid or payable for the current period.



	We follow U.S. GAAP related to uncertain tax positions, which provisions include a two-step approach to recognizing, de-recognizing and measuring uncertain tax positions. As a result, we did not recognize a liability for unrecognized tax benefits. As of March 31, 2015 and December 31, 2014, we had no unrecognized tax benefits.
Net Loss Per Share	Net Loss per Share



	Net loss per share amounts have been computed based on the weighted average number of shares of common stock outstanding during the three months ended March 31, 2015 and 2014. Net loss per share, assuming dilution amounts from common stock equivalents, is computed based on the weighted-average number of shares of common stock and potential common stock equivalents outstanding during the period. The weighted-average number of shares of common stock and potential common stock equivalents used in computing the net loss per share for the three months ended March 31, 2015 and 2014 exclude the potential common stock equivalents, as the effect would be anti-dilutive (See Note 8).
Other Comprehensive Income	Other Comprehensive Income



	Our other comprehensive income includes foreign currency translation gains and losses. The cumulative amount of translation gains and losses are reflected as a separate component of stockholders’ equity in the consolidated balance sheets as accumulated other comprehensive income.
Cash Flow Information	Cash Flow Information



	Cash flows in foreign currencies have been converted to U.S. dollars at an approximate weighted-average exchange rate for the respective reporting periods. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 8.32 and 6.46 Swedish Krona to one U.S. Dollar for the three months ended March 31, 2015 and 2014, respectively. The exchange rate for the condensed consolidated balance sheets was 8.60 and 7.80 Swedish Krona to one U.S. Dollar as of March 31, 2015 and December 31, 2014, respectively. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 119.15 and 102.82 Japanese Yen to one U.S. Dollar for the three months ended March 31, 2015 and 2014, respectively. The exchange rate for the condensed consolidated balance sheets was 119.63 and 119.93 Japanese Yen to one U.S. Dollar as of March 31, 2015 and December 31, 2014, respectively. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 1,100.00 South Korean Won to one U.S. Dollar for the three months ended March 31, 2015. The exchange rate for the condensed consolidated balance sheets was 1,104.97 and 1,096.73 South Korean Won to one U.S. Dollar as of March 31, 2015 and December 31, 2014, respectively. The weighted-average exchange rate for the condensed consolidated statements of operations and comprehensive loss was 31.56 Taiwan Dollar to one U.S. Dollar for the three months ended March 31, 2015. The exchange rate for the condensed consolidated balance sheet was 31.20 Taiwan Dollar to one U.S. Dollar as of March 31, 2015.

Fair Value of Financial Instruments	Fair Value of Financial Instruments



	We disclose the estimated fair values for all financial instruments for which it is practicable to estimate fair value. Financial instruments including cash, accounts receivable, accounts payable and accrued expenses and are deemed to approximate fair value due to their short maturities.
New Accounting Pronouncements	New Accounting Pronouncements



	In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”). ASU 2014-09 amends the guidance for revenue recognition to replace numerous, industry specific requirements and converges areas under this topic with those of the International Financial Reporting Standards. The ASU implements a five-step process for customer contract revenue recognition that focuses on transfer of control, as opposed to transfer of risk and rewards. The amendment also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. Other major provisions include the capitalization and amortization of certain contract costs, ensuring the time value of money is considered in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. Entities can transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. On April 29, 2015, the FASB proposed deferring the effective date by one year to December 15, 2017 for annual reporting periods beginning after that date. The FASB also proposed permitting early adoption of the standard, but not before the original effective date of the reporting periods beginning after December 15, 2016. We have not yet selected a transition method and are currently assessing the impact the adoption of ASU 2014-09 will have on our consolidated financial statements and disclosures.



	In August 2014, the FASB issued ASU No. 2014-15, “Presentation of Financial Statements - Going Concern: Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments in this update provide guidance in U.S. GAAP about management's responsibilities to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures. The main provision of the amendments are for an entity's management, in connection with the preparation of financial statements, to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued. Management's evaluation should be based on relevant conditions and events that are known or reasonably knowable at the date the consolidated financial statements are issued. When management identifies conditions or events that raise substantial doubt about an entity's ability to continue as a going concern, the entity should disclose information that enables users of the consolidated financial statements to understand all of the following: (1) principal conditions or events that raised substantial doubt about the entity's ability to continue as a going concern (before consideration of management's plans); (2) management's evaluation of the significance of those conditions or events in relation to the entity's ability to meet its obligations; and (3) management's plans that alleviated substantial doubt about the entity's ability to continue as a going concern or management's plans that are intended to mitigate the conditions or events that raise substantial doubt about the entity's ability to continue as a going concern. The amendments in this update are effective for interim and annual reporting periods beginning after December 15, 2016 and early application is permitted. We are currently assessing this guidance for future implementation.

Summary_of_Significant_Account2

Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2015
Summary of Significant Accounting Policies [Abstract]
Estimated useful lives of property and equipment	Estimated useful lives



	Computer equipment	3 years
	Furniture and fixtures	5 years

Stockholders_Equity_Tables

Stockholders' Equity (Tables)

3 Months Ended

Mar. 31, 2015

Stockholders' Equity [Abstract]

Schedule of conversion of preferred stock issued to common stock

Shares of Preferred Stock Not Exchanged as of

Conversion Ratio

Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged at

31-Mar-15

Series B Preferred stock

132.07

10,962

StockBased_Compensation_Tables

Stock-Based Compensation (Tables)	3 Months Ended
Stock-Based Compensation (Tables)	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of stock-based compensation expense		Three months ended
		March 31,
		2015				2014
	Product research and development	$	223			$	268
	Sales and marketing		106				175
	General and administrative		269				629
	Total stock-based compensation expense	$	598			$	1,072



		Remaining unrecognized
		expense at
		31-Mar-15
	Stock-based compensation	$	1,180


Summary of assumptions used to value stock options granted to employees and directors		For the three months
		ended March 31, 2015

	Annual dividend yield	-
	Expected life (years)	1.50 - 4.24
	Risk-free interest rate	0.47% - 1.41%
	Expected volatility	70% - 72%


Summary of all warrant activity		31-Mar-15
	Outstanding and exercisable	Warrants				Weighted Average Exercise Price				Weighted Average
	Outstanding and exercisable	Warrants				Weighted Average Exercise Price				Remaining Contractual Life
	1-Jan-15		3,335,073			$	4.45				0.93
	Granted		--				--				--
	Expired/cancelled		--				--				--
	Exercised		--				--				--
	Outstanding and exercisable, March 31, 2015		3,335,073			$	4.45				0.69


Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of all stock option plans / warrant activity		Number of Options Outstanding				Weighted Average Exercise Price
	Outstanding at January 1, 2015		1,709,400			$	4.92
	Granted		575,000				3.55
	Expired/forfeited		(3,200	)			86.25
	Outstanding at March 31, 2015		2,281,200			$	4.46


Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Summary of all stock option plans / warrant activity	Description	Issue Date		Exercise				Shares				Expiration
	Description	Issue Date		Price				Shares				Date

	August 2009 Employee Warrants	8/25/09		$	0.5				80,000			8/25/16
	2007 Debt Extension Warrants	9/22/10		$	1				16,000			9/22/15
	December 2010 Employee Warrants	12/3/10		$	1.63				200,000			12/3/15
	February 2011 Legal Advisor Warrant	2/22/11		$	2.5				80,000			2/22/16
	March 2011 Investor Warrants	3/9/11		$	3.13				349,973			3/9/16
	March 2011 Investor Warrants	4/7/11		$	3.13				34,100			4/7/16
	May 2014 Agent Warrant	5/15/14		$	5.09				75,000			11/15/15
	May 2014 Investor Warrant	5/15/14		$	5.09				2,500,000			11/15/15
	Total Warrants Outstanding								3,335,073

Segment_Information_Tables

Segment Information (Tables)	3 Months Ended
Segment Information (Tables)	Mar. 31, 2015
Segment Information [Abstract]
Summary of net revenues by geographic region		Three months ended					Three months ended
		31-Mar-15					31-Mar-14
		Amount		Percentage			Amount		Percentage
	Net revenues from customers in the Americas	$	1,693		75	%	$	668		66	%
	Net revenues from customers in Asia		413		18	%		321		32	%
	Net revenues from customers in Europe		157		7	%		25		2	%
		$	2,263		100	%	$	1,014		100	%

Net_Loss_Per_Share_Tables

Net Loss Per Share (Tables)	3 Months Ended
Net Loss Per Share (Tables)	Mar. 31, 2015
Net Loss Per Share [Abstract]
Basic and diluted for net loss per share	(in thousands, except per share amounts)	Three months ended
	(in thousands, except per share amounts)	March 31,
		2015			2014
	BASIC AND DILUTED
	Weighted average number of common shares outstanding		40,455			37,941
	Net loss	$	(2,072	)	$	(4,008	)

	Net loss per share - basic and diluted	$	(0.05	)	$	(0.11	)

Interim_Period_Reporting_Detai

Interim Period Reporting (Details Textual) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2014
Interim Period Reporting [Abstract]
Net loss	($2,072)		($4,008)
Accumulated deficit	-168,001			-165,929
Net cash used in operating activities	($1,585)		($2,646)
Shares registered and available for issuance		5,000,000

Summary_of_Significant_Account3

Summary of Significant Accounting Policies (Details)	3 Months Ended
Summary of Significant Accounting Policies (Details)	Mar. 31, 2015
Computer equipment [Member]
Estimated useful lives of property and equipment
Estimated useful lives	3 years
Furniture and fixtures [Member]
Estimated useful lives of property and equipment
Estimated useful lives	5 years

Summary_of_Significant_Account4

Summary of Significant Accounting Policies (Details Textual)

3 Months Ended

12 Months Ended

3 Months Ended

12 Months Ended

3 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Dec. 31, 2014

Mar. 31, 2015

Dec. 31, 2014

Mar. 31, 2015

Mar. 31, 2014

Mar. 31, 2015

Mar. 31, 2014

Mar. 31, 2015

USD ($)

JPY (¥)

KRW

SEK

Accounts Receivable [Member]

Sales Revenue, Net [Member]

Hewlett Packard [Member]

Kobo Inc [Member]

Leap Frog Enterprises Inc [Member]

Netronix Inc [Member]

Sony Corporation [Member]

Amazon Inc [Member]

Customers

Sales Revenue, Net [Member]

Summary of Significant Accounting Policies (Textual)

Basic deposit coverage limits per owner and customer

$250,000

¥ 10,000,000

50,000,000

100,000

Allowance for doubtful accounts

167,000

Environmental Costs Recognized, Capitalized in Period

613,000

200,000

Foreign currency translation adjustments

2,000

35,000

Foreign currency translation included in general and administrative expense

26,000

Concentration risk, Percentage

68.00%

87.00%

10.00%

30.00%

11.00%

30.00%

14.00%

16.00%

28.00%

Advertising costs

20,000

106,000

Exchange rate for the consolidated balance sheets (Swedish Krona to one U.S. Dollar)

8.32

6.46

Excess of insurance limits

4,000,000

Weighted-average exchange rate for consolidated statements of operations (Japanese Yen to one U.S. Dollar)

119.15

102.82

Exchange rate for the consolidated balance sheets (Japanese Yen to one U.S. Dollar)

119.63

119.93

Weighted-average exchange rate for consolidated statements of operations (South Korean won to one U.S. Dollar)

1100.00%

Exchange rate for the consolidated balance sheets (South Korean Won to one U.S. Dollar )

1104.97%

1096.73%

Weighted-average exchange rate (Swedish Krona to one U.S. Dollar)

8.6

7.8

Number of customers

Central Deposit Insurance Corporation

$3,000,000

Weighted-average exchange rate (Taiwan Dollar to one U.S)

31.56

Exchange rate for the consolidated balance sheets (Taiwan Dollar to one U.S)

31.2

Deferred_Revenues_Details

Deferred Revenues (Details) (USD $)	3 Months Ended	12 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Dec. 31, 2014
	Customers	Customers
Deferred Revenues (Textual)
Deferred license fee revenue	$4,146	$3,403
Prepayments for Future License Fees [Member]
Deferred Revenues (Textual)
Deferred license fee revenue	2,300	3,000
Number of customer	5
Deferred Engineering Development Fees [Member]
Deferred Revenues (Textual)
Deferred license fee revenue	$1,800	$400
Number of customer	3	5

Stockholders_Equity_Details

Stockholders' Equity (Details) (Series B Preferred Stock [Member])	1 Months Ended	3 Months Ended
	Mar. 31, 2009	Mar. 31, 2015
Series B Preferred Stock [Member]
Schedule of conversion of preferred stock issued to common stock
Shares of Common Stock after Conversion of all Outstanding Shares of Preferred Stock Not yet Exchanged	132.07	10,962
Shares of Preferred Stock Not Exchanged		83
Conversion Ratio		132.07

Stockholders_Equity_Details_Te

Stockholders' Equity (Details Textual) (Series B Preferred Stock [Member], USD $)	1 Months Ended	3 Months Ended
	Mar. 31, 2009	Mar. 31, 2015	Dec. 31, 2014
Series B Preferred Stock [Member]
Stockholders' Equity (Textual)
Preferred stock, liquidation preference		$0.00	$0.00
Conversion of shares	132.07	10,962

StockBased_Compensation_Detail

Stock-Based Compensation (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Summary of stock-based compensation expense
Total stock based compensation expense	$598	$1,072
Remaining unrecognized expense of stock-based compensation	1,180
Product Research and Development [Member]
Summary of stock-based compensation expense
Total stock based compensation expense	223	268
Sales and Marketing [Member]
Summary of stock-based compensation expense
Total stock based compensation expense	106	175
General and Administrative [Member]
Summary of stock-based compensation expense
Total stock based compensation expense	$269	$629

StockBased_Compensation_Detail1

Stock-Based Compensation (Details 1) (Stock Options [Member], USD $)	3 Months Ended
	Mar. 31, 2015
Stock Options [Member]
Summary of all stock option plans
Number of Options/Warrants Outstanding, Beginning Balance	1,709,400
Number of Options Outstanding, Granted	575,000
Number of Options Outstanding, Granted, Expired/forfeited	-3,200
Number of Options/Warrants Outstanding, Ending Balance	2,281,200
Weighted Average Exercise Price, Outstanding, Beginning Balance	$4.92
Weighted Average Exercise Price, Granted	$3.55
Weighted Average Exercise Price, Expired/cancelled	$86.25
Weighted Average Exercise Price, Outstanding, Ending Balance	$4.46

StockBased_Compensation_Detail2

Stock-Based Compensation (Details 2)	3 Months Ended
Stock-Based Compensation (Details 2)	Mar. 31, 2015
Summary of assumptions used to value stock options granted to employees,directors and consultants
Annual dividend yield
Minimum [Member]
Summary of assumptions used to value stock options granted to employees,directors and consultants
Expected life (years)	1 year 6 months
Risk-free interest rate	0.47%
Expected volatility	70.00%
Maximum [Member]
Summary of assumptions used to value stock options granted to employees,directors and consultants
Expected life (years)	4 years 2 months 27 days
Risk-free interest rate	1.41%
Expected volatility	72.00%

StockBased_Compensation_Detail3

Stock-Based Compensation (Details 3) (Warrant [Member], USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Warrant [Member]
Summary of all stock option plans
Number of Options/Warrants Outstanding, Beginning Balance	3,335,073	828,573
Warrants, Granted
Warrants, Expired/cancelled
Warrants, Exercised
Number of Options/Warrants Outstanding, Ending Balance	3,335,073	3,335,073
Weighted Average Exercise Price, Outstanding, Beginning Balance	$4.45	$2.39
Weighted Average Exercise Price, Granted
Weighted Average Exercise Price, Expired/cancelled
Weighted Average Exercise Price, Exercised
Weighted Average Exercise Price, Outstanding, Ending Balance	$4.45	$4.45
Weighted Average Remaining Contractual Life, Outstanding and exercisable, January 1, 2015	8 months 9 days	11 months 5 days

StockBased_Compensation_Detail4

Stock-Based Compensation (Details 4) (USD $)	3 Months Ended
Stock-Based Compensation (Details 4) (USD $)	Mar. 31, 2015
Summary of outstanding warrants to purchase common stock
Shares	3,335,073
August 2009 Employee Warrants [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	25-Aug-09
Exercise Price	$0.50
Shares	80,000
Expiration Date	25-Aug-16
2007 Debt Extension Warrants [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	22-Sep-10
Exercise Price	$1
Shares	16,000
Expiration Date	22-Sep-15
December 2010 Employee Warrants [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	3-Dec-10
Exercise Price	$1.63
Shares	200,000
Expiration Date	3-Dec-15
February 2011 Legal Advisor Warrant [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	22-Feb-11
Exercise Price	$2.50
Shares	80,000
Expiration Date	22-Feb-16
March 2011 Investor Warrants [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	9-Mar-11
Exercise Price	$3.13
Shares	349,973
Expiration Date	9-Mar-16
March 2011 Investor Warrants [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	7-Apr-11
Exercise Price	$3.13
Shares	34,100
Expiration Date	7-Apr-16
May 2014 Agent Warrant [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	15-May-14
Exercise Price	$5.09
Shares	75,000
Expiration Date	15-Nov-15
May 2014 Investor Warrant [Member]
Summary of outstanding warrants to purchase common stock
Issue Date	15-May-14
Exercise Price	$5.09
Shares	2,500,000
Expiration Date	15-Nov-15

Stock_Based_Compensation_Detai

Stock Based Compensation (Details Textual) (USD $)	3 Months Ended
Stock Based Compensation (Details Textual) (USD $)	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Stock-Based Compensation (Textual)
Aggregate vested options to purchase shares	265,000
Exercise price	$4.15
Expire date	3-Mar-18
Purchase price of stock options per share	$0.70
Purchase price of stock options amount	$185,500
Vesting period	2 years
Share-based compensation expense	598,000	1,072,000
Stock Options [Member]
Stock-Based Compensation (Textual)
Aggregate vested options to purchase shares	265,000
Number of Options Outstanding	2,281,200		1,709,400
Options outstanding, vested and expected to vest, aggregate intrinsic value	83,000
Options granted to purchase of common stock to employee	485,000
Options granted to purchase of common stock to board members	90,000
Options granted to purchase of common stock to board members, fair value	$600,000
Weighted-average grant date fair value of the options granted per share	$3.55

Commitments_and_Contingencies_

Commitments and Contingencies (Details Textual) (USD $)	0 Months Ended		3 Months Ended
Commitments and Contingencies (Details Textual) (USD $)	Dec. 06, 2012	Jan. 24, 2010	Mar. 31, 2015	Mar. 31, 2014
Commitments and Contingencies (Textual)
Non-recurring engineering development costs contributed to TI	$500,000	$500,000
Description of NRE cost contributed to TI	Under the terms of the NN1002 Agreement we will reimburse TI an NRE fee of $0.25 per unit for each of the first two million units sold.	Under the terms of the NN1001 Agreement, we will reimburse TI an NRE fee of $0.08 per unit for each of the first one million units sold and $0.05 for the next eight million units sold.
NRE cost contributed for each of first one million unit sold, Per unit		$0.08
NRE cost contributed for next eight million unit sold, Per unit		$0.05
NRE fee contributed for each of first two million unit sold, Per unit	$0.25
Non recurring expense included in product research and development			20,000	31,000
Accounts payable under agreement			$81,000

Segment_Information_Details

Segment Information (Details) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
Summary of net revenues by geographic region
Net revenues	$2,263	$1,014
Revenues percentage	100.00%	100.00%
Americas [Member]
Summary of net revenues by geographic region
Net revenues	1,693	668
Revenues percentage	75.00%	66.00%
Asia [Member]
Summary of net revenues by geographic region
Net revenues	413	321
Revenues percentage	18.00%	2.00%
Europe [Member]
Summary of net revenues by geographic region
Net revenues	$157	$25
Revenues percentage	7.00%	2.00%

Segment_Information_Details_Te

Segment Information (Details Textual)	3 Months Ended	12 Months Ended
Segment Information (Details Textual)	Mar. 31, 2015	Dec. 31, 2014
Segment Information (Textual)
Number of reportable segments	1
U.S. [Member]
Segment Information (Textual)
Percentage of sales	77.00%	85.00%
Sweden [Member]
Segment Information (Textual)
Percentage of sales	20.00%	14.00%

Net_Loss_Per_Share_Details

Net Loss Per Share (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
BASIC AND DILUTED
Weighted average number of common shares outstanding	40,455	37,941
Net loss	($2,072)	($4,008)
Net loss per shares basic and diluted	($0.05)	($0.11)

Net_Loss_Per_Share_Details_Tex

Net Loss Per Share (Details Textual)	3 Months Ended
Net Loss Per Share (Details Textual)	Mar. 31, 2015	Mar. 31, 2014
Stock Option [Member]
Net Loss Per Share (Textual)
Antidilutive securities excluded from computation of earnings per share	2,300,000	500,000
Warrant [Member]
Net Loss Per Share (Textual)
Antidilutive securities excluded from computation of earnings per share	3,300,000	500,000
Convertible Preferred Stock [Member]
Net Loss Per Share (Textual)
Antidilutive securities excluded from computation of earnings per share	11,000	11,000