Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 14, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | AMERICAN BIO MEDICA CORP | |
Entity Central Index Key | 896,747 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | ABMC | |
Entity Common Stock, Shares Outstanding | 26,032,930 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 433,000 | $ 352,000 |
Accounts receivable, net of allowance for doubtful accounts of $51,000 at June 30, 2015, and $47,000 at December 31, 2014 | 859,000 | 814,000 |
Inventory, net of allowance of $366,000 at June 30, 2015 and $324,000 at December 31, 2014 | 1,824,000 | 1,722,000 |
Current portion of deferred financing | 0 | 43,000 |
Prepaid expenses and other current assets | 96,000 | 85,000 |
Total current assets | 3,212,000 | 3,016,000 |
Property, plant and equipment, net | 942,000 | 983,000 |
Patents | 68,000 | 65,000 |
Other assets | 14,000 | 14,000 |
Deferred finance costs | 193,000 | 0 |
Total assets | 4,429,000 | 4,078,000 |
Current liabilities | ||
Accounts payable | 508,000 | 410,000 |
Accrued expenses and other current liabilities | 190,000 | 192,000 |
Wages payable | 318,000 | 264,000 |
Line of credit, net | 1,072,000 | 979,000 |
Current portion of long-term debt, net | 75,000 | 858,000 |
Total current liabilities | 2,163,000 | 2,703,000 |
Other liabilities | 68,000 | 68,000 |
Related party note | 124,000 | 124,000 |
Long-term debt | 923,000 | 213,000 |
Total liabilities | $ 3,278,000 | $ 3,108,000 |
COMMITMENTS AND CONTINGENCIES | ||
Stockholders' equity: | ||
Preferred stock; par value $.01 per share; 5,000,000 shares authorized, none issued and outstanding at June 30, 2015 and December 31, 2014 | ||
Common stock; par value $.01 per share; 50,000,000 shares authorized; 26,032,930 issued and outstanding at June 30, 2015 and 23,648,315 issued and outstanding at December 31, 2014 | $ 260,000 | $ 236,000 |
Additional paid-in capital | 20,641,000 | 20,356,000 |
Accumulated deficit | (19,750,000) | (19,622,000) |
Total stockholders’ equity | 1,151,000 | 970,000 |
Total liabilities and stockholders’ equity | $ 4,429,000 | $ 4,078,000 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Allowance For Doubtful Accounts Receivable, Current (in dollars) | $ 51,000 | $ 47,000 |
Inventory Valuation Reserves | $ 366,000 | $ 324,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 26,032,930 | 23,648,315 |
Common stock, shares outstanding | 26,032,930 | 23,648,315 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 1,768,000 | $ 1,811,000 | $ 3,270,000 | $ 3,854,000 |
Cost of goods sold | 919,000 | 1,020,000 | 1,721,000 | 2,186,000 |
Gross profit | 849,000 | 791,000 | 1,549,000 | 1,668,000 |
Operating expenses: | ||||
Research and development | 51,000 | 45,000 | 80,000 | 91,000 |
Selling and marketing | 309,000 | 267,000 | 608,000 | 559,000 |
General and administrative | 520,000 | 456,000 | 943,000 | 933,000 |
Operating Expenses, Total | 880,000 | 768,000 | 1,631,000 | 1,583,000 |
Operating income / (loss) | (31,000) | 23,000 | (82,000) | 85,000 |
Other (expense) / income: | ||||
Interest income | 0 | 0 | (1,000) | 1,000 |
Interest expense | (52,000) | (64,000) | (117,000) | (127,000) |
Other income, net | 72,000 | 10,000 | ||
Other Expenses, Total | (52,000) | (64,000) | (46,000) | (116,000) |
Net loss before tax | (83,000) | (41,000) | (128,000) | (31,000) |
Income tax expense | 0 | 0 | 0 | (1,000) |
Net loss | $ (83,000) | $ (41,000) | $ (128,000) | $ (32,000) |
Basic and diluted loss per common share (in dollars per share) | $ 0 | $ 0 | $ (0.01) | $ 0 |
Weighted average number of shares outstanding - basic and diluted (in shares) | 26,032,930 | 23,168,155 | 26,032,930 | 23,168,155 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net loss | $ (128,000) | $ (32,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation | 45,000 | 58,000 |
Loss on disposal of fixed assets | 0 | 1,000 |
Amortization of debt issuance costs | 164,000 | 152,000 |
Provision for bad debts | 4,000 | (12,000) |
Provision for slow moving and obsolete inventory | 42,000 | 15,000 |
Share-based payment expense | 18,000 | 19,000 |
Changes in: | ||
Accounts receivable | (49,000) | 145,000 |
Inventory | (144,000) | 127,000 |
Prepaid expenses and other current assets | (11,000) | 26,000 |
Accounts payable | 98,000 | (135,000) |
Accrued expenses and other current liabilities | (2,000) | (89,000) |
Wages payable | 54,000 | 17,000 |
Other liabilities | 0 | (79,000) |
Net cash provided by operating activities | 91,000 | 213,000 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (4,000) | (7,000) |
Patent application costs | (3,000) | (5,000) |
Net cash used in investing activities | (7,000) | (12,000) |
Cash flows from financing activities: | ||
(Payments) on debt financing | (1,070,000) | (133,000) |
Proceeds from refinance | 1,200,000 | 0 |
Deferred finance costs | (130,000) | 0 |
Proceeds from lines of credit | 3,483,000 | 3,469,000 |
Payments on lines of credit | (3,486,000) | (3,736,000) |
Net cash (used in) provided by financing activities | (3,000) | (400,000) |
Net increase / (decrease) in cash and cash equivalents | 81,000 | (199,000) |
Cash and cash equivalents - beginning of period | 352,000 | 646,000 |
Cash and cash equivalents - end of period | 433,000 | 447,000 |
Supplemental disclosures of cash flow information | ||
Cash paid during period for interest | 131,000 | 126,000 |
Cash paid for taxes | $ 0 | $ 0 |
Basis of Reporting
Basis of Reporting | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting [Text Block] | Note A - Basis of Reporting The accompanying unaudited interim condensed financial statements of American Bio Medica Corporation (the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Regulation S-X. Accordingly, these unaudited interim condensed financial statements do not include all information and footnotes required by U.S. GAAP for complete financial statement presentation. These unaudited interim condensed financial statements should be read in conjunction with our audited financial statements and related notes contained in our Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, the interim condensed financial statements include all normal, recurring adjustments which are considered necessary for a fair presentation of the financial position of the Company at June 30, 2015, the results of our operations for the three and six month periods ended June 30, 2015 and June 30, 2014, and cash flows for the six month periods ended June 30, 2015 and June 30, 2014. Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of results that may be expected for the year ending December 31, 2015. Amounts at December 31, 2014 are derived from our audited financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014. During the six months ended June 30, 2015, there were no significant changes to our critical accounting policies, which are included in our Annual Report on Form 10-K for the year ended December 31, 2014. The preparation of these interim condensed financial statements requires the Company to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate estimates, including those related to product returns, bad debts, inventories, income taxes, warranty obligations, contingencies and litigation. We base estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. These unaudited interim condensed financial statements have been prepared assuming that the Company will continue as a going concern and, accordingly, do not include any adjustments that might result from the outcome of this uncertainty. Our independent registered public accounting firm’s report on the financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014, contained an explanatory paragraph regarding our ability to continue as a going concern. As of the date of this report, our current cash balances, together with cash generated from future operations and amounts available under current credit facilities may not be sufficient to fund operations for the next 12 months if sales levels do not improve. If cash generated from operations is not sufficient to satisfy our working capital and capital expenditure requirements, we will be required to sell additional equity or obtain additional credit facilities. There is no assurance that such financing will be available or that we will be able to complete financing on satisfactory terms, if at all. Certain reclassifications have been made to the prior period to confirm to the presentation of the current period. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The Board received feedback that having different balance sheet presentation requirements for debt issuance costs and debt discount and premium creates unnecessary complexity. Recognizing debt issuance costs as a deferred charge (that is, an asset) also is different from the guidance in International Financial Reporting Standards (IFRS), which requires that transaction costs be deducted from the carrying value of the financial liability and not recorded as separate assets. Additionally, the requirement to recognize debt issuance costs as deferred charges conflicts with the guidance in FASB Concepts Statement No. 6, Elements of Financial Statements, which states that debt issuance costs are similar to debt discounts and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate. Concepts Statement 6 further states that debt issuance costs cannot be an asset because they provide no future economic benefit. To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. The Company is currently evaluating the effects of adopting this ASU, if it is deemed to be applicable. The Financial Accounting Standards Board has issued certain accounting standards, updates and regulations as of June 30, 2015 that will become effective in subsequent periods. We do not believe that any of those standards, updates or regulations would have significantly affected our financial accounting measures or disclosures had they been in effect during the three and six months ended June 30, 2015 or June 30, 2014, and we do not believe that any of them will have a significant impact on our financial statements at the time they become effective. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note B Inventory June 30, 2015 December 31, 2014 Raw Materials $ 1,174,000 $ 1,136,000 Work In Process 421,000 390,000 Finished Goods 595,000 520,000 Allowance for slow moving and obsolete inventory (366,000) (324,000) $ 1,824,000 $ 1,722,000 |
Net Loss Per Common Share
Net Loss Per Common Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note C Net Loss Per Common Share June 30, 2015 June 30, 2014 Warrants 3,303,000 3,224,000 Options 1,547,000 2,579,000 The number of securities not included in the diluted net loss per common share for the three and six months ended June 30, 2015 and the three and six months ended June 30, 2014 (because the effect would have been anti-dilutive) were 4,850,000 5,803,000 |
Litigation_Legal Matters
Litigation/Legal Matters | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies [Text Block] | Note D Litigation/Legal Matters From time to time, the Company is named in legal proceedings in connection with matters that arose during the normal course of business. While the ultimate result of any such litigation cannot be predicted, if the Company is unsuccessful in defending any such litigation, the resulting financial losses could have an adverse effect on the financial position, results of operations and cash flows of the Company. The Company is not aware of any significant litigation loss contingencies for which management believes it is both probable that a liability has been incurred and that the amount of the loss can be reasonably estimated. |
Line of Credit and Debt
Line of Credit and Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note E Line of Credit and Debt Our Line of Credit and Debt consisted of the following as of June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 First Niagara: Mortgage payable in equal monthly installments of $13,199 including interest at 8.25% until May 1, 2017 (“Maturity”), collateralized by the building, land and personal property (1) $ 0 $ 348,000 Debenture financing $523,000 in principal amount of Series A Debentures; interest at 15% per annum from August 1, 2013 through January 31, 2015, payable quarterly; maturity date of February 1, 2015 (2) 0 523,000 Bridge Loan with Cantone Asset Management, LLC (3) Interest rate of 15% payable upon loan maturity; maturity date of February 1, 2015 (3) 0 200,000 Loan and Security Agreement with Cherokee Financial, LLC (4) 1,200,000 0 Imperium Line of Credit (5) : Interest payable in arrears for the preceding calendar month on the first day of each calendar month at a rate of 8% per annum plus “PIK” interest at a 2% per annum. Unused line fee equal to 2% of the maximum amount available under the line, less the aggregate amounts outstanding to Imperium, payable on the first day of each calendar month. Collateral Monitoring Fee of $2,500 due on the first day of each month. Success fee of $175,000 if Imperium terminates due to an event of default, or if we terminate and pre-pay all amounts due to Imperium prior to the stated expiration date of January 16, 2016. 0 1,076,000 Crestmark Line of Credit (6) 1,072,000 0 2,272,000 2,147,000 Less debt discount (Cherokee Financial, LLC Loan) (202,000 ) (97,000 ) Total debt $ 2,070,000 $ 2,050,000 Current portion $ 1,147,000 $ 1,837,000 Long-term portion $ 923,000 $ 213,000 (1) The mortgage through First Niagara Bank was satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. (2) The Series A Debentures were satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. (3) The Bridge Loan with Cantone Asset Management, LLC was satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. (4) On March 26, 2015, the Company entered into a Loan and Security Agreement with Cherokee Financial, LLC (the “Cherokee LSA”). The purpose of the Cherokee LSA was to refinance the Series A Debentures and Cantone Asset Management LLC Bridge Loan (both of which matured on February 1, 2015) and the Mortgage Consolidation Loan with First Niagara Bank at a better interest rate. (5) On June 29, 2015, the Imperium Line of Credit was satisfied in Full via a refinancing with Crestmark Bank. (6) On June 29, 2015, the Company entered into a Loan and Security Agreement with Crestmark Bank. The purpose of the Crestmark LSA was to refinance the Company’s line of credit with Imperium at a better interest rate. FIRST NIAGARA: MORTGAGE CONSOLIDATION LOAN On April 28, 2014, the Company entered into a Third Amendment to Loan Agreement (the “Third Mortgage Consolidation Loan Amendment”) with First Niagara Bank. The Mortgage Consolidation Loan continued to be secured by the Company’s facility in Kinderhook, New York as well as various pieces of machinery and equipment. Under the Third Mortgage Consolidation Loan Amendment, the Mortgage Consolidation Loan was recast into a 3-year fully amortizing note through May 1, 2017. The interest rate of the amended facility was decreased from 9.25% to 8.25%, and the monthly payment was reduced from $14,115 to $13,199. The Company was required to pay First Niagara a renewal fee of 1% of the principal balance as of April 1, 2014, or $4,200. No principal reduction payment was required. All other terms of the Mortgage Consolidation Loan remained unchanged, including compliance with a covenant. The Mortgage Consolidation Loan was satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. The balance on the Mortgage Consolidation Loan was $0 at June 30, 2015 and $348,000 at December 31, 2014, respectively. Interest expense recognized was $5,000 in the six months ended June 30, 2015, and $17,000 in the six months ended June 30, 2014. Interest expense recognized was $0 in the three months ended June 30,2015, and $10,000 in the three months ended June 30, 2014. DEBENTURE FINANCING In August 2008, the Company completed an offering of Series A Debentures (“Series A Debentures”) and received gross proceeds of $750,000. The Series A Debentures’ original maturity date was August 1, 2012, but this original maturity date was extended in 2012 (with $645,000 in Series A Debentures extending) and extended again in October 2013 (the “2013 Debenture Extension”). One of the Series A Debenture Holders (representing $10,500 in Series A Debentures) did not wish to extend so the balance on the Series A Debentures was again decreased to $634,500. Cantone Research, Inc. (“CRI”) again acted as the Company’s Placement Agent in the 2013 Debenture Extension. CRI received 1) a cash fee of $39,750, 2) a 3-year warrant to purchase 75,000 shares of the Company’s common stock at an exercise price of $0.14, and 3) a non-accountable expense allowance paid with 115,000 restricted shares of ABMC common stock (in lieu of cash). The Company also paid $4,000 in legal fees incurred by CRI. The fair value of the CRI warrant was $10,000 and the Company recognized 100% of this expense on the date of the grant in the year ended December 31, 2013. Under the 2013 Debenture Extension, the term of $634,500 in Series A Debentures was extended to reflect a maturity date of either February 1, 2014 or August 1, 2014, at the election of the Series A Debenture Holder. The interest rate during the extension period remained 15% per annum, due quarterly in arrears and all other terms of the Series A Debentures remained the same. As previously indicated, the extension period of either 6 or 12 months was at the election of the Series A Debenture Holders. There were 27 of the 30 Series Debenture Holders (representing $543,500 of Series A Debentures), which elected to extend for a period of 12 months so they were granted 2-year warrants to purchase 543,500 shares of the Company’s common stock at an exercise price of $0.14. The other 3 (representing $91,000 in Series A Debentures) elected to extend for a period of 6 months and did not receive warrant grants. The fair value of the Debenture Holder warrants was $76,000. The six months ended June 30, 2015 includes $0 in expense related to the 2013 Debenture Extension, and the six months ended June 30, 2014 includes $38,000 in expense. The three months ended June 30, 2015 includes $0 in expense related to the 2013 Debenture Extension, and the three months ended June 30, 2014 includes $19,000 in expense. As of June 30, 2015, there was $0 in unrecognized expense with 0 months remaining related to the 2013 Debenture Extension. BRIDGE LOAN WITH CANTONE ASSET MANAGEMENT, LLC. When the Series A Debentures originally matured in 2012, there were certain holders (representing $100,000 in Debentures) that did not wish to extend the term of their Series A Debentures. Given this, the Company entered into a Bridge Loan with Cantone Asset Management, LLC (“CAM”) in the amount of $150,000 ($100,000 was used to pay those Holders of Series A Debentures that did not wish to extend the Series A Debentures and $50,000 was used to pay placement agent fees and expenses associated with the extension). The CAM Bridge Loan originally matured on August 1, 2013 with simple interest in advance of 15%. On October 7, 2013, the Company entered into a new Bridge Loan with CAM (the “2013 Bridge Loan”). The 2013 Bridge Loan was in the amount of $200,000 and was used to pay off the existing Bridge Loan with CAM ($150,000) and the remaining $50,000 was used to pay placement agent fees and expenses associated with the 2013 Bridge Loan. The maturity date of the 2013 Bridge Loan was August 1, 2014, with simple interest of 15% paid in advance in the form of 300,000 restricted common shares of ABMC stock. In addition to the interest, as inducement to enter into the 2013 Bridge Loan, the Company issued 153,486 restricted shares of the Company’s common stock, and the Company issued CAM a 3-year warrant to purchase 250,000 shares of the Company’s common stock at an exercise price of $0.14. The CAM warrant was valued at $35,000 and the Company recognized 100% of this expense in the year ended December 31, 2013. 2014 Forbearance On February 7, 2014, the Company paid $91,000 to the 6-month extension Debenture Holders; bringing the balance due to Debenture Holders to $543,000.The Series A Debentures and the 2013 Bridge Loan matured on August 1, 2014 and the Company was unable to pay back the principal amount of $543,000 related to the Series A Debentures and $200,000 related to the 2013 Bridge Loan (together the “Debenture Debt”). The Company was however able to continue to make interest payments on the Debenture Debt. On July 30, 2014, the Company entered into a term sheet to once again engage CRI to solicit existing holders of the Debenture Debt to forbear from exercising remedies of default related to the non-payment of principal until February 1, 2015. All but one of the 27 Series A Debenture holders agreed to forbear. The Company repaid the principal of $20,000 to this one Series A Debenture holder bringing the balance on the Debentures to $523,000. The maturity of the 2013 Bridge Loan was also extended to February 1, 2015. The Company paid CRI a fee for assisting the Company in obtaining forbearance agreements from the Holders. The fee was 2% of the forbearing principal amount, and was paid $7,000 in cash and 1% in 58,575 restricted shares of the Company’s common stock. A stock price of $0.12 per share was used to determine the number of restricted shares to be issued to CRI. The Company also reimbursed CRI’s legal fees of $1,000. The Company amortized these costs (totaling $15,000) over the course of the forbearance period, or over 6 months. The Company recognized $2,000 in expense in the six months ended June 30, 2015, and $0 in expense in the six months ended June 30, 2014. The Company recognized $0 in costs in the three months ended June 30, 2015, and $0 in costs in the three months ended June 30, 2014. As of June 30, 2015, there is $0 in unrecognized expense with 0 month remaining. The Company recognized $22,000 in interest expense in the six months ended June 30, 2015 related to the Series A Debentures and the CAM Bridge Loan, and $42,000 in interest expense in the six months ended June 30, 2014. The Company recognized $0 in interest expense in the three months ended June 30, 2015 related to the Series A Debentures and the CAM Bridge Loan, and $20,000 in interest expense in the three months ended June 30, 2014. We had $10,000 in accrued interest expense at June 30, 2015 related to the Series A Debentures and CAM Bridge Loan. As of June 30, 2015, the balance on the Series A Debenture and the CAM Bridge Loan is $0. LOAN AND SECURITY AGREEMENT WITH CHEROKEE FINANCIAL, LLC. On March 26, 2015, the Company entered into a Loan and Security Agreement with Cherokee Financial, LLC (the “Cherokee LSA”). The purpose of the Cherokee LSA was to refinance the Company’s Series A Debentures and CAM Bridge Loan (both of which matured on February 1, 2015) and the Company’s Mortgage Consolidation Loan with First Niagara Bank at a better interest rate. The loan is collateralized by a first security interest in the same assets as the First Niagara Bank loan (i.e. real estate and machinery and equipment). Under the Cherokee LSA, the Company was provided the sum of $1,200,000 in the form of a 5-year Note at an annual interest rate of 8%. The Company will make interest only payments quarterly on the Cherokee Note, with the first interest payment being due (and paid) on May 15, 2015. The Company will also make an annual principal reduction payment of $75,000 on each anniversary of the date of the closing with the first principal reduction payment being due on March 26, 2016. A final balloon payment is due on March 26, 2020. In addition to the 8% interest, the Company will pay Cherokee Financial, LLC a 1% annual fee (in cash and paid contemporaneously with payment of quarterly interest) for oversight and administration of the loan. The Company can call the Cherokee Note at anytime with no penalty; except that a 1% administration fee would be required to be paid to Cherokee Financial, LLC to close out all participations. The Company issued 1.8 million restricted shares of the Company’s common stock to Cherokee Financial LLC. The Company will also issue an additional 0.5 restricted shares of the Company’s common stock, or 600,000 restricted shares, to Cherokee Financial LLC on March 26, 2016, however, if the Company has repaid the Cherokee Note in full prior to this date, the Company is not obligated to issue these additional shares. As placement agent for the transaction, CRI received a 5% cash fee on the $1.2 million, or $60,000, and 200,000 restricted shares of the Company’s common stock. The Company will also issue an additional 196,000 restricted shares of the Company’s common stock to CRI on March 26, 2016 as an additional placement agent fee and expense allowance, however, if the Company has repaid the Cherokee Note in full prior to this date, the Company is not obligated to issue these additional shares The Company received net proceeds of $80,000 after $1,015,000 of debt payments, $60,000 in placement agent fees, $19,000 in legal fees, $19,000 in expenses, $3,000 in state filing fees and $4,000 in interest expense (for 8% interest on $511,000 in new participations received from February 24, 2015 through March 25, 2015). With the exception of the interest expense, the Company will be amortizing these expenses over the term of the Cherokee LSA, or 5 years as deferred finance and debt issuance costs. From these net proceeds, in April 2015, the Company also paid $15,000 in interest expense related to 15% interest on $689,000 in Series A Debentures and CAM Bridge Loan for the period of February 1, 2015 through March 25, 2015. The six months ended June 30, 2015 includes $27,000 in expense related to the Cherokee LSA, and the six months ended June 30, 2014 includes $0 in expense. The three months ended June 30, 2015 includes $17,000 in expense related to the Cherokee LSA, and the three months ended June 30, 2014 includes $0 in expense. The Company recognized $25,000 in interest expense in the six months ended June 30, 2015, and $0 in interest expense in the six months ended June 30, 2014. The Company recognized $25,000 in interest expense in the three months ended June 30, 2015, and $0 in interest expense in the three months ended June 30, 2014. At June 30, 2015, the Company had $12,000 in accrued interest expense related to the Cherokee LSA. As of June 30, 2015, the balance on the Cherokee LSA was $1,200,000. Line of Credit with Imperium Commercial Finance, LLC (“Imperium”) On January 16, 2013 (the “Imperium Closing Date”), the Company entered into a 3-year Loan and Security Agreement (“LSA”) with Imperium, a Senior Lender. Under the LSA, the Company was provided with a revolving loan facility (the “Imperium Line of Credit”), which was secured by a first security interest in all receivables, inventory, and intellectual property rights along with a second security interest in machinery and equipment (together the “Collateral”). On March 6, 2014, Imperium amended the Borrowing Base of the Imperium Line of Credit. More specifically, the amount available under the Imperium Line of Credit was capped to the lower of (i) $1,000,000, or (ii) 100% of the eligible outstanding accounts receivable. As of the date of this report, the Borrowing Base of the Imperium Line of Credit is based solely on Eligible Receivables. The Imperium facility also originally included a supplemental advance that was a discretionary facility secured by the same Collateral as the Imperium Line of Credit. Under the LSA, so long as any obligations were due to Imperium, the Company was required to maintain certain minimum EBITDA (Earnings Before Interest, Taxes Depreciation and Amortization) requirements. The Company did not comply with this covenant starting in the First Quarter of 2013. The Company received a waiver from Imperium for the three months ended March 31, 2013 (for which the Company paid a fee of $10,000), but no further formal waivers were issued. The Company incurred $435,000 in costs related to the Imperium Line of Credit, and these costs were being amortized over the term of the facility (3 years). The Company recognized $137,000 of costs in the six months ended June 30, 2015 related to the Imperium Line of Credit, and $68,000 in costs in the six months ended June 30, 2014. The six months ended June 30, 2015 included accelerated amortization costs of $69,000 due to the early termination of the Imperium Line of Credit. The Company recognized $103,000 of costs in the three months ended June 30, 2015 related to the Imperium Line of Credit, and $34,000 in costs in the three months ended June 30, 2014. The three months ended June 30, 2015 included the same accelerated amortization costs due to early termination of the Imperium Line of Credit. The Company incurred $48,000 in interest expense in the six months ended June 30, 2015, and $52,000 in interest expense in the six months ended June 30, 2014. The Company incurred $22,000 in interest expense in the three months ended June 30, 2015 and $25,000 in interest expense in the three months ended June 30, 2014. As of June 30, 2015, the Company had $0 in accrued interest related to the Imperium Line of Credit, and the balance on the Imperium Line of Credit was $0. LINE OF CREDIT WITH CRESTMARK BANK (“CRESTMARK”) On June 29, 2015 (the “Closing Date”), the Company entered into a three-year Loan and Security Agreement (“LSA”) with Crestmark Bank (“Crestmark”), a new Senior Lender, to refinance the Company’s Line of Credit with imperium. The Crestmark Line of Credit is used for working capital and general corporate purposes. Under the LSA, Crestmark is providing the Company with a Line of Credit of up to $1,500,000 (“Maximum Amount”) with a minimum loan balance requirement of $500,000. The Line of Credit is secured by a first security interest in the Company’s inventory, and receivables and security interest in all other assets of the Company (in accordance with permitted prior encumbrances). The Maximum Amount is subject to an Advance Formula comprised of: 1) 90% of Eligible Accounts Receivables (excluding, receivables remaining unpaid for more than 90 days from the date of invoice and sales made to entities outside of the United States), and 2) up to 40% of eligible inventory plus up to 10% of Eligible Generic Packaging Components not to exceed the lesser of $500,000 (“Inventory Sub-Cap Limit”), or 100% of the Eligible Accounts Receivable. The Inventory Sub-Cap Limit will be reduced by $10,000 per month starting August 1, 2015 until the Inventory Sub-Cap Limit is permanently reduced to $350,000. So long as any obligations are due to Crestmark, the Company must comply with a minimum Tangible Net Worth (“TNW”) Covenant. Under the LSA, as of June 30, 2015 and at all times thereafter, the Company must maintain a TNW of at least $1,650,000. Additionally, if a quarterly net income is reported, the TNW covenant will increase by 50% of the reported net income. If a quarterly net loss is reported, the TNW covenant will remains the same as the prior quarter’s covenant amount. TNW is defined as: Total Assets less Total Liabilities less the sum of (i) the aggregate amount of non-trade receivables, (ii) prepaid expenses, (iii) deposits, (iv) net lease hold improvements, (v) goodwill and (vi) any other intangible asset, plus Subordinated Debt. For purposes of the TNW covenant calculation, the Company’s Mortgage with Cherokee Financial LLC (See Current Report on Form 8-K filed with the Commission on March 30, 2015) is considered to be subordinated debt given Crestmark’s first security interest in inventory and receivables is not affected by Cherokee Financial LLC’s security interest in other Company assets. If the Company terminates the LSA prior to its 3 year term, an early exit fee is due as follows: 3% of the Maximum Amount (plus any additional amount owed to Crestmark at time of termination) if terminated in year 1, and 2% if terminated in year 2 or anytime thereafter. In the event of a default of the LSA, which includes but is not limited to, failure of the Company to make any payment when due and non-compliance with the TNW covenant, permits Crestmark to charge an Extra Rate. The Extra Rate is the Company’s then current interest rate plus 12.75% per annum. Under the LSA, interest on the Crestmark Line of Credit is at a variable rate based on the Wall Street Journal Prime Rate plus 2% with a floor of 5.25%. As of the date of this report, the interest rate on the Crestmark Line of Credit is 5.25%. In addition to the interest rate, on the Closing Date and on each one-year anniversary date thereafter, the Company will pay Crestmark a Loan Fee of 0.50%, or $7,500, and a Monthly Maintenance Fee of 0.30% of the actual average monthly loan balance from the prior month will be paid to Crestmark. When these additional fees are considered, the rate on the Crestmark is 9.35% annually (the Imperium Line of Credit rate was 12% when all fees were considered). In addition to the Loan Fee paid to Crestmark on the Closing Date, the Company had to pay a Success Fee (i.e. early termination fee) to Imperium in the amount of $50,000 on the Closing Date, and a Broker’s Fee of 5%, or $75,000, to Landmark Pegasus Inc. Prior to the Closing, the Company paid $12,000 in due diligence fees to Crestmark. The Company also incurred $3,000 of its own legal costs related to the Crestmark Line of Credit. These expenses are all being amortized over the term of the Crestmark Line of Credit, or three years. The Company incurred $2,000 of these costs in the three and six months ended June 30,2015, and $0 of costs in the three and six months ended June 30, 2014. As of the Closing Date, the Company’s loan availability under the Crestmark Line of Credit was $1,072,000. From the loan availability, the Company drew $1,018,000 to pay off the Imperium Line of Credit. The payoff to Imperium consisted of $200,000 owed on the Imperium Supplemental Advance, $22,000 in collateral monitoring fees due to Imperium, principal and interest of $746,000 and the $50,000 early termination fee. An additional $5,000 was drawn to pay the balance (after the partial refund on the Company’s due diligence fee) on the Loan Fee due to Crestmark at closing. Additional Loan Availability of $49,000 was remitted to the Company on the Closing Date. As a condition to the financing, the Company’s Chief Executive Officer, Melissa Waterhouse (“Waterhouse”) was required to execute a Validity Guarantee (the “VG”). Under the Validity Guarantee, Waterhouse provides representations and warranties with respect to the validity of the Company’s receivables as well as guaranteeing the accuracy of the Company’s reporting to Crestmark related to the Company’s receivables. As compensation for her execution of the VG, on June 29, 2015, Waterhouse was awarded an option grant representing 250,000 common shares of the Company under the Company’s Fiscal 2001 stock option plan, at an exercise price of $0.12, the closing price of the Company’s common shares on the date of the grant (the “Waterhouse VG Option Grant”). The Waterhouse VG Option Grant vests over three (3) years in equal installments. See Note F below for more information related to the Waterhouse VG Option Grant. |
Stock Options and Warrants
Stock Options and Warrants | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders Equity Note [Abstract] | |
Stockholders Equity Note Disclosure [Text Block] | Note F Stock Options and Warrants The Company currently has three non-statutory stock option plans, the Fiscal 2000 Non-statutory Stock Option Plan (the “2000 Plan”), the Fiscal 2001 Non-statutory Stock Option Plan (the “2001 Plan”) and the 2013 Equity Compensation Plan (the “2013 Plan”). During the three months ended June 30, 2015, the Company issued options to purchase 20,000 80,000 20,000 80,000 Six months ended June 30, 2015 Six months ended June 30, 2014 Shares Weighted Aggregate Shares Weighted Aggregate Options outstanding at beginning of period 1,295,000 $ 0.23 3,316,000 $ 0.43 Granted 340,000 $ 0.12 80,000 $ 0.12 Exercised 0 NA 0 NA Cancelled/expired (88,000) $ 0.95 (817,000) $ 1.07 Options outstanding at end of period 1,547,000 $ 0.19 $ 9,000 2,579,000 $ 0.23 $ 9,000 Options exercisable at end of period 1,105,000 $ 0.22 2,197,000 $ 0.24 Six months ended 2015 2014 Volatility 63% - 64% 73% Expected term (years) 10 10 Risk-free interest rate 1.92% - 2.33% 2.64% Dividend yield 0% 0% The Company recognized $ 18,000 19,000 8,000 12,000 49,000 2 35 Warrants Six months ended June 30, 2015 Six months ended June 30, 2014 Shares Weighted Aggregate Shares Weighted Aggregate Warrants outstanding at beginning of period 3,303,000 $ 0.17 3,224,000 $ 0.17 Granted 0 NA 0 NA Exercised 0 NA 0 NA Cancelled/expired 0 NA 0 NA Warrants outstanding at end of period 3,303,000 $ 0.17 $ 0 3,224,000 $ 0.17 $ 0 Warrants exercisable at end of period 3,303,000 $ 0.17 3,224,000 $ 0.17 The Company recognized $ 100,000 20,000 75,000 8,000 0 |
Basis of Reporting (Policies)
Basis of Reporting (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Standards Certain reclassifications have been made to the prior period to confirm to the presentation of the current period. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The Board received feedback that having different balance sheet presentation requirements for debt issuance costs and debt discount and premium creates unnecessary complexity. Recognizing debt issuance costs as a deferred charge (that is, an asset) also is different from the guidance in International Financial Reporting Standards (IFRS), which requires that transaction costs be deducted from the carrying value of the financial liability and not recorded as separate assets. Additionally, the requirement to recognize debt issuance costs as deferred charges conflicts with the guidance in FASB Concepts Statement No. 6, Elements of Financial Statements, which states that debt issuance costs are similar to debt discounts and in effect reduce the proceeds of borrowing, thereby increasing the effective interest rate. Concepts Statement 6 further states that debt issuance costs cannot be an asset because they provide no future economic benefit. To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. The Company is currently evaluating the effects of adopting this ASU, if it is deemed to be applicable. The Financial Accounting Standards Board has issued certain accounting standards, updates and regulations as of June 30, 2015 that will become effective in subsequent periods. We do not believe that any of those standards, updates or regulations would have significantly affected our financial accounting measures or disclosures had they been in effect during the three and six months ended June 30, 2015 or June 30, 2014, and we do not believe that any of them will have a significant impact on our financial statements at the time they become effective. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory is comprised of the following: June 30, 2015 December 31, 2014 Raw Materials $ 1,174,000 $ 1,136,000 Work In Process 421,000 390,000 Finished Goods 595,000 520,000 Allowance for slow moving and obsolete inventory (366,000) (324,000) $ 1,824,000 $ 1,722,000 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Diluted net loss per common share includes the weighted average dilutive effect of stock options and warrants. Potential common shares outstanding as of June 30, 2015 and 2014: June 30, 2015 June 30, 2014 Warrants 3,303,000 3,224,000 Options 1,547,000 2,579,000 |
Line of Credit and Debt (Tables
Line of Credit and Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Our Line of Credit and Debt consisted of the following as of June 30, 2015 and December 31, 2014: June 30, 2015 December 31, 2014 First Niagara: Mortgage payable in equal monthly installments of $13,199 including interest at 8.25% until May 1, 2017 (“Maturity”), collateralized by the building, land and personal property (1) $ 0 $ 348,000 Debenture financing $523,000 in principal amount of Series A Debentures; interest at 15% per annum from August 1, 2013 through January 31, 2015, payable quarterly; maturity date of February 1, 2015 (2) 0 523,000 Bridge Loan with Cantone Asset Management, LLC (3) Interest rate of 15% payable upon loan maturity; maturity date of February 1, 2015 (3) 0 200,000 Loan and Security Agreement with Cherokee Financial, LLC (4) 1,200,000 0 Imperium Line of Credit (5) : Interest payable in arrears for the preceding calendar month on the first day of each calendar month at a rate of 8% per annum plus “PIK” interest at a 2% per annum. Unused line fee equal to 2% of the maximum amount available under the line, less the aggregate amounts outstanding to Imperium, payable on the first day of each calendar month. Collateral Monitoring Fee of $2,500 due on the first day of each month. Success fee of $175,000 if Imperium terminates due to an event of default, or if we terminate and pre-pay all amounts due to Imperium prior to the stated expiration date of January 16, 2016. 0 1,076,000 Crestmark Line of Credit (6) 1,072,000 0 2,272,000 2,147,000 Less debt discount (Cherokee Financial, LLC Loan) (202,000 ) (97,000 ) Total debt $ 2,070,000 $ 2,050,000 Current portion $ 1,147,000 $ 1,837,000 Long-term portion $ 923,000 $ 213,000 (1) The mortgage through First Niagara Bank was satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. (2) The Series A Debentures were satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. (3) The Bridge Loan with Cantone Asset Management, LLC was satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. (4) On March 26, 2015, the Company entered into a Loan and Security Agreement with Cherokee Financial, LLC (the “Cherokee LSA”). The purpose of the Cherokee LSA was to refinance the Series A Debentures and Cantone Asset Management LLC Bridge Loan (both of which matured on February 1, 2015) and the Mortgage Consolidation Loan with First Niagara Bank at a better interest rate. (5) On June 29, 2015, the Imperium Line of Credit was satisfied in Full via a refinancing with Crestmark Bank. (6) On June 29, 2015, the Company entered into a Loan and Security Agreement with Crestmark Bank. The purpose of the Crestmark LSA was to refinance the Company’s line of credit with Imperium at a better interest rate. |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The following table summarizes weighted-average assumptions using the Black-Scholes option-pricing model used on the date of the grants issued during the six months ended June 30, 2015 and the six months ended June 30, 2014: Six months ended 2015 2014 Volatility 63% - 64% 73% Expected term (years) 10 10 Risk-free interest rate 1.92% - 2.33% 2.64% Dividend yield 0% 0% |
Warrant [Member] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Warrant activity for the six months ended June 30, 2015 and the six months ended June 30, 2014 is summarized as follows (the figures contained within the tables below have been rounded to the nearest thousand): Six months ended June 30, 2015 Six months ended June 30, 2014 Shares Weighted Aggregate Shares Weighted Aggregate Warrants outstanding at beginning of period 3,303,000 $ 0.17 3,224,000 $ 0.17 Granted 0 NA 0 NA Exercised 0 NA 0 NA Cancelled/expired 0 NA 0 NA Warrants outstanding at end of period 3,303,000 $ 0.17 $ 0 3,224,000 $ 0.17 $ 0 Warrants exercisable at end of period 3,303,000 $ 0.17 3,224,000 $ 0.17 |
Employee Stock Option [Member] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock option activity for the six months ended June 30, 2015 and the six months ended June 30, 2014 is summarized as follows (the figures contained within the tables below have been rounded to the nearest thousand): Six months ended June 30, 2015 Six months ended June 30, 2014 Shares Weighted Aggregate Shares Weighted Aggregate Options outstanding at beginning of period 1,295,000 $ 0.23 3,316,000 $ 0.43 Granted 340,000 $ 0.12 80,000 $ 0.12 Exercised 0 NA 0 NA Cancelled/expired (88,000) $ 0.95 (817,000) $ 1.07 Options outstanding at end of period 1,547,000 $ 0.19 $ 9,000 2,579,000 $ 0.23 $ 9,000 Options exercisable at end of period 1,105,000 $ 0.22 2,197,000 $ 0.24 |
Inventory (Details)
Inventory (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory [Line Items] | ||
Raw Materials | $ 1,174,000 | $ 1,136,000 |
Work In Process | 421,000 | 390,000 |
Finished Goods | 595,000 | 520,000 |
Allowance for slow moving and obsolete inventory | (366,000) | (324,000) |
Inventory, Net, Total | $ 1,824,000 | $ 1,722,000 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - shares | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Warrant [Member] | ||
Net Income Loss Per Common Share [Line Items] | ||
Potential common shares outstanding | 3,303,000 | 3,224,000 |
Stock Option [Member] | ||
Net Income Loss Per Common Share [Line Items] | ||
Potential common shares outstanding | 1,547,000 | 2,579,000 |
Net Loss Per Common Share (De19
Net Loss Per Common Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,850,000 | 5,803,000 | 4,850,000 | 5,803,000 |
Line of Credit and Debt (Detail
Line of Credit and Debt (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | $ 2,272,000 | $ 2,147,000 | |
Less debt discount (Line of credit & Cherokee Financial, LLC Loan) | (202,000) | (97,000) | |
Total debt | 2,070,000 | 2,050,000 | |
Current portion | 1,147,000 | 1,837,000 | |
Long-term portion | 923,000 | 213,000 | |
Mortgage Payable To First Niagara [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | [1] | 0 | 348,000 |
Series A Debentures [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | [2] | 0 | 523,000 |
Current portion | 91,000 | ||
Bridge Loan with Cantone Asset Management, LLC [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | [3] | 0 | 200,000 |
Cherokee Financial LLC [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | [4] | 1,200,000 | 0 |
Imperium Line Of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | [5] | 0 | 1,076,000 |
Crestmark Line of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | [6] | $ 1,072,000 | $ 0 |
[1] | The mortgage through First Niagara Bank was satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. | ||
[2] | The Series A Debentures were satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. | ||
[3] | The Bridge Loan with Cantone Asset Management, LLC was satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. | ||
[4] | On March 26, 2015, the Company entered into a Loan and Security Agreement with Cherokee Financial, LLC (the "Cherokee LSA"). The purpose of the Cherokee LSA was to refinance the Series A Debentures and Cantone Asset Management LLC Bridge Loan (both of which matured on February 1, 2015) and the Mortgage Consolidation Loan with First Niagara Bank at a better interest rate. | ||
[5] | On June 29, 2015, the Imperium Line of Credit was satisfied in Full via a refinancing with Crestmark Bank. | ||
[6] | On June 29, 2015, the Company entered into a Loan and Security Agreement with Crestmark Bank. The purpose of the Crestmark LSA was to refinance the Company's line of credit with Imperium at a better interest rate. |
Line of Credit and Debt (Deta21
Line of Credit and Debt (Details Textual) - USD ($) | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Line of Credit Facility [Line Items] | |||
Interest Expense, Debt | $ 5,000 | $ 17,000 | |
Long-term Debt, Total | 2,070,000 | $ 2,050,000 | |
Mortgage Payable To First Niagara [Member] | |||
Line of Credit Facility [Line Items] | |||
Interest Expense, Debt | $ 13,199 | ||
Mortgage Consolidation Loan Initial Interest Percentage | 8.25% | ||
Debt Instrument, Maturity Date | May 1, 2017 | ||
Imperium Line Of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Collateral Fee | $ 2,500 | ||
Line of Credit Facility, Description | Success fee of $175,000 if Imperium terminates due to an event of default, or if we terminate and pre-pay all amounts due to Imperium prior to the stated expiration date of January 16, 2016. | ||
Debt Instrument, Maturity Date | Jan. 16, 2016 | ||
Line of Credit Facility, Interest Rate Description | 8% per annum plus “PIK” interest at a 2% per annum. | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 2.00% | ||
Series A Debentures [Member] | |||
Line of Credit Facility [Line Items] | |||
Long Term Debt Accrued Interest Rate | 15.00% | ||
Long-term Debt, Total | $ 523,000 | ||
Debt Instrument, Maturity Date | Feb. 1, 2015 | ||
Bridge Loan With Cantone Asset Management, LLC [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Interest Rate During Period | 15.00% | ||
Debt Instrument, Maturity Date | Feb. 1, 2015 | ||
Cherokee Financial LLC [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Maturity Date | May 15, 2015 | ||
Debt Instrument, Term | 5 years | ||
Line of Credit Facility, Interest Rate Description | annual interest rate of 8% plus a 1% annual oversight fee | ||
Line of Credit Facility, Periodic Payment, Principal | $ 75,000 | ||
Crestmark Line of Credit [Member] | |||
Line of Credit Facility [Line Items] | |||
Debt Instrument, Term | 3 years | ||
Line of Credit Facility, Interest Rate Description | WSJ Prime plus 2% with a floor or 5.25%; loan fee of 0.5% annually & monthly maintenance fee of 0.3% |
Line of Credit and Debt - First
Line of Credit and Debt - First Niagara Bank: Mortgage Consolidation Loan (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Apr. 28, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Line of Credit Facility [Line Items] | |||||||
Mortgage Consolidation Loan Initial Monthly Payment | $ 14,115 | $ 13,199 | $ 13,199 | ||||
Long-term Debt, Gross | 2,272,000 | 2,272,000 | $ 2,147,000 | ||||
Interest Expense, Debt | $ 5,000 | $ 17,000 | |||||
Mortgage Payable To First Niagara [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Mortgage Consolidation Loan Initial Interest Percentage | 9.25% | 8.25% | |||||
Long-term Debt, Gross | [1] | 0 | $ 0 | $ 348,000 | |||
Percentage of Renewal Fee | 1.00% | ||||||
Renewal Fee Principal Balance Amount | 4,200 | $ 4,200 | |||||
Interest Expense, Debt | $ 0 | $ 10,000 | |||||
[1] | The mortgage through First Niagara Bank was satisfied in full on March 27, 2015 via a refinancing with Cherokee Financial, LLC. |
Line of Credit and Debt - Deben
Line of Credit and Debt - Debenture Financing (Details Textual) - Class of Stock [Domain] - Equity Component [Domain] - USD ($) | Feb. 07, 2014 | Feb. 28, 2015 | Apr. 28, 2014 | Oct. 07, 2013 | Aug. 31, 2008 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Aug. 31, 2014 |
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Amortization of Financing Costs | $ 0 | $ 164,000 | $ 152,000 | ||||||||
Percentage Of Simple Interest In Advance Of Bridge Loan | 15.00% | ||||||||||
Interest Expense, Debt | $ 5,000 | 17,000 | |||||||||
Unrecognized Expense | 10,000 | 0 | |||||||||
Long-term Debt, Current Maturities, Total | 1,147,000 | $ 1,147,000 | $ 1,837,000 | ||||||||
Percentage of Forbearing Principal Amount | 2.00% | ||||||||||
Forbearing Principal Amount | $ 7,000 | ||||||||||
Payment Of Debt Extension Fees | $ 50,000 | ||||||||||
Period For Amortization Of Financing Costs | 6 months | ||||||||||
Bridge Loan 2013 [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 3 years | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.14 | ||||||||||
Warrants and Rights Outstanding | 35,000 | $ 35,000 | |||||||||
Percentage of Warrants Expenses Recognized During Period | 100.00% | ||||||||||
Percentage Of Simple Interest In Advance Of Bridge Loan | 15.00% | ||||||||||
Warrants Issued to Purchase Common Stock | 250,000 | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 300,000 | ||||||||||
Debt Instrument, Maturity Date | Aug. 1, 2014 | ||||||||||
Other Short-term Borrowings | 150,000 | $ 150,000 | |||||||||
Debenture 2013 Extension [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Unrecognized Expense | 0 | $ 19,000 | |||||||||
Debt Issuance Cost | 0 | 38,000 | |||||||||
Debenture 2013 Extension [Member] | Cantone Research Inc [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Professional Fees | 39,750 | ||||||||||
Warrants and Rights Outstanding | $ 10,000 | $ 10,000 | |||||||||
Percentage of Warrants Expenses Recognized During Period | 100.00% | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 115,000 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 75,000 | 75,000 | |||||||||
Term Of Warrants | 3 years | ||||||||||
Reimbursed Legal Fees | $ 4,000 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 0.14 | $ 0.14 | |||||||||
Series A Debentures [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Proceeds from Issuance of Debt | $ 750,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 2 years | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0.14 | ||||||||||
Warrants and Rights Outstanding | $ 76,000 | $ 76,000 | |||||||||
Warrants Issued to Purchase Common Stock | 543,500 | ||||||||||
Long-term Debt, Current Maturities, Total | 91,000 | $ 91,000 | |||||||||
Repayments of Long-term Debt | 100,000 | ||||||||||
Series A Debentures [Member] | Agreement with Twenty Seven Holders [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Long-term Debt, Current Maturities, Total | 543,500 | 543,500 | |||||||||
Series A Debentures [Member] | Agreement with Thirty Holders [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Long-term Debt, Current Maturities, Total | 634,500 | 634,500 | |||||||||
Bridge Loan With Cantone Asset Management, LLC [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Proceeds from Issuance of Debt | $ 91,000 | $ 20,000 | 543,000 | 20,000 | |||||||
Placement Agent Fees | $ 50,000 | ||||||||||
Amortization of Financing Costs | $ 634,500 | $ 10,500 | $ 645,000 | ||||||||
Bridge Loan | 200,000 | ||||||||||
Percentage Of Simple Interest In Advance Of Bridge Loan | 15.00% | ||||||||||
Bridge Loan With Cantone Asset Management, LLC [Member] | Bridge Loan [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Bridge Loan | $ 543,000 | $ 523,000 | $ 200,000 | ||||||||
New Bridge Loan Agreement 2013 [Member] | Bridge Loan 2013 [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 153,486 | ||||||||||
Existing Bridge Loan Agreement [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Bridge Loan | $ 150,000 | ||||||||||
CRI [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Reimbursed In Legal Fees | $ 1,000 | ||||||||||
Amortization of Financing Costs | $ 15,000 | ||||||||||
Restricted Stock Award Issued Price Per Share | $ 0.12 | ||||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 58,575 | ||||||||||
Percentage of Forbearing Principal Amount | 1.00% | ||||||||||
Forbearance [Member] | |||||||||||
Schedule of Capitalization, Long-term Debt [Line Items] | |||||||||||
Amortization of Financing Costs | 0 | $ 0 | $ 2,000 | 0 | |||||||
Interest Expense, Debt | 22,000 | $ 42,000 | |||||||||
Debt Instrument, Unamortized Discount | $ 0 | $ 0 | |||||||||
Period For Amortization Of Financing Costs |
Line of Credit and Debt - Loan
Line of Credit and Debt - Loan and Security Agreement With Cherokee Financial, LLC (Details Textual) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 26, 2015 | Mar. 25, 2015 | Mar. 25, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Line of Credit Facility [Line Items] | |||||||
Interest Expense, Debt | $ 5,000 | $ 17,000 | |||||
Cherokee Financial LLC [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Face Amount | $ 1,200,000 | $ 1,200,000 | |||||
Annual Fee Percentage | 1.00% | ||||||
Debt Instrument, Annual Principal Payment | 75,000 | $ 75,000 | |||||
Debt Instrument, Term | 5 years | ||||||
Administrative Fees Percentage | 1.00% | ||||||
Cherokee Loan and Security Agreement [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument Remaining Expenses Amortization Period | 5 years | ||||||
Placement Agent Fees | $ 60,000 | ||||||
Proceeds from Debt, Net of Issuance Costs | 80,000 | ||||||
Repayments of Debt | 1,015,000 | ||||||
Legal Fees | 19,000 | ||||||
Debt Issuance Cost | 19,000 | ||||||
State Filing Fees | 3,000 | ||||||
Interest Expense, Debt | 25,000 | $ 0 | 25,000 | 0 | |||
Interest Payable | 12,000 | 12,000 | |||||
Notes and Loans, Noncurrent | $ 1,200,000 | $ 1,200,000 | |||||
Cherokee Loan and Security Agreement [Member] | New Participations [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Periodic Payment, Interest | $ 4,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | |||||
Debt Instrument, Face Amount | $ 511,000 | $ 511,000 | |||||
Cherokee Loan and Security Agreement [Member] | Series A Debentures and CAM Bridge Loan [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Periodic Payment, Interest | $ 15,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 15.00% | 15.00% | |||||
Debt Instrument, Face Amount | $ 689,000 | $ 689,000 | |||||
Cherokee Loan and Security Agreement [Member] | Cherokee Financial LLC [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Contingent Consideration Additional Restricted Shares Issuable | 600,000 | ||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 1,800,000 | ||||||
Debt Issuance Cost | $ 17,000 | $ 0 | $ 27,000 | $ 0 | |||
Cherokee Loan and Security Agreement [Member] | Cantone Research Inc [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Contingent Consideration Additional Restricted Shares Issuable | 196,000 | 0.5 | |||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 200,000 | ||||||
Debt Instrument, Fee | As placement agent for the transaction, CRI received a 5% cash fee on the $1.2 million, or $60,000, |
Line of Credit and Debt - Line
Line of Credit and Debt - Line of Credit with Imperium Commercial Finance, LLC ("Imperium") (Details Textual) - Long-term Debt, Type [Domain] - Debt Instrument, Name [Domain] - Equity Component [Domain] - Entity [Domain] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Line of Credit Facility [Line Items] | ||||
Interest Expense, Debt | $ 5,000 | $ 17,000 | ||
Crestmark Loan And Security Agreeement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Issuance Cost | $ 2,000 | 0 | ||
Debt Instrument, Term | 3 years | |||
Imperium Line Of Credit [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Borrowing Capacity, Description | On March 6, 2014, Imperium amended the Borrowing Base of the Imperium Line of Credit. More specifically, the amount available under the Imperium Line of Credit was capped to the lower of (i) $1,000,000, or (ii) 100% of the eligible outstanding accounts receivable. | |||
Line Of Credit Facility Termination Fee | $ 50,000 | $ 50,000 | ||
Line Of Credit Facility Costs | 435,000 | 435,000 | ||
Debt Issuance Cost | 103,000 | $ 34,000 | $ 137,000 | 68,000 |
Debt Instrument, Convertible, Remaining Discount Amortization Period | 3 years | |||
Interest Expense, Debt | 22,000 | $ 25,000 | $ 48,000 | $ 52,000 |
Long-term Line of Credit | $ 0 | 0 | ||
Amortization of Debt Discount (Premium) | $ 69,000 | |||
Maximum Funding Amounts Subject To Discretionary Borrowing Description | EBITDA (Earnings Before Interest, Taxes Depreciation and Amortization) requirements. The Company did not comply with this covenant starting in the First Quarter of 2013. The Company received a waiver from Imperium for the three months ended March 31, 2013 (for which the Company paid a fee of $10,000), but no further formal waivers were issued. |
Line of Credit and Debt - Lin26
Line of Credit and Debt - Line of Credit with Crestmark Bank ("Crestmark") (Details Textual) - Class of Stock [Domain] - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Line of Credit Facility [Line Items] | ||
Repayments of Lines of Credit | $ 3,486,000 | $ 3,736,000 |
Crestmark Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 1,500,000 | |
Minimum Loan Balance | $ 500,000 | |
Crestmark Loan And Security Agreeement [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Term | 3 years | |
Remittance Of Loan Availability Amount | $ 49,000 | |
Legal Fees | 3,000 | |
Debt Issuance Cost | $ 2,000 | $ 0 |
Crestmark Loan And Security Agreeement [Member] | Chief Executive Officer [Member] | ||
Line of Credit Facility [Line Items] | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0.12 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 250,000 | |
Crestmark Loan And Security Agreeement [Member] | Crestmark Bank [Member] | ||
Line of Credit Facility [Line Items] | ||
Monthly Reduction of Inventory Subcap Limit | $ 10,000 | |
Inventory Subcap Limit | 500,000 | |
Minimum Net Worth Required for Compliance | $ 1,650,000 | |
Line of Credit Facility, Borrowing Capacity, Description | The Maximum Amount is subject to an Advance Formula comprised of: 1) 90% of Eligible Accounts Receivables (excluding, receivables remaining unpaid for more than 90 days from the date of invoice and sales made to entities outside of the United States), and 2) up to 40% of eligible inventory plus up to 10% of Eligible Generic Packaging Components not to exceed the lesser of $500,000 (Inventory Sub-Cap Limit), or 100% of the Eligible Accounts Receivable | |
Debt Instrument, Restrictive Covenants | If the Company terminates the LSA prior to its 3 year term, an early exit fee is due as follows: 3% of the Maximum Amount (plus any additional amount owed to Crestmark at time of termination) if terminated in year 1, and 2% if terminated in year 2 or anytime thereafter. | |
Debt Instrument, Fee | the Company will pay Crestmark a Loan Fee of 0.50%, or $7,500, and a Monthly Maintenance Fee of 0.30% of the actual average monthly loan balance from the prior month will be paid to Crestmark | |
Debt Instrument, Debt Default, Description of Violation or Event of Default | The Extra Rate is the Companys then current interest rate plus 12.75% per annum. | |
Line of Credit Facility, Interest Rate Description | variable rate based on the Wall Street Journal Prime Rate plus 2% with a floor of 5.25% | |
Line of Credit Facility, Interest Rate During Period | 5.25% | |
Line of Credit Facility, Interest Rate at Period End | 9.35% | |
Debt Instrument, Fee Amount | $ 7,500 | |
Payments of Debt Issuance Costs | 12,000 | |
Crestmark Loan And Security Agreeement [Member] | Crestmark Bank [Member] | Minimum [Member] | ||
Line of Credit Facility [Line Items] | ||
Inventory Subcap Limit | $ 350,000 | |
Crestmark Loan And Security Agreeement [Member] | Landmark Pegasus Inc [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt Instrument, Fee | a Broker’s Fee of 5%, or $75,000 | |
Debt Instrument, Fee Amount | $ 75,000 | |
Crestmark Loan And Security Agreeement [Member] | Imperium [Member] | ||
Line of Credit Facility [Line Items] | ||
Supplementary Advance Due | $ 200,000 | |
Line of Credit Facility, Interest Rate During Period | 12.00% | |
Debt Instrument, Fee Amount | $ 50,000 | |
Payments of Debt Issuance Costs | 5,000 | |
Repayments of Lines of Credit | $ 1,018,000 | |
Line of Credit Facility, Collateral Fees | 22,000 | |
Line of Credit Facility, Periodic Payment | $ 746,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,072,000 |
Stock Options and Warrants (Det
Stock Options and Warrants (Details) - Relationship to Entity [Domain] - Employee Stock Option [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Shares, Beginning Balance | 1,295,000 | 3,316,000 |
Shares, Granted | 340,000 | 80,000 |
Shares, Exercised | 0 | 0 |
Shares, Cancelled/expired | (88,000) | (817,000) |
Shares, Ending Balance | 1,547,000 | 2,579,000 |
Exercisable at end of year | 1,105,000 | 2,197,000 |
Weighted Average Exercise Price, at beginning of year | $ 0.23 | $ 0.43 |
Weighted Average Exercise Price, Granted | 0.12 | 0.12 |
Weighted Average Exercise Price, Cancelled/expired | 0.95 | 1.07 |
Weighted Average Exercise Price, at end of year | 0.19 | 0.23 |
Weighted Average Exercise Price, Exercisable, at end of year | $ 0.22 | $ 0.24 |
Aggregate Intrinsic Value, Outstanding at end of year | $ 9,000 | $ 9,000 |
Stock Options and Warrants (D28
Stock Options and Warrants (Details 1) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 73.00% | |
Expected term (years) | 10 years | 10 years |
Risk-free interest rate | 2.64% | |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 63.00% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 64.00% | |
Risk-free interest rate | 2.33% |
Stock Options and Warrants (D29
Stock Options and Warrants (Details 2) - Warrant [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares, Beginning Balance | 3,303,000 | 3,224,000 |
Shares, Granted | 0 | 0 |
Shares, Exercised | 0 | 0 |
Shares, Cancelled/expired | 0 | 0 |
Shares, Ending Balance | 3,303,000 | 3,224,000 |
Exercisable at end of year | 3,303,000 | 3,224,000 |
Weighted Average Exercise Price, at beginning of year | $ 0.17 | $ 0.17 |
Weighted Average Exercise Price, Granted | 0 | 0 |
Weighted Average Exercise Price, Exercised | 0 | 0 |
Weighted Average Exercise Price, Cancelled/expired | 0 | 0 |
Weighted Average Exercise Price, at end of year | 0.17 | 0.17 |
Weighted Average Exercise Price, Exercisable, at end of year | $ 0.17 | $ 0.17 |
Aggregate Intrinsic Value outstanding at period | $ 0 | $ 0 |
Stock Options and Warrants (D30
Stock Options and Warrants (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated Share-based Compensation Expense | $ 8,000 | $ 12,000 | $ 18,000 | $ 19,000 |
Warrant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | 0 | $ 0 | ||
Debt Issuance Cost | 75,000 | $ 8,000 | $ 100,000 | $ 20,000 |
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 340,000 | 80,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 49,000 | $ 49,000 | ||
Employee Stock Option [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 months | |||
Employee Stock Option [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 35 months | |||
Fiscal 2001 Non Statutory Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 20,000 | 20,000 | ||
Fiscal 2001 Non Statutory Stock Option Plan [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 80,000 | 80,000 |