Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 14, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
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 | 29,297,333 |
Condensed Balance Sheets
Condensed Balance Sheets - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets | ||
Cash and cash equivalents | $ 150,000 | $ 156,000 |
Accounts receivable, net of allowance for doubtful accounts of $51,000 at September 30, 2017 and $49,000 at December 31, 2016 | 521,000 | 556,000 |
Inventory, net of allowance of $453,000 at September 30, 2017 and $449,000 at December 31, 2016 | 1,462,000 | 1,582,000 |
Prepaid expenses and other current assets | 49,000 | 92,000 |
Total current assets | 2,182,000 | 2,386,000 |
Property, plant and equipment, net | 810,000 | 824,000 |
Patents, net | 107,000 | 93,000 |
Other assets | 21,000 | 21,000 |
Deferred finance costs - line of credit, net | 23,000 | 47,000 |
Total assets | 3,143,000 | 3,371,000 |
Current liabilities | ||
Accounts payable | 306,000 | 304,000 |
Accrued expenses and other current liabilities | 287,000 | 276,000 |
Wages payable | 257,000 | 299,000 |
Line of credit | 580,000 | 639,000 |
Current portion of long-term debt | 87,000 | 75,000 |
Total current liabilities | 1,517,000 | 1,593,000 |
Long-term debt, net of current portion and deferred finance costs | 748,000 | 753,000 |
Other long-term liabilities | 22,000 | 0 |
Total liabilities | 2,287,000 | 2,346,000 |
COMMITMENTS AND CONTINGENCIES | ||
Stockholders' equity: | ||
Preferred stock; par value $.01 per share; 5,000,000 shares authorized, none issued and outstanding at September 30, 2017 and December 31, 2016 | 0 | 0 |
Common stock; par value $.01 per share; 50,000,000 shares authorized; 29,297,333 issued and outstanding at September 30, 2017 and 28,842,788 issued and outstanding at December 31, 2016 | 293,000 | 288,000 |
Additional paid-in capital | 21,115,000 | 21,037,000 |
Accumulated deficit | (20,552,000) | (20,300,000) |
Total stockholders’ equity | 856,000 | 1,025,000 |
Total liabilities and stockholders’ equity | $ 3,143,000 | $ 3,371,000 |
Condensed Balance Sheets (Paren
Condensed Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Allowance For Doubtful Accounts Receivable, Current (in dollars) | $ 51,000 | $ 49,000 |
Inventory Valuation Reserves | $ 453,000 | $ 449,000 |
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 | 29,297,333 | 28,842,788 |
Common stock, shares outstanding | 29,297,333 | 28,842,788 |
Condensed Statements of Operati
Condensed Statements of Operations - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales | $ 1,354,000 | $ 1,417,000 | $ 3,975,000 | $ 4,392,000 |
Cost of goods sold | 788,000 | 806,000 | 2,279,000 | 2,441,000 |
Gross profit | 566,000 | 611,000 | 1,696,000 | 1,951,000 |
Operating expenses: | ||||
Research and development | 26,000 | 28,000 | 94,000 | 136,000 |
Selling and marketing | 159,000 | 275,000 | 531,000 | 827,000 |
General and administrative | 376,000 | 368,000 | 1,154,000 | 1,106,000 |
Operating Expenses, Total | 561,000 | 671,000 | 1,779,000 | 2,069,000 |
Operating income / (loss) | 5,000 | (60,000) | (83,000) | (118,000) |
Other income / (expense): | ||||
Interest expense | (70,000) | (71,000) | (204,000) | (210,000) |
Other income, net | 14,000 | 44,000 | 34,000 | 200,000 |
Other income / (expense), Total | (56,000) | (27,000) | (170,000) | (10,000) |
Net loss before tax | (51,000) | (87,000) | (253,000) | (128,000) |
Income tax benefit / (expense) | 2,000 | (1,000) | 1,000 | (2,000) |
Net loss | $ (49,000) | $ (88,000) | $ (252,000) | $ (130,000) |
Basic and diluted loss per common share | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Weighted average number of shares outstanding - basic & diluted (in shares) | 29,297,333 | 27,284,308 | 29,129,168 | 27,056,216 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (252,000) | $ (130,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 64,000 | 69,000 |
Amortization of debt issuance costs | 94,000 | 90,000 |
Provision for bad debts | 2,000 | 0 |
Provision for slow moving and obsolete inventory | 2,000 | 63,000 |
Share-based payment expense | 33,000 | 49,000 |
Changes in: | ||
Accounts receivable | 32,000 | (49,000) |
Inventory | 116,000 | 127,000 |
Prepaid expenses and other current assets | 96,000 | 21,000 |
Accounts payable | 2,000 | (38,000) |
Accrued expenses and other current liabilities | 11,000 | (6,000) |
Wages payable | (42,000) | (11,000) |
Net cash provided by operating activities | 158,000 | 185,000 |
Cash flows from investing activities: | ||
Patent application costs | (20,000) | (6,000) |
Purchase of property, plant & equipment | (44,000) | 0 |
Net cash used in investing activities | (64,000) | (6,000) |
Cash flows from financing activities: | ||
Proceeds (payments) on debt financing | (41,000) | (75,000) |
Proceeds from lines of credit | 4,729,000 | 4,609,000 |
Payments on lines of credit | (4,788,000) | (4,650,000) |
Net cash used in financing activities | (100,000) | (116,000) |
Net (decrease in) / increase in cash and cash equivalents | (6,000) | 63,000 |
Cash and cash equivalents - beginning of period | 156,000 | 158,000 |
Cash and cash equivalents - end of period | 150,000 | 221,000 |
Supplemental disclosures of cash flow information | ||
Cash paid during period for interest | 110,000 | 119,000 |
Cash paid / (received) during period for taxes | (1,000) | 2,000 |
Consulting expense prepaid with restricted stock | 50,000 | 49,000 |
Debt issuance cost paid with restricted stock | 0 | 96,000 |
Related party note payable paid with restricted stock | $ 0 | $ 154,000 |
Basis of Reporting
Basis of Reporting | 9 Months Ended |
Sep. 30, 2017 | |
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 audited financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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 September 30, 2017, the results of operations for the three and nine month periods ended September 30, 2017 and September 30, 2016 and, cash flows for the nine month periods ended September 30, 2017 and September 30, 2016. Operating results for the three and nine months ended September 30, 2017 are not necessarily indicative of results that may be expected for the year ending December 31, 2017. Amounts at December 31, 2016 are derived from audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. During the nine months ended September 30, 2017, there were no significant changes to the Company’s critical accounting policies, which are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. 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, the Company evaluates estimates, including those related to product returns, bad debts, inventories, income taxes, warranty obligations, contingencies and litigation. The Company bases 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. The independent registered public accounting firm’s report on the financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, contained an explanatory paragraph regarding the Company’s 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 our credit facilities may not be sufficient to fund operations through November 2018. On May 1, 2017, we extended our line of credit. The new expiration date of our line of credit is June 29, 2020 1,500,000 As discussed in more detail in “Cash Flow, Outlook/Risk”, if sales levels decline further, we will have reduced availability on our line of credit due to decreased accounts receivable balances. In addition, we would expect our inventory levels to decrease if sales levels decline further, and this also will result in reduced availability on our line of credit. If availability under our line of credit is not sufficient to satisfy our working capital and capital expenditure requirements, we will be required to obtain additional credit facilities or sell additional equity securities, or delay capital expenditures. 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. We have disclosed the adoption of previously released accounting standards in earlier quarterly reports filed with the U.S. Securities and Exchange Commission (the “Commission”); these adoptions did not have an impact on our financial statement or results of operations. In the three months ended September 30, 2017, we determined that ASU 2017-07, “Compensation - Retirement Benefits” and ASU 2017-04 “Intangibles - Goodwill and Other (Topic 350)” (both previously disclosed in our Form 10-Q for the period ended June 30, 2017) did not apply to the Company. We did not adopt any new accounting standards in the three months ended September 30, 2017. Accounting Standards Issued; Not Yet Adopted ASU 2017-11, “Earnings Per Share, Distinguishing Liabilities from Equity, Derivatives and Hedging”. ASU 2017-11 was issued in July 2017. The amendments in ASU 2017-11 change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature will no longer preclude equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) would not be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, DebtDebt with Conversion and Other Options), including related EPS guidance (in Topic 260). ASU 2017-11 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of ASU 2017-11. ASU 2017-09, “Compensation Stock Compensation (Topic 718)”. ASU 2017-09 was issued in May 2017. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. More specifically, that an entity should account for the effects of modification unless all the following are met: 1) the fair value, calculated or intrinsic value of the modified award is the same fair value, calculated or intrinsic value of the original award immediately before the original award is modified, 2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified and 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original grant is modified. The current disclosure requirements in Topic 718 apply regardless of whether accounting modification is applied. ASU 2017-09 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of ASU 2017-09. ASU 2017-01, “Business Combinations (Topic 805)” . ASU 2017-01 was issued in January 2017. The amendments in ASU 2017-01 clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. The Company is in the process of evaluating the impact of ASU 2017-01. ASU 2016-02, “Leases”. ASU 2016-02 was issued in February 2016 and it requires a lessee to recognize a lease liability and a right-of-use asset on its balance sheet for all leases, including operating leases, with a term greater than 12 months. Lease classification will determine whether a lease is reported as a financing transaction in the income statement and statement of cash flows. ASU 2016-02 does not substantially change lessor accounting, but it does make certain changes related to leases for which collectability of the lease payments is uncertain or there are significant variable payments. Additionally, ASU 2016-02 makes several other targeted amendments including a) revising the definition of lease payments to include fixed payments by the lessee to cover lessor costs related to ownership of the underlying asset such as for property taxes or insurance; b) narrowing the definition of initial direct costs which an entity is permitted to capitalize to include only those incremental costs of a lease that would not have been incurred if the lease had not been obtained; c) requiring seller-lessees in a sale-leaseback transaction to recognize the entire gain from the sale of the underlying asset at the time of sale rather than over the leaseback term; and d) expanding disclosures to provide quantitative and qualitative information about lease transactions. ASU 2016-02 is effective for all annual and interim periods beginning January 1, 2019, and is required to be applied retrospectively to the earliest period presented at the date of initial application, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2016-02. ASU 2014-09, “Revenue from Contracts with Customers ”. ASU 2014-09 was issued in May 2014 and it provides guidance for revenue recognition. The core principle of ASU 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. Examples of the use of judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The update also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 provides for two transition methods to the new guidance: a retrospective approach and a modified retrospective approach. In August 2015, ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date” was issued as a revision to ASU 2014-09. ASU 2015-14 revised the effective date to fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted but not prior to periods beginning after December 15, 2016 (i.e. the original adoption date per ASU No. 2014-09). The Company is currently evaluating the transition methods and the impact of adopting this ASU. There are no other accounting pronouncements issues during the nine months ended September 30, 2017 that are expected to have or that could have a significant impact on our financial position or results of operations. Certain items have been reclassified from the prior year to conform to the current year presentation. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | Note B Inventory September 30, 2017 December 31, 2016 Raw Materials $ 1,053,000 $ 1,028,000 Work In Process 438,000 385,000 Finished Goods 424,000 618,000 Allowance for slow moving and obsolete inventory (453,000) (449,000) $ 1,462,000 $ 1,582,000 |
Net Loss Per Common Share
Net Loss Per Common Share | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note C Net Loss Per Common Share September 30, 2017 September 30, 2016 Warrants 2,060,000 2,060,000 Options 2,147,000 2,182,000 4,207,000 4,242,000 The number of securities not included in the diluted net loss per share for the three and nine months ended September 30, 2017 was 4,207,000 The number of securities not included in the diluted net loss per share for the three and nine months ended September 30, 2016 was 4,242,000 |
Litigation_Legal Matters
Litigation/Legal Matters | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies [Text Block] | Note D Litigation/Legal Matters In February 2017, the Company filed a complaint in the Supreme Court of the State of New York in Columbia County against Premier Biotech Inc., Premier Biotech Labs, LLC and its principals, including its President Todd Bailey, and Peckham Vocational Industries, Inc. (together the “Defendants”). Mr. Bailey formerly served as the Company’s Vice President of Sales and Marketing and as a sales consultant until December 23, 2016. The complaint seeks preliminary and permanent injunctions and a temporary restraining order against Todd Bailey (for his benefit or the benefit of another party or entity) related to the solicitation of Company customers as well as damages related to any profits and revenues that would result from actions taken by the Defendants related to Company customers. In March 2017, the complaint was moved to the federal court in the Northern District of New York. In April 2017, the Defendants filed a motion to dismiss, to which the Company responded on April 21, 2017. On July 10, 2017, the Company was notified that it was not awarded a contract with a state agency for which it has held a contract in excess of 10 years. The contract in question is included in the February 2017 complaint. The Company believes that the Defendants actions related to this customer and a RFP that was issued by the state agency resulted in the loss of the contract award to the Company and the award of the contract to Peckham and Premier Biotech. This contract historically accounted for 10-15% of the Company’s annual revenue. The Company continued to hold a contract with the agency through September 30, 2017. The Company did protest the award of the contract to Peckham and Premier Biotech, and the state agency advised the Company on July 26, 2017 that they denied the Company’s protest of the award. The Company amended its complaint against the Defendants to show actual damages caused by the Defendants and to show proprietary and confidential information (belonging to the Company) used by the Defendants in their response to the RFP. This confidential information belonging to the Company enabled the Defendants to comply with specifications of the RFP. The Defendants filed a response to the court opposing our supplemental motion and we filed our reply papers to the Defendants response on November 2, 2017. As of the date of this report, the Company is awaiting the court’s rulings on the parties’ motions. In addition, from time to time, the Company may be named in legal proceedings in connection with matters that arise during the normal course of business. While the ultimate outcome of any such litigation cannot be predicted, if we are 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. We are aware of no 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 | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Note E Line of Credit and Debt September 30, 2017 December 31, 2016 Loan and Security Agreement with Cherokee Financial, LLC: $ 1,050,000 $ 1,125,000 Crestmark Line of Credit: 580,000 639,000 Crestmark Equipment Term Loan: 34,000 0 1,664,000 1,764,000 Less debt discount & issuance costs (Cherokee Financial, LLC Loan) (227,000) (297,000) Total debt, net 1,437,000 1,467,000 Current portion 667,000 714,000 Long-term portion, net of current portion $ 770,000 $ 753,000 LOAN AND SECURITY AGREEMENT WITH CHEROKEE FINANCIAL, LLC On March 26, 2015, the Company entered into a LSA with Cherokee Financial, LLC (the “Cherokee LSA”). The purpose of the Cherokee LSA was to refinance, at a better interest rate, the Company’s Series A Debentures and Cantone Asset Management Bridge Loan (both of which matured on February 1, 2015), as well as the Company’s Mortgage Consolidation Loan with First Niagara Bank (“First Niagara”). The loan is collateralized by a first security interest in real estate and machinery and equipment. Under the Cherokee LSA, the Company was provided the sum of $ 1,200,000 5 8 75,000 1 1 The Company issued 1.8 600,000 As placement agent for the transaction, Cantone Research, Inc. (“CRI”) received a 5% cash fee on the $ 1.2 200,000 196,000 The Company received net proceeds of $ 80,000 1,015,000 60,000 19,000 19,000 3,000 4,000 8 511,000 From these net proceeds, in April 2015, the Company also paid $ 15,000 15 689,000 The Company recognized $ 128,000 70,000 137,000 64,000 45,000 47,000 23,000 The Company had $ 11,000 As of September 30, 2017, the balance on the Cherokee LSA is $ 1,050,000 823,000 1,125,000 828,000 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, a new Senior Lender, to refinance the Company’s Line of Credit with Imperium Commercial Finance, LLC (“Imperium”). The Crestmark Line of Credit is used for working capital and general corporate purposes. On May 1, 2017, the Company entered into term loan with Crestmark in the amount of $38,000 related to the purchase of manufacturing equipment (See “Equipment Loan with Crestmark”), and in connection with this equipment loan, the Company executed an amendment to its LSA and Promissory Note with Crestmark. The amendments addressed the inclusion of the equipment loan into the Crestmark LSA and an extension of the Company’s line of credit with Crestmark. Apart from the extension of the LSA, no terms of the line of credit were changed in the amendment. The termination date of the Crestmark line of credit was changed from June 22, 2018 to June 22, 2020 under the amendments. Under the LSA, Crestmark is providing the Company with a Line of Credit of up to $ 1,500,000 500,000 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 $350,000 (“Inventory Sub-Cap Limit”), or 100% of the Eligible Accounts Receivable. 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 amended, the Company must maintain a TNW of at least $ 650,000 50 If the Company terminates the LSA prior to June 22, 2020, an early exit fee of 2% of the Maximum Amount (plus any additional amounts owed to Crestmark at the time of termination) would be due. 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, Crestmark is permitted 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% 6.25 7,500 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 75,000 12,000 3,000 50,000 24,000 8,000 The Company recognized $ 76,000 24,000 26,000 25,000 8,000 24,000 8,000 Given the nature of the administration of the Crestmark Line of Credit, at September 30, 2017, the Company had $0 in accrued interest expense related to the Crestmark Line of Credit, and there is $0 in additional availability under the Crestmark Line of Credit. As of September 30, 2017, the balance on the Crestmark Line of Credit was $ 580,000 639,000 EQUIPMENT LOAN WITH CRESTMARK On May 1, 2017, the Company entered into term loan with Crestmark in the amount of $ 38,000 3 7.25 34,000 |
Stock Options and Warrants
Stock Options and Warrants | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders Equity Note [Abstract] | |
Stockholders Equity Note Disclosure [Text Block] | NOTE F Stock Options and Warrants The Company currently has two non-statutory stock option plans, the Fiscal 2001 Non-statutory Stock Option Plan (the “2001 Plan”) and the 2013 Equity Compensation Plan (the “2013 Plan”). Both plans have been adopted by our Board of Directors and approved by our shareholders. Both the 2001 Plan and the 2013 Plan have options available for future issuance. Any common shares issued as a result of the exercise of stock options would be new common shares issued from our authorized issued shares. During the three months ended September 30, 2017 and September 30, 2016, the Company issued 0 stock options. Stock option activity for the nine months ended September 30, 2017 and September 30, 2016 is summarized as follows (the figures contained within the tables below have been rounded to the nearest thousand): Nine months ended September 30, 2017 Nine months ended September 30, 2016 Aggregate Aggregate Weighted Intrinsic Weighted Intrinsic Average Value as of Average Value as of Exercise September 30, Exercise September 30, Shares Price 2017 Shares Price 2016 Options outstanding at beginning of period 2,107,000 $ 0.13 1,435,000 $ 0.13 Granted 40,000 $ 0.13 830,000 $ 0.11 Exercised 0 NA 0 NA Cancelled/expired 0 NA (83,000) $ 0.19 Options outstanding at end of period 2,147,000 $ 0.13 $ 15,000 2,182,000 0.13 $ 30,000 Options exercisable at end of period 1,647,000 $ 0.13 1,184,000 $ 0.14 The following table summarizes weighted-average assumptions using the Black-Scholes option-pricing model used on the date of the grants issued during the nine months ended September 30, 2017 and September 30, 2016: Nine months ended 2017 2016 Volatility 81 % 62% - 66 % Expected term (years) 10 years 10 years Risk-free interest rate 2.16 % 1.57% - 1.94 % Dividend yield 0 % 0 % The Company recognized $ 33,000 49,000 10,000 13,000 16,000 3 8 Warrants Warrant activity for the nine months ended September 30, 2017 and September 30, 2016 is summarized as follows: Nine months ended September 30, 2017 Nine months ended September 30, 2016 Aggregate Aggregate Weighted Intrinsic Value Weighted Intrinsic Value Average as of Average as of Exercise September 30, Exercise September 30, Shares Price 2017 Shares Price 2016 Warrants outstanding at beginning of period 2,060,000 $ 0.18 2,385,000 $ 0.17 Granted 0 NA 0 NA Exercised 0 NA 0 NA Cancelled/expired 0 NA (325,000) $ 0.14 Warrants outstanding at end of period 2,060,000 $ 0.18 $ 0 2,060,000 $ 0.18 $ 0 Warrants exercisable at end of period 2,060,000 $ 0.18 2,060,000 $ 0.18 In the nine months ended September 30, 2017 and September 30, 2016, the Company recognized $ 0 0 0 |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | NOTE G SUBSEQUENT EVENT On October 20, 2017, the Company received notice that Todd Bailey 164,000 On November 2, 2017, we filed a Notice of Removal in this action to move the matter from state to federal court. On November 9, 2017, we filed a motion to dismiss or, in the alternative to transfer venue and consolidate, the Bailey complaint with our litigation filed previously against Bailey and others |
Basis of Reporting (Policies)
Basis of Reporting (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Standards We have disclosed the adoption of previously released accounting standards in earlier quarterly reports filed with the U.S. Securities and Exchange Commission (the “Commission”); these adoptions did not have an impact on our financial statement or results of operations. In the three months ended September 30, 2017, we determined that ASU 2017-07, “Compensation - Retirement Benefits” and ASU 2017-04 “Intangibles - Goodwill and Other (Topic 350)” (both previously disclosed in our Form 10-Q for the period ended June 30, 2017) did not apply to the Company. We did not adopt any new accounting standards in the three months ended September 30, 2017. Accounting Standards Issued; Not Yet Adopted ASU 2017-11, “Earnings Per Share, Distinguishing Liabilities from Equity, Derivatives and Hedging”. ASU 2017-11 was issued in July 2017. The amendments in ASU 2017-11 change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature will no longer preclude equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) would not be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, DebtDebt with Conversion and Other Options), including related EPS guidance (in Topic 260). ASU 2017-11 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact of ASU 2017-11. ASU 2017-09, “Compensation Stock Compensation (Topic 718)”. ASU 2017-09 was issued in May 2017. The amendments in ASU 2017-09 provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. More specifically, that an entity should account for the effects of modification unless all the following are met: 1) the fair value, calculated or intrinsic value of the modified award is the same fair value, calculated or intrinsic value of the original award immediately before the original award is modified, 2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified and 3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original grant is modified. The current disclosure requirements in Topic 718 apply regardless of whether accounting modification is applied. ASU 2017-09 is effective for annual periods and interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of ASU 2017-09. ASU 2017-01, “Business Combinations (Topic 805)” . ASU 2017-01 was issued in January 2017. The amendments in ASU 2017-01 clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for interim and annual periods beginning after December 15, 2017 and should be applied prospectively on or after the effective date. The Company is in the process of evaluating the impact of ASU 2017-01. ASU 2016-02, “Leases”. ASU 2016-02 was issued in February 2016 and it requires a lessee to recognize a lease liability and a right-of-use asset on its balance sheet for all leases, including operating leases, with a term greater than 12 months. Lease classification will determine whether a lease is reported as a financing transaction in the income statement and statement of cash flows. ASU 2016-02 does not substantially change lessor accounting, but it does make certain changes related to leases for which collectability of the lease payments is uncertain or there are significant variable payments. Additionally, ASU 2016-02 makes several other targeted amendments including a) revising the definition of lease payments to include fixed payments by the lessee to cover lessor costs related to ownership of the underlying asset such as for property taxes or insurance; b) narrowing the definition of initial direct costs which an entity is permitted to capitalize to include only those incremental costs of a lease that would not have been incurred if the lease had not been obtained; c) requiring seller-lessees in a sale-leaseback transaction to recognize the entire gain from the sale of the underlying asset at the time of sale rather than over the leaseback term; and d) expanding disclosures to provide quantitative and qualitative information about lease transactions. ASU 2016-02 is effective for all annual and interim periods beginning January 1, 2019, and is required to be applied retrospectively to the earliest period presented at the date of initial application, with early adoption permitted. The Company is currently evaluating the impact of adopting ASU 2016-02. ASU 2014-09, “Revenue from Contracts with Customers ”. ASU 2014-09 was issued in May 2014 and it provides guidance for revenue recognition. The core principle of ASU 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. Examples of the use of judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The update also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. ASU 2014-09 provides for two transition methods to the new guidance: a retrospective approach and a modified retrospective approach. In August 2015, ASU 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date” was issued as a revision to ASU 2014-09. ASU 2015-14 revised the effective date to fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted but not prior to periods beginning after December 15, 2016 (i.e. the original adoption date per ASU No. 2014-09). The Company is currently evaluating the transition methods and the impact of adopting this ASU. There are no other accounting pronouncements issues during the nine months ended September 30, 2017 that are expected to have or that could have a significant impact on our financial position or results of operations. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain items have been reclassified from the prior year to conform to the current year presentation. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventory is comprised of the following: September 30, 2017 December 31, 2016 Raw Materials $ 1,053,000 $ 1,028,000 Work In Process 438,000 385,000 Finished Goods 424,000 618,000 Allowance for slow moving and obsolete inventory (453,000) (449,000) $ 1,462,000 $ 1,582,000 |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic net loss per common share is calculated by dividing the net loss by the weighted average number of outstanding common shares during the period. Diluted net loss per common share includes the weighted average dilutive effect of stock options and warrants. Potential common shares outstanding as of September 30, 2017 and 2016: September 30, 2017 September 30, 2016 Warrants 2,060,000 2,060,000 Options 2,147,000 2,182,000 4,207,000 4,242,000 |
Line of Credit and Debt (Tables
Line of Credit and Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | September 30, 2017 December 31, 2016 Loan and Security Agreement with Cherokee Financial, LLC: $ 1,050,000 $ 1,125,000 Crestmark Line of Credit: 580,000 639,000 Crestmark Equipment Term Loan: 34,000 0 1,664,000 1,764,000 Less debt discount & issuance costs (Cherokee Financial, LLC Loan) (227,000) (297,000) Total debt, net 1,437,000 1,467,000 Current portion 667,000 714,000 Long-term portion, net of current portion $ 770,000 $ 753,000 |
Stock Options and Warrants (Tab
Stock Options and Warrants (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Warrant activity for the nine months ended September 30, 2017 and September 30, 2016 is summarized as follows: Nine months ended September 30, 2017 Nine months ended September 30, 2016 Aggregate Aggregate Weighted Intrinsic Value Weighted Intrinsic Value Average as of Average as of Exercise September 30, Exercise September 30, Shares Price 2017 Shares Price 2016 Warrants outstanding at beginning of period 2,060,000 $ 0.18 2,385,000 $ 0.17 Granted 0 NA 0 NA Exercised 0 NA 0 NA Cancelled/expired 0 NA (325,000) $ 0.14 Warrants outstanding at end of period 2,060,000 $ 0.18 $ 0 2,060,000 $ 0.18 $ 0 Warrants exercisable at end of period 2,060,000 $ 0.18 2,060,000 $ 0.18 |
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 nine months ended September 30, 2017 and September 30, 2016: Nine months ended 2017 2016 Volatility 81 % 62% - 66 % Expected term (years) 10 years 10 years Risk-free interest rate 2.16 % 1.57% - 1.94 % Dividend yield 0 % 0 % |
Employee Stock Option [Member] | |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock option activity for the nine months ended September 30, 2017 and September 30, 2016 is summarized as follows (the figures contained within the tables below have been rounded to the nearest thousand): Nine months ended September 30, 2017 Nine months ended September 30, 2016 Aggregate Aggregate Weighted Intrinsic Weighted Intrinsic Average Value as of Average Value as of Exercise September 30, Exercise September 30, Shares Price 2017 Shares Price 2016 Options outstanding at beginning of period 2,107,000 $ 0.13 1,435,000 $ 0.13 Granted 40,000 $ 0.13 830,000 $ 0.11 Exercised 0 NA 0 NA Cancelled/expired 0 NA (83,000) $ 0.19 Options outstanding at end of period 2,147,000 $ 0.13 $ 15,000 2,182,000 0.13 $ 30,000 Options exercisable at end of period 1,647,000 $ 0.13 1,184,000 $ 0.14 |
Basis of Reporting (Details Tex
Basis of Reporting (Details Textual) - Crestmark Bank [Member] - USD ($) | May 01, 2017 | Sep. 30, 2017 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000 | $ 1,500,000 |
Line of Credit Facility, Expiration Date | Jun. 29, 2020 |
Inventory (Details)
Inventory (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Raw Materials | $ 1,053,000 | $ 1,028,000 |
Work In Process | 438,000 | 385,000 |
Finished Goods | 424,000 | 618,000 |
Allowance for slow moving and obsolete inventory | (453,000) | (449,000) |
Inventory, Net, Total | $ 1,462,000 | $ 1,582,000 |
Net Loss Per Common Share (Deta
Net Loss Per Common Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Weighted Average Number Diluted Shares Outstanding Adjustment | 4,207,000 | 4,242,000 |
Warrant [Member] | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,060,000 | 2,060,000 |
Employee Stock Option [Member] | ||
Weighted Average Number Diluted Shares Outstanding Adjustment | 2,147,000 | 2,182,000 |
Net Loss Per Common Share (De21
Net Loss Per Common Share (Details Textual) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 4,207,000 | 4,242,000 | 4,207,000 | 4,242,000 |
Litigation_Legal Matters (Detai
Litigation/Legal Matters (Details Textual) | 12 Months Ended |
Dec. 31, 2016 | |
Maximum [Member] | |
Annual Revenue Percentage | 15.00% |
Minimum [Member] | |
Annual Revenue Percentage | 10.00% |
Line of Credit and Debt (Detail
Line of Credit and Debt (Details) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,664,000 | $ 1,764,000 |
Less debt discount & issuance costs (Cherokee Financial, LLC Loan) | (227,000) | (297,000) |
Total debt, net | 1,437,000 | 1,467,000 |
Current portion | 667,000 | 714,000 |
Long-term portion, net of current portion | 770,000 | 753,000 |
Cherokee Financial LLC [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 1,050,000 | 1,125,000 |
Crestmark Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | 580,000 | 639,000 |
Crestmark Equipment Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 34,000 | $ 0 |
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 | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Apr. 30, 2015 | Sep. 30, 2017 | Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | May 01, 2017 | Mar. 25, 2015 | |
Line of Credit Facility [Line Items] | ||||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 0 | $ 0 | ||||||
Debt Instrument, Face Amount | $ 38,000 | |||||||
Debt Instrument, Unamortized Discount | $ 823,000 | $ 823,000 | $ 828,000 | |||||
Crestmark Equipment Term Loan [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Description of Variable Rate Basis | Prime Rate plus 3%; or 7.25% | |||||||
Cherokee Financial LLC [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 70,000 | $ 23,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | 8.00% | ||||||
Debt Instrument, Face Amount | $ 1,200,000 | $ 1,200,000 | ||||||
Interest Expense, Debt | 11,000 | 47,000 | 18,000 | |||||
Notes and Loans, Noncurrent | 1,050,000 | $ 1,050,000 | $ 1,125,000 | |||||
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] | ||||||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 200,000 | |||||||
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 Related Commitment Fees and Debt Issuance Costs | 19,000 | |||||||
State Filing Fees | 3,000 | |||||||
Interest Expense, Debt | 45,000 | $ 137,000 | 128,000 | $ 64,000 | ||||
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% | |||||||
Debt Instrument, Face Amount | $ 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% | |||||||
Debt Instrument, Face Amount | $ 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 | |||||||
Cherokee Loan and Security Agreement [Member] | Cantone Research Inc [Member] | New Participations [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Contingent Consideration Additional Restricted Shares Issuable | 196,000 |
Line of Credit and Debt - Line
Line of Credit and Debt - Line of Credit with Crestmark Bank ("Crestmark") (Details Textual) - USD ($) | May 01, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Jun. 29, 2015 |
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Interest Rate During Period | 6.25% | ||||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 0 | $ 0 | |||||
Debt Instrument, Face Amount | $ 38,000 | ||||||
Amortization of debt issuance costs | 94,000 | $ 90,000 | |||||
Long-term Debt, Gross | 1,664,000 | 1,664,000 | $ 1,764,000 | ||||
Interest Expense [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Amortization of debt issuance costs | 8,000 | ||||||
Interest Expense One [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Amortization of debt issuance costs | $ 8,000 | ||||||
Imperium Line Of Credit [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line Of Credit Facility Termination Fee | $ 50,000 | ||||||
Minimum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Expiration Date | Jun. 22, 2018 | ||||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | ||||||
Maximum [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Expiration Date | Jun. 22, 2020 | ||||||
Debt Instrument, Basis Spread on Variable Rate | 7.25% | ||||||
Crestmark Bank [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000 | 1,500,000 | $ 1,500,000 | ||||
Minimum Loan Balance | 500,000 | $ 500,000 | |||||
Debt Instrument, Fee | 75,000 | ||||||
Debt Instrument, Fee Amount | 580,000 | $ 580,000 | $ 639,000 | ||||
Interest Expense, Debt | 25,000 | $ 24,000 | 76,000 | 24,000 | |||
Amortization of debt issuance costs | $ 8,000 | 24,000 | $ 26,000 | ||||
Line of Credit Facility, Expiration Date | Jun. 29, 2020 | ||||||
Long-term Debt, Gross | 34,000 | 34,000 | |||||
Imperium [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Debt Instrument, Fee Amount | 50,000 | 50,000 | |||||
Crestmark Loan And Security Agreeement [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
Minimum Net Worth Required for Compliance | $ 650,000 | 650,000 | |||||
Debt Related Commitment Fees and Debt Issuance Costs | $ 24,000 | ||||||
Crestmark Loan And Security Agreeement [Member] | Crestmark Bank [Member] | |||||||
Line of Credit Facility [Line Items] | |||||||
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 $350,000 (“Inventory Sub-Cap Limit”), or 100% of the Eligible Accounts Receivable. | ||||||
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 Company’s 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% | ||||||
Payments of Debt Issuance Costs | $ 12,000 | ||||||
Legal Fees | $ 3,000 | ||||||
Percentage of Net Income, Increase | 50.00% | 50.00% | |||||
Weighted Average Annual Fee | $ 7,500 |
Stock Options and Warrants (Det
Stock Options and Warrants (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Shares, Granted | 0 | 0 | ||
Employee Stock Option [Member] | ||||
Shares, Beginning Balance | 2,107,000 | 1,435,000 | ||
Shares, Granted | 40,000 | 830,000 | ||
Shares, Exercised | 0 | 0 | ||
Shares, Cancelled/expired | 0 | (83,000) | ||
Shares, Ending Balance | 2,147,000 | 2,182,000 | 2,147,000 | 2,182,000 |
Exercisable at end of period | 1,647,000 | 1,184,000 | 1,647,000 | 1,184,000 |
Weighted Average Exercise Price, at beginning of period | $ 0.13 | $ 0.13 | ||
Weighted Average Exercise Price, Granted | 0.13 | 0.11 | ||
Weighted Average Exercise Price, Cancelled/expired | 0 | 0.19 | ||
Weighted Average Exercise Price, at end of period | $ 0.13 | $ 0.13 | 0.13 | 0.13 |
Weighted Average Exercise Price, Exercisable, at end of period | $ 0.13 | $ 0.14 | $ 0.13 | $ 0.14 |
Aggregate Intrinsic Value, Outstanding at end of period | $ 15,000 | $ 30,000 | $ 15,000 | $ 30,000 |
Stock Options and Warrants (D27
Stock Options and Warrants (Details 1) | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 81.00% | |
Expected term (years) | 10 years | 10 years |
Risk-free interest rate | 2.16% | |
Dividend yield | 0.00% | 0.00% |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 62.00% | |
Risk-free interest rate | 1.57% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Volatility | 66.00% | |
Risk-free interest rate | 1.94% |
Stock Options and Warrants (D28
Stock Options and Warrants (Details 2) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, Granted | 0 | 0 | ||
Warrant [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares, Beginning Balance | 2,060,000 | 2,385,000 | ||
Shares, Granted | 0 | 0 | ||
Shares, Exercised | 0 | 0 | ||
Shares, Cancelled/expired | 0 | (325,000) | ||
Shares, Ending Balance | 2,060,000 | 2,060,000 | 2,060,000 | 2,060,000 |
Exercisable at end of period | 2,060,000 | 2,060,000 | 2,060,000 | 2,060,000 |
Weighted Average Exercise Price, at beginning of period | $ 0.18 | $ 0.17 | ||
Weighted Average Exercise Price, Cancelled/expired | 0 | 0.14 | ||
Weighted Average Exercise Price, at end of period | $ 0.18 | $ 0.18 | 0.18 | 0.18 |
Weighted Average Exercise Price, Exercisable, at end of period | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.18 |
Aggregate Intrinsic Value outstanding at period | $ 0 | $ 0 | $ 0 | $ 0 |
Stock Options and Warrants (D29
Stock Options and Warrants (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
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 Related Commitment Fees and Debt Issuance Costs | 0 | 0 | ||
Allocated Share-based Compensation Expense | 10,000 | $ 13,000 | $ 33,000 | $ 49,000 |
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 | 40,000 | 830,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 16,000 | $ 16,000 | ||
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 | 3 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 | 8 months |
SUBSEQUENT EVENT (Details Texua
SUBSEQUENT EVENT (Details Texual) - Subsequent Event [Member] | 1 Months Ended |
Oct. 20, 2017USD ($) | |
Subsequent Event [Line Items] | |
Loss Contingency, Damages Sought, Value | $ 164,000 |
Loss Contingency, Lawsuit Filing Date | November 2, 2017 |
Loss Contingency, Name of Plaintiff | Todd Bailey |
Loss Contingency, Actions Taken by Defendant | On November 2, 2017, we filed a Notice of Removal in this action to move the matter from state to federal court. On November 9, 2017, we filed a motion to dismiss or, in the alternative to transfer venue and consolidate, the Bailey complaint with our litigation filed previously against Bailey and others |