ImageWare Systems (IWSY) 10-K 17 Mar 14 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Mar. 15, 2014	Jun. 30, 2013
Document And Entity Information	'	'	'
Entity Registrant Name	'IMAGEWARE SYSTEMS INC	'	'
Entity Central Index Key	'0000941685	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Dec-13	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--12-31	'	'
Is Entity a Well-known Seasoned Issuer?	'No	'	'
Is Entity a Voluntary Filer?	'No	'	'
Is Entity's Reporting Status Current?	'No	'	'
Entity Filer Category	'Accelerated Filer	'	'
Entity Public Float	'	'	$11,234,312
Entity Common Stock, Shares Outstanding	'	89,344,613	'
Document Fiscal Period Focus	'FY	'	'
Document Fiscal Year Focus	'2013	'	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Current Assets:	'	'
Cash and cash equivalents	$2,363	$4,225
Accounts receivable, net of allowance for doubtful accounts of $3 at December 31, 2013 and December 31, 2012	302	328
Inventory, net	505	262
Other current assets	148	86
Total Current Assets	3,318	4,901
Property and equipment, net	245	150
Other assets	395	44
Intangible assets, net of accumulated amortization	172	200
Goodwill	3,416	3,416
Total Assets	7,546	8,711
Current Liabilities:	'	'
Accounts payable	486	759
Deferred revenue	1,662	1,561
Accrued expenses	924	1,266
Derivative Liabilities	57	'
Notes payable to related parties	55	65
Total Current Liabilities	3,184	3,651
Derivative liabilities	'	2,244
Pension obligation	1,031	401
Other long-term liabilities	'	72
Total Liabilities	4,215	6,368
Shareholders' Equity:	'	'
Preferred stock, authorized 4,000,000 shares:	'	'
Series B convertible preferred stock, $0.01 par value; designated 750,000 shares, 389,400 shares issued, and 239,400 shares outstanding at December 31, 2013 and December 31, 2012, respectively; liquidation preference $607 at December 31, 2013 and December 31, 2012	2	2
Common stock, $0.01 par value, 150,000,000 shares authorized; 87,555,317 and 76,646,553 shares issued at December 31, 2013 and December 31, 2012, respectively, and 87,548,613 and 76,639,849 shares outstanding at December 31, 2013 and December 31, 2012, respectively	874	765
Additional paid in capital	131,652	120,182
Treasury stock, at cost 6,704 shares	-64	-64
Accumulated other comprehensive loss	-830	-139
Accumulated deficit	-128,303	-118,403
Total Shareholders' Equity	3,331	2,343
Total Liabilities and Shareholders' Equity	$7,546	$8,711

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
Current Assets:	'	'
Accounts receivable, net of allowance for doubtful accounts	$3	$3
Shareholders' equity:	'	'
Preferred stock, shares authorized	4,000,000	4,000,000
Series B convertible preferred , Par value	$0.01	$0.01
Series B convertible preferred, designated	750,000	750,000
Series B convertible preferred, shares issued	389,400	389,400
Series B convertible preferred, shares outstanding	239,400	239,400
Series B convertible preferred, liquidation preference	607	607
Common stock, par value	$0.01	$0.01
Common stock, shares authorized	150,000,000	150,000,000
Common stock, shares issued	87,555,317	76,646,553
Common stock, shares outstanding	87,548,613	76,639,849
Treasury stock, shares	6,704	6,704

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Revenues:	'	'
Product	$2,686	$1,145
Maintenance	2,618	2,806
Total	5,304	3,951
Cost of revenues:	'	'
Product	319	227
Maintenance	771	975
Gross profit	4,214	2,749
Operating expenses:	'	'
General and administrative	3,378	3,430
Sales and marketing	2,129	1,830
Research and development	3,869	3,180
Depreciation and amortization	125	69
Total	9,501	8,509
Loss from operations	-5,287	-5,760
Interest expense	221	18
Change in fair value of derivative liabilities	-4,776	-4,712
Other income, net	-443	-322
Loss before income taxes	-9,841	-10,168
Income tax (benefit) expense	8	22
Net loss	-9,849	-10,190
Preferred dividends	-51	-51
Net loss available to common shareholders	($9,900)	($10,241)
Basic and diluted loss per common share see Note 2:	'	'
Net loss	($0.12)	($0.14)
Preferred dividends	'	'
Basic and diluted loss per share available to common shareholders	($0.12)	($0.14)
Basic and diluted weighted-average shares outstanding	81,231,962	70,894,916

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Condensed Consolidated Statements Of Comprehensive Income Loss	'	'
Net loss	($9,849)	($10,190)
Other comprehensive income (loss):	'	'
Additional minimum pension liability	-622	1
Foreign currency translation adjustment	-69	-75
Comprehensive loss	($10,540)	($10,264)

CONSOLIDATED_STATEMENTS_OF_SHA

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (USD $)	Series B Convertible, Redeemable Preferred	Common Stock	Treasury Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Accumulated Deficit	Total
In Thousands, except Share data
Beginning, amount at Dec. 31, 2011	$2	$679	($64)	$101,720	($65)	($107,984)	($5,712)
Beginning, shares at Dec. 31, 2011	239,400	67,995,620	-6,704	'	'	'	'
Issuance of common stock pursuant to warrant exercises, Shares	'	7,052,647	'	'	'	'	'
Issuance of common stock pursuant to warrant exercises, Amount	'	70	'	3,457	'	'	3,527
Issuance of common stock pursuant to cashless warrant exercises, Shares	'	1,573,362	'	'	'	'	'
Issuance of common stock pursuant to cashless warrant exercises, Amount	'	16	'	688	'	'	704
Issuance of common stock pursuant to option exercises, Shares	'	24,924	'	'	'	'	'
Issuance of common stock pursuant to option exercises, Amount	'	'	'	7	'	'	7
Warrants issued to consultants as compensation	'	'	'	27	'	'	27
Warrants issued as consideration for asset purchase	'	'	'	87	'	'	87
Reclassification of warrants previously classified as derivative liabilities	'	'	'	13,588	'	'	13,588
Stock-based compensation expense	'	'	'	608	'	'	608
Additional minimum pension liability	'	'	'	'	1	'	1
Foreign currency translation adjustment	'	'	'	'	-75	'	-785
Dividends on preferred stock	'	'	'	'	'	-229	-229
Net loss	'	'	'	'	'	-10,190	-10,190
Ending, amount at Dec. 31, 2012	2	765	-64	120,182	-139	-118,403	2,343
Ending, shares at Dec. 31, 2012	239,400	76,646,553	-6,704	'	'	'	'
Issuance of common stock pursuant to warrant exercises, Shares	'	6,132,779	'	120,182	-139	-118,403	2,343
Issuance of common stock pursuant to warrant exercises, Amount	'	61	'	3,509	'	'	3,570
Issuance of common stock pursuant to cashless warrant exercises, Shares	'	4,458,493	'	'	'	'	'
Issuance of common stock pursuant to cashless warrant exercises, Amount	'	45	'	7,033	'	'	7,033
Issuance of common stock pursuant to option exercises, Shares	'	35,310	'	'	'	'	'
Issuance of common stock pursuant to option exercises, Amount	'	'	'	11	'	'	11
Stock issued to consultants as compensation, shares	'	264,000	'	'	'	'	'
Stock issued to consultants as compensation, amount	'	3	'	38	'	'	41
Warrants issued to consultants as compensation	'	'	'	108	'	'	108
Conversion of related party notes payable to common stock, shares	'	18,182	'	'	'	'	'
Conversion of related party notes payable to common stock, amount	'	2	'	10	'	'	10
Reclassification of warrants previously classified as derivative liabilities	'	'	'	186	'	'	186
Stock-based compensation expense	'	'	'	575	'	'	575
Additional minimum pension liability	'	'	'	'	-622	'	-622
Foreign currency translation adjustment	'	'	'	'	-69	'	-69
Dividends on preferred stock	'	'	'	'	'	-51	-51
Net loss	'	'	'	'	'	-9,849	-9,849
Ending, amount at Dec. 31, 2013	$2	$874	($64)	($131,652)	($830)	($128,303)	$3,331
Ending, shares at Dec. 31, 2013	239,400	87,555,317	-6,704	'	'	'	-9,849

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Cash flows from operating activities	'	'
Net income (loss)	($9,849)	($10,190)
Adjustments to reconcile net income (loss) to net cash used in operating activities	'	'
Depreciation and amortization	125	69
Amortization of debt discount and debt issuance costs	217	15
Stock based compensation	616	608
Change in fair value of derivative liabilities	4,776	4,712
Reduction in accounts payable from expiration of statute of limitations	-440	-336
Warrants issued in lieu of cash as compensation for services	108	27
Change in assets and liabilities	'	'
Accounts receivable	26	20
Inventory	-243	-217
Other assets	-50	-20
Accounts payable	-130	-8
Accrued expenses	-116	-737
Deferred revenue	102	494
Pension obligation	7	10
Total adjustments	4,998	4,637
Net cash used in operating activities	-4,851	-5,553
Cash flows from investing activities	'	'
Purchase of property and equipment	-193	-181
Net cash used in investing activities	-193	-181
Cash flows from financing activities	'	'
Repayment of notes payable	'	-45
Proceeds from exercise of stock options	11	7
Dividends paid	-51	-229
Proceeds from exercised stock purchase warrants	3,291	3,527
Net cash provided by financing activities	3,251	3,260
Effect of exchange rate changes on cash and cash equivalents	-69	-74
Net increase (decrease) in cash and cash equivalents	-1,862	-2,548
Cash and cash equivalents at beginning of year	4,225	6,773
Cash and cash equivalents at end of year	2,363	4,225
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	'	'
Cash paid for income taxes	1	'
Summary of non-cash investing and financing activities:	'	'
Conversion of related party notes payable into common stock	10	'
Warrants issued for intangible asset purchase	'	87
Contingent royalty payment	'	72
Acquisition of intangible assets with warrants	'	-159
Issuance of common stock pursuant to cashless warrant exercises	45	704
Additional minimum pension liability	-622	'
Reclassification of warrants previously classified as derivative liabilities to additional paid-in capital	6,684	13,588
Issuance of common warrants securing line of credit borrowing facility	580	'
Issuance of restricted stock pursuant to achievement of vesting conditions	$1	'

DESCRIPTION_OF_BUSINESS_AND_OP

DESCRIPTION OF BUSINESS AND OPERATIONS	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 1 - DESCRIPTION OF BUSINESS AND OPERATIONS	'
	Overview
	ImageWare Systems, Inc. (the “Company”) is incorporated in the state of Delaware. The Company is a pioneer and leader in the emerging market for biometrically enabled software-based identity management solutions. Using those human characteristics that are unique to us all, the Company creates software that provides a highly reliable indication of a person’s identity. The Company’s “flagship” product is the patented IWS Biometric Engine®. The Company’s products are used to manage and issue secure credentials, including national IDs, passports, driver licenses and access control credentials. The Company’s products also provide law enforcement with integrated mug shot, fingerprint LiveScan and investigative capabilities. The Company also provides comprehensive authentication security software using biometrics to secure physical and logical access to facilities or computer networks or internet sites. Biometric technology is now an integral part of all markets the Company addresses and all of the products are integrated into the IWS Biometric Engine.
	Recent Developments
	Contracts
	In August 2013, the Company was awarded a $2.2 million contract by its largest customer, the U.S. Department of Veteran Affairs (the "VA"), to expand its personal identity verification ("PIV") credentialing capabilities across federal, state and local facilities. Under the terms of the agreement, the Company delivered software licenses during the third quarter of 2013 and recognized approximately $1.5 million in product revenue. Additionally, the Company will recognize maintenance related service revenues valued at approximately $692,000 from this customer ratably over the next year.
	Liquidity and Capital Resources
	For the year ended December 31, 2013, the Company issued 6,132,779 shares of its common stock and received net proceeds of approximately $3,291,000 from the exercise of warrants for cash.
	In March 2013, the Company entered into a new unsecured line of credit agreement with available borrowing of up to $2,500,000. The credit line was extended by an existing shareholder and member of our Board of Directors. Borrowings under the credit facility bear interest of 8% per annum and are due in March 2015. At any time prior to the Maturity Date, the holder shall have the right to convert the outstanding balance owed into shares of the Company’s common stock by dividing the outstanding balance by $0.95.
	Advances under the credit facility are made at the Company’s request. The line of credit shall terminate, and no further advances shall be made, upon the earlier of the Maturity Date or such date that the Company consummates a debt and/or equity financing resulting in net proceeds to the Company of at least $2,500,000. In the event of such financing, the outstanding balance under the terms of this note shall be due and payable upon demand.
	As additional consideration for the unsecured line of credit agreement, the Company issued to the holder a warrant exercisable for 1,052,632 shares of the Company’s common stock. The warrant has a term of two years from the date of issuance and an exercise price of $0.95 per share.
	In March 2014, the holder of the line of credit agreed to increase the borrowing facility to an aggregate total of $3,500,000. Borrowings under the increased credit facility will bear interest at the same rate and are also due in March 2015. As consideration for the increase to the line of credit borrowing facility, the Company issued to the holder a warrant exercisable for 177,778 shares of the Company’s common stock. The warrant has a term of one year from the date of issuance and an exercise price of $2.25 per share.
	Historically, our principal sources of cash have included customer payments from the sale of our products, proceeds from the issuance of common and preferred stock and proceeds from the issuance of debt. Our principal uses of cash have included cash used in operations, payments relating to purchases of property and equipment and repayments of borrowings. We expect that our principal uses of cash in the future will be for product development including customization of identity management products for enterprise and consumer applications, further development of intellectual property, development of Software-as-a-Service (“SaaS”) capabilities for existing products as well as general working capital and capital expenditure requirements. We expect that, as our revenues grow, our sales and marketing and research and development expenses will continue to grow, albeit at a slower rate and, as a result, we will need to generate significant net revenues to achieve and sustain income from operations.
	Management believes that the Company’s current cash and cash equivalents will be sufficient to meet working capital and capital expenditure requirements for at least the next 12 months from the date of this filing and that we will have sufficient liquidity to fund our business and meet our contractual obligations over a period beyond the next 12 months.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	Principles of Consolidation
	The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated.
	Operating Cycle
	Assets and liabilities related to long-term contracts are included in current assets and current liabilities in the accompanying consolidated balance sheets, although they will be liquidated in the normal course of contract completion which may take more than one operating cycle.
	Use of Estimates
	The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. Significant estimates include the allowance for doubtful accounts receivable, inventory carrying values, deferred tax asset valuation allowances, accounting for loss contingencies, recoverability of goodwill and acquired intangible assets and amortization periods, assumptions used in the Black-Scholes model to calculate the fair value of share based payments, assumptions used in the application of fair value methodologies to calculate the fair value of derivative liabilities, revenue and cost of revenues recognized under the percentage of completion method and assumptions used in the application of fair value methodologies to calculate the fair value of pension assets and obligations. Actual results could differ from estimates.
	Cash and Cash Equivalents
	The Company defines cash equivalents as highly liquid investments with original maturities of less than 90 days that are not held for sale in the ordinary course of business.
	Accounts Receivable
	In the normal course of business, the Company extends credit without collateral requirements to its customers that satisfy pre-defined credit criteria. Accounts receivable are recorded net of an allowance for doubtful accounts. Accounts receivable are considered delinquent when the due date on the invoice has passed. The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions and other factors that may affect customers’ ability to pay to determine the level of allowance required.  Accounts receivable are written off against the allowance for doubtful accounts when all collection efforts by the Company have been unsuccessful.
	Inventories
	Finished goods inventories are stated at the lower of cost, determined using the average cost method, or market.  See note 6.
	Property, Equipment and Leasehold Improvements
	Property and equipment, consisting of furniture and equipment, are stated at cost and are being depreciated on a straight-line basis over the estimated useful lives of the assets, which generally range from three to five years. Maintenance and repairs are charged to expense as incurred. Major renewals or improvements are capitalized. When assets are sold or abandoned, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Expenditures for leasehold improvements are capitalized. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements.
	Fair Value of Financial Instruments
	For certain of the Company’s financial instruments, including accounts receivable, accounts payable, accrued expenses, deferred revenues and notes payable to related parties, the carrying amounts approximate fair value due to their relatively short maturities.
	Derivative Financial Instruments
	The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks.
	The Company reviews the terms of the common and preferred stock, warrants and convertible debt it issues to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument.
	Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value.
	The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method.
	Revenue Recognition
	The Company recognizes revenue from the following major revenue sources:
	●	Long-term fixed-price contracts involving significant customization
	●	Fixed-price contracts involving minimal customization
	●	Software licensing
	●	Sales of computer hardware and identification media
	●	Postcontract customer support (“PCS”)
	The Company’s revenue recognition policies are consistent with U.S. GAAP including the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 985-605, “Software Revenue Recognition”, ASC 605-35 “Revenue Recognition, Construction-Type and Production-Type Contracts”, “Securities and Exchange Commission Staff Accounting Bulletin 104”, and ASC 605-25 “Revenue Recognition, Multiple Element Arrangements”. Accordingly, the Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee is fixed or determinable, and collectability is reasonably assured.
	The Company recognizes revenue and profit as work progresses on long-term, fixed-price contracts involving significant amount of hardware and software customization using the percentage of completion method based on costs incurred to date compared to total estimated costs at completion. The primary components of costs incurred are third party software and direct labor cost including fringe benefits. Revenues recognized in excess of amounts billed are classified as current assets under “Costs and estimated earnings in excess of billings on uncompleted contracts”. Amounts billed to customers in excess of revenues recognized are classified as current liabilities under “Billings in excess of costs and estimated earnings on uncompleted contracts”. Revenue from contracts for which the Company cannot reliably estimate total costs or there are not significant amounts of customization are recognized upon completion. The Company also generates non-recurring revenue from the licensing of its software. Software license revenue is recognized upon the execution of a license agreement, upon deliverance, when fees are fixed and determinable, when collectability is probable and when all other significant obligations have been fulfilled. The Company also generates revenue from the sale of computer hardware and identification media. Revenue for these items is recognized upon delivery of these products to the customer. The Company’s revenue from periodic maintenance agreements is generally recognized ratably over the respective maintenance periods provided no significant obligations remain and collectability of the related receivable is probable. Pricing of maintenance contracts is consistent period to period and calculated as a percentage of the software or hardware revenue.  Amounts collected in advance for maintenance services are included in current liabilities under "Deferred revenue". Sales tax collected from customers is excluded from revenue.
	Goodwill
	The Company accounts for its intangible assets under the provisions of ASC 350, “Intangibles - Goodwill and Other”. In accordance with ASC 350, intangible assets with a definite life are analyzed for impairment under ASC 360-10-05 “Property, Plant and Equipment” and intangible assets with an indefinite life are analyzed for impairment under ASC 360 annually, or more often if circumstances dictate. The Company performs its annual goodwill impairment test in the fourth quarter of each year, or if required, at the end of each fiscal quarter.  In accordance with ASC 350, goodwill, or the excess of cost over fair value of net assets acquired is tested for impairment using a fair value approach at the “reporting unit” level. A reporting unit is the operating segment, or a business one level below that operating segment (referred to as a component) if discrete financial information is prepared and regularly reviewed by management at the component level. The Company’s reporting unit is at the entity level. The Company recognizes an impairment charge for any amount by which the carrying amount of a reporting unit’s goodwill exceeds its fair value. The Company uses fair value methodologies to establish fair values.
	The Company did not record any goodwill impairment charges for the years ended December 31, 2013 or 2012.
	Intangible and Long Lived Assets
	Intangible assets are carried at their cost less any accumulated amortization.  Any costs incurred to renew or extend the life of an intangible or long lived asset are reviewed for capitalization.  The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. The Company’s management currently believes there is no impairment of its long-lived assets. There can be no assurance, however, that market conditions will not change or demand for the Company’s products under development will continue. Either of these could result in future impairment of long-lived assets.
	Concentration of Credit Risk
	Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. The Company places its cash with high quality financial institutions and at times during the years ended December 31, 2013 and 2012 exceeded the FDIC insurance limits of $250,000 for 2013 and 2012. Sales are typically made on credit and the Company generally does not require collateral. The Company performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for doubtful accounts. The Company considers historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions and other factors that may affect customers’ ability to pay to determine the level of allowance required. Accounts receivable are presented net of an allowance for doubtful accounts of approximately $3,000 at December 31, 2013 and 2012.
	For the year ended December 31, 2013 one customer accounted for approximately 42% or $2,211,000 of total revenues and had trade receivables of $0 as of the end of the year.  For the year ended December 31, 2012 one customer accounted for approximately 15% or $611,000 of total revenues and had trade receivables of $0 as of the end of the year.
	Stock-Based Compensation
	At December 31, 2013, the Company had two stock-based compensation plans for employees and nonemployee directors, which authorize the granting of various equity-based incentives including stock options and restricted stock.
	The Company estimates the fair value of its stock options using a Black-Scholes option-pricing model, consistent with the provisions of ASC 718, “Compensation – Stock Compensation”. The fair value of stock options granted is recognized to expense over the requisite service period. Stock-based compensation expense for all share-based payment awards is recognized using the straight-line single-option method. Stock-based compensation expense is reported in operating expenses based upon the departments to which substantially all of the associated employees report and credited to additional paid-in-capital. Stock-based compensation expense related to equity options was approximately $575,000 and $571,000 for the years ended December 31, 2013 and 2012, respectively. In January 2010, the Company issued 847,258 shares of restricted stock to members of management and the Board. These shares vested quarterly over a three-year period. The restricted shares were issued as compensation for the cancellation of 1,412,096 options held by members of management and the Board. The Company evaluated the exchange in accordance with ASC 718 and determined there was no incremental cost to be recorded in conjunction with the exchange as the fair value of the options surrendered at the modification date exceeded the fair value of the restricted shares issued at the modification date.  The Company recorded approximately $0 and $37,000 in compensation expense for the years ended December 31, 2013 and 2012, respectively, related to these restricted shares.
	ASC 718 requires the use of a valuation model to calculate the fair value of stock-based awards. The Company has elected to use the Black-Scholes option-pricing model, which incorporates various assumptions including volatility, expected life, and interest rates. The Company is required to make various assumptions in the application of the Black-Scholes option-pricing model. The Company has determined that the best measure of expected volatility is based on the historical weekly volatility of the Company’s common stock. Historical volatility factors utilized in the Company’s Black-Scholes computations for options granted during the years ended December 31, 2013 and 2012 ranged from 78% to 103%. The Company has elected to estimate the expected life of an award based upon the SEC approved “simplified method” noted under the provisions of Staff Accounting Bulletin No. 110. The expected term used by the Company during the years ended December 31, 2013 and 2012 was 5.9 years. The difference between the actual historical expected life and the simplified method was immaterial. The interest rate used is the risk free interest rate and is based upon U.S. Treasury rates appropriate for the expected term. Interest rates used in the Company’s Black-Scholes calculations for the years ended December 31, 2013 and 2012 averaged 2.6%. Dividend yield is zero as the Company does not expect to declare any dividends on the Company’s common shares in the foreseeable future.
	In addition to the key assumptions used in the Black-Scholes model, the estimated forfeiture rate at the time of valuation is a critical assumption. The Company has estimated an annualized forfeiture rate of approximately 0% for corporate officers, 4.1% for members of the Board of Directors and 6.0% for all other employees. The Company reviews the expected forfeiture rate annually to determine if that percent is still reasonable based on historical experience.
	Income Taxes
	Current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is computed for the expected future impact of differences between the financial reporting and tax bases of assets and liabilities and for the expected future tax benefit to be derived from tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
	Foreign Currency Translation
	The financial position and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. Revenues and expenses of such subsidiaries have been translated into U.S. dollars at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of shareholders’ equity, unless there is a sale or complete liquidation of the underlying foreign investments. The Company translates foreign currencies of its German, Canadian and Mexican subsidiaries. The cumulative translation adjustment, which is recorded in accumulated other comprehensive income, decreased approximately $69,000 for the year ended December 31, 2013 and decreased approximately $75,000 for the year ended December 31, 2012.
	Comprehensive Income
	Comprehensive income consists of net gains and losses affecting shareholders’ equity that, under generally accepted accounting principles, are excluded from net loss. For the Company, the only items are the cumulative translation adjustment and the additional minimum liability related to the Company’s defined benefit pension plan, recognized pursuant to ASC 715-30, "Compensation - Retirement Benefits - Defined Benefit Plans – Pension".
	Advertising Costs
	The Company expenses advertising costs as incurred. The Company incurred approximately $12,000 in advertising expenses during the years ended December 31, 2013 and 2012.
	Loss Per Share
	Basic loss per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period. Diluted loss per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period, adjusted to include, if dilutive, potential dilutive shares consisting of convertible preferred stock, convertible notes payable, stock options and warrants, calculated using the treasury stock and if-converted methods.  For diluted loss per share calculation purposes, the net loss available to commons shareholders is adjusted to add back any preferred stock dividends and any interest on convertible debt reflected in the consolidated statement of operations for the respective periods.
	(Amounts in thousands, except share and per share amounts)		Year Ended December 31,
			2013			2012
	Numerator for basic and diluted loss per share:
	Net loss		$	(9,849	)	$	(10,190	)
	Preferred dividends			(51	)		(51	)
	Net loss available to common shareholders		$	(9,900	)	$	(10,241	)
	Denominator for basic loss per share — weighted-average shares outstanding			81,231,962			70,894,916
	Effect of dilutive securities			—			—
	Denominator for diluted loss per share — weighted-average shares outstanding			81,231,962			70,894,916
	Basic and diluted loss per share:
Net loss		$	(0.12	)	$	(0.14	)
Preferred dividends			(—	)		(—	)
Net loss available to common shareholders		$	(0.12	)	$	(0.14	)
The Company has excluded the following weighted-average securities from the calculation of diluted loss per share, as their effect would have been antidilutive:
		Common Share Equivalents at December 31, 2013			Common Share Equivalents at December 31, 2012
Potential Dilutive Securities:
Convertible notes payable			101,185			100,018
Convertible preferred stock – Series B			46,139			47,880
Stock options			1,782,221			1,135,077
Restricted stock grants			80,932			324,863
Warrants			8,455,124			24,996,737
Total Potential Dilutive Securities			10,465,601			26,604,575
Recently Issued Accounting Standards
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the “FASB”), or other standard setting bodies, which are adopted by us as of the specified effective date.  Unless otherwise discussed, the Company’s management believes the impact of recently issued standards not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.
FASB ASU 2012-02.  In July 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This new accounting standard allows companies to perform a qualitative assessment to determine whether further impairment testing of indefinite-lived intangible assets is necessary. Under the guidance in ASU 2012-02, an entity has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.
FASB ASU 2013-05. In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force). ASU 2013-05 requires that when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. The provisions of ASU 2013-05 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. When adopted, ASU 2013-05 is not expected to materially impact our consolidated financial statements.
FASB ASU 2013-11. In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This guidance requires netting unrecognized tax benefits against deferred tax assets for a loss or other carryforward that would apply in settlement of uncertain tax positions. This guidance will be effective for annual reporting periods beginning after December 15, 2013. We do not believe that adoption of this guidance will have a material impact on our consolidated financial statements or disclosures.

FAIR_VALUE_ACCOUNTING

FAIR VALUE ACCOUNTING	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 3 - FAIR VALUE ACCOUNTING	'
	The Company accounts for fair value measurements in accordance with ASC 820, “Fair Value Measurements and Disclosures,” which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements.
	ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:
		Level 1	Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
		Level 2	Applies to assets or liabilities for which there are inputs other than quoted prices included within Level 1 that are observable for the asset or liability such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical assets or liabilities in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data.
		Level 3	Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
	The following table sets forth the Company’s financial assets and liabilities measured at fair value by level within the fair value hierarchy. As required by ASC 820, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
		Fair Value at December 31, 2013
	($ in thousands)	Total				Level 1			Level 2			Level 3
	Assets:
	Pension assets		$	1,790			$	1,790		$	—		$	—
	Totals		$	1,790			$	1,790		$	—		$	—
	Liabilities:
	Derivative liabilities		$	57			$	—		$	—		$	57
	Totals		$	57			$	—		$	—		$	57
			Fair Value at December 31, 2012
	($ in thousands)		Total				Level 1			Level 2			Level 3
	Assets:
	Pension assets		$	1,630			$	1,630		$	—		$	—
	Totals		$	1,630			$	1,630		$	—		$	—
	Liabilities:
	Derivative liabilities		$	2,244			$	—		$	—		$	2,244
	Totals		$	2,244			$	—		$	—		$	2,244
	The Company’s pension assets are classified within Level 1 of the fair value hierarchy because they are valued using market prices. The pension assets are primarily comprised of the cash surrender value of insurance contracts. All plan assets are managed in a policyholder pool in Germany by outside investment managers. The investment objectives for the plan are the preservation of capital, current income and long-term growth of capital.
	As of December 31, 2013, the Company had 40,000 outstanding warrants to purchase shares of the Company’s common stock that qualified for derivative liability treatment.  The recorded fair market value of those warrants at December 31, 2013 was approximately $57,000 which is reflected as a current liability in the consolidated balance sheet as of December 31, 2013. The fair value of the Company’s derivative liabilities are classified within Level 3 of the fair value hierarchy because they are valued using pricing models that incorporate management assumptions that cannot be corroborated with observable market data.  The Company uses Monte-Carlo simulation methodologies and the Black-Scholes valuation model in the determination of the fair value of the derivative liabilities.
	The Monte-Carlo simulation methodology is affected by the Company’s stock price as well as assumptions regarding the expected stock price volatility over the term of the derivative liabilities in addition to the probability of future financings. The Black-Scholes valuation model is affected by the Company’s stock price as well as assumptions regarding the expected stock price volatility over the term of the derivative liabilities in addition to expected dividend yield and risk free interest rates appropriate for the expected term.
	The Company monitors the activity within each level and any changes with the underlying valuation techniques or inputs utilized to recognize if any transfers between levels are necessary.  That determination is made, in part, by working with outside valuation experts for Level 3 instruments and monitoring market related data and other valuation inputs for Level 1 and Level 2 instruments.
	A reconciliation of the Company’s liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) is as follows:
	($ in thousands)		Derivative Liabilities
	Balance December 31, 2011		$	11,824
	Included in earnings			4,712
	Settlements			(14,292	)
	Issuances			—
	Transfers in and /or out of Level 3			—
	Balance at December 31, 2012		$	2,244
	Included in earnings			4,776
	Settlements			(6,963	)
	Issuances			—
	Transfers in and/or out of Level 3			—
	Balance at December 31, 2013		$	57
	All unrealized gains or losses resulting from changes in value of any Level 3 instruments are reflected as a separate line in the consolidated statement of operations in arriving at net loss. The Company is not a party to any hedge arrangements, commodity swap agreements or any other derivative financial instruments.  See further disclosures regarding the Company’s derivative liabilities in Note 10.

INTANGIBLE_ASSETS_AND_GOODWILL

INTANGIBLE ASSETS AND GOODWILL	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 4 - INTANGIBLE ASSETS AND GOODWILL	'
	The Company has intangible assets in the form of trademarks, trade names and patents. The carrying amount of the Company’s acquired trademarks and trade names were approximately $31,000 and $47,000 as of December 31, 2013 and 2012, respectively, which include accumulated amortization of $316,000 and $300,000 as of December 31, 2013 and 2012, respectively. Amortization expense related to trademarks and tradenames was $16,000 for the years ended December 31, 2013 and 2012. All intangible assets are amortized over their estimated useful lives with no estimated residual values. Any costs incurred by the Company to renew or extend the life of intangible assets will be evaluated under ASC No. 350, Intangibles – Goodwill and Other, for proper treatment.
	In June 2012, the Company entered into an asset purchase agreement with Vocel, Inc., a Delaware corporation, whereby the Company purchased certain assets, consisting primarily of certain patents and trademarks. The Company evaluated this transaction under ASC No. 805, Business Combinations, and determined that this transaction constituted an asset purchase.
	As consideration for this asset purchase:
	●	The Company issued to Vocel a warrant to purchase 150,000 shares of the Company’s common stock (“Purchaser Warrant”). The Purchaser Warrant is exercisable at $0.88 per share and vests 100% when the Company has derived $500,000 of gross revenue from the sale or license of the purchased intellectual property (“Warrant Vesting Date”). The Purchaser Warrant is exercisable for a period of three years from the Warrant Vesting Date; and
	●	The Company agreed to pay Vocel a royalty of 7.5% of gross revenue received by the Company from any third party sale or license of the purchased intellectual property.
	The Company determined the aggregate fair value of the consideration issued to be approximately $159,000 and allocated this amount to the relative fair value of the assets acquired resulting in $159,000 being allocated to patents. The Company began amortization of the acquired patents in the third quarter of 2012 on a straight-line basis over their weighted-average remaining life of approximately 13.5 years. Amortization expense related to patents was $12,000 and $6,000 for the years ended December 31, 2013 and 2012, respectively.
	The following table presents the changes in the carrying amounts of the Company’s acquired intangible assets for the years ended December 31, 2013 and 2012. All intangible assets are being amortized over their estimated useful lives with no estimated residual values.
	($ in thousands)		Total
	Balance of intangible assets as of December 31, 2011		$	63
	Intangible assets acquired			159
	Amortization			(22	)
	Impairment losses			—
	Balance of intangible assets as of December 31, 2012		$	200
	Intangible assets acquired			—
	Amortization			(28	)
	Impairment losses			—
	Balance of intangible assets as of December 31, 2013		$	172
	The Company annually, or more frequently if events or circumstances indicate a need, tests the carrying amount of goodwill for impairment. The Company performs its annual impairment test in the fourth quarter of each year. A two-step impairment test is used to first identify potential goodwill impairment and then measure the amount of goodwill impairment loss, if any. The first step was conducted by determining and comparing the fair value, employing the market approach, of the Company’s reporting unit to the carrying value of the reporting unit. The Company continues to have only one reporting unit, Identity Management. Based on the results of this impairment test, the Company determined that its goodwill was not impaired as of December 31, 2013 and 2012.
	Amortization expense for the years ended December 31, 2013 and 2012 was approximately $28,000 and $22,000, respectively.
	The estimated acquired intangible amortization expense for the next five fiscal years is as follows:
	Fiscal Year Ended December 31,		Estimated Amortization
			Expense
			($ in thousands)
	2014		$	28
	2015			27
	2016			12
	2017			12
	2018			12
	Thereafter			81
	Totals		$	172

RELATED_PARTIES

RELATED PARTIES	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 5 - RELATED PARTIES	'
	As more fully described in Note 9, on November 14, 2008 the Company entered into a series of convertible promissory notes (the “Related-Party Convertible Notes”), aggregating $110,000 with certain officers and members of the Company’s Board of Directors. The Related-Party Convertible Notes bear interest at 7.0% per annum and were originally due February 14, 2009.
	In conjunction with the original issuance of the Related-Party Convertible Notes in 2008, the Company issued an aggregate of 149,996 warrants to the note holders to purchase shares of common stock of the Company. All such warrants were exercised, on a cashless basis, between October and November 2013.
	The Company did not repay the Related-Party Convertible Notes on the due date. In August 2009, the Company received from the Related-Party Convertible Note holders a waiver of default and extension to January 31, 2010 of the maturity date of the Related-Party Convertible Notes. As consideration for the waiver and note extension, the Company issued to the Related-Party Convertible Note holders an aggregate of 150,000 warrants to purchase shares of the Company’s common stock. The warrants have an exercise price of $0.50 per share and expire on August 25, 2014, of which warrants to purchase 136,364 shares of common stock were outstanding and exercisable as of December 31, 2013.
	On January 21, 2013, the holders of the Related-Party Convertible Notes agreed to extend the due date on their respective convertible notes to be due and payable not later than June 30, 2014, however, the Related-Party Convertible Notes will be callable at any time, at the option of the note holder, prior to June 30, 2014. During the year ended December 31, 2013, a Related Party Convertible Note holder elected to convert the principal amount of $10,000 of their respective Related Party Convertible Note into 18,182 shares of common stock.
	During the year ended December 31, 2012 the Company entered into a series of professional service contracts with an entity that a member of the Company’s Board of Directors has an ownership interest in. The aggregate contract value was $370,000 for the year ended December 31, 2012, and the Company paid the professional services firm approximately $0 and $188,000 during the years ended December 31, 2013 and 2012, respectively.
	In March 2013, the Company entered into a new unsecured line of credit agreement with available borrowing of up to $2,500,000. The credit line was extended by an existing shareholder and member of our Board of Directors. See Note 9. Borrowings under the credit facility bear interest of 8% per annum and are due in March 2015. At any time prior to the Maturity Date, the holder shall have the right to convert the outstanding balance owed into shares of the Company’s common stock by dividing the outstanding balance by $0.95.
	As of December 31, 2013, no advances were made under the unsecured line of credit agreement.

INVENTORY

INVENTORY	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 6 - INVENTORY	'
	Inventories of $505,000 as of December 31, 2013 were comprised of work in process of $499,000 representing direct labor costs on in-process projects and finished goods of $6,000 net of reserves for obsolete and slow-moving items of $3,000. Inventories of $262,000 as of December 31, 2012 were comprised of work in process of $254,000 representing direct labor costs on in-process projects and finished goods of $8,000 net of reserves for obsolete and slow-moving items of $3,000. Appropriate consideration is given to obsolescence, excessive levels, deterioration and other factors in evaluating net realizable value and required reserve levels.

PROPERTY_AND_EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 7 - PROPERTY AND EQUIPMENT	'
	Property and equipment at December 31, 2013 and 2012, consists of:
	($ in thousands)	2013			2012
	Equipment	$	700		$	950
	Leasehold improvements		5			—
	Furniture		103			75
			808			1,025
	Less accumulated depreciation		(563	)		(875	)
		$	245		$	150
	Total depreciation expense for the years ended December 31, 2013 and 2012 was approximately $97,000 and $47,000, respectively.

ACCRUED_EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 8 - ACCRUED EXPENSES	'
	Principal components of accrued expenses consist of:
	($ in thousands)	December 31,		December 31,
		2013		2012
	Compensated absences	$	241	$	248
	Wages, payroll taxes and sales commissions		4		32
	Customer deposits		38		60
	Liquidated damages		200		200
	Royalties		147		251
	Pension and employee benefit plans		33		140
	Income and sales taxes		142		125
	Interest and dividends		52		87
	Other		67		123
		$	924	$	1,266

NOTES_PAYABLE_AND_LINE_OF_CRED

NOTES PAYABLE AND LINE OF CREDIT	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 9 - NOTES PAYABLE AND LINE OF CREDIT	'
		December 31,			December 31,
		2013			2012
	Notes payable to related parties:
	7% convertible promissory notes. Face value of notes $55 and $65 at December 31, 2013 and 2012, respectively. Discount on notes is $0 at December 31, 2013 and 2012. Notes were due January 2010.  In January 2013, the Company received an extension to June 30, 2014. Notes are callable at any time at option of holder.		55			65
	Total notes payable to related parties		55			65
	Total notes payable		55			65
	Less current portion		(55	)		(65	)
	Long-term notes payable	$	—		$	—
	7% Convertible Promissory Notes to Related Parties
	On November 14, 2008, the Company entered into a series of convertible promissory notes (the "Related-Party Convertible Notes"), in the principal aggregate amount of $110,000, with certain officers and members of the Company’s Board of Directors. The Related-Party Convertible Notes bear interest at 7.0% per annum and were due February 14, 2009. The principal amount of the Related-Party Convertible Notes plus accrued but unpaid interest is convertible at the option of the holder into common stock of the Company. The number of shares into which the Related-Party Convertible Notes are convertible shall be calculated by dividing the outstanding principal and accrued but unpaid interest by $0.55 (the “Conversion Price”).
	In conjunction with the issuance of the Related-Party Convertible Notes, the Company issued an aggregate of 149,996 warrants to the note holders to purchase common stock of the Company which were exercised in their entirety, on a cashless basis, between October and November 2013 resulting in the issuance of 111,783 shares of the Company’s common stock.
	The Company, in 2008, initially recorded the convertible notes net of a discount equal to the fair value allocated to the warrants of approximately $13,000. The Company estimated the fair value of the warrants using the Black-Scholes option pricing model using the following assumptions: term of 5 years, a risk free interest rate of 2.53%, a dividend yield of 0%, and volatility of 96%. The convertible notes also contained a beneficial conversion feature, resulting in an additional debt discount of $12,000. The beneficial conversion amount was measured using the accounting intrinsic value, i.e. the excess of the aggregate fair value of the common stock into which the debt is convertible over the proceeds allocated to the security. The Company has accreted the beneficial conversion feature over the life of the Related-Party Convertible Notes.
	The Company did not repay the Related-Party Convertible Notes on the due date. In August 2009, the Company received from the Related-Party Convertible Note holders a waiver of default and extension of the Maturity Date to to January 31, 2010. As consideration for the waiver and note extension, the Company issued to the Related-Party Convertible Note holders warrants to purchase an aggregate of 150,000 shares of the Company’s common stock. The warrants have an exercise price of $0.50 per share and expire on August 25, 2014. In December 2013, 13,636 warrants were exercised, on a cashless basis, resulting in the issuance of 9,969 shares of the Company’s common stock
	The Company did not repay the notes on January 31, 2010.  During the year ended December 31, 2012, the Company repaid $45,000 in principal to certain holders of the Related-Party Convertible Notes. On January 21, 2013, the holders of the Related-Party Convertible Notes agreed to extend the due date on their respective convertible notes to be due and payable not later than June 30, 2014 however, the Related-Party Convertible Notes will be callable at any time, at the option of the note holder, prior to June 30, 2014.  In December 2013, a holder converted $10,000 of the Related-Party Convertible Notes into 18,182 shares of common stock of the Company.
	Line of Credit
	In March 2013, the Company entered into a new unsecured line of credit agreement with available borrowing of up to $2.5 million. The credit line was extended by an existing shareholder and member of our Board of Directors. Borrowings under the credit facility bear interest of 8% per annum and are due in March 2015. At any time prior to the Maturity Date, the holder shall have the right to convert the outstanding balance owed into shares of the Company’s common stock by dividing the outstanding balance by $0.95.
	Advances under the credit facility are made at the Company’s request. The line of credit shall terminate, and no further advances shall be made, upon the earlier of the Maturity Date or such date that the Company consummates a debt and/or equity financing resulting in net proceeds to the Company of at least $2.5 million. In the event of such financing, the outstanding balance under the terms of this note shall be due and payable upon demand.
	As additional consideration for the unsecured line of credit agreement, the Company issued to the holder a warrant exercisable for 1,052,632 shares of the Company’s common stock. The warrant has a term of two years from the date of issuance and an exercise price of $0.95 per share.
	The Company estimated the fair value of the warrants using the Black-Scholes option pricing model using the following assumptions: term of two years, a risk free interest rate of 2.58%, a dividend yield of 0%, and volatility of 79%. The Company recorded the fair value of the warrants as a deferred financing fee of approximately $580,000 to be amortized over the life of the line of credit agreement. During the year ended December 31, 2013, the Company recorded approximately $217,000 in deferred financing fee amortization expense.  Such expense is recorded as a component of interest expense in the Company’s consolidated statement of operations for the period ended December 31, 2013.
	The Company evaluated the line of credit agreement and determined that the instrument contains a contingent beneficial conversion feature, i.e. an embedded conversion right that enables the holder to obtain the underlying common stock at a price below market value. The beneficial conversion feature is contingent as the terms of the conversion do not permit the Company to compute the number of shares that the holder would receive if the contingent event occurs (i.e. future borrowings under the line of credit agreement). The Company has considered the accounting for this contingent beneficial conversion feature using the guidance in ASC 470, Debt. The guidance in ASC 470 states that a contingent beneficial conversion feature in an instrument shall not be recognized in earnings until the contingency is resolved. The beneficial conversion features of future borrowings under the line of credit agreement will be measured using the intrinsic value calculated at the date the contingency is resolved using the exercise price and trading value of the Company’s common stock at the date the line of credit agreement was issued (commitment date). Such amounts could range from $0 to approximately $474,000 depending on the amount borrowed by the Company under the line of credit agreement.
	As of December 31, 2013, no advances were made under the unsecured line of credit agreement.
	In March 2014, the holder of the line of credit agreed to increase the borrowing facility to an aggregate total of $3,500,000. Borrowings under the increased credit facility will bear interest at the same rate and are also due in March 2015. As consideration for the increase to the line of credit borrowing facility, the Company issued to the holder a warrant exercisable for 177,778 shares of the Company’s common stock. The warrant has a term of one year from the date of issuance and an exercise price of $2.25 per share.

DERIVATIVE_LIABILITIES

DERIVATIVE LIABILITIES	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 10 - DERIVATIVE LIABILITIES	'
	The Company accounts for its derivative instruments under the provisions of ASC 815, “Derivatives and Hedging-Contracts in Entity’s Own Equity-Scope and Scope Exceptions”. Under the provisions of ASC 815, the anti-dilution and cash settlement provisions in certain warrants (collectively the “Derivative Liabilities”) qualify as derivative instruments.
	The Company is required to mark-to-market, at the end of each reporting period, the value of the Derivative Liabilities.  The Company revalues these Derivative Liabilities at the end of each reporting period by using available market information and commonly accepted valuation methodologies.  The periodic change in value of the Derivative Liabilities is recorded as either non-cash derivative income (if the value of the embedded derivative and warrants decrease) or as non-cash derivative expense (if the value of the embedded derivative and warrants increase).  Although the values of the embedded derivative and warrants are affected by interest rates, the remaining contractual conversion period and the Company’s stock volatility, the primary cause of the change in the values of the Derivative Liabilities will be the value of the Company’s common stock.  If the stock price goes up, the value of these derivatives will generally increase and if the stock price goes down the value of these derivatives will generally decrease.
	The Company uses a Monte-Carlo simulation methodology and the Black-Scholes valuation model in the determination of the fair value of the Derivative Liabilities.  The Monte-Carlo simulation methodology is affected by the Company’s stock price as well as assumptions regarding the expected stock price volatility over the term of the Derivative Liabilities and assumptions regarding future financings. The Company utilized the services of an independent valuation firm, Vantage Point Advisors, Inc. to perform the Monte-Carlo simulations.
	The Black-Scholes valuation model is affected by the Company’s stock prices as well as assumptions regarding the expected stock price volatility of the term of the derivative liabilities in addition to interest rates and dividend yields.
	As of December 31, 2012, the Company had 5,211,229 outstanding warrants to purchase shares of the Company’s common stock that qualified for derivative liability treatment.  The recorded fair market value of those warrants at December 31, 2012 was approximately $2,244,000, which is reflected as a non-current liability in the consolidated balance sheet as of December 31, 2012.
	As of December 31, 2013, the Company had 40,000 outstanding warrants to purchase shares of the Company’s common stock that qualified for derivative liability treatment. The recorded fair market value of those warrants at December 31, 2013 was approximately $57,000, which is reflected as a current liability in the consolidated balance sheet as of December 31, 2013. During the twelve months ended December 31, 2013, 4,864,989 warrants qualifying for derivative liability treatment were exercised on a cashless basis resulting in the issuance of 3,491,579 shares of common stock with an aggregate fair market value of approximately $6,498,000.  Also during the twelve months ended December 31, 2013, 156,240 warrants were exercised for cash, resulting in the issuance of 156,240 shares of common stock with an aggregate fair market value of approximately $357,000 offset by cash proceeds of approximately $78,000. In December 2013, the Company modified 150,000 warrants by removing the anti-dilution provisions such that these warrants no longer qualify as derivative liabilities.  The Company determined that there was no incremental cost to be recorded at the modification date. As a result of the agreements to amend the warrants and the warrants no longer qualifying for derivative liability treatment, the Company reclassified approximately $186,000 of derivative liabilities into a component of additional paid-in capital in the Company's consolidated financial statements for the year ended December 31, 2013.

INCOME_TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 11 - INCOME TAXES	'
	The Company accounts for income taxes in accordance with ASC 740, Accounting for Income Taxes, (ASC 740). Deferred income taxes are recognized for the tax consequences related to temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for tax purposes at each year-end, based on enacted tax laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established when necessary based on the weight of available evidence, if it is considered more likely than not that all or some portion of the deferred tax assets will not be realized. Income tax expense is the sum of current income tax plus the change in deferred tax assets and liabilities.  The Company has established a valuation allowance against its deferred tax asset due to the uncertainty surrounding the realization of such asset.
	ASC 740 requires a company to first determine whether it is more-likely-than-not (defined as a likelihood of more than fifty percent) that a tax position will be sustained based on its technical merits as of the reporting date, assuming that taxing authorities will examine the position and have full knowledge of all relevant information. A tax position that meets this more-likely-than-not threshold is then measured and recognized at the largest amount of benefit that is greater than fifty percent likely to be realized upon effective settlement with a taxing authority.  The amount accrued for uncertain tax positions was zero at December 31, 2013 and 2012, respectively.
	The Company’s uncertain position relative to unrecognized tax benefits and any potential increase in these liabilities relates primarily to the allocations of revenue and costs among the Company’s global operations and the impact of tax rulings made during the period affecting its tax positions. The Company’s existing tax position could result in liabilities for unrecognized tax benefits. The Company recognizes interest and/or penalties related to uncertain tax positions in income tax expense. The amount of interest and penalties accrued as of December 31, 2013 and 2012 was $12,000 and $4,000, respectively.
	Significant judgment is required in evaluating the Company’s uncertain tax positions and determining the Company’s provision for income taxes. No assurance can be given that the final tax outcome of these matters will not be different from that which is reflected in the Company’s historical income tax provisions and accruals. The Company adjusts these items in light of changing facts and circumstances. To the extent that the final tax outcome of these matters is different than the amounts recorded, such differences will impact the provision for income taxes in the period in which such determination is made.
	The significant components of the income tax provision are as follows:
	($ in thousands)	Year Ended December 31,
		2013			2012
	Current
	Federal	$	—		$	—
	State		—			—
	Foreign		8			22
	Deferred
	Federal		—			—
	State		—			—
	Foreign		—			—
		$	8		$	22
	The principal components of the Company’s deferred tax assets at December 31, 2013 and 2012 are as follows:
	($ in thousands)	2013			2012
	Net operating loss carryforwards	$	12,703		$	11,554
	Intangible and fixed assets		538			653
	Stock based compensation		1,319			1,089
	Reserves and accrued expenses		6			6
	Other		(121	)		(140	)
			14,445			13,162
	Less valuation allowance		(14,445	)		(13,162	)
	Net deferred tax assets	$	—		$	—
	A reconciliation of the provision for income taxes to the amount computed by applying the statutory income tax rates to loss before income taxes is as follows:
		2013			2012
	Amounts computed at statutory rates	$	(3,349	)	$	(3,465	)
	State income tax, net of federal benefit		(47	)		(81	)
	Expiration of net operating loss carryforwards		75			473
	Non-deductible interest and change in fair value of derivative liabilities		1,698			1,602
	Foreign taxes		370			473
	Other		4			4
	Net change in valuation allowance on deferred tax assets		1,257			1,016
		$	8		$	22
	The Company has established a valuation allowance against its deferred tax assets due to the uncertainty surrounding the realization of such assets.
	At December 31, 2013 and 2012, the Company had federal and state net operating loss carryforwards, a portion of which may be available to offset future taxable income for tax purposes. The federal net operating loss carryforwards expire at various dates from 2014 through 2032. The state net operating loss carryforwards expire at various dates from 2014 through 2022.
	The Internal Revenue Code (“the Code”) limits the availability of certain tax credits and net operating losses that arose prior to certain cumulative changes in a corporation’s ownership resulting in a change of control of the Company. The Company’s use of its net operating loss carryforwards and tax credit carryforwards will be significantly limited because the Company believes it underwent “ownership changes”, as defined under Section 382 of the Internal Revenue Code, in 1991, 1995, 2000, 2003, 2004, 2011 and 2012, though the Company has not performed a study to determine the limitation. The Company has reduced its deferred tax assets to zero relating to its federal and state research credits because of such limitations. The Company continues to disclose the tax effect of the net operating loss carryforwards at their original amount in the table above as the actual limitation has not yet been quantified. The Company has also established a full valuation allowance for substantially all deferred tax assets due to uncertainties surrounding its ability to generate future taxable income to realize these assets. Since substantially all deferred tax assets are fully reserved, future changes in tax benefits will not impact the effective tax rate. Management periodically evaluates the recoverability of the deferred tax assets. If it is determined at some time in the future that it is more likely than not that deferred tax assets will be realized, the valuation allowance would be reduced accordingly at that time.
	Tax returns for the years 2009 through 2013 are subject to examination by taxing authorities.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 12 - COMMITMENTS AND CONTINGENCIES	'
	Employment Agreements
	The Company has employment agreements with its Chief Executive Officer, Senior Vice President of Administration and Chief Financial Officer, Chief Technical Officer, and Vice President of Business Development. The Company may terminate the agreements with or without cause. Subject to the conditions and other limitations set forth in each respective employment agreement, each executive will be entitled to the following severance benefits if the Company terminates the executive’s employment without cause or in the event of an involuntary termination  (as defined in the employment agreements) by the Company or by the executive:
	Under the terms of the agreement, the Chief Executive Officer will be entitled to the following severance benefits if we terminate his employment without cause or in the event of an involuntary termination: (i) a lump sum cash payment equal to twenty-four months base salary; (ii) continuation of fringe benefits and medical insurance for a period of three years; and (iii) immediate vesting of 50% of outstanding stock options and restricted stock awards. In the event that the Chief Executive Officer’s employment is terminated within six months prior to or thirteen months following a change of control, the Chief Executive Officer is entitled to the severance benefits described above, except that 100% of the Chief Executive Officer’s outstanding stock options and restricted stock awards will immediately vest.
	Under the terms of the employment agreements with our Senior Vice President of Administration and Chief Financial Officer, Chief Technical Officer, and Vice President of Business Development, these executives will be entitled to the following severance benefits if we terminate their employment without cause or in the event of an involuntary termination: (i) a lump sum cash payment equal to six months of base salary; (ii) continuation of their fringe benefits and medical insurance for a period of six months; (iii) immediate vesting of 50% of their outstanding stock options and restricted stock awards. In the event that their employment is terminated within six months prior to or thirteen months following a change of control (defined below), they are entitled to the severance benefits described above, except that 100% of their outstanding stock options and restricted stock awards will immediately vest.
	Litigation
	On September 21, 2012, Blue Spike, LLC, a Texas limited liability company (“Blue Spike”), filed claims against the Company in the United States District Court for the Eastern District of Texas, alleging that the Company is impermissibly using Blue Spike’s patented technologies in certain Company products, including its Biometric Engine. To date, Blue Spike has filed similar suits asserting claims of patent infringement against over 100 companies since August 9, 2012. The defendants span a wide range of industries, from Internet search engines to chip manufacturers, digital rights management, video streaming and digital watermarking.  The Company has filed a motion to dismiss the complaint and a motion to transfer Blue Spike’s case against the Company to San Diego.  The Company’s motion to dismiss Blue Spike’s contributory and willful infringement allegations against the Company was granted by the Court.  The Company’s motion to transfer has not been ruled upon.  Currently pending are numerous other motions to dismiss and at least 12 motions filed by various other defendants to transfer the action to the Northern District of California, Central District of California, District of Massachusetts, Southern District of New York, and District of New Jersey.  None of the transfer motions has yet been ruled upon. Blue Spike is seeking to recover an unspecified amount of compensatory damages from the Company, and an injunction to enjoin the Company from further acts of alleged infringement.  The Company believes Blue Spike’s claim to be without merit and intends to vigorously defend itself. The Company is unable to estimate a possible range of loss at this time.
	Other than as specifically described above, we are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations.  Other than described above, there is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of the Company or any of our subsidiaries, threatened against or affecting the Company, our common stock, any of our subsidiaries or of the Company’s or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.
	Leases
	In December 2010, we relocated our corporate headquarters to Rancho Bernardo Road in San Diego, California and entered into a three-year lease agreement. In August 2013, we entered into an amendment effective November 2013, whereby the Company consolidated its existing leases. The Company leased an additional 4,793 square feet of space in the same location while simultaneously vacating 2,560 square feet of space resulting in total rented square feet of 9,927. The lease term commenced on November 1, 2013 and ends on October 31, 2017.  Future minimum rent payments under the amended lease will be approximately  $210,000 in 2014, $216,000 in 2015, $222,000 in 2016 and $190,000 in 2017.
	In April 2012, we entered into a lease extension of our Portland, Oregon offices whereby we extended the lease term for a period of 36 months commencing November 1, 2012 until October 31, 2015.  Future minimum rent payments will be approximately $141,000 in 2013, $146,000 in 2014 and $124,000 in 2015.
	In addition to the corporate headquarters lease in San Diego, California, we also lease space in Ottawa, Province of Ontario, Canada; and Mexico City, Mexico.
	At December 31, 2013, future minimum lease payments are as follows:
	($ in thousands)
	2014	$	399
	2015	$	382
	2016	$	233
	2017	$	190
	2018 and thereafter	$	—
		$	1,204
	Rental expense incurred under operating leases for the years ended December 31, 2013 and 2012 was approximately $418,000 and $521,000, respectively.

EQUITY

EQUITY	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 13 - EQUITY	'
	The Company’s Articles of Incorporation, as amended, authorize the issuance of two classes of stock to be designated “Common Stock” and “Preferred Stock”. The Preferred Stock may be divided into such number of series and with the rights, preferences, privileges and restrictions as the Board of Directors may determine.
	Series B Convertible Redeemable Preferred Stock
	The Company had 239,400 shares of Series B Preferred outstanding as of December 31, 2013 and 2012. At December 31, 2013 and 2012, the Company had cumulative undeclared dividends of approximately  $8,000 ($0.03 per share). There were no conversions of Series B Preferred into common stock during the year ended December 31, 2013 or 2012.
	Common Stock
	The following table summarizes outstanding common stock activity for the following periods:
			Common Stock
	Shares outstanding at December 31, 2011			67,988,916
	Shares issued pursuant to warrants exercised for cash			7,052,647
	Shares issued pursuant to cashless warrants exercised			1,573,362
	Shares issued pursuant to option exercises			24,924
	Shares outstanding at December 31, 2012			76,639,849
	Shares issued pursuant to warrants exercised for cash			6,132,779
	Shares issued pursuant to cashless warrants exercised			4,458,493
	Conversion of related-party notes payable into common stock			18,182
	Shares issued as compensation in lieu of cash			264,000
	Shares issued pursuant to option exercises			35,310
	Shares outstanding at December 31, 2013			87,548,613
	During the year ended December 31, 2013, the Company issued 35,310 shares of common stock pursuant to the exercise of 35,310 options for cash proceeds of approximately $11,000.  During the year ended December 31, 2013, the Company issued 6,132,779 shares of common stock pursuant to the exercise of 6,132,779 warrants for cash proceeds of approximately $3,291,000. During the year ended December 31, 2013, the Company issued 4,458,493 shares of common stock pursuant to the cashless exercise of 6,601,173 warrants. Also during the year ended December 31, 2013, the Company issued 18,182 shares of common stock pursuant to the conversion of $10,000 of Related-Party Convertible notes payable principal. The Company also issued 144,000 shares of its common stock to certain members of the Company’s Board of Directors as compensation for services to be rendered through December 31, 2014.  Such shares are forfeitable should the Board members’ service be terminated. The Company also issued 120,000 shares of common stock pursuant to the achievement of certain contractual vesting conditions contained in previously issued restricted stock grants to non-affiliated consultants.
	Warrants
	As of December 31, 2013, warrants to purchase 6,598,416 shares of common stock at prices ranging from $0.50 to $1.72 were outstanding. All warrants are exercisable as of December 31, 2013 and expire at various dates through December 2016, with the exception of an aggregate of 330,000 warrants, which become exercisable only upon the attainment of specified events.
	The following table summarizes warrant activity for the following periods:
						Weighted-
						Average
			Warrants			Exercise Price
	Balance at December 31, 2011			28,453,760		$	0.52
	Granted			305,000		$	0.92
	Expired / Canceled			(12,000	)	$	0.5
	Exercised			(9,958,275	)	$	0.5
	Balance at December 31, 2012			18,788,485		$	0.56
	Granted			1,232,632		$	1.01
	Expired / Canceled			(688,749	)	$	1.49
	Exercised			(12,733,952	)	$	0.52
	Balance at December 31, 2013			6,598,416		$	0.63
	During the year ended December 31, 2013, the Company issued to certain consultants warrants to purchase an aggregate of 110,000 shares of the Company’s common stock. Such warrants have exercise prices ranging from $1.08 to $1.15 per share and have terms ranging from one to three years from the date of issuance. An aggregate of 80,000 of these warrants become exercisable only upon the attainment of specified events. No such events were obtained during the year ended December 31, 2013.
	During the year ended December 31, 2013, the Company issued to an existing shareholder and member of our Board of Directors warrants to purchase 1,052,632 shares of the Company’s common stock. Such warrants have an exercise price of $0.95 per share and a term of two years from the date of issuance.
	During the year ended December 31, 2013, the Company issued to certain members of a newly established advisory board, warrants to purchase an aggregate of 70,000 shares of the Company’s common stock. Such warrants have an exercise price of $1.72 per share and have a two year term. The Company recorded the estimated grant date fair value of these warrants using the Black-Scholes option valuation model as a component of general and administrative expense.
	During the year ended December 31, 2013, there were 6,601,173 warrants exercised pursuant to cashless transactions and 688,749 warrants expired. During the year ended December 31, 2013, there were 6,132,779 warrants exercised for cash resulting in cash proceeds to the Company of approximately $3,291,000. The Company issued 4,458,493 shares of its common stock pursuant to cashless warrant exercises and 6,132,779 shares of its common stock pursuant to warrants exercised for cash.
	The following table summarizes information regarding the warrants outstanding as of December 31, 2013:
	Exercise Price				Number Outstanding			Weighted—Average	Weighted—Average
								Remaining Life (Years)	Exercise Price
	$	0.5			4,795,504			2.5	$	0.5
	$	0.8			150,000			3	$	0.8
	$	0.95			1,052,632			1.24	$	0.95
	$	0.98			100,000			0.63	$	0.98
	$	1			265,280			0.58	$	1
	$	1.08			50,000			0.08	$	1.08
	$	1.1			75,000			1.93	$	1.1
	$	1.14			30,000			1.04	$	1.14
	$	1.15			5,000			0.05	$	1.15
	$	1.25			5,000			0.75	$	1.25
	$	1.72			70,000			1.69	$	1.72
					6,598,416

STOCKBASED_COMPENSATION

STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 14 - STOCK-BASED COMPENSATION	'
	Stock Options
	As of December 31, 2013, the Company had two active stock-based compensation plans; the 1999 Stock Option Plan (the “1999 Plan”) and the 2001 Equity Incentive Plan (the “2001 Plan”).
	1999 Plan
	The 1999 Plan was adopted by the Company’s Board of Directors on December 17, 1999. Under the terms of the 1999 Plan, the Company could, originally, issue up to 350,000 non-qualified or incentive stock options to purchase common stock of the Company. The Company subsequently amended and restated the 1999 Plan whereby it increased the share reserve for issuance by approximately 4.0 million shares of the Company’s common stock.  The 1999 Plan prohibits the grant of stock option or stock appreciation right awards with an exercise price less than fair market value of common stock on the date of grant. The 1999 Plan also generally prohibits the “re-pricing” of stock options or stock appreciation rights, although awards may be bought-out for a payment in cash or the Company’s stock. The 1999 Plan permits the grant of stock based awards other than stock options, including the grant of “full value” awards such as restricted stock, stock units and performance shares. The 1999 Plan permits the qualification of awards under the plan (payable in either stock or cash) as “performance-based compensation” within the meaning of Section 162(m) of the Internal Revenue Code. The number of options issued and outstanding and the number of options remaining available for future issuance are shown in the table below.
	On July 22, 2011, the Company’s Board of Directors approved an amendment to the 1999 Plan, subject to shareholder approval, pursuant to which an additional 2,159,442 shares would be reserved for issuance under the plan. In October 2011, the Company’s shareholders approved this amendment resulting in 2,159,442 shares being added to the 1999 Plan.
	2001 Plan
	The 2001 Plan was adopted by the Company’s Board of Directors on September 12, 2001.  Under the terms of the 2001 Plan, the Company could issue stock awards to employees, directors and consultants of the Company, and such stock awards could be given for non-statutory stock options (options not intended to qualify as an “incentive stock option” within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended), stock bonuses, and rights to acquire restricted stock. The 2001 Plan is administered by the Board of Directors or a Committee of the Board. The Company originally reserved 1,000,000 shares of its common stock for issuance under the 2001 Plan. Options granted under the 2001 Plan shall not be less than 85% of the market value of the Company’s common stock on the date of the grant, and, in some cases, may not be less than 110% of such fair market value. The term of options granted under the 2001 Plan as well as their vesting are determined by the Board and to date, options have been granted with a ten year term and vesting over a three year period. While the Board may suspend or terminate the 2001 Plan at any time, if not terminated earlier, it will terminate on the day before its tenth anniversary of the date of adoption.  As of December 31, 2013, the Company does not anticipate issuing any additional stock awards under this plan.  Any shares not issued in connection with the awards outstanding under the 2001 Plan will become available for issuance under the 1999 Plan.  The number of options issued and outstanding and the number of options remaining available for future issuance are shown in the table below.
	A summary of the activity under the Company’s stock option plans is as follows:
			Options								Weighted-
							Weighted-				Average
							Average				Remaining
							Exercise				Contractual
							Price				Term (Years)
	Balance at December 31, 2011			1,707,713			$	0.76				7.6
	Granted			1,437,500			$	0.89				—
	Expired/Cancelled			(89,068	)		$	0.92				—
	Exercised			(24,924	)		$	0.29				—
	Balance at December 31, 2012			3,031,221			$	0.82				7.9
	Granted			817,500			$	1.39
												—
	Expired/Cancelled			(30,000	)		$	0.74
												—
	Exercised			(35,310	)		$	0.31
												—
	Balance at December 31, 2013			3,783,411			$	0.94				7.4
	At December 31, 2013, a total of 3,783,411 options were outstanding of which 2,309,865 were exercisable at a weighted average price of $0.80 per share with a remaining weighted average contractual term of approximately 6.5 years.  The Company expects that, in addition to the 2,309,865 options that were exercisable as of December 31, 2013, another 1,473,546 will ultimately vest resulting in a combined total of 3,783,411.  Those 1,473,546 shares have a weighted average exercise price of $1.17, an aggregate intrinsic value of approximately $1,139,000 and a weighted average remaining contractual life of 8.9 years as of December 31, 2013.
	During the year ended December 31, 2013, there were 35,310 options exercised for cash resulting in the issuance of 35,310 shares of the Company’s common stock and proceeds of approximately $11,000.  During the year ended December 31, 2012, there were 24,924 options exercised which resulted in proceeds of approximately $7,000 to the Company.
	The intrinsic value of options exercised during the years ended December 31, 2013 and 2012 was approximately $59,000 and $14,000, respectively. The intrinsic value of options exercisable at December 31, 2013 and 2012 was approximately $2,648,000 and $389,000, respectively.  The aggregate intrinsic value for all options outstanding as of December 31, 2013 and 2012 was approximately $3,786,000 and $423,000, respectively.
	The following table summarizes information about employee stock options outstanding and exercisable at December 31, 2013:
					Options Outstanding										Options Exercisable
	Exercise Price								Weighted-
									Average				Weighted-				Weighted-
					Number				Remaining Life				Average		Number		Average
					Outstanding				(Years)				Exercise Price		Exercisable		Exercise Price
	$	0.17–0.24				450,221				5			$	0.19		450,221	$	0.19
	$	0.54-0.74				788,787				6.7			$	0.72		677,589	$	0.72
	$	0.77-1.15				2,082,403				8.1			$	0.95		1,085,055	$	0.97
	$	1.45-2.74				462,000				8.2			$	2.02		97,000	$	2.29
	Total					3,783,411										2,309,865
	At December 31, 2013, the total remaining unrecognized compensation cost related to unvested stock options amounted to approximately $1,019,000, which will be amortized over the weighted-average remaining requisite service period of 2.2 years.
	At December 31, 2012, there were 1,473,546 shares outstanding and un-exercisable as they had not yet met the vesting criteria.  Those options had a weighted-average grant-date fair value of approximately $0.86.  During the year ended December 31, 2013, 951,610 shares vested with a weighted-average grant-date fair value of approximately $0.75 and approximately 30,000 shares forfeited or expired, of which 17,504 were vested and exercisable, with a weighted-average grant-date fair value of $0.88 resulting in 2,309,865 shares exercisable, with a weighted-average grant-date fair value of approximately $0.67 as of December 31, 2013.
	The weighted-average grant-date fair value per share of options granted to employees during the years ended December 31, 2013 and 2012 was $0.97 and $0.71, respectively. At December 31, 2013, the total remaining unrecognized compensation cost related to unvested stock options amounted to approximately $1,019,000, which will be amortized over the weighted-average remaining requisite service period of 2.2 years.
	Restricted Stock Awards
	In January of 2010, the Company issued 847,258 shares of restricted stock to members of management and the Board. These shares vested quarterly over a three-year period. The restricted shares were issued as compensation for the cancellation of 1,412,096 options held by members of management and the Board. The Company evaluated the exchange in accordance with ASC 718 and determined there was no incremental cost to be recorded in conjunction with the exchange as the fair value of the options surrendered at the modification date exceeded the fair value of the restricted shares issued at the modification date. Stock-based compensation expense related to these restricted stock grants was approximately $0 and $37,000 for the year ended December 31, 2013 and 2012, respectively.
	Stock Appreciation Rights
	During March 2011, the Company granted 880,000 performance units to certain key employees that grant the holder the right to receive compensation based on the appreciation in the Company’s common stock in the event of transfer of control of the Company ("Performance Units"). As the vesting of the Performance Units is contingent upon the sale of the Company, the expense associated with the granting of the Performance Units was not material. The Performance Units issued to such key employees were terminated, and exchanged for options to purchase a total of 435,000 shares of common stock on January 30, 2012.
	Common Stock Reserved for Future Issuance
	The following table summarizes the common stock reserved for future issuance as of December 31, 2013:
			Common Stock
	Convertible preferred stock – Series B			46,029
	Convertible notes payable			154,743
	Stock options outstanding			3,783,411
	Warrants outstanding			6,598,416
	Restricted stock grants			—
	Authorized for future grant under stock option plans			24,434
				10,607,033

EMPLOYEE_BENEFIT_PLAN

EMPLOYEE BENEFIT PLAN	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 15 - EMPLOYEE BENEFIT PLAN	'
	During 1995, the Company adopted a defined contribution 401(k) retirement plan (the “Plan”). All U.S. based employees aged 21 years and older are eligible to become participants after the completion of 60 days employment. The Plan provides for annual contributions by the Company of 50% of employee contributions not to exceed 8% of employee compensation.  Effective April 1, 2009, the Plan was amended to provide for Company contributions on a discretionary basis. Participants may contribute up to 100% of the annual contribution limitations determined by the Internal Revenue Service.
	Employees are fully vested in their share of the Company’s contributions after the completion of five years of service. In 2012, the Company authorized a discretionary contribution of approximately $87,000 for the 2012 plan year.  Such contribution was paid in January, 2013. In 2013, the Company authorized contributions of approximately $107,000 for the 2013 plan year of which $79,000 were paid prior to December 31, 2013.

PENSION_PLAN

PENSION PLAN	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 16 - PENSION PLAN	'
	One of the Company’s foreign subsidiaries maintains a defined benefit pension plan that provides benefits based on length of service and final average earnings. The following table sets forth the benefit obligation, fair value of plan assets, and the funded status of the Company’s plan; amounts recognized in the Company’s consolidated financial statements; and the assumptions used in determining the actuarial present value of the benefit obligations as of December 31:
	($ in thousands)	2013			2012
	Change in benefit obligation:
	Benefit obligation at beginning of year	$	2,031		$	1,846
	Service cost		2			2
	Interest cost		94			87
	Actuarial (gain) loss		577			(7	)
	Effect of exchange rate changes		117			103
	Effect of curtailment		—			—
	Benefits paid		—			—
	Benefit obligation at end of year		2,821			2,031
	Change in plan assets:
	Fair value of plan assets at beginning of year		1,630			1,455
	Actual return of plan assets		41			36
	Company contributions		43			42
	Benefits paid		—			—
	Effect of exchange rate changes		76			97
	Fair value of plan assets at end of year		1,790			1,630
	Funded status		(1,031	)		(401	)
	Unrecognized actuarial loss (gain)		922			317
	Unrecognized prior service (benefit) cost		—			—
	Additional minimum liability		(922	)		(317	)
	Unrecognized transition (asset) liability					—
			—
	Net amount recognized	$	(1,031	)	$	(401	)
	Plan Assets
	Pension plan assets were comprised of the following asset categories at December 31,
	Equity securities		10.4	%		11.5	%
	Debt securities		83.1	%		81	%
	Other		6.5	%		7.5	%
	Total		100	%		100	%
	Components of net periodic benefit cost are as follows:
	Service cost	$	2		$	2
	Interest cost on projected benefit obligations		94			87
	Expected return on plan assets		—			—
	Amortization of prior service costs		—			—
	Amortization of actuarial loss		—			—
	Net periodic benefit costs	$	96		$	89
	The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, were
	Discount rate		3.9	%		4.6	%
	Expected return on plan assets		4	%		4	%
	Rate of pension increases		2	%		1	%
	Rate of compensation increase		N/A			N/A
	The following discloses information about the Company’s defined benefit pension plan that had an accumulated benefit obligation in excess of plan assets as of December 31,
	Projected benefit obligation	$	2,821		$	2,031
	Accumulated benefit obligation	$	2,821		$	2,031
	Fair value of plan assets	$	1,790		$	1,630
	As of December 31, 2013, the following benefit payments are expected to be paid as follows:
	2014		$	—
	2015		$	18
	2016		$	19
	2017		$	101
	2018		$	103
	2019 — 2023		$	630
	The Company made contributions to the plan of approximately $43,000 and $42,000 during years 2013 and 2012, respectively.
	The investment objectives for the plan are the preservation of capital, current income and long-term growth of capital. The Company’s pension assets are classified within Level 1 of the fair value hierarchy, as defined under ASC 820, because they are valued using market prices. The pension assets are primarily comprised of the cash surrender value of insurance contracts. All plan assets are managed in a policyholder pool in Germany by outside investment managers. The measurement date used to determine the benefit information of the plan was January 1, 2014.

ACCUMULATED_OTHER_COMPREHENSIV

ACCUMULATED OTHER COMPREHENSIVE LOSS	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 17 - ACCUMULATED OTHER COMPREHENSIVE LOSS	'
	Accumulated other comprehensive income is the combination of the additional minimum liability related to the Company’s defined benefit pension plan, recognized pursuant to ASC 715-30, “Compensation - Retirement Benefits - Defined Benefit Plans – Pension” and the accumulated gains or losses from foreign currency translation adjustments. The Company translates foreign currencies of its German, Canadian and Mexican subsidiaries into U.S. dollars using the period end exchange rate. Revenue and expenses were translated using the weighted-average exchange rates for the reporting period.  All items are shown net of tax.
	As of December 31, 2013 and 2012, the components of accumulated other comprehensive loss were as follows:
	($ in thousands)
		2013			2012
	Additional minimum pension liability	$	(579	)	$	43
	Foreign currency translation adjustment		(251	)		(182	)
	Ending balance	$	(830	)	$	(139	)

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Note 18 - SUBSEQUENT EVENTS	'
	During January and February 2014, holders of 3,090,000 warrants exercised such warrants for cash resulting in the issuance of 3,090,000 shares of common stock and cash proceeds to the Company of approximately $1,548,000.
	During January 2014, holders of 1,000 options exercised such options for cash resulting in the issuance of 1,000 shares of common stock and cash proceeds to the Company of approximately $1,000.
	In March 2014, the holder of the line of credit agreed to increase the borrowing facility to an aggregate total of $3,500,000. Borrowings under the increased credit facility will bear interest at the same rate and are also due in March 2015. As consideration for the increase to the line of credit borrowing facility, the Company issued to the holder a warrant exercisable for 177,778 shares of the Company’s common stock. The warrant has a term of one year from the date of issuance and an exercise price of $2.25 per share.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
Principles of Consolidation	'
	The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated.
Operating Cycle	'
	Assets and liabilities related to long-term contracts are included in current assets and current liabilities in the accompanying consolidated balance sheets, although they will be liquidated in the normal course of contract completion which may take more than one operating cycle.
Use of Estimates	'
	The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported amounts of revenue and expense during the reporting period. Significant estimates include the allowance for doubtful accounts receivable, inventory carrying values, deferred tax asset valuation allowances, accounting for loss contingencies, recoverability of goodwill and acquired intangible assets and amortization periods, assumptions used in the Black-Scholes model to calculate the fair value of share based payments, assumptions used in the application of fair value methodologies to calculate the fair value of derivative liabilities, revenue and cost of revenues recognized under the percentage of completion method and assumptions used in the application of fair value methodologies to calculate the fair value of pension assets and obligations. Actual results could differ from estimates.
Cash and cash equivalents	'
	The Company defines cash equivalents as highly liquid investments with original maturities of less than 90 days that are not held for sale in the ordinary course of business.
Accounts receivable	'
	In the normal course of business, the Company extends credit without collateral requirements to its customers that satisfy pre-defined credit criteria. Accounts receivable are recorded net of an allowance for doubtful accounts. Accounts receivable are considered delinquent when the due date on the invoice has passed. The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions and other factors that may affect customers’ ability to pay to determine the level of allowance required.  Accounts receivable are written off against the allowance for doubtful accounts when all collection efforts by the Company have been unsuccessful.
Inventories	'
	Inventories are stated at the lower of cost, determined using the average cost method, or market. See note 6.
Property, Equipment and Leasehold Improvements	'
	Property and equipment, consisting of furniture and equipment, are stated at cost and are being depreciated on a straight-line basis over the estimated useful lives of the assets, which generally range from three to five years. Maintenance and repairs are charged to expense as incurred. Major renewals or improvements are capitalized. When assets are sold or abandoned, the cost and related accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized. Expenditures for leasehold improvements are capitalized. Amortization of leasehold improvements is computed using the straight-line method over the shorter of the remaining lease term or the estimated useful lives of the improvements.
Fair Value of Financial Instruments	'
	For certain of the Company’s financial instruments, including accounts receivable, accounts payable, accrued expenses, deferred revenues and notes payable to related parties, the carrying amounts approximate fair value due to their relatively short maturities.
Derivative Financial Instruments	'
	The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks.
	The Company reviews the terms of the common and preferred stock, warrants and convertible debt it issues to determine whether there are embedded derivative instruments, including embedded conversion options, which are required to be bifurcated and accounted for separately as derivative financial instruments. In circumstances where the host instrument contains more than one embedded derivative instrument, including the conversion option, that is required to be bifurcated, the bifurcated derivative instruments are accounted for as a single, compound derivative instrument.
	Bifurcated embedded derivatives are initially recorded at fair value and are then revalued at each reporting date with changes in the fair value reported as non-operating income or expense. When the equity or convertible debt instruments contain embedded derivative instruments that are to be bifurcated and accounted for as liabilities, the total proceeds received are first allocated to the fair value of all the bifurcated derivative instruments. The remaining proceeds, if any, are then allocated to the host instruments themselves, usually resulting in those instruments being recorded at a discount from their face value.
	The discount from the face value of the convertible debt, together with the stated interest on the instrument, is amortized over the life of the instrument through periodic charges to interest expense, using the effective interest method.
Revenue recognition	'
	The Company recognizes revenue from the following major revenue sources:
	●	Long-term fixed-price contracts involving significant customization
	●	Fixed-price contracts involving minimal customization
	●	Software licensing
	●	Sales of computer hardware and identification media
	●	Postcontract customer support (“PCS”)
	The Company’s revenue recognition policies are consistent with U.S. GAAP including the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 985-605, “Software Revenue Recognition”, ASC 605-35 “Revenue Recognition, Construction-Type and Production-Type Contracts”, “Securities and Exchange Commission Staff Accounting Bulletin 104”, and ASC 605-25 “Revenue Recognition, Multiple Element Arrangements”. Accordingly, the Company recognizes revenue when all of the following criteria are met: persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the fee is fixed or determinable, and collectability is reasonably assured.
	The Company recognizes revenue and profit as work progresses on long-term, fixed-price contracts involving significant amount of hardware and software customization using the percentage of completion method based on costs incurred to date compared to total estimated costs at completion. The primary components of costs incurred are third party software and direct labor cost including fringe benefits. Revenues recognized in excess of amounts billed are classified as current assets under “Costs and estimated earnings in excess of billings on uncompleted contracts”. Amounts billed to customers in excess of revenues recognized are classified as current liabilities under “Billings in excess of costs and estimated earnings on uncompleted contracts”. Revenue from contracts for which the Company cannot reliably estimate total costs or there are not significant amounts of customization are recognized upon completion. The Company also generates non-recurring revenue from the licensing of its software. Software license revenue is recognized upon the execution of a license agreement, upon deliverance, when fees are fixed and determinable, when collectability is probable and when all other significant obligations have been fulfilled. The Company also generates revenue from the sale of computer hardware and identification media. Revenue for these items is recognized upon delivery of these products to the customer. The Company’s revenue from periodic maintenance agreements is generally recognized ratably over the respective maintenance periods provided no significant obligations remain and collectability of the related receivable is probable. Pricing of maintenance contracts is consistent period to period and calculated as a percentage of the software or hardware revenue, which is approximately 15% annually.  Amounts collected in advance for maintenance services are included in current liabilities under "Deferred revenue". Sales tax collected from customers is excluded from revenue.
Goodwill	'
	The Company accounts for its intangible assets under the provisions of ASC 350, “Intangibles - Goodwill and Other”. In accordance with ASC 350, intangible assets with a definite life are analyzed for impairment under ASC 360-10-05 “Property, Plant and Equipment” and intangible assets with an indefinite life are analyzed for impairment under ASC 360 annually, or more often if circumstances dictate. The Company performs its annual goodwill impairment test in the fourth quarter of each year, or if required, at the end of each fiscal quarter.  In accordance with ASC 350, goodwill, or the excess of cost over fair value of net assets acquired is tested for impairment using a fair value approach at the “reporting unit” level. A reporting unit is the operating segment, or a business one level below that operating segment (referred to as a component) if discrete financial information is prepared and regularly reviewed by management at the component level. The Company’s reporting unit is at the entity level. The Company recognizes an impairment charge for any amount by which the carrying amount of a reporting unit’s goodwill exceeds its fair value. The Company uses fair value methodologies to establish fair values.
	The Company did not record any goodwill impairment charges for the years ended December 31, 2013 or 2012.
Intangible and Long Lived Assets	'
	Intangible assets are carried at their cost less any accumulated amortization.  Any costs incurred to renew or extend the life of an intangible or long lived asset are reviewed for capitalization.  The Company evaluates long-lived assets for impairment whenever events or changes in circumstances indicate their net book value may not be recoverable. When such factors and circumstances exist, the Company compares the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. The Company’s management currently believes there is no impairment of its long-lived assets. There can be no assurance, however, that market conditions will not change or demand for the Company’s products under development will continue. Either of these could result in future impairment of long-lived assets.
Concentration of Credit Risk	'
	Financial instruments which potentially subject the Company to concentrations of credit risk consist principally of cash and trade accounts receivable. The Company places its cash with high quality financial institutions and at times during the years ended December 31, 2013 and 2012 exceeded the FDIC insurance limits of $250,000 for 2013 and 2012. Sales are typically made on credit and the Company generally does not require collateral. The Company performs ongoing credit evaluations of its customers’ financial condition and maintains an allowance for doubtful accounts. The Company considers historical experience, the age of the accounts receivable balances, the credit quality of its customers, current economic conditions and other factors that may affect customers’ ability to pay to determine the level of allowance required. Accounts receivable are presented net of an allowance for doubtful accounts of approximately $3,000 at December 31, 2013 and 2012.
	For the year ended December 31, 2013 one customer accounted for approximately 42% or $2,211,000 of total revenues and had trade receivables of $0 as of the end of the year.  For the year ended December 31, 2012 one customer accounted for approximately 15% or $611,000 of total revenues and had trade receivables of $0 as of the end of the year.
Stock-Based Compensation	'
	At December 31, 2013, the Company had two stock-based compensation plans for employees and nonemployee directors, which authorize the granting of various equity-based incentives including stock options and restricted stock.
	The Company estimates the fair value of its stock options using a Black-Scholes option-pricing model, consistent with the provisions of ASC 718, “Compensation – Stock Compensation”. The fair value of stock options granted is recognized to expense over the requisite service period. Stock-based compensation expense for all share-based payment awards is recognized using the straight-line single-option method. Stock-based compensation expense is reported in operating expenses based upon the departments to which substantially all of the associated employees report and credited to additional paid-in-capital. Stock-based compensation expense related to equity options was approximately $575,000 and $571,000 for the years ended December 31, 2013 and 2012, respectively. In January 2010, the Company issued 847,258 shares of restricted stock to members of management and the Board. These shares will vest quarterly over a three-year period. The restricted shares were issued as compensation for the cancellation of 1,412,096 options held by members of management and the Board. The Company evaluated the exchange in accordance with ASC 718 and determined there was no incremental cost to be recorded in conjunction with the exchange as the fair value of the options surrendered at the modification date exceeded the fair value of the restricted shares issued at the modification date.  The Company recorded approximately $0 and $37,000 in compensation expense for the years ended December 31, 2013 and 2012, respectively, related to these restricted shares.
	ASC 718 requires the use of a valuation model to calculate the fair value of stock-based awards. The Company has elected to use the Black-Scholes option-pricing model, which incorporates various assumptions including volatility, expected life, and interest rates. The Company is required to make various assumptions in the application of the Black-Scholes option-pricing model. The Company has determined that the best measure of expected volatility is based on the historical weekly volatility of the Company’s common stock. Historical volatility factors utilized in the Company’s Black-Scholes computations for options granted during the years ended December 31, 2013 and 2012 ranged from 78% to 103%. The Company has elected to estimate the expected life of an award based upon the SEC approved “simplified method” noted under the provisions of Staff Accounting Bulletin No. 110. The expected term used by the Company during the years ended December 31, 2013 and 2012 was 5.9 years. The difference between the actual historical expected life and the simplified method was immaterial. The interest rate used is the risk free interest rate and is based upon U.S. Treasury rates appropriate for the expected term. Interest rates used in the Company’s Black-Scholes calculations for the years ended December 31, 2013 and 2012 averaged 2.6%. Dividend yield is zero as the Company does not expect to declare any dividends on the Company’s common shares in the foreseeable future.
	In addition to the key assumptions used in the Black-Scholes model, the estimated forfeiture rate at the time of valuation is a critical assumption. The Company has estimated an annualized forfeiture rate of approximately 0% for corporate officers, 4.1% for members of the Board of Directors and 6.0% for all other employees. The Company reviews the expected forfeiture rate annually to determine if that percent is still reasonable based on historical experience.
Income Taxes	'
	Current income tax expense or benefit is the amount of income taxes expected to be payable or refundable for the current year. A deferred income tax asset or liability is computed for the expected future impact of differences between the financial reporting and tax bases of assets and liabilities and for the expected future tax benefit to be derived from tax credits and loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.
Foreign Currency Translation	'
	The financial position and results of operations of the Company’s foreign subsidiaries are measured using the foreign subsidiary’s local currency as the functional currency. Revenues and expenses of such subsidiaries have been translated into U.S. dollars at average exchange rates prevailing during the period. Assets and liabilities have been translated at the rates of exchange on the balance sheet date. The resulting translation gain and loss adjustments are recorded directly as a separate component of shareholders’ equity, unless there is a sale or complete liquidation of the underlying foreign investments. The Company translates foreign currencies of its German, Canadian and Mexican subsidiaries. The cumulative translation adjustment, which is recorded in accumulated other comprehensive income, decreased approximately $69,000 for the year ended December 31, 2013 and decreased approximately $75,000 for the year ended December 31, 2012.
Comprehensive Income	'
	Comprehensive income consists of net gains and losses affecting shareholders’ equity that, under generally accepted accounting principles, are excluded from net loss. For the Company, the only items are the cumulative translation adjustment and the additional minimum liability related to the Company’s defined benefit pension plan, recognized pursuant to ASC 715-30, "Compensation - Retirement Benefits - Defined Benefit Plans – Pension".
Advertising Costs	'
	The Company expenses advertising costs as incurred. The Company incurred approximately $12,000 in advertising expenses during the years ended December 31, 2013 and 2012.
Loss Per Share	'
	Basic loss per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period. Diluted loss per common share is calculated by dividing net loss available to common shareholders for the period by the weighted-average number of common shares outstanding during the period, adjusted to include, if dilutive, potential dilutive shares consisting of convertible preferred stock, convertible notes payable, stock options and warrants, calculated using the treasury stock and if-converted methods.  For diluted loss per share calculation purposes, the net loss available to commons shareholders is adjusted to add back any preferred stock dividends and any interest on convertible debt reflected in the consolidated statement of operations for the respective periods.
	(Amounts in thousands, except share and per share amounts)		Year Ended December 31,
			2013			2012
	Numerator for basic and diluted loss per share:
	Net loss		$	(9,849	)	$	(10,190	)
	Preferred dividends			(51	)		(51	)
	Net loss available to common shareholders		$	(9,900	)	$	(10,241	)
	Denominator for basic loss per share — weighted-average shares outstanding			81,231,962			70,894,916
	Effect of dilutive securities			—			—
	Denominator for diluted loss per share — weighted-average shares outstanding			81,231,962			70,894,916
	Basic and diluted loss per share:
	Net loss		$	(0.12	)	$	(0.14	)
	Preferred dividends			(—	)		(—	)
	Net loss available to common shareholders		$	(0.12	)	$	(0.14	)
	The Company has excluded the following weighted-average securities from the calculation of diluted loss per share, as their effect would have been antidilutive:
			Common Share Equivalents at December 31, 2013			Common Share Equivalents at December 31, 2012
	Potential Dilutive Securities:
	Convertible notes payable			101,185			100,018
	Convertible preferred stock – Series B			46,139			47,880
	Stock options			1,782,221			1,135,077
	Restricted stock grants			80,932			324,863
	Warrants			8,455,124			24,996,737
	Total Potential Dilutive Securities			10,465,601			26,604,575
Recently Issued Accounting Standards	'
	From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the “FASB”), or other standard setting bodies, which are adopted by us as of the specified effective date.  Unless otherwise discussed, the Company’s management believes the impact of recently issued standards not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption.
	FASB ASU 2012-02.  In July 2012, the FASB issued ASU 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment. This new accounting standard allows companies to perform a qualitative assessment to determine whether further impairment testing of indefinite-lived intangible assets is necessary. Under the guidance in ASU 2012-02, an entity has the option to bypass the qualitative assessment for any indefinite-lived intangible asset in any period and proceed directly to performing the quantitative impairment test. An entity will be able to resume performing the qualitative assessment in any subsequent period. ASU 2012-02 is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012. The adoption of this ASU did not have a material effect on the Company’s consolidated financial statements.
	FASB ASU 2013-05. In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity (a consensus of the FASB Emerging Issues Task Force). ASU 2013-05 requires that when a reporting entity (parent) ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity, the parent is required to release any related cumulative translation adjustment into net income. The provisions of ASU 2013-05 are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. When adopted, ASU 2013-05 is not expected to materially impact our consolidated financial statements.
	FASB ASU 2013-11. In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This guidance requires netting unrecognized tax benefits against deferred tax assets for a loss or other carryforward that would apply in settlement of uncertain tax positions. This guidance will be effective for annual reporting periods beginning after December 15, 2013. We do not believe that adoption of this guidance will have a material impact on our consolidated financial statements or disclosures.

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2013
Summary Of Significant Accounting Policies Tables	'
Computation of basic and diluted loss per share	'
	(Amounts in thousands except share and per share amounts)	Year Ended December 31,
		2013			2012
	Numerator for basic and diluted loss per share:
	Net loss	$	(9,849	)	$	(10,190	)
	Preferred dividends		(51	)		(51	)
	Net loss available to common shareholders	$	(9,900	)	$	(10,241	)
	Denominator for basic loss per share — weighted-average shares outstanding		81,231,962			70,894,916
	Effect of dilutive securities		—			—
	Denominator for diluted loss per share — weighted-average shares outstanding		81,231,962			70,894,916
	Basic and diluted loss per share:
	Net loss	$	(0.12	)	$	(0.14	)
	Preferred dividends		(—	)		(—	)
	Net loss available to common shareholders	$	(0.12	)	$	(0.14	)
Potential Dilutive Securities	'
	The Company has excluded the following weighted-average securities from the calculation of diluted loss per share, as their effect would have been antidilutive:
		Common Share Equivalents at December 31, 2013			Common Share Equivalents at December 31, 2012
	Potential Dilutive Securities:
	Convertible notes payable		101,185			100,018
	Convertible preferred stock – Series B		46,139			47,880
	Stock options		1,782,221			1,135,077
	Restricted stock grants		80,932			324,863
	Warrants		8,455,124			24,996,737
	Total Potential Dilutive Securities		10,465,601			26,604,575

FAIR_VALUE_ACCOUNTING_Tables

FAIR VALUE ACCOUNTING (Tables)	12 Months Ended
	Dec. 31, 2013
Fair Value Accounting Tables	'
Fair value measurement of Assets and liability	'
		Fair Value at December 31, 2013
	($ in thousands)	Total				Level 1			Level 2			Level 3
	Assets:
	Pension assets		$	1,790			$	1,790		$	—		$	—
	Totals		$	1,790			$	1,790		$	—		$	—
	Liabilities:
	Derivative liabilities		$	57			$	—		$	—		$	57
	Totals		$	57			$	—		$	—		$	57
			Fair Value at December 31, 2012
	($ in thousands)		Total				Level 1			Level 2			Level 3
	Assets:
	Pension assets		$	1,630			$	1,630		$	—		$	—
	Totals		$	1,630			$	1,630		$	—		$	—
	Liabilities:
	Derivative liabilities		$	2,244			$	—		$	—		$	2,244
	Totals		$	2,244			$	—		$	—		$	2,244
Reconciliation of liabilities measured at fair value on a recurring basis	'
	($ in thousands)		Derivative Liabilities
	Balance December 31, 2011		$	11,824
	Included in earnings			4,712
	Settlements			(14,292	)
	Issuances			—
	Transfers in and /or out of Level 3			—
	Balance at December 31, 2012		$	2,244
	Included in earnings			4,776
	Settlements			(6,963	)
	Issuances			—
	Transfers in and/or out of Level 3			—
	Balance at December 31, 2013		$	57

INTANGIBLE_ASSETS_AND_GOODWILL1

INTANGIBLE ASSETS AND GOODWILL (Tables)	12 Months Ended
	Dec. 31, 2013
Intangible Assets And Goodwill Tables	'
Intangible Assets	'
	($ in thousands)	Total
	Balance of intangible assets as of December 31, 2011	$	63
	Intangible assets acquired		159
	Amortization		(22	)
	Impairment losses		—
	Balance of intangible assets as of December 31, 2012	$	200
	Intangible assets acquired		—
	Amortization		(28	)
	Impairment losses		—
	Balance of intangible assets as of December 31, 2013	$	172
Intangible amortization expense	'
	The estimated acquired intangible amortization expense for the next five fiscal years is as follows:
	Fiscal Year Ended December 31,	Estimated Amortization
		Expense
		($ in thousands)
	2014	$	28
	2015		27
	2016		12
	2017		12
	2018		12
	Thereafter		81
	Totals	$	172

PROPERTY_AND_EQUIPMENT_Tables

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2013
Property And Equipment Tables	'
Property and equipment	'
	($ in thousands)	2013			2012
	Equipment	$	700		$	950
	Leasehold improvements		5			—
	Furniture		103			75
			808			1,025
	Less accumulated depreciation		(563	)		(875	)
		$	245		$	150

ACCRUED_EXPENSES_Tables

ACCRUED EXPENSES (Tables)	12 Months Ended
	Dec. 31, 2013
Condensed Consolidated Statements Of Comprehensive Loss	'
Accrued liabilities	'
	($ in thousands)	December 31,		December 31,
		2013		2012
	Compensated absences	$	241	$	248
	Wages, payroll taxes and sales commissions		4		32
	Customer deposits		38		60
	Liquidated damages		200		200
	Royalties		147		251
	Pension and employee benefit plans		33		140
	Income and sales taxes		142		125
	Interest and dividends		52		87
	Other		67		123
		$	924	$	1,266

NOTES_PAYABLE_AND_LINE_OF_CRED1

NOTES PAYABLE AND LINE OF CREDIT (Tables)	12 Months Ended
	Dec. 31, 2013
Notes Payable And Line Of Credit Tables	'
NOTES PAYABLE	'
		December 31,			December 31,
		2013			2012
	Notes payable to related parties:
	7% convertible promissory notes. Face value of notes $55 and $65 at December 31, 2013 and 2012, respectively. Discount on notes is $0 at December 31, 2013 and 2012. Notes were due January 2010.  In January 2013, the Company received an extension to June 30, 2014. Notes are callable at any time at option of holder.		55			65
	Total notes payable to related parties		55			65
	Total notes payable		55			65
	Less current portion		(55	)		(65	)
	Long-term notes payable	$	—		$	—

INCOME_TAXES_Tables

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2013
Income Taxes Tables	'
Income tax provision	'
	($ in thousands)	Year Ended December 31,
		2013	2012
	Current
	Federal	$	$	—
	State			—
	Foreign			22
	Deferred
	Federal			—
	State			—
	Foreign			—
		$	$	22
Deferred tax assets	'
	($ in thousands)	2013	2012
	Net operating loss carryforwards	$	$	11,554
	Intangible assets			653
	Stock based compensation			1,089
	Reserves and accrued expenses			6
	Other			(140	)
				13,162
	Less valuation allowance			(13,162	)
	Net deferred tax assets	$	$	—
Reconciliation of federal statutory income tax rate to our effective income tax rate	'
		2013	2012
	Amounts computed at statutory rates	$	$	(3,465	)
	State income tax, net of federal benefit			(81
	Expiration of net operating loss carryforwards			473
	Non-deductible interest			1,602
	Foreign taxes			473
	Other			4	)
	Net change in valuation allowance on deferred tax assets			1,016	)
		$	$	22	)

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2013
Stock issued in lieu of cash	'
Future minimum lease payments	'
	($ in thousands)
	2014	$	399
	2015	$	382
	2016	$	233
	2017	$	190
	2018 and thereafter	$	—
		$	1,204

EQUITY_Tables

EQUITY (Tables)	12 Months Ended
	Dec. 31, 2013
Equity Tables	'
Summary of common stock activity	'
			Common Stock
	Shares outstanding at December 31, 2011			67,988,916
	Shares issued pursuant to warrants exercised for cash			7,052,647
	Shares issued pursuant to cashless warrants exercised			1,573,362
	Shares issued pursuant to option exercises			24,924
	Shares outstanding at December 31, 2012			76,639,849
	Shares issued pursuant to warrants exercised for cash			6,132,779
	Shares issued pursuant to cashless warrants exercised			4,458,493
	Conversion of related-party notes payable into common stock			18,182
	Shares issued as compensation in lieu of cash			264,000
	Shares issued pursuant to option exercises			35,310
	Shares outstanding at December 31, 2013			87,548,613
Summary of warrant activity	'
						Weighted-
						Average
			Warrants			Exercise Price
	Balance at December 31, 2011			28,453,760		$	0.52
	Granted			305,000		$	0.92
	Expired / Canceled			(12,000	)	$	0.5
	Exercised			(9,958,275	)	$	0.5
	Balance at December 31, 2012			18,788,485		$	0.56
	Granted			1,232,632		$	1.01
	Expired / Canceled			(688,749	)	$	1.49
	Exercised			(12,733,952	)	$	0.52
	Balance at December 31, 2013			6,598,416		$	0.63
Summary of stock option plans activity	'
	Exercise Price				Number Outstanding			Weighted—Average	Weighted—Average
								Remaining Life (Years)	Exercise Price
	$	0.5			4,795,504			2.5	$	0.5
	$	0.8			150,000			3	$	0.8
	$	0.95			1,052,632			1.24	$	0.95
	$	0.98			100,000			0.63	$	0.98
	$	1			265,280			0.58	$	1
	$	1.08			50,000			0.08	$	1.08
	$	1.1			75,000			1.93	$	1.1
	$	1.14			30,000			1.04	$	1.14
	$	1.15			5,000			0.05	$	1.15
	$	1.25			5,000			0.75	$	1.25
	$	1.72			70,000			1.69	$	1.72
					6,598,416

STOCKBASED_COMPENSATION_Tables

STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2013
Stock-Based Compensation Tables	'
Stock option plans	'
			Options								Weighted-
							Weighted-				Average
							Average				Remaining
							Exercise				Contractual
							Price				Term (Years)
	Balance at December 31, 2011			1,707,713			$	0.76				7.6
	Granted			1,437,500			$	0.89				—
	Expired/Cancelled			(89,068	)		$	0.92				—
	Exercised			(24,924	)		$	0.29				—
	Balance at December 31, 2012			3,031,221			$	0.82				7.9
	Granted			817,500			$	1.39				—
	Expired/Cancelled			(30,000	)		$	0.74				—
	Exercised			(35,310	)		$	0.31				—
	Balance at December 31, 2013			3,783,411			$	0.94				7.4
Stock options outstanding and exercisable	'
					Options Outstanding										Options Exercisable
	Exercise Price								Weighted-
									Average				Weighted-				Weighted-
					Number				Remaining Life				Average		Number		Average
					Outstanding				(Years)				Exercise Price		Exercisable		Exercise Price
	$	0.17–0.24				450,221				5			$	0.19		450,221	$	0.19
	$	0.54-0.74				788,787				6.7			$	0.72		677,589	$	0.72
	$	0.77-1.15				2,082,403				8.1			$	0.95		1,085,055	$	0.97
	$	1.45-2.74				462,000				8.2			$	2.02		97,000	$	2.29
	Total					3,783,411										2,309,865
Common stock reserved for future issuance	'
			Common Stock
	Convertible preferred stock – Series B			46,029
	Convertible notes payable			154,743
	Stock options outstanding			3,783,411
	Warrants outstanding			6,598,416
	Restricted stock grants			—
	Authorized for future grant under stock option plans			24,434
				10,607,033

PENSION_PLAN_Tables

PENSION PLAN (Tables)	12 Months Ended
	Dec. 31, 2013
Pension Plan Tables	'
Actuarial present value of the benefit obligations	'
	($ in thousands)	2013			2012
	Change in benefit obligation:
	Benefit obligation at beginning of year	$	2,031		$	1,846
	Service cost		2			2
	Interest cost		94			87
	Actuarial (gain) loss		577			(7	)
	Effect of exchange rate changes		117			103
	Effect of curtailment		—			—
	Benefits paid		—			—
	Benefit obligation at end of year		2,821			2,031
	Change in plan assets:
	Fair value of plan assets at beginning of year		1,630			1,455
	Actual return of plan assets		41			36
	Company contributions		43			42
	Benefits paid		—			—
	Effect of exchange rate changes		76			97
	Fair value of plan assets at end of year		1,790			1,630
	Funded status		(1,031	)		(401	)
	Unrecognized actuarial loss (gain)		922			317
	Unrecognized prior service (benefit) cost		—			—
	Additional minimum liability		(922	)		(317	)
	Unrecognized transition (asset) liability		—			—
	Net amount recognized	$	(1,031	)	$	(401	)
	Plan Assets
	Pension plan assets were comprised of the following asset categories at December 31,
	Equity securities		10.4	%		11.5	%
	Debt securities		83.1	%		81	%
	Other		6.5	%		7.5	%
	Total		100	%		100	%
	Components of net periodic benefit cost are as follows:
	Service cost	$	2		$	2
	Interest cost on projected benefit obligations		94			87
	Expected return on plan assets		—			—
	Amortization of prior service costs		—			—
	Amortization of actuarial loss		—			—
	Net periodic benefit costs	$	96		$	89
	The weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, were
	Discount rate		3.9	%		4.6	%
	Expected return on plan assets		4	%		4	%
	Rate of pension increases		2%			1%
	Rate of compensation increase		N/A			N/A
	The following discloses information about the Company’s defined benefit pension plan that had an accumulated benefit obligation in excess of plan assets as of December 31,
	Projected benefit obligation	$	2,821		$	2,031
	Accumulated benefit obligation	$	2,821		$	2,031
	Fair value of plan assets	$	1,790		$	1,630
Benefit payments	'
	2014		$	—
	2015		$	18
	2016		$	19
	2017		$	101
	2018		$	103
	2019 — 2023		$	630

ACCUMULATED_OTHER_COMPREHENSIV1

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)	12 Months Ended
	Dec. 31, 2013
AccumulatedOtherComprehensiveLossTablesAbstract	'
Accumulated other comprehensive loss	'
		2013			2012
	Additional minimum pension liability	$	(579	)	$	43
	Foreign currency translation adjustment		(251	)		(182	)
	Ending balance	$	(830	)	$	(139	)

DESCRIPTION_OF_BUSINESS_AND_OP1

DESCRIPTION OF BUSINESS AND OPERATIONS (Details Narrative) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013
Description Of Business And Operations Details Narrative	'
US DVA Contract award amount	$2,200
Product revenue under US DVA contract	1,500
Maintenance related services revenues from US DVA contract	692
Common stock issued	6,132,779
Net proceeds from exercise of warrants	3,291
Unsecured line of credit available borrowing	2,500
Credit line interest	8.00%
Credit line dividend rate per share	$0.95
Warrant issued to holder of unsecured line of credit, shares	1,052,632
Warrant price per share	$0.95
Increased borrowing facility amount	$3,500
Warrant issued in consideration for credit increase, shares	177,778
Increase warrant price per share	$2.25

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Numerator for basic and diluted loss per share:	'	'
Net loss	($9,849)	($10,190)
Preferred dividends	-51	-51
Net loss available to common shareholders	-9,900	-10,241
Denominator for basic loss per share weighted-average shares outstanding	81,231,962	70,894,916
Effect of dilutive securities	'	'
Denominator for diluted loss per share weighted-average shares outstanding	81,231,962	70,894,915
Basic and diluted loss per share:	'	'
Net loss	($0.12)	($0.14)
Preferred dividends	'	'
Net loss available to common shareholders	($0.12)	($0.14)

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1)	Dec. 31, 2013	Dec. 31, 2012
Potential Dilutive Securities:	'	'
Convertible notes payable	101,185	100,018
Convertible preferred stock Series B	46,139	47,880
Stock options	1,782,221	1,135,077
Restricted stock grants	80,932	324,863
Warrants	8,455,124	24,996,737
Total Potential Dilutive Securities	10,465,601	26,604,575

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Summary Of Significant Accounting Policies Details Narrative	'	'
Cash placed with high quality financial institutions	$250,000	$250,000
Accounts receivable	3,000	3,000
Customer accounted for revenue percentage	42.00%	15.00%
Customer accounted for revenue	2,211,000	611,000
Trade receivables	0	0
Stock based compensation expense related to equity	575,000	571,000
Shares of restricted stock issued to members of management and Board	847,258	'
Cancelled options held by members of management and Board	1,412,096	'
Compensation expense	0	37,000
Volatility rate	78.00%	103.00%
Expected term	'5 years 10 months 24 days	'5 years 10 months 24 days
Interest rate	2.60%	2.60%
Foreign currency translation adjustment	-69,000	-75,000
Advertising expense	$12,000	$12,000

FAIR_VALUE_ACCOUNTING_Details

FAIR VALUE ACCOUNTING (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Pension assets	$1,790	$1,630
Totals	1,790	1,630
Liabilities:	'	'
Derivative liabilities	57	2,244
Totals	57	2,244
Level 1	'	'
Pension assets	1,790	1,630
Totals	1,790	1,630
Liabilities:	'	'
Derivative liabilities	'	'
Totals	'	'
Level 2	'	'
Pension assets	'	'
Totals	'	'
Liabilities:	'	'
Derivative liabilities	'	'
Totals	'	'
Level 3	'	'
Pension assets	'	'
Totals	'	'
Liabilities:	'	'
Derivative liabilities	57	2,244
Totals	$57	$2,244

FAIR_VALUE_ACCOUNTING_Details_

FAIR VALUE ACCOUNTING (Details 1) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Fair Value Accounting Details 1	'	'
At beginning of period	$2,244	$11,824
Included in earnings	4,776	4,712
Settlements	-6,963	-14,292
Issuances	'	'
Transfers in and/or out of Level 3	'	'
At end of period	$57	$2,244

FAIR_VALUE_ACCOUNTING_Details_1

FAIR VALUE ACCOUNTING (Details Narratives) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Fair Value Accounting Details Narratives	'	'
Outstanding warrants to purchase shares of the Company's common stock	$40	$5,211
Fair values of Warrants which is recognised as non-current liability	$57	'

INTANGIBLE_ASSETS_AND_GOODWILL2

INTANGIBLE ASSETS AND GOODWILL (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'
Balance of intangible assets as of December 31, 2011	$200	$63
Intangible assets acquired	'	159
Amortization	-28	-22
Impairment losses	'	'
Balance of intangible assets as of December 31, 2012	$172	$200

INTANGIBLE_ASSETS_AND_GOODWILL3

INTANGIBLE ASSETS AND GOODWILL (Details 1) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Notes to Financial Statements	'	'
2014	$28	'
2015	27	'
2016	12	'
2017	12	'
2018	12	'
Thereafter	81	'
Totals	$172	$200

INTANGIBLE_ASSETS_AND_GOODWILL4

INTANGIBLE ASSETS AND GOODWILL (Details Narrative) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Amortization expense	$28	$22
Carrying amount of acquired trademarks and trade names	31	47
Accumulated amortization	316	300
Purchaser warrant shares, Vocel	150,000	'
Purchaser warrant exercisable share price	$0.88	'
gross revenue payable to Vocel, percentage	7.50%	'
Aggregate fair value of the consideration issued	159	'
Weighted-average remaining life of acquired patents	136	'
Trademarks And Trade Names [Member]	'	'
Amortization expense	16	16
Patents [Member]	'	'
Amortization expense	12	6
Aggregate fair value of the consideration issued	$159	'

RELATED_PARTY_Details_Narrativ

RELATED PARTY (Details Narratives) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Related Party Details Narratives	'	'
Related Party Convertible Notes, amount	110,000	'
Warrants issued in conjunction with Related Party Convertible Notes	149,996	'
Warrant interest rate	7.00%	'
Related Party warrant exercise price	$0.50	'
Related Party Convertible Note converted, amount	$10	'
Related Party Convertible Note converted, shares	18,182	'
Contract value of an agreement	370	'
Professional services Firm	0	188
Promissory note amount	2,500	'
Credit facility	$2,500	'
Interest per annum	8.00%	'
Due date	1-Mar-15	'
Warrant issued for common stock	150,000	'
Warrant exercise price	$0.95	'
Warrant shares oustanding and exercisable	136,364	'

INVENTORY_Details_Narrative

INVENTORY (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Inventory Details Narrative	'	'
Inventory	$505	$262
Work in process	499	254
Finished goods	6	8
Reserves for obsolete and slow-moving items	$3	$3

PROPERTY_AND_EQUIPMENT_Details

PROPERTY AND EQUIPMENT (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Notes to Financial Statements	'	'
Equipment	$700	$950
Leasehold improvements	5	'
Furniture	103	75
Property and equipment total	808	1,025
Less accumulated depreciation	-563	-875
Property and equipment net	$245	$150

PROPERTY_AND_EQUIPMENT_Details1

PROPERTY AND EQUIPMENT (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Property And Equipment Details Narrative	'	'
Depreciation expense	$97	$47

ACCRUED_EXPENSES_Details

ACCRUED EXPENSES (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Notes to Financial Statements	'	'
Compensated absences	$241	$248
Wages, payroll taxes and sales commissions	4	32
Customer deposits	38	60
Liquidated damages	200	200
Royalties	147	251
Pension and employee benefit plans	33	140
Income and sales taxes	142	125
Interest and dividends	52	87
Other	67	123
Accrued liabilities	$924	$1,266

NOTES_PAYABLE_AND_LINE_OF_CRED2

NOTES PAYABLE AND LINE OF CREDIT (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, except Per Share data, unless otherwise specified
Notes Payable And Line Of Credit Details	'	'
Face Value of Convertible promissory notes	$55	$65
Discount on notes	$0	$0
Total notes payable to related parties	$55	$65
Total notes payable	55	65
Less current portion	-55	-65
Long-term notes payable	'	'

NOTES_PAYABLE_AND_LINE_OF_CRED3

NOTES PAYABLE AND LINE OF CREDIT (Details Narratives) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Interest rate, credit facility	8.00%	'
Common stock issued	87,555,317	76,646,553
Convertible Notes Payable [Member]	'	'
Principal amount	110	'
Interest rate	7.00%	'
Due date	14-Feb-09	'
Conversion price	0.55	'
Warrant exercise price	0.5	'
Debt discount fair value	13	'
Warrants issued to note holders	149,996	'
Common stock issued	111,783	'
Fair value warrants risk free interest rate	2.53%	'
Fair value warrant dividend yield	0.00%	'
Volatility	96.00%	'
Additional debt discount Beneficial conversion feature	12	'
Warrants issued in consideration for waiver and note extension	150,000	'
Additional warrants due date	'2014-08-25T00:00:00	'
Warrants exercised on cashless basis	13,636	'
Common stock issued on cashless basis	9,969	'
Repayment of note principal	45	'
Increased credit facility amount	3,500	'
Warrant issued for consideration for increase in credit facility	177,778	'
Additional warrant exercise price per share	2.25	'
Line Of Credit [Member]	'	'
Borrowing capacity	2,500	'
Interest rate, credit facility	8.00%	'
Warrant exercise price	0.95	'
Common stock issued	1,052,632	'
Deferred financing fee amortization	217,000	'
Conversion Low [Member]	'	'
Additional debt discount Beneficial conversion feature	0	'
Conversion High [Member]	'	'
Additional debt discount Beneficial conversion feature	474	'

DERIVATIVE_LIABILITIES_Details

DERIVATIVE LIABILITIES (Details Narratives) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Derivative Liabilities Details Narratives	'	'
Outstanding warrants to purchase Common stock	$40	$5,211
Fair value of warrants	57	2,244
Warrants no longer qualify as derivative liabilities	3,492	'
Change in fair value of derivative liabilities	6,498	'
Proceeds from issuance of common stock	11	'
Common stock issued	156	'
Warrants qualifying as derivative liability treatment	4,864,989	'
Warrants exercised on a cashless basis	3,492	'
Fair market value of warrants, derivative liability	6,498	'
Warrants exercised for cash	3,090	'
Fair market value of common stock	357	'
Cash proceeds from warrants exercised for cash	78	'
Modified warrants	150,000	'
Reclassified derivative liabilities	$186	'

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Current	'	'
Federal	'	'
State	'	'
Foreign	8	22
Deferred	'	'
Federal	'	'
State	'	'
Foreign	'	'
Total	$8	$22

INCOME_TAXES_Details_1

INCOME TAXES (Details 1) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'
Net operating loss carryforwards	$12,703	$11,554
Intangible assets	538	653
Stock based compensation	1,319	1,089
Reserves and accrued expenses	6	6
Other	-121	-140
Deferred tax assets total	14,445	13,162
Less valuation allowance	-14,445	-13,162
Net deferred tax assets	'	'

INCOME_TAXES_Details_2

INCOME TAXES (Details 2) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'
Amounts computed at statutory rates	($3,349)	($3,465)
State income tax, net of federal benefit	-47	-81
Expiration of net operating loss carryforwards	75	473
Non-deductible interest	1,698	1,602
Foreign taxes	370	473
Other	4	4
Net change in valuation allowance on deferred tax assets	1,257	1,016
Reconciliation of the provision-benefit) for income taxes	$8	$22

INCOME_TAXES_Details_Narrative

INCOME TAXES (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Income Taxes Details Narrative	'	'
Interest and penalties accrued	$12	$4

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Notes to Financial Statements	'
2014	$399
2015	382
2016	233
2107	190
2018 and thereafter	'
Total	$1,204

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Narratives) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Related Party Details Narratives	'	'
Rent expense	$418	$521
Future minimum rent payments 2014	399	'
Future min rent payments 2015	382	'
Future min rent payments 2016	233	'
Future min rent payments 2017	190	'
Future minimum rent payments 2013 - Oregon	141	'
Future min rent payments 2014 - Oregon	146	'
Future min rent payments 2015 - Oregon	$124	'

EQUITY_Details

EQUITY (Details)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Equity Details	'	'
At beginning of period	76,639,849	67,988,916
Shares issued pursuant to warrants exercised for cash	6,132,779	7,052,647
Shares issued pursuant to cashless warrants exercised	4,458,493	1,573,362
Conversion of related-party notes payable into common stock	18,182	'
Shares issued as compensation in lieu of cash	264,000	'
Shares issued pursuant to options exercised	35,310	24,924
At end of period	87,548,613	76,639,849

EQUITY_Details_1

EQUITY (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Equity Details 1	'	'
Begining Balance	18,788,485	28,453,760
Granted	1,232,632	305,000
Expired/Cancelled	-688,749	-12,000
Exercised	-12,733,952	-9,958,275
Ending Balance	3,783,111	18,788,485
Begining Balance, Weighted-Average Exercise Price	$0.56	$0.52
Granted, Weighted-Average Exercise Price	$1.01	$0.92
Expired/Cancelled, Weighted-Average Exercise Price	$1.49	$0.50
Exercised, Weighted-Average Exercise Price	$0.52	$0.50
Ending Balance, Weighted-Average Exercise Price	$1.17	$0.56

EQUITY_Details_2

EQUITY (Details 2) (USD $)	Dec. 31, 2013
Number Outstanding	6,598,416
0.5	'
Number Outstanding	4,795,504
Weighted Average Remaining Life (Years)	2.5
Weighted Average Exercise Price	0.5
0.8	'
Number Outstanding	150,000
Weighted Average Remaining Life (Years)	3
Weighted Average Exercise Price	0.8
0.95	'
Number Outstanding	1,052,632
Weighted Average Remaining Life (Years)	1.24
Weighted Average Exercise Price	0.95
0.98	'
Number Outstanding	100,000
Weighted Average Remaining Life (Years)	0.63
Weighted Average Exercise Price	0.98
1	'
Number Outstanding	265,280
Weighted Average Remaining Life (Years)	0.58
Weighted Average Exercise Price	1
1.08	'
Number Outstanding	50,000
Weighted Average Remaining Life (Years)	0.08
Weighted Average Exercise Price	1.08
1.1	'
Number Outstanding	75,000
Weighted Average Remaining Life (Years)	1.93
Weighted Average Exercise Price	1.1
1.14	'
Number Outstanding	30,000
Weighted Average Remaining Life (Years)	1.04
Weighted Average Exercise Price	1.14
1.15	'
Number Outstanding	5,000
Weighted Average Remaining Life (Years)	0.05
Weighted Average Exercise Price	1.15
1.25	'
Number Outstanding	5,000
Weighted Average Remaining Life (Years)	0.75
Weighted Average Exercise Price	1.25
0.54-0.74	'
Number Outstanding	70,000
Weighted Average Remaining Life (Years)	1.69
Weighted Average Exercise Price	1.72

EQUITY_Details_Narratives

EQUITY (Details Narratives) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Series B Preferred outstanding	239,400	239,400
Common stock issued	35,310	'
Options exercised	35,310	'
Preferred outstanding	239,400	239,400
Undeclared dividends	$8	$8
Undeclared dividends per share	$0.03	$0.03
Cash proceeds	11	'
Company issued common stock pursuant to the exercise of warrants	6,132,779	'
Warrants exercised	6,132,779	'
Company issued common stock pursuant to the cashless exercise	4,458,493	'
Proceeds from issuance of warrants	3,291	'
Warrants exercised	6,601,173	'
Related Party Convertible notes, shares	18,182	'
Related Party Convertible notes, amount	10	'
Shares issued to management and Board members	144,000	'
Shares issued pursuant to contractual conditions	120,000	'
Warrant to purchase common stock	6,598,416	'
Issued to Vocel a warrant to purchase	150,000	'
Gross revenue from the sale or license	500	'
Warrant purchase to consultant	50	'
Common stock price ranging of warrants	'from $0.50 to $1.72	'
Warrants exercisable only upon attainment of specified events	330,000	'
Consultant [Member]	'	'
Warrant purchase to consultant	10	'
Consultant1 [Member]	'	'
Warrant purchase to consultant	$5	'

STOCKBASED_COMPENSATION_Detail

STOCK-BASED COMPENSATION (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Stock-Based Compensation Details	'	'
Begining Balance	3,031,221	1,707,713
Granted, Options	817,500	1,437,500
Expired/Cancelled	-30,000	-89,068
Exercised, Options	-35,310	-24,924
Ending Balance	3,786,000	3,031,221
Begining Balance, Weighted-Average Exercise Price	$0.82	$0.76
Granted, Weighted-Average Exercise Price	$1.39	$0.89
Expired/Cancelled, Weighted-Average Exercise Price	$0.74	$0.92
Exercised, Weighted-Average Exercise Price	$0.31	$0.29
Ending Balance, Weighted-Average Exercise Price	$0.94	$0.82
Begining Balance,Weighted-Average Remaining Contractual Term	'7 years 10 months 24 days	'7 years 7 months 6 days
Ending Balance,Weighted-Average Remaining Contractual Term	'7 years 4 months 24 days	'7 years 10 months 24 days

STOCKBASED_COMPENSATION_Detail1

STOCK-BASED COMPENSATION (Details 1) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Number Outstanding Options	3,786,000	3,031,221	1,707,713
Weighted Average Exercise Price Options	$0.94	$0.82	$0.76
Number Exercisable Options	2,309,865	'	'
0.17-0.24	'	'	'
Number Outstanding Options	450,221	'	'
Weighted Average Remaining Life (Years) Options	'5 years	'	'
Weighted Average Exercise Price Options	$0.19	'	'
Number Exercisable Options	450,221	'	'
Weighted-Average Exercise Price Options	$0.19	'	'
0.54-0.74	'	'	'
Number Outstanding Options	788,787	'	'
Weighted Average Remaining Life (Years) Options	'6 years 8 months 12 days	'	'
Weighted Average Exercise Price Options	$0.72	'	'
Number Exercisable Options	677,589	'	'
Weighted-Average Exercise Price Options	$0.72	'	'
0.77-1.15	'	'	'
Number Outstanding Options	2,082,403	'	'
Weighted Average Remaining Life (Years) Options	'8 years 1 month 6 days	'	'
Weighted Average Exercise Price Options	$0.95	'	'
Number Exercisable Options	1,085,055	'	'
Weighted-Average Exercise Price Options	$0.97	'	'
1.45-2.74	'	'	'
Number Outstanding Options	462,000	'	'
Weighted Average Remaining Life (Years) Options	'8 years 2 months 12 days	'	'
Weighted Average Exercise Price Options	$2.02	'	'
Number Exercisable Options	97,000	'	'
Weighted-Average Exercise Price Options	$2.29	'	'

STOCKBASED_COMPENSATION_Detail2

STOCK-BASED COMPENSATION (Details 2)	Dec. 31, 2013
Common stock reserved for future issuance	10,607,033
Warrants outstanding	'
Common stock reserved for future issuance	6,598,416
Common Stock | Convertible preferred stock – Series B	'
Common stock reserved for future issuance	46,029
Common Stock | Convertible Notes Payable [Member]	'
Common stock reserved for future issuance	154,743
Common Stock | Stock options outstanding	'
Common stock reserved for future issuance	3,783,411
Common Stock | Restricted stock grants	'
Common stock reserved for future issuance	'
Authorized Future Grant Under Stock Option Plans [Member]	'
Common stock reserved for future issuance	24,434

STOCKBASED_COMPENSATION_Detail3

STOCK-BASED COMPENSATION (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Stock-Based Compensation Details Narrative	'	'	'
Shares reserved for issuance under the 1999 Plan	2,159,442	'	'
Options outstanding	3,786,000	3,031,221	1,707,713
Option exercisable	2,309,865	'	'
Additional options vested	1,473,546	'	'
Weighted average exercise price	$0.94	$0.82	$0.76
Expected term	'6 years 6 months	'	'
Weighted average exercise price	$0.80	'	'
Intrinsic value	$1,139,000	$1,138,846	'
Weighted average remaining contractual life	'8 years 10 months 24 days	'	'
Option exercised	35,310	24,924	'
Proceeds from option exercised	11,000	7,000	'
Intrinsic value of option exercised during period	59,000	14,000	'
Intrinsic value of option exercisable	2,648,000	389,000	'
Total remaining unrecognized compensation cost related to unvested stock options	'	1,019,000	'
Weighted-average remaining requisite service period	'	'2 years 2 months 12 days	'
Shares outstanding and unexercisable	'	1,473,546	'
Shares vested	951,610	440,566	'
Weighted average grand date fair value	$0.75	$0.86	'
Shares forfeited or expired	30,000	'	'
Shares vested and exercisable	17,504	'	'
weighted-average grant-date fair value	$0.88	'	'
weighted-average grant-date fair value of option exercisable	$0.67	'	'
Weighted average grant date fair value per share of options granted to employees	$0.97	$0.71	'
Unrecognized compensation cost related to unvested stock options	1,019,000	'	'
Weighted-average remaining requisite service period	'2 years 2 months 12 days	'	'
Stock-based compensation expense related to restricted stock grants	0	39,000	'
Restricted stock issued to management and Board	847,258	'	'
Options cancelled held by management and Board	1,412,096	'	'
Stock based compensation related to restricted stock grants	'	$37,000	'
Performance units	880,000	'	'
Options to purchase stock exchanged for Performance Units	435,000	'	'

EMPLOYEE_BENEFIT_PLAN_Details_

EMPLOYEE BENEFIT PLAN (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Employee Benefit Plan Details Narrative	'	'
Discretionary contribution to employee benefit plan, 2012 year	'	$87
Discretionary contribution to EBP, 2013 year	107	'
Paid contribution	$79	'

PENSION_PLAN_Details

PENSION PLAN (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Change in benefit obligation:	'	'
Benefit obligation at beginning of year	$2,031	'
Service cost	2	2
Interest cost	94	87
Actuarial gain (loss)	577	-7
Effect of exchange rate changes	117	103
Effect of curtailment	'	'
Benefits paid	'	'
Benefit obligation at end of year	28,221	2,031
Change in plan assets:	'	'
Fair value of plan assets at beginning of year	1,630	'
Actual return of plan assets	41	36
Company contributions	43	42
Benefits paid	'	'
Effect of exchange rate changes	76	97
Fair value of plan assets at end of year	1,630	1,630
Funded status	-1,031	-401
Unrecognized actuarial loss (gain)	922	317
Unrecognized prior service (benefit) cost	'	'
Additional minimum liability	-922	-317
Unrecognized transition (asset) liability	'	'
Net amount recognized	-1,031	-401
Plan Assets	'	'
Equity securities	10.40%	11.50%
Debt securities	83.10%	81.00%
Other	6.50%	7.50%
Total	100.00%	100.00%
Components of net periodic benefit cost are as follows:	'	'
Service cost	2	2
Interest cost on projected benefit obligations	94	87
Expected return on plan assets	'	'
Amortization of prior service costs	'	'
Amortization of actuarial loss	'	'
Net periodic benefit costs	96	89
Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31, were	'	'
Discount rate	3.90%	4.60%
Expected return on plan assets	4.00%	4.00%
Rate of compensation increase	0.00%	0.00%
The following discloses information about the Companys defined benefit pension plan that had an accumulated benefit obligation in excess of plan assets as of December 31,	'	'
Projected benefit obligation	2,031	2,031
Accumulated benefit obligation	2,031	2,031
Fair value of plan assets	$1,790	$1,630

PENSION_PLAN_Details_1

PENSION PLAN (Details 1) (USD $)	Dec. 31, 2013
Notes to Financial Statements	'
2014	'
2015	18
2016	19
2017	101
2018	103
2019-2023	$630

PENSION_PLAN_Details_Narrative

PENSION PLAN (Details Narrative) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Pension Plan Details Narrative	'	'
Contributions to the plan	$43	$42

ACCUMULATED_OTHER_COMPREHENSIV2

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Note 8 - FAIR VALUE ACCOUNTING	'	'
Additional minimum pension liability	($579)	$43
Foreign currency translation adjustment	-251	-182
Ending Balance	($830)	($139)

SUBSEQUENT_EVENTS_Details_Narr

SUBSEQUENT EVENTS (Details Narrative) (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013
Subsequent Events Details Narrative	'
Warrants exercised for cash	$3,090
Common stock issued	3,090
Cash proceeds from exchange of warrants	1,548
Options exercised for cash	1
Common stock issued in exchange for options	1
Cash proceeds from exchange of options	1
Borrowing facility amount	$3,500
Warrant issued in consideration for increase of borrowing facility	177,778
Warrant exercise price per share	$2.25