Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 08, 2013 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'Socket Mobile, Inc. | ' |
Entity Central Index Key | '0000944075 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-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? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 4,867,063 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
CONDENSED_BALANCE_SHEETS_Unaud
CONDENSED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $401,794 | $390,513 |
Accounts receivable, net | 1,773,204 | 1,509,094 |
Inventories | 1,056,393 | 941,067 |
Prepaid expenses and other current assets | 121,643 | 129,434 |
Total current assets | 3,353,034 | 2,970,108 |
Property and equipment: | ' | ' |
Machinery and office equipment | 1,900,780 | 1,865,137 |
Computer equipment | 1,139,389 | 1,204,957 |
Property and equipment, gross | 3,040,169 | 3,070,094 |
Accumulated depreciation | -2,707,788 | -2,727,323 |
Property and equipment, net | 332,381 | 342,771 |
Intangible assets, net | 45,000 | 90,000 |
Goodwill | 4,427,000 | 4,427,000 |
Other assets | 91,518 | 91,518 |
Total assets | 8,248,933 | 7,921,397 |
Current liabilities: | ' | ' |
Accounts payable and accrued expenses | 3,367,723 | 3,771,763 |
Accrued payroll and related expenses | 471,852 | 478,084 |
Bank line of credit | 846,460 | 810,686 |
Deferred income on shipments to distributors | 1,088,724 | 854,159 |
Related party and other short term notes payable | 550,000 | 95,289 |
Related party convertible notes payable | 777,625 | 750,000 |
Short term portion of deferred service revenue | 184,418 | 214,537 |
Short term portion of capital leases and deferred rent | 22,837 | 17,400 |
Total current liabilities | 7,309,639 | 6,991,918 |
Long term portion of deferred service revenue | 101,150 | 153,877 |
Long term portion of capital leases and deferred rent | 259,712 | 227,022 |
Deferred income taxes | 103,350 | 79,395 |
Total liabilities | 7,773,851 | 7,452,212 |
Stockholders' equity: | ' | ' |
Common stock, $0.001 par value: Authorized - 20,000,000 shares, Issued and outstanding – 4,867,063 shares at September 30, 2013 and 4,861,063 at December 31, 2012 | 4,867 | 4,861 |
Additional paid-in capital | 61,174,953 | 60,966,505 |
Accumulated deficit | -60,704,738 | -60,502,181 |
Total stockholders' equity | 475,082 | 469,185 |
Total liabilities and stockholders' equity | $8,248,933 | $7,921,397 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Common stock par value | $0.00 | $0.00 |
Common stock, shares authorized | 20,000,000 | 10,000,000 |
Common stock, shares issued | 4,867,063 | 4,861,063 |
Common stock, shares outstanding | 4,867,063 | 4,861,063 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenues | $3,291,639 | $2,796,354 | $11,992,245 | $10,787,615 |
Cost of revenues | 2,008,701 | 1,813,958 | 7,196,632 | 6,783,899 |
Gross profit | 1,282,938 | 982,396 | 4,795,613 | 4,003,716 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 577,609 | 634,948 | 1,696,499 | 2,158,853 |
Sales and marketing | 498,820 | 798,280 | 1,643,107 | 2,740,712 |
General and administrative | 395,317 | 454,025 | 1,305,074 | 1,563,724 |
Total operating expenses | 1,471,746 | 1,887,253 | 4,644,680 | 6,463,289 |
Operating income (loss) | -188,808 | -904,857 | 150,933 | -2,459,573 |
Interest expense and other, net | -124,075 | -69,981 | -329,535 | -126,469 |
Net loss before income taxes | -312,883 | -974,838 | -178,602 | -2,586,042 |
Income tax expense | -7,985 | -7,985 | -23,955 | -23,955 |
Net loss | ($320,868) | ($982,823) | ($202,557) | ($2,609,997) |
Net loss per share: | ' | ' | ' | ' |
Basic and Diluted | ($0.07) | ($0.20) | ($0.04) | ($0.54) |
Weighted average shares outstanding: | ' | ' | ' | ' |
Basic and Diluted | 4,867,063 | 4,861,063 | 4,864,360 | 4,851,152 |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Operating activities | ' | ' |
Net loss | ($202,557) | ($2,609,997) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Stock-based compensation | 201,974 | 469,117 |
Depreciation and amortization | 203,193 | 255,331 |
Deferred income tax expense | 23,955 | 23,955 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -264,110 | 1,503,014 |
Inventories | -115,326 | 266,992 |
Prepaid expenses and other current assets | 7,791 | 52,584 |
Other assets | ' | -1,442 |
Accounts payable | -351,415 | 18,579 |
Accrued payroll and related expenses | -6,232 | -37,717 |
Deferred income on shipments to distributors | 234,565 | -578,088 |
Deferred service revenue | -82,846 | -24,821 |
Change in deferred rent | 38,716 | -5,949 |
Net cash used in operating activities | -312,292 | -668,442 |
Investing activities | ' | ' |
Purchases of equipment | -133,203 | -224,005 |
Net cash used in investing activities | -133,203 | -224,005 |
Financing activities | ' | ' |
Payments on capital leases | -15,189 | -10,366 |
Proceeds from borrowings under bank line of credit agreement | 6,280,846 | 5,158,618 |
Repayments of borrowings under bank line of credit agreement | -6,245,072 | -5,613,470 |
Stock options exercised | 6,480 | 14,015 |
Warrants exercised | ' | 29,999 |
Proceeds from the issuance of related party and other short term notes payable | 600,000 | 800,000 |
Repayment of short term notes payable | -145,289 | -36,160 |
Redemption of related party convertible note payable | -25,000 | ' |
Net cash provided by financing activities | 456,776 | 342,636 |
Net increase (decrease) in cash and cash equivalents | 11,281 | -549,811 |
Cash and cash equivalents at beginning of period | 390,513 | 957,022 |
Cash and cash equivalents at end of period | 401,794 | 407,211 |
Supplemental cash flow information | ' | ' |
Cash paid for interest | $268,055 | $129,968 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Basis of Presentation | ' |
NOTE 1 — Basis of Presentation | |
The accompanying unaudited condensed financial statements of Socket Mobile, Inc. (the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring accruals considered necessary for fair presentation have been included. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. | |
These condensed financial statements should be read in conjunction with the audited financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. The financial statements in the Company’s annual report on Form 10-K were prepared on a going concern basis. | |
Liquidity and Going Concern | |
The Company was profitable in each of the first two quarters of 2013, but unprofitable in the third quarter and unprofitable for the first three quarters of 2013 in total. In the year ended December 31, 2012, the Company incurred a net loss of $3,298,082. As of September 30, 2013, the Company has an accumulated deficit of $60,704,738. The Company’s cash balances at September 30, 2013 were $401,794, including $846,460 advanced on its bank lines of credit. At September 30, 2013, the Company had additional unused borrowing capacity of approximately $144,000 on its bank lines of credit. The Company’s balance sheet at September 30, 2013 has a current ratio (current assets divided by current liabilities) of 0.5 to 1.0, and a working capital deficit of $3,956,605 (current assets less current liabilities). These circumstances raise substantial doubt about the Company’s ability to continue as a going concern. | |
In the last three years the Company has taken actions to reduce its expenses and to align its cost structure with economic conditions. The Company has the ability to further reduce expenses if necessary. Steps taken by the Company to reduce operating losses and achieve profitability include reduction of headcount to manage payroll costs, the introduction of new products, and continued close support of the Company’s distributors and application development partners as they establish their mobile applications in key vertical markets. The Company believes it will be able to further improve its liquidity and secure additional sources of financing by managing its working capital balances, use of its bank lines of credit, and raising additional capital as needed including development funding from development partners and the issuance of additional equity securities. However, there can be no assurance that additional capital will be available on acceptable terms, if at all, and any such terms may be dilutive to existing stockholders. The Company’s bank lines of credit may be terminated by the bank or by the Company at any time, and expire on January 10, 2014 unless renewed or further extended (see “NOTE 6 — Bank Financing Arrangements”). If the Company cannot maintain profitability, it will not be able to support its operations from positive cash flows, and would use its existing cash to support operating losses. If the Company is unable to secure the necessary capital for its business, it may need to suspend some or all of its current operations. | |
If the Company can maintain revenue growth and attain ongoing profitability, it anticipates requirements for cash will include funding of higher receivable and inventory balances, and increased expenses, including an increase of costs relating to new employees to support our growth and increases in salaries, benefits, and related support costs for employees. | |
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. These financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the Company’s inability to continue as a going concern. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Summary of Significant Accounting Policies | ' |
NOTE 2 — Summary of Significant Accounting Policies | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates, and such differences may be material to the financial statements. | |
Cash Equivalents and Fair Value of Financial Instruments | |
The Company considers all highly liquid investments purchased with an original maturity date of 90 days or less at date of purchase to be cash equivalents. At September 30, 2013 and December 31, 2012, all of the Company’s cash and cash equivalents consisted of amounts held in demand and money market deposits in banks. The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, debt and foreign exchange contracts approximate fair value due to the relatively short period of time to maturity. |
Inventories
Inventories | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventories | ' | ||||||||
NOTE 3 — Inventories | |||||||||
Inventories consist principally of raw materials and sub-assemblies, which are stated at the lower of cost (first-in, first-out) or market. | |||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials and sub-assemblies | $ | 994,388 | $ | 921,677 | |||||
Finished goods | 62,005 | 19,390 | |||||||
$ | 1,056,393 | $ | 941,067 |
Related_Party_Convertible_Note
Related Party Convertible Notes Payable | 3 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Convertible Notes Payable | ' |
NOTE 4 — Related Party Convertible Notes Payable | |
On September 4, 2013, the Company replaced $350,000 of convertible notes plus accrued interest (total of $380,696) originally issued to officers and directors of the Company on August 1, 2012 and maturing on August 1, 2014, with four year convertible notes expiring September 4, 2017. The replacement notes have an interest rate of 8% per annum that compounds quarterly, and contain a holder call provision that becomes effective on September 4, 2014. The replacement notes are convertible into common stock at the option of the holder at $2.44 per share as long as warrants issued on November 19, 2010 are outstanding (expire May 20, 2016), or at $1.25 per share. The original issuance of convertible notes on August 1, 2012 was in the amount of $400,000. The notes are being used for working capital purposes. During the nine months ended September 30, 2013, $25,000 of the original convertible notes were repaid, $350,000 of the notes were reissued as discussed previously, and $25,000 of the original notes remain outstanding. The remaining original notes accrue interest at 8% per annum, contain a holder call provision, and mature on August 1, 2014. Accrued interest is payable upon redemption. The remaining original notes are convertible into common stock at the option of the holder at $2.44 per share as long as warrants issued on November 19, 2010 are outstanding (expire May 20, 2016), or at $2.00 per share. The convertible notes are secured by all of the assets of the Company and are subordinated to amounts outstanding under the Company’s working capital bank line of credit with Silicon Valley Bank. | |
On September 4, 2013, the Company also replaced $350,000 of convertible notes plus accrued interest (total of $371,929) issued to the Company’s Chairman at various dates in the fourth quarter of 2012 and maturing on August 1, 2014, with four year convertible notes expiring September 4, 2017. The replacement notes are convertible into common stock at the option of the holder at $2.44 per share as long as warrants previously issued on November 19, 2010 are outstanding (expire May 20, 2016), or at the closing market price on the date of note issue of $1.25 per share, have eliminated the holder call provision contained in the original notes, and have an interest rate that compounds quarterly of 18% per annum during the period in which the November 19, 2010 warrants are outstanding, or 12% per annum. Previously on November 5, 2012, the Company’s Board of Directors approved the issue of up to $350,000 in convertible subordinated notes to its Chairman to be used for working capital purposes. At various dates beginning November 7, 2012 through December 12, 2012 the Company issued in total $350,000 of such notes to its Chairman. The original notes were identical to the notes issued on August 1, 2012 as described in the preceding paragraph, with the exception of the conversion price of which the weighted average fair market value conversion price was $1.04 per share as long as warrants previously issued on November 19, 2010 were no longer outstanding. The notes are secured by all of the assets of the Company and are subordinated to amounts outstanding under the Company’s working capital bank line of credit with Silicon Valley Bank. | |
The Company determined per ASC 470-50-40-10a, that the fair value of the embedded conversion option in the reissued convertible notes as a result of the change in conversion price and term, increased by more than 10% from the original notes. Therefore, debt extinguishment accounting rules apply. Accordingly, the reissued convertible notes payable were initially recorded at fair value; however, as there was no difference between the reissued amount of the notes and the net carrying amount of the original notes, no gain or loss was recorded. Accrued interest expense at September 30, 2013 related to all convertible subordinated notes outstanding was $9,512. |
Related_Party_and_Other_Short_
Related Party and Other Short Term Notes Payable | 3 Months Ended |
Sep. 30, 2013 | |
Notes to Financial Statements | ' |
Related Party and Other Short Term Notes Payable | ' |
NOTE 5 — Related Party and Other Short Term Notes Payable | |
On January 31, 2013, the Company’s Board of Directors approved a subordinated line of credit of up to $1,000,000 including up to $550,000 in advances by the Company’s Chairman. The funds raised are being used for working capital purposes. On September 30, 2013, a total of $550,000 in funds were outstanding under this line, of which $350,000 and $50,000 respectively were from the Company’s Chairman and Chief Executive Officer. The line has an expiration date of December 1, 2013. Interest accrues at the rate of 1% per week and is paid weekly. Balances outstanding under the line of credit are to be repaid in full on or before the maturity date. Balances under the line of credit are secured by all of the assets of the Company and are subordinated to amounts outstanding under the Company’s working capital bank line of credit with Silicon Valley Bank. Interest expense in the three and nine months ended September 30, 2013 related to the line of credit was $71,986 and $178,772, respectively. In October 2013, the Company raised an additional $100,000 in funds from the Company’s Chairman. | |
On August 31, 2012, the Company issued a promissory note to a lender for $400,000. The promissory note matured on January 31, 2013 and had an implied monthly compounded interest rate of 9.7%. The Company was required to pay a total of $528,000 principal and interest on the promissory note in weekly installments of approximately $25,000. The note was secured by substantially all the Company’s assets including intangible assets. This promissory note was subordinated to the bank financing arrangement as described in Note 6. During the first quarter 2013, the Company completed the repayment of the remaining principle and interest in the amounts of $95,289, and $7,711, respectively. |
Bank_Financing_Arrangements
Bank Financing Arrangements | 3 Months Ended |
Sep. 30, 2013 | |
Debt Disclosure [Abstract] | ' |
Bank Financing Arrangements | ' |
NOTE 6 — Bank Financing Arrangements | |
On October 12, 2011, the Company entered into a new credit facility agreement with Silicon Valley Bank (the “Bank”). This credit facility allows the Company to borrow up to $2,500,000 based on the level of qualified domestic and international receivables, up to a maximum of $1,500,000 and $1,000,000, respectively. Advances against the domestic line are calculated at 80% of qualified receivables except for receivables from distributors which are calculated at 60%. Advances against the international line are calculated at 90% against qualified hedged receivables and 70% against qualified non-hedged receivables and receivables from distributors. Borrowings under the lines bear an annual interest rate equal to the greater of (i) the Bank’s prime rate plus 1%, or (ii) 5%. The rate in effect has been 5% to date. There is also a collateral handling fee of 0.25% per month of the financed receivable balance outstanding. The applicable interest and fees are calculated based on the full amount of the accounts receivable provided as collateral for the actual amounts borrowed. The effective rate (interest plus all applicable fees) on actual cash advances in the first nine months of 2013 was 13.5% per annum. The credit facility agreement was to expire on October 12, 2013 unless renewed. On October 12, 2013, the Company and the Bank agreed to extend the agreement for an additional three month period ending January 10, 2014. The agreement may be terminated by the Company or by the Bank at any time. Upon such termination, the Bank would no longer make advances under the credit agreement and outstanding advances would be repaid as receivables are collected. All advances are at the Bank’s discretion and the Bank is not obligated to make advances. In addition, the Company must maintain a minimum liquidity ratio at all times based on quick assets (unrestricted cash equivalents at the Bank plus net eligible accounts receivable) to outstanding obligations to the Bank of not less than 2.0 to 1.0. The outstanding amounts borrowed under the domestic and international lines at September 30, 2013 were $720,811 and $125,649, respectively, and the full amounts of accounts receivable provided as collateral were $1,191,423, and $178,015, respectively. The outstanding amounts borrowed under the domestic and international lines at December 31, 2012 were $479,647 and $331,039, respectively, and the full amounts of accounts receivable provided as collateral were $777,987, and $464,731, respectively. Interest expense on the amounts drawn during the three and nine months ended September 30, 2013 was $30,685 and $90,512, respectively. Accrued interest related to the amounts outstanding at September 30, 2013 and December 31, 2012 was $6,996 and $7,237, respectively. |
Segment_Information_and_Concen
Segment Information and Concentrations | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
Segment Information and Concentrations | ' | ||||||||||||||||
NOTE 7 — Segment Information and Concentrations | |||||||||||||||||
Segment Information | |||||||||||||||||
The Company operates in one segment—mobile systems solutions for businesses. Mobile systems solutions typically consist of a handheld computer or other mobile device such as a smartphone or tablet, some with data collection peripherals, and third-party vertical applications software. The Company markets its products in the United States and foreign countries through its sales personnel and distributors. Revenues for the geographic areas were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
United States | $ | 2,492,640 | $ | 1,971,957 | $ | 8,296,712 | $ | 6,450,535 | |||||||||
Europe | 656,571 | 494,343 | 2,140,903 | 2,884,395 | |||||||||||||
Asia and rest of world | 142,428 | 330,054 | 1,554,630 | 1,452,685 | |||||||||||||
Total revenues | $ | 3,291,639 | $ | 2,796,354 | $ | 11,992,245 | $ | 10,787,615 | |||||||||
Export revenues are attributable to countries based on the location of the Company’s customers. The Company does not hold long-lived assets in foreign locations. | |||||||||||||||||
Major Customers | |||||||||||||||||
Customers who accounted for at least 10% of the Company’s total revenues in the three and nine month periods ended September 30, 2013 and 2012 were as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Ingram Micro Inc. | 22 | % | 19 | % | 19 | % | 18 | % | |||||||||
ScanSource, Inc. | 26 | % | 24 | % | 22 | % | 21 | % | |||||||||
BlueStar, Inc. | 18 | % | 16 | % | 14 | % | * | ||||||||||
_____________ | |||||||||||||||||
* Customer accounted for less than 10% of total revenues for the period | |||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||
Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash, cash equivalents and accounts receivable. The Company invests its cash in demand and money market deposit accounts in banks. To the extent of the amounts recorded on the balance sheet, cash is concentrated at the Company’s bank to the extent needed to comply with the minimum liquidity ratio of the bank line agreement. To date, the Company has not experienced losses on these investments. The Company’s trade accounts receivables are primarily with distributors and OEMs. The Company performs ongoing credit evaluations of its customers’ financial conditions but the Company generally requires no collateral. Reserves are maintained for potential credit losses, and such losses have been within management’s expectations. Customers who accounted for at least 10% of the Company’s accounts receivable balances at September 30, 2013 and December 31, 2012 were as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Company A | 34 | % | 28 | % | |||||||||||||
Company B | 26 | % | 12 | % | |||||||||||||
Company C | 10 | % | 16 | % | |||||||||||||
Company D | * | 11 | % | ||||||||||||||
Company E | * | 12 | % | ||||||||||||||
_____________ | |||||||||||||||||
* Customer accounted for less than 10% of total accounts receivable for the period | |||||||||||||||||
Concentration of Suppliers | |||||||||||||||||
Several of the Company’s component parts are produced by a sole or limited number of suppliers. Shortages could occur in these essential materials due to increased demand, or to an interruption of supply. Suppliers may choose to restrict credit terms or require advance payments causing delays in the procurement of essential materials. If the Company were unable to procure certain of such materials, it could have a material adverse effect upon its results. At September 30, 2013 and December 31, 2012, 26% and 32% respectively, of the Company’s accounts payable balances were concentrated in a single supplier. For the three months ended September 30, 2013, this and another supplier accounted for 43% of the inventory purchases. |
StockBased_Compensation
Stock-Based Compensation | 3 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Stock-Based Compensation | ' |
NOTE 8 — Stock-Based Compensation | |
The Company recognizes stock-based compensation in the financial statements for all share-based awards to employees, including grants of employee stock options, based on their fair values. The Company uses a binomial lattice valuation model to estimate the fair value of stock option grants. The binomial lattice model incorporates calculations for expected volatility, risk-free interest rates, employee exercise patterns and post-vesting employment termination behavior, and these factors affect the estimate of the fair value of the Company's stock option grants. Total stock-based compensation expense for the three and nine months ended September 30, 2013 was $50,683 and $201,974, respectively. Total stock-based compensation expense for the three and nine months ended September 30, 2012 was $105,657 and $469,117, respectively. In the three and nine months ended September 30, 2013, 45,000 and 239,500, stock options were granted, respectively, at weighted average per share fair values estimated at $0.73 and $0.77, respectively. |
Net_Loss_Per_Share_Applicable_
Net Loss Per Share Applicable to Common Stockholders | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Net Loss Per Share Applicable to Common Stockholders | ' | ||||||||||||||||
NOTE 9 — Net Loss Per Share Applicable to Common Stockholders | |||||||||||||||||
The following table sets forth the computation of basic and diluted net loss per share: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (320,868 | ) | $ | (982,823 | ) | $ | (202,557 | ) | $ | (2,609,997 | ) | |||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding used in computing net loss per share: | |||||||||||||||||
Basic and Diluted | 4,867,063 | 4,861,063 | 4,864,360 | 4,851,152 | |||||||||||||
Net loss per share: | |||||||||||||||||
Basic and Diluted | $ | (0.07 | ) | $ | (0.20 | ) | $ | (0.04 | ) | $ | (0.54 | ) | |||||
For the three and nine months ended September 30, 2013 and 2012, the diluted net loss per share is equal to the basic net loss per share because the Company experienced losses in these periods. Thus no potential common shares underlying stock options and warrants have been included in the net loss per share calculation, as their effect is anti-dilutive. Options and warrants to purchase 2,307,274 shares and 2,137,113 shares of common stock at September 30, 2013, and 2012, respectively, have been omitted from the net loss per share calculation. |
Taxes
Taxes | 3 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Taxes | ' |
NOTE 10 — Taxes | |
Income tax expense during the three and nine months ended September 30, 2013 and 2012, and the deferred income tax amounts shown on the Company’s Condensed Balance Sheets, is related entirely to the deferred tax liability on the portion of the Company’s goodwill amortized for tax purposes. Due to the indefinite characteristic of this deferred tax liability, it cannot be offset against deferred tax assets. As a result, the Company recognized deferred tax expense of $7,985 and $23,955 in each of the three and nine month periods ended September 30, 2013 and 2012. | |
At December 31, 2012, the Company has an unrecognized tax benefit of approximately $633,000, which did not change significantly during the three and nine months ended September 30, 2013. Future changes in the unrecognized tax benefit are unlikely to have an impact on the effective tax rate due to the full valuation allowance recorded on the Company’s deferred tax assets, as realization of the deferred tax assets is dependent upon future taxable income. |
Commitments_and_Contingency
Commitments and Contingency | 3 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Commitments and Contingency | ' | ||||||
NOTE 11 — Commitments and Contingencies | |||||||
Operating Lease | |||||||
The Company operates its headquarters under a non-cancelable operating lease which provides for the lease by the Company of approximately 37,100 square feet of space in Newark, California. On December 28, 2012, the Company amended its commercial building lease agreement to extend the term of the lease to June 30, 2022. The base rent under the facilities lease was $29,705 per month for the period from July 1, 2012 through June 30, 2013. The base rent increased 4% to $30,893 beginning July 1, 2013 through June 30, 2014. The base rent increases annually thereafter at a rate of four percent per year for the remaining term of the lease ending June 30, 2022. | |||||||
Future minimum lease payments under all operating leases are as shown below: | |||||||
Annual minimum payments: | Amount | ||||||
2013 (October 1, 2013 to December 31, 2013) | $ | 92,679 | |||||
2014 | 378,130 | ||||||
2015 | 393,255 | ||||||
2016 | 408,986 | ||||||
2017 to 2022 | 2,557,481 | ||||||
Total minimum payments | $ | 3,830,531 | |||||
Rental expense under all operating leases for the three and nine month periods ended September 30, 2013 was $106,439 and $320,289, respectively. Rental expense under all operating leases for the three and nine month periods ended September 30, 2012 was $93,166 and $276,795, respectively. The amount of deferred rent at September 30, 2013 and December 31, 2012 was $218,244 and $179,527, respectively. | |||||||
Capital Lease Obligations | |||||||
The Company leases certain of its equipment under capital leases. The leases are collateralized by the underlying assets. At September 30, 2013 and December 31, 2012, property and equipment with a cost of $87,946 and $73,275, respectively, were subject to such financing arrangements. Related accumulated amortization at September 30, 2013 and December 31, 2012, amounted to $23,640 and $8,380, respectively. | |||||||
Future minimum payments under capital lease and equipment financing arrangements as of September 30, 2013, are as follows: | |||||||
Annual minimum payments: | Amount | ||||||
2013 (October 1, 2013 to December 31, 2013) | $ | 6,379 | |||||
2014 | 25,516 | ||||||
2015 | 25,516 | ||||||
2016 | 11,442 | ||||||
Total minimum payments | 68,853 | ||||||
Less amount representing interest | (4,548 | ) | |||||
Present value of net minimum payments | 64,305 | ||||||
Short term portion of capital leases | (22,836 | ) | |||||
Long term portion of capital leases | $ | 41,469 | |||||
Legal Matters | |||||||
The Company is subject to disputes, claims, requests for indemnification and lawsuits arising in the ordinary course of business. Under the indemnification provisions of the Company’s customer agreements, the Company routinely agrees to indemnify and defend its customers against infringement of any patent, trademark, copyright, trade secrets, or other intellectual property rights arising from customers’ legal use of the Company’s products or services. The exposure to the Company under these indemnification provisions is generally limited to the total amount paid for the indemnified products. However, certain indemnification provisions potentially expose the Company to losses in excess of the aggregate amount received from the customer. To date, there have been no claims against the Company by its customers pertaining to such indemnification provisions, and no amounts have been recorded. | |||||||
On October 9, 2013, Hudson Bay Master Fund Ltd. filed a complaint in the United States District Court for the Northern District of Illinois, Eastern Division, alleging that the Company had triggered anti-dilution provisions of its warrant and was entitled to adjustment of the exercise price and the number of shares. The warrant was issued on November 19, 2010 for 500,000 shares at an exercise price of $2.44 per share. The Company is evaluating the claim. |
Subsequent_Event
Subsequent Event | 3 Months Ended |
Sep. 30, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Event | ' |
NOTE 12 — Subsequent Events | |
Extension of Bank Line Credit Agreements | |
On October 12, 2011, the Company entered into domestic and international working capital revolving credit line agreements with Silicon Valley Bank (“the Bank) with an initial expiration date of October 12, 2013. On October 12, 2013, the Company and its Bank entered into an agreement to extend the credit line agreements for a three month period ending January 10, 2014 (see “NOTE 6 — Bank Financing Arrangements” for more information). | |
Related Party Short Term Notes Payable | |
In October 2013, the Company raised a total of $100,000 in funds from the Company’s Chairman under a subordinated line of credit agreement previously approved by the Company’s Board of Directors. The funds raised are being used for working capital purposes (see “NOTE 5 — Related Party and Other Short Term Notes Payable” for more information). |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Use of Estimates | ' |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expense during the reporting period. Actual results could differ from those estimates, and such differences may be material to the financial statements. | |
Cash Equivalents and Fair Value of Financial Instruments | ' |
The Company considers all highly liquid investments purchased with an original maturity date of 90 days or less at date of purchase to be cash equivalents. At September 30, 2013 and December 31, 2012, all of the Company’s cash and cash equivalents consisted of amounts held in demand and money market deposits in banks. The carrying value of the Company’s cash and cash equivalents, accounts receivable, accounts payable, debt and foreign exchange contracts approximate fair value due to the relatively short period of time to maturity. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory components | ' | ||||||||
September 30, | December 31, | ||||||||
2013 | 2012 | ||||||||
Raw materials and sub-assemblies | $ | 994,388 | $ | 921,677 | |||||
Finished goods | 62,005 | 19,390 | |||||||
$ | 1,056,393 | $ | 941,067 |
Segment_Information_and_Concen1
Segment Information and Concentrations (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
Revenue by geographic areas | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Revenues: | |||||||||||||||||
United States | $ | 2,492,640 | $ | 1,971,957 | $ | 8,296,712 | $ | 6,450,535 | |||||||||
Europe | 656,571 | 494,343 | 2,140,903 | 2,884,395 | |||||||||||||
Asia and rest of world | 142,428 | 330,054 | 1,554,630 | 1,452,685 | |||||||||||||
Total revenues | $ | 3,291,639 | $ | 2,796,354 | $ | 11,992,245 | $ | 10,787,615 | |||||||||
Major customers accounted for at least 10% of total revenues | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Ingram Micro Inc. | 22 | % | 19 | % | 19 | % | 18 | % | |||||||||
ScanSource, Inc. | 26 | % | 24 | % | 22 | % | 21 | % | |||||||||
BlueStar, Inc. | 18 | % | 16 | % | 14 | % | * | ||||||||||
Major customers as a percentage of net accounts receivable balances | ' | ||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2013 | 2012 | ||||||||||||||||
Company A | 34 | % | 28 | % | |||||||||||||
Company B | 26 | % | 12 | % | |||||||||||||
Company C | 10 | % | 16 | % | |||||||||||||
Company D | * | 11 | % | ||||||||||||||
Company E | * | 12 | % |
Net_Loss_Per_Share_Applicable_1
Net Loss Per Share Applicable to Common Stockholders (Tables) | 3 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Net loss per share applicable to common stockholders | ' | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Numerator: | |||||||||||||||||
Net loss | $ | (320,868 | ) | $ | (982,823 | ) | $ | (202,557 | ) | $ | (2,609,997 | ) | |||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding used in computing net loss per share: | |||||||||||||||||
Basic and Diluted | 4,867,063 | 4,861,063 | 4,864,360 | 4,851,152 | |||||||||||||
Net loss per share: | |||||||||||||||||
Basic and Diluted | $ | (0.07 | ) | $ | (0.20 | ) | $ | (0.04 | ) | $ | (0.54 | ) |
Commitments_and_Contingency_Ta
Commitments and Contingency (Tables) | 3 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||||
Future minimum payments for operating leases | ' | ||||||
Annual minimum payments: | Amount | ||||||
2013 (October 1, 2013 to December 31, 2013) | $ | 92,679 | |||||
2014 | 378,130 | ||||||
2015 | 393,255 | ||||||
2016 | 408,986 | ||||||
2017 to 2022 | 2,557,481 | ||||||
Total minimum payments | $ | 3,830,531 | |||||
Future minimum payments under capital lease and equipment financing arrangements | ' | ||||||
Annual minimum payments: | Amount | ||||||
2013 (October 1, 2013 to December 31, 2013) | $ | 6,379 | |||||
2014 | 25,516 | ||||||
2015 | 25,516 | ||||||
2016 | 11,442 | ||||||
Total minimum payments | 68,853 | ||||||
Less amount representing interest | (4,548 | ) | |||||
Present value of net minimum payments | 64,305 | ||||||
Short term portion of capital leases | (22,836 | ) | |||||
Long term portion of capital leases | $ | 41,469 |
Basis_of_Presentation_Details_
Basis of Presentation (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Dec. 31, 2011 | |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' |
Net loss | ($320,868) | ($982,823) | ($202,557) | ($2,609,997) | ($3,298,082) | ' |
Accumulated deficit | -60,704,738 | ' | -60,704,738 | ' | -60,502,181 | ' |
Cash balance | 401,794 | 407,211 | 401,794 | 407,211 | 390,513 | 957,022 |
Bank line of credit | 846,460 | ' | 846,460 | ' | 810,686 | ' |
Total unused borrowing capacity | 144,000 | ' | 144,000 | ' | ' | ' |
Current ratio (current assets divided by current liabilities) | 0.5 | ' | 0.5 | ' | ' | ' |
Working capital deficit | ($3,956,605) | ' | ($3,956,605) | ' | ' | ' |
Inventories_Inventory_componen
Inventories - Inventory components (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Inventory Disclosure [Abstract] | ' | ' |
Raw materials and sub-assemblies | $994,388 | $921,677 |
Finished goods | 62,005 | 19,390 |
Total | $1,056,393 | $941,067 |
Related_Party_Convertible_Note1
Related Party Convertible Notes Payable (Details Narrative) (USD $) | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Aug. 31, 2012 | Sep. 30, 2013 | Aug. 01, 2012 | Sep. 30, 2013 | Sep. 04, 2013 | Sep. 30, 2013 | Sep. 04, 2013 | Sep. 30, 2013 | Dec. 12, 2012 | Sep. 30, 2013 | Nov. 05, 2012 | Sep. 30, 2013 | |
Convertible notes issued on August 1, 2012 | Convertible notes issued on August 1, 2012 | Convertible notes issued on August 1, 2012 | Convertible notes issued on August 1, 2012 | Convertible notes issued on September 4, 2013 | Convertible notes issued on September 4, 2013 | Convertible notes issued to Chairman on September 4, 2013 | Convertible notes issued to Chairman on September 4, 2013 | Convertible notes issued on November 5, 2012 | Convertible notes issued on November 5, 2012 | Convertible notes issued on November 5, 2012 | All convertible subordinated notes | ||||
Proceeds of convertible subordinated notes payable | ' | ' | ' | $400,000 | ' | ' | ' | $380,696 | ' | $371,929 | ' | $350,000 | ' | ' | ' |
Annual interest rate if warrants issued on November 19, 2012 are outstanding | ' | ' | ' | 8.00% | ' | ' | ' | 8.00% | ' | 18.00% | ' | 8.00% | ' | ' | ' |
Annual interest rate if warrants issued on November 19, 2012 are not outstanding | ' | ' | ' | 8.00% | ' | ' | ' | 8.00% | ' | 12.00% | ' | 8.00% | ' | ' | ' |
Convertible subordinated notes payable maturity date | ' | ' | ' | 1-Aug-14 | ' | ' | ' | 1-Aug-14 | ' | 1-Aug-14 | ' | 3-Sep-13 | ' | ' | ' |
Conversion price if warrants issued on November 19, 2012 are outstanding | ' | ' | ' | ' | ' | $2.44 | ' | $2.44 | ' | $2.44 | ' | ' | ' | $2.44 | ' |
Conversion price if warrants issued on November 19, 2012 are not outstanding | ' | ' | ' | ' | ' | $2 | ' | $1.25 | ' | $1.25 | ' | ' | ' | $1.04 | ' |
Accrued interest expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,512 |
Redemption of related party convertible note payable | -25,000 | ' | ' | ' | ' | ' | -25,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Related party convertible notes payable balance | $777,625 | ' | $750,000 | ' | $25,000 | ' | ' | ' | $380,696 | ' | $371,929 | ' | $0 | ' | ' |
Related_Party_and_Other_Short_1
Related Party and Other Short Term Notes Payable (Details Narrative) (USD $) | 9 Months Ended | 3 Months Ended | 5 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Aug. 31, 2012 | Oct. 12, 2011 | Mar. 31, 2013 | Feb. 01, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 01, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Feb. 01, 2013 | |
Promissory note issued on 8/31/12 | Promissory note issued on 8/31/12 | Subordinated line of credit | Subordinated line of credit | Subordinated line of credit | Subordinated line of credit to Chariman | Subordinated line of credit to Chariman | Subordinated line of credit to Chariman | |||||
Aggregate maximum advance amount | ' | ' | ' | $2,500,000 | ' | ' | ' | ' | $1,000,000 | ' | ' | $550,000 |
Weekly interest rate | ' | ' | ' | 5.00% | ' | ' | ' | ' | 1.00% | ' | ' | 1.00% |
Line of credit balance | ' | ' | ' | ' | ' | ' | 550,000 | 550,000 | ' | ' | 350,000 | ' |
Proceeds from issuance of related party and other short term notes payable | 600,000 | 800,000 | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' |
Interest expense | ' | ' | ' | ' | ' | ' | 71,986 | 178,772 | ' | ' | ' | ' |
Promissory note payable | ' | ' | 400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Monthly compounded interest rate | ' | ' | 9.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total repayment | ' | ' | ' | ' | ' | 528,000 | ' | ' | ' | ' | ' | ' |
Weekly installment | ' | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' |
Principal payment | ' | ' | ' | ' | 95,289 | ' | ' | ' | ' | ' | ' | ' |
Interest payment | ' | ' | ' | ' | $7,711 | ' | ' | ' | ' | ' | ' | ' |
Bank_Financing_Arrangements_De
Bank Financing Arrangements (Details Narrative) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | |
Oct. 12, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Notes to Financial Statements | ' | ' | ' | ' |
Aggregate maximum advance amount | $2,500,000 | ' | ' | ' |
Maximum advance amount based on qualified domestic receivables | 1,500,000 | ' | ' | ' |
Maximum advance amount based on qualified international receivables | 1,000,000 | ' | ' | ' |
Advanced rate of domestic qualified non-distributor receivables | 80.00% | ' | ' | ' |
Advanced rate of domestic qualified distributor receivables | 60.00% | ' | ' | ' |
Advanced rate of international qualified non-distributor receivables | 90.00% | ' | ' | ' |
Advanced rate of international qualified distributor receivables | 70.00% | ' | ' | ' |
Debt reference rate | 'Bank's Prime Rate | ' | ' | ' |
Basis point added to reference rate of debt (as a percent) | 1.00% | ' | ' | ' |
Minimum interest rate on debt (as a percent) | 5.00% | ' | ' | ' |
Interest rate in effect (as a percent) | 5.00% | ' | ' | ' |
Monthly collateral handling fee (as a percent of financed receivable balance outstanding) | 0.25% | ' | ' | ' |
Minimum liquidity ratio (quick assets divided by line of credit balance) | 2 | ' | ' | ' |
Effective rate on cash advances | ' | ' | 13.50% | ' |
Amount outstanding under domestic line of credit | ' | 720,811 | 720,811 | 479,647 |
Amount outstanding under international line of credit | ' | 125,649 | 125,649 | 331,039 |
Full amounts of domestic accounts receivable provided as collateral | ' | 1,191,423 | 1,191,423 | 777,987 |
Full amounts of international accounts receivable provided as collateral | ' | 178,015 | 178,015 | 464,731 |
Interest expense | ' | 30,685 | 90,512 | ' |
Accrued interest | ' | $6,996 | $6,996 | $7,237 |
Segment_Information_and_Concen2
Segment Information and Concentrations - Revenue by geographic areas (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues: | $3,291,639 | $2,796,354 | $11,992,245 | $10,787,615 |
United States | ' | ' | ' | ' |
Revenues: | 2,492,640 | 1,971,957 | 8,296,712 | 6,450,535 |
Europe | ' | ' | ' | ' |
Revenues: | 656,571 | 494,343 | 2,140,903 | 2,884,395 |
Asia and rest of world | ' | ' | ' | ' |
Revenues: | $142,428 | $330,054 | $1,554,630 | $1,452,685 |
Segment_Information_and_Concen3
Segment Information and Concentrations - Major customers accounted for at least 10% of total revenues (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Ingram Micro Inc. | ' | ' | ' | ' |
Percent of total revenues | 22.00% | 19.00% | 19.00% | 18.00% |
Threshold percentage for disclosure | 10.00% | 10.00% | 10.00% | 10.00% |
Scansource, Inc. | ' | ' | ' | ' |
Percent of total revenues | 26.00% | 24.00% | 22.00% | 21.00% |
Threshold percentage for disclosure | 10.00% | 10.00% | 10.00% | 10.00% |
BlueStar, Inc. | ' | ' | ' | ' |
Percent of total revenues | 18.00% | 16.00% | 14.00% | ' |
Threshold percentage for disclosure | 10.00% | 10.00% | 10.00% | 10.00% |
Segment_Information_and_Concen4
Segment Information and Concentrations - Major customers as a percentage of net accounts receivable balances (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Company A | ' | ' |
Percent of net accounts receivable balances | 34.00% | 28.00% |
Threshold percentage for disclosure | 10.00% | 10.00% |
Company B | ' | ' |
Percent of net accounts receivable balances | 26.00% | 12.00% |
Threshold percentage for disclosure | 10.00% | 10.00% |
Company C | ' | ' |
Percent of net accounts receivable balances | 10.00% | 16.00% |
Threshold percentage for disclosure | 10.00% | 10.00% |
Company D | ' | ' |
Percent of net accounts receivable balances | ' | 11.00% |
Threshold percentage for disclosure | 10.00% | 10.00% |
Company E | ' | ' |
Percent of net accounts receivable balances | ' | 12.00% |
Threshold percentage for disclosure | 10.00% | 10.00% |
Concentration_of_Suppliers_Det
Concentration of Suppliers (Details Narrative) | 3 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Notes to Financial Statements | ' | ' |
Accounts payable balances with a single supplier | 26.00% | 32.00% |
Percentage of inventory purchases from top two suppliers | 43.00% | ' |
StockBased_Compensation_Detail
Stock-Based Compensation (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' | ' |
Stock-based compensation expenses included in the statement of operations | $50,683 | $105,657 | $201,974 | $469,117 |
Stock options granted | 45,000 | ' | 239,500 | ' |
Weighted average grant price | $0.73 | ' | $0.77 | ' |
Net_Loss_Per_Share_Applicable_2
Net Loss Per Share Applicable to Common Stockholders - Net income (loss) per share applicable to common stockholders (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Numerator: | ' | ' | ' | ' | ' |
Net income (loss) | ($320,868) | ($982,823) | ($202,557) | ($2,609,997) | ($3,298,082) |
Basic | 4,867,063 | 4,861,063 | 4,864,360 | 4,851,152 | ' |
Diluted | 4,867,063 | 4,861,063 | 4,864,360 | 4,851,152 | ' |
Net income (loss) per share: | ' | ' | ' | ' | ' |
Basic | ($0.07) | ($0.20) | ($0.04) | ($0.54) | ' |
Diluted | ($0.07) | ($0.20) | ($0.04) | ($0.54) | ' |
Net_Loss_Per_Share_Applicable_3
Net Loss Per Share Applicable to Common Stockholders (Details Narrative) | Sep. 30, 2013 | Sep. 30, 2012 |
Accounting Policies [Abstract] | ' | ' |
Common shares issuable for options, warrants and convertible notes omitted from the loss per share calculation | 2,307,274 | 2,137,113 |
Taxes_Details_Narrative
Taxes (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' |
Deferred tax expense | $7,985 | $7,985 | $23,955 | $23,955 | ' |
Unrecognized tax benefit | ' | ' | ' | ' | $633,000 |
Commitments_and_Contingency_Fu
Commitments and Contingency - Future minimum payments for operating leases (Details) (USD $) | Sep. 30, 2013 |
Annual minimum payments: | ' |
2013 (October 1, 2013 to December 31, 2013) | $92,679 |
2014 | 378,130 |
2015 | 393,255 |
2016 | 408,986 |
2017 to 2022 | 2,557,481 |
Total minimum payments | $3,830,531 |
Commitments_and_Contingency_Fu1
Commitments and Contingency - Future minimum payments under capital lease and equipment financing arrangements (Details) (USD $) | Sep. 30, 2013 |
Annual minimum payments: | ' |
2013 (July 1, 2013 to December 31, 2013) | $6,379 |
2014 | 25,516 |
2015 | 25,516 |
2016 | 11,442 |
Total minimum payments | 68,853 |
Less amount representing interest | -4,548 |
Present value of net minimum payments | 64,305 |
Short term portion of capital leases | -22,836 |
Long term portion of capital leases | $41,469 |
Commitments_and_Contingency_De
Commitments and Contingency (Details Narrative) (USD $) | 3 Months Ended | 7 Months Ended | 9 Months Ended | 16 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' | ' | ' | ' |
Rental expense for operating lease | $106,439 | $93,166 | ' | $320,289 | $276,795 | ' |
Deferred rent | 218,244 | ' | 179,527 | 218,244 | ' | 218,244 |
Capital lease obligations | 87,946 | ' | 73,275 | 87,946 | ' | 87,946 |
Accumulated amortization | ' | ' | $8,380 | ' | ' | $23,640 |