Socket Mobile (SCKT) 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	11-May-15
Document And Entity Information
Entity Registrant Name	SOCKET MOBILE, INC.
Entity Central Index Key	944075
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
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		5,544,230
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

Balance_Sheets

Balance Sheets (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$743,232	$632,631
Accounts receivable, net	1,670,579	1,896,701
Inventories	807,877	957,327
Prepaid expenses and other current assets	94,562	125,707
Total current assets	3,316,250	3,612,366
Property and equipment:
Machinery and office equipment	2,041,191	2,025,397
Computer equipment	996,538	984,099
Property and equipment, gross	3,037,729	3,009,496
Accumulated depreciation	-2,815,266	-2,764,964
Property and equipment, net	222,463	244,532
Goodwill	4,427,000	4,427,000
Other assets	85,918	85,918
Total assets	8,051,631	8,369,816
Current liabilities:
Accounts payable and accrued expenses	2,655,935	3,007,048
Accrued payroll and related expenses	523,355	528,155
Bank line of credit	815,981	815,981
Deferred income on shipments to distributors	887,837	978,555
Related party and other short term notes payable	600,000	600,000
Related party convertible notes payable-current portion	380,696	380,696
Short term portion of deferred service revenue	122,675	131,344
Short term portion of capital leases and deferred rent	25,680	25,102
Total current liabilities	6,012,159	6,466,881
Related party convertible notes payable	371,929	371,929
Long term portion of deferred service revenue	76,262	83,301
Long term portion of capital leases and deferred rent	275,770	275,589
Deferred income taxes	151,259	143,274
Total liabilities	6,887,379	7,340,974
Stockholders' equity:
Common stock, $0.001 par value: Authorized – 20,000,000 shares, Issued and outstanding – 5,544,230 shares at March 31, 2015 and 5,403,851 shares at December 31, 2014	5,544	5,404
Additional paid-in capital	61,920,825	61,713,995
Accumulated deficit	-60,762,117	-60,690,557
Total stockholders’ equity	1,164,252	1,028,842
Total liabilities and stockholders’ equity	$8,051,631	$8,369,816

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
LIABILITIES AND STOCKHOLDERS' EQUITY
Common stock par value	$0.00	$0.00
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	5,544,230	5,403,851
Common stock, shares outstanding	5,544,230	5,403,851

Statements_of_Operations

Statements of Operations (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Revenues	$4,005,744	$3,795,339
Cost of revenues	2,198,106	2,172,279
Gross profit	1,807,638	1,623,060
Operating expenses:
Research and development	575,051	553,686
Sales and marketing	618,266	475,946
General and administrative	603,226	520,923
Total operating expenses	1,796,543	1,550,555
Operating income	11,095	72,505
Interest expense and other, net	-74,670	-135,944
Net loss before income taxes	-63,575	-63,439
Income tax expense	-7,985	-7,985
Net loss	($71,560)	($71,424)
Net loss per share:
Basic and Diluted	($0.01)	($0.01)
Weighted average shares outstanding:
Basic and Diluted	5,513,588	4,897,896

Statements_of_Cash_Flows

Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Operating activities
Net loss	($71,560)	($71,424)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock-based compensation	46,568	52,246
Depreciation and amortization	50,301	79,841
Deferred income tax expense	7,985	7,985
Changes in operating assets and liabilities:
Accounts receivable	226,122	-280,856
Inventories	149,450	409,241
Prepaid expenses and other current assets	31,145	-88,662
Accounts payable and accrued expenses	-351,113	61,202
Accrued payroll and related expenses	-4,800	-51,679
Deferred income on shipments to distributors	-90,718	-101,328
Deferred service revenue	-15,708	-439
Change in deferred rent	6,822	10,530
Net cash (used in) provided by operating activities	-15,506	26,657
Investing activities
Purchases of equipment	-28,232	-8,100
Net cash used in investing activities	-28,232	-8,100
Financing activities
Payments on capital leases	-6,063	-5,550
Proceeds from borrowings under bank line of credit agreement	14,515	943,871
Repayments of borrowings under bank line of credit agreement	-14,515	-892,787
Stock options exercised	29,152
Warrants exercised	131,250
Net cash provided by financing activities	154,339	45,534
Net increase in cash and cash equivalents	110,601	64,091
Cash and cash equivalents at beginning of period	632,631
Cash and cash equivalents at end of period	743,232	670,346
Supplemental cash flow information
Cash paid for interest	$43,036	$102,329

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2015
Disclosure Text Block [Abstract]
Basis of Presentation	NOTE 1 — Basis of Presentation
	The accompanying unaudited 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 omitted.
	These 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, 2014. 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 unprofitable in the first quarter of 2015 and 2014. As of March 31, 2015, the Company has an accumulated deficit of $60,762,117. The Company’s cash balances at March 31, 2015 were $743,232, including $815,981 advanced on its bank lines of credit. At March 31, 2015, the Company had additional unused borrowing capacity of approximately $258,000 on its bank lines of credit. The Company’s balance sheet at March 31, 2015 has a current ratio (current assets divided by current liabilities) of 0.55 to 1.0, and a working capital deficit of $2,695,909 (current assets less current liabilities). These circumstances raise substantial doubt about the Company’s ability to continue as a going concern.
	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 intended 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 its distributors and registered developers whose applications support the use of the Company’s barcode scanning products. 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 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. 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.
	To maintain revenue growth and profitability, the Company 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 its 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
	Mar. 31, 2015
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 March 31, 2015 and December 31, 2014, 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
	Mar. 31, 2015
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.
		March 31,		December 31,
		2015		2014
	Raw materials and sub-assemblies	$	787,818	$	930,886
	Finished goods		20,059		26,441
		$	807,877	$	957,327

Related_Party_Convertible_Note

Related Party Convertible Notes Payable	3 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
Related Party Convertible Notes Payable	NOTE 4 — Related Party Convertible Notes Payable
	Short Term Related Party Convertible Notes Payable
	Short term related party convertible notes payable at March 31, 2015 and December 31, 2014 were $380,696. The notes were issued on September 4, 2013 to officers and directors of the Company and mature on September 4, 2017. The notes have an interest rate of 8% per annum that compounds quarterly, and contain a holder call provision that became effective on September 4, 2014. Accrued interest convertible into common stock was $50,520 and $42,179 at March 31, 2015 and December 31, 2014, respectively and was included in Accounts Payable and Accrued Expenses. Interest expense for the three months ended March 31, 2015 and 2014 was $8,342 and $8,200, respectively. The notes and accrued interest 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 (warrants expire May 20, 2016) or at $1.25 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 the Company’s bank.
	Long Term Related Party Convertible Notes Payable
	Long term related party convertible notes payable at March 31, 2014 and December 31, 2014 were $371,929. The notes were issued on September 4, 2013 to the Company’s Chairman and mature on September 4, 2017. The notes have an interest rate of 18% per annum that compounds quarterly. Accrued interest was $118,752 and $97,900 at March 31, 2015 and December 31, 2014, respectively and was included in Accounts Payable and Accrued Expenses. Interest expense for the three months ended March 31, 2015 and 2014 was $20,853 and $17,486, respectively. The notes and accrued interest 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 (warrants expire May 20, 2016) or at $1.25 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 the Company’s bank.

Related_Party_and_Other_ShortT

Related Party and Other Short-Term Notes Payable	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
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 March 31, 2015 and December 31, 2014, a total of $600,000 in notes payable were outstanding under this line, of which $450,000 and $50,000 respectively were from the Company’s Chairman and Chief Executive Officer. The notes mature on June 1, 2016 are repayable by the Company at any time, and have an interest rate of 18% per annum payable monthly in cash. Beginning October 1, 2014, investors may request note repayment. 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 credit facility with its bank. Interest expense for the three month periods ended March 31, 2015 and 2014 related to the line of credit were $26,630 and $83,571, respectively.

Bank_Financing_Arrangements

Bank Financing Arrangements	3 Months Ended
	Mar. 31, 2015
Debt Disclosure [Abstract]
Bank Financing Arrangements	NOTE 6 — Bank Financing Arrangements
	On February 27, 2014, the Company entered into a new credit facility agreement with Bridge Bank (the “Bank”). The credit facility was activated and transfer of the credit facility from the Company’s former bank was completed on March 7, 2014. The revolving credit line agreement is for a two year period ending February 27, 2016. Under the terms of the credit facility agreement with the Bank, the Company may borrow up to $2.5 million, of which up to $1.5 million is based on qualified receivables from domestic customers and up to $1.0 million is based on qualified receivables from international customers. The Company’s total borrowings under the line may not exceed 50% of the sum of cash plus qualified receivables. Advances against the domestic and international lines are calculated at 70% of qualified receivables. Borrowings under the lines bear an annual interest rate equal to the Bank’s prime rate (minimum of 3.25%) plus 1.5%. The annual interest rate in effect beginning March 7, 2014 is 4.75% per annum. There is also a collateral handling fee of 0.2% per month of the financed receivables outstanding. The applicable interest and fees are calculated based on the actual amounts borrowed. At March 31, 2015, the effective rate (interest plus all applicable fees) on actual cash advanced is 7.15% per annum. The borrowings under the credit facility are secured by a first priority security interest in the assets of the Company. All advances are at the Bank’s discretion and the Bank is not obligated to make advances. The agreement may be terminated by the Company or by the Bank at any time. The outstanding amounts borrowed under the domestic line at March 31, 2015 were $815,981, and the full amounts of accounts receivable provided as collateral were $1,160,000. There were no amounts borrowed under the international line at March 31, 2015.
	On March 23, 2015, the Company signed a Business Financing Modification Agreement by and between the Company and the Bank to extend the expiration date of a revolving credit line agreement for the domestic (U.S. based) portion of the line from February 27, 2016 to February 27, 2017. All other terms of the revolving credit line agreement remain unchanged.
	Total interest expense on the amounts drawn under the Company’s bank credit lines in effect during the three months ended March 31, 2015 and 2014, was $14,568 and $24,119, respectively. Accrued interest related to the amounts outstanding under the Company’s bank lines of credit at March 31, 2015 and December 31, 2014 was $3,981.

Segment_Information_and_Concen

Segment Information and Concentrations	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
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 March 31,
	Revenues:	2015			2014
	United States	$	2,833,945		$	2,682,077
	Europe		683,163			745,070
	Asia and rest of world		488,636			368,192
	Total revenues	$	4,005,744		$	3,795,339
	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 month periods ended March 31, 2015 and 2014 were as follows:
		Three Months Ended March 31,
		2015			2014
	Ingram Micro Inc.		25	%		33	%
	BlueStar, Inc.		21	%		15	%
	Scansource, Inc.		19	%		13	%
	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. 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 March 31, 2015 and December 31, 2014 were as follows:
		March 31,			December 31,
		2015			2014
	Company A		25	%		42	%
	Company B		24	%		25	%
	Company C		22	%		14	%
	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 was unable to procure certain of such materials, it could have a material adverse effect upon its results. At March 31, 2015 and December 31, 2014, 21% and 22%, respectively, of the Company’s accounts payable balances were concentrated in a single supplier. For the three months ended March 31, 2015, this and three other suppliers accounted for 78% of the inventory purchases.

StockBased_Compensation

Stock-Based Compensation	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	NOTE 8 — Stock-Based Compensation
	The Company recognizes the compensation cost in the financial statements for all stock-based awards to employees, including grants of employee stock options, based on the fair value of the awards as of the date that the awards are issued. The fair values of stock options are generally determined using a binomial lattice valuation model which incorporates assumptions about expected volatility, risk-free interest rate, dividend yield, and expected life. Compensation cost for stock-based awards is recognized on a straight-line basis over the vesting period. Total stock-based compensation expense for the three months ended March 31, 2015 and 2014, was $46,568 and $52,246, respectively. In the three months ended March 31, 2015, 201,200 stock options were granted at a weighted average per share fair value estimated at $1.61.

Net_Income_Loss_Per_Share_Appl

Net Income (Loss) Per Share Applicable to Common Stockholders	3 Months Ended
	Mar. 31, 2015
Net loss per share:
Net Income (Loss) Per Share Applicable to Common Stockholders	NOTE 9 — Net Income (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 March 31,
		2015			2014
	Numerator:
	Net loss	$	(71,560	)	$	(71,424	)
	Denominator:
	Weighted average common shares outstanding used in computing net loss per share:
	Basic and Diluted		5,513,588			4,897,896
	Net loss per share:
	Basic and Diluted	$	(0.01	)	$	(0.01	)
	For the three months ended March 31, 2015, the diluted net loss per share is equal to the basic net loss per share because the Company experienced losses in this period. 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 2,914,321 shares of common stock at March 31, 2015, have been omitted from the net loss per share calculation.

Income_Taxes

Income Taxes	3 Months Ended
	Mar. 31, 2015
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 10 — Income Taxes
	Income tax expense during the three months ended March 31, 2015 and 2014, and the deferred income tax amounts shown on the Company’s 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 in each of the three month periods ended March 31, 2015 and 2014.
	At December 31, 2014, the Company has an unrecognized tax benefit of approximately $730,000, which did not change significantly during the three months ended March 31, 2015. 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_Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	NOTE 11 — Commitments and Contingencies
	Operating Lease
	The Company leases office space under a non-cancelable operating lease which provides the Company approximately 37,100 square feet in Newark, California. Rental expense was $107,098 and $107,065, for the three month periods ended March 31, 2015 and 2014, respectively. The Company recorded a deferred rent obligation in accrued liabilities in the amount of $270,298 and $263,476 at March 31, 2015 and December 31, 2014, respectively.
	Future minimum lease payments under the operating lease at March 31, 2015, are as shown below:
	Annual minimum payments:	Amount
	2015 (April 1, 2015 to December 31, 2015)	$	296,869
	2016		408,986
	2017		425,345
	2018		442,359
	2019 to 2022		1,689,777
	Total minimum payments	$	3,263,336
	Capital Lease Obligations
	The Company leases certain of its equipment under capital leases. The leases are collateralized by the underlying assets. At March 31, 2015 and December 31, 2014, property and equipment with a cost of $87,945 were subject to such financing arrangements. Related accumulated amortization at March 31, 2015 and December 31, 2014, amounted to $56,793 and $50,729, respectively.
	Future minimum payments under capital lease and equipment financing arrangements as of March 31, 2015, are as follows:
	Annual minimum payments:	Amount
	2015 (April 1, 2015 to December 31, 2015)	$	20,648
	2016		12,449
	Total minimum payments		33,097
	Less amount representing interest		(1,945	)
	Present value of net minimum payments		31,152
	Short term portion of capital leases		(25,680	)
	Long term portion of capital leases	$	5,472
	Purchase Commitments
	As of March 31, 2015, the Company has non-cancelable purchase commitments for inventory to be used in the ordinary course of business of approximately $1,853,000.
	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. We are currently not a party to any material legal proceedings.

Subsequent_Events

Subsequent Events	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
Subsequent Events	NOTE 12 — Subsequent Events
	On April 1, 2015, 10,000 stock options at a price of $2.07 per share were granted from the 2004 Plan subsequent to March 31, 2015.

Summary_of_Significant_Account1

Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Use of Estimates	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	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 March 31, 2015 and December 31, 2014, 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
	Mar. 31, 2015
Inventory Disclosure [Abstract]
Inventory components	Inventories consist principally of raw materials and sub-assemblies, which are stated at the lower of cost (first-in, first-out) or market.
		March 31,		December 31,
		2015		2014
	Raw materials and sub-assemblies	$	787,818	$	930,886
	Finished goods		20,059		26,441
		$	807,877	$	957,327

Segment_Information_and_Concen1

Segment Information and Concentrations (Tables)	3 Months Ended
	Mar. 31, 2015
Segment Reporting [Abstract]
Revenue by geographic areas	Revenues for the geographic areas were as follows:
		Three Months Ended March 31,
	Revenues:	2015			2014
	United States	$	2,833,945		$	2,682,077
	Europe		683,163			745,070
	Asia and rest of world		488,636			368,192
	Total revenues	$	4,005,744		$	3,795,339
Major customers accounted for at least 10% of total revenues	Customers who accounted for at least 10% of the Company’s total revenues in the three month periods ended March 31, 2015 and 2014 were as follows:
		Three Months Ended March 31,
		2015			2014
	Ingram Micro Inc.		25	%		33	%
	BlueStar, Inc.		21	%		15	%
	Scansource, Inc.		19	%		13	%
Major customers as a percentage of net accounts receivable balances	Customers who accounted for at least 10% of the Company’s accounts receivable balances at March 31, 2015 and December 31, 2014 were as follows:
		March 31,			December 31,
		2015			2014
	Company A		25	%		42	%
	Company B		24	%		25	%
	Company C		22	%		14	%

Net_Income_Loss_Per_Share_Appl1

Net Income (Loss) Per Share Applicable to Common Stockholders (Tables)	3 Months Ended
	Mar. 31, 2015
Net loss per share:
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 March 31,
		2015			2014
	Numerator:
	Net loss	$	(71,560	)	$	(71,424	)
	Denominator:
	Weighted average common shares outstanding used in computing net loss per share:
	Basic and Diluted		5,513,588			4,897,896
	Net loss per share:
	Basic and Diluted	$	(0.01	)	$	(0.01	)

Commitments_and_Contingencies_

Commitments and Contingencies (Tables)	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Future minimum payments for operating leases	Future minimum lease payments under the operating lease at March 31, 2015, are as shown below:
	Annual minimum payments:	Amount
	2015 (April 1, 2015 to December 31, 2015)	$	296,869
	2016		408,986
	2017		425,345
	2018		442,359
	2019 to 2022		1,689,777
	Total minimum payments	$	3,263,336
Future minimum payments under capital lease and equipment financing arrangements	Future minimum payments under capital lease and equipment financing arrangements as of March 31, 2015, are as follows:
	Annual minimum payments:	Amount
	2015 (April 1, 2015 to December 31, 2015)	$	20,648
	2016		12,449
	Total minimum payments		33,097
	Less amount representing interest		(1,945	)
	Present value of net minimum payments		31,152
	Short term portion of capital leases		(25,680	)
	Long term portion of capital leases	$	5,472

Liquidity_and_Going_Concern_De

Liquidity and Going Concern (Details Narrative) (USD $)	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Disclosure Text Block [Abstract]
Accumulated deficit	$60,762,117
Cash balance	743,232	632,631	670,346
Total unused borrowing capacity	258,000
Current ratio (current assets divided by current liabilities)	0.55
Working capital deficit	$2,695,909

Inventory_Components_Details

Inventory Components (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials and sub-assemblies	$787,818	$930,886
Finished goods	20,059	26,441
Total	$807,877	$957,327

Related_Party_Convertible_Note1

Related Party Convertible Notes Payable (Details Narrative) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Related Party Convertible Notes Payable Details Narrative
Short term related party convertible notes payable	$380,696		$380,696
Long term related party convertible notes payable	371,929		371,929
Conversion price if warrants issued on November 19, 2010 (warrants expire May 20, 2016) are outstanding	$2.44		$2.44
Conversion price if warrants issued on November 19, 2010 (warrants expire May 20, 2016) are not outstanding	$1.25		$1.25
Redemption of short term related party convertible notes payable			25,000
Annual interest rate on short term convertible notes payable, compounded quarterly	8.00%		8.00%
Annual interest rate on long term convertible notes payable, compounded quarterly	18.00%		18.00%
Related party convertible notes payable maturity date			4-Sep-17
Accrued interest on short term related party convertible notes payable	50,520		42,179
Accrued interest on long term related party convertible notes payable	118,752		97,900
Interest expense on short term related party convertible notes payable	8,342	8,200
Interest expense on long term related party convertible notes payable	$20,853	$17,486

Related_Party_and_Other_Short_

Related Party and Other Short Term Notes Payable (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Aggregate principal amount of notes	$1,000,000
Related party and other short term notes payable	600,000		600,000
Interest expense for notes payable	74,670	135,944
Related party and other short term notes payable
Subordinated line of credit initiation date	31-Jan-13
Annual interest rate payable monthly	18.00%	18.00%
Maturity date	1-Jun-16
Interest expense for notes payable	26,630	83,571
Notes payable to Chairman
Aggregate principal amount of notes	550,000
Related party and other short term notes payable	450,000		450,000
Notes payable to CEO
Related party and other short term notes payable	$50,000		$50,000

Bank_Financing_Arrangements_De

Bank Financing Arrangements (Details Narrative) (USD $)	0 Months Ended	3 Months Ended
	Mar. 07, 2014	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Line of credit initiation date		27-Feb-14
Aggregate maximum advance amount		$2,500,000
Borrowing capacity description		Advances against the domestic and international lines are calculated at 70% of qualified receivables.
Debt reference rate	0.0475	Bank's Prime Rate
Minimum interest rate on debt (as a percent)		3.25%
Basis point added to reference rate of debt		1.50%
Monthly collateral handling fee		0.20%
Effective rate on cash advances		7.15%
Amount outstanding		815,981		815,981
Interest expense		74,670	135,944
Domestic Line of Credit
Aggregate maximum advance amount		1,500,000
Amount outstanding		815,981
Amount of accounts receivable provided as collateral		1,160,000
Interest expense		14,568	24,119
Accrued interest		3,981		3,981
Line of credit expiration date		27-Feb-17
Foreign Line of Credit
Aggregate maximum advance amount		$1,000,000
Line of credit expiration date		27-Feb-16

Revenue_by_Geographic_Areas_De

Revenue by Geographic Areas (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues:	$4,005,744	$3,795,339
United States
Revenues:	2,833,945	2,682,077
Europe
Revenues:	683,163	745,070
Asia and rest of world
Revenues:	$488,636	$368,192

Major_Customers_Accounted_for_

Major Customers Accounted for at Least 10% of Total Revenues (Details)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Ingram Micro Inc.
Percent of total revenues	25.00%	33.00%
Threshold percentage for disclosure	10.00%	10.00%
BlueStar, Inc.
Percent of total revenues	21.00%	15.00%
Threshold percentage for disclosure	10.00%	10.00%
Scansource, Inc.
Percent of total revenues	19.00%	13.00%
Threshold percentage for disclosure	10.00%	10.00%

Major_Customers_as_a_Percentag

Major Customers as a Percentage of Net Accounts Receivable Balances (Details)	Mar. 31, 2015	Dec. 31, 2014
Company A
Percent of net accounts receivable balances	25.00%	42.00%
Threshold percentage for disclosure	10.00%	10.00%
Company B
Percent of net accounts receivable balances	24.00%	25.00%
Threshold percentage for disclosure	10.00%	10.00%
Company C
Percent of net accounts receivable balances	22.00%	14.00%
Threshold percentage for disclosure	10.00%	10.00%

Concentration_of_Suppliers_Det

Concentration of Suppliers (Details Narrative)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Segment Reporting [Abstract]
Accounts payable balances with a single supplier	21.00%	22.00%
Percentage of inventory purchases from top three suppliers	78.00%

StockBased_Compensation_Detail

Stock-Based Compensation (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expenses	$46,568	$52,246
Stock options granted	201,200
Weighted average grant price	$1.61

Net_Income_Loss_Per_Share_Appl2

Net Income (Loss) Per Share Applicable to Common Stockholders (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Numerator:
Net loss	($71,560)	($71,424)
Denominator: Weighted average common shares outstanding used in computing net income (loss) per share:
Basic and Diluted	5,513,588	4,897,896
Net loss per share:
Basic and Diluted	($0.01)	($0.01)

Net_Income_Loss_Per_Share_Appl3

Net Income (Loss) Per Share Applicable to Common Stockholders (Details Narrative)	Mar. 31, 2015
Net loss per share:
Common shares issuable for options, warrants and convertible notes omitted from the loss per share calculation	2,914,321

Taxes_Details_Narrative

Taxes (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Deferred tax expense	$7,985	$7,985
Unrecognized tax benefit			$730,000

Commitments_and_Contingencies_1

Commitments and Contingencies (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Rental expense for operating lease	$107,098	$107,065
Deferred rent	270,928		263,476
Capital lease obligations	87,945		87,945
Capital lease accumulated amortization	56,793		50,729
Non-cancelable purchase commitments for inventory	$1,853,000

Future_Minimum_Payments_For_Op

Future Minimum Payments For Operating Leases (Details) (USD $)	Mar. 31, 2015
Annual minimum payments:
2015 (April 1, 2015 to December 31, 2015)	$296,869
2016	408,986
2017	425,345
2018	442,359
2019 to 2022	1,689,777
Total minimum payments	$3,263,336

Future_Minimum_Payments_Under_

Future Minimum Payments Under Capital Lease And Equipment Financing Arrangements (Details) (USD $)	Mar. 31, 2015
Annual minimum payments:
2015 (April 1, 2015 to December 31, 2015)	$20,648
2016	12,449
Total minimum payments	33,097
Less amount representing interest	-1,945
Present value of net minimum payments	31,152
Short term portion of capital leases	-25,680
Long term portion of capital leases	$5,472

Subsequent_Events_Details_Narr

Subsequent Events (Details Narrative)	4 Months Ended
	11-May-15
Subsequent Events [Abstract]
Subsequent events	On April 1, 2015, 10,000 stock options at a price of $2.07 per share were granted from the 2004 Plan subsequent to March 31, 2015.