Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 14, 2013 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'Immudyne, Inc. | ' |
Entity Central Index Key | '0000948320 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'IMMD | ' |
Entity Common Stock, Shares Outstanding | ' | 29,409,973 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2013 | ' |
Balance_Sheet
Balance Sheet (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
ASSETS | ' | ' |
Cash | $46,652 | $98,930 |
Trade accounts receivable | 11,311 | 49,690 |
Inventory | 120,045 | 63,378 |
Total Current Assets | 178,008 | 211,998 |
Furnishings and equipment | 114,966 | 157,697 |
Total Assets | 292,974 | 369,695 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable and accrued expenses | 207,283 | 187,096 |
Advance payable | 10,200 | 0 |
Total Current Liabilities | 217,483 | 187,096 |
Deferred tax liability | 34,700 | 47,600 |
Total Liabilities | 252,183 | 234,696 |
Stockholders' equity | ' | ' |
Common stock, $0.01 par value; 50,000,000 shares authorized, 29,409,973 shares issued and outstanding at September 30, 2013 | 294,099 | 289,099 |
Additional paid-in capital | 7,738,999 | 7,641,499 |
Accumulated (deficit) | -7,992,307 | -7,795,599 |
Total Stockholders' Equity | 40,791 | 134,999 |
Total Liabilities and Stockholders' Equity | $292,974 | $369,695 |
Balance_Sheet_Parenthetical
Balance Sheet [Parenthetical] (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 29,409,973 | 29,409,973 |
Common stock, shares outstanding | 29,409,973 | 29,409,973 |
Statement_of_Operations
Statement of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Sales | $94,676 | $152,115 | $647,837 | $558,218 |
Cost of sales | 17,475 | 53,854 | 124,181 | 190,778 |
Gross Profit | 77,201 | 98,261 | 523,656 | 367,440 |
Compensation and related expenses | -102,166 | -104,668 | -380,154 | -329,641 |
Professional fees | -20,129 | -71,827 | -104,157 | -175,344 |
General and administrative expenses | -123,572 | -85,406 | -298,953 | -277,630 |
Operating (Loss) | -168,666 | -163,641 | -259,608 | -415,175 |
License Fee | 25,000 | 0 | 50,000 | 25,000 |
Other income | 0 | 0 | 0 | 6,161 |
Interest (expense) | 0 | 0 | 0 | -3,371 |
Net (Loss) Before Taxes | -143,666 | -163,641 | -209,608 | -387,385 |
Deferred income tax benefit | 4,300 | 4,300 | 12,900 | 12,900 |
Net (Loss) | ($139,366) | ($159,341) | ($196,708) | ($374,485) |
Basic and diluted (loss) per share (in dollars per share) | $0 | ($0.01) | ($0.01) | ($0.01) |
Average number of common shares outstanding (in shares) | 29,410,000 | 28,890,500 | 29,194.50 | 27,061,000 |
Statement_of_Stockholders_Equi
Statement of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
Balance at Dec. 31, 2012 | $134,999 | $289,099 | $7,641,499 | ($7,795,599) |
Balance (in shares) at Dec. 31, 2012 | ' | 28,909,973 | ' | ' |
Stock options exercised | 50,000 | 5,000 | 45,000 | 0 |
Stock options exercised (in shares) | ' | 500,000 | ' | ' |
Amortization of stock options | 52,500 | 0 | 52,500 | 0 |
Net (loss) | -196,708 | 0 | 0 | -196,708 |
Balance at Sep. 30, 2013 | $40,791 | $294,099 | $7,738,999 | ($7,992,307) |
Balance (in shares) at Sep. 30, 2013 | ' | 29,409,973 | ' | ' |
Statement_of_Cash_Flows
Statement of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net (Loss) | ($196,708) | ($374,485) |
Adjustments to reconcile net (loss) to net cash (used) by operating activities | ' | ' |
Depreciation | 42,731 | 42,444 |
Deferred tax benefit | -12,900 | -12,900 |
Stock compensation expense | 52,500 | 71,500 |
Common stock issued for services | 0 | 119,000 |
Changes in Assets And Liabilities | ' | ' |
Trade accounts receivable | 38,379 | -42,944 |
Inventory | -56,667 | 21,856 |
Accounts payable and accrued expenses | 20,187 | 10,056 |
Net cash (used) by operating activities | -112,478 | -165,473 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Exercise of stock options | 50,000 | 0 |
Issuance of common stock | 0 | 345,883 |
Notes and advance payable | 10,200 | -50,729 |
Net cash provided by financing activities | 60,200 | 295,154 |
Net (decrease) increase in cash | -52,278 | 129,681 |
Cash at beginning of the period | 98,930 | 33,502 |
Cash at end of the period | 46,652 | 163,183 |
Supplemental Schedule of Non-Cash Investing and Financing Activities | ' | ' |
Cash paid during the period for interest | 0 | 3,371 |
Notes payable and other payables used to exercise options and warrants | $0 | $311,443 |
Organization_and_Going_Concern
Organization and Going Concern | 9 Months Ended | |
Sep. 30, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' | |
1 | Organization and Going Concern | |
Immudyne, Inc. (the “Company”) is a Delaware corporation established to develop, manufacture and sell natural immune support products. The Company has developed a proprietary approach to produce what it believes, based on testing and analysis conducted on its behalf, to be superior particulate and soluble beta glucans derived from yeast. The Company’s core nutraceutical and cosmetic product lines consist of yeast beta glucans in oral and topical applications to support the immune system. The Company concentrates its sales and marketing efforts on healthcare professionals, distributors for its all-natural raw material ingredient products and direct-to-consumer sales. | ||
The accompanying financial statements have been prepared on the basis that the Company will continue as a going concern, which assumes the realization of assets and the satisfaction of liabilities in the normal course of business. At September 30, 2013, the Company has an accumulated deficit approximating $8,000,000 and has incurred negative cash flows from operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty. | ||
Based on the Company's cash balance at September 30, 2013 and projected cash needs for the remainder of 2013, management estimates that it will need to raise additional capital to cover operating and capital requirements for the 2013 and 2014 years. Management plans on raising the additional needed funds through increased sales volume, issuing additional shares of common stock or other equity securities, or obtaining debt financing. Although management has been successful to date in raising necessary funding, there can be no assurance that required future financing can be successfully completed on a timely basis, or on terms acceptable to the Company. | ||
The Company has funded operations in the past through the sales of its products, issuance of common stock and through loans and advances from officers and directors. The Company’s continued operations are dependent upon obtaining an increase in its sales volume and the continued financial support from officers and directors or the issuance of additional shares of common stock. | ||
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Significant Accounting Policies [Text Block] | ' | |||||||
2 | Summary of Significant Accounting Policies | |||||||
Unaudited Financial Statements | ||||||||
The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for financial information and with the instructions to Form 10-Q. They do not include all the information and footnotes required by United States generally accepted accounting principles for complete financial statements. The unaudited financial statements should be read in conjunction with those financial statements included in the Company’s previously filed Form 10-K for the year ended December 31, 2012. In the opinion of Management, all adjustments considered necessary for a fair presentation, consisting solely of normal recurring adjustments, have been made. Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | ||||||||
Basis of Presentation and Use of Estimates | ||||||||
The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include the valuation of accounts receivable, inventory, and stockholders’ equity based transactions. Actual results could differ from those estimates. | ||||||||
Reclassification | ||||||||
Certain amounts in the prior periods have been reclassified to conform to the current period presentation. | ||||||||
Inventory | ||||||||
Inventory is valued at the lower of cost or market with cost determined on a first-in, first-out (“FIFO”) basis. Management compares the cost of inventory with the net realizable value and an allowance is made for writing down inventory to market value, if lower. Inventory consists of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 17,125 | $ | 12,800 | ||||
Work in process | 33,949 | - | ||||||
Finished products | 68,971 | 50,578 | ||||||
$ | 120,045 | $ | 63,378 | |||||
Revenue Recognition | ||||||||
The Company’s policy is to record revenue as earned when a firm commitment, indicating sales quantity and price exists, delivery has taken place and collectability is reasonably assured. The Company generally records sales once the product is shipped to the customer. If applicable, provisions for discounts, returns, allowances, customer rebates and other adjustments are netted with gross sales. The Company accounts for such provisions during the same period in which the related revenues are earned. Customer discounts, returns and rebates have not been significant. | ||||||||
Delivery is considered to have occurred when title and risk of loss have transferred to the customer. Sales to international distributors are recognized in the same manner. If title does not pass until the product reaches the customer’s delivery site, then recognition of revenue is deferred until that time. There are no formal sales incentives offered to any of the Company’s customers. Volume discounts may be offered from time to time to customers purchasing large quantities on a per transaction basis. There are no special post shipment obligations or acceptance provisions that exist with any sales arrangements | ||||||||
Income Taxes | ||||||||
The Company records current and deferred taxes in accordance with Accounting Standards Codification (ASC) 740, “Accounting for Income Taxes.” This ASC requires recognition of deferred tax assets and liabilities for temporary differences between tax basis of assets and liabilities and the amounts at which they are carried in the financial statements, based upon the enacted rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. The Company periodically assesses the value of its deferred tax asset, a majority of which has been generated by a history of net operating losses and determines the necessity for a valuation allowance. | ||||||||
ASC 740 also provides a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken in a tax return. Using this guidance, a company may recognize the tax benefit from an uncertain tax position in its financial statements only if it is more likely-than-not (i.e., a likelihood of more than 50%) that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. | ||||||||
The Company’s tax returns for all years since December 31, 2010, remain open to most taxing authorities. | ||||||||
Stock-Based Compensation | ||||||||
The Company follows the provisions of ASC 718, “Share-Based Payment”. Under this guidance compensation cost generally is recognized at fair value on the date of the grant and amortized over the respective vesting periods. The fair value of options at the date of grant is estimated using the Black-Scholes option pricing model. The expected option life is derived from assumed exercise rates based upon historical exercise patterns and represents the period of time that options granted are expected to be outstanding. The expected volatility is based upon historical volatility of the Company’s shares using weekly price observations over an observation period that approximates the expected life of the options. The risk-free rate approximates the U.S. Treasury yield curve rate in effect at the time of grant for periods similar to the expected option life. The estimated forfeiture rate included in the option valuation was zero. | ||||||||
Many of the assumptions require significant judgment and any changes could have a material impact in the determination of stock-based compensation expense. | ||||||||
Earnings (Loss) Per Share | ||||||||
Basic earnings (loss) per common share is based on the weighted average number of shares outstanding during each period presented. Warrants and options to purchase common stock are included as common stock equivalents only when dilutive. Potential common stock equivalents are excluded from dilutive earnings per share when the effects would be antidilutive. | ||||||||
Common stock equivalents comprising 13,197,720 and 13,692,720 shares underlying options and warrants at September 30, 2013 and 2012, respectively, have not been included in the loss per share calculation as the effects are anti-dilutive. | ||||||||
Recent Accounting Pronouncements | ||||||||
Accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. | ||||||||
Fair Value of Financial Instruments | ||||||||
The carrying value of the Company’s financial instruments, including cash, trade accounts receivable, accounts payable and accrued expenses and advance payable approximate fair value for all periods. | ||||||||
Concentration of Credit Risk | ||||||||
The Company grants credit in the normal course of business to its customers. The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk. | ||||||||
The Company monitors its positions with, and the credit quality of, the financial institutions with which it invests. The Company, at times, maintains balances in various operating accounts in excess of federally insured limits. | ||||||||
One customer accounted for 73% and 76% of sales for each of the three month periods ended September 30, 2013 and 2012, respectively. This customer accounted for 80% and 77% of sales for each of the nine month periods ended September 30, 2013 and 2012, respectively. At September 30, 2013 and December 31, 2012, this customer accounted for 3% and 32% of accounts receivable, respectively. | ||||||||
A second customer accounted for 0% and 12% of sales for each of the three month periods ended September 30, 2013 and 2012, respectively. This customer accounted for 8% and 10% of sales for each of the nine month periods ended September 30, 2013 and 2012, respectively. At September 30, 2013 and December 31, 2012, this customer accounted for 0% and 57% of accounts receivable, respectively. | ||||||||
Income_Taxes
Income Taxes | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Income Tax Disclosure [Text Block] | ' | ||||
3 | Income Taxes | ||||
The Company incurred a loss for the three and nine month periods ended September 30, 2013 and 2012 and accordingly, no provision for federal income tax has been made in the accompanying financial statements. At December 31, 2012, the Company had available net operating loss carryforwards of approximately $2,556,000, expiring during various years through 2032. | |||||
A summary of the deferred tax asset using an approximate 34% tax rate is as follows: | |||||
December 31, | |||||
2012 | |||||
Net operating loss | $ | 870,000 | |||
Valuation allowance | -870,000 | ||||
Total | $ | - | |||
The net operating loss carryforwards could be subject to limitation in any given year in the event of a change in ownership as defined by IRC Section 382. | |||||
The deferred tax liability of $34,700 and $47,600 at September 30, 2013 and December 31, 2012, respectively, results from the difference in the carrying amount of furnishings and equipment between financial reporting and income tax reporting. | |||||
The deferred tax benefit included in the statement of operations represents the change in the deferred tax liability at each balance sheet date. | |||||
The difference between the statutory and the effective tax rate is primarily due to a change in valuation allowance on deferred taxes, as the Company has fully reserved the deferred tax asset resulting from available net operating loss carryforwards. | |||||
Stockholders_Equity
Stockholders' Equity | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Stockholders' Equity Note [Abstract] | ' | ||||||
Stockholders' Equity Note Disclosure [Text Block] | ' | ||||||
4 | Stockholders’ Equity | ||||||
Service-Based Stock Options | |||||||
A summary of the outstanding service-based options issued by the Company to various employees and consultants is as follows: | |||||||
Balance at December 31, 2012 | 9,955,000 | ||||||
Granted | 250,000 | ||||||
Exercised | -500,000 | ||||||
Expired | -145,000 | ||||||
Balance at September 30, 2013 | 9,560,000 | ||||||
Stock based compensation expense amounted to $0 and $23,000 for the three months ended September 30, 2013 and 2012, respectively. Stock based compensation expense amounted to $52,500 and $71,500 for the nine months ended September 30, 2013 and 2012, respectively. Such amounts are included in compensation and related expenses in the accompanying statement of operations | |||||||
In February 2013 the Company issued 250,000 options to a consultant (see note 7). The fair market value of these options amounted to $15,000 which was amortized over three months from February 1, 2013 to April 30, 2013. The fair value of the options was computed using the following Black Scholes model attributes: fair value of the stock at issue date - $0.16, expected life - 5 years, volatility - 50% and risk free interest rate - 2% | |||||||
Options exercisable at September 30, 2013 amounted to 9,460,000. All outstanding options have a cashless exercise provision, and certain options provide for accelerated vesting provisions and modifications, as defined, if the Company is sold or acquired. The intrinsic value of options outstanding and exercisable at September 30, 2013 amounted to $467,600. The intrinsic value of options exercised during the nine month period ended September 30, 2013 amounted to $100,000. | |||||||
The following is a summary of outstanding service-based options at September 30, 2013: | |||||||
Exercise Price | Number of | Weighted | |||||
Options | Average | ||||||
Remaining | |||||||
Contractual | |||||||
Life | |||||||
$0.10 | $ | 1,000,000 | 5 years | ||||
$0.13 - $0.20 | 7,560,000 | 9 years | |||||
$0.40 | 1,000,000 | 9 years | |||||
Total | $ | 9,560,000 | |||||
The remaining unearned compensation on unvested service-based options at September 30, 2013 amounted to $7,000 which will be amortized over the next nine months. | |||||||
Performance-Based Stock Options | |||||||
As of September 30, 2013 the Company had granted performance-based options to purchase 6,875,000 shares of common stock at exercise prices ranging from $0.40 to $5.00. The options expire at various dates between 2021 and 2023 and are exercisable upon the Company achieving annual sales revenue ranging from $5,000,000 and $100,000,000. The fair value of these performance-based options aggregated $298,000 and will be expensed over the implicit service period commencing once management believes the performance criteria will be met. Accordingly, at September 30, 2013, the unearned compensation for performance based options is $298,000. | |||||||
Warrants | |||||||
Warrants outstanding and exercisable amounted to 3,637,720 at September 30, 2013. The weighted average exercise price of warrants outstanding at September 30, 2013 is $0.28. The warrants expire between 2013 and 2015. | |||||||
Royalties
Royalties | 9 Months Ended | |
Sep. 30, 2013 | ||
Royalties Disclosure [Abstract] | ' | |
Royalties Disclosure [Text Block] | ' | |
5 | Royalties | |
The Company is subject to a royalty agreement based upon sales of certain skin care products. The agreement requires the Company to pay a royalty based upon 8% of such sales, up to $227,175. Royalty expense approximated $5,000 and $10,000 for the three month periods ended September 30, 2013 and 2012, respectively. Royalty expense approximated $40,000 and $35,000 for the nine month periods ended September 30, 2013 and 2012, respectively. The remaining commitment at September 30, 2013, is approximately $75,000. The Company’s President has a 60% interest in the royalties. | ||
At September 30, 2013 and December 31, 2012, included in accounts payable and accrued expenses was $114,000 and $96,000, respectively, in regards to this agreement. | ||
In addition, in June 2013 the Company entered into a royalty agreement with a consultant which provided for a fee of 2% of sales as defined. At September 30, 2013 no amounts have been earned under this agreement. | ||
Advance_payable
Advance payable | 9 Months Ended | |
Sep. 30, 2013 | ||
Advance payable Disclosure [Abstract] | ' | |
Advance payable [Text Block] | ' | |
6 | Advance payable | |
During the three months ended September 30, 2013 a director advanced the Company $10,200 to be used to fund the purchase of common stock. | ||
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
7 | Commitments and Contingencies | ||||
Leases | |||||
The Company leases a plant in Kentucky under an operating lease which expires May 31, 2016. Future minimum base rental payments required under the lease are as follows: | |||||
Year ending December 31 | |||||
2013 (3 months) | $ | 10,240 | |||
2014 | 41,675 | ||||
2015 | 42,187 | ||||
2016 | 17,578 | ||||
Total | $ | 111,680 | |||
Rent expense for the three month periods ended September 30, 2013 and 2012, was $16,619 and $9,146, respectively. Rent expense for the nine month periods ended September 30, 2013 and 2012, was $35,179 and $40,577, respectively. | |||||
Employment and Consulting Agreements | |||||
During 2013 the Company entered into a consulting agreement, effective February 1, 2013 with an unrelated third party. Under the terms of the agreement, the consultant receives $15,000 per month, and an option to purchase 250,000 shares of common stock at $0.20 per share, which vested on May 1, 2013, and expires 2023. In addition, the consultant received options to purchase 375,000 shares of common stock at $0.40 and $375,000 options at $0.80, contingent on the Company’s revenue exceeding $5,000,000 and $10,000,000, as defined. In June 2013, the Company entered into an employment agreement with this individual and issued additional options which allow the employee to purchase an aggregate of 1,500,000 shares at exercise prices ranging from $1.50 to $5.00, contingent upon the Company’s revenue exceeding $20,000,000, $50,000,000 and $100,000,000 as defined. | |||||
The Company has entered into various other agreements with officers, directors, employees and consultants that expire in one to ten years. The Company President’s annual base salary of $120,000 was amended to $145,000 effective October 12, 2012. Annual compensation agreements for other officers, directors, employees and consultants range from $5,000 per month to amounts to $17,500 per month. In addition, the agreements provide for bonus compensation to these individuals aggregating 16.5 percent of the Company’s pretax income. | |||||
Legal Matters | |||||
In the normal course of business operations the Company may become involved in various legal matters. At September 30, 2013, the Company’s management does not believe that there are any potential legal matters that could have an adverse effect on the Company’s financial position. | |||||
In November 2009, the Company entered into a settlement agreement to resolve all aspects of litigation relating to a patent suit. As part of that settlement agreement, the Company received $440,000 as reimbursement for litigation costs. The Company also was awarded $200,000 in eight installments of $25,000 every six months beginning on January 15, 2011, in return for an exclusive patent license. The term of the license agreement is consistent with the term of the $25,000 semiannual payments. The $25,000 installments are being recorded as revenue only upon receipt of the funds. As of September 30, 2013, $50,000 remained to be paid to the Company under this agreement. | |||||
Subsequent_Events
Subsequent Events | 9 Months Ended | |
Sep. 30, 2013 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
8 | Subsequent Events | |
The Company has evaluated subsequent events through the date these financial statements were issued and has determined that there are no subsequent events or transactions requiring recognition or disclosure in the financial statements. | ||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Basis Of Presentation and Use Of Estimates Policy [Policy Text Block] | ' | |||||||
Basis of Presentation and Use of Estimates | ||||||||
The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Some of the more significant estimates required to be made by management include the valuation of accounts receivable, inventory, and stockholders’ equity based transactions. Actual results could differ from those estimates. | ||||||||
Reclassification, Policy [Policy Text Block] | ' | |||||||
Reclassification | ||||||||
Certain amounts in the prior periods have been reclassified to conform to the current period presentation. | ||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||
Inventory | ||||||||
Inventory is valued at the lower of cost or market with cost determined on a first-in, first-out (“FIFO”) basis. Management compares the cost of inventory with the net realizable value and an allowance is made for writing down inventory to market value, if lower. Inventory consists of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 17,125 | $ | 12,800 | ||||
Work in process | 33,949 | - | ||||||
Finished products | 68,971 | 50,578 | ||||||
$ | 120,045 | $ | 63,378 | |||||
Revenue Recognition, Policy [Policy Text Block] | ' | |||||||
Revenue Recognition | ||||||||
The Company’s policy is to record revenue as earned when a firm commitment, indicating sales quantity and price exists, delivery has taken place and collectability is reasonably assured. The Company generally records sales once the product is shipped to the customer. If applicable, provisions for discounts, returns, allowances, customer rebates and other adjustments are netted with gross sales. The Company accounts for such provisions during the same period in which the related revenues are earned. Customer discounts, returns and rebates have not been significant. | ||||||||
Delivery is considered to have occurred when title and risk of loss have transferred to the customer. Sales to international distributors are recognized in the same manner. If title does not pass until the product reaches the customer’s delivery site, then recognition of revenue is deferred until that time. There are no formal sales incentives offered to any of the Company’s customers. Volume discounts may be offered from time to time to customers purchasing large quantities on a per transaction basis. There are no special post shipment obligations or acceptance provisions that exist with any sales arrangements | ||||||||
Income Tax, Policy [Policy Text Block] | ' | |||||||
Income Taxes | ||||||||
The Company records current and deferred taxes in accordance with Accounting Standards Codification (ASC) 740, “Accounting for Income Taxes.” This ASC requires recognition of deferred tax assets and liabilities for temporary differences between tax basis of assets and liabilities and the amounts at which they are carried in the financial statements, based upon the enacted rates in effect for the year in which the differences are expected to reverse. The Company establishes a valuation allowance when necessary to reduce deferred tax assets to the amount expected to be realized. The Company periodically assesses the value of its deferred tax asset, a majority of which has been generated by a history of net operating losses and determines the necessity for a valuation allowance. | ||||||||
ASC 740 also provides a recognition threshold and measurement attribute for the financial statement recognition of a tax position taken or expected to be taken in a tax return. Using this guidance, a company may recognize the tax benefit from an uncertain tax position in its financial statements only if it is more likely-than-not (i.e., a likelihood of more than 50%) that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. | ||||||||
The Company’s tax returns for all years since December 31, 2010, remain open to most taxing authorities. | ||||||||
Compensation Related Costs, Policy [Policy Text Block] | ' | |||||||
Stock-Based Compensation | ||||||||
The Company follows the provisions of ASC 718, “Share-Based Payment”. Under this guidance compensation cost generally is recognized at fair value on the date of the grant and amortized over the respective vesting periods. The fair value of options at the date of grant is estimated using the Black-Scholes option pricing model. The expected option life is derived from assumed exercise rates based upon historical exercise patterns and represents the period of time that options granted are expected to be outstanding. The expected volatility is based upon historical volatility of the Company’s shares using weekly price observations over an observation period that approximates the expected life of the options. The risk-free rate approximates the U.S. Treasury yield curve rate in effect at the time of grant for periods similar to the expected option life. The estimated forfeiture rate included in the option valuation was zero. | ||||||||
Many of the assumptions require significant judgment and any changes could have a material impact in the determination of stock-based compensation expense. | ||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||
Earnings (Loss) Per Share | ||||||||
Basic earnings (loss) per common share is based on the weighted average number of shares outstanding during each period presented. Warrants and options to purchase common stock are included as common stock equivalents only when dilutive. Potential common stock equivalents are excluded from dilutive earnings per share when the effects would be antidilutive. | ||||||||
Common stock equivalents comprising 13,197,720 and 13,692,720 shares underlying options and warrants at September 30, 2013 and 2012, respectively, have not been included in the loss per share calculation as the effects are anti-dilutive. | ||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||
Recent Accounting Pronouncements | ||||||||
Accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption. | ||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |||||||
Fair Value of Financial Instruments | ||||||||
The carrying value of the Company’s financial instruments, including cash, trade accounts receivable, accounts payable and accrued expenses and advance payable approximate fair value for all periods. | ||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | |||||||
Concentration of Credit Risk | ||||||||
The Company grants credit in the normal course of business to its customers. The Company periodically performs credit analysis and monitors the financial condition of its customers to reduce credit risk. | ||||||||
The Company monitors its positions with, and the credit quality of, the financial institutions with which it invests. The Company, at times, maintains balances in various operating accounts in excess of federally insured limits. | ||||||||
One customer accounted for 73% and 76% of sales for each of the three month periods ended September 30, 2013 and 2012, respectively. This customer accounted for 80% and 77% of sales for each of the nine month periods ended September 30, 2013 and 2012, respectively. At September 30, 2013 and December 31, 2012, this customer accounted for 3% and 32% of accounts receivable, respectively. | ||||||||
A second customer accounted for 0% and 12% of sales for each of the three month periods ended September 30, 2013 and 2012, respectively. This customer accounted for 8% and 10% of sales for each of the nine month periods ended September 30, 2013 and 2012, respectively. At September 30, 2013 and December 31, 2012, this customer accounted for 0% and 57% of accounts receivable, respectively. | ||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 9 Months Ended | |||||||
Sep. 30, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Schedule of Inventory, Current [Table Text Block] | ' | |||||||
Inventory consists of the following: | ||||||||
September 30, | December 31, | |||||||
2013 | 2012 | |||||||
Raw materials | $ | 17,125 | $ | 12,800 | ||||
Work in process | 33,949 | - | ||||||
Finished products | 68,971 | 50,578 | ||||||
$ | 120,045 | $ | 63,378 | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||
A summary of the deferred tax asset using an approximate 34% tax rate is as follows: | |||||
December 31, | |||||
2012 | |||||
Net operating loss | $ | 870,000 | |||
Valuation allowance | -870,000 | ||||
Total | $ | - | |||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 9 Months Ended | ||||||
Sep. 30, 2013 | |||||||
Stockholders' Equity Note [Abstract] | ' | ||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||
A summary of the outstanding service-based options issued by the Company to various employees and consultants is as follows: | |||||||
Balance at December 31, 2012 | 9,955,000 | ||||||
Granted | 250,000 | ||||||
Exercised | -500,000 | ||||||
Expired | -145,000 | ||||||
Balance at September 30, 2013 | 9,560,000 | ||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||
The following is a summary of outstanding service-based options at September 30, 2013: | |||||||
Exercise Price | Number of | Weighted | |||||
Options | Average | ||||||
Remaining | |||||||
Contractual | |||||||
Life | |||||||
$0.10 | $ | 1,000,000 | 5 years | ||||
$0.13 - $0.20 | 7,560,000 | 9 years | |||||
$0.40 | 1,000,000 | 9 years | |||||
Total | $ | 9,560,000 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Future minimum base rental payments required under the lease are as follows: | |||||
Year ending December 31 | |||||
2013 (3 months) | $ | 10,240 | |||
2014 | 41,675 | ||||
2015 | 42,187 | ||||
2016 | 17,578 | ||||
Total | $ | 111,680 | |||
Organization_and_Going_Concern1
Organization and Going Concern (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Retained Earnings (Accumulated Deficit) | ($7,992,307) | ($7,795,599) |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Raw materials | $17,125 | $12,800 |
Work in process | 33,949 | 0 |
Finished products | 68,971 | 50,578 |
Inventory | $120,045 | $63,378 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details Textual) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | |
Sales Revenue, Services, Net [Member] | Sales Revenue, Services, Net [Member] | Sales Revenue, Services, Net [Member] | Sales Revenue, Services, Net [Member] | Sales Revenue, Services, Net [Member] | Sales Revenue, Services, Net [Member] | Sales Revenue, Services, Net [Member] | Sales Revenue, Services, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | Warrant [Member] | Equity Option [Member] | |
One Customer [Member] | One Customer [Member] | One Customer [Member] | One Customer [Member] | Second Customer [Member] | Second Customer [Member] | Second Customer [Member] | Second Customer [Member] | One Customer [Member] | One Customer [Member] | Second Customer [Member] | Second Customer [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,692,720 | 13,197,720 |
Concentration Risk, Percentage | 73.00% | 76.00% | 80.00% | 77.00% | 0.00% | 12.00% | 8.00% | 10.00% | ' | ' | ' | ' | ' | ' |
Concentration Risk Percentage Of Accounts Receivable | ' | ' | ' | ' | ' | ' | ' | ' | 3.00% | 32.00% | 0.00% | 57.00% | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2012 |
Net operating loss | $870,000 |
Valuation allowance | -870,000 |
Total | $0 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2012 | |
Operating Loss Carryforwards | ' | $2,556,000 |
Operating Loss Carryforwards, Expiration Period | 'expiring during various years through 2032. | ' |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate | 34.00% | ' |
Deferred Tax Liabilities, Property, Plant and Equipment | $34,700 | $47,600 |
Stockholders_Equity_Details
Stockholders' Equity (Details) | 1 Months Ended | 9 Months Ended |
Feb. 28, 2013 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Balance at December 31, 2012 | ' | 9,955,000 |
Granted | 250,000 | 250,000 |
Expired | ' | -145,000 |
Balance at September 30, 2013 | ' | 9,560,000 |
Common Stock [Member] | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Exercised | ' | 500,000 |
Stockholders_Equity_Details_1
Stockholders' Equity (Details 1) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Stock Option One [Member] | Stock Option Two [Member] | Stock Option Two [Member] | Stock Option Two [Member] | Stock Option Three [Member] | |||
Minimum [Member] | Maximum [Member] | ||||||
Exercise Price | ' | ' | $0.10 | ' | $0.13 | $0.20 | $0.40 |
Number of Options | 9,560,000 | 9,955,000 | 1,000,000 | 7,560,000 | ' | ' | 1,000,000 |
Weighted Average Remaining Contractual Life | ' | ' | '5 years | '9 years | ' | ' | '9 years |
Stockholders_Equity_Details_Te
Stockholders' Equity (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 28, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Granted | 250,000 | ' | ' | 250,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | ' | 9,460,000 | ' | 9,460,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $15,000 | $467,600 | ' | $467,600 | ' |
Stock Issued During Period Performance Based Options To Purchase Common Stock | ' | 6,875,000 | ' | 6,875,000 | ' |
Stock Options Expiration Description | ' | ' | ' | 'options expire at various dates between 2021 and 2023 | ' |
Fair Value Of Performance Based Stock Options | ' | 298,000 | ' | 298,000 | ' |
Unearned Share Based Compensation | ' | 298,000 | ' | 298,000 | ' |
Warrants Outstanding | ' | 3,637,720 | ' | 3,637,720 | ' |
Share Based Compensation Arrangement By Share Based Payment Award Warrants Exercisable Weighted Average Exercise Price | ' | $0.28 | ' | $0.28 | ' |
Warrant Expiration Description | ' | ' | ' | 'The warrants expire between 2013 and 2015 | ' |
Share-based Compensation, Total | ' | 0 | 23,000 | 52,500 | 71,500 |
Fair Value Assumptions, Exercise Price | ' | $0.16 | ' | $0.16 | ' |
Fair Value Assumptions, Expected Term | ' | ' | ' | '5 years | ' |
Fair Value Assumptions, Expected Volatility Rate | ' | ' | ' | 50.00% | ' |
Fair Value Assumptions, Risk Free Interest Rate | ' | ' | ' | 2.00% | ' |
Fair Value Assumptions, Expected Term, Simplified Method | ' | ' | ' | 'was amortized over three months from February 1, 2013 to April 30, 2013 | ' |
Unearned compensation on unvested service-based options | ' | 7,000 | ' | 7,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | ' | ' | ' | 100,000 | ' |
Minimum [Member] | ' | ' | ' | ' | ' |
Common Stock Exercise Price | ' | $0.40 | ' | $0.40 | ' |
Annual Sales Revenue Target | ' | ' | ' | 5,000,000 | ' |
Maximum [Member] | ' | ' | ' | ' | ' |
Common Stock Exercise Price | ' | $5 | ' | $5 | ' |
Annual Sales Revenue Target | ' | ' | ' | $10,000,000 | ' |
Royalties_Details_Textual
Royalties (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Percentage Of Royalty Based Upon Sales | ' | ' | 8.00% | ' | ' |
Royalty Based Upon Sales Amount | ' | ' | $227,175 | ' | ' |
Royalty Expense | 5,000 | 10,000 | 40,000 | 35,000 | ' |
Royalty Commitment | 75,000 | ' | 75,000 | ' | ' |
Accounts payable and accrued expenses | 207,283 | ' | 207,283 | ' | 187,096 |
Royalty Agreements [Member] | ' | ' | ' | ' | ' |
Accounts payable and accrued expenses | $114,000 | ' | $114,000 | ' | $96,000 |
Concentration Risk, Percentage | ' | ' | 2.00% | ' | ' |
President [Member] | ' | ' | ' | ' | ' |
Interest in Royalty | ' | ' | 60.00% | ' | ' |
Advance_payable_Details_Textua
Advance payable (Details Textual) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Advance Payable [Line Items] | ' | ' |
Due to Related Parties, Current | $10,200 | $0 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Sep. 30, 2013 |
Operating Leased Assets [Line Items] | ' |
2013 (3 months) | $10,240 |
2014 | 41,675 |
2015 | 42,187 |
2016 | 17,578 |
Total | $111,680 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Details Textual) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | |||||||||||||
Feb. 28, 2013 | Nov. 30, 2009 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Feb. 28, 2013 | Feb. 01, 2013 | Feb. 28, 2013 | Feb. 01, 2013 | Feb. 28, 2013 | Feb. 01, 2013 | |
Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Range one [Member] | Range two [Member] | Range three [Member] | Stock Option One [Member] | Stock Option One [Member] | Stock Option Two [Member] | Stock Option Two [Member] | Stock Option Three [Member] | Stock Option Three [Member] | |||||||
President [Member] | President [Member] | ||||||||||||||||||
Lease Expiration Date | ' | ' | ' | ' | 31-May-16 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | $16,619 | $9,146 | $35,179 | $40,577 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consultant Expense | 15,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Issued During Period, Shares, Issued for Services | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | 375,000 | ' | 375,000 | ' |
Common Stock Exercise Price | ' | ' | ' | ' | ' | ' | $0.40 | ' | $5 | ' | ' | ' | ' | ' | $0.20 | ' | $0.40 | ' | $0.80 |
Annual Sales Revenue Target | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | 10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Salaries, Wages and Officers Compensation | ' | ' | ' | ' | ' | ' | ' | 120,000 | ' | 145,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Officers Compensation | ' | ' | ' | ' | ' | ' | 5,000 | ' | 17,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage Of Bonus Compensation For Pretax Income | ' | ' | ' | ' | 16.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds From Litigation Settlement | ' | 440,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation Amount In Installments | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number Of Installments | ' | ' | ' | ' | 'eight | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Installments Paid For Every Six Months | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation Semiannual Payments | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue Installments On Receipt Of Funds | ' | ' | ' | ' | 25,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Litigation Costs Receivable | ' | ' | 50,000 | ' | 50,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Additional Shares Authorized | ' | ' | ' | ' | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum Limit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $20,000,000 | $50,000,000 | $100,000,000 | ' | ' | ' | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Exercise Price Of Number Of Additional Shares Authorized | ' | ' | ' | ' | ' | ' | $1.50 | ' | $5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |