Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 27, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | BIO KEY INTERNATIONAL INC | ||
Entity Central Index Key | 1,019,034 | ||
Trading Symbol | bkyi | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 9,493,174 | ||
Entity Public Float | $ 15.3 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 288,721 | $ 1,061,307 |
Accounts receivable, net | 2,875,946 | 1,563,246 |
Due from factor | 109,865 | 53,638 |
Inventory | 946,847 | 465,428 |
Resalable software license rights | 2,640,000 | 1,560,000 |
Prepaid expenses and other | 152,654 | 206,677 |
Total current assets | 7,014,033 | 4,910,296 |
Resalable software license rights, net of current portion | 7,933,808 | 10,598,411 |
Accounts receivable, net of current portion | 760,000 | 1,570,000 |
Equipment and leasehold improvements, net | 181,165 | 67,814 |
Deposits and other assets | 8,712 | 8,712 |
Intangible assets, net | 181,104 | 134,132 |
Total non-current assets | 9,064,789 | 12,379,069 |
TOTAL ASSETS | 16,078,822 | 17,289,365 |
LIABILITIES | ||
Accounts payable | 499,230 | 466,842 |
Accrued liabilities | 688,023 | 335,323 |
Dividends payable on preferred stock | 630,408 | 401,250 |
Deferred revenue | 507,866 | 633,062 |
Total current liabilities | 2,325,527 | 1,836,477 |
TOTAL LIABILITIES | 2,325,527 | 1,836,477 |
Commitments and Contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Common stock — authorized, 170,000,000 shares; issued and outstanding; 7,691,324 and 6,093,843 of $.0001 par value at December 31, 2017 and December 31, 2016, respectively | 769 | 609 |
Additional paid-in capital | 80,829,001 | 78,253,413 |
Accumulated deficit | (67,076,492) | (62,801,154) |
TOTAL STOCKHOLDERS’ EQUITY | 13,753,295 | 15,452,888 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 16,078,822 | 17,289,365 |
Series A-1 Convertible Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock | 6 | 9 |
TOTAL STOCKHOLDERS’ EQUITY | 6 | 9 |
Series B-1 Convertible Preferred Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Preferred stock | 11 | 11 |
TOTAL STOCKHOLDERS’ EQUITY | $ 11 | $ 11 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Preferred stock, shares authorized (in shares) | 5,000,000 | |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 7,691,324 | 6,093,843 |
Common stock, shares outstanding (in shares) | 7,691,324 | 6,093,843 |
Series A-1 Convertible Preferred Stock [Member] | ||
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Preferred stock, liquidation value | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 62,596 | 90,000 |
Preferred stock, shares outstanding (in shares) | 62,596 | 90,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Series B-1 Convertible Preferred Stock [Member] | ||
Preferred stock, shares authorized (in shares) | 105,000 | 105,000 |
Preferred stock, liquidation value | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 105,000 | 105,000 |
Preferred stock, shares outstanding (in shares) | 105,000 | 105,000 |
Preferred stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | ||
Services | $ 1,193,190 | $ 821,178 |
License fees and other | 3,220,371 | 1,189,089 |
Hardware | 1,889,423 | 965,489 |
Total revenues | 6,302,984 | 2,975,756 |
Costs and other expenses | ||
Cost of services | 439,291 | 216,465 |
Cost of license fees and other | 2,802,860 | 513,218 |
Total costs and other expenses | 3,242,151 | 729,683 |
Gross Profit | 3,060,833 | 2,246,073 |
Operating expenses | ||
Selling, general and administrative | 5,676,323 | 4,438,950 |
Research, development and engineering | 1,659,875 | 2,008,942 |
Total operating expenses | 7,336,198 | 6,447,892 |
Operating loss | (4,275,365) | (4,201,819) |
Other income | ||
Interest income | 27 | 30 |
Gain on derivative liabilities | 12,085 | |
Total other income | 27 | 12,115 |
Net loss | (4,275,338) | (4,189,704) |
Convertible preferred stock dividends | (769,158) | (802,500) |
Net loss available to common stockholders | $ (5,044,496) | $ (4,992,204) |
Basic and Diluted Loss per Common Share (in dollars per share) | $ (0.76) | $ (0.89) |
Weighted Average Shares Outstanding: | ||
Basic and Diluted (in shares) | 6,638,382 | 5,587,144 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) | Series A-1 Convertible Preferred Stock [Member] | Series B-1 Convertible Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance as of December 31, 2015 (in shares) at Dec. 31, 2015 | 90,000 | 105,000 | 5,508,261 | |||
Balance as of December 31, 2015 at Dec. 31, 2015 | $ 9 | $ 11 | $ 551 | $ 76,760,796 | $ (58,611,450) | $ 18,149,917 |
Issuance of common stock for directors’ fees and CEO stock award (in shares) | 27,248 | |||||
Issuance of common stock for directors’ fees and CEO stock award | $ 2 | 61,998 | 62,000 | |||
Issuance of common stock pursuant to securities purchase agreement (in shares) | 516,667 | |||||
Issuance of common stock pursuant to securities purchase agreement | $ 52 | 1,859,948 | 1,860,000 | |||
Dividends declared on preferred stock | (802,500) | (802,500) | ||||
Issuance of stock for consultants (in shares) | 41,667 | |||||
Issuance of stock for consultants | $ 4 | 104,996 | 105,000 | |||
Stock issuance costs | (84,866) | (84,866) | ||||
Reclassification of derivative liability | 92,199 | 92,199 | ||||
Share-based compensation | 260,842 | 260,842 | ||||
Net loss | (4,189,704) | (4,189,704) | ||||
Balance as of December 31, 2016 (in shares) at Dec. 31, 2016 | 90,000 | 105,000 | 6,093,843 | |||
Balance as of December 31, 2016 at Dec. 31, 2016 | $ 9 | $ 11 | $ 609 | 78,253,413 | (62,801,154) | 15,452,888 |
Issuance of common stock for directors’ fees (in shares) | 27,248 | |||||
Issuance of common stock for directors’ fees | $ 2 | 61,998 | $ 62,000 | |||
Exercise of stock options (in shares) | 0 | |||||
Issuance of common stock for directors’ fees and CEO stock award (in shares) | 11,244 | 1,610 | ||||
Issuance of common stock for directors’ fees and CEO stock award | $ 1 | 32,029 | $ 32,030 | |||
Issuance of common stock pursuant to securities purchase agreement (in shares) | 555,556 | |||||
Issuance of common stock pursuant to securities purchase agreement | $ 56 | 1,999,944 | 2,000,000 | |||
Dividends declared on preferred stock | (769,158) | (769,158) | ||||
Issuance of stock for consultants (in shares) | 117,849 | |||||
Issuance of stock for consultants | $ 12 | 354,573 | 354,585 | |||
Stock issuance costs | (80,366) | (80,366) | ||||
Share-based compensation | 498,654 | 498,654 | ||||
Net loss | (4,275,338) | (4,275,338) | ||||
Balance as of December 31, 2016 (in shares) at Dec. 31, 2017 | 62,596 | 105,000 | 7,691,324 | |||
Balance as of December 31, 2016 at Dec. 31, 2017 | $ 6 | $ 11 | $ 769 | 80,829,001 | $ (67,076,492) | $ 13,753,295 |
Issuance of common stock for directors’ fees (in shares) | 11,244 | 1,610 | ||||
Issuance of common stock for directors’ fees | $ 1 | 32,029 | $ 32,030 | |||
Conversion of dividends payable on A-1 preferred stock (in shares) | 150,000 | |||||
Conversion of dividends payable on A-1 preferred stock | $ 15 | 539,985 | $ 540,000 | |||
Conversion of A-1 preferred stock to common stock (in shares) | (27,404) | 761,222 | ||||
Conversion of A-1 preferred stock to common stock | $ (3) | $ 76 | $ (73) | |||
Exercise of stock options (in shares) | 1,610 | 4,167 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net loss | $ (4,275,338) | $ (4,189,704) |
Adjustments to reconcile net loss to cash used for operating activities: | ||
Provision for losses on accounts receivable | 500,000 | 500,000 |
Depreciation | 52,709 | 49,038 |
Amortization of Intangible assets | 13,726 | 13,606 |
Amortization of Software license rights | 1,510,051 | 21,589 |
Share and warrant-based compensation for employees and consultants | 940,734 | 260,842 |
Gain on derivative liabilities | (12,085) | |
Stock based fees to Directors and consultants | 32,030 | 167,000 |
Change in assets and liabilities: | ||
Accounts receivable | (1,002,700) | (241,841) |
Due from factor | (56,227) | (16,217) |
Inventory | (481,419) | (296,783) |
Software license rights | 74,552 | |
Prepaid expenses and other | (33,472) | (109,474) |
Accounts payable | 32,388 | (691,713) |
Accrued liabilities | 352,700 | (157,745) |
Deferred revenue | (125,196) | 256,657 |
Net cash used for operating activities | (2,465,462) | (4,446,830) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Patents | (60,698) | |
Capital expenditures | (166,060) | (52,975) |
Net cash used for investing activities | (226,758) | (52,975) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Preferred dividends paid | (535,100) | |
Proceeds from issuances of common stock | 2,000,000 | 1,860,000 |
Stock issuance costs | (80,366) | (84,866) |
Net cash provided by financing activities | 1,919,634 | 1,240,034 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (772,586) | (3,259,771) |
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 1,061,307 | 4,321,078 |
CASH AND CASH EQUIVALENTS, END OF YEAR | 288,721 | 1,061,307 |
Cash paid for: | ||
Interest | ||
Noncash investing and financing activities: | ||
Accrual of unpaid preferred dividends | 630,408 | 401,250 |
Conversion of Dividends Payable, Amount Converted | 540,000 | |
Conversion of A-1 preferred stock to common stock | 2,740,400 | |
Reclassification of derivative liability to additional paid-in capital | 92,199 | |
Issuance of common stock as a commitment fee for the Equity facility | 198,000 | |
Issuance of common stock as consulting services for the Equity facility | $ 244,084 |
Note A - The Company and Summar
Note A - The Company and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | NOTE A —THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Company, founded in 1993, The Company was a pioneer in developing automated, finger identification technology that supplements or compliments other methods of identification and verification, such as personal inspection identification, passwords, tokens, smart cards, ID cards, PKI, credit card, passports, driver’s licenses, OTP or other form of possession or knowledge-based credentialing. Additionally, advanced BIO-key® technology has been, and is, used to improve both the accuracy and speed of competing finger-based biometrics. Basis of Presentation The Company has incurred significant losses to date, and at December 31, 2017, $67.1 December 31, 2017, $289,000, $1,061,000 December 31, 2016. As discussed below, the Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. The Company currently requires approximately $592,000 If the Company is unable to generate sufficient revenue to meet our goals, it will need to obtain additional third No not The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company ’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not Effective December 29, 2016, 1 12 Summary of Significant Accounting Policies A summary of the significant accounting policies consistently applied in the preparation of the accompanying consolidated financial statements follows: 1. Basis of Consolidation The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. 2. Use of Estimates Our consolidated financial statements are prepared in accordance with GAAP as set forth in the Financial Accounting Standards Board ’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. The Company believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates, judgments or assumptions and actual results, its consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not not 3. Revenue Recognition Revenues from software licensing are recognized in accordance with ASC 985 605, The Company intends to enter into arrangements with end users for items which may include software license fees, and services or various combinations thereof. For each arrangement, revenues will be recognized when evidence of an agreement has been documented, the fees are fixed or determinable, collection of fees is probable, delivery of the product has occurred and no Multiple-Element Arrangements: For multiple-element arrangements, the Company applies the residual method in accordance with ASC 985 605. vendor-specific objective evidence ("VSOE") of fair value and subsequently recognized as the service is delivered. The difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as revenue related to the delivered elements, which is generally the software license. VSOE of fair value for all elements in an arrangement is based upon the normal pricing for those products and services when sold separately. VSOE of fair value for support services is additionally determined by the renewal rate in customer contracts. The Company has established VSOE of fair value for support as well as consulting services. License Revenues: Amounts allocated to license revenues are recognized at the time of delivery of the software and all other revenue recognition criteria discussed above have been met. Revenue from licensing software, which requires significant customization and modification, is recognized using the percentage of completion method, based on the hours of effort incurred by the Company in relation to the total estimated hours to complete. In instances where third a significant portion of a customer’s contract, the Company recognizes revenue for the element of software customization by the percentage of completion method described above. Otherwise, third may Service Revenues: Revenues from services are comprised of maintenance and consulting and implementation services. Maintenance revenues include providing for unspecified when-and-if available product updates and customer telephone support services, and are recognized ratably over the term of the service period. Consulting services are generally sold on a time-and-materials basis and include a range of services including installation of software and assisting in the design of interfaces to allow the software to operate in customized environments. Services are generally separable from other elements under the arrangement since performance of the services are not The Company provides customers, free of charge or at a minimal cost, testing kits which potential licensing customers may use to test compatibility/acceptance of the Company’s technology with the customer’s intended applications. Costs and other expenses: Includes professional compensation and other direct contract expenses, as well as costs attributable to the support of client service professional staff, depreciation and amortization costs related to assets used in revenue-generating activities, and other costs attributable to serving the Company ’s client base. Professional compensation consists of payroll costs and related benefits including stock-based compensation and bonuses. Other direct contract expenses include costs directly attributable to client engagements, such as out-of-pocket costs including travel and subsistence for client service professional staff, costs of hardware and software and costs of subcontractors. The allocation of lease and facilities charges for occupied offices is included in costs of service. The Company accounts for its warranties under the FASB ASC 450, one not ’s policy is to accrue anticipated warranty costs based upon historical percentages of items returned for repair within one not third not 4. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three At December 31, 2017 2016, 5. Accounts Receivable Accounts receivable are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer ’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible. During the quarter ended September 30, 2016, may not December 31, 2017 $1,000,000, 57% December 31, 2017 2016 December 31, 201 7 201 6 Accounts receivable - current $ 2,889,731 $ 1,577,031 Accounts receivable - non current 1,760,000 2,070,000 4,649,731 3,647,031 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (500,000 ) (1,013,785 ) (513,785 ) Accounts receivable, net of allowances for doubtful accounts $ 3,635,946 $ 3,133,246 The allowance for doubtful accounts for the years ended December 31, 201 7 2016 Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 7 Allowance for Doubtful Accounts $ 513,785 $ 500,000 $ - $ 1,013,785 Year Ended December 31, 201 6 Allowance for Doubtful Accounts $ 13,785 $ 500,000 $ - $ 513,785 The bad debt expense is recorded in selling, general, and administrative expense. 6. Software License Rights Software license rights acquired for re-sale to end users are recorded as assets when purchased and are stated at the lower of cost or estimated net realizable value. The cost of the software license rights has been initially allocated pro-rata to the maximum number of resalable end-user licenses in the rights contract. Licenses are amortized to cost of sales over the greater of the following: 1 10 2 ten 3 twelve The rights are also evaluated by management on a periodic basis to determine if estimated future net revenues, on a per sub-license basis, support the recorded basis of each license. If the estimated net revenues are less than the current carrying value of the capitalized software license rights, the Company will reduce the rights to their net realizable value. 7. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization Equipment and leasehold improvements are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: Years Equipment and leasehold improvements Equipment (years) 3 - 5 Furniture and fixtures (years) 3 - 5 Software (years) 3 Leasehold improvements life or lease term Intangible assets consist of patents. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. 8. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not may The Company did not 9. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 201 7 2016 $386,000 $299,000, 10. Deferred Revenue Deferred revenue includes customer advances and amounts that have been billed per the contractual terms but have not 12 11. Research and Development Expenditures Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. 12. Earnings Per Share of Common Stock (“EPS”) The Company ’s EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the conversion of preferred stock, exercise of stock options and warrants, when the effect of their inclusion is dilutive. See Note R - Earnings Per Share “EPS” for additional information. 13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, — Stock Compensation,” which requires measurement of compensation cost for all stock awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. The majority of its share-based compensation arrangements vest over either a three four not may The following table presents share-based compensation expenses included in the Company ’s consolidated statements of operations: Year ended December 31, 2017 2016 Selling, general and administrative $ 864,036 $ 353,056 Research, development and engineering 108,728 74,786 $ 972,764 $ 427,842 Valuation Assumptions for Stock Options For 201 7 2016, 1,234,167 27,087 Year ended December 31, 2017 2016 Weighted average Risk free interest rate 1.92 % 1.11 % Expected life of options (in years) 4.51 4.50 Expected dividends 0 % 0 % Weighted average Volatility of stock price 138 % 93 % The stock volatility for each grant is determined based on the review of the experience of the weighted average of historical daily price changes of the Company ’s common stock over the expected option term. The expected term was determined using the simplified method for estimating expected option life, which qualify as “plain-vanilla” options; and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. 14. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may The Company early-adopted the new provisions issued July 2017, 2017 11, 260 480 815 2017 11, not no 15 . Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not not 740 10, may ’s historical performance and estimated future taxable income, a full valuation allowance has been established. The Company accounts for uncertain tax provisions in accordance with ASC 740 10 05, ’s financial statements. The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. 1 6. Recent Accounting Pronouncements In May 2014 , FASB issued ASU No. 2014 09, 606 ASC 606” ), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard contains a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods and services. The FASB has issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The Company will adopt ASC 606 January 1, 2018 modified retrospective transition method. While the Company is finalizing the impact this standard has on its consolidated financial statements and related disclosures, the Company expects the new standard will not not 606 In July 2015, No. 2015 11, 330 2015 11" 2015 11 2015 11 December 15, 2016, 2015 11 not ’s consolidated financial statements. In February 2016, 2016 02, 12 December 15, 2018, for amounts yet to be determined. In August 2014, No. 2014 15, 2014 15, not one 2014 15 December 15, 2016, 2014 15 as of January 1, 2017. In March 2016, 2016 09, – Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (“ASU 2016 09” 2016 09 2016 09 December 15, 2016. not In July 2017, 2017 11, 260 480 815 of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Under ASU 2017 11, not no 480, not December 15, 2018, 2017 11, 2017 not Management does not not 1 7. Reclassifications occurred to certain prior year amounts in order to conform to the current year classifications. The reclassifications have no |
Note B - Factoring
Note B - Factoring | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Factoring [Text Block] | NOTE B —FACTORING Due from factor consisted of the following as of December 31: Original Invoice Value Factored Amount Factored Balance due Year Ended December 31, 2017 Factored accounts receivable $ 423,349 $ 313,484 $ 109,865 Year Ended December 31, 2016 Factored accounts receivable $ 214,556 $ 160,918 $ 53,638 As of December 2011, 24 October 31, 201 8. $150,000 35% 75% 2.75% 15% Years Ended December 31, 2017 2016 Factoring fees $ 224,142 $ 341,023 |
Note C - Fair Values of Financi
Note C - Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | NOTE C —FAIR VALUES OF FINANCIAL INSTRUMENTS Cash and cash equivalents, accounts receivable, inventory, due from factor, accounts payable and accrued liabilities are carried at, or approximate, fair value because of their short-term nature. |
Note D - Concentration of Risk
Note D - Concentration of Risk | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | NOTE D —CONCENTRATION OF RISK Financial instruments which potentially subject the Company to risk primarily consist of cash and accounts receivables. The Company maintains its cash and cash equivalents with various financial institutions, which, at times may exposure to the Company is solely dependent upon daily bank balances and the respective strength of the financial institutions. The Company has not December 31, 2017 2016, $0 $811,000, The Company extends credit to customers on an unsecured basis in the normal course of business. The Company ’s policy is to perform an analysis of the recoverability of its receivables at the end of each reporting period and to establish allowances where appropriate. The Company analyzes historical bad debts and contract losses, customer concentrations, and customer credit-worthiness when evaluating the adequacy of the allowances. The Company had certain customers whose revenue individually represented 10% ’s total revenue, as follows: Years Ended December 31, 201 7 201 6 Customer A 54 % 34 % Customer B * 12 % * Less than 10% The Company had certain customers whose accounts receivable balances individually represented 10% ’s total accounts receivable, as follows: As of December 31, 201 7 201 6 Customer A 55 % 35 % Customer B 37 % 56 % Customer B’s receivable of $1,760,000 thirty December 31, 2017. $1,000,000 57% |
Note E - Inventory
Note E - Inventory | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE E —INVENTORY Inventory is stated at the lower of cost, determined on a first first realizable value, and consists primarily of fabricated assemblies and finished goods. Inventory is comprised of the following as of December 31: 2017 2016 Current Finished goods 487,858 381,762 Fabricated assemblies 458,989 83,666 Total current inventory $ 946,847 $ 465,428 |
Note F - Resalable Software Lic
Note F - Resalable Software Licenses Rights | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | NOTE F — RESALABLE SOFTWARE LICENSES RIGHTS On November 11, 2015, products, and grant sub-licenses of the licensed technology to end users. The license rights have been granted to the Company in perpetuity, with a stated number of end-user resale sub-licenses allowed under the contract for a total of $12,000,000. 12 $2,640,000 The Company has determined the software license rights to be a finite lived intangible asset, and estimated that the software license rights shall be economically used over a 10 fourth 2015, not January 2017. first 2017. The remaining license rights are to be amortized over the greater of the following: 1 2 ten 3 A total of $1,556,687 $1,909 2017 2016 $1,558,596 $10,441,404 December 31, 2017. 2017 three On December 31, 2015, third $180,000 in anticipation of a large pending deployment that has yet to materialize. The Company is amortizing the total cost over the same methodology described above with the greatest of the three $35,916 $19,680 2017 2016 $47,596 $132,404 December 31, 2017. 2017, $8,000 third 2017 2016 Current software license rights $ 2,640,000 $ 1,560,000 Non-current software license rights 7,933,808 10,598,411 Total software license rights $ 10,573,808 $ 12,158,411 During the year ended December 31, 201 7, no may not not not December 31, 2017 2016. Estimated amortization expense based on economic use of the software license rights for each of the next five Years ending December 31 2018 2,640,000 2019 3,000,000 2020 2,400,000 2021 1,200,000 2022 720,000 Thereafter 613,808 |
Note G - Equipment and Leasehol
Note G - Equipment and Leasehold Improvements | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE G —EQUIPMENT AND LEASEHOLD IMPROVEMENTS Equipment and leasehold improvements consisted of the following as of December 31: 2017 2016 Equipment $ 567,473 $ 403,425 Furniture and fixtures 164,079 162,067 Software 32,045 32,045 Leasehold improvements 23,403 23,403 787,000 620,940 Less accumulated depreciation and amortization (605,835 ) (553,126 ) Total $ 181,165 $ 67,814 Depreciation was $52,709 $49,038 2017 2016, |
Note H - Intangible Assets
Note H - Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Intangible Assets Disclosure [Text Block] | NOTE H —INTANGIBLE ASSETS Intangible assets consisted of the following as of December 31: 2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and patents pending $ 347,946 $ (166,842 ) $ 181,104 $ 287,248 $ (153,116 ) $ 134,132 Total $ 347,946 $ (166,842 ) $ 181,104 $ 287,248 $ (153,116 ) $ 134,132 Aggregate amortization expense for 2017 2016 $13,726 $13,606, December 31, 2017 $14,000 2018 2022, $111,000 |
Note I - Accrued Liabilities
Note I - Accrued Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE I —ACCRUED LIABILITIES Accrued liabilities consisted of the following as of December 31: 201 7 201 6 Compensation $ 341,884 $ 66,152 Compensated absences 164,132 154,368 Accrued legal and accounting fees 85,633 79,633 Sales tax payable 5,614 26,988 Factoring fees 32,357 3,600 Other 58,403 4,582 Total $ 688,023 $ 335,323 |
Note J - Related Party
Note J - Related Party | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE J —RELATED PARTY Licensing Agreement with Subsidiaries of China Goldjoy Group Limited. On November 11, 2015 , BIO-key Hong Kong Limited, a subsidiary of the Company, entered into a license purchase agreement with certain subsidiaries of China Goldjoy Group Limited (“CGG”). The license agreement provides for the grant of a perpetual, irrevocable, exclusive, worldwide, fully-paid license to all software and documentation regarding the software code, toolkit, electronic libraries and related technology currently known as or offered under the Finger Q name, together with perpetual license under all related patents held by the licensors and any other intellectual property rights owned by the licensors related to the forgoing software. The Company made a one $12,000,000 October 2016 33.2% Securities Purchase Agreement s with Wong Kwok Fong On November 18, 2016, Wong Kwok Fong, a director, executive officer and principal stockholder of the Company, 516,667 $3.60 $1,860,000. On April 28, 2017, 277,778 $3.60 $1,000,000. On September 22, 2017, 427,778 138,889 purchase price of $1,540,000, $3.60 $1,000,000 277,778 $540,000 1 150,000 On August 7, 2017, 90,000 ’s Series A- 1 1 9.99% 35%. 1 61st October 17, 2017, 27,404 1 $3.60 761,222 |
Note K - Deferred Revenue
Note K - Deferred Revenue | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Deferred Revenue Disclosure [Text Block] | NOTE K —DEFERRED REVENUE Deferred revenue represents unearned revenue on maintenance contracts. Maintenance contracts include provisions for unspecified when-and-if available product updates and customer telephone support services, and are recognized ratably over the term of the service period. At December 31, 2017 2016, $508,000 $633,000, |
Note L - Segment Information
Note L - Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE L —SEGMENT INFORMATION The Company has determined that its continuing operations are one 87% 78% 2017 2016, |
Note M - Commitments and Contin
Note M - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Commitments Disclosure [Text Block] | NOTE M —COMMITMENTS AND CONTINGENCIES Operating Leases The Company does not three 20 20. Future minimum rental commitments of non-cancelable operating leases are approximately as follows: Years ending December 31, 201 8 148,862 2019 45,033 20 20 31,898 $ 225,793 Rental expense was approximately $221,000 $193,000 2017 2016, Litigation From time to time, we may December 31, 2017, no |
Note N - Equity
Note N - Equity | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE N — EQUITY 1. Within the limits and restrictions provided in the Company ’s Certificate of Incorporation, the Board of Directors has the authority, without further action by the shareholders, to issue up to 5,000,000 $.0001 one December 31, 2017, 100,000 1 62,596 105,000 1 Series A- 1 On October 22 29, 2015, 84,500 1 $100.00 $8,450,000. November 11, 2015, 5,500 1 $100.00 $550,000. 1 1 $3.60 ’s capital stock, and subject to a “blocker provision” which prohibits conversion if such conversion would result in the holder being the beneficial owner of in excess of 9.99% 61 1 August 7, 2017. 1 6% April 1, July, 1, October 1, January 1 October 1, 2017, ten 10 January 1, 2018, The holders of the Series A- 1 one 1 ’s stockholders. Upon any liquidation or dissolution of the Company, any merger or consolidation involving the Company or any subsidiary of the Company in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation do not 1 1 $100.00 1 On September 22, 2017, 1 $540,000 150,000 $3.60. October 17, 2017, t 1 27,404 1 761,222 $3.60 As of December 31, 2017, $2 36,658 1 October 1, 2017 January 1, 2018 As of December 31, 2016, $270,000 1 October 1, 2016 January 1, 2017 The Series A- 1 815 15, 815 40 15, 1 $3.60 December 31, 2017, 1 ten 10 not Series B- 1 On November 11, 2015, 105,000 1 $100.00 $10,500,000. Shares of the Series B- 1 1 $3.60 9.99% 1 2.5% April 1, July, 1, October 1, January 1 1 ten 10 The holders of the Series B- 1 one 1 ’s stockholders. Upon any liquidation or dissolution of the Company, any merger or consolidation involving the Company or any subsidiary of the Company in which the shares of capital stock of the Company outstanding immediately prior to such merger or consolidation do not 1 1 $100.00 1 December 31, 2017, $393,750 1 October 1, 2016, January 1, 2017, April 1, 2017, July 1, 2017, October 1, 2017 January 1, 2018 As of December 31, 2016 $131,250 1 October 1, 2016 January 1, 2017 The Series B- 1 815 15, 815 40 15, 1 $3.60 1 may ten 10 not Stock Issuance Costs Costs of approximately $8 0,000 2017 2. Effective December 29, 2016, 1 12. The number of authorized shares and the par value of the Company's common stock and preferred stock were not Holders of common stock have equal rights to receive dividends when, as and if declared by the Board of Directors, out of funds legally available therefor. Holders of common stock have one not Holders of common stock are entitled, upon liquidation of the Company, to share ratably in the net assets available for distribution, subject to the rights, if any, of holders of any preferred stock then outstanding. Shares of common stock are not no Issuances of Common Stock Pursuant to a Securities Purchase Agreement, dated November 11, 2016, 516,667 shares of common stock for aggregate gross proceeds of $1,860,000. On April 28, 2017, a director, executive officer and principal stockholder of the Company, 277,778 $3.60 $1,000,000. On May 2, 2017, may $5.0 36 As of December 31, 2017, not may $100,000 five $3.83 94% $3.83 19.99% May 2, 2017, 9.99% On September 22, 2017, a director, executive officer and principal stockholder of the Company, 427,778 138,889 $1,540,000, $3.60 $1,000,000 277,778 1 $540,000 150,000 Also on September 22, 2017, 27,404 1 761,222 $3.60 Issuances to Directors, Executive Officers and Consultants On March 15, 2017, 1,895 $5,003. On May 11, 2017, 1,925 shares of common stock to its directors in payment of board fees, valued at $5,005. In May 2017, 55,000 of $198,000. In May 2017, 61,667 $2.54 $156,584. which has been fully amortized as of December 31, 2017. On August 9, 2017, 5,148 $18, 017. On November 13, 2017, 2,276 $4, 005. During the year ended December 31, 2016, 18,914 $45,000, 8,334 $17,000. During the year ended December 31, 2016 , the Company issued 41,667 $2.52 $105,000 Employees ’ exercise options During 2017, 4,167 1,610 no 2016. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may The Company early-adopted the new provisions issued July 2017, 2017 11, 260 480 815 2017 11, not no A) Securities Purchase Agreements dated October 25, 2013 November 8, 2013 Pursuant to a series of Private Investors Securities Purchase Agreements, on October 25, 2013 November 8, 2013, 1,026,972 1,026,972 1,026,972 $3,697,100. $6.00 three 2016. In connection with the share issuances described above, and pursuant to a placement agency letter agreement, the Company paid the placement agent cash commissions equal to 8% 82,158 The cashless exercise features contained in the warrants were considered to be derivatives and the Company recorded warrant liabilities on the consolidated balance sheet. The Company initially recorded the warrant liabilities equal to their estimated fair value of $325,891. December 31, 2016, $7,478. December 31, 2016, $0 fourth 2016. B) Securities Purchase Agreement dated November 13, 2014 Pursuant to a Securities Purchase Agreement, dated November 13, 2014, “November 2014 664,584 996,877 $1,595,000. The common stock had a purchase price reset feature. If at any time prior to the two January 29, 2015), $2.40 no Based on an evaluation as discussed in FASB ASC 815 15, 815 40 15, ’s Own Equity - Scope and Scope Exceptions,” the Company determined that the purchase price reset feature on the common stock issued was not The Company valued the purchase price reset feature using a Monte Carlo simulation at the date of issuance, and at quarterly reporting intervals until the expiration of the feature in January 2017, no 1 1 October November 2015, $3.60, November 2016 April 2017 $3.60. The warrants have a term of five $3.60 February 2015. options, warrants or other securities that are convertible into common stock at a price lower than $3.60 not As a result of the early adoption of ASU 2017 11 no no no C) Securities Purchase Agreement dated September 23, 2015 On September 23, 2015, 69,445 warrants are immediately exercisable at an exercise price of $3.60 five The warrants have customary anti-dilution protections including a "full ratchet" anti-dilution adjustment provision which are triggered in the event the Company sells or $3.60 not As a result of the early adoption of ASU 2017 11 A – Recently Issued Accounting Pronouncements, the “full ratchet” anti-dilution feature is no no no The cashless exercise features contained in the warrants were initially considered to be derivatives and the Company recorded a warrant liability of $92,199 2016, not December 31, 2016 $4,607 3. The Company has issued warrants to certain creditors, investors, investment bankers and consultants. A summary of warrant activity is as follows: Total Warrants Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding, as of January 1, 2016 1,704,628 4.40 3.02 Granted — — Exercised — — Forfeited — — Expired (444,548 ) 6.00 Outstanding, as of December 31, 2016 1,260,080 3.84 2.78 — Granted 138,889 3.60 Exercised — — Forfeited — — Expired — — Outstanding, as of December 31, 2017 1,398,969 3.81 2.06 — Vested or expected to vest at December 31, 2017 1,398,969 3.81 2.06 — Exercisable at December 31, 2017 1,398,969 3.81 2.06 — On September 22, 2017, 138,889 427,778 $3.60 five |
Note O - Stock Options
Note O - Stock Options | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | NOTE O —STOCK OPTIONS 2004 On October 12, 2004, 2004 2004 2004 not not 166,667 may not 85% may not ten 2004 2004 October 2014. 2015 On January 27, 2016, 2015 2015 666,667 may not 100 110% may not ten 2015 may may ’ written agreement. The 2015 December 2025. Non-Plan Stock Options Periodically, the Company has granted options outside of the 2004 2015 Stock Option Activity Information summarizing option activity is as follows: Number of Options Weighted average Weighted average remaining Aggregate 1999 Plan 2004 Plan 2015 Plan Non Plan Total exercise price life (in years) intrinsic value Outstanding, as of December 31, 2015 20,834 85,008 — 259,088 364,930 $ 3.87 Granted — — 27,087 — 27,087 2.74 Exercised — — — — — Forfeited — — (2,084 ) (8,335 ) (10,419 ) 2.16 Expired (20,834 ) (15,628 ) — (3,473 ) (39,935 ) 2.50 Outstanding, as of December 31, 2016 — 69,380 25,003 247,280 341,663 $ 3.99 4.23 $ 53,936 Granted — — 64,167 1,170,000 1,234,167 2.69 Exercised — — — (4,167 ) (4,167 ) 2.16 Forfeited — — (7,084 ) (65,140 ) (72,224 ) 2.62 Expired — (17,084 ) — (4,862 ) (21,946 ) 8.86 Outs tanding, as of December 31, 2017 — 52,296 82,086 1,343,111 1,477,493 $ 2.91 5.64 $ 0 Vested or expec ted to vest at December 31, 2017 1,083,691 $ 2.98 5.43 $ 0 Exercisable at December 31, 2017 261,294 $ 3.96 3.09 $ 0 The options outstanding and exercisable at December 31, 2017 Options Outstanding Options Exercisable Range of exercise prices Number of shares Weighted average exercise price Weighted average remaining life (in years) Number exercisable Weighted average exercise price $ 1.90 - 2.50 87,064 $ 2.16 4.65 56,422 $ 2.16 2.51 - 3.50 1,207,296 2.70 6.15 21,740 3.23 3.51 - 5.04 183,132 4.60 2.77 183,132 4.60 $ 1.90 - 5.04 1,477,493 261,294 The aggregate intrinsic value in the table above represents the total intrinsic value, based on the Company’s closing stock price of $1.77 December 31, 2017, December 31, 2017 0. The weighted average fair value of options granted during the years ended December 31, 2017 2016 $2.32 $1.86 December 31, 2017 2016 $5,667 $0, December 31, 2017 2016 $197,281 $285,430 As of December 31, 2017, $1,634,611 2.19 |
Note P - Income Taxes
Note P - Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | NOTE P —INCOME TAXES There was no provision for federal or state taxes as at December 31, 2017 2016. In December 22, 2017, “ Tax Act” ). The Tax Act significantly impacts the future ongoing U.S. corporate income tax by, among things, lowering the U.S. corporate income tax rates from 34% 21%, 21%. s US deferred tax assets which are offset by a full valuation allowance. The Company has deferred taxes due to income tax credits, net operating loss carryforwards, and the effect of temporary differences between the carrying values of certain assets and liabilities for financial reporting and income tax purposes. Significant components of deferred taxes are as follows at December 31: 2017 2016 Current asset: Accrued compensation $ 118,000 $ 67,000 Accounts receivable allowance 277,000 202,000 Non-current asset (liability): Stock-based compensation 387,000 360,000 Basis differences in fixed assets (18,000 ) (8,000 ) Basis differences in intangible assets 46,000 60,000 Net operating loss and credit carryforwards 12,052,000 18,597,000 Valuation allowances (12,862,000 ) (19,278,000 ) $ — $ — The Company has a valuation allowance against the full amount of its net deferred taxes due to the uncertainty of realization of the deferred tax assets due to operating loss history of the Company. The Company currently provides a valuation allowance against deferred taxes when it is more likely than not not not As of December 31, 2017, $57,064,000 2021 2037. 382 A reconciliation of the effective income tax rate on operations reflected in the Statements of Operations to the US Federal statutory income tax rate is presented below. 2017 2016 Federal statutory income tax rate 34 % 34 % Permanent differences — — Change in tax laws/tax rate (13 ) - Effect of net operating loss (21 ) (34 ) Effective tax rate — % — % The Company has not 201 4 2017 not not December 31, 2017 2016. |
Note Q - Profit Sharing Plan
Note Q - Profit Sharing Plan | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE Q —PROFIT SHARING PLAN The Company has established a savings plan under section 401 one 401 may not may no December 31, 2017 2016. |
Note R - Earnings Per Share (EP
Note R - Earnings Per Share (EPS) | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | NOTE R —EARNINGS PER SHARE (EPS) The Company ’s basic EPS is calculated using net income (loss) available to common shareholders and the weighted-average number of shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuance of common stock, such as stock issuable pursuant to the exercise of stock options and warrants and the assumed conversion of preferred stock. The reconciliation of the numerator of the basic and diluted EPS calculations, due to the inclusion of preferred stock dividends was as follows for the following fiscal years ended December 31: 2017 2016 Basic Numerator: Loss from continuing operations $ (4,275,338 ) $ (4,189,704 ) Convertible preferred stock dividends (769,158 ) (802,500 ) Net loss available to common stockholders (basic and diluted EPS) $ (5,044,496 ) $ (4,992,204 ) The following table summarizes the weighted average securities that were excluded from the diluted per share calculation because the effect of including these potential shares was antidilutive. Years ended December 31, 2017 2016 Preferred stock 5,264,422 5,416,667 Stock options 15,529 17,657 Warrants 2,109 1,018 Potentially dilutive securities 5,282,060 5,435,342 Items excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: Years ended December 31, 2017 2016 Stock options 1,390,428 235,845 Warrants 1,351,052 1,212,163 Total 2,741,480 1,448,008 |
Note S - Subsequent Events
Note S - Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE S —SUBSEQUENT EVENTS On March 23, 2018, ’s Series B- 1 1 60,240 1 1,678,334 On March 23, 2018, 115,857 1 $417,084 1 $3.60. In connection with the forgoing transaction, the Company waived a standstill provision to permit a holder of shares of Series B- 1 19.99% 61 On March 23, 2018, 7,659 On March 23, 2018, 9,000 six The options have a three seven $1.96. On March 23, 2018, 212,918 ’s common stock to certain officers, employees, and contractors. The options have a three seven $1.96. On March 28, 2018, 762 The Company has reviewed subsequent events through the date of this filing. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The Company has incurred significant losses to date, and at December 31, 2017, $67.1 December 31, 2017, $289,000, $1,061,000 December 31, 2016. As discussed below, the Company has financed itself in the past through access to the capital markets by issuing secured and convertible debt securities, convertible preferred stock, common stock, and through factoring receivables. The Company currently requires approximately $592,000 If the Company is unable to generate sufficient revenue to meet our goals, it will need to obtain additional third No not The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which contemplate continuation of the Company as a going concern, and assumes continuity of operations, realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The matters described in the preceding paragraphs raise substantial doubt about the Company ’s ability to continue as a going concern. Recoverability of a major portion of the recorded asset amounts shown in the accompanying balance sheet is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, and become profitable in its future operations. The accompanying consolidated financial statements do not Effective December 29, 2016, 1 12 |
Consolidation, Policy [Policy Text Block] | 1. Basis of Consolidation The accompanying consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiaries (collectively, the “Company”). Intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates, Policy [Policy Text Block] | 2. Use of Estimates Our consolidated financial statements are prepared in accordance with GAAP as set forth in the Financial Accounting Standards Board ’s (FASB) Accounting Standards Codification (ASC) and consider the various staff accounting bulletins and other applicable guidance issued by the U.S. Securities and Exchange Commission (SEC). These accounting principles require us to make certain estimates, judgments and assumptions. The Company believes that the estimates, judgments and assumptions upon which it relies are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. To the extent there are material differences between these estimates, judgments or assumptions and actual results, its consolidated financial statements will be affected. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not not |
Revenue Recognition, Policy [Policy Text Block] | 3. Revenue Recognition Revenues from software licensing are recognized in accordance with ASC 985 605, The Company intends to enter into arrangements with end users for items which may include software license fees, and services or various combinations thereof. For each arrangement, revenues will be recognized when evidence of an agreement has been documented, the fees are fixed or determinable, collection of fees is probable, delivery of the product has occurred and no Multiple-Element Arrangements: For multiple-element arrangements, the Company applies the residual method in accordance with ASC 985 605. vendor-specific objective evidence ("VSOE") of fair value and subsequently recognized as the service is delivered. The difference between the total arrangement fee and the amount deferred for the undelivered elements is recognized as revenue related to the delivered elements, which is generally the software license. VSOE of fair value for all elements in an arrangement is based upon the normal pricing for those products and services when sold separately. VSOE of fair value for support services is additionally determined by the renewal rate in customer contracts. The Company has established VSOE of fair value for support as well as consulting services. License Revenues: Amounts allocated to license revenues are recognized at the time of delivery of the software and all other revenue recognition criteria discussed above have been met. Revenue from licensing software, which requires significant customization and modification, is recognized using the percentage of completion method, based on the hours of effort incurred by the Company in relation to the total estimated hours to complete. In instances where third a significant portion of a customer’s contract, the Company recognizes revenue for the element of software customization by the percentage of completion method described above. Otherwise, third may Service Revenues: Revenues from services are comprised of maintenance and consulting and implementation services. Maintenance revenues include providing for unspecified when-and-if available product updates and customer telephone support services, and are recognized ratably over the term of the service period. Consulting services are generally sold on a time-and-materials basis and include a range of services including installation of software and assisting in the design of interfaces to allow the software to operate in customized environments. Services are generally separable from other elements under the arrangement since performance of the services are not The Company provides customers, free of charge or at a minimal cost, testing kits which potential licensing customers may use to test compatibility/acceptance of the Company’s technology with the customer’s intended applications. Costs and other expenses: Includes professional compensation and other direct contract expenses, as well as costs attributable to the support of client service professional staff, depreciation and amortization costs related to assets used in revenue-generating activities, and other costs attributable to serving the Company ’s client base. Professional compensation consists of payroll costs and related benefits including stock-based compensation and bonuses. Other direct contract expenses include costs directly attributable to client engagements, such as out-of-pocket costs including travel and subsistence for client service professional staff, costs of hardware and software and costs of subcontractors. The allocation of lease and facilities charges for occupied offices is included in costs of service. The Company accounts for its warranties under the FASB ASC 450, one not ’s policy is to accrue anticipated warranty costs based upon historical percentages of items returned for repair within one not third not |
Cash and Cash Equivalents, Policy [Policy Text Block] | 4. Cash Equivalents Cash equivalents consist of liquid investments with original maturities of three At December 31, 2017 2016, |
Receivables, Policy [Policy Text Block] | 5. Accounts Receivable Accounts receivable are carried at original amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a monthly basis. Management determines the allowance for doubtful receivables by regularly evaluating individual customer receivables and considering a customer ’s financial condition, credit history, and current economic conditions. Accounts receivable are written off when deemed uncollectible. During the quarter ended September 30, 2016, may not December 31, 2017 $1,000,000, 57% December 31, 2017 2016 December 31, 201 7 201 6 Accounts receivable - current $ 2,889,731 $ 1,577,031 Accounts receivable - non current 1,760,000 2,070,000 4,649,731 3,647,031 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (500,000 ) (1,013,785 ) (513,785 ) Accounts receivable, net of allowances for doubtful accounts $ 3,635,946 $ 3,133,246 The allowance for doubtful accounts for the years ended December 31, 201 7 2016 Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 7 Allowance for Doubtful Accounts $ 513,785 $ 500,000 $ - $ 1,013,785 Year Ended December 31, 201 6 Allowance for Doubtful Accounts $ 13,785 $ 500,000 $ - $ 513,785 The bad debt expense is recorded in selling, general, and administrative expense. |
Inventory, Policy [Policy Text Block] | 6. Software License Rights Software license rights acquired for re-sale to end users are recorded as assets when purchased and are stated at the lower of cost or estimated net realizable value. The cost of the software license rights has been initially allocated pro-rata to the maximum number of resalable end-user licenses in the rights contract. Licenses are amortized to cost of sales over the greater of the following: 1 10 2 ten 3 twelve The rights are also evaluated by management on a periodic basis to determine if estimated future net revenues, on a per sub-license basis, support the recorded basis of each license. If the estimated net revenues are less than the current carrying value of the capitalized software license rights, the Company will reduce the rights to their net realizable value. |
Property, Plant and Equipment, Policy [Policy Text Block] | 7. Equipment and Leasehold Improvements, Intangible Assets and Depreciation and Amortization Equipment and leasehold improvements are stated at cost. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over the estimated service lives, principally using straight-line methods. Leasehold improvements are amortized over the shorter of the life of the improvement or the lease term, using the straight-line method. The estimated useful lives used to compute depreciation and amortization for financial reporting purposes are as follows: Years Equipment and leasehold improvements Equipment (years) 3 - 5 Furniture and fixtures (years) 3 - 5 Software (years) 3 Leasehold improvements life or lease term Intangible assets consist of patents. Patent costs are capitalized until patents are awarded. Upon award, such costs are amortized using the straight-line method over their respective economic lives. If a patent is denied, all costs are charged to operations in that year. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | 8. Impairment or Disposal of Long Lived Assets, including Intangible Assets The Company reviews long-lived assets, including intangible assets subject to amortization, whenever events or changes in circumstances indicate that the carrying amount of such an asset may not may The Company did not |
Advertising Costs, Policy [Policy Text Block] | 9. Advertising Expense The Company expenses the costs of advertising as incurred. Advertising expenses for 201 7 2016 $386,000 $299,000, |
Revenue Recognition, Deferred Revenue [Policy Text Block] | 10. Deferred Revenue Deferred revenue includes customer advances and amounts that have been billed per the contractual terms but have not 12 |
Research and Development Expense, Policy [Policy Text Block] | 11. Research and Development Expenditures Research and development expenses include costs directly attributable to the conduct of research and development programs primarily related to the development of our software products and improving the efficiency and capabilities of our existing software. Such costs include salaries, payroll taxes, employee benefit costs, materials, supplies, depreciation on research equipment, services provided by outside contractors, and the allocable portions of facility costs, such as rent, utilities, insurance, repairs and maintenance, depreciation and general support services. All costs associated with research and development are expensed as incurred. |
Earnings Per Share, Policy [Policy Text Block] | 12. Earnings Per Share of Common Stock (“EPS”) The Company ’s EPS is calculated by dividing net income (loss) applicable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted EPS includes the effect from potential issuances of common stock, such as stock issuable pursuant to the conversion of preferred stock, exercise of stock options and warrants, when the effect of their inclusion is dilutive. See Note R - Earnings Per Share “EPS” for additional information. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | 13. Accounting for Stock-Based Compensation The Company accounts for share based compensation in accordance with the provisions of ASC 718 10, — Stock Compensation,” which requires measurement of compensation cost for all stock awards at fair value on date of grant and recognition of compensation over the service period for awards expected to vest. The majority of its share-based compensation arrangements vest over either a three four not may The following table presents share-based compensation expenses included in the Company ’s consolidated statements of operations: Year ended December 31, 2017 2016 Selling, general and administrative $ 864,036 $ 353,056 Research, development and engineering 108,728 74,786 $ 972,764 $ 427,842 Valuation Assumptions for Stock Options For 201 7 2016, 1,234,167 27,087 Year ended December 31, 2017 2016 Weighted average Risk free interest rate 1.92 % 1.11 % Expected life of options (in years) 4.51 4.50 Expected dividends 0 % 0 % Weighted average Volatility of stock price 138 % 93 % The stock volatility for each grant is determined based on the review of the experience of the weighted average of historical daily price changes of the Company ’s common stock over the expected option term. The expected term was determined using the simplified method for estimating expected option life, which qualify as “plain-vanilla” options; and the risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. |
Derivatives, Embedded Derivatives [Policy Text Block] | 14. Derivative Liabilities In connection with the issuances of equity instruments or debt, the Company may may may may The Company early-adopted the new provisions issued July 2017, 2017 11, 260 480 815 2017 11, not no |
Income Tax, Policy [Policy Text Block] | 15 . Income Taxes The provision for, or benefit from, income taxes includes deferred taxes resulting from the temporary differences in income for financial and tax purposes using the liability method. Such temporary differences result primarily from the differences in the carrying value of assets and liabilities. Future realization of deferred income tax assets requires sufficient taxable income within the carryback, carryforward period available under tax law. The Company evaluates, on a quarterly basis whether, based on all available evidence, if it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is more likely than not not 740 10, may ’s historical performance and estimated future taxable income, a full valuation allowance has been established. The Company accounts for uncertain tax provisions in accordance with ASC 740 10 05, ’s financial statements. The ASC prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The ASC provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. |
New Accounting Pronouncements, Policy [Policy Text Block] | 1 6. Recent Accounting Pronouncements In May 2014 , FASB issued ASU No. 2014 09, 606 ASC 606” ), to supersede nearly all existing revenue recognition guidance under U.S. GAAP. The standard contains a comprehensive new revenue recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods and services. The FASB has issued several amendments to the standard, including clarifications on disclosure of prior-period performance obligations and remaining performance obligations. The Company will adopt ASC 606 January 1, 2018 modified retrospective transition method. While the Company is finalizing the impact this standard has on its consolidated financial statements and related disclosures, the Company expects the new standard will not not 606 In July 2015, No. 2015 11, 330 2015 11" 2015 11 2015 11 December 15, 2016, 2015 11 not ’s consolidated financial statements. In February 2016, 2016 02, 12 December 15, 2018, for amounts yet to be determined. In August 2014, No. 2014 15, 2014 15, not one 2014 15 December 15, 2016, 2014 15 as of January 1, 2017. In March 2016, 2016 09, – Stock Compensation: Improvements to Employee Share-Based Payment Accounting” (“ASU 2016 09” 2016 09 2016 09 December 15, 2016. not In July 2017, 2017 11, 260 480 815 of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Under ASU 2017 11, not no 480, not December 15, 2018, 2017 11, 2017 not Management does not not |
Reclassification, Policy [Policy Text Block] | 1 7. Reclassifications occurred to certain prior year amounts in order to conform to the current year classifications. The reclassifications have no |
Note A - The Company and Summ27
Note A - The Company and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 201 7 201 6 Accounts receivable - current $ 2,889,731 $ 1,577,031 Accounts receivable - non current 1,760,000 2,070,000 4,649,731 3,647,031 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (500,000 ) (1,013,785 ) (513,785 ) Accounts receivable, net of allowances for doubtful accounts $ 3,635,946 $ 3,133,246 |
Summary of Valuation Allowance [Table Text Block] | Balance at Beginning of Year Charged to Costs and Expenses Deductions From Reserves Balance at End of Year Year Ended December 31, 201 7 Allowance for Doubtful Accounts $ 513,785 $ 500,000 $ - $ 1,013,785 Year Ended December 31, 201 6 Allowance for Doubtful Accounts $ 13,785 $ 500,000 $ - $ 513,785 |
Useful Lives of Property Plan and Equipment [Table Text Block] | Years Equipment and leasehold improvements Equipment (years) 3 - 5 Furniture and fixtures (years) 3 - 5 Software (years) 3 Leasehold improvements life or lease term |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Year ended December 31, 2017 2016 Selling, general and administrative $ 864,036 $ 353,056 Research, development and engineering 108,728 74,786 $ 972,764 $ 427,842 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Year ended December 31, 2017 2016 Weighted average Risk free interest rate 1.92 % 1.11 % Expected life of options (in years) 4.51 4.50 Expected dividends 0 % 0 % Weighted average Volatility of stock price 138 % 93 % |
Note B - Factoring (Tables)
Note B - Factoring (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 201 7 201 6 Accounts receivable - current $ 2,889,731 $ 1,577,031 Accounts receivable - non current 1,760,000 2,070,000 4,649,731 3,647,031 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,000,000 ) (500,000 ) (1,013,785 ) (513,785 ) Accounts receivable, net of allowances for doubtful accounts $ 3,635,946 $ 3,133,246 |
Factoring Fees [Table Text Block] | Years Ended December 31, 2017 2016 Factoring fees $ 224,142 $ 341,023 |
Factored Accounts Receivable [Member] | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Original Invoice Value Factored Amount Factored Balance due Year Ended December 31, 2017 Factored accounts receivable $ 423,349 $ 313,484 $ 109,865 Year Ended December 31, 2016 Factored accounts receivable $ 214,556 $ 160,918 $ 53,638 |
Note D - Concentration of Risk
Note D - Concentration of Risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | Years Ended December 31, 201 7 201 6 Customer A 54 % 34 % Customer B * 12 % |
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | As of December 31, 201 7 201 6 Customer A 55 % 35 % Customer B 37 % 56 % |
Note E - Inventory (Tables)
Note E - Inventory (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | 2017 2016 Current Finished goods 487,858 381,762 Fabricated assemblies 458,989 83,666 Total current inventory $ 946,847 $ 465,428 |
Note F - Resalable Software L31
Note F - Resalable Software Licenses Rights (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Software License Rights [Table Text Block] | 2017 2016 Current software license rights $ 2,640,000 $ 1,560,000 Non-current software license rights 7,933,808 10,598,411 Total software license rights $ 10,573,808 $ 12,158,411 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Years ending December 31 2018 2,640,000 2019 3,000,000 2020 2,400,000 2021 1,200,000 2022 720,000 Thereafter 613,808 |
Note G - Equipment and Leaseh32
Note G - Equipment and Leasehold Improvements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | 2017 2016 Equipment $ 567,473 $ 403,425 Furniture and fixtures 164,079 162,067 Software 32,045 32,045 Leasehold improvements 23,403 23,403 787,000 620,940 Less accumulated depreciation and amortization (605,835 ) (553,126 ) Total $ 181,165 $ 67,814 |
Note H - Intangible Assets (Tab
Note H - Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 2017 2016 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount Patents and patents pending $ 347,946 $ (166,842 ) $ 181,104 $ 287,248 $ (153,116 ) $ 134,132 Total $ 347,946 $ (166,842 ) $ 181,104 $ 287,248 $ (153,116 ) $ 134,132 |
Note I - Accrued Liabilities (T
Note I - Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Accrued Liabilities [Table Text Block] | 201 7 201 6 Compensation $ 341,884 $ 66,152 Compensated absences 164,132 154,368 Accrued legal and accounting fees 85,633 79,633 Sales tax payable 5,614 26,988 Factoring fees 32,357 3,600 Other 58,403 4,582 Total $ 688,023 $ 335,323 |
Note M - Commitments and Cont35
Note M - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Years ending December 31, 201 8 148,862 2019 45,033 20 20 31,898 $ 225,793 |
Note N - Equity (Tables)
Note N - Equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Total Warrants Weighted average exercise price Weighted average remaining life (in years) Aggregate intrinsic value Outstanding, as of January 1, 2016 1,704,628 4.40 3.02 Granted — — Exercised — — Forfeited — — Expired (444,548 ) 6.00 Outstanding, as of December 31, 2016 1,260,080 3.84 2.78 — Granted 138,889 3.60 Exercised — — Forfeited — — Expired — — Outstanding, as of December 31, 2017 1,398,969 3.81 2.06 — Vested or expected to vest at December 31, 2017 1,398,969 3.81 2.06 — Exercisable at December 31, 2017 1,398,969 3.81 2.06 — |
Note O - Stock Options (Tables)
Note O - Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Number of Options Weighted average Weighted average remaining Aggregate 1999 Plan 2004 Plan 2015 Plan Non Plan Total exercise price life (in years) intrinsic value Outstanding, as of December 31, 2015 20,834 85,008 — 259,088 364,930 $ 3.87 Granted — — 27,087 — 27,087 2.74 Exercised — — — — — Forfeited — — (2,084 ) (8,335 ) (10,419 ) 2.16 Expired (20,834 ) (15,628 ) — (3,473 ) (39,935 ) 2.50 Outstanding, as of December 31, 2016 — 69,380 25,003 247,280 341,663 $ 3.99 4.23 $ 53,936 Granted — — 64,167 1,170,000 1,234,167 2.69 Exercised — — — (4,167 ) (4,167 ) 2.16 Forfeited — — (7,084 ) (65,140 ) (72,224 ) 2.62 Expired — (17,084 ) — (4,862 ) (21,946 ) 8.86 Outs tanding, as of December 31, 2017 — 52,296 82,086 1,343,111 1,477,493 $ 2.91 5.64 $ 0 Vested or expec ted to vest at December 31, 2017 1,083,691 $ 2.98 5.43 $ 0 Exercisable at December 31, 2017 261,294 $ 3.96 3.09 $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block] | Options Outstanding Options Exercisable Range of exercise prices Number of shares Weighted average exercise price Weighted average remaining life (in years) Number exercisable Weighted average exercise price $ 1.90 - 2.50 87,064 $ 2.16 4.65 56,422 $ 2.16 2.51 - 3.50 1,207,296 2.70 6.15 21,740 3.23 3.51 - 5.04 183,132 4.60 2.77 183,132 4.60 $ 1.90 - 5.04 1,477,493 261,294 |
Note P - Income Taxes (Tables)
Note P - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2017 2016 Current asset: Accrued compensation $ 118,000 $ 67,000 Accounts receivable allowance 277,000 202,000 Non-current asset (liability): Stock-based compensation 387,000 360,000 Basis differences in fixed assets (18,000 ) (8,000 ) Basis differences in intangible assets 46,000 60,000 Net operating loss and credit carryforwards 12,052,000 18,597,000 Valuation allowances (12,862,000 ) (19,278,000 ) $ — $ — |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2017 2016 Federal statutory income tax rate 34 % 34 % Permanent differences — — Change in tax laws/tax rate (13 ) - Effect of net operating loss (21 ) (34 ) Effective tax rate — % — % |
Note R - Earnings Per Share (39
Note R - Earnings Per Share (EPS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 2017 2016 Basic Numerator: Loss from continuing operations $ (4,275,338 ) $ (4,189,704 ) Convertible preferred stock dividends (769,158 ) (802,500 ) Net loss available to common stockholders (basic and diluted EPS) $ (5,044,496 ) $ (4,992,204 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Years ended December 31, 2017 2016 Preferred stock 5,264,422 5,416,667 Stock options 15,529 17,657 Warrants 2,109 1,018 Potentially dilutive securities 5,282,060 5,435,342 Years ended December 31, 2017 2016 Stock options 1,390,428 235,845 Warrants 1,351,052 1,212,163 Total 2,741,480 1,448,008 |
Note A - The Company and Summ40
Note A - The Company and Summary of Significant Accounting Policies (Details Textual) | Dec. 29, 2016 | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($) |
Retained Earnings (Accumulated Deficit) | $ (67,076,492) | $ (62,801,154) | ||
Cash and Cash Equivalents, at Carrying Value | 288,721 | 1,061,307 | $ 4,321,078 | |
Operational Costs Per Month | 592,000 | |||
Allowance for Doubtful Accounts Receivable, Noncurrent | $ 1,000,000 | 500,000 | ||
Percentage of Remaining Balance Owned Reserved | 57.00% | |||
Advertising Expense | $ 386,000 | $ 299,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 1,234,167 | 27,087 | ||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||
Licensing Agreements [Member] | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | |||
Reverse Stock Split [Member] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 12 |
Note A - The Company and Summ41
Note A - The Company and Summary of Significant Accounting Policies - Summary of Accounts Receivable (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts receivable - current | $ 2,889,731 | $ 1,577,031 |
Accounts receivable - non current | 1,760,000 | 2,070,000 |
4,649,731 | 3,647,031 | |
Allowance for doubtful accounts - current | (13,785) | (13,785) |
Allowance for doubtful accounts - non current | (1,000,000) | (500,000) |
(1,013,785) | (513,785) | |
Accounts receivable, net of allowances for doubtful accounts | $ 3,635,946 | $ 3,133,246 |
Note A - The Company and Summ42
Note A - The Company and Summary of Significant Accounting Policies - Allowance for Doubtful Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Balance at beginning of year | $ 513,785 | $ 13,785 |
Charges to costs and expenses | 500,000 | 500,000 |
Deductions from reserves | ||
Balance at end of year | $ 1,013,785 | $ 513,785 |
Note A - The Company and Summ43
Note A - The Company and Summary of Significant Accounting Policies - Estimated Useful Lives for Depreciation and Amortization (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Equipment [Member] | Minimum [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant, and Equipment (Year) | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant, and Equipment (Year) | 5 years |
Software Development [Member] | |
Property, Plant, and Equipment (Year) | 3 years |
Leasehold Improvements [Member] | |
Property, Plant, and Equipment, useful life | life or lease term |
Note A - The Company and Summ44
Note A - The Company and Summary of Significant Accounting Policies - Share-based Compensation Expenses for Continuing Operations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based compensation expense | $ 972,764 | $ 427,842 |
Selling, General and Administrative Expenses [Member] | ||
Share-based compensation expense | 864,036 | 353,056 |
Research and Development Expense [Member] | ||
Share-based compensation expense | $ 108,728 | $ 74,786 |
Note A - The Company and Summ45
Note A - The Company and Summary of Significant Accounting Policies - Valuation Assumptions for Stock Options (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Weighted average Risk free interest rate | 1.92% | 1.11% |
Expected life of options (in years) (Year) | 4 years 186 days | 4 years 182 days |
Expected dividends | 0.00% | 0.00% |
Weighted average Volatility of stock price | 138.00% | 93.00% |
Note B - Factoring (Details Tex
Note B - Factoring (Details Textual) | 1 Months Ended |
Dec. 31, 2011USD ($) | |
Factoring Arrangement Term | 2 years |
Factoring Arrangement, Minimum Amount of Accounts Receivable Per Quarter | $ 150,000 |
Minimum [Member] | |
Factoring Fees Percent | 2.75% |
Maximum [Member] | |
Factoring Fees Percent | 15.00% |
Geographic Distribution, Foreign [Member] | |
Percentage Of Accounts Receivable Remitted By Factor | 35.00% |
Geographic Distribution, Domestic [Member] | |
Percentage Of Accounts Receivable Remitted By Factor | 75.00% |
Note B - Factoring - Due From F
Note B - Factoring - Due From Factor (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Original invoice value | $ 423,349 | $ 214,556 |
Factored amount | 313,484 | 160,918 |
Factored balance due | $ 109,865 | $ 53,638 |
Note B - Factoring - Fees (Deta
Note B - Factoring - Fees (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Factoring fees | $ 224,142 | $ 341,023 |
Note D - Concentration of Ris49
Note D - Concentration of Risk (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash, Uninsured Amount | $ 0 | $ 811,000 |
Accounts Receivable, Net | 3,635,946 | 3,133,246 |
Allowance for Doubtful Accounts Receivable, Noncurrent | $ 1,000,000 | $ 500,000 |
Percentage of Remaining Balance Owned Reserved | 57.00% | |
Customer B [Member] | ||
Accounts Receivable, Net | $ 1,760,000 | |
Allowance for Doubtful Accounts Receivable, Noncurrent | $ 1,000,000 | |
Percentage of Remaining Balance Owned Reserved | 57.00% |
Note D - Concentration of Ris50
Note D - Concentration of Risk - Revenue Concentration Risk by Major Customer (Details) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Customer A [Member] | ||
Percentage of revenues | 54.00% | 34.00% |
Customer B [Member] | ||
Percentage of revenues | 12.00% |
Note D - Concentration of Ris51
Note D - Concentration of Risk - Accounts Receivable Concentration Risk by Major Customer (Details) - Accounts Receivable [Member] - Customer Concentration Risk [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Customer A [Member] | ||
Percentage of revenues | 55.00% | 35.00% |
Customer B [Member] | ||
Percentage of revenues | 37.00% | 56.00% |
Note E - Inventory - Components
Note E - Inventory - Components of Inventory (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Finished goods | $ 487,858 | $ 381,762 |
Fabricated assemblies | 458,989 | 83,666 |
Total current inventory | $ 946,847 | $ 465,428 |
Note F - Resalable Software L53
Note F - Resalable Software Licenses Rights (Details Textual) - USD ($) | Dec. 31, 2015 | Nov. 11, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 |
Payments to Acquire Intangible Assets | $ 60,698 | ||||
Software License Rights, Current | 2,640,000 | 1,560,000 | $ 2,640,000 | ||
Amortization of Intangible Assets | 13,726 | 13,606 | |||
Software License Rights | 10,573,808 | 12,158,411 | 10,573,808 | ||
Payments to Acquire Software | $ 180,000 | ||||
License Costs | 2,802,860 | 513,218 | |||
Software License Rights, Noncurrent | $ 7,933,808 | 10,598,411 | 7,933,808 | ||
Licensing Agreements [Member] | |||||
Payments to Acquire Intangible Assets | $ 12,000,000 | ||||
Finite-Lived Intangible Asset, Useful Life | 10 years | ||||
Amortization of Intangible Assets | $ 1,556,687 | 1,909 | |||
Software License Rights [Member] | |||||
Amortization of Intangible Assets | 1,558,596 | ||||
Software License Rights | 10,441,404 | 10,441,404 | |||
Payments to Acquire Software | 8,000 | ||||
License Costs | 35,916 | $ 19,680 | 47,596 | ||
Software License Rights, Noncurrent | $ 132,404 | $ 132,404 |
Note F - Resalable Software L54
Note F - Resalable Software Licenses Rights - Summary of Software License Rights (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Resalable software license rights | $ 2,640,000 | $ 1,560,000 |
Resalable software license rights, net of current portion | 7,933,808 | 10,598,411 |
Total software license rights | $ 10,573,808 | $ 12,158,411 |
Note F - Resalable Software L55
Note F - Resalable Software Licenses Rights - Amortization Expense (Details) | Dec. 31, 2017USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 14,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 14,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 14,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 14,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 14,000 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 111,000 |
Licensing Agreements [Member] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 2,640,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 3,000,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 2,400,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 1,200,000 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 720,000 |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | $ 613,808 |
Note G - Equipment and Leaseh56
Note G - Equipment and Leasehold Improvements (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Selling, General and Administrative Expenses [Member] | ||
Depreciation, Depletion and Amortization, Nonproduction | $ 52,709 | $ 49,038 |
Note G - Equipment and Leaseh57
Note G - Equipment and Leasehold Improvements - Summary of Equipment and Leasehold Improvements (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Property, plant, and equipment, gross | $ 787,000 | $ 620,940 |
Less accumulated depreciation and amortization | (605,835) | (553,126) |
Total | 181,165 | 67,814 |
Equipment [Member] | ||
Property, plant, and equipment, gross | 567,473 | 403,425 |
Furniture and Fixtures [Member] | ||
Property, plant, and equipment, gross | 164,079 | 162,067 |
Software Development [Member] | ||
Property, plant, and equipment, gross | 32,045 | 32,045 |
Leasehold Improvements [Member] | ||
Property, plant, and equipment, gross | $ 23,403 | $ 23,403 |
Note H - Intangible Assets (Det
Note H - Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Amortization of Intangible Assets | $ 13,726 | $ 13,606 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 14,000 | |
Finite-Lived Intangible Assets, Amortization Expense, after Year Five | 111,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 14,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 14,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 14,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 14,000 | |
Research, Development, and Engineering Expense [Member] | ||
Amortization of Intangible Assets | $ 13,726 | $ 13,606 |
Note H - Intangible Assets - Su
Note H - Intangible Assets - Summary of Intangible Assets (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Gross carrying amount | $ 347,946 | $ 287,248 |
Accumulated amortization | (166,842) | (153,116) |
Net carrying amount | 181,104 | 134,132 |
Patents [Member] | ||
Gross carrying amount | 347,946 | 287,248 |
Accumulated amortization | (166,842) | (153,116) |
Net carrying amount | $ 181,104 | $ 134,132 |
Note I - Accrued Liabilities -
Note I - Accrued Liabilities - Summary of Accrued Liabilities (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Compensation | $ 341,884 | $ 66,152 |
Compensated absences | 164,132 | 154,368 |
Accrued legal and accounting fees | 85,633 | 79,633 |
Sales tax payable | 5,614 | 26,988 |
Factoring fees | 32,357 | 3,600 |
Other | 58,403 | 4,582 |
Total | $ 688,023 | $ 335,323 |
Note J - Related Party (Details
Note J - Related Party (Details Textual) - USD ($) | Oct. 17, 2017 | Sep. 22, 2017 | Apr. 28, 2017 | Nov. 18, 2016 | Nov. 11, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Aug. 07, 2017 | Nov. 11, 2015 |
Share Price | $ 1.77 | ||||||||
Proceeds from Issuance of Common Stock | $ 2,000,000 | $ 1,860,000 | |||||||
Conversion of Dividends Payable, Amount Converted | $ 540,000 | ||||||||
Conversion of Dividends Payable, Shares Issued | 150,000 | ||||||||
Maximum Ownership as a Result of Conversion | 35.00% | 9.99% | |||||||
Conversion of Series A-1 Shares into Common Stock [Member] | |||||||||
Conversion of Stock, Shares Converted | 27,404 | 27,404 | |||||||
Preferred Stock, Conversion Price | $ 3.60 | $ 3.60 | |||||||
Conversion of Stock, Shares Issued | 761,222 | 761,222 | |||||||
Director and Executive Officer [member] | |||||||||
Stock Issued During Period, Shares, New Issues | 277,778 | 277,778 | |||||||
Share Price | $ 3.60 | ||||||||
Proceeds from Issuance of Common Stock | $ 1,000,000 | $ 1,000,000 | |||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 138,889 | ||||||||
Stock and Warrants Issued During Period, Vaue | $ 1,540,000 | ||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.60 | ||||||||
Conversion of Dividends Payable, Amount Converted | $ 540,000 | ||||||||
Conversion of Dividends Payable, Shares Issued | 150,000 | ||||||||
Director [Member] | |||||||||
Software License, Total | $ 12,000,000 | ||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 33.20% | ||||||||
Wong Kwok Fong [Member] | |||||||||
Stock Issued During Period, Shares, New Issues | 516,667 | 516,667 | |||||||
Share Price | $ 3.60 | ||||||||
Proceeds from Issuance of Common Stock | $ 1,860,000 | $ 1,860,000 |
Note K - Deferred Revenue (Deta
Note K - Deferred Revenue (Details Textual) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Maintenance Contracts [Member] | ||
Deferred Revenue, Current | $ 508,000 | $ 633,000 |
Note L - Segment Information (D
Note L - Segment Information (Details Textual) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Number of Reportable Segments | 1 | |
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | North America [Member] | ||
Concentration Risk, Percentage | 87.00% | 78.00% |
Note M - Commitments and Cont64
Note M - Commitments and Contingencies (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Selling, General and Administrative Expenses [Member] | ||
Operating Leases, Rent Expense | $ 221,000 | $ 193,000 |
Note M - Commitments and Cont65
Note M - Commitments and Contingencies - Future Minimum Rental Commitments of Non-cancelable Operating Leases (Details) | Dec. 31, 2017USD ($) |
2,018 | $ 148,862 |
2,019 | 45,033 |
2,020 | 31,898 |
$ 225,793 |
Note N - Equity (Details Textua
Note N - Equity (Details Textual) | Nov. 13, 2017USD ($)shares | Oct. 17, 2017USD ($)$ / sharesshares | Sep. 22, 2017USD ($)$ / sharesshares | Aug. 09, 2017USD ($)shares | May 11, 2017USD ($)shares | May 02, 2017USD ($)$ / shares | Apr. 28, 2017USD ($)$ / sharesshares | Mar. 15, 2017USD ($)shares | Dec. 29, 2016 | Nov. 18, 2016USD ($)$ / sharesshares | Nov. 11, 2016USD ($)shares | Nov. 11, 2015USD ($)$ / sharesshares | Oct. 29, 2015USD ($)$ / sharesshares | Sep. 23, 2015$ / sharesshares | Mar. 09, 2015 | Nov. 13, 2014USD ($)$ / sharesshares | Nov. 08, 2013USD ($)$ / sharesshares | Oct. 25, 2013shares | May 31, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($) | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Aug. 07, 2017 | Nov. 30, 2016$ / shares |
Preferred Stock, Shares Authorized | 5,000,000 | |||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||
Share Price | $ / shares | $ 1.77 | |||||||||||||||||||||||
Maximum Ownership as a Result of Conversion | 35.00% | 9.99% | ||||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ | $ 540,000 | |||||||||||||||||||||||
Conversion of Dividends Payable, Shares Issued | 150,000 | |||||||||||||||||||||||
Dividends Payable | $ | 630,408 | 401,250 | ||||||||||||||||||||||
Payments of Stock Issuance Costs | $ | 80,366 | 84,866 | ||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | 2,000,000 | 1,860,000 | ||||||||||||||||||||||
Committed Equity Facility Amount | $ | $ 5,000,000 | |||||||||||||||||||||||
Committed Equity Facility, Term | 3 years | |||||||||||||||||||||||
Maximum Dollar Amount of Shares to Purchase Based on Daily Volume Weighted Average Price of the Company’s Common Stock | $ | $ 100,000 | |||||||||||||||||||||||
Period for Maximum Dollar Amount of Shares to Purchase | 5 days | |||||||||||||||||||||||
Per Share Price That Is Used in Calculation for Purchase Price under Committed Equity Facility | $ / shares | $ 3.83 | |||||||||||||||||||||||
Percentage of Lowest VWAP That Equals or Exceeds Specified per Share Price under Committed Equity Facility | 94.00% | |||||||||||||||||||||||
Equity Facility, Aggregate Sales Limitation, Percentage of Total Outstanding Share | 19.99% | |||||||||||||||||||||||
Maximum Ownership of Company’s Common Stock Requirement under Committed Equity Facility Sale, Percentage | 9.99% | |||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 61,667 | |||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 156,584 | $ 354,585 | $ 105,000 | |||||||||||||||||||||
Stock Issued During Period As a Commitment Fee, Shares | 55,000 | |||||||||||||||||||||||
Stock Issued During Period As a Commitment Fee, Value | $ | $ 198,000 | |||||||||||||||||||||||
Stock Issued During Period, Issued for Services, Weighted Average Share Price | $ / shares | $ 2.54 | |||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 1,610 | |||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 4,167 | 0 | ||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ | $ 2,000,000 | $ 1,860,000 | ||||||||||||||||||||||
September 2015 Warrants [Member] | ||||||||||||||||||||||||
Debt Instrument, Unamortized Discount | $ | $ 92,199 | |||||||||||||||||||||||
Fair Value Adjustment of Warrants | $ | $ 4,607 | |||||||||||||||||||||||
September 2017 [Member] | ||||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 3.60 | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 138,889 | |||||||||||||||||||||||
Term Of Warrant | 5 years | |||||||||||||||||||||||
Promissory Note [Member] | ||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 69,445 | |||||||||||||||||||||||
Warrants Issued Under PISPA [Member] | ||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | $ | 7,478 | |||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ | $ 0 | |||||||||||||||||||||||
Warrants Issued Under PISPA [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances | $ | $ 325,891 | |||||||||||||||||||||||
Common Stock [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 555,556 | 516,667 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 117,849 | 41,667 | ||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 12 | $ 4 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 11,244 | 27,248 | ||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,610 | |||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ | $ 56 | $ 52 | ||||||||||||||||||||||
Warrant [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||||||||||||||||||||
Fair Value Assumptions, Expected Term | 5 years | |||||||||||||||||||||||
Private Investor SPA [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 664,584 | |||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 6 | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 996,877 | |||||||||||||||||||||||
Stock Issued During Period, Value, New Issues | $ | $ 3,697,100 | |||||||||||||||||||||||
Term Of Warrant | 3 years | |||||||||||||||||||||||
Proceeds from Issuance of Private Placement | $ | $ 1,595,000 | |||||||||||||||||||||||
Placement Agent Warrants [Member] | ||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 82,158 | |||||||||||||||||||||||
Commissions and Fees, Percent of Gross Proceeds | 8.00% | |||||||||||||||||||||||
Private Investor SPA [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 1,026,972 | |||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 3.60 | $ 3.60 | ||||||||||||||||||||||
Private Investor SPA [Member] | Common Stock [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 1,026,972 | |||||||||||||||||||||||
Private Investor SPA [Member] | Warrant [Member] | ||||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 1,026,972 | |||||||||||||||||||||||
Consultancy Firm [Member] | ||||||||||||||||||||||||
Share Price | $ / shares | $ 2.52 | |||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 41,667 | |||||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 105,000 | |||||||||||||||||||||||
Conversion of Series A-1 Shares into Common Stock [Member] | ||||||||||||||||||||||||
Conversion of Stock, Shares Converted | 27,404 | 27,404 | ||||||||||||||||||||||
Conversion of Stock, Shares Issued | 761,222 | 761,222 | ||||||||||||||||||||||
Preferred Stock, Conversion Price | $ / shares | $ 3.60 | $ 3.60 | ||||||||||||||||||||||
Director and Executive Officer [member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 277,778 | 277,778 | ||||||||||||||||||||||
Share Price | $ / shares | $ 3.60 | |||||||||||||||||||||||
Initial Conversion Price | $ / shares | $ 3.60 | |||||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ | $ 540,000 | |||||||||||||||||||||||
Conversion of Dividends Payable, Shares Issued | 150,000 | |||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 3.60 | |||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 1,000,000 | $ 1,000,000 | ||||||||||||||||||||||
Stock Issued During Period, Shares, Cash Issuance and Conversion of Dividend Payable | 427,778 | |||||||||||||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 138,889 | |||||||||||||||||||||||
Stock and Warrants Issued During Period, Vaue | $ | $ 1,540,000 | |||||||||||||||||||||||
Director [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, Issued for Services | 2,276 | 5,148 | 1,925 | 1,895 | ||||||||||||||||||||
Stock Issued During Period, Value, Issued for Services | $ | $ 4,005 | $ 18,017 | $ 5,005 | $ 5,003 | ||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 18,914 | |||||||||||||||||||||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ | $ 45,000 | |||||||||||||||||||||||
Chief Executive Officer [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures | 8,334 | |||||||||||||||||||||||
Stock Granted, Value, Share-based Compensation, Net of Forfeitures | $ | $ 17,000 | |||||||||||||||||||||||
Wong Kwok Fong [Member] | ||||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 516,667 | 516,667 | ||||||||||||||||||||||
Share Price | $ / shares | $ 3.60 | |||||||||||||||||||||||
Proceeds from Issuance of Common Stock | $ | $ 1,860,000 | $ 1,860,000 | ||||||||||||||||||||||
Reverse Stock Split [Member] | ||||||||||||||||||||||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 12 | |||||||||||||||||||||||
Series A-1 Convertible Preferred Stock [Member] | ||||||||||||||||||||||||
Preferred Stock, Shares Authorized | 100,000 | 100,000 | ||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||
Preferred Stock, Shares Outstanding | 62,596 | 90,000 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 5,500 | 84,500 | ||||||||||||||||||||||
Share Price | $ / shares | $ 100 | $ 100 | ||||||||||||||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ | $ 550,000 | $ 8,450,000 | ||||||||||||||||||||||
Initial Conversion Price | $ / shares | $ 3.60 | $ 3.60 | ||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 6.00% | |||||||||||||||||||||||
Period Preceding the Dividend Payment Date | 10 days | |||||||||||||||||||||||
Conversion of Dividends Payable, Amount Converted | $ | $ 27,404 | $ 540,000 | ||||||||||||||||||||||
Conversion of Dividends Payable, Shares Issued | 761,222 | 150,000 | ||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 3.60 | $ 3.60 | ||||||||||||||||||||||
Dividends Payable | $ | $ 236,658 | $ 270,000 | ||||||||||||||||||||||
Preferred Stock, Shares Issued | 62,596 | 90,000 | ||||||||||||||||||||||
Series A-1 Convertible Preferred Stock [Member] | Maximum [Member] | ||||||||||||||||||||||||
Maximum Ownership as a Result of Conversion | 9.99% | |||||||||||||||||||||||
Series B-1 Convertible Preferred Stock [Member] | ||||||||||||||||||||||||
Preferred Stock, Shares Authorized | 105,000 | 105,000 | ||||||||||||||||||||||
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||
Preferred Stock, Shares Outstanding | 105,000 | 105,000 | ||||||||||||||||||||||
Stock Issued During Period, Shares, New Issues | 105,000 | |||||||||||||||||||||||
Share Price | $ / shares | $ 100 | |||||||||||||||||||||||
Proceeds from Issuance of Convertible Preferred Stock | $ | $ 10,500,000 | |||||||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 2.50% | |||||||||||||||||||||||
Period Preceding the Dividend Payment Date | 10 days | |||||||||||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 3.60 | |||||||||||||||||||||||
Dividends Payable | $ | $ 393,750 | $ 131,250 | ||||||||||||||||||||||
Liquidation Value Per Share | $ / shares | $ 100 | |||||||||||||||||||||||
Preferred Stock, Shares Issued | 105,000 | 105,000 | ||||||||||||||||||||||
Series B-1 Convertible Preferred Stock [Member] | Maximum [Member] | ||||||||||||||||||||||||
Maximum Ownership as a Result of Conversion | 9.99% | |||||||||||||||||||||||
September 2015 Warrants [Member] | ||||||||||||||||||||||||
Initial Conversion Price | $ / shares | $ 3.60 | |||||||||||||||||||||||
Term Of Warrant | 5 years |
Note N - Equity - Summary of Wa
Note N - Equity - Summary of Warrant Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Total warrants (in shares) | 1,260,080 | 1,704,628 | |
Weighted average exercise price (in dollars per share) | $ 3.84 | $ 4.40 | |
Weighted average remaining contractual life (Year) | 2 years 21 days | 2 years 284 days | 3 years 7 days |
Granted (in shares) | 138,889 | ||
Granted, weighted average exercise price (in dollars per share) | $ 3.60 | ||
Exercised (in shares) | |||
Exercised, weighted average exercise price (in dollars per share) | |||
Forfeited (in shares) | |||
Forfeited, weighted average exercise price (in dollars per share) | |||
Expired (in shares) | (444,548) | ||
Expired, weighted average exercise price (in dollars per share) | $ 6 | ||
Total warrants (in shares) | 1,398,969 | 1,260,080 | 1,704,628 |
Weighted average exercise price (in dollars per share) | $ 3.81 | $ 3.84 | $ 4.40 |
Vested or expected to vest at December 31, 2017 (in shares) | 1,398,969 | ||
Vested or expected to vest at December 31, 2017 (in dollars per share) | $ 3.81 | ||
Vested or expected to vest at December 31, 2017 (Year) | 2 years 21 days | ||
Exercisable at December 31, 2017 (in shares) | 1,398,969 | ||
Exercisable at December 31, 2017 (in dollars per share) | $ 3.81 | ||
Exercisable at December 31, 2017 (Year) | 2 years 21 days |
Note O - Stock Options (Details
Note O - Stock Options (Details Textual) - USD ($) | Jan. 27, 2016 | Oct. 12, 2004 | Dec. 31, 2017 | Dec. 31, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 233 days | 4 years 83 days | ||
Share Price | $ 1.77 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 261,294 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 2.32 | $ 1.86 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 5,667 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 197,281 | $ 285,430 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 1,634,611 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 69 days | |||
In The Money Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 0 | |||
The2004 Stock Option Plan [Member] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 166,667 | |||
The2004 Stock Option Plan [Member] | Nonstatutory Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 10 years | |||
The2004 Stock Option Plan [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |||
The 2015 Equity Incentive Plan [Member] | ||||
Common Stock, Capital Shares Reserved for Future Issuance | 666,667 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |||
The 2015 Equity Incentive Plan [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 100.00% | |||
The 2015 Equity Incentive Plan [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 110.00% |
Note O - Stock Options - Option
Note O - Stock Options - Option Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Outstanding (in shares) | 341,663 | 364,930 |
Outstanding, weighted average exercise price (in dollars per share) | $ 3.99 | $ 3.87 |
Granted (in shares) | 1,234,167 | 27,087 |
Granted, weighted average exercise price (in dollars per share) | $ 2.69 | $ 2.74 |
Exercise of stock options (in shares) | 4,167 | 0 |
Exercised, weighted average exercise price (in dollars per share) | $ 2.16 | |
Forfeited (in shares) | (72,224) | (10,419) |
Forfeited, weighted average exercise price (in dollars per share) | $ 2.62 | $ 2.16 |
Expired (in shares) | (21,946) | (39,935) |
Expired, weighted average exercise price (in dollars per share) | $ 8.86 | $ 2.50 |
Outstanding (in shares) | 1,477,493 | 341,663 |
Outstanding, weighted average exercise price (in dollars per share) | $ 2.91 | $ 3.99 |
Outstanding, weighted average remaining life (Year) | 5 years 233 days | 4 years 83 days |
Outstanding, aggregate intrinsic value | $ 0 | $ 53,936 |
Exercised (in shares) | (4,167) | 0 |
Vested or expected to vest at December 31, 2017 (in shares) | 1,083,691 | |
Vested or expected, weighted average exercise price (in dollars per share) | $ 2.98 | |
Vested or expected to vest, weighted average remaining life (Year) | 5 years 156 days | |
Vested or expected to vest, aggregate intrinsic value | $ 0 | |
Exercisable at December 31, 2017 (in shares) | 261,294 | |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.96 | |
Exercisable, weighted average remaining life (Year) | 3 years 32 days | |
Exercisable, aggregate intrinsic value | $ 0 | |
The1999 Stock Option Plan [Member] | ||
Outstanding (in shares) | 20,834 | |
Granted (in shares) | ||
Exercise of stock options (in shares) | ||
Forfeited (in shares) | ||
Expired (in shares) | (20,834) | |
Outstanding (in shares) | ||
Exercised (in shares) | ||
The2004 Stock Option Plan [Member] | ||
Outstanding (in shares) | 69,380 | 85,008 |
Granted (in shares) | ||
Exercise of stock options (in shares) | ||
Forfeited (in shares) | ||
Expired (in shares) | (17,084) | (15,628) |
Outstanding (in shares) | 52,296 | 69,380 |
Exercised (in shares) | ||
The 2015 Equity Incentive Plan [Member] | ||
Outstanding (in shares) | 25,003 | |
Granted (in shares) | 64,167 | 27,087 |
Exercise of stock options (in shares) | ||
Forfeited (in shares) | (7,084) | (2,084) |
Expired (in shares) | ||
Outstanding (in shares) | 82,086 | 25,003 |
Exercised (in shares) | ||
Non Plan [Member] | ||
Outstanding (in shares) | 247,280 | 259,088 |
Granted (in shares) | 1,170,000 | |
Exercise of stock options (in shares) | 4,167 | |
Forfeited (in shares) | (65,140) | (8,335) |
Expired (in shares) | (4,862) | (3,473) |
Outstanding (in shares) | 1,343,111 | 247,280 |
Exercised (in shares) | (4,167) |
Note O - Stock Options - Opti70
Note O - Stock Options - Options Outstanding and Exercisable (Details) | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Range of exercise prices, lower range (in dollars per share) | $ 1.90 |
Range of exercise prices, upper range (in dollars per share) | $ 5.04 |
Options outstanding (in shares) | shares | 1,477,493 |
Options exercisable (in shares) | shares | 261,294 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.96 |
Exercise Price Range 1 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 1.90 |
Range of exercise prices, upper range (in dollars per share) | $ 2.50 |
Options outstanding (in shares) | shares | 87,064 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.16 |
Options outstanding, weighted average remaining remaining life (Year) | 4 years 237 days |
Options exercisable (in shares) | shares | 56,422 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 2.16 |
Exercise Price Range 2 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 2.51 |
Range of exercise prices, upper range (in dollars per share) | $ 3.50 |
Options outstanding (in shares) | shares | 1,207,296 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 2.70 |
Options outstanding, weighted average remaining remaining life (Year) | 6 years 54 days |
Options exercisable (in shares) | shares | 21,740 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 3.23 |
Exercise Price Range 3 [Member] | |
Range of exercise prices, lower range (in dollars per share) | 3.51 |
Range of exercise prices, upper range (in dollars per share) | $ 5.04 |
Options outstanding (in shares) | shares | 183,132 |
Options outstanding, weighted average exercise price (in dollars per share) | $ 4.60 |
Options outstanding, weighted average remaining remaining life (Year) | 2 years 281 days |
Options exercisable (in shares) | shares | 183,132 |
Options exercisable, weighted average exercise price (in dollars per share) | $ 4.60 |
Note P - Income Taxes (Details
Note P - Income Taxes (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% | |
Domestic Tax Authority [Member] | Internal Revenue Service (IRS) [Member] | |||
Operating Loss Carryforwards | $ 57,064,000 | ||
Scenario, Forecast [Member] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note P - Income Taxes - Compone
Note P - Income Taxes - Components of Deferred Taxes (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current asset: | ||
Accrued compensation | $ 118,000 | $ 67,000 |
Accounts receivable allowance | 277,000 | 202,000 |
Stock-based compensation | 387,000 | 360,000 |
Basis differences in fixed assets | (18,000) | (8,000) |
Basis differences in intangible assets | 46,000 | 60,000 |
Net operating loss and credit carryforwards | 12,052,000 | 18,597,000 |
Valuation allowances | $ (12,862,000) | $ (19,278,000) |
Note P - Income Taxes - Reconci
Note P - Income Taxes - Reconciliation of the Effective Income Tax Rate to US Federal Statutory Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Federal statutory income tax rate | 34.00% | 34.00% |
Permanent differences | ||
Change in tax laws/tax rate | (13.00%) | |
Effect of net operating loss | (21.00%) | (34.00%) |
Effective tax rate |
Note Q - Profit Sharing Plan (D
Note Q - Profit Sharing Plan (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0 | $ 0 |
Note R - Earnings Per Share (75
Note R - Earnings Per Share (EPS) - Reconciliation of Numerator of Basic and Diluted EPS Calculations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Basic Numerator: | ||
Loss from continuing operations | $ (4,275,338) | $ (4,189,704) |
Convertible preferred stock dividends | (769,158) | (802,500) |
Net loss available to common stockholders (basic and diluted EPS) | $ (5,044,496) | $ (4,992,204) |
Note R - Earnings Per Share (76
Note R - Earnings Per Share (EPS) - Securities Excluded From the Diluted Per Share Calculation (Details) - shares | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | ||||
Antidilutive securities (in shares) | 5,282,060 | 5,435,342 | ||
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Preferred Stock [Member] | ||||
Antidilutive securities (in shares) | 5,264,422 | 5,416,667 | ||
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Employee Stock Option [Member] | ||||
Antidilutive securities (in shares) | 15,529 | 17,657 | ||
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||||
Antidilutive securities (in shares) | 2,109 | 1,018 | ||
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | ||||
Antidilutive securities (in shares) | 2,741,480 | 1,448,008 | ||
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Employee Stock Option [Member] | ||||
Antidilutive securities (in shares) | 1,390,428 | 235,845 | ||
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||||
Antidilutive securities (in shares) | 1,351,052 | 1,212,163 |
Note S - Subsequent Events (Det
Note S - Subsequent Events (Details Textual) - USD ($) | Mar. 28, 2018 | Mar. 23, 2018 | Nov. 13, 2017 | Sep. 22, 2017 | Aug. 09, 2017 | May 11, 2017 | Mar. 15, 2017 | May 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Conversion of Dividends Payable, Shares Issued | 150,000 | |||||||||
Conversion of Dividends Payable, Amount Converted | $ 540,000 | |||||||||
Stock Issued During Period, Shares, Issued for Services | 61,667 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 2.69 | $ 2.74 | ||||||||
Stock Issued During Period As a Commitment Fee, Shares | 55,000 | |||||||||
Director [Member] | ||||||||||
Stock Issued During Period, Shares, Issued for Services | 2,276 | 5,148 | 1,925 | 1,895 | ||||||
Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 212,918 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.96 | |||||||||
Stock Issued During Period As a Commitment Fee, Shares | 762 | |||||||||
Subsequent Event [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||||||
Subsequent Event [Member] | Director [Member] | ||||||||||
Stock Issued During Period, Shares, Issued for Services | 7,659 | |||||||||
Subsequent Event [Member] | Six Non-Employee Members of the Board of Directors [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 9,000 | |||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 1.96 | |||||||||
Subsequent Event [Member] | Six Non-Employee Members of the Board of Directors [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 7 years | |||||||||
Subsequent Event [Member] | Series B-1 Convertible Preferred Stock [Member] | ||||||||||
Preferred Stock Conversion Limitation, Percent | 19.99% | |||||||||
Subsequent Event [Member] | Conversion of Series B-1 Shares into Common Stock [Member] | ||||||||||
Conversion of Stock, Shares Converted | 60,240 | |||||||||
Conversion of Stock, Shares Issued | 1,678,334 | |||||||||
Subsequent Event [Member] | Conversion of Dividends Payable on Series B-1 Preferred Stock to Common Stock [Member] | ||||||||||
Conversion of Dividends Payable, Shares Issued | 115,857 | |||||||||
Conversion of Dividends Payable, Amount Converted | $ 417,084 | |||||||||
Shares Issued, Price Per Share | $ 3.60 |