Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Jun. 05, 2020 | |
Document Information [Line Items] | ||
Entity Registrant Name | BIO KEY INTERNATIONAL INC | |
Entity Central Index Key | 0001019034 | |
Trading Symbol | bkyi | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 21,598,544 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
ASSETS | ||
Cash and cash equivalents | $ 661,937 | $ 79,013 |
Accounts receivable, net | 120,293 | 126,000 |
Due from factor | 130,670 | 110,941 |
Inventory | 397,711 | 429,119 |
Prepaid expenses and other | 166,572 | 108,397 |
Investment – non-marketable security | 512,821 | 512,821 |
Total current assets | 1,990,004 | 1,366,291 |
Resalable software license rights | 68,774 | 73,802 |
Equipment and leasehold improvements, net | 75,597 | 95,509 |
Capitalized contract costs, net | 208,499 | 231,519 |
Deposits and other assets | 8,712 | 8,712 |
Operating lease right-of-use assets | 520,470 | 566,479 |
Intangible assets, net | 147,222 | 154,386 |
Total non-current assets | 1,029,274 | 1,130,407 |
TOTAL ASSETS | 3,019,278 | 2,496,698 |
LIABILITIES | ||
Accounts payable | 616,985 | 844,557 |
Due to related parties | 66,466 | 188,737 |
Accrued liabilities | 515,108 | 572,885 |
Convertible notes payable, net of debt discount and debt issuance costs | 2,301,956 | 2,255,454 |
Deferred revenue | 413,345 | 359,212 |
Operating lease liabilities, current portion | 162,886 | 170,560 |
Total current liabilities | 4,076,746 | 4,391,405 |
Operating lease liabilities, net of current portion | 353,553 | 390,466 |
Total non-current liabilities | 353,553 | 390,466 |
TOTAL LIABILITIES | 4,430,299 | 4,781,871 |
Commitments and Contingencies | ||
STOCKHOLDERS’ DEFICIT | ||
Common stock — authorized, 170,000,000 shares; issued and outstanding; 18,391,122 and 14,411,432 of $.0001 par value at March 31, 2020 and December 31, 2019, respectively | 1,839 | 1,441 |
Additional paid-in capital | 91,793,124 | 87,436,402 |
Accumulated deficit | (93,205,984) | (89,723,016) |
TOTAL STOCKHOLDERS’ DEFICIT | (1,411,021) | (2,285,173) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 3,019,278 | $ 2,496,698 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Common stock, shares authorized (in shares) | 170,000,000 | 170,000,000 |
Common stock, shares issued (in shares) | 18,391,122 | 14,411,432 |
Common stock, shares outstanding (in shares) | 18,391,122 | 14,411,432 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | $ 522,485 | $ 551,623 |
Costs and other expenses | 124,263 | 604,050 |
Gross Profit (Loss) | 398,222 | (52,427) |
Operating Expenses | ||
Selling, general and administrative | 1,381,399 | 1,377,033 |
Research, development and engineering | 336,889 | 374,118 |
Total Operating Expenses | 1,718,288 | 1,751,151 |
Operating loss | (1,320,066) | (1,803,578) |
Other income (expenses) | ||
Interest income | 1 | 70 |
Interest expense | (1,551,141) | |
Loss on extinguishment of debt | (499,076) | |
Total Other Income (Expenses) | (2,050,216) | 70 |
Net loss | (3,370,282) | (1,803,508) |
Deemed dividends related to down-round features | (112,686) | |
Net loss available to common stockholders | $ (3,482,968) | $ (1,803,508) |
Basic & Diluted Loss per Common Share (in dollars per share) | $ (0.23) | $ (0.13) |
Basic & Diluted (in shares) | 15,165,522 | 13,979,318 |
Service [Member] | ||
Revenue | $ 207,523 | $ 241,610 |
Costs and other expenses | 70,445 | 90,829 |
License [Member] | ||
Revenue | 235,345 | 83,208 |
Costs and other expenses | 10,456 | 377,216 |
Hardware [Member] | ||
Revenue | 79,617 | 226,805 |
Costs and other expenses | $ 43,362 | $ 136,005 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Deficit) (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2018 | 13,977,868 | |||
Balance at Dec. 31, 2018 | $ 1,398 | $ 85,599,140 | $ (75,134,316) | $ 10,466,222 |
Share-based compensation | 509,528 | 509,528 | ||
Net loss | (1,803,508) | (1,803,508) | ||
Issuance of common stock for directors’ fees (in shares) | 13,820 | |||
Issuance of common stock for directors’ fees | $ 1 | 16,505 | 16,506 | |
Balance (in shares) at Mar. 31, 2019 | 13,991,688 | |||
Balance at Mar. 31, 2019 | $ 1,399 | 86,125,173 | (76,937,824) | 9,188,748 |
Balance (in shares) at Dec. 31, 2019 | 14,411,432 | |||
Balance at Dec. 31, 2019 | $ 1,441 | 87,436,402 | (89,723,016) | (2,285,173) |
Issuance of common stock pursuant to securities purchase agreements (in shares) | 700,000 | |||
Issuance of common stock pursuant to securities purchase agreements | $ 70 | 1,032,430 | 1,032,500 | |
Commitment fee adjustment | (900,000) | (900,000) | ||
Beneficial conversion feature | 641,215 | 641,215 | ||
Issuance of common stock pursuant to warrant conversion (in shares) | 972,000 | |||
Issuance of common stock pursuant to warrant conversion | $ 97 | 1,457,903 | 1,458,000 | |
Conversion of convertible note payable (in shares) | 2,307,690 | |||
Conversion of convertible note payable | $ 231 | 1,499,769 | 1,500,000 | |
Deemed dividends related to down-round features | 112,686 | (112,686) | ||
Share-based compensation | 512,719 | 512,719 | ||
Net loss | (3,370,282) | (3,370,282) | ||
Balance (in shares) at Mar. 31, 2020 | 18,391,122 | |||
Balance at Mar. 31, 2020 | $ 1,839 | $ 91,793,124 | $ (93,205,984) | $ (1,411,021) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,370,282) | $ (1,803,508) |
Adjustments to reconcile net loss to cash (used in) provided by operating activities: | ||
Depreciation | 19,912 | 19,292 |
Amortization of intangible assets | 7,164 | 3,314 |
Amortization of software license rights | 281,074 | |
Amortization of capitalized contract costs | 36,679 | 33,510 |
Amortization of debt discount | 218,061 | |
Amortization of debt issuance costs | 878,398 | |
Loss on extinguishment of debt | 499,076 | |
Amortization of beneficial conversion feature | 413,687 | |
Interest expense capitalized to note payable | 40,995 | |
Operating leases right-of-use assets | 46,009 | 34,864 |
Stock based directors’ fees | 16,505 | |
Share based compensation for employees and consultants | 512,719 | 509,528 |
Change in assets and liabilities: | ||
Accounts receivable | 5,707 | 833,613 |
Due from factor | (19,729) | (19,142) |
Capitalized contract costs | (13,659) | (13,709) |
Inventory | 31,408 | 17,921 |
Resalable software license rights | 5,028 | 26,130 |
Prepaid expenses and other | (58,175) | (36,928) |
Accounts payable | (227,572) | 124,534 |
Accrued liabilities | (57,777) | 29,764 |
Deferred revenue | 54,133 | 136,631 |
Operating lease liabilities | (44,587) | (32,897) |
Net cash (used in) provided by operating activities | (1,022,805) | 160,496 |
CASH FLOW FROM INVESTING ACTIVITIES: | ||
Purchase of intangible assets | (1,737) | |
Capital expenditures | (23,391) | |
Net cash used in investing activities | (25,128) | |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from issuance of convertible notes | 283,000 | |
Costs to issue convertible notes | (13,000) | |
Proceeds from warrant exercise | 1,458,000 | |
Net repayments of related party loans | (122,271) | |
Net cash provided by financing activities | 1,605,729 | |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 582,924 | 135,368 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 79,013 | 323,943 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 661,937 | 459,311 |
Cash paid for: | ||
Interest | ||
Noncash Investing and financing activities | ||
Deemed dividends related to down-round features | 112,686 | |
Common Stock issued for loan commitment fees | 132,500 | |
Conversion of convertible note payable to common stock | 1,500,000 | |
Beneficial conversion feature | 641,215 | |
Accounting Standards Update 2016-02 [Member] | ||
Noncash Investing and financing activities | ||
Right-of-use asset addition under ASC 842 | 602,937 | |
Operating lease liabilities under ASC 842 | $ 590,342 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Business Description and Accounting Policies [Text Block] | 1. NATURE OF BUSINESS AND BASIS OF PRESENTATION Nature of Business The Company, founded in 1993, Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are not may In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The balance sheet at December 31, 2019 not 10 December 31, 2019, May 14, 2020. Recently Issued Accounting Pronouncements In August 2018, No. 2018 15, 2018 15” 2018 15 December 15, 2019, 2018 15 2018 15 not In June 2016, 2016 13, 326 2016 13, not 2016 13 2016 13 no not may not 2016 13. 2016 13 December 15, 2022 2016 13 Management does not not Reclassifications 2020 |
Note 2 - Going Concern
Note 2 - Going Concern | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Substantial Doubt about Going Concern [Text Block] | 2. GOING CONCERN The Company has incurred significant losses to date, and at March 31, 2020 $93 March 31, 2020, $662,000, $79,000 December 31, 2019. The Company has financed operations 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 estimates that it currently requires approximately $525,000 If the Company is unable to generate sufficient revenue to meet its goals, it will need to obtain additional third No not The accompanying condensed consolidated 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 condensed consolidated financial statements do not |
Note 3 - Revenue From Contracts
Note 3 - Revenue From Contracts With Customers | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 3. REVENUE FROM CONTRACTS WITH CUSTOMERS In accordance with ASC 606, five ● Identify the contract with a customer ● Identify the performance obligations in the contract ● Determine the transaction price ● Allocate the transaction price to performance obligations in the contract ● Recognize revenue when or as the Company satisfies a performance obligation Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the three North America South America EMEA* Asia March 31, 2020 License fees $ 165,235 $ - $ - $ 70,110 $ 235,345 Hardware 56,354 - - 23,263 79,617 Support and Maintenance 196,316 375 3,767 7,065 207,523 Total Revenues $ 417,905 $ 375 $ 3,767 $ 100,438 $ 522,485 North America South America EMEA* Asia March 31, 2019 License fees $ 14,208 $ - $ - $ 69,000 $ 83,208 Hardware 45,981 400 32,918 147,506 226,805 Support and Maintenance 196,076 2,116 36,418 7,000 241,610 Total Revenues $ 256,265 $ 2,516 $ 69,336 $ 223,506 $ 551,623 *EMEA – Europe, Middle East, Africa All of the Company's performance obligations, and associated revenue, are generally transferred to customers at a point in time, with the exception of support and maintenance, and professional services, which are generally transferred to the customer over time. Software licenses Software license revenue consist of fees for perpetual and software as a service (SaaS) software licenses for one Hardware Hardware revenue consists of fees for associated equipment sold with or without a software license arrangement, such as servers, locks and fingerprint readers. Customers are not third may Support and Maintenance Support and Maintenance revenue consists of fees for unspecified upgrades, telephone assistance and bug fixes. The Company satisfies its Support and Maintenance performance obligation by providing “stand-ready” assistance as required over the contract period. The Company records deferred revenue (contract liability) at time of prepayment until the contracts term occurs. Revenue is recognized over time on a ratable basis over the contract term. Support and Maintenance contracts are up to one 18% Professional services revenues consist primarily of fees for deployment and optimization services, as well as training. The majority of the Company’s consulting contracts are billed on a time and materials basis, and revenue is recognized based on the amount billable to the customer in accordance with practical expedient ASC 606 10 55 18. Contracts with Multiple Performance Obligations Some contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. The standalone selling prices are determined based on overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts, the cloud applications sold, customer demographics, geographic locations, and the number and types of users within the contracts. The Company considered several factors in determining that control transfers to the customer upon shipment of hardware and availability of download of software. These factors include that legal title transfers to the customer, the Company has a present right to payment, and the customer has assumed the risks and rewards of ownership. Accounts receivable from customers are typically due within 30 not Costs to Obtain and Fulfill a Contract Costs to obtain and fulfill a contract are predominantly sales commissions earned by the sales force and are considered incremental and recoverable costs of obtaining a contract with a customer. These costs are deferred and then amortized over a period of benefit determined to be four Transaction Price Allocated to the Remaining Performance Obligations ASC 606 not March 31, 2020. ● The performance obligation is part of a contract that has an original expected duration of one 606 10 50 14. At March 31, 2020 December 31, 2019, one Revenue recognized during the three March 31, 2020 $72,000. not $413,345 $359,212 March 31, 2020 December 31, 2019, |
Note 4 - Accounts Receivable
Note 4 - Accounts Receivable | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. 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. As a result of the payment delays from a large customer, the Company has reserved $1,720,000 March 31, 2020 December 31, 2019, 100% December 2018. 606 $1.1 2018. December 31, 2019, second March 2019 $555,555 December 31, 2019, not Accounts receivable at March 31, 2020 December 31, 2019 March 31, December 31, 20 20 201 9 Accounts receivable - current $ 134,078 $ 139,785 Accounts receivable - non current 1,720,000 1,720,000 1,854,078 1,859,785 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 120,293 $ 126,000 |
Note 5 - Share Based Compensati
Note 5 - Share Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 5. SHARE BASED COMPENSATION The following table presents share-based compensation expenses for continuing operations included in the Company’s unaudited condensed consolidated statements of operations: Three Months Ended March 31, 20 20 201 9 Selling, general and administrative $ 441,308 $ 453,086 Research, development and engineering 71,411 72,947 $ 512,719 $ 526,033 |
Note 6 - Factoring
Note 6 - Factoring | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Factoring [Text Block] | 6. FACTORING Due from factor consisted of the following as of: March 31, December 31, 20 20 201 9 Original invoice value $ 243,170 $ 233,005 Factored amount (112,500 ) (122,064 ) Balance due from factor $ 130,670 $ 110,941 The Company entered into an accounts receivable factoring arrangement with a financial institution (the “Factor”) expiring on October 31, 2020. $150,000 35% 75% 2.75% 15% Three Months ended March 31, 20 20 201 9 Factoring fees $ 32,000 $ 52,797 |
Note 7 - Inventory
Note 7 - Inventory | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 7. INVENTORY Inventory is stated at the lower of cost, determined on a first first March 31, December 31, 20 20 201 9 Finished goods $ 256,353 $ 287,761 Fabricated assemblies 141,358 141,358 Total inventory $ 397,711 $ 429,119 |
Note 8 - Resalable Software Lic
Note 8 - Resalable Software License Rights | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | 8. RESALABLE SOFTWARE LICENSE RIGHTS On November 11, 2015, $12,000,000. The Company initially 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. Through December 31, 2018, 1 2 ten 3 January 1, 2019, January 1, 2019. During the fourth 2019, no $6,957,516 fourth 2019, not $281,074 $176 three March 31, 2019 On December 31, 2015, third $180,000 two $5,028 $25,954 three March 31, 2020 March 31, 2019, $111,226 $68,774 $73,802 March 31, 2020 December 31, 2019, |
Note 9 - Investment
Note 9 - Investment | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | 9. INVESTMENT During 2019, 4,000,000 $512,821 March 31, 2020 December 31, 2019. one June 2020, 5% 20,000,000 |
Note 10 - Related Party Transac
Note 10 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 10. Related Party TRANSACTIONS The Company has received a series of non-interest-bearing advances from Mr. Wong Kwok Fong, a director of the Company, and Mr. Michael DePasquale, the Company’s Chief Executive Officer, to pay current liabilities. The balance of the advances as at March 31, 2020 $66,466 $0, December 31, 2019 $74,737 $114,000, Sales Incentive Agreement with TTI On March 25, 2020, 1. The term of the agreement is one one 2. For each $5,000,000 $20,000,000 first 20% $500,000 500,000 3. In the event that TTI generates revenue in excess of $20,000,000 first five 100,000 $1.50 $1,000,000 $20,000,000 $25,000,000 In no 2,000,000 500,000 There have been no three March 31, 2020. |
Note 11 - Convertible Notes Pay
Note 11 - Convertible Notes Payable | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 11. CONVERTIBLE NOTES PAYABLE Convertible notes payable as of March 31, 2020 December 31, 2019 March 31, December 31, 2020 2019 Secured Purchase Agreement dated July 10, 2019 $ 2,061,472 $ 2,255,454 January 2020 Note 143,913 - February 2020 Note 96,571 - Convertible notes payable, net $ 2,301,956 $ 2,255,454 Securities Purchase Agreement dated July 10, 2019 On July 10, 2019, $3,060,000 $2,550,000 $510,000. $918,000 180 $1,071,000 270 12 The Original Note was secured by a lien on substantially all of the Company’s assets and properties and was convertible at the option of the Investor in shares of common stock at a fixed conversion price of $1.50 25% In connection with the closing of the Original Note, the Company issued a five 2,000,000 $1.50 $50,000 266,667 $400,000 $193,500 $71,330. $595,662 On March 12, 2020, $3,789,000 April 13, 2020. $0.65 $729,000 $0.76, $0.11 $641,215 March 31, 2020, $1,500,000 2,307,690 On April 12, 2020, May 6, 2020, June 12, 2020 $0.65 June 12, 2020. $3,500,000 5,384,610 $289,000. Until the second 20% Secured convertible note payable relating to the Amended and Original Notes, net of unamortized debt discount and debt issuance costs consisted of: March 31, December 31, 2020 2019 Principal amount $ 3,789,000 $ 3,060,000 Less: conversion of principal into shares of common stock (1,500,000 ) - Net Principal amount 2,289,000 3,060,000 Less: unamortized debt discount and beneficial conversion feature (227,528 ) (574,330 ) Less: unamortized debt issuance costs - (230,216 ) Notes payable, net of unamortized debt discount and debt issuance costs $ 2,061,472 $ 2,255,454 January 2020 On January 13, 2020, $157,000 10% “January 2020 June 13, 2020 $1.50 January 2020 10% 30%. 650,000 $75,000 50,000 January 2020 $7,000 January 2020 Convertible note payable relating to the January 2020 March 31, December 31, 2020 2019 Principal amount $ 157,000 $ - Add: prepayment premium 23,550 - Add: accrued interest 3,270 - Less: unamortized debt issuance costs (39,907 ) - Notes payable, net of unamortized debt issuance costs $ 143,913 $ - February 2020 On February 13, 2020, $126,000 10% “February 2020 July 13, 2020 $1.15 February 2020 March 12, 2020, $0.65 $70,998. February 2020 10% 30%. 550,000 $57,500 50,000 February 2020 50,000 $6,000 February 2020 Secured convertible note payable relating to the February 2020 March 31, December 31, 2020 2019 Principal amount $ 126,000 $ - Add: prepayment premium 12,600 - Add: accrued interest 1,575 - Less: unamortized debt issuance costs (43,604 ) - Notes payable, net of unamortized debt issuance costs $ 96,571 $ - |
Note 12 - Leases
Note 12 - Leases | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 12. LEASES The Company’s leases office space in New Jersey, Hong Kong and Minnesota with lease termination dates of 2023, 2020, 2022, three March 31, 20 20 Lease cost Operating lease cost $ 53,723 Total lease cost $ 53,723 Balance sheet information Operating ROU assets $ 520,470 Operating lease liabilities, current portion $ 162,886 Operating lease liabilities, non-current portion 353,553 Total operating lease liabilities $ 516,439 Weighted average remaining lease term (in years) – operating leases 3.13 Weighted average discount rate – operating leases 5.50 % Supplemental cash flow information related to leases were as follows, for the three March 31, 2019: Cash paid for amounts included in the measurement of operating lease liabilities $ 52,301 Maturities of operating lease liabilities were as follows: 2020 (remaining nine months) $ 145,424 2021 170,853 2022 160,817 2023 89,226 Total future lease payments 566,320 Less: imputed interest (49,881 ) Total $ 516,439 |
Note 13 - Earnings Per Share ("
Note 13 - Earnings Per Share ("EPS") | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 13. 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 convertible preferred stock. The basic and diluted EPS calculations was as follows for the three March 31, 2020 2019: Three Months ended 2020 2019 Basic and Diluted Numerator: Net loss $ (3,370,282 ) $ (1,803,508 ) Deemed dividends related to down-round features (112,686 ) - Net loss available to common stockholders (basic and diluted) $ (3,482,968 ) $ (1,803,508 ) 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 due to the net losses for the three March 31, 2020 2019: Three Months ended 2020 2019 Stock options 476 - Warrants 11,121 - Convertible Notes 3,735,770 - Total 3,747,367 - The following table sets forth options and warrants which were excluded from the diluted per share calculation because the exercise price was greater than the average market price of the common shares: Three Months Ended 2020 2019 Stock options 1,640,964 1,794,737 Warrants 2,201,889 3,780,976 Total 3,842,853 5,575,713 |
Note 14 - Stockholders' Equity
Note 14 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 14. STOCKHOLDERS’ EQUITY Preferred Stock 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 March 31, 2020, 100,000 1 105,000 1 no March 31, 2020 December 31, 2019. Securities Purchase Agreement dated November 13, 2014 Pursuant to a Securities Purchase Agreement, dated November 13, 2014, 664,584 996,877 $1,595,000. The warrants expired in November 2019. Securities Purchase Agreement dated September 23, 2015 On September 23, 2015, “2015 69,445 $3.60 five The 2015 $3.60 not On August 24, 2018 $1.50 2015 2015 69,445 166,668 $3.60 $1.50 On February 14, 2020, February 2020 $1.15 $0.65 2015 2015 384,618, $0.65 $41,688. Common Stock On March 21 28, 2019, 13,820 $16,506. no three March 31, 2020. Issuances of Stock Options On March 21, 2019, 235,334 three seven $1.18. not three March 31, 2020. |
Note 15 - Fair Values of Financ
Note 15 - Fair Values of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 15. FAIR VALUES OF FINANCIAL INSTRUMENTS Cash and cash equivalents, accounts receivable, due from factor, accounts payable and accrued liabilities are carried at, or approximate, fair value because of their short-term nature. The carrying values of the convertible debt and operating lease obligation approximated their fair values as of March 31, 2020 December 31, 2019 |
Note 16 - Major Customers and A
Note 16 - Major Customers and Accounts Receivables | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Concentration Risk Disclosure [Text Block] | 16. MAJOR CUSTOMERS AND ACCOUNTS RECEIVABLES For the three March 31, 2020 2019, three 71% two 56% 37% March 31, 2020. December 31, 2019, three 18%, 16% 14% |
Note 17 - Subsequent Events
Note 17 - Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 17. SUBSEQUENT EVENTS Refer to Note 11 On April 2, 2020, 6,850 5,000 three On April 20, 2020, $340,000 six not 1% November 20, 2022. On May 6, 2020, $2,415,000 $2,100,000 five $268,333 seven twelfth $1.16 $133,333 114,943 $1.16. 1,900,000 $1.16 7% On May 12, 2020, 7,077 125,000 On May 14, 2020, 1,632 Subsequent to period-end, due to the effects of the worldwide coronavirus pandemic, the Company is closely monitoring its operations, liquidity, and capital resources. The COVID- 19 not The Company has reviewed subsequent events through the date of this filing. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements include the accounts of BIO-key International, Inc. and its wholly-owned subsidiary (collectively, the “Company” or “BIO-key”) and are stated in conformity with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). The operating results for interim periods are not may In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all necessary adjustments, consisting only of those of a recurring nature, and disclosures to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The balance sheet at December 31, 2019 not 10 December 31, 2019, May 14, 2020. |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued Accounting Pronouncements In August 2018, No. 2018 15, 2018 15” 2018 15 December 15, 2019, 2018 15 2018 15 not In June 2016, 2016 13, 326 2016 13, not 2016 13 2016 13 no not may not 2016 13. 2016 13 December 15, 2022 2016 13 Management does not not |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassifications 2020 |
Note 3 - Revenue From Contrac_2
Note 3 - Revenue From Contracts With Customers (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | North America South America EMEA* Asia March 31, 2020 License fees $ 165,235 $ - $ - $ 70,110 $ 235,345 Hardware 56,354 - - 23,263 79,617 Support and Maintenance 196,316 375 3,767 7,065 207,523 Total Revenues $ 417,905 $ 375 $ 3,767 $ 100,438 $ 522,485 North America South America EMEA* Asia March 31, 2019 License fees $ 14,208 $ - $ - $ 69,000 $ 83,208 Hardware 45,981 400 32,918 147,506 226,805 Support and Maintenance 196,076 2,116 36,418 7,000 241,610 Total Revenues $ 256,265 $ 2,516 $ 69,336 $ 223,506 $ 551,623 |
Note 4 - Accounts Receivable (T
Note 4 - Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 20 20 201 9 Accounts receivable - current $ 134,078 $ 139,785 Accounts receivable - non current 1,720,000 1,720,000 1,854,078 1,859,785 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 120,293 $ 126,000 |
Note 5 - Share Based Compensa_2
Note 5 - Share Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | Three Months Ended March 31, 20 20 201 9 Selling, general and administrative $ 441,308 $ 453,086 Research, development and engineering 71,411 72,947 $ 512,719 $ 526,033 |
Note 6 - Factoring (Tables)
Note 6 - Factoring (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 20 20 201 9 Accounts receivable - current $ 134,078 $ 139,785 Accounts receivable - non current 1,720,000 1,720,000 1,854,078 1,859,785 Allowance for doubtful accounts - current (13,785 ) (13,785 ) Allowance for doubtful accounts - non current (1,720,000 ) (1,720,000 ) (1,733,785 ) (1,733,785 ) Accounts receivable, net of allowances for doubtful accounts $ 120,293 $ 126,000 |
Factoring Fees [Table Text Block] | Three Months ended March 31, 20 20 201 9 Factoring fees $ 32,000 $ 52,797 |
Factored Accounts Receivable [Member] | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | March 31, December 31, 20 20 201 9 Original invoice value $ 243,170 $ 233,005 Factored amount (112,500 ) (122,064 ) Balance due from factor $ 130,670 $ 110,941 |
Note 7 - Inventory (Tables)
Note 7 - Inventory (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | March 31, December 31, 20 20 201 9 Finished goods $ 256,353 $ 287,761 Fabricated assemblies 141,358 141,358 Total inventory $ 397,711 $ 429,119 |
Note 11 - Convertible Notes P_2
Note 11 - Convertible Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Convertible Debt [Table Text Block] | March 31, December 31, 2020 2019 Secured Purchase Agreement dated July 10, 2019 $ 2,061,472 $ 2,255,454 January 2020 Note 143,913 - February 2020 Note 96,571 - Convertible notes payable, net $ 2,301,956 $ 2,255,454 March 31, December 31, 2020 2019 Principal amount $ 3,789,000 $ 3,060,000 Less: conversion of principal into shares of common stock (1,500,000 ) - Net Principal amount 2,289,000 3,060,000 Less: unamortized debt discount and beneficial conversion feature (227,528 ) (574,330 ) Less: unamortized debt issuance costs - (230,216 ) Notes payable, net of unamortized debt discount and debt issuance costs $ 2,061,472 $ 2,255,454 March 31, December 31, 2020 2019 Principal amount $ 157,000 $ - Add: prepayment premium 23,550 - Add: accrued interest 3,270 - Less: unamortized debt issuance costs (39,907 ) - Notes payable, net of unamortized debt issuance costs $ 143,913 $ - March 31, December 31, 2020 2019 Principal amount $ 126,000 $ - Add: prepayment premium 12,600 - Add: accrued interest 1,575 - Less: unamortized debt issuance costs (43,604 ) - Notes payable, net of unamortized debt issuance costs $ 96,571 $ - |
Note 12 - Leases (Tables)
Note 12 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Lessee, Operating Lease, Costs, Assets and Liabilities [Table Text Block] | March 31, 20 20 Lease cost Operating lease cost $ 53,723 Total lease cost $ 53,723 Balance sheet information Operating ROU assets $ 520,470 Operating lease liabilities, current portion $ 162,886 Operating lease liabilities, non-current portion 353,553 Total operating lease liabilities $ 516,439 Weighted average remaining lease term (in years) – operating leases 3.13 Weighted average discount rate – operating leases 5.50 % |
Lessee, Operating Lease, Supplemental Cash Flow Information [Table Text Block] | Cash paid for amounts included in the measurement of operating lease liabilities $ 52,301 |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | 2020 (remaining nine months) $ 145,424 2021 170,853 2022 160,817 2023 89,226 Total future lease payments 566,320 Less: imputed interest (49,881 ) Total $ 516,439 |
Note 13 - Earnings Per Share _2
Note 13 - Earnings Per Share ("EPS") (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months ended 2020 2019 Basic and Diluted Numerator: Net loss $ (3,370,282 ) $ (1,803,508 ) Deemed dividends related to down-round features (112,686 ) - Net loss available to common stockholders (basic and diluted) $ (3,482,968 ) $ (1,803,508 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months ended 2020 2019 Stock options 476 - Warrants 11,121 - Convertible Notes 3,735,770 - Total 3,747,367 - Three Months Ended 2020 2019 Stock options 1,640,964 1,794,737 Warrants 2,201,889 3,780,976 Total 3,842,853 5,575,713 |
Note 2 - Going Concern (Details
Note 2 - Going Concern (Details Textual) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Retained Earnings (Accumulated Deficit), Ending Balance | $ (93,205,984) | $ (89,723,016) | ||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 661,937 | $ 79,013 | $ 459,311 | $ 323,943 |
Monthly Cash Requirement to Conduct Operations and Pay Dividend Obligations | $ 525,000 |
Note 3 - Revenue From Contrac_3
Note 3 - Revenue From Contracts With Customers (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Percentage of Support and Maintenance Revenue to License Cost | 18.00% | ||
Capitalized Contract Cost, Amortization Period (Year) | 4 years | ||
Contract with Customer, Liability, Revenue Recognized | $ 72,000 | $ 0 | |
Contract with Customer, Liability, Total | $ 413,345 | $ 359,212 |
Note 3 - Revenue From Contrac_4
Note 3 - Revenue From Contracts With Customers - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 522,485 | $ 551,623 | |
North America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 417,905 | 256,265 | |
South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 375 | 2,516 | |
EMEA [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 3,767 | 69,336 |
Asia [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 100,438 | 223,506 | |
License [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 235,345 | 83,208 | |
License [Member] | North America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 165,235 | 14,208 | |
License [Member] | South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | |||
License [Member] | EMEA [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | [1] | ||
License [Member] | Asia [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 70,110 | 69,000 | |
Hardware [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 79,617 | 226,805 | |
Hardware [Member] | North America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 56,354 | 45,981 | |
Hardware [Member] | South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 400 | ||
Hardware [Member] | EMEA [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | [1] | 32,918 | |
Hardware [Member] | Asia [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 23,263 | 147,506 | |
Maintenance [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 207,523 | 241,610 | |
Maintenance [Member] | North America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 196,316 | 196,076 | |
Maintenance [Member] | South America [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 375 | 2,116 | |
Maintenance [Member] | EMEA [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | 3,767 | 36,418 | |
Maintenance [Member] | Asia [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 7,065 | $ 7,000 | |
[1] | EMEA - Europe, Middle East, Africa |
Note 4 - Accounts Receivable (D
Note 4 - Accounts Receivable (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss, Noncurrent | $ 1,720,000 | $ 1,720,000 | ||
Percentage of Remaining Balance Owned Reserved | 100.00% | 100.00% | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 522,485 | $ 551,623 | ||
License [Member] | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 235,345 | 83,208 | ||
License [Member] | CHINA | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,100,000 | |||
Receivables, Net, Current, Total | $ 555,555 | |||
Accounts Receivable, Allowance for Credit Loss, Writeoff | $ 555,555 |
Note 4 - Accounts Receivable -
Note 4 - Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts receivable - current | $ 134,078 | $ 139,785 |
Accounts receivable - non current | 1,720,000 | 1,720,000 |
Accounts Receivable, before Allowance for Credit Loss | 1,854,078 | 1,859,785 |
Allowance for doubtful accounts - current | (13,785) | (13,785) |
Allowance for doubtful accounts - non current | (1,720,000) | (1,720,000) |
Accounts Receivable, Allowance for Credit Loss, Ending Balance | (1,733,785) | (1,733,785) |
Accounts receivable, net of allowances for doubtful accounts | $ 120,293 | $ 126,000 |
Note 5 - Share Based Compensa_3
Note 5 - Share Based Compensation - Expenses for Continuing Operations (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based compensation expense | $ 512,719 | $ 526,033 |
Selling, General and Administrative Expenses [Member] | ||
Share-based compensation expense | 441,308 | 453,086 |
Research and Development Expense [Member] | ||
Share-based compensation expense | $ 71,411 | $ 72,947 |
Note 6 - Factoring (Details Tex
Note 6 - Factoring (Details Textual) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
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 6 - Factoring - Due From F
Note 6 - Factoring - Due From Factor (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Original invoice value | $ 243,170 | $ 233,005 |
Factored amount | (112,500) | (122,064) |
Balance due from factor | $ 130,670 | $ 110,941 |
Note 6 - Factoring - Fees (Deta
Note 6 - Factoring - Fees (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Factoring fees | $ 32,000 | $ 52,797 |
Note 7 - Inventory - Components
Note 7 - Inventory - Components of Inventory (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Finished goods | $ 256,353 | $ 287,761 |
Fabricated assemblies | 141,358 | 141,358 |
Total inventory | $ 397,711 | $ 429,119 |
Note 8 - Resalable Software L_2
Note 8 - Resalable Software License Rights (Details Textual) - USD ($) | Dec. 31, 2015 | Nov. 11, 2015 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Mar. 31, 2017 |
Payments to Acquire Intangible Assets | $ 1,737 | |||||
Asset Impairment Charges, Total | $ 6,957,516 | |||||
Amortization of Intangible Assets, Total | 7,164 | 3,314 | ||||
Software License Rights [Member] | ||||||
Payments to Acquire Intangible Assets | $ 12,000,000 | |||||
Finite-Lived Intangible Asset, Useful Life (Year) | 10 years | |||||
Amortization of Intangible Assets, Total | 281,074 | 176 | ||||
The 2015 Software License [Member] | ||||||
Amortization of Intangible Assets, Total | 5,028 | $ 25,954 | ||||
Payments to Acquire Software | $ 180,000 | |||||
Cumulative Amount of Amortization Expense, Net of Credits | 111,226 | |||||
Software License Rights | $ 68,774 | $ 73,802 |
Note 9 - Investment (Details Te
Note 9 - Investment (Details Textual) | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019HKD ($) | |
Debt Securities, Held-to-maturity, Current | $ 512,821 | $ 512,821 | $ 4,000,000 |
Investment in Held-to-maturity Debt Securities, Term (Year) | 1 year | ||
Investment in Held-to-maturity Debt Securities, Interest Rate | 5.00% | 5.00% | |
Limit of Bond | $ 20,000,000 |
Note 10 - Related Party Trans_2
Note 10 - Related Party Transactions (Details Textual) - USD ($) | Mar. 25, 2020 | Mar. 31, 2020 | Feb. 14, 2020 | Dec. 31, 2019 | Nov. 11, 2015 |
Due to Related Parties, Current, Total | $ 66,466 | $ 188,737 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.65 | $ 3.60 | |||
Technology Transfer Institute [Member] | Sales Incentive Agreement With TTI [Member] | |||||
Related Party Agreement, Term (Year) | 1 year | ||||
Related Party Agreement, Term, Automatic Extension (Year) | 1 year | ||||
Related Party Transaction, Maximum Revenue to Trigger Payment of Sales Incentive Fee | $ 20,000,000 | ||||
Related Party Transaction, Revenue to Trigger Payment of Sales Incentive Fee, Percent of Net Income, Minimum | 20.00% | ||||
Related Party Transaction, Sales Incentive Fee For Each 5 Million Revenue | $ 500,000 | ||||
Stock Issuable for Sales Incentive Fee Per Each 5 Million Revenue (in shares) | 500,000 | ||||
Related Party Transaction, Maximum Revenue, Warrants Issuable | $ 25,000,000 | ||||
Technology Transfer Institute [Member] | Sales Incentive Agreement With TTI [Member] | Maximum [Member] | |||||
Stock Issuable for Sales Incentive Agreement (in shares) | 2,000,000 | ||||
Technology Transfer Institute [Member] | Sales Incentive Agreement With TTI [Member] | Warrants Issuable for Each 1 Million Revenue in Excess of 20 Million [Member] | |||||
Warrants and Rights Outstanding, Term (Year) | 5 years | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 100,000 | ||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1.50 | ||||
Technology Transfer Institute [Member] | Sales Incentive Agreement With TTI [Member] | Warrants Issuable for Sales Incentive Agreement [Member] | Maximum [Member] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 500,000 | ||||
Accounts Payable [Member] | Mr. Wong Kwok Fong [Member] | |||||
Due to Related Parties, Current, Total | 66,466 | 74,737 | |||
Accrued Liabilities (Other) [Member] | Mr. Michael DePasquale [Member] | |||||
Due to Related Parties, Current, Total | $ 0 | $ 114,000 |
Note 11 - Convertible Notes P_3
Note 11 - Convertible Notes Payable (Details Textual) - USD ($) | Mar. 31, 2020 | Mar. 12, 2020 | Feb. 13, 2020 | Jan. 13, 2020 | Jul. 10, 2019 | Jun. 08, 2020 | Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | May 06, 2020 | Feb. 14, 2020 | Dec. 31, 2019 | Nov. 11, 2015 |
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.65 | $ 3.60 | |||||||||||
Payments of Stock Issuance Costs, Commitment Fees | $ 50,000 | ||||||||||||
Stock Issued During Period, Shares, Issued for Due Diligence Fee (in shares) | 266,667 | ||||||||||||
Stock Issued During Period, Value, Issued for Due Diligence Fee | $ 400,000 | ||||||||||||
Payments of Stock Issuance Costs, Banker Fees | 193,500 | ||||||||||||
Payments of Stock Issuance Costs, Legal Fees | 71,330 | ||||||||||||
Class of Warrant or Right, Recorded as Debt Discount | $ 595,662 | ||||||||||||
Share Price (in dollars per share) | $ 0.76 | ||||||||||||
Debt Conversion, Original Debt, Amount | $ 1,500,000 | ||||||||||||
Notes Payable, Current, Total | $ 2,301,956 | $ 2,301,956 | $ 2,301,956 | $ 2,255,454 | |||||||||
Conversion of Senior Secured Convertible Note to Common Stock [Member] | |||||||||||||
Debt Conversion, Original Debt, Amount | $ 1,500,000 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 2,307,690 | ||||||||||||
Conversion of Senior Secured Convertible Note to Common Stock [Member] | Subsequent Event [Member] | |||||||||||||
Debt Conversion, Original Debt, Amount | $ 3,500,000 | ||||||||||||
Debt Conversion, Converted Instrument, Shares Issued (in shares) | 5,384,610 | ||||||||||||
Investor Warrant [Member] | |||||||||||||
Warrants and Rights Outstanding, Term (Year) | 5 years | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 2,000,000 | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1.50 | ||||||||||||
Class of Warrant or Rights, Maximum Percentage of Securities Called by Warrants or Rights | 20.00% | ||||||||||||
Senior Secured Convertible Note [Member] | Subsequent Event [Member] | |||||||||||||
Debt Instrument, Face Amount | $ 2,415,000 | ||||||||||||
Share Price (in dollars per share) | $ 1.16 | ||||||||||||
Debt Instrument, Fee Amount | $ 133,333 | ||||||||||||
The Note [Member] | Senior Secured Convertible Note [Member] | |||||||||||||
Debt Instrument, Face Amount | $ 3,060,000 | ||||||||||||
Proceeds from Debt, Net of Issuance Costs | 2,550,000 | ||||||||||||
Debt Instrument, Unamortized Discount, Total | 510,000 | ||||||||||||
Debt Instrument, Periodic Payment, Principal due in 180 Days | 918,000 | ||||||||||||
Debt Instrument, Periodic Payment, Principal due in 270 Days | $ 1,071,000 | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 1.50 | ||||||||||||
Debt Instrument, Convertible, Percent | 25.00% | ||||||||||||
Amended Note [Member] | Senior Secured Convertible Note [Member] | |||||||||||||
Debt Instrument, Face Amount | $ 3,789,000 | ||||||||||||
Debt Instrument, Unamortized Discount, Total | $ 641,215 | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 0.65 | $ 0.65 | |||||||||||
Interest Expense, Debt, Total | $ 729,000 | ||||||||||||
Debt Instrument, Convertible, Beneficial Conversion Feature, Per Share (in dollars per share) | $ 0.11 | ||||||||||||
Amended Note [Member] | Senior Secured Convertible Note [Member] | Subsequent Event [Member] | |||||||||||||
Notes Payable, Current, Total | $ 289,000 | ||||||||||||
January 2020 Note [Member] | Secured Redeemable Convertible Note [Member] | |||||||||||||
Debt Instrument, Face Amount | $ 157,000 | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 1.50 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||||||
Stock Issued During Period, Shares, Commitment Fees (in shares) | 650,000 | ||||||||||||
Debt Instrument, Fee Amount | $ 75,000 | ||||||||||||
Debt Instrument, Covenant, Shares to be Paid, Commitment Fee, Repaid Prior to Maturity (in shares) | 50,000 | ||||||||||||
Legal Fees | $ 7,000 | ||||||||||||
January 2020 Note [Member] | Secured Redeemable Convertible Note [Member] | Minimum [Member] | |||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 10.00% | ||||||||||||
January 2020 Note [Member] | Secured Redeemable Convertible Note [Member] | Maximum [Member] | |||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 30.00% | ||||||||||||
February 2020 Note [Member] | Secured Redeemable Convertible Note [Member] | |||||||||||||
Debt Instrument, Face Amount | $ 126,000 | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 0.65 | $ 1.15 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | ||||||||||||
Stock Issued During Period, Shares, Commitment Fees (in shares) | 550,000 | 50,000 | |||||||||||
Debt Instrument, Fee Amount | $ 57,500 | ||||||||||||
Debt Instrument, Covenant, Shares to be Paid, Commitment Fee, Repaid Prior to Maturity (in shares) | 50,000 | ||||||||||||
Legal Fees | $ 6,000 | ||||||||||||
Debt Instrument, Deemed Dividend Expense | $ 70,998 | ||||||||||||
February 2020 Note [Member] | Secured Redeemable Convertible Note [Member] | Minimum [Member] | |||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 10.00% | ||||||||||||
February 2020 Note [Member] | Secured Redeemable Convertible Note [Member] | Maximum [Member] | |||||||||||||
Debt Instrument, Convertible, Premium Payment Percentage | 30.00% |
Note 11 - Convertible Notes P_4
Note 11 - Convertible Notes Payable - Convertible Notes Payable (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Senior Secured Convertible Note [Member] | The Amended and Original Notes [Member] | ||
Convertible notes payable, net | $ 2,061,472 | $ 2,255,454 |
Principal amount | 3,789,000 | 3,060,000 |
Less: conversion of principal into shares of common stock | (1,500,000) | |
Net Principal amount | 2,289,000 | 3,060,000 |
Less: unamortized debt discount and beneficial conversion feature | (227,528) | (574,330) |
Less: unamortized debt issuance costs | (230,216) | |
Notes payable, net of unamortized debt discount and debt issuance costs | 2,061,472 | 2,255,454 |
Principal amount | 2,289,000 | 3,060,000 |
Secured Redeemable Convertible Note [Member] | ||
Convertible notes payable, net | 2,301,956 | |
Notes payable, net of unamortized debt discount and debt issuance costs | 2,301,956 | |
Secured Redeemable Convertible Note [Member] | January 2020 Note [Member] | ||
Convertible notes payable, net | 143,913 | |
Net Principal amount | 157,000 | |
Less: unamortized debt issuance costs | (39,907) | |
Notes payable, net of unamortized debt discount and debt issuance costs | 143,913 | |
Principal amount | 157,000 | |
Add: prepayment premium | 23,550 | |
Add: accrued interest | 3,270 | |
Secured Redeemable Convertible Note [Member] | February 2020 Note [Member] | ||
Convertible notes payable, net | 96,571 | |
Net Principal amount | 126,000 | |
Less: unamortized debt issuance costs | (43,604) | |
Notes payable, net of unamortized debt discount and debt issuance costs | 96,571 | |
Principal amount | 126,000 | |
Add: prepayment premium | 12,600 | |
Add: accrued interest | $ 1,575 | |
Convertible Debt [Member] | ||
Convertible notes payable, net | 2,255,454 | |
Notes payable, net of unamortized debt discount and debt issuance costs | $ 2,255,454 |
Note 12 - Leases - Operating Le
Note 12 - Leases - Operating Lease Balance Sheet Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Operating lease cost | $ 53,723 | |
Total lease cost | 53,723 | |
Operating ROU assets | 520,470 | |
Operating lease liabilities, current portion | 162,886 | $ 170,560 |
Operating lease liabilities, non-current portion | 353,553 | $ 390,466 |
Total | $ 516,439 | |
Weighted average remaining lease term (in years) – operating leases (Year) | 3 years 47 days | |
Weighted average discount rate – operating leases | 5.50% |
Note 12 - Leases - Supplemental
Note 12 - Leases - Supplemental Cash Flow Information Related to Leases (Details) | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of operating lease liabilities | $ 52,301 |
Note 12 - Leases - Operating _2
Note 12 - Leases - Operating Lease Liability Maturity (Details) | Mar. 31, 2020USD ($) |
2020 (remaining nine months) | $ 145,424 |
2021 | 170,853 |
2022 | 160,817 |
2023 | 89,226 |
Total future lease payments | 566,320 |
Less: imputed interest | (49,881) |
Total | $ 516,439 |
Note 13 - Earnings Per Share _3
Note 13 - Earnings Per Share ("EPS") - Reconciliation of Numerator of Basic and Diluted EPS Calculations (Details) - USD ($) | Feb. 14, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Net loss | $ (3,370,282) | $ (1,803,508) | |
Deemed dividends related to down-round features | $ (41,688) | (112,686) | |
Net loss available to common stockholders (basic and diluted) | $ (3,482,968) | $ (1,803,508) |
Note 13 - Earnings Per Share _4
Note 13 - Earnings Per Share ("EPS") - Securities Excluded From the Diluted Per Share Calculation (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 3,747,367 | |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Share-based Payment Arrangement, Option [Member] | ||
Antidilutive securities (in shares) | 476 | |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||
Antidilutive securities (in shares) | 11,121 | |
Exercise Price Greater Than Average Market Price Of Common Shares [Member] | Convertible Debt Securities [Member] | ||
Antidilutive securities (in shares) | 3,735,770 | |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | ||
Antidilutive securities (in shares) | 3,842,853 | 5,575,713 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Share-based Payment Arrangement, Option [Member] | ||
Antidilutive securities (in shares) | 1,640,964 | 1,794,737 |
Exercise Price Less Than Average Market Price Of Common Shares [Member] | Warrant [Member] | ||
Antidilutive securities (in shares) | 2,201,889 | 3,780,976 |
Note 14 - Stockholders' Equity
Note 14 - Stockholders' Equity (Details Textual) - USD ($) | Feb. 14, 2020 | Mar. 28, 2019 | Mar. 21, 2019 | Sep. 23, 2015 | Nov. 13, 2014 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 12, 2020 | Dec. 31, 2019 | Aug. 24, 2018 | Aug. 23, 2018 | Nov. 11, 2015 |
Preferred Stock, Shares Authorized (in shares) | 5,000,000 | |||||||||||
Preferred Stock, Par or Stated Value Per Share (in dollars per share) | $ 0.0001 | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 0.65 | $ 3.60 | ||||||||||
Dividends, Paid-in-kind, Total | $ 41,688 | $ 112,686 | ||||||||||
Director [Member] | ||||||||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | 13,820 | 0 | ||||||||||
Stock Issued During Period, Value, Issued for Services | $ 16,506 | |||||||||||
Certain Officers, Employees, and Contractors [Member] | Share-based Payment Arrangement, Option [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in shares) | 235,334 | 0 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Year) | 3 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 7 years | |||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in dollars per share) | $ 1.18 | |||||||||||
Convertible Note Due in July 13, 2020 [Member] | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 1.15 | |||||||||||
September 2015 Warrants [Member] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 384,618 | 166,668 | 69,445 | |||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 1.50 | $ 3.60 | ||||||||||
Promissory Note [Member] | ||||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 69,445 | |||||||||||
Amended Note [Member] | Senior Secured Convertible Note [Member] | ||||||||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ 0.65 | $ 0.65 | ||||||||||
Private Investor SPA [Member] | ||||||||||||
Stock Issued During Period, Shares, New Issues (in shares) | 664,584 | |||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | 996,877 | |||||||||||
Proceeds from Issuance of Private Placement | $ 1,595,000 | |||||||||||
Series A-1 Convertible Preferred Stock [Member] | ||||||||||||
Preferred Stock, Shares Authorized (in shares) | 100,000 | |||||||||||
Series B-1 Convertible Preferred Stock [Member] | ||||||||||||
Preferred Stock, Shares Authorized (in shares) | 105,000 | |||||||||||
Preferred Stock, Shares Outstanding, Ending Balance (in shares) | 0 | 0 | ||||||||||
September 2015 Warrants [Member] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ 3.60 | |||||||||||
Term Of Warrant (Year) | 5 years |
Note 16 - Major Customers and_2
Note 16 - Major Customers and Accounts Receivables (Details Textual) - Customer Concentration Risk [Member] | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenue Benchmark [Member] | |||
Concentration Risk, Number of Major Customers | 3 | 2 | |
Revenue Benchmark [Member] | Three Customers [Member] | |||
Concentration Risk, Percentage | 71.00% | ||
Revenue Benchmark [Member] | Two Customers [Member] | |||
Concentration Risk, Percentage | 56.00% | ||
Current Accounts Receivable [Member] | |||
Concentration Risk, Number of Major Customers | 2 | 3 | |
Current Accounts Receivable [Member] | Two Customers [Member] | |||
Concentration Risk, Percentage | 37.00% | ||
Current Accounts Receivable [Member] | Customer A [Member] | |||
Concentration Risk, Percentage | 18.00% | ||
Current Accounts Receivable [Member] | Customer B [Member] | |||
Concentration Risk, Percentage | 16.00% | ||
Current Accounts Receivable [Member] | Customer C [Member] | |||
Concentration Risk, Percentage | 14.00% |
Note 17 - Subsequent Events (De
Note 17 - Subsequent Events (Details Textual) | May 14, 2020shares | May 12, 2020shares | May 06, 2020USD ($)$ / sharesshares | Apr. 20, 2020USD ($) | Apr. 02, 2020shares | Mar. 12, 2020$ / shares | Feb. 14, 2020$ / shares | Nov. 11, 2015$ / shares |
Share Price (in dollars per share) | $ / shares | $ 0.76 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 0.65 | $ 3.60 | ||||||
Subsequent Event [Member] | ||||||||
Proceeds from Paycheck Protection Program Under CARES Act | $ | $ 340,000 | |||||||
Subsequent Event [Member] | Warrants Issued in Connection with Senior Secured Convertible Note [Member] | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 1,900,000 | |||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares | $ 1.16 | |||||||
Subsequent Event [Member] | Warrants Issued in Connection with Senior Secured Convertible Note [Member] | Maxim [Member] | ||||||||
Class of Warrant or Right, Percentage of Placement Fee from Gross Proceeds from Issuance of Warrants | 7.00% | |||||||
Subsequent Event [Member] | Warrants Issued to Investor for Business Referral [Member] | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 125,000 | |||||||
Subsequent Event [Member] | Senior Secured Convertible Note [Member] | ||||||||
Debt Instrument, Face Amount | $ | $ 2,415,000 | |||||||
Short-term Debt, Total | $ | $ 2,100,000 | |||||||
Debt Instrument, Number of Monthly Periodic Payments | 5 | |||||||
Debt Instrument, Periodic Payment, Principal | $ | $ 268,333 | |||||||
Debt Instrument, Convertible, Conversion Price (in dollars per share) | $ / shares | $ 1.16 | |||||||
Debt Instrument, Fee Amount | $ | $ 133,333 | |||||||
Stock Issued During Period, Shares, Due Diligence Fees (in shares) | shares | 114,943 | |||||||
Share Price (in dollars per share) | $ / shares | $ 1.16 | |||||||
Directors [Member] | Subsequent Event [Member] | ||||||||
Stock Issued During Period, Shares, Issued for Services (in shares) | shares | 1,632 | 7,077 | 6,850 | |||||
A New Employee [Member] | Subsequent Event [Member] | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in shares) | shares | 5,000 | |||||||
Class of Warrant or Right, Vesting Period (Year) | 3 years |