Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 25, 2014 | Jun. 30, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'Intellicheck Mobilisa, Inc. | ' | ' |
Entity Central Index Key | '0001040896 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Smaller Reporting Company | ' | ' |
Trading Symbol | 'IDN | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 36,844,467 | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $4,815,664 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $224,386 | $1,685,879 |
Accounts receivable, net of allowance of $0 and $1,613 | 1,041,519 | 869,747 |
Inventory | 54,677 | 337,559 |
Other current assets | 107,519 | 105,881 |
Total current assets | 1,428,101 | 2,999,066 |
PROPERTY AND EQUIPMENT, net | 369,095 | 449,438 |
GOODWILL | 12,308,661 | 12,308,661 |
INTANGIBLE ASSETS, net | 3,724,354 | 4,631,577 |
OTHER ASSETS | 72,006 | 72,006 |
Total assets | 17,902,217 | 20,460,748 |
Liabilities, Current [Abstract] | ' | ' |
Accounts payable | 478,588 | 247,289 |
Accrued expenses | 701,928 | 556,814 |
Deferred revenue, current portion | 967,912 | 1,450,923 |
Total current liabilities | 2,148,428 | 2,255,026 |
OTHER LIABILITIES | ' | ' |
Deferred revenues, long-term portion | 233,732 | 341,948 |
Deferred rent | 163,753 | 185,339 |
Total liabilities | 2,545,913 | 2,782,313 |
STOCKHOLDERS' EQUITY: | ' | ' |
Common stock - $.001 par value; 40,000,000 shares authorized; 27,897,467 and 27,724,267 shares issued and outstanding as of 2013 and 2012, respectively | 27,897 | 27,724 |
Additional paid-in capital | 100,983,971 | 100,882,019 |
Accumulated deficit | -85,655,564 | -83,231,308 |
Total stockholders' equity | 15,356,304 | 17,678,435 |
Total liabilities and stockholders' equity | $17,902,217 | $20,460,748 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Allowance for accounts receivable (in dollars) | $0 | $1,613 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 27,897,467 | 27,724,267 |
Common stock, shares outstanding | 27,897,467 | 27,724,267 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
REVENUES | $7,298,537 | $8,803,217 |
COST OF REVENUES | -2,772,984 | -3,001,997 |
Gross profit | 4,525,553 | 5,801,220 |
OPERATING EXPENSES | ' | ' |
Selling | 1,096,486 | 1,613,819 |
General and administrative | 3,796,735 | 4,209,385 |
Research and development | 2,056,744 | 2,239,011 |
Total operating expenses | 6,949,965 | 8,062,215 |
Loss from operations | -2,424,412 | -2,260,995 |
OTHER INCOME | ' | ' |
Interest income | 156 | 909 |
Net loss | ($2,424,256) | ($2,260,086) |
PER SHARE INFORMATION: Net loss per common share | ' | ' |
Basic (in dollars per share) | ($0.09) | ($0.08) |
Diluted (in dollars per share) | ($0.09) | ($0.08) |
Weighted average common shares used in computing per share amounts | ' | ' |
Basic (in shares) | 27,828,699 | 27,724,267 |
Diluted (in shares) | 27,828,699 | 27,724,267 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] |
BALANCE at Dec. 31, 2011 | $19,755,396 | $27,462 | $100,699,156 | ($80,971,222) |
BALANCE (in shares) at Dec. 31, 2011 | ' | 27,462,504 | ' | ' |
Stock based compensation expense (employees and directors) | 52,677 | 0 | 52,677 | 0 |
Stock based compensation expense (employees and directors) (in shares) | ' | 0 | ' | ' |
Exercise of stock options | 130,448 | 262 | 130,186 | 0 |
Exercise of stock options (in shares) | -261,763 | 261,763 | ' | ' |
Net loss | -2,260,086 | 0 | 0 | -2,260,086 |
BALANCE at Dec. 31, 2012 | 17,678,435 | 27,724 | 100,882,019 | -83,231,308 |
BALANCE,(in shares) at Dec. 31, 2012 | ' | 27,724,267 | ' | ' |
Stock based compensation expense (employees and directors) | 19,053 | 0 | 19,053 | 0 |
Stock based compensation expense (employees and directors) (in shares) | ' | 0 | ' | ' |
Exercise of stock options | 70,472 | 153 | 70,319 | 0 |
Exercise of stock options (in shares) | -153,200 | 153,200 | ' | ' |
Issuance of common stock | 12,600 | 20 | 12,580 | 0 |
Issuance of common stock (in shares) | ' | 20,000 | ' | ' |
Net loss | -2,424,256 | 0 | 0 | -2,424,256 |
BALANCE at Dec. 31, 2013 | $15,356,304 | $27,897 | $100,983,971 | ($85,655,564) |
BALANCE,(in shares) at Dec. 31, 2013 | ' | 27,897,467 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net loss | ($2,424,256) | ($2,260,086) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 1,068,408 | 1,094,173 |
Non cash stock based compensation expense | 31,653 | 52,677 |
Provision for doubtful accounts | 0 | -3,271 |
Changes in assets and liabilities: | ' | ' |
(Increase) decrease in accounts receivable | -171,772 | 2,192,312 |
Decrease (increase) in inventory | 282,882 | -325,665 |
(Increase) decrease in other current assets | -1,637 | 2,888 |
Increase (decrease) in accounts payable and accrued expenses | 376,413 | -92,823 |
(Decrease) in deferred revenue | -591,227 | -305,200 |
(Decrease) in deferred rent | -21,587 | -9,420 |
Net cash (used in) provided by operating activities | -1,451,123 | 345,585 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -80,842 | -184,303 |
Net cash (used in) investing activities | -80,842 | -184,303 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Net proceeds from issuance of common stock from exercise of stock options and warrants | 70,472 | 130,448 |
Net cash provided by financing activities | 70,472 | 130,448 |
Net (decrease) increase in cash and cash equivalents | -1,461,493 | 291,730 |
CASH AND CASH EQUIVALENTS, beginning of year | 1,685,879 | 1,394,148 |
CASH AND CASH EQUIVALENTS, end of year | $224,386 | $1,685,879 |
NATURE_OF_BUSINESS
NATURE OF BUSINESS | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Nature of Operations [Text Block] | ' |
1. NATURE OF BUSINESS | |
Business | |
Intellicheck Mobilisa, Inc. (the “Company” or “Intellicheck”) is a leading technology company that is engaged in developing, integrating and marketing wireless technology and identity systems for various applications including mobile and handheld access control and security systems for the government, military and commercial markets. Products include the Defense ID and Fugitive Finder systems, advanced ID card access control products currently protecting military and federal locations, and ID-Check, a patented technology that instantly reads, analyzes, and verifies encoded data in magnetic stripes and barcodes on government-issue IDs from U.S. and Canadian jurisdictions designed to improve the Customer Experience for the financial, hospitality and retail sectors. Wireless products and services include Aegeus, a wireless security buoy system for the government, military and oil industry. The company is also engaged in the engineering, design and installation of wireless communications systems. | |
Principles of Consolidation | |
The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, Mobilisa, Inc. (“Mobilisa”) and Positive Access Corporation (“Positive Access”). All intercompany balances and transactions have been eliminated upon consolidation. | |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Significant Accounting Policies [Text Block] | ' | |||||||
2. SIGNIFICANT ACCOUNTING POLICIES | ||||||||
Cash and Cash Equivalents | ||||||||
Cash and cash equivalents include cash and highly liquid investments with original maturities of three months or less when purchased. As of December 31, 2013 and 2012, cash equivalents were $0 and $0, respectively. | ||||||||
Allowance for Doubtful Accounts | ||||||||
The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions and other factors that may affect customers’ ability to pay. | ||||||||
Inventory | ||||||||
Inventory is stated at the lower of cost or market and cost is determined using the first-in, first-out method. Inventory is primarily comprised of finished goods. As of December 31, 2013, the majority of our inventory related to Government and Commercial Identity products for intended near-term sales. | ||||||||
Long-Lived Assets and Impairment of Long-Lived Assets | ||||||||
The Company’s long-lived assets include property and equipment, goodwill and intangible assets. | ||||||||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with SFAS No. 144, “Accounting for Impairment or Disposal of Long-Lived Assets” and SFAS 142, “Goodwill and other Intangible Assets” (ASC Topic 360). To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. Impairment is measured at fair value. No impairments were recognized during the years ended December 31, 2013 or 2012. | ||||||||
Property and Equipment | ||||||||
Property and equipment are recorded at cost and are depreciated over their estimated useful lives ranging from three to ten-years using the straight-line method. Leasehold improvements are amortized utilizing the straight-line method over the lesser of the term of the lease or estimated useful life of the asset. | ||||||||
Goodwill | ||||||||
Goodwill represents the excess of acquisition cost over the fair value of net assets acquired in business combinations. Pursuant to ASC Topic 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter, or between annual tests, in certain circumstances. Under guidance, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. | ||||||||
The Company determined that a two-step quantitative analysis was necessary for both years ended December 31, 2013 and 2012. See Note 5 and Management’s Discussion and Analysis. | ||||||||
Intangible Assets | ||||||||
Acquired intangible assets include trade names, patents, developed technology and backlog described more fully in Note 5. The Company uses the straight line method to amortize these assets over their estimated useful lives. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC Topic 360. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. Impairment is measured at fair value. No impairments were recognized during the years ended December 31, 2013 and 2012. | ||||||||
Costs of Computer Software Developed or Obtained for Internal Use | ||||||||
The Company accounts for certain software costs under ASC Topic 350, which provides guidance for determining whether computer software is internal-use software and guidance on accounting for the proceeds of computer software originally developed or obtained for internal use and then subsequently sold to the public. It also provides guidance on capitalization of the costs incurred for computer software developed or obtained for internal use. | ||||||||
Capitalized Software Development Costs | ||||||||
Costs incurred internally in creating a computer software product shall be charged to expense when incurred as research and development until technological feasibility has been established for the product. Software production costs for computer software that is to be used as an integral part of a product or process shall not be capitalized until both (a) technological feasibility has been established for the software and (b) all research and development activities for the other components of the product or process have been completed. The Company has not capitalized any software costs for the years ended December 31, 2013 and 2012. | ||||||||
Deferred Rent | ||||||||
The Company received certain rent abatements and incentives from landlords as an inducement to move into its New York office facility. In accordance with ASC Topic 840, the Company is amortizing these incentives on a straight line basis over the periods of the respective leases. | ||||||||
Revenue Recognition and Deferred Revenue | ||||||||
Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable, collectability is probable, and there is no future Company involvement or commitment. The Company sells its commercial products directly through its sales force and through distributors. Revenue from direct sales of products is recognized when shipped to the customer and title has passed. | ||||||||
Under the provisions of ASC Topic 605-25, “Revenue Arrangements with Multiple Deliverables,” for multi-element arrangements that include tangible products containing software essential to the tangible product’s functionality and undelivered software elements relating to the tangible product’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price and (iii) best estimate of the selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. | ||||||||
The Company also recognizes revenues from licensing of its patented software to customers. The licensed software requires continuing service or post contractual customer support and performance; accordingly, a portion of the revenue is deferred based on its fair value and recognized ratably over the period in which the future service, support and performance are provided, which is generally one to three years. Royalties from the licensing of the Company’s technology are recognized as revenues in the period they are earned. | ||||||||
Revenue from research and development contracts are generally with government agencies under long-term cost-plus fixed-fee contracts, where revenue is based on time and material costs incurred. Revenue from these arrangements is recognized as time is spent on the contract and materials are purchased. Research and development costs are expensed as incurred. | ||||||||
The Company also performs consulting work for other companies. These services are billed based on time and materials. Revenue from these arrangements is also recognized as time is spent on the contract and materials are purchased. | ||||||||
Subscriptions to database information can be purchased for month-to-month, one, two, and three year periods. Revenue from subscriptions are deferred and recognized over the contractual period, which is typically three years. | ||||||||
The Company offers enhanced extended warranties for its sales of hardware and software at a set price. The revenue from these sales are deferred and recognized on a straight-line basis over the contractual period, which is typically one to three years. | ||||||||
Research and Development Costs | ||||||||
Research and development costs are charged to expense as incurred. | ||||||||
Shipping Costs | ||||||||
The Company’s shipping and handling costs are included in cost of revenues for all periods presented. | ||||||||
Income Taxes | ||||||||
The Company accounts for income taxes under in accordance with ASC Topic 740, “Accounting for Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using expected tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company has recorded a full valuation allowance for its net deferred tax assets as of December 31, 2013 and 2012, due to the uncertainty of the realizability of those assets. | ||||||||
Fair Value of Financial Instruments | ||||||||
The Company adheres to the provisions of SFAS No. 107, “Disclosures about Fair Value of Financial Instruments” (ASC Topic 820). This pronouncement requires that the Company calculate the fair value of financial instruments and include this additional information in the notes to financial statements when the fair value is different than the book value of those financial instruments. The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and notes payable. At December 31, 2013 and 2012, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature. | ||||||||
Business Concentrations and Credit Risk | ||||||||
Financial instruments, which subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. The Company maintains cash between three financial institutions. The cash equivalents consist of money market funds. The Company performs periodic evaluations of the relative credit standing of these institutions. | ||||||||
The Company’s sales are principally made to large retail customers, financial institutions concentrated in the United States of America and to U.S. government entities. The Company performs ongoing credit evaluations, generally does not require collateral, and establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. | ||||||||
During the years ended December 31, 2013 and 2012, the Company had one and three customers that accounted for approximately 17% and 40% of total revenues, respectively. The revenue resulted from wireless network installations in Washington State. These customers represented 12% and 5% of total accounts receivable at December 31, 2013 and 2012, respectively. | ||||||||
As of December 31, 2013, the Company had three suppliers for the production of its input devices. The Company has modified its software to operate in windows based systems and can integrate with different hardware platforms that are readily available in the marketplace. The Company does not maintain a manufacturing facility of its own and is not dependent on maintaining its production relationships due to the flexibility of its software to run on multiple existing platforms. | ||||||||
Net Loss and Net Loss Per Share | ||||||||
Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and restricted stock is reflected in diluted earnings per share by application of the treasury stock method. The calculation of diluted net income (loss) per share excludes all anti-dilutive shares. The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: | ||||||||
The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive: | ||||||||
2013 | 2012 | |||||||
Stock options | 327,486 | 711,135 | ||||||
Warrants | - | - | ||||||
Total | 327,486 | 711,135 | ||||||
Share Based Compensation | ||||||||
The Company accounts for the issuance of equity awards to employees in accordance ASC Topic 715 and 505, which requires that the cost resulting from all share based payment transactions be recognized in the financial statements. This pronouncement establishes fair value as the measurement objective in accounting for share based payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all share based payment transactions with employees. Period compensation costs are included in selling, general and administrative and research and development expenses. | ||||||||
The Company recognizes compensation expense related to stock option grants on a straight-line basis over the vesting period. | ||||||||
Options granted to consultants and other non-employees are accounted for in accordance with ASC Topic 505-50. Accordingly, such options are recorded at fair value at the date of grant and subsequently adjusted to fair value at the end of each reporting period until such options vest, and the fair value of the options, as adjusted, is amortized to consulting expense over the related vesting period. | ||||||||
Comprehensive Loss | ||||||||
The Company’s comprehensive loss is equal to its net loss for the years ended December 31, 2013 and 2012. | ||||||||
Segment Information | ||||||||
The Company adheres to the provisions of ASC Topic 280, which establishes standards for the way public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in financial statements issued to shareholders. Management has determined that it has only one reporting segment. | ||||||||
Use of Estimates | ||||||||
The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. Significant estimates and assumptions that affect amounts reported in the financial statements include impairment of goodwill and intangible assets, deferred tax valuation allowances, allowances for doubtful accounts, revenue allocation of multi-element arrangements and the fair value of options granted under the Company’s share based compensation plans. Due to the inherent uncertainties involved in making estimates, actual results reported in future periods may be different from those estimates. | ||||||||
Recently Issued Accounting Pronouncements | ||||||||
The Company does not expect the impact of the future adoption of recently issued accounting pronouncements to have a material impact on the Company’s consolidated financial statements. | ||||||||
On February 5, 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” The standard requires that entities present information about reclassification adjustments from accumulated other comprehensive income in their annual financial statements in a single note or on the face of the financial statements. Public companies will also have to provide this information in their interim financial statements. The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies would instead cross reference to the related footnote for additional information. The Company adopted ASU 2013-02 on January 1, 2013, and expects no material impact on its financials as a result. | ||||||||
On September 13, 2013, the Internal Revenue Service issued final Tangible Property Regulations (TPR) under Internal Revenue Code (IRC) Section 162 and IRC Section 263(a), which prescribe the capitalization treatment of certain repair costs, asset betterments and other costs which could affect temporary deferred taxes. Although the regulations are not effective until tax years beginning on or after January 1, 2014, certain portions may require an accounting method change on a retroactive basis, thus requiring an IRC Section 481(a) adjustment related to fixed and real asset deferred taxes. Pursuant to U.S. GAAP, as of the date of the issuance, the release of the regulations is treated as a change in tax law. Therefore, we are required to determine whether there will be an impact on our financial statements as of October 31, 2013. We are currently analyzing the expected impact of the new regulations and we do not believe the impact will be material to our financial position or results of operations. We will continue to monitor any future changes in the TPR prospectively. | ||||||||
ACCOUNTS_RECEIVABLE
ACCOUNTS RECEIVABLE | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | |||||||
3. ACCOUNTS RECEIVABLE | ||||||||
Accounts receivable represent amounts due from the Company’s customers and are presented net of allowance for doubtful accounts. These balances include revenue recognized in advance of customer billings but do not include unbilled contractual commitments executed under license agreements. The components of accounts receivable, net are as follows: | ||||||||
2013 | 2012 | |||||||
Accounts receivable - billed | $ | 975,996 | $ | 774,726 | ||||
Accounts receivable - unbilled | 65,523 | 96,634 | ||||||
Less: Allowance for doubtful accounts | - | -1,613 | ||||||
Accounts receivable, net | $ | 1,041,519 | $ | 869,747 | ||||
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | |||||||
4. PROPERTY AND EQUIPMENT | ||||||||
Property and equipment are comprised of the following as of December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Computer equipment | $ | 743,857 | $ | 719,053 | ||||
Furniture and fixtures | 72,480 | 72,480 | ||||||
Leasehold improvements | 169,032 | 169,032 | ||||||
Office equipment | 491,340 | 435,302 | ||||||
Vehicles | 147,310 | 147,310 | ||||||
1,624,019 | 1,543,177 | |||||||
Less - Accumulated depreciation and amortization | 1,254,924 | 1,093,739 | ||||||
$ | 369,095 | $ | 449,438 | |||||
Depreciation expense for the years ended December 31, 2013 and 2012 amounted to $161,185 and $174,601, respectively. | ||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS AND IMPAIRMENT | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Goodwill and Intangible Assets Disclosure [Text Block] | ' | ||||||||||||
5. GOODWILL AND INTANGIBLE ASSETS AND IMPAIRMENT | |||||||||||||
Goodwill | |||||||||||||
The carrying value of goodwill was $12,308,661 and $12,308,661 for the years ended December 31, 2013 and 2012. | |||||||||||||
Identifiable intangible assets | |||||||||||||
The changes in the carrying amount of intangible assets for the year ended December 31, 2013 and 2012 were as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 4,631,577 | $ | 5,551,149 | |||||||||
Amortization expense | -907,223 | -919,572 | |||||||||||
Balance at end of year | $ | 3,724,354 | $ | 4,631,577 | |||||||||
The Company has recorded the fair value of the acquired identifiable intangible assets, which are subject to amortization, using the income approach. The following table sets forth the components of these intangible assets as of December 31, 2013 and 2012: | |||||||||||||
As of December 31, 2013 | |||||||||||||
Estimated | Adjusted | Net | |||||||||||
Useful | Carrying | Accumulated | as of | ||||||||||
Life | Amount | Amortization | 12/31/13 | ||||||||||
Trade name | 20 years | $ | 704,458 | $ | -260,641 | $ | 443,817 | ||||||
Patents and copyrights | 17 years | 1,117,842 | -454,421 | 663,421 | |||||||||
Non-compete agreements | 5 years | 310,000 | -268,667 | 41,333 | |||||||||
Developed technology | 7 years | 3,941,310 | -3,295,135 | 646,175 | |||||||||
Backlog | 3 years | 303,400 | -303,400 | - | |||||||||
Non-contractual customer relationships | 15 years | 3,268,568 | -1,338,960 | 1,929,608 | |||||||||
$ | 9,645,578 | $ | -5,921,224 | $ | 3,724,354 | ||||||||
As of December 31, 2012 | |||||||||||||
Adjusted | Net | ||||||||||||
Carrying | Accumulated | as of | |||||||||||
Amount | Amortization | 12/31/12 | |||||||||||
Trade name | $ | 704,458 | $ | -229,975 | $ | 474,483 | |||||||
Patents and copyrights | 1,117,842 | -396,575 | 721,267 | ||||||||||
Non-compete agreements | 310,000 | -206,667 | 103,333 | ||||||||||
Developed technology | 3,941,310 | -2,760,370 | 1,180,940 | ||||||||||
Backlog | 303,400 | -303,400 | - | ||||||||||
Non-contractual customer relationships | 3,268,568 | -1,117,014 | 2,151,554 | ||||||||||
$ | 9,645,578 | $ | -5,014,001 | $ | 4,631,577 | ||||||||
The following summarizes amortization of acquisition related intangible assets included in the statement of operations: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Cost of sales | $ | 771,416 | $ | 771,416 | |||||||||
General and administrative | 135,807 | 148,156 | |||||||||||
$ | 907,223 | $ | 919,572 | ||||||||||
The Company expects that amortization expense for the next five succeeding years will be as follows: | |||||||||||||
2014 | $ | 416,657 | |||||||||||
2015 | $ | 310,458 | |||||||||||
2016 | $ | 310,458 | |||||||||||
2017 | $ | 310,458 | |||||||||||
2018 | $ | 310,458 | |||||||||||
These amounts are subject to change based upon the review of recoverability and useful lives that are performed at least annually. | |||||||||||||
Goodwill and Intangible Asset Impairment | |||||||||||||
The excess of the purchase consideration over the fair value of the assets of acquired businesses is considered goodwill. Under authoritative guidance, purchased goodwill is not amortized, but rather it is periodically reviewed for impairment. The Company had goodwill of $12,308,661 and $12,308,661 at December 31, 2013 and December 31, 2012. This goodwill resulted from the acquisitions of Mobilisa, Inc. and Positive Access Corporation. | |||||||||||||
For the years ended December 31, 2013 and 2012, the Company performed its annual impairment test of goodwill and concluded that no impairment charge was required for either year. Under authoritative guidance, the Company can use industry and Company specific qualitative factors to determine whether it is more likely than not that impairment exists, before using a two-step quantitative analysis. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. | |||||||||||||
For the years ended December 31, 2013 and 2012, after a review of these qualitative factors, the Company determined that it was necessary to perform a two-step quantitative analysis. The first step is to compare the fair value of the Company’s reporting unit, including goodwill to its carrying value. If the fair value of the reporting unit exceeds its carrying amount, goodwill is considered not impaired otherwise, there is an indication that goodwill may be impaired and the amount of loss, if any is measured by performing step two. Under step two, the impairment loss, if any, is measured by comparing the implied fair value of the reporting unit goodwill with the carrying amount of Goodwill. | |||||||||||||
The Company engaged an outside consulting firm to perform this analysis. This firm appraised the fair value of the Company’s reporting unit is excess of its carrying value as of the reporting date, so no second step was necessary. The firm used the income approach, on a debt-free basis, to perform its analysis, because of the uniqueness of the Company and unrepresentative nature of the Company’s historical performance. | |||||||||||||
Based on the outside consultant’s report and the Company’s review of its market capitalization and movement in stock price, Management determined that no impairment of Goodwill exists as of December 31, 2013. | |||||||||||||
The Company also considered whether long-lived assets including intangibles were also impaired. These assets are stated at cost, less accumulated amortization, which is provided for by charges to income on a basis consistent with the utilization of the assets over their useful lives. The carrying value of intangible and long-lived assets is reviewed periodically by the Company for the existence of facts or circumstances that may suggest impairment. If such circumstances exist, the Company would estimate the future, undiscounted cash flows associated with the asset, and compare that to the carrying value. If the carrying value exceeds the estimated cash flows, the asset would be written down to its estimated fair value. As of December 31, 2013 and 2012, the Company determined that there was no impairment of intangible assets. | |||||||||||||
REVOLVING_LINE_OF_CREDIT
REVOLVING LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
6. REVOLVING LINE OF CREDIT | |
On August 17, 2011, the Company entered into a 2-year revolving credit facility with Silicon Valley Bank. On August 15, 2013, it renewed this facility for an additional year. The maximum borrowing under the facility is $2 million. Borrowings under the facility are subject to certain limitations based on a percentage of accounts receivable, as defined in the agreement, and are secured by all of the Company’s assets. The facility bears interest at a rate of U.S. prime (3.25% at December 31, 2013) plus 1.25% - 1.75%, depending on the Company’s cash plus availability. Interest is payable monthly and the principal is due upon maturity on October 15, 2014. At December 31, 2013, there were no amounts outstanding, the Company is in compliance with its covenants, and unused availability under the facility was approximately $593,575. | |
The facility contains a tangible net worth covenant requiring that, as of each monthly reporting, total assets minus intangible assets minus capitalized software development costs minus total liabilities plus subordinated debt is at least equal to $(800,000), starting October 31, 2013, and increasing immediately by 50% for new debt or equity received and 50% of quarterly net income (with no reduction for losses). | |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | |||||||
7 | ACCRUED EXPENSES | |||||||
Accrued expenses are comprised of the following as of December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Professional fees | $ | 136,152 | $ | 186,488 | ||||
Payroll and related | 362,960 | 345,013 | ||||||
Navy Contract Close-out | 117,970 | - | ||||||
Other | 84,846 | 25,313 | ||||||
$ | 701,928 | $ | 556,814 | |||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
8 | INCOME TAXES | |||||||
ASC Topic 740-10 created a new recognition threshold and a measurement approach for tax positions recognized in the financial statements. As of December 31, 2013, the Company has no material uncertain tax positions. | ||||||||
As a result of continuing losses for tax purposes, the Company has historically not paid income taxes and has recorded a full valuation allowance against the net deferred tax asset. Interest and penalties related to unrecognized tax benefits are recorded in income tax expense. There was no accrued interest related to unrecognized tax benefits at December 31, 2013. The tax years 2010-2013 remain open to examination by the major taxing jurisdictions to which the Company is subject. | ||||||||
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets for federal and state income taxes as of December 31, 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 16,473,000 | $ | 16,024,000 | ||||
Reserves | - | 1,000 | ||||||
Deferred rent | 66,000 | 74,000 | ||||||
Research & development tax credits | 139,000 | 78,000 | ||||||
Total deferred tax assets | 16,678,000 | 16,177,000 | ||||||
Deferred tax liabilities: | ||||||||
Intangible assets | -1,355,000 | -1,718,000 | ||||||
Other | -1,000 | - | ||||||
Depreciation | -138,000 | -120,000 | ||||||
Total deferred tax liabilities | -1,494,000 | -1,838,000 | ||||||
Net deferred tax assets | 15,184,000 | 14,339,000 | ||||||
Less: Valuation allowance | -15,184,000 | -14,339,000 | ||||||
Deferred tax assets, net of allowance | $ | - | $ | - | ||||
Realization of deferred tax assets is dependent upon future earnings, if any. The Company has recorded a full valuation allowance against its deferred tax assets since management believes that it is more likely than not that these assets will not be realized. | ||||||||
As of December 31, 2013 the Company had net operating loss carryforwards (NOL’s) for federal and New York State income tax purposes of approximately $41.2 million. There can be no assurance that the Company will realize the benefit of the NOL’s. The federal and state NOL’s are available to offset future taxable income and expire from 2018 through 2030 if not utilized. Under Section 382 of the Internal Revenue Code, these NOL’s may be limited due to ownership changes. | ||||||||
The effective tax rate for the years ended December 31, 2013 and 2012 is different from the tax benefit that would result from applying the statutory tax rates primarily due to the recognition of valuation allowances. | ||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders Equity Note [Abstract] | ' | ||||||||||||||||
Stockholders Equity Note Disclosure [Text Block] | ' | ||||||||||||||||
9. STOCKHOLDERS’ EQUITY | |||||||||||||||||
Series A Convertible Preferred Stock | |||||||||||||||||
In January 1997, the Board of Directors authorized the creation of a class of Series A Convertible Preferred Stock with a par value of $.01. The Series A Convertible Preferred Stock is convertible into an equal number of common shares at the holder’s option, subject to adjustment for anti-dilution. The holders of Series A Convertible Preferred Stock are entitled to receive dividends as and if declared by the Board of Directors. In the event of liquidation or dissolution of the Company, the holders of Series A Convertible Preferred Stock are entitled to receive all accrued dividends, if applicable, plus the liquidation price of $1.00 per share. As of December 31, 2013 and 2012, there were no outstanding shares of Series A Convertible Preferred Stock. | |||||||||||||||||
Stock Options and Share Based Compensation | |||||||||||||||||
In order to retain and attract qualified personnel necessary for the success of the Company, the Company adopted several Stock Option Plans from 1998 through 2004 (and an amendment to the 2004 plan in 2006 pursuant to which the plan was renamed the “2006 Equity Incentive Plan” and amended to provide for the issuance of other types of equity incentives such as restricted stock grants) (collectively, the “Plans”) covering up to 6,250,000 of the Company’s common shares, pursuant to which officers, directors, key employees and consultants to the Company are eligible to receive incentive stock options and nonqualified stock options. The Compensation Committee of the Board of Directors administers these Plans and determines the terms and conditions of options granted, including the exercise price. These Plans generally provide that all stock options will expire within ten years of the date of grant. Incentive stock options granted under these Plans must be granted at an exercise price that is not less than the fair market value per share at the date of the grant and the exercise price must not be less than 110% of the fair market value per share at the date of the grant for grants to persons owning more than 10% of the voting stock of the Company. These Plans also entitle non-employee directors to receive grants of non-qualified stock options as approved by the Board of Directors. | |||||||||||||||||
Stock option activity under the 1998, 1999, 2001, 2003 and 2006 Stock Option Plans during the periods indicated below is as follows: | |||||||||||||||||
Weighted- | |||||||||||||||||
Number of | Weighted- | average | |||||||||||||||
Shares | average | Remaining | Aggregate | ||||||||||||||
Subject to | Exercise | Contractual | Intrinsic | ||||||||||||||
Issuance | Price | Term | Value | ||||||||||||||
Outstanding at December 31, 2011 | 1,244,260 | $ | 1.93 | 2.29 years | |||||||||||||
Granted | - | - | |||||||||||||||
Forfeited or expired | -235,862 | 3.1 | |||||||||||||||
Exercised | -261,763 | 0.5 | $ | 348,352 | |||||||||||||
Outstanding at December 31, 2012 | 746,635 | $ | 2.06 | 1.66 years | |||||||||||||
Granted | 135,000 | 0.39 | |||||||||||||||
Forfeited or expired | -400,949 | 1.89 | |||||||||||||||
Exercised | -153,200 | 0.46 | |||||||||||||||
Outstanding at December 31, 2013 | 327,486 | $ | 2.31 | 2.42 years | $ | 12,100 | |||||||||||
Exercisable at December 31, 2013 | 212,236 | $ | 3.33 | 1.52 years | $ | - | |||||||||||
There were 135,000 and no options granted in the years ended December 31, 2013 and 2012. | |||||||||||||||||
The following is a summary of stock options as of December 31, 2013: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Weighted | Weighted- | ||||||||||||||||
Weighted- | average | average | |||||||||||||||
Number of | average | Exercise | Number of | Exercise | |||||||||||||
Range of Exercise Prices | Options | Remaining Life | Price | Options | Price | ||||||||||||
$0.39 to $1.00 | 110,000 | 1.42 | years | $ | 0.13 | - | $ | - | |||||||||
$1.01 to $3.00 | 110,636 | 0.27 | years | $ | 0.5 | 105,386 | $ | 0.73 | |||||||||
$3.01 to $5.00 | 25,000 | 0.32 | years | $ | 0.28 | 25,000 | $ | 0.43 | |||||||||
$5.01 to $5.64 | 81,850 | 0.4 | years | $ | 1.41 | 81,850 | $ | 2.17 | |||||||||
327,486 | 2.42 | years | $ | 2.31 | 212,236 | $ | 3.33 | ||||||||||
The weighted-average fair value of the options granted during the years ended December 31, 2013 and 2012 is $0.39 and $0 respectively. | |||||||||||||||||
As of December 31, 2013, the Company had 2,548,087 options available for future grant under the existing Stock Option and Equity Incentive Plans. | |||||||||||||||||
As of December 31, 2013, there was $41,700 of total unrecognized compensation cost, net of estimated forfeitures, related to all unvested stock options and restricted stock, which is expected to be recognized over a weighted average period of approximately 3.17 years. | |||||||||||||||||
Share based compensation expense for the years ended December 31, 2013 and 2012 is as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Compensation cost recognized: | |||||||||||||||||
Stock options | $ | 19,053 | $ | 52,677 | |||||||||||||
Restricted stock | 0 | 0 | |||||||||||||||
$ | 19,053 | $ | 52,677 | ||||||||||||||
Share based compensation is included in operating expenses as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Selling | $ | 499 | $ | 9,216 | |||||||||||||
General and administrative | 6,467 | 16,788 | |||||||||||||||
Research and development | 12,087 | 26,673 | |||||||||||||||
$ | 19,053 | $ | 52,677 | ||||||||||||||
The Company capitalized $0 in share-based compensation cost in both years 2013 and 2012. | |||||||||||||||||
The Company has a net operating loss carry-forward as of December 31, 2013, and no excess tax benefits for the tax deductions related to share based awards were recognized in the statements of operations. Additionally, no incremental tax benefits were recognized from stock options exercised in 2013 that would have resulted in a reclassification to reduce net cash provided by operating activities with an offsetting increase in net cash provided by financing activities. | |||||||||||||||||
All stock options have been issued with an exercise price that is equal or above the fair market value of the Company’s Common Stock on the date of grant. | |||||||||||||||||
Warrants | |||||||||||||||||
All previously granted warrants were issued with an exercise price that was equal to or above the fair market value of the Company’s common stock on the date of grant. As of December 31, 2013, the Company had no remaining warrants outstanding. No warrants were exercised in 2013 or 2012. | |||||||||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
11. COMMITMENTS AND CONTINGENCIES | |||||
Operating Leases | |||||
The Company has entered into various leases for office space. The Company leases offices in New York and Washington states. Those leases expire in March, 2018 and July, 2017, respectively. The Washington office is owned by a related party and is discussed in Note 12. Future minimum lease payments under these lease agreements are as follows for the years ended December 31: | |||||
2014 | $ | 520,623 | |||
2015 | 408,030 | ||||
2016 | 408,019 | ||||
2017 | 379,226 | ||||
2018 | 82,327 | ||||
Total | $ | 1,798,225 | |||
Rent expense for the years ended December 31, 2013 and 2012 amounted to $532,081 and $534,047, respectively. | |||||
Royalty and License Agreements | |||||
The Company entered into an agreement with a former officer of the Company during 1996 to license certain software. The agreement stipulated, among other provisions, that the officer would receive royalties equal to a percentage of the Company’s gross sales. This agreement was terminated in May 1999 and was superseded by a new agreement which calls for payment of royalties of .005% on gross sales from $2,000,000 to $52,000,000 and .0025% on gross sales in excess of $52,000,000 pertaining to those patents on which Mr. Messina was identified as an inventor. As of December 31, 2013, total fees paid under this agreement amounted to approximately $1,650. | |||||
Consulting Agreements | |||||
In March 2009, the Company entered into an agreement with an investor relations firm. The engagement period was for twelve months commencing March 16, 2009. In exchange for its services, the Company paid the firm $13,500 per month for the first 24 months of the agreement. In addition, each month for the first 24 months of the agreement, the Company delivered to the investor relations firm 10,417 shares of restricted stock. The stock is restricted from sale for a period of two years from the date of grant. | |||||
The agreement is automatically renewed for successive twelve month periods unless either party gives written notice no later than 30 days prior to the expiration period. Afterwards, the fee may be subject to change by mutual agreement of the parties. | |||||
As of April 11, 2011, the fee was reduced to $10,000 per month. No additional shares were issued after February 2011. | |||||
Legal Proceedings | |||||
The Company is not aware of any infringement by our products or technology on the proprietary rights of others. | |||||
The Company is not currently involved in any legal or regulatory proceeding, or arbitration, the outcome of which is expected to have a material adverse effect on its business. | |||||
Severance and Change-in-Control Agreements | |||||
On November 16, 2010, the Company entered into an Executive Severance Agreement with Mr. Mundy, the Company’s former Chief Financial Officer. Under the agreement, if Mr. Mundy was terminated without cause, if he resigned with “good reason” (as defined in the agreement), or if he was terminated as a result of a change of control, he would have been entitled to 1.99 years of his then base salary, a gross amount equal to any quarterly bonus target applicable during the quarter, accelerated vesting of all outstanding stock options and coverage of health benefits for a period of up to 12 months. The agreement had a term of two years. On April 1, 2012, Mr. Mundy resigned from the Company. In lieu of the above mentioned agreement, the Company entered into a consulting agreement with Mr. Mundy which had a term of nine months at $15,250 per month. The final payment was made pursuant to this agreement on January 4, 2013. | |||||
401(k) Plan | |||||
The Company has a retirement savings 401(k) plan. The plan permits eligible employees to make voluntary contributions to a trust, up to a maximum of 35% of compensation, subject to certain limitations. The Company has elected to contribute a matching contribution equal to 50% of the first 6% of an eligible employee’s deferral election. The Company may also make discretionary contributions, subject to certain conditions, as defined in the plan. The Company’s matching contributions were $38,050 and $52,972 for 2013 and 2012, respectively. | |||||
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
12. RELATED PARTY TRANSACTIONS | |
Mobilisa leases office space from a company (“Lessor Company”) that is wholly-owned by two directors, who are members of management. The Company entered into a 10-year lease for the office space ending in 2017. The base annual rent for this facility is currently $85,498 and is subject to annual increases based on the increase in the CPI index plus 1%. For the year ended December 31, 2013 and 2012, total rent payments for this office space were $92,046 and $91,780, respectively. This operating lease is referenced in Note 11. | |
The Lessor Company's entire operations consist of the leased property and related bank debt. The Company is a guarantor of the loans for the leased property. As of December 31, 2013, the Company's maximum exposure to loss was $177,999. | |
In June 2009, the FASB issued guidance included in ASC Topic 810-10, “Amendments to FASB Interpretation No. 46(R).” This updated guidance requires a qualitative approach to identifying a controlling financial interest in a variable interest entity (VIE), and requires ongoing assessment of whether an entity is a VIE and whether an interest in a VIE makes the holder the primary beneficiary of the VIE. Under the FASB guidance, companies are required to consolidate a related variable interest entity ("VIE") when the reporting company is the "primary beneficiary" of that entity and holds a variable interest in the VIE. The determination of whether a reporting company is the primary beneficiary of a VIE ultimately turns on whether the reporting entity will absorb a majority of the VIE's anticipated losses or receive a majority of the VIE's anticipated gains. | |
The Company analyzed its transactions with and relationship to the Lessor Company and concluded that it had an implicit variable interest in the Lessor Company. However, the primary beneficiaries, based on an assessment of what entity absorbs a majority of the entity's expected losses, receives a majority of its expected residual returns, or both, as a result of holding variable interests, are the common owners. Accordingly, the Company is not required to consolidate the operations of the Lessor Company. | |
QUARTERLY_FINANCIAL_DATA
QUARTERLY FINANCIAL DATA | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||||
Quarterly Financial Information [Text Block] | ' | |||||||||||||||||||||||||
13. QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||||||||||
The following table sets forth unaudited financial data for each of the Company’s last eight fiscal quarters. | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||||||||
Revenues | $ | 1,633 | $ | 1,720 | $ | 2,579 | $ | 1,366 | $ | 2,711 | $ | 3,441 | $ | 2,123 | $ | 528 | ||||||||||
Gross profit | 895 | 960 | 1,781 | 889 | 1,958 | 2,230 | 1,567 | 46 | ||||||||||||||||||
Income (loss) from operations | -921 | -919 | 16 | -601 | 15 | 61 | -381 | -1,956 | ||||||||||||||||||
Net income (loss) | -921 | -919 | 16 | -600 | $ | 15 | $ | 61 | $ | -381 | $ | -1,955 | ||||||||||||||
Net income (loss) per | ||||||||||||||||||||||||||
common share: | ||||||||||||||||||||||||||
Basic | $ | -0.03 | $ | -0.03 | $ | 0 | $ | -0.02 | $ | 0 | $ | 0 | $ | -0.01 | $ | -0.07 | ||||||||||
Diluted | $ | -0.03 | $ | -0.03 | $ | 0 | $ | -0.02 | $ | 0 | $ | 0 | $ | -0.01 | $ | -0.07 | ||||||||||
Due to rounding, quarterly net income (loss) per share may not add up to the total net loss for the year. | ||||||||||||||||||||||||||
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events [Text Block] | ' |
14. SUBSEQUENT EVENTS | |
On January 14, 2014, the Company closed a secondary public offering of a previously announced 7,780,000 shares of its common stock and an over-allotment option of 1,167,000 additional shares. The stock was offered to the public at $0.45 per share. The offering grossed and netted the Company approximately $4,026,000 and $3,644,000 in cash, respectively. The difference between the two is from the underwriting discount and other offering expenses payable by the Company. Aegis Capital Corp. acted as the sole underwriter for the offering. The Company offered the underwriter 389,000 of common stock warrants, at a price of $0.56, which will be exercisable one year after the date of the offering and will expire on the fifth anniversary of that offering. After the offering, the Company had 36,844,467 shares of common stock outstanding. | |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |||||||
Cash and Cash Equivalents | ||||||||
Cash and cash equivalents include cash and highly liquid investments with original maturities of three months or less when purchased. As of December 31, 2013 and 2012, cash equivalents were $0 and $0, respectively. | ||||||||
Accounts Receivable Allowance For Doubtful Accounts Policy [Policy Text Block] | ' | |||||||
Allowance for Doubtful Accounts | ||||||||
The Company records its allowance for doubtful accounts based upon its assessment of various factors. The Company considers historical experience, the age of the accounts receivable balances, credit quality of the Company’s customers, current economic conditions and other factors that may affect customers’ ability to pay. | ||||||||
Inventory, Policy [Policy Text Block] | ' | |||||||
Inventory | ||||||||
Inventory is stated at the lower of cost or market and cost is determined using the first-in, first-out method. Inventory is primarily comprised of finished goods. As of December 31, 2013, the majority of our inventory related to Government and Commercial Identity products for intended near-term sales. | ||||||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | |||||||
Long-Lived Assets and Impairment of Long-Lived Assets | ||||||||
The Company’s long-lived assets include property and equipment, goodwill and intangible assets. | ||||||||
The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with SFAS No. 144, “Accounting for Impairment or Disposal of Long-Lived Assets” and SFAS 142, “Goodwill and other Intangible Assets” (ASC Topic 360). To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. Impairment is measured at fair value. No impairments were recognized during the years ended December 31, 2013 or 2012. | ||||||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |||||||
Property and Equipment | ||||||||
Property and equipment are recorded at cost and are depreciated over their estimated useful lives ranging from three to ten-years using the straight-line method. Leasehold improvements are amortized utilizing the straight-line method over the lesser of the term of the lease or estimated useful life of the asset. | ||||||||
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' | |||||||
Goodwill | ||||||||
Goodwill represents the excess of acquisition cost over the fair value of net assets acquired in business combinations. Pursuant to ASC Topic 350, the Company tests goodwill for impairment on an annual basis in the fourth quarter, or between annual tests, in certain circumstances. Under guidance, the Company first assessed qualitative factors to determine whether it was necessary to perform the two-step quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price. | ||||||||
The Company determined that a two-step quantitative analysis was necessary for both years ended December 31, 2013 and 2012. See Note 5 and Management’s Discussion and Analysis. | ||||||||
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | ' | |||||||
Intangible Assets | ||||||||
Acquired intangible assets include trade names, patents, developed technology and backlog described more fully in Note 5. The Company uses the straight line method to amortize these assets over their estimated useful lives. The Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable in accordance with ASC Topic 360. To determine recoverability of its long-lived assets, the Company evaluates the probability that future undiscounted net cash flows, without interest charges, will be less than the carrying amount of the assets. Impairment is measured at fair value. No impairments were recognized during the years ended December 31, 2013 and 2012. | ||||||||
Internal Use Software, Policy [Policy Text Block] | ' | |||||||
Costs of Computer Software Developed or Obtained for Internal Use | ||||||||
The Company accounts for certain software costs under ASC Topic 350, which provides guidance for determining whether computer software is internal-use software and guidance on accounting for the proceeds of computer software originally developed or obtained for internal use and then subsequently sold to the public. It also provides guidance on capitalization of the costs incurred for computer software developed or obtained for internal use. | ||||||||
Research, Development, and Computer Software, Policy [Policy Text Block] | ' | |||||||
Capitalized Software Development Costs | ||||||||
Costs incurred internally in creating a computer software product shall be charged to expense when incurred as research and development until technological feasibility has been established for the product. Software production costs for computer software that is to be used as an integral part of a product or process shall not be capitalized until both (a) technological feasibility has been established for the software and (b) all research and development activities for the other components of the product or process have been completed. The Company has not capitalized any software costs for the years ended December 31, 2013 and 2012. | ||||||||
Deferred Charges, Policy [Policy Text Block] | ' | |||||||
Deferred Rent | ||||||||
The Company received certain rent abatements and incentives from landlords as an inducement to move into its New York office facility. In accordance with ASC Topic 840, the Company is amortizing these incentives on a straight line basis over the periods of the respective leases. | ||||||||
Revenue Recognition, Deferred Revenue [Policy Text Block] | ' | |||||||
Revenue Recognition and Deferred Revenue | ||||||||
Revenue is generally recognized when persuasive evidence of an arrangement exists, delivery has occurred, the fee is fixed and determinable, collectability is probable, and there is no future Company involvement or commitment. The Company sells its commercial products directly through its sales force and through distributors. Revenue from direct sales of products is recognized when shipped to the customer and title has passed. | ||||||||
Under the provisions of ASC Topic 605-25, “Revenue Arrangements with Multiple Deliverables,” for multi-element arrangements that include tangible products containing software essential to the tangible product’s functionality and undelivered software elements relating to the tangible product’s essential software, the Company allocates revenue to all deliverables based on their relative selling prices. In such circumstances, the Company uses a hierarchy to determine the selling price to be used for allocating revenue to deliverables: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence of selling price and (iii) best estimate of the selling price (“ESP”). VSOE generally exists only when the Company sells the deliverable separately and is the price actually charged by the Company for that deliverable. ESPs reflect the Company’s best estimates of what the selling prices of elements would be if they were sold regularly on a stand-alone basis. | ||||||||
The Company also recognizes revenues from licensing of its patented software to customers. The licensed software requires continuing service or post contractual customer support and performance; accordingly, a portion of the revenue is deferred based on its fair value and recognized ratably over the period in which the future service, support and performance are provided, which is generally one to three years. Royalties from the licensing of the Company’s technology are recognized as revenues in the period they are earned. | ||||||||
Revenue from research and development contracts are generally with government agencies under long-term cost-plus fixed-fee contracts, where revenue is based on time and material costs incurred. Revenue from these arrangements is recognized as time is spent on the contract and materials are purchased. Research and development costs are expensed as incurred. | ||||||||
The Company also performs consulting work for other companies. These services are billed based on time and materials. Revenue from these arrangements is also recognized as time is spent on the contract and materials are purchased. | ||||||||
Subscriptions to database information can be purchased for month-to-month, one, two, and three year periods. Revenue from subscriptions are deferred and recognized over the contractual period, which is typically three years. | ||||||||
The Company offers enhanced extended warranties for its sales of hardware and software at a set price. The revenue from these sales are deferred and recognized on a straight-line basis over the contractual period, which is typically one to three years. | ||||||||
Research and Development Expense, Policy [Policy Text Block] | ' | |||||||
Research and Development Costs | ||||||||
Research and development costs are charged to expense as incurred. | ||||||||
Shipping and Handling Cost, Policy [Policy Text Block] | ' | |||||||
Shipping Costs | ||||||||
The Company’s shipping and handling costs are included in cost of revenues for all periods presented. | ||||||||
Income Tax, Policy [Policy Text Block] | ' | |||||||
Income Taxes | ||||||||
The Company accounts for income taxes under in accordance with ASC Topic 740, “Accounting for Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss carryforwards. Deferred tax assets and liabilities are measured using expected tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The Company has recorded a full valuation allowance for its net deferred tax assets as of December 31, 2013 and 2012, due to the uncertainty of the realizability of those assets. | ||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | |||||||
Fair Value of Financial Instruments | ||||||||
The Company adheres to the provisions of SFAS No. 107, “Disclosures about Fair Value of Financial Instruments” (ASC Topic 820). This pronouncement requires that the Company calculate the fair value of financial instruments and include this additional information in the notes to financial statements when the fair value is different than the book value of those financial instruments. The Company’s financial instruments include cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and notes payable. At December 31, 2013 and 2012, the carrying value of the Company’s financial instruments approximated fair value, due to their short-term nature. | ||||||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | |||||||
Business Concentrations and Credit Risk | ||||||||
Financial instruments, which subject the Company to concentrations of credit risk, consist primarily of cash and cash equivalents. The Company maintains cash between three financial institutions. The cash equivalents consist of money market funds. The Company performs periodic evaluations of the relative credit standing of these institutions. | ||||||||
The Company’s sales are principally made to large retail customers, financial institutions concentrated in the United States of America and to U.S. government entities. The Company performs ongoing credit evaluations, generally does not require collateral, and establishes an allowance for doubtful accounts based upon factors surrounding the credit risk of customers, historical trends and other information. | ||||||||
During the years ended December 31, 2013 and 2012, the Company had one and three customers that accounted for approximately 17% and 40% of total revenues, respectively. The revenue resulted from wireless network installations in Washington State. These customers represented 12% and 5% of total accounts receivable at December 31, 2013 and 2012, respectively. | ||||||||
As of December 31, 2013, the Company had three suppliers for the production of its input devices. The Company has modified its software to operate in windows based systems and can integrate with different hardware platforms that are readily available in the marketplace. The Company does not maintain a manufacturing facility of its own and is not dependent on maintaining its production relationships due to the flexibility of its software to run on multiple existing platforms. | ||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | |||||||
Net Loss and Net Loss Per Share | ||||||||
Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. The dilutive effect of outstanding options and restricted stock is reflected in diluted earnings per share by application of the treasury stock method. The calculation of diluted net income (loss) per share excludes all anti-dilutive shares. The following table sets forth the computation of basic and diluted net income (loss) per share for the periods indicated: | ||||||||
The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive: | ||||||||
2013 | 2012 | |||||||
Stock options | 327,486 | 711,135 | ||||||
Warrants | - | - | ||||||
Total | 327,486 | 711,135 | ||||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |||||||
Share Based Compensation | ||||||||
The Company accounts for the issuance of equity awards to employees in accordance ASC Topic 715 and 505, which requires that the cost resulting from all share based payment transactions be recognized in the financial statements. This pronouncement establishes fair value as the measurement objective in accounting for share based payment arrangements and requires all companies to apply a fair value based measurement method in accounting for all share based payment transactions with employees. Period compensation costs are included in selling, general and administrative and research and development expenses. | ||||||||
The Company recognizes compensation expense related to stock option grants on a straight-line basis over the vesting period. | ||||||||
Options granted to consultants and other non-employees are accounted for in accordance with ASC Topic 505-50. Accordingly, such options are recorded at fair value at the date of grant and subsequently adjusted to fair value at the end of each reporting period until such options vest, and the fair value of the options, as adjusted, is amortized to consulting expense over the related vesting period. | ||||||||
Comprehensive Income, Policy [Policy Text Block] | ' | |||||||
Comprehensive Loss | ||||||||
The Company’s comprehensive loss is equal to its net loss for the years ended December 31, 2013 and 2012. | ||||||||
Segment Reporting, Policy [Policy Text Block] | ' | |||||||
Segment Information | ||||||||
The Company adheres to the provisions of ASC Topic 280, which establishes standards for the way public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in financial statements issued to shareholders. Management has determined that it has only one reporting segment. | ||||||||
Use of Estimates, Policy [Policy Text Block] | ' | |||||||
Use of Estimates | ||||||||
The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the Company’s financial statements and accompanying notes. Significant estimates and assumptions that affect amounts reported in the financial statements include impairment of goodwill and intangible assets, deferred tax valuation allowances, allowances for doubtful accounts, revenue allocation of multi-element arrangements and the fair value of options granted under the Company’s share based compensation plans. Due to the inherent uncertainties involved in making estimates, actual results reported in future periods may be different from those estimates. | ||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | |||||||
Recently Issued Accounting Pronouncements | ||||||||
The Company does not expect the impact of the future adoption of recently issued accounting pronouncements to have a material impact on the Company’s consolidated financial statements. | ||||||||
On February 5, 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income” The standard requires that entities present information about reclassification adjustments from accumulated other comprehensive income in their annual financial statements in a single note or on the face of the financial statements. Public companies will also have to provide this information in their interim financial statements. The standard requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and the income statement line items affected by the reclassification. If a component is not required to be reclassified to net income in its entirety, companies would instead cross reference to the related footnote for additional information. The Company adopted ASU 2013-02 on January 1, 2013, and expects no material impact on its financials as a result. | ||||||||
On September 13, 2013, the Internal Revenue Service issued final Tangible Property Regulations (TPR) under Internal Revenue Code (IRC) Section 162 and IRC Section 263(a), which prescribe the capitalization treatment of certain repair costs, asset betterments and other costs which could affect temporary deferred taxes. Although the regulations are not effective until tax years beginning on or after January 1, 2014, certain portions may require an accounting method change on a retroactive basis, thus requiring an IRC Section 481(a) adjustment related to fixed and real asset deferred taxes. Pursuant to U.S. GAAP, as of the date of the issuance, the release of the regulations is treated as a change in tax law. Therefore, we are required to determine whether there will be an impact on our financial statements as of October 31, 2013. We are currently analyzing the expected impact of the new regulations and we do not believe the impact will be material to our financial position or results of operations. We will continue to monitor any future changes in the TPR prospectively. | ||||||||
SIGNIFICANT_ACCOUNTING_POLICIE2
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Schedule of Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Table Text Block] | ' | |||||||
The following table summarizes the common stock equivalents excluded from loss per diluted share because their effect would be anti-dilutive: | ||||||||
2013 | 2012 | |||||||
Stock options | 327,486 | 711,135 | ||||||
Warrants | - | - | ||||||
Total | 327,486 | 711,135 | ||||||
ACCOUNTS_RECEIVABLE_Tables
ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Receivables [Abstract] | ' | |||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | ' | |||||||
The components of accounts receivable, net are as follows: | ||||||||
2013 | 2012 | |||||||
Accounts receivable - billed | $ | 975,996 | $ | 774,726 | ||||
Accounts receivable - unbilled | 65,523 | 96,634 | ||||||
Less: Allowance for doubtful accounts | - | -1,613 | ||||||
Accounts receivable, net | $ | 1,041,519 | $ | 869,747 | ||||
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment [Table Text Block] | ' | |||||||
Property and equipment are comprised of the following as of December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Computer equipment | $ | 743,857 | $ | 719,053 | ||||
Furniture and fixtures | 72,480 | 72,480 | ||||||
Leasehold improvements | 169,032 | 169,032 | ||||||
Office equipment | 491,340 | 435,302 | ||||||
Vehicles | 147,310 | 147,310 | ||||||
1,624,019 | 1,543,177 | |||||||
Less - Accumulated depreciation and amortization | 1,254,924 | 1,093,739 | ||||||
$ | 369,095 | $ | 449,438 | |||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS AND IMPAIRMENT (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | ' | ||||||||||||
The changes in the carrying amount of intangible assets for the year ended December 31, 2013 and 2012 were as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Balance at beginning of year | $ | 4,631,577 | $ | 5,551,149 | |||||||||
Amortization expense | -907,223 | -919,572 | |||||||||||
Balance at end of year | $ | 3,724,354 | $ | 4,631,577 | |||||||||
Schedule of Intangible Assets and Goodwill [Table Text Block] | ' | ||||||||||||
The following table sets forth the components of these intangible assets as of December 31, 2013 and 2012: | |||||||||||||
As of December 31, 2013 | |||||||||||||
Estimated | Adjusted | Net | |||||||||||
Useful | Carrying | Accumulated | as of | ||||||||||
Life | Amount | Amortization | 12/31/13 | ||||||||||
Trade name | 20 years | $ | 704,458 | $ | -260,641 | $ | 443,817 | ||||||
Patents and copyrights | 17 years | 1,117,842 | -454,421 | 663,421 | |||||||||
Non-compete agreements | 5 years | 310,000 | -268,667 | 41,333 | |||||||||
Developed technology | 7 years | 3,941,310 | -3,295,135 | 646,175 | |||||||||
Backlog | 3 years | 303,400 | -303,400 | - | |||||||||
Non-contractual customer relationships | 15 years | 3,268,568 | -1,338,960 | 1,929,608 | |||||||||
$ | 9,645,578 | $ | -5,921,224 | $ | 3,724,354 | ||||||||
As of December 31, 2012 | |||||||||||||
Adjusted | Net | ||||||||||||
Carrying | Accumulated | as of | |||||||||||
Amount | Amortization | 12/31/12 | |||||||||||
Trade name | $ | 704,458 | $ | -229,975 | $ | 474,483 | |||||||
Patents and copyrights | 1,117,842 | -396,575 | 721,267 | ||||||||||
Non-compete agreements | 310,000 | -206,667 | 103,333 | ||||||||||
Developed technology | 3,941,310 | -2,760,370 | 1,180,940 | ||||||||||
Backlog | 303,400 | -303,400 | - | ||||||||||
Non-contractual customer relationships | 3,268,568 | -1,117,014 | 2,151,554 | ||||||||||
$ | 9,645,578 | $ | -5,014,001 | $ | 4,631,577 | ||||||||
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | ' | ||||||||||||
The following summarizes amortization of acquisition related intangible assets included in the statement of operations: | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | ||||||||||||
Cost of sales | $ | 771,416 | $ | 771,416 | |||||||||
General and administrative | 135,807 | 148,156 | |||||||||||
$ | 907,223 | $ | 919,572 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | ' | ||||||||||||
The Company expects that amortization expense for the next five succeeding years will be as follows: | |||||||||||||
2014 | $ | 416,657 | |||||||||||
2015 | $ | 310,458 | |||||||||||
2016 | $ | 310,458 | |||||||||||
2017 | $ | 310,458 | |||||||||||
2018 | $ | 310,458 | |||||||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Accrued Liabilities [Table Text Block] | ' | |||||||
Accrued expenses are comprised of the following as of December 31, 2013 and 2012: | ||||||||
2013 | 2012 | |||||||
Professional fees | $ | 136,152 | $ | 186,488 | ||||
Payroll and related | 362,960 | 345,013 | ||||||
Navy Contract Close-out | 117,970 | - | ||||||
Other | 84,846 | 25,313 | ||||||
$ | 701,928 | $ | 556,814 | |||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | |||||||
Significant components of the Company’s deferred tax assets for federal and state income taxes as of December 31, 2013 and 2012 are as follows: | ||||||||
2013 | 2012 | |||||||
Deferred tax assets: | ||||||||
Net operating loss carryforwards | $ | 16,473,000 | $ | 16,024,000 | ||||
Reserves | - | 1,000 | ||||||
Deferred rent | 66,000 | 74,000 | ||||||
Research & development tax credits | 139,000 | 78,000 | ||||||
Total deferred tax assets | 16,678,000 | 16,177,000 | ||||||
Deferred tax liabilities: | ||||||||
Intangible assets | -1,355,000 | -1,718,000 | ||||||
Other | -1,000 | - | ||||||
Depreciation | -138,000 | -120,000 | ||||||
Total deferred tax liabilities | -1,494,000 | -1,838,000 | ||||||
Net deferred tax assets | 15,184,000 | 14,339,000 | ||||||
Less: Valuation allowance | -15,184,000 | -14,339,000 | ||||||
Deferred tax assets, net of allowance | $ | - | $ | - | ||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Stockholders Equity Note [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||||||
Stock option activity under the 1998, 1999, 2001, 2003 and 2006 Stock Option Plans during the periods indicated below is as follows: | |||||||||||||||||
Weighted- | |||||||||||||||||
Number of | Weighted- | average | |||||||||||||||
Shares | average | Remaining | Aggregate | ||||||||||||||
Subject to | Exercise | Contractual | Intrinsic | ||||||||||||||
Issuance | Price | Term | Value | ||||||||||||||
Outstanding at December 31, 2011 | 1,244,260 | $ | 1.93 | 2.29 years | |||||||||||||
Granted | - | - | |||||||||||||||
Forfeited or expired | -235,862 | 3.1 | |||||||||||||||
Exercised | -261,763 | 0.5 | $ | 348,352 | |||||||||||||
Outstanding at December 31, 2012 | 746,635 | $ | 2.06 | 1.66 years | |||||||||||||
Granted | 135,000 | 0.39 | |||||||||||||||
Forfeited or expired | -400,949 | 1.89 | |||||||||||||||
Exercised | -153,200 | 0.46 | |||||||||||||||
Outstanding at December 31, 2013 | 327,486 | $ | 2.31 | 2.42 years | $ | 12,100 | |||||||||||
Exercisable at December 31, 2013 | 212,236 | $ | 3.33 | 1.52 years | $ | - | |||||||||||
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | ' | ||||||||||||||||
The following is a summary of stock options as of December 31, 2013: | |||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||
Weighted | Weighted- | ||||||||||||||||
Weighted- | average | average | |||||||||||||||
Number of | average | Exercise | Number of | Exercise | |||||||||||||
Range of Exercise Prices | Options | Remaining Life | Price | Options | Price | ||||||||||||
$0.39 to $1.00 | 110,000 | 1.42 | years | $ | 0.13 | - | $ | - | |||||||||
$1.01 to $3.00 | 110,636 | 0.27 | years | $ | 0.5 | 105,386 | $ | 0.73 | |||||||||
$3.01 to $5.00 | 25,000 | 0.32 | years | $ | 0.28 | 25,000 | $ | 0.43 | |||||||||
$5.01 to $5.64 | 81,850 | 0.4 | years | $ | 1.41 | 81,850 | $ | 2.17 | |||||||||
327,486 | 2.42 | years | $ | 2.31 | 212,236 | $ | 3.33 | ||||||||||
Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan [Table Text Block] | ' | ||||||||||||||||
Share based compensation expense for the years ended December 31, 2013 and 2012 is as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Compensation cost recognized: | |||||||||||||||||
Stock options | $ | 19,053 | $ | 52,677 | |||||||||||||
Restricted stock | 0 | 0 | |||||||||||||||
$ | 19,053 | $ | 52,677 | ||||||||||||||
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | ' | ||||||||||||||||
Share based compensation is included in operating expenses as follows: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | ||||||||||||||||
Selling | $ | 499 | $ | 9,216 | |||||||||||||
General and administrative | 6,467 | 16,788 | |||||||||||||||
Research and development | 12,087 | 26,673 | |||||||||||||||
$ | 19,053 | $ | 52,677 | ||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
Future minimum lease payments under these lease agreements are as follows for the years ended December 31: | |||||
2014 | $ | 520,623 | |||
2015 | 408,030 | ||||
2016 | 408,019 | ||||
2017 | 379,226 | ||||
2018 | 82,327 | ||||
Total | $ | 1,798,225 | |||
QUARTERLY_FINANCIAL_DATA_Table
QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | |||||||||||||||||||||||||
The following table sets forth unaudited financial data for each of the Company’s last eight fiscal quarters. | ||||||||||||||||||||||||||
Year Ended December 31, 2013 | Year Ended December 31, 2012 | |||||||||||||||||||||||||
First | Second | Third | Fourth | First | Second | Third | Fourth | |||||||||||||||||||
Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | Quarter | |||||||||||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||||||||||||||
Income Statement Data: | ||||||||||||||||||||||||||
Revenues | $ | 1,633 | $ | 1,720 | $ | 2,579 | $ | 1,366 | $ | 2,711 | $ | 3,441 | $ | 2,123 | $ | 528 | ||||||||||
Gross profit | 895 | 960 | 1,781 | 889 | 1,958 | 2,230 | 1,567 | 46 | ||||||||||||||||||
Income (loss) from operations | -921 | -919 | 16 | -601 | 15 | 61 | -381 | -1,956 | ||||||||||||||||||
Net income (loss) | -921 | -919 | 16 | -600 | $ | 15 | $ | 61 | $ | -381 | $ | -1,955 | ||||||||||||||
Net income (loss) per | ||||||||||||||||||||||||||
common share: | ||||||||||||||||||||||||||
Basic | $ | -0.03 | $ | -0.03 | $ | 0 | $ | -0.02 | $ | 0 | $ | 0 | $ | -0.01 | $ | -0.07 | ||||||||||
Diluted | $ | -0.03 | $ | -0.03 | $ | 0 | $ | -0.02 | $ | 0 | $ | 0 | $ | -0.01 | $ | -0.07 | ||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE3
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | 327,486 | 711,135 |
Employee Stock Option [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | 327,486 | 711,135 |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount | 0 | 0 |
SIGNIFICANT_ACCOUNTING_POLICIE4
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Entity Wide Accounts Receivable Major Customer Percentage | 12.00% | 5.00% |
Cash Equivalents, at Carrying Value | $0 | $0 |
Deferred Revenue, Description | 'Subscriptions to database information can be purchased for month-to-month, one, two, and three year periods. Revenue from subscriptions are deferred and recognized over the contractual period, which is typically three years. | ' |
Minimum [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' |
Maximum [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' |
Customer A [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | 17.00% | 40.00% |
Customer B [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | 17.00% | 40.00% |
Customer C [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | 17.00% | 40.00% |
ACCOUNTS_RECEIVABLE_Details
ACCOUNTS RECEIVABLE (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' |
Accounts receivable - billed | $975,996 | $774,726 |
Accounts receivable - unbilled | 65,523 | 96,634 |
Less: Allowance for doubtful accounts | 0 | -1,613 |
Accounts receivable, net | $1,041,519 | $869,747 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross, Total | $1,624,019 | $1,543,177 |
Less - Accumulated depreciation and amortization | 1,254,924 | 1,093,739 |
Property, Plant and Equipment, Net | 369,095 | 449,438 |
Computer Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross, Total | 743,857 | 719,053 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross, Total | 72,480 | 72,480 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross, Total | 169,032 | 169,032 |
Office Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross, Total | 491,340 | 435,302 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, Plant and Equipment, Gross, Total | $147,310 | $147,310 |
PROPERTY_AND_EQUIPMENT_Details1
PROPERTY AND EQUIPMENT (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' |
Depreciation | $161,185 | $174,601 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS AND IMPAIRMENT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Balance at beginning of year | $4,631,577 | $5,551,149 |
Amortization expense | -907,223 | -919,572 |
Balance at end of year | $3,724,354 | $4,631,577 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS AND IMPAIRMENT (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
Patents [Member] | Patents [Member] | Noncompete Agreements [Member] | Noncompete Agreements [Member] | Developed Technology Rights [Member] | Developed Technology Rights [Member] | Backlog [Member] | Backlog [Member] | Non Contractual Customer Relationships [Member] | Non Contractual Customer Relationships [Member] | Trade Names [Member] | Trade Names [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated Useful Life | ' | ' | ' | '17 years | ' | '5 years | ' | '7 years | ' | '3 years | ' | '15 years | ' | '20 years | ' |
Adjusted Carrying Amount | $9,645,578 | $9,645,578 | ' | $1,117,842 | $1,117,842 | $310,000 | $310,000 | $3,941,310 | $3,941,310 | $303,400 | $303,400 | $3,268,568 | $3,268,568 | $704,458 | $704,458 |
Accumulated Amortization | -5,921,224 | -5,014,001 | ' | -454,421 | -396,575 | -268,667 | -206,667 | -3,295,135 | -2,760,370 | -303,400 | -303,400 | -1,338,960 | -1,117,014 | -260,641 | -229,975 |
Net | $3,724,354 | $4,631,577 | $5,551,149 | $663,421 | $721,267 | $41,333 | $103,333 | $646,175 | $1,180,940 | $0 | $0 | $1,929,608 | $2,151,554 | $443,817 | $474,483 |
GOODWILL_AND_INTANGIBLE_ASSETS4
GOODWILL AND INTANGIBLE ASSETS AND IMPAIRMENT (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Cost of sales | $771,416 | $771,416 |
General and administrative | 135,807 | 148,156 |
Amortization of Intangible Assets | $907,223 | $919,572 |
GOODWILL_AND_INTANGIBLE_ASSETS5
GOODWILL AND INTANGIBLE ASSETS AND IMPAIRMENT (Details 3) (USD $) | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' |
2014 | $416,657 |
2015 | 310,458 |
2016 | 310,458 |
2017 | 310,458 |
2018 | $310,458 |
GOODWILL_AND_INTANGIBLE_ASSETS6
GOODWILL AND INTANGIBLE ASSETS AND IMPAIRMENT (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Goodwill | $12,308,661 | $12,308,661 |
REVOLVING_LINE_OF_CREDIT_Detai
REVOLVING LINE OF CREDIT (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Aug. 17, 2011 | |
Line of Credit Facility [Line Items] | ' | ' |
Line of Credit Facility, Initiation Date | 17-Aug-11 | ' |
Line of Credit Facility, Expiration Period | '2 years | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | $2,000,000 |
Line of Credit Facility, Interest Rate Description | 'The facility bears interest at a rate of U.S. prime (3.25% at December 31, 2013) plus 1.25% - 1.75%, depending on the Company’s cash plus availability. | ' |
Line Of Credit Facility, Expiration Date | 15-Oct-14 | ' |
Line of Credit Facility, Remaining Borrowing Capacity | $593,575 | ' |
Debt Instrument, Covenant Description | 'The facility contains a tangible net worth covenant requiring that, as of each monthly reporting, total assets minus intangible assets minus capitalized software development costs minus total liabilities plus subordinated debt is at least equal to $(800,000), starting October 31, 2013, and increasing immediately by 50% for new debt or equity received and 50% of quarterly net income (with no reduction for losses). | ' |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Accrued Expenses [Line Items] | ' | ' |
Professional fees | $136,152 | $186,488 |
Payroll and related | 362,960 | 345,013 |
Navy Contract Close-out | 117,970 | 0 |
Other | 84,846 | 25,313 |
Accrued Liabilities | $701,928 | $556,814 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax assets: | ' | ' |
Net operating loss carryforwards | $16,473,000 | $16,024,000 |
Reserves | 0 | 1,000 |
Deferred rent | 66,000 | 74,000 |
Research & development tax credits | 139,000 | 78,000 |
Total deferred tax assets | 16,678,000 | 16,177,000 |
Deferred tax liabilities: | ' | ' |
Intangible assets | -1,355,000 | -1,718,000 |
Other | -1,000 | 0 |
Depreciation | -138,000 | -120,000 |
Total deferred tax liabilities | -1,494,000 | -1,838,000 |
Net deferred tax assets | 15,184,000 | 14,339,000 |
Less: Valuation allowance | -15,184,000 | -14,339,000 |
Deferred tax assets, net of allowance | $0 | $0 |
INCOME_TAXES_Details_Textual
INCOME TAXES (Details Textual) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Income Taxes [Line Items] | ' |
Operating Loss Carryforwards | $41.20 |
Operating Loss Carryforwards Expiration Term | 'from 2018 through 2030 |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Outstanding-Number of Shares Subject to Issuance | 746,635 | 1,244,260 | ' |
Granted-Number of Shares Subject to Issuance | 135,000 | 0 | ' |
Forfeited or expired-Number of Shares Subject to Issuance | -400,949 | -235,862 | ' |
Exercised-Number of Shares Subject to Issuance | -153,200 | -261,763 | ' |
Outstanding-Number of Shares Subject to Issuance | 327,486 | 746,635 | 1,244,260 |
Exercisable-Number of Shares Subject to Issuance | 212,236 | ' | ' |
Weighted-average Exercise Price, Outstanding | $2.06 | $1.93 | ' |
Weighted-average Exercise Price, Granted | $0.39 | $0 | ' |
Weighted-average Exercise Price, Forfeited or expired | $1.89 | $3.10 | ' |
Weighted-average Exercise Price, Exercised | $0.46 | $0.50 | ' |
Weighted-average Exercise Price, Outstanding | $2.31 | $2.06 | $1.93 |
Weighted-average Exercise Price, Exercisable | $3.33 | ' | ' |
Weighted-average Remaining Contractual Term, Outstanding | '2 years 5 months 1 day | '1 year 7 months 28 days | '2 years 3 months 14 days |
Weighted-average Remaining Contractual Term, Exercisable | '1 year 6 months 7 days | ' | ' |
Exercised-Aggregate Intrinsic Value | ' | $348,352 | ' |
Outstanding-Aggregate Intrinsic Value | 12,100 | ' | ' |
Exercisable-Aggregate Intrinsic Value | $0 | ' | ' |
STOCKHOLDERS_EQUITY_Details_1
STOCKHOLDERS' EQUITY (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Options Outstanding - Number Of Options | 327,486 | 746,635 | 1,244,260 |
Options Outstanding - Weighted-Average Remaining Life | '2 years 5 months 1 day | ' | ' |
Options Outstanding - Weighted Average Exercise Price | $2.31 | ' | ' |
Options Exercisable - Number of Options | 212,236 | ' | ' |
Options Exercisable - Weighted Average Exercise Price | $3.33 | ' | ' |
Exercise Price One [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices - Lower Range Limit | $0.39 | ' | ' |
Range of Exercise Prices - Upper Range Limit | $1 | ' | ' |
Options Outstanding - Number Of Options | 110,000 | ' | ' |
Options Outstanding - Weighted-Average Remaining Life | '1 year 5 months 1 day | ' | ' |
Options Outstanding - Weighted Average Exercise Price | $0.13 | ' | ' |
Options Exercisable - Number of Options | 0 | ' | ' |
Options Exercisable - Weighted Average Exercise Price | $0 | ' | ' |
Exercise Price Two [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices - Lower Range Limit | $1.01 | ' | ' |
Range of Exercise Prices - Upper Range Limit | $3 | ' | ' |
Options Outstanding - Number Of Options | 110,636 | ' | ' |
Options Outstanding - Weighted-Average Remaining Life | '3 months 7 days | ' | ' |
Options Outstanding - Weighted Average Exercise Price | $0.50 | ' | ' |
Options Exercisable - Number of Options | 105,386 | ' | ' |
Options Exercisable - Weighted Average Exercise Price | $0.73 | ' | ' |
Exercise Price Three [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices - Lower Range Limit | $3.01 | ' | ' |
Range of Exercise Prices - Upper Range Limit | $5 | ' | ' |
Options Outstanding - Number Of Options | 25,000 | ' | ' |
Options Outstanding - Weighted-Average Remaining Life | '3 months 25 days | ' | ' |
Options Outstanding - Weighted Average Exercise Price | $0.28 | ' | ' |
Options Exercisable - Number of Options | 25,000 | ' | ' |
Options Exercisable - Weighted Average Exercise Price | $0.43 | ' | ' |
Exercise Price Four [Member] | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' | ' | ' |
Range of Exercise Prices - Lower Range Limit | $5.01 | ' | ' |
Range of Exercise Prices - Upper Range Limit | $5.64 | ' | ' |
Options Outstanding - Number Of Options | 81,850 | ' | ' |
Options Outstanding - Weighted-Average Remaining Life | '4 months 24 days | ' | ' |
Options Outstanding - Weighted Average Exercise Price | $1.41 | ' | ' |
Options Exercisable - Number of Options | 81,850 | ' | ' |
Options Exercisable - Weighted Average Exercise Price | $2.17 | ' | ' |
STOCKHOLDERS_EQUITY_Details_2
STOCKHOLDERS' EQUITY (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
ShareBasedCompensationAbstract | ' | ' |
Stock options | $19,053 | $52,677 |
Restricted stock | 0 | 0 |
Share-based Compensation, Total | $31,653 | $52,677 |
STOCKHOLDERS_EQUITY_Details_3
STOCKHOLDERS' EQUITY (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | $19,053 | $52,677 |
Selling and Marketing Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | 499 | 9,216 |
General and Administrative Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | 6,467 | 16,788 |
Research and Development Expense [Member] | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' |
Allocated Share-based Compensation Expense | $12,087 | $26,673 |
STOCKHOLDERS_EQUITY_Details_Te
STOCKHOLDERS' EQUITY (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 1997 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Preferred Stock, Par or Stated Value Per Share | ' | ' | $0.01 |
Preferred Stock, Liquidation Preference Per Share | ' | ' | $1 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 6,250,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Description | 'Incentive stock options granted under these Plans must be granted at an exercise price that is not less than the fair market value per share at the date of the grant and the exercise price must not be less than 110% of the fair market value per share at the date of the grant for grants to persons owning more than 10% of the voting stock of the Company. | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $0.39 | $0 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 2,548,087 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $41,700 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award Options Expected To Recognized Weighted Average Period | '3 years 2 months 1 day | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 135,000 | 0 | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs, Capitalized Amount | $0 | $0 | ' |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | Dec. 31, 2013 |
Commitments And contingencies [Line Items] | ' |
2014 | $520,623 |
2015 | 408,030 |
2016 | 408,019 |
2017 | 379,226 |
2018 | 82,327 |
Total | $1,798,225 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Textual) (USD $) | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | ||||
Nov. 30, 2010 | Mar. 31, 2009 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 11, 2011 | Dec. 31, 2013 | Mar. 16, 2009 | Mar. 31, 2009 | |
Retirement Savings Plan [Member] | Investor [Member] | Investor Relations Contact [Member] | ||||||
Commitments And contingencies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Granted Stock Restricted Period | ' | 'two years | ' | ' | ' | ' | ' | ' |
Long-term Purchase Commitment, Time Period | ' | ' | '30 days | ' | ' | ' | ' | ' |
Fees Reduced | ' | ' | ' | ' | $10,000 | ' | ' | ' |
Severance Agreement Commitments Description | 'On November 16, 2010, the Company entered into an Executive Severance Agreement with Mr. Mundy, the Company’s former Chief Financial Officer. Under the agreement, if Mr. Mundy was terminated without cause, if he resigned with “good reason” (as defined in the agreement), or if he was terminated as a result of a change of control, he would have been entitled to 1.99 years of his then base salary, a gross amount equal to any quarterly bonus target applicable during the quarter, accelerated vesting of all outstanding stock options and coverage of health benefits for a period of up to 12 months. The agreement had a term of two years. | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense | ' | ' | 532,081 | 534,047 | ' | ' | ' | ' |
Percentage Of Royalties On Gross Sales | ' | ' | 0.01% | ' | ' | ' | ' | ' |
Gross Sales Lower Limit | ' | ' | 2,000,000 | ' | ' | ' | ' | ' |
Gross Sales Higher Limit | ' | ' | 52,000,000 | ' | ' | ' | ' | ' |
Percentage Of Royalties On Gross Sales In Excess Of Specified Limit | ' | ' | 0.00% | ' | ' | ' | ' | ' |
Fees and Commissions | ' | ' | 1,650 | ' | ' | ' | ' | ' |
Commitments and Contingencies | ' | ' | ' | ' | ' | ' | 13,500 | ' |
Restricted Stock Shares | ' | ' | ' | ' | ' | ' | ' | 10,417 |
Deferred Compensation Arrangement with Individual, Compensation Expense | ' | ' | 15,250 | ' | ' | ' | ' | ' |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | ' | ' | ' | ' | ' | 35.00% | ' | ' |
Defined Contribution Plan, Employer Discretionary Contribution Amount | ' | ' | $38,050 | $52,972 | ' | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Maximum Contractual Term | ' | ' | 'nine months | ' | ' | ' | ' | ' |
Defined Contribution Plan Employer Matching Contribution Description | ' | ' | ' | ' | ' | 'The Company has elected to contribute a matching contribution equal to 50% of the first 6% of an eligible employees deferral election. | ' | ' |
RELATED_PARTY_TRANSACTIONS_Det
RELATED PARTY TRANSACTIONS (Details Textual) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Related Party Transaction [Line Items] | ' | ' |
Lease Term | '10 years | ' |
Lease Expiration | '2017 | ' |
Related Party Transaction, Amounts of Transaction | $85,498 | ' |
Payments for Rent | 92,046 | 91,780 |
Guarantor Obligations, Maximum Exposure, Undiscounted | $177,999 | ' |
Rent Annual Increase Basis | 'based on the increase in the CPI index plus 1%. | ' |
QUARTERLY_FINANCIAL_DATA_UNAUD
QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Statement Data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $1,366,000 | $2,579,000 | $1,720,000 | $1,633,000 | $528,000 | $2,123,000 | $3,441,000 | $2,711,000 | ' | ' |
Gross profit | 889,000 | 1,781,000 | 960,000 | 895,000 | 46,000 | 1,567,000 | 2,230,000 | 1,958,000 | 4,525,553 | 5,801,220 |
Income (loss) from operations | -601,000 | 16,000 | -919,000 | -921,000 | -1,956,000 | -381,000 | 61,000 | 15,000 | ' | ' |
Net Income (Loss) | ($600,000) | $16,000 | ($919,000) | ($921,000) | ($1,955,000) | ($381,000) | $61,000 | $15,000 | ($2,424,256) | ($2,260,086) |
Net income (loss) per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in dollars per share) | ($0.02) | $0 | ($0.03) | ($0.03) | ($0.07) | ($0.01) | $0 | $0 | ($0.09) | ($0.08) |
Diluted (in dollars per share) | ($0.02) | $0 | ($0.03) | ($0.03) | ($0.07) | ($0.01) | $0 | $0 | ($0.09) | ($0.08) |
SUBSEQUENT_EVENTS_Details_Text
SUBSEQUENT EVENTS (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 |
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | ' | ' | ' |
Subsequent Event, Date | ' | ' | 14-Jan-14 |
Common Stock Shares previously announced For Secondary public offering | ' | ' | 7,780,000 |
Common Stock Over Allotment Option | ' | ' | 1,167,000 |
Sale of Stock, Price Per Share | ' | ' | $0.45 |
Proceeds From Issuance Of Common Stock Gross | ' | ' | $4,026,000 |
Proceeds from Issuance of Common Stock | ' | ' | $3,644,000 |
Common Stock Warrants Offered To Underwriters | ' | ' | 389,000 |
Common Stock Warrants Offered To Underwriters, Price Per Share | ' | ' | $0.56 |
Common Stock, Shares, Outstanding | 27,897,467 | 27,724,267 | 36,844,467 |