Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 09, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | CurAegis Technologies, Inc. | |
Entity Central Index Key | 0001063197 | |
Trading Symbol | crgs | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 50,698,674 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash | $ 36,000 | $ 53,000 |
Inventory (net) | ||
Prepaid expenses and other current assets | 4,000 | 25,000 |
Total current assets | 40,000 | 78,000 |
Right to use building asset (net) | 205,000 | |
Property and equipment (net) | 48,000 | 62,000 |
Software (net) | 4,000 | 10,000 |
Total non-current assets | 257,000 | 72,000 |
Total Assets | 297,000 | 150,000 |
Current Liabilities: | ||
Liability for Inventory Held at Vendor | 1,477,000 | 1,462,000 |
Accounts payable | 462,000 | 323,000 |
Promissory notes payable | 425,000 | |
Accrued interest | 310,000 | 166,000 |
Senior convertible notes (net) | 285,000 | |
Current right-to-use obligation | 147,000 | |
Other current liabilities | 48,000 | 40,000 |
Accrued wages and benefits | 47,000 | 35,000 |
Total current liabilities | 3,201,000 | 2,026,000 |
Non-current right-to-use obligation | 102,000 | |
Senior convertible notes (net) | 7,387,000 | 6,603,000 |
Total Liabilities | 10,690,000 | 8,629,000 |
Commitments and other matters | ||
Stockholders' Deficiency: | ||
Common stock, $.01 par value, 400,000,000 shares authorized; shares issued and outstanding at June 30, 2019 and December 31, 2018: 50,529,701 and 50,364,549, respectively | 505,000 | 504,000 |
Additional paid-in capital | 77,923,000 | 77,725,000 |
Accumulated deficit | (89,262,000) | (87,149,000) |
Total Stockholders' Deficiency | (10,393,000) | (8,479,000) |
Total Liabilities and Stockholders' Deficiency | 297,000 | 150,000 |
Preferred Class C [Member] | ||
Stockholders' Deficiency: | ||
Preferred stock, value | 157,000 | 157,000 |
Series C2 Preferred Stock [Member] | ||
Stockholders' Deficiency: | ||
Preferred stock, value | 245,000 | 245,000 |
Series C3 Preferred Stock [Member] | ||
Stockholders' Deficiency: | ||
Preferred stock, value | 33,000 | 33,000 |
Preferred Class A [Member] | ||
Stockholders' Deficiency: | ||
Preferred stock, value | 5,000 | 5,000 |
Preferred Class B [Member] | ||
Stockholders' Deficiency: | ||
Preferred stock, value | $ 1,000 | $ 1,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 50,529,701 | 50,364,549 |
Common stock, shares outstanding (in shares) | 50,529,701 | 50,364,549 |
Preferred Class C [Member] | ||
Preferred stock, cumulative dividend per share (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares issued (in shares) | 15,687,500 | 15,687,500 |
Preferred stock, shares outstanding (in shares) | 15,687,500 | 15,687,500 |
Series C2 Preferred Stock [Member] | ||
Preferred stock, cumulative dividend per share (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares issued (in shares) | 24,500,000 | 24,500,000 |
Preferred stock, shares outstanding (in shares) | 24,500,000 | 24,500,000 |
Series C3 Preferred Stock [Member] | ||
Preferred stock, cumulative dividend per share (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares issued (in shares) | 3,268,000 | 3,268,000 |
Preferred stock, shares outstanding (in shares) | 3,268,000 | 3,268,000 |
Preferred Class A [Member] | ||
Preferred stock, cumulative dividend per share (in dollars per share) | $ 0.40 | $ 0.40 |
Preferred stock, shares issued (in shares) | 468,221 | 468,221 |
Preferred stock, shares outstanding (in shares) | 468,221 | 468,221 |
Preferred Class B [Member] | ||
Preferred stock, cumulative dividend per share (in dollars per share) | $ 0.50 | $ 0.50 |
Preferred stock, shares issued (in shares) | 67,500 | 67,500 |
Preferred stock, shares outstanding (in shares) | 67,500 | 67,500 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue and Cost of revenue: | ||||
CURA revenue | $ 2,000 | $ 8,000 | $ 9,000 | $ 16,000 |
Cost of revenue | 3,000 | 33,000 | 9,000 | 70,000 |
Loss on revenue | (1,000) | (25,000) | (54,000) | |
Costs and expenses: | ||||
Engineering and development | 218,000 | 329,000 | 549,000 | 734,000 |
General and administrative | 443,000 | 529,000 | 987,000 | 1,154,000 |
Total costs and expenses | 661,000 | 858,000 | 1,536,000 | 1,888,000 |
Loss from operations | (662,000) | (883,000) | (1,536,000) | (1,942,000) |
Non-operating expense: | ||||
Interest expense | (304,000) | (259,000) | (578,000) | (496,000) |
Other income | 1,000 | 1,000 | 1,000 | |
Non-operating expense | (303,000) | (259,000) | (577,000) | (495,000) |
Loss before income taxes | (965,000) | (1,142,000) | (2,113,000) | (2,437,000) |
Income taxes | ||||
Net loss | (965,000) | (1,142,000) | (2,113,000) | (2,437,000) |
Preferred stock dividends | 54,000 | 54,000 | 108,000 | 108,000 |
Net loss attributable to common stockholders | $ (1,019,000) | $ (1,196,000) | $ (2,221,000) | $ (2,545,000) |
Net loss per common share attributable to common stockholders | ||||
Basic and Diluted (in dollars per share) | $ (0.02) | $ (0.02) | $ (0.04) | $ (0.05) |
Weighted average number of shares of common stock | ||||
Basic and Diluted (in shares) | 50,478,000 | 49,571,000 | 50,456,000 | 49,302,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Changes in Stockholders' Equity (Deficiency) (Unaudited) - USD ($) | Conversion of Preferred C to Common Share [Member]Preferred Stock [Member]Series C Preferred Stock [Member] | Conversion of Preferred C to Common Share [Member]Common Stock [Member] | Conversion of Preferred C2 to Common Stock [Member]Preferred Stock [Member]Series C2 Preferred Stock [Member] | Conversion of Preferred C2 to Common Stock [Member]Common Stock [Member] | Conversion of Preferred C3 to Common Stock [Member]Preferred Stock [Member]Series C3 Preferred Stock [Member] | Conversion of Preferred C3 to Common Stock [Member]Common Stock [Member] | Preferred Stock [Member]Series C Preferred Stock [Member] | Preferred Stock [Member]Series C2 Preferred Stock [Member] | Preferred Stock [Member]Series C3 Preferred Stock [Member] | Preferred Stock [Member]Preferred Class A [Member] | Preferred Stock [Member]Preferred Class B [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Series C3 Preferred Stock [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 15,937,500 | 25,000,000 | 3,388,000 | 468,221 | 67,500 | 48,979,546 | ||||||||||
Balance at Dec. 31, 2017 | $ 159,000 | $ 250,000 | $ 34,000 | $ 5,000 | $ 1,000 | $ 490,000 | $ 76,494,000 | $ (80,841,000) | $ (3,408,000) | |||||||
Issuance of warrants with convertible note | 208,000 | 208,000 | ||||||||||||||
Stock-based compensation | 2,000 | 2,000 | ||||||||||||||
Net Loss | (1,295,000) | (1,295,000) | ||||||||||||||
Conversion Preferred to common stock (in shares) | (80,000) | 80,000 | ||||||||||||||
Conversion Preferred to common stock | $ (1,000) | $ 1,000 | ||||||||||||||
Beneficial conversion feature on convertible notes | 11,000 | 11,000 | ||||||||||||||
Balance (in shares) at Mar. 31, 2018 | 15,937,500 | 25,000,000 | 3,308,000 | 468,221 | 67,500 | 49,059,546 | ||||||||||
Balance at Mar. 31, 2018 | $ 159,000 | $ 250,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 491,000 | 76,715,000 | (82,136,000) | (4,482,000) | |||||||
Balance (in shares) at Dec. 31, 2017 | 15,937,500 | 25,000,000 | 3,388,000 | 468,221 | 67,500 | 48,979,546 | ||||||||||
Balance at Dec. 31, 2017 | $ 159,000 | $ 250,000 | $ 34,000 | $ 5,000 | $ 1,000 | $ 490,000 | 76,494,000 | (80,841,000) | (3,408,000) | |||||||
Net Loss | (2,437,000) | |||||||||||||||
Conversion Preferred to common stock (in shares) | 870,000 | |||||||||||||||
Balance (in shares) at Jun. 30, 2018 | 15,687,500 | 24,500,000 | 3,268,000 | 468,221 | 67,500 | 49,849,546 | ||||||||||
Balance at Jun. 30, 2018 | $ 157,000 | $ 245,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 498,000 | 77,021,000 | (83,278,000) | (5,318,000) | |||||||
Balance (in shares) at Mar. 31, 2018 | 15,937,500 | 25,000,000 | 3,308,000 | 468,221 | 67,500 | 49,059,546 | ||||||||||
Balance at Mar. 31, 2018 | $ 159,000 | $ 250,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 491,000 | 76,715,000 | (82,136,000) | (4,482,000) | |||||||
Issuance of warrants with convertible note | 223,000 | 223,000 | ||||||||||||||
Stock-based compensation | 35,000 | 35,000 | ||||||||||||||
Net Loss | (1,142,000) | (1,142,000) | ||||||||||||||
Conversion Preferred to common stock (in shares) | (250,000) | 250,000 | (500,000) | 500,000 | (40,000) | 40,000 | ||||||||||
Conversion Preferred to common stock | $ (2,000) | $ 2,000 | $ (5,000) | $ 5,000 | ||||||||||||
Beneficial conversion feature on convertible notes | 48,000 | 48,000 | ||||||||||||||
Balance (in shares) at Jun. 30, 2018 | 15,687,500 | 24,500,000 | 3,268,000 | 468,221 | 67,500 | 49,849,546 | ||||||||||
Balance at Jun. 30, 2018 | $ 157,000 | $ 245,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 498,000 | 77,021,000 | (83,278,000) | (5,318,000) | |||||||
Balance (in shares) at Dec. 31, 2018 | 15,687,500 | 24,500,000 | 3,268,000 | 468,221 | 67,500 | 50,364,549 | ||||||||||
Balance at Dec. 31, 2018 | $ 157,000 | $ 245,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 504,000 | 77,725,000 | (87,149,000) | (8,479,000) | |||||||
Issuance of warrants with convertible note | 63,000 | 63,000 | ||||||||||||||
Stock-based compensation | 59,000 | 59,000 | ||||||||||||||
Common Shares issued for interest (in shares) | 35,996 | |||||||||||||||
Common Shares issued for interest | 8,000 | 8,000 | ||||||||||||||
Net Loss | (1,148,000) | (1,148,000) | ||||||||||||||
Balance (in shares) at Mar. 31, 2019 | 15,687,500 | 24,500,000 | 3,268,000 | 468,221 | 67,500 | 50,400,545 | ||||||||||
Balance at Mar. 31, 2019 | $ 157,000 | $ 245,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 504,000 | 77,855,000 | (88,297,000) | (9,497,000) | |||||||
Balance (in shares) at Dec. 31, 2018 | 15,687,500 | 24,500,000 | 3,268,000 | 468,221 | 67,500 | 50,364,549 | ||||||||||
Balance at Dec. 31, 2018 | $ 157,000 | $ 245,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 504,000 | 77,725,000 | (87,149,000) | (8,479,000) | |||||||
Net Loss | (2,113,000) | |||||||||||||||
Balance (in shares) at Jun. 30, 2019 | 15,687,500 | 24,500,000 | 3,268,000 | 468,221 | 67,500 | 50,529,701 | ||||||||||
Balance at Jun. 30, 2019 | $ 157,000 | $ 245,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 505,000 | 77,923,000 | (89,262,000) | (10,393,000) | |||||||
Balance (in shares) at Mar. 31, 2019 | 15,687,500 | 24,500,000 | 3,268,000 | 468,221 | 67,500 | 50,400,545 | ||||||||||
Balance at Mar. 31, 2019 | $ 157,000 | $ 245,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 504,000 | 77,855,000 | (88,297,000) | (9,497,000) | |||||||
Issuance of warrants with convertible note | 2,000 | 2,000 | ||||||||||||||
Stock-based compensation | 45,000 | 45,000 | ||||||||||||||
Common Shares issued for interest (in shares) | 39,156 | |||||||||||||||
Common Shares issued for interest | 10,000 | 10,000 | ||||||||||||||
Net Loss | (965,000) | (965,000) | ||||||||||||||
Common Shares issued with 2019 convertible notes (in shares) | 90,000 | |||||||||||||||
Common Shares issued with 2019 convertible notes | $ 1,000 | 11,000 | 12,000 | |||||||||||||
Balance (in shares) at Jun. 30, 2019 | 15,687,500 | 24,500,000 | 3,268,000 | 468,221 | 67,500 | 50,529,701 | ||||||||||
Balance at Jun. 30, 2019 | $ 157,000 | $ 245,000 | $ 33,000 | $ 5,000 | $ 1,000 | $ 505,000 | $ 77,923,000 | $ (89,262,000) | $ (10,393,000) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows used in operating activities: | ||
Net loss | $ (2,113,000) | $ (2,437,000) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Amortization of debt discount reported as interest | 351,000 | 289,000 |
Stock-based compensation | 104,000 | 37,000 |
Depreciation and amortization | 72,000 | 88,000 |
Interest paid in common stock | 18,000 | |
Changes in working capital items: | ||
Accounts receivable | 7,000 | |
Inventory | 3,000 | |
Prepaid expenses and other current assets | 21,000 | (22,000) |
Liability for inventory | 15,000 | |
Accounts payable | 134,000 | 55,000 |
Accrued interest | 144,000 | 78,000 |
Accrued wages and benefits | 12,000 | (202,000) |
Other accrued liabilities | 8,000 | |
Net cash used in operating activities | (1,242,000) | (2,096,000) |
Cash flows from financing activities: | ||
Proceeds from issuance of senior convertible note | 800,000 | 1,991,000 |
Proceeds from issuance of unsecured subordinated notes | 425,000 | |
Net cash provided by financing activities | 1,225,000 | 1,991,000 |
Net decrease in cash | (17,000) | (105,000) |
Cash at beginning of period | 53,000 | 194,000 |
Cash at end of period | 36,000 | 89,000 |
Supplemental Disclosures: | ||
Right to use asset | 257,000 | |
Cash used for payment of interest expense | 64,000 | 128,000 |
Debt discount related to issuance of convertible notes | $ 65,000 | $ 494,000 |
Note 1 - The Company and Basis
Note 1 - The Company and Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE 1 CurAegis Technologies, Inc. (“CurAegis”, “the Company”) was incorporated as a New York business corporation in September 1996 2016 two The Company develops and markets advanced technologies in the areas of safety, wellness and power. The Company is focused on the commercialization of a wellness and safety system (the CURA System) and a uniquely designed hydraulic pump that will be smaller, lighter, less expensive and more efficient than current technology. The Company has not The Company has created the CURA System to market products that reduce fatigue risk in the workplace and help individuals manage their sleep and improve alertness. The CURA System consists of the following capabilities: ● real-time alertness utilizing the CURA app, ● the Group Wellness Index and ● the Z-Coach wellness program. The Aegis hydraulic pump technology has been designed to bring to the marketplace a unique concept in hydraulic pumps and motors that will be: ● smaller, lighter and less expensive than conventional pumps and motors, ● more efficient, ● as reliable, and ● unique in its ability to scale larger, allowing more powerful pumps and motors. It is important to note, regarding both the CURA and Aegis products, that the cycle time from the initiation of the sales process to revenue realization can be highly variable especially as a start-up entity. In addition to the activities to be undertaken to implement our plan of operations, we may Current Cash Outlook and Management Plans As of June 30, 2019, $36,000, $3,161,000, $10,393,000 $89,262,000. six June 30, 2019 $1,225,000 Management estimates that the 2019 $2.5 $3 first 2019. June 30, 2019, not Since inception, we have financed our operations by the sale of our securities and debt financings. We need to raise additional funds to meet our working capital needs, to fund expansion of our business, to complete development, testing and marketing of our products, or to make strategic acquisitions or investments. No may not The Company’s ability to fund its current and future commitments from its available cash depends on a number of factors. These factors include the Company’s ability to (i) launch and generate sales from the CURA division; (ii) generate revenue from the monetization of our hydraulic technologies; or (iii) decrease engineering and development and administrative expenses. If these and other factors are not no |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | NOTE 2 Basis of Presentation: The Company’s unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the instructions to Form 10 -Q and Article 8 - 03 of Regulation S- X of the Securities and Exchange Commission (“SEC”). Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments considered necessary for a fair presentation (consisting of normal recurring adjustments) have been included. The results for interim periods are not necessarily indicative of what the results will be for the fiscal year. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2018 contained in the Company’s 2018 Annual Report on Form 10 -K filed with the SEC. Consolidation: The condensed consolidated financial statements include the accounts of the Company, our wholly-owned subsidiary Iso-Torque Corporation, and our majority-owned subsidiary, Ice Surface Development, Inc. ( 56% owned). As of June 30, 2019, each of the subsidiaries is non-operational. Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. These estimates are subject to a high degree of judgment and potential change. Actual results could differ from those estimates. Reclassifications: Certain reclassifications may have been made to prior year balances to conform to the current year’s presentation. Cash: We maintain cash at financial institutions which periodically may exceed federally insured amounts. We have a corporate credit card program through our primary financial institution, JPMorgan Chase Bank, N.A. In connection with this, the Company granted a security interest to the bank in our money market account to act as collateral for the activity within the corporate card program, up to $5,000. Inventory : Inventory is stated at the lower of cost or net realizable value with cost determined under the average cost method. We have recorded provisions for excess, obsolete or slow-moving inventory based on changes in customer demand and technology developments. Inventory on hand at June 30, 2019 and December 31, 2018 has been fully reserved reflecting a reserve of $ 1,747,000 . Depreciation and amortization: Depreciation and amortization are computed using the straight-line method. Depreciation and amortization expense for the three and six months ended June 30, 2019 and 2018 are as follows: Three months ended June 30, 2019 Six months ended June 30, 2019 Three months ended June 30, 2018 Six months ended June 30, 2018 Right-to use building $ 25,000 $ 52,000 - - Software 2,000 6,000 $ 31,000 $ 62,000 Property and equipment 7,000 14,000 13,000 26,000 $ 34,000 $ 72,000 $ 44,000 $ 88,000 Right to use building asset: The FASB issued ASU No. 2016 - 02, “Leases,” which requires a lessee to recognize on its balance sheet the assets and liabilities related to long-term leases that were classified as operating leases under previous guidance. An asset is recognized related to the Company's ability to retain the economic benefits and control of the underlying asset. A corresponding liability is recognized related to the Company's obligation to make lease payments over the term of the lease. The standard became effective for the Company January 1, 2019. The Company utilized the modified retrospective approach to measure the right to use operating lease agreement associated with the office building used for our business operations located in Rochester, New York and utilized the practical expedient to not separate lease components from non-lease components. The adoption of this accounting standard did not impact our consolidated loss from operations and had no impact on cash flows. Software, Property and Equipment: Capitalized software, property and equipment are stated at cost. Estimated useful lives are as follows: Software (in years) 3 Office equipment (in years) 5 - 7 Leasehold improvements lesser of useful life or lease term Betterments, renewals and significant repairs that extend the life of the assets are capitalized. Other repairs and maintenance costs are expensed when incurred. When disposed, the cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is recognized in other income (expense). Whenever events or circumstances indicate, our long-lived assets including any intangible assets with finite useful lives are tested for impairment by using the estimated future cash flows directly associated with, and that are expected to arise as a direct result of, the use of the assets. If the carrying amount exceeds the estimated undiscounted cash flows, impairment may be indicated. The carrying amount is compared to the estimated discounted cash flows and if there is an excess such amount is recorded as impairment. Fair Value of Financial Instruments: As defined by U.S. GAAP , fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A hierarchy for ranking the quality and reliability of the information is used to determine fair values. Assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data Level 3: Unobservable inputs that are not corroborated by market data The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The Financial Accounting Standards Board’s (“FASB”) guidance for the disclosure about fair value of financial instruments requires disclosure of an estimate of the fair value of certain financial instruments. The fair value of financial instruments pursuant to FASB’s guidance for the disclosure about fair value of financial instruments approximated their carrying values at June 30, 2019 and December 31, 2018. The carrying amount of cash, prepaid expenses and other current assets, accounts payable, and accrued expenses approximates their fair value due to their short maturity. The senior convertible notes can be converted into common stock with an underlying value of $4,354,000 as of June 30, 2019 based on the trading price on June 30, 2019. Revenue Recognition and Deferred Revenue: On January 1, 2018, the Company adopted FASB ASC 606, "Revenue from Contracts with Customers" and all related amendments for all contracts using the modified retrospective method. There was no impact upon the adoption of ASC 606. For contracts where performance obligations are satisfied at a point in time, the Company recognizes revenue when the product is shipped to the customer. For contracts where the performance obligation is satisfied over time, as in the Z-Coach sales, the Company recognizes revenue over the subscription period. Revenue from the sale of the Company's products is recognized net of cash discounts, sales returns and allowances. The Company has two sources of revenue: (i) from the sale of CURA System products and (ii) from stand-alone Z-Coach subscriptions. The Company's net revenue is derived primarily from domestic customers. For the six months ended June 30, 2019 net revenue from products transferred over time amounted to $9,000 and there was no revenue from products transferred at a point in time. For the three months ended June 30, 2019 net revenue from products transferred over time amounted to $2,000 and there was no revenue from products transferred at a point in time. One customer accounted for 100% of total Z-Coach subscription sales made during the three months ended June 30, 2019. Our collection terms provide customers standard terms of net 30 days. Future performance obligations are reflected in deferred revenue. CURA revenue is recognized (a) upon receipt of payment at the point of sale of the CURA app, (b) upon the delivery of myCadian products and (c) upon the company’s satisfaction of all performance obligations as described in customer agreements. The Z-Coach Program provides fatigue training over an annual subscription period of twelve months. The Z-Coach Program allows the user unlimited access during the annual subscription period. Customers are billed at the acceptance of the subscription, and revenue is recognized ratably over the subscription period as our performance obligations are satisfied and when collection is reasonably assured. Our collection terms provide customers standard terms of net 30 days. Future performance obligations are reflected in deferred revenue. Engineering and Development and Patents: Engineering and development costs and patent expenses are charged to operations as incurred. Engineering and development include personnel-related costs, materials and supplies, depreciation and consulting services. Patent costs for the six months ended June 30, 2019 and 2018 amounted to $21,000 and $56,000, respectively, and are included in general and administrative expenses. Patent costs for the three months ended June 30, 2019 and 2018 amounted to $11,000 and $25,000, respectively, and are included in general and administrative expenses. Stock-based Compensation: FASB Accounting Standards Codification (“ASC”) 718 - 10 requires all share-based payments to be recognized as compensation expense over the service period (generally the vesting period) in the consolidated financial statements based on their fair values on the grant date. The impact of forfeitures that may occur prior to vesting is also estimated and considered in the amount recognized. In addition, the realization of tax benefits in excess of amounts recognized for financial reporting purposes will be recognized as a financing activity in accordance with ASC 718 - 10. No tax benefits were attributed to the stock-based compensation expense because a valuation allowance was maintained for substantially all net deferred tax assets. During 2018, the Company adopted FASB ASU 2018 - 07, “Equity-Based Payments to Non-Employees,” which requires all share-based payments to non-employees, including grants of stock options, to be recognized in the consolidated financial statements as expense generally over the service period of the consulting arrangement or as performance conditions are expected to be met. FASB ASC 718 - 20 requires that modifications of the terms or conditions of equity awards be treated as an exchange of the original award for a new award. Incremental compensation cost is measured as the excess, if any, of the fair value of the modified award over the fair value of the original award immediately before its terms are modified. The Company utilized a modified retrospective approach effective as of January 1, 2018 in the adoption of this accounting guidance which resulted in a reduction of $10,000 in stock compensation expense previously recorded costs for options outstanding to non-employees. Income Taxes: We account for income taxes using the asset and liability method, the objective of which is to establish deferred tax assets and liabilities for the temporary differences between the financial reporting and the tax basis of our assets and liabilities at enacted tax rates expected to be in effect when such amounts are realized or settled. A valuation allowance related to deferred tax assets is recorded when it is more likely than not that some portion or all of the deferred tax assets will not be realized. We account for uncertain tax positions using a more-likely-than- not recognition threshold based on the technical merits of the tax position taken. Tax benefits that meet the more-likely-than- not recognition threshold should be measured as the largest amount of tax benefits, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement in the financial statements. It is our policy to recognize interest and penalties related to income tax matters as general and administrative expenses. As of June 30, 2019, and December 31, 2018, there were no accrued interest or penalties related to uncertain tax positions. Loss per Common Share: FASB’s ASC 260 - 10 (“Earnings Per Share”) requires the presentation of basic earnings per share, which is based on weighted average common stock outstanding, and dilutive earnings per share, which gives effect to options, warrants and convertible securities in periods when they are dilutive. At June 30, 2019 and 2018, we excluded 99,159,056 and 87,941,132 potential common shares, respectively, relating to convertible preferred stock, convertible notes, options and warrants outstanding from the diluted net loss per common share calculation because their inclusion would be anti-dilutive. In addition, we excluded 625,000 warrants from the diluted net loss per common share calculation at June 30, 2019 and 2018 as the conditions for their vesting are not time-based. |
Note 3 - Inventory and Related
Note 3 - Inventory and Related Vendor Liability | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | NOTE 3 The Company had the following inventory produced by our manufacturing vendor as of June 30, 2019 December 31, 2018: June 30, 2019 December 31, 2018 Raw materials $ 1,678,000 $ 1,678,000 Finished goods 69,000 69,000 1,747,000 1,747,000 Less: Reserve for quality (1,747,000 ) (1,747,000 ) Inventory (net) $ - $ - Liability for inventory $ 1,477,000 $ 1,462,000 During 2017, third $1,747,000 $1,477,000 |
Note 4 - Senior Convertible Not
Note 4 - Senior Convertible Notes and Warrants | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | NOTE 4 - SENIOR CONVERTIBLE NOTES At June 30, 2019, $9,960,000 $2,288,000, $7,672,000. December 31, 2018, $9,160,000 $2,557,000 $6,603,000. Scheduled maturities on the Company’s convertible note are: $300,000 twelve December 31, 2019, none 2020; $2,990,000 twelve December 31, 2021; $2,775,500 twelve December 31, 2022; $3,395,000 twelve December 31, 2023 $500,000 Included in the face value of convertible notes outstanding at June 30, 2019 December 31, 2018, $ 2,252,500 six $1,170,000 Total 2019 6% Notes JULY 2018 Notes 2018 Notes 2017 6% Notes 2016 6% Notes Face value December 31, 2018 $ 9,160,000 $ - $ 1,175,000 $ 625,000 $ 4,370,000 $ 2,990,000 Notes issued in current period 800,000 300,000 500,000 - - - Face value June 30, 2019 $ 9,960,000 $ 300,000 $ 1,675,000 $ 625,000 $ 4,370,000 $ 2,990,000 Debt discount December 31, 2018 $ (2,557,000 ) $ - $ (360,000 ) $ (231,000 ) $ (456,000 ) $ (1,510,000 ) Debt discount issued in current period (82,000 ) (17,000 ) (65,000 ) - - - Amortization of discount reported as interest 351,000 3,000 32,000 22,000 41,000 253,000 Debt discount June 30, 2019 $ (2,288,000 ) $ (14,000 ) $ (393,000 ) $ (209,000 ) $ (415,000 ) $ (1,257,000 ) Senior Convertible Notes (net) $ 7,672,000 $ 286,000 $ 1,282,000 $ 416,000 $ 3,955,000 $ 1,733,000 2019 In April 2019, $2.5 6% “2019 May 28, 2019 “2019 2019 five five The conversion rate of the notes is fixed at the greater of: $0.15 2019 30,000 $100,000 2019 The 2019 4 2 1933 506 501 The Company issued $300,000 2019 90,000 second 2019 $5,000 2019 three June 30, 2019, $4,000 $3,000 JULY 2018 In July 2018, $2.5 “JULY 2018 July 24, 2018 “JULY 2018 JULY 2018 five April 2019, The conversion rate of the notes was fixed at $0.25 July 24, 2018. 10% 25% $0.25 ten 4 2 1933 506 501 During the three June 30, 2019 June 30, 2018, $19,000 zero six June 30, 2019, $500,000 $65,000 six June 30, 2019 June 30, 2018, $32,000 zero 2018 In May 2018, $1 “2018 May 8, 2018 “2018 2018 five July 19, 2018, The conversion rate of the notes was fixed at $0.25 May 8, 2018. 10% 25% $0.25 ten 4 2 1933 506 501 During the three June 30, 2019 June 30, 2018, $11,000 $2,000 six June 30, 2019 June 30, 2018, $22,000 $2,000, 2017 The board of directors authorized the issuance of up to $5 6% “2017 May 31, 2017 “2017 2017 five 6%. 10% 25% The conversion rate of the 2017 $0.50 November 2018 $0.333 2017 November 2018 $0.333 The 2017 4 2 506 501 During the three June 30, 2019 June 30, 2018 $91,000 $92,000, $26,000 $28,000, six June 30, 2019 June 30, 2018, $171,000 $166,000, $41,000 48,000, 2016 During 2016, $3 6% “2016 August 25, 2016 “2016 2016 five August 2021 December 2021 6%. The conversion rate of the notes was fixed at $0.25 August 25, 2016. 10% $0.25 ten 4 2 1934, 506 501 1933. During the three June 30, 2019 June 30, 2018 $172,000 $165,000, $127,000 $120,000, six June 30, 2019 June 30, 2018, $342,000 $328,000, $253,000 $238,000, |
Note 5 - Unsecured Subordinated
Note 5 - Unsecured Subordinated Promissory Notes | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Short-term Debt [Text Block] | NOTE 5 - UNSECURED SUBORDINATED PROMISSORY NOTES During the six June 30, 2019, $425,000 6% ninety |
Note 6 - Right-to-use Building
Note 6 - Right-to-use Building Asset | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | NOTE 6 - RIGHT TO USE BUILDING ASSET The FASB issued ASU No. 2016 02, January 1, 2019. not no The Company measured the present value of future lease costs at $257,000, January 1, 2019. 6% not one May 2021. Operating lease costs for the first second 2019 $30,000 2019: $105,000, $114,000 2020 $47,000 2021. $267,000 $20,000. |
Note 7 - Software
Note 7 - Software | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Research, Development, and Computer Software Disclosure [Text Block] | NOTE 7 - SOFTWARE The Company investments in software for the CURA system are amortized over an estimated useful life of 3 3 June 30, 2019 December 31, 2018 $4,000 $10,000, $4,000 2019. |
Note 8 - Property and Equipment
Note 8 - Property and Equipment | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 8 - PROPERTY AND EQUIPMENT At June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Office equipment $ 249,000 $ 249,000 Shop equipment 182,000 182,000 Leasehold improvements 253,000 253,000 684,000 684,000 Less accumulated depreciation (636,000 ) (622,000 ) Net property and equipment $ 48,000 $ 62,000 |
Note 9 - Business Segments
Note 9 - Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | NOTE 9 - BUSINESS SEGMENTS The Company has two Segment information for the three June 30, 2019 CURA Aegis Corporate Total Revenue $ 2,000 $ - $ - $ 2,000 Loss on revenue (1,000 ) - - (1,000 ) Total costs and expenses 176,000 150,000 335,000 661,000 Loss from operations (177,000 ) (150,000 ) (335,000 ) (662,000 ) Interest and other - - (303,000 ) (303,000 ) Net loss $ (177,000 ) $ (150,000 ) $ (638,000 ) $ (965,000 ) Stock based compensation $ 6,000 $ 5,000 $ 34,000 $ 45,000 Depreciation and amortization $ 3,000 $ 5,000 $ 26,000 $ 34,000 Assets at June 30, 2019 $ 6,000 $ 45,000 $ 246,000 $ 297,000 Segment information for the six June 30, 2019 CURA Aegis Corporate Total Revenue $ 9,000 $ - $ - $ 9,000 Loss on revenue - - - - Total costs and expenses 515,000 319,000 702,000 1,536,000 Loss from operations (515,000 ) (319,000 ) (702,000 ) (1,536,000 ) Interest and other - - (577,000 ) (577,000 ) Net loss $ (515,000 ) $ (319,000 ) $ (1,279,000 ) $ (2,113,000 ) Stock based compensation $ 14,000 $ 13,000 $ 77,000 $ 104,000 Depreciation and amortization $ 9,000 $ 10,000 $ 53,000 $ 72,000 Assets at June 30, 2019 $ 6,000 $ 45,000 $ 246,000 $ 297,000 Segment information for the three June 30, 2018 CURA Aegis Corporate Total Revenue $ 8,000 $ - $ - $ 8,000 Loss on revenue (25,000 ) - - (25,000 ) Total costs and expenses 373,000 160,000 325,000 858,000 Loss from operations (398,000 ) (160,000 ) (325,000 ) (883,000 ) Interest and other expense - - (259,000 ) (259,000 ) Net loss $ (398,000 ) $ (160,000 ) $ (584,000 ) $ (1,142,000 ) Stock based compensation $ 5,000 $ 26,000 $ 4,000 $ 35,000 Depreciation and amortization $ 37,000 $ 5,000 $ 2,000 $ 44,000 Assets at June 30, 2018 $ 1,810,000 $ 65,000 $ 144,000 $ 2,019,000 Segment information for the six June 30, 2018 CURA Aegis Corporate Total Revenue $ 16,000 $ - $ - $ 16,000 Loss on revenue (54,000 ) - - (54,000 ) Total costs and expenses 896,000 291,000 701,000 1,888,000 Loss from operations (950,000 ) (291,000 ) (701,000 ) (1,942,000 ) Interest and other expense - - (495,000 ) (495,000 ) Net loss $ (950,000 ) $ (291,000 ) $ (1,196,000 ) $ (2,437,000 ) Stock based compensation $ (11,000 ) $ 28,000 $ 20,000 $ 37,000 Depreciation and amortization $ 74,000 $ 10,000 $ 4,000 $ 88,000 Assets at June 30, 2018 $ 1,810,000 $ 65,000 $ 144,000 $ 2,019,000 |
Note 10 - Preferred and Common
Note 10 - Preferred and Common Stock | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | NOTE 1 0 - PREFERRED and COMMON STOCK Common Stock We have authorized 400,000,000 $0.01 During the six June 30, 2019 75,152 $0.25 2016 2017 90,000 2019 six June 30, 2018 870,000 Preferred Stock Our certificate of incorporation permits the Company to issue up to 100,000,000 $.01 Class A Preferred Stock At June 30, 2019 December 31, 2018 468,221 8,709 no 459,512 $2,621,000 June 30, 2019 $2,530,000 December 31, 2018. In the event of a liquidation, dissolution and winding up of the Company, and subject to the liquidation rights and privileges of our Class C Preferred stockholders, Class A Preferred stockholders have a liquidation preference with respect to all accumulated and unsettled dividends. The value of the Class A Preferred stockholders’ liquidation preference was $2,621,000 $2,530,000 June 30, 2019 December 31, 2018, 1 $4.00 Class B Preferred Stock At June 30, 2019 December 31, 2018, 67,500 $471,000 June 30, 2019 $454,000 December 31, 2018. In the event of liquidation, dissolution and winding up of the Company, and subject to the liquidation rights and privileges of our Class C Preferred stockholders and our Class A Preferred stockholders, Class B Preferred stockholders have a liquidation preference with respect to all accumulated and unsettled dividends. The value of the Class B Preferred stockholders’ liquidation preference was $471,000 $454,000 June 30, 2019 December 31, 2018, 1 $5.00 Series C Preferred Stock At June 30, 2019 December 31, 2018, 15,687,500 $6,275,000 June 30, 2019 December 31, 2018. The Series C Preferred shares have a liquidation preference at their stated value per share of $0.40 The Series C Preferred shares have no no Series C- 2 Preferred Stock At June 30, 2019 December 31, 2018, 24,500,000 2 2 $4,900,000 June 30, 2019 December 31, 2018. The Series C- 2 not no 2 may not, two 2 2 2 2 2 2 2 2 not Series C- 3 Preferred Stock At June 30, 2019 December 31, 2018, 3,268,000 3 |
Note 11 - Stock Options
Note 11 - Stock Options | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | NOTE 1 1 - STOCK OPTIONS 2016 Stock Option Plan 2016 “2016 3,000,000 may 2016 June 30, 2019, 1,220,000 2016 1,780,000 2011 Stock Option Plan 2011 “2011 3,000,000 may 2011 June 30, 2019, 91,500 2011 Under the 2016 2011 may may may not 10% may not 110% ten 10% may not five During the three six June 30, 2019, no three six June 30, 2018, 917,500 1,067,500 Summary three six June 30, 2019 $45,000 $104,000, three six June 30, 2018 $35,000 $37,000, June 30, 2019, $193,000 1.0 The weighted average grant date fair value of stock options granted during the six June 30, 2019 2018 zero $0.25, six June 30, 2019 2018 $74,000 $259,000, The fair value of each option granted was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2019 2018 Expected term (years) - 6.3 Expected forfeiture rate - 0% Risk-free rate - 2.6% Volatility - 130% Dividend yield - 0.0% The average risk-free interest rate is based on the U.S. treasury security rate in effect as of the grant date. We determined expected volatility using the historical closing stock price. The expected life was generally determined using the simplified method as we do not The following summarizes the activity of all of our outstanding stock options for the six June 30, 2019: Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (years) Value Outstanding at January 1, 2019 11,028,500 $ 0.49 3.8 $ 94,000 Granted - - Exercised - - Canceled or expired - - Outstanding at June 30, 2019 11,028,500 $ 0.49 3.3 $ - Exercisable at June 30, 2019 7,314,000 $ 0.56 2.7 $ - During the six June 30, 2019, no six June 30, 2018, no 391,875 June 30, 2019, $.22 $1.58 |
Note 12 - Warrants
Note 12 - Warrants | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Stockholders Equity Note Warrants Or Rights [Text Block] | NOTE 1 2 - WARRANTS The following summarizes the activity of our outstanding warrants for the six June 30, 2019: Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 1, 2019 7,381,707 $ 0.46 (A) 7.0 (B) $ 39,000 Granted 350,000 0.25 Exercised - - Canceled or expired - - Outstanding at June 30, 2019 7,731,707 $ 0.45 (A) 6.7 (B) $ 27,000 Exercisable at June 30, 2019 7,106,707 $ 0.44 6.2 (C) $ 27,000 (A) The weighted average exercise price for warrants outstanding as of June 30, 2019 2018 1,750,000 no (B) The weighted average remaining contractual term for warrants outstanding as of June 30, 2019 2018 743,500 no (C) The weighted average remaining contractual term for warrants exercisable as of June 30, 2019, 2018 118,500 no |
Note 13 - Related Party Transac
Note 13 - Related Party Transactions | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | NOTE 1 3 - RELATED PARTY TRANSACTIONS As of June 30, 2019, December 31, 2018, $2,252,500 six 7,888,378 June 30, 2019 December 31, 2018. 1,239,288 June 30, 2019 December 31, 2018. During the first 2019, $425,000 ninety 6% |
Note 14 - Subsequent Events
Note 14 - Subsequent Events | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | NOTE 1 4 - SUBSEQUENT EVENTS Unsecured Subordinated Promissory Note with Related Party On July 11, 2019, $50,000 October 9, 2019. 6% Common shares Issued in Payment of Interest Expense Subsequent to June 30, 2019, 33,973 $8,492 2019 Subsequent to June 30, 2019, $50,000 2019 15,000 $25,000 2019 7,500 Credit Facility with Co-borrower s On July 23, 2019, $1,500,000 5.5% July 23, 2019. Certain accredited investors are co-borrowers under the demand notes. The co-borrowers participating in this credit facility purchase 30,000 $100,000 may one one $0.15 five Subsequent to June 30, 2019, $400,000 5.5%. 120,000 may 2,666,667 $0.15 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation: 10 8 03 X not not December 31, 2018 2018 10 |
Consolidation, Policy [Policy Text Block] | Consolidation: 56% June 30, 2019, |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates: |
Reclassification, Policy [Policy Text Block] | Reclassifications: may |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash: may $5,000. |
Inventory, Policy [Policy Text Block] | Inventory June 30, 2019 December 31, 2018 $ 1,747,000 |
Depreciation, Depletion, and Amortization [Policy Text Block] | Depreciation and amortization: three six June 30, 2019 2018 Three months ended June 30, 2019 Six months ended June 30, 2019 Three months ended June 30, 2018 Six months ended June 30, 2018 Right-to use building $ 25,000 $ 52,000 - - Software 2,000 6,000 $ 31,000 $ 62,000 Property and equipment 7,000 14,000 13,000 26,000 $ 34,000 $ 72,000 $ 44,000 $ 88,000 |
Lessee, Leases [Policy Text Block] | Right to use building asset: No. 2016 02, The standard became effective for the Company January 1, 2019. not not no |
Software Property And Equipment [Policy Text Block] | Software, Property and Equipment: Software (in years) 3 Office equipment (in years) 5 - 7 Leasehold improvements lesser of useful life or lease term Betterments, renewals and significant repairs that extend the life of the assets are capitalized. Other repairs and maintenance costs are expensed when incurred. When disposed, the cost and accumulated depreciation applicable to assets retired are removed from the accounts and the gain or loss on disposition is recognized in other income (expense). Whenever events or circumstances indicate, our long-lived assets including any intangible assets with finite useful lives are tested for impairment by using the estimated future cash flows directly associated with, and that are expected to arise as a direct result of, the use of the assets. If the carrying amount exceeds the estimated undiscounted cash flows, impairment may |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Financial Instruments: , one three Level 1: Level 2: Level 3: not The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 3 June 30, 2019 December 31, 2018. $4,354,000 June 30, 2019 June 30, 2019. |
Revenue [Policy Text Block] | Revenue Recognition and Deferred Revenue: January 1, 2018, 606, no 606. two The Company's net revenue is derived primarily from domestic customers. For the six June 30, 2019 $9,000 no three June 30, 2019 $2,000 no 100% three June 30, 2019. 30 CURA revenue is recognized (a) upon receipt of payment at the point of sale of the CURA app, (b) upon the delivery of myCadian products and (c) upon the company’s satisfaction of all performance obligations as described in customer agreements. The Z-Coach Program provides fatigue training over an annual subscription period of twelve 30 |
In Process Research and Development, Policy [Policy Text Block] | Engineering and Development and Patents: six June 30, 2019 2018 $21,000 $56,000, three June 30, 2019 2018 $11,000 $25,000, |
Share-based Payment Arrangement [Policy Text Block] | Stock-based Compensation: 718 10 may 718 10. No During 2018, 2018 07, 718 20 January 1, 2018 $10,000 |
Income Tax, Policy [Policy Text Block] | Income Taxes: not not We account for uncertain tax positions using a more-likely-than- not not not June 30, 2019, December 31, 2018, no |
Earnings Per Share, Policy [Policy Text Block] | Loss per Common Share: 260 10 June 30, 2019 2018, 99,159,056 87,941,132 625,000 June 30, 2019 2018 not |
Note 2 - Summary of Significa_2
Note 2 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Depreciation and Amortization [Table Text Block] | Three months ended June 30, 2019 Six months ended June 30, 2019 Three months ended June 30, 2018 Six months ended June 30, 2018 Right-to use building $ 25,000 $ 52,000 - - Software 2,000 6,000 $ 31,000 $ 62,000 Property and equipment 7,000 14,000 13,000 26,000 $ 34,000 $ 72,000 $ 44,000 $ 88,000 |
Software, Property and Equipment Estimated Useful Life [Table Text Block] | Software (in years) 3 Office equipment (in years) 5 - 7 Leasehold improvements lesser of useful life or lease term |
Note 3 - Inventory and Relate_2
Note 3 - Inventory and Related Vendor Liability (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | June 30, 2019 December 31, 2018 Raw materials $ 1,678,000 $ 1,678,000 Finished goods 69,000 69,000 1,747,000 1,747,000 Less: Reserve for quality (1,747,000 ) (1,747,000 ) Inventory (net) $ - $ - Liability for inventory $ 1,477,000 $ 1,462,000 |
Note 4 - Senior Convertible N_2
Note 4 - Senior Convertible Notes and Warrants (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Convertible Debt [Table Text Block] | Total 2019 6% Notes JULY 2018 Notes 2018 Notes 2017 6% Notes 2016 6% Notes Face value December 31, 2018 $ 9,160,000 $ - $ 1,175,000 $ 625,000 $ 4,370,000 $ 2,990,000 Notes issued in current period 800,000 300,000 500,000 - - - Face value June 30, 2019 $ 9,960,000 $ 300,000 $ 1,675,000 $ 625,000 $ 4,370,000 $ 2,990,000 Debt discount December 31, 2018 $ (2,557,000 ) $ - $ (360,000 ) $ (231,000 ) $ (456,000 ) $ (1,510,000 ) Debt discount issued in current period (82,000 ) (17,000 ) (65,000 ) - - - Amortization of discount reported as interest 351,000 3,000 32,000 22,000 41,000 253,000 Debt discount June 30, 2019 $ (2,288,000 ) $ (14,000 ) $ (393,000 ) $ (209,000 ) $ (415,000 ) $ (1,257,000 ) Senior Convertible Notes (net) $ 7,672,000 $ 286,000 $ 1,282,000 $ 416,000 $ 3,955,000 $ 1,733,000 |
Note 8 - Property and Equipme_2
Note 8 - Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | June 30, 2019 December 31, 2018 Office equipment $ 249,000 $ 249,000 Shop equipment 182,000 182,000 Leasehold improvements 253,000 253,000 684,000 684,000 Less accumulated depreciation (636,000 ) (622,000 ) Net property and equipment $ 48,000 $ 62,000 |
Note 9 - Business Segments (Tab
Note 9 - Business Segments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | CURA Aegis Corporate Total Revenue $ 2,000 $ - $ - $ 2,000 Loss on revenue (1,000 ) - - (1,000 ) Total costs and expenses 176,000 150,000 335,000 661,000 Loss from operations (177,000 ) (150,000 ) (335,000 ) (662,000 ) Interest and other - - (303,000 ) (303,000 ) Net loss $ (177,000 ) $ (150,000 ) $ (638,000 ) $ (965,000 ) Stock based compensation $ 6,000 $ 5,000 $ 34,000 $ 45,000 Depreciation and amortization $ 3,000 $ 5,000 $ 26,000 $ 34,000 Assets at June 30, 2019 $ 6,000 $ 45,000 $ 246,000 $ 297,000 CURA Aegis Corporate Total Revenue $ 9,000 $ - $ - $ 9,000 Loss on revenue - - - - Total costs and expenses 515,000 319,000 702,000 1,536,000 Loss from operations (515,000 ) (319,000 ) (702,000 ) (1,536,000 ) Interest and other - - (577,000 ) (577,000 ) Net loss $ (515,000 ) $ (319,000 ) $ (1,279,000 ) $ (2,113,000 ) Stock based compensation $ 14,000 $ 13,000 $ 77,000 $ 104,000 Depreciation and amortization $ 9,000 $ 10,000 $ 53,000 $ 72,000 Assets at June 30, 2019 $ 6,000 $ 45,000 $ 246,000 $ 297,000 CURA Aegis Corporate Total Revenue $ 8,000 $ - $ - $ 8,000 Loss on revenue (25,000 ) - - (25,000 ) Total costs and expenses 373,000 160,000 325,000 858,000 Loss from operations (398,000 ) (160,000 ) (325,000 ) (883,000 ) Interest and other expense - - (259,000 ) (259,000 ) Net loss $ (398,000 ) $ (160,000 ) $ (584,000 ) $ (1,142,000 ) Stock based compensation $ 5,000 $ 26,000 $ 4,000 $ 35,000 Depreciation and amortization $ 37,000 $ 5,000 $ 2,000 $ 44,000 Assets at June 30, 2018 $ 1,810,000 $ 65,000 $ 144,000 $ 2,019,000 CURA Aegis Corporate Total Revenue $ 16,000 $ - $ - $ 16,000 Loss on revenue (54,000 ) - - (54,000 ) Total costs and expenses 896,000 291,000 701,000 1,888,000 Loss from operations (950,000 ) (291,000 ) (701,000 ) (1,942,000 ) Interest and other expense - - (495,000 ) (495,000 ) Net loss $ (950,000 ) $ (291,000 ) $ (1,196,000 ) $ (2,437,000 ) Stock based compensation $ (11,000 ) $ 28,000 $ 20,000 $ 37,000 Depreciation and amortization $ 74,000 $ 10,000 $ 4,000 $ 88,000 Assets at June 30, 2018 $ 1,810,000 $ 65,000 $ 144,000 $ 2,019,000 |
Note 11 - Stock Options (Tables
Note 11 - Stock Options (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2019 2018 Expected term (years) - 6.3 Expected forfeiture rate - 0% Risk-free rate - 2.6% Volatility - 130% Dividend yield - 0.0% |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term (years) Value Outstanding at January 1, 2019 11,028,500 $ 0.49 3.8 $ 94,000 Granted - - Exercised - - Canceled or expired - - Outstanding at June 30, 2019 11,028,500 $ 0.49 3.3 $ - Exercisable at June 30, 2019 7,314,000 $ 0.56 2.7 $ - |
Note 12 - Warrants (Tables)
Note 12 - Warrants (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block] | Weighted Weighted Average Average Remaining Aggregate Exercise Contractual Intrinsic Shares Price Term Value Outstanding at January 1, 2019 7,381,707 $ 0.46 (A) 7.0 (B) $ 39,000 Granted 350,000 0.25 Exercised - - Canceled or expired - - Outstanding at June 30, 2019 7,731,707 $ 0.45 (A) 6.7 (B) $ 27,000 Exercisable at June 30, 2019 7,106,707 $ 0.44 6.2 (C) $ 27,000 |
Note 1 - The Company and Basi_2
Note 1 - The Company and Basis of Presentation (Details Textual) | 6 Months Ended | |||||
Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Number of Operating Segments | 2 | |||||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | $ 36,000 | $ 53,000 | $ 89,000 | $ 194,000 | ||
Working Capital | (3,161,000) | |||||
Stockholders' Equity Attributable to Parent, Ending Balance | (10,393,000) | $ (9,497,000) | (8,479,000) | $ (5,318,000) | $ (4,482,000) | $ (3,408,000) |
Retained Earnings (Accumulated Deficit), Ending Balance | (89,262,000) | $ (87,149,000) | ||||
Proceeds From Convertible Debt, Gross | 1,225,000 | |||||
Maximum [Member] | ||||||
Cash Needed During the Year to Fund Current and Future Commitments | 2,500,000 | |||||
Minimum [Member] | ||||||
Cash Needed During the Year to Fund Current and Future Commitments | $ 3,000,000 |
Note 2 - Summary of Significa_3
Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | Jan. 01, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 |
Inventory Valuation Reserves, Ending Balance | $ 1,747,000 | $ 1,747,000 | $ 1,747,000 | |||
Revenue from Contract with Customer, Including Assessed Tax | 2,000 | $ 8,000 | 9,000 | $ 16,000 | ||
Excess Tax Benefit from Share-based Compensation, Operating Activities | 0 | |||||
Share-based Payment Arrangement, Expense | 45,000 | 35,000 | 104,000 | $ 37,000 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 0 | $ 0 | $ 0 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 99,159,056 | 87,941,132 | ||||
Warrant [Member] | ||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 625,000 | 625,000 | ||||
Accounting Standards Update 2018-07 [Member] | Share-based Payment Arrangement, Option [Member] | ||||||
Share-based Payment Arrangement, Expense | $ (10,000) | |||||
General and Administrative Expense [Member] | ||||||
Patent Cost | $ 11,000 | $ 25,000 | $ 21,000 | $ 56,000 | ||
Z-Coach Aviation Wellness Program Annual Subscription [Member] | ||||||
Deferred Revenue Arrangement, Subscription Period | 1 year | |||||
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||||||
Concentration Risk, Percentage | 100.00% | |||||
Transferred over Time [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | $ 2,000 | $ 9,000 | ||||
Transferred at Point in Time [Member] | ||||||
Revenue from Contract with Customer, Including Assessed Tax | 0 | 0 | ||||
Senior Convertible Promissory Notes [Member] | ||||||
Long-term Debt, Fair Value | 4,354,000 | 4,354,000 | ||||
Commercial Paper [Member] | Collateral Pledged [Member] | ||||||
Debt Instrument, Collateral Amount | $ 5,000 | $ 5,000 | ||||
Subsidiaries [Member] | ||||||
Equity Method Investment, Ownership Percentage | 56.00% | 56.00% |
Note 2 - Summary of Significa_4
Note 2 - Summary of Significant Accounting Policies - Depreciation and Amortization (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Depreciation and amortization | $ 34,000 | $ 44,000 | $ 72,000 | $ 88,000 |
Right-to-use Building [Member] | ||||
Depreciation and amortization | 25,000 | 52,000 | ||
Software Development [Member] | ||||
Depreciation and amortization | 2,000 | 31,000 | 6,000 | 62,000 |
Property and Equipment [Member] | ||||
Depreciation and amortization | $ 7,000 | $ 13,000 | $ 14,000 | $ 26,000 |
Note 2 - Summary of Significa_5
Note 2 - Summary of Significant Accounting Policies - Property, and Equipment, Estimated Useful Lives (Details) | 6 Months Ended |
Jun. 30, 2019 | |
Office Equipment [Member] | Minimum [Member] | |
Property plant and equipment, useful lives (Year) | 5 years |
Office Equipment [Member] | Maximum [Member] | |
Property plant and equipment, useful lives (Year) | 7 years |
Leasehold Improvements [Member] | |
Property plant and equipment, useful lives | lesser of useful life or lease term |
Computer Software, Intangible Asset [Member] | |
Property plant and equipment, useful lives (Year) | 3 years |
Note 3 - Inventory and Relate_3
Note 3 - Inventory and Related Vendor Liability (Details Textual) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Valuation Reserves, Ending Balance | $ 1,747,000 | $ 1,747,000 |
Liability for Inventory Held at Vendor | $ 1,477,000 | $ 1,462,000 |
Note 3 - Inventory and Relate_4
Note 3 - Inventory and Related Vendor Liability - Inventory (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Raw materials | $ 1,678,000 | $ 1,678,000 |
Finished goods | 69,000 | 69,000 |
1,747,000 | 1,747,000 | |
Less: Reserve for quality | (1,747,000) | (1,747,000) |
Inventory (net) | ||
Liability for inventory | $ 1,477,000 | $ 1,462,000 |
Note 4 - Senior Convertible N_3
Note 4 - Senior Convertible Notes and Warrants (Details Textual) | Jul. 24, 2018USD ($)$ / shares | May 08, 2018USD ($)$ / shares | Aug. 25, 2016$ / shares | Apr. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Nov. 30, 2018$ / shares | May 31, 2017$ / shares | Dec. 31, 2016USD ($) |
Long-term Debt, Gross | $ 9,960,000 | $ 9,960,000 | $ 9,160,000 | |||||||||
Debt Instrument, Unamortized Discount, Total | 2,288,000 | 2,288,000 | 2,557,000 | |||||||||
Long-term Debt, Total | 7,672,000 | 7,672,000 | ||||||||||
Interest Expense, Total | 304,000 | $ 259,000 | 578,000 | $ 496,000 | ||||||||
Amortization of Debt Discount (Premium) | 351,000 | 289,000 | ||||||||||
Proceeds from Convertible Debt | 800,000 | |||||||||||
Increase in Unamortized Debt Discount Due to Issuance | 82,000 | |||||||||||
Warrants Related to the 2017 Convertible Notes [Member] | ||||||||||||
Percentage of Shares Issuable Upon Conversion of the Promissory Notes, Below Investment Threshold | 10.00% | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.333 | |||||||||||
Percentage of Shares Issuable Upon the Conversion of the Promissory Notes | 25.00% | |||||||||||
Warrants Related to the 2016 Convertible Notes [Member] | ||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.25 | |||||||||||
Warrants and Rights Outstanding, Term | 10 years | |||||||||||
Percentage of Shares Issuable Upon the Conversion of the Promissory Notes | 10.00% | |||||||||||
Convertible Notes [Member] | ||||||||||||
Long-term Debt, Gross | 9,960,000 | 9,960,000 | 9,160,000 | |||||||||
Debt Instrument, Unamortized Discount, Total | 2,288,000 | 2,288,000 | 2,557,000 | |||||||||
Long-term Debt, Total | 7,672,000 | 7,672,000 | 6,603,000 | |||||||||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 300,000 | 300,000 | ||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 0 | 0 | ||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 2,990,000 | 2,990,000 | ||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 2,775,500 | 2,775,500 | ||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 3,395,000 | 3,395,000 | ||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 500,000 | 500,000 | ||||||||||
Convertible Notes [Member] | Investor [Member] | ||||||||||||
Long-term Debt, Total | 2,252,500 | 2,252,500 | 2,252,500 | |||||||||
Convertible Notes [Member] | Affiliated Entity [Member] | ||||||||||||
Long-term Debt, Total | 1,170,000 | 1,170,000 | 1,170,000 | |||||||||
The 2019 Convertible Notes [Member] | ||||||||||||
Long-term Debt, Gross | 300,000 | 300,000 | ||||||||||
Debt Instrument, Unamortized Discount, Total | 14,000 | 14,000 | ||||||||||
Long-term Debt, Total | $ 286,000 | $ 286,000 | ||||||||||
Amount of Senior Convertible Promissory Notes Authorized to Issue in Private Placement | $ 2,500,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||||||
Debt Instrument, Term, Number of Days after Substantial Sale of Aegis Division | 5 days | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.15 | |||||||||||
Debt Instrument, Convertible, Number of Equity Instruments | 30,000 | |||||||||||
Debt Instrument, Convertible, Threshold Amount Needed to Invest to Convert a Specified Number of Equity Instruments | $ 100,000 | |||||||||||
Stock Issued During Period, Shares, New Issues | shares | 90,000 | 90,000 | ||||||||||
Debt Instrument, Fee Amount | $ 5,000 | $ 5,000 | ||||||||||
Interest Expense, Total | 4,000 | |||||||||||
Amortization of Debt Discount (Premium) | 3,000 | 3,000 | ||||||||||
Proceeds from Convertible Debt | 300,000 | |||||||||||
Increase in Unamortized Debt Discount Due to Issuance | 17,000 | |||||||||||
July 2018 Convertible Notes [Member] | ||||||||||||
Long-term Debt, Gross | 1,675,000 | 1,675,000 | 1,175,000 | |||||||||
Debt Instrument, Unamortized Discount, Total | 393,000 | 393,000 | 360,000 | |||||||||
Long-term Debt, Total | 1,282,000 | 1,282,000 | ||||||||||
Amount of Senior Convertible Promissory Notes Authorized to Issue in Private Placement | $ 2,500,000 | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.25 | |||||||||||
Amortization of Debt Discount (Premium) | 19,000 | 0 | 32,000 | 0 | ||||||||
Proceeds from Convertible Debt | 500,000 | |||||||||||
Increase in Unamortized Debt Discount Due to Issuance | 65,000 | |||||||||||
Warrants Related to July 2018 Convertible Notes [Member] | ||||||||||||
Percentage of Shares Issuable Upon Conversion of the Promissory Notes, Below Investment Threshold | 10.00% | |||||||||||
Percentage of Shares Issuable Upon Conversion of the Promissory Notes, Above Investment Threshold | 25.00% | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.25 | |||||||||||
Warrants and Rights Outstanding, Term | 10 years | |||||||||||
The 2018 Convertible Notes [Member] | ||||||||||||
Long-term Debt, Gross | 625,000 | 625,000 | 625,000 | |||||||||
Debt Instrument, Unamortized Discount, Total | 209,000 | 209,000 | 231,000 | |||||||||
Long-term Debt, Total | 416,000 | 416,000 | ||||||||||
Amount of Senior Convertible Promissory Notes Authorized to Issue in Private Placement | $ 1,000,000 | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.25 | |||||||||||
Amortization of Debt Discount (Premium) | 11,000 | 2,000 | 22,000 | 2,000 | ||||||||
Proceeds from Convertible Debt | ||||||||||||
Increase in Unamortized Debt Discount Due to Issuance | ||||||||||||
Warrants Related to the 2018 Convertible Notes [Member] | ||||||||||||
Percentage of Shares Issuable Upon Conversion of the Promissory Notes, Below Investment Threshold | 10.00% | |||||||||||
Percentage of Shares Issuable Upon Conversion of the Promissory Notes, Above Investment Threshold | 25.00% | |||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 0.25 | |||||||||||
Warrants and Rights Outstanding, Term | 10 years | |||||||||||
The 2017 Convertible Notes [Member] | ||||||||||||
Long-term Debt, Gross | 4,370,000 | 4,370,000 | 4,370,000 | |||||||||
Debt Instrument, Unamortized Discount, Total | 415,000 | 415,000 | $ 456,000 | |||||||||
Long-term Debt, Total | 3,955,000 | 3,955,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.333 | $ 0.50 | ||||||||||
Interest Expense, Total | 91,000 | 92,000 | 171,000 | 166,000 | ||||||||
Amortization of Debt Discount (Premium) | 26,000 | 28,000 | 41,000 | 48,000 | ||||||||
Proceeds from Convertible Debt | ||||||||||||
Increase in Unamortized Debt Discount Due to Issuance | ||||||||||||
The 2017 Convertible Notes [Member] | Maximum [Member] | ||||||||||||
Amount of Senior Convertible Promissory Notes Authorized to Issue in Private Placement | $ 5,000,000 | |||||||||||
The 2016 Convertible Notes [Member] | ||||||||||||
Long-term Debt, Gross | 2,990,000 | 2,990,000 | 2,990,000 | |||||||||
Debt Instrument, Unamortized Discount, Total | 1,257,000 | 1,257,000 | $ 1,510,000 | |||||||||
Long-term Debt, Total | 1,733,000 | 1,733,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||||||||
Debt Instrument, Term | 5 years | |||||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.25 | |||||||||||
Interest Expense, Total | 172,000 | 165,000 | 342,000 | 328,000 | ||||||||
Amortization of Debt Discount (Premium) | $ 127,000 | $ 120,000 | 253,000 | $ 238,000 | ||||||||
Proceeds from Convertible Debt | ||||||||||||
Increase in Unamortized Debt Discount Due to Issuance | ||||||||||||
The 2016 Convertible Notes [Member] | Maximum [Member] | ||||||||||||
Amount of Senior Convertible Promissory Notes Authorized to Issue in Private Placement | $ 3,000,000 |
Note 4 - Senior Convertible N_4
Note 4 - Senior Convertible Notes and Warrants - Schedule of Senior Convertible Notes Outstanding (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Face value | $ 9,160,000 | |||
Notes issued in current period | 800,000 | |||
Face value | $ 9,960,000 | 9,960,000 | ||
Debt discount | (2,557,000) | |||
Debt discount issued in current period | (82,000) | |||
Amortization of discount reported as interest | 351,000 | $ 289,000 | ||
Debt discount | (2,288,000) | (2,288,000) | ||
Senior Convertible Notes (net) | 7,672,000 | 7,672,000 | ||
The 2019 Convertible Notes [Member] | ||||
Face value | ||||
Notes issued in current period | 300,000 | |||
Face value | 300,000 | 300,000 | ||
Debt discount | ||||
Debt discount issued in current period | (17,000) | |||
Amortization of discount reported as interest | 3,000 | 3,000 | ||
Debt discount | (14,000) | (14,000) | ||
Senior Convertible Notes (net) | 286,000 | 286,000 | ||
July 2018 Convertible Notes [Member] | ||||
Face value | 1,175,000 | |||
Notes issued in current period | 500,000 | |||
Face value | 1,675,000 | 1,675,000 | ||
Debt discount | (360,000) | |||
Debt discount issued in current period | (65,000) | |||
Amortization of discount reported as interest | 19,000 | $ 0 | 32,000 | 0 |
Debt discount | (393,000) | (393,000) | ||
Senior Convertible Notes (net) | 1,282,000 | 1,282,000 | ||
The 2018 Convertible Notes [Member] | ||||
Face value | 625,000 | |||
Notes issued in current period | ||||
Face value | 625,000 | 625,000 | ||
Debt discount | (231,000) | |||
Debt discount issued in current period | ||||
Amortization of discount reported as interest | 11,000 | 2,000 | 22,000 | 2,000 |
Debt discount | (209,000) | (209,000) | ||
Senior Convertible Notes (net) | 416,000 | 416,000 | ||
The 2017 Convertible Notes [Member] | ||||
Face value | 4,370,000 | |||
Notes issued in current period | ||||
Face value | 4,370,000 | 4,370,000 | ||
Debt discount | (456,000) | |||
Debt discount issued in current period | ||||
Amortization of discount reported as interest | 26,000 | 28,000 | 41,000 | 48,000 |
Debt discount | (415,000) | (415,000) | ||
Senior Convertible Notes (net) | 3,955,000 | 3,955,000 | ||
The 2016 Convertible Notes [Member] | ||||
Face value | 2,990,000 | |||
Notes issued in current period | ||||
Face value | 2,990,000 | 2,990,000 | ||
Debt discount | (1,510,000) | |||
Debt discount issued in current period | ||||
Amortization of discount reported as interest | 127,000 | $ 120,000 | 253,000 | $ 238,000 |
Debt discount | (1,257,000) | (1,257,000) | ||
Senior Convertible Notes (net) | $ 1,733,000 | $ 1,733,000 |
Note 5 - Unsecured Subordinat_2
Note 5 - Unsecured Subordinated Promissory Notes (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Short-term Debt, Total | $ 425,000 | |
Unsecured Subordinated Promissory Notes [Member] | ||
Short-term Debt, Total | $ 425,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |
Debt Instrument, Term | 90 days |
Note 6 - Right-to-use Buildin_2
Note 6 - Right-to-use Building Asset (Details Textual) - USD ($) | 3 Months Ended | ||
Jun. 30, 2019 | Mar. 31, 2019 | Jan. 01, 2019 | |
Operating Lease, Liability, Total | $ 257,000 | ||
Lessee, Operating Lease, Discount Rate | 6.00% | ||
Operating Lease, Cost | $ 30,000 | $ 30,000 | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 105,000 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 114,000 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 47,000 | ||
Lessee, Operating Lease, Liability, Payments, Due, Total | 267,000 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | $ 20,000 |
Note 7 - Software (Details Text
Note 7 - Software (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Capitalized Computer Software, Net, Ending Balance | $ 4,000 | $ 10,000 |
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 4,000 | |
Computer Software, Intangible Asset [Member] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years |
Note 8 - Property and Equipme_3
Note 8 - Property and Equipment - Property and Equipment (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Office equipment | $ 249,000 | $ 249,000 |
Shop equipment | 182,000 | 182,000 |
Leasehold improvements | 253,000 | 253,000 |
684,000 | 684,000 | |
Less accumulated depreciation | (636,000) | (622,000) |
Net property and equipment | $ 48,000 | $ 62,000 |
Note 9 - Business Segments (Det
Note 9 - Business Segments (Details Textual) | 6 Months Ended |
Jun. 30, 2019 | |
Number of Operating Segments | 2 |
Note 9 - Business Segments - Op
Note 9 - Business Segments - Operation by Segments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Revenue | $ 2,000 | $ 8,000 | $ 9,000 | $ 16,000 | |||
Earnings (loss) on revenue | (1,000) | (25,000) | (54,000) | ||||
Total costs and expenses | 661,000 | 858,000 | 1,536,000 | 1,888,000 | |||
Loss from operations | (662,000) | (883,000) | (1,536,000) | (1,942,000) | |||
Interest and other | (303,000) | (259,000) | (577,000) | (495,000) | |||
Net loss | (965,000) | $ (1,148,000) | (1,142,000) | $ (1,295,000) | (2,113,000) | (2,437,000) | |
Stock based compensation | 45,000 | 35,000 | 104,000 | 37,000 | |||
Depreciation and amortization | 34,000 | 44,000 | 72,000 | 88,000 | |||
Assets | 297,000 | 2,019,000 | 297,000 | 2,019,000 | $ 150,000 | ||
Operating Segments [Member] | CURA Division [Member] | |||||||
Revenue | 2,000 | 8,000 | 9,000 | 16,000 | |||
Earnings (loss) on revenue | (1,000) | (25,000) | (54,000) | ||||
Total costs and expenses | 176,000 | 373,000 | 515,000 | 896,000 | |||
Loss from operations | (177,000) | (398,000) | (515,000) | (950,000) | |||
Interest and other | |||||||
Net loss | (177,000) | (398,000) | (515,000) | (950,000) | |||
Stock based compensation | 6,000 | 5,000 | 14,000 | (11,000) | |||
Depreciation and amortization | 3,000 | 37,000 | 9,000 | 74,000 | |||
Assets | 6,000 | 1,810,000 | 6,000 | 1,810,000 | |||
Operating Segments [Member] | Aegis Division [Member] | |||||||
Revenue | |||||||
Earnings (loss) on revenue | |||||||
Total costs and expenses | 150,000 | 160,000 | 319,000 | 291,000 | |||
Loss from operations | (150,000) | (160,000) | (319,000) | (291,000) | |||
Interest and other | |||||||
Net loss | (150,000) | (160,000) | (319,000) | (291,000) | |||
Stock based compensation | 5,000 | 26,000 | 13,000 | 28,000 | |||
Depreciation and amortization | 5,000 | 5,000 | 10,000 | 10,000 | |||
Assets | 45,000 | 65,000 | 45,000 | 65,000 | |||
Corporate, Non-Segment [Member] | |||||||
Revenue | |||||||
Earnings (loss) on revenue | |||||||
Total costs and expenses | 335,000 | 325,000 | 702,000 | 701,000 | |||
Loss from operations | (335,000) | (325,000) | (702,000) | (701,000) | |||
Interest and other | (303,000) | (259,000) | (577,000) | (495,000) | |||
Net loss | (638,000) | (584,000) | (1,279,000) | (1,196,000) | |||
Stock based compensation | 34,000 | 4,000 | 77,000 | 20,000 | |||
Depreciation and amortization | 26,000 | 2,000 | 53,000 | 4,000 | |||
Assets | $ 246,000 | $ 144,000 | $ 246,000 | $ 144,000 |
Note 10 - Preferred and Commo_2
Note 10 - Preferred and Common Stock (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 | 400,000,000 | |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | $ 0.01 | |
Preferred stock, shares authorized (in shares) | 100,000,000 | 100,000,000 | 100,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 | $ 0.01 | |
Series C3 Preferred Stock [Member] | ||||
Stock Issued During Period, Shares, Conversion of Convertible Securities | 870,000 | |||
Preferred stock, shares outstanding (in shares) | 3,268,000 | 3,268,000 | 3,268,000 | |
Preferred Class A [Member] | ||||
Preferred stock, shares outstanding (in shares) | 468,221 | 468,221 | 468,221 | |
Preferred Stock, Shares Outstanding, Not Accruing Dividends | 8,709 | 8,709 | ||
Preferred Stock, Shares Outstanding, Accruing Dividends | 459,512 | 459,512 | ||
Dividends Payable | $ 2,621,000 | $ 2,621,000 | $ 2,530,000 | |
Preferred Stock, Liquidation Preference, Value | $ 2,621,000 | $ 2,621,000 | $ 2,530,000 | |
Preferred Stock, Liquidation Preference Per Share | $ 4 | $ 4 | ||
Preferred Class B [Member] | ||||
Preferred stock, shares outstanding (in shares) | 67,500 | 67,500 | 67,500 | |
Dividends Payable | $ 471,000 | $ 471,000 | $ 454,000 | |
Preferred Stock, Liquidation Preference, Value | $ 471,000 | $ 471,000 | $ 454,000 | |
Preferred Stock, Liquidation Preference Per Share | $ 5 | $ 5 | ||
Series C Preferred Stock [Member] | ||||
Preferred stock, shares outstanding (in shares) | 15,687,500 | 15,687,500 | 15,687,500 | |
Preferred Stock, Liquidation Preference, Value | $ 6,275,000 | $ 6,275,000 | $ 6,275,000 | |
Preferred Stock, Liquidation Preference Per Share | $ 0.40 | $ 0.40 | ||
Series C2 Preferred Stock [Member] | ||||
Preferred stock, shares outstanding (in shares) | 24,500,000 | 24,500,000 | 24,500,000 | |
Preferred Stock, Liquidation Preference, Value | $ 4,900,000 | $ 4,900,000 | $ 4,900,000 | |
The 2016 and 2017 Convertible Note [Member] | ||||
Stock Issued During Period, Shares, New Issues | 75,152 | |||
Shares Issued, Price Per Share | $ 0.25 | $ 0.25 | ||
The 2019 Convertible Notes [Member] | ||||
Stock Issued During Period, Shares, New Issues | 90,000 | 90,000 |
Note 11 - Stock Options (Detail
Note 11 - Stock Options (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2011 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ||||||
Share-based Payment Arrangement, Expense | $ 45,000 | $ 35,000 | $ 104,000 | $ 37,000 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ 193,000 | $ 193,000 | ||||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 0 | $ 0.25 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 74,000 | $ 259,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Total | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | 0 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 391,875 | |||||
Share-based Payment Arrangement, Option, Exercise Price Range, Lower Range Limit | $ 0.22 | |||||
Share-based Payment Arrangement, Option, Exercise Price Range, Upper Range Limit | $ 1.58 | |||||
Stock Option Plan 2016 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,220,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,780,000 | 1,780,000 | ||||
Stock Option Plan 2011 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 917,500 | 0 | 1,067,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 91,500 | 91,500 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Percentage of Outstanding Stock Maximum | 10.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 110.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years |
Note 11 - Stock Options - Stock
Note 11 - Stock Options - Stock Options Valuation Assumptions (Details) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Expected term (years) (Year) | 6 years 109 days | |
Expected forfeiture rate | 0.00% | |
Risk-free rate | 2.60% | |
Volatility | 130.00% | |
Dividend yield | 0.00% |
Note 11 - Stock Options - Share
Note 11 - Stock Options - Share-based Compensation, Stock Options, Activity (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Outstanding shares (in shares) | 11,028,500 | ||
Outstanding - weighted average exercise price (in dollars per share) | $ 0.49 | ||
Outstanding - weighted average remaining contractual term (Year) | 3 years 109 days | 3 years 292 days | |
Outstanding - aggregate intrinsic value | $ 94,000 | ||
Shares, granted (in shares) | |||
Weighted average exercise price, granted (in dollars per share) | |||
Shares, exercised (in shares) | 0 | 0 | |
Weighted average exercise price, exercised (in dollars per share) | |||
Shares, canceled or expired (in shares) | 0 | ||
Weighted average exercise price, canceled or expired (in dollars per share) | |||
Outstanding shares (in shares) | 11,028,500 | 11,028,500 | |
outstanding - weighted average exercise price (in dollars per share) | $ 0.49 | $ 0.49 | |
Shares, exercisable (in shares) | 7,314,000 | ||
Weighted average exercise price, exercisable (in dollars per share) | $ 0.56 | ||
Exercisable- weighted average remaining contractual term (Year) | 2 years 255 days | ||
Exercisable-aggregate intrinsic value |
Note 12 - Warrants (Details Tex
Note 12 - Warrants (Details Textual) - shares | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Class of Warrant or Right, Outstanding | 7,731,707 | 7,381,707 | |
Warrants without Expiration Date, Outstanding | 743,500 | 743,500 | |
Warrants without Expiration Date, Exercisable | 118,500 | 118,500 | |
Warrants Not Determined, Exercise Price [Member] | |||
Class of Warrant or Right, Outstanding | 1,750,000 |
Note 12 - Warrants - Summary of
Note 12 - Warrants - Summary of Outstanding Warrants (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | ||
Shares outstanding (in shares) | 7,381,707 | ||
Outstanding, weighted average exercise price (in dollars per share) | [1] | $ 0.46 | |
Outstanding, weighted average remaining contractual term (Year) | [2] | 6 years 255 days | 7 years |
Outstanding, aggregate intrinsic value | $ 27,000 | $ 39,000 | |
Class of Warrant or Right, Issued During Period | 350,000 | ||
Granted, weighted average exercise price (in dollars per share) | $ 0.25 | ||
Shares exercised (in shares) | |||
Exercised, weighted average exercise price (in dollars per share) | |||
Shares canceled or expired (in shares) | |||
Canceled or expired, weighted average exercise price (in dollars per share) | |||
Shares outstanding (in shares) | 7,731,707 | 7,381,707 | |
Outstanding, weighted average exercise price (in dollars per share) | [1] | $ 0.45 | $ 0.46 |
Shares exercisable (in shares) | 7,106,707 | ||
Exercisable, weighted average exercise price (in dollars per share) | $ 0.44 | ||
Exercisable, weighted average remaining contractual term (Year) | [3] | 6 years 73 days | |
Exercisable, aggregate intrinsic value | $ 27,000 | ||
[1] | The weighted average exercise price for warrants outstanding as of June 30, 2019 and 2018 excludes 1,750,000 warrants in each period with no determined exercise price. | ||
[2] | The weighted average remaining contractual term for warrants outstanding as of June 30, 2019 and 2018 excludes 743,500 warrants with no expiration date. | ||
[3] | The weighted average remaining contractual term for warrants exercisable as of June 30, 2019, and 2018 excludes 118,500 warrants with no expiration date. |
Note 13 - Related Party Trans_2
Note 13 - Related Party Transactions (Details Textual) | May 08, 2018 | Jun. 30, 2019USD ($)shares | Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)shares |
Proceeds from Short-term Debt, Total | $ 425,000 | ||||
The 2018 Convertible Notes [Member] | |||||
Debt Instrument, Term | 5 years | ||||
Six Members of the Board of Directors [Member] | Warrants Related to the 2018 Convertible Notes [Member] | |||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 1,239,288 | 1,239,288 | 1,239,288 | ||
Six Members of the Board of Directors [Member] | The 2018 Convertible Notes [Member] | |||||
Debt Instrument, Face Amount | $ 2,252,500 | $ 2,252,500 | $ 2,252,500 | ||
Debt Instrument, Convertible, Number of Equity Instruments | 7,888,378 | 7,888,378 | |||
Chief Executive Officer [Member] | Unsecured Subordinated Promissory Notes [Member] | |||||
Proceeds from Short-term Debt, Total | $ 425,000 | ||||
Debt Instrument, Term | 90 days | ||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% |
Note 14 - Subsequent Events (De
Note 14 - Subsequent Events (Details Textual) | Aug. 08, 2019USD ($)shares | Jul. 23, 2019USD ($)$ / shares | Aug. 08, 2019USD ($)$ / sharesshares | Apr. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)shares | Mar. 31, 2019USD ($) | Jun. 30, 2019USD ($)shares | Jul. 11, 2019USD ($) | Dec. 31, 2018USD ($) |
Stock Issued During Period, Value, Interest | $ 10,000 | $ 8,000 | |||||||
Long-term Debt, Gross | $ 9,960,000 | $ 9,960,000 | $ 9,160,000 | ||||||
Class of Warrant or Right, Issued During Period | shares | 350,000 | ||||||||
Unsecured Subordinated Promissory Notes [Member] | Chief Executive Officer [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||||||
The 2019 Convertible Notes [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||
Long-term Debt, Gross | $ 300,000 | $ 300,000 | |||||||
Stock Issued During Period, Shares, New Issues | shares | 90,000 | 90,000 | |||||||
Debt Instrument, Convertible, Number of Equity Instruments | 30,000 | ||||||||
Debt Instrument, Convertible, Threshold Amount Needed to Invest to Convert a Specified Number of Equity Instruments | $ 100,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.15 | ||||||||
Debt Instrument, Term, Number of Days after Substantial Sale of Aegis Division | 5 days | ||||||||
Subsequent Event [Member] | |||||||||
Stock Issued During Period, Shares, Interest | shares | 33,973 | ||||||||
Stock Issued During Period, Value, Interest | $ 8,492 | ||||||||
Subsequent Event [Member] | Unsecured Subordinated Promissory Notes [Member] | Chief Executive Officer [Member] | |||||||||
Debt Instrument, Face Amount | $ 50,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||||||||
Subsequent Event [Member] | The 2019 Convertible Notes [Member] | |||||||||
Long-term Debt, Gross | $ 50,000 | 50,000 | |||||||
Stock Issued During Period, Shares, New Issues | shares | 15,000 | ||||||||
Subsequent Event [Member] | The 2019 Convertible Notes [Member] | Director [Member] | |||||||||
Long-term Debt, Gross | $ 25,000 | $ 25,000 | |||||||
Stock Issued During Period, Shares, New Issues | shares | 7,500 | ||||||||
Subsequent Event [Member] | Credit Facility with Co-borrowers [Member] | |||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | |||||||
Long-term Debt, Gross | $ 400,000 | $ 400,000 | |||||||
Stock Issued During Period, Shares, New Issues | shares | 120,000 | ||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,500,000 | ||||||||
Debt Instrument, Convertible, Number of Equity Instruments | 30,000 | ||||||||
Debt Instrument, Convertible, Threshold Amount Needed to Invest to Convert a Specified Number of Equity Instruments | $ 100,000 | ||||||||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 0.15 | ||||||||
Debt Instrument, Term, Number of Days after Substantial Sale of Aegis Division | 5 days | ||||||||
Subsequent Event [Member] | Credit Facility with Co-borrowers [Member] | Rights Related to Credit Facility with Co-borrowers [Member] | |||||||||
Class of Warrant or Right, Issued During Period | shares | 2,666,667 | ||||||||
Class of Warrant or Right, Issued During Period, Exercise Price | $ / shares | $ 0.15 | ||||||||
Subsequent Event [Member] | Credit Facility with Co-borrowers [Member] | Prime Rate [Member] | |||||||||
Debt Instrument, Basis Spread on Variable Rate | 5.50% |