Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 07, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | Ideal Power Inc. | |
Entity Central Index Key | 1,507,957 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Trading Symbol | IPWR | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 13,996,782 |
Balance Sheets
Balance Sheets - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 13,335,908 | $ 4,204,916 |
Accounts receivable, net | 205,646 | 378,658 |
Inventories, net | 366,535 | 1,245,147 |
Prepayments and other current assets | 252,532 | 312,593 |
Total current assets | 14,160,621 | 6,141,314 |
Property and equipment, net | 751,138 | 936,486 |
Intangible assets, net | 2,099,182 | 1,905,556 |
Other assets | 0 | 17,920 |
Total Assets | 17,010,941 | 9,001,276 |
Current liabilities: | ||
Accounts payable | 212,984 | 346,767 |
Accrued expenses | 1,180,282 | 1,149,129 |
Total current liabilities | 1,393,266 | 1,495,896 |
Other long-term liabilities | 489,941 | 265,418 |
Total liabilities | 1,883,207 | 1,761,314 |
Commitments and contingencies (see Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; 1,518,430 shares issued and outstanding at June 30, 2017 | 1,518 | 0 |
Common stock, $0.001 par value; 50,000,000 shares authorized; 13,998,465 shares issued and 13,996,782 shares outstanding at June 30, 2017 and 9,560,896 shares issued and 9,559,213 shares outstanding at December 31, 2016, respectively | 13,998 | 9,561 |
Additional paid-in capital | 66,471,006 | 52,310,481 |
Treasury stock, at cost; 1,683 shares at June 30, 2017 and December 31, 2016 | (5,915) | (5,915) |
Accumulated deficit | (51,352,873) | (45,074,165) |
Total stockholders’ equity | 15,127,734 | 7,239,962 |
Total Liabilities and Stockholders’ Equity | $ 17,010,941 | $ 9,001,276 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2017 | Dec. 31, 2016 |
Preferred Stock, par value (in dollars per share) | $ 0.001 | |
Preferred stock, shares authorized (in shares) | 10,000,000 | |
Preferred stock, shares issued (in shares) | 1,518,430 | |
Preferred stock, shares outstanding | 1,518,430 | |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 13,998,465 | 9,560,896 |
Common stock, shares outstanding | 13,996,782 | 9,559,213 |
Treasury stock, shares | 1,683 | 1,683 |
Statements of Operations (unaud
Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Product revenue | $ 253,370 | $ 322,116 | $ 529,040 | $ 818,760 |
Cost of product revenue | 764,609 | 298,937 | 1,475,539 | 793,691 |
Gross profit (loss) | (511,239) | 23,179 | (946,499) | 25,069 |
Operating expenses: | ||||
Research and development | 1,108,368 | 1,203,179 | 2,298,537 | 2,683,164 |
General and administrative | 1,170,415 | 881,659 | 2,076,378 | 1,801,990 |
Sales and marketing | 427,336 | 412,433 | 968,869 | 824,963 |
Total operating expenses | 2,706,119 | 2,497,271 | 5,343,784 | 5,310,117 |
Loss from operations | (3,217,358) | (2,474,092) | (6,290,283) | (5,285,048) |
Interest income, net | 7,034 | 6,615 | 11,575 | 15,224 |
Net loss | $ (3,210,324) | $ (2,467,477) | $ (6,278,708) | $ (5,269,824) |
Net loss per share – basic and fully diluted (in dollars per share) | $ (0.23) | $ (0.26) | $ (0.50) | $ (0.55) |
Weighted average number of shares outstanding – basic and fully diluted (in shares) | 13,989,282 | 9,547,747 | 12,443,076 | 9,546,864 |
Statements of Cash Flows (unaud
Statements of Cash Flows (unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (6,278,708) | $ (5,269,824) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Allowance for doubtful accounts | 273,727 | 15,475 |
Write-down of inventory | 712,083 | 12,590 |
Depreciation and amortization | 224,926 | 184,279 |
Write-off of capitalized patents | 202,343 | 48,773 |
Write-off of fixed assets | 15,036 | 1,215 |
Stock-based compensation | 498,006 | 763,326 |
Decrease (increase) in operating assets: | ||
Accounts receivable | (100,715) | 446,261 |
Inventories | 166,529 | (627,650) |
Prepayments and other current assets | 77,981 | 60,427 |
Increase (decrease) in operating liabilities: | ||
Accounts payable | (133,783) | (234,486) |
Accrued expenses | (5,627) | (405,761) |
Net cash used in operating activities | (4,348,202) | (5,005,375) |
Cash flows from investing activities: | ||
Purchase of property and equipment | (18,146) | (297,095) |
Acquisition of intangible assets | (171,134) | (203,500) |
Net cash used in investing activities | (189,280) | (500,595) |
Cash flows from financing activities: | ||
Net proceeds from issuance of stock | 13,657,331 | 0 |
Exercise of options and warrants | 11,143 | 35,536 |
Net cash provided by financing activities | 13,668,474 | 35,536 |
Net increase (decrease) in cash and cash equivalents | 9,130,992 | (5,470,434) |
Cash and cash equivalents at beginning of period | 4,204,916 | 15,022,286 |
Cash and cash equivalents at end of period | $ 13,335,908 | $ 9,551,852 |
Organization and Description of
Organization and Description of Business | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | Organization and Description of Business Ideal Power Inc. (the “Company”) was incorporated in Texas on May 17, 2007 under the name Ideal Power Converters, Inc. The Company changed its name to Ideal Power Inc. on July 8, 2013 and re-incorporated in Delaware on July 15, 2013 . With headquarters in Austin, Texas, it develops power conversion solutions with a focus on solar + storage, microgrid applications and stand-alone energy storage. The principal products of the Company are power conversion systems, including 2-port and multi-port products. Since its inception, the Company has generated limited revenues from the sale of products and has financed its research and development efforts and operations through the sale of common stock and, prior to its initial public offering, the issuance of convertible debt. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The Balance Sheet at December 31, 2016 has been derived from the Company’s audited financial statements. In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The updated standard becomes effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company will not early adopt and the standard is not expected to have a significant effect on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The new standard will be effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. While the Company is continuing to assess the potential impact of this standard, it expects its lease commitment will be subject to the updated standard and recognized as a lease liability and right-of-use asset upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), in order to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The updated standard is effective for financial statements issued for annual periods beginning after December 15, 2017 and interim periods within those fiscal years with early adoption permitted. The adoption of the standard will not have a significant effect on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 71 to a change to the terms or conditions of a share-based payment award. The amendments in this ASU are effective for public entities for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. The ASU should be applied prospectively on and after the effective date. The Company is evaluating the impact of this ASU. Management does not believe that any other recently issued, but not yet effective, accounting standards, if adopted, would have a material impact on the Company’s financial statements. |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Accounts receivable, net consisted of the following: June 30, 2017 December 31, (unaudited) Trade receivables $ 392,686 $ 430,278 Other receivables 102,147 33,755 494,833 464,033 Allowance for doubtful accounts (289,187 ) (85,375 ) $ 205,646 $ 378,658 At June 30, 2017, the allowance for doubtful accounts represents trade receivables from three customers which were fully reserved as it was determined that the probability of collection is remote. During the six months ended June 30, 2017, the Company collected $15,475 and wrote-off $69,900 of its allowance for doubtful accounts. These changes in the allowance for doubtful accounts are reflected within the sales and marketing line item of the statement of operations. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consisted of the following: June 30, 2017 December 31, (unaudited) Raw materials $ 288,650 $ 363,195 Finished goods 149,055 941,921 437,705 1,305,116 Reserve for obsolescence (71,170 ) (59,969 ) $ 366,535 $ 1,245,147 During the six months ended June 30, 2017, the Company recorded a non-cash inventory charge of $712,083 , of which $708,204 is related to excess finished goods inventory of its legacy 125kW battery converter and its end-of-life IBC-30 battery converter and is reflected within the cost of product revenue line item of the statement of operations. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net consisted of the following: June 30, 2017 December 31, (unaudited) Machinery and equipment $ 890,264 $ 894,228 Building leasehold improvements 395,335 395,335 Furniture, fixtures, software and computers 215,993 228,011 1,501,592 1,517,574 Accumulated depreciation and amortization (750,454 ) (581,088 ) $ 751,138 $ 936,486 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets, net consisted of the following: June 30, 2017 December 31, (unaudited) Patents $ 1,524,994 $ 1,556,204 Other intangible assets 732,175 470,870 2,257,169 2,027,074 Accumulated amortization (157,987 ) (121,518 ) $ 2,099,182 $ 1,905,556 At June 30, 2017 and December 31, 2016 , the Company had capitalized $554,216 and $678,410 , respectively, for costs related to patents that have not been awarded. In June 2017, a U.S. patent was issued associated with licensing agreements and the Company recorded an intangible asset and corresponding long-term liability for the estimated present value of future payments of $261,303 . The Company is amortizing the capitalized costs over the remaining term of the agreements. For further discussion of the licensing agreements, see Note 8. Amortization expense amounted to $18,594 and $36,469 for the three and six months ended June 30, 2017 , respectively, and $15,705 and $29,067 for the three and six months ended June 30, 2016 , respectively. Amortization expense for the succeeding five years and thereafter is approximately $45,000 (2017), $91,000 (2018-2021) and $1,136,000 (thereafter). |
Accrued Expenses
Accrued Expenses | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses consisted of the following: June 30, 2017 December 31, (unaudited) Accrued compensation $ 423,819 $ 519,485 Warranty reserve 398,079 335,893 Other 358,384 293,751 $ 1,180,282 $ 1,149,129 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Lease The Company has entered into a lease for 14,782 square feet of office and laboratory space located in Austin, Texas. The triple net lease has a term of 48 months and commenced on June 1, 2014. The annual base rent in the first year of the lease was $154,324 and increases by $3,548 in each succeeding year of the lease. In addition, the Company is required to pay its proportionate share of operating costs for the building. At June 30, 2017 , the remaining annual base rent commitments under the lease are as follows: Year Ended December 31, Amount 2017 $ 82,484 2018 68,736 Total $ 151,220 The Company incurred rent expense of $59,418 and $117,074 for the three and six months ended June 30, 2017 , respectively, and $55,719 and $111,324 for the three and six months ended June 30, 2016 , respectively. License Agreement In 2015, the Company entered into licensing agreements which expire on February 7, 2033 . Per the agreements, the Company has an exclusive royalty-free license which enhances its intellectual property portfolio related to semiconductor power switches. The agreements include both fixed and variable payments. The variable payments are a function of the number of associated patent filings pending and patents issued under the agreements. The Company will pay $10,000 for each patent filing pending and $20,000 for each patent issued within 20 days of December 21, 2017 and each subsequent year of the agreement, up to a maximum of $100,000 per year (i.e. five issued patents). In June 2017, a U.S. patent was issued associated with the agreements and the Company recorded an intangible asset and corresponding long-term liability for the estimated present value of future payments of $261,303 . This long-term liability incurred in connection with the patent issuance is a non-cash investing activity with regard to the Company’s statements of cash flows. At June 30, 2017 , two patents associated with the agreements had been issued and the estimated present value of future payments under the licensing agreement is $529,941 , of which $40,000 is due within 20 days of December 21, 2017 and is included in accrued expenses in the Company's balance sheet. The Company is accruing interest for future payments related to the issued patents associated with the agreement. Litigation On May 17, 2017, the Company provided its prior contract manufacturer (CM) notice that it was in breach of the Master Supply Agreement (MSA) between the parties. On May 19, 2017, the Company received notice from CM that the Company was allegedly in breach of the MSA. On June 23, 2017, the Company received a Notice of Arbitration from CM alleging claims against the Company and demanding recovery for alleged damages. On July 13, 2017, the Company responded to CM with a Notice of Defense and Counterclaim. On August 2, 2017, CM provided their response to the Company's Notice of Defense and Counterclaim. The parties are in the process of appointing an arbitrator. At this time, the Company is unable to estimate the possible loss, if any, associated with this proceeding. |
Equity
Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Equity | Equity On March 3, 2017 , the Company closed on a definitive securities purchase agreement, or Private Placement, to sell the Company’s common stock and preferred stock together with warrants to purchase shares of common stock. In the Private Placement, each share of common stock or preferred stock was sold together with a warrant to purchase one share of common stock at a collective price of $2.535 . Investors purchased an aggregate of 5,220,826 shares of common stock and 708,430 shares of preferred stock together with warrants to purchase 5,929,256 shares of common stock in the Private Placement for aggregate gross proceeds of $15 million . Net cash proceeds were $13,657,331 after offering fees and expenses, including the placement agent fee of approximately $1.1 million . The Company expects to utilize net proceeds from the offering for working capital and general corporate purposes. In February 2017, the Company's Board of Directors authorized Series A Convertible Preferred Stock consisting of 3,000,000 shares. Each share of the preferred stock has a par value of $0.001 and a stated value of $2.535 and is convertible at any time at the option of the holder into one share of common stock. The holder cannot convert the preferred stock to the extent its beneficial ownership would exceed 4.99% of the Company's common stock outstanding, subject to adjustment as provided in the Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock. The shares have no voting power, no liquidation preference or additional dividend entitlements. In the six months ended June 30, 2017, the Company issued 1,518,430 shares of the Company's Series A Convertible Preferred Stock. |
Equity Incentive Plan
Equity Incentive Plan | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plan | Equity Incentive Plan On May 17, 2013, the Company adopted the 2013 Equity Incentive Plan (the “Plan”) and reserved shares of common stock for issuance under the Plan. The Plan is administered by the Compensation Committee of the Company’s Board of Directors. At June 30, 2017 , 708,953 shares of common stock were available for issuance under the Plan. During the six months ended June 30, 2017 , the Company granted 83,625 stock options to Board members and 84,100 stock options to employees under the Plan. The estimated fair value of these stock options, calculated using the Black-Scholes option valuation model, was $296,107 , of which $84,368 was recognized during the six months ended June 30, 2017 . During the six months ended June 30, 2017 , 96,000 performance stock units (“PSUs”) were forfeited by employees as the continued service conditions were not achieved. The PSUs were initially granted in 2015 and, due to the forfeiture, the Company reversed $174,804 of stock-based compensation expense in the three months ended June 30, 2017. During the six months ended June 30, 2017 , 26,743 options to purchase shares of the Company’s common stock were exercised resulting in net proceeds of $11,143 . A summary of the Company’s stock option activity and related information is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Life (in years) Outstanding at December 31, 2016 1,385,204 $ 6.89 7.5 Granted 167,725 $ 2.99 Exercised (26,743 ) $ 0.42 Forfeited/Expired/Exchanged (125,551 ) $ 7.39 Outstanding at June 30, 2017 1,400,635 $ 6.50 7.3 Exercisable at June 30, 2017 829,623 $ 6.55 6.9 At June 30, 2017 , there was $1,739,406 of unrecognized compensation cost related to non-vested equity awards granted under the Plan. That cost is expected to be recognized over a weighted average period of 1.8 years. |
Warrants
Warrants | 6 Months Ended |
Jun. 30, 2017 | |
Warrants and Rights Note Disclosure [Abstract] | |
Warrants | Warrants In connection with the Private Placement, investors received warrants to purchase 5,929,256 shares of common stock. The warrants have an exercise price of $2.41 per share, are non-exercisable for the first six months and will expire three years from the date of issuance. The placement agent also received 237,170 warrants to purchase shares of common stock as part of its placement agent fee. The placement agent warrant has an exercise price of $2.89 per share, is non-exercisable for 12 months and has a three -year term. The warrants contain a provision to protect investors from potential future dilutive events, or a down-round provision. The Company estimated the fair value of the down-round provision by utilizing a Monte Carlo valuation model and determined the fair value associated with the down-round provision was immaterial. A summary of the Company’s common stock warrant activity and related information is as follows: Warrants Weighted Average Exercise Price Weighted Outstanding at December 31, 2016 1,398,653 $ 4.57 2.5 Granted 6,166,426 $ 2.43 Forfeited/Expired/Exchanged (84,000 ) $ 6.25 Outstanding at June 30, 2017 7,481,079 $ 2.79 2.6 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission for Form 10-Q. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. The Balance Sheet at December 31, 2016 has been derived from the Company’s audited financial statements. In the opinion of management, these financial statements reflect all normal recurring, and other adjustments, necessary for a fair presentation. These financial statements should be read in conjunction with the audited financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . Operating results for interim periods are not necessarily indicative of operating results for an entire fiscal year or any other future periods. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or FASB, issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606) , requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The FASB has recently issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The updated standard becomes effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The Company will not early adopt and the standard is not expected to have a significant effect on the Company’s financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under previous U.S. GAAP. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The new standard will be effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. While the Company is continuing to assess the potential impact of this standard, it expects its lease commitment will be subject to the updated standard and recognized as a lease liability and right-of-use asset upon adoption. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), in order to address eight specific cash flow issues with the objective of reducing the existing diversity in practice. The updated standard is effective for financial statements issued for annual periods beginning after December 15, 2017 and interim periods within those fiscal years with early adoption permitted. The adoption of the standard will not have a significant effect on the Company’s financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU provides clarity and reduces both (1) diversity in practice and (2) cost and complexity when applying the guidance in Topic 71 to a change to the terms or conditions of a share-based payment award. The amendments in this ASU are effective for public entities for fiscal years and interim periods beginning after December 15, 2017, with early adoption permitted. The ASU should be applied prospectively on and after the effective date. The Company is evaluating the impact of this ASU. Management does not believe that any other recently issued, but not yet effective, accounting standards, if adopted, would have a material impact on the Company’s financial statements. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consisted of the following: June 30, 2017 December 31, (unaudited) Trade receivables $ 392,686 $ 430,278 Other receivables 102,147 33,755 494,833 464,033 Allowance for doubtful accounts (289,187 ) (85,375 ) $ 205,646 $ 378,658 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories, Net | Inventories, net consisted of the following: June 30, 2017 December 31, (unaudited) Raw materials $ 288,650 $ 363,195 Finished goods 149,055 941,921 437,705 1,305,116 Reserve for obsolescence (71,170 ) (59,969 ) $ 366,535 $ 1,245,147 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and equipment, net consisted of the following: June 30, 2017 December 31, (unaudited) Machinery and equipment $ 890,264 $ 894,228 Building leasehold improvements 395,335 395,335 Furniture, fixtures, software and computers 215,993 228,011 1,501,592 1,517,574 Accumulated depreciation and amortization (750,454 ) (581,088 ) $ 751,138 $ 936,486 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consisted of the following: June 30, 2017 December 31, (unaudited) Patents $ 1,524,994 $ 1,556,204 Other intangible assets 732,175 470,870 2,257,169 2,027,074 Accumulated amortization (157,987 ) (121,518 ) $ 2,099,182 $ 1,905,556 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses consisted of the following: June 30, 2017 December 31, (unaudited) Accrued compensation $ 423,819 $ 519,485 Warranty reserve 398,079 335,893 Other 358,384 293,751 $ 1,180,282 $ 1,149,129 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Annual Base Rent | At June 30, 2017 , the remaining annual base rent commitments under the lease are as follows: Year Ended December 31, Amount 2017 $ 82,484 2018 68,736 Total $ 151,220 |
Equity Incentive Plan (Tables)
Equity Incentive Plan (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Option Activity and Related Information | A summary of the Company’s stock option activity and related information is as follows: Stock Options Weighted Average Exercise Price Weighted Average Remaining Life (in years) Outstanding at December 31, 2016 1,385,204 $ 6.89 7.5 Granted 167,725 $ 2.99 Exercised (26,743 ) $ 0.42 Forfeited/Expired/Exchanged (125,551 ) $ 7.39 Outstanding at June 30, 2017 1,400,635 $ 6.50 7.3 Exercisable at June 30, 2017 829,623 $ 6.55 6.9 |
Warrants (Tables)
Warrants (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Warrants and Rights Note Disclosure [Abstract] | |
Summary of Warrants | A summary of the Company’s common stock warrant activity and related information is as follows: Warrants Weighted Average Exercise Price Weighted Outstanding at December 31, 2016 1,398,653 $ 4.57 2.5 Granted 6,166,426 $ 2.43 Forfeited/Expired/Exchanged (84,000 ) $ 6.25 Outstanding at June 30, 2017 7,481,079 $ 2.79 2.6 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Trade receivables | $ 392,686 | $ 430,278 |
Other receivables | 102,147 | 33,755 |
Accounts receivable, gross, current | 494,833 | 464,033 |
Allowance for doubtful accounts | (289,187) | (85,375) |
Accounts receivable, net, current | $ 205,646 | $ 378,658 |
Accounts Receivable - Textual (
Accounts Receivable - Textual (Details) | 6 Months Ended |
Jun. 30, 2017USD ($) | |
Receivables [Abstract] | |
Collection of doubtful accounts | $ 15,475 |
Write-off of allowance for doubtful accounts receivable | $ 69,900 |
Inventories (Details)
Inventories (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 288,650 | $ 363,195 |
Finished goods | 149,055 | 941,921 |
Inventory, gross | 437,705 | 1,305,116 |
Reserve for obsolescence | 71,170 | 59,969 |
Inventory, net, total | $ 366,535 | $ 1,245,147 |
Inventories - Textual (Details)
Inventories - Textual (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Inventory [Line Items] | ||
Write-down of inventory | $ 712,083 | $ 12,590 |
125kW and IBC-30 battery converters | ||
Inventory [Line Items] | ||
Write-down of inventory | $ 708,204 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,501,592 | $ 1,517,574 |
Accumulated depreciation and amortization | (750,454) | (581,088) |
Property and equipment, net | 751,138 | 936,486 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 890,264 | 894,228 |
Building leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 395,335 | 395,335 |
Furniture, fixtures, software and computers | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 215,993 | $ 228,011 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 2,257,169 | $ 2,027,074 |
Accumulated amortization | (157,987) | (121,518) |
Intangible assets, net | 2,099,182 | 1,905,556 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | 1,524,994 | 1,556,204 |
Other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross | $ 732,175 | $ 470,870 |
Intangible Assets - Textual (De
Intangible Assets - Textual (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangibles | $ 2,257,169 | $ 2,257,169 | $ 2,027,074 | ||
Long-term liability for estimated present value of future payments under licensing agreement, non-current | 529,941 | 529,941 | |||
Amortization of intangible assets | 18,594 | $ 15,705 | 36,469 | $ 29,067 | |
Remainder of 2017 | 45,000 | 45,000 | |||
2,018 | 91,000 | 91,000 | |||
2,019 | 91,000 | 91,000 | |||
2,020 | 91,000 | 91,000 | |||
2,021 | 91,000 | 91,000 | |||
Thereafter | 1,136,000 | 1,136,000 | |||
Patents | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Capitalized costs for costs related to patents that have not been awarded | 554,216 | 678,410 | |||
Finite-lived intangibles | 1,524,994 | 1,524,994 | $ 1,556,204 | ||
Licensing agreements | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangibles | 261,303 | 261,303 | |||
Long-term liability for estimated present value of future payments under licensing agreement, non-current | $ 261,303 | $ 261,303 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accrued compensation | $ 423,819 | $ 519,485 |
Warranty reserve | 398,079 | 335,893 |
Other | 358,384 | 293,751 |
Accrued expenses, total | $ 1,180,282 | $ 1,149,129 |
Commitments and Contingencies34
Commitments and Contingencies (Details) | Jun. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 82,484 |
2,018 | 68,736 |
Total | $ 151,220 |
Commitments and Contingencies -
Commitments and Contingencies - Textual (Details) | Jun. 01, 2014USD ($) | Jun. 30, 2017USD ($)ft² | Jun. 30, 2017USD ($)ft² | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)ft²patent | Jun. 30, 2016USD ($) | Dec. 31, 2015USD ($)patent | Dec. 31, 2016USD ($) |
Other Commitments [Line Items] | ||||||||
Rent expense | $ 59,418 | $ 55,719 | $ 117,074 | $ 111,324 | ||||
Payment for each patent issued | 171,134 | $ 203,500 | ||||||
Maximum number of patents that may be issued each year (in patents) | patent | 5 | |||||||
Finite-lived intangibles | $ 2,257,169 | 2,257,169 | $ 2,257,169 | $ 2,027,074 | ||||
Number of patents issued | patent | 2 | |||||||
Long-term liability for estimated present value of future payments under licensing agreement, non-current | 529,941 | 529,941 | $ 529,941 | |||||
Long-term liabilitiy for estimated present value of future payments, current | $ 40,000 | 40,000 | 40,000 | |||||
License agreements payment period | 20 days | |||||||
Licensing agreements | ||||||||
Other Commitments [Line Items] | ||||||||
Finite-lived intangibles | $ 261,303 | 261,303 | 261,303 | |||||
Long-term liability for estimated present value of future payments under licensing agreement, non-current | 261,303 | 261,303 | 261,303 | |||||
Patents | ||||||||
Other Commitments [Line Items] | ||||||||
Finite-lived intangibles | $ 1,524,994 | $ 1,524,994 | $ 1,524,994 | $ 1,556,204 | ||||
Licensing agreements | Patents | ||||||||
Other Commitments [Line Items] | ||||||||
Payment for each patent filing pending | $ 10,000 | |||||||
Payment for each patent issued | $ 20,000 | |||||||
License agreements payment period | 20 days | |||||||
Licensing agreements | Patents | Maximum | ||||||||
Other Commitments [Line Items] | ||||||||
Payment for each patent issued | $ 100,000 | |||||||
Office and laboratory space | ||||||||
Other Commitments [Line Items] | ||||||||
Square feet of office and laboratory space leased | ft² | 14,782 | 14,782 | 14,782 | |||||
Term of triple net lease | 48 months | |||||||
Annual base rent in the first year | $ 154,324 | |||||||
Increase in base rent each succeeding year | $ 3,548 | $ 3,548 | $ 3,548 |
Equity - Textual (Details)
Equity - Textual (Details) | Mar. 03, 2017USD ($)$ / sharesshares | Feb. 28, 2017$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($) |
Class of Stock [Line Items] | ||||
Net proceeds from the issuance of stock | $ | $ 13,657,331 | $ 0 | ||
Preferred stock, shares authorized (in shares) | 10,000,000 | |||
Preferred Stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||
Private Placement | ||||
Class of Stock [Line Items] | ||||
Number of shares called by each warrant (in shares) | 1 | |||
Sale of stock and warrants (in dollars per share) | $ / shares | $ 2.535 | |||
Number of shares called by warrants (in shares) | 5,929,256 | |||
Gross proceeds from the issuance of equity | $ | $ 15,000,000 | |||
Net proceeds from the issuance of stock | $ | 13,657,331 | |||
Payments of stock issuance costs | $ | $ 1,100,000 | |||
Private Placement | Common Stock | ||||
Class of Stock [Line Items] | ||||
Number of shares issued in transaction (in shares) | 5,220,826 | |||
Private Placement | Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Number of shares issued in transaction (in shares) | 708,430 | |||
Convertible preferred stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock, shares authorized (in shares) | 3,000,000 | |||
Preferred Stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||
Preferred Stock, stated value, per share (in dollars per share) | $ / shares | $ 2.535 | |||
Conversion ratio | 1 | |||
Maximum beneficial ownership, percentage | 4.99% | |||
Preferred stock, shares issued (in shares) | 1,518,430 |
Equity Incentive Plan - Textual
Equity Incentive Plan - Textual (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Net proceeds from issuance of stock | $ 13,657,331 | $ 0 | |
Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 167,725 | ||
Options exercised (in shares) | 26,743 | ||
Employees | Phantom share units (PSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense (reversal of) associated with grants | $ (174,804) | ||
Shares forfeited in period (in shares) | 96,000 | ||
Equity Incentive 2013 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share of common stock available for issuance under the Plan (in shares) | 708,953 | 708,953 | |
Unrecognized compensation cost related to non-vested share-based compensation arrangement | $ 1,739,406 | $ 1,739,406 | |
Weighted average period for recognition | 1 year 9 months 18 days | ||
Equity Incentive 2013 Plan | Employee stock option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Value of options granted | $ 296,107 | ||
Compensation expense (reversal of) associated with grants | $ 84,368 | ||
Options exercised (in shares) | 26,743 | ||
Net proceeds from issuance of stock | $ 11,143 | ||
Equity Incentive 2013 Plan | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 83,625 | ||
Equity Incentive 2013 Plan | Employees | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options granted (in shares) | 84,100 |
Equity Incentive Plan (Details)
Equity Incentive Plan (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Weighted Average Exercise Price (in dollars per share): | ||
Outstanding term | 2 years 7 months 6 days | 2 years 6 months |
Employee stock option | ||
Stock Options (in shares): | ||
Outstanding, beginning of period (in shares) | 1,385,204 | |
Granted (in shares) | 167,725 | |
Exercised (in shares) | (26,743) | |
Forfeitures/Expired/Exchanged (in shares) | (125,551) | |
Outstanding, ending of period (in shares) | 1,400,635 | 1,385,204 |
Exercisable at June 30, 2017 (in shares) | 829,623 | |
Weighted Average Exercise Price (in dollars per share): | ||
Outstanding, beginning of period (in dollars per share) | $ 6.89 | |
Granted (in dollars per share) | 2.99 | |
Exercised (in dollars per share) | 0.42 | |
Forfeitures/Expired/Exchanged (in dollars per share) | 7.39 | |
Outstanding, ending of period (in dollars per share) | 6.50 | $ 6.89 |
Exercisable at June 30, 2017 (in dollars per share) | $ 6.55 | |
Outstanding term | 7 years 3 months 18 days | 7 years 6 months |
Exercisable at June 30, 2017 | 6 years 10 months 24 days |
Warrants - Textual (Details)
Warrants - Textual (Details) - Private Placement | Mar. 03, 2017$ / sharesshares |
Class of Warrant or Right [Line Items] | |
Number of shares called by warrants (in shares) | shares | 5,929,256 |
Definitive securities purchase agreement | |
Class of Warrant or Right [Line Items] | |
Warrants exercise price of warrants (in dollars per share) | $ / shares | $ 2.41 |
Warrants non-exercisable period of warrants | 6 months |
Warrants expiration period | 3 years |
Placement agent warrant | |
Class of Warrant or Right [Line Items] | |
Number of shares called by warrants (in shares) | shares | 237,170 |
Warrants exercise price of warrants (in dollars per share) | $ / shares | $ 2.89 |
Warrants non-exercisable period of warrants | 12 months |
Warrants (Details)
Warrants (Details) - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Weighted Average Remaining Life (in years) | ||
Outstanding term | 2 years 7 months 6 days | 2 years 6 months |
Warrant | ||
Warrants (in shares): | ||
Outstanding, beginning of period (in shares) | 1,398,653 | |
Granted (in shares) | 6,166,426 | |
Forfeited/Expired/Exchanged (in shares) | (84,000) | |
Outstanding, ending of period (in shares) | 7,481,079 | 1,398,653 |
Weighted Average Exercise Price (in dollars per share): | ||
Outstanding, beginning of period (in dollars per share) | $ 4.57 | |
Weighted average exercise price, granted (in dollars per share) | 2.43 | |
Weighted average exercise price, forfeited/expired/exchanged (in dollars per share) | 6.25 | |
Outstanding, ending of period (in dollars per share) | $ 2.79 | $ 4.57 |