Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 14, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'MIKROS SYSTEMS CORP | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 31,984,753 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000317340 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Sep-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Condensed_Balance_Sheet_Unaudi
Condensed Balance Sheet (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $836,604 | $887,140 |
Receivables on government contracts | 596,998 | 1,162,423 |
Prepaid expenses and other current assets | 47,397 | 31,888 |
Total current assets | 1,480,999 | 2,081,451 |
Property and equipment: | ' | ' |
Equipment | 45,157 | 40,416 |
Furniture & fixtures | 9,264 | 9,264 |
Less: accumulated depreciation | -46,335 | -42,038 |
Property and equipment, net | 8,086 | 7,642 |
Patents and trademarks | 1,383 | 1,383 |
Less: accumulated amortization | -1,000 | -897 |
Intangible assets, net | 383 | 486 |
Deferred tax assets | 53,600 | 23,000 |
Total assets | 1,543,068 | 2,112,579 |
Current liabilities: | ' | ' |
Accrued payroll and payroll taxes | 128,955 | 273,089 |
Accounts payable and accrued expenses | 222,105 | 359,029 |
Accrued warranty expense | 83,549 | 69,655 |
Total current liabilities | 434,609 | 701,773 |
Long-term liabilities | 13,329 | 15,456 |
Total liabilities | 447,938 | 717,229 |
Common stock, par value $.01 per share, authorized 60,000,000 shares, issued and outstanding 31,984,753 shares and 32,011,753 shares as of September 30, 2013 and December 31, 2012, respectively | 319,848 | 320,118 |
Capital in excess of par value | 11,617,410 | 11,606,920 |
Accumulated deficit | -10,943,052 | -10,632,612 |
Total stockholders' equity | 1,014,680 | 1,314,900 |
Total liabilities and stockholders' equity | 1,543,068 | 2,112,579 |
Redeemable Preferred Stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Preferred stock value | 80,450 | 80,450 |
Series B Preferred Stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Preferred stock value | 11,024 | 11,024 |
Convertible Preferred Stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Preferred stock value | 2,550 | 2,550 |
Series D Preferred Stock [Member] | ' | ' |
Current liabilities: | ' | ' |
Preferred stock value | $6,900 | $6,900 |
Condensed_Balance_Sheet_Unaudi1
Condensed Balance Sheet (Unaudited) (Parentheticals) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Common stock par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in Shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in Shares) | 31,984,753 | 32,011,753 |
Common stock, shares outstanding (in Shares) | 31,984,753 | 32,011,753 |
Redeemable Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in Shares) | 150,000 | 150,000 |
Preferred stock, shares issued (in Shares) | 5,000 | 5,000 |
Preferred stock, shares outstanding (in Shares) | 5,000 | 5,000 |
Preferred stock, involuntary liquidation value (in Dollars) | $80,450 | $80,450 |
Series B Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in Shares) | 1,200,000 | 1,200,000 |
Preferred stock, shares issued (in Shares) | 1,102,433 | 1,102,433 |
Preferred stock, shares outstanding (in Shares) | 1,102,433 | 1,102,433 |
Preferred stock, involuntary liquidation value (in Dollars) | 1,102,433 | 1,102,433 |
Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in Shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in Shares) | 255,000 | 255,000 |
Preferred stock, shares outstanding (in Shares) | 255,000 | 255,000 |
Preferred stock, involuntary liquidation value (in Dollars) | 255,000 | 255,000 |
Series D Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in Shares) | 690,000 | 690,000 |
Preferred stock, shares issued (in Shares) | 690,000 | 690,000 |
Preferred stock, shares outstanding (in Shares) | 690,000 | 690,000 |
Preferred stock, involuntary liquidation value (in Dollars) | $1,518,000 | $1,518,000 |
Condensed_Statements_of_Operat
Condensed Statements of Operations and Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Contract Revenues | $904,908 | $1,124,211 | $2,174,662 | $2,362,703 |
Cost of sales | 433,316 | 662,812 | 1,110,709 | 1,119,994 |
Gross margin | 471,592 | 461,399 | 1,063,953 | 1,242,709 |
Expenses: | ' | ' | ' | ' |
Engineering | 214,461 | 174,203 | 619,468 | 480,956 |
General and administrative | 236,030 | 251,712 | 784,426 | 854,100 |
Total expenses | 450,491 | 425,915 | 1,403,894 | 1,335,056 |
Income (loss) from operations | 21,101 | 35,484 | -339,941 | -92,347 |
Other income: | ' | ' | ' | ' |
Interest income | ' | ' | 16 | 98 |
Net (loss) income before income taxes | 21,101 | 35,484 | -339,925 | -92,249 |
Income tax expense (benefit) | 130,729 | -83,000 | -29,485 | -105,000 |
Net (loss) income | -109,628 | 118,484 | -310,440 | 12,751 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive (loss) income | ($109,628) | $118,484 | ($310,440) | $12,751 |
(Loss) income per common share – basic and diluted (in Dollars per share) | ' | ' | ($0.01) | ' |
Basic weighted average number of common shares outstanding (in Shares) | 31,840,970 | 31,782,786 | 31,830,881 | 31,772,156 |
Diluted weighted average number of common shares outstanding (in Shares) | 31,840,970 | 35,345,085 | 31,830,881 | 35,334,435 |
Condensed_Statements_of_Cash_F
Condensed Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Cash flows from operating activities | ' | ' |
Net (loss) income | ($310,440) | $12,751 |
Adjustments to reconcile net loss to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 4,400 | 8,560 |
Deferred tax benefit | -30,600 | -81,000 |
Share-based compensation expense | 10,220 | 27,458 |
Changes in assets and liabilities: | ' | ' |
Decrease in receivables on government contracts | 565,425 | 694,048 |
Increase in prepaid expenses and other current assets | -15,509 | -54,216 |
Decrease in accrued payroll and payroll taxes | -144,134 | -238,365 |
Decrease in accounts payable and accrued expenses | -136,924 | -424,919 |
Increase (decrease) in accrued warranty expense | 13,894 | -34,062 |
Decrease in long-term liabilities | -2,127 | -831 |
Net cash used in operating activities | -45,795 | -90,576 |
Cash flows from investing activities: | ' | ' |
Purchase of property and equipment | -4,741 | -1,102 |
Net cash used in investing activities: | -4,741 | -1,102 |
Net decrease in cash and cash equivalents | -50,536 | -91,678 |
Cash and cash equivalents, beginning of period | 887,140 | 963,556 |
Cash and cash equivalents, end of period | 836,604 | 871,878 |
Supplemental cash flow information: | ' | ' |
Cash paid during the period for income taxes | $10,065 | $31,000 |
Note_1_Basis_Of_Presentation
Note 1 - Basis Of Presentation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Note 1 – Basis of Presentation | |
The financial statements included herein have been prepared by Mikros Systems Corporation (the “Company”) pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. These condensed financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012. | |
In the opinion of the Company’s management, the accompanying unaudited interim condensed financial statements contain all adjustments, consisting solely of those which are of a normal recurring nature, necessary to present fairly its financial position as of September 30, 2013, and the results of its operations for the three and nine months ended September 30, 2013 and 2012 and cash flows for the nine months ended September 30, 2013 and 2012. Changes in the Company’s stockholders’ equity from December 31, 2012 are a result of share-based compensation expense of $10,220 and a net loss of $310,440 for the nine months ended September 30, 2013. | |
Interim results are not necessarily indicative of results for the full fiscal year. |
Note_2_Recent_Accounting_Prono
Note 2 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure Text Block [Abstract] | ' |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | ' |
Note 2 – Recent Accounting Pronouncements | |
Effective January 1, 2012, the Company adopted Financial Accounting Standards Board’s (“FASB”) Accounting Standards Update (“ASU”) No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income and ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in ASU No. 2011-5. In these updates, an entity has the option to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. In both choices, an entity is required to present each component of net income along with total net income, each component of other comprehensive income along with a total for other comprehensive income, and a total amount for comprehensive income. ASU No. 2011-05 eliminates the option to present the components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments in ASU No. 2011-05 do not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The adoption of ASU Nos. 2011-05 and 2011-12 did not have a material impact on the Company’s consolidated financial statements. The Company has presented comprehensive loss in the accompanying consolidated statements of operations and comprehensive loss. | |
In February 2013, the FASB issued ASU No. 2013-02, Other Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. ASU No. 2013-02 does not change the current requirements for reporting net income or other comprehensive income in financial statements, however, it does require an entity to report the effect of significant reclassifications out of accumulated other comprehensive income on the respective line items in net income if the amounts are required to be reclassified in their entirety to net income. For other amounts that are not required to be reclassified in their entirety to net income in the same reporting period, an entity is required to cross-reference to other disclosures that provide additional detail about those amounts. The adoption of ASU No. 2013-02 did not have a material impact on the Company’s consolidated financial statements. |
Note_3_Significant_Accounting_
Note 3 - Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
Note 3 – Significant Accounting Policies | |
Revenue Recognition | |
The Company is engaged in research and development contracts with the federal government to develop certain technology to be utilized by the US Department of Defense. The contracts are cost plus fixed fee contracts and revenue is recognized based on the extent of progress towards completion of the long term contract. | |
Revenues are recognized as costs are incurred and include estimated earned fees, or profit, calculated on the basis of the relationship between costs incurred and total estimated costs at completion. Under the terms of certain contracts, fixed fees are not recognized until the receipt of full payment has become unconditional, that is, when the product has been delivered and accepted by the federal government. Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts as work is performed. The Company’s backlog primarily consists of future engineering services for the ADEPT Distance Support Sense Suite system and ADEPT units to be developed and delivered to the federal government. | |
Unbilled revenue reflects work performed, but not billed at the time, per contractual requirements. As of September 30, 2013 and December 31, 2012, the Company had unbilled revenues of $16,130 and $0, respectively, and are included in accounts receivable. Billings to customers in excess of revenue earned are classified as advanced billings, and shown as a liability. As of September 30, 2013 and December 31, 2012, the Company had no advanced billings. As of September 30, 2013, the Company had six ADEPT units remaining to be delivered under the Indefinite-Delivery, Indefinite-Quantity (“IDIQ”) agreement. During October 2013, the Company delivered four of these units, with the remaining two units expected to be delivered prior to the end of 2013. | |
Warranty Expense | |
The Company provides a limited warranty, as defined by the related warranty agreements, for its production units. The Company’s warranties require the Company to repair or replace defective products during such warranty period. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, expected and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. The Company reversed warranty expense of $3,901 and $24,500 for the three months ended September 30, 2013 and 2012, respectively. The Company recognized warranty expense of $13,894 for the nine months ended September 30, 2013. For the nine months ended September 30, 2012, the Company reversed $32,400 of warranty expense. Since the inception of the IDIQ contract in March 2010, the Company has delivered 116 ADEPT units. As of September 30, 2013, there are 71 ADEPT units that remain under the limited warranty coverage. As of September 30, 2013 and December 31, 2012, the Company had an accrued warranty expense of $83,549 and $69,655, respectively. | |
Research and Development Costs | |
Research and Development expenditures for research and development of the Company's products are expensed when incurred, and are included in general and administrative expenses. The Company recognized research and development costs of $3,188 and $21,809 for the three months ended September 30, 2013 and 2012, respectively, and $78,672 and $49,547 for the nine months ended September 30, 2013 and 2012, respectively. |
Note_4_Income_Loss_Per_Share
Note 4 - Income (Loss) Per Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||||||
Note 4 – Income (Loss) Per Share | |||||||||||||||||
For periods with net income, net income per common share information is computed using the two-class method. Under the two-class method, basic net income per common share is computed by dividing the net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. No such adjustment to earnings is made during periods with a net loss, as the holders of the convertible preferred shares have no obligation to fund losses. | |||||||||||||||||
The Company’s calculation of weighted average shares outstanding for the three and nine months ended September 30, 2013 and 2012 is set forth below: | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic earnings per common share: | |||||||||||||||||
Net (loss) income | $ | (109,628 | ) | $ | 118,484 | $ | (310,440 | ) | $ | 12,751 | |||||||
Portion allocable to common stockholders | 100 | % | 99.2 | % | 100 | % | 99.2 | % | |||||||||
Net (loss) income allocable to common stockholders | (109,628 | ) | 117,536 | (310,440 | ) | 12,649 | |||||||||||
Weighted average basic common shares outstanding | 31,840,970 | 31,782,786 | 31,830,881 | 31,772,136 | |||||||||||||
Basic (loss) income per common share | $ | - | $ | - | $ | (0.01 | ) | $ | - | ||||||||
Dilutive earnings per common share: | |||||||||||||||||
Net (loss) income allocable to common stockholders | (109,628 | ) | 117,536 | (310,440 | ) | 12,649 | |||||||||||
Add: undistributed earnings allocated to participating securities | - | 948 | - | 102 | |||||||||||||
Numerator for diluted earnings per common share | (109,628 | ) | 118,484 | (310,440 | ) | 12,751 | |||||||||||
Weighted average shares outstanding - basic | 31,840,970 | 31,782,786 | 31,830,881 | 31,772,136 | |||||||||||||
Diluted effect: | |||||||||||||||||
Stock options | - | - | - | - | |||||||||||||
Restricted stock awards | - | - | - | - | |||||||||||||
Conversion equivalent of dilutive Series B Convertible Preferred Stock | - | 3,307,299 | - | 3,307,299 | |||||||||||||
Conversion equivalent of dilutive Convertible Preferred Stock | - | 255,000 | - | 255,000 | |||||||||||||
Weighted average dilutive common shares outstanding | 31,840,970 | 35,345,085 | 31,830,881 | 35,334,435 | |||||||||||||
Dilutive (loss) income per common share | $ | - | $ | - | $ | (0.01 | ) | $ | - | ||||||||
Diluted net loss per share for the three and nine months ended September 30, 2013 and 2012 do not reflect following potential common shares, as the effect would be antidilutive. | |||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock options | 645,000 | 690,000 | 645,000 | 690,000 | |||||||||||||
Restricted stock awards | 103,000 | 186,000 | 103,000 | 186,000 | |||||||||||||
Convertible preferred stock | 3,562,299 | - | 3,562,299 | - | |||||||||||||
Total | 4,310,299 | 876,000 | 4,310,299 | 876,000 | |||||||||||||
Note_5_Income_Tax_Matters
Note 5 - Income Tax Matters | 9 Months Ended |
Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' |
Income Tax Disclosure [Text Block] | ' |
Note 5 – Income Tax Matters | |
The Company conducts an on-going analysis to review the deferred tax assets and the related valuation allowance that it has recorded against deferred tax assets, primarily associated with Federal net operating loss carryforwards. As a result of this analysis and the actual results of operations, the Company has increased its net deferred tax assets by $30,600 and $81,000 during the nine months ended September 30, 2013 and 2012, respectively. The change in deferred tax assets is attributable to the change in the valuation allowance based on the Company’s forecasts of future results from operations. |
Note_6_ShareBased_Compensation
Note 6 - Share-Based Compensation | 9 Months Ended |
Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' |
Note 6 – Share Based Compensation | |
During the nine months ended September 30, 2013, the Company issued 35,000 stock option awards and 80,000 option awards were forfeited. There were no options granted or forfeited during 2012. In accordance with the recognition provisions of the FASB’s Accounting Standards Codification 718, Share-Based Payments, the Company recorded the fair value of the options issued at $0.03 per share. The fair value of the options was determined using the Black-Scholes option pricing model with the following assumptions: no dividend yield, risk-free interest rate of 0.75%, volatility of 66.25%, and an expected term of 6.5 years. The Company recognized stock-based compensation expense for stock options of $2,140 and $7,837 for the three months ended September 30, 2013 and 2012, respectively. The Company recognized stock-based compensation expense for stock options of $6,603 and $27,458 for the nine months ended September 30, 2013 and 2012, respectively. As of September 30, 2013 and 2012, there were 645,000 options outstanding. | |
As of September 30, 2013 and 2012, there were 103,000 and 245,000 restricted stock awards outstanding, respectively. During the three and nine months ended September 30, 2013, 27,000 restricted stock awards were forfeited. The Company recognized stock-based compensation expense for restricted stock of $1,206 and 1,328 for the three months ended September 30, 2013 and 2012, respectively. The Company recognized stock-based compensation expense for restricted stock of $3,616 and $3,946 for the nine months ended September 30, 2013 and 2012, respectively. | |
As of September 30, 2013, there was $14,746 of unrecognized stock-based compensation expense related to all outstanding equity awards that will be recognized in future periods. |
Note_7_Related_Party_Transacti
Note 7 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
Note 7 – Related Party Transactions | |
Ocean Power Technologies, Inc. ("OPT") operates as a subcontractor to the Company. Thomas Meaney, the Company’s president and chief financial officer and member of the Company’s board of directors, also served as a director of OPT through October 2012. During the three months ended September 30, 2013 and 2012, the Company incurred subcontracting service costs from OPT of $0 and $12,731, respectively. For the nine months ended September 30, 2013 and 2012, the Company incurred subcontractor expenses from OPT of $31,025 and $31,588, respectively. | |
Paul Casner, the chairman of the Company’s board of directors, also serves as the executive chairman and CEO of Precision Flight Systems, LLC (“Precision”), formerly known as Atair Aerospace Incorporation. In 2012, Precision provided subcontracting services to the Company relating to the design of the chassis component within the ADEPT units. During the three months ended September 30, 2013 and 2012, the Company incurred subcontracting service costs from Precision of $0 and $91,703, respectively. For the nine months ended September 30, 2013 and 2012, the Company incurred subcontractor expenses from Precision of $70,670 and $91,703, respectively. |
Note_8_Commitments_and_Conting
Note 8 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
Note 8 – Commitments and Contingencies | |
During the quarter ended June 30, 2013, the Company renewed its line of credit agreement with Sun National Bank and increased its borrowing capacity to $500,000. The facility matures on June 30, 2014 and accrues interest at a variable rate equal to the bank’s prime rate plus 250 basis points with a minimum interest rate of 4.500% per annum. At September 30, 2013, the interest rate was 5.250%. Principal borrowings may be prepaid at any time without penalty, and the facility is secured by substantially all of the Company’s assets. Borrowings under the facility are limited to a percentage of aggregate outstanding receivables that are due within 90 days. The facility contains customary affirmative and negative nonfinancial covenants and a net worth financial covenant. As of September 30, 2013 and December 31 2012, there were no amounts outstanding under the facility. There were no borrowings under the facility during the nine months ended September 30, 2013 and 2012. The Company was in compliance with its covenants under the line of credit facility at September 30, 2013. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Accounting Policies [Abstract] | ' |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
The Company is engaged in research and development contracts with the federal government to develop certain technology to be utilized by the US Department of Defense. The contracts are cost plus fixed fee contracts and revenue is recognized based on the extent of progress towards completion of the long term contract. | |
Revenues are recognized as costs are incurred and include estimated earned fees, or profit, calculated on the basis of the relationship between costs incurred and total estimated costs at completion. Under the terms of certain contracts, fixed fees are not recognized until the receipt of full payment has become unconditional, that is, when the product has been delivered and accepted by the federal government. Backlog represents the estimated amount of future revenues to be recognized under negotiated contracts as work is performed. The Company’s backlog primarily consists of future engineering services for the ADEPT Distance Support Sense Suite system and ADEPT units to be developed and delivered to the federal government. | |
Unbilled revenue reflects work performed, but not billed at the time, per contractual requirements. As of September 30, 2013 and December 31, 2012, the Company had unbilled revenues of $16,130 and $0, respectively, and are included in accounts receivable. Billings to customers in excess of revenue earned are classified as advanced billings, and shown as a liability. As of September 30, 2013 and December 31, 2012, the Company had no advanced billings. As of September 30, 2013, the Company had six ADEPT units remaining to be delivered under the Indefinite-Delivery, Indefinite-Quantity (“IDIQ”) agreement. During October 2013, the Company delivered four of these units, with the remaining two units expected to be delivered prior to the end of 2013. | |
Standard Product Warranty, Policy [Policy Text Block] | ' |
Warranty Expense | |
The Company provides a limited warranty, as defined by the related warranty agreements, for its production units. The Company’s warranties require the Company to repair or replace defective products during such warranty period. The Company estimates the costs that may be incurred under its warranty and records a liability in the amount of such costs at the time product revenue is recognized. Factors that affect the Company’s warranty liability include the number of units sold, expected and anticipated rates of warranty claims, and cost per claim. The Company periodically assesses the adequacy of its recorded warranty liability and adjusts the amount as necessary. The Company reversed warranty expense of $3,901 and $24,500 for the three months ended September 30, 2013 and 2012, respectively. The Company recognized warranty expense of $13,894 for the nine months ended September 30, 2013. For the nine months ended September 30, 2012, the Company reversed $32,400 of warranty expense. Since the inception of the IDIQ contract in March 2010, the Company has delivered 116 ADEPT units. As of September 30, 2013, there are 71 ADEPT units that remain under the limited warranty coverage. As of September 30, 2013 and December 31, 2012, the Company had an accrued warranty expense of $83,549 and $69,655, respectively. | |
Research, Development, and Computer Software, Policy [Policy Text Block] | ' |
Research and Development Costs | |
Research and Development expenditures for research and development of the Company's products are expensed when incurred, and are included in general and administrative expenses. The Company recognized research and development costs of $3,188 and $21,809 for the three months ended September 30, 2013 and 2012, respectively, and $78,672 and $49,547 for the nine months ended September 30, 2013 and 2012, respectively. |
Note_4_Income_Loss_Per_Share_T
Note 4 - Income (Loss) Per Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Basic earnings per common share: | |||||||||||||||||
Net (loss) income | $ | (109,628 | ) | $ | 118,484 | $ | (310,440 | ) | $ | 12,751 | |||||||
Portion allocable to common stockholders | 100 | % | 99.2 | % | 100 | % | 99.2 | % | |||||||||
Net (loss) income allocable to common stockholders | (109,628 | ) | 117,536 | (310,440 | ) | 12,649 | |||||||||||
Weighted average basic common shares outstanding | 31,840,970 | 31,782,786 | 31,830,881 | 31,772,136 | |||||||||||||
Basic (loss) income per common share | $ | - | $ | - | $ | (0.01 | ) | $ | - | ||||||||
Dilutive earnings per common share: | |||||||||||||||||
Net (loss) income allocable to common stockholders | (109,628 | ) | 117,536 | (310,440 | ) | 12,649 | |||||||||||
Add: undistributed earnings allocated to participating securities | - | 948 | - | 102 | |||||||||||||
Numerator for diluted earnings per common share | (109,628 | ) | 118,484 | (310,440 | ) | 12,751 | |||||||||||
Weighted average shares outstanding - basic | 31,840,970 | 31,782,786 | 31,830,881 | 31,772,136 | |||||||||||||
Diluted effect: | |||||||||||||||||
Stock options | - | - | - | - | |||||||||||||
Restricted stock awards | - | - | - | - | |||||||||||||
Conversion equivalent of dilutive Series B Convertible Preferred Stock | - | 3,307,299 | - | 3,307,299 | |||||||||||||
Conversion equivalent of dilutive Convertible Preferred Stock | - | 255,000 | - | 255,000 | |||||||||||||
Weighted average dilutive common shares outstanding | 31,840,970 | 35,345,085 | 31,830,881 | 35,334,435 | |||||||||||||
Dilutive (loss) income per common share | $ | - | $ | - | $ | (0.01 | ) | $ | - | ||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
Stock options | 645,000 | 690,000 | 645,000 | 690,000 | |||||||||||||
Restricted stock awards | 103,000 | 186,000 | 103,000 | 186,000 | |||||||||||||
Convertible preferred stock | 3,562,299 | - | 3,562,299 | - | |||||||||||||
Total | 4,310,299 | 876,000 | 4,310,299 | 876,000 |
Note_1_Basis_Of_Presentation_D
Note 1 - Basis Of Presentation (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Disclosure Text Block [Abstract] | ' | ' | ' | ' |
Share-based Compensation (in Dollars) | ' | ' | $10,220 | ' |
Net Income (Loss) Attributable to Parent | ($109,628) | $118,484 | ($310,440) | $12,751 |
Note_3_Significant_Accounting_1
Note 3 - Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Note 3 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' |
Unbilled Contracts Receivable | $16,130 | ' | $16,130 | ' | $0 |
Customer Advances, Current | 0 | ' | 0 | ' | 0 |
Product Warranty Expense | 3,901 | 24,500 | 13,894 | 32,400 | ' |
Other Accrued Liabilities, Current | 83,549 | ' | 83,549 | ' | 69,655 |
General and Administrative Expense | 236,030 | 251,712 | 784,426 | 854,100 | ' |
Research and Development Costs [Member] | ' | ' | ' | ' | ' |
Note 3 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' |
General and Administrative Expense | $3,188 | $21,809 | $78,672 | $49,547 | ' |
Note_4_Income_Loss_Per_Share_D
Note 4 - Income (Loss) Per Share (Details) - Weighted Average Shares Outstanding (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Note 4 - Income (Loss) Per Share (Details) - Weighted Average Shares Outstanding [Line Items] | ' | ' | ' | ' |
Net (loss) income (in Dollars) | ($109,628) | $118,484 | ($310,440) | $12,751 |
Portion allocable to common stockholders | 100.00% | 99.20% | 100.00% | 99.20% |
Net (loss) income allocable to common stockholders (in Dollars) | -109,628 | 117,536 | -310,440 | 12,649 |
Add: undistributed earnings allocated to participating securities (in Dollars) | ' | 948 | ' | 102 |
Numerator for diluted earnings per common share (in Dollars) | ($109,628) | $118,484 | ($310,440) | $12,751 |
Weighted average shares outstanding - basic | 31,840,970 | 31,782,786 | 31,830,881 | 31,772,156 |
Weighted average dilutive common shares outstanding | 31,840,970 | 35,345,085 | 31,830,881 | 35,334,435 |
Dilutive (loss) income per common share (in Dollars per share) | ' | ' | ($0.01) | ' |
Basic (loss) income per common share (in Dollars per share) | ' | ' | ($0.01) | ' |
Employee Stock Option [Member] | ' | ' | ' | ' |
Note 4 - Income (Loss) Per Share (Details) - Weighted Average Shares Outstanding [Line Items] | ' | ' | ' | ' |
Diluted effect - stock option and restricted stock | 0 | 0 | 0 | 0 |
Restricted Stock [Member] | ' | ' | ' | ' |
Note 4 - Income (Loss) Per Share (Details) - Weighted Average Shares Outstanding [Line Items] | ' | ' | ' | ' |
Diluted effect - stock option and restricted stock | 0 | 0 | 0 | 0 |
Preferred Stock Series B Convertible [Member} | ' | ' | ' | ' |
Note 4 - Income (Loss) Per Share (Details) - Weighted Average Shares Outstanding [Line Items] | ' | ' | ' | ' |
Diluted effect - conversion of preferred stock | ' | 3,307,299 | ' | 3,307,299 |
Convertible Preferred Stock [Member] | ' | ' | ' | ' |
Note 4 - Income (Loss) Per Share (Details) - Weighted Average Shares Outstanding [Line Items] | ' | ' | ' | ' |
Diluted effect - conversion of preferred stock | ' | 255,000 | ' | 255,000 |
Note_4_Income_Loss_Per_Share_D1
Note 4 - Income (Loss) Per Share (Details) - Antidilutive Shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive shares | 4,310,299 | 876,000 | 4,310,299 | 876,000 |
Stock Compensation Plan [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive shares | 645,000 | 690,000 | 645,000 | 690,000 |
Restricted Stock [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive shares | 103,000 | 186,000 | 103,000 | 186,000 |
Convertible Debt Securities [Member] | ' | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive shares | 3,562,299 | ' | 3,562,299 | ' |
Note_5_Income_Tax_Matters_Deta
Note 5 - Income Tax Matters (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Increase (Decrease) in Deferred Income Taxes | $30,600 | $81,000 |
Note_6_ShareBased_Compensation1
Note 6 - Share-Based Compensation (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |
Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Employee Stock Option [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | 2007 Stock Incentive Option Plan [Member] | 2007 Stock Incentive Option Plan [Member] | |||
Note 6 - Share-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share) | $0.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 66.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '6 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation (in Dollars) | $10,220 | ' | $2,140 | $7,837 | $6,603 | $27,458 | $1,206 | $1,328 | $3,616 | $3,946 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 645,000 | 645,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | ' | ' | ' | ' | ' | ' | 103,000 | 245,000 | 103,000 | 245,000 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | ' | ' | ' | ' | ' | ' | 27,000 | ' | 27,000 | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | $14,746 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_7_Related_Party_Transacti1
Note 7 - Related Party Transactions (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Ocean Power Technologies, Inc. [Member] | ' | ' | ' | ' |
Note 7 - Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $0 | $12,731 | $31,025 | $31,588 |
Board of Directors Chairman [Member] | ' | ' | ' | ' |
Note 7 - Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $0 | $91,703 | $70,670 | $91,703 |
Note_8_Commitments_and_Conting1
Note 8 - Commitments and Contingencies (Details) (USD $) | 3 Months Ended | ||
Jun. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $500,000 | ' | ' |
Debt Instrument, Basis Spread on Variable Rate (in Basis Points) | 2.50% | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 4.50% | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | ' | 5.25% | ' |
Line of Credit Facility, Amount Outstanding | ' | $0 | $0 |