Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Mar. 27, 2014 | Jun. 28, 2013 | |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'MIKROS SYSTEMS CORP | ' | ' |
Document Type | '10-K | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 32,011,753 | ' |
Entity Public Float | ' | ' | $2,153,536 |
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 | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current assets: | ' | ' |
Cash and cash equivalents | $1,028,146 | $887,140 |
Receivables on government contracts | 419,440 | 1,162,423 |
Prepaid expenses and other current assets | 69,058 | 31,888 |
Total current assets | 1,516,644 | 2,081,451 |
Property and equipment | ' | ' |
Equipment | 45,157 | 40,416 |
Furniture & fixtures | 9,264 | 9,264 |
Less: accumulated depreciation | -47,697 | -42,038 |
Property and equipment, net | 6,724 | 7,642 |
Patents and trademarks | 1,383 | 1,383 |
Less: accumulated amortization | -1,035 | -897 |
Intangible assets, net | 348 | 486 |
Deferred tax assets | 82,000 | 23,000 |
Total assets | 1,605,716 | 2,112,579 |
Liabilities and shareholders' equity | ' | ' |
Accrued payroll and payroll taxes | 165,543 | 273,089 |
Accounts payable and accrued expenses | 131,072 | 359,029 |
Accrued warranty expense | 35,190 | 69,655 |
Total current liabilities | 331,805 | 701,773 |
Long-term liabilities | 12,476 | 15,456 |
Total liabilities | 344,281 | 717,229 |
Commitments and contingencies (Note 8) | ' | ' |
Shareholders' equity | ' | ' |
Total shareholders' equity | 1,180,985 | 1,314,900 |
Total liabilities and shareholders' equity | 1,605,716 | 2,112,579 |
Redeemable Preferred Stock [Member] | ' | ' |
Liabilities and shareholders' equity | ' | ' |
Preferred stock value | 80,450 | 80,450 |
Series B Preferred Stock [Member] | ' | ' |
Liabilities and shareholders' equity | ' | ' |
Preferred stock value | 11,024 | 11,024 |
Common stock, par value $.01 per share, authorized 60,000,000 shares, issued and outstanding 32,011,753 shares at December 31, 2013 and 2012 | 320,118 | 320,118 |
Capital in excess of par value | 11,620,487 | 11,606,920 |
Accumulated deficit | -10,780,094 | -10,632,612 |
Convertible Preferred Stock [Member] | ' | ' |
Liabilities and shareholders' equity | ' | ' |
Preferred stock value | 2,550 | 2,550 |
Series D Preferred Stock [Member] | ' | ' |
Liabilities and shareholders' equity | ' | ' |
Preferred stock value | $6,900 | $6,900 |
Balance_Sheets_Parentheticals
Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Redeemable Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 150,000 | 150,000 |
Preferred stock, shares issued | 5,000 | 5,000 |
Preferred stock, shares outstanding | 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 | 1,200,000 | 1,200,000 |
Preferred stock, shares issued | 1,102,433 | 1,102,433 |
Preferred stock, shares outstanding | 1,102,433 | 1,102,433 |
Preferred stock, involuntary liquidation value (in Dollars) | 1,102,433 | 1,102,433 |
Common stock par value (in Dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 32,011,753 | 32,011,753 |
Common stock, shares outstanding | 32,011,753 | 32,011,753 |
Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, par value (in Dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 255,000 | 255,000 |
Preferred stock, shares outstanding | 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 | 690,000 | 690,000 |
Preferred stock, shares issued | 690,000 | 690,000 |
Preferred stock, shares outstanding | 690,000 | 690,000 |
Preferred stock, involuntary liquidation value (in Dollars) | $1,518,000 | $1,518,000 |
Statements_of_Operations_and_C
Statements of Operations and Comprehensive Income (Loss) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Contract revenues | $3,050,126 | $4,825,068 |
Cost of sales | 1,422,135 | 2,690,510 |
Gross margin | 1,627,991 | 2,134,558 |
Expenses: | ' | ' |
Engineering | 81,598 | 59,245 |
General and administrative | 1,017,058 | 1,133,788 |
Total expenses | 1,833,097 | 1,880,872 |
Income (loss) from operations | -205,106 | 253,686 |
Other income: | ' | ' |
Interest | 17 | 98 |
Net income (loss) before income taxes | -205,089 | 253,784 |
Income tax expense (benefit) | -57,607 | 26,675 |
Net income (loss) and comprehensive income (loss) | -147,482 | 227,109 |
Basic income (loss) per common share (in Dollars per share) | ' | $0.01 |
Basic weighted average number of shares outstanding (in Shares) | 31,843,704 | 31,872,617 |
Diluted income (loss) per common share (in Dollars per share) | ' | $0.01 |
Diluted weighted average number of shares outstanding (in Shares) | 31,843,704 | 35,620,916 |
Engineering [Member] | ' | ' |
Expenses: | ' | ' |
Engineering | $816,039 | $747,084 |
Statements_of_Shareholders_Equ
Statements of Shareholders’ Equity (USD $) | Series B Preferred Stock [Member] | Convertible Preferred Stock [Member] | Series D Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance, amount at Dec. 31, 2011 | $11,024 | $2,550 | $6,900 | $320,168 | $11,575,436 | ($10,859,721) | $1,056,357 |
Balance, shares (in Shares) at Dec. 31, 2011 | 1,102,433 | 255,000 | 690,000 | 32,016,753 | ' | ' | ' |
Stock Compensation | ' | ' | ' | ' | 31,434 | ' | 31,434 |
Forfeiture of common stock | ' | ' | ' | -50 | 50 | ' | ' |
Forfeiture of common stock (in Shares) | ' | ' | ' | -5,000 | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | 227,109 | 227,109 |
Balance, amount at Dec. 31, 2012 | 11,024 | 2,550 | 6,900 | 320,118 | 11,606,920 | -10,632,612 | 1,314,900 |
Balance, shares (in Shares) at Dec. 31, 2012 | 1,102,433 | 255,000 | 690,000 | 32,011,753 | ' | ' | ' |
Stock Compensation | ' | ' | ' | ' | 13,567 | ' | 13,567 |
Net income | ' | ' | ' | ' | ' | -147,482 | -147,482 |
Balance, amount at Dec. 31, 2013 | $11,024 | $2,550 | $6,900 | $320,118 | $11,620,487 | ($10,780,094) | $1,180,985 |
Balance, shares (in Shares) at Dec. 31, 2013 | 1,102,433 | 255,000 | 690,000 | 32,011,753 | ' | ' | ' |
Statements_of_Cash_Flows
Statements of Cash Flows (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flow from operating activities: | ' | ' |
Net (loss) income | ($147,482) | $227,109 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ' | ' |
Depreciation and amortization | 5,798 | 9,993 |
Deferred tax (benefit) expense | -59,000 | -2,000 |
Share-based compensation expense | 13,567 | 31,434 |
Net changes in assets and liabilities | ' | ' |
Decrease in receivables on government contracts | 742,983 | 315,680 |
Increase in prepaid expenses and other current assets | -37,170 | -1,042 |
Decrease in accrued payroll and payroll taxes | -107,546 | -91,059 |
Decrease in accounts payable and accrued expenses | -227,957 | -545,188 |
Decrease in accrued warranty expense | -34,465 | -16,745 |
Decrease increase in long-term liabilities | -2,980 | -1,252 |
Net cash provided by (used in) operating activities | 145,748 | -73,070 |
Cash flow from investing activities: | ' | ' |
Purchase of property and equipment | -4,742 | -3,346 |
Net cash used in investing activities | -4,742 | -3,346 |
Net increase (decrease) in cash and cash equivalents | 141,006 | -76,416 |
Cash and cash equivalents, beginning of period | 887,140 | 963,556 |
Cash and cash equivalents, end of period | 1,028,146 | 887,140 |
Supplemental cash flows information: | ' | ' |
Cash paid during the period for income taxes | $10,069 | $31,000 |
Note_1_The_Company
Note 1 - The Company | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
Note 1 – The Company | |
Mikros Systems Corporation (the “Company”) is an advanced technology company specializing in the research and development of electronic systems technology primarily for military applications. Classified by the U.S. Department of Defense (“DoD”) as a small business, the Company’s capabilities include technology management, electronic systems engineering and integration, radar systems engineering, combat/command, control, communications, computers and intelligence (“C4I”) systems engineering, and communications engineering. | |
The Company’s primary business focus is to pursue U.S. Small Business Innovation Research (“SBIR”) programs from the DoD, Department of Homeland Security, and other governmental authorities, and to expand this government funded research and development into products, services, and business areas of the Company. Since 2002, the Company has been awarded several Phase I, II, and III SBIR contracts. |
Note_2_Significant_Accounting_
Note 2 - Significant Accounting Policies | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||
Note 2 – Significant Accounting Policies | |||||||||
Use of Estimates | |||||||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||||||
Cash and cash equivalents | |||||||||
Cash balances consist of funds that are immediately available to the Company and are held by financial institutions. For purposes of the cash flow statements, the Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. | |||||||||
Concentrations of credit risk | |||||||||
Substantially all of the Company’s revenue is derived from Small Business Innovation Research (“SBIR”) and Indefinite-Delivery, Indefinite-Quantity (“IDIQ”) contracts for the Federal government. Approximately 98% and 96% of revenues in 2013 and 2012, respectively, were realized in connection with task orders issued under the IDIQ contract with the Naval Surface Warfare Center to deliver ADEPT units. Although the Company’s operations are not subject to any particular government approval or regulations, the Company is dependent upon funding being made available to the DoD in amounts sufficient to cover the SBIR grants and other DoD contracts for which the Company competes. | |||||||||
Financial instruments that subject the Company to credit risk consist of cash and cash equivalents and accounts receivable. | |||||||||
The Company's policy is to limit the amount of credit exposure to any one financial institution, and place investments with financial institutions evaluated as being creditworthy, or in short-term money market funds which are exposed to minimal interest rate and credit risk. The Company maintains its cash primarily in investment accounts within large financial institutions. The Federal Deposit Insurance Corporation (“FDIC”) insures these balances up to $250,000 per bank. At times, the Company’s cash and cash equivalent balances may exceed the FDIC insured limits. The Company has not experienced any losses on its bank deposits and management believes these deposits do not expose the Company to any significant credit risk. | |||||||||
Receivables on government contracts are stated at outstanding balances, less an allowance for doubtful accounts, if necessary. The allowance for doubtful accounts is established through provisions charged against operations. Receivables deemed to be uncollectible are charged against the allowance and subsequent recoveries, if any, are credited to the allowance. | |||||||||
The allowance for doubtful accounts is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on past experience, aging of the receivables, adverse situations that may affect a customers’ ability to pay, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires estimates that may be susceptible to significant change. Unpaid balances remaining after the stated payment terms are considered past due. All of our business is conducted with the Federal government in which nonpayment for awarded contracts is unlikely. No allowance for doubtful accounts was deemed necessary by management at December 31, 2013 and 2012, respectively. | |||||||||
Property and Equipment | |||||||||
Equipment is stated at cost. Depreciation is computed using the straight-line method based on estimated useful lives of three years. Depreciation expense amounted to $4,336 and $5,548 for the years ended December 31, 2013 and 2012, respectively, and is included in engineering expense. | |||||||||
Furniture and fixtures are stated at cost. Depreciation expense is computed using the straight-line method based on estimated useful lives of seven years. Depreciation expense amounted to $1,323 for each of the years ended December 31, 2013 and 2012, and is included in engineering expense. | |||||||||
Patents and Trademarks | |||||||||
The Company has developed and continues to develop intellectual property (technology and data) under SBIR and other contracts. The request for a trademark for the product name “ADEPT” has been approved by the U.S. Patent and Trademark Office, and ADEPT® is now a registered trademark of the Company. | |||||||||
Under SBIR data rights, the Company is protected from unauthorized use of SBIR-developed technology and data for a period of five years after acceptance of all items to be delivered under a particular SBIR contract or any follow-on contract. | |||||||||
During the year ended December 31, 2012, the Company discontinued the use of certain technology and related patents. The Company removed the historical carrying value of these patents of $4,000 from its balance sheet as of December 31, 2012 and immediately recognized $2,933 of unamortized balance as amortization expense for the year ended December 31, 2012. | |||||||||
For each of the years ended December 31, 2013 and 2012, amortization expense amounted to $139 and $3,122, respectively, which related to the cost of the patents and trademarks. These costs are being amortized over their 10 year legal lives. Amortization expense for 2014 through 2015 will be $138 per year and $72 in 2016. | |||||||||
Impairment of long-lived assets | |||||||||
The Company assesses the potential impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An asset's value is impaired if management's estimate of the aggregate future cash flows, undiscounted and without interest charges, to be generated by the asset are less than the carrying value of the asset. Such cash flows consider factors such as expected future operating income and historical trends, as well as the effects of demand and competition. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the asset over the estimated fair value of the asset. Such estimates require the use of judgment and numerous subjective assumptions, which, if actual experience varies, could result in material differences in the requirements for impairment charges. There were no impairments of long-lived assets in 2013 or 2012. | |||||||||
Revenue Recognition | |||||||||
The Company is a party to 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 on the basis of such measurement of partial performance as will reflect reasonably assured realization or delivery of completed articles. Fees earned under the Company’s contracts may also be accrued as they are billable, under the terms of the agreements, unless such accrual is not reasonably related to the proportionate performance of the total work or services to be performed by the Company from inception to 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 includes future 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 December 31, 2013 and 2012, the Company had unbilled revenues of $16,130 and $0, respectively and is recorded within receivables on government contracts in the Company’s balance sheet. Billings to customers in excess of revenue earned are classified as advanced billings, and shown as a liability. As of December 31, 2013 and 2012, the Company had no advanced billings. Under the IDIQ agreement, the Company delivered 41 units during the year ended December 31, 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, which is 12 months following delivery and acceptance of production units by the government. 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 had a net warranty recovery, which is a component of the Company’s cost of sales of $15,500 and $7,900 for the years ended December 31, 2013 and 2012, respectively. Since the inception of the IDIQ contract in March 2010, the Company has delivered 122 ADEPT units. As of December 31, 2013, there are 41 ADEPT units that remain under the limited warranty coverage. The Company had an accrued warranty expense liability of $35,190 and $69,655 at December 31, 2013 and 2012, respectively. | |||||||||
The following table reflects the reserve for product warranty activity for the years ended December 31: | |||||||||
2013 | 2012 | ||||||||
Reserve for product warranty, beginning of period | $ | 69,655 | $ | 86,400 | |||||
Provision for product warranty | 42,300 | 24,500 | |||||||
Product warranty expirations | (57,800 | ) | (32,400 | ) | |||||
Product warranty costs paid | (18,965 | ) | (8,845 | ) | |||||
Reserve for product warranty, end of period | $ | 35,190 | $ | 69,655 | |||||
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 $81,598 and $59,245 for the years ended December 31, 2013 and 2012, respectively. | |||||||||
Share-based Compensation | |||||||||
The Company records compensation expense associated with stock options and other forms of equity compensation based on the estimated fair value at the grant-date. During 2013, the Company issued 35,000 stock options. There were no equity compensation awards issued for the year ended December 31, 2012. The Company uses the Black-Scholes-Merton (“BSM”) option-pricing model to determine the fair value of share-based awards. Expected volatility is based on historical volatility of the Company's common stock. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||
The expected term is estimated consistent with the simplified method, as identified in ASC 718. In December 2007, the Securities and Exchange Commission (“SEC”) issued guidance that allows companies, in certain circumstances, to utilize a simplified method in determining the expected term of stock option grants when calculating the compensation expense to be recorded under GAAP, for employee stock options. The simplified method can be used after December 31, 2007 only if a company's stock option exercise experience does not provide a reasonable basis upon which to estimate the expected option term. Through 2007, the Company used the simplified method to determine the expected option term, based upon the vesting and original contractual terms of the option. The Company has continued to use the simplified method to determine the expected option term since the Company’s stock option exercise experience does not provide a reasonable basis upon which to estimate the expected option term. | |||||||||
The fair values of options are amortized over the vesting period of the awards utilizing a straight-line method. The Company used the following assumptions to calculate compensation expense: | |||||||||
2013 | |||||||||
5 year options | |||||||||
Expected Life | 6.5 | ||||||||
Expected volatility | 123.3 | % | |||||||
Risk-free interest rate | 0.75 | % | |||||||
Income Taxes | |||||||||
The Company accounts for income taxes under a liability method. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, and are measured at the prevailing enacted tax rates that will be in effect when these differences are settled or realized. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The deferred tax assets will be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. | |||||||||
The Company adopted a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. No significant income tax uncertainties were identified. Therefore, the Company recognized no adjustment for unrecognized tax benefits for the years ended December 31, 2013 and 2012. | |||||||||
The Company has determined that any future interest accrued, related to unrecognized tax benefits, will be included in interest expense. In the event the Company must accrue for penalties, such penalties will be included as an operating expense. | |||||||||
Earnings (loss) per share | |||||||||
Basic earnings (loss) per share ("EPS") is calculated by dividing net earnings (loss) allocable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the assumed exercise or conversion of all dilutive securities, using the treasury stock method for options and if-converted method for convertible preferred securities. Potentially dilutive securities include employee stock options, Series B Preferred Stock, and Convertible Preferred Stock (see “Note 3. Redeemable Series C Preferred Stock and Shareholders’ Equity" below for information about the Series B Preferred Stock and Convertible Preferred Stock). | |||||||||
In June 2008, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position ("FSP") Emerging Issues Task Force ("EITF") 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities" (ASC 260-10-45). ASC 260-10-45 clarified that all outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends participate in undistributed earnings with common shareholders. Shares of the Company's Convertible Preferred Stock are considered participating securities since they contain a non-forfeitable right to dividends and distributions with common shareholders. ASC 260-10-45 requires that the two-class method of computing basic EPS be applied. Under the two-class method, the Company's stock options are not considered to be participating securities. Dividends on common stock were not declared in 2013 or 2012. | |||||||||
Recently Issued Accounting Standards | |||||||||
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_Redeemable_Series_C_Pre
Note 3 - Redeemable Series C Preferred Stock and Shareholders' Equity | 12 Months Ended |
Dec. 31, 2013 | |
Stockholders' Equity Note [Abstract] | ' |
Stockholders' Equity Note Disclosure [Text Block] | ' |
Note 3 – Redeemable Series C Preferred Stock and Shareholders’ Equity | |
Redeemable Series C Preferred Stock | |
The Redeemable Series C Preferred Stock is not convertible into any other class of the Company’s stock and is subject to redemption at the Company’s option at any time if certain events occur, such as capital reorganizations, consolidations, mergers, or sale of all or substantially all of the Company’s assets. Each share is entitled to cast one vote on all matters to be voted on by the Company’s shareholders. Upon any liquidation, dissolution or winding up of the Company, each holder of Redeemable Series C Preferred Stock will be entitled to be paid, before any distribution or payment is made upon any other class of stock of the Company, an amount in cash equal to the redemption price for each share of Redeemable Series C Preferred Stock held by such holder, and the holders of Redeemable Series C Preferred Stock will not be entitled to any further payment. The redemption price is $16.09 per share. The Redeemable Series C Preferred Stock stock is subject to redemption under certain “deemed liquidation” events, as defined, and as such, the convertible preferred stock is considered contingently redeemable for accounting purposes. Accordingly, the convertible preferred stock has been recorded within temporary equity in the Company’s financial statements. | |
Series B Convertible Preferred Stock | |
Each share of Series B Preferred Stock is convertible into three shares of the Company’s common stock at a price of $.33 per common share to be paid upon conversion and entitles the holder thereof to cast three votes on all matters to be voted on by the Company’s shareholders. Upon any liquidation, dissolution, or winding up of the Company, each holder of Series B Preferred Stock will be entitled to be paid, after all distributions of payments are made upon redemption of the Series C Preferred Stock an amount in cash equal to $1.00 for each share of Series B Preferred Stock held, and such holders will not be entitled to any further payment. | |
Convertible Preferred Stock | |
Each share of Convertible Preferred Stock is entitled to dividends when, as and if declared by the Board of Directors of the Company. In the event any dividend is payable to holders of the Company’s common stock, each share is entitled to receive a dividend equal to the amount of such common stock dividend multiplied by the number of shares of common stock into which each share of Convertible Preferred Stock may be converted. Shares of Convertible Preferred Stock can be redeemed in whole, but not in part, at the Company’s option for $1.00 per share. Holders of Convertible Preferred Stock are entitled to cast one vote per share on all matters to be voted upon by the Company’s shareholders. Each share of Convertible Preferred Stock is convertible at any time into one share of common stock at a conversion price of $1.00 per share, subject to adjustment in certain circumstances. The convertible preferred stock has the nonforfeitable right to participate equally in dividends and distributions with the holders of the common stock. Upon any liquidation, dissolution or winding up of the Company, each holder will be entitled to be paid, after holders of Redeemable Series C Preferred Stock and Series B Preferred Stock have been paid in full, an amount in cash equal to $1.00 per share. | |
Series D Preferred Stock | |
The Series D Preferred Stock provided for an annual cumulative dividend of $.10 per share and entitles the holder thereof to cast one vote on all matters to be voted on by the Company’s shareholders. The shares are not convertible into any other class of stock and are subject to redemption at the Company’s option at any time at a redemption price of $1.00 per share plus all unpaid cumulative dividends. Upon liquidation, dissolution or winding up of the Corporation, each holder of Series D Preferred Stock will be entitled to be paid, after all distributions or payments are made upon the Corporation’s Convertible Preferred Stock, Series B Preferred Stock, and Redeemable Series C Preferred Stock, an amount in cash equal to the redemption price, as defined, for each share of Series D Preferred Stock held by such holder. The holders of Series D Preferred Stock will not be entitled to any further payment. | |
Effective January 1, 2006, the holders of the shares of Series D Preferred Stock agreed to waive the future accumulation of dividends. As of December 31, 2005, there were dividends in arrears on the Series D Preferred Stock of $828,000. Such waiver does not affect dividends accrued through December 31, 2005. Accordingly, $828,000 of such undeclared dividends in arrears remain outstanding at December 31, 2013 and are included in the liquidation value of $1,518,000. |
Note_4_Income_Taxes
Note 4 - Income Taxes | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||
Note 4 – Income Taxes | |||||||||
The income tax provision is comprised of the following for the years ended December 31: | |||||||||
2013 | 2012 | ||||||||
Current state tax expense | $ | 1,393 | $ | 28,675 | |||||
Deferred federal tax expense (benefit) | (59,000 | ) | (2,000 | ) | |||||
Income tax expense (benefit) | $ | (57,607 | ) | $ | 26,675 | ||||
The reconciliation between the statutory federal income tax rate and the Company’s effective tax rate is as follows: | |||||||||
2013 | 2012 | ||||||||
Federal statutory rate | 34 | % | 34 | % | |||||
State taxes | (0.5 | ) | 7.4 | ||||||
Nondeductible/Nontaxable Items | (8.3 | ) | 7 | ||||||
Change in federal valuation allowance asset | 2.9 | (37.9 | ) | ||||||
Effective tax rate | 28.1 | % | 10.5 | % | |||||
Total available net operating loss carry forwards at December 31, 2013 are reflected in the following schedule: | |||||||||
Year of Expiration | Available for Federal Tax Purposes | ||||||||
2019 | $ | 306,757 | |||||||
2021 | 76,872 | ||||||||
2022 | 40,330 | ||||||||
2023 | 106,651 | ||||||||
2033 | 183,310 | ||||||||
$ | 713,920 | ||||||||
During 2013, the Company generated federal net operating loss carryforwards of approximately $180,000. The Company’s valuation allowance associated with the related deferred tax assets was increased by approximately $7,000 in 2013 and decreased by approximately $109,000 in 2012. The change in our valuation allowance for 2013 and 2012 was attributable to the expected profitability on contracts being fulfilled as of the end of each period. | |||||||||
Deferred tax assets consist of the following as of December 31: | |||||||||
2013 | 2012 | ||||||||
Deferred tax asset: | |||||||||
Fixed assets and other | $ | 108,137 | $ | 122,148 | |||||
Net operating loss carryforwards | 252,878 | 180,407 | |||||||
Research and development credit | 12,041 | 4,802 | |||||||
Valuation allowance | (291,056 | ) | (284,357 | ) | |||||
Net deferred tax asset | $ | 82,000 | $ | 23,000 | |||||
In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers both positive and negative evidence in making this assessment, including the future reversal of existing temporary taxable differences, projected future taxable income, the recent expiration of unused net operating losses and tax planning strategies. Due to the Company’s inability to project future taxable income over the periods in which the deferred tax assets may become deductible, management does not believe it is more likely than not that the Company will realize the entire benefit of its deferred tax assets. As a result, management believes the maintenance of a valuation allowance is required at December 31, 2013 against that portion of the Company’s net deferred tax asset that may not be realized. | |||||||||
The Company continues to analyze its income tax positions and no significant income tax uncertainties were identified in 2013 and 2012. Therefore, the Company recognized no adjustment for unrecognized tax benefits for the years ended December 31, 2013 and 2012. The Company is not currently under examination by the Internal Revenue Service. The United States federal statute of limitations remains open for the years 2010 onward. State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The state impact of any federal changes remains subject to examination by various states for a period of up to one year after formal notification to the states. The Company is not currently under examination in any state jurisdictions. The Company is no longer subject to federal or state income tax assessments for years prior to 2007. |
Note_5_ShareBased_Compensation
Note 5 - Share-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||
Note 5 – Share-Based Compensation | |||||||||||||
2007 Stock Incentive Option Plan | |||||||||||||
In October 2007, March 2008 and July 2009, the Company issued options to purchase 420,000, 10,000 and 345,000 shares, respectively, of the Company’s common stock under the Company’s 2007 Stock Incentive Plan. The options vest over a five year period and are exercisable at $0.20 to $0.62 per share, the last sales price of the Company’s common stock as reported on the OTCBB on the date of grant. There were 35,000 shares issued during the year ended December 31, 2013. No shares were issued during 2012. A summary of the status of the Company’s 2007 Stock Incentive Plan as of December 31, 2013 and 2012 is presented below. | |||||||||||||
2013 | |||||||||||||
Options | Weighted Exercise Price | Weighted Life (in years) | |||||||||||
Options outstanding - beginning of year | 690,000 | $ | 0.39 | 5.61 | |||||||||
Granted | 35,000 | 0.05 | |||||||||||
Exercised | - | - | |||||||||||
Forfeited / Cancelled | (80,000 | ) | 0.37 | ||||||||||
Options outstanding - end of year | 645,000 | $ | 0.38 | 4.79 | |||||||||
Options exercisable - December 31, 2013 | 605,000 | $ | 0.39 | 4.56 | |||||||||
2012 | |||||||||||||
Options | Weighted Exercise Price | Weighted Life (in years) | |||||||||||
Options outstanding - beginning of year | 690,000 | $ | 0.39 | 6.6 | |||||||||
Granted | - | - | |||||||||||
Exercised | - | - | |||||||||||
Forfeited / Cancelled | - | - | |||||||||||
Options outstanding - end of year | 690,000 | $ | 0.39 | 5.61 | |||||||||
Options exercisable - December 31, 2012 | 588,000 | $ | 0.42 | 5.46 | |||||||||
The aggregate intrinsic value of options outstanding at December 31, 2013 and 2012 under the 2007 Stock Incentive Plan was $1,750 and $0, respectively. | |||||||||||||
The aggregate intrinsic value of stock options above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the options) that would have been received by the option holders had they exercised their options on December 31, 2013 and 2012. The aggregate intrinsic value of stock options changes based on the changes in the market value of the Company’s common stock. The fair value (present value of the estimated future benefit to the option holder) of each option grant is estimated on the date of the grant using the Black-Scholes Merton option pricing model. | |||||||||||||
There were a total of 40,000 and 102,000 unvested options at December 31, 2013 and 2012, respectively. The total fair value of unvested options as of December 31, 2013 and 2012 was approximately $1,300 and $19,140, respectively. For the year ended December 31, 2013 and 2012, the Company recognized share-based compensation expense of $9,552 and $26,159, respectively. As of December 31, 2013 and 2012, there was approximately $4,181 and $15,839, respectively, of unamortized stock option compensation expense. | |||||||||||||
Restricted Stock | |||||||||||||
The Company did not grant any restricted stock awards during 2013 or 2012. During 2013 and 2012 there were restricted shares forfeitures of 27,000 and 5,000, respectively. There were 56,000 and 59,000 restricted shares that vested during 2013 and 2012, respectively. For the years ended December 31, 2013 and 2012, the Company recognized $4,015 and $5,275 of share-based compensation expense. As of December 31, 2013, there were 103,000 restricted stock awards outstanding and $6,328 of unrecognized share-based compensation expense that will be recognized in future periods. |
Note_6_Debt
Note 6 - Debt | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
Note 6 – Debt | |
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 December 31, 2013, the interest rate was 5.75%. 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 covenants and a net worth financial covenant. As of December 31, 2013 and the date of this report, the Company’s borrowing capacity under the facility was $403,310, there were no amounts outstanding, and the Company was in compliance with all covenants. |
Note_7_Earnings_Loss_Per_Share
Note 7 - Earnings (Loss) Per Share | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Earnings Per Share [Text Block] | ' | ||||||||
Note 7 – Earnings (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 earnings per share is as follows: | |||||||||
2013 | 2012 | ||||||||
Basic earnings (loss) per common share: | |||||||||
Net income (loss) applicable to common shareholders – basic | $ | (147,482 | ) | $ | 227,109 | ||||
Portion allocable to common shareholders | 100 | % | 99.2 | % | |||||
Net income (loss) allocable to common shareholders | (147,482 | ) | 225,292 | ||||||
Weighted average basic shares outstanding | 31,843,704 | 31,872,617 | |||||||
Basic earnings per share | $ | - | $ | 0.01 | |||||
Dilutive earnings (loss) per common share: | |||||||||
Net income (loss) allocable to common shareholders | (147,482 | ) | 225,292 | ||||||
Add: undistributed earnings allocated to participating securities | - | 1,817 | |||||||
Numerator for diluted earnings (loss) per common share | (147,482 | ) | 227,109 | ||||||
Weighted average basic shares outstanding | 31,843,704 | 31,872,617 | |||||||
Diluted effect: | |||||||||
Unvested restricted stock awards | - | 186,000 | |||||||
Conversion equivalent of dilutive Series B Convertible Preferred Stock | - | 3,307,299 | |||||||
Conversion equivalent of dilutive Convertible Preferred Stock | - | 255,000 | |||||||
Weighted average dilutive shares outstanding | 31,843,704 | 35,620,916 | |||||||
Dilutive earnings (loss) per share | $ | - | $ | 0.01 | |||||
The table below sets forth the calculation of the percentage of net earnings (loss) allocable to common shareholders under the two-class method: | |||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Weighted average participating common shares | 31,843,704 | 31,872,617 | |||||||
Denominator: | |||||||||
Weighted average participating common shares | 31,843,704 | 31,872,617 | |||||||
Add: Weighted average shares of Convertible Preferred Stock | - | 255,000 | |||||||
Weighted average participating shares | 31,843,704 | 32,127,617 | |||||||
Portion allocable to common shareholders | 100 | % | 99.2 | % | |||||
Diluted earnings(loss) per share for the years ended December 31, 2013 and 2012 do not reflect following potential common shares, as the effect would be antidilutive. | |||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Stock options | 645,000 | 690,000 | |||||||
Unvested restricted stock awards | 103,000 | - | |||||||
Convertible preferred stock | 3,562,299 | - | |||||||
Total | 4,310,299 | 690,000 | |||||||
Note_8_Commitments
Note 8 - Commitments | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Commitments and Contingencies Disclosure [Text Block] | ' | ||||
Note 8 - Commitments | |||||
The Company’s principal executive offices are located in Princeton, New Jersey. Monthly rent is $75. | |||||
The engineering research, design and development facility is located in Fort Washington, Pennsylvania where the Company leases general office space under a lease agreement that was renewed in December 2010 and terminates in February 2016. The rent under the initial year was approximately $51,421 with a 30% increase in the second year and 2% - 3% increases each year thereafter. Rent is being expensed on a straight-line basis over the term of the lease. | |||||
The Company also leases a facility in Largo, Florida which supports production of the ADEPT product line and quality assurance, field support, and life cycle management. In February 2014, the Company renewed the lease for a period of one year at a monthly rent of $2,143. | |||||
Total rent expense during 2013 and 2012 was $106,521 and $101,240, respectively. The Company has $154,135 in future obligations under non-cancellable operating leases that are due as follows: | |||||
2014 | 70,088 | ||||
2015 | 71,814 | ||||
2016 | 12,233 | ||||
$ | 154,135 | ||||
Note_9_Related_Party_Transacti
Note 9 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions Disclosure [Text Block] | ' |
Note 9 – Related Party Transactions | |
Ocean Power Technologies, Inc. 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 Ocean Power Technologies, Inc. through October 2012. For the year ended December 31, 2012, the Company incurred subcontractor expenses of $49,588. | |
Paul Casner, the Chairman of the Company’s Board of Directors, also serves as the executive chairman and CEO of Atair Aerospace Incorporation. During 2013 and 2012, Atair provided subcontracting services to the Company in designing the chassis component within the ADEPT units. The Company incurred subcontracting service costs from Atair of $77,935 and $188,197 during the years ended December 31, 2013 and 2012, respectively. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Accounting Policies [Abstract] | ' | ||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||
Use of Estimates | |||||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |||||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | ||||
Cash and cash equivalents | |||||
Cash balances consist of funds that are immediately available to the Company and are held by financial institutions. For purposes of the cash flow statements, the Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents | |||||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | ||||
Concentrations of credit risk | |||||
Substantially all of the Company’s revenue is derived from Small Business Innovation Research (“SBIR”) and Indefinite-Delivery, Indefinite-Quantity (“IDIQ”) contracts for the Federal government. Approximately 98% and 96% of revenues in 2013 and 2012, respectively, were realized in connection with task orders issued under the IDIQ contract with the Naval Surface Warfare Center to deliver ADEPT units. Although the Company’s operations are not subject to any particular government approval or regulations, the Company is dependent upon funding being made available to the DoD in amounts sufficient to cover the SBIR grants and other DoD contracts for which the Company competes. | |||||
Financial instruments that subject the Company to credit risk consist of cash and cash equivalents and accounts receivable. | |||||
The Company's policy is to limit the amount of credit exposure to any one financial institution, and place investments with financial institutions evaluated as being creditworthy, or in short-term money market funds which are exposed to minimal interest rate and credit risk. The Company maintains its cash primarily in investment accounts within large financial institutions. The Federal Deposit Insurance Corporation (“FDIC”) insures these balances up to $250,000 per bank. At times, the Company’s cash and cash equivalent balances may exceed the FDIC insured limits. The Company has not experienced any losses on its bank deposits and management believes these deposits do not expose the Company to any significant credit risk. | |||||
Receivables on government contracts are stated at outstanding balances, less an allowance for doubtful accounts, if necessary. The allowance for doubtful accounts is established through provisions charged against operations. Receivables deemed to be uncollectible are charged against the allowance and subsequent recoveries, if any, are credited to the allowance. | |||||
The allowance for doubtful accounts is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management’s periodic evaluation of the adequacy of the allowance is based on past experience, aging of the receivables, adverse situations that may affect a customers’ ability to pay, current economic conditions, and other relevant factors. This evaluation is inherently subjective as it requires estimates that may be susceptible to significant change. Unpaid balances remaining after the stated payment terms are considered past due. All of our business is conducted with the Federal government in which nonpayment for awarded contracts is unlikely. No allowance for doubtful accounts was deemed necessary by management at December 31, 2013 and 2012, respectively. | |||||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | ||||
Property and Equipment | |||||
Equipment is stated at cost. Depreciation is computed using the straight-line method based on estimated useful lives of three years. Depreciation expense amounted to $4,336 and $5,548 for the years ended December 31, 2013 and 2012, respectively, and is included in engineering expense. | |||||
Furniture and fixtures are stated at cost. Depreciation expense is computed using the straight-line method based on estimated useful lives of seven years. Depreciation expense amounted to $1,323 for each of the years ended December 31, 2013 and 2012, and is included in engineering expense. | |||||
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | ' | ||||
Patents and Trademarks | |||||
The Company has developed and continues to develop intellectual property (technology and data) under SBIR and other contracts. The request for a trademark for the product name “ADEPT” has been approved by the U.S. Patent and Trademark Office, and ADEPT® is now a registered trademark of the Company. | |||||
Under SBIR data rights, the Company is protected from unauthorized use of SBIR-developed technology and data for a period of five years after acceptance of all items to be delivered under a particular SBIR contract or any follow-on contract. | |||||
During the year ended December 31, 2012, the Company discontinued the use of certain technology and related patents. The Company removed the historical carrying value of these patents of $4,000 from its balance sheet as of December 31, 2012 and immediately recognized $2,933 of unamortized balance as amortization expense for the year ended December 31, 2012. | |||||
For each of the years ended December 31, 2013 and 2012, amortization expense amounted to $139 and $3,122, respectively, which related to the cost of the patents and trademarks. These costs are being amortized over their 10 year legal lives. Amortization expense for 2014 through 2015 will be $138 per year and $72 in 2016. | |||||
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' | ||||
Impairment of long-lived assets | |||||
The Company assesses the potential impairment of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. An asset's value is impaired if management's estimate of the aggregate future cash flows, undiscounted and without interest charges, to be generated by the asset are less than the carrying value of the asset. Such cash flows consider factors such as expected future operating income and historical trends, as well as the effects of demand and competition. To the extent impairment has occurred, the loss is measured as the excess of the carrying amount of the asset over the estimated fair value of the asset. Such estimates require the use of judgment and numerous subjective assumptions, which, if actual experience varies, could result in material differences in the requirements for impairment charges. There were no impairments of long-lived assets in 2013 or 2012. | |||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||
Revenue Recognition | |||||
The Company is a party to 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 on the basis of such measurement of partial performance as will reflect reasonably assured realization or delivery of completed articles. Fees earned under the Company’s contracts may also be accrued as they are billable, under the terms of the agreements, unless such accrual is not reasonably related to the proportionate performance of the total work or services to be performed by the Company from inception to 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 includes future 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 December 31, 2013 and 2012, the Company had unbilled revenues of $16,130 and $0, respectively and is recorded within receivables on government contracts in the Company’s balance sheet. Billings to customers in excess of revenue earned are classified as advanced billings, and shown as a liability. As of December 31, 2013 and 2012, the Company had no advanced billings. Under the IDIQ agreement, the Company delivered 41 units during the year ended December 31, 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, which is 12 months following delivery and acceptance of production units by the government. 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 had a net warranty recovery, which is a component of the Company’s cost of sales of $15,500 and $7,900 for the years ended December 31, 2013 and 2012, respectively. Since the inception of the IDIQ contract in March 2010, the Company has delivered 122 ADEPT units. As of December 31, 2013, there are 41 ADEPT units that remain under the limited warranty coverage. The Company had an accrued warranty expense liability of $35,190 and $69,655 at December 31, 2013 and 2012, respectively. | |||||
The following table reflects the reserve for product warranty activity for the years ended December 31: | |||||
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 $81,598 and $59,245 for the years ended December 31, 2013 and 2012, respectively. | |||||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | ||||
Share-based Compensation | |||||
The Company records compensation expense associated with stock options and other forms of equity compensation based on the estimated fair value at the grant-date. During 2013, the Company issued 35,000 stock options. There were no equity compensation awards issued for the year ended December 31, 2012. The Company uses the Black-Scholes-Merton (“BSM”) option-pricing model to determine the fair value of share-based awards. Expected volatility is based on historical volatility of the Company's common stock. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||
The expected term is estimated consistent with the simplified method, as identified in ASC 718. In December 2007, the Securities and Exchange Commission (“SEC”) issued guidance that allows companies, in certain circumstances, to utilize a simplified method in determining the expected term of stock option grants when calculating the compensation expense to be recorded under GAAP, for employee stock options. The simplified method can be used after December 31, 2007 only if a company's stock option exercise experience does not provide a reasonable basis upon which to estimate the expected option term. Through 2007, the Company used the simplified method to determine the expected option term, based upon the vesting and original contractual terms of the option. The Company has continued to use the simplified method to determine the expected option term since the Company’s stock option exercise experience does not provide a reasonable basis upon which to estimate the expected option term. | |||||
The fair values of options are amortized over the vesting period of the awards utilizing a straight-line method. The Company used the following assumptions to calculate compensation expense: | |||||
2013 | |||||
5 year options | |||||
Expected Life | 6.5 | ||||
Expected volatility | 123.3 | % | |||
Risk-free interest rate | 0.75 | % | |||
Income Tax, Policy [Policy Text Block] | ' | ||||
Income Taxes | |||||
The Company accounts for income taxes under a liability method. Deferred tax assets and liabilities are determined based on the differences between the financial statement carrying amounts and the tax bases of existing assets and liabilities, and are measured at the prevailing enacted tax rates that will be in effect when these differences are settled or realized. Deferred tax assets, including tax loss and credit carryforwards, and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The deferred tax assets will be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax asset will not be realized. | |||||
The Company adopted a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. No significant income tax uncertainties were identified. Therefore, the Company recognized no adjustment for unrecognized tax benefits for the years ended December 31, 2013 and 2012. | |||||
The Company has determined that any future interest accrued, related to unrecognized tax benefits, will be included in interest expense. In the event the Company must accrue for penalties, such penalties will be included as an operating expense. | |||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||
Earnings (loss) per share | |||||
Basic earnings (loss) per share ("EPS") is calculated by dividing net earnings (loss) allocable to common shareholders by the weighted average number of common shares outstanding during the period. Diluted EPS reflects the assumed exercise or conversion of all dilutive securities, using the treasury stock method for options and if-converted method for convertible preferred securities. Potentially dilutive securities include employee stock options, Series B Preferred Stock, and Convertible Preferred Stock (see “Note 3. Redeemable Series C Preferred Stock and Shareholders’ Equity" below for information about the Series B Preferred Stock and Convertible Preferred Stock). | |||||
In June 2008, the Financial Accounting Standards Board (“FASB”) issued FASB Staff Position ("FSP") Emerging Issues Task Force ("EITF") 03-6-1, "Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities" (ASC 260-10-45). ASC 260-10-45 clarified that all outstanding unvested share-based payment awards that contain rights to non-forfeitable dividends participate in undistributed earnings with common shareholders. Shares of the Company's Convertible Preferred Stock are considered participating securities since they contain a non-forfeitable right to dividends and distributions with common shareholders. ASC 260-10-45 requires that the two-class method of computing basic EPS be applied. Under the two-class method, the Company's stock options are not considered to be participating securities. Dividends on common stock were not declared in 2013 or 2012. | |||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||
Recently Issued Accounting Standards | |||||
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_2_Significant_Accounting_1
Note 2 - Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Accounting Policies [Abstract] | ' | ||||||||
Schedule of Product Warranty Liability [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Reserve for product warranty, beginning of period | $ | 69,655 | $ | 86,400 | |||||
Provision for product warranty | 42,300 | 24,500 | |||||||
Product warranty expirations | (57,800 | ) | (32,400 | ) | |||||
Product warranty costs paid | (18,965 | ) | (8,845 | ) | |||||
Reserve for product warranty, end of period | $ | 35,190 | $ | 69,655 | |||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | ' | ||||||||
2013 | |||||||||
5 year options | |||||||||
Expected Life | 6.5 | ||||||||
Expected volatility | 123.3 | % | |||||||
Risk-free interest rate | 0.75 | % |
Note_4_Income_Taxes_Tables
Note 4 - Income Taxes (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Current state tax expense | $ | 1,393 | $ | 28,675 | |||||
Deferred federal tax expense (benefit) | (59,000 | ) | (2,000 | ) | |||||
Income tax expense (benefit) | $ | (57,607 | ) | $ | 26,675 | ||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Federal statutory rate | 34 | % | 34 | % | |||||
State taxes | (0.5 | ) | 7.4 | ||||||
Nondeductible/Nontaxable Items | (8.3 | ) | 7 | ||||||
Change in federal valuation allowance asset | 2.9 | (37.9 | ) | ||||||
Effective tax rate | 28.1 | % | 10.5 | % | |||||
Summary of Operating Loss Carryforwards [Table Text Block] | ' | ||||||||
Year of Expiration | Available for Federal Tax Purposes | ||||||||
2019 | $ | 306,757 | |||||||
2021 | 76,872 | ||||||||
2022 | 40,330 | ||||||||
2023 | 106,651 | ||||||||
2033 | 183,310 | ||||||||
$ | 713,920 | ||||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Deferred tax asset: | |||||||||
Fixed assets and other | $ | 108,137 | $ | 122,148 | |||||
Net operating loss carryforwards | 252,878 | 180,407 | |||||||
Research and development credit | 12,041 | 4,802 | |||||||
Valuation allowance | (291,056 | ) | (284,357 | ) | |||||
Net deferred tax asset | $ | 82,000 | $ | 23,000 |
Note_5_ShareBased_Compensation1
Note 5 - Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | ' | ||||||||||||
2013 | |||||||||||||
Options | Weighted Exercise Price | Weighted Life (in years) | |||||||||||
Options outstanding - beginning of year | 690,000 | $ | 0.39 | 5.61 | |||||||||
Granted | 35,000 | 0.05 | |||||||||||
Exercised | - | - | |||||||||||
Forfeited / Cancelled | (80,000 | ) | 0.37 | ||||||||||
Options outstanding - end of year | 645,000 | $ | 0.38 | 4.79 | |||||||||
Options exercisable - December 31, 2013 | 605,000 | $ | 0.39 | 4.56 | |||||||||
2012 | |||||||||||||
Options | Weighted Exercise Price | Weighted Life (in years) | |||||||||||
Options outstanding - beginning of year | 690,000 | $ | 0.39 | 6.6 | |||||||||
Granted | - | - | |||||||||||
Exercised | - | - | |||||||||||
Forfeited / Cancelled | - | - | |||||||||||
Options outstanding - end of year | 690,000 | $ | 0.39 | 5.61 | |||||||||
Options exercisable - December 31, 2012 | 588,000 | $ | 0.42 | 5.46 |
Note_7_Earnings_Loss_Per_Share1
Note 7 - Earnings (Loss) Per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Basic earnings (loss) per common share: | |||||||||
Net income (loss) applicable to common shareholders – basic | $ | (147,482 | ) | $ | 227,109 | ||||
Portion allocable to common shareholders | 100 | % | 99.2 | % | |||||
Net income (loss) allocable to common shareholders | (147,482 | ) | 225,292 | ||||||
Weighted average basic shares outstanding | 31,843,704 | 31,872,617 | |||||||
Basic earnings per share | $ | - | $ | 0.01 | |||||
Dilutive earnings (loss) per common share: | |||||||||
Net income (loss) allocable to common shareholders | (147,482 | ) | 225,292 | ||||||
Add: undistributed earnings allocated to participating securities | - | 1,817 | |||||||
Numerator for diluted earnings (loss) per common share | (147,482 | ) | 227,109 | ||||||
Weighted average basic shares outstanding | 31,843,704 | 31,872,617 | |||||||
Diluted effect: | |||||||||
Unvested restricted stock awards | - | 186,000 | |||||||
Conversion equivalent of dilutive Series B Convertible Preferred Stock | - | 3,307,299 | |||||||
Conversion equivalent of dilutive Convertible Preferred Stock | - | 255,000 | |||||||
Weighted average dilutive shares outstanding | 31,843,704 | 35,620,916 | |||||||
Dilutive earnings (loss) per share | $ | - | $ | 0.01 | |||||
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | ' | ||||||||
2013 | 2012 | ||||||||
Numerator: | |||||||||
Weighted average participating common shares | 31,843,704 | 31,872,617 | |||||||
Denominator: | |||||||||
Weighted average participating common shares | 31,843,704 | 31,872,617 | |||||||
Add: Weighted average shares of Convertible Preferred Stock | - | 255,000 | |||||||
Weighted average participating shares | 31,843,704 | 32,127,617 | |||||||
Portion allocable to common shareholders | 100 | % | 99.2 | % | |||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||
Years Ended December 31, | |||||||||
2013 | 2012 | ||||||||
Stock options | 645,000 | 690,000 | |||||||
Unvested restricted stock awards | 103,000 | - | |||||||
Convertible preferred stock | 3,562,299 | - | |||||||
Total | 4,310,299 | 690,000 |
Note_8_Commitments_Tables
Note 8 - Commitments (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Commitments and Contingencies Disclosure [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | ' | ||||
2014 | 70,088 | ||||
2015 | 71,814 | ||||
2016 | 12,233 | ||||
$ | 154,135 |
Note_2_Significant_Accounting_2
Note 2 - Significant Accounting Policies (Details) (USD $) | 12 Months Ended | 46 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
ADEPT Units [Member] | ADEPT Units [Member] | Equipment [Member] | Equipment [Member] | Furniture and Fixtures [Member] | Furniture and Fixtures [Member] | Government Contracts Concentration Risk [Member] | Government Contracts Concentration Risk [Member] | Technology-Based Intangible Assets [Member] | Patents [Member] | Patents and Trademarks [Member] | Patents and Trademarks [Member] | |||
IDIQ Agreement [Member] | IDIQ Agreement [Member] | Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | |||||||||||
Note 2 - Significant Accounting Policies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration Risk, Percentage | ' | ' | ' | ' | ' | ' | ' | ' | 98.00% | 96.00% | ' | ' | ' | ' |
Cash, FDIC Insured Amount | $250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, Plant and Equipment, Useful Life | ' | ' | ' | ' | '3 years | ' | '7 years | ' | ' | ' | ' | ' | ' | ' |
Depreciation | ' | ' | ' | ' | 4,336 | 5,548 | 1,323 | 1,323 | ' | ' | ' | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | '10 years | ' |
Finite-Lived Intangible Assets, Net | 348 | 486 | ' | ' | ' | ' | ' | ' | ' | ' | ' | -4,000 | ' | ' |
Amortization of Intangible Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,933 | 139 | 3,122 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 138 | ' |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 72 | ' |
Government Contract Receivable, Unbilled Amounts | 16,130 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Customer Advances, Current | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Units Delivered | ' | ' | 41 | 122 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Product Warranty Expense | 15,500 | 7,900 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Units To Be Delivered | ' | ' | 41 | 41 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Standard Product Warranty Accrual | 35,190 | 69,655 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Research and Development Expense | $81,598 | $59,245 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period (in Shares) | 35,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_2_Significant_Accounting_3
Note 2 - Significant Accounting Policies (Details) - Reserve for Product Warranty Activity (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reserve for Product Warranty Activity [Abstract] | ' | ' |
Reserve for product warranty, beginning of period | $69,655 | $86,400 |
Provision for product warranty | 42,300 | 24,500 |
Product warranty expirations | -57,800 | -32,400 |
Product warranty costs paid | -18,965 | -8,845 |
Reserve for product warranty, end of period | $35,190 | $69,655 |
Note_2_Significant_Accounting_4
Note 2 - Significant Accounting Policies (Details) - The Fair Values Assumptions for Options (Five Year Options [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Five Year Options [Member] | ' |
5 year options | ' |
Expected Life | '6 years 6 months |
Expected volatility | 123.30% |
Risk-free interest rate | 0.75% |
Note_3_Redeemable_Series_C_Pre1
Note 3 - Redeemable Series C Preferred Stock and Shareholders' Equity (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Series C Preferred Stock [Member] | ' | ' |
Note 3 - Redeemable Series C Preferred Stock and Shareholders' Equity (Details) [Line Items] | ' | ' |
Preferred Stock, Redemption Price Per Share | $16.09 | ' |
Series B Preferred Stock [Member] | ' | ' |
Note 3 - Redeemable Series C Preferred Stock and Shareholders' Equity (Details) [Line Items] | ' | ' |
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares) | 3 | ' |
Convertible Preferred Stock, Conversion Price | $0.33 | ' |
Preferred Stock, Liquidation Preference Per Share | $1 | ' |
Preferred Stock, Liquidation Preference, Value (in Dollars) | $1,102,433 | $1,102,433 |
Convertible Preferred Stock [Member] | ' | ' |
Note 3 - Redeemable Series C Preferred Stock and Shareholders' Equity (Details) [Line Items] | ' | ' |
Preferred Stock, Redemption Price Per Share | $1 | ' |
Convertible Preferred Stock, Conversion Price | $1 | ' |
Preferred Stock, Liquidation Preference Per Share | $1 | ' |
Preferred Stock, Liquidation Preference, Value (in Dollars) | 255,000 | 255,000 |
Series D Preferred Stock [Member] | ' | ' |
Note 3 - Redeemable Series C Preferred Stock and Shareholders' Equity (Details) [Line Items] | ' | ' |
Preferred Stock, Redemption Price Per Share | $1 | ' |
Preferred Stock, Dividend Rate, Per-Dollar-Amount | $0.10 | ' |
Preferred Stock, Amount of Preferred Dividends in Arrears (in Dollars) | 828,000 | ' |
Preferred Stock, Liquidation Preference, Value (in Dollars) | $1,518,000 | $1,518,000 |
Note_4_Income_Taxes_Details
Note 4 - Income Taxes (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' |
Increase (Decrease) in Deferred Income Taxes | $180,000 | ' |
Valuation Allowance, Deferred Tax Asset, Change in Amount | $7,000 | ($109,000) |
Note_4_Income_Taxes_Details_In
Note 4 - Income Taxes (Details) - Income Tax Provision (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Provision [Abstract] | ' | ' |
Current state tax expense | $1,393 | $28,675 |
Deferred federal tax expense (benefit) | -59,000 | -2,000 |
Income tax expense (benefit) | ($57,607) | $26,675 |
Note_4_Income_Taxes_Details_Re
Note 4 - Income Taxes (Details) - Reconciliation between the Statutory Federal Income Tax Rate and the Companybs Effective Tax Rate | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation between the Statutory Federal Income Tax Rate and the Companybs Effective Tax Rate [Abstract] | ' | ' |
Federal statutory rate | 34.00% | 34.00% |
State taxes | -0.50% | 7.40% |
Nondeductible/Nontaxable Items | -8.30% | 7.00% |
Change in federal valuation allowance asset | 2.90% | -37.90% |
Effective tax rate | 28.10% | 10.50% |
Note_4_Income_Taxes_Details_To
Note 4 - Income Taxes (Details) - Total Available Net Operating Loss Carry forwards (USD $) | Dec. 31, 2013 |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Available for Federal Tax Purposes | $713,920 |
Expiring 2019 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Available for Federal Tax Purposes | 306,757 |
Expiring 2021 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Available for Federal Tax Purposes | 76,872 |
Expiring 2022 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Available for Federal Tax Purposes | 40,330 |
Expiring 2023 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Available for Federal Tax Purposes | 106,651 |
Expiring 2033 [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net Operating Loss Available for Federal Tax Purposes | $183,310 |
Note_4_Income_Taxes_Details_De
Note 4 - Income Taxes (Details) - Deferred Tax Assets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred tax asset: | ' | ' |
Fixed assets and other | $108,137 | $122,148 |
Net operating loss carryforwards | 252,878 | 180,407 |
Research and development credit | 12,041 | 4,802 |
Valuation allowance | -291,056 | -284,357 |
Net deferred tax asset | $82,000 | $23,000 |
Note_5_ShareBased_Compensation2
Note 5 - Share-Based Compensation (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Oct. 31, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2009 | Mar. 31, 2008 | |
Restricted Stock [Member] | Restricted Stock [Member] | 2007 Stock Incentive Option Plan [Member] | 2007 Stock Incentive Option Plan [Member] | 2007 Stock Incentive Option Plan [Member] | 2007 Stock Incentive Option Plan [Member] | ||||
Note 5 - Share-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | 420,000 | ' | ' | ' | ' | 345,000 | 10,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | ' | ' | ' | ' | ' | '5 years | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit (in Dollars per share) | ' | ' | ' | ' | ' | $0.20 | ' | ' | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit (in Dollars per share) | ' | ' | ' | ' | ' | $0.62 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Shares Issued in Period | 35,000 | 0 | ' | ' | ' | 35,000 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value (in Dollars) | ' | ' | ' | ' | ' | $1,750 | $0 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | ' | ' | ' | ' | ' | 40,000 | 102,000 | ' | ' |
Unvested Options Fair Value (in Dollars) | ' | ' | ' | ' | ' | 1,300 | 19,140 | ' | ' |
Share-based Compensation (in Dollars) | 13,567 | 31,434 | ' | 4,015 | 5,275 | 9,552 | 26,159 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars) | ' | ' | ' | $6,328 | ' | $4,181 | $15,839 | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ' | ' | ' | 0 | 0 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | ' | ' | ' | 27,000 | 5,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | ' | ' | ' | 56,000 | 59,000 | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | ' | ' | ' | 103,000 | ' | ' | ' | ' | ' |
Note_5_ShareBased_Compensation3
Note 5 - Share-Based Compensation (Details) - Stock Options Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Stock Options Activity [Abstract] | ' | ' | ' |
Options outstanding - shares | 645,000 | 690,000 | 690,000 |
Options outstanding - weighted exercise price | $0.38 | $0.39 | $0.39 |
Options outstanding - weighted life | '4 years 288 days | '5 years 222 days | '6 years 219 days |
Options exercisable - shares | 605,000 | 588,000 | ' |
Options exercisable - weighted exercise price | $0.39 | $0.42 | ' |
Options exercisable - weighted life | '4 years 204 days | '5 years 167 days | ' |
Granted - shares | 35,000 | 0 | ' |
Granted - weighted exercise price | $0.05 | $0 | ' |
Exercised - shares | 0 | 0 | ' |
Exercised - weighted exercise price | $0 | $0 | ' |
Forfeited / Cancelled - shares | -80,000 | 0 | ' |
Forfeited / Cancelled - weighted exercise price | $0.37 | $0 | ' |
Note_6_Debt_Details
Note 6 - Debt (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
Sun National Bank [Member] | ' | ' |
Note 6 - Debt (Details) [Line Items] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | ' | $500,000 |
Debt Instrument, Maturity Date | 30-Jun-14 | ' |
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ' |
Line of Credit Facility, Interest Rate at Period End | 5.75% | ' |
Line of Credit Facility, Remaining Borrowing Capacity | 403,310 | ' |
Line of Credit Facility, Amount Outstanding | $0 | ' |
Minimum [Member] | ' | ' |
Note 6 - Debt (Details) [Line Items] | ' | ' |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ' |
Note_7_Earnings_Loss_Per_Share2
Note 7 - Earnings (Loss) Per Share (Details) - Weighted Average Shares Outstanding (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Note 7 - Earnings (Loss) Per Share (Details) - Weighted Average Shares Outstanding [Line Items] | ' | ' |
Net income (loss) applicable to common shareholders b basic | ($147,482) | $227,109 |
Portion allocable to common shareholders | 100.00% | 99.20% |
Net income allocable to common shareholders | -147,482 | 225,292 |
Add: undistributed earnings allocated to participating securities | ' | 1,817 |
Numerator for diluted earnings (loss) per common share | ($147,482) | $227,109 |
Weighted average basic shares outstanding | 31,843,704 | 31,872,617 |
Unvested restricted stock awards | ' | 186,000 |
Conversion equivalent of dilutive preferred stock | ' | 255,000 |
Weighted average dilutive shares outstanding | 31,843,704 | 35,620,916 |
Dilutive earnings (loss) per share | ' | $0.01 |
Basic earnings per share | ' | $0.01 |
Preferred Stock Series B Convertible [Member} | ' | ' |
Note 7 - Earnings (Loss) Per Share (Details) - Weighted Average Shares Outstanding [Line Items] | ' | ' |
Conversion equivalent of dilutive preferred stock | ' | 3,307,299 |
Convertible Preferred Stock [Member] | ' | ' |
Note 7 - Earnings (Loss) Per Share (Details) - Weighted Average Shares Outstanding [Line Items] | ' | ' |
Conversion equivalent of dilutive preferred stock | ' | 255,000 |
Note_7_Earnings_Loss_Per_Share3
Note 7 - Earnings (Loss) Per Share (Details) - Percentage of Net Earnings Allocable to Common Shareholders | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Numerator: | ' | ' |
Weighted average participating common shares | 31,843,704 | 31,872,617 |
Add: Weighted average shares of Convertible Preferred Stock | ' | 255,000 |
Weighted average participating shares | 31,843,704 | 32,127,617 |
Portion allocable to common shareholders | 100.00% | 99.20% |
Note_7_Earnings_Loss_Per_Share4
Note 7 - Earnings (Loss) Per Share (Details) - Diluted Net Earnings (Loss) Per Share | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive shares | 4,310,299 | 690,000 |
Stock Compensation Plan [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive shares | 645,000 | 690,000 |
Restricted Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive shares | 103,000 | ' |
Convertible Debt Securities [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive shares | 3,562,299 | ' |
Note_8_Commitments_Details
Note 8 - Commitments (Details) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Dec. 31, 2013 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
Subsequent Event [Member] | Subsequent Event [Member] | Principal Executive Offices [Member] | Engineering, Research, Design and Development Facility [Member] | Engineering, Research, Design and Development Facility [Member] | Minimum [Member] | Maximum [Member] | |||
Adept Production Facility [Member] | Adept Production Facility [Member] | Monthly Rent [Member] | Second Year [Member] | Annually After Year Two [Member] | Annually After Year Two [Member] | ||||
Monthly Rent [Member] | |||||||||
Note 8 - Commitments (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments for Rent | ' | ' | ' | ' | $75 | $51,421 | ' | ' | ' |
Increase in Rent in Subsequent Years | ' | ' | ' | ' | ' | ' | 30.00% | 2.00% | 3.00% |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | ' | ' | ' | '1 year | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense, Minimum Rentals | ' | ' | 2,143 | ' | ' | ' | ' | ' | ' |
Operating Leases, Rent Expense | 106,521 | 101,240 | ' | ' | ' | ' | ' | ' | ' |
Operating Leases, Future Minimum Payments Due | $154,135 | ' | ' | ' | ' | ' | ' | ' | ' |
Note_8_Commitments_Details_Fut
Note 8 - Commitments (Details) - Future Obligations under Non-cancellable Operating Leases (USD $) | Dec. 31, 2013 |
Future Obligations under Non-cancellable Operating Leases [Abstract] | ' |
2014 | $70,088 |
2015 | 71,814 |
2016 | 12,233 |
$154,135 |
Note_9_Related_Party_Transacti1
Note 9 - Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | |
Ocean Power Technologies, Inc. [Member] | Atair Aerospace Inc. [Member] | Atair Aerospace Incorporation [Member] | |
Note 9 - Related Party Transactions (Details) [Line Items] | ' | ' | ' |
Related Party Transaction, Expenses from Transactions with Related Party | $49,588 | $77,935 | $188,197 |