Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 13, 2015 | |
Entity Registrant Name | MIKROS SYSTEMS CORP | |
Entity Central Index Key | 317,340 | |
Trading Symbol | mkrs | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 32,018,753 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Series C Preferred Stock [Member] | ||
Liabilities and shareholders' equity | ||
Redeemable series C preferred stock par value $.01 per share, authorized 150,000 shares, issued and outstanding 5,000 shares (involuntary liquidation value - $80,450) | $ 80,450 | $ 80,450 |
Series B Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock | 11,024 | 11,024 |
Convertible Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock | 2,550 | 2,550 |
Series D Preferred Stock [Member] | ||
Shareholders' equity: | ||
Preferred stock | 6,900 | 6,900 |
Cash and cash equivalents | 1,645,255 | 1,161,634 |
Receivables on government contracts | 1,022,107 | 1,575,954 |
Prepaid expenses and other current assets | 95,607 | 105,197 |
Deferred tax asset, current | 28,065 | 28,065 |
Total current assets | 2,791,034 | 2,870,850 |
Equipment | 64,379 | 61,686 |
Furniture & fixtures | 14,728 | 14,728 |
Less: accumulated depreciation | (67,251) | (62,123) |
Property and equipment, net | 11,856 | 14,291 |
Intangible Asset | 127,383 | 1,383 |
Less: accumulated amortization | (6,527) | (1,173) |
Intangible assets, net | 120,856 | 210 |
Deferred tax assets | 78,935 | 140,935 |
Total assets | 3,002,681 | 3,026,286 |
Accrued payroll and payroll taxes | 433,170 | 493,308 |
Accounts payable and accrued expenses | 161,244 | 688,534 |
Accrued warranty expense | 139,410 | $ 33,500 |
Deferred revenue | 36,000 | |
Total current liabilities | 769,824 | $ 1,215,342 |
Long-term liabilities | 129,052 | 7,770 |
Total liabilities | $ 898,876 | $ 1,223,112 |
Commitments and contingencies (Note 9) | ||
Common stock, par value $.01 per share, authorized 60,000,000 shares, issued and outstanding 32,018,753 shares at September 30, 2015 and December 31, 2014, respectively | $ 320,188 | $ 320,188 |
Capital in excess of par value | 11,631,121 | 11,628,728 |
Accumulated deficit | (9,948,428) | (10,246,666) |
Total shareholders' equity | 2,023,355 | 1,722,724 |
Total liabilities and shareholders' equity | $ 3,002,681 | $ 3,026,286 |
Condensed Balance Sheets (Unau3
Condensed Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Series C Preferred Stock [Member] | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Authorized (in shares) | 150,000 | 150,000 |
Issued (in shares) | 5,000 | 5,000 |
Outstanding (in shares) | 5,000 | 5,000 |
Liquidation value | $ 80,450 | $ 80,450 |
Series B Preferred Stock [Member] | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Authorized (in shares) | 1,200,000 | 1,200,000 |
Issued (in shares) | 1,102,433 | 1,102,433 |
Outstanding (in shares) | 1,102,433 | 1,102,433 |
Liquidation value | $ 1,102,433 | $ 1,102,433 |
Convertible Preferred Stock [Member] | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Authorized (in shares) | 2,000,000 | 2,000,000 |
Issued (in shares) | 255,000 | 255,000 |
Outstanding (in shares) | 255,000 | 255,000 |
Liquidation value | $ 255,000 | $ 255,000 |
Series D Preferred Stock [Member] | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Authorized (in shares) | 690,000 | 690,000 |
Issued (in shares) | 690,000 | 690,000 |
Outstanding (in shares) | 690,000 | 690,000 |
Liquidation value | $ 1,518,000 | $ 1,518,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, issued (in shares) | 32,018,753 | 32,018,753 |
Common stock, outstanding (in shares) | 32,018,753 | 32,018,753 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Engineering [Member] | ||||
Expenses: | ||||
Engineering | $ 309,769 | $ 329,864 | $ 1,058,705 | $ 832,517 |
Contract revenues | 1,240,393 | 1,057,442 | 5,450,815 | 3,150,584 |
Cost of sales | 529,303 | 431,701 | 2,868,377 | 1,284,081 |
Gross margin | 711,090 | 625,741 | 2,582,438 | 1,866,503 |
Engineering | 24,890 | 1,724 | 34,625 | 5,021 |
General and administrative | 328,734 | 213,956 | 951,331 | 806,591 |
Total expenses | 638,503 | 543,820 | 2,010,036 | 1,639,108 |
Income from operations | 72,587 | 81,921 | 572,402 | 227,395 |
Interest income | 149 | 95 | 336 | 316 |
Net income before income taxes | 72,736 | 82,016 | 572,738 | 227,711 |
Income tax expense (benefit) | 36,000 | (45,419) | 274,500 | (21,973) |
Net income | $ 36,736 | $ 127,435 | $ 298,238 | $ 249,684 |
Other comprehensive income (loss) | ||||
Comprehensive income | $ 36,736 | $ 127,435 | $ 298,238 | $ 249,684 |
Basic income per share (in dollars per share) | $ 0.01 | $ 0.01 | ||
Weighted average shares outstanding - basic (in shares) | 31,947,753 | 31,904,786 | 32,064,778 | 31,892,694 |
Dilutive income per share (in dollars per share) | $ 0.01 | $ 0.01 | ||
Diluted weighted average number of shares outstanding (in shares) | 35,548,552 | 35,509,307 | 35,665,577 | 35,488,707 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities | ||
Net income | $ 298,238 | $ 249,684 |
Depreciation and amortization | 10,482 | 4,707 |
Deferred tax expense (benefit) | 62,000 | (34,000) |
Share-based compensation expense | 2,043 | 9,703 |
Changes in operating assets and liabilities: | ||
Decrease (Increase) in receivables on government contracts | 553,847 | (211,821) |
Decrease (Increase) in prepaid expenses and other current assets | 9,590 | (2,579) |
(Decrease) Increase in accrued payroll and payroll taxes | (60,138) | 218,004 |
(Decrease) Increase in accounts payable and accrued expenses | (527,290) | 41,745 |
Increase (Decrease) in accrued warranty expense | 105,910 | $ (1,690) |
Increase in deferred revenue | 36,000 | |
Decrease in long-term liabilities | (4,718) | $ (3,422) |
Net cash provided by operating activities | 485,964 | 270,331 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,693) | (11,890) |
Net cash used in investing activities: | (2,693) | (11,890) |
Cash flows from financing activities: | ||
Proceeds received upon the exercise of stock options | 350 | 350 |
Net cash provided by financing activities | 350 | 350 |
Net increase in cash and cash equivalents | 483,621 | 258,791 |
Cash and cash equivalents, beginning of period | 1,161,634 | 1,028,146 |
Cash and cash equivalents, end of period | 1,645,255 | 1,286,937 |
Supplemental cash flow information: | ||
Cash paid during the period for income taxes | 215,183 | $ 558 |
Supplemental non-cash investing activity: | ||
Estimated consideration to be paid in connection with purchase of intangible asset | $ 126,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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, 2014. In the opinion of the Company’s management, the accompanying unaudited interim condensed financial statements contain all adjustments necessary to present fairly its financial position as of September 30, 2015, and the results of its operations for the three and nine months ended September 30, 2015 and 2014 and cash flows for the nine months ended September 30, 2015 and 2014. Changes in the Company’s stockholders’ equity from December 31, 2014 to September 30, 2015 are a result of share-based compensation expense of $2,043, proceeds received upon the exercise of options of $350, and net income of $298,238. Interim results are not necessarily indicative of results for the full fiscal year. |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Note 2 – Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers. The amendment in this ASU provides guidance on the revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The core principle of this update provides guidance to identify the performance obligations under the contract(s) with a customer and how to allocate the transaction price to the performance obligations in the contract. It further provides guidance to recognize revenue when (or as) the entity satisfies a performance obligation. This standard will replace most existing revenue recognition guidance. On July 9, 2015, the FASB approved a one-year deferral of the effective date of this standard to 2018 for public companies, with an option that would permit companies to adopt the standard as early as the original effective date of 2017. Early adoption prior to the original effective date is not permitted. The Company has not yet selected a transition method nor has the Company determined the effect of the standard on our financial position and results of operations. |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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 U.S. Department of Defense (“DoD”). 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 Adaptive Diagnostic Electronic Portable Testset Unbilled revenue reflects work performed, but not billed at the time, per contractual requirements. The Company had unbilled revenues of $38,884 and $34,366 included in receivables on government contracts as of September 30, 2015 and December 31, 2014, respectively. Billings to customers in excess of revenue earned are classified as advanced billings, and shown as a liability. As of September 30, 2015 and December 31, 2014, the Company had no advanced billings. 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. During the three months ended September 30, 2015 and 2014, the Company recognized warranty (recoveries) expense of $106,800 and $(10,744), respectively, and $113,400 and (1,690) for the nine months ended September 30, 2015 and 2014, respectively. Since the inception of the IDIQ contract in March 2010, the Company has delivered 163 ADEPT units. As of September 30, 2015, there are 41 ADEPT units that remain under limited warranty coverage. As of September 30, 2015 and December 31, 2014, the Company had an accrued warranty expense of $139,410 and $33,500, respectively. The following table reflects the reserve for product warranty activity as of September 30, 2015 and December 31, 2014: 2015 2014 Reserve for product warranty, beginning of period $ 33,500 $ 35,190 Provision for product warranty 136,700 51,210 Product warranty expirations (23,300 ) (52,900 ) Product warranty costs paid (7,490 ) - Reserve for product warranty, end of period $ 139,410 $ 33,500 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 $24,890 and $1,724 for the three months ended September 30, 2015 and 2014, respectively, and $34,625 and $5,021, for the nine months ended September 30, 2015 and 2014, respectively. Intangible Assets A majority of the Company’s intangible assets consist of a license acquired in July 2015. Trade names and trademarks with finite lives are amortized using the straight-line method over their estimated useful lives. Licenses are amortized using a straight-line method over their estimated life of six years. |
Note 4 - Income (Loss) Per Shar
Note 4 - Income (Loss) Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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. Basic net loss attributable to common stockholders is computed by an adjustment to subtract from net income the portion of current period earnings that the preferred shareholders would have been entitled to receive pursuant to their dividend rights had all of the period’s earnings been distributed. 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 table below sets forth the calculation of the percentage of net earnings (loss) allocable to common shareholders under the two-class method: Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Basic Income per Share: Net income applicable to common shareholders - basic $ 36,736 $ 127,435 $ 298,238 $ 249,684 Portion allocable to common shareholders 99.2 % 99.2 % 99.2 % 99.2 % Net earnings allocable to common shareholders 36,442 126,416 295,852 247,687 Weighted average basic shares outstanding Basic income per share 31,947,753 31,904,786 32,064,778 31,892,694 Basic income per share $ - $ - $ 0.01 $ 0.01 Dilutive Income Per Share: Net income applicable to common shareholders 36,442 126,416 295,852 247,687 Add: Undistributed earnings allocated to participating securities 294 1,019 2,386 1,997 Numerator for diluted income per share 36,736 127,435 298,238 249,684 Weighted average shares outstanding - basic 31,947,753 31,904,786 32,064,778 31,892,694 Diluted effect: Stock options 19,250 20,222 19,250 18,000 Unvested restricted stock awards 19,250 - 19,250 - Conversion equivalent of diluted Series B Convertible Preferred Stock 3,307,299 3,307,299 3,307,299 3,307,299 Conversion equivalent of diluted Convertible 255,000 255,000 255,000 255,000 Restricted stock options - 22,000 - 15,714 Weighted average dilutive shares outstanding 35,548,552 35,509,307 35,665,577 35,488,707 Dilutive income per share $ - $ - $ 0.01 $ 0.01 Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator Weighted average participating common shares 31,947,753 31,904,786 32,064,778 31,892,694 Denominator: Weighted average participating common shares 31,947,753 31,904,786 32,064,778 31,892,694 Add: Weighted average shares of Convertible Preferred Stock 255,000 255,000 255,000 255,000 Weighted average participating shares 32,202,753 32,159,786 32,319,778 32,147,694 Portion allocable to common shareholders 99.2 % 99.2 % 99.2 % 99.2 % Diluted net income (loss) per share for the three and nine months ended September 30, 2015 and 2014 does not reflect the following potential common shares, as the effect would be antidilutive. September 30, 2015 September 30, 2014 Stock options 610,000 610,000 610,000 610,000 |
Note 5 - Income Tax Matters
Note 5 - Income Tax Matters | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
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 decreased its net deferred tax assets by $62,000 during the nine months ended September 30, 2015. The net deferred tax assets increased by $34,000 during the nine months ended September 30, 2014. The change in deferred tax assets is attributable to utilization of income tax attributes, primarily federal net operating losses, as the Company anticipates annual earnings from operations to continue. |
Note 6 - Share-Based Compensati
Note 6 - Share-Based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 6 – Share-Based Compensation During the three and nine months ended September 30, 2015 and 2014, the Company did not issue stock awards. During the nine months ended September 30, 2014, 7,000 options were exercised for proceeds in the amount of $350. The Company recognized stock-based compensation expense for stock options of $37 and $969 for the three months ended September 30, 2015 and 2014, respectively. The Company recognized stock-based compensation expense for stock options of $111 and $6,649 for the nine months ended September 30, 2015 and 2014, respectively. The intrinsic value of the options as of September 30, 2015 is $3,080. As of September 30, 2015 and 2014, there were 44,000 restricted stock awards outstanding. The Company recognized stock-based compensation expense for restricted stock of $644 and $1,018 for the three months ended September 30, 2015 and 2014, respectively. The Company recognized stock-based compensation expense for restricted stock of $1,932 and $3,054 for the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015, there was $2,695 of unrecognized stock-based compensation expense related to all outstanding equity awards that will be recognized in a future periods. |
Note 7 - Related Party Transact
Note 7 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 7 – Related Party Transactions Paul Casner, the chairman of the Company’s board of directors, also serves as the executive chairman and CEO of Atair Aerospace Incorporation. Atair 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, 2015 and 2014, the Company incurred subcontracting service costs from Atair of $0 and $6,779, respectively. During the nine months ended September 30, 2015 and 2014, the Company incurred subcontracting service costs from Atair of $2,279 and $33,468, respectively. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
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 U.S. Department of Defense (“DoD”). 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 Adaptive Diagnostic Electronic Portable Testset Unbilled revenue reflects work performed, but not billed at the time, per contractual requirements. The Company had unbilled revenues of $38,884 and $34,366 included in receivables on government contracts as of September 30, 2015 and December 31, 2014, respectively. Billings to customers in excess of revenue earned are classified as advanced billings, and shown as a liability. As of September 30, 2015 and December 31, 2014, the Company had no advanced billings. |
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. During the three months ended September 30, 2015 and 2014, the Company recognized warranty (recoveries) expense of $106,800 and $(10,744), respectively, and $113,400 and (1,690) for the nine months ended September 30, 2015 and 2014, respectively. Since the inception of the IDIQ contract in March 2010, the Company has delivered 163 ADEPT units. As of September 30, 2015, there are 41 ADEPT units that remain under limited warranty coverage. As of September 30, 2015 and December 31, 2014, the Company had an accrued warranty expense of $139,410 and $33,500, respectively. The following table reflects the reserve for product warranty activity as of September 30, 2015 and December 31, 2014: 2015 2014 Reserve for product warranty, beginning of period $ 33,500 $ 35,190 Provision for product warranty 136,700 51,210 Product warranty expirations (23,300 ) (52,900 ) Product warranty costs paid (7,490 ) - Reserve for product warranty, end of period $ 139,410 $ 33,500 |
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 $24,890 and $1,724 for the three months ended September 30, 2015 and 2014, respectively, and $34,625 and $5,021, for the nine months ended September 30, 2015 and 2014, respectively. |
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block] | Intangible Assets A majority of the Company’s intangible assets consist of a license acquired in July 2015. Trade names and trademarks with finite lives are amortized using the straight-line method over their estimated useful lives. Licenses are amortized using a straight-line method over their estimated life of six years. |
Note 3 - Significant Accounti14
Note 3 - Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | 2015 2014 Reserve for product warranty, beginning of period $ 33,500 $ 35,190 Provision for product warranty 136,700 51,210 Product warranty expirations (23,300 ) (52,900 ) Product warranty costs paid (7,490 ) - Reserve for product warranty, end of period $ 139,410 $ 33,500 |
Note 4 - Income (Loss) Per Sh15
Note 4 - Income (Loss) Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, 2015 2014 2015 2014 Basic Income per Share: Net income applicable to common shareholders - basic $ 36,736 $ 127,435 $ 298,238 $ 249,684 Portion allocable to common shareholders 99.2 % 99.2 % 99.2 % 99.2 % Net earnings allocable to common shareholders 36,442 126,416 295,852 247,687 Weighted average basic shares outstanding Basic income per share 31,947,753 31,904,786 32,064,778 31,892,694 Basic income per share $ - $ - $ 0.01 $ 0.01 Dilutive Income Per Share: Net income applicable to common shareholders 36,442 126,416 295,852 247,687 Add: Undistributed earnings allocated to participating securities 294 1,019 2,386 1,997 Numerator for diluted income per share 36,736 127,435 298,238 249,684 Weighted average shares outstanding - basic 31,947,753 31,904,786 32,064,778 31,892,694 Diluted effect: Stock options 19,250 20,222 19,250 18,000 Unvested restricted stock awards 19,250 - 19,250 - Conversion equivalent of diluted Series B Convertible Preferred Stock 3,307,299 3,307,299 3,307,299 3,307,299 Conversion equivalent of diluted Convertible 255,000 255,000 255,000 255,000 Restricted stock options - 22,000 - 15,714 Weighted average dilutive shares outstanding 35,548,552 35,509,307 35,665,577 35,488,707 Dilutive income per share $ - $ - $ 0.01 $ 0.01 |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Numerator Weighted average participating common shares 31,947,753 31,904,786 32,064,778 31,892,694 Denominator: Weighted average participating common shares 31,947,753 31,904,786 32,064,778 31,892,694 Add: Weighted average shares of Convertible Preferred Stock 255,000 255,000 255,000 255,000 Weighted average participating shares 32,202,753 32,159,786 32,319,778 32,147,694 Portion allocable to common shareholders 99.2 % 99.2 % 99.2 % 99.2 % |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | September 30, 2015 September 30, 2014 Stock options 610,000 610,000 610,000 610,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allocated Share-based Compensation Expense | $ 2,043 | $ 9,703 | ||
Proceeds from Stock Options Exercised | 350 | 350 | ||
Net Income (Loss) Attributable to Parent | $ 36,736 | $ 127,435 | $ 298,238 | $ 249,684 |
Note 3 - Significant Accounti17
Note 3 - Significant Accounting Policies (Details Textual) | 3 Months Ended | 9 Months Ended | 66 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2014USD ($) | |
ADEPT Units [Member] | IDIQ Agreement [Member] | ||||||
Units Delivered | 163 | |||||
Units to be Delivered | 41 | 41 | 41 | |||
Licensing Agreements [Member] | ||||||
Finite-Lived Intangible Asset, Useful Life | 6 years | |||||
Customer Advances, Current | $ 0 | $ 0 | $ 0 | $ 0 | ||
Government Contract Receivable, Unbilled Amounts | 38,884 | 38,884 | 38,884 | 34,366 | ||
Product Warranty (Benefit) Expense | 106,800 | $ (10,744) | 113,400 | $ (1,690) | ||
Standard Product Warranty Accrual, Current | 139,410 | 139,410 | $ 139,410 | $ 33,500 | ||
Research and Development Expense | $ 24,890 | $ 1,724 | $ 34,625 | $ 5,021 |
Note 3 - Significant Accounti18
Note 3 - Significant Accounting Policies - Reserve for Product Warranty Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Reserve for product warranty, beginning of period | $ 33,500 | $ 35,190 |
Provision for product warranty | 136,700 | 51,210 |
Product warranty expirations | (23,300) | $ (52,900) |
Product warranty costs paid | (7,490) | |
Reserve for product warranty, end of period | $ 139,410 | $ 33,500 |
Note 4 - Income (Loss) Per Sh19
Note 4 - Income (Loss) Per Share - Weighted Average Shares Outstanding (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Preferred Stock Series B Convertible [Member] | ||||
Diluted effect: | ||||
Diluted effect (in shares) | 3,307,299 | 3,307,299 | 3,307,299 | 3,307,299 |
Diluted effect (in shares) | 3,307,299 | 3,307,299 | 3,307,299 | 3,307,299 |
Convertible Preferred Stock [Member] | ||||
Diluted effect: | ||||
Diluted effect (in shares) | 255,000 | 255,000 | 255,000 | 255,000 |
Diluted effect (in shares) | 255,000 | 255,000 | 255,000 | 255,000 |
Restricted Stock [Member] | ||||
Diluted effect: | ||||
Diluted effect (in shares) | 22,000 | 15,714 | ||
Diluted effect (in shares) | 22,000 | 15,714 | ||
Net Income (Loss) Attributable to Parent | $ 36,736 | $ 127,435 | $ 298,238 | $ 249,684 |
Portion allocable to common shareholders | 99.20% | 99.20% | 99.20% | 99.20% |
Net income applicable to common shareholders | $ 36,442 | $ 126,416 | $ 295,852 | $ 247,687 |
Weighted average shares outstanding - basic (in shares) | 31,947,753 | 31,904,786 | 32,064,778 | 31,892,694 |
Basic income per share (in dollars per share) | $ 0.01 | $ 0.01 | ||
Net income applicable to common shareholders | $ 36,442 | $ 126,416 | $ 295,852 | $ 247,687 |
Add: Undistributed earnings allocated to participating securities | 294 | 1,019 | 2,386 | 1,997 |
Numerator for diluted income per share | $ 36,736 | $ 127,435 | $ 298,238 | $ 249,684 |
Weighted average shares outstanding - basic (in shares) | 31,947,753 | 31,904,786 | 32,064,778 | 31,892,694 |
Stock options (in shares) | 19,250 | 20,222 | 19,250 | 18,000 |
Diluted effect (in shares) | 19,250 | 19,250 | ||
Diluted effect (in shares) | 19,250 | 19,250 | ||
Weighted average dilutive shares outstanding (in shares) | 35,548,552 | 35,509,307 | 35,665,577 | 35,488,707 |
Dilutive income per share (in dollars per share) | $ 0.01 | $ 0.01 |
Note 4 - Income (Loss) Per Sh20
Note 4 - Income (Loss) Per Share - Percentage of Net Earnings Allocable to Common Shareholders (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Weighted average participating common shares (in shares) | 31,947,753 | 31,904,786 | 32,064,778 | 31,892,694 |
Weighted average participating common shares (in shares) | 31,947,753 | 31,904,786 | 32,064,778 | 31,892,694 |
Add: Weighted average shares of Convertible Preferred Stock (in shares) | 255,000 | 255,000 | 255,000 | 255,000 |
Weighted average participating shares (in shares) | 32,202,753 | 32,159,786 | 32,319,778 | 32,147,694 |
Portion allocable to common shareholders | 99.20% | 99.20% | 99.20% | 99.20% |
Note 4 - Income (Loss) Per Sh21
Note 4 - Income (Loss) Per Share - Diluted Net Earnings (Loss) Per Share (Details) - shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Employee Stock Option [Member] | ||
Antidilutive shares (in shares) (in shares) | 610,000 | 610,000 |
Antidilutive shares (in shares) (in shares) | 610,000 | 610,000 |
Note 5 - Income Tax Matters (De
Note 5 - Income Tax Matters (Details Textual) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (62,000) | $ 34,000 |
Note 6 - Share-Based Compensa23
Note 6 - Share-Based Compensation (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 44,000 | 44,000 | 44,000 | 44,000 |
Allocated Share-based Compensation Expense | $ 644 | $ 1,018 | $ 1,932 | $ 3,054 |
Employee Stock Option [Member] | ||||
Allocated Share-based Compensation Expense | $ 37 | $ 969 | $ 111 | $ 6,649 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 7,000 | |||
Proceeds from Stock Options Exercised | $ 350 | $ 350 | ||
Allocated Share-based Compensation Expense | 2,043 | $ 9,703 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 3,080 | 3,080 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,695 | $ 2,695 |
Note 7 - Related Party Transa24
Note 7 - Related Party Transactions (Details Textual) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Board of Directors Chairman [Member] | Management Consulting Services [Member] | ||||
Related Party Transaction, Expenses from Transactions with Related Party | $ 0 | $ 6,779 | $ 2,279 | $ 33,468 |