Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 13, 2016 | |
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) | 32,032,753 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Balance Sheets (Unaud
Condensed Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
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 | 2,249,425 | 2,858,655 |
Receivables on government contracts | 405,882 | 431,012 |
Prepaid expenses and other current assets | 89,455 | 59,205 |
Total current assets | 2,744,762 | 3,348,872 |
Equipment | 95,693 | 95,693 |
Furniture & fixtures | 16,394 | 16,394 |
Less: accumulated depreciation | (74,428) | (70,257) |
Property and equipment, net | 37,659 | 41,830 |
Intangible assets | 127,383 | 127,383 |
Less: accumulated amortization | (17,097) | (11,812) |
Intangible assets, net | 110,286 | 115,571 |
Deferred tax assets | 213,167 | 214,548 |
Total assets | 3,105,874 | 3,720,821 |
Accrued payroll and payroll taxes | 235,661 | 574,019 |
Accounts payable and accrued expenses | 125,877 | 377,928 |
Accrued warranty expense | 331,370 | 359,654 |
Deferred revenue | 26,250 | 24,000 |
Total current liabilities | 719,158 | 1,335,601 |
Long-term liabilities | 116,100 | 117,436 |
Total liabilities | 835,258 | 1,453,037 |
Common stock, par value $.01 per share, authorized 60,000,000 shares, issued and outstanding 32,032,753 and 32,025,753 shares, respectively | 320,328 | 320,258 |
Capital in excess of par value | 11,632,648 | 11,631,732 |
Accumulated deficit | (9,783,284) | (9,785,130) |
Total shareholders' equity | 2,190,166 | 2,187,334 |
Total liabilities and shareholders' equity | $ 3,105,874 | $ 3,720,821 |
Condensed Balance Sheets (Unau3
Condensed Balance Sheets (Unaudited) (Parentheticals) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
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) | 32,032,753 | 32,025,753 |
Common stock, outstanding (in shares) | 32,032,753 | 32,025,753 |
Condensed Statements of Operati
Condensed Statements of Operations and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Engineering [Member] | ||
Expenses: | ||
Engineering | $ 323,913 | $ 422,415 |
Contract Revenues | 987,929 | 2,476,039 |
Cost of sales | 324,328 | 1,461,905 |
Gross margin | 663,601 | 1,014,134 |
Engineering | 20,897 | 1,544 |
General and administrative | 336,148 | 322,023 |
Total expenses | 660,061 | 744,438 |
Income from operations | 3,540 | 269,696 |
Other income: | ||
Interest | 1,449 | 93 |
Net income before income taxes | 4,989 | 269,789 |
Income tax expense | 3,143 | 129,000 |
Net income | $ 1,846 | $ 140,789 |
Income per common share - basic (in dollars per share) | ||
Basic weighted average number of shares outstanding (in shares) | 32,030,138 | 31,947,753 |
Income per common share - diluted (in dollars per share) | ||
Diluted weighted average number of shares outstanding (in shares) | 35,608,255 | 35,553,766 |
Condensed Statements of Cash Fl
Condensed Statements of Cash Flows - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities | ||
Net income | $ 1,846 | $ 140,789 |
Depreciation and amortization | 9,456 | 1,785 |
Deferred tax expense | 1,381 | 30,000 |
Share-based compensation expense | 636 | 681 |
Changes in assets and liabilities: | ||
Decrease in receivables on government contracts | 25,130 | 399,456 |
(Increase) in prepaid expenses and other current assets | (30,250) | (7,424) |
Decrease in accrued payroll and payroll taxes | (338,358) | (146,875) |
Decrease in accounts payable and accrued expenses | (252,051) | (446,605) |
Increase (Decrease) in accrued warranty expense | (28,284) | $ 29,900 |
Increase in deferred revenue | 2,250 | |
Decrease in long-term liabilities | (1,336) | $ (1,573) |
Net cash (used in) provided by operating activities | $ (609,580) | 134 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (2,693) | |
Net cash used in investing activities | $ (2,693) | |
Cash flows from financing activities: | ||
Exercise of stock options | $ 350 | |
Net cash provided by financing activities | 350 | |
Net decrease in cash and cash equivalents | (609,230) | $ (2,559) |
Cash and cash equivalents, beginning of period | 2,858,655 | 1,161,634 |
Cash and cash equivalents, end of period | 2,249,425 | 1,159,075 |
Supplement cash flow information: | ||
Cash paid during the period for income taxes | $ 44,500 | $ 7,900 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015. In the opinion of the Company’s management, the accompanying unaudited interim condensed financial statements contain all adjustments, consisting solely of those which are of a normal recurring nature, necessary to present fairly its financial position as of March 31, 2016, and the results of its operations for the three months ended March 31, 2016 and 2015 and cash flows for the three months ended March 31, 2016 and 2015. Changes in the Company’s stockholders’ equity from December 31, 2015 to March 31, 2016 are a result of share-based compensation expense of $636, proceeds received upon the exercise of options of $350, and net income of $1,846. Interim results are not necessarily indicative of results for the full fiscal year. |
Note 2 - Recent Accounting Pron
Note 2 - Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | Note 2 – Recent Accounting Pronouncements There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s condensed financial statements, from those disclosed in the Company’s 2015 Annual Report on Form 10-K |
Note 3 - Significant Accounting
Note 3 - Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 The Company recognizes revenue as it relates to the license of software when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collection is probable. The sale and/or license of software products and technology is deemed to have occurred when a customer either has taken possession of or has access to take immediate possession of the software or technology. Software license agreements include post-contract customer support ("PCS"). For the Company’s software and software-related multiple element arrangements, where customers purchase both software related products and software related services, the Company uses vendor-specific objective evidence (“VSOE”) of fair value for software and software-related services to separate the elements and account for them separately. VSOE exists when a company can support what the fair value of its software and/or software-related services is based on evidence of the prices charged when the same elements are sold separately. VSOE of fair value is required, generally, in order to separate the accounting for various elements in a software and related services arrangement. The Company has established VSOE of fair value for the majority of the PCS, professional services, and training. Given the limited number of sales related to this software, and the fact that the Company does not sell the PCS element separately, there is no VSOE currently available to bifurcate the PCS element from the contract. In accordance with ASC 985-605-25-10a, the fees earned from sale of licenses to which the only undelivered element is the PCS, are recognized ratably over the life of the contract. Revenues from the sale of software licenses for the three months ended March 31, 2016 and 2015 were $27,750 and $0, respectively. At March 31, 2016 and December 31, 2015, deferred revenues amounted to $26,250 and $24,000, respectively. Unbilled revenue reflects work performed, but not billed at the time, per contractual requirements. As of March 31, 2016 and December 31, 2015, the Company had unbilled revenues of $60,636 and $60,857, respectively which are 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 March 31, 2016 and December 31, 2015, there were $0 and $125,157, respectively, of 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 March 31, 2016 and 2015, the Company recognized a net warranty (recovery) expense, which is a component of the Company’s cost of sales of $(20,801) and $29,900, respectively. Since the inception of the ADEPT IDIQ contract in March 2010, the Company has delivered 189 ADEPT units. As of March 31, 2016, there are 26 ADEPT units that remain under the limited warranty coverage. The following table reflects the reserve for product warranty activity as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Beginning balance $ 359,654 $ 33,500 Provision for product warranty - 434,000 Product warranty expirations (20,801 ) (33,500 ) Product warranty costs paid (7,483 ) (74,346 ) Ending balance $ 331,370 $ 359,654 Research and Development Expense 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 $20,897 and $1,544 for the three months ended March 31, 2016 and 2015, respectively. Intangible Assets The majority of the Company’s intangible assets is a license acquired during 2015. In July 2015, the Company purchased certain software products, intellectual property and related assets from VSE Corporation. The primary software programs purchased were the Prognostics Framework (PF) and Diagnostic Profiler (DP) programs. The Diagnostic Profiler software is used worldwide by several multinational companies for optimized maintenance of diverse product lines. The Diagnostic Profiler is also used by the US Air Force for depot test programs, and Prognostics Framework is used by the US Army for several missile defense systems. Licenses are amortized using a straight-line method over their estimated life of six years. For the three months ended March 31, 2016 and 2015, amortization expense related to the Company’s license amounted to $5,250 and $0, respectively, and is included in general and administrative expenses on the Statements of Operations and Comprehensive Income. |
Note 4 - Income Per Share
Note 4 - Income Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 4 – Income Per Share 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. The table below sets forth the calculation of the percentage of net earnings allocable to common shareholders under the two-class method: Three Months Ended, March 31, 2016 2015 Basic earnings per common share: Net income allocable to common shareholders 1,846 140,789 Portion allocable to common shareholders 99.2 % 99.2 % Net income allocable to common shareholders 1,831 139,663 Weighted average basic shares outstanding 32,030,138 31,947,753 Basic income per common share $ - $ - Dilutive earnings per common share: Net income allocable to common shareholders 1,831 139,663 Add: undistributed earnings allocated to participating securities 15 1,126 Numerator for diluted earnings per common share 1,846 140,789 Weighted average shares outstanding - basic 32,030,138 31,947,753 Diluted effect: Stock options 14,000 28,000 Unvested restricted stock units 1,818 15,714 Conversion equivalent of dilutive Series B Convertible Preferred Stock 3,307,299 3,307,299 Conversion equivalent of dilutive Convertible Preferred Stock 255,000 255,000 Weighted average dilutive shares outstanding 35,608,255 35,553,766 Diluted income per common share $ - $ - The table below sets forth the calculation of the percentage of net earnings allocable to common shareholders under the two-class method: Three Months Ended, March 31, 2016 2015 Numerator: Weighted average participating common shares 32,030,138 31,947,753 Denominator: Weighted average participating common shares 32,030,138 31,947,753 Add: Weighted average shares of Convertible Preferred Stock 255,000 255,000 Weighted average participating shares 32,285,138 32,202,753 Portion allocable to common shareholders 99.2 % 99.2 % Mikros Systems Corporation Notes to Condensed Financial Statements (unaudited) Diluted net income per share for the three months ended March 31, 2016 and 2015 does not reflect the following potential common shares, as the effect would be antidilutive. Three Months Ended, March 31, 2016 2015 Stock options 610,000 610,000 |
Note 5 - Income Tax Matters
Note 5 - Income Tax Matters | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 5 – Income Tax Matters The Company conducts an on-going analysis to review its net deferred tax asset and the need for a related valuation allowance. As a result of this analysis and the actual results of operations, the Company has decreased its net deferred tax assets by $1,381 and $30,000 during the three months ended March 31, 2016 and 2015, respectively. The change in deferred tax assets is attributable to the reversal of various book/tax differences. utilization of income tax attributes, primarily federal net operating losses, as the Company anticipates annual earnings from operations to continue. At March 31, 2016, the Company estimated its annual effective tax rate for 2016 to be 63.0%. The Company recognized a tax expense of $3,143 for the three months ended March 31, 2016 primarily due to expected net income for the remainder of 2016. At March 31, 2016, the difference from the expected federal income tax rate is attributable to state income taxes and certain permanent book-tax differences. |
Note 6 - Share-based Compensati
Note 6 - Share-based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 6 – Share-Based Compensation During the three months ended March 31, 2016, the Company did not issue any stock option awards. During the three months ended March 31, 2016, 7,000 options were exercised for proceeds of $350. The Company recognized stock-based compensation expense for stock options of $35 and $37 for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there were outstanding options to purchase 624,000 shares of common stock. The intrinsic value of the options as of March 31, 2016 is $840. As of March 31, 2016, there were 44,000 restricted stock awards outstanding. The Company recognized stock-based compensation expense for restricted stock of $601 and $644 for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was $1,083 of unrecognized stock-based compensation expense related to restricted stock awards outstanding. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 The Company recognizes revenue as it relates to the license of software when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the price is fixed or determinable, and collection is probable. The sale and/or license of software products and technology is deemed to have occurred when a customer either has taken possession of or has access to take immediate possession of the software or technology. Software license agreements include post-contract customer support ("PCS"). For the Company’s software and software-related multiple element arrangements, where customers purchase both software related products and software related services, the Company uses vendor-specific objective evidence (“VSOE”) of fair value for software and software-related services to separate the elements and account for them separately. VSOE exists when a company can support what the fair value of its software and/or software-related services is based on evidence of the prices charged when the same elements are sold separately. VSOE of fair value is required, generally, in order to separate the accounting for various elements in a software and related services arrangement. The Company has established VSOE of fair value for the majority of the PCS, professional services, and training. Given the limited number of sales related to this software, and the fact that the Company does not sell the PCS element separately, there is no VSOE currently available to bifurcate the PCS element from the contract. In accordance with ASC 985-605-25-10a, the fees earned from sale of licenses to which the only undelivered element is the PCS, are recognized ratably over the life of the contract. Revenues from the sale of software licenses for the three months ended March 31, 2016 and 2015 were $27,750 and $0, respectively. At March 31, 2016 and December 31, 2015, deferred revenues amounted to $26,250 and $24,000, respectively. Unbilled revenue reflects work performed, but not billed at the time, per contractual requirements. As of March 31, 2016 and December 31, 2015, the Company had unbilled revenues of $60,636 and $60,857, respectively which are 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 March 31, 2016 and December 31, 2015, there were $0 and $125,157, respectively, of 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 March 31, 2016 and 2015, the Company recognized a net warranty (recovery) expense, which is a component of the Company’s cost of sales of $(20,801) and $29,900, respectively. Since the inception of the ADEPT IDIQ contract in March 2010, the Company has delivered 189 ADEPT units. As of March 31, 2016, there are 26 ADEPT units that remain under the limited warranty coverage. The following table reflects the reserve for product warranty activity as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Beginning balance $ 359,654 $ 33,500 Provision for product warranty - 434,000 Product warranty expirations (20,801 ) (33,500 ) Product warranty costs paid (7,483 ) (74,346 ) Ending balance $ 331,370 $ 359,654 |
Research and Development Expense, Policy [Policy Text Block] | Research and Development Expense 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 $20,897 and $1,544 for the three months ended March 31, 2016 and 2015, respectively. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Intangible Assets The majority of the Company’s intangible assets is a license acquired during 2015. In July 2015, the Company purchased certain software products, intellectual property and related assets from VSE Corporation. The primary software programs purchased were the Prognostics Framework (PF) and Diagnostic Profiler (DP) programs. The Diagnostic Profiler software is used worldwide by several multinational companies for optimized maintenance of diverse product lines. The Diagnostic Profiler is also used by the US Air Force for depot test programs, and Prognostics Framework is used by the US Army for several missile defense systems. Licenses are amortized using a straight-line method over their estimated life of six years. For the three months ended March 31, 2016 and 2015, amortization expense related to the Company’s license amounted to $5,250 and $0, respectively, and is included in general and administrative expenses on the Statements of Operations and Comprehensive Income. |
Note 3 - Significant Accounti13
Note 3 - Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | March 31, 2016 December 31, 2015 Beginning balance $ 359,654 $ 33,500 Provision for product warranty - 434,000 Product warranty expirations (20,801 ) (33,500 ) Product warranty costs paid (7,483 ) (74,346 ) Ending balance $ 331,370 $ 359,654 |
Note 4 - Income Per Share (Tabl
Note 4 - Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended, March 31, 2016 2015 Basic earnings per common share: Net income allocable to common shareholders 1,846 140,789 Portion allocable to common shareholders 99.2 % 99.2 % Net income allocable to common shareholders 1,831 139,663 Weighted average basic shares outstanding 32,030,138 31,947,753 Basic income per common share $ - $ - Dilutive earnings per common share: Net income allocable to common shareholders 1,831 139,663 Add: undistributed earnings allocated to participating securities 15 1,126 Numerator for diluted earnings per common share 1,846 140,789 Weighted average shares outstanding - basic 32,030,138 31,947,753 Diluted effect: Stock options 14,000 28,000 Unvested restricted stock units 1,818 15,714 Conversion equivalent of dilutive Series B Convertible Preferred Stock 3,307,299 3,307,299 Conversion equivalent of dilutive Convertible Preferred Stock 255,000 255,000 Weighted average dilutive shares outstanding 35,608,255 35,553,766 Diluted income per common share $ - $ - |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | Three Months Ended, March 31, 2016 2015 Numerator: Weighted average participating common shares 32,030,138 31,947,753 Denominator: Weighted average participating common shares 32,030,138 31,947,753 Add: Weighted average shares of Convertible Preferred Stock 255,000 255,000 Weighted average participating shares 32,285,138 32,202,753 Portion allocable to common shareholders 99.2 % 99.2 % |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three Months Ended, March 31, 2016 2015 Stock options 610,000 610,000 |
Note 1 - Basis of Presentation
Note 1 - Basis of Presentation (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allocated Share-based Compensation Expense | $ 636 | $ 681 |
Proceeds from Stock Options Exercised | 350 | |
Net Income (Loss) Attributable to Parent | $ 1,846 | $ 140,789 |
Note 3 - Significant Accounti16
Note 3 - Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Licenses [Member] | |||
Finite-Lived Intangible Asset, Useful Life | 6 years | ||
Amortization of Intangible Assets | $ 5,250 | $ 0 | |
Licenses Revenue | 27,750 | 0 | |
Deferred Revenue, Current | 26,250 | $ 24,000 | |
Government Contract Receivable, Unbilled Amounts | 60,636 | 60,857 | |
Customer Advances, Current | 0 | $ 125,157 | |
Product Warranty (Recovery) Expense | (20,801) | 29,900 | |
Research and Development Expense | $ 20,897 | $ 1,544 |
Note 3 - Significant Accounti17
Note 3 - Significant Accounting Policies - Reserve for Product Warranty Activity (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Beginning balance | $ 359,654 | $ 33,500 |
Provision for product warranty | 434,000 | |
Product warranty expirations | $ (20,801) | (33,500) |
Product warranty costs paid | (7,483) | (74,346) |
Ending balance | $ 331,370 | $ 359,654 |
Note 4 - Income Per Share - Wei
Note 4 - Income Per Share - Weighted Average Shares Outstanding (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Restricted Stock Units (RSUs) [Member] | ||
Diluted effect: | ||
Unvested restricted stock units (in shares) | 1,818 | 15,714 |
Preferred Stock Series B Convertible [Member] | ||
Diluted effect: | ||
Diluted effect, Conversion of preferred stock (in shares) | 3,307,299 | 3,307,299 |
Convertible Preferred Stock [Member] | ||
Diluted effect: | ||
Diluted effect, Conversion of preferred stock (in shares) | 255,000 | 255,000 |
Net Income (Loss) Attributable to Parent | $ 1,846 | $ 140,789 |
Portion allocable to common shareholders | 99.20% | 99.20% |
Net income allocable to common shareholders | $ 1,831 | $ 139,663 |
Weighted average basic shares outstanding (in shares) | 32,030,138 | 31,947,753 |
Basic income per common share (in dollars per share) | ||
Net income allocable to common shareholders | $ 1,831 | $ 139,663 |
Add: undistributed earnings allocated to participating securities | 15 | 1,126 |
Numerator for diluted earnings per common share | $ 1,846 | $ 140,789 |
Weighted average basic shares outstanding (in shares) | 32,030,138 | 31,947,753 |
Stock options (in shares) | 14,000 | 28,000 |
Diluted effect, Conversion of preferred stock (in shares) | 255,000 | 255,000 |
Weighted average dilutive shares outstanding (in shares) | 35,608,255 | 35,553,766 |
Diluted income per common share (in dollars per share) |
Note 4 - Income Per Share - Per
Note 4 - Income Per Share - Percentage of Net Earnings Allocable to Common Shareholders (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Weighted average participating common shares (in shares) | 32,030,138 | 31,947,753 |
Weighted average participating common shares (in shares) | 32,030,138 | 31,947,753 |
Diluted effect, Conversion of preferred stock (in shares) | 255,000 | 255,000 |
Weighted average participating shares (in shares) | 32,285,138 | 32,202,753 |
Portion allocable to common shareholders | 99.20% | 99.20% |
Note 4 - Income Per Share - Dil
Note 4 - Income Per Share - Diluted Net Earnings (Loss) Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Option [Member] | ||
Antidilutive shares (in shares) (in shares) | 610,000 | 610,000 |
Note 5 - Income Tax Matters (De
Note 5 - Income Tax Matters (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ (1,381) | $ (30,000) |
Effective Income Tax Rate Reconciliation, Percent | 63.00% | |
Income Tax Expense (Benefit) | $ 3,143 | $ 129,000 |
Note 6 - Share-based Compensa22
Note 6 - Share-based Compensation (Details Textual) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Employee Stock Option [Member] | ||
Allocated Share-based Compensation Expense | $ 35 | $ 37 |
Restricted Stock [Member] | ||
Allocated Share-based Compensation Expense | $ 601 | $ 644 |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 44,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 1,083 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 7,000 | |
Proceeds from Stock Options Exercised | $ 350 | |
Allocated Share-based Compensation Expense | $ 636 | $ 681 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 624,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 840 |