Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 10, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Entity Registrant Name | RESEARCH FRONTIERS INC | ||
Entity Central Index Key | 793524 | ||
Current Fiscal Year End Date | -19 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 23,974,646 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $105,661,887 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current assets: | ||
Cash and cash equivalents | $7,569,537 | $5,866,123 |
Short-term investments | 1,501,554 | 5,076,930 |
Royalty receivables, net of reserves of $173,921 in 2013 and $92,723 in 2012 | 1,175,218 | 867,162 |
Prepaid expenses and other current assets | 121,252 | 135,080 |
Total current assets | 10,367,561 | 11,945,295 |
Fixed assets, net | 660,201 | 64,365 |
Long-term investments | 1,503,525 | |
Deposits and other assets | 33,567 | 22,605 |
Total assets | 12,564,854 | 12,032,265 |
Current liabilities: | ||
Accounts payable | 159,312 | 56,603 |
Accrued expenses and other | 323,372 | 80,725 |
Deferred revenue | 25,000 | |
Total current liabilities | 482,684 | 162,328 |
Shareholders' equity: | ||
Common stock, par value $0.0001 per share; authorized 100,000,000 shares, issued and outstanding 23,924,465 and 23,109,665 shares for 2014 and 2013 | 2,392 | 2,311 |
Additional paid-in capital | 110,210,480 | 105,584,606 |
Accumulated deficit | -98,130,702 | -93,716,980 |
Total shareholders' equity | 12,082,170 | 11,869,937 |
Total liabilities and shareholders' equity | $12,564,854 | $12,032,265 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Consolidated Balance Sheets [Abstract] | |||
Royalty receivables, reserves | $173,921 | $92,723 | |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, shares issued | 23,924,465 | 23,109,665 | |
Common stock, shares outstanding | 23,924,465 | 23,109,665 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Consolidated Statements of Operations [Abstract] | |||
Fee income | $1,598,799 | $2,161,359 | $1,957,336 |
Operating expenses | 4,425,718 | 6,036,792 | 4,101,592 |
Research and development | 1,621,964 | 2,203,326 | 1,671,872 |
Total Expenses | 6,047,682 | 8,240,118 | 5,773,464 |
Operating loss | -4,448,883 | -6,078,759 | -3,816,128 |
Net investment income | 35,161 | 38,148 | 33,171 |
Loss before income tax benefit | -4,413,722 | -6,040,611 | -3,782,957 |
Income tax benefit | 613,397 | ||
Net loss | ($4,413,722) | ($6,040,611) | ($3,169,560) |
Basic and diluted net loss per common share | ($0.19) | ($0.26) | ($0.16) |
Basic and diluted weighted average number of common shares outstanding | 23,663,229 | 22,946,019 | 20,125,309 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] |
Balance at Dec. 31, 2011 | $4,107,198 | $1,854 | $88,612,153 | ($84,506,809) |
Balance, shares at Dec. 31, 2011 | 18,544,355 | |||
Issuances of common stock | 12,250,500 | 374 | 12,250,126 | |
Issuances of common stock, shares | 3,739,227 | 3,739,227 | ||
Share-based compensation | 984,537 | 37 | 984,500 | |
Share-based compensation, shares | 363,200 | |||
Net Loss | -3,169,560 | -3,169,560 | ||
Balance at Dec. 31, 2012 | 14,172,675 | 2,265 | 101,846,779 | -87,676,369 |
Balance, shares at Dec. 31, 2012 | 22,646,782 | |||
Exercise of options and warrants | 822,969 | 18 | 822,951 | |
Exercise of options and warrants, shares | 179,983 | 179,983 | ||
Share-based compensation | 2,914,904 | 28 | 2,914,876 | |
Share-based compensation, shares | 282,900 | |||
Net Loss | -6,040,611 | -6,040,611 | ||
Balance at Dec. 31, 2013 | 11,869,937 | 2,311 | 105,584,606 | -93,716,980 |
Balance, shares at Dec. 31, 2013 | 23,109,665 | |||
Issuances of common stock | 3,278,250 | 75 | 3,278,175 | |
Issuances of common stock, shares | 750,000 | |||
Exercise of options and warrants | 304,788 | 6 | 304,782 | |
Exercise of options and warrants, shares | 64,800 | 64,800 | ||
Share-based compensation | 1,042,917 | 1,042,917 | ||
Share-based compensation, shares | ||||
Net Loss | -4,413,722 | -4,413,722 | ||
Balance at Dec. 31, 2014 | $12,082,170 | $2,392 | $110,210,480 | ($98,130,702) |
Balance, shares at Dec. 31, 2014 | 23,924,465 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash flows from operating activities: | |||
Net loss | ($4,413,722) | ($6,040,611) | ($3,169,560) |
Adjustments to reconcile net loss to net cash used in operating activities: | |||
Depreciation and amortization | 31,824 | 45,212 | 34,963 |
Stock based compensation | 1,042,917 | 2,914,904 | 984,537 |
Bad debts | 131,250 | 81,198 | |
Change in assets and liabilities: | |||
Royalty receivables | -439,306 | -260,042 | -354,268 |
Prepaid expenses and other current assets | 2,866 | 94,544 | -107,218 |
Accounts payable and accrued expenses | 345,356 | -80,064 | -67,547 |
Deferred revenue | -25,000 | ||
Net cash used in operating activities | -3,323,815 | -3,244,859 | -2,679,093 |
Cash flows from investing activities: | |||
Purchases of fixed assets | -627,660 | -50,536 | -11,576 |
Purchase of investments | -3,005,079 | -24,009 | -3,797,865 |
Proceeds from sale of investments | 5,076,930 | ||
Note and interest receivable on SPD Control Systems | 224,903 | ||
Net cash provided by (used in) investing activities | 1,444,191 | -74,545 | -3,584,538 |
Cash flows from financing activities: | |||
Net proceeds from issuances of common stock and exercise of options and warrants | 3,583,038 | 795,294 | 12,250,500 |
Net cash provided by financing activities | 3,583,038 | 795,294 | 12,250,500 |
Net increase (decrease) in cash and cash equivalents | 1,703,414 | -2,524,110 | 5,986,869 |
Cash and cash equivalents at beginning of year | 5,866,123 | 8,390,233 | 2,403,364 |
Cash and cash equivalents at end of year | $7,569,537 | $5,866,123 | $8,390,233 |
Business_and_Basis_for_Present
Business and Basis for Presentation | 12 Months Ended |
Dec. 31, 2014 | |
Business and Basis for Presentation [Abstract] | |
Business and Basis for Presentation | (1) Business and Basis for Presentation |
Research Frontiers Incorporated (“Research Frontiers” or the “Company”) operates in a single business segment which is engaged in the development and marketing of technology and devices to control the flow of light. Such devices, often referred to as "light valves" or suspended particle devices (SPDs), use colloidal particles that are either incorporated within a liquid suspension or a film, which is usually enclosed between two sheets of glass or plastic having transparent, electrically conductive coatings on the facing surfaces thereof. At least one of the two sheets is transparent. SPD technology, made possible by a flexible light-control film invented by Research Frontiers, allows the user to instantly and precisely control the shading of glass/plastic manually or automatically. SPD technology has numerous product applications, including: SPD-Smart™ windows, sunshades, skylights and interior partitions for homes and buildings; automotive windows, sunroofs, sun-visors, sunshades, rear-view mirrors, instrument panels and navigation systems; aircraft windows; eyewear products; and flat panel displays for electronic products. SPD-Smart light control film is now being developed for, or used in, architectural, automotive, marine, aerospace and appliance applications. | |
The Company has historically utilized its cash, cash equivalents, short-term investments, and the proceeds from the sale of its investments to fund its research and development of SPD light valves, for marketing initiatives, and for other working capital purposes. The Company's working capital and capital requirements depend upon numerous factors, including the results of research and development activities, competitive and technological developments, the timing and cost of patent filings, and the development of new licensees and changes in the Company's relationships with its existing licensees. The degree of dependence of the Company's working capital requirements on each of the foregoing factors cannot be quantified; increased research and development activities and related costs would increase such requirements; the addition of new licensees may provide additional working capital or working capital requirements, and changes in relationships with existing licensees would have a favorable or negative impact depending upon the nature of such changes. There can be no assurance that expenditures will not exceed the anticipated amounts or that additional financing, if required, will be available when needed or, if available, that its terms will be favorable or acceptable to the Company. Eventual success of the Company and generation of positive cash flow will be dependent upon the commercialization of products using the Company's technology by the Company's licensees and payments of continuing royalties on account thereof. To date, the Company has not generated sufficient revenue from its licensees to fund its operations. | |
During the year ended December 31, 2014, it was noted that the Company was applying the expected term of warrants granted in 2009 to certain consultants, rather than the contractual term, which is required by GAAP. The result of using expected terms of the warrants was an increase to previously reported consultant compensation charges included in Operating Expenses in the Company's Consolidated Statement of Operations. The impact of this change to the prior periods is not considered material to each of the periods presented. As a consequence, the Company is revising its financial presentation herein as follows: (i(i) for the year ended December 31, 2013 and 2012 consultant compensation charges have been increased by $195,524 and $105,959, respectively, (ii) the Company's balance sheet as of December 31, 2013 has been revised by increasing Additional Paid in Capital and Accumulated Deficit each by $400,006 to reflect the use of this contractual term valuation assumption (iii) the Company's Statement of Shareholders' Equity has been revised to increase Accumulated Deficit and Additional Pain In Capital as of December 31, 2013, 2012 and 2011 by $195,524, $105,959 and $98,523, respectively. This adjustment had no impact on the Company's use of cash or cash flow. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies | ||||||||||||||||||
(a) Cash and Cash Equivalents | |||||||||||||||||||
The Company considers securities purchased with original maturities of three months or less to be cash equivalents. Cash equivalents consist of short-term investments in money market accounts at December 31, 2014 and 2013. | |||||||||||||||||||
Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. FDIC insurance coverage is $250,000 per depositor at each financial institution, and our non-interest bearing cash balances may again exceed federally insured limits. Amounts on deposit in excess of federally insured limits at December 31, 2014 and 2013 is approximately $6.8 million $5.6 million, respectively. | |||||||||||||||||||
(b) Short-term/Long-term Investments | |||||||||||||||||||
The Company classifies investments in marketable securities as trading, available-for-sale or held-to-maturity at the time of purchase and periodically re-evaluates such classifications. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. Held-to-maturity securities are recorded at cost and are adjusted for the amortization or accretion of premiums or discounts over the life of the related security. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) until realized. In determining realized gains and losses, the cost of securities sold is based on the specific identification method. Interest and dividends on the investments are accrued at the balance sheet date. At December 31, 2014 and 2013 all investments were classified as held to maturity and consisted of the following: | |||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Certificates of Deposit | Maturity | Value of Held to Maturity | Value of Held to Maturity | ||||||||||||||||
Investment | Date | Investments (based on cost) | Investments (based on cost) | ||||||||||||||||
$ | 1,501,554 | 8/27/15 | $ | 1,501,554 | $ | - | |||||||||||||
$ | 2,011,967 | 10/17/14 | $ | - | $ | 2,011,967 | |||||||||||||
$ | 2,007,997 | 4/18/14 | $ | - | $ | 2,007,997 | |||||||||||||
$ | 502,821 | 6/29/14 | $ | - | $ | 502,821 | |||||||||||||
$ | 301,695 | 4/6/14 | $ | - | $ | 301,695 | |||||||||||||
$ | 252,450 | 3/29/14 | $ | - | $ | 252,450 | |||||||||||||
$ | 3,005,079 | $ | 5,076,930 | ||||||||||||||||
At December 31, 2014 the Company had a certificate of deposit investment in the amount of $1,503,525 (based on cost) with a maturity date of August 27, 2016 which is classified as a long-term investments on the balance sheet. | |||||||||||||||||||
(c) Royalties Receivable | |||||||||||||||||||
Royalties receivable are recorded at the amounts specified within the license agreements when the collectability of the receivable is reasonably assured. The receivables do not bear interest. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing royalties receivable. The Company determines the allowance based on historical write off experience. The Company reviews its allowance for doubtful accounts periodically. Past due accounts are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |||||||||||||||||||
(d) Fixed Assets | |||||||||||||||||||
Fixed assets are carried at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. | |||||||||||||||||||
(e) Revenue Recognition/Fee Income | |||||||||||||||||||
The Company has entered into a number of license agreements covering its light control technology. The Company receives minimum annual royalties under certain license agreements and records fee income on a ratable basis each quarter. In instances when sales of licensed products by its licensees exceed minimum annual royalties, the Company recognizes fee income as the amounts have been earned. Certain of the fees are accrued by, or paid to, the Company in advance of the period in which they are earned resulting in deferred revenue. Such excess amounts are recorded as deferred revenue and recognized into income in future periods as earned. | |||||||||||||||||||
Fee income represents amounts earned by the Company under various license and other agreements (note 8) relating to technology developed by the Company. During 2014, five licensees accounted for 36%, 11%, 9%, 9%, and 5%, respectively of fee income recognized during the year. During 2013 six licensees accounted for 40%, 12%, 6% and 6%, 5%, and 5% respectively of fee income recognized for the year. During 2012, four licensees accounted for 62%, 6%, 5% and 5%, respectively, of fee income recognized for the year. | |||||||||||||||||||
(f) Basic and Diluted Loss Per Common Share | |||||||||||||||||||
Basic earnings (loss) per share excludes any dilution. It is based upon the weighted average number of common shares outstanding during the period. Dilutive earnings (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company's dilutive loss per share equals basic loss per share for each of the years in the three-year period ended December 31, 2014 because all common stock equivalents (i.e., options and warrants) were antidilutive in those periods. The number of options and warrants that were not included because their effect is antidilutive was 2,924,419, 2,860,219, and 2,630,002, for 2014, 2013, and 2012, respectively. | |||||||||||||||||||
(g) Research and Development Costs | |||||||||||||||||||
Research and development costs are charged to expense as incurred. | |||||||||||||||||||
(h) Patent Costs | |||||||||||||||||||
The Company expenses costs relating to the development or acquisition of patents due to the uncertainty of the recoverability of these items. | |||||||||||||||||||
(i) Use of Estimates | |||||||||||||||||||
The preparation of the Company's consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during this period. Actual results could differ from those estimates. | |||||||||||||||||||
(j) Income Taxes | |||||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||||||||
In accordance with ASC Topic 740 (FIN 48), we recognize tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in tax returns that do not meet these recognition and measurement standards. We classify accrued interest and penalties related to any unrecognized tax benefits in our income tax provision. At December 31, 2014 and 2013, we do not have accrued interest and penalties related to any unrecognized tax benefits. We do not believe we have any uncertain tax positions as of December 31, 2014 and 2013. | |||||||||||||||||||
The tax years subject to examination by major tax jurisdictions include the years 2010 and forward by the U.S. Internal Revenue Service and certain states. The Company is not currently being audited by any tax jurisdiction. | |||||||||||||||||||
(k) Fair Value of Financial Instruments | |||||||||||||||||||
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The carrying amounts of all financial instruments classified as a current asset or current liability are deemed to approximate fair value because of the short maturity of those instruments. | |||||||||||||||||||
(l) Equity-Based Compensation | |||||||||||||||||||
We recognize all stock-based compensation as an expense in the financial statements and such costs are measured at the fair value of the award at the date of grant. In addition to reflecting compensation expense for new share-based payment awards, expense is also recognized to reflect the remaining vesting period of awards that had been granted in prior periods. Tax benefits related to stock option exercises are reflected as financing cash inflows instead of operating cash inflows. | |||||||||||||||||||
The exercise price for stock options granted are generally set at the average for the high and low trading prices of the Company's common stock on the trading date immediately prior to the date of grant, and the related number of shares granted are fixed at the date of grant. | |||||||||||||||||||
In order to determine the fair value of stock options on the date of grant, the Company uses the Black-Scholes option-pricing model. Inherent in this model are assumptions related to expected stock-price volatility, option term, risk-free interest rate and dividend yield. While the risk-free interest rate and dividend yield are less subjective assumptions that are based on factual data derived from public sources, the expected stock-price volatility and option term assumptions require a greater level of judgment. | |||||||||||||||||||
In connection with the employee stock options and restricted stock grants, the Company charged $1,010,489, $2,545,060, and $873,888, to operations during the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||||
Non-employee options are valued at fair value at the time that the related services are provided using the Black-Scholes option valuation model and marked to market quarterly using the Black-Scholes option valuation model. The Company incurred a charge (benefit) to operations of $32,428, $369,844, and $110,649, for 2014, 2013, and 2012, respectively in connection with these warrants and non-employee options. | |||||||||||||||||||
(m) Restricted Stock | |||||||||||||||||||
Compensation cost for restricted stock is measured using the quoted market price of the Company's common stock at the date the common stock is granted. The compensation cost is recognized over the period between the issue date and the date any restrictions lapse. Restricted stock is included in total common shares outstanding upon the lapse of any restrictions. | |||||||||||||||||||
(n) Impairment of Long-Lived Assets | |||||||||||||||||||
The Company reviews long-lived assets to determine whether an event or change in circumstances indicates the carrying value of the asset may not be recoverable. The Company bases its evaluation on such impairment indicators as the nature of the assets, the future economic benefit of the assets and any historical or future profitability measurements, as well as other external market conditions or factors that may be present. | |||||||||||||||||||
(o) Fair Value Measurements | |||||||||||||||||||
Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurements and Disclosures” (“ASC Topic 820”) establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. ASC Topic 820 applies under other previously issued accounting pronouncements that require or permit fair value measurements but does not require any new fair value measurements. | |||||||||||||||||||
ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). | |||||||||||||||||||
We value financial instruments using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets or liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |||||||||||||||||||
Financial assets accounted for at fair value on a recurring basis at December 31, 2014 and 2013, include cash and cash equivalents of approximately $7.6 million and $5.9 million, respectively, as well as short term investments of $1.5 million and $5.1 million in 2014 and 2013, respectively. The carrying value of these assets approximates fair value due to the short-term maturity of these instruments. | |||||||||||||||||||
The carrying amount of the long-term investments of $1.5 million at December 31, 2014 approximates the fair-value, as the interest rate obtained by the Company approximates the prevailing rate for similar investments. | |||||||||||||||||||
(p) Recent Accounting Pronouncements | |||||||||||||||||||
New Accounting Standards | |||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606). The amendments in this Update establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard's core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017. | |||||||||||||||||||
Fixed_Assets
Fixed Assets | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Fixed Assets [Abstract] | |||||||||||
Fixed Assets | (3) Fixed Assets | ||||||||||
Fixed assets and their estimated useful lives as of December 31, 2014 and 2013 are as follows: | |||||||||||
2014 | 2013 | Estimated useful life | |||||||||
Equipment and furniture | $ | 1,362,308 | $ | 1,351,877 | 5 years | ||||||
Trade show materials | 502,789 | - | 5 years | ||||||||
Life of lease or estimated | |||||||||||
Leasehold Improvements | 552,185 | 437,745 | life of asset if shorter | ||||||||
1,914,493 | 1,789,622 | ||||||||||
Less accumulated depreciation | |||||||||||
and amortization | (1,757,081 | ) | (1,725,257 | ) | |||||||
$ | 157,412 | $ | 64,365 |
Accrued_Expenses_and_Other
Accrued Expenses and Other | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accrued Expenses and Other [Abstract] | |||||||||
Accrued Expenses and Other | (4) Accrued Expenses and Other | ||||||||
Accrued expenses consist of the following at December 31, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Payroll, bonuses and related benefits | $ | 206,427 | $ | 75,966 | |||||
Professional services | 29,400 | 4,400 | |||||||
Deferred rent | 75,569 | - | |||||||
Other | 11,976 | 359 | |||||||
$ | 323,372 | $ | 80,725 |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Income Taxes | (5) Income Taxes | |||||||||
Since inception, the Company has incurred losses from operations and as a result has not recorded income tax expense. Benefits related to net operating loss carry-forwards and deferred items have been fully reserved since it was not more likely than not that the Company would achieve profitable operations. | ||||||||||
The Company applied for state research and development refundable credits for the years ended December 31, 2006 through 2009. In April 2012, the Company received $613,397 relating to these credits for the years 2006 through 2009, which is reflected as an income tax benefit in the accompanying statement of operations for 2012. The Company currently does not expect to collect additional credits for years subsequent to 2009. In addition, $61,340 is included in operating expenses on the accompanying statement of operations for the year ended December 31, 2012 relating to professional fees paid in connection with securing these refundable credits. | ||||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at December 31, 2014 and 2013 are presented below. | ||||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Depreciation | $ | 113,000 | $ | 104,000 | ||||||
Allowance for bad debts | 108,000 | 70,000 | ||||||||
Net operating loss carry-forwards | 25,469,000 | 23,116,000 | ||||||||
Stock option expense | 1,439,000 | 1,347,000 | ||||||||
Research and other credits | 1,031,000 | 972,000 | ||||||||
Other temporary differences | 15,000 | 15,000 | ||||||||
Total gross deferred tax assets | 28,175,000 | 25,624,000 | ||||||||
Less valuation allowance | (28,175,000 | ) | (25,624,000 | ) | ||||||
$ | -- | $ | -- | |||||||
In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the period in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based upon its historical operating losses, utilization of deferred tax assets cannot currently be determined. Accordingly, the Company has recorded a full valuation allowance against the deferred tax assets, as they will not be realized until the Company achieves profitable operations in the future. | ||||||||||
At December 31, 2014, the Company had a net operating loss carry-forward for federal income tax purposes of approximately $64,000,000, varying amounts of which will expire in each year from 2018 through 2034. Research and other credit carry-forwards of approximately $1,031,000 are available to the Company to reduce income taxes payable in future years varying amounts of which will expire in each year from 2019 through 2034. | ||||||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Shareholders' Equity [Abstract] | ||||||||||||||||||
Shareholders' Equity | (6) Shareholders' Equity | |||||||||||||||||
(a) Common Stock and Warrants | ||||||||||||||||||
During 2014 and 2013, the Company received proceeds of $304,788 and $822,969 in connection with the exercise of options and warrants representing 64,800 and 179,983 shares of common stock, respectively. | ||||||||||||||||||
In May 2014, under an existing shelf registration statement, the Company sold 750,000 shares of common stock to a current institutional shareholder, Kevin Douglas and his related parties. Net proceeds from the offering were $3,278,250 which the Company intends to use for working capital and general corporate purposes. | ||||||||||||||||||
During 2012 the Company sold, pursuant to the Company's effective registration statement filed with the SEC, equity in the Company as follows: | ||||||||||||||||||
Date | Shares issued | Warrants issued | Unit price | Proceeds | ||||||||||||||
30-Jul-12 | 589,227 | 117,846 | $ | 2.97 | $ | 1,745,549 | * | |||||||||||
28-Aug-12 | 1,900,000 | 380,000 | $ | 2.97 | $ | 5,229,201 | ** | |||||||||||
3-Oct-12 | 1,250,000 | 250,000 | $ | 4.49 | $ | 5,275,750 | *** | |||||||||||
Total | 3,739,227 | 747,846 | $ | 12,250,500 | ||||||||||||||
____________________ | ||||||||||||||||||
(*) | Net of fees of $4,455 | |||||||||||||||||
(**) | Net of fees of $413,719 | |||||||||||||||||
(***) | Net of fees of $336,750 | |||||||||||||||||
Shares and warrants issued in the July 30, 2012 and August 28, 2012 sales were sold pursuant to the Company's currently effective shelf registration. Warrants issued in the July 30, 2012 and August 28, 2012 sales' are exercisable for a period of five years beginning on the closing date of the offering at an exercise price of $4.45 per share (150% of the aggregate offering price for a share of common stock and corresponding warrant). | ||||||||||||||||||
The warrants issued in connection with the October 3, 2012 sale are exercisable for a period of five years beginning on the six-month anniversary of the closing date at an exercise price of $6.73 per share (approximately 150% of the aggregate offering price). The securities issued in the October 3, 2012 sale were not registered under the Securities Act of 1933, as amended, or any state securities laws, and were issued and sold in a private placement pursuant to Regulation D of the Securities Act. The Company subsequently filed a Form S-3 registration with the US Securities and Exchange Commission which was declared effective on December 26, 2012 that covers the resale of the shares by the purchaser and the shares issuable upon exercise of the warrants. | ||||||||||||||||||
(b) Options and Warrants | ||||||||||||||||||
(i) Employee Options | ||||||||||||||||||
In 2008, the shareholders approved the Company's 2008 Equity Incentive Plan which provides for the granting of both incentive stock options at the fair market value at the date of grant and nonqualified stock options at the fair market value at the date of grant to employees or non-employees who, in the determination of the Board of Directors, have made or may make significant contributions to the Company in the future. The Company may also award stock appreciation rights, restricted stock, or restricted stock units under this plan. The Company initially reserved 750,000 shares of its common stock for issuance under this plan, and the Company's stockholders approved amendments to the 2008 Equity Incentive Plan to increase the number of shares issuable under the plan by 1,000,000 and 750,000 shares on June 13, 2013 and June 9, 2011, respectively. Options and other awards for 377,942 shares were available for issuance under this plan as of December 31, 2014. | ||||||||||||||||||
At the discretion of the Board of Directors, options expire in ten years or less from the date of grant and are generally fully exercisable upon grant but in some cases may be subject to vesting in the future. Full payment of the exercise price may be made in cash or in shares of common stock valued at the fair market value thereof on the date of exercise, or by agreeing with the Company to cancel a portion of the exercised options. | ||||||||||||||||||
The Company granted no employee options during 2012. The Company granted 499,700 fully vested options during 2013 and recorded share-based compensation of $1,431,620. The Company granted 209,750 fully vested options during 2014 and recorded share-based compensation of $483,915.The Company valued these grants using the Black-Scholes option pricing model with the following weighted average assumptions: | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
Fair value on grant date | $ | 2.3 | 2.86 | |||||||||||||||
Expected dividend yield | - | - | ||||||||||||||||
Expected volatility | 50 | % | 64 | % | ||||||||||||||
Risk free interest rate | 1.68 | % | 1.62 | % | ||||||||||||||
Expected term of the option | 5 years | 5 years | ||||||||||||||||
Activity in stock options is summarized below: | ||||||||||||||||||
Weighted | ||||||||||||||||||
Weighted | Average | |||||||||||||||||
Number of Shares | Average | Remaining | Aggregate | |||||||||||||||
Subject to | Exercise | Contractual | Intrinsic | |||||||||||||||
Option | Price | Term (Years) | Value | |||||||||||||||
Balance at December 31, 2011 | 1,269,649 | $ | 11.64 | 4.2 | ||||||||||||||
Granted | - | $ | - | |||||||||||||||
Cancelled | (151,750 | ) | $ | 12.76 | ||||||||||||||
Exercised | - | $ | - | |||||||||||||||
Balance at December 31, 2012 | 1,117,899 | $ | 9.03 | 3.7 | ||||||||||||||
Granted | 499,700 | $ | 5.26 | |||||||||||||||
Cancelled | (64,500 | ) | $ | 12.81 | ||||||||||||||
Exercised | (72,500 | ) | $ | 4.83 | ||||||||||||||
Balance at December 31, 2013 | 1,480,599 | $ | 7.8 | 5.2 | ||||||||||||||
Granted | 209,750 | $ | 5.19 | |||||||||||||||
Cancelled | (104,750 | ) | $ | 7.83 | ||||||||||||||
Exercised | (14,800 | ) | $ | 5.56 | ||||||||||||||
Balance at December 31, 2014 | 1,570,799 | $ | 7.49 | 5.2 | $ | 199,000 | ||||||||||||
All options are exercisable at December 31, 2014. | ||||||||||||||||||
During 2014 and 2013, the Company received $82,288, and $322,475, respectively in proceeds from the exercise of options. | ||||||||||||||||||
(ii) Warrants and Non-Employee Options | ||||||||||||||||||
Activity in warrants is summarized below: | ||||||||||||||||||
Number of Shares Underlying | ||||||||||||||||||
Warrants and Non- Employee | Weighted Average | |||||||||||||||||
Options Granted | Exercise Price | |||||||||||||||||
Balance at December 31, 2011 | 704,257 | $ | 5.00 - 9.00 | |||||||||||||||
Exercised | - | - | ||||||||||||||||
Terminated | - | - | ||||||||||||||||
Issued | 807,846 | 5.12 | ||||||||||||||||
Balance at December 31, 2012 | 1,512,103 | $ | 5.56 | |||||||||||||||
Exercised | (107,483 | ) | 4.45 | |||||||||||||||
Terminated | (25,000 | ) | 9 | |||||||||||||||
Issued | - | - | ||||||||||||||||
Balance at December 31, 2013 | 1,379,620 | $ | 5.58 | |||||||||||||||
Exercised | (50,000 | ) | 4.45 | |||||||||||||||
Terminated | - | - | ||||||||||||||||
Issued | 24,000 | 6.58 | ||||||||||||||||
Balance at December 31, 2014 | 1,353,620 | $ | 5.64 | |||||||||||||||
In lieu of higher cash compensation, the Company has granted warrants and non-employee options to consultants. These warrants and non-employee options vest ratably over various terms ranging from 24 to 59 months. Non-employee five year options covering 24,000 and 60,000 shares were granted to consultants during 2014 and 2012, respectively that vest over 24 and 12 months, respectively. These non-employee options are valued at fair value at the time that the related services are provided using the Black Scholes option valuation method and marked to market quarterly using the Black-Scholes option valuation method. The Company incurred a charge (benefit) to operations of $32,428, $369,844, and $110,649, for 2014, 2013, and 2012, respectively in connection with these warrants and non-employee options. | ||||||||||||||||||
During 2014 and 2013, the Company received $222,500, and $478,299, respectively in proceeds from the exercise of warrants. | ||||||||||||||||||
Warrants and non-employee options generally expire from five to ten years from the date of issuance. At December 31, 2014, the number of warrants exercisable was 1,349,620 at a weighted average exercise price of $5.64 per share. | ||||||||||||||||||
Warrants issued in connection with an equity offering in February 2010 were exercised in late February 2015 resulting in the issuance of 50,181 shares of common stock. These warrants had an exercise price of $5.00 per share. The shares issued in connection with these warrant exercises are included in the total shares of common stock outstanding on the front cover of this filing. | ||||||||||||||||||
(c) Restricted Stock Grants | ||||||||||||||||||
During 2014, the Company did not issue restricted stock to its directors or employees. | ||||||||||||||||||
During 2013, the Company granted 282,900 shares of restricted stock to its directors and employees. Directors received 91,500 of these shares of restricted common stock. All the shares granted to the directors, as well as 3,400 shares granted to employees vested immediately upon grant. The remaining 188,000 shares vest ratably over the 36 months following grant. The market value per share on the date of grant was $3.70. | ||||||||||||||||||
During, 2012 the Company granted 363,200 shares of restricted stock to its directors and employees. All of the 96,500 shares granted to the directors, as well as 5,100 shares granted to employees, vested immediately upon grant. The remaining 261,600 shares issued to employees vest ratably over 36 months following grant. The market value per share on the date of grant was $3.38. | ||||||||||||||||||
In connection with these grants, as well as prior grants that are not yet fully vested, the Company charged $526,575, $2,545,060, and $873,888, to operations during 2014, 2013, and 2012, respectively. At December 31, 2014, 2013, 2012, 62,667, 611,692, and 218,733, respectively, of these grants remain unvested. In addition, at December 31, 2014, $231,867 remains to be charged to operations over the next 12 months relating to these grants. | ||||||||||||||||||
License_and_Other_Agreements
License and Other Agreements | 12 Months Ended |
Dec. 31, 2014 | |
License and Other Agreements [Abstract] | |
License and Other Agreements | (7) License and Other Agreements |
The Company has entered into a number of license agreements covering various products using the Company's SPD technology. Some of these license agreements are limited to specific countries and/or markets. Licensees of Research Frontiers who incorporate SPD technology into end products pay Research Frontiers an earned royalty of 5-15% of net sales of licensed products under license agreements currently in effect, and may also be required to pay Research Frontiers fees and minimum annual royalties. Licensees who sell products or components to other licensees of Research Frontiers do not pay a royalty on such sale; Research Frontiers will collect such royalty from the licensee incorporating such products or components into its own end-products. Research Frontiers' license agreements typically allow the licensee to terminate the license after some period of time, and give Research Frontiers only limited rights to terminate before the license expires. Most licenses are non-exclusive and generally last as long as our patents remain in effect. | |
Commitments
Commitments | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments [Abstract] | ||||||
Commitments | (8) Commitments | |||||
The Company has an employment agreement with three of its officers which provides for an annual base salary of $450,000, $402,000 and $220,000 respectively for calendar year 2015. Each of these employment agreements have an evergreen provision that extend the term by one year on the anniversary date unless either the Company or the employee has given notice that they will not be renewing the agreement upon the expiration of its term. | ||||||
The Company has a defined contribution profit sharing (401K) plan covering employees who have completed one year of service. Contributions are made at the discretion of the Company. The Company did not make any contributions to this plan for 2014, 2013, or 2012. | ||||||
The Company occupies premises under an operating lease agreement which expires on March 31, 2025. As of December 31, 2014, the approximate minimum annual future rental commitments under lease agreements for the next five years are as follows: | ||||||
Year | Amount | |||||
2015 | $ | 168,000 | ||||
2016 | $ | 174,000 | ||||
2017 | $ | 180,000 | ||||
2018 | $ | 186,000 | ||||
2019 | $ | 191,000 | ||||
Thereafter: | $ | 1,102,000 | ||||
Rent expense, including other occupancy related expenses, amounted to approximately $173,000, $187,000, and $200,000, for 2014, 2013, and 2012, respectively. | ||||||
Rights_Plan
Rights Plan | 12 Months Ended |
Dec. 31, 2014 | |
Rights Plan [Abstract] | |
Rights Plan | (9) Rights Plan |
In February 2013, the Company's Board of Directors adopted a Stockholders' Rights Plan (the “Rights Plan”) and declared a dividend distribution of one right (a “Right”) for each outstanding share of Company common stock to stockholders of record at the close of business on March 3, 2003 (“Record Time”) and authorized the issuance of one Right in respect of each share of Common Stock issued after the Record Time and prior to the Separation Time. | |
“Separation Time” shall mean the earlier of the Close of Business on the tenth Business Day (or such later date as the Board of Directors may from time to time fix by resolution adopted prior to the Separation Time that otherwise would have occurred) following but not including (i) the date on which any Person commences a tender or exchange offer that, if consummated, would result in such Person's becoming an Acquiring Person, and (ii) the date of the first event causing a Flip-in Date to occur; provided that if any tender or exchange offer referred to in clause (i) of this paragraph is cancelled, terminated or otherwise withdrawn prior to the Separation Time without the purchase of any shares of Common Stock pursuant thereto, such offer shall be deemed, for purposes of this paragraph, never to have been made. | |
Subject to certain exceptions listed in the Rights Plan, if a person or group has acquired beneficial ownership of, or commences a tender or exchange offer for, 15% or more of the Company's common stock, unless redeemed by the Company's Board of Directors, each Right entitles the holder (other than the acquiring person) to purchase from the Company $80 worth of common stock for $40. If the Company is merged into, or 50% or more of its assets or earning power is sold to, the acquiring company, the Rights will also enable the holder (other than the acquiring person) to purchase $80 worth of common stock of the acquiring company for $40. The Rights will expire at the close of business on February 11, 2023, unless the Rights Plan is extended by the Company's Board of Directors or unless the Rights are earlier redeemed by the Company at a price of $.0001 per Right. The Rights are not exercisable during the time when they are redeemable by the Company. | |
The above description highlights some of the features of the Company's Rights Plan and is not a complete description of the Rights Plan. A more detailed description and copy of the Rights Plan has been filed with the SEC and is available from the Company upon request. | |
Selected_Quarterly_Financial_D
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) | (10) Selected Quarterly Financial Data (Unaudited) (1) | |||||||||||||||
Quarter | ||||||||||||||||
2014 | First (3) | Second | Third | Fourth (3) | ||||||||||||
Fee Income | $ | 308,348 | $ | 395,619 | $ | 452,937 | $ | 441,895 | ||||||||
Operating loss | (1,178,626 | ) | (1,150,453 | ) | (649,444 | ) | (1,470,360 | ) | ||||||||
Net loss | (1,169,985 | ) | (1,141,858 | ) | (639,806 | ) | (1,462,073 | ) | ||||||||
Basic and diluted net loss | ||||||||||||||||
per common share | (0.05 | ) | (0.05 | ) | (0.03 | ) | (0.06 | ) | ||||||||
Quarter | ||||||||||||||||
2013 | First (3) | Second | Third | Fourth (3) | ||||||||||||
Fee income | $ | 707,231 | $ | 521,844 | $ | 506,692 | $ | 425,592 | ||||||||
Operating loss | -1,615,420 | -826,927 | -920,670 | (2,715,742 | ) | |||||||||||
Net loss | -1,607,568 | -815,771 | -911,141 | (2,706,131 | ) | |||||||||||
Basic and diluted net loss | ||||||||||||||||
per common share (2) | -0.07 | -0.04 | -0.04 | (0.12 | ) | |||||||||||
____________________ | ||||||||||||||||
-1 | During the year ended December 31, 2014, it was noted that the Company was applying the expected term of warrants granted in 2009 to certain consultants, rather than the contractual term, which is required by GAAP. | |||||||||||||||
The result of using the expected terms of the warrants was an increase to previously reported consultant compensation charges included in Operating Expenses in the Company's Consolidated Statement of Operations. | ||||||||||||||||
The impact of this change to the prior periods is not considered material to each of the periods presented. | ||||||||||||||||
-2 | Since per share information is computed independently for each quarter and the full year, based on the respective average number of common shares outstanding, the sum of the | |||||||||||||||
quarterly per share amounts does not necessarily equal the per share amounts for the year. | ||||||||||||||||
-3 | The Company incurred higher costs in the first and fourth quarter of 2014 and 2013 relating primarily to: (i) $616,000 and $2,305,000 of stock and option | |||||||||||||||
compensation charges in the 2014 and 2013, respectively, relating to common stock and options granted to directors, employees and consultants, and (ii) $175,000 in the first quarter of 2014 | ||||||||||||||||
and 2013 in directors' fees, respectively. |
Subsequent_Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Event [Abstract] | |
Subsequent Event | (11) Subsequent Event |
Warrants issued in connection with an equity offering in February 2010 were exercised in late February 2015 resulting in the issuance of 50,181 shares of common stock. These warrants had an exercise price of $5.00 per share. The shares issued in connection with these warrant exercises are included in the total shares of common stock outstanding on the front cover of this filing. | |
SCHEDULE_II_VALUATION_AND_QUAL
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS [Abstract] | |||||||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II | ||||||||||||||||||
RESEARCH FRONTIERS INCORPORATED | |||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||
Years ended December 31, 2014, 2013, and 2012 | |||||||||||||||||||
Balance at | Charged to | ||||||||||||||||||
beginning of | costs and | ||||||||||||||||||
period | expenses | Deductions | Balance | ||||||||||||||||
Description | |||||||||||||||||||
Allowance for uncollectible | |||||||||||||||||||
royalty receivables: | |||||||||||||||||||
31-Dec-14 | $ | 173,921 | $ | 131,250 | $ | - | $ | 305,171 | |||||||||||
31-Dec-13 | $ | 92,723 | $ | 81,198 | $ | - | $ | 173,921 | |||||||||||
31-Dec-12 | $ | 92,723 | $ | - | $ | - | $ | 92,723 | |||||||||||
____________________ | |||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||
Cash and Cash Equivalents | (a) Cash and Cash Equivalents | ||||||||||||||||||
The Company considers securities purchased with original maturities of three months or less to be cash equivalents. Cash equivalents consist of short-term investments in money market accounts at December 31, 2014 and 2013. | |||||||||||||||||||
Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. We have never experienced any losses related to these balances. FDIC insurance coverage is $250,000 per depositor at each financial institution, and our non-interest bearing cash balances may again exceed federally insured limits. Amounts on deposit in excess of federally insured limits at December 31, 2014 and 2013 is approximately $6.8 million $5.6 million, respectively. | |||||||||||||||||||
Short-term/Long-term Investments | (b) Short-term/Long-term Investments | ||||||||||||||||||
The Company classifies investments in marketable securities as trading, available-for-sale or held-to-maturity at the time of purchase and periodically re-evaluates such classifications. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. Held-to-maturity securities are recorded at cost and are adjusted for the amortization or accretion of premiums or discounts over the life of the related security. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) until realized. In determining realized gains and losses, the cost of securities sold is based on the specific identification method. Interest and dividends on the investments are accrued at the balance sheet date. At December 31, 2014 and 2013 all investments were classified as held to maturity and consisted of the following: | |||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Certificates of Deposit | Maturity | Value of Held to Maturity | Value of Held to Maturity | ||||||||||||||||
Investment | Date | Investments (based on cost) | Investments (based on cost) | ||||||||||||||||
$ | 1,501,554 | 8/27/15 | $ | 1,501,554 | $ | - | |||||||||||||
$ | 2,011,967 | 10/17/14 | $ | - | $ | 2,011,967 | |||||||||||||
$ | 2,007,997 | 4/18/14 | $ | - | $ | 2,007,997 | |||||||||||||
$ | 502,821 | 6/29/14 | $ | - | $ | 502,821 | |||||||||||||
$ | 301,695 | 4/6/14 | $ | - | $ | 301,695 | |||||||||||||
$ | 252,450 | 3/29/14 | $ | - | $ | 252,450 | |||||||||||||
$ | 3,005,079 | $ | 5,076,930 | ||||||||||||||||
At December 31, 2014 the Company had a certificate of deposit investment in the amount of $1,503,525 (based on cost) with a maturity date of August 27, 2016 which is classified as a long-term investments on the balance sheet. | |||||||||||||||||||
Royalties Receivable | (c) Royalties Receivable | ||||||||||||||||||
Royalties receivable are recorded at the amounts specified within the license agreements when the collectability of the receivable is reasonably assured. The receivables do not bear interest. The allowance for doubtful accounts is the Company's best estimate of the amount of probable credit losses in the Company's existing royalties receivable. The Company determines the allowance based on historical write off experience. The Company reviews its allowance for doubtful accounts periodically. Past due accounts are reviewed individually for collectability. Account balances are charged off against the allowance after all means of collection have been exhausted and the potential for recovery is considered remote. | |||||||||||||||||||
Fixed Assets | (d) Fixed Assets | ||||||||||||||||||
Fixed assets are carried at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets. | |||||||||||||||||||
Revenue Recognition/Fee Income | (e) Revenue Recognition/Fee Income | ||||||||||||||||||
The Company has entered into a number of license agreements covering its light control technology. The Company receives minimum annual royalties under certain license agreements and records fee income on a ratable basis each quarter. In instances when sales of licensed products by its licensees exceed minimum annual royalties, the Company recognizes fee income as the amounts have been earned. Certain of the fees are accrued by, or paid to, the Company in advance of the period in which they are earned resulting in deferred revenue. Such excess amounts are recorded as deferred revenue and recognized into income in future periods as earned. | |||||||||||||||||||
Fee income represents amounts earned by the Company under various license and other agreements (note 8) relating to technology developed by the Company. During 2014, five licensees accounted for 36%, 11%, 9%, 9%, and 5%, respectively of fee income recognized during the year. During 2013 six licensees accounted for 40%, 12%, 6% and 6%, 5%, and 5% respectively of fee income recognized for the year. During 2012, four licensees accounted for 62%, 6%, 5% and 5%, respectively, of fee income recognized for the year. | |||||||||||||||||||
Basic and Diluted Loss Per Common Share | (f) Basic and Diluted Loss Per Common Share | ||||||||||||||||||
Basic earnings (loss) per share excludes any dilution. It is based upon the weighted average number of common shares outstanding during the period. Dilutive earnings (loss) per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. The Company's dilutive loss per share equals basic loss per share for each of the years in the three-year period ended December 31, 2014 because all common stock equivalents (i.e., options and warrants) were antidilutive in those periods. The number of options and warrants that were not included because their effect is antidilutive was 2,924,419, 2,860,219, and 2,630,002, for 2014, 2013, and 2012, respectively. | |||||||||||||||||||
Research and Development Costs | (g) Research and Development Costs | ||||||||||||||||||
Research and development costs are charged to expense as incurred. | |||||||||||||||||||
Patent Costs | (h) Patent Costs | ||||||||||||||||||
The Company expenses costs relating to the development or acquisition of patents due to the uncertainty of the recoverability of these items. | |||||||||||||||||||
Use of Estimates | (i) Use of Estimates | ||||||||||||||||||
The preparation of the Company's consolidated financial statements requires management of the Company to make a number of estimates and assumptions relating to the reported amount of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during this period. Actual results could differ from those estimates. | |||||||||||||||||||
Income Taxes | (j) Income Taxes | ||||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | |||||||||||||||||||
In accordance with ASC Topic 740 (FIN 48), we recognize tax benefits only for tax positions that are more likely than not to be sustained upon examination by tax authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely to be realized upon ultimate settlement. Unrecognized tax benefits are tax benefits claimed in tax returns that do not meet these recognition and measurement standards. We classify accrued interest and penalties related to any unrecognized tax benefits in our income tax provision. At December 31, 2014 and 2013, we do not have accrued interest and penalties related to any unrecognized tax benefits. We do not believe we have any uncertain tax positions as of December 31, 2014 and 2013. | |||||||||||||||||||
The tax years subject to examination by major tax jurisdictions include the years 2010 and forward by the U.S. Internal Revenue Service and certain states. The Company is not currently being audited by any tax jurisdiction. | |||||||||||||||||||
Fair Value of Financial Instruments | (k) Fair Value of Financial Instruments | ||||||||||||||||||
The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties. The carrying amounts of all financial instruments classified as a current asset or current liability are deemed to approximate fair value because of the short maturity of those instruments. | |||||||||||||||||||
Equity-Based Compensation and Restricted Stock | (l) Equity-Based Compensation | ||||||||||||||||||
We recognize all stock-based compensation as an expense in the financial statements and such costs are measured at the fair value of the award at the date of grant. In addition to reflecting compensation expense for new share-based payment awards, expense is also recognized to reflect the remaining vesting period of awards that had been granted in prior periods. Tax benefits related to stock option exercises are reflected as financing cash inflows instead of operating cash inflows. | |||||||||||||||||||
The exercise price for stock options granted are generally set at the average for the high and low trading prices of the Company's common stock on the trading date immediately prior to the date of grant, and the related number of shares granted are fixed at the date of grant. | |||||||||||||||||||
In order to determine the fair value of stock options on the date of grant, the Company uses the Black-Scholes option-pricing model. Inherent in this model are assumptions related to expected stock-price volatility, option term, risk-free interest rate and dividend yield. While the risk-free interest rate and dividend yield are less subjective assumptions that are based on factual data derived from public sources, the expected stock-price volatility and option term assumptions require a greater level of judgment. | |||||||||||||||||||
In connection with the employee stock options and restricted stock grants, the Company charged $1,010,489, $2,545,060, and $873,888, to operations during the years ended December 31, 2014, 2013, and 2012, respectively. | |||||||||||||||||||
Non-employee options are valued at fair value at the time that the related services are provided using the Black-Scholes option valuation model and marked to market quarterly using the Black-Scholes option valuation model. The Company incurred a charge (benefit) to operations of $32,428, $369,844, and $110,649, for 2014, 2013, and 2012, respectively in connection with these warrants and non-employee options. | |||||||||||||||||||
Impairment of Long-Lived Assets | (n) Impairment of Long-Lived Assets | ||||||||||||||||||
The Company reviews long-lived assets to determine whether an event or change in circumstances indicates the carrying value of the asset may not be recoverable. The Company bases its evaluation on such impairment indicators as the nature of the assets, the future economic benefit of the assets and any historical or future profitability measurements, as well as other external market conditions or factors that may be present. | |||||||||||||||||||
Fair Value Measurements | (o) Fair Value Measurements | ||||||||||||||||||
Accounting Standards Codification (“ASC”) Topic 820 “Fair Value Measurements and Disclosures” (“ASC Topic 820”) establishes a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements. ASC Topic 820 applies under other previously issued accounting pronouncements that require or permit fair value measurements but does not require any new fair value measurements. | |||||||||||||||||||
ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). | |||||||||||||||||||
We value financial instruments using a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices for similar assets or liabilities in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. | |||||||||||||||||||
Financial assets accounted for at fair value on a recurring basis at December 31, 2014 and 2013, include cash and cash equivalents of approximately $7.6 million and $5.9 million, respectively, as well as short term investments of $1.5 million and $5.1 million in 2014 and 2013, respectively. The carrying value of these assets approximates fair value due to the short-term maturity of these instruments. | |||||||||||||||||||
The carrying amount of the long-term investments of $1.5 million at December 31, 2014 approximates the fair-value, as the interest rate obtained by the Company approximates the prevailing rate for similar investments. | |||||||||||||||||||
Recent Accounting Pronouncements | (p) Recent Accounting Pronouncements | ||||||||||||||||||
New Accounting Standards | |||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606). The amendments in this Update establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard's core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: (i) identify the contract with the customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the entity satisfies a performance obligation. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements and have not yet determined the method by which we will adopt the standard in 2017. | |||||||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | |||||||||||||||||||
Schedule of Investments | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||
Certificates of Deposit | Maturity | Value of Held to Maturity | Value of Held to Maturity | ||||||||||||||||
Investment | Date | Investments (based on cost) | Investments (based on cost) | ||||||||||||||||
$ | 1,501,554 | 8/27/15 | $ | 1,501,554 | $ | - | |||||||||||||
$ | 2,011,967 | 10/17/14 | $ | - | $ | 2,011,967 | |||||||||||||
$ | 2,007,997 | 4/18/14 | $ | - | $ | 2,007,997 | |||||||||||||
$ | 502,821 | 6/29/14 | $ | - | $ | 502,821 | |||||||||||||
$ | 301,695 | 4/6/14 | $ | - | $ | 301,695 | |||||||||||||
$ | 252,450 | 3/29/14 | $ | - | $ | 252,450 | |||||||||||||
$ | 3,005,079 | $ | 5,076,930 |
Fixed_Assets_Tables
Fixed Assets (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Fixed Assets [Abstract] | |||||||||||
Schedule of Fixed Assets | Fixed assets and their estimated useful lives as of December 31, 2014 and 2013 are as follows: | ||||||||||
2014 | 2013 | Estimated useful life | |||||||||
Equipment and furniture | $ | 1,362,308 | $ | 1,351,877 | 5 years | ||||||
Trade show materials | 502,789 | - | 5 years | ||||||||
Life of lease or estimated | |||||||||||
Leasehold Improvements | 552,185 | 437,745 | life of asset if shorter | ||||||||
1,914,493 | 1,789,622 | ||||||||||
Less accumulated depreciation | |||||||||||
and amortization | (1,757,081 | ) | (1,725,257 | ) | |||||||
$ | 157,412 | $ | 64,365 |
Accrued_Expenses_and_Other_Tab
Accrued Expenses and Other (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accrued Expenses and Other [Abstract] | |||||||||
Schedule of Accrued Expenses and Other | Accrued expenses consist of the following at December 31, 2014 and 2013: | ||||||||
2014 | 2013 | ||||||||
Payroll, bonuses and related benefits | $ | 206,427 | $ | 75,966 | |||||
Professional services | 29,400 | 4,400 | |||||||
Deferred rent | 75,569 | - | |||||||
Other | 11,976 | 359 | |||||||
$ | 323,372 | $ | 80,725 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Income Taxes [Abstract] | ||||||||||
Schedule of Deferred Tax Assets | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets at December 31, 2014 and 2013 are presented below. | |||||||||
2014 | 2013 | |||||||||
Deferred tax assets: | ||||||||||
Depreciation | $ | 113,000 | $ | 104,000 | ||||||
Allowance for bad debts | 108,000 | 70,000 | ||||||||
Net operating loss carry-forwards | 25,469,000 | 23,116,000 | ||||||||
Stock option expense | 1,439,000 | 1,347,000 | ||||||||
Research and other credits | 1,031,000 | 972,000 | ||||||||
Other temporary differences | 15,000 | 15,000 | ||||||||
Total gross deferred tax assets | 28,175,000 | 25,624,000 | ||||||||
Less valuation allowance | (28,175,000 | ) | (25,624,000 | ) | ||||||
$ | -- | $ | -- |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Shareholders' Equity [Abstract] | ||||||||||||||||||
Schedule of Common Stock Sold | During 2012 the Company sold, pursuant to the Company's effective registration statement filed with the SEC, equity in the Company as follows: | |||||||||||||||||
Date | Shares issued | Warrants issued | Unit price | Proceeds | ||||||||||||||
30-Jul-12 | 589,227 | 117,846 | $ | 2.97 | $ | 1,745,549 | * | |||||||||||
28-Aug-12 | 1,900,000 | 380,000 | $ | 2.97 | $ | 5,229,201 | ** | |||||||||||
3-Oct-12 | 1,250,000 | 250,000 | $ | 4.49 | $ | 5,275,750 | *** | |||||||||||
Total | 3,739,227 | 747,846 | $ | 12,250,500 | ||||||||||||||
____________________ | ||||||||||||||||||
(*) | Net of fees of $4,455 | |||||||||||||||||
(**) | Net of fees of $413,719 | |||||||||||||||||
(***) | Net of fees of $336,750 | |||||||||||||||||
Schedule of Assumptions Used to Value Options Granted to Employees | 2014 | 2013 | ||||||||||||||||
Fair value on grant date | $ | 2.3 | 2.86 | |||||||||||||||
Expected dividend yield | - | - | ||||||||||||||||
Expected volatility | 50 | % | 64 | % | ||||||||||||||
Risk free interest rate | 1.68 | % | 1.62 | % | ||||||||||||||
Expected term of the option | 5 years | 5 years | ||||||||||||||||
Schedule of Option Activity | Activity in stock options is summarized below: | |||||||||||||||||
Weighted | ||||||||||||||||||
Weighted | Average | |||||||||||||||||
Number of Shares | Average | Remaining | Aggregate | |||||||||||||||
Subject to | Exercise | Contractual | Intrinsic | |||||||||||||||
Option | Price | Term (Years) | Value | |||||||||||||||
Balance at December 31, 2011 | 1,269,649 | $ | 11.64 | 4.2 | ||||||||||||||
Granted | - | $ | - | |||||||||||||||
Cancelled | (151,750 | ) | $ | 12.76 | ||||||||||||||
Exercised | - | $ | - | |||||||||||||||
Balance at December 31, 2012 | 1,117,899 | $ | 9.03 | 3.7 | ||||||||||||||
Granted | 499,700 | $ | 5.26 | |||||||||||||||
Cancelled | (64,500 | ) | $ | 12.81 | ||||||||||||||
Exercised | (72,500 | ) | $ | 4.83 | ||||||||||||||
Balance at December 31, 2013 | 1,480,599 | $ | 7.8 | 5.2 | ||||||||||||||
Granted | 209,750 | $ | 5.19 | |||||||||||||||
Cancelled | (104,750 | ) | $ | 7.83 | ||||||||||||||
Exercised | (14,800 | ) | $ | 5.56 | ||||||||||||||
Balance at December 31, 2014 | 1,570,799 | $ | 7.49 | 5.2 | $ | 199,000 |
Commitments_Tables
Commitments (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments [Abstract] | ||||||
Schedule of Minimum Annual Future Rental Commitments | Year | Amount | ||||
2015 | $ | 168,000 | ||||
2016 | $ | 174,000 | ||||
2017 | $ | 180,000 | ||||
2018 | $ | 186,000 | ||||
2019 | $ | 191,000 | ||||
Thereafter: | $ | 1,102,000 |
Selected_Quarterly_Financial_D1
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | ||||||||||||||||
Schedule of Quarterly Financial Data | Quarter | |||||||||||||||
2014 | First (3) | Second | Third | Fourth (3) | ||||||||||||
Fee Income | $ | 308,348 | $ | 395,619 | $ | 452,937 | $ | 441,895 | ||||||||
Operating loss | (1,178,626 | ) | (1,150,453 | ) | (649,444 | ) | (1,470,360 | ) | ||||||||
Net loss | (1,169,985 | ) | (1,141,858 | ) | (639,806 | ) | (1,462,073 | ) | ||||||||
Basic and diluted net loss | ||||||||||||||||
per common share | (0.05 | ) | (0.05 | ) | (0.03 | ) | (0.06 | ) | ||||||||
Quarter | ||||||||||||||||
2013 | First (3) | Second | Third | Fourth (3) | ||||||||||||
Fee income | $ | 707,231 | $ | 521,844 | $ | 506,692 | $ | 425,592 | ||||||||
Operating loss | -1,615,420 | -826,927 | -920,670 | (2,715,742 | ) | |||||||||||
Net loss | -1,607,568 | -815,771 | -911,141 | (2,706,131 | ) | |||||||||||
Basic and diluted net loss | ||||||||||||||||
per common share (2) | -0.07 | -0.04 | -0.04 | (0.12 | ) | |||||||||||
____________________ | ||||||||||||||||
-1 | During the year ended December 31, 2014, it was noted that the Company was applying the expected term of warrants granted in 2009 to certain consultants, rather than the contractual term, which is required by GAAP. | |||||||||||||||
The result of using the expected terms of the warrants was an increase to previously reported consultant compensation charges included in Operating Expenses in the Company's Consolidated Statement of Operations. | ||||||||||||||||
The impact of this change to the prior periods is not considered material to each of the periods presented. | ||||||||||||||||
-2 | Since per share information is computed independently for each quarter and the full year, based on the respective average number of common shares outstanding, the sum of the | |||||||||||||||
quarterly per share amounts does not necessarily equal the per share amounts for the year. | ||||||||||||||||
-3 | The Company incurred higher costs in the first and fourth quarter of 2014 and 2013 relating primarily to: (i) $616,000 and $2,305,000 of stock and option | |||||||||||||||
compensation charges in the 2014 and 2013, respectively, relating to common stock and options granted to directors, employees and consultants, and (ii) $175,000 in the first quarter of 2014 | ||||||||||||||||
and 2013 in directors' fees, respectively. |
Business_and_Basis_for_Present1
Business and Basis for Presentation (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Change in Accounting Estimate [Line Items] | ||||
Stock based compensation | $1,042,917 | $2,914,904 | $984,537 | |
Accumulated deficit | -98,130,702 | -93,716,980 | ||
Additional paid-in capital | 110,210,480 | 105,584,606 | ||
Restatement Adjustment [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Accumulated deficit | -195,524 | -105,959 | -98,523 | |
Additional paid-in capital | 195,524 | 105,959 | 98,523 | |
Cumulative effect on accumulated deficit | -400,006 | |||
Stock Based Compensation Assumptions [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Stock based compensation | $195,524 | $105,959 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Short-term Investments) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Certificates of Deposit [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Value of Current Held to Maturity Investments (based on cost) | $3,005,079 | $5,076,930 |
Certificate Of Deposits One [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Maturity Date | 27-Aug-15 | |
Value of Current Held to Maturity Investments (based on cost) | 1,501,554 | |
Certificate Of Deposits Two [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Maturity Date | 17-Oct-14 | |
Value of Current Held to Maturity Investments (based on cost) | 2,011,967 | |
Certificate Of Deposits Six [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Maturity Date | 18-Apr-14 | |
Value of Current Held to Maturity Investments (based on cost) | 2,007,997 | |
Certificate Of Deposits Three [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Maturity Date | 29-Jun-14 | |
Value of Current Held to Maturity Investments (based on cost) | 502,821 | |
Certificate Of Deposits Four [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Maturity Date | 6-Apr-14 | |
Value of Current Held to Maturity Investments (based on cost) | 301,695 | |
Certificate Of Deposits Five [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Maturity Date | 29-Mar-14 | |
Value of Current Held to Maturity Investments (based on cost) | 252,450 | |
Certificate of Deposits Seven [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Maturity Date | 27-Aug-16 | |
Value of Noncurrent Held to Maturity Investments (based on cost) | $1,503,525 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash and Cash Equivalents | |||||
Amounts on deposit in excess of federally insured limits | $6,800,000 | $5,600,000 | |||
Basic and Diluted Loss Per Common Share | |||||
Number of options and warrants that were not included because their effect is antidilutive | 2,924,419 | 2,860,219 | 2,630,002 | ||
Fair Value Measurements | |||||
Cash and cash equivalents | 7,600,000 | 5,900,000 | |||
Short term investments | 1,500,000 | 5,100,000 | |||
Charge/(benefit) recorded for employee options and restricted stock | 616,000 | 2,305,000 | 1,010,489 | 2,545,060 | 873,888 |
Charge/(benefit) recorded for non-employees | $32,428 | $369,844 | $110,649 | ||
Licensee One [Member] | Sales [Member] | |||||
Revenue Recognition/Fee Income: | |||||
Percentage of fee income | 36.00% | 40.00% | 62.00% | ||
Licensee Two [Member] | Sales [Member] | |||||
Revenue Recognition/Fee Income: | |||||
Percentage of fee income | 11.00% | 12.00% | 6.00% | ||
Licensee Three [Member] | Sales [Member] | |||||
Revenue Recognition/Fee Income: | |||||
Percentage of fee income | 9.00% | 6.00% | 5.00% | ||
Licensee Four [Member] | Sales [Member] | |||||
Revenue Recognition/Fee Income: | |||||
Percentage of fee income | 9.00% | 6.00% | 5.00% | ||
Licensee Five [Member] | Sales [Member] | |||||
Revenue Recognition/Fee Income: | |||||
Percentage of fee income | 5.00% | 5.00% | |||
Licensee Six [Member] | Sales [Member] | |||||
Revenue Recognition/Fee Income: | |||||
Percentage of fee income | 5.00% |
Fixed_Assets_Details
Fixed Assets (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Fixed assets | $1,914,493 | $1,789,622 |
Less accumulated depreciation and amortization | -1,757,081 | -1,725,257 |
Fixed assets, net | 660,201 | 64,365 |
Equipment and Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets | 1,362,308 | 1,351,877 |
Estimated useful life | 5 years | |
Trade Show Materials [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets | 502,789 | |
Estimated useful life | 5 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Fixed assets | $552,185 | $437,745 |
Accrued_Expenses_and_Other_Det
Accrued Expenses and Other (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accrued Expenses and Other [Abstract] | ||
Payroll, bonuses and related benefits | $206,427 | $75,966 |
Professional services | 29,400 | 4,400 |
Deferred rent | 75,569 | |
Other | 11,976 | 359 |
Accrued expenses | $323,372 | $80,725 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes [Abstract] | |||
Income tax benefit | $613,397 | ||
Professional fees | 61,340 | ||
Deferred tax assets: | |||
Depreciation | 113,000 | 104,000 | |
Allowance for bad debts | 108,000 | 70,000 | |
Net operating loss carry-forwards | 25,469,000 | 23,116,000 | |
Stock option expense | 1,439,000 | 1,347,000 | |
Research and other credits | 1,031,000 | 972,000 | |
Other temporary differences | 15,000 | 15,000 | |
Total gross deferred tax assets | 28,175,000 | 25,624,000 | |
Less valuation allowance | -28,175,000 | -25,624,000 | |
Deferred Tax Assets, Net of Valuation Allowance | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry-forward | 64,000,000 | ||
Research and other credit carry-forwards | $1,031,000 | ||
Earliest Tax Year [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry-forward expiration dates | 31-Dec-14 | ||
Research and other credit carry-forwards expiration dates | 31-Dec-14 | ||
Latest Tax Year [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carry-forward expiration dates | 31-Dec-34 | ||
Research and other credit carry-forwards expiration dates | 31-Dec-34 |
Shareholders_Equity_Schedule_o
Shareholders' Equity (Schedule of Common Stock Sold) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||||||
Oct. 03, 2012 | Aug. 28, 2012 | Jul. 30, 2012 | Feb. 28, 2015 | 31-May-14 | Dec. 31, 2012 | ||||
Shareholders' Equity [Abstract] | |||||||||
Issuances of common stock, shares | 1,250,000 | 1,900,000 | 589,227 | 50,181 | 750,000 | 3,739,227 | |||
Warrants issued | 250,000 | 380,000 | 117,846 | 747,846 | |||||
Unit price | $4.49 | $2.97 | $2.97 | ||||||
Proceeds | $5,275,750 | [1] | $5,229,201 | [2] | $1,745,549 | [3] | $3,278,250 | $12,250,500 | |
Fees in connection with stock sale | $336,750 | $413,719 | $4,455 | ||||||
[1] | Net of fees of $336,750 | ||||||||
[2] | Net of fees of $413,719 | ||||||||
[3] | Net of fees of $4,455 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||
Jun. 13, 2013 | Oct. 03, 2012 | Aug. 28, 2012 | Jul. 30, 2012 | Jun. 09, 2011 | Feb. 28, 2015 | 31-May-14 | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Shares of common stock reserved for issuance | 750,000 | ||||||||||||||
Awards available for issuance | 377,942 | ||||||||||||||
Additional awards authorized for issuance | 1,000,000 | 750,000 | |||||||||||||
Number of options exercised | 64,800 | 179,983 | |||||||||||||
Proceeds from exercise of options | $304,788 | $822,969 | |||||||||||||
Weighted-average exercise price per share, exercisable | $5 | ||||||||||||||
Proceeds from exercise of warrants | 222,500 | 478,299 | |||||||||||||
Stock and option compensation | 616,000 | 2,305,000 | 1,010,489 | 2,545,060 | 873,888 | ||||||||||
Proceeds from sale of common stock | 5,275,750 | [1] | 5,229,201 | [2] | 1,745,549 | [3] | 3,278,250 | 12,250,500 | |||||||
Shares issued | 1,250,000 | 1,900,000 | 589,227 | 50,181 | 750,000 | 3,739,227 | |||||||||
Issuance of Stock and Warrants for Services or Claims | 32,428 | 369,844 | 110,649 | ||||||||||||
Consultant [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued | 24,000 | 60,000 | |||||||||||||
Common Stock [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of options exercised | 64,800 | 179,983 | |||||||||||||
Shares issued | 750,000 | 3,739,227 | |||||||||||||
Restricted Stock [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Restricted common stock granted | 282,900 | 363,200 | |||||||||||||
Market value per share on the date of grant | $3.70 | $3.38 | |||||||||||||
Stock and option compensation | 526,575 | 2,545,060 | 873,888 | ||||||||||||
Unvested shares | 62,667 | 611,692 | 218,733 | ||||||||||||
Unamortized compensation costs | 231,867 | ||||||||||||||
Unamortized compensation costs, period for recognition | 12 months | ||||||||||||||
Restricted Stock [Member] | Vesting Ratably [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 36 months | 36 months | |||||||||||||
Restricted common stock granted | 188,000 | 261,600 | |||||||||||||
Restricted Stock [Member] | Director [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Restricted common stock granted | 91,500 | 96,500 | |||||||||||||
Restricted Stock [Member] | Employees [Member] | Vesting Immediately [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Restricted common stock granted | 3,400 | 5,100 | |||||||||||||
Employee Stock Option [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of options granted | 209,750 | 499,700 | |||||||||||||
Options granted, weighted-average exercise price per share | $5.19 | $5.26 | |||||||||||||
Number of options exercised | 14,800 | 72,500 | |||||||||||||
Proceeds from exercise of options | 82,288 | 322,475 | |||||||||||||
Stock and option compensation | $483,915 | $1,431,620 | |||||||||||||
Non-Employee Stock Options and Warrants [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Number of options granted | 24,000 | 807,846 | |||||||||||||
Options granted, weighted-average exercise price per share | $6.58 | $5.12 | |||||||||||||
Number of options exercised | 50,000 | 107,483 | |||||||||||||
Number exercisable | 1,349,620 | ||||||||||||||
Weighted-average exercise price per share, exercisable | $5.64 | ||||||||||||||
Minimum [Member] | Consultant [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 24 months | ||||||||||||||
Minimum [Member] | Non-Employee Stock Options and Warrants [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Option expiration period | 5 years | ||||||||||||||
Maximum [Member] | Consultant [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Award vesting period | 59 months | ||||||||||||||
Maximum [Member] | Non-Employee Stock Options and Warrants [Member] | |||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||
Option expiration period | 10 years | ||||||||||||||
July and August Investor Warrants [Member] | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Term of warrants | 5 years | ||||||||||||||
Exercise price of warrants | $4.45 | ||||||||||||||
Exercise price of warrants, as a percentage of offering price | 150.00% | ||||||||||||||
October Investor Warrants [Member] | |||||||||||||||
Class of Warrant or Right [Line Items] | |||||||||||||||
Term of warrants | 5 years | ||||||||||||||
Exercise price of warrants | $6.73 | ||||||||||||||
Exercise price of warrants, as a percentage of offering price | 150.00% | ||||||||||||||
[1] | Net of fees of $336,750 | ||||||||||||||
[2] | Net of fees of $413,719 | ||||||||||||||
[3] | Net of fees of $4,455 |
Shareholders_Equity_Schedule_o1
Shareholders' Equity (Schedule of Assumptions Used to Value Options Granted to Employees) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Stock-Based Compensation [Abstract] | ||
Fair value on grant date | $2.30 | $2.86 |
Expected dividend yield | ||
Expected volatility | 50.00% | 64.00% |
Risk free interest rate | 1.68% | 1.62% |
Expected term of the option | 5 years | 5 years |
Shareholders_Equity_Schedule_o2
Shareholders' Equity (Schedule of Activity in Options and Warrants) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Number of Shares Underlying Warrants and Options | ||||
Exercised | -64,800 | -179,983 | ||
Employee Stock Option [Member] | ||||
Number of Shares Underlying Warrants and Options | ||||
Balance | 1,480,599 | 1,117,899 | 1,269,649 | |
Granted/Issued | 209,750 | 499,700 | ||
Cancelled/Terminated | -104,750 | -64,500 | -151,750 | |
Exercised | -14,800 | -72,500 | ||
Balance | 1,570,799 | 1,480,599 | 1,117,899 | 1,269,649 |
Weighted Average Exercise Price | ||||
Balance | $7.80 | $9.03 | $11.64 | |
Granted/Issued | $5.19 | $5.26 | ||
Cancelled/Terminated | $7.83 | $12.81 | $12.76 | |
Exercised | $5.56 | $4.83 | ||
Balance | $7.49 | $7.80 | $9.03 | $11.64 |
Weighted Average Remaining Contractual Term (Years) | 5 years 2 months 12 days | 5 years 2 months 12 days | 3 years 8 months 12 days | 4 years 2 months 12 days |
Aggregate Intrinsic Value | $199,000 | |||
Non-Employee Stock Options and Warrants [Member] | ||||
Number of Shares Underlying Warrants and Options | ||||
Balance | 1,379,620 | 1,512,103 | 704,257 | |
Granted/Issued | 24,000 | 807,846 | ||
Cancelled/Terminated | -25,000 | |||
Exercised | -50,000 | -107,483 | ||
Balance | 1,353,620 | 1,379,620 | 1,512,103 | |
Weighted Average Exercise Price | ||||
Balance | $5.58 | $5.56 | ||
Granted/Issued | $6.58 | $5.12 | ||
Cancelled/Terminated | $9 | |||
Exercised | $4.45 | $4.45 | ||
Balance | $5.64 | $5.58 | $5.56 | |
Non-Employee Stock Options and Warrants [Member] | Minimum [Member] | ||||
Weighted Average Exercise Price | ||||
Balance | $5 | |||
Non-Employee Stock Options and Warrants [Member] | Maximum [Member] | ||||
Weighted Average Exercise Price | ||||
Balance | $9 |
License_and_Other_Agreements_D
License and Other Agreements (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
Percentage Of Royalty Revenue On Net Sales | 5.00% |
Maximum [Member] | |
Percentage Of Royalty Revenue On Net Sales | 15.00% |
Commitments_Details
Commitments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Operating lease: | |||
Lease expiration date | 31-Mar-25 | ||
2015 | $168,000 | ||
2016 | 174,000 | ||
2017 | 180,000 | ||
2018 | 186,000 | ||
2019 | 191,000 | ||
Thereafter | 1,102,000 | ||
Rent expense | 173,000 | 187,000 | 200,000 |
Employment Agreement One [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Commitment amount | 450,000 | ||
Employment Agreement Two [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Commitment amount | 402,000 | ||
Employment Agreement Three [Member] | |||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | |||
Commitment amount | $220,000 |
Rights_Plan_Details
Rights Plan (Details) (Rights Plan [Member], USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Rights Plan [Member] | |
Class of Warrant or Right [Line Items] | |
Percentage of acquisition threshold | 15.00% |
Value of stock covered by each right | $80 |
Exercise price of rights | $40 |
Threshold for change in control | 50.00% |
Redemption price | $0.00 |
Selected_Quarterly_Financial_D2
Selected Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||||||||
Selected Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||||||||||
Fee income | $441,895 | [1],[2] | $452,937 | [2] | $395,619 | [2] | $308,348 | [1],[2] | $425,592 | [1],[2] | $506,692 | [2] | $521,844 | [2] | $707,231 | [1],[2] | $1,598,799 | $2,161,359 | $1,957,336 |
Operating loss | -1,470,360 | [1],[2] | -649,444 | [2] | -1,150,453 | [2] | -1,178,626 | [1],[2] | -2,715,742 | [1],[2] | -920,670 | [2] | -826,927 | [2] | -1,615,420 | [1],[2] | -4,448,883 | -6,078,759 | -3,816,128 |
Net Loss | -1,462,073 | [1],[2] | -639,806 | [2] | -1,141,858 | [2] | -1,169,985 | [1],[2] | -2,706,131 | [1],[2] | -911,141 | [2] | -815,771 | [2] | -1,607,568 | [1],[2] | -4,413,722 | -6,040,611 | -3,169,560 |
Basic and diluted net loss per common share | ($0.06) | [1],[2] | ($0.03) | [2] | ($0.05) | [2] | ($0.05) | [1],[2] | ($0.12) | [1],[2],[3] | ($0.04) | [1],[2],[3] | ($0.04) | [1],[2],[3] | ($0.07) | [1],[2],[3] | ($0.19) | ($0.26) | ($0.16) |
Stock and option compensation | 616,000 | 2,305,000 | 1,010,489 | 2,545,060 | 873,888 | ||||||||||||||
Directors' fees | $175,000 | $175,000 | |||||||||||||||||
[1] | The Company incurred higher costs in the first and fourth quarter of 2014 and 2013 relating primarily to: (i) $616,000 and $2,305,000 of stock and option compensation charges in the 2014 and 2013, respectively, relating to common stock and options granted to directors, employees and consultants, and (ii) $175,000 in the first quarter of 2014 and 2013 in directors' fees, respectively. | ||||||||||||||||||
[2] | During the year ended December 31, 2014, it was noted that the Company was applying the expected term of warrants granted in 2009 to certain consultants, rather than the contractual term, which is required by GAAP. The result of using the expected terms of the warrants was an increase to previously reported consultant compensation charges included in Operating Expenses in the Company's Consolidated Statement of Operations.The impact of this change to the prior periods is not considered material to each of the periods presented. | ||||||||||||||||||
[3] | Since per share information is computed independently for each quarter and the full year, based on the respective average number of common shares outstanding, the sum of the quarterly per share amounts does not necessarily equal the per share amounts for the year. |
Subsequent_Event_Details
Subsequent Event (Details) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||
Oct. 03, 2012 | Aug. 28, 2012 | Jul. 30, 2012 | Feb. 28, 2015 | 31-May-14 | Dec. 31, 2012 | |
Subsequent Event [Line Items] | ||||||
Shares issued | 1,250,000 | 1,900,000 | 589,227 | 50,181 | 750,000 | 3,739,227 |
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Shares issued | 50,181 | |||||
Exercise price of warrants | 5 |
SCHEDULE_II_VALUATION_AND_QUAL1
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowance for Doubtful Accounts [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of period | $173,921 | $92,723 | $92,723 |
Charged to costs and expenses | 131,250 | 81,198 | |
Deductions | |||
Balance at end of period | $305,171 | $173,921 | $92,723 |