Quarterly report pursuant to Section 13 or 15(d)

Summary of Significant Accounting Policies (Tables)

v3.8.0.1
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
Schedule of Change in Fair Value of Derivative Liabilities

    Convertible debt, current portion     Convertible debt, long term portion     Warrant Derivative Liability     Conversion Option Liability     Warrants to acquire common stock     Additional Paid-in Capital     Accumulated deficit  
Balance, January 1, 2017 (Prior to adoption of ASU 2017-11)   $ 4,005,702     $ 529,742     $ 1,685,108     $ 951,059     $ 6,325,102     $ 27,544,265     $ (42,264,190 )
Reclassified derivative liabilities and cumulative effect of adoption     (769,316 )     (154,152 )   $ (1,661,795 )     (951,059 )   $ 2,525,623       1,377,108       (2,213,345 )
Balance, January 1, 2017 (After adoption of ASU 2017-11)   $ 3,236,386     $ 375,590     $ 23,313     $ -     $ 8,850,725     $ 28,921,373     $ (44,477,535 )

Summary of Customer Concentration Risk Percentage

The following table illustrates the level of concentration as a percentage of total revenues during the three months and nine months ended September 30, 2017 and 2016. The Top Five Customers category may include federal agency revenues if applicable.

 

    For the Three Months Ended  
    September 30,  
    2017     2016  
Top Five Customers     73 %     60 %
Federal Agencies     30 %     9 %

 

    For the Nine Months Ended  
    September 30,  
    2017     2016  
Top Five Customers     38 %     31 %
Federal Agencies     19 %     3 %

 

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of September 30, 2017 and December 31, 2016. The Top Five Customers category may include federal agency revenues if applicable

 

    September 30, 2017     December, 31, 2016  
Top Five Customers     74 %     82 %
Federal Agencies     28 %     1 %

Summary of Computation of Loss Per Share

The following table illustrates our computation of loss per share for the three months and nine months ended September 30, 2017 and 2016:

 

    For the Three Months Ended     For the Nine Months Ended  
    September 30,     September 30,  
    2017     2016     2017     2016  
Numerator:                                
Net loss   $ (2,343,576 )   $ (945,207 )   $ (7,889,676 )   $ (5,933,768 )
Denominator for basic and diluted loss per share:                                
Weighted average common stock shares outstanding     1,133,791       980,846       1,084,370       871,325  
                                 
Loss per common share – basic and diluted   $ (2.07 )   $ (0.96 )   $ (7.28 )   $ (6.81 )

Summary of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series G Convertible Preferred Stock, Series H and H2 Convertible Preferred Stock, Series J Convertible Preferred Stock and Series K Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

 

    As of September 30,  
    2017     2016  
Stock options     249,636       175,642  
Convertible debt     828,870       899,058  
Common stock warrants     902,033       827,490  
Convertible preferred stock:                
Series D Convertible Preferred Stock     25,000       25,000  
Series G Convertible Preferred Stock     26,857       28,857  
Series H Convertible Preferred Stock     33,334       33,334  
Series H2 Convertible Preferred Stock     70,000       70,000  
Series J Convertible Preferred Stock     115,267       117,367  
Series K Convertible Preferred Stock     227,200       227,200  
      2,478,197       2,403,948  

Summary of Stock Based Compensation Expense

The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Consolidated Statements of Operations:

 

    For the Three Months Ended     For the Nine Months Ended  
    September 30,     September 30,  
    2017     2016     2017     2016  
Research and development   $ 37,345     $ 14,735     $ 76,263     $ 50,766  
Selling and marketing     21,778       9,911       46,112       32,404  
General and administrative     80,276       65,854       196,535       199,641  
Total stock-based compensation expense   $ 139,399     $ 90,500     $ 318,910     $ 282,811  

Schedule of Liabilities Measured at Fair Value On Recurring Basis

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2017:

 

          Fair value measurements at
September 30, 2017 using: 		 
    September 30, 2017     Quoted
prices in
active
markets
(Level 1) 		   

Significant
other
observable
inputs

(Level 2)

    

Significant
unobservable
inputs

(Level 3)

  
Available-For-Sale Equity Securities     25,986       25,986              -                 -  
Total Financial Assets   $ 25,986     $ 25,986     $ -     $ -  

 

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the nine months ended September 30, 2017:

 

    December 31,
2016 		    Issuance
fair
value 		    Change in
fair value 		    Settlement     Adjustment due to ASU 2017-11     September 30, 2017  
Series D Preferred Stock Purchase Warrants   $ 23,313     $            -     $ 26,014     $ (49,327 )               -     $                 -  
Warrants Issued with Convertible Debt     1,661,795       -       -       -       (1,661,795 )     -  
Conversion Option Derivative Liabilities     951,059       -       -       -       (951,059 )            -  
Total Derivatives   $ 2,636,167     $ -     $ 26,014     $ (49,327 )   $ (2,612,854 )     -  

 

Refer to this Note for accounting of early adoption of ASU 2017-11.

 

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016:

 

          Fair value measurements at
December 31, 2016 using: 		 
    December 31, 2016     Quoted prices in
active markets
(Level 1) 		    Significant other
observable inputs
(Level 2) 		    Significant
unobservable
inputs
(Level 3) 		 
Available-For-Sale Equity Securities     25,865       25,865       -       -  
Total Financial Assets   $ 25,865     $ 25,865     $            -     $      -  

 

    December 31, 2016     Quoted prices in
active markets
(Level 1) 		    Significant other
observable inputs
(Level 2) 		    Significant
unobservable
inputs
(Level 3) 		 
Series D Preferred Stock Purchase Warrants   $ 23,313           -       -     $ 23,313  
Warrants Issued with Convertible Debt     1,661,795                   -                 -       1,661,795  
Conversion Option Derivative Liabilities     951,059       -       -       951,059  
Total Derivatives   $ 2,636,167     $ -     $ -     $ 2,636,167