x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | | 68-0232575 |
(State or Other Jurisdiction of Incorporation or Organization) | | (IRS Employer Identification No.) |
| | |
401 Wilshire Blvd., Suite 1020 | | |
Santa Monica, California | | 90401 |
(Address of Principal Executive Offices) | | (Zip Code) |
Large accelerated filer ¨ | Accelerated filer ¨ | | ||
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Non-accelerated filer ¨ (Do not check if a smaller reporting company) | Smaller reporting company x | |||
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Part I. | Financial Information | | |
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| Item 1. | Financial Statements | 3 |
| | | |
| | Balance Sheets at September 30, 2013 (unaudited) and December 31, 2012 | 3 |
| | | |
| | Statements of Operations and Comprehensive Income (Loss) (unaudited) for the nine months ended September 30, 2013 and 2012 | 4 |
| | | |
| | Statements of Operations and Comprehensive Loss (unaudited) for the three months ended September 30, 2013 and 2012 | 5 |
| | | |
| | Statements of Cash Flows (unaudited) for the nine months ended September 30, 2013 and 2012 | 6 |
| | | |
| | Statement of Changes in Stockholders’ Equity (unaudited) for the nine months ended September 30, 2013 | 7 |
| | | |
| | Notes to Financial Statements (unaudited) | 8 |
| | | |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 15 |
| | | |
| Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 18 |
| | | |
| Item 4. | Controls and Procedures | 18 |
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Part II. | Other Information | | |
| | | |
| Item 1. | Legal Proceedings | 19 |
| | | |
| Item 6. | Exhibits | 19 |
| | | |
Signatures | 21 |
2 | ||
| | September 30, | | December 31, | | ||
| | 2013 | | 2012 | | ||
Assets | | | | | | | |
| | | | | | | |
Current assets: | | | | | | | |
Cash and cash equivalents | | $ | 71,413 | | $ | 113,991 | |
Investments in available-for-sale securities | | | 2,581,268 | | | 2,658,190 | |
Other current assets | | | 41,123 | | | 36,331 | |
Total current assets | | | 2,693,804 | | | 2,808,512 | |
| | | | | | | |
Total Assets | | $ | 2,693,804 | | $ | 2,808,512 | |
| | | | | | | |
Liabilities and stockholders’ equity | | | | | | | |
| | | | | | | |
Current liabilities: | | | | | | | |
Accounts payable | | $ | 11,000 | | $ | - | |
Accrued stock compensation | | | - | | | 15,625 | |
Income taxes payable | | | - | | | 682 | |
Conversion feature liability | | | 71,884 | | | 108,839 | |
Total current liabilities | | | 82,884 | | | 125,146 | |
| | | | | | | |
Commitments and contingencies | | | | | | | |
| | | | | | | |
Redeemable convertible preferred stock, $0.01 par value, 1,000,000 shares authorized; 168 shares issued and outstanding ($168,496 aggregate liquidation value) | | | 168,496 | | | 168,496 | |
| | | | | | | |
Stockholders’ equity: | | | | | | | |
Common stock, $0.01 par value, 100,000,000 shares authorized; 8,561,131 and 8,318,073 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | | | 85,611 | | | 83,180 | |
Common stock to be issued | | | 12,500 | | | - | |
Additional paid-in capital | | | 64,393,477 | | | 64,352,158 | |
Accumulated deficit | | | (62,041,335) | | | (61,917,302) | |
Accumulated other comprehensive loss | | | (7,829) | | | (3,166) | |
Total stockholders’ equity | | | 2,442,424 | | | 2,514,870 | |
Total liabilities and stockholders’ equity | | $ | 2,693,804 | | $ | 2,808,512 | |
3 | ||
| | Nine Months ended September 30, | | ||||
| | 2013 | | 2012 | | ||
| | | | | | | |
Operating expenses | | | | | | | |
| | | | | | | |
General and administrative expenses | | $ | 202,220 | | $ | 203,189 | |
| | | | | | | |
Loss from operations | | | (202,220) | | | (203,189) | |
| | | | | | | |
Other income (expense) | | | | | | | |
Interest and dividend income, net | | | 45,451 | | | 49,011 | |
Change in fair value of conversion feature | | | 36,955 | | | (32,918) | |
Gain on distribution of investment in ClearSign | | | - | | | 811,713 | |
Realized losses on available-for-sale securities | | | (3,419) | | | (1,231) | |
| | | | | | | |
Income (loss) before provision for income taxes | | | (123,233) | | | 623,386 | |
| | | | | | | |
Provision for income taxes | | | 800 | | | 8,013 | |
| | | | | | | |
Net income (loss) | | $ | (124,033) | | $ | 615,373 | |
| | | | | | | |
Other comprehensive income | | | | | | | |
Unrealized gain (loss) on available-for-sale securities | | | (4,663) | | | 6,737 | |
| | | | | | | |
Comprehensive gain (loss) | | $ | (128,696) | | $ | 622,110 | |
| | | | | | | |
Basic earnings (loss) per common share | | $ | (0.01) | | $ | 0.08 | |
| | | | | | | |
Diluted earnings (loss) per common share | | $ | (0.01) | | $ | 0.07 | |
| | | | | | | |
Weighted average number of shares outstanding: | | | | | | | |
Basic | | | 8,469,173 | | | 8,155,137 | |
Diluted | | | 8,469,173 | | | 9,146,290 | |
4 | ||
| | Three Months ended September 30, | | ||||
| | 2013 | | 2012 | | ||
| | | | | | | |
Operating expenses | | | | | | | |
| | | | | | | |
General and administrative expenses | | $ | 54,825 | | $ | 54,934 | |
| | | | | | | |
Loss from operations | | | (54,825) | | | (54,934) | |
| | | | | | | |
Other income (expense) | | | | | | | |
Interest and dividend income, net | | | 12,218 | | | 19,815 | |
Change in fair value of conversion feature | | | (245) | | | 335 | |
Realized losses on available-for-sale securities | | | (14,511) | | | (89) | |
| | | | | | | |
Loss before provision for income taxes | | | (57,363) | | | (34,873) | |
| | | | | | | |
Provision for income taxes | | | - | | | - | |
| | | | | | | |
Net loss | | $ | (57,363) | | $ | (34,873) | |
| | | | | | | |
Other comprehensive income | | | | | | | |
Unrealized gain (loss) on available-for-sale securities | | | 21,063 | | | (5,580) | |
| | | | | | | |
Comprehensive loss | | $ | (36,300) | | $ | (40,453) | |
| | | | | | | |
Basic loss per common share | | $ | (0.01) | | $ | (0.00) | |
| | | | | | | |
Diluted loss per common share | | $ | (0.01) | | $ | (0.00) | |
| | | | | | | |
Weighted average number of shares outstanding: | | | | | | | |
Basic | | | 8,548,393 | | | 8,229,757 | |
Diluted | | | 8,548,393 | | | 8,229,757 | |
5 | ||
| | Nine Months ended September 30, | | ||||
| | 2013 | | 2012 | | ||
| | | | | | | |
Cash flows from operating activities | | | | | | | |
Net income (loss) | | $ | (124,033) | | $ | 615,373 | |
Adjustments to reconcile net income (loss) to net cash used in operating activities | | | | | | | |
Change in fair value of conversion feature | | | (36,955) | | | 32,918 | |
Stock-based compensation | | | 40,625 | | | 46,875 | |
Realized losses on available-for-sale securities | | | 3,419 | | | 1,231 | |
Gain on distribution of investment in ClearSign | | | - | | | (811,713) | |
Changes in operating assets and liabilities | | | | | | | |
Other current assets | | | (4,792) | | | (5,228) | |
Accounts payable | | | 11,000 | | | 8,500 | |
Income taxes payable | | | (682) | | | 7,213 | |
Net cash used in operating activities | | | (111,418) | | | (104,831) | |
| | | | | | | |
Cash flows from investing activities | | | | | | | |
Purchases of available-for-sale securities | | | (1,478,303) | | | (1,492,106) | |
Proceeds received from sales of available-for-sale securities | | | 240,633 | | | - | |
Proceeds received from maturities of available-for-sale securities | | | 1,306,510 | | | 1,976,750 | |
Net cash provided by investing activities | | | 68,840 | | | 484,644 | |
| | | | | | | |
Net increase (decrease) in cash and cash equivalents | | | (42,578) | | | 379,813 | |
| | | | | | | |
Cash and cash equivalents at beginning of period | | | 113,991 | | | 422,984 | |
| | | | | | | |
Cash and cash equivalents at end of period | | $ | 71,413 | | $ | 802,797 | |
| | | | | | | |
Supplemental cash flow disclosure: | | | | | | | |
Income taxes paid | | $ | 2,800 | | $ | 800 | |
| | | | | | | |
Supplemental non-cash disclosure | | | | | | | |
Unrealized gain (loss) on available-for-sale securities | | $ | (4,663) | | $ | 6,737 | |
Dividend of investment in ClearSign common stock | | $ | - | | $ | 1,803,808 | |
6 | ||
| | Common Stock | | Common Stock to be Issued | | Additional Paid-in | | Accumulated Other Comprehensive | | Accumulated | | Comprehensive | | Total Stockholders' | | |||||||||||||
| | Shares | | Amount | | Shares | | Amount | | Capital | | Loss | | Deficit | | Loss | | Equity | | |||||||||
Balance at December 31, 2012 | | | 8,318,073 | | $ | 83,180 | | | - | | | - | | $ | 64,352,158 | | $ | (3,166) | | $ | (61,917,302) | | $ | - | | $ | 2,514,870 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Stock-based compensation | | | 243,058 | | | 2,431 | | | - | | | - | | | 41,319 | | | - | | | - | | | - | | | 43,750 | |
Common stock to be issued | | | - | | | - | | | 89,286 | | $ | 12,500 | | | - | | | - | | | - | | | - | | | 12,500 | |
Comprehensive loss | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net loss | | | - | | | - | | | - | | | | | | - | | | - | | | (124,033) | | | (124,033) | | | - | |
Other comprehensive income | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized loss on investments in securities | | | - | | | - | | | - | | | - | | | - | | | (4,663) | | | - | | | (4,663) | | | - | |
Comprehensive loss | | | - | | | - | | | - | | | - | | | - | | | - | | | - | | $ | (128,696) | | | (128,696) | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at September 30, 2013 | | | 8,561,131 | | $ | 85,611 | | | 89,296 | | $ | 12,500 | | $ | 64,393,477 | | $ | (7,829) | | $ | (62,041,335) | | | | | $ | 2,442,424 | |
7 | ||
8 | ||
· | Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. |
· | Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. |
· | Level 3 - Unobservable inputs which are supported by little or no market activity. |
9 | ||
10 | ||
| | Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | | ||||
U.S. federal agency securities | | $ | 90,778 | | $ | 129 | | $ | (339) | | $ | 90,568 | |
Municipal securities | | | 722,321 | | | 2,506 | | | (659) | | | 724,168 | |
Certificates of deposit | | | 1,567,570 | | | 12,821 | | | (12,821) | | | 1,567,570 | |
Corporate debt securities | | | 208,428 | | | 426 | | | (9,892) | | | 198,962 | |
| | $ | 2,589,097 | | $ | 15,882 | | $ | (23,711) | | $ | 2,581,268 | |
| | Cost | | Unrealized Gains | | Unrealized Losses | | Fair Value | | ||||
U.S. federal agency securities | | $ | 19,592 | | $ | 196 | | $ | - | | $ | 19,788 | |
Municipal securities | | | 1,154,841 | | | 2,882 | | | (2,090) | | | 1,155,633 | |
Certificates of deposit | | | 1,193,494 | | | 8,734 | | | (16,904) | | | 1,185,324 | |
Corporate debt securities | | | 285,524 | | | 4,164 | | | (9,633) | | | 280,055 | |
Equity securities ClearSign common stock | | | 7,905 | | | 9,485 | | | - | | | 17,390 | |
| | $ | 2,661,356 | | $ | 25,461 | | $ | (28,627) | | $ | 2,658,190 | |
| | Cost | | Fair Value | | ||
Due within one year | | $ | 528,115 | | $ | 526,184 | |
Due after one year through three years | | | 1,045,080 | | | 1,042,919 | |
Due after three years | | | 1,015,902 | | | 1,012,165 | |
| | $ | 2,589,097 | | $ | 2,581,268 | |
11 | ||
12 | ||
Expected life of the redemption in years | | 1.0 | |
Risk free interest rate | | 0.10 | % |
Expected annual volatility | | 78.24 | % |
Annual rate of dividends | | 0 | % |
Balance as of January 1, 2013 | | $ | 108,839 | |
Decrease of fair value | | | (36,955) | |
| | | | |
Ending balance as of September 30, 2013 | | $ | 71,884 | |
13 | ||
| | Shares | | Weighted- Average Exercise Price | | Remaining Contractual Term | | ||
Outstanding at beginning of period | | 100,000 | | $ | 0.38 | | | 0.13 | |
Granted | | - | | | - | | | | |
Expired and forfeited | | (100,000) | | | 0.38 | | | | |
Exercised | | - | | | - | | | | |
Outstanding at end of period | | - | | $ | - | | | - | |
| | | | | | | | | |
Exercisable at September 30, 2013 | | - | | $ | - | | | - | |
14 | ||
15 | ||
16 | ||
17 | ||
18 | ||
19 | ||
Exhibit No. | | Description | | |||
3.1 | | Articles of Incorporation (1) | | |||
| | | | |||
| 3.2 | | By-laws (1) | |||
| | | | |||
| 10.1 | | ClearSign Combustion Corporation Subscription Agreement, dated April 20, 2011, by and between Integrated Surgical Systems, Inc. and ClearSign Combustion Corporation (2) | |||
| | | | |||
| 31.1 | | Certification Pursuant to Exchange Act Rule 13a-14(a) of Christopher A. Marlett * | |||
| | | | |||
| 31.2 | | Certification Pursuant to Exchange Act Rule 13a-14(a) of Gary A. Schuman * | |||
| | | | |||
| 32.1 | | Certification Pursuant to Section 1350 of the Sarbanes-Oxley Act of 2002 of Christopher A. Marlett * | |||
| | | | |||
| 32.2 | | Certification Pursuant to Section 1350 of the Sarbanes-Oxley Act of 2002 of Gary A. Schuman * | |||
(1) | Incorporated by reference to Form SB-2 filed on July 30, 1996 (file no. 333-09207) | | ||
(2) | Incorporated by reference to Form 10-Q filed on May 16, 2011 | | ||
| * | Filed herewith | ||
20 | ||
| INTEGRATED SURGICAL SYSTEMS, INC. | |
| | |
| By: | /s/ Gary A. Schuman |
| Gary A. Schuman, Chief Financial Officer | |
| | |
Dated: November 14, 2013 | | |
21 | ||
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 of Integrated Surgical Systems, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
Dated: November 14, 2013 | By: | /s/ Christopher A. Marlett | | | |||
| Christopher A. Marlett | | | ||||
| | Chief Executive Officer | | ||||
1. | I have reviewed this Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 of Integrated Surgical Systems, Inc. (the “registrant”); |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Quarterly Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this Quarterly Report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
Dated: November 14, 2013 | By: | /s/ Gary A. Schuman | | | |||
| Gary A. Schuman | | | ||||
| | Chief Financial Officer | | ||||
1. | The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2013, which this certification accompanies (the "Periodic Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: November 14, 2013 | /s/ | Christopher A. Marlett | | | ||||
| | Christopher A. Marlett | | | ||||
| | | Chief Executive Officer | | ||||
1. | The Quarterly Report on Form 10-Q of the Company for the quarter ended September 30, 2013, which this certification accompanies (the "Periodic Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Periodic Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Dated: November 14, 2013 | /s/ | Gary A. Schuman | | | ||||
| | Gary A. Schuman | | | ||||
| | | Chief Financial Officer | | ||||
Significant Accounting Policies (Policies)
|
9 Months Ended | ||||||||||
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Sep. 30, 2013
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Accounting Policies [Abstract] | |||||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying unaudited financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements and with the rules and regulations under Regulation S-X of the Securities and Exchange Commission for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statement presentation. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary to present fairly the financial position as of September 30, 2013, the results of operations and cash flows for the nine months then ended have been included. These financial statements should be read in conjunction with the financial statements of the Company and the Company’s management discussion and analysis included in the Company’s Form 10-K for the year ended December 31, 2012. Interim results are not necessarily indicative of the results for a full year. |
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Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses for the reporting period. Actual results could differ from those estimates. |
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Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and cash equivalents Cash and cash equivalents include checking and money market accounts held in two financial institutions. The Company has a checking account at one institution with a balance of approximately $22,000 at September 30, 2013. The funds in this account are fully guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. The Company has a money market account in a brokerage account with a second financial institution, with a money market cash balance of approximately $50,000 at September 30, 2013. Assets in this brokerage account are protected by the Securities Investor Protection Corporation (“SIPC”) up to $500,000. The Company had no uninsured cash and cash equivalents at September 30, 2013. |
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Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Compensation costs for stock, warrants or options issued to employees and non-employees are based on the fair value method and accounted for in accordance with FASB ASC 718, “ Compensation Stock Compensation .” The value of warrants and options are calculated using a Black-Scholes Model, using the market price of the Company’s common stock on the date of issuance for the employee options and the date of commitment for non-employee options, an expected dividend yield of zero, the expected life of the warrants or options and the expected volatility of the Company’s common stock. |
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Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block] | Investment in Available-for-Sale Securities The Company has a portfolio of investments in available-for-sale debt securities, which consist of fixed income debt securities and equity securities, which are accounted for in accordance with FASB ASC 320, “Investments - Debt and Equity Securities.” Management determines the appropriate classification of the securities at the time they are acquired and evaluates the appropriateness of such classifications at each balance sheet date. Available-for-sale securities are stated at fair value, and unrealized holding gains and losses, net of the related deferred tax effect, if any, are reported as other comprehensive income, a separate component of stockholders’ equity. |
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Fair Value Measurement, Policy [Policy Text Block] | Fair Value Measurement FASB ASC 820“Fair Value Measurements and Disclosures” clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that is determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, FASB ASC 820 establishes a three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies in measuring fair value:
The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In accordance with FASB ASC 820, the Company measures its cash equivalents, investments in available-for-sale securities, and derivative liability at fair value. The Company’s cash equivalents and investments in available-for-sale securities are classified within Level 1 by using quoted market prices. The Company’s derivative liability is classified within Level 3. The carrying value of other current assets and liabilities are considered to be representative of their respective fair values because of the short-term nature of those instruments. |
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Income Tax, Policy [Policy Text Block] | Income Taxes Deferred income taxes have been provided for temporary differences between financial statement and income tax reporting under the liability method, using expected tax rates and laws that are expected to be in effect when the differences are expected to reverse. A valuation allowance is provided when realization is not considered more likely than not. The Company applies the provisions of FASB ASC 740, “Income Taxes.” ASC 740 clarifies the accounting for uncertainty in income taxes recognized in the Company’s financial statements in accordance with ASC 740, “Income Taxes,” and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company’s policy is to classify expenses as a result of income tax assessments as interest expense for interest charges and as penalties in general and administrative expenses for penalty assessments. |
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Cost Basis Method Valuation [Policy Text Block] | Cost-Basis Method Valuation The Company’s non-marketable equity investment was previously recorded using the cost-basis method of accounting, and was classified as a long-term asset on the accompanying balance sheet as permitted by FASB ASC 325, “Cost Method Investments”, as the Company owned less than 20% of the voting securities and did not have the ability to exercise significant influence over operating and financial policies of the entity. In 2012, the Company distributed a majority of this investment to its stockholders and reclassified the remaining shares as available-for-sale securities. During the same period, the investee’s stock became publicly traded and its fair value became readily available. Therefore, these shares have been accounted for in accordance with FASB ASC 320, “Investment Debt and Equity Securities”. See Note 5, “Investment in ClearSign” for more information. The remaining shares were sold during the three months ended June 30, 2013. |
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Recently Announced Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In May 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2011-04, “Fair Value Measurement” (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs. This guidance amends the disclosure requirements related to recurring and nonrecurring fair value measurements and includes the following provisions: application of the concepts of highest and best use and valuation premise, introduction of an option to measure groups of offsetting assets and liabilities on a net basis, incorporation of certain premiums and discounts in fair value measurements, and the measurement of fair value of certain instruments classified in shareholders’ equity. In addition, the amended guidance includes several new fair value disclosure requirements, including, among other things, information about valuation techniques and unobservable inputs used in Level 3 fair value measurements and a narrative description of Level 3 measurements’ sensitivity to changes in unobservable inputs. The guidance became effective for the reporting period beginning January 1, 2012. The adoption of this guidance did not have a material impact on the Company’s financial statements. In June 2011, the FASB issued Accounting Standards Update 2011-05, “Comprehensive Income” (Topic 220): Presentation of Comprehensive Income. This amended guidance eliminates the option for reporting entities to present components of other comprehensive income in the statement of stockholders’ equity. Instead, this amended guidance now requires reporting entities to present all non-owner changes in stockholders’ equity either as a single continuous statement of comprehensive income or as two separate but consecutive statements. The guidance became effective for the reporting period beginning January 1, 2012. The adoption of this guidance did not have a material impact on the Company’s financial statements. |
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New Accounting Pronouncements, Policy [Policy Text Block] | Recently Announced Accounting Pronouncements In July 2013, the FASB issued Accounting Standards Update 2013-11, “Income Taxes” (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. This amended guidance will require an unrecognized tax benefit, or a portion of an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. The guidance will become effective for the reporting period beginning January 1, 2014. The adoption of this guidance is not estimated to have a material impact on the Company’s financial statements. Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements. |
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