2014 Q4 Form 10-K Financial Statement

#000114420416094443 Filed on April 14, 2016

View on sec.gov

Income Statement

Concept 2014 Q4 2014 2013 Q4
Revenue $70.00K $628.0K $370.0K
YoY Change -81.08% 54.68%
Cost Of Revenue $160.0K $100.0K
YoY Change 60.0%
Gross Profit $470.0K $270.0K
YoY Change 56.67%
Gross Profit Margin 74.84% 72.97%
Selling, General & Admin $8.240M $1.320M
YoY Change 30.79% -31.61%
% of Gross Profit 1753.19% 488.89%
Research & Development $7.597M $690.0K
YoY Change 38.94% -60.34%
% of Gross Profit 1616.38% 255.56%
Depreciation & Amortization $1.010M $287.0K $1.060M
YoY Change -4.72% -26.97% 103.85%
% of Gross Profit 61.06% 392.59%
Operating Expenses $5.470M $7.597M $3.070M
YoY Change 78.18% 38.94% -26.73%
Operating Profit -$19.24M -$2.800M
YoY Change 39.1% -33.17%
Interest Expense -$50.00K -$180.0K -$40.00K
YoY Change 25.0% -91.93% -78.95%
% of Operating Profit
Other Income/Expense, Net $440.0K $0.00 $0.00
YoY Change -100.0%
Pretax Income -$5.010M -$18.98M -$3.770M
YoY Change 32.89% -30.86% -19.27%
Income Tax $0.00 $0.00 $0.00
% Of Pretax Income
Net Earnings -$5.010M -$18.98M -$3.770M
YoY Change 32.89% -30.86% -19.27%
Net Earnings / Revenue -7157.14% -3021.97% -1018.92%
Basic Earnings Per Share
Diluted Earnings Per Share -$14.08B -$59.81B -$17.50B
COMMON SHARES
Basic Shares Outstanding 25.01M shares 12.65M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2014 Q4 2014 2013 Q4
SHORT-TERM ASSETS
Cash & Short-Term Investments $760.0K $760.0K $5.520M
YoY Change -86.23% -86.23% 1944.44%
Cash & Equivalents $758.0K $5.517M
Short-Term Investments
Other Short-Term Assets $410.0K $410.0K $50.00K
YoY Change 720.0% 720.0% 150.0%
Inventory $4.070M $4.070M $2.916M
Prepaid Expenses
Receivables $702.0K $700.0K $788.0K
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $5.941M $5.940M $10.62M
YoY Change -44.06% -44.07% 3600.35%
LONG-TERM ASSETS
Property, Plant & Equipment $816.0K $820.0K $806.0K
YoY Change 1.24% 1.23% -53.28%
Goodwill
YoY Change
Intangibles $16.38M $18.20M
YoY Change -9.97% 3.34%
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets $17.20M $17.20M $19.00M
YoY Change -9.49% -9.47% -1.71%
TOTAL ASSETS
Total Short-Term Assets $5.941M $5.940M $10.62M
Total Long-Term Assets $17.20M $17.20M $19.00M
Total Assets $23.14M $23.14M $29.62M
YoY Change -21.89% -21.88% 50.98%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $868.0K $870.0K $1.841M
YoY Change -52.85% -52.72% 181.07%
Accrued Expenses $511.0K $550.0K $772.0K
YoY Change -33.81% -50.45% 2.39%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $120.0K $120.0K $130.0K
YoY Change -7.69% -7.69% -99.24%
Total Short-Term Liabilities $4.404M $4.400M $5.088M
YoY Change -13.44% -13.56% -78.36%
LONG-TERM LIABILITIES
Long-Term Debt $2.000M $2.000M $2.120M
YoY Change -5.66% -5.66% 6.0%
Other Long-Term Liabilities
YoY Change
Total Long-Term Liabilities $2.000M $2.000M $2.120M
YoY Change -5.66% -5.66% 6.0%
TOTAL LIABILITIES
Total Short-Term Liabilities $4.404M $4.400M $5.088M
Total Long-Term Liabilities $2.000M $2.000M $2.120M
Total Liabilities $6.404M $6.400M $7.206M
YoY Change -11.13% -11.23% -71.75%
SHAREHOLDERS EQUITY
Retained Earnings -$170.5M -$151.6M
YoY Change 12.52% 22.12%
Common Stock $186.9M $174.0M
YoY Change 7.42% 47.15%
Preferred Stock
YoY Change
Treasury Stock (at cost) $22.00K $22.00K
YoY Change 0.0% 0.0%
Treasury Stock Shares 229.0 shares 2.284K shares
Shareholders Equity $16.36M $16.74M $22.42M
YoY Change
Total Liabilities & Shareholders Equity $23.14M $23.14M $29.62M
YoY Change -21.89% -21.88% 50.98%

Cashflow Statement

Concept 2014 Q4 2014 2013 Q4
OPERATING ACTIVITIES
Net Income -$5.010M -$18.98M -$3.770M
YoY Change 32.89% -30.86% -19.27%
Depreciation, Depletion And Amortization $1.010M $287.0K $1.060M
YoY Change -4.72% -26.97% 103.85%
Cash From Operating Activities -$2.810M -$14.90M -$6.160M
YoY Change -54.38% 3.47% 363.16%
INVESTING ACTIVITIES
Capital Expenditures -$690.0K $134.0K -$330.0K
YoY Change 109.09% -54.42% -75.37%
Acquisitions
YoY Change
Other Investing Activities
YoY Change
Cash From Investing Activities -$690.0K -$1.910M -$330.0K
YoY Change 109.09% -34.14% -75.37%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $11.22M
YoY Change -35.27%
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 2.360M 12.05M 9.440M
YoY Change -75.0% -46.54% 238.35%
NET CHANGE
Cash From Operating Activities -2.810M -14.90M -6.160M
Cash From Investing Activities -690.0K -1.910M -330.0K
Cash From Financing Activities 2.360M 12.05M 9.440M
Net Change In Cash -1.140M -4.760M 2.950M
YoY Change -138.64% -190.84% 2358.33%
FREE CASH FLOW
Cash From Operating Activities -$2.810M -$14.90M -$6.160M
Capital Expenditures -$690.0K $134.0K -$330.0K
Free Cash Flow -$2.120M -$15.03M -$5.830M
YoY Change -63.64% 2.31% -58400.0%

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300000 USD
CY2014 us-gaap Related Party Transaction Expenses From Transactions With Related Party
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300000 USD
CY2015 us-gaap Revenue From Related Parties
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156000 USD
CY2014 us-gaap Revenue From Related Parties
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0 USD
CY2015 us-gaap Current Federal Tax Expense Benefit
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0 USD
CY2014 us-gaap Current Federal Tax Expense Benefit
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0 USD
CY2015 us-gaap Current State And Local Tax Expense Benefit
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0 USD
CY2014 us-gaap Current State And Local Tax Expense Benefit
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0 USD
CY2015 us-gaap Deferred Federal Income Tax Expense Benefit
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-6923000 USD
CY2014 us-gaap Deferred Federal Income Tax Expense Benefit
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-5530980 USD
CY2015 us-gaap Deferred State And Local Income Tax Expense Benefit
DeferredStateAndLocalIncomeTaxExpenseBenefit
-741000 USD
CY2014 us-gaap Deferred State And Local Income Tax Expense Benefit
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-547020 USD
CY2015 us-gaap Income Tax Expense Benefit
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0 USD
CY2014 us-gaap Income Tax Expense Benefit
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0 USD
CY2015 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.340 pure
CY2014 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0.35 pure
CY2015 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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0.0415 pure
CY2014 us-gaap Effective Income Tax Rate Reconciliation State And Local Income Taxes
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0.0550 pure
CY2015 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
EffectiveIncomeTaxRateReconciliationOtherAdjustments
0.0477 pure
CY2014 us-gaap Effective Income Tax Rate Reconciliation Other Adjustments
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-0.0190 pure
CY2015 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-0.4292 pure
CY2014 us-gaap Effective Income Tax Rate Reconciliation Change In Deferred Tax Assets Valuation Allowance
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-0.3860 pure
CY2015 us-gaap Effective Income Tax Rate Continuing Operations
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0 pure
CY2014 us-gaap Effective Income Tax Rate Continuing Operations
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0 pure
CY2015Q4 us-gaap Operating Loss Carryforwards
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140700000 USD
CY2015Q4 us-gaap Deferred Tax Assets Tax Credit Carryforwards Research
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2300000 USD
CY2015Q4 us-gaap Furniture And Fixtures Gross
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3157000 USD
CY2014Q4 us-gaap Furniture And Fixtures Gross
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2930000 USD
CY2015Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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2365000 USD
CY2014Q4 us-gaap Accumulated Depreciation Depletion And Amortization Property Plant And Equipment
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2114000 USD
CY2015 us-gaap Depreciation
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251000 USD
CY2014 us-gaap Depreciation
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287000 USD
CY2014 us-gaap Prior Period Reclassification Adjustment
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163000 USD
CY2015Q4 us-gaap Accounts Receivable Gross Current
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572000 USD
CY2014Q4 us-gaap Accounts Receivable Gross Current
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252000 USD
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156000 USD
CY2014Q4 us-gaap Accounts Receivable Related Parties Current
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480000 USD
CY2015Q4 us-gaap Inventory Finished Goods
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1803000 USD
CY2014Q4 us-gaap Inventory Finished Goods
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2186000 USD
CY2015Q4 us-gaap Inventory Gross
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3916000 USD
CY2014Q4 us-gaap Inventory Gross
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4270000 USD
CY2015Q4 us-gaap Inventory Raw Materials
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2113000 USD
CY2014Q4 us-gaap Inventory Raw Materials
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2084000 USD
CY2015Q4 us-gaap Inventory Valuation Reserves
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1061000 USD
CY2014 xgti Reversal Of Accrued Bonus Expenses
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25000 USD
CY2015 us-gaap Inventory Write Down
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0 USD
CY2014 us-gaap Inventory Write Down
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159000 USD
CY2015 us-gaap Proceeds From Related Party Debt
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2330000 USD
CY2014 us-gaap Proceeds From Related Party Debt
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285000 USD
CY2015 us-gaap Repayments Of Related Party Debt
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1015000 USD
CY2014Q4 us-gaap Inventory Valuation Reserves
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200000 USD
CY2015Q4 us-gaap Commitments And Contingencies
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USD
CY2014Q4 us-gaap Commitments And Contingencies
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USD
CY2015 us-gaap Use Of Estimates
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CY2015 us-gaap Concentration Risk Credit Risk
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<div style="MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif "> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><b><font style="FONT-SIZE: 10pt"></font></b> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif" align="justify"><b>Concentrations of Credit Risk for Cash and Accounts Receivable</b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">The Company does not have any off-balance-sheet concentrations of credit risk. Credit risk is the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company&#8217;s credit risk is primarily attributable to its cash and account receivables. The Company&#8217;s policy is to maintain its cash with high credit quality financial institutions to limit its risk of loss exposure. During the year, the Company had cash balances in excess of the federally insured limits of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">250,000</font>. The funds are on deposit with Wells Fargo Bank, N.A. Consequently, the Company does not believe that there is a significant risk having these balances in one financial institution. The Company has not experienced any losses in its bank accounts during the years ended December 31, 2015 and 2014. For customers, management assesses the credit quality of the customer, taking into account its financial position, past experience and other factors.</font></div> </div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
CY2014Q4 us-gaap Preferred Stock Shares Issued
PreferredStockSharesIssued
750000 shares
CY2015Q4 us-gaap Preferred Stock Shares Outstanding
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0 shares
CY2015Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.00001
CY2014Q4 us-gaap Common Stock Par Or Stated Value Per Share
CommonStockParOrStatedValuePerShare
0.00001
CY2014 us-gaap Repayments Of Notes Payable
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0 USD
CY2015 us-gaap Payments Of Debt Issuance Costs
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163000 USD
CY2014 us-gaap Payments Of Debt Issuance Costs
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0 USD
CY2015Q4 us-gaap Capital Leases Future Minimum Payments Due Current
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66000 USD
CY2015Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000 shares
CY2014Q4 us-gaap Common Stock Shares Authorized
CommonStockSharesAuthorized
100000000 shares
CY2015Q4 us-gaap Capital Leases Future Minimum Payments Due In Three Years
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24000 USD
CY2015Q4 us-gaap Capital Leases Future Minimum Payments Due In Four Years
CapitalLeasesFutureMinimumPaymentsDueInFourYears
16000 USD
CY2015Q4 us-gaap Capital Leases Future Minimum Payments Due In Five Years
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14000 USD
CY2015Q4 us-gaap Capital Leases Future Minimum Payments Interest Included In Payments
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26000 USD
CY2015Q4 us-gaap Convertible Notes Payable Current
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781000 USD
CY2014Q4 us-gaap Convertible Notes Payable Current
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0 USD
CY2015Q4 us-gaap Capital Leases Future Minimum Payments Present Value Of Net Minimum Payments
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160000 USD
CY2015Q4 us-gaap Capital Leases Future Minimum Payments Remainder Of Fiscal Year
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54000 USD
CY2015 us-gaap Current Income Tax Expense Benefit
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0 USD
CY2014 us-gaap Current Income Tax Expense Benefit
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0 USD
CY2015 us-gaap Deferred Income Tax Expense Benefit
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7664000 USD
CY2014 us-gaap Deferred Income Tax Expense Benefit
DeferredIncomeTaxExpenseBenefit
6078000 USD
CY2015Q3 us-gaap Stockholders Equity Reverse Stock Split
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1-for-10
CY2015 us-gaap Operating Leases Rent Expense Net
OperatingLeasesRentExpenseNet
484000 USD
CY2014 us-gaap Operating Leases Rent Expense Net
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437000 USD
CY2015 us-gaap Guarantees Indemnifications And Warranties Policies
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CY2015Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
20227701 shares
CY2014Q4 us-gaap Common Stock Shares Issued
CommonStockSharesIssued
2617622 shares
CY2015Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
20227472 shares
CY2014Q4 us-gaap Common Stock Shares Outstanding
CommonStockSharesOutstanding
2617393 shares
CY2015Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
229 shares
CY2014Q4 us-gaap Treasury Stock Shares
TreasuryStockShares
229 shares
CY2015Q4 us-gaap Convertible Long Term Notes Payable
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2000000 USD
CY2014Q4 us-gaap Convertible Long Term Notes Payable
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2000000 USD
CY2015Q4 us-gaap Accounts Receivable Gross
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728000 USD
CY2014Q4 us-gaap Accounts Receivable Gross
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732000 USD
CY2015 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
AllowanceForDoubtfulAccountsReceivableWriteOffs
0 USD
CY2014 us-gaap Allowance For Doubtful Accounts Receivable Write Offs
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257000 USD
CY2015 us-gaap Adjustment Of Warrants Granted For Services
AdjustmentOfWarrantsGrantedForServices
640000 USD
CY2014 us-gaap Adjustment Of Warrants Granted For Services
AdjustmentOfWarrantsGrantedForServices
0 USD
CY2015 xgti Reversal Of Accrued Bonus Expenses
ReversalOfAccruedBonusExpenses
0 USD
CY2015Q4 us-gaap Capital Leases Future Minimum Payments Due In Two Years
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66000 USD
CY2015Q4 us-gaap Allowance For Doubtful Accounts Receivable Current
AllowanceForDoubtfulAccountsReceivableCurrent
87000 USD
CY2015Q4 xgti Accounts Receivable Related Parties Net Current
AccountsReceivableRelatedPartiesNetCurrent
138000 USD
CY2014Q4 xgti Accounts Receivable Related Parties Net Current
AccountsReceivableRelatedPartiesNetCurrent
480000 USD
CY2015Q4 xgti Deferred Revenue Related Party
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13000 USD
CY2014Q4 xgti Deferred Revenue Related Party
DeferredRevenueRelatedParty
480000 USD
CY2015 us-gaap Loss Contingency Disclosures
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FONT-WEIGHT: 400" width="1%"> <div style="CLEAR:both;CLEAR: both">&#160; <font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt"> </font></div> </td> </tr> </table> </div> </div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt; size: 8.5in 11.0in" align="center"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0pt 0px; FONT: 10pt Times New Roman, Times, Serif; size: 8.5in 11.0in" align="justify">In connection with the acquisition of IMT, the Company assumed the lease obligations relating to IMT&#8217;s were house and office space. Future payments under such lease will amount to $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">360,000</font> for the year ending December 31, 2016 and $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">60,000</font> for the year ending December 31, 2017. 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For the years ended December 31, 2015 and 2014, the Company did not have any legal actions pending.</font></div> </div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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IMT is a trusted provider of mission-critical wireless video solutions to state, local and federal police departments.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><b><font style="FONT-SIZE: 10pt">Reverse Stock Split</font></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">On July 9, 2015, the Company&#8217;s Board of Directors (the &#8220;Board&#8221;) approved a resolution to amend the Company&#8217;s Certificate of Incorporation and to authorize the Company to effect a reverse split of the Company&#8217;s outstanding common stock at a ratio of 1-for-10. On July 17, 2015, the Company effected a one-for-ten reverse stock split. Upon effectiveness of the reverse stock split, every 10 shares of outstanding common stock decreased to one share of common stock. Throughout this report the reverse split was retroactively applied to all periods presented.</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">&#160;</font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><b><font style="FONT-SIZE: 10pt">Delisting Notice</font></b></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt"><font style="FONT-SIZE: 10pt">&#160;</font></font></div> <div style="CLEAR:both; FONT-FAMILY:Times New Roman;FONT-SIZE: 10pt;MARGIN: 0in 0in 0pt" align="justify"><font style="FONT-SIZE: 10pt">On September 28, 2015, the Company received a written notification from the Nasdaq indicating that the Company was not in compliance with Nasdaq Listing Rule 5550(a)(2) relating to the minimum bid requirements as the Company&#8217;s closing bid price was below $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1.00</font> per share for the previous thirty (30) consecutive business days.</font><font style="FONT-SIZE: 10pt">&#160;Pursuant to Nasdaq Listing Rule 5810(c)(3)(A), the Company has been granted a 180 calendar day compliance period, or until March 28, 2016, to regain compliance with the minimum bid price requirements. During the compliance period, the Company&#8217;s shares of common stock will continue to be listed and traded on the Nasdaq Capital Market. To regain compliance, the closing bid of the Company&#8217;s shares of common stock must meet or exceed $1.00 per share for at least ten (10) consecutive business days during the 180 calendar day grace period. On March 29, 2016, the Company received written notice from Nasdaq, that it had granted the Company an additional 180 calendar days, or until September 26, 2016, to regain compliance with the minimum bid price&#160;</font> <font style="FONT-SIZE: 10pt"><font style="FONT-SIZE: 10pt">requirement of $<font style="FONT-FAMILY: 'Times New Roman','serif'; FONT-SIZE: 10pt">1.00</font> per&#160;share for continued listing on Nasdaq, pursuant to Nasdaq Listing Rule 5810(c)(3)(A)(ii).</font></font></div> </div><table border="0" style="width:100%; table-layout:fixed;" cellspacing="0" cellpadding="0"><tr><td></td></tr></table>
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CY2015 us-gaap Increase Decrease In Due To Related Parties
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0 USD
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CY2015 us-gaap Effect Of Lifo Inventory Liquidation On Income
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