Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2012

Dec. 31, 2011

Consolidation, Policy [Policy Text Block]

Principles of Consolidation—The consolidated financial statements include the accounts of Lucid and LIL. All inter-company accounts and transactions have been eliminated in consolidation.

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 disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. On an ongoing basis, the Company evaluates its estimates, including those related to revenue recognition, allowances for doubtful accounts, inventories, impairment of long-lived assets, accrued expenses, income taxes including the valuation allowance for deferred tax assets, valuation of warrants, and stock-based compensation. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition—The Company recognizes revenue when evidence of an arrangement exists, title has passed (generally upon shipment) or services have been rendered, the selling price is fixed or determinable and collectability is reasonable assured. When transactions include multiple deliverables, the Company applies the accounting guidance for multiple element arrangements to determine if those deliverables constitute separate units of accounting. Revenue on arrangements that include multiple elements is allocated to each element based on the relative fair value of each element. Each element’s allocated revenue is recognized when the revenue recognition criteria for that element have been met. Multiple element arrangements have not been material through December 31, 2012. When allocating arrangement consideration, fair value is generally determined by objective evidence, which is based on the price charged when each element is sold separately. All costs related to product shipment are recognized at time of shipment and included in cost of revenue. The Company does not provide for rights of return to customers on product sales.

When product sales do not include installation or training, such as for all distributor sales and many direct sales, revenue is recognized upon shipment. Certain direct sales contracts require installation at the customer’s location prior to acceptance. As such, revenue recognition on these contracts is delayed until all aspects of delivery, including installation, are complete. In addition, should the contract include training, revenue recognition is delayed until training is complete.

Grant revenue is recognized as it is earned, as determined by the terms of the grant, and is presented net of expenses directly related to the project being funded by the grant.

Maintenance and service support contract revenues are recognized ratably over the term of the service contracts.

Licensing fees related to the sale of a perpetual license to use certain technology in certain geographic areas are being recognized as earned

Standard Product Warranty, Policy [Policy Text Block]

Product Warranty—Medical devices sold are covered by a warranty, ranging from one year to two years, for which estimated contractual warranty obligations are recorded as an expense at the time of shipment

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk—Financial instruments that subject the Company to concentrations of credit risk consist primarily of cash and accounts receivable. The Company maintains its cash in demand deposit and money market accounts at financial institutions. The cash balances are insured by the FDIC up to $250,000 per depositor with unlimited insurance for funds in noninterest-bearing transaction accounts through December 31, 2012. At times, the amounts in these accounts may exceed the federally insured limits. The Company has not experienced any losses in these accounts and believes it is not exposed to any significant credit risk with respect to cash.

The Company provides credit in the normal course of business to the majority of its customers. Accounts for which no payments have been received for several months are considered delinquent and customary collection efforts are initiated. After all collection efforts are exhausted the account is written-off. Allowance for doubtful accounts is based on estimates of probable losses related to accounts receivable balances. At December 31, 2012 and 2011, management has determined that no allowance is required.

For the year ended December 31, 2012, the Company had sales of approximately $1.0 million and $0.4 million to two distributors, respectively. These two distributors accounted for 49% and 13%, respectively, of the Company’s accounts receivable balance at December 31, 2012

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents—The Company defines cash and cash equivalents as money market funds and other highly liquid investments with original maturities of 90 days or less. Cash and cash equivalents are stated at cost, which approximates fair value. Cash equivalents are subject to credit risk and are primarily maintained in a money market fund

Inventory, Policy [Policy Text Block]

Inventories—Inventories are stated at the lower of cost, determined on a first-in, first-out (FIFO) method, or market. Excess, obsolete or expired inventory are adjusted to net realizable value, based primarily on how long the inventory has been held as well as the Company’s estimate of forecasted net sales of that product. A significant change in the timing or level of demand for our products may result in recording additional adjustments to the net realizable value of excess, obsolete or expired inventory in the future.

Property, Plant and Equipment, Policy [Policy Text Block]

Property and Equipment—Property and equipment is stated at cost, less accumulated depreciation. Repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the related assets as follows:

Computer hardware and software	2 - 3 years
Furniture and fixtures	5 years
Machinery and equipment	2 - 5 years
Office equipment	5 years
Vehicles	5 years

Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]

Impairment of Long-Lived Assets—The Company assesses the impairment of definite lived assets when events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Factors that are considered in deciding when to perform an impairment review include significant under-performance of a business or product line in relation to expectations, significant negative industry or economic trends, and significant changes or planned changes in the use of the assets.

Recoverability potential is measured by comparing the carrying amount of the asset group to the asset group’s related total future undiscounted cash flows. If an asset group’s carrying value is not recoverable through its related cash flows, the asset group is considered to be impaired. Impairment is measured by comparing the asset group’s carrying amount to its fair value.

When it is determined that useful lives of assets are shorter than originally estimated, and there are sufficient cash flows to support the carrying value of the assets, the rate of depreciation is accelerated in order to fully depreciate the assets over their new shorter useful lives. The Company recognized an impairment loss on long-lived assets of approximately $50,000 in 2012 and no impairment losses in 2011.

Deferred Charges, Policy [Policy Text Block]

Deferred Financing Costs, Net—Deferred financing costs, net, represent amounts incurred in connection with the Company’s 2012 Term Loan, and previously, the Company’s 2010/2011 Convertible Debt Offering and 2009 Convertible Debt Offering. These amounts are amortized over the period from the date of issuance to the contractual maturity date or conversion date if earlier. The Company expensed deferred fees of approximately $8,000 and $0.3 million for the years ended December 31, 2012 and December 31, 2011, respectively, which are included in depreciation and amortization in the consolidated statement of cash flows, and as interest expense within the consolidated statement of operations. In December 2011, the Company recorded $0.2 million of deferred financing costs, net to loss on extinguishment of debt. These costs related to debt that converted to equity upon completion of the initial public offering.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements—Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants at the measurement date. The guidance establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the assets or liability developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows:

Level 1—Valuations based on quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2—Valuation is determined from quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar instruments in markets that are not active or by model-based techniques in which all significant inputs are observable in the market.

Level 3—Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

The availability of observable inputs can vary and is affected by a wide variety of factors, including, the type of asset/liability, whether the asset/liability is established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.

In such cases, for disclosure purposes the appropriate level in the fair value hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, assumptions are required to reflect those that market participants would use in pricing the asset or liability at the measurement date.

The Company’s cash equivalents are classified as Level I because they are valued using quoted market prices.

The Company considers warrants that are not indexed to the Company’s own stock to be classified as Level 3. The following table presents the change in Level 3 liabilities:

	2012			2011
Balance at January 1	$	687,580		$	1,674,170
Warrants issued		—			1,552,706
Reclassification to equity		(30,823	)		—
Fair value adjustment		(594,949	)		(2,539,296	)
Balance at December 31	$	61,808		$	687,580

The fair value of these warrants is derived using the Black-Scholes pricing model using the same assumptions and methodology utilized in the valuation of common stock options described below. (See Note 13 - Equity for assumptions used to value warrants.)

The Company’s financial instruments consist principally of accounts receivable, accounts payable and debt. The Company believes the recorded values for accounts receivable and accounts payable approximate current values as of December 31, 2012 because of their nature and respective durations. Management estimates the carrying value of its debt instruments approximates fair value as of December 31, 2012. This estimate is based on acceptable valuation methodologies which use market data of similarly sized and situated debt issuers

Research and Development Expense, Policy [Policy Text Block]

Engineering, Research and Development Costs—Engineering, research and development costs are expensed as incurred

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation Plans—The Company measures compensation cost for stock awards at fair value and recognizes compensation over the service period for awards expected to vest. The fair value of each option grant is estimated on the date of grant using the Black-Scholes pricing model and straight-line amortization of compensation expense over the requisite service period of the grant. The determination of fair value using the Black-Scholes model requires a number of complex and subjective variables. Key assumptions in the Black-Scholes pricing model include the fair value of common stock, the expected term, expected volatility of the common stock, the risk-free interest rate, and estimated forfeitures. Management determined the fair value of the Company’s common stock largely on recent trading history and volumes on the OTCBB. The expected term is estimated by using the actual contractual term of the awards and the length of time for the recipient to exercise the awards. Management based expected volatilities on a volatility factor computed based on the historical equity volatilities of the common stock of public comparable firms. The risk-free interest rate was based on the implied yield available at the time the options were granted on U.S. Treasury zero coupon issues with a remaining term equal to the expected term of the option. Estimated forfeitures are based on management’s current expectations. The expected dividend yield is 0% for all periods presented, based upon the Company’s historical practice of not paying cash dividends on its common stock

Stockholders' Equity, Policy [Policy Text Block]

Warrants—The Company accounts for warrants issued that are indexed to the Company’s own stock as a component of equity and records the warrants at estimated fair value computed at the date of grant. Warrants issued that are not indexed to the Company’s own stock are treated as a liability and are initially recorded at estimated fair value computed at the date of grant. This liability is adjusted to fair value at each period presented. The fair value of warrants is derived using the Black-Scholes pricing model. The Company believes that the Black-Scholes pricing model results in a value that is not materially different from the value determined using a binomial pricing model

Debt, Policy [Policy Text Block]

Debt—The Company has historically had certain debt instruments that contain a conversion feature. When the debt agreement allows for conversion at a stated price that is lower than the fair value of the underlying common stock at the date the agreement is consummated, the difference between the common stock price and the conversion price multiplied by the number of convertible shares is recorded as a discount on the debt. When the debt agreement allows for conversion at a value that is contingent upon the occurrence of future events, the difference between the common stock price and the conversion price multiplied by the number of convertible shares is recorded as a discount on the debt at the time the contingency no longer exists.

The Company also examines each of the conversion features as a potential embedded derivative. The Company has determined that none of the conversion features represent embedded derivatives. The Company continues this assessment at each reporting period.

Certain of the Company’s convertible debt have been issued with detachable warrants. In these instances, the value of the warrants is recorded as a debt discount, which is accreted to interest expense over the life of the debt.

In instances that common stock is issued in connection with debt, the Company allocates the debt proceeds between the debt and common stock based on the relative fair value of each financial instrument, resulting in a debt discount to be amortized to interest expense over the term of the debt.

Income Tax, Policy [Policy Text Block]

Income Taxes—Income taxes are provided for the tax effects of transactions reported in the consolidated financial statements and consist of taxes currently due and deferred taxes related primarily to differences between the financial statement and tax basis of assets and liabilities and operating loss and tax credit carryforwards measured by the enacted tax rates that are anticipated to be in effect in the respective jurisdiction when those differences reverse. The deferred tax provision generally represents the net change in the deferred tax assets and liabilities. A valuation allowance is established when it is necessary to reduce deferred tax assets to amounts that more likely than not will be realized.

Tax positions are recognized only when it is more likely than not (likelihood of greater than 50%) that the position would be sustained upon examination based solely on the technical merits of the position. Tax positions that meet the more likely than not threshold are measured using a probability-weighted approach as the largest amount of tax benefit that is greater than 50% likely of being realized upon settlement. The Company recognizes accrued interest and penalties related to income tax liabilities as a component of income tax expense

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Common Share—Basic net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of common shares outstanding during the reporting period. Diluted net loss per common share is computed by dividing net loss attributable to common stockholders by the weighted-average number of dilutive common shares outstanding during the period. Dilutive common shares outstanding are calculated by adding to the weighted average number of common shares outstanding any potential (unissued) shares of common stock assuming conversion, exercise or issuance from the Company’s outstanding warrants, stock options and restricted stock. Since the Company reported a net loss attributable to common stockholders in the years ended December 31, 2012 and 2011, all potential common stock are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per common share would be reduced. Therefore, in periods when a loss is reported, the calculation of basic and dilutive loss per common share results in the same value. The Company’s nonvested restricted stockholders have the right to participate with common stockholders in dividends and unallocated earnings. Net losses are not allocated to the nonvested restricted stockholders. Therefore, when applicable, basic and diluted earnings per share are computed using the two-class method, under which the Company’s undistributed earnings are allocated to the common and vested restricted stockholders

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements—In the normal course of business, Management evaluates all new accounting pronouncements issued by the Financial Accounting Standards Board, Securities and Exchange Commission, Emerging Issues Task Force, American Institute of Certified Public Accountants and other authoritative accounting bodies to determine the potential impact they may have on the Company’s Consolidated Financial Statements. Based upon this review, Management does not expect any of the recently issued accounting pronouncements to have a material impact on the Company’s consolidated financial statements

Reclassification, Policy [Policy Text Block]

Reclassifications—Certain immaterial reclassification adjustments have been made to the prior year financial statements to reclassify certain operating costs from General and administrative and Sales and marketing to Engineering, research and development in the accompanying consolidated statements of operations to conform to the current year presentation.

Beginning in 2012, the Company began allocating certain employee benefits and overhead costs from General and administrative to Sales and marketing, Engineering, research and development and Cost of revenue in the accompanying consolidated statements of operations

Revenue Recognition, Deferred Revenue [Policy Text Block]

A supply agreement with a five year term was entered into at the same time as the license agreement. As such, the license amount was recognized on a straight-line basis over a period of five years