CALMARE THERAPEUTICS (CTTC) 10-K 24 Jun 15 2014 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	CALMARE THERAPEUTICS Inc
Entity Central Index Key	102,198
Document Type	10-K
Document Period End Date	Dec. 31, 2014
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 7,751,425
Entity Common Stock, Shares Outstanding	28,366,478
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,014

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Current Assets:
Cash	$ 5,745	$ 57,009
Receivables, net of allowance of $317,659 and $101,154 at December 31, 2014 and 2013	2,319	143,330
Inventory	4,118,220	4,278,220
Prepaid expenses and other current assets	253,102	65,167
Total current assets	4,379,386	4,543,726
Security deposits	15,000	15,000
Property and equipment, net	35,640	7,606
TOTAL ASSETS	4,430,026	4,566,332
Current Liabilities:
Accounts payable	1,346,138	692,251
Liabilities under claims purchase agreement	1,995,320	2,093,303
Accounts payable, GEOMC	4,182,380	4,183,535
Accrued expenses and other liabilities	1,590,182	582,987
Deferred revenue	19,686	6,400
Notes payable	2,536,830	2,488,691
Warrant liability		8,227
Series C convertible preferred stock liability	375,000	375,000
Series C convertible preferred stock derivative liability	66,177	80,408
Total current liabilities	12,111,713	$ 10,510,802
Long term notes payable	56,659
Commitments and Contingencies
Shareholders' deficit:
Common stock, $.01 par value, 40,000,000 shares authorized, 25,908,978 shares issued and outstanding at December 31, 2014 and 19,952,907 shares issued and outstanding at December 31, 2013	259,089	$ 199,529
Capital in excess of par value	47,634,857	46,077,394
Accumulated deficit	(55,692,967)	(52,282,068)
Total shareholders' deficit	(7,738,346)	(5,944,470)
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$ 4,430,026	$ 4,566,332
Series B Preferred Stock [Member]
Shareholders' deficit:
Preferred stock
Series C Preferred Stock [Member]
Shareholders' deficit:
Preferred stock
5% preferred stock [Member]
Shareholders' deficit:
Preferred stock	$ 60,675	$ 60,675

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Allowance for doubtful accounts	$ 317,659	$ 101,154
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	25,908,978	19,952,907
Common stock, shares outstanding (in shares)	25,908,978	19,952,907
5% preferred stock [Member]
Preferred stock, par value (in dollars per share)	$ 25	$ 25
Preferred stock, shares authorized (in shares)	35,920	35,920
Preferred stock, shares issued (in shares)	2,427	2,427
Preferred stock, shares outstanding (in shares)	2,427	2,427
Series B Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000	20,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Series C Preferred Stock [Member]
Preferred stock, par value (in dollars per share)	$ 1,000	$ 1,000
Preferred stock, shares authorized (in shares)	750	750
Preferred stock, shares issued (in shares)	375	375
Preferred stock, shares outstanding (in shares)	375	375

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Revenue
Product sales	$ 1,045,080	$ 652,792
Cost of product sales	440,668	272,736
Gross profit from product sales	604,412	380,056
Other Revenue
Retained royalties	27,782	37,007
Other income	90,776	82,069
Total other revenue	118,558	119,076
Operating expenses
Selling expenses	213,419	159,245
Personnel and consulting expenses	1,368,299	1,100,041
General and administrative expenses	1,371,035	1,760,585
Total operating expenses	2,952,753	3,019,871
Operating loss	(2,229,783)	(2,520,739)
Other expense (income)
Interest expense	964,070	$ 209,953
Interest expense - accelerated upon conversion of OID notes	35,109
Loss on conversion of notes	63,867
Loss on settlement of note and warrant	132,301
Unrealized gain on derivative instruments	(14,231)	$ (58,538)
Total other expense	1,181,116	151,415
Loss before income taxes	$ (3,410,899)	$ (2,672,154)
Provision (benefit) for income taxes
Net loss	$ (3,410,899)	$ (2,672,154)
Basic and diluted loss per share	$ (0.15)	$ (0.16)
Basic and diluted weighted average number of common shares outstanding:	23,513,870	16,977,027

Consolidated Statements of Chan

Consolidated Statements of Changes in Shareholders' Deficit - USD ($)	5% preferred stock [Member]	Common Stock	Capital in excess of par value	Accumulated Deficit	Total
Balance at Dec. 31, 2012	$ 60,675	$ 152,373	$ 45,367,796	$ (49,609,914)	$ (4,029,070)
Balance, shares at Dec. 31, 2012	2,427	15,237,304
Net loss				(2,672,154)	(2,672,154)
Stock option compensation expense			116,365		116,365
Common shares issued for legal services		$ 13,000	250,000		$ 263,000
Common shares issued for legal services, shares		1,300,000
Common stock issued in accordance with escrow agreement		$ 10,000	(10,000)
Common stock issued in accordance with escrow agreement, shares		1,000,000			1,000,000
Common stock issued in accordance with liability purchase agreement		$ 16,182	(16,182)
Common stock issued in accordance with liability purchase agreement, shares		1,618,235			450,000
Common stock issued as part of equity purchase agreement and/or liability purchase agreement		$ 7,100	215,400
Common stock issued as part of equity purchase agreement and/or liability purchase agreement, shares		710,000
Common shares and warrants issued for consulting services
Common stock issued to directors		$ 874	33,228		$ 34,102
Common stock issued to directors, shares		87,368
Warrants and beneficial conversion feature on notes payable			120,787		120,787
Balance at Dec. 31, 2013	$ 60,675	$ 199,529	46,077,394	(52,282,068)	(5,944,470)
Balance, shares at Dec. 31, 2013	2,427	19,952,907
Net loss				(3,410,899)	(3,410,899)
Stock option compensation expense			57,291		$ 57,291
Share based consulting fees, Common stock, shares					60,000
Common stock issued in accordance with escrow agreement, shares					1,000,000
Common stock issued as part of equity purchase agreement and/or liability purchase agreement					$ 222,500
Common shares and warrants issued for consulting services		$ 600	84,600		85,200
Common shares and warrants issued for consulting services, shares		60,000
Common stock issued to directors		$ 106	3,932		4,038
Common stock issued to directors, shares		10,625
Common stock issued upon conversion of notes		$ 17,329	394,280		$ 411,609
Common stock issued upon conversion of notes, shares		1,732,946			1,732,946
Private offering of common stock and warrants		$ 41,525	788,975		$ 830,500
Private offering of common stock and warrants, shares		4,152,500
Warrants and beneficial conversion feature on notes payable			121,741		121,741
Liabilities settled under Liability Purchase Agreement			106,644		106,644
Balance at Dec. 31, 2014	$ 60,675	$ 259,089	$ 47,634,857	$ (55,692,967)	$ (7,738,346)
Balance, shares at Dec. 31, 2014	2,427	25,908,978

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net loss	$ (3,410,899)	$ (2,672,154)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	17,547	11,147
Stock option compensation expense	57,291	116,365
Share-based compensation - common stock	4,038	$ 7,655
Common stock and warrants issued to consultants	85,200
Bad debt expense	216,505	$ 8,588
Unrealized gain on derivative instrument	(14,231)	(58,538)
Debt discount amortization	217,323	63,480
Noncash finance charges	17,591	$ 216,650
Loss on conversion of notes	63,867
Loss on settlement of note and warrant	132,301
Changes in assets and liabilities:
Receivables	(75,494)	$ 64,447
Prepaid expenses and other current assets	(187,935)	276,560
Inventory	160,000	90,000
Accounts payable, accrued expenses and other liabilities	1,641,927	312,587
Deferred revenue	13,286	(3,200)
Net cash used in operating activities	(1,061,683)	$ (1,566,413)
Cash flows from investing activities:
Purchases of property and equipment	(45,581)
Cash used in investing activities	(45,581)
Cash flows from financing activities:
Proceeds from notes payable	467,500	$ 1,549,100
Repayment of note and warrant settlement	(242,000)
Proceeds from common stock and warrants	830,500
Net cash provided by financing activities	1,056,000	$ 1,549,100
Net increase (decrease) in cash	(51,264)	(17,313)
Cash at beginning of year	57,009	74,322
Cash at end of year	$ 5,745	57,009
Supplemental Cash Flow Information
Cash Paid for interest		$ 15,304

BUSINESS AND BASIS OF PRESENTAT

BUSINESS AND BASIS OF PRESENTATION	12 Months Ended
	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BUSINESS AND BASIS OF PRESENTATION	1. BUSINESS AND BASIS OF PRESENTATION Effective August 20, 2014, Competitive Technologies, Inc. changed its name to Calmare Therapeutics Incorporated. Calmare Therapeutics Incorporated ("CTI") and its majority-owned (56.1%) subsidiary, Vector Vision, Inc. ("VVI"), (collectively, the "Company", "we" or "us") is a biotechnology company developing and commercializing innovative products and technologies. The Company is the licensed distributor of the non-invasive Calmare® pain therapy medical device, which incorporates the biophysical “Scrambler Therapy”® technology developed to treat neuropathic and cancer-derived pain. The consolidated financial statements include the accounts of CTI, and VVI. Inter-company accounts and transactions have been eliminated in consolidation. The Company has incurred operating losses since fiscal 2006 and has a working capital and shareholders’ deficiency at December 31, 2014. During the years ended December 31, 2014 and December 31, 2013, we had a significant concentration of revenues from our pain therapy medical device technology. We continue to seek revenue from new technologies or products to mitigate the concentration of revenues, and replace revenues from expiring licenses. At current reduced spending levels, the Company may not have sufficient cash flow to fund operations through 2015. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include adjustments to reflect the possible future effect of the recoverability and classification of assets or amounts and classifications of liabilities that may result from the outcome of this uncertainty. The Company's continuation as a going concern is dependent upon its developing other recurring revenue streams sufficient to cover operating costs. If necessary, we will meet anticipated operating cash requirements by further reducing costs, issuing debt or equity, and/or pursuing sales of certain assets and technologies while we pursue licensing and distribution opportunities for our remaining portfolio of technologies. The Company does not have any significant capital requirements in the budget going forward. There can be no assurance that the Company will be successful in such efforts. Failure to develop a recurring revenue stream sufficient to cover operating expenses would negatively affect the Company’s financial position. Our liquidity requirements arise principally from our working capital needs, including funds needed to find and obtain new technologies or products, and protect and enforce our intellectual property rights, if necessary. We fund our liquidity requirements with a combination of cash on hand, debt and equity financing, and cash flows from operations, if any, including royalty legal awards. At December 31, 2014, we had outstanding debt, in the form of promissory notes with a total principal amount of $3,217,000 and a carrying value of $3,079,000. The Company acquired the exclusive, worldwide rights to the Scrambler Therapy Scrambler Therapy CTI’s Distribution Rights, Marineo and Delta

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2014
Summary Of Significant Accounting Policies
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires that we make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and disclosure of contingent assets and liabilities. Actual results could differ significantly from our estimates. Revenue Recognition We earn revenue in two ways: retained royalties from licensing our clients' and our own technologies to our customer licensees, and sales of finished products. We record revenue when the terms of the sales arrangement are accepted by all parties including a fee that is fixed and determinable, delivery has occurred and our customer has taken title, and collectability is reasonably assured, net of sales tax. We are the primary obligor, responsible for delivering devices as well as for training our customers in the proper use of the device. We deal directly with customers, setting pricing and providing training; work directly with the inventor of the technology to develop specifications and any changes thereto and to select and contract with manufacturing partners; and retain significant credit risk for amounts billed to customers. Therefore, all product sales are recorded following a gross revenue methodology. Revenue from foreign sources was 13% of total revenue in 2014 and not significant compared to total revenue in 2013. Retained royalties or distribution fees earned are of the following types: Non-refundable, upfront license fee Royalty or per unit fees Royalty legal awards Legal awards in patent infringement cases usually include accrued interest through the date of payment, as determined by the court. The court awards interest for unpaid earned income. Interest may also be included in other settlements with customers. Interest included in an award or settlement is generally recorded as interest income when received. Unless otherwise specified, we record all other revenue, as earned. Concentration of Revenues Total revenue consists of revenue from product sales, retained royalties, and other income. During the year ended December 31, 2014, we derived approximately $1,045,000 or 90% of total revenue from sales of our Calmare pain therapy medical device technology. An additional 4% of revenue derived indirectly from that technology through sales of supplies and training, rental payments and the sale of rental assets. During the year ended December 31, 2013, we derived approximately $653,000 or 85% of total revenue from sales of our Calmare pain therapy medical device technology. An additional 4% of revenue derived indirectly from that technology through sales of supplies and training, rental payments and the sale of rental assets. Of these amounts $150,000 and $160,000 or 14% and 25% of total revenue from sales of our Calmare pain therapy medical device technology came from one customer in 2014 and 2013, respectively. Expenses We recognize expenses related to evaluating, patenting and licensing inventions, and enforcing intellectual property rights in the period incurred. Cost of product sales includes contractual payments to inventor and manufacturer relating to our Calmare pain therapy medical device. Expenses associated with shipping devices are also included in cost of product sales. Selling expenses include commission expenses related to sales of inventory (Calmare devices) technologies, domestic and foreign patent legal filing, prosecution and maintenance expenses, net of reimbursements, royalty audits, and other direct costs. Personnel and consulting expenses include employee salaries and benefits, marketing and consulting expenses related to technologies and specific revenue initiatives, and other direct costs. General and administrative expenses include directors' fees and expenses, public company related expenses, professional services, including financing, audit and legal services, rent and other general business and operating expenses. Fair Value of Financial Instruments The Company believes the carrying amounts of cash, accounts receivable, deferred revenue, preferred stock liability and notes payable approximate fair value due to their short-term maturity. Inventory Inventory consists of finished product of our pain therapy device. Inventory is stated at lower of cost (first in, first out) or market. Property and Equipment Property and equipment are carried at cost net of accumulated depreciation. Expenditures for normal maintenance and repair are charged to expense as incurred. The costs of depreciable assets are charged to operations on a straight-line basis over their estimated useful lives, three to five years for equipment, or the terms of the related lease for leasehold improvements. The cost and related accumulated depreciation or amortization of property and equipment are removed from the accounts upon retirement or other disposition, and any resulting gain or loss is reflected in earnings. Impairment of Long-lived Assets We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated fair value is less than the carrying amount of the asset, we record an impairment loss. If a quoted market price is available for the asset or a similar asset, we use it to determine estimated fair value. We re-evaluate the remaining useful life of the asset and adjust the useful life accordingly. There were no impairment indicators identified during the years ended December 31, 2014 and 2013. Income Taxes Income taxes are accounted for under an asset and a liability approach that requires recognition of deferred income tax assets and liabilities for the expected future consequences of events that have been recognized in the Company's consolidated financial statements and income tax returns. The Company provides a valuation allowance for deferred income tax assets when it is considered more likely than not that all or a portion of such deferred income tax assets will not be realized. Net Income (Loss) Per Share We calculate basic net income (loss) per share based on the weighted average number of common shares outstanding during the period without giving any effect to potentially dilutive securities. Net income (loss) per share, assuming dilution, is calculated giving effect to all potentially dilutive securities outstanding during the period. Share-Based Compensation The Company accounts for its share-based compensation in accordance with the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") 718 – "Compensation – Stock Compensation." Accordingly, the Company recognizes compensation expense equal to the fair value of the stock awards at the time of the grant over the requisite service period. Our accounting for share-based compensation has resulted in our recognizing non-cash compensation expense related to stock options granted to employees, which is included in personnel and consulting expenses, and stock options granted to our directors, which is included in general and administrative expenses. Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern,

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
INCOME TAXES	3. INCOME TAXES In current and prior years, we generated significant federal and state income tax and alternative minimum tax losses, and these net operating losses ("NOLs") were carried forward for income tax purposes to be used against future taxable income. A reconciliation of our effective income tax rate compared to the U.S. federal statutory rate is as follows: Year ended December 31, 2014 Year ended December 31, 2013 Provision (benefit) at U.S. federal statutory rate (35.0 )% (35.0 )% State provision (benefit), net of U.S. federal tax (4.9 ) (4.9 ) Permanent differences 0.9 (0.3 ) Other items 2.5 5.0 Deferred tax valuation allowance (36.5 ) (35.2 ) Effective income tax rate 0.0 % 0.0 % Net deferred tax assets consist of the following: December 31, 2014 December 31, 2013 Net federal and state operating loss carryforwards $ 16,912,223 $ 15,748,253 Impairment of investments 531,470 531,470 Other, net 767,266 687,426 Deferred tax assets 18,210,959 16,967,149 Valuation allowance (18,210,959 ) (16,967,149 ) Net deferred tax assets $ - $ - At December 31, 2014, we had aggregate federal net operating loss carryforwards of approximately $42,281,000, which expire at various times from 2017 through 2034. A majority of our federal NOLs can be used to reduce taxable income used in calculating our alternative minimum tax liability. We also have state net operating loss carryforwards of approximately $40,791,000 that expire at various times through 2034. Approximately $4,196,000 of our NOL carryforward remaining at December 31, 2014 was derived from income tax deductions related to the exercise of stock options. The tax effect of these deductions will be credited against capital in excess of par value at the time they are utilized for book purposes, and not credited to income. We will never receive a benefit for these NOLs in our statement of operations. Changes in the valuation allowance were as follows: Year ended December 31, 2014 Year ended December 31, 2013 Balance, beginning of year $ 16,967,149 $ 15,997,757 Change in temporary differences 79,840 6,789 Change in net operating and capital losses 1,163,970 962,603 Balance, end of year $ 18,210,959 $ 16,967,149 Our ability to derive future tax benefits from the net deferred tax assets is uncertain and therefore we continue to provide a full valuation allowance against the assets, reducing the carrying value to zero. We will reverse the valuation allowance if future financial results are sufficient to support a carrying value for the deferred tax assets. At December 31, 2014 and December 31, 2013, we had no uncertain tax positions. We include interest and penalties on the underpayment of income taxes in income tax expense. We file income tax returns in the United States and Connecticut. The Internal Revenue Service has completed audits for the periods through the fiscal year ended July 31, 2005. Our open tax years for review are fiscal years ended December 31, 2011 through year ended December 31, 2014. The Company's returns filed with Connecticut are subject to audit as determined by the statute of limitations.

NET LOSS PER COMMON SHARE

NET LOSS PER COMMON SHARE	12 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
NET LOSS PER COMMON SHARE	4. NET LOSS PER COMMON SHARE The following sets forth the denominator used in the calculations of basic net loss per share and net loss per share assuming dilution: Year ended December 31, 2014 Year ended December 31, 2013 Denominator for basic net loss per share, weighted average shares outstanding 23,513,870 16,977,027 Dilutive effect of common stock options N/A N/A Dilutive effect of Series C convertible preferred stock and convertible debt and warrants N/A N/A Denominator for net loss per share, assuming dilution 23,513,870 16,977,027 Due to the net loss incurred for the years ended December 31, 2014, and December 31, 2013, the denominator used in the calculation of basic net loss per share was the same as that used for net loss per share, assuming dilution, since the effect of any options, convertible preferred shares, convertible debt or warrants would have been anti-dilutive. Potentially dilutive securities outstanding are summarized as follows: December 31, 2014 December 31, 2013 Exercise of common stock options 1,692,500 1,372,000 Exercise of common stock warrants 4,450,536 1,313,679 Conversion of Series C convertible preferred stock 2,828,054 1,423,150 Conversion of convertible debt 4,783,272 4,321,385 Total 13,754,362 8,430,214

SHAREHOLDERS' INTEREST

SHAREHOLDERS' INTEREST	12 Months Ended
	Dec. 31, 2014
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' INTEREST	5. SHAREHOLDERS’ INTEREST Common Stock During 2013, the Company entered into an Equity Purchase Agreement (“EPA”) with Southridge Partners II, L.P. (“Southridge”). Under the terms of the EPA, which was filed with the SEC on February 26, 2013, Southridge will purchase, at the Company's election, up to $10,000,000 of the Company's registered common stock (the "Shares"). During the two year term of the EPA, the Company may at any time in its sole discretion deliver a "put notice" to Southridge thereby requiring Southridge to purchase a certain dollar amount of the Shares. Simultaneous with the delivery of such Shares, Southridge shall deliver payment for the Shares. Subject to certain restrictions, the purchase price for the Shares shall be equal to ninety percent of the lowest closing bid price for the Company's common stock during the ten-day trading period immediately after the Shares specified in the Put Notice are delivered to Southridge. The number of Shares sold to Southridge shall not exceed the number of such shares that, when aggregated with all other shares of common stock of the Company then beneficially owned by Southridge, would result in Southridge owning more than 9.99% of all of the Company's common stock then outstanding. Additionally, Southridge may not execute any short sales of the Company's common stock. Under the terms of the EPA, the Company had issued a convertible promissory note in the amount of $65,000 to Southridge which, during 2013 Southridge converted to 260,000 shares of common stock. In addition, during 2013, the Company negotiated a liabilities purchase agreement (“LPA”) with Southridge (see Note 11). Under the terms of the LPA, the Company issued 200,000 shares of its common stock at $0.35, or $70,000, and a convertible note in the amount of $12,000 Southridge as a fee. Additionally, under the terms of the EPA and LPA, the Company issued 250,000 shares of its common stock at $0.35 or $87,500, to Southridge for expenses associated with the EPA and LPA. During 2013 the Company issued 1,000,000 shares of its common stock into escrow, pending the completion of potential financing with a European investment group. On August 14, 2014, the shareholders approved an amendment to the Company’s certificate of incorporation to effect up to a one-for-ten reverse stock split (the “Reverse Stock Split”) of the Company’s issued and outstanding common stock. The Board of Directors, in its sole discretion, has discretion to implement the Reverse Stock Split. As of June 23, 2015, the Board of Directors has not implemented the Reverse Stock Split. During 2014, the Company did a series of private offerings of its common stock and warrants, for consideration of $830,500. 4,152,500 shares of common stock were issued at a per share price of $0.20. The common stock holders were also issued warrants to purchase 2,076,250 shares of common stock. The warrants have an exercise price of $0.60 and a 3-year term. The warrants were recorded to additional paid-in-capital. During 2014, the Company issued 60,000 shares to a consulting firm for marketing services performed and recorded consulting expense of $10,200 for the fair value of the stock. During 2014, the Company issued 333,333 stock warrants with a fair value of $75,000 for consulting services. The Company is amortizing the $75,000 over the service period and recorded $37,500 of expense in 2014. The Company issued 10,625 and 21,250 shares of its common stock to non-employee directors under its Director Compensation Plan in 2014 and 2013, respectively. The Company recorded expense of $4,038 and $7,655 for director stock compensation expense in 2014 and 2013, respectively. Preferred Stock Holders of 5% preferred stock are entitled to receive, if, as, and when declared by the Board of Directors, out of funds legally available therefore, preferential non-cumulative dividends at the rate of $1.25 per share per annum, payable quarterly, before any dividends may be declared or paid upon or other distribution made in respect of any share of common stock. The 5% preferred stock is redeemable, in whole at any time or in part from time to time, on 30 days' notice, at the option of the Company, at a redemption price of $25. In the event of voluntary or involuntary liquidation, the holders of preferred stock are entitled to $25 per share in cash before any distribution of assets can be made to holders of common stock. Each share of 5% preferred stock is entitled to one vote. Holders of 5% preferred stock have no preemptive or conversion rights. The preferred stock is not registered to be publicly traded. At its December 2, 2010 meeting, the CTI Board of Directors declared a dividend distribution of one right (each, a “Right”) for each outstanding share of common stock, par value $0.01, of the Company (the “Common Shares”). The dividend was payable to holders of record as of the close of business on December 2, 2010 (the “Record Date”). Issuance of the dividend may be triggered by an investor purchasing more than 20% of the outstanding shares of common stock. On December 15, 2010 the Company issued a $400,000 promissory note. The promissory note was scheduled to mature on December 31, 2012 with an annual interest rate of 5%. On December 15, 2010, the Company's Board of Directors authorized the issuance of 750 shares of Series C Convertible Preferred Stock ($1,000 par value) with a 5% cumulative dividend to William R. Waters, Ltd. of Canada. On December 30, 2010, 750 shares were issued. The Company converted the above $400,000 promissory note into 400 shares and received cash of $350,000 for the remaining 350 shares. Effective June 16, 2011, William R. Waters, Ltd. of Canada converted one half of its Series C Convertible Preferred Stock, or 375 shares, to 315,126 shares of common stock. The rights of the Series C Convertible Preferred Stock are as follows: a) Dividend rights b) Voting rights c) Liquidation rights d) Redemption rights e) Conversion rights On the date of conversion of the 375 shares of Series C Convertible Preferred Stock the Company calculated the value of the derivative liability to be $81,933. Upon conversion, the $81,933 derivative liability was reclassified to equity. The Company recorded a convertible preferred stock derivative liability of $66,177 and $80,408, associated with the 375 shares of Series C Convertible Preferred Stock outstanding at December 31, 2014 and, 2013, respectively. The Company has classified the Series C Convertible Preferred Stock as a liability at December 31, 2014 and 2013 because the variable conversion feature may require the Company to settle the conversion in a variable number of its common shares.

RECEIVABLES

RECEIVABLES	12 Months Ended
	Dec. 31, 2014
Receivables [Abstract]
RECEIVABLES	6. RECEIVABLES Receivables consist of the following: December 31, 2014 December 31, 2013 Calmare device sales receivable, net of allowance of $209,533 and $0 at December 31, 2014 and 2013, respectively $ - $ 132,850 Royalties, net of allowance of $101,154 at December 31, 2014 and 2013 - 10,086 Other, net of allowance of $6,972 and $0 at December 31, 2014 and 2013, respectively 2,319 394 Total $ 2,319 $ 143,330

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	7. PROPERTY AND EQUIPMENT, NET Property and equipment, net, consist of the following: December 31, 2014 December 31, 2013 Property and equipment, gross $ 215,491 $ 177,537 Accumulated depreciation and amortization (179,851 ) (169,931 ) Property and equipment, net $ 35,640 $ 7,606 Depreciation and amortization expense was $17,547 and $11,147 for the years ended December 31, 2014 and 2013, respectively.

AVAILABLE-FOR-SALE AND EQUITY S

AVAILABLE-FOR-SALE AND EQUITY SECURITIES	12 Months Ended
	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
AVAILABLE-FOR-SALE AND EQUITY SECURITIES	8. AVAILABLE-FOR-SALE AND EQUITY SECURITIES December 31, 2014 December 31, 2013 Number of shares Type Security Innovation, Inc. — — 223,317 Common stock Xion Pharmaceutical Corporation — — 60 Common stock In prior years, we acquired 3,129,509 shares of NTRU Cryptosystems, Inc. ("NTRU") common stock, and certain preferred stock that later was redeemed, in exchange for cash and a reduction in our future royalty rate on sales of NTRU's products. NTRU was a privately held company that sold encryption software for security purposes, principally in wireless markets. There was no public market for NTRU shares. In 2003, we wrote down the value of NTRU to $0, but we continued to own the shares. On July 22, 2009, all NTRU assets were acquired by Security Innovation, an independent provider of secure software located in Wilmington, MA. We received 223,317 shares of stock in the privately held Security Innovation for our shares of NTRU. In September 2009 we announced the formation of a joint venture with Xion Corporation for the commercialization of our patented melanocortin analogues for treating sexual dysfunction and obesity. We received 60 shares of privately held Xion Pharmaceutical Corporation common stock in June 2010. CTI currently owns 30% of the outstanding stock of Xion Pharmaceutical Corporation. The Company has been notified that Xion Pharmaceutical Corporation will be dissolved in 2015 with no financial impact to the Company.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2014
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	9. FAIR VALUE MEASUREMENTS The Company measures fair value in accordance with Topic 820 of the FASB Accounting Standards Codification (“ASC”), Fair Value Measurement (“ASC 820”), which provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described as follows: Level 1 - Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. Level 2 - Inputs to the valuation methodology include: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in inactive markets; • Inputs other than quoted prices that are observable for the asset or liability; • Inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the Level 2 input must be observable for substantially the full term of the asset or liability. Level 3 - Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The asset's or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company values its derivative liability associated with the variable conversion feature on its Series C Convertible Preferred Stock (Note 5) based on the market price of its common stock. For each reporting period the Company calculates the amount of potential common stock that the Series C Preferred Stock could convert into based on the conversion formula (incorporating market value of our common stock) and multiplies those converted shares by the market price of its common stock on that reporting date. The total converted value is subtracted by the consideration paid to determine the fair value of the derivative liability. The Company classified the derivative liability of $66,000 and $80,000 at December 31, 2014 and December 31, 2013, respectively, in Level 2 of the fair value hierarchy. The warrants issued in connection with the Tonaquint Note (the “Tonaquint Warrants,” see Note 13) were measured at fair value and liability-classified because the Tonaquint Warrants contain “down-round” protection and therefore did not meet the scope exception under FASB ASC 815, Derivatives and Hedging (“ASC 815”). Since “down-round” protection is not an input to the fair value of the warrants, the warrants could not be considered indexed to the Company’s own stock which is a requirement for the scope exception as outlined under ASC 815. The Company valued the warrants at $8,000 at December 31, 2013, and $26,076 upon issuance July 16, 2013, in Level 3 of the fair value hierarchy. During the first quarter of 2014 the Company executed a debt settlement agreement with Tonaquint related to the note and warrant (see Note 13). Similarly, the conversion feature of the Tonaquint Note (Note 13) also contained “down-round” protection and therefore did not meet the scope exception under FASB ASC 815. The Company classified the derivative liability of $0 at December 31, 2013, and $19,024 upon issuance at July 16, 2013, in Level 3 of the fair value hierarchy. During the first quarter of 2014 the Company executed a debt settlement agreement with Tonaquint related to the note and warrant (see Note 13). The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation method is appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value could result in a different fair value measurement at the reporting date.

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	12 Months Ended
	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSES AND OTHER CURRENT ASSETS	10. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following: December 31, 2014 December 31, 2013 Prepaid insurance $ 71,651 $ 16,802 Clinical trial 109,119 - Other 72,332 48,365 Prepaid expenses and other current assets $ 253,102 $ 65,167

LIABILITIES ASSIGNED TO LIABILI

LIABILITIES ASSIGNED TO LIABILITY PURCHASE AGREEMENT	12 Months Ended
	Dec. 31, 2014
Liabilities Assigned To Liability Purchase Agreement [Abstract]
LIABILITIES ASSIGNED TO LIABILITY PURCHASE AGREEMENT	11. LIABILITIES ASSIGNED TO LIABILITY PURCHASE AGREEMENT During the third quarter of 2013, the Company negotiated a LPA with Southridge. The LPA takes advantage of a provision in the Securities Act of 1933, Section 3(a)(10), that allows the exchange of claims, securities, or property for stock when the arrangement is approved for fairness by a court proceeding. The process, approved by the court in August 2013, has the potential to eliminate nearly $2.1 million of our financial obligations to existing creditors who agreed to participate and executed claims purchase agreements with Southridge’s affiliate ASC Recap accounting for $2,093,303 of existing payables, accrued expenses and other current liabilities, and notes payable. The process began with the issuance in September 2013 of 1,618,235 shares of the Company’s common stock to ASC Recap. During September and October 2013, ASC Recap sold the Company’s common stock and during the three months ended March 31, 2014 paid creditors approximately $80,000 from the proceeds and retained a service fee of approximately $27,000. During 2014, the Company also made cash payments of $18,000 for accrued expenses previously included in the LPA amount. As of June 23, 2015, no further shares of the Company’s common stock had been issued to ASC Recap to settle creditors’ balances. There can be no assurance that the Company will be successful in completing this process with Southridge, and the Company retains ultimate responsibility for this debt, until fully paid.

ACCRUED EXPENSES AND OTHER LIAB

ACCRUED EXPENSES AND OTHER LIABILITIES	12 Months Ended
	Dec. 31, 2014
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER LIABILITIES	12. ACCRUED EXPENSES AND OTHER LIABILITIES Accrued expenses and other liabilities consist of the following: December 31, 2014 December 31, 2013 Royalties payable $ 314,787 $ 127,708 Accrued audit fee - 82,141 Commissions payable 15,900 21,975 Accrued interest payable 987,659 216,518 Other 271,836 134,645 Accrued expenses and other liabilities, net $ 1,590,182 $ 582,987 Excluded above is approximately $217,000 and $244,000 of accrued expenses and other liabilities at December 31, 2014 and 2013, respectively, that fall under the LPA with ASC Recap, and are expected to be repaid using the process as described in Note 11. Because there can be no assurance that the Company will be successful in completing this process, the Company retains ultimate responsibility for these liabilities, until fully paid down.

NOTES PAYABLE

NOTES PAYABLE	12 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
NOTES PAYABLE	13. NOTES PAYABLE Notes payable consist of the following: December 31, 2014 December 31, 2013 90 day Convertible Notes (Chairman of the Board) $ 2,498,980 $ 2,518,000 24 month Convertible Notes ($100,000 to Board member) 225,000 225,000 10 day Note (Board member) 42,500 - Tonaquint 9% OID Convertible Notes and Warrants - 87,705 Southridge Convertible Note - 12,000 Series A1 15% OID Convertible Notes and Warrants - 81,415 Series A2 15% OID Convertible Notes and Warrants - 69,571 Series A3 15% OID Convertible Notes and Warrants 11,765 - Series B OID Convertible Notes and Warrants 56,659 - 1 Year 15% OID Convertible Notes and Warrants 244,565 - Notes Payable, gross 3,079,469 2,933,691 Less LPA amount (485,980 ) (505,000 ) Notes Payable, net $ 2,593,489 $ 2,488,691 Details of notes payable as of December 31, 2014 are as follows: Principal Amount Carrying Value Cash Interest Rate Common Stock Conversion Price Maturity Date 90 day Convertible Notes (Chairman of the Board) $ 2,498,980 $ 2,498,980 6 % $ 1.05 Various 2014 24 month Convertible Notes ($100,000 to Board member) 225,000 225,000 6 % 1.05 March 2014 – June 2014 10 day Note (Board member) 42,500 42,500 None None January 2015 Series A3 15% OID Convertible Notes and Warrants 11,765 11,765 None 0.25 January 2015 Series B OID Convertible Notes and Warrants 80,000 56,659 None 0.23 March 2017 1 Year 15% OID Convertible Notes and Warrants 358,824 244,565 None 0.20 Aug. 2015 – Nov. 2015 Notes Payable, gross $ 3,217,069 3,079,469 Less LPA amount (485,980 ) Notes Payable, net $ 2,593,489 90 day Convertible Notes The Company has issued 90-day notes payable to borrow funds from a director, now the chairman of our Board, as follows: 2013 $ 1,188,900 2012 1,210,000 2011 100,000 Total $ 2,498,980 These notes have been extended several times and all bear 6.00% simple interest. A conversion feature was added to the Notes when they were extended, which allows for conversion of the eligible principal amounts to common stock at any time after the six month anniversary of the effective date – the date the funds are received – at a rate of $1.05 per share. Additional terms have been added to all Notes to include additional interest of 1% simple interest per month on all amounts outstanding for all Notes if extended beyond their original maturity dates and to provide the lender with a security interest in unencumbered inventory and intangible assets of the Company other than proceeds relating to the Calmare Device and accounts receivable. Due to the Board’s February 10, 2014 decision authorizing Management to nullify certain actions taken by prior management, the additional terms noted above were not approved and therefore, the additional interest for the extension of the Notes was not recorded. During 2014, Management has been in negotiations to modify the terms of the Notes. However, until those negotiations are resolved, the Company has agreed to honor the additional terms and as such, the Company recorded additional interest of approximately $510,000 during the three months ended September 30, 2014 and $602,000 for the year ended December 31, 2014. A total of $485,980 of the aforementioned notes issued between December 1, 2012 and March 31, 2013 fall under the LPA with ASC Recap, and are expected to be repaid using the process as described in Note 11. Because there can be no assurance that the Company will be successful in completing this process, the Company retains ultimate responsibility for this debt, until fully paid down. As a result, the Company continues to accrue interest on these notes and they remain convertible as described above. 24 month Convertible Notes In March 2012, the Company issued a 24-month convertible promissory note to borrow $100,000. Additional 24-month convertible promissory notes were issued in April 2012 ($25,000) and in June 2012 ($100,000). All of the notes bear 6.00% simple interest. Conversion of the eligible principal amounts to common stock is allowed at any time at a rate of $1.05 per share. As of June 23, 2015 the Company has not repaid the principal due on the March 2012 $100,000 note, the April 2012 $25,000 note or the June 2012 $100,000 note and is in default under the terms of the notes. There is also unpaid interest of $29,000 related to these notes. 10 day Note In late December 2014, the Company issued a 10 day non-interest bearing note to a Board member in the amount of $42,500. This note was repaid in early January 2015. Tonaquint 9% Original Issue Discount Convertible Notes and Warrants During the quarter ended September 30, 2013, the Company entered into a securities purchase agreement with Tonaquint, Inc., under which it was issued a $112,500 convertible promissory note in consideration for $100,000, the difference between the proceeds from the Note and the principal amount consisted of a $10,000 original issue discount and a carried transaction expense of $2,500. The original issue discount was being amortized over the life of the note. The note was convertible at an initial conversion price of $0.30 per share at any time, and contained a “down-round protection” feature that requires the valuation of a derivative liability associated with the note. The note bore interest at 7% and was due in May 2014. Tonaquint was also issued a market-related warrant for $112,500 in shares of common stock with a “cashless” exercise feature. The warrant had a $0.35 exercise price, a 5-year term and included a “down-round protection” feature that required it to be classified as a liability rather than as equity (see Note 9). During the first quarter of 2014 the Company executed a debt settlement agreement with Tonaquint related to the note and warrant. The warrant was settled during the first quarter of 2014 for a cash payment of $98,000, resulting in a loss of $98,000. The note was settled during the second quarter of 2014 for cash payments totaling $144,000 ($20,000 paid in the first quarter of 2014 and $124,000 paid in the second quarter of 2014). Because the execution of the debt settlement agreement in the first quarter of 2014 resulted in a significant modification of the original terms of the note agreement, the Company adjusted the carrying value of the note in the first quarter of 2014 and recorded a related loss of approximately $34,000. Southridge During 2013, the Company issued a six-month $12,000 convertible note payable to Southridge to cover legal expenses as part of the LPA (see Note 11). The convertible note was convertible into the Company’s common stock at the greater of $0.25 or 85% of the average closing bid price during the five (5) trading days prior to conversion and was due in June 2014. During the third quarter of 2014, the Company issued to Southridge 50,000 shares in exchange for and in full satisfaction for the note and recorded a $5,500 loss upon conversion of the note. Series A 15% Original Issue Discount Convertible Notes and Warrants During the quarter ended December 31, 2013, the Company did a private offering of two tranches of convertible notes and warrants, under which it issued $283,648 of convertible promissory notes for consideration of $241,100, the difference between the proceeds from the notes and the principal amount consists of $42,548 of original issue discount. During the quarter ended March 31, 2014, the Company did a private offering of a third tranche of convertible notes and warrants, under which it issued $64,706 of convertible promissory notes for consideration of $55,000, the difference between the proceeds from the notes and principal amount consists of $9,706 of original issue discount. The notes are convertible at initial conversion prices ranging from $0.20 to $0.25 per share any time after issuance thereby having an embedded beneficial conversion feature. The note holders were also issued market-related warrants for 958,179 in shares of common stock. The warrants have exercise prices that range from $0.40 to $0.60 and a term of 2 years. The beneficial conversion feature, if any, and the warrants were recorded to additional paid-in-capital. The Company allocated the proceeds received to the notes, the beneficial conversion feature and the warrants on a relative fair value basis at the time of issuance. The total debt discount is amortized over the life of the notes to interest expense. The beneficial conversion feature was valued at the intrinsic value on the issuance date. The intrinsic value represents the difference between the conversion price and the fair value of the common stock multiplied by the number of share into which the note is convertible. We estimated the fair value of the warrants on the issue date using a Black-Scholes pricing model with the following assumptions: Warrants (Tranche 1) November 15, 2013 Warrants (Tranche 2) December 30, 2013 Warrants (Tranche 3) February 14, 2014 Expected term 2 years 2 years 2 years Volatility 180.02 % 184.38 % 184.88 % Risk Free Rate 0.31 % 0.39 % 0.32 % The proceeds of the Notes were allocated to the components as follows: Proceeds allocated at issue date Private Offering Notes $ 152,703 Private Offering Warrants 91,274 Beneficial Conversion feature 52,123 Total $ 296,100 During 2014, certain holders of OID convertible notes and warrants delivered to the Company a notice of conversion related to the OID convertible notes. Additionally, the Company offered certain Noteholders an inducement to convert their notes to shares. The inducement, when offered, provided Noteholders a conversion price of $0.20. All other original terms, including the warrant terms, remained the same. Upon notice of conversion the Company: (i) accelerated and recognized as interest expense in the current period any remaining discount, and (ii) recognized a loss for the fair value of the additional shares offered as the conversion inducement. Presented below is summary information related to the conversion: Statement of Operations Loss on conversion of notes $ 58,366 Accelerated interest expense $ 35,109 Balance Sheet Shares issued 1,682,946 Principal amount of notes converted $ 336,588 Series B Original Issue Discount Convertible Notes and Warrants During the quarter ended March 31, 2014, the Company did a private offering of convertible notes and warrants, under which it issued $80,000 of convertible promissory notes for consideration of $65,000, the difference between the proceeds from the notes and principal amount consists of $15,000 of original issue discount. The notes are convertible at an initial conversion price of $0.35 per share any time after issuance thereby having an embedded beneficial conversion feature. The note holders were also issued market-related warrants for 185,714 in shares of common stock. The warrants have an exercise price of $0.45 and a 4-year term. The beneficial conversion feature and the warrants were recorded to additional paid-in-capital. The Company allocated the proceeds received to the notes, the beneficial conversion feature and the warrants on a relative fair value basis at the time of issuance. The total debt discount is amortized over the life of the notes to interest expense. The beneficial conversion feature was valued at the intrinsic value on the issuance date. The intrinsic value represents the difference between the conversion price and the fair value of the common stock multiplied by the number of share into which the note is convertible. We estimated the fair value of the warrants on the issue date using a Black-Scholes pricing model with the following assumptions: Warrants March 20, 2014 Expected term 4 years Volatility 151.52 % Risk Free Rate 1.32 % The proceeds of the Notes were allocated to the components as follows: Proceeds allocated at issue date Private Offering Notes $ 34,272 Private Offering Warrants 26,811 Beneficial Conversion feature 3,917 Total $ 65,000 The Series B OID notes include an anti-dilution provision that if the Company issues more than 20 million shares of its common stock, subject to certain exceptions, the conversion price of the notes and the conversion price of the warrants would be subject to an automatic pre-determined price adjustment. During the quarter ended December 31, 2014 the Series B OID noteholder and the Company agreed that this anti-dilution provision had been triggered and the OID note share conversion price was adjusted down to $0.23 per share, which increased the number of shares available upon conversion to 347,826. The anti-dilution provision in the Warrant changed the share purchase price downward to $0.33 per share but did not change the number of shares available under the Warrant. As a result of the triggering of the above noted one time anti-dilution provision, the Company reallocated the proceeds of the Notes during the quarter ended December 31, 2014 as follows: Proceeds allocated at issue date Private Offering Notes $ 46,222 Private Offering Warrants 18,778 Beneficial Conversion feature - Total $ 65,000 1 Year 15% OID Convertible Notes and Warrants During the quarter ended December 31, 2014, the Company did a private offering of convertible notes and warrants, under which it issued $358,824 of convertible promissory notes for consideration of $305,000, the difference between the proceeds from the notes and principal amount consists of $53,824 of original issue discount. The notes are convertible at an initial conversion price of $0.20 per share any time after issuance thereby having an embedded beneficial conversion feature. The note holders were also issued market-related warrants for 897,060 in shares of common stock. The warrants have an exercise price of $0.60 and a 1-year term. The beneficial conversion feature and the warrants were recorded to additional paid-in-capital. The Company allocated the proceeds received to the notes, the beneficial conversion feature and the warrants on a relative fair value basis at the time of issuance. The total debt discount is amortized over the life of the notes to interest expense. The beneficial conversion feature was valued at the intrinsic value on the issuance date. The intrinsic value represents the difference between the conversion price and the fair value of the common stock multiplied by the number of shares into which the note is convertible. We estimated the fair value of the warrants on the issue date using a Black-Scholes pricing model with the following assumptions: Warrants November 7, 2014 Expected term 1 year Volatility 188.31 % Risk Free Rate 0.11 % The proceeds of the Notes were allocated to the components as follows: Proceeds allocated at issue date Private Offering Notes $ 224,679 Private Offering Warrants 57,854 Beneficial Conversion feature 22,467 Total $ 305,000

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS	12 Months Ended
	Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK-BASED COMPENSATION PLANS	14. STOCK-BASED COMPENSATION PLANS 2011 Employees', Directors' and Consultants' Stock Option Plan – The following information relates to the 2011 Option Plan: December 31, 2014 December 31, 2013 Common shares reserved for issuance on exercise of options 1,517,500 1,165,000 Shares available for future option grants 482,500 335,000 1997 Employee Stock Option Plan The following information relates to the 1997 Option Plan: December 31, 2014 December 31, 2013 Common shares reserved for issuance on exercise of options 55,000 87,000 Shares available for future option grants - - 2000 Director's Stock Option Plan The following information relates to the 2000 Directors' Stock Option Plan: December 31, 2014 December 31, 2013 Common shares reserved for issuance on exercise of options 120,000 120,000 Shares available for future option grants - - Summary of Common Stock Options Also $11,178 and $14,895 of noncash compensation expense was included in general and administrative expenses, from stock options granted to directors pursuant to the Directors Option Plan in the years ended December 31, 2014 and 2013, respectively. Since these stock options are fully vested upon grant, the full fair value of the stock options is recorded as expense at the date of grant. During the year ended December 31, 2013, the Company granted 50,000 options to non-employee directors which were fully vested upon issuance, and 5,000 options which were fully vested upon issuance to two non-employee directors who had served as chairman, as approved by the Board of Directors. During the year ended December 31, 2013, the Board of Directors extended the expiration dates for all options previously granted to one departing Board member in recognition for service. Those options will expire per their original term specified in each individual option agreement, typically either 5 or 10 years from the date of granting, rather than expiring within the specified time period, typically 90 or 180 days following the Board member’s termination dates. The Company considered the extension as a modification to the option agreements recording incremental compensation expense of $16,920 for the year ended December 31, 2013. During the quarter ended March 31, 2013, the Company granted 1,000,000 options to the then-CEO. As approved by the Board of Directors, these options granted were expected to vest over a four (4) year period, with 200,000 options vesting upon issuance. Since his resignation on September 26, 2013, expense for the quarters ended March 31, 2013 and June 30, 2013 has been reversed. The 200,000 vested options all expired 90 days from the then-CEO’s resignation date, per the Option Agreement. During the quarter ended December 31, 2013, the Company granted 1,000,000 options to the current CEO. As approved by the Board of Directors, these options vest over a four (4) year period, with 200,000 options vested upon issuance. During the quarter ended June 30, 2014, the Company granted 320,000 options to employees. As approved by the Board of Directors, these options vest over a four (4) year period, with 20% of the options vested upon issuance. We estimated the fair value of each option on the grant date using a Black-Scholes option-pricing model with the following weighted average assumptions: Year ended December 31, 2014 Year ended December 31, 2013 Dividend yield (1) 0.0 % 0.0 % Expected volatility (2) 118.5% - 122.24 % 99.2% - 110.2 % Risk-free interest rates (3) 1.19-1.72 % 1.02 % Expected lives (2) 4-5 years 2-5 years (1) We have not paid cash dividends on our common stock since 1981, and currently do not have plans to pay or declare cash dividends. Consequently, we used an expected dividend rate of zero for the valuations. (2) Estimated based on our historical experience. Volatility was based on historical experience over a period equivalent to the expected life in years. (3) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the options granted. A summary of the status of all our common stock options as of December 31, 2014 and 2013, and changes during the periods then ended is presented below. Year ended December 31, 2014 Year ended December 31, 2013 Shares Weighted Average Exercise Price Aggregate Intrinsic Values Shares Weighted Average Exercise Price Aggregate Intrinsic Values Outstanding at beginning of period 1,372,000 $ 0.50 $ 317,000 $ 1.85 Granted 362,500 0.39 2,055,000 0.29 Forfeited (30,500 ) 2.03 (1,000,000 ) 0.50 Exercised - - Expired or terminated (11,500 ) 2.87 - Outstanding at end of year 1,692,500 $ 0.44 $ 80,000 1,372,000 $ 0.50 $ 240,750 Vested at end of year 844,500 $ 0.70 $ 32,000 572,000 $ 1.10 $ 48,750 Nonvested at end of year 848,000 $ 0.18 $ 48,000 800,000 $ 0.08 $ 192,000 Weighted average fair value per share of options issued during the year $ 0.26 $ 0.21 Generally, we issue new shares of common stock to satisfy stock option exercises.

401(k) PLAN

401(k) PLAN	12 Months Ended
	Dec. 31, 2014
Pension and Other Postretirement Benefit Contributions [Abstract]
401(k) PLAN	15. 401(k) PLAN We have an employee-defined contribution plan qualified under section 401(k) of the Internal Revenue Code (the "Plan"), for all employees age 21 or over, and meeting certain service requirements. The Plan has been in effect since January 1, 1997. Participation in the Plan is voluntary. Employees may defer compensation up to a specific dollar amount determined by the Internal Revenue Service for each calendar year. We do not make matching contributions, and employees are not allowed to invest in our stock under the Plan. Our directors may authorize a discretionary contribution to the Plan, allocated according to the provisions of the Plan, and payable in shares of our common stock valued as of the date the shares are contributed. No contributions were accrued or made in the years ended December 31, 2014 and 2013.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	16. COMMITMENTS AND CONTINGENCIES Operating Leases Future minimum rental payments required under operating leases with remaining non-cancelable lease terms as of December 31, 2014 are as follows: More than 5 years $ - 3-5 years - 1-3 years 82,000 Within 1 year 68,000 Total $ 150,000 Total rental expense for all operating leases was: Year ended December 31, 2014 Year ended December 31, 2013 Minimum rental payments $ 56,615 $ 60,038 Less: Sublease rentals - 3,594 Net rent expense 56,615 56,444 Deferred rent charge 8,397 5,248 $ 65,012 $ 61,692 Contingencies – Revenue based As of December 31, 2014, CTI and its majority owned subsidiary, VVI, have remaining obligations, contingent upon receipt of certain revenues, to repay up to $165,788 and $199,334, respectively, in consideration of grant funding received in 1994 and 1995. CTI also is obligated to pay at the rate of 7.5% of its revenues, if any, from transferring rights to certain inventions supported by the grant funds. VVI is obligated to pay at rates of 1.5% of its net sales of supported products or 15% of its revenues from licensing supported products, if any. Contingencies – Litigation Tim Conley GEOMC Summary An unfavorable resolution of any or all matters, and/or our incurrence of significant legal fees and other costs to defend or prosecute any of these actions and proceedings may, depending on the amount and timing, have a material adverse effect on our consolidated financial position, results of operations or cash flows in a particular period. Authorized shares As of June 23, 2015, in the event that all of the outstanding securities issued by the Company were converted into shares of common stock at one time (the “Fully Diluted Shares”), whether exercisable or otherwise, the number of Fully Diluted Shares of common stock would exceed the number of currently authorized shares of the Company. If such an event were to happen, the Company could either (a) immediately effectuate a reverse stock split, which was approved by the Board of Directors and a majority of stockholders on August 14, 2014 or (b) call for a special general meeting of shareholders and request shareholder consent to increase the number of authorized shares of the Company. In either case, such actions would cure the common stock shortfall and return the Company to compliance with the common stock share count threshold as so delineated in the supporting financing agreements. Notwithstanding the foregoing, the Company currently expects to request shareholder consent at the next Annual General Meeting of Shareholders, to increase the number of authorized shares of the Company, and, if received in either of the aforementioned cases, shall file a Certificate of Amendment to the Certificate of Incorporation to increase the number of authorized shares to a value larger than the number of Fully Diluted Shares. Unsigned Agreements The Company uses two unrelated firms to provide marketing and investor relations services, CME Acuity (“CMEA”) and Legend Capital Management (“LCM”), respectively. The LCM and CMEA agreements were not signed due to an inability to come to final terms due to certain nuances in either agreement that included but were not limited to assignment of human capital and allowable performance based bonus(es). However, from the start date until December 31, 2014, the respective firms were compensated for services rendered on a “pay-as-we go” basis (the “Arrangement”). The aforementioned Arrangement is expected to continue for the next few consecutive quarters until such time as their agreements can be consummated. CTI’s Distribution Rights, Marineo and Delta On April 8, 2014, Mr. Giuseppe Marineo, an inventor of the Calmare® pain therapy device, and Delta Research and Development (“Delta”), Mr. Marineo’s research company, and Delta International Services and Logistics (“DIS&L”), Delta’s commercial arm in which Mr. Marineo is the sole beneficiary of all proceeds as its founder and sole owner (collectively the “Group”), issued a press release (the “Group’s Press Release”) regarding CTI stating that the Company did not have authority to sell, distribute and manufacture the Calmare Device as an exclusive agent of the Group. CTI issued a corporate response in a press release dated April 11, 2014 stating that the Group’s Press Release was inaccurate and has since been purged by the overseeing body of wire services. This issue between the Company and the Group is over the validity of a 2012 Amendment to a Sales and Representation Agreement (the “Amendment”) which, if valid and enforceable, may have compromised its rights to sell, distribute and manufacture the Calmare Device as an exclusive agent of the Group in the global marketplace, especially in the European, Middle Eastern and North African (“EMENA”) territory which was responsible for approximately 70% of gross Calmare Device sales in 2011. However, the Company believes that the Amendment is neither valid nor enforceable as it was never duly signed or authorized and subsequently deemed null and void. Therefore, the parties’ rights are determined by an earlier agreement whereby the Company possesses the authority to sell, distribute and manufacture the Calmare Device as a world-wide exclusive agent of the Group. On April 16, 2014, counsel for the Group (“Group Counsel”) sent a cease and desist letter (“Cease and Desist Letter”) to the Company, requesting a confirmation that the Company would no longer hold itself out as an agent of the Group permitted to sell, distribute and manufacture the Calmare Device world-wide including the EMENA territory. The Company responded on April 25, 2014 to the Cease and Desist Letter, disputing Group Counsel’s interpretation of the events surrounding the execution of the Amendment. At this time, the Company continues to work to find a reasonable and amicable resolution to the situation.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2014
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	17. RELATED PARTY TRANSACTIONS Our board of directors determined that when a director's services are outside the normal duties of a director, we compensate the director at the rate of $1,000 per day, plus expenses, which is the same amount we pay a director for attending a one-day Board meeting. We classify these amounts as consulting expenses, included in personnel and consulting expenses. At December 31, 2014, $2,642,000 of the outstanding Notes were payable to related parties; $2,499,000 to the chairman of our Board, Peter Brennan, and $143,000 to another director, Stan Yarbro.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	12 Months Ended
	Dec. 31, 2014
Subsequent Events [Abstract]
SUBSEQUENT EVENT	18. SUBSEQUENT EVENT From January 1, 2015 to June 23, 2015 the Company obtained additional funding, including $365,000 of equity funding and $257,000 of hybrid debt funding. From January 1, 2015 to June 23, 2015, the Company did a series of private offerings of its common stock and warrants, for consideration of $365,000. 1,825,000 shares of common stock were issued at a per share price of $0.20. The common stock holders were also issued warrants to purchase 912,500 shares of common stock. The warrants have an exercise price of $0.60 and a 3-year term. From January 1, 2015 to June 23, 2015, the Company did a series of private offerings of convertible notes and warrants, under which it issued $302,000 of convertible promissory notes for consideration of $257,000, the difference between the proceeds from the notes and principal amount consists of $45,000 of original issue discount. The notes are convertible at a conversion price of $0.20 per share. The note holders were also issued market-related warrants for 756,000 in shares of common stock. The warrants have an exercise price of $0.60 and a 1-year term.

SUMMARY OF SIGNIFICANT ACCOUN25

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires that we make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses, and disclosure of contingent assets and liabilities. Actual results could differ significantly from our estimates.
Revenue Recognition	Revenue Recognition We earn revenue in two ways: retained royalties from licensing our clients' and our own technologies to our customer licensees, and sales of finished products. We record revenue when the terms of the sales arrangement are accepted by all parties including a fee that is fixed and determinable, delivery has occurred and our customer has taken title, and collectability is reasonably assured, net of sales tax. We are the primary obligor, responsible for delivering devices as well as for training our customers in the proper use of the device. We deal directly with customers, setting pricing and providing training; work directly with the inventor of the technology to develop specifications and any changes thereto and to select and contract with manufacturing partners; and retain significant credit risk for amounts billed to customers. Therefore, all product sales are recorded following a gross revenue methodology. Revenue from foreign sources was 13% of total revenue in 2014 and not significant compared to total revenue in 2013. Retained royalties or distribution fees earned are of the following types: Non-refundable, upfront license fee Royalty or per unit fees Royalty legal awards Legal awards in patent infringement cases usually include accrued interest through the date of payment, as determined by the court. The court awards interest for unpaid earned income. Interest may also be included in other settlements with customers. Interest included in an award or settlement is generally recorded as interest income when received. Unless otherwise specified, we record all other revenue, as earned.
Concentration of Revenues	Concentration of Revenues Total revenue consists of revenue from product sales, retained royalties, and other income. During the year ended December 31, 2014, we derived approximately $1,045,000 or 90% of total revenue from sales of our Calmare pain therapy medical device technology. An additional 4% of revenue derived indirectly from that technology through sales of supplies and training, rental payments and the sale of rental assets. During the year ended December 31, 2013, we derived approximately $653,000 or 85% of total revenue from sales of our Calmare pain therapy medical device technology. An additional 4% of revenue derived indirectly from that technology through sales of supplies and training, rental payments and the sale of rental assets. Of these amounts $150,000 and $160,000 or 14% and 25% of total revenue from sales of our Calmare pain therapy medical device technology came from one customer in 2014 and 2013, respectively.
Expenses	Expenses We recognize expenses related to evaluating, patenting and licensing inventions, and enforcing intellectual property rights in the period incurred. Cost of product sales includes contractual payments to inventor and manufacturer relating to our Calmare pain therapy medical device. Expenses associated with shipping devices are also included in cost of product sales. Selling expenses include commission expenses related to sales of inventory (Calmare devices) technologies, domestic and foreign patent legal filing, prosecution and maintenance expenses, net of reimbursements, royalty audits, and other direct costs. Personnel and consulting expenses include employee salaries and benefits, marketing and consulting expenses related to technologies and specific revenue initiatives, and other direct costs. General and administrative expenses include directors' fees and expenses, public company related expenses, professional services, including financing, audit and legal services, rent and other general business and operating expenses.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company believes the carrying amounts of cash, accounts receivable, deferred revenue, preferred stock liability and notes payable approximate fair value due to their short-term maturity.
Inventory	Inventory Inventory consists of finished product of our pain therapy device. Inventory is stated at lower of cost (first in, first out) or market.
Property and Equipment	Property and Equipment Property and equipment are carried at cost net of accumulated depreciation. Expenditures for normal maintenance and repair are charged to expense as incurred. The costs of depreciable assets are charged to operations on a straight-line basis over their estimated useful lives, three to five years for equipment, or the terms of the related lease for leasehold improvements. The cost and related accumulated depreciation or amortization of property and equipment are removed from the accounts upon retirement or other disposition, and any resulting gain or loss is reflected in earnings.
Impairment of Long-lived Assets	Impairment of Long-lived Assets We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the estimated fair value is less than the carrying amount of the asset, we record an impairment loss. If a quoted market price is available for the asset or a similar asset, we use it to determine estimated fair value. We re-evaluate the remaining useful life of the asset and adjust the useful life accordingly. There were no impairment indicators identified during the years ended December 31, 2014 and 2013.
Income Taxes	Income Taxes Income taxes are accounted for under an asset and a liability approach that requires recognition of deferred income tax assets and liabilities for the expected future consequences of events that have been recognized in the Company's consolidated financial statements and income tax returns. The Company provides a valuation allowance for deferred income tax assets when it is considered more likely than not that all or a portion of such deferred income tax assets will not be realized.
Net Income (Loss) Per Share	Net Income (Loss) Per Share We calculate basic net income (loss) per share based on the weighted average number of common shares outstanding during the period without giving any effect to potentially dilutive securities. Net income (loss) per share, assuming dilution, is calculated giving effect to all potentially dilutive securities outstanding during the period.
Share-Based Compensation	Share-Based Compensation The Company accounts for its share-based compensation in accordance with the Financial Accounting Standards Board's ("FASB") Accounting Standards Codification ("ASC") 718 – "Compensation – Stock Compensation." Accordingly, the Company recognizes compensation expense equal to the fair value of the stock awards at the time of the grant over the requisite service period. Our accounting for share-based compensation has resulted in our recognizing non-cash compensation expense related to stock options granted to employees, which is included in personnel and consulting expenses, and stock options granted to our directors, which is included in general and administrative expenses.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue From Contracts With Customers In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements – Going Concern,

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Reconciliation of Tax Rate	A reconciliation of our effective income tax rate compared to the U.S. federal statutory rate is as follows: Year ended December 31, 2014 Year ended December 31, 2013 Provision (benefit) at U.S. federal statutory rate (35.0 )% (35.0 )% State provision (benefit), net of U.S. federal tax (4.9 ) (4.9 ) Permanent differences 0.9 (0.3 ) Other items 2.5 5.0 Deferred tax valuation allowance (36.5 ) (35.2 ) Effective income tax rate 0.0 % 0.0 %
Schedule of Deferred Tax Assets	Net deferred tax assets consist of the following: December 31, 2014 December 31, 2013 Net federal and state operating loss carryforwards $ 16,912,223 $ 15,748,253 Impairment of investments 531,470 531,470 Other, net 767,266 687,426 Deferred tax assets 18,210,959 16,967,149 Valuation allowance (18,210,959 ) (16,967,149 ) Net deferred tax assets $ - $ -
Changes in the Valuation Allowance	Changes in the valuation allowance were as follows: Year ended December 31, 2014 Year ended December 31, 2013 Balance, beginning of year $ 16,967,149 $ 15,997,757 Change in temporary differences 79,840 6,789 Change in net operating and capital losses 1,163,970 962,603 Balance, end of year $ 18,210,959 $ 16,967,149

NET LOSS PER COMMON SHARE (Tabl

NET LOSS PER COMMON SHARE (Tables)	12 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
Calculation of Net Earnings Per Share	The following sets forth the denominator used in the calculations of basic net loss per share and net loss per share assuming dilution: Year ended December 31, 2014 Year ended December 31, 2013 Denominator for basic net loss per share, weighted average shares outstanding 23,513,870 16,977,027 Dilutive effect of common stock options N/A N/A Dilutive effect of Series C convertible preferred stock and convertible debt and warrants N/A N/A Denominator for net loss per share, assuming dilution 23,513,870 16,977,027
Potentially dilutive securities	Potentially dilutive securities outstanding are summarized as follows: December 31, 2014 December 31, 2013 Exercise of common stock options 1,692,500 1,372,000 Exercise of common stock warrants 4,450,536 1,313,679 Conversion of Series C convertible preferred stock 2,828,054 1,423,150 Conversion of convertible debt 4,783,272 4,321,385 Total 13,754,362 8,430,214

RECEIVABLES (Tables)

RECEIVABLES (Tables)	12 Months Ended
	Dec. 31, 2014
Receivables [Abstract]
Schedule of Receivables	Receivables consist of the following: December 31, 2014 December 31, 2013 Calmare device sales receivable, net of allowance of $209,533 and $0 at December 31, 2014 and 2013, respectively $ - $ 132,850 Royalties, net of allowance of $101,154 at December 31, 2014 and 2013 - 10,086 Other, net of allowance of $6,972 and $0 at December 31, 2014 and 2013, respectively 2,319 394 Total $ 2,319 $ 143,330

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Schedule of Property and Equipment, Net	Property and equipment, net, consist of the following: December 31, 2014 December 31, 2013 Property and equipment, gross $ 215,491 $ 177,537 Accumulated depreciation and amortization (179,851 ) (169,931 ) Property and equipment, net $ 35,640 $ 7,606

AVAILABLE-FOR-SALE AND EQUITY30

AVAILABLE-FOR-SALE AND EQUITY SECURITIES (Tables)	12 Months Ended
	Dec. 31, 2014
Investments, Debt and Equity Securities [Abstract]
Schedule of Available-for-Sale Securities	December 31, 2014 December 31, 2013 Number of shares Type Security Innovation, Inc. — — 223,317 Common stock Xion Pharmaceutical Corporation — — 60 Common stock

PREPAID EXPENSES AND OTHER CU31

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	12 Months Ended
	Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid Expenses and Other Assets	Prepaid expenses and other current assets consist of the following: December 31, 2014 December 31, 2013 Prepaid insurance $ 71,651 $ 16,802 Clinical trial 109,119 - Other 72,332 48,365 Prepaid expenses and other current assets $ 253,102 $ 65,167

ACCRUED EXPENSES AND OTHER LI32

ACCRUED EXPENSES AND OTHER LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2014
Payables and Accruals [Abstract]
Schedule of Accrued Expenses and Other Liabilities	Accrued expenses and other liabilities consist of the following: December 31, 2014 December 31, 2013 Royalties payable $ 314,787 $ 127,708 Accrued audit fee - 82,141 Commissions payable 15,900 21,975 Accrued interest payable 987,659 216,518 Other 271,836 134,645 Accrued expenses and other liabilities, net $ 1,590,182 $ 582,987

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables) - Dec. 31, 2014	Total	Total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of Notes Payable		Notes payable consist of the following: December 31, 2014 December 31, 2013 90 day Convertible Notes (Chairman of the Board) $ 2,498,980 $ 2,518,000 24 month Convertible Notes ($100,000 to Board member) 225,000 225,000 10 day Note (Board member) 42,500 - Tonaquint 9% OID Convertible Notes and Warrants - 87,705 Southridge Convertible Note - 12,000 Series A1 15% OID Convertible Notes and Warrants - 81,415 Series A2 15% OID Convertible Notes and Warrants - 69,571 Series A3 15% OID Convertible Notes and Warrants 11,765 - Series B OID Convertible Notes and Warrants 56,659 - 1 Year 15% OID Convertible Notes and Warrants 244,565 - Notes Payable, gross 3,079,469 2,933,691 Less LPA amount (485,980 ) (505,000 ) Notes Payable, net $ 2,593,489 $ 2,488,691 Details of notes payable as of December 31, 2014 are as follows: Principal Amount Carrying Value Cash Interest Rate Common Stock Conversion Price Maturity Date 90 day Convertible Notes (Chairman of the Board) $ 2,498,980 $ 2,498,980 6 % $ 1.05 Various 2014 24 month Convertible Notes ($100,000 to Board member) 225,000 225,000 6 % 1.05 March 2014 – June 2014 10 day Note (Board member) 42,500 42,500 None None January 2015 Series A3 15% OID Convertible Notes and Warrants 11,765 11,765 None 0.25 January 2015 Series B OID Convertible Notes and Warrants 80,000 56,659 None 0.23 March 2017 1 Year 15% OID Convertible Notes and Warrants 358,824 244,565 None 0.20 Aug. 2015 – Nov. 2015 Notes Payable, gross $ 3,217,069 3,079,469 Less LPA amount (485,980 ) Notes Payable, net $ 2,593,489
Schedule of 90 day Convertible Notes		The Company has issued 90-day notes payable to borrow funds from a director, now the chairman of our Board, as follows: 2013 $ 1,188,900 2012 1,210,000 2011 100,000 Total $ 2,498,980
Series A 15% Original Issue Discount Convertible Notes and Warrants [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of Estimated Fair Value of Notes Assumptions		We estimated the fair value of the warrants on the issue date using a Black-Scholes pricing model with the following assumptions: Warrants (Tranche 1) November 15, 2013 Warrants (Tranche 2) December 30, 2013 Warrants (Tranche 3) February 14, 2014 Expected term 2 years 2 years 2 years Volatility 180.02 % 184.38 % 184.88 % Risk Free Rate 0.31 % 0.39 % 0.32 %
Schedule of Proceeds of Notes Allocation		The proceeds of the Notes were allocated to the components as follows: Proceeds allocated at issue date Private Offering Notes $ 152,703 Private Offering Warrants 91,274 Beneficial Conversion feature 52,123 Total $ 296,100
Schedule of Debt Conversion		Presented below is summary information related to the conversion: Statement of Operations Loss on conversion of notes $ 58,366 Accelerated interest expense $ 35,109 Balance Sheet Shares issued 1,682,946 Principal amount of notes converted $ 336,588
1 Year 15% OID Convertible Notes and Warrants [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of Estimated Fair Value of Notes Assumptions	We estimated the fair value of the warrants on the issue date using a Black-Scholes pricing model with the following assumptions: Warrants November 7, 2014 Expected term 1 year Volatility 188.31 % Risk Free Rate 0.11 %
Schedule of Proceeds of Notes Allocation	The proceeds of the Notes were allocated to the components as follows: Proceeds allocated at issue date Private Offering Notes $ 224,679 Private Offering Warrants 57,854 Beneficial Conversion feature 22,467 Total $ 305,000
Series B Original Issue Discount Convertible Notes And Warrants [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Schedule of Estimated Fair Value of Notes Assumptions		We estimated the fair value of the warrants on the issue date using a Black-Scholes pricing model with the following assumptions: Warrants March 20, 2014 Expected term 4 years Volatility 151.52 % Risk Free Rate 1.32 %
Schedule of Proceeds of Notes Allocation		The proceeds of the Notes were allocated to the components as follows: Proceeds allocated at issue date Private Offering Notes $ 34,272 Private Offering Warrants 26,811 Beneficial Conversion feature 3,917 Total $ 65,000
Schedule of Debt Conversion		As a result of the triggering of the above noted one time anti-dilution provision, the Company reallocated the proceeds of the Notes during the quarter ended December 31, 2014 as follows: Proceeds allocated at issue date Private Offering Notes $ 46,222 Private Offering Warrants 18,778 Beneficial Conversion feature - Total $ 65,000

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS (Tables)	12 Months Ended
	Dec. 31, 2014
Schedule of Assumptions used to Estimate Fair Value of Share Options	We estimated the fair value of each option on the grant date using a Black-Scholes option-pricing model with the following weighted average assumptions: Year ended December 31, 2014 Year ended December 31, 2013 Dividend yield (1) 0.0 % 0.0 % Expected volatility (2) 118.5% - 122.24 % 99.2% - 110.2 % Risk-free interest rates (3) 1.19-1.72 % 1.02 % Expected lives (2) 4-5 years 2-5 years (1) We have not paid cash dividends on our common stock since 1981, and currently do not have plans to pay or declare cash dividends. Consequently, we used an expected dividend rate of zero for the valuations. (2) Estimated based on our historical experience. Volatility was based on historical experience over a period equivalent to the expected life in years. (3) Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the options granted.
Summary of Stock Option Activity under Stock Options	A summary of the status of all our common stock options as of December 31, 2014 and 2013, and changes during the periods then ended is presented below. Year ended December 31, 2014 Year ended December 31, 2013 Shares Weighted Average Exercise Price Aggregate Intrinsic Values Shares Weighted Average Exercise Price Aggregate Intrinsic Values Outstanding at beginning of period 1,372,000 $ 0.50 $ 317,000 $ 1.85 Granted 362,500 0.39 2,055,000 0.29 Forfeited (30,500 ) 2.03 (1,000,000 ) 0.50 Exercised - - Expired or terminated (11,500 ) 2.87 - Outstanding at end of year 1,692,500 $ 0.44 $ 80,000 1,372,000 $ 0.50 $ 240,750 Vested at end of year 844,500 $ 0.70 $ 32,000 572,000 $ 1.10 $ 48,750 Nonvested at end of year 848,000 $ 0.18 $ 48,000 800,000 $ 0.08 $ 192,000 Weighted average fair value per share of options issued during the year $ 0.26 $ 0.21
2011 Option Plan [Member]
Schedule of Stock Option Plan	The following information relates to the 2011 Option Plan: December 31, 2014 December 31, 2013 Common shares reserved for issuance on exercise of options 1,517,500 1,165,000 Shares available for future option grants 482,500 335,000
1997 Employee Stock Option Plan [Member]
Schedule of Stock Option Plan	The following information relates to the 1997 Option Plan: December 31, 2014 December 31, 2013 Common shares reserved for issuance on exercise of options 55,000 87,000 Shares available for future option grants - -
2000 Directors' Stock Option Plan [Member]
Schedule of Stock Option Plan	The following information relates to the 2000 Directors' Stock Option Plan: December 31, 2014 December 31, 2013 Common shares reserved for issuance on exercise of options 120,000 120,000 Shares available for future option grants - -

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
Schedule of Future Minimum Rental Payments	Future minimum rental payments required under operating leases with remaining non-cancelable lease terms as of December 31, 2014 are as follows: More than 5 years $ - 3-5 years - 1-3 years 82,000 Within 1 year 68,000 Total $ 150,000
Schedule of Total Rental Expenses	Total rental expense for all operating leases was: Year ended December 31, 2014 Year ended December 31, 2013 Minimum rental payments $ 56,615 $ 60,038 Less: Sublease rentals - 3,594 Net rent expense 56,615 56,444 Deferred rent charge 8,397 5,248 $ 65,012 $ 61,692

Supplemental Disclosure of Non-

Supplemental Disclosure of Non-cash Transactions (Details) - USD ($)	1 Months Ended				2 Months Ended	3 Months Ended	12 Months Ended
	Nov. 30, 2013	Sep. 30, 2013	Jul. 31, 2013	Mar. 31, 2013	Dec. 31, 2013	Mar. 31, 2014	Dec. 31, 2014	Dec. 31, 2013
Common stock issued upon conversion of notes, shares							1,732,946
Common stock issued upon conversion of notes, values							$ 411,609
Common stock issued for consulting services							60,000
Common stock issued for consulting services, price per share							$ 0.17
Common stock issued to directors								66,118
Common stock issued to directors, settlement of accrued liabilities								$ 26,447
Debt conversion, shares issued		1,618,235
Common stock issued in accordance with liability purchase agreement, shares								450,000
Common stock issued in accordance with liability purchase agreement, value								$ 157,500
Allocation of proceeds from convertible note for the fair value of warrants and beneficial conversion feature to additional paid-in capital					$ 120,787		$ 121,741	120,787
Transfer of rental asset to inventory								$ 8,000
Common stock issued in accordance with escrow agreement, shares							1,000,000	1,000,000
Common shares issued for legal services, shares			200,000	100,000
Shares issued, price per share		$ 0.18	$ 0.20	$ 0.43			$ 0.20
Warrant [Member]
Common stock issued for consulting services							333,333
Common stock issued for consulting services, value							$ 75,000
Cutler Law Group [Member]
Common shares issued for legal services, shares	1,000,000
Southridge Partners Ii Lp [Member]
Debt conversion, value of note converted								$ 65,000
Debt conversion, shares issued								260,000
Liabilities Purchase Agreement [Member]
Payment to creditors						$ 80,000
Service fee retained						$ 27,000
Liabilities Purchase Agreement [Member] | Southridge Partners Ii Lp [Member]
Common stock issued in accordance with liability purchase agreement, shares								200,000
Shares issued, price per share					$ 0.35			$ 0.35
Tonaquint, Inc. [Member]
Proceeds from Note Payable Allocated to Warrants and Conversion Feature Derivative Liability			$ 45,100

BUSINESS AND BASIS OF PRESENT37

BUSINESS AND BASIS OF PRESENTATION (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013	Dec. 15, 2010
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Principal amount	$ 3,217,069
Carrying amount	$ 3,079,469	$ 2,933,691
Vector Vision, Inc. [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Ownership percentage	56.10%
Promissory Notes [Member]
Organization Consolidation And Presentation Of Financial Statements [Line Items]
Principal amount	$ 3,217,000		$ 400,000
Carrying amount	$ 3,079,000

SUMMARY OF SIGNIFICANT ACCOUN38

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Equipment [Member] | Minimum [Member]
Accounting Policies [Line Items]
Estimated useful life	3 years
Equipment [Member] | Maximum [Member]
Accounting Policies [Line Items]
Estimated useful life	5 years
Sales Revenue, Net [Member]
Accounting Policies [Line Items]
Percentage of revenue	13.00%
Sales Revenue, Net [Member] | Calmare Pain Therapy Medical Device Technology [Member]
Accounting Policies [Line Items]
Revenue	$ 1,045,000	$ 653,000
Percentage of revenue	90.00%	85.00%
Sales Revenue, Net [Member] | Customer One [Member] | Calmare Pain Therapy Medical Device Technology [Member]
Accounting Policies [Line Items]
Revenue	$ 150,000	$ 160,000
Percentage of revenue	14.00%	25.00%
Sales Of Supplies And Training Rental Payments And Sale Of Rental Assets [Member] | Calmare Pain Therapy Medical Device Technology [Member]
Accounting Policies [Line Items]
Percentage of revenue	4.00%	4.00%

INCOME TAXES (Reconciliation of

INCOME TAXES (Reconciliation of Tax Rate) (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Provision (benefit) at U.S. federal statutory rate	(35.00%)	(35.00%)
State provision (benefit), net of U.S. federal tax	(4.90%)	(4.90%)
Permanent differences	0.90%	(0.30%)
Other items	2.50%	5.00%
Deferred tax valuation allowance	(36.50%)	(35.20%)
Effective income tax rate	0.00%	0.00%

INCOME TAXES (Net Deferred Tax

INCOME TAXES (Net Deferred Tax Assets) (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]
Net federal and state operating loss carryforwards	$ 16,912,223	$ 15,748,253
Impairment of investments	531,470	531,470
Other, net	767,266	687,426
Deferred tax assets	18,210,959	16,967,149
Valuation allowance	(18,210,959)	(16,967,149)	$ (15,997,757)
Net deferred tax assets	$ 0	$ 0

INCOME TAXES (Changes in Valuat

INCOME TAXES (Changes in Valuation Allowance) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Changes in valuation allowance:
Balance, beginning of year	$ 16,967,149	$ 15,997,757
Change in temporary differences	79,840	6,789
Change in net operating and capital losses	1,163,970	962,603
Balance, end of year	$ 18,210,959	$ 16,967,149

INCOME TAXES (Details)

INCOME TAXES (Details) - Dec. 31, 2014 - USD ($)	Total
Income Tax Disclosure [Abstract]
Federal net operating loss carryforwards	$ 42,281,000
Federal net operating loss carryforwards, expiration period	2017 through 2034
State net operating loss carryforwards	$ 40,791,000
State net operating loss carryforwards, expiration dates	Dec. 31, 2034
NOL carryforward remaining	$ 4,196,000

NET LOSS PER COMMON SHARE (Calc

NET LOSS PER COMMON SHARE (Calculation of Net Income (Loss) Per Common Share) (Details) - shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Denominator for basic net loss per share, weighted average shares outstanding	23,513,870	16,977,027
Dilutive effect of common stock options	0	0
Dilutive effect of Series C convertible preferred stock and convertible debt and warrants	0	0
Denominator for net loss per share, assuming dilution	23,513,870	16,977,027

NET LOSS PER COMMON SHARE (Pote

NET LOSS PER COMMON SHARE (Potentially dilutive securities) (Details) - shares	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Anti-dilutive securities excluded from computation of earnings per share	13,754,362	8,430,214
Exercise of common stock options [Member]
Anti-dilutive securities excluded from computation of earnings per share	1,692,500	1,372,000
Exercise of common stock warrants [Member]
Anti-dilutive securities excluded from computation of earnings per share	4,450,536	1,313,679
Conversion of Series C convertible preferred stock [Member]
Anti-dilutive securities excluded from computation of earnings per share	2,828,054	1,423,150
Conversion of convertible debt [Member]
Anti-dilutive securities excluded from computation of earnings per share	4,783,272	4,321,385

SHAREHOLDERS' INTEREST (Details

SHAREHOLDERS' INTEREST (Details) - USD ($)	Dec. 30, 2010	Dec. 15, 2010	Sep. 30, 2013	Jun. 16, 2011	Dec. 31, 2014	Dec. 31, 2013	Jul. 31, 2013	Mar. 31, 2013
Stockholders Equity [Line Items]
Principal Amount					$ 3,217,069
Debt conversion, shares issued			1,618,235
Common stock issued in accordance with liability purchase agreement, shares						450,000
Shares issued, price per share			$ 0.18		$ 0.20		$ 0.20	$ 0.43
Common stock issued as part of equity purchase agreement and/or liability purchase agreement					$ 222,500
Common stock issued in accordance with escrow agreement, shares					1,000,000	1,000,000
Common stock, par value (in dollars per share)					$ 0.01	$ 0.01
Proceeds from private placement					$ 830,500
Common stock issued					4,152,500
Common stock issued, price per share			$ 0.18		$ 0.20		$ 0.20	$ 0.43
Issued warrants to purchase shares of common stock					2,076,250
Exercise price of warrants					$ 0.60
Warrants term					3 years
Shares issued for services					60,000
Consulting expense					$ 10,200
Amortizing amount					75,000
Stock warrant expense					$ 37,500
Shares issued under compensation plan to non employee directors					10,625	21,250
Director stock compensation expense					$ 4,038	$ 7,655
Promissory Notes [Member]
Stockholders Equity [Line Items]
Principal Amount		$ 400,000			$ 3,217,000
Maturity date		Dec. 31, 2012
Interest rate		5.00%
Southridge Partners Ii Lp [Member]
Stockholders Equity [Line Items]
Debt conversion, shares issued						260,000
Southridge Partners Ii Lp [Member] | Equity And Liabilities Purchase Agreement [Member]
Stockholders Equity [Line Items]
Common stock issued as part of equity purchase agreement and/or liability purchase agreement, shares						250,000
Shares issued, price per share						$ 0.35
Common stock issued as part of equity purchase agreement and/or liability purchase agreement						$ 87,500
Common stock issued, price per share						$ 0.35
Southridge Partners Ii Lp [Member] | Liabilities Purchase Agreement [Member]
Stockholders Equity [Line Items]
Common stock issued in accordance with liability purchase agreement, shares						200,000
Shares issued, price per share						$ 0.35
Common stock issued in accordance with liability purchase agreement						$ 70,000
Common stock issued, price per share						$ 0.35
Southridge Partners Ii Lp [Member] | Equity Purchase Agreement [Member]
Stockholders Equity [Line Items]
Amount of stock to be purchased, value						$ 10,000,000
Term of agreement						2 years
Percentage of shares outstanding owned						9.99%
Southridge Partners Ii Lp [Member] | Convertible Notes Payable Three [Member] | Liabilities Purchase Agreement [Member]
Stockholders Equity [Line Items]
Principal Amount						$ 12,000
Southridge Partners Ii Lp [Member] | Convertible Notes Payable Two [Member] | Equity Purchase Agreement [Member]
Stockholders Equity [Line Items]
Principal Amount						$ 65,000
Debt conversion, shares issued						260,000
Series C Preferred Stock [Member]
Stockholders Equity [Line Items]
Preferred stock, shares authorized					750	750
Preferred stock, par value (in dollars per shares)					$ 1,000	$ 1,000
Preferred stock, shares issued	350				375	375
Proceeds from preferred stock issued	$ 350,000
Dividends declared					$ 84,450
Dividends declared during year					18,750
Dividends declared and unpaid					$ 65,702
Preferred stock, voting rights					Holders of these shares of Series C Convertible Preferred Stock shall have voting rights equivalent to 1,000 votes per $1,000 par value Series C Convertible Preferred share voted together with the shares of Common Stock
Amount held in escrow					$ 750,000
Preferred stock, threshold percentage of stock price trigger					85.00%
Derivative liability				$ 81,933	$ 66,177	$ 80,408
Preferred stock, shares outstanding (in shares)					375	375
Series C Preferred Stock [Member] | Convertible Notes Payable Four [Member]
Stockholders Equity [Line Items]
Principal Amount					$ 400,000
Debt conversion, shares issued	400
Series C Preferred Stock [Member] | Williamr Walters Ltd Of Canada [Member]
Stockholders Equity [Line Items]
Preferred stock, shares issued	750
Preferred stock converted				375
Common stock issued upon preferred stock conversion				315,126
Series C Preferred Stock [Member] | Southridge Partners Ii Lp [Member]
Stockholders Equity [Line Items]
Preferred stock, shares authorized		750
Preferred stock, par value (in dollars per shares)		$ 1,000
5% preferred stock [Member]
Stockholders Equity [Line Items]
Percentage of cumulative dividend rate						5.00%
Preferential non-cumulative dividends (in dollars per share)						$ 1.25
Preferred stock redemption period						30 days
Dividend declared, date of record						Dec. 2, 2010
Trigger for issuance of dividends, percentage of outstanding common shares purchased						20.00%
Preferred stock, shares authorized					35,920	35,920
Preferred stock, par value (in dollars per shares)					$ 25	$ 25
Preferred stock, shares issued					2,427	2,427
Preferred stock, shares outstanding (in shares)					2,427	2,427
Warrant [Member]
Stockholders Equity [Line Items]
Shares issued for services					333,333	75,000

RECEIVABLES (Details)

RECEIVABLES (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Calmare device sales receivable, net of allowance of $209,533 and $0 at December 31, 2014 and 2013, respectively	$ 0	$ 132,850
Royalties, net of allowance of $101,154 at December 31, 2014 and 2013	0	10,086
Other, net of allowance of $6,972 and $0 at December 31, 2014 and 2013, respectively	2,319	394
Total receivables	2,319	143,330
Calmare sales receivable, allowance amount	209,533	0
Allowance for doubtful accounts	317,659	101,154
Other, net of allowance	$ 6,972	$ 0

PROPERTY AND EQUIPMENT, NET (De

PROPERTY AND EQUIPMENT, NET (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Property and equipment, gross	$ 215,491	$ 177,537
Accumulated depreciation and amortization	(179,851)	(169,931)
Property and equipment, net	35,640	7,606
Depreciation and amortization expense	$ 17,547	$ 11,147

AVAILABLE-FOR-SALE AND EQUITY48

AVAILABLE-FOR-SALE AND EQUITY SECURITIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2003	Dec. 31, 2013	Sep. 30, 2009	Jul. 22, 2009
NTRU Cryptosystems, Inc [Member]
Schedule of Available-for-sale Securities [Line Items]
Number of shares held					223,317
Number of shares acquired	3,129,509
Write down value		$ 0
Security Innovation, Inc. [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, fair value	$ 0		$ 0
Number of shares held	223,317
Xion Pharmaceutical Corporation [Member]
Schedule of Available-for-sale Securities [Line Items]
Available-for-sale securities, fair value	$ 0		$ 0
Number of shares held	60			60
Percentage of shares outstanding owned				30.00%

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013	Jul. 16, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Warrant liability		$ 8,227
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability	$ 66,000	80,000
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative liability		0	$ 19,024
Warrant liability		$ 8,000	$ 26,076

PREPAID EXPENSES AND OTHER CU50

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid insurance	$ 71,651	$ 16,802
Clinical trial	109,119	0
Other	72,332	48,365
Prepaid expenses and other current assets	$ 253,102	$ 65,167

LIABILITIES ASSIGNED TO LIABI51

LIABILITIES ASSIGNED TO LIABILITY PURCHASE AGREEMENT (Details) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Sep. 30, 2013	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2014
Liabilities Assigned To Liability Purchase Agreement [Line Items]
Liabilities under claims purchase agreement			$ 2,093,303	$ 1,995,320
Common stock issued in accordance with liability purchase agreement, shares			450,000
Liabilities Purchase Agreement [Member]
Liabilities Assigned To Liability Purchase Agreement [Line Items]
Financial obligations to existing creditors	$ 2,100,000
Liabilities under claims purchase agreement	$ 2,093,303
Payment to creditors		$ 80,000
Service fee retained		27,000
Cash payments for accrued expenses		$ 18,000
Common Stock Including Additional Paid in Capital [Member] | Liabilities Purchase Agreement [Member]
Liabilities Assigned To Liability Purchase Agreement [Line Items]
Common stock issued in accordance with liability purchase agreement, shares	1,618,235

ACCRUED EXPENSES AND OTHER LI52

ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($)	Dec. 31, 2014	Dec. 31, 2013
Payables and Accruals [Abstract]
Royalties payable	$ 314,787	$ 127,708
Accrued audit fee	0	82,141
Commissions payable	15,900	21,975
Accrued interest payable	987,659	216,518
Other	271,836	134,645
Accrued expenses and other liabilities, net	1,590,182	582,987
Accrued expenses and other liabilities - LPA	$ 217,000	$ 244,000

NOTES PAYABLE (Schedule of Note

NOTES PAYABLE (Schedule of Notes Payable) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Composition of Notes Payable:
Principal Amount	$ 3,217,069
Notes Payable, gross	3,079,469	$ 2,933,691
Less LPA amount	(485,980)	(505,000)
Notes Payable, net	2,593,489	2,488,691
Ninety Day Convertible Notes Related Party [Member]
Composition of Notes Payable:
Principal Amount	2,498,980
Notes Payable, gross	2,498,980	2,518,000
Notes Payable, net	$ 2,498,980
Cash Interest Rate	6.00%
Common Stock Conversion Price	$ 1.05
Matruity Date	Various 2,014
Notes Payable (Parenthetical):
Due to Board Member	$ 100,000
Twenty Four Month Convertible Notes [Member]
Composition of Notes Payable:
Principal Amount	225,000
Notes Payable, gross	225,000	225,000
Notes Payable, net	$ 225,000
Cash Interest Rate	6.00%
Common Stock Conversion Price	$ 1.05
Matruity Date	March 2014 - June 2014
10 day Note (Board member) [Member]
Composition of Notes Payable:
Principal Amount	$ 42,500
Notes Payable, gross	42,500	0
Notes Payable, net	$ 42,500
Matruity Date	January 2,015
Seriesa Three Original Issue Discount Convertible Notes And Warrants [Member]
Composition of Notes Payable:
Principal Amount	$ 11,765
Notes Payable, gross	11,765	0
Notes Payable, net	$ 11,765
Common Stock Conversion Price	$ 0.25
Matruity Date	January 2,015
Notes Payable (Parenthetical):
OID, yield percentage	15.00%
Series B OID Convertible Notes and Warrants [Member]
Composition of Notes Payable:
Principal Amount	$ 80,000
Notes Payable, gross	56,659	0
Notes Payable, net	$ 56,659
Common Stock Conversion Price	$ 0.23
Matruity Date	March 2,017
1 Year 15% OID Convertible Notes and Warrants [Member]
Composition of Notes Payable:
Principal Amount	$ 358,824
Notes Payable, gross	244,565	0
Notes Payable, net	$ 244,565
Common Stock Conversion Price	$ 0.20
Matruity Date	Aug. 2015 - Nov. 2015
Notes Payable (Parenthetical):
OID, yield percentage	15.00%
Tonaquint Original Issue Discount Convertible Notes And Warrants [Member]
Composition of Notes Payable:
Principal Amount	$ 112,500
Notes Payable, gross	$ 0	87,705
Cash Interest Rate	7.00%
Common Stock Conversion Price	$ 0.30
Notes Payable (Parenthetical):
OID, yield percentage	9.00%
Southridge Convertible Note [Member]
Composition of Notes Payable:
Principal Amount		12,000
Notes Payable, gross	$ 0	$ 12,000
Common Stock Conversion Price		$ 0.25
Seriesa One Original Issue Discount Convertible Notes And Warrants [Member]
Composition of Notes Payable:
Notes Payable, gross	$ 0	$ 81,415
Notes Payable (Parenthetical):
OID, yield percentage	15.00%
Seriesa Two Original Issue Discount Convertible Notes And Warrants [Member]
Composition of Notes Payable:
Notes Payable, gross	$ 0	$ 69,571
Notes Payable (Parenthetical):
OID, yield percentage	15.00%

NOTES PAYABLE (Summary of Issua

NOTES PAYABLE (Summary of Issuances of Notes Payable) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Ninety Day Convertible Notes Related Party [Member]
Short-term Debt [Line Items]
Notes Payable, amount borrowed during period	$ 2,498,980	$ 1,188,980	$ 1,210,000	$ 100,000

NOTES PAYABLE (Schedule of Debt

NOTES PAYABLE (Schedule of Debt Conversion) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Loss on conversion of notes	$ 63,867
Accelerated interest expense	$ 35,109
Shares issued	25,908,978	19,952,907
Series A 15% Original Issue Discount Convertible Notes and Warrants [Member]
Debt Instrument [Line Items]
Loss on conversion of notes	$ 58,366
Accelerated interest expense	$ 35,109
Shares issued	1,682,946
Principal amount of notes converted	$ 336,588

NOTES PAYABLE (Summary of Fair

NOTES PAYABLE (Summary of Fair Value Assumptions) (Details)	Nov. 07, 2014	Mar. 20, 2014	Feb. 14, 2014	Dec. 31, 2013	Nov. 15, 2013
Series A 15% Original Issue Discount Convertible Notes and Warrants [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected term			2 years	2 years	2 years
Volatility			184.88%	184.38%	180.02%
Risk Free Rate			0.32%	0.39%	0.31%
Series B Original Issue Discount Convertible Notes And Warrants [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected term		4 years
Volatility		151.52%
Risk Free Rate		1.32%
1 Year 15% OID Convertible Notes and Warrants [Member]
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Line Items]
Expected term	1 year
Volatility	188.31%
Risk Free Rate	0.11%

NOTES PAYABLE (Schedule of No57

NOTES PAYABLE (Schedule of Note Allocation) (Details) - USD ($)	Dec. 31, 2014	Mar. 20, 2014
Series A 15% Original Issue Discount Convertible Notes and Warrants [Member]
Proceeds allocated
Proceeds allocated, Note	$ 152,703
Proceeds allocated, Warrants	91,274
Proceeds allocated, Benevicial Conversion Feature	52,123
Total	296,100
Series B Original Issue Discount Convertible Notes And Warrants [Member]
Proceeds allocated
Proceeds allocated, Note	46,222	$ 34,272
Proceeds allocated, Warrants	18,778	26,811
Proceeds allocated, Benevicial Conversion Feature	0	3,917
Total	65,000	$ 65,000
1 Year 15% OID Convertible Notes and Warrants [Member]
Proceeds allocated
Proceeds allocated, Note	224,679
Proceeds allocated, Warrants	57,854
Proceeds allocated, Benevicial Conversion Feature	22,467
Total	$ 305,000

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	1 Months Ended	3 Months Ended					4 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013	Jun. 23, 2015
Short-term Debt [Line Items]
Principal amount		$ 3,217,069						$ 3,217,069
Proceeds from notes payable								467,500	$ 1,549,100
Loss on settlement of debt								(132,301)
Debt conversion, shares issued	1,618,235
Loss on conversion of note								(63,867)
1 Year 15% OID Convertible Notes and Warrants [Member]
Short-term Debt [Line Items]
Principal amount		$ 358,824						$ 358,824
Conversion price		$ 0.20						$ 0.20
Proceeds from notes payable		$ 305,000
Debt discount		$ 53,824						$ 53,824
Number of shares called by warrants		897,060						897,060
Exercise price of warrants		$ 0.60						$ 0.60
Term of warrant		1 year
Series B Original Issue Discount Convertible Notes And Warrants [Member]
Short-term Debt [Line Items]
Principal amount					$ 80,000
Conversion price		$ 0.23			$ 0.35			0.23
Shares issued					20,000,000
Proceeds from notes payable					$ 65,000
Debt discount					$ 15,000
Number of shares called by warrants					185,714
Exercise price of warrants		0.33			$ 0.45			$ 0.33
Term of warrant					4 years
Seriesa Original Issue Discount Convertible Notes And Warrants [Member]
Short-term Debt [Line Items]
Principal amount					$ 64,706	$ 283,648			$ 283,648
Proceeds from notes payable					55,000	241,100
Debt discount					9,706	42,548			42,548
Term of warrant								2 years
Debt conversion, shares issued								347,826
Seriesa Original Issue Discount Convertible Notes And Warrants [Member] | Minimum [Member]
Short-term Debt [Line Items]
Conversion price		0.20						$ 0.20
Exercise price of warrants		0.40						0.40
Seriesa Original Issue Discount Convertible Notes And Warrants [Member] | Maximum [Member]
Short-term Debt [Line Items]
Conversion price		0.25						0.25
Exercise price of warrants		$ 0.60						$ 0.60
Southridge Convertible Note [Member]
Short-term Debt [Line Items]
Notes payable, term								6 months
Principal amount						$ 12,000			$ 12,000
Conversion price						$ 0.25			$ 0.25
Note maturity date								Jun. 30, 2014
Debt conversion, shares issued								50,000
Loss on conversion of note			$ 5,500
Southridge Convertible Note [Member] | Maximum [Member]
Short-term Debt [Line Items]
Debt conversion, Common Stock Conversion Price, percent of closing bid						85.00%			85.00%
Tonaquint Original Issue Discount Convertible Notes And Warrants [Member]
Short-term Debt [Line Items]
Note issuance date								Sep. 30, 2013
Interest rate		7.00%						7.00%
Principal amount		$ 112,500						$ 112,500
Conversion price		$ 0.30						$ 0.30
Proceeds from notes payable								$ 100,000
Debt discount		$ 10,000						10,000
Transaction expenses								$ 2,500
Note maturity date								May 31, 2014
Frequency of periodic payment								monthly
Debt payments, start date								Jan. 31, 2014
Value of common stock called by warrant		$ 112,500						$ 112,500
Exercise price of warrants		$ 0.35						$ 0.35
Term of warrant								5 years
Cash payment for settlement of warrant					98,000
Loss on settlement of warrant					98,000
Cash payment for settlement of note				$ 124,000	20,000			$ 144,000
Loss on settlement of debt					$ 34,000
Twenty Four Month Convertible Notes [Member]
Short-term Debt [Line Items]
Interest rate		6.00%						6.00%
Principal amount		$ 225,000						$ 225,000
Conversion price		$ 1.05						$ 1.05
Additional Interest Expense								$ 29,000
Twenty Four Month Convertible Notes [Member] | Debt Issuance Three [Member]
Short-term Debt [Line Items]
Interest rate		6.00%						6.00%
Principal amount		$ 100,000						$ 100,000
Conversion price		$ 1.05						$ 1.05
Twenty Four Month Convertible Notes [Member] | Debt Issuance Two [Member]
Short-term Debt [Line Items]
Interest rate		6.00%						6.00%
Principal amount		$ 25,000						$ 25,000
Conversion price		$ 1.05						$ 1.05
Twenty Four Month Convertible Notes [Member] | Debt Issuance One [Member]
Short-term Debt [Line Items]
Interest rate		6.00%						6.00%
Principal amount		$ 100,000						$ 100,000
Conversion price		$ 1.05						$ 1.05
24 Month March 2012 Convertible Notes [Member]
Short-term Debt [Line Items]
Principal amount										$ 100,000
24 Month April 2012 Convertible Notes [Member]
Short-term Debt [Line Items]
Principal amount										25,000
24 Month June 2012 Convertible Notes [Member]
Short-term Debt [Line Items]
Principal amount										$ 100,000
Ninety Day Convertible Notes Related Party [Member]
Short-term Debt [Line Items]
Notes payable, term								90 days
Interest rate		6.00%						6.00%
Principal amount		$ 2,498,980						$ 2,498,980
Conversion price		$ 1.05						$ 1.05
Debt Instrument Interest Rate Per Month If Extended Original Maturity Dates		1.00%						1.00%
Additional Interest Expense			$ 510,000					$ 602,000
Proceeds from notes payable							$ 485,980

STOCK-BASED COMPENSATION PLAN59

STOCK-BASED COMPENSATION PLANS (Stock Option Plans) (Details) - USD ($)	3 Months Ended			12 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum life of stock options				3 years
Stock option compensation expense				$ 57,291	$ 116,365
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted				362,500	2,055,000
Fair value of shares vested				$ 57,291	$ 116,365
Incremental non-cash compensation				$ 16,920
Employee Stock Option [Member] | Two Thousand Directors' Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for issuance on exercise of options		120,000		120,000	120,000
Shares available for future option grants		0		0	0
Employee Stock Option [Member] | Twenty Eleven Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for issuance on exercise of options		1,165,000		1,517,500	1,165,000
Shares available for future option grants		335,000		482,500	335,000
Employee Stock Option [Member] | Nineteen Ninety Seven Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common shares reserved for issuance on exercise of options		87,000		55,000	87,000
Shares available for future option grants		0		0	0
Employee Stock Option [Member] | General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option compensation expense				$ 11,178	$ 14,895
Employee Stock Option [Member] | Personnel And Consulting Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of shares vested				$ 46,113	$ 84,550
Employee Stock Option [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum life of stock options				10 years
Employee Stock Option [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum life of stock options				5 years
Employee Stock Option [Member] | Minimum [Member] | Two Thousand Directors' Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of Fair Market Value				100.00%
Maximum life of stock options				10 years
Employee Stock Option [Member] | Minimum [Member] | Twenty Eleven Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of Fair Market Value				100.00%
Shares available for future option grants				2,000,000
Employee Stock Option [Member] | Minimum [Member] | Nineteen Ninety Seven Employee Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of Fair Market Value				100.00%
Vesting period of stock options				3 years
Maximum life of stock options				10 years
Employee Stock Option [Member] | Employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted	320,000
Vesting period of stock options	4 years
Options vested, percentage	20.00%
Employee Stock Option [Member] | Chief Executive Officer [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted		1,000,000	1,000,000
Vesting period of stock options		4 years	4 years
Options vested		200,000	200,000
Employee Stock Option [Member] | Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted					50,000
Options vested					50,000
Employee Stock Option [Member] | Director [Member] | Two Thousand Directors' Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issuable when director is first elected				10,000
Shares issuable to director on first business day of January				10,000

STOCK-BASED COMPENSATION PLAN60

STOCK-BASED COMPENSATION PLANS (Weighted Average Assumptions) (Details) - Employee Stock Option [Member]		12 Months Ended
		Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividend yield	[1]	0.00%	0.00%
Expected volatility, minimum	[2]	118.50%	99.20%
Expected volatility, maximum	[2]	122.24%	110.20%
Risk-free interest rate	[3]		1.02%
Risk-free interest rate, minimum	[3]	1.19%
Risk-free interest rate, maximum	[3]	1.72%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected lives	[2]	4 years	2 years
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected lives	[2]	5 years	5 years
[1]	We have not paid cash dividends on our common stock since 1981, and currently do not have plans to pay or declare cash dividends. Consequently, we used an expected dividend rate of zero for the valuations.
[2]	Estimated based on our historical experience. Volatility was based on historical experience over a period equivalent to the expected life in years.
[3]	Based on the U.S. Treasury constant maturity interest rate with a term consistent with the expected life of the options granted.

STOCK-BASED COMPENSATION PLAN61

STOCK-BASED COMPENSATION PLANS (Summary of Stock Option Activity) (Details) - Employee Stock Option [Member] - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Shares
Outstanding at beginning of period	1,372,000	317,000
Granted	362,500	2,055,000
Forfeited	(30,500)	(1,000,000)
Exercised	0	0
Expired or terminated	(11,500)	0
Outstanding at end of year	1,692,500	1,372,000
Vested at end of year	844,500	572,000
Nonvested at end of year	848,000	800,000
Weighted Average Exercise Price
Outstanding at beginning of period	$ 0.50	$ 1.85
Granted	0.39	0.29
Forfeited	2.03	0.50
Expired or terminated	2.87
Outstanding at end of year	0.44	0.50
Vested at end of year	0.70	1.10
Nonvested at end of year	0.18	0.08
Weighted average fair value per share of options issued during the year	$ 0.26	$ 0.21
Aggregate Intrinsic Values
Outstanding at end of year	$ 80,000	$ 240,750
Vested at end of year	32,000	48,750
Nonvested at end of year	$ 48,000	$ 192,000

COMMITMENTS AND CONTINGENCIES62

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2011
Loss Contingencies [Line Items]
Percentage of revenues obligation	7.50%
Gross Calmare Device sales, percentage		70.00%
Grant Funding Received In Nineteen Ninety Four [Member]
Loss Contingencies [Line Items]
Funding repayment obligation	$ 165,788
Grant Funding Received In Nineteen Ninety Five [Member]
Loss Contingencies [Line Items]
Funding repayment obligation	$ 199,334
Licensing Supported Products [Member] | Vector Vision, Inc. [Member]
Loss Contingencies [Line Items]
Percentage of revenues obligation	15.00%
Supported Products [Member] | Vector Vision, Inc. [Member]
Loss Contingencies [Line Items]
Percentage of revenues obligation	1.50%

COMMITMENTS AND CONTINGENCIES63

COMMITMENTS AND CONTINGENCIES (Future Minimum Rental Payments) (Details)	Dec. 31, 2014USD ($)
Commitments and Contingencies Disclosure [Abstract]
More than 5 years	$ 0
3-5 years	0
1-3 years	82,000
Within 1 year	68,000
Total	$ 150,000

COMMITMENTS AND CONTINGENCIES64

COMMITMENTS AND CONTINGENCIES (Total Rental Expense) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]
Minimum rental payments	$ 56,615	$ 60,038
Less: Sublease rentals	0	3,594
Net rent expense	56,615	56,444
Deferred rent charge	8,397	5,248
Total rent expense	$ 65,012	$ 61,692

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - Dec. 31, 2014 - USD ($)	Total
Related Party Transaction [Line Items]
Director's service charges per day	$ 1,000
Notes payable to related parties	2,642,000
Board of Directors Chairman [Member]
Related Party Transaction [Line Items]
Notes payable to related parties	2,499,000
Director [Member]
Related Party Transaction [Line Items]
Notes payable to related parties	$ 143,000

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - USD ($)	6 Months Ended	12 Months Ended
	Jun. 23, 2015	Dec. 31, 2014	Dec. 31, 2013	Sep. 30, 2013	Jul. 31, 2013	Mar. 31, 2013
Subsequent Event [Line Items]
Proceeds from equity issuance		$ 830,500
Proceeds from issuance of private placement		$ 830,500
Common stock issued		25,908,978	19,952,907
Common stock issued, price per share		$ 0.20		$ 0.18	$ 0.20	$ 0.43
Issued warrants to purchase shares of common stock		2,076,250
Exercise price of warrants		$ 0.60
Warrants term		3 years
Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds from equity issuance	$ 365,000
Procedds from issuance of debt	257,000
Proceeds from issuance of private placement	$ 365,000
Common stock issued	1,825,000
Common stock issued, price per share	$ 0.20
Issued warrants to purchase shares of common stock	912,500
Exercise price of warrants	$ 0.60
Warrants term	3 years
Proceeds from convertible debt	$ 302,000
Proceeds from issuance of warrants	257,000
Proceeds from notes and principal amount	$ 45,000
Debt conversion price per share	$ 0.20
Warrants issued	756,000
Subsequent Event [Member] | Transaction One [Member]
Subsequent Event [Line Items]
Warrants term	1 year