Echo Therapeutics (ECTE) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	6 Months Ended
	Jun. 30, 2014	Aug. 11, 2014	Jun. 28, 2013
Document And Entity Information	'	'	'
Entity Registrant Name	'Echo Therapeutics, Inc.	'	'
Entity Central Index Key	'0001031927	'	'
Document Type	'10-Q	'	'
Document Period End Date	30-Jun-14	'	'
Amendment Flag	'false	'	'
Current Fiscal Year End Date	'--12-31	'	'
Is Entity a Well-known Seasoned Issuer?	'No	'	'
Is Entity a Voluntary Filer?	'No	'	'
Is Entity's Reporting Status Current?	'Yes	'	'
Entity Filer Category	'Smaller Reporting Company	'	'
Entity Public Float	'	'	$24,732,724
Entity Common Stock, Shares Outstanding	'	12,672,768	'
Document Fiscal Period Focus	'Q2	'	'
Document Fiscal Year Focus	'2014	'	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
Current Assets:	'	'
Cash and cash equivalents	$4,105,954	$8,055,385
Cash restricted pursuant to letters of credit	52,488	302,488
Current portion of deferred financing costs	968,004	968,004
Prepaid expenses and other current assets	208,499	49,221
Total current assets	5,334,945	9,375,098
Property and Equipment, at cost:	'	'
Computer equipment	333,329	323,488
Office and laboratory equipment (including assets under capitalized leases)	740,177	728,152
Furniture and fixtures	755,444	755,444
Manufacturing equipment	111,980	111,980
Leasehold improvements	825,589	825,589
Property and equipment, at cost	2,766,519	2,744,653
Less-Accumulated depreciation and amortization	-1,436,980	-1,248,846
Net property and equipment (including assets under capitalized leases)	1,329,539	1,495,807
Other Assets:	'	'
Restricted cash	10,490	10,490
Intangible assets, net of accumulated amortization	9,625,000	9,625,000
Deferred financing costs	2,097,322	2,581,324
Other assets	1,000	1,576
Total other assets	11,733,812	12,218,390
Total assets	18,398,296	23,089,295
Current Liabilities:	'	'
Accounts payable	1,032,360	1,036,320
Current portion of deferred revenue from licensing arrangements	76,428	76,428
Current portion of capital lease obligation	'	1,361
Derivative warrant liability	586,155	1,119,155
Accrued expenses and other liabilities	884,201	1,411,107
Total current liabilities	2,579,144	3,644,371
Deferred revenue from licensing arrangements, net of current portion	38,214	76,428
Total liabilities	2,617,358	3,720,799
Convertible Preferred Stock:	'	'
Common Stock, $0.01 par value, authorized 150,000,000 shares, issued and outstanding 12,665,518 and 11,776,578 shares at June 30, 2014 and December 31, 2013, respectively	126,654	117,764
Additional paid-in capital	135,133,217	132,192,648
Accumulated deficit	-119,506,429	-112,969,412
Total stockholders' equity	15,780,938	19,368,496
Total liabilities and stockholders' equity	18,398,296	23,089,295
Series C Preferred Stock [Member]	'	'
Convertible Preferred Stock:	'	'
Series C, $0.01 par value, authorized 10,000 shares, issued and outstanding 1,000 shares at June 30, 2014 and December 31, 2013; Series D, $0.01 par value, authorized 3,600,000 shares, issued and outstanding 1,000,000 shares at June 30, 2014 and December 31, 2013 (preference in liquidation of $1,000,000); Series E, $0.01 par value, authorized 1,748,613 shares, issued and outstanding 1,748,613 shares at March 31June 30, 2014 and December 31, 2013	10	10
Series D Preferred Stock [Member]	'	'
Convertible Preferred Stock:	'	'
Series C, $0.01 par value, authorized 10,000 shares, issued and outstanding 1,000 shares at June 30, 2014 and December 31, 2013; Series D, $0.01 par value, authorized 3,600,000 shares, issued and outstanding 1,000,000 shares at June 30, 2014 and December 31, 2013 (preference in liquidation of $1,000,000); Series E, $0.01 par value, authorized 1,748,613 shares, issued and outstanding 1,748,613 shares at March 31June 30, 2014 and December 31, 2013	10,000	10,000
Series E Preferred Stock [Member]	'	'
Convertible Preferred Stock:	'	'
Series C, $0.01 par value, authorized 10,000 shares, issued and outstanding 1,000 shares at June 30, 2014 and December 31, 2013; Series D, $0.01 par value, authorized 3,600,000 shares, issued and outstanding 1,000,000 shares at June 30, 2014 and December 31, 2013 (preference in liquidation of $1,000,000); Series E, $0.01 par value, authorized 1,748,613 shares, issued and outstanding 1,748,613 shares at March 31June 30, 2014 and December 31, 2013	$17,486	$17,486

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Stockholders' Equity:	'	'
Convertible Preferred Stock, authorized	40,000,000	'
Common stock, par value	$0.01	$0.01
Common stock, authorized	150,000,000	150,000,000
Common stock, outstanding	12,665,518	11,776,578
Common stock, Share Issued	12,665,518	11,776,578
Series C Preferred Stock [Member]	'	'
Stockholders' Equity:	'	'
Convertible Preferred Stock, par value	$0.01	$0.01
Convertible Preferred Stock, authorized	10,000	10,000
Convertible Preferred Stock, outstanding	1,000	1,000
Convertible Preferred Stock, Share Issued	1,000	1,000
Series D Preferred Stock [Member]	'	'
Stockholders' Equity:	'	'
Convertible Preferred Stock, par value	$0.01	$0.01
Convertible Preferred Stock, authorized	3,600,000	3,600,000
Convertible Preferred Stock, outstanding	1,000,000	1,000,000
Convertible Preferred Stock, Share Issued	1,000,000	1,000,000
Convertible Preferred Stock,preference in liquidation	$1,000,000	$1,000,000
Series E Preferred Stock [Member]	'	'
Stockholders' Equity:	'	'
Convertible Preferred Stock, par value	$0.01	$0.01
Convertible Preferred Stock, authorized	1,748,613	1,748,613
Convertible Preferred Stock, outstanding	1,748,613	1,748,613
Convertible Preferred Stock, Share Issued	1,748,613	1,748,613

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement [Abstract]	'	'	'	'
Licensing revenue	$19,107	$22,557	$38,214	$45,114
Total revenues	19,107	22,557	38,214	45,114
Operating Expenses:	'	'	'	'
Research and development	1,747,254	4,019,149	3,148,162	7,238,872
Selling, general and administrative	2,187,335	2,098,347	3,475,235	4,397,794
Total operating expenses	3,934,589	6,117,496	6,623,397	11,636,666
Loss from operations	-3,915,482	-6,094,939	-6,585,183	-11,591,552
Other Income (Expense):	'	'	'	'
Interest income	835	620	735	1,703
Interest expense	-243,829	-242,078	-487,069	-3,415,859
Gain on disposals of assets	1,500	'	1,500	'
Gain on revaluation of derivative warrant liability	393,000	2,995,000	533,000	4,675,986
Other income (expense), net	151,506	2,753,542	48,166	1,261,830
Net loss	($3,763,976)	($3,341,397)	($6,537,017)	($10,329,722)
Net loss per common share, basic and diluted	($0.31)	($0.51)	($0.55)	($1.73)
Basic and diluted weighted average common shares outstanding	12,070,548	6,594,530	11,965,306	5,987,376

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Cash Flows From Operating Activities:	'	'
Net loss	($6,537,017)	($10,329,722)
Depreciation and amortization	198,792	188,574
Share-based compensation, net	591,055	768,634
Fair value of common stock and warrants issued for services	8,404	89,970
Gain on revaluation of derivative warrant liability	-533,000	-4,675,986
Gain on disposal of assets	-1,500	'
Amortization of discount on note payable	'	2,879,166
Amortization of non-cash deferred financing costs	484,002	484,002
Prepaid expenses and other current assets	-159,278	-134,695
Other assets	576	-500
Accounts payable	-3,960	-54,643
Deferred revenue from licensing arrangements	-38,214	-45,114
Accrued expenses and other liabilities	-526,906	188,081
Net cash used in operating activities	-6,517,046	-10,642,233
Cash Flows from Investing Activities:	'	'
Purchase of furniture, equipment and leasehold improvements	-32,911	-210,031
Decrease (increase) in restricted cash	250,000	-250,000
Proceeds on disposal of furniture, equipment and leasehold improvements	1,887	'
Net cash used in investing activities	218,976	-460,031
Cash Flows From Financing Activities:	'	'
Proceeds from issuances of Common Stock, and warrants, net of expenses	2,350,000	21,964,575
Repayment of Montaur note payable	'	-3,000,000
Principal payments on capital lease obligations	-1,361	-1,232
Net cash provided by financing activities	2,348,639	18,963,343
Net increase (decrease) in cash and cash equivalents	-3,949,431	7,861,079
Cash and cash equivalents, beginning of period	8,055,385	3,747,210
Cash and cash equivalents, end of period	4,105,954	11,608,289
Supplemental Disclosure of Cash Flow Information and Non Cash Financing Transactions:	'	'
Cash paid for interest	$3,067	$113,535

ORGANIZATION_AND_BASIS_OF_PRES

ORGANIZATION AND BASIS OF PRESENTATION	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 1. ORGANIZATION AND BASIS OF PRESENTATION	'
	Echo Therapeutics, Inc. (the “Company” or “Echo”) is a medical device company with expertise in advanced skin permeation technology.  The Company is developing its Symphony® CGM System (“Symphony”) as a non-invasive, wireless continuous glucose monitoring (“CGM”) system for use in hospital critical care units.  The Symphony SkinPrep System (“SkinPrep”), a component of Symphony, allows for enhanced skin permeation that enables extraction of analytes such as glucose and enhanced delivery of topical pharmaceuticals.
	The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Sontra Medical, Inc., a Delaware corporation.  All significant intercompany balances and transactions have been eliminated in consolidation.  These financial statements have been prepared in conformity with Generally Accepted Accounting Principles (“GAAP”) in the United States consistent with those applied in, and should be read in conjunction with, the Company’s audited consolidated financial statements and related footnotes for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on March 28, 2014.  These financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of Management, necessary for a fair presentation of the Company’s financial position as of June 30, 2014 and its results of operations and cash flows for the interim periods presented and are not necessarily indicative of results for subsequent interim periods or for the full year.  These interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements as allowed by the relevant SEC rules and regulations; however, the Company believes that its disclosures are adequate to ensure that the information presented is not misleading.
	On June 7, 2013, the Company effected a 1-for-10 reverse stock split of its Common Stock.  All share and per share information has been retroactively restated to reflect this reverse stock split.
	Liquidity, Going Concern and Management’s Plans
	The accompanying consolidated financial statements have been prepared on a basis assuming that the Company is a Going Concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As of June 30, 2014, the Company had cash of approximately $4,106,000, working capital of approximately $2,756,000 and an accumulated deficit of approximately $119,506,000.  While Management continues its efforts to reduce expenses, the Company continues to incur recurring losses from operations.  The Company will need to secure additional capital to fund its product development, research, manufacturing and clinical programs in its current planned operations.  In the past, the Company has funded its operations primarily through debt and equity issuances.  Management intends to actively pursue additional financing to fund its operations.  However, no assurances can be given that funding will be available to the Company and, if funding is available, that it will be available on terms acceptable to the Company.  If additional funding is not available on terms that are acceptable to the Company, no assurances can be given that the Company’s operations will be funded beyond November 30, 2014, as projected with our recently enacted cost reductions (see Note 15).  The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.
	Pursuant to the Securities Purchase Agreement (“SPA”) between the Company and Medical Technologies Innovation Asia Ltd. (“MTIA”), as amended on January 30, 2014, in March 2014 and on June 17, 2014, the Company would sell 1,818,182 shares of its Common Stock and 181,818 Warrants to purchase its Common Stock to MTIA for an aggregate purchase price of $5,000,000, such sales to be made in three installments through March 27, 2014. From February 4, 2014 through April 15, 2014, the Company received gross proceeds of $2,400,000 of the anticipated $5,000,000 in connection with the SPA. In connection with the receipt of those proceeds, the Company has issued to MTIA 872,728 shares of its Common Stock and 87,274 Warrants to purchase its Common Stock (see Note 8). Based on representations made by MTIA to the Company, the Company had anticipated the receipt of the full $5,000,000 from MTIA despite the fact that the funding dates in the SPA, as amended, have passed without receipt of funds from MTIA. MTIA’s failure to provide funds in a timely manner resulted in its material breach of the SPA, which has subsequently expired. The Company remains in discussions with MTIA regarding MTIA’s purchase of the additional $2,600,000 in Company securities and MTIA continues to reiterate its interest in the Company’s Symphony CGM System, to which MTIA is entitled only after completing its investment in the Company. No assurances can be given, however, that the Company will be successful in entering into a new agreement with MTIA.
	Reclassifications
	Certain expenses in first quarter of 2014 were reclassified to correspond with the current quarter’s presentation.

CASH

CASH	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 2. CASH	'
	Cash and Cash Equivalents
	As of June 30, 2014, the Company held approximately $4,106,000 in cash and cash equivalents.  The Company’s cash equivalents consist solely of bank money market funds.  The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits.  The Company has never experienced any losses related to these balances.
	Restricted Cash
	As of June 30, 2014, restricted cash represents a $52,488 letter of credit issued in favor of one of its landlords.  As of December 31, 2013, restricted cash consisted of a $250,000 letter of credit issued in favor of one of the Company’s key product development vendors and a $52,488 letter of credit issued in favor of one of its landlords.  Non-current restricted cash as of June 30, 2014 and December 31, 2013 represents a security deposit on the Company’s leased offices.

INTANGIBLE_ASSETS

INTANGIBLE ASSETS	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 3. INTANGIBLE ASSETS	'
	The Company’s intangible assets are related to the acquisition of assets from Durham Pharmaceuticals Ltd. in 2007.  Following the acquisition in 2007, the Company has modestly advanced the development programs for DurhalieveTM for the treatment of corticosteroid-responsive dermatoses and for the other earlier stage AzoneTS reformulation drug candidates.  Among other advancements, the Company has monitored stability on new drug formulations, assembled a complete response on the Durhalieve New Drug Application, met with the United States Food and Drug Administration (“FDA”) on development status, worked on a response for the methotrexate-AzoneTS (“MAZ”) ‘end of Phase 2’ meeting with the FDA, engaged consultants to review and recommend new product candidates and formulations, and conducted partnering activities around the technology.  In addition, the Company has made applicable regulatory filings necessary to maintain the active status of the AzoneTS Drug Master File, the Durhalieve and MAZ Investigational New Drug applications and the MAZ Orphan Drug application with the FDA.
	As of June 30, 2014 and December 31, 2013, intangible assets related to this acquisition are summarized as follows:
						2014				2013
		Estimated				Accumulated
		Life		Cost		Amortization		Net		Net
	Contract related intangible asset:
	Cato Research discounted contract	3 years		$	355,000	$	355,000	$	—	$	—
	Technology related intangible assets:
	Patents for the AzoneTS-based product candidates and formulation	4 years			1,305,000		—		1,305,000		1,305,000
	Drug Master Files containing formulation, clinical and safety documentation used by the FDA	4 years			1,500,000		—		1,500,000		1,500,000
	In-process pharmaceutical products for 2 indications	4 years			6,820,000		—		6,820,000		6,820,000
	Total technology related intangible assets				9,625,000		—		9,625,000		9,625,000
	Total, net			$	9,980,000	$	355,000	$	9,625,000	$	9,625,000
	Intangible assets related to technology are expected to be amortized on a straight-line basis over the period ending in September 2019, when the underlying patents expire, and will commence upon revenue generation which the Company estimates could occur as early as the third quarter of 2016.  The Cato Research contract included above was amortized over a three-year period, which ended in 2010.
	Estimated amortization expense for each of the next five calendar years is as follows:
			Estimated
			Amortization
			Expense
	2014		$	—
	2015		$	—
	2016		$	1,480,800
	2017		$	2,961,600
	2018		$	2,961,600
	The Company annually reviews the carrying value of intangible assets and considers events or circumstances that would indicate that the carrying amount of the intangible assets may not be recoverable.  If such events or circumstances exist, the Company performs an impairment test.  If the carrying value of the intangibles exceeds undiscounted cash flows, the Company writes down the carrying value of the intangible assets to their fair value in the period identified.  It is the Company’s policy to evaluate intangible assets for impairment at least annually in connection with its year-end financial statement preparation.

OPERATING_LEASE_COMMITMENTS

OPERATING LEASE COMMITMENTS	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 4. OPERATING LEASE COMMITMENTS	'
	The Company leases approximately 37,000 square feet of manufacturing, laboratory and office space in a single-story building located in Franklin, Massachusetts under a lease expiring October 31, 2017.
	The Company also leases approximately 7,900 square feet of corporate office space in a multi-story building located in Philadelphia, Pennsylvania under a lease expiring May 31, 2017, with the right to terminate the lease on November 30, 2014 at a cost that the Company has approximated at $43,000.
	The Company also leases a corporate apartment in Franklin, Massachusetts under a lease expiring on November 21, 2014, with the right to terminate the lease early upon payment of a termination fee.
	Future minimum lease payments for each of the next five years under these operating leases at June 30, 2014 are approximately as follows:
		Franklin		Philadelphia		Total
	Year Ending December 31,
	2014	$	230,000	$	94,000	$	324,000
	2015		457,000		191,000		648,000
	2016		468,000		196,000		664,000
	2017		389,000		82,000		471,000
	2018		—		—		—
	Total	$	1,544,000	$	563,000	$	2,107,000
	The Company’s facilities lease expense, including accruals for lease incentives, was approximately $142,000 and $99,000 for the three months ended June 30, 2014 and 2013, respectively, and $275,000 and $389,000 for the six months ended June 30, 2014 and 2013, respectively.

CREDIT_FACILITY_WITH_PLATINUMM

CREDIT FACILITY WITH PLATINUM-MONTAUR LIFE SCIENCES, LLC	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
NOTE 5. CREDIT FACILITY WITH PLATINUM-MONTAUR LIFE SCIENCES, LLC	'
	On August 31, 2012, the Company and Platinum Montaur Life Sciences, LLC (“Montaur”) entered into a Loan Agreement (the “Loan Agreement”) pursuant to which Montaur made a non-revolving draw credit facility (the “Credit Facility”) of up to $20,000,000 available to the Company, a substantial portion of which is subject to the successful achievement of certain clinical and regulatory milestones set forth in the Loan Agreement, with an initial available principal amount of $5,000,000.  The principal balance of each draw will bear interest from the applicable draw date at a rate of 10% per annum, compounded monthly.  The Company issued to Montaur a Promissory Note dated August 31, 2012, with a maturity date of five years from the date of closing.  The Company used the proceeds from the Credit Facility to fund operations.  As a result of the Company’s 2013 financing transactions, this Credit Facility is currently only available at Montaur’s discretion.
	Pursuant to the Loan Agreement, the Company issued Montaur a Warrant to purchase 400,000 shares of its Common Stock, with a term of five years and an exercise price of $20.00 per share (the “Commitment Warrant”).  The fair value of the Warrant was determined to be approximately $4,840,000 and was recorded as a deferred financing cost that will be amortized to interest expense over the term of the note.  Of this cost, $968,004 was reflected in Current Assets, representing the portion to be amortized over the next twelve months.  Amortization of the deferred financing cost for the three and six months ended June 30, 2014 was $242,000 and $484,000, respectively, and is included in interest expense.  In addition, for each $1,000,000 of funds borrowed pursuant to the Credit Facility, the Company will issue Montaur a Warrant to purchase 100,000 shares of Common Stock, with a term of five years and an exercise price equal to 150% of the market price of the Common Stock at the time of the draw, but in no event less than $20.00 or more than $40.00 per share (together with the Commitment Warrant, the “Warrants”).  All of the Warrants are immediately exercisable and will have a term of five years from the issue date.  The exercise price of the Warrants is subject to adjustment for stock splits, combinations or similar events.  An exercise under the Warrants may not result in the holder beneficially owning more than 4.99% or 9.99%, as applicable, of all of the Common Stock outstanding at the time; provided, however, that a Holder may waive the 4.99% ownership limitation upon sixty-one (61) days advance written notice to the Company.
	On September 14, 2012, the Company submitted a draw request to Montaur in the amount of $3,000,000 in the form required by the Loan Agreement (the “September Request”).  The Company ultimately received the $3,000,000 across three draws in 2012.  These draws were recorded on the Consolidated Balance Sheet under Note Payable, net of the initial $3,000,000 in discounts recorded related to the Warrants issued and described below.  In accordance with the Loan Agreement and as a result of funding received from Montaur, the Company issued to Montaur separate Warrants concurrent with the three draws in 2012 to purchase 300,000 shares of Common Stock, with a term of five years, and having exercise prices ranging from $21.10 to $22.70 per share.  The fair value of these Warrants issued was determined to be approximately $3,455,000, of which $3,000,000 was treated as a debt discount and was to be accreted to interest expense over the term of the note, and the balance of approximately $455,000 was charged to interest expense in 2012.
	On March 1, 2013, the Company elected to prepay all outstanding draws under the Montaur Credit Facility totaling $3,113,366, which includes interest accrued and unpaid to that date of $113,366.  After such date, no principal amount is outstanding under the Credit Facility.  Concurrent with this prepayment, the Company recorded non-cash interest expense of approximately $2,879,166 in March 2013 relating to the unamortized debt discount on the outstanding draws paid off.

DERIVATIVE_WARRANT_LIABILITY

DERIVATIVE WARRANT LIABILITY	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 6. DERIVATIVE WARRANT LIABILITY	'
	Derivative financial instruments are recognized as a liability on the Consolidated Balance Sheet and measured at fair value.  On June 30, 2014 and December 31, 2013, the Company had outstanding Warrants to purchase 1,211,485 and 1,209,211 shares of its Common Stock, respectively.  Included in these outstanding Warrants at June 30, 2014 and December 31, 2013 are Warrants to purchase 700,000 shares, which are considered to be derivative financial instruments.  The fair value of these derivative instruments on June 30, 2014 and December 31, 2013 was approximately $586,000 and $1,119,000, respectively, and is included in Derivative Warrant Liability, a current liability, in the Consolidated Balance Sheet.  Changes in fair value of the derivative financial instruments are recognized in the Consolidated Statement of Operations as a gain or loss on revaluation of Derivative Warrant Liability.  The Gain on Revaluation of Derivative Warrant Liability for the three months ended June 30, 2014 and 2013 were approximately $393,000 and $2,995,000, respectively, and for the six months ended June 30, 2014 and 2013 were approximately $533,000 and $4,676,000, respectively.
	The primary underlying risk exposure pertaining to the Warrants is the change in fair value of the underlying common stock for each reporting period.  For the three months ended June 30, 2014 and 2013, no Derivative Warrants were exercised and none expired.
	The table below presents the changes in the Derivative Warrant Liability, which is measured at fair value on a recurring basis and classified as Level 3 in fair value hierarchy:
		2014			2013
	Derivative Warrant Liability as of January 1	$	1,119,155		$	5,585,141
	Total unrealized losses included in net loss (1)		176,000			781,682
	Total unrealized gains included in net loss (1)		(709,000	)		(5,305,000	)
	Total realized gains included in net loss (1)		—			(152,668	)
	Derivative Warrant Liability as of June 30	$	586,155		$	909,155
	(1) Included in Gain on Revaluation of Derivative Warrant Liability in the Consolidated Statement of Operations.

PREFERRED_STOCK

PREFERRED STOCK	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 7. PREFERRED STOCK	'
	The Company is authorized to issue up to 40,000,000 shares of preferred stock with such rights, preferences and privileges as are determined by the Board of Directors.
	Series C Convertible Preferred Stock
	The Company has authorized 10,000 shares of Series C Preferred Stock, of which 1,000 shares were issued and outstanding as of June 30, 2014 and December 31, 2013.
	Series D Convertible Preferred Stock
	The Company has authorized 3,600,000 shares of Series D Convertible Preferred Stock, of which 1,000,000 shares were issued and outstanding as of June 30, 2014 and December 31, 2013.
	Series E Convertible Preferred Stock
	The Company has authorized 1,748,613 shares of Series E Convertible Preferred Stock, all of which were issued and outstanding as of June 30, 2014 and December 31, 2013.

COMMON_STOCK

COMMON STOCK	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 8. COMMON STOCK	'
	The Company has authorized 150,000,000 shares of Common Stock, of which 12,665,518 and 11,776,578 shares were issued and outstanding as of June 30, 2014 and December 31, 2013, respectively.
	January 2013 Financing
	On January 31, 2013 and February 1, 2013, the Company entered into underwriting agreements (collectively, the “Underwriting Agreements”) with Aegis Capital Corp. (“Aegis”), as a representative of several underwriters, with respect to the issuance and sale in an underwritten public offering by the Company of an aggregate of 1,567,855 shares of the Company’s Common Stock (including 204,500 shares sold pursuant to the over-allotment option), at a price to the public of $7.50 per share.  The net proceeds to the Company, after deducting the underwriting discount and other offering expenses payable by the Company, from the sale of the shares in the offering were approximately $10,626,000.  On March 1, 2013, the Company used a portion of the net proceeds of the offering to pay off the $3,113,366 balance under the note issued to Montaur in connection with the $20 million non-revolving draw credit facility (see Note 5).
	December 2013 Financing
	On December 10, 2013, in connection with a licensing transaction, the Company entered into (i) a Securities Purchase Agreement with Platinum Partners Value Arbitrage Fund L.P. (“Platinum Value”) and Platinum Partners Liquid Opportunity Master Fund L.P. (“Platinum Liquid”, and together with Platinum Value, the “Platinum Partners”) (the “Platinum Securities Purchase Agreement”) and (ii) a Securities Purchase Agreement with MTIA and Beijing Sino Tau Shang Pin Tech and Development Corp. (“MTIA Affiliate”, and together with MTIA, the “China Purchasers”) (the “MTIA Securities Purchase Agreement”, and together with the Platinum Securities Purchase Agreement, the “Securities Purchase Agreements”).
	Pursuant to the Platinum Securities Purchase Agreement, the Platinum Partners purchased an aggregate of 1,818,182 of the Company’s Capital Stock.  Of that total, Platinum Partners purchased 69,569 shares of the Company’s Common Stock at $2.75 per share, being a premium to the NASDAQ closing price of $2.71 per share on December 9, 2013.  In addition, the Platinum Partners purchased a total of 1,748,613 shares of Series E Preferred Stock (“Preferred Stock”) at a purchase price of $2.75 per share, which, under certain conditions, are exchangeable into shares of the Company’s Common Stock on a one-for-one basis.  The conversion of Preferred Stock into shares of Common Stock, however, is subject to a restriction, which prohibits the conversion of shares of Preferred Stock if the number of shares of Common Stock to be issued pursuant to such conversion would exceed, when aggregated with all other shares of Common Stock owned by the Platinum Partners and their affiliates at such time, the number of shares of Common Stock which would result in Platinum Partners and their affiliates beneficially owning in excess of 19.99% of all of the Company’s Common Stock outstanding at such time.  Under the terms of the Platinum Securities Purchase Agreement, the Platinum Partners also received 181,818 Warrants, having a five-year term and an exercise price of $2.75 per Warrant.  The Warrants are exercisable six months and one day following the issuance date thereof.  Under the terms of the Platinum Securities Purchase Agreement, the Company has, at the request of the Platinum Partners, agreed to prepare a Proxy Statement and seek stockholder approval of the issuance of the Common Stock underlying the Preferred Stock.  The Company received gross proceeds of $5,000,000 from the sale of the securities to the Platinum Partners on December 10, 2013 and incurred issuance costs of $100,000.
	In connection with the issuance of this Series E Preferred Stock, the conversion feature of Series E Stock was considered beneficial, or “in the money”, at issuance due to a conversion rate that allows the investor to obtain the Common Stock at below market price.  The Company recorded a deemed dividend on the beneficial conversion feature equal to its relative fair value resulting from the offering of $371,140 in the fourth quarter of the year ended December 31, 2013.
	Under the MTIA SPA, the China Purchasers agreed to purchase a total of 1,818,182 shares of the Company’s Common Stock at $2.75 per share along with 181,818 Warrants, having a five-year term and an exercise price of $2.75 and exercisable six months and one day following the issue date. As of June 30, 2014, the Company had not received the full proceeds of the sale of the securities from the MTIA with the parties having previously extended the due date for the receipt of all such proceeds to March 27, 2014, from the original closing date of December 12, 2013. MTIA failed to provide funds in a timely manner, resulting in its material breach of the SPA, which has subsequently expired. Due to the fact that the Company has not received the full proceeds from MTIA under the SPA, the Company has not issued all of the shares under the MITA SPA or recorded the complete MTIA transaction. In addition, the Company has not transferred any information related to license, development or commercialization of Symphony to MTIA since, pursuant to the license agreement between the Company and MTIA, the Company is not obligated to transfer technology unless and until MTIA fulfills its obligations under the MTIA SPA. Through June 30, 2014, the Company has issued 872,728 shares of Common Stock and Warrants to purchase 87,274 shares of Common Stock in exchange for $2,400,000 in gross proceeds, of which the last installment was paid to the Company on April 15, 2014. The Company incurred issuance costs of $50,000. The fair value of Warrants issued to MTIA to purchase 87,274 shares of Common Stock was determined to be approximately $174,396 and was recorded as a debit and a credit to Additional Paid in Capital.
	Stock Issued in Exchange for Services
	During the three months ended June 30, 2014 and 2013, the Company did not issue shares of Common Stock to vendors in exchange for their services.  During the six months ended June 30, 2014 and 2013, the Company issued 2,636 and 7,450 shares, respectively, of Common Stock with a fair value of $8,404 and $89,970, respectively, to vendors in exchange for their services.  The Company recorded expense related to these issuances, which represents the fair value of the related stock at the time of issuance, to Selling, General and Administrative expense.

EQUITY_COMPENSATION_PLANS

EQUITY COMPENSATION PLANS	6 Months Ended
	Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]	'
Note 9. EQUITY COMPENSATION PLANS	'
	In March 2003, the Company’s stockholders approved its 2003 Stock Option and Incentive Plan (the “2003 Plan”). Pursuant to the 2003 Plan, the Company’s Board of Directors (or its committees and/or executive Officers delegated by the Board of Directors) may grant incentive and nonqualified stock options, restricted stock, and other stock-based awards to the Company’s employees, Officers, Directors, consultants and advisors.  As of June 30, 2014, there were 10,000 restricted shares of Common Stock issued and options to purchase an aggregate of 39,000 shares of Common Stock outstanding under the 2003 Plan and no shares are available for future grants due to the 2003 Plan’s expiration.
	In May 2008, the Company’s stockholders approved the 2008 Equity Compensation Plan, as amended (the “2008 Plan”). The 2008 Plan provides for grants of incentive stock options to employees and nonqualified stock options and restricted stock to employees, consultants and non-employee Directors of the Company.  The maximum number of shares available under the 2008 Plan is 10,000,000 shares.  As of June 30, 2014, there were 136,258 restricted shares of Common Stock issued and options to purchase 1,123,361 shares of Common Stock outstanding under the 2008 Plan and 8,727,381 shares available for future grants.
	For the six months ended June 30, 2014, no stock option grants were issued outside of an equity compensation plan.
	The following table shows the remaining shares available for future grants for each plan and outstanding shares:
		Equity						Not Pursuant
		Compensation Plans						to a Plan
		2003 Plan			2008 Plan
	Shares Available For Issuance
	Total reserved for stock options and restricted stock		160,000			10,000,000
	Net restricted stock issued net of cancellations		(10,000	)		(136,258	)
	Stock options granted		(154,449	)		(1,624,716	)
	Add back options cancelled before exercise		79,849			488,355
	Less shares no longer available due to Plan expiration		(75,400	)		—
	Remaining shares available for future grants at June 30, 2014		—			8,727,381
	Stock options granted		154,449			1,624,716			310,000
	Less:   Stock options cancelled		(79,849	)		(488,355	)		(188,333	)
	Stock options exercised		(35,600	)		(13,000	)		(66,667	)
	Net options outstanding before restricted stock		39,000			1,123,361			55,000
	Net restricted stock issued net of cancellations		10,000			136,258			6,485
	Outstanding options and restricted shares at June 30, 2014		49,000			1,259,619			61,485

STOCK_OPTIONS

STOCK OPTIONS	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 10. STOCK OPTIONS	'
	The fair value of each stock option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model with certain assumptions noted below.  Expected volatilities are based on historical volatility of the Common Stock using historical periods consistent with the expected term of the options.  The Company uses historical data, as well as subsequent events occurring prior to the issuance of the financial statements, to estimate option exercise and employee termination and forfeitures within the valuation model.  The expected term of Stock Options granted under the Company’s stock plans is based on the average of the contractual term (generally 10 years) and the vesting period (generally 24 to 42 months).  The risk-free rate is based on the yield of a U.S. Treasury security with a term consistent with the option.
	For Stock Options issued and outstanding during the three month periods ended June 30, 2014 and 2013, the Company recorded additional paid-in capital and non-cash compensation expense of $137,000 and $254,000, respectively, each net of estimated forfeitures.
	The assumptions used principally for Stock Options granted to employees and members of the Company’s Board of Directors in the six months ended June 30, 2014 and 2013 were as follows:
		2014			2013
	Risk-free interest rate		0.11% – 2.08	%		0.13% - 1.41	%
	Expected dividend yield		—			—
	Expected term	1.0 - 6.0 years			1.0 - 6.5 years
	Forfeiture rate (excluding fully vested stock options)		15	%		15	%
	Expected volatility		129% - 141	%		129% - 141	%
	A summary of stock option activity as of and for the six months ended June 30, 2014 is as follows:
					Weighted-			Weighted-
					Average			Average	Aggregate
					Exercise			Remaining	Intrinsic
		Shares			Price			Contractual	Value
	Stock Options							Term
	Outstanding options at January 1, 2014		1,455,432		$	4.9
	Granted		159,950		$	3.25
	Exercised		—		$	—
	Forfeited or expired		(398,021	)	$	4.43
	Outstanding options at June 30, 2014		1,217,361		$	4.84		8.70 years	$	—
	Exercisable options at June 30, 2014		277,674		$	9.6		6.36 years	$	—
	The weighted-average grant-date fair value of stock options granted during the three and six months ended June 30, 2014 was $1.85 and $3.25 per share, respectively.  As of June 30, 2014, there was approximately $1,428,000 of total unrecognized compensation expense related to non-vested share-based option compensation arrangements. With the exception of the unrecognized share-based compensation related to certain restricted stock grants to Officers and employees that contain performance conditions related to FDA approval for Symphony or the sale of substantially all of the stock or assets of the Company, unrecognized compensation is expected to be recognized over the next four years.

RESTRICTED_STOCK

RESTRICTED STOCK	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 11. RESTRICTED STOCK	'
	For restricted stock issued and outstanding during the three month period ended June 30, 2014, and 2013, the Company incurred non-cash compensation expense of approximately $108,000 and $152,000, respectively, each net of estimated forfeitures.
	During the three months ended June 30, 2014, the Company granted an aggregate of 12,550 restricted shares of Common Stock to certain Officers, employees, Directors and consultants of the Company.  The grants were issued pursuant to the 2008 Plan.
	A summary of non-vested restricted stock activity as of and for the six months ended June 30, 2014 is as follows:
	Restricted Stock					Weighted-
						Average
			Shares			Grant-Date
						Fair Value
	Non-vested shares at January 1, 2014			201,655		$	10.66
	Granted			29,686		$	3.19
	Vested			(55,301	)	$	7.44
	Forfeited			(23,297	)	$	6.03
	Non-vested shares at June 30, 2014			152,743		$	11.08
	Among the 152,743 shares of non-vested restricted stock, the various vesting criteria include the following:
		·	51,785 shares of restricted stock vest upon the FDA approval of Symphony or the sale of the Company; and
		·	100,958 shares of restricted stock vest over four years, at each of the anniversary dates of the grants.
	As of June 30, 2014, there was approximately $550,000 of total unrecognized compensation expense related to non-vested share-based restricted stock arrangements granted pursuant to the Company’s equity compensation plans that vest over time in the foreseeable future.  As of June 30, 2014, the Company cannot estimate the timing of completion of performance vesting requirements required by certain of these restricted stock grant arrangements.  Compensation expense related to these restricted share grants will be recognized when the Company concludes that achievement of the performance vesting conditions is probable.

WARRANTS

WARRANTS	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 12. WARRANTS	'
	The Company uses valuation methods and assumptions that consider among other factors the fair value of the underlying stock, risk-free interest rate, volatility, expected life and dividend rates in estimating fair value for the Warrants considered to be derivative instruments.  The following assumptions were utilized by the Company:
		2014			2013
	Risk-free interest rate		1.44% - 1.80	%		0.65% - 1.49	%
	Expected dividend yield		—			—
	Expected term (contractual term)	3.2 – 3.4 years			4.2 – 4.4 years
	Expected volatility		120% - 122	%		121% - 122	%
	Expected volatilities are based on historical volatility of the Common Stock using historical periods consistent with the expected term of the Warrant.  The risk-free rate is based on the yield of a U.S. Treasury security with a term consistent with the Warrant.
	In the three and six months ended June 30, 2014, the Company issued 18,182 and 69,092 Warrants, respectively, in connection with partial closings related to the private placement of the Company’s Common Stock with MTIA (See Note 8).
	At June 30, 2014, the Company had the following outstanding Warrants:
		Number of			Exercise Price			Date of Expiration
		Shares
		Exercisable
	Outstanding Warrants accounted for as derivative Warrant liability:
	Granted to debt holder		400,000		$	20		8/31/17
	Granted to debt holder		100,000			21.3		9/20/17
	Granted to debt holder		50,000			22.7		10/17/17
	Granted to debt holder		150,000			21.1		11/6/17
	Total outstanding Warrants accounted for as derivative Warrant liability		700,000
	Weighted average exercise price				$	20.61
	Weighted average time to expiration							3.48 years
	Outstanding Warrants accounted for as equity:
	Granted to investors in private placement		76,800		$	20		11/13/14
	Granted to placement agent in private placement		25,695			15		11/13/14
	Granted to investors in private placement		6,300			20		12/3/14
	Granted to investors in private placement		34,147			22.5		2/9/15
	Granted to placement agents in private placement		2,853			22.5		2/9/15
	Granted to investor in private placement		638			22.5		3/18/15
	Granted to investors in private placement		95,960			30		12/7/14
	Granted to investors in private placement of common and preferred stock		181,818			2.75		12/10/18
	Granted to investors in private placement of common stock………………………..		18,182			2.75		2/20/19
	Granted to investors in private placement of common stock		69,092			2.75		6/17/19
	Total outstanding Warrants accounted for as equity		511,485
	Weighted average exercise price				$	12.73
	Weighted average time to expiration							2.00 years
	Totals for all Warrants outstanding:
	Total		1,211,485
	Weighted average exercise price				$	17.29
	Weighted average time to expiration							3.22 years
	A summary of Warrant activity for the six months ended June 30, 2014 is as follows:
					Weighted-
					Average
					Exercise
	Warrants	Shares			Price
	Outstanding Warrants at January 1, 2014		1,209,211		$	17.92
	Granted		87,274		$	2.75
	Exercised		—		$	—
	Forfeited or expired		(85,000	)	$	11.35
	Outstanding Warrants at June 30, 2014		1,211,485		$	17.29

LICENSING_AND_OTHER_REVENUE

LICENSING AND OTHER REVENUE	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 13. LICENSING AND OTHER REVENUE	'
	In 2009, the Company entered into a License Agreement with Handok Pharmaceuticals Co., Ltd. (“Handok”) pursuant to which the Company granted Handok a license to develop, use, market, sell and import Symphony for continuous glucose monitoring for use by medical facilities and/or individual consumers in South Korea (the “Handok License”).  The Handok License has a minimum term of 10 years from the date of the first commercial sale of Symphony in South Korea.
	The Company received a licensing fee of approximately $500,000 upon execution of the Handok License and the right to receive future milestone payments and royalties. The Company recognizes these upfront, nonrefundable payments as revenue on a straight-line basis over the contractual or estimated performance period.  During the three months ended June 30, 2014 and 2013, the Company recorded approximately $19,000 and $23,000, respectively, of nonrefundable license revenue.  During the six months ended June 30, 2014 and 2013, the Company recorded approximately $38,000 and $45,000, respectively, of nonrefundable license revenue.  As of June 30, 2014, approximately $76,000 is recognizable over the next 12 months and is shown as current deferred revenue.  The remaining $38,000 is recognizable as revenue beyond the 12 month period and is classified as non-current.
	In December 2013, in connection with a capital raising transaction, the Company entered into a license, development and commercialization agreement with MTIA (the “License Agreement”).  Later in December 2013, January 2014 and March 2014, the License Agreement with MTIA was amended to extend the due date to March 27, 2014 for receipt of all proceeds past the original closing date of December 12, 2013.  The amendment provides that the Company is not required to commence its obligations under the License Agreement, including the transfer of any technology or other documents, products or information to MTIA, until the Company has received the full proceeds from the capital raising transaction.  To date, the Company has received from MTIA $2,400,000 of the anticipated $5,000,000 in proceeds in accordance with the capital raising transaction (see Note 8).  Since MTIA did not fulfill its obligations with respect to the capital raising transaction, the Company has not transferred any information to MTIA relating to the license, development or commercialization of our product in accordance with the License Agreement.

LITIGATION

LITIGATION	6 Months Ended
	Jun. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
NOTE 14. LITIGATION	'
	In February 2014, Patrick T. Mooney, M.D., the Company’s former President and Chief Executive Officer, and his wife, Elizabeth Mooney, filed a complaint against us and certain of the Company’s Directors and Officers in the Court of Common Pleas in Philadelphia County.  The complaint, which alleges (i) that Dr. Mooney’s termination was in breach of his employment agreement and that he is entitled to certain severance benefits; (ii) that certain legally required disclosures by the Company and its General Counsel defamed Dr. Mooney; and (iii) that Dr. Mooney’s wife is entitled to damages under a theory of loss of consortium, seeks in excess of $20 million in damages.  The Company has filed an amended answer to the complaint and amended its counterclaims against Dr. Mooney in order to conserve cash that the Company does not believe it can ultimately recover from Dr. Mooney even if it prevailed on those counterclaims.  The Company believes it has strong defenses to the claims asserted and intends to defend them vigorously.  The Company similarly believes it has strong support for its counterclaim and will pursue it vigorously.  The Court has set a tentative trial date in July 2015.
	In July, 2014, Dr. Mooney and his wife filed a complaint against the Company, certain of its directors and Officers and a former Director and officer alleging (i) wrongful use of civil proceedings; (ii) abuse of process; and (iii) that Dr. Mooney’s wife is entitled to damages under a theory of loss of consortium, seeks in excess of $30 million in damages.  The complaint was filed following the Company’s amendment of certain counterclaims filed against Dr. Mooney in connection with litigation initiated by Dr. Mooney against us, Echo’s Board of Directors and Ms. Burke in connection with the Company’s September 2013 termination of Dr. Mooney for cause pursuant to his employment agreement.  The Company believes it acted lawfully and in good faith, has strong defenses to the claims asserted and intends to vigorously defend against this lawsuit.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2014
Subsequent Events	'
Note 15. SUBSEQUENT EVENTS	'
	Management has evaluated events subsequent to June 30, 2014.  Other than as discussed in Notes 1 and 14, there are no subsequent events that require adjustment to or disclosure in the Financial Statements.
	Effective at midnight on June 30, 2014, Robert F. Doman’s consulting contract with the Company expired in accordance with its terms and, accordingly, he no longer serves as the Company’s Executive Chairman and Interim Chief Executive Officer.  On June 30, 2014, the Board appointed Kimberly A. Burke to serve as Interim Chief Executive Officer of Echo, effective July 1, 2014 and continuing for the sixty-day period expiring on August 30, 2014 or, if earlier, such date as a candidate is identified and appointed by the Board to serve as the Company’s Chief Executive Officer.  Ms. Burke also serves as Echo’s Principal Executive Officer and continues to serve the Company as its General Counsel and Chief Compliance Officer.  The Board continues to work with a retained executive search firm to hire a well-qualified Chief Executive Officer.  William Grieco, the Chairman of the Company’s Nominating and Corporate Governance Committee, is leading this search.
	Effective July 15, 2014, Christopher P. Schnittker resigned as Senior Vice President and Chief Financial Officer of Echo to accept another opportunity.  Effective July 16, 2014, the Board appointed Charles T. Bernhardt to serve as Interim Chief Financial Officer of Echo.
	Under Section 5.6 of the Platinum Securities Purchase Agreement, at the reasonable request of Platinum Partners, the Company is required to prepare and file with the SEC a Proxy Statement and seek stockholder approval of the issuance of the Common Stock underlying the Series E Preferred Stock and the Warrants.  The Company is required to file the proxy statement as promptly as reasonably practicable, but in any event no later than 30 business days following the receipt of the request.  Thereafter, as promptly as reasonably practicable, but in any event no later than three business days after the Proxy Statement becomes definitive, the Company is required to duly call, give notice to stockholders, convene and hold the Special Meeting, which shall be held no later than 45 business days following the request.  On July 9, 2014, Platinum Partners delivered to the Company a Notice of Request to Call a Special Meeting of Stockholders, in which Platinum Partners requested pursuant to Section 5.6 of the Platinum Stock Purchase Agreement that the Company call a Special Meeting of stockholders to seek stockholder approval of the issuance of 1,748,613 shares of the Common Stock upon the conversion of the 1,748,613 shares of Series E Preferred Stock.
	Echo announced that it has taken steps to substantially reduce operating costs and preserve cash while further refining its development efforts and resources on implementing key product performance enhancements to its Symphony CGM System.  The Company has implemented significant cost reductions across all aspects of its operations in both external spend and workforce, including reductions in general and administrative expenditures, manufacturing, clinical and product development expenditures.  The Company anticipates a meaningful decrease in expenses as a result of the most recent cost reduction efforts.  As a result of these new initiatives, that include 35% reduction in employees, the monthly burn rate is projected to decrease by 40%-50% as compared to the average monthly burn rate experienced during the first six months of 2014.
	The Company continues to explore a variety of funding alternatives which it believes, together with the cost reduction initiatives, is necessary to permit the Company to ultimately achieve its clinical trial and regulatory approval objectives.  In the absence of a financing or strategic transaction, Echo's ability to achieve its previously stated product development timelines will be negatively impacted by the Company’s effort to preserve cash and reduce expenses.

ORGANIZATION_AND_BASIS_OF_PRES1

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	6 Months Ended
	Jun. 30, 2014
Organization And Basis Of Presentation Policies	'
ORGANIZATION AND BASIS OF PRESENTATION	'
	Echo Therapeutics, Inc. (the “Company” or “Echo”) is a medical device company with expertise in advanced skin permeation technology.  The Company is developing its Symphony® CGM System (“Symphony”) as a non-invasive, wireless continuous glucose monitoring (“CGM”) system for use in hospital critical care units.  The Symphony SkinPrep System (“SkinPrep”), a component of Symphony, allows for enhanced skin permeation that enables extraction of analytes such as glucose and enhanced delivery of topical pharmaceuticals.
	The accompanying unaudited consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Sontra Medical, Inc., a Delaware corporation.  All significant intercompany balances and transactions have been eliminated in consolidation.  These financial statements have been prepared in conformity with Generally Accepted Accounting Principles (“GAAP”) in the United States consistent with those applied in, and should be read in conjunction with, the Company’s audited consolidated financial statements and related footnotes for the year ended December 31, 2013 included in the Company’s Annual Report on Form 10-K as filed with the United States Securities and Exchange Commission (“SEC”) on March 28, 2014.  These financial statements reflect all adjustments, consisting only of normal recurring adjustments, which are, in the opinion of Management, necessary for a fair presentation of the Company’s financial position as of June 30, 2014 and its results of operations and cash flows for the interim periods presented and are not necessarily indicative of results for subsequent interim periods or for the full year.  These interim financial statements do not include all of the information and footnotes required by GAAP for complete financial statements as allowed by the relevant SEC rules and regulations; however, the Company believes that its disclosures are adequate to ensure that the information presented is not misleading.
	On June 7, 2013, the Company effected a 1-for-10 reverse stock split of its Common Stock.  All share and per share information has been retroactively restated to reflect this reverse stock split.
LIQUIDITY, GOING CONCERN AND MANAGEMENT'S PLAN	'
	The accompanying consolidated financial statements have been prepared on a basis assuming that the Company is a Going Concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  As of June 30, 2014, the Company had cash of approximately $4,106,000, working capital of approximately $2,756,000 and an accumulated deficit of approximately $119,506,000.  While Management continues its efforts to reduce expenses, the Company continues to incur recurring losses from operations.  The Company will need to secure additional capital to fund its product development, research, manufacturing and clinical programs in its current planned operations.  In the past, the Company has funded its operations primarily through debt and equity issuances.  Management intends to actively pursue additional financing to fund its operations.  However, no assurances can be given that funding will be available to the Company and, if funding is available, that it will be available on terms acceptable to the Company.  If additional funding is not available on terms that are acceptable to the Company, no assurances can be given that the Company’s operations will be funded beyond September 30, 2014.  The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties.
	Pursuant to the Securities Purchase Agreement (“SPA”) between the Company and Medical Technologies Innovation Asia Ltd. (“MTIA”), as amended on January 30, 2014, in March 2014 and on June 17, 2014, the Company would sell 1,818,182 shares of its Common Stock and 181,818 Warrants to purchase its Common Stock to MTIA for an aggregate purchase price of $5,000,000, such sales to be made in three installments on January 31st, February 20th and March 10th, 2014.  From February 4, 2014 through April 15, 2014, the Company received gross proceeds of $2,400,000 of the anticipated $5,000,000 in connection with the SPA. In connection with the receipt of those proceeds, the Company has issued to MTIA 872,728 shares of its Common Stock and 87,274 Warrants to purchase its Common Stock (see Note 8).  Based on representations made by MTIA to the Company, the Company had anticipated the receipt of the full $5,000,000 from MTIA despite the fact that the funding dates in the SPA, as amended, have passed without receipt of funds from MTIA.  The Company remains in discussions with MTIA regarding MTIA’s purchase of the additional $2,600,000 in Company securities and MTIA continues to reiterate its interest in the Company’s Symphony CGM System, to which MTIA is entitled only after completing its investment in the Company.   No assurances can be given, however, that the Company will be successful in entering into a new agreement with MTIA
RECLASSIFICATIONS	'
	Certain expenses in first quarter of 2014 were reclassified to correspond with the current quarter’s presentation.

INTANGIBLE_ASSETS_Tables

INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jun. 30, 2014
Intangible Assets Tables	'
Intangible assets	'
						2014				2013
		Estimated				Accumulated
		Life		Cost		Amortization		Net		Net
	Contract related intangible asset:
	Cato Research discounted contract	3 years		$	355,000	$	355,000	$	—	$	—
	Technology related intangible assets:
	Patents for the AzoneTS-based product candidates and formulation	4 years			1,305,000		—		1,305,000		1,305,000
	Drug Master Files containing formulation, clinical and safety documentation used by the FDA	4 years			1,500,000		—		1,500,000		1,500,000
	In-process pharmaceutical products for 2 indications	4 years			6,820,000		—		6,820,000		6,820,000
	Total technology related intangible assets				9,625,000		—		9,625,000		9,625,000
	Total, net			$	9,980,000	$	355,000	$	9,625,000	$	9,625,000
Amortization expense	'
	Estimated amortization expense for each of the next five calendar years is as follows:
			Estimated
			Amortization
			Expense
	2014		$	—
	2015		$	—
	2016		$	1,480,800
	2017		$	2,961,600
	2018		$	2,961,600

OPERATING_LEASE_COMMITMENTS_Ta

OPERATING LEASE COMMITMENTS (Tables)	6 Months Ended
	Jun. 30, 2014
Operating Lease Commitments Tables	'
Future minimum lease payments	'
	Future minimum lease payments for each of the next five years under these operating leases at June 30, 2014 are approximately as follows:
		Franklin		Philadelphia		Total
	Year Ending December 31,
	2014	$	230,000	$	94,000	$	324,000
	2015		457,000		191,000		648,000
	2016		468,000		196,000		664,000
	2017		389,000		82,000		471,000
	2018		—		—		—
	Total	$	1,544,000	$	563,000	$	2,107,000

DERIVATIVE_WARRANT_LIABILITY_T

DERIVATIVE WARRANT LIABILITY (Tables)	6 Months Ended
	Jun. 30, 2014
Derivative Warrant Liability Tables	'
Derivative warrant liability	'
	The table below presents the changes in the Derivative Warrant Liability, which is measured at fair value on a recurring basis and classified as Level 3 in fair value hierarchy:
		2014			2013
	Derivative Warrant Liability as of January 1	$	1,119,155		$	5,585,141
	Total unrealized losses included in net loss (1)		176,000			781,682
	Total unrealized gains included in net loss (1)		(709,000	)		(5,305,000	)
	Total realized gains included in net loss (1)		—			(152,668	)
	Derivative Warrant Liability as of June 30	$	586,155		$	909,155

EQUITY_COMPENSATION_PLANS_Tabl

EQUITY COMPENSATION PLANS (Tables)	6 Months Ended
	Jun. 30, 2014
Compensation and Retirement Disclosure [Abstract]	'
Share based compensation options	'
	The following table shows the remaining shares available for future grants for each plan and outstanding shares:
		Equity						Not Pursuant
		Compensation Plans						to a Plan
		2003 Plan			2008 Plan
	Shares Available For Issuance
	Total reserved for stock options and restricted stock		160,000			10,000,000
	Net restricted stock issued net of cancellations		(10,000	)		(136,258	)
	Stock options granted		(154,449	)		(1,624,716	)
	Add back options cancelled before exercise		79,849			488,355
	Less shares no longer available due to Plan expiration		(75,400	)		—
	Remaining shares available for future grants at June 30, 2014		—			8,727,381
	Stock options granted		154,449			1,624,716			310,000
	Less:   Stock options cancelled		(79,849	)		(488,355	)		(188,333	)
	Stock options exercised		(35,600	)		(13,000	)		(66,667	)
	Net options outstanding before restricted stock		39,000			1,123,361			55,000
	Net restricted stock issued net of cancellations		10,000			136,258			6,485
	Outstanding options and restricted shares at June 30, 2014		49,000			1,259,619			61,485

STOCK_OPTIONS_Tables

STOCK OPTIONS (Tables)	6 Months Ended
	Jun. 30, 2014
Stock Options Tables	'
Assumption used for stock option granted	'
	The assumptions used principally for Stock Options granted to employees and members of the Company’s Board of Directors in the six months ended June 30, 2014 and 2013 were as follows:
		2014			2013
	Risk-free interest rate		0.11% – 2.08	%		0.13% - 1.41	%
	Expected dividend yield		—			—
	Expected term	1.0 - 6.0 years			1.0 - 6.5 years
	Forfeiture rate (excluding fully vested stock options)		15	%		15	%
	Expected volatility		129% - 141	%		129% - 141	%
Stock option activity	'
	A summary of stock option activity as of and for the six months ended June 30, 2014 is as follows:
					Weighted-			Weighted-
					Average			Average	Aggregate
					Exercise			Remaining	Intrinsic
		Shares			Price			Contractual	Value
	Stock Options							Term
	Outstanding options at January 1, 2014		1,455,432		$	4.9
	Granted		159,950		$	3.25
	Exercised		—		$	—
	Forfeited or expired		(398,021	)	$	4.43
	Outstanding options at June 30, 2014		1,217,361		$	4.84		8.70 years	$	—
	Exercisable options at June 30, 2014		277,674		$	9.6		6.36 years	$	—

RESTRICTED_STOCK_Tables

RESTRICTED STOCK (Tables)	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Nonvested restricted stock activity	'
	A summary of non-vested restricted stock activity as of and for the six months ended June 30, 2014 is as follows:
	Restricted Stock				Weighted-
					Average
		Shares			Grant-Date
					Fair Value
	Non-vested shares at January 1, 2014		201,655		$	10.66
	Granted		29,686		$	3.19
	Vested		(55,301	)	$	7.44
	Forfeited		(23,297	)	$	6.03
	Non-vested shares at June 30, 2014		152,743		$	11.08

WARRANTS_Tables

WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2014
Warrants Tables	'
Warrants assumptions utilized by the Company	'
		2014			2013
	Risk-free interest rate		1.44% - 1.80	%		0.65% - 1.49	%
	Expected dividend yield		—			—
	Expected term (contractual term)	3.2 – 3.4 years			4.2 – 4.4 years
	Expected volatility		120% - 122	%		121% - 122	%
Outstanding Warrants	'
	At June 30, 2014, the Company had the following outstanding Warrants:
		Number of			Exercise Price			Date of Expiration
		Shares
		Exercisable
	Outstanding Warrants accounted for as derivative Warrant liability:
	Granted to debt holder		400,000		$	20		8/31/17
	Granted to debt holder		100,000			21.3		9/20/17
	Granted to debt holder		50,000			22.7		10/17/17
	Granted to debt holder		150,000			21.1		11/6/17
	Total outstanding Warrants accounted for as derivative Warrant liability		700,000
	Weighted average exercise price				$	20.61
	Weighted average time to expiration							3.48 years
	Outstanding Warrants accounted for as equity:
	Granted to investors in private placement		76,800		$	20		11/13/14
	Granted to placement agent in private placement		25,695			15		11/13/14
	Granted to investors in private placement		6,300			20		12/3/14
	Granted to investors in private placement		34,147			22.5		2/9/15
	Granted to placement agents in private placement		2,853			22.5		2/9/15
	Granted to investor in private placement		638			22.5		3/18/15
	Granted to investors in private placement		95,960			30		12/7/14
	Granted to investors in private placement of common and preferred stock		181,818			2.75		12/10/18
	Granted to investors in private placement of common stock………………………..		18,182			2.75		2/20/19
	Granted to investors in private placement of common stock		69,092			2.75		6/17/19
	Total outstanding Warrants accounted for as equity		511,485
	Weighted average exercise price				$	12.73
	Weighted average time to expiration							2.00 years
	Totals for all Warrants outstanding:
	Total		1,211,485
	Weighted average exercise price				$	17.29
	Weighted average time to expiration							3.22 years
Warrant Activity	'
	A summary of Warrant activity for the six months ended June 30, 2014 is as follows:
					Weighted-
					Average
					Exercise
	Warrants	Shares			Price
	Outstanding Warrants at January 1, 2014		1,209,211		$	17.92
	Granted		87,274		$	2.75
	Exercised		—		$	—
	Forfeited or expired		(85,000	)	$	11.35
	Outstanding Warrants at June 30, 2014		1,211,485		$	17.29

ORGANIZATION_AND_BASIS_OF_PRES2

ORGANIZATION AND BASIS OF PRESENTATION (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Organization And Basis Of Presentation	'	'	'	'
Reverse stock split ratio	'1-for-10	'	'	'
Liquidity and Management's Plans	'	'	'	'
Cash	$4,105,954	$8,055,385	$11,608,289	$3,747,210
Working capital deficit	2,756,000	'	'	'
Accumulated deficit	119,506,000	'	'	'
Net cash proceeds from financing	2,400,000	'	'	'
Financing total amount	$5,000,000	'	'	'
Shares of stock issued in financing	872,728	'	'	'
Warrants issued in financing	87,274	'	'	'

CASH_AND_CASH_EQUIVALENTS_Deta

CASH AND CASH EQUIVALENTS (Details Narrative) (USD $)	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2013	Dec. 31, 2012
Cash And Cash Equivalents	'	'	'	'
Cash and cash equivalents	$4,105,954	$8,055,385	$11,608,289	$3,747,210
Letter of credit, landlord	52,488	'	'	'
Letter of credit, vendor	$250,000	'	'	'

INTANGIBLE_ASSETS_Details

INTANGIBLE ASSETS (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Cost	$9,980,000	'
Accumulated Amortization	355,000	'
Total	9,625,000	9,625,000
Research [Member]	'	'
Cost	355,000	'
Accumulated Amortization	355,000	'
Total	'	'
Patents [Member]	'	'
Cost	1,305,000	'
Accumulated Amortization	'	'
Total	1,305,000	1,305,000
Drug [Member]	'	'
Cost	1,500,000	'
Accumulated Amortization	'	'
Total	1,500,000	1,305,000
Pharmaceutical [Member]	'	'
Cost	6,820,000	'
Accumulated Amortization	'	'
Total	6,820,000	6,820,000
PatentedTechnologyMember	'	'
Cost	9,625,000	'
Accumulated Amortization	'	'
Total	9,625,000	'
Intangible Assets [Member]	'	'
Cost	9,625,000	'
Accumulated Amortization	'	'
Total	$9,625,000	$9,625,000

INTANGIBLE_ASSETS_Details_1

INTANGIBLE ASSETS (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2014
Estimated amortization expense	'
2014	'
2015	'
2016	1,480,800
2017	2,961,600
2018	$2,961,600

OPERATING_LEASE_COMMITMENTS_De

OPERATING LEASE COMMITMENTS (Details) (USD $)	Jun. 30, 2014
OPERATING LEASE COMMITMENTS	'
Year ended December 31, 2014	$324,000
Year ended December 31, 2015	648,000
Year ended December 31, 2016	664,000
Year ended December 31, 2017	471,000
Year ended December 31, 2018	'
Total	2,107,000
Franklin [Member]	'
OPERATING LEASE COMMITMENTS	'
Year ended December 31, 2014	230,000
Year ended December 31, 2015	457,000
Year ended December 31, 2016	468,000
Year ended December 31, 2017	389,000
Year ended December 31, 2018	'
Total	1,544,000
Philadelphia2 [Member]	'
OPERATING LEASE COMMITMENTS	'
Year ended December 31, 2014	94,000
Year ended December 31, 2015	191,000
Year ended December 31, 2016	196,000
Year ended December 31, 2017	82,000
Year ended December 31, 2018	'
Total	$563,000

OPERATING_LEASE_COMMITMENTS_De1

OPERATING LEASE COMMITMENTS (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Operating Lease Commitments	'	'	'	'
Facilities lease expense	$142,000	$99,000	$275,000	$389,000
Manfc Lab Office [Member]	'	'	'	'
Operating Lease Commitments	'	'	'	'
Leased space square footage	37,000	'	37,000	'
Philadelphia [Member]	'	'	'	'
Operating Lease Commitments	'	'	'	'
Leased space square footage	7,900	'	7,900	'
Right to early lease termination buy out value	$43,000	'	$43,000	'

CREDIT_FACILITY_WITH_PLATINUMM1

CREDIT FACILITY WITH PLATINUM-MONTAUR LIFE SCIENCES, LLC (Details Narrative) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014	Sep. 20, 2012	Sep. 14, 2012	Aug. 31, 2012
Notes to Financial Statements	'	'	'	'	'
Loan agreement initial credit facility	'	'	'	'	$20,000,000
Loan agreement Maximum Draw Amount	'	'	'	'	5,000,000
Principal interest rate per annum	'	'	'	'	10.00%
Cash and cash equivalent minimum requirements on credit facility	'	'	'	'	5,000,000
Commitment warrant value, shares	'	'	'	'	400,000
Fair value Commitment warrant, recorded as deferred financing costs	'	'	'	'	4,840,000
Commitment warrant exercise price	'	'	'	'	$20
Fair value Commitment warrant, current portion	'	'	'	'	968,004
Amortization of fair value Commitment warrant	242,000	484,000	'	'	'
Funds borrowed pursuant to the Credit Facility	'	'	'	'	1,000,000
Purchase warrant value per 1,000,000 borrowed amount, shares	'	'	'	'	100,000
Commitment Warrant exercise price maximimum	'	'	'	'	$40
Commitment Warrant exercise price minimum	'	'	'	'	$20
Commitment Warrant beneficial ownership maximum	'	'	'	'	49.90%
Commitment Warrant beneficial ownership minimum	'	'	'	'	99.90%
Loan agreement September Request	'	'	'	3,000,000	'
September Request warrant issued	'	'	300,000	'	'
Warrant exercise price September Request	'	'	'	$21.10	'
Warrant exercise price September Request, maximum	'	'	'	$22.70	'
Fair value September Request	'	'	'	3,455,000	'
Debt Discount	'	'	'	3,000,000	'
Interest Expense	'	'	'	455,000	'
Repayment of outstanding draws	'	3,113,366	'	'	'
Interest accrued	'	113,366	'	'	'
Non-cash interest expense	'	$2,879,166	'	'	'

DERIVATIVE_WARRANT_LIABILITY_D

DERIVATIVE WARRANT LIABILITY (Details) (USD $)	6 Months Ended
	Jun. 30, 2014		Jun. 30, 2013
DERIVATIVE WARRANT LIABILITY	'		'
Beginning balance	$1,119,155		$5,585,141
Total unrealized losses included in net loss	176,000		781,686
Total unrealized gains included in net loss	-709,000	[1]	-5,305,000
Total realized gains included in net loss	'	[1]	-152,668
Reclassification of derivative warrant liability to additional paid-in capital for derivative warrants exercised	'		'
Ending balance	$586,155		$909,155
[1]	Included in Gain (Loss) on Revaluation of Derivative Warrant Liability in the Consolidated Statement of Operations.

DERIVATIVE_WARRANT_LIABILITY_D1

DERIVATIVE WARRANT LIABILITY (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Dec. 31, 2013
Derivative Warrant Liability Details Narrative	'	'	'	'	'	'
Outstanding warrants	'	'	$1,209,211	'	$1,211,485	'
Derivative financial instruments	700,000	'	700,000	'	'	700,000
Fair value of derivative instruments on recurring basis	586,000	'	586,000	'	'	1,119,000
Gain/Loss on Revaluation of Derivative Warrant Liability	$533,000	$4,676,000	$393,000	$2,995,000	'	'

PREFERRED_STOCK_Details_Narrat

PREFERRED STOCK (Details Narrative)	Jun. 30, 2014	Dec. 31, 2013
Class of Stock [Line Items]	'	'
Authorized Preferred Stock	40,000,000	'
SeriesCPreferredStock [Member]	'	'
Class of Stock [Line Items]	'	'
Authorized Preferred Stock	10,000	10,000
Issued and outstanding	1,000	1,000
SeriesDPreferredStock [Member]	'	'
Class of Stock [Line Items]	'	'
Authorized Preferred Stock	3,600,000	3,600,000
Issued and outstanding	1,000,000	1,000,000
Series E Preferred Stock [Member]	'	'
Class of Stock [Line Items]	'	'
Authorized Preferred Stock	1,748,613	1,748,613

COMMON_STOCK_Details_Narrative

COMMON STOCK (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Common stock, shares authorized	150,000,000	'	150,000,000
Common stock, Shares outstanding	12,665,518	'	11,776,578
Share sale price	$2.75	'	'
Stock issued in exchange for services	2,636	7,450	'
Fair value of stock issued in exchange for services	$8,404	$89,970	'
January [Member]	'	'	'
Common Stock public offering	1,567,833	'	'
Shares sold pursuant to over-allotment	204,500	'	'
Share sale price	$7.50	'	'
Net proceeds from sale of shares in public offering	10,626,000	'	'
Total balance paid off	3,113,366	'	'
December 2013 [Member]	'	'	'
Common Stock public offering	1,818,182	'	'
Shares purchased	69,569	'	'
Share sale price	$2.75	'	'
Series E Preferred Stock purchased	1,748,613	'	'
Platinum Securities Purchase Agreement warrants	872,728	'	'
Gross proceeds	2,400,000	'	'
Issuance costs	50,000	'	'
Stock issuance costs to paid in capital	174,396	'	'
Fair value of stock issued in exchange for services	$371,140	'	'

EQUITY_COMPENSATION_PLANS_Deta

EQUITY COMPENSATION PLANS (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Shares Available For Issuance	'
Add back options cancelled before exercise	-398,021
Outstanding Options and Restricted Stock	'
Options exercised	'
Ending Balance	61,485
Plan2003Member	'
Shares Available For Issuance	'
Total reserved for stock options and restricted stock	160,000
Net restricted stock issued net of cancellations	-10,000
Stock options granted	-154,449
Add back options cancelled before exercise	79,849
Options cancelled by plan vote	-75,400
Remaining shares available for future grants	'
Outstanding Options and Restricted Stock	'
Total granted	154,449
Options cancelled	-79,849
Options exercised	-35,600
Net shares outstanding before restricted stock	39,000
Net restricted stock issued net of cancellations	10,000
Ending Balance	49,000
Plan2008Member	'
Shares Available For Issuance	'
Total reserved for stock options and restricted stock	10,000,000
Net restricted stock issued net of cancellations	-136,258
Stock options granted	-1,624,716
Add back options cancelled before exercise	488,355
Options cancelled by plan vote	'
Remaining shares available for future grants	8,727,381
Outstanding Options and Restricted Stock	'
Total granted	1,624,716
Options cancelled	-488,355
Options exercised	-13,000
Net shares outstanding before restricted stock	1,123,361
Net restricted stock issued net of cancellations	136,258
Ending Balance	1,259,619
Not Pursuant to a Plan [Member]	'
Outstanding Options and Restricted Stock	'
Total granted	310,000
Options cancelled	-188,333
Options exercised	-66,667
Net shares outstanding before restricted stock	55,000
Net restricted stock issued net of cancellations	6,485

EQUITY_COMPENSATION_PLANS_Deta1

EQUITY COMPENSATION PLANS (Details Narrative)	Jun. 30, 2014	Dec. 31, 2013
Stock Options And Restricted Stock	'	'
Maximum authorized shares	150,000,000	150,000,000
EqPlan 2003 [Member]	'	'
Stock Options And Restricted Stock	'	'
Restricted shares of Common Stock issued	10,000	'
Options to purchase an aggregate of shares	39,000	'
EqPlan 2008 [Member]	'	'
Stock Options And Restricted Stock	'	'
Restricted shares of Common Stock issued	136,258	'
Options to purchase an aggregate of shares	1,123,361	'
Maximum authorized shares	10,000,000	'
Shares Future grants	8,727,381	'

STOCK_OPTIONS_Details_1

STOCK OPTIONS (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
STOCK OPTIONS AND RESTRICTED STOCK	'	'
Risk-free interest rate minimum	0.11%	0.13%
Risk-free interest rate maximum	2.08%	1.41%
Expected dividend yield	'	'
Expected term, minimum	'1 year	'1 year
Expected term, maximum	'6 years	'6 years 6 months
Forfeiture rate (excluding fully vested stock options) minimum	15.00%	15.00%
Forfeiture rate (excluding fully vested stock options) maximum	15.00%	15.00%
Expected volatility	129.00%	129.00%
Expected volatility	141.00%	141.00%

STOCK_OPTIONS_Details_2

STOCK OPTIONS (Details 2) (USD $)	6 Months Ended
	Jun. 30, 2014
Shares	'
Beginning Balance	1,455,432
Granted	159,950
Exercised	'
Forfeited or expired	-398,021
Ending Balance	1,217,361
Exercisable at March 31, 2014	277,674
Weighted-Average Exercise Price	'
Beginning Balance	$4.90
Granted	$3.25
Exercised	'
Forfeited or expired	$4.43
Ending Balance	$4.84
Exercisable at March 31, 2014	$9.60
Weighted-Average Remaining Contractual Term	'
Beginning Balance	'8 years 8 months 14 days
Ending Balance	'6 years 4 months 11 days
Aggregate Intrinsic Value	'
Beginning Balance	'
Ending Balance	'

STOCK_OPTIONS_Details_Narrativ

STOCK OPTIONS (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
Stock Options And Restricted Stock	'	'	'
Weighted-average grant-date fair value of stock options granted	$1.85	'	$3.25
Total unrecognized compensation expense	$1,428,000	'	$1,428,000
Additional paid-in capital	137,000	254,000	'
Non-cash compensation expense	$137,000	$254,000	'

RESTRICTED_STOCK_Details

RESTRICTED STOCK (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Shares	'
Nonvested at January 1, 2014	201,655
Granted	29,686
Vested	-55,301
Forfeited	-23,297
Nonvested at June 30, 2014	152,743
Weighted- Average Grant-DateFair Value	'
Nonvested at January 1, 2014	$10.66
Granted	$3.19
Vested	$7.44
Forfeited	$6.03
Nonvested at June 30, 2014	$11.08

RESTRICTED_STOCK_Details_Narra

RESTRICTED STOCK (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
Stock Options And Restricted Stock	'	'	'
Non-cash compensation expense	$108,000	$152,000	'
Aggregate restricted shares of Common Stock pursuant to 2008 plan	'	'	12,550
Shares of non-vested restricted stock	'	'	152,743
Total unrecognized compensation expense	$550,000	'	$550,000
FDA Approval [Member]	'	'	'
Stock Options And Restricted Stock	'	'	'
Restricted stock to vest upon FDA approval	'	'	51,785
Yearly [Member]	'	'	'
Stock Options And Restricted Stock	'	'	'
Restricted stock to vest upon FDA approval	'	'	100,958

WARRANTS_Details

WARRANTS (Details)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Warrants Details	'	'
Risk-free interest rate	1.44%	0.65%
Risk-free interest rate, maximum	1.80%	1.49%
Expected dividend yield	'	'
Expected term (contractual term)	'3 years 2 months 15 days	'4 years 2 months 15 days
Expected term (contractual term), maximum	'3 years 4 months 28 days	'4 years 4 months 28 days
Expected volatility	120.00%	121.00%
Expected volatility, maximum	122.00%	122.00%

WARRANTS_Details_1

WARRANTS (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2014
Warrants	'
Total outstanding warrants accounted for as derivative warrant liability	700,000
Weighted average exercise price	$20.61
Weighted average time to expiration in years	'3 years 5 months 23 days
Exp 8/31/2017 Warrant [Member]	'
Warrants	'
Number of Shares Exercisable	400,000
Exercise Price	$20
Exp 9/20/2017 Warrant [Member]	'
Warrants	'
Number of Shares Exercisable	100,000
Exercise Price	$21.30
Investors1 [Member]	'
Warrants	'
Number of Shares Exercisable	50,000
Exercise Price	$22.70
Exp 11/6/2017 Warrant [Member]	'
Warrants	'
Number of Shares Exercisable	150,000
Exercise Price	$21.10

WARRANTS_Details_2

WARRANTS (Details 2) (USD $)	Jun. 30, 2014
Warrants	'
Total Warrants Outstanding	1,211,485
Total Weighted average exercise price	$17.29
Investors1 [Member]	'
Warrants	'
Number of Shares Exercisable	76,800
Exercise Price	$20
Exp 11/6/2017 Warrant [Member]	'
Warrants	'
Number of Shares Exercisable	25,695
Exercise Price	$15
Investors3 [Member]	'
Warrants	'
Number of Shares Exercisable	6,300
Exercise Price	$20
Investors4 [Member]	'
Warrants	'
Number of Shares Exercisable	34,147
Exercise Price	$22.50
Investors5 [Member]	'
Warrants	'
Number of Shares Exercisable	2,853
Exercise Price	$22.50
PlacementAgents1 [Member]	'
Warrants	'
Number of Shares Exercisable	638
Exercise Price	$22.50
Investors6 [Member]	'
Warrants	'
Number of Shares Exercisable	95,960
Exercise Price	$30
Investors19 [Member]	'
Warrants	'
Number of Shares Exercisable	181,818
Exercise Price	$2.75
PreferredStock1 [Member]	'
Warrants	'
Number of Shares Exercisable	18,182
Exercise Price	$2.75
PreferredStock3 [Member]	'
Warrants	'
Number of Shares Exercisable	69,092
Exercise Price	$2.75
TotaloutstandingwarrantsaccountedforasequityMember	'
Warrants	'
Number of Shares Exercisable	511,485
WeightedaverageexercisepriceMember	'
Warrants	'
Exercise Price	$12.73

WARRANTS_Details_3

WARRANTS (Details 3) (USD $)	6 Months Ended
	Jun. 30, 2014
Shares	'
Beginning Balance	1,209,211
Granted	87,274
Exercised	'
Forfeited or expired	-85,000
Ending Balance	1,211,485
Weighted-Average Exercise Price	'
Beginning Balance	$17.92
Granted	2.75
Exercised	'
Forfeited or expired	11.35
Ending Balance	$17.29

WARRANTS_Details_Narrative

WARRANTS (Details Narrative)	3 Months Ended	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2014
Warrants Details Narrative	'	'
Warrants issued in connection with private placement	18,182	69,092

LICENSING_AND_OTHER_REVENUE_De

LICENSING AND OTHER REVENUE (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Licensing and Other Revenue	'	'	'	'	'
Nonrefundable license revenue	$19,107	$22,557	$38,214	$45,114	'
Deferred revenue recognized over next twelve months	76,428	'	76,428	'	76,428
Deferred revenue to be recognized after next twelve months	38,214	'	38,214	'	76,428
Total MTIA investment	'	'	5,000,000	'	'
Handok [Member]	'	'	'	'	'
Licensing and Other Revenue	'	'	'	'	'
Minimum licensing term	'	'	'10 years	'	'
Nonrefundable license revenue	'	'	38,000	45,000	'
Licensing fee relating to Handok	'	'	500,000	'	'
Deferred revenue recognized over next twelve months	76,000	'	76,000	'	'
Deferred revenue to be recognized after next twelve months	38,000	'	38,000	'	'
Net cash proceeds from MTIA Common Stock financing	'	'	2,400,000	'	'
Total MTIA investment	'	'	5,000,000	'	'
Additional proceeds from MTIA financing	'	'	$400,000	'	'