Adynxx (ADYX) 10-Q 12 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 11, 2013
Document And Entity Information	'	'
Entity Registrant Name	'Alliqua, Inc.	'
Entity Central Index Key	'0001054274	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
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 Common Stock, Shares Outstanding	'	310,993,023
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Consolidated_Balance_Sheets_Un

Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Cash and Cash Equivalents	$420,157	$260,357
Accounts Receivable, net	144,539	108,866
Due from Employees	7,808	7,808
Inventories	305,699	319,326
Prepaid Expenses	77,234	185,839
Total Current Assets	955,437	882,196
Property and Equipment, net	1,685,928	1,915,179
Intangibles, net	10,515,025	10,329,167
Goodwill	425,969	425,969
Other Assets	174,640	174,640
Total Assets	13,756,999	13,727,151
Liabilities and Stockholders' Equity	'	'
Accounts Payable	507,049	613,141
Accrued Expenses	535,567	249,728
Payable for distribution rights	400,000	0
Deferred Income	39,000	39,000
Deferred Rent Payable	1,338	0
Derivative Liability	849,472	605,737
Total Current Liabilities	2,332,426	1,507,606
Long-term Liabilities	'	'
Deferred Rent Payable	28,718	24,891
Deferred Tax Obligation	53,000	44,000
Total Liabilities	2,414,144	1,576,497
Stockholders' Equity	'	'
Preferred stock, par value $0.001; 1,000,000 shares authorized, no shares issued and outstanding	0	0
Common stock, par value $0.001 per share; 2,000,000,000 shares authorized; 310,850,165 shares issued and outstanding at September 30, 2013 and 259,202,434 shares issued and outstanding at December 31, 2012	310,850	259,204
Additional paid-in capital	40,681,626	34,531,847
Shares to be issued	0	0
Subscription receivable	0	-20,000
Accumulated deficit	-29,649,621	-22,620,397
Total Stockholders' Equity	11,342,855	12,150,654
Total Liabilities and Stockholders' Equity	$13,756,999	$13,727,151

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Stockholders equity:	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, authorized shares	1,000,000	1,000,000
Preferred stock, issued shares	0	0
Preferred stock, outstanding shares	0	0
Common stock, par value	$0.00	$0.00
Common stock, authorized shares	2,000,000,000	2,000,000,000
Common stock, issued shares	310,850,165	259,202,434
Common stock, outstanding shares	310,850,165	259,202,434

Consolidated_Statements_of_Ope

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements Of Operations	'	'	'	'
Revenue, net	$437,985	$373,790	$1,328,911	$828,260
Cost of Sales	586,719	451,076	1,544,569	1,347,693
Gross Loss	-148,734	-77,286	-215,658	-519,433
Operating Expenses	'	'	'	'
Selling, General and Administrative, (inclusive of stock based compensation of $496,564 and $2,898,132 for the three and nine month periods ended September 30, 2013, $278,904 and 972,453 for the three and nine months ended September 30, 2012 - see Note 8 )	2,083,426	767,614	6,494,654	2,335,539
Research and Product Development	33,602	30,396	63,204	193,102
Total Operating Expenses	2,117,028	798,010	6,557,858	2,528,641
Loss from operations	-2,265,762	-875,296	-6,773,516	-3,048,074
Other Income (Expenses)	'	'	'	'
Interest Expense	-292	-1,103	-3,048	-2,538
Other Income	0	4,888	0	4,888
Interest Income	31	73	75	660
Change in Value of Warrant Liability	32,978	0	-243,735	0
Total Other Income (Expense)	32,717	3,858	-246,708	3,010
Income Tax Provision	3,000	3,000	9,000	9,000
Net Loss	($2,236,045)	($874,438)	($7,029,224)	($3,054,064)
Basic and Fully Diluted Loss per Share	($0.01)	$0	($0.02)	($0.01)
Weighted-Average Shares Outstanding - basic and diluted	310,850,165	237,346,999	282,290,443	230,247,429

Consolidated_Statements_of_Sto

Consolidated Statements of Stockholders' Equity (Unaudited) (USD $)	Common Stock	Additional Paid-In Capital	Subscription Receivable	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2012	$259,204	$34,531,847	($20,000)	($22,620,397)	$12,150,654
Beginning Balance, Shares at Dec. 31, 2012	259,202,434	'	'	'	'
Issuance of common stock for cash (net of issuance costs of $186,132), Amount	42,683	3,228,610	'	'	3,271,293
Issuance of common stock for cash (net of issuance costs of $186,132), Shares	42,684,262	'	'	'	'
Issuance of common stock for services, Amount	819	56,493	'	'	57,312
Issuance of common stock for services, Shares	818,750	'	'	'	'
Issuance of common stock to related party for services, June 2013, Amount	8,144	561,986	'	'	570,130
Issuance of common stock to related party for services, June 2013, Shares	8,144,719	'	'	'	'
Receipt of subscription receivable	'	'	20,000	'	20,000
Share based compensation	'	2,270,690	'	'	2,270,690
Fair value of rent provided by related party	'	32,000	'	'	32,000
Net loss	'	'	'	-7,029,224	-7,029,224
Ending Balance, Amount at Sep. 30, 2013	$310,850	$40,681,626	'	($29,649,621)	$11,342,855
Ending Balance, Shares at Sep. 30, 2013	310,850,165	'	'	'	'

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash Flows From Operating Activities	'	'
Net Loss	($7,029,224)	($3,054,064)
Depreciation and Amortization	492,939	484,800
Reserve for Obsolete Inventory	-4,363	24,540
Share Based Compensation	2,270,690	687,953
Stock Issued for Services Rendered	627,442	220,000
Stock Issued for Rent	0	64,500
Change in Value of Warrant Liability	243,735	0
Fair Value of Rent Provided by related party	32,000	0
Deferred Rent	5,165	3,056
Changes in Operating Assets and Liabilities:	'	'
Accounts Receivable	-35,673	-35,462
Inventory	17,990	-37,801
Deposits and Prepaid Expenses	108,605	-5,979
Accounts Payable and Accrued Expenses	179,747	283,968
Deferred Tax Liability	9,000	9,000
Deferred Revenue	0	0
Net Cash Used in Operating Activities	-3,081,947	-1,355,489
Cash Flows from investing activities	'	'
Purchase of Distribution Rights	-50,000	0
Proceeds (Purchases) of Property and Equipment	454	-84,366
Net Cash Provided (Used) by Investing Activities	-49,546	-84,366
Cash Flows From Financing Activities	'	'
Proceeds From Sale of Common Shares	3,291,293	1,277,025
Net Cash Provided by Financing Activities	3,291,293	1,277,025
Net Increase (Decrease) in Cash and Cash Equivalents	159,800	-162,830
Cash and Cash Equivalents - Beginning of year	260,357	260,111
Cash and Cash Equivalents - End of year	420,157	97,281
Supplemental Disclosure of Cash Flows Information	'	'
Cash paid during the period for: interest	3,048	2,538
Non-cash investing and financing activities:	'	'
Common stock issued to related party for rent	0	100,000
Acquisition of Distribution Rights:	'	'
Cost of Distribution Rights	450,000	0
Liability Incurred	-400,000	0
Cash Paid	$50,000	$0

NOTE_1_ORGANIZATION

NOTE 1 - ORGANIZATION	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 1 - ORGANIZATION	'
	Alliqua, Inc., formerly Hepalife Technologies, Inc., (“Alliqua” or the "Company"), is a Florida corporation formed on October 21, 1997. On December 20, 2010, the Company changed its name to Alliqua, Inc.
	AquaMed Technologies, Inc. (“AquaMed”) is a Delaware corporation formed on January 13, 2009. On May 11, 2010, Alliqua consummated a merger acquiring all of the issued and outstanding common and preferred shares of AquaMed. As a result of the transaction, the former owners of AquaMed became stockholders of Alliqua.
	The Company is a biomedical company that does business through the following wholly owned subsidiaries:
		●	AquaMed, which was incorporated in Delaware on January 13, 2009. Through AquaMed, the Company develops, manufactures and markets high water content, electron beam cross-linked, aqueous polymerhydrogels (“gels”) used for wound care, medical diagnostics, transdermal drug delivery and cosmetics.
		●	Alliqua Biomedical, Inc. (“Alliqua Biomedical”), which was incorporated in Delaware on October 27, 2010. Through Alliqua Biomedical, the Company focuses on the development of proprietary products for wound care dressings and a core transdermal delivery technology platform designed to deliver drugs and other beneficial ingredients through the skin. The Company intends to market its own branded lines of prescription and over-the-counter (“OTC”) wound care products, as well as to supply products to developers and distributors of prescription and OTC wound healing products for redistribution to healthcare professionals and retailers through Alliqua Biomedical.
		●	HepaLifeBiosystems, Inc. (“HepaLife”), which was incorporated in Nevada on April 17, 2007. Through HepaLife, the Company holds a technology called HepaMate™. Since May 2010, the Company has not allocated resources to HepaMate™ other than for the maintenance of patents and intellectual property related to the technology and instead has focused its resources on products being developed by AquaMed and Alliqua Biomedical. The Company continues, however, to explore various options to best realize value from its HepaMate™ technology, including selling it or partnering with another company to further develop it. If the Company is unsuccessful in its efforts to realize value from our HepaMate™ technology, the recorded value of the related intangibles will be subject to significant impairment.

NOTE_2_BASIS_OF_PRESENTATION

NOTE 2 - BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 2 - BASIS OF PRESENTATION	'
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial reporting and the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP. In the opinion of management, all adjustments (consisting of normal accruals) considered necessary for a fair presentation have been included. The Company has evaluated subsequent events through the issuance date of this Form 10-Q. Operating results for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K/A for the year ended December 31, 2012, filed with the Securities and Exchange Commission on May 16, 2013.

NOTE_3_LIQUIDITY

NOTE 3 - LIQUIDITY	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 3 - LIQUIDITY	'
	The Company has experienced negative operating cash flows since inception and has funded its operations primarily from sales of common stock and other securities. The Company’s cash requirements have historically been for product development, clinical trials, marketing and sales activities, finance and administrative costs, capital expenditures and overall working capital.
	During the nine months ended September 30, 2013, the Company sold 42,684,262 shares of common stock for total net proceeds of $3,271,293, as detailed in Note 8. Subsequent to September 30, 2013, the Company received gross proceeds of $1,000,000 through the sale of 250,000 shares of Series A Preferred Stock, as detailed in Note13.
	The Company believes that its need for additional equity capital will continue and it intends to pursue additional financing from existing relationships (such as shareholders, investors and lenders) and from new investors to support its expansion, research and development programs and operations. The Company may pursue sources of additional capital through various means, including strategic alliances, debt financing, or equity financing. The Company intends to engage investment banking firms to assist it with some of these efforts.
	Future financings are likely to be dilutive to existing stockholders and the terms of securities issued may be more favorable for new investors. Newly issued securities may include preferences, superior voting rights, and the issuance of warrants or other derivative securities, which may have additional dilutive effects. Further, the Company may incur substantial costs in pursuing future capital and/or financing, including investment banking fees, legal fees, accounting fees, securities law compliance fees, printing and distribution expenses and other costs. The Company may also be required to recognize non-cash expenses in connection with certain securities it may issue, such as convertible notes and warrants, which may adversely impact the Company’s financial condition.
	If the Company is unable to raise additional capital or encounters unforeseen circumstances that place constraints on its capital resources, it will be required to take more severe measures to conserve liquidity, which could include, but are not necessarily limited to, eliminating non-essential positions, eliminating the Company’s clinical studies, and ceasing all marketing efforts. The Company would have to curtail business development activities and suspend the pursuit of the Company’s business plan. There can be no assurance that the Company will be successful in improving revenues, reducing expenses and/or securing additional capital in sufficient amounts and on terms favorable to the Company, if needed.
	These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The Company’s condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amount and classification of liabilities that might be necessary should it be unable to continue as a going concern.

NOTE_4_SUMMARY_OF_SIGNIFICANT_

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	'
	Intangible Assets
	The Company accounts for intangible assets in accordance with Accounting Standards Codification (“ASC”) Topic 350 “Intangibles - Goodwill and Other”. ASC Topic 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. There were no events or circumstances that indicated an impairment may exist for the nine months ended September 30, 2013.
	Goodwill
	The Company reviews its goodwill for impairment annually, or more frequently, if facts and circumstances warrant a review. Goodwill is assigned on the date of acquisition. The Company continually monitors events and changes in circumstances that could indicate that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount. When such events or changes in circumstances occur, the Company will assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If future undiscounted cash flows are less than the carrying amount of these assets, the Company will recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. There were no events or circumstances that indicated an impairmentmay exist for the nine month period ended September 30, 2013.
	Acquired In-Process Research and Development (“IPR&D”)
	IPR&D represents the fair value assigned to an incomplete research project, comprised of the HepaMatetechnology that the Company acquired through the 2010 merger with AquaMed which, at the time of acquisition, had not reached technological feasibility. The amount is capitalized and is accounted for as an indefinite-lived intangible asset, subject to impairment testing until completion or abandonment of the project. Upon successful completion of the project, a determination will be made as to the then useful life of the intangible asset, generally determined by the period in which substantially all of the cash flows are expected to be generated, and begin amortization. The Company tests IPR&D for impairment at least annually or more frequently if impairment indicators exist after performing a qualitative analysis. Management has multiple criteria that it considers when performing the qualitative analysis. The results of this review are then weighed and prioritized. If the totality of the relevant events and circumstances indicate that it is not more likely than not that the fair value of the IPR&D is less than its carrying amount, the first and second steps of the impairment test are not necessary.
	The Company is actively seeking to recognize value from the IPR&D. There were no events or circumstances that indicated an impairment may exist for the nine month period ended September 30, 2013.
	Impairment of long-lived assets subject to amortization
	The Company amortizes intangible assets with finite lives over their estimated useful lives and reviews them for impairment annually or whenever an impairment indicator exists. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company will assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If future undiscounted cash flows are less than the carrying amount of these assets, the Company will recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. There were no events or circumstances that indicated an impairment existed for the nine month period ended September 30, 2013.
	Research and Development Expenses
	Research and development expenses represent costs incurred to develop technology and new line of proprietary products. Research and development expenses are charged to operations as they are incurred, including internal costs, costs paid to sponsoring organizations, and contract services for any third party laboratory work. Research and development expenses are tracked by project.
	Use of Estimates in the Financial Statements
	The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates and assumptions include valuing equity securities and derivative financial instruments issued in financing transactions, accounts receivable reserves, inventory reserves, deferred taxes and related valuation allowances, and the fair values of long lived assets, intangibles and goodwill. The Company re-evaluates its accounting estimates quarterly and records adjustments, when necessary.
	Income Taxes
	The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and income tax bases of the underlying assets and liabilities. The Company establishes a valuation allowance for deferred tax assets when it determines that it is more likely than not that the benefits of deferred tax assets will not be realized in future periods. For the nine months ended September 30, 2013, the Company recorded a deferred income tax provision caused principally by current income tax deductions related to the amortization of goodwill over a 15 year life for tax purposes that have not been recognized for financial reporting purposes. Management has performed an evaluation and concluded that there were no material uncertain tax positions requiring recognition in the Company’s condensed consolidated financial statements as of September 30, 2013.
	Common Stock Purchase Warrants
	The Company assesses classification of common stock purchase warrants at each reporting date to determine whether a change in classification between assets and liabilities or equity is required.  The Company’s free standing derivatives consist of warrants to purchase common stock that were issued pursuant to a Securities Purchase Agreement on November 8, 2012.  The Company evaluated the common stock purchase warrants to assess their proper classification in the condensed consolidated balance sheet and determined that the common stock purchase warrants contain exercise reset provisions.  Accordingly, these instruments have been classified as warrant liabilities in the accompanying condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012.  The Company re-measures warrant liabilities at each reporting date, with changes in fair value recognized in earnings for each reporting period.
	Stock-Based Compensation
	The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally re-measured on interim financial reporting dates and vesting dates until the service period is complete. The fair value amount is then recognized over the period services are required to be provided in exchange for the award, usually the vesting period. The Company recognizes stock-based compensation expense on a graded-vesting basis over the requisite service period for each separately vesting tranche of each award. Stock-based compensation expense is reflected within operating expenses in the condensed consolidated statements of operations. The Company recognizes stock-based compensation expense for awards with performance conditions if and when the Company concludes that it is probable that the performance condition will be achieved. The Company reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts stock-based compensation expense based on its probability assessment.
	Fair Value of Financial Instruments
	The carrying amounts reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable and accrued expenses approximate fair value based on the short-term maturity of these instruments.
	Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date. It focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows:
	Level 1: Observable prices in active markets for identical assets and liabilities.
	Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities.
	Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.
	Net Loss Per Common Share
	Basic net loss per common share is computed based on the weighted average number of shares of common stock outstanding during the periods presented. Common stock equivalents, consisting of warrants, stock options and non-vested restricted stock units, were not included in the calculation of the diluted loss per share because their inclusion would have been anti-dilutive.
	The total common shares issuable upon the exercise of stock options, warrants and non-vested restricted stock units are as follows:
		September 30,
		2013		2012
	Stock Options		168,122,603		57,170,000
	Warrants		88,913,719		27,234,000
	Non-Vested Restricted Stock Units		3,095,469		-
	Total		260,131,791		84,404,000

NOTE_5_INVENTORIES

NOTE 5 - INVENTORIES	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 5 - INVENTORIES	'
	Inventories consist of the following:	As of
		September 30,			December 31,
		2013			2012
	Raw materials	$	190,191		$	209,820
	Work in process		24,957			25,119
	Finished goods		103,838			102,037
	Less: Inventory reserve		(13,287	)		-17,650
	Total	$	305,699		$	319,326

NOTE_6_TECHNOLOGY_AND_CUSTOMER

NOTE 6 - TECHNOLOGY AND CUSTOMER RELATIONSHIPS	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 6 - TECHNOLOGY AND CUSTOMER RELATIONSHIPS	'
	Technology and customer relationships consist of the following:
		Estimated		Cost		Accumulated Amortization			Net
		Useful Lives
	In process research and development		-	$	8,100,000	$	-		$	8,100,000
	Technology	10 years			3,000,000		(1,400,000	)		1,600,000
	Customer relationships	12 years			600,000		(233,333	)		366,667
	Distribution rights and related customer information. (See Note 7.)	5.27 years			450,000		(1,642	)		448,358
	Total			$	12,150,000	$	(1,634,975	)	$	10,515,025
	The Company recorded amortization expense related to the acquired amortizable intangibles of $89,142 and $264,142 for the three and nine months ended September 30, 2013, respectively, as compared to $87,500 and $262,500 for the same periods in 2012, respectively.  The weighted average remaining term of technology is 5.35 years, of customer relationships is 7.35 years and of distribution rights is 5.25 years. IPR&D technology represents HepaMate technology that currently has no commercial use. The value assigned to this technology will not be subject to amortization until such time as the technology is placed in service. IPR&D assets are evaluated for impairment annually or more frequently if events or changes in circumstances indicate that the asset might be impaired. There were no circumstances that indicated an impairment may exist for the nine month period ended September 30, 2013.

NOTE_7_COMMITMENTS_AND_CONTING

NOTE 7 - COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 7 - COMMITMENTS AND CONTINGENCIES	'
	Executive Employment Agreements
	On May 16, 2012, the Company entered into a three year executive employee agreement with its former president and a current board member retroactive to January 1, 2012. The agreement provides for an annual salary of $200,000 in 2012, $225,000 in 2013 and $250,000 in 2014, payable in a combination of cash and shares of common stock. An option to purchase 5,500,000 shares of common stock, at an exercise price of $.20 per share, was granted and will vest one third each year on the first, second and third anniversary of the date of grant and will have a term of ten years. In addition, stock options to purchase 3,000,000 shares of common stock previously awarded were accelerated to vest and become exercisable on the date of execution of the employment agreement. On November 27, 2012, the executive resigned from his position as president, but remained a member of the board. On June 28, 2013, the Company entered into a separation and general release agreement with this executive, pursuant to which the employment agreement was terminated effective as of December 31, 2012; non-competition and non-solicitation obligations under the employment agreement remain.  All unvested options were immediately vested in full and were expensed during the period. The Company also entered into a consulting agreement on June 28, 2013, retroactively effective to January 1, 2013, this former executive will provide consulting services in exchange for (i) a one-time grant of 8,144,719 shares of common stock, and (ii) monthly payments of $2,500 from June 2013 through June 2014. The value of the shares issued were $570,130 and are included in stock-based compensation (refer to Note 9).
	On May 31, 2012, the Company entered into a three year executive employee agreement with its former executive chairman and a current board member retroactive to January 1, 2012. The agreement provides for an annual salary of $200,000 in 2012, $225,000 in 2013 and $250,000 in 2014, payable in a combination of cash and shares of common stock. An option to purchase 5,500,000 shares of common stock, at an exercise price of $.20 per share, was granted and will vest one third each year on the first, second and third anniversary of the date of grant and will have a term of ten years. In addition, stock options to purchase 3,000,000 shares of common stock previously awarded were accelerated to vest and become exercisable on the date of execution of the employment agreement. On November 27, 2012, the executive resigned from his position as executive chairman, but remained a member of the board. On November 11, 2013, the Company entered into a separation and general release agreement with this executive, pursuant to which the employment agreement was terminated effective as of December 31, 2012; non-competition and non-solicitation obligations under the employment agreement remain.  All unvested options were immediately vested in full and will be expensed during the fourth quarter of 2013. The Company also entered into a consulting agreement on November 11, 2013, retroactively effective to January 1, 2013, this former executive will provide consulting services in exchange for (i) a one-time grant of 8,144,719 shares of common stock, and (ii) monthly payments of $2,500 from January 2013 through March 2014.
	On February 5, 2013, the Company entered into an employment agreement with its chief executive officer. The employment agreement has an initial term of three years and will be automatically renewed for an additional one-year term unless terminated by either party upon written notice provided not less than four months before the end of the initial term. Under the employment agreement, the executive is entitled to an annual salary of $350,000, which may be increased, but not decreased, at the board’s discretion. He is also eligible to receive an annual bonus of up to 100% of base salary, provided that he is employed with the Company on December 31 of the year to which the bonus relates. The amount of the annual bonus, if any, will be determined based upon the achievement of certain performance criteria. In addition, the Company issued to the executive 12,216,195 nonqualified stock options to purchase the equivalent of three percent of the Company’s total outstanding common stock: (determined on a fully-diluted basis as of February 4, 2013), with the following terms (A) an exercise price equal the fair market value of a share of common stock on the date of grant; (B) immediate vesting; and (C) a term of 10 years.
	On September 3, 2013, the Company entered into an employment agreement with its chief financial officer. Under the employment agreement, the executive is entitled to an annual salary of $240,000.  He is also eligible to receive an annual bonus of up to 60% of base salary based on the achievement of mutually agreed upon objectives.  Additionally the agreement provides for medical, dental, 401(k), group life and long-term disability benefits. and a monthly stipend of $700 to cover auto expenses.The Company also granted the executive nonqualified stock options to purchase 8,100,000 shares of common stock as follows: 2,700,000 options at an exercise price of $0.10 vested immediately, 2,700,000 options at an exercise price of $0.15 will vest upon the one year anniversary of employment and 2,700,000 options at an exercise price of $0.20 will vest upon the two year anniversary of employment. The options have a term of ten years.
	Concurrently with the appointment of the new chief financial officer, the former chief financial officer, who also served as secretary and treasurer of the Company, resigned.  He will remain with the Company through the end of 2013 as vice president of operations to assist with the transition, in accordance with a Transition Agreement and Release dated September 3, 2013. The Company granted an award of nonqualified stock options to purchase 5,000,000 shares of common stock at an exercise price of $0.10, which vested immediately upon the execution of a release on such date.  The options have a term of three years. In addition, options held  under the following grants shall remain outstanding and exercisable: (i) incentive stock option granted December 9, 2010 with respect to 1,000,000 shares of the Company’s common stock granted pursuant to the HepaLife Technologies, Inc. 2001 Incentive Stock Option Plan; (ii)  nonqualified stock option agreement dated May 12, 2012 with respect to 1,000,000 shares of the Company’s common stock granted pursuant to the Alliqua, Inc. 2011 Long-Term Incentive Plan (the “2011 Plan”); and (iii)  nonqualified stock option granted November 27, 2012 with respect to 500,000 shares of the Company’s common stock granted pursuant to the 2011 Plan.  The Company has also agreed to pay him a monthly stipend of $600 per month during 2014.
	As of September 30, 2013, $110,000 of accrued compensation was included in accrued expense. Of this amount, $100,000 is attributable to the above referenced executive employment agreements with the Company’s former chief executive officer and former president and $10,000 is attributable to salaries of employees.
	Consulting Agreements
	The Company currently has various consulting agreements for management consulting, marketing, public relations, investor relations and research and development. Some agreements are based on fixed fee arrangements and others on specified hourly rates.
	The total fees included in operating expenses were $354,936 and $1,712,929 for the three and nine months ended September 30, 2013, respectively, as compared to $75,865 and $196,455 for the same periods in 2012, respectively.
	Cooperative and License Agreements
	USDA, ARS CRADA. In November 2002, the Company entered into a Cooperative Research and Development Agreement (“CRADA”) with the U.S. Department of Agriculture (“USDA”), Agricultural Research Service (“ARS”) pertaining to the continued development and use of patented liver cell lines in artificial liver devices and in-vitro toxicological testing platforms. This agreement was amended several times, with a final agreement termination date of November 2008.
	USDA, ARS License. On November 20, 2007, the Company exercised its license right under the CRADA by entering into an exclusive license agreement with the USDA, ARS for existing and future patents related to the PICM-19 hepatocyte cell lines. Under this license agreement, the Company is responsible for annual license maintenance fees commencing in 2010 for the term of the license, which is until the expiration of the last to expire licensed patents unless terminated earlier. The license agreement also requires certain milestone payments, if and when milestones are reached, as well as royalties on net sales of resulting licensed products, if any. For the three and nine months ended September 30, 2013, the Company incurred $178 and $3,385, respectively, in license maintenance fees which were charged to general and administrative expenses as compared to $0 and $10,000 for the same periods in 2012, respectively.
	On July 15, 2011, the Company, through its Alliqua Biomedical subsidiary, entered into a license agreement with Noble Fiber Technologies, LLC, whereby Alliqua Biomedical has the exclusive right and license to manufacture and distribute “Silverseal Hydrogel Wound Dressings” and “Silverseal Hydrocolloid Wound Dressings”. The license is granted for ten years with an option to be extended for consecutive renewal periods of two years. An upfront license fee of $100,000 was expensed in 2011 as a general and administrative expense. Royalties are to be paid equal to 9.75% of net sales of licensed products. The agreement calls for minimum royalties to be paid each calendar year as follows: 2013 - $200,000, 2014 - $400,000; 2015 - $500,000; and 2016 - $600,000. Total royalties charged to general and administrative expenses for the three and nine months ended September 30, 2013 were $50,000 and $150,000, respectively, as compared to $12,500 and $37,500 for the same periods in 2012. The $150,000 royalty due for the nine months ended September 30, 2013, is included in accrued expenses.
	Sorbion distributor agreement
	On September 23, 2013, Alliqua Biomedical, Inc., entered into a distributor agreement (the “Sorbion Agreement”) with Sorbion GmbH & Co KG pursuant to which the Company became the exclusive distributor of sorbion sachet S, sorbionsana and new products with hydrokinetic fibers as primary dressings in the United States of America, Canada and Latin America, subject to certain exceptions.
	The initial term of the agreement ends on December 31, 2018 and will be extended for additional year terms until December 31, 2023, so long as the Company and Sorbion agree in September as to the minimum annual purchase amount for the calendar year that ends four years from the calendar year of such September.
	In order to maintain its exclusivity, the Company must purchase the following minimum amounts, in Euros, of the Products for the indicated calendar year:
	Calendar Year	Minimum Annual Purchase Amount
	2014	500,000 Euros
	2015	1,000,000 Euros
	2016	2,500,000 Euros
	2017	4,000,000 Euros
	Since the Company must purchase the minimum amounts in Euros, the equivalent U.S. dollar expenditure could be subject to significant fluctuations in foreign currency exchange rates.
	If the Company fails to purchase products in amounts that meet or exceed the minimum annual purchase amount for a calendar year, it may cure such minimum purchase failure by paying Sorbion in cash an amount equal to the minimum annual purchase amount for such calendar year less the amount the Company paid to Sorbion for the products purchased for such calendar year.  If the Company does not cure a minimum purchase failure with a makeup payment for a calendar year, Sorbion may terminate the Company’s exclusivity with respect to the products and grant the Company non-exclusive rights with respect to the products.  If the Company does not cure a minimum purchase failure for two subsequent calendar years, Sorbion may terminate the agreement.  The Company will not be required to meet the minimal annual purchase amount if Sorbion fails to supply the Company with the products inaccordance with the agreement.  Sorbion may also terminate the Company’s exclusivity with respect to the products if the Company does not cure a material breach of the agreement within 30 days.
	The Company has the right to use the trademarks related to the products. The Company will sell the products under their respective trademarked names and at prices determined by the Company.  Sorbion may determine in its sole discretion the prices of the products sold to the Company, which are subject to change beginning January 1, 2015. The Company will be eligible for certain discounts with respect to the purchase and shipping of the products if its orders of the products are above certain amounts.
	Carolon distribution rights agreement
	In September 2013, the Company entered into an agreement  with Carolon Company ("Carolon"), pursuant to which, among other things the Company purchased from Carolon distribution rights for Sorbion Sachet products and access to customer information, sales and training materials as well as other information pertaining to the existing independent sales and marketing channels for the products. In consideration, the Company agreed to pay Carolon a minimum of $450,000 (i) $50,000 paid in September 2013 (ii) 12 equal payments beginning November 2013 totaling $400,000 and (iii) if the Company sells a minimum of $600,000 of Sorbion Sachet products in the calendar year 2014, the Company is obligated to pay an additional $50,000 due January 2015.
	This transaction was recorded as the purchase of distribution rights and was recorded as an intangible asset subject to amortization over the remaining useful life of sixty-three months. The Company has recorded a liability of $400,000 on its balance sheet as of September 30, 2013 in connection with the Carolon Agreement.
	Lease of Facility
	On July 24, 2013 the Company extended its lease for it operating facilities in Langhorne, PA for an additional period of 10 years commencing on February 1, 2016 and continuing through and including January 31, 2016. Under this extension, the annual base rent is $207,405, compared to the present annual base rent of $204,930. Under the extended lease, the landlord agreed to make certain improvements to the facility.Such improvements are expected to be performed starting in the fourth quarter of 2013.
	Litigation, Claims and Assessments
	From time to time, in the normal course of business, the Company may be involved in litigation. The Company is not aware of any litigation as of September 30, 2013.

NOTE_8_STOCKHOLDERS_EQUITY

NOTE 8 - STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 8 - STOCKHOLDERS' EQUITY	'
	Preferred Stock
	The Company has authorized 1,000,000 shares of preferred stock, $0.001 par value per share, which may be divided into series and with preferences, limitations and relative rights determined by the board of directors. As of September 30, 2013, no shares of preferred stock are issued or outstanding. See subsequent event in Note 13.
	Authorized Common Stock
	The Company has authorized 2,000,000,000 shares of common stock effective September 25, 2013, up from 500,000,000 shares of common stock, with a $0.001 par value per share.
	Common Stock and Warrant Offerings
	The following table summarizes the common stock and warrant offerings during the nine months ended September 30, 2013:
															Five-Year Warrants - $0.097 Exercise Price
											Common				Investor			Placement Agent
	Issuance		Gross				Issuance				Stock				Warrants			Warrants
	Date		Proceeds				Costs				(Shares)				(Shares)			(Shares)
	2/22/13		$	380,500			$	-				4,697,532				4,697,532			-
	4/11/13			236,000				37,100				2,913,580				2,913,580			291,358
	4/22/13			576,000				55,100				7,111,111				7,111,111			575,308
	5/31/13			288,000				31,300				3,555,557				3,555,557			355,556
	6/28/13			1,976,925				62,632				24,406,482				24,406,482			773,235
			$	3,457,425			$	186,132				42,684,262				42,684,262			1,995,457
	The securities purchase agreement for each of the above referenced financings contains representations, warranties and covenants of the investors and the Company that are typical for transactions of this type. In addition, the securities purchase agreement contains a “full ratchet” anti-dilution adjustment provision, pursuant to which, in the event that the Company sells or issues shares of common stock or common stock equivalents at a price (the “Base Price”) lower than $0.081 per share, the Company will be required to issue to each investor, for no additional consideration, a certain number of shares of common stock such that the purchase price paid by such investor under the securities purchase agreement for the number of shares originally held, when divided by the aggregate number of shares originally held and any additional shares issued to such investor, will equal the Base Price. This investor right will terminate at any time following the nine month anniversary of the final closing under the securities purchase agreement, if (i) the closing sales price of the common stock for thirty (30) consecutive trading days is at least 200% of the per share purchase price, (ii) the product of (A) the volume weighted average price of the common stock on its principal market and (B) its corresponding daily trading volume, each as reported by Bloomberg L.P., equals or exceeds $50,000 for such thirty (30) consecutive trading days and (iii) the investor shares that were acquired hereunder by investors who are not our affiliates were eligible for unrestricted sale pursuant to Rule 144(b)(1)(i) promulgated under the Securities Act of 1933, as amended (the “Securities Act”), on their principal market from the six month anniversary of the final closing under the securities purchase agreement through at least the nine month anniversary of the final closing under the securities purchase agreement. Each warrant is exercisable immediately for cash. In addition, in the event that there is no effective registration statement registering, or no current prospectus available for, the resale of the shares of common stock issuable upon exercise of a warrant at any time following the one year anniversary of the issuance date of such warrant, such warrant may also be exercised by way of a cashless exercise. The warrants also contain customary provisions that protect their holders against dilution by adjustment of the purchase price in certain events such as stock dividends, stock splits and other similar events. The shares and the warrants issued to the investors were not registered under the Securities Act, or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act, provided by Section 4(2) and Regulation D (Rule 506) under the Securities Act. Each investor was an accredited investor (as defined by Rule 501 under the Securities Act) at the time of the private placement.
	Stock Based Compensation
	The following table summarizes stock based compensation expense, which is reflected as general and administrative expenses in the consolidated statements of operations:
			For The								For The
			Three Months Ended								Nine Months Ended
			September 30,								September 30,
			2013				2012				2013				2012
	Options		$	473,200			$	258,904			$	2,271,842			$	684,176
	Warrants			7,447				-				7,447				3,777
	Restricted Stock Units			(34,395	)			-				(8,599	)			-
	Total Share Based Compensation			446,252				258,904				2,270,690				687,953
	Restricted Stock			50,312				20,000				57,312				284,500
	Restricted Stock - Related Party			-				-				570,130				-
	Total Stock Issued for Services Rendered			50,312				20,000				627,442				284,500
	Total		$	496,564			$	278,904			$	2,898,132			$	972,453
	Restricted Stock
	The following table summarizes the restricted stock issued during the nine months ended September 30, 2013:
	Issuance		Grantee		Shares			Vesting		Grant Date
	Date		Type		Issued			Term		Value
	5/24/13		Consultant			100,000		Immediate		$	7,000
	7/1/13		Consultant			718,750		Immediate			50,312
						818,750					57,312
	6/28/13		Fmr. President & Current Board Member			8,144,719		Immediate			570,130
						8,963,469				$	627,442
	During the three months ended September 30, 2013, the Company recognized a credit of $34,395 which represents a reversal of stock-based compensation amortization previously recognized for restricted stock units (“RSUs”) with performance conditions which were originally deemed probable of being achieved which are now deemed improbable of being achieved. As of September 30, 2013, there was $154,773 of unrecognized stock-based compensation expense related to 3,095,469 of executive officer non-vested RSUs that contain performance conditions which, for accounting purposes, are deemed improbable of being achieved as of September 30, 2013.
	Warrants
	On July 11, 2013, the Company issued to a consultant a five-year warrant to purchase 300,000 shares of common stock at an exercise price of $0.10 per share, which will vest and become exercisable in 12 equal monthly installments over the first year from the date of issuance. The grant date value was $14,640.
	In applying the Black-Scholes option pricing model to warrants issued, the Company used the following weighted average assumptions:
			For The Three Months Ended								For The Nine Months Ended
			September 30,								September 30,
			2013				2012				2013				2012
	Risk free interest rate			1.4	%			0.74	%			1.15	%			0.84	%
	Expected term (years)			5				5				5				5
	Expected volatility			99.87	%			97.69	%			99.92	%			99.89	%
	Expected dividends			0	%			0	%			0	%			0	%
	The risk-free interest rate is based on rates of treasury securities with the same expected term as the warrants. The expected term used for warrants is the contractual life. The Company is utilizing an expected volatility figure based on a review of the Company’s historical volatility, over a period of time, equivalent to the expected life of the instrument being valued. The expected dividend yield is based upon the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the near future.
	The weighted average estimated fair value per share of the compensatory warrants issued during the three and nine months ended September 30, 2013 was $0.05 and $0.05, respectively, and was $0.04 during the nine months ended September 30, 2012. There were no warrants issued as compensation during the three months ended September 30, 2012.
	As of September 30, 2013, there was $6,863 of unrecognized stock-based compensation expense related to warrants that is subject to non-employee mark-to-market adjustments and will be amortized over a weighted average period of 0.8 years.
	A summary of the warrant activity, including common stock purchase warrants, during the nine months ended September 30, 2013 is presented below:
											Weighted
							Weighted				Average
							Average				Remaining
			Number of				Exercise				Life				Intrinsic
			Warrants				Price				In Years				Value
	Outstanding, December 31, 2012			43,934,000			$	0.09
	Issued			44,979,719				0.1
	Exercised			-				-
Forfeited			-				-
Outstanding, September 30, 2013			88,913,719			$	0.09				3.9			$	403,610
Exercisable, September 30, 2013			88,663,719			$	0.09				3.9			$	403,610
The following table presents information related to warrants at September 30, 2013:
Warrants Outstanding								Warrants Exercisable
								Weighted
				Outstanding				Average				Exercisable
Exercise				Number of				Remaining Life				Number of
Price				Warrants				In Years				Warrants
$	0.05				19,600,000				4.1				19,600,000
	0.069				11,609,500				3.4				11,609,500
	0.08				100,000				3.6				100,000
	0.097				44,679,719				4.7				44,679,719
	0.1				300,000				4.8				50,000
	0.16				6,156,000				1.6				6,156,000
	0.2				6,468,500				1.7				6,468,500
					88,913,719				3.9				88,663,719
Five-year warrants to purchase 16,650,000 shares of common stock at an exercise price of $0.05 per share were deemed to be a derivative liability. See Note 12 - Fair Value Measurement.

NOTE_9_STOCK_OPTIONS

NOTE 9 - STOCK OPTIONS	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 9 - STOCK OPTIONS	'
	The Company maintains a stock option plan that provides for option grants to employees, directors and others.  A total of 80,000,000 shares of common stock have been reserved for award under the stock options plan, of which 51,203,805 were available for future issuance as of September 30, 2013.
	The following table summarizes the non-qualified stock options granted during the nine months ended September 30, 2013:
													Contractual				Vesting
	Grant		Grantee		Options				Exercise				Term				Term			Grant Date
	Date		Type		Granted				Price				(Years)				(Years) [5]			Value
	2/4/13		New CEO			12,216,195			$	0.075				10				0		$	684,107
	4/9/13		Consultant			2,500,000				0.1				5				0			142,000
	5/10/13		Employee			7,500,000				0.100 - 0.200				10				0.0 - 2.0			292,406
	5/10/13		Employee			12,000,000				0.100 - 0.250				10				0.0 - 4.0			476,794
	5/10/13		Employee			4,000,000				0.100 - 0.200				10				0.0 - 3.0			159,558
	5/10/13		Consultant			150,000				0.1				10				0			7,793
	5/10/13		Consultant			3,000,000				0.1				10				0.0 - 0.6			155,863
	5/10/13		Consultant			250,000				0.1				10				1.0 - 4.0			12,989
	5/10/13		Employee			1,000,000				0.1				10				0.0 - 0.1			37,258
	5/10/13		Director			5,000,000				0.1				10				[2	]		212,386
	5/10/13		Consultant			750,000				0.100 - 0.200				10				0.0 - 1.6			37,877
	5/10/13		Employee			1,000,000				0.1				10				0.0 - 2.6			42,489
	5/10/13		Consultant			100,000				0.1				10				1.0 - 3.0			5,195
	5/10/13		Consultant			4,666,666				0.150 - 0.210				1.1				0			9,155
	7/22/13		Director			27,220,000				0.150 - 0.250				9.5				[3	]		1,556,984
	8/15/13		Consultant			500,000				0.1				10				0.0 - 3.0			35,363
	9/3/13		New CFO			8,100,000				0.100 - 0.200				10				0.0 - 2.0			384,210
	9/3/13		Fmr. CFO			5,000,000				0.1				3.3				0			202,000
						94,952,861			$	0.148										$	4,454,427
	[1]	Granted pursuant to the 2011 Plan.
	[2]	The options vest and become exercisable as follows: (i) 1,666,666 immediately on the grant date; (ii) 1,666,667 options upon the Company becoming listed on a registered national securities exchange provided it occurs before June 30, 2014; and (iii) 1,666,667 options on the last day of the first fiscal quarter the Company has achieved a positive cash-flow provided it occurs before June 30, 2015.
	[3]	The options vest and become exercisable as follows: (i) 9,073,333 options with an exercise price of $0.15 per share will vest and become exercisable provided the Company files a Form 10-K with annual revenues greater than $10 million by April 15, 2016; (ii) 9,073,333 options with an exercise price of $0.20 per share will vest and become exercisable provided the Company files a Form 10-K with annual revenues greater than $20 million by April 17, 2017; and (iii) 9,073,334 options with an exercise price of $0.25 per share will vest and become exercisable provided the Company files a Form 10-K with annual revenues greater than $25 million by April 17, 2018.
	[4]	Pursuant to the terms of the award, the following prior option grants to the same non-employee director were cancelled; (a) 4,640,000 ten-year non-qualified stock options with an exercise price of $0.15 per share that were granted on May 17, 2012 and were scheduled to vest if certain performance criteria were met by November 17, 2013; (b) 5,000,000 ten-year non-qualified stock options with an exercise price of $0.20 per share that were granted on November 27, 2012 and were scheduled to vest if certain performance criteria were met by September 30, 2013; and (c) 2,500,000 ten-year non-qualified stock options with an exercise price of $0.20 per share that were granted on November 27, 2012 and were scheduled to vest if certain performance criteria were met by December 31, 2013.
	[5]	Vesting term range represents the number of years from the grant date until the first vesting date through the final vesting date, with "0.0" representing an award that has a portion of shares that vest immediately.
	On March 29, 2013, the Company approved an amendment to immediately vest 3,095,469 non-qualified stock options with an exercise price of $0.10 per share which had been granted to the Company's former chief executive officer on November 5, 2012. These options were previously scheduled to vest on November 5, 2013. A charge of $86,573 was recognized on the modification date on account of the acceleration of vesting.
	In applying the Black-Scholes option pricing model to stock options granted, the Company used the following weighted average assumptions:
			For The Three Months Ended								For The Nine Months Ended
			September 30,								September 30,
			2013				2012				2013				2012
	Risk free interest rate			1.69	%			0.49	%			1.26	%			0.73	%
	Expected term (years)			6.04				3.86				5.63				5.51
	Expected volatility			99.87	%			97.57	%			99.17	%			98.75	%
	Expected dividends			0	%			0	%			0	%			0	%
	The risk-free interest rate is based on rates of treasury securities with the same expected term as the options. The Company uses the "simplified method" to calculate the expected term of employee and director stock-based options. The expected term used for consultants is the contractual life. The Company is utilizing an expected volatility figure based on a review of the Company’s historical volatility, over a period of time, equivalent to the expected life of the instrument being valued. The expected dividend yield is based upon the fact that the Company has not historically paid dividends, and does not expect to pay dividends in the near future.
	The weighted average estimated fair value per share of the options granted during the three and nine months ended September 30, 2013 was $0.05 and was $0.02 and $0.04 during the three and nine months ended September 30, 2012, respectively.
	During the three months ended September 30, 2013, the Company recognized a credit of $411,614 relating to options containing performance conditions, of which, $386,119 related to previously recognized expense for options where the perfomance was not rendered by the required date and have been forfeited, and $25,495 related to the expense previously recognized for options which were originally deemed probable of being achieved that are now deemed improbable of being achieved. As of September 30, 2013, there was $2,839,129 of unrecognized stock-based compensation expense related to stock options which will be amortized over a weighted average period of 2.6 years, of which $93,101 is subject to non-employee mark-to-market adjustments.
	A summary of the stock option activity during the nine months ended September 30, 2013 is presented below:
											Weighted
							Weighted				Average
							Average				Remaining
			Number of				Exercise				Life				Intrinsic
			Options				Price				In Years				Value
	Outstanding, December 31, 2012			102,104,742			$	0.15
	Granted			94,952,861				0.15
	Exercised			-				-
	Forfeited			(28,935,000	)			0.16
	Outstanding, September 30, 2013			168,122,603			$	0.15				8.2			$	-
	Exercisable, September 30, 2013			85,117,078			$	0.13				7.2			$	-
	The following table presents information related to stock options at September 30, 2013:
	Options Outstanding								Options Exercisable
									Weighted
					Outstanding				Average				Exercisable
	Exercise				Number of				Remaining Life				Number of
	Price				Options				In Years				Options
	$	0.075				12,216,195				9.4				12,216,195
		0.1				53,731,408				6.7				36,372,551
		0.125				5,275,000				9.6				1,355,000
		0.135				750,000				7.3				750,000
	0.145				12,540,000				6.7				12,540,000
	0.15				23,688,333				4.5				5,155,000
	0.2				43,388,333				8.9				11,188,332
	0.21				5,000,000				5.2				5,000,000
	0.25				11,473,334				9.6				480,000
	0.26				50,000				5				50,000
	0.61				10,000				4.7				10,000
					168,122,603				7.2				85,117,078

NOTE_10_RELATED_PARTY_TRANSACT

NOTE 10 - RELATED PARTY TRANSACTIONS	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 10 - RELATED PARTY TRANSACTIONS	'
	On February 15, 2013, a subscription receivable of $20,000 was received from a director in connection with a private placement.
	On February 22, 2013, the Company issued, in the aggregate, (i) 3,333,333 shares of common stock and (ii) five year warrants to purchase, in the aggregate, up to 3,333,333 shares of common stock at an exercise price of $0.097 per share, inexchange for aggregate consideration of $270,000 to four directors and an affiliate of a director.
	On June 28, 2013, the Company issued, in the aggregate, (i) 10,123,456 shares of common stock and (ii) five year warrants to purchase, in the aggregate, up to 10,123,456 shares of common stock at an exercise price of $0.097 per share, inexchange for aggregate consideration of $820,000 to five directors.

NOTE_11_MAJOR_CUSTOMERS

NOTE 11 - MAJOR CUSTOMERS	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 11 - MAJOR CUSTOMERS	'
	Revenues from the Company’s services to a limited number of clients have accounted for a substantial percentage of the Company’s total revenues. For the three months ended September 30, 2013, two major customers accounted for approximately 64% of revenue, with each customer individually accounting for 43% and 21%, respectively.  For the nine months ended September 30, 2013, two major customers accounted for approximately 66% of revenue, with each customer individually accounting for 51% and 15% of total revenue, respectively.
	Forthe three months ended September 30, 2012, two major customers accounted for approximately 88% of revenue, with each customer individually accounting for 66% and 22% of total revenue, respectively.  For the nine months ended September 30, 2012, two major customers accounted for approximately 74% of revenue, with each customer individually accounting for 60% and 14% of total revenue, respectively.

NOTE_12_FAIR_VALUE_MEASUREMENT

NOTE 12 - FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 12 - FAIR VALUE MEASUREMENT	'
	On September 30, 2013, the Company recomputed the fair value of its warrant liability using the Binomial option pricing model (Level 3 inputs) using the following assumptions: expected volatility of 99.44%, risk-free rate of 1.01%, expected term of 4.11 years, and expected dividends of 0.00%. The Company recorded a (gain) loss on the change in fair value of the derivative liability of $(32,978) and $243,735 during the three and nine months ended September 30, 2013, respectively.
	The following table sets forth a summary of the changes in the fair value of Level 3 warrant liabilities that are measured at fair value on a recurring basis:
	Beginning balance as of January 1, 2013	$	605,737
	Change in fair value of warrant liability		243,735
	Ending balance as of September 30, 2013	$	849,472
	Assets and liabilities measured at fair value on a recurring or nonrecurring basis are as follows:
		Level		Level		Level
			1		2		3
	Recurring:
	Derivative liabilities		N/A		N/A	$	849,472
	Warrants that contain exercise reset provisions are Level 3 derivative liabilities measured at fair value on a recurring basis using pricing models for which at least one significant assumption is unobservable. The fair value of assets valued on a nonrecurring basis was determined using discounted cash flow methodologies or similar techniques. For fair value measurements categorized within Level 3 of the fair value hierarchy, the Company’s Chief Financial Officer, who reports to the Chief Executive Officer, determines its valuation policies and procedures. The development and determination of the unobservable inputs for Level 3 fair value measurements and the fair value calculations are the responsibility of the Company’s Chief Financial Officer and are approved by the Chief Executive Officer.

NOTE_13_SUBSEQUENT_EVENTS

NOTE 13 - SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 13 - SUBSEQUENT EVENTS	'
	Sales of Series A Convertible Preferred Stock
	Subsequent to September 30, 2013, the Company entered into a Securities Purchase Agreement with an investor pursuant to which the Company sold 250,000 shares of Series A Convertible Preferred Stock (the “Preferred Stock”) to the investor and issued to the investor a warrant to purchase up to 5,555,555 shares of common stock of the Company, at an exercise price of $0.10 per share for an aggregate purchase price of $1,000,000. In connection with the closing of the sale of the Preferred Stock and Warrants, the Company paid $70,000 in fees to the Company’s placement agent and issued a $0.10 Warrant to purchase 388,889 shares of Common Stock and a $0.11 Warrant to purchase 388,899 shares of Common Stock to the placement agent.
	Pursuant to the Certificate of Designation of the Relative Rights and Preferences of the Series A Convertible Preferred Stock filed by the Company with the Florida Secretary of State on October 18, 2013 (the “Certificate of Designation”), the stated value of the Preferred Stock is $4 per share (the “Stated Value”) and the Preferred Stock accrue dividends on the Stated Value at an annual rate of 6%, payable quarterly in new shares of Common Stock. Each share of the Preferred Stock is convertible at any time at the holder’s option into shares of Common Stock at an initial conversion price of $0.09 per share. The conversion price of the Preferred Stock is subject to full-ratchet anti-dilution adjustment in the event the Company issues securities, other than certain excepted issuances, at a price below the then-current conversion price, as well as other typical conversion price adjustments. In addition, the Preferred Stock is subject to mandatory conversion upon either (i) the Company closing an equity, or equity-linked, transaction or series of related transactions with aggregate proceeds to the Company of $5 million or greater, or (ii) at any time after April 22, 2015, the closing price of the Common Stock equaling or exceeding 2.5 times the then-applicable conversion price for a period of sixty consecutive trading days with a minimum average trading volume of 100,000 shares per day over such period; provided, that, at such time, the Company has an effective registration statement for the resale of the shares of Common Stock issuable upon conversion of the Preferred Stock (the “Underlying Shares”) or the Underlying Shares may be offered for sale to the public without any volume restrictions, pursuant to Rule 144 of the Securities Act of 1933, as amended (the “Act”). Unless previously converted, the Company is required to redeem the Preferred Stock on October 21, 2015 at a redemption price equal to the Stated Value.
	As long as at least 50% of the shares of Preferred Stock are outstanding, the Company must obtain the approval of holders holding a majority of the shares of Preferred Stock outstanding at that time for the following corporate actions: (i) incurring more than $100,000 of indebtedness or a security interest on any of the assets of the Company or its subsidiaries, other than in connection with ordinary course equipment financings; (ii) amending the terms of the Preferred Stock in any manner that adversely affects any rights of the holders of the Preferred Stock; (iii) authorizing additional shares of Preferred Stock; (iv) amending the Company’s Articles of Incorporation or By-laws in any manner that would impair or reduce the rights of the Preferred Stock; (v) liquidating or dissolving the Company; or (vi) issuing any class or series of equity security senior to the Preferred Stock. If the Company issues any class or series of equity security senior to the Preferred Stock, the holders of the Preferred Stock have the right to require the Company to redeem the Preferred Stock at a redemption price equal to 120% of the Stated Value, plus any accrued and unpaid dividends thereon. Upon any liquidation, dissolution or winding-up of the Company, which includes a sale of the Company, holders of Preferred Stock will be entitled to receive out of the assets of the Company an amount equal to 120% of the Stated Value, plus any accrued and unpaid dividends thereon.
	The Warrant is exercisable at any time on or prior to the close of business on the five year anniversary of issuance. The Warrant will be automatically exercised on the date that the closing price of the Common Stock equals or exceeds 2.5 times the then-applicable exercise price for a period of sixty consecutive trading days; provided, that, at such time, the Company has an effective registration statement for the resale of the shares of Common Stock issuable upon exercise of the Warrant (the “Warrant Shares”) or the Warrant Shares may be offered for sale to the public without any volume restrictions. The Warrants is also exercisable at any time on a cashless basis.

NOTE_4_SUMMARY_OF_SIGNIFICANT_1

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (POLICIES)	9 Months Ended
	Sep. 30, 2013
Note 4 - Summary Of Significant Accounting Policies Policies	'
Intangible Assets	'
	The Company accounts for intangible assets in accordance with Accounting Standards Codification (“ASC”) Topic 350 “Intangibles - Goodwill and Other”. ASC Topic 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. There were no events or circumstances that indicated an impairment may exist for the nine months ended September 30, 2013.
Goodwill	'
	The Company reviews its goodwill for impairment annually, or more frequently, if facts and circumstances warrant a review. Goodwill is assigned on the date of acquisition. The Company continually monitors events and changes in circumstances that could indicate that it is not more likely than not that the fair value of the reporting unit is less than its carrying amount. When such events or changes in circumstances occur, the Company will assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If future undiscounted cash flows are less than the carrying amount of these assets, the Company will recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. There were no events or circumstances that indicated an impairmentmay exist for the nine month period ended September 30, 2013.
Acquired in - Process Research and Development ("IPR&D")	'
	IPR&D represents the fair value assigned to an incomplete research project, comprised of the HepaMatetechnology that the Company acquired through the 2010 merger with AquaMed which, at the time of acquisition, had not reached technological feasibility. The amount is capitalized and is accounted for as an indefinite-lived intangible asset, subject to impairment testing until completion or abandonment of the project. Upon successful completion of the project, a determination will be made as to the then useful life of the intangible asset, generally determined by the period in which substantially all of the cash flows are expected to be generated, and begin amortization. The Company tests IPR&D for impairment at least annually or more frequently if impairment indicators exist after performing a qualitative analysis. Management has multiple criteria that it considers when performing the qualitative analysis. The results of this review are then weighed and prioritized. If the totality of the relevant events and circumstances indicate that it is not more likely than not that the fair value of the IPR&D is less than its carrying amount, the first and second steps of the impairment test are not necessary.
	The Company is actively seeking to recognize value from the IPR&D. There were no events or circumstances that indicated an impairment may exist for the nine month period ended September 30, 2013.
Impairment of Long-Lived Assets Subject to Amortization	'
	The Company amortizes intangible assets with finite lives over their estimated useful lives and reviews them for impairment annually or whenever an impairment indicator exists. The Company continually monitors events and changes in circumstances that could indicate carrying amounts of long-lived assets, including intangible assets, may not be recoverable. When such events or changes in circumstances occur, the Company will assess recoverability by determining whether the carrying value of such assets will be recovered through the undiscounted expected future cash flows. If future undiscounted cash flows are less than the carrying amount of these assets, the Company will recognize an impairment loss based on the excess of the carrying amount over the fair value of the assets. There were no events or circumstances that indicated an impairment existed for the nine month period ended September 30, 2013.
Research and Development Expenses	'
	Research and development expenses represent costs incurred to develop technology and new line of proprietary products. Research and development expenses are charged to operations as they are incurred, including internal costs, costs paid to sponsoring organizations, and contract services for any third party laboratory work. Research and development expenses are tracked by project.
Use of Estimates in the Financial Statements	'
	The preparation of the consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. These estimates and assumptions include valuing equity securities and derivative financial instruments issued in financing transactions, accounts receivable reserves, inventory reserves, deferred taxes and related valuation allowances, and the fair values of long lived assets, intangibles and goodwill. The Company re-evaluates its accounting estimates quarterly and records adjustments, when necessary.
Income Taxes	'
	The Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and income tax bases of the underlying assets and liabilities. The Company establishes a valuation allowance for deferred tax assets when it determines that it is more likely than not that the benefits of deferred tax assets will not be realized in future periods. For the nine months ended September 30, 2013, the Company recorded a deferred income tax provision caused principally by current income tax deductions related to the amortization of goodwill over a 15 year life for tax purposes that have not been recognized for financial reporting purposes. Management has performed an evaluation and concluded that there were no material uncertain tax positions requiring recognition in the Company’s condensed consolidated financial statements as of September 30, 2013.
Common Stock Purchase Warrants	'
	The Company assesses classification of common stock purchase warrants at each reporting date to determine whether a change in classification between assets and liabilities or equity is required.  The Company’s free standing derivatives consist of warrants to purchase common stock that were issued pursuant to a Securities Purchase Agreement on November 8, 2012.  The Company evaluated the common stock purchase warrants to assess their proper classification in the condensed consolidated balance sheet and determined that the common stock purchase warrants contain exercise reset provisions.  Accordingly, these instruments have been classified as warrant liabilities in the accompanying condensed consolidated balance sheets as of September 30, 2013 and December 31, 2012.  The Company re-measures warrant liabilities at each reporting date, with changes in fair value recognized in earnings for each reporting period.
Stock-Based Compensation	'
	The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally re-measured on interim financial reporting dates and vesting dates until the service period is complete. The fair value amount is then recognized over the period services are required to be provided in exchange for the award, usually the vesting period. The Company recognizes stock-based compensation expense on a graded-vesting basis over the requisite service period for each separately vesting tranche of each award. Stock-based compensation expense is reflected within operating expenses in the condensed consolidated statements of operations. The Company recognizes stock-based compensation expense for awards with performance conditions if and when the Company concludes that it is probable that the performance condition will be achieved. The Company reassesses the probability of vesting at each reporting period for awards with performance conditions and adjusts stock-based compensation expense based on its probability assessment.
Fair Value of Financial Instruments	'
	The carrying amounts reported in the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable and accounts payable and accrued expenses approximate fair value based on the short-term maturity of these instruments.
	Fair value is defined as the price that would be received upon selling an asset or the price paid to transfer a liability on the measurement date. It focuses on the exit price in the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair values are as follows:
	Level 1: Observable prices in active markets for identical assets and liabilities.
	Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities.
	Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities.
Net Loss Per Common Share	'
	Basic net loss per common share is computed based on the weighted average number of shares of common stock outstanding during the periods presented. Common stock equivalents, consisting of warrants, stock options and non-vested restricted stock units, were not included in the calculation of the diluted loss per share because their inclusion would have been anti-dilutive.
	The total common shares issuable upon the exercise of stock options, warrants and non-vested restricted stock units are as follows:
		September 30,
		2013		2012
	Stock Options		168,122,603		57,170,000
	Warrants		88,913,719		27,234,000
	Non-Vested Restricted Stock Units		3,095,469		-
	Total		260,131,791		84,404,000

NOTE_4_SUMMARY_OF_SIGNIFICANT_2

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
	Sep. 30, 2013
Note 4 - Summary Of Significant Accounting Policies Tables	'
Net Loss Per Common Share	'
	The total common shares issuable upon the exercise of stock options, warrants and non-vested restricted stock units are as follows:
		September 30,
		2013		2012
	Stock Options		168,122,603		57,170,000
	Warrants		88,913,719		27,234,000
	Non-Vested Restricted Stock Units		3,095,469		-
	Total		260,131,791		84,404,000

NOTE_5_INVENTORIES_Tables

NOTE 5 - INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2013
Note 5 - Inventories Tables	'
INVENTORIES	'
	Inventories consist of the following:	As of
		September 30,			December 31,
		2013			2012
	Raw materials	$	190,191		$	209,820
	Work in process		24,957			25,119
	Finished goods		103,838			102,037
	Less: Inventory reserve		(13,287	)		-17,650
	Total	$	305,699		$	319,326

NOTE_6_TECHNOLOGY_AND_CUSTOMER1

NOTE 6 - TECHNOLOGY AND CUSTOMER RELATIONSHIP (Tables)	9 Months Ended
	Sep. 30, 2013
Note 6 - Technology And Customer Relationship Tables	'
TECHNOLOGY AND CUSTOMER RELATIONSHIP	'
	Technology and customer relationships consist of the following:
		Estimated		Cost		Accumulated Amortization			Net
		Useful Lives
	In process research and development		-	$	8,100,000	$	-		$	8,100,000
	Technology	10 years			3,000,000		(1,400,000	)		1,600,000
	Customer relationships	12 years			600,000		(233,333	)		366,667
	Distribution rights and related customer information. (See Note 7.)	5.27 years			450,000		(1,642	)		448,358
	Total			$	12,150,000	$	(1,634,975	)	$	10,515,025

NOTE_7_COMMITMENTS_AND_CONTING1

NOTE 7 - COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Sorbion agreements purchase minimum amount for the calendar year	'
	The Company must purchase the following minimum amounts, in Euros, of the Products for the indicated calendar year:
	Calendar Year	Minimum Annual Purchase Amount
	2014	500,000 Euros
	2015	1,000,000 Euros
	2016	2,500,000 Euros
	2017	4,000,000 Euros

NOTE_8_STOCKHOLDERS_EQUITY_Tab

NOTE 8 - STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2013
Stockholders' Equity	'
Warrant Offerings	'
	The following table summarizes the common stock and warrant offerings during the nine months ended September 30, 2013:
															Five-Year Warrants - $0.097 Exercise Price
											Common				Investor			Placement Agent
	Issuance		Gross				Issuance				Stock				Warrants			Warrants
	Date		Proceeds				Costs				(Shares)				(Shares)			(Shares)
	2/22/13		$	380,500			$	-				4,697,532				4,697,532			-
	4/11/13			236,000				37,100				2,913,580				2,913,580			291,358
	4/22/13			576,000				55,100				7,111,111				7,111,111			575,308
	5/31/13			288,000				31,300				3,555,557				3,555,557			355,556
	6/28/13			1,976,925				62,632				24,406,482				24,406,482			773,235
			$	3,457,425			$	186,132				42,684,262				42,684,262			1,995,457
Stock Based Compensation Expense	'
	The following table summarizes stock based compensation expense, which is reflected as general and administrative expenses in the consolidated statements of operations:
			For The								For The
			Three Months Ended								Nine Months Ended
			September 30,								September 30,
			2013				2012				2013				2012
	Options		$	473,200			$	258,904			$	2,271,842			$	684,176
	Warrants			7,447				-				7,447				3,777
	Restricted Stock Units			(34,395	)			-				(8,599	)			-
	Total Share Based Compensation			446,252				258,904				2,270,690				687,953
	Restricted Stock			50,312				20,000				57,312				284,500
	Restricted Stock - Related Party			-				-				570,130				-
	Total Stock Issued for Services Rendered			50,312				20,000				627,442				284,500
	Total		$	496,564			$	278,904			$	2,898,132			$	972,453
Restricted Stock	'
	The following table summarizes the restricted stock issued during the nine months ended September 30, 2013:
	Issuance		Grantee		Shares			Vesting		Grant Date
	Date		Type		Issued			Term		Value
	5/24/13		Consultant			100,000		Immediate		$	7,000
	7/1/13		Consultant			718,750		Immediate			50,312
						818,750					57,312
	6/28/13		Fmr. President & Current Board Member			8,144,719		Immediate			570,130
						8,963,469				$	627,442
Warrants Issued	'
	The Company used the following weighted average assumptions:
			For The Three Months Ended								For The Nine Months Ended
			September 30,								September 30,
			2013				2012				2013				2012
	Risk free interest rate			1.4	%			0.74	%			1.15	%			0.84	%
	Expected term (years)			5				5				5				5
	Expected volatility			99.87	%			97.69	%			99.92	%			99.89	%
	Expected dividends			0	%			0	%			0	%			0	%
Common Stock Purchase Warrants	'
	A summary of including common stock purchase warrants, during the nine months ended September 30, 2013 is presented below:
											Weighted
							Weighted				Average
							Average				Remaining
			Number of				Exercise				Life				Intrinsic
			Warrants				Price				In Years				Value
	Outstanding, December 31, 2012			43,934,000			$	0.09
	Issued			44,979,719				0.1
	Exercised			-				-
	Forfeited			-				-
	Outstanding, September 30, 2013			88,913,719			$	0.09				3.9			$	403,610
	Exercisable, September 30, 2013			88,663,719			$	0.09				3.9			$	403,610
Warrants Information	'
	The following table presents information related to warrants at September 30, 2013:
	Warrants Outstanding								Warrants Exercisable
									Weighted
					Outstanding				Average				Exercisable
	Exercise				Number of				Remaining Life				Number of
	Price				Warrants				In Years				Warrants
	$	0.05				19,600,000				4.1				19,600,000
		0.069				11,609,500				3.4				11,609,500
		0.08				100,000				3.6				100,000
		0.097				44,679,719				4.7				44,679,719
		0.1				300,000				4.8				50,000
		0.16				6,156,000				1.6				6,156,000
		0.2				6,468,500				1.7				6,468,500
						88,913,719				3.9				88,663,719

NOTE_9_STOCK_OPTIONS_Tables

NOTE 9 - STOCK OPTIONS (Tables)	9 Months Ended
	Sep. 30, 2013
Note 9 - Stock Options Tables	'
Non - Qualified Stock Options	'
	The following table summarizes the non-qualified stock options granted during the nine months ended September 30, 2013:
													Contractual				Vesting
	Grant		Grantee		Options				Exercise				Term				Term			Grant Date
	Date		Type		Granted				Price				(Years)				(Years) [5]			Value
	2/4/13		New CEO			12,216,195			$	0.075				10				0		$	684,107
	4/9/13		Consultant			2,500,000				0.1				5				0			142,000
	5/10/13		Employee			7,500,000				0.100 - 0.200				10				0.0 - 2.0			292,406
	5/10/13		Employee			12,000,000				0.100 - 0.250				10				0.0 - 4.0			476,794
	5/10/13		Employee			4,000,000				0.100 - 0.200				10				0.0 - 3.0			159,558
	5/10/13		Consultant			150,000				0.1				10				0			7,793
	5/10/13		Consultant			3,000,000				0.1				10				0.0 - 0.6			155,863
	5/10/13		Consultant			250,000				0.1				10				1.0 - 4.0			12,989
	5/10/13		Employee			1,000,000				0.1				10				0.0 - 0.1			37,258
	5/10/13		Director			5,000,000				0.1				10				[2	]		212,386
	5/10/13		Consultant			750,000				0.100 - 0.200				10				0.0 - 1.6			37,877
	5/10/13		Employee			1,000,000				0.1				10				0.0 - 2.6			42,489
	5/10/13		Consultant			100,000				0.1				10				1.0 - 3.0			5,195
	5/10/13		Consultant			4,666,666				0.150 - 0.210				1.1				0			9,155
	7/22/13		Director			27,220,000				0.150 - 0.250				9.5				[3	]		1,556,984
	8/15/13		Consultant			500,000				0.1				10				0.0 - 3.0			35,363
	9/3/13		New CFO			8,100,000				0.100 - 0.200				10				0.0 - 2.0			384,210
	9/3/13		Fmr. CFO			5,000,000				0.1				3.3				0			202,000
						94,952,861			$	0.148										$	4,454,427
Stock Option Pricing Model to Stock Options Granted	'
	In applying the Black-Scholes option pricing model to stock options granted, the Company used the following weighted average assumptions:
			For The Three Months Ended								For The Nine Months Ended
			September 30,								September 30,
			2013				2012				2013				2012
	Risk free interest rate			1.69	%			0.49	%			1.26	%			0.73	%
	Expected term (years)			6.04				3.86				5.63				5.51
	Expected volatility			99.87	%			97.57	%			99.17	%			98.75	%
	Expected dividends			0	%			0	%			0	%			0	%
Summary of stock option plans	'
	A summary of the stock option activity during the nine months ended September 30, 2013 is presented below:
											Weighted
							Weighted				Average
							Average				Remaining
			Number of				Exercise				Life				Intrinsic
			Options				Price				In Years				Value
	Outstanding, December 31, 2012			102,104,742			$	0.15
	Granted			94,952,861				0.15
	Exercised			-				-
	Forfeited			(28,935,000	)			0.16
	Outstanding, September 30, 2013			168,122,603			$	0.15				8.2			$	-
	Exercisable, September 30, 2013			85,117,078			$	0.13				7.2			$	-
Schedule of information related to stock options	'
	The following table presents information related to stock options at September 30, 2013:
	Options Outstanding								Options Exercisable
									Weighted
					Outstanding				Average				Exercisable
	Exercise				Number of				Remaining Life				Number of
	Price				Options				In Years				Options
	$	0.075				12,216,195				9.4				12,216,195
		0.1				53,731,408				6.7				36,372,551
		0.125				5,275,000				9.6				1,355,000
		0.135				750,000				7.3				750,000
		0.145				12,540,000				6.7				12,540,000
		0.15				23,688,333				4.5				5,155,000
		0.2				43,388,333				8.9				11,188,332
		0.21				5,000,000				5.2				5,000,000
		0.25				11,473,334				9.6				480,000
		0.26				50,000				5				50,000
		0.61				10,000				4.7				10,000
						168,122,603				7.2				85,117,078

NOTE_12_FAIR_VALUE_MEASUREMENT1

NOTE 12 - FAIR VALUE MEASUREMENT (Tables)	9 Months Ended
	Sep. 30, 2013
Note 12 - Fair Value Measurement Tables	'
Summary of the changes in the fair value of Level 3 financial liabilities	'
	The following table sets forth a summary of the changes in the fair value of Level 3 warrant liabilities that are measured at fair value on a recurring basis:
	Beginning balance as of January 1, 2013	$	605,737
	Change in fair value of warrant liability		243,735
	Ending balance as of September 30, 2013	$	849,472
Assets and liabilities measured at fair value	'
	Assets and liabilities measured at fair value on a recurring or nonrecurring basis are as follows:
		Level		Level		Level
			1		2		3
	Recurring:
	Derivative liabilities		N/A		N/A	$	849,472

NOTE_3_LIQUIDITY_Details_Narra

NOTE 3 - LIQUIDITY (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Note 3 - Liquidity Details Narrative	'
Sale of common stock, shares	42,684,262
Sale of common stock, value	$3,271,293

NOTE_4_SUMMARY_OF_SIGNIFICANT_3

NOTE 4 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Total Common Shares Issuable	260,131,791	84,404,000
Stock Options	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Total Common Shares Issuable	168,122,603	57,170,000
Warrants	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Total Common Shares Issuable	88,913,719	27,234,000
Non-vested Restricted Stock Units	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'
Total Common Shares Issuable	3,095,469	'

NOTE_5_INVENTORIES_Details

NOTE 5 - INVENTORIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'
Raw materials	$190,191	$209,820
Work in process	24,957	25,119
Finished goods	103,838	102,037
Less: Inventory reserve	-13,287	-17,650
Total	$305,699	$319,326

NOTE_6_TECHNOLOGY_AND_CUSTOMER2

NOTE 6 - TECHNOLOGY AND CUSTOMER RELATIONSHIPS (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Finite-Lived Intangible Assets [Line Items]	'
Cost	$12,150,000
Accumulated Amortization	-1,634,975
Net	10,515,025
In Process Research And Development [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Cost	8,100,000
Accumulated Amortization	'
Net	8,100,000
Technology [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Estimated Useful Lives	'10 years
Cost	3,000,000
Accumulated Amortization	-1,400,000
Net	1,600,000
Customer Relationships [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Estimated Useful Lives	'12 years
Cost	600,000
Accumulated Amortization	-233,333
Net	366,667
Distribution Rights [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Cost	450,000
Accumulated Amortization	-1,642
Net	$448,358
Gross [Member]	'
Finite-Lived Intangible Assets [Line Items]	'
Estimated Useful Lives	'5 years 3 months 7 days

NOTE_6_TECHNOLOGY_AND_CUSTOMER3

NOTE 6 - TECHNOLOGY AND CUSTOMER RELATIONSHIPS (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements	'	'	'	'
Amortization expense related to the acquired amortizable intangibles	$89,142	$87,500	$264,142	$262,500

NOTE_7_COMMITMENTS_AND_CONTING2

NOTE 7 - COMMITMENTS AND CONTINGENCIES (Details) (EUR €)	Sep. 30, 2013
Note 7 - Commitments And Contingencies Details	'
2014	€ 500,000
2015	1,000,000
2016	2,500,000
2017	€ 4,000,000

NOTE_7_COMMITMENTS_AND_CONTING3

NOTE 7 - COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Notes to Financial Statements	'	'	'	'
License maintenance fees	$178	$0	$3,385	$10,000
License fees	'	'	100,000	'
Percent of Royalties paid of net sales of licensed products	9.75%	'	9.75%	'
Agreement calls for minimum royalties to be paid each calendar 2013	200,000	'	200,000	'
Agreement calls for minimum royalties to be paid each calendar 2014	400,000	'	400,000	'
Agreement calls for minimum royalties to be paid each calendar 2015	500,000	'	500,000	'
Agreement calls for minimum royalties to be paid each calendar 2016	600,000	'	600,000	'
Royalities	50,000	12,500	150,000	37,500
Liability	$400,000	'	$400,000	'

NOTE_8_STOCKHOLDERS_EQUITY_Det

NOTE 8 - STOCKHOLDERS' EQUITY (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Gross Proceeds	$3,457,425
Issuance Costs	186,132
Common Stock	42,684,262
Investor Warrants	42,684,262
Placement Agent Warrants	1,995,457
Issuance Date 2/22/2013 [Member]	'
Issuance Date	22-Feb-13
Gross Proceeds	380,500
Issuance Costs	'
Common Stock	4,697,532
Issuance Date 2/22/2013 [Member] | Five-Year Warrants - $0.097 Exercise Price [Member]	'
Investor Warrants	4,697,532
Placement Agent Warrants	'
Issuance Date 4/11/2013 [Member]	'
Issuance Date	11-Apr-13
Gross Proceeds	236,000
Issuance Costs	37,100
Common Stock	2,913,580
Issuance Date 4/11/2013 [Member] | Five-Year Warrants - $0.097 Exercise Price [Member]	'
Investor Warrants	2,913,580
Placement Agent Warrants	291,358
Issuance Date 4/22/2013 [Member]	'
Issuance Date	22-Apr-13
Gross Proceeds	576,000
Issuance Costs	55,100
Common Stock	7,111,111
Issuance Date 4/22/2013 [Member] | Five-Year Warrants - $0.097 Exercise Price [Member]	'
Investor Warrants	7,111,111
Placement Agent Warrants	575,308
Issuance Date 5/31/2013 [Member]	'
Issuance Date	31-May-13
Gross Proceeds	288,000
Issuance Costs	31,300
Common Stock	3,555,557
Issuance Date 5/31/2013 [Member] | Five-Year Warrants - $0.097 Exercise Price [Member]	'
Investor Warrants	3,555,557
Placement Agent Warrants	355,556
Issuance Date 6/28/2013 [Member]	'
Issuance Date	28-Jun-13
Gross Proceeds	1,976,925
Issuance Costs	$62,632
Common Stock	24,406,482
Issuance Date 6/28/2013 [Member] | Five-Year Warrants - $0.097 Exercise Price [Member]	'
Investor Warrants	24,406,482
Placement Agent Warrants	773,235

NOTE_8_STOCKHOLDERS_EQUITY_Det1

NOTE 8 - STOCKHOLDERS' EQUITY (Details 1) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Note 8 - Stockholders Equity Details 1	'	'	'	'
Options	$473,200	$258,904	$2,271,842	$684,176
Warrants	7,447	'	7,447	3,777
Restricted Stock Units	-34,395	'	-8,599	'
Total Share Based Compensation	446,252	258,904	2,270,690	687,953
Restricted Stock	50,312	20,000	57,312	284,500
Restricted Stock - Related Party	'	'	570,130	'
Total Stock Issued for Services Rendered	50,312	20,000	627,442	284,500
Total	$496,564	$278,904	$2,898,132	$972,453

NOTE_8_STOCKHOLDERS_EQUITY_Det2

NOTE 8 - STOCKHOLDERS' EQUITY (Details 2) (USD $)	9 Months Ended
	Sep. 30, 2013
Non-vested Restricted Stock Units	'
Shares Issued	8,963,469
Grant Date Value	$627,442
Consultant 1 [Member] | Non-vested Restricted Stock Units	'
Issuance Date	24-May-13
Grantee Type	'Consultant
Shares Issued	100,000
Vesting Term	' Immediate
Grant Date Value	7,000
Consultant 2 [Member] | Non-vested Restricted Stock Units	'
Issuance Date	1-Jul-13
Grantee Type	'Consultant
Shares Issued	718,750
Vesting Term	' Immediate
Grant Date Value	50,312
Fmr. President & Current Board [Member]	'
Shares Issued	818,750
Grant Date Value	57,312
Consultant [Member]	'
Issuance Date	28-Jun-13
Grantee Type	'Fmr. President & Current Board Member
Shares Issued	8,144,719
Vesting Term	' Immediate
Grant Date Value	$570,130

NOTE_8_STOCKHOLDERS_EQUITY_Det3

NOTE 8 - STOCKHOLDERS' EQUITY (Details 3) (Stock Options)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Options	'	'	'	'
Risk free interest rate	1.40%	0.74%	1.15%	0.84%
Expected term (years)	'5 years	'5 years	'5 years	'5 years
Expected volatility	99.87%	97.69%	99.92%	99.89%
Expected dividends	0.00%	0.00%	0.00%	0.00%

NOTE_8_STOCKHOLDERS_EQUITY_Det4

NOTE 8 - STOCKHOLDERS' EQUITY (Details 4) (Warrant, USD $)	9 Months Ended
	Sep. 30, 2013
Warrant	'
Number of Awards Beginning Balance	43,934,000
Issued	44,979,719
Exercised	'
Forfeited	'
Number of Awards Ending Balance	88,913,719
Number of Awards, Exercisable Ending Balance	88,663,719
Weighted Average Exercise Price Beginning Balance	$0.09
Issued	$0.10
Exercised	'
Forfeited	'
Weighted Average Exercise Price Ending Balance	$0.09
Weighted Average Exercise Price, Exercisable Ending Balance	$0.09
Weighted Average Remaining Life In Years, Outstanding	'3 years 10 months 24 days
Weighted Average Remaining Life In Years, Exercisable	'3 years 10 months 24 days
Intrinsic Value, Outstanding	$403,610
Intrinsic Value, Exercisable	$403,610

NOTE_8_STOCKHOLDERS_EQUITY_Det5

NOTE 8 - STOCKHOLDERS' EQUITY (Details 5) (USD $)	Sep. 30, 2013	Dec. 31, 2012
	Y
0.050 [Member]	'	'
Weighted Average Exercise Price Ending Balance	$0.05	'
Number of Awards Ending Balance	19,600,000	'
Weighted Average Remaining Life In Years	4.1	'
Number of Awards, Exercisable Ending Balance	19,600,000	'
0.069 [Member]	'	'
Weighted Average Exercise Price Ending Balance	$0.07	'
Number of Awards Ending Balance	11,609,500	'
Weighted Average Remaining Life In Years	3.4	'
Number of Awards, Exercisable Ending Balance	11,609,500	'
0.080 [Member]	'	'
Weighted Average Exercise Price Ending Balance	$0.08	'
Number of Awards Ending Balance	100,000	'
Weighted Average Remaining Life In Years	3.6	'
Number of Awards, Exercisable Ending Balance	100,000	'
0.097 [Member]	'	'
Weighted Average Exercise Price Ending Balance	$0.10	'
Number of Awards Ending Balance	44,679,719	'
Weighted Average Remaining Life In Years	4.7	'
Number of Awards, Exercisable Ending Balance	44,679,719	'
0.100 [Member]	'	'
Weighted Average Exercise Price Ending Balance	$0.10	'
Number of Awards Ending Balance	300,000	'
Weighted Average Remaining Life In Years	4.8	'
Number of Awards, Exercisable Ending Balance	50,000	'
0.160 [Member]	'	'
Weighted Average Exercise Price Ending Balance	$0.16	'
Number of Awards Ending Balance	6,156,000	'
Weighted Average Remaining Life In Years	1.6	'
Number of Awards, Exercisable Ending Balance	6,156,000	'
0.200 [Member]	'	'
Weighted Average Exercise Price Ending Balance	$0.20	'
Number of Awards Ending Balance	6,468,500	'
Weighted Average Remaining Life In Years	1.7	'
Number of Awards, Exercisable Ending Balance	6,468,500	'
Warrant	'	'
Weighted Average Exercise Price Ending Balance	$0.09	$0.09
Number of Awards Ending Balance	88,913,719	43,934,000
Weighted Average Remaining Life In Years	3.9	'
Number of Awards, Exercisable Ending Balance	88,663,719	'

NOTE_8_STOCKHOLDERS_EQUITY_Det6

NOTE 8 - STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Notes to Financial Statements	'	'	'	'	'
Common stock, Authorized	2,000,000,000	'	2,000,000,000	'	2,000,000,000
Common stcok, Par value	$0.00	'	$0.00	'	$0.00
Preferred Stock Authorized	1,000,000	'	1,000,000	'	1,000,000
Preferred stcok par value	$0.00	'	$0.00	'	$0.00
stock-based compensation amortization	$34,395	'	$2,270,690	'	'
unrecognized stock-based compensation expense related to non-vested RSUs	154,773	'	154,773	'	'
warrants issued as compensation	$0.05	$0	$0.05	$0.04	'
unrecognized stock-based compensation expense related to warrants	6,863	'	6,863	'	'

NOTE_9_STOCK_OPTIONS_Details

NOTE 9 - STOCK OPTIONS (Details) (Stock Options, USD $)	9 Months Ended
	Sep. 30, 2013
Options Granted	94,952,861
Exercise Price	'0.148
Contractual Term	'8 years 2 months 12 days
Grant Date Value	$4,454,427
New CEO	'
Grant Date	4-Feb-13
Grantee Type	'New CEO
Options Granted	12,216,195
Exercise Price	'0.075
Contractual Term	'10 years
Vesting Term	'0
Grant Date Value	684,107
Consultant	'
Grant Date	9-Apr-13
Grantee Type	'Consultant
Options Granted	2,500,000
Exercise Price	'0.1
Contractual Term	'5 years
Vesting Term	'0
Grant Date Value	142,000
Employee 2	'
Grant Date	10-May-13
Grantee Type	'Employee
Options Granted	7,500,000
Exercise Price	'0.100 - 0.200
Contractual Term	'10 years
Vesting Term	'0.0 - 2.0
Grant Date Value	292,406
Employee 3	'
Grant Date	10-May-13
Grantee Type	'Employee
Options Granted	12,000,000
Exercise Price	'0.100 - 0.250
Contractual Term	'10 years
Vesting Term	'0.0 - 4.0
Grant Date Value	476,794
Employee 4	'
Grant Date	10-May-13
Grantee Type	'Employee
Options Granted	4,000,000
Exercise Price	'0.100 - 0.200
Contractual Term	'10 years
Vesting Term	'0.0 - 3.0
Grant Date Value	159,558
Consultant 1 [Member]	'
Grant Date	10-May-13
Grantee Type	'Consultant
Options Granted	150,000
Exercise Price	'0.1
Contractual Term	'10 years
Vesting Term	'0
Grant Date Value	7,793
Consultant 2 [Member]	'
Grant Date	10-May-13
Grantee Type	'Consultant
Options Granted	3,000,000
Exercise Price	'0.1
Contractual Term	'10 years
Vesting Term	'0.0 - 0.6
Grant Date Value	155,863
Consultant 3	'
Grant Date	10-May-13
Grantee Type	'Consultant
Options Granted	250,000
Exercise Price	'0.1
Contractual Term	'10 years
Vesting Term	'1.0 - 4.0
Grant Date Value	12,989
Employee 5	'
Grant Date	10-May-13
Grantee Type	'Employee
Options Granted	1,000,000
Exercise Price	'0.1
Contractual Term	'10 years
Vesting Term	'0.0 - 0.1
Grant Date Value	37,258
Director	'
Grant Date	10-May-13
Grantee Type	'Director
Options Granted	5,000,000
Exercise Price	'0.1
Contractual Term	'10 years
Vesting Term	'[2]
Grant Date Value	212,386
Consultant 4	'
Grant Date	10-May-13
Grantee Type	'Consultant
Options Granted	750,000
Exercise Price	'0.100 - 0.200
Contractual Term	'10 years
Vesting Term	'0.0 - 1.6
Grant Date Value	37,877
Employee 6	'
Grant Date	10-May-13
Grantee Type	'Employee
Options Granted	1,000,000
Exercise Price	'0.1
Contractual Term	'10 years
Vesting Term	'0.0 - 2.6
Grant Date Value	42,489
Consultant 6	'
Grant Date	10-May-13
Grantee Type	'Consultant
Options Granted	100,000
Exercise Price	'0.1
Contractual Term	'10 years
Vesting Term	'1.0 - 3.0
Grant Date Value	5,195
Consultant 7	'
Grant Date	10-May-13
Grantee Type	'Consultant
Options Granted	4,666,666
Exercise Price	'0.150 - 0.210
Contractual Term	'1 year 1 month 6 days
Vesting Term	'0
Grant Date Value	9,155
Director 2	'
Grant Date	22-Jul-13
Grantee Type	'Director
Options Granted	27,220,000
Exercise Price	'0.150 - 0.250
Contractual Term	'9 years 6 months
Vesting Term	'[3]
Grant Date Value	1,556,984
Consultant 8	'
Grant Date	15-Aug-13
Grantee Type	'Consultant
Options Granted	500,000
Exercise Price	'0.1
Contractual Term	'10 years
Vesting Term	'0.0 - 3.0
Grant Date Value	35,363
New CFO	'
Grant Date	3-Sep-13
Grantee Type	'New CFO
Options Granted	8,100,000
Exercise Price	'0.100 - 0.200
Contractual Term	'10 years
Vesting Term	'0.0 - 2.0
Grant Date Value	384,210
Fmr. CFO	'
Grant Date	3-Sep-13
Grantee Type	'Fmr. CFO
Options Granted	5,000,000
Exercise Price	'0.1
Contractual Term	'3 years 3 months 18 days
Vesting Term	'0
Grant Date Value	$202,000

NOTE_9_STOCK_OPTIONS_Details_1

NOTE 9 - STOCK OPTIONS (Details 1) (Stock Options)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Options	'	'	'	'
Risk free interest rate	1.26%	0.73%	1.69%	0.49%
Expected term (years)	'5 years 7 months 17 days	'5 years 6 months 4 days	'6 years 15 days	'3 years 10 months 10 days
Expected volatility	99.17%	98.75%	99.87%	97.57%
Expected dividends	0.00%	0.00%	0.00%	0.00%

NOTE_9_STOCK_OPTIONS_Details_2

NOTE 9 - STOCK OPTIONS (Details 2) (Stock Options, USD $)	9 Months Ended
	Sep. 30, 2013
Stock Options	'
Number of Awards Beginning Balance	102,104,742
Granted	94,952,861
Exercised	'
Forfeited	-28,935,000
Number of Awards Ending Balance	168,122,603
Number of Awards, Exercisable Ending Balance	85,117,078
Weighted Average Exercise Price Beginning Balance	$0.15
Granted	$0.15
Exercised	'
Forfeited	$0.16
Weighted Average Exercise Price Ending Balance	$0.15
Weighted Average Exercise Price, Exercisable Ending Balance	$0.13
Weighted Average Remaining Life In Years, Outstanding	'8 years 2 months 12 days
Weighted Average Remaining Life In Years, Exercisable	'7 years 2 months 12 days
Intrinsic Value, Outstanding	'
Intrinsic Value, Exercisable	'

NOTE_9_STOCK_OPTIONS_Details_3

NOTE 9 - STOCK OPTIONS (Details 3)	9 Months Ended
	Sep. 30, 2013
Outstanding Options	'
Number of Options	168,122,603
Exercisable Options	'
Number of Options	85,117,078
Weighted Average Remaining Life in Years	'7 years 2 months 12 days
0.075	'
Outstanding Options	'
Number of Options	12,216,195
Exercisable Options	'
Number of Options	12,216,195
Weighted Average Remaining Life in Years	'9 years 4 months 24 days
0.1	'
Outstanding Options	'
Number of Options	53,731,408
Exercisable Options	'
Number of Options	36,372,551
Weighted Average Remaining Life in Years	'6 years 8 months 12 days
0.125	'
Outstanding Options	'
Number of Options	5,275,000
Exercisable Options	'
Number of Options	1,355,000
Weighted Average Remaining Life in Years	'9 years 7 months 6 days
0.135	'
Outstanding Options	'
Number of Options	750,000
Exercisable Options	'
Number of Options	750,000
Weighted Average Remaining Life in Years	'7 years 3 months 18 days
0.145	'
Outstanding Options	'
Number of Options	12,540,000
Exercisable Options	'
Number of Options	12,540,000
Weighted Average Remaining Life in Years	'6 years 8 months 12 days
0.15	'
Outstanding Options	'
Number of Options	23,688,333
Exercisable Options	'
Number of Options	5,155,000
Weighted Average Remaining Life in Years	'4 years 6 months
0.2	'
Outstanding Options	'
Number of Options	43,388,333
Exercisable Options	'
Number of Options	5,155,000
Weighted Average Remaining Life in Years	'8 years 10 months 24 days
0.21	'
Outstanding Options	'
Number of Options	5,000,000
Exercisable Options	'
Number of Options	5,000,000
Weighted Average Remaining Life in Years	'5 years 2 months 12 days
0.25	'
Outstanding Options	'
Number of Options	11,473,334
Exercisable Options	'
Number of Options	480,000
Weighted Average Remaining Life in Years	'9 years 7 months 6 days
0.26	'
Outstanding Options	'
Number of Options	50,000
Exercisable Options	'
Number of Options	50,000
Weighted Average Remaining Life in Years	'5 years
0.61	'
Outstanding Options	'
Number of Options	10,000
Exercisable Options	'
Number of Options	10,000
Weighted Average Remaining Life in Years	'4 years 8 months 12 days

NOTE_9_STOCK_OPTIONS_Details_N

NOTE 9 - STOCK OPTIONS (Details Narrative)	3 Months Ended			9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
	USD ($)	EUR (€)	USD ($)	USD ($)	USD ($)
Note 9 - Stock Options Details Narrative	'	'	'	'	'
Common stock reserved for future issuance under stock option plan	80,000,000	80,000,000	'	80,000,000	'
Common Stock shares for future issuance	51,203,805	51,203,805	'	51,203,805	'
Reversal of previously recognized expense related to stock options	'	€ 411,614	'	'	'
weighted average estimated fair value per share of the options granted	$0.05	'	$0.04	$0.02	$0.04
Weighted average period	'	'	'	'2 years 7 months 6 days	'
Unrecognized share based compensation expense for non vested units	154,773	154,773	'	154,773	'
unrecognized stock-based compensation expense related to stock options	$2,839,129	'	'	$2,839,129	'

NOTE_11_MAJOR_CUSTOMERS_Detail

NOTE 11 - MAJOR CUSTOMERS (Details Narrative)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Customer One [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Percent of revenue accounted	64.00%	88.00%	66.00%	74.00%
Customer Two [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Percent of revenue accounted	43.00%	66.00%	51.00%	60.00%
Customer Three [Member]	'	'	'	'
Revenue, Major Customer [Line Items]	'	'	'	'
Percent of revenue accounted	21.00%	22.00%	15.00%	14.00%

Recovered_Sheet1

NOTE 12 - Fair Value Measurement (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Note 12 - Fair Value Measurement Details	'
Beginning balance as of January 1, 2013	$605,737
Change in Fair Value of warrant liability	243,735
Ending balance as of September 30, 2013	$849,472

Recovered_Sheet2

NOTE 12 - Fair Value Measurement (Details 1) (USD $)	Sep. 30, 2013
Level 1	'
Recurring:	'
Derivative liabilities	'
Level 2	'
Recurring:	'
Derivative liabilities	'
Level 3	'
Recurring:	'
Derivative liabilities	$849,472