VerifyMe (VRME) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 15, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	VRME
Entity Registrant Name	VerifyMe, Inc.
Entity Central Index Key	1,104,038
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		9,765,697

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 23,222	$ 22,644
Prepaid expenses	9,125	9,425
Inventory	15,558	17,093
TOTAL CURRENT ASSETS	47,905	49,162
PROPERTY AND EQUIPMENT
Capital equipment, net of accumulated depreciation of $203,223 as of March 31, 2017 and December 31, 2016
OTHER ASSETS
Patents and Trademark, net of accumulated amortization of $192,025 and $194,236 as of March 31, 2017 and December 31, 2016	234,164	231,952
TOTAL ASSETS	282,069	281,114
CURRENT LIABILITIES
Accounts payable and accrued expenses	862,315	867,436
Note payable, net of discount of $109,988 and $60,931 as of March 31, 2017 and December 31, 2016	164,012	68,069
Embedded derivative liability	250,000	228,718
Warrant liability	423,000	394,744
TOTAL CURRENT LIABILITIES	1,699,327	1,558,967
CONTINGENCIES
STOCKHOLDERS' DEFICIT
Common stock, $ .001 par value; 675,000,000 shares authorized; 9,341,236 and 8,681,236 shares issued, 8,990,696 and 8,330,696 shares outstanding as of March 31, 2017 and December 31, 2016	8,991	8,331
Additional paid in capital	40,633,827	40,469,272
Treasury stock, at cost (350,540 shares at March 31, 2017 and December 31, 2016)	(113,389)	(113,389)
Accumulated deficit	(41,949,132)	(41,644,545)
STOCKHOLDERS' DEFICIT	(1,417,258)	(1,277,853)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	282,069	281,114
Series A Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock	365	398
STOCKHOLDERS' DEFICIT	365	398
Series B Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock
STOCKHOLDERS' DEFICIT
Series C Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock	1,913	1,913
STOCKHOLDERS' DEFICIT	1,913	1,913
Series D Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock	167	167
STOCKHOLDERS' DEFICIT	$ 167	$ 167

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Accumulated depreciation on capital equipment	$ 203,223	$ 203,223
Accumulated amortization, patent and trademarks	192,025	194,236
Net of discount on note payable	$ 109,988	$ 60,931
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	675,000,000	675,000,000
Common stock, shares issued	9,341,236	8,681,236
Common stock, shares outstanding	8,990,696	8,330,696
Treasury stock, shares	350,540	350,540
Series A Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	37,564,767	37,564,767
Preferred stock, shares issued	364,778	397,778
Preferred stock, shares outstanding	364,778	397,778
Series B Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	82	85
Preferred stock, shares issued	0.92	0.92
Preferred stock, shares outstanding	0.92	0.92
Series C Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	7,500,000	7,500,000
Preferred stock, shares issued	1,912,500	1,912,500
Preferred stock, shares outstanding	1,912,500	1,912,500
Series D Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	6,000,000	6,000,000
Preferred stock, shares issued	166,750	166,750
Preferred stock, shares outstanding	166,750	166,750

Condensed Statements of Operati

Condensed Statements of Operations - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
NET REVENUES
Sales
Royalties
TOTAL NET REVENUE
COST OF SALES
GROSS PROFIT
OPERATING EXPENSES
General and administrative	142,061	117,758
Legal and accounting	9,044	115,345
Payroll expenses	22,810	627,923
Research and development	8,669	89,335
Sales and marketing	5,921	65,331
Total operating expenses	188,505	1,015,692
LOSS BEFORE OTHER INCOME (EXPENSE)	(188,505)	(1,015,692)
OTHER INCOME (EXPENSE)
Interest expense	(66,544)	(1,000)
Change in fair value of warrants	(28,256)	1,730,933
Change in fair value of embedded derivative liability	(21,282)	(463,000)
Fair value of warrants in excess of consideration for convertible preferred stock		(1,767,575)
TOTAL OTHER INCOME (EXPENSE)	(116,082)	(500,642)
NET LOSS	$ (304,587)	$ (1,516,334)
LOSS PER SHARE
BASIC	$ (0.04)	$ (0.25)
DILUTED	$ (0.04)	$ (0.25)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
BASIC	8,397,976	6,139,460
DILUTED	8,397,976	6,139,460

Condensed Statement of Changes

Condensed Statement of Changes in Stockholders' Deficit - 3 months ended Mar. 31, 2017 - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Accumulated Deficit [Member]	Series A Convertible Preferred Stock [Member]	Series B Convertible Preferred Stock [Member]	Series C Convertible Preferred Stock [Member]	Series D Convertible Preferred Stock [Member]	Total
Balance at Dec. 31, 2016	$ 8,331	$ 40,469,272	$ (113,389)	$ (41,644,545)	$ 398		$ 1,913	$ 167	$ (1,277,853)
Balance (in shares) at Dec. 31, 2016	8,330,696				397,778	1	1,912,500	166,750
Conversion of Convertible Preferred Stock	$ 660	(627)			$ (33)		$ (1,050)
Conversion of Convertible Preferred Stock (in shares)	660,000				(33,000)
Warrants issued in conjunction with notes payable		113,585							113,585
Fair value of stock options and warrants		51,597							51,597
Net income				(304,587)					(304,587)
Balance at Mar. 31, 2017	$ 8,991	$ 40,633,827	$ (113,389)	$ (41,949,132)	$ 365		$ 1,913	$ 167	$ (1,417,258)
Balance (in shares) at Mar. 31, 2017	8,990,696				364,778	0.92	1,912,500	166,750

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (304,587)	$ (1,516,334)
Adjustments to reconcile net loss to net cash used in operating activities:
Fair value of options and warrants issued in exchange for services	51,597	335,828
Common stock issued for services		15,275
Accretion of discount on notes payable	64,529
Change in fair value of warrant liability	28,256	36,643
Change in fair value of embedded derivative liability	21,282	463,000
Amortization and depreciation	(2,212)	7,644
Amortization of deferred compensation		202,691
(Increase) decrease in assets
Inventory	1,535	(20,120)
Prepaid expenses	300
Decrease in liabilities
Accounts payable and accrued expenses	(5,122)	(101,305)
Net cash used in operating activities	(144,422)	(576,678)
CASH FLOWS FROM INVESTING ACTIVITIES
Employee advances		(36,083)
Net cash used in investing activities		(36,083)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of notes payable	145,000
Stock issuance costs		(17,500)
Net cash provided by financing activities	145,000	1,217,500
NET INCREASE IN CASH AND CASH EQUIVALENTS	578	604,739
CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR	22,644	4,152
CASH AND CASH EQUIVALENTS - END OF YEAR	23,222	608,891
Cash paid during the year for: Interest
Cash paid during the year for: Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Security deposit offset against accounts payable		37,197
Accretion of discount on preferred stock as deemed dividend distribution		1,235,000
Revaluation of restricted stock units between additional paid in capital and deferred compensation		82,125
Warrants issued as discount to notes payable	119,651
Series A Convertible Preferred Stock [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Convertible Preferred Stock converted to common stock	660	294
Series B Convertible Preferred Stock [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Convertible Preferred Stock converted to common stock		292
Series C Convertible Preferred Stock [Member]
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from sale of Convertible Preferred Stock		$ 1,235,000

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Business The Company was incorporated in the State of Nevada on November 10, 1999. The Company is based in Downingtown, Pennsylvania and its common stock, par value $0.001 per share (the “Common Stock”), is traded on the over-the-counter market and quoted on the OTCQB under the ticker symbol “VRME.” The Company is a technology pioneer in the anti-counterfeiting industry. This broad market encompasses counterfeiting of physical and material goods and products, as well as counterfeiting of identity in digital transactions. The Company delivers security solutions for identification and authentication of people, products and packaging in a variety of applications in the security field for both digital and physical transactions. The products can be used to manage and issue secure credentials, including national IDs, passports, driver licenses and access control credentials. In addition, the Company has begun developing comprehensive authentication security software to secure physical and logical access to facilities, computer networks, internet sites and mobile applications. When the Company has sufficient working capital, management intends to devote resources resolving certain functionality issues which presently affect this technology. The Company’s activities are subject to significant risks and uncertainties, including the need to secure additional funding to operationalize the Company’s current technology. Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the SEC. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. Basic and Diluted Net Income per Share of Common Stock The Company follows FASB ASC 260, “Earnings Per Share,” when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for each of the years presented, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same. Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payment award transactions, including: (1) income tax consequences; (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. For public companies, the amendments in the ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. This pronouncement had no impact on the financial statements since any excess tax benefits were fully offset by the valuation allowance and not recognized for financial statement purposes. Recently Issued Accounting Pronouncements Not Yet Adopted As of March 31, 2017, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2017.

MANAGEMENT PLANS

MANAGEMENT PLANS	3 Months Ended
	Mar. 31, 2017
MANAGEMENT PLANS [Abstract]
MANAGEMENT PLANS	NOTE 2 – MANAGEMENT PLANS The accompanying condensed financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses and experienced negative cash flow from operations. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. The Company does not believe that its existing cash resources will be sufficient to sustain operations during the next twelve months. The Company currently needs to generate revenue in order to sustain its operations. In the event that the Company cannot generate sufficient revenue to sustain its operations, the Company will need to reduce expenses or obtain financing through the sale of debt and/or equity securities. The issuance of additional equity would result in dilution to existing stockholders. If the Company is unable to obtain additional funds when they are needed or if such funds cannot be obtained on terms acceptable to the Company, the Company may be unable to execute upon the business plan or pay costs and expenses as they are incurred, which could have a material adverse effect on the business, financial condition and results of operations. If sufficient revenues are not generated to sustain operations or additional funding cannot be obtained in the short term, the Company will need to reduce monthly expenditures to a level that will enable the Company to continue until such funds can be obtained. Successful completion of the Company’s development program, and the attainment of profitable operations are dependent upon future events, including obtaining adequate financing to fulfill its development activities and achieving a level of sales adequate to support the Company’s cost structure. However, there can be no assurances that the Company will be able to secure additional equity investment or achieve an adequate sales level.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 3 – INCOME TAXES Income tax expense was $0 for the three months ended March 31, 2017 and 2016. As of January 1, 2017, the Company had no unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties during 2017 related to unrecognized tax benefits. There has been no change in unrecognized tax benefits during the three months ended March 31, 2017, and there was no accrual for uncertain tax positions as of March 31, 2017. Tax years from 2013 through 2016 remain subject to examination by major tax jurisdictions. There is no income tax benefit for the losses for the three months ended March 31, 2017 and 2016, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits.

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2017
Notes Payable [Abstract]
NOTES PAYABLE	NOTE 4 – NOTES PAYABLE Notes payable consist of the following as of March 31, 2017 and December 31, 2016: March 31, December 31, 2017 2016 Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due) 50,000 50,000 Notes payable; interest rate at 5% per annum; principal and accrued interest due at maturity on June 30, 2017 99,000 79,000 Notes payable; interest rate at 0% per annum; principal and accrued interest due at maturity on June 30, 2017 125,000 - Less: Unamortized discount (109,988 ) (60,931 ) 164,012 68,069 Less: Current portion 164,012 68,069 $ - $ - On January 24, 2017 and January 31, 2017, the Company issued notes payable in the amount of $20,000, in addition to warrants to purchase 1,000,000 shares of the Company’s common stock at an exercise price of $0.40 per share and a term of five years. The notes bear interest at the rate of 5% per annum and are due on June 30, 2017. In accordance with FASB ASC 470-20, “Debt with Conversion and Other Options,” the proceeds of notes payable with detachable stock purchase warrants have been allocated between the two based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion allocated to the warrants has been accounted for as a discount to the notes payable and amortized over the term of the notes. The warrants were valued at $15,895 fair value, using the Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 197.5% to 197.7%, risk free interest rate of 1.94% to 1.90% and expected option life of 5 years. The warrant values were treated as a discount to the value of the note payable in accordance with FASB ASC 835-30-25, Recognition and were accreted over the term of the note payable for financial statement purposes. On February 13, 2017, the Company issued a note payable in the amount of $100,000 in addition to a warrant to purchase 5,000,000 shares of the Company’s common stock at at an exercise price of $0.40 per share and a term of five years. The notes bear no interest and are due on June 30, 2017. In accordance with FASB ASC 470-20, “Debt with Conversion and Other Options,” the proceeds of notes payable with detachable stock purchase warrants have been allocated between the two based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion allocated to the warrants has been accounted for as a discount to the notes payable and amortized over the term of the notes. The warrants were valued at $76,390 fair value, using the Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 197.4% , risk free interest rate of 1.88% and expected option life of 5 years. The warrant values were treated as a discount to the value of the note payable in accordance with FASB ASC 835-30-25, Recognition and were accreted over the term of the note payable for financial statement purposes. On March 28, 2017, the Company issued a note payable in the amount of $25,000 in addition to a warrant to purchase 1,250,000 shares of the Company’s common stock at at an exercise price of $0.40 per share and a term of five years. The notes bear no interest and are due on June 30, 2017. In accordance with FASB ASC 470-20, “Debt with Conversion and Other Options,” the proceeds of notes payable with detachable stock purchase warrants have been allocated between the two based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at the time of issuance. The portion allocated to the warrants has been accounted for as a discount to the notes payable and amortized over the term of the notes. The warrants were valued at $21,300 fair value, using the Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 202.1% , risk free interest rate of 1.97% and expected option life of 5 years. The warrant values were treated as a discount to the value of the note payable in accordance with FASB ASC 835-30-25, Recognition and were accreted over the term of the note payable for financial statement purposes. As of March 31, 2017 and December 31, 2016, accrued interest on notes payable was $31,983 and $29,668. Interest expense including accretion of debt discount for the three months ended March 31, 2017 and 2016 was $66,544 and $1,000.

EMBEDDED DERIVATIVE LIABILITY

EMBEDDED DERIVATIVE LIABILITY	3 Months Ended
	Mar. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
EMBEDDED DERIVATIVE LIABILITY	NOTE 5 – EMBEDDED DERIVATIVE LIABILITY The conversion feature of the 0% Series C Convertible Preferred Stock (“Series C”) is an embedded derivative, which due to anti-dilution adjustments is classified as a liability in accordance with FASB ASC Topic 815, “Derivatives and Hedging” and ASU 2014-16, and was valued in accordance with FASB ASC 470, “Debt”, as a beneficial conversion feature at a combined fair market value of $1,235,000 as of February 2016. This was classified as an embedded derivative liability and a discount to Series C. Because the Series C can be converted at any time, the full amount was accreted and classified as a reduction to the discount on Series C and a deemed dividend. The conversion feature of the 0% Series D Convertible Preferred Stock (“Series D”) is an embedded derivative, which due to anti-dilution adjustments is classified as a liability in accordance with FASB ASC Topic 815, “Derivatives and Hedging” and ASU 2014-16, and was valued in accordance with FASB ASC 470, “Debt”, as a beneficial conversion feature at a combined fair market value of $181,942 as of October 24, 2016. This was classified as an embedded derivative liability and a discount to Series D. Because the Series D can be converted at any time, the full amount was accreted and classified as a reduction to the discount on Series D and a deemed dividend. In addition, the embedded derivative liability must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of March 31, 2017 and December 31, 2016, the fair value of the embedded derivative liability was $250,000 and $228,718. For the three March 31, 2017 and 2016, the Company realized expense $21,282 and $463,000 relative to the embedded derivative liability.

WARRANT LIABILITY

WARRANT LIABILITY	3 Months Ended
	Mar. 31, 2017
Warrants and Rights Note Disclosure [Abstract]
WARRANT LIABILITY	NOTE 6 – WARRANT LIABILITY On December 31, 2012, the Company entered into an Investment Agreement, a Technology and Service Agreement, a Patent and Technology License Agreement and an Asset Purchase Agreement (collectively, the “VFM Agreements”) with VerifyMe, Inc. – Texas (“VFM”) on the same date entered into a Technology and Service Agreement with Zaah Technologies, Inc. (collectively with the VFM Agreements, the “Agreements”). The Agreements contemplate warrant issuances by the Company for the purchase of common stock. Warrants exercisable for 627,451 shares of common stock associated with these Agreements are subject to anti-dilution adjustments outlined in the Agreements. In accordance with FASB ASC 815, the warrants were classified as a liability in the total amount of $2.4 million at December 31, 2012. In addition, the warrants must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of March 31, 2017 and December 31, 2016, the fair value of the warrant liability was $21,345 and $22,063. The 392,157 warrants associated with the Company’s Series A Convertible Preferred Stock were also classified as a liability since they were subject to anti-dilutive adjustments outlined in the warrant agreement and valued at a fair market value of $2,995,791 at January 31, 2013. In addition, the warrants must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of March 31, 2017 and December 31, 2016 the fair value of the warrants was $14,722 and $18,107. On January 1, 2014, the Company issued warrants to purchase 74,697 shares of Common Stock as consideration for technology received from VFM under the VFM Patent and Technology License Agreement dated December 31, 2012. The warrants are exercisable at $0.10 per share. The warrants are subject to anti-dilution adjustments outlined in the VFM Patent and Technology Agreement. In accordance with FASB ASC 815, the warrants were classified as a liability with an initial fair value of $444,000, which was immediately expensed as research and development costs. In addition, the warrants must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of March 31, 2017 and December 31, 2016, the fair value of the warrant liability was $5,504 and $4,885. Warrants to purchase 3,529 shares of Common Stock associated with the notes payable incurred on August 5, 2014, were revalued and at March 31, 2017 and December 31, 2016, the fair value of those warrants was $297 and $262. In conjunction with the issuance of Series C, the Company issued warrants to purchase 3,087,500 shares of the Company’s Common Stock. The warrants are subject to anti-dilution adjustments outlined in the warrant agreement. In accordance with FASB ASC 815 and ASU 2014-16, the warrants were classified as a liability with an initial fair value of $1,767,576, which was immediately expensed. In addition, the warrants must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of March 31, 2017 and December 31, 2016, the fair value of the warrant liability was $310,757 and $285,290. In conjunction with the issuance of Series D, the Company issued warrants to purchase 667,000 shares of the Company’s Common Stock. The warrants are subject to anti-dilution adjustments outlined in the warrant agreement. In accordance with FASB ASC 815 and ASU 2014-16, the warrants were classified as a liability with an initial fair value of $181,942, which was immediately expensed. In addition, the warrants must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of March 31, 2017 and December 31, 2016, the fair value of the warrant liability was $70,375 and $64,137.

CONVERTIBLE PREFERRED STOCK

CONVERTIBLE PREFERRED STOCK	3 Months Ended
	Mar. 31, 2017
CONVERTIBLE PREFERRED STOCK [Abstract]
CONVERTIBLE PREFERRED STOCK	NOTE 7 – CONVERTIBLE PREFERRED STOCK Subscription Agreement The Company entered into a Subscription Agreement with VerifyMe, Inc., a Texas corporation (“VFM”) on January 31, 2013 (the “Subscription Agreement”). Under the terms of the Subscription Agreement, VFM subscribed to purchase 392,157 shares of Series A Convertible Preferred Stock post 85-for-1 reverse stock split and a warrant to purchase 392,157 shares of Common Stock post 85-for-1 reverse stock split at an exercise price of $10.20 per share, for $1 million. Series A Convertible Preferred Stock On January 6, 2017, 13,000 shares of Series A Convertible Preferred Stock were converted into 260,000 shares of the Company’s Common Stock. On March 29, 2017, 20,000 shares of Series A Convertible Preferred Stock were converted into 400,000 shares of the Company’s Common Stock. Series B Convertible Preferred Stock There were no conversions of Series B Convertible Preferred Stock during the three months ended March 31, 2017. Series C Convertible Preferred Stock On February 9, 2016, the Company issued 2,587,500 shares of Series C, par value $0.001 per share, at a purchase price of $0.40 per share with gross proceeds to the Company of $1,035,000. In connection with the sale of the Series C, the Company issued to the purchasers warrants to purchase in the aggregate 2,587,500 shares of the Company’s common stock at an exercise price of $0.40 per share. Further, as a part of the same offering, on February 29, 2016, the Company issued 500,000 shares of Series C, at a purchase price of $0.40 per share with gross proceeds to the Company of $200,000. In connection with the sale of the Series C, the Company issued to the purchasers warrants to purchase in the aggregate 500,000 shares of the Company’s common stock at an exercise price of $0.40 per share. Each share of Series C is convertible into one share of common stock. The Series C provides for certain adjustments that may be made to the exercise price and the number of shares issuable upon exercise due to future corporate events or otherwise, including, for a prescribed period of time, upon the issuance of securities at a price that is less than the exercise price of the Series C. In addition, the Company incurred stock issuance costs of $17,500 related to the issuance of Series C.

FAIR VALUE OF FINANCIAL INSTRUM

FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	NOTE 8 – FAIR VALUE OF FINANCIAL INSTRUMENTS Derivative Liabilities For purposes of determining whether certain instruments are derivatives for accounting treatment, the Company follows the accounting standard that provides guidance for determining whether an equity-linked financial instrument, or embedded feature, is indexed to an entity’s own stock. The standard applies to any freestanding financial instruments or embedded features that have the characteristics of a derivative, and to any freestanding financial instruments that are potentially settled in an entity’s own common stock. Liabilities measured at fair value on a recurring basis are summarized as follows: March 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Embedded derivative liability related to beneficial conversion option $ - $ - $ 250,000 $ 250,000 $ - $ - $ 228,718 $ 228,718 Derivative liability related to fair value of warrants - - 423,000 423,000 - - 394,744 394,744 Total $ - $ - $ 673,000 $ 673,000 $ - $ - $ 623,462 $ 623,462 Total Balance at December 31, 2016 $ 623,462 Change in fair value of derivative liablities 49,538 Balance at March 31, 2017 $ 673,000 The Company has no assets that are measured at fair value on a recurring basis. There were no assets or liabilities measured at fair value on a non-recurring basis during the three months ended March 31, 2017. As of March 31, 2017, the beneficial conversion feature of Series C and Series D were treated as an embedded derivative liability and changes in the fair value were recognized in earnings. Because the fair value of the warrants issued in conjunction with Series C and Series D was in excess of the proceeds of Series C and Series D, the effective conversion price of the Series C and Series D is $0. The Series C and Series D shares are convertible into shares of the Company’s Common Stock, which did trade in an active securities market, therefore the embedded derivative liability was valued using the following market based inputs: March 31, 2017 Closing trade price of Common Stock $ 0.12 Effective Series C Preferred Stock Conversion price - Effective Series D Preferred Stock Conversion price - Intrinsic value of conversion option per share $ 0.12 As of March 31, 2017, the Company’s outstanding warrants were treated as derivative liabilities and changes in the fair value were recognized in earnings. These warrants did not trade in an active securities market, and as such, the Company estimated the fair value of these warrants using the Black-Scholes option pricing model and the following assumptions: March 31, 2017 Annual Dividend Yield 0.0 % Expected Life (Years) 1.3 - 2.6 Risk-Free Interest Rate 1.0% - 1.5 % Expected Volatility 226.2% - 246.0 % Expected volatility was based primarily on historical volatility. Historical volatility was computed using daily pricing observations for recent periods. The Company believes this method produced an estimate that was representative of the Company’s expectations of future volatility over the expected term of these warrants. The Company had no reason to believe future volatility over the expected remaining life of these warrants was likely to differ materially from historical volatility. The expected life was based on the remaining contractual term of the warrants. The risk-free rate was based on the U.S. Treasury rate that corresponded to the expected term of the warrants.

STOCK OPTIONS

STOCK OPTIONS	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS	NOTE 9 – STOCK OPTIONS The Company has options to purchase 11,765 shares of Common Stock outstanding under the 2003 Stock Option Plan. During 2013, the Board adopted a new omnibus incentive compensation plan that was ratified by the shareholders at the 2013 annual meeting, (the “2013 Plan”) which serves as the successor incentive compensation plan to the 2003 Plan. Under the 2013 Plan, the Company is authorized to grant awards of stock options, restricted stock, restricted stock units and other stock-based awards of up to an aggregate of 20,000,000 shares of Common Stock. The 2013 Plan is intended to permit stock options granted to employees under the 2013 Plan to qualify as incentive stock options. All options granted under the 2013 Plan, which are not intended to qualify as Incentive Stock Options, are deemed to be Non-Statutory Stock Options. As of March 31, 2017, under the 2013 Plan grants of restricted stock and options to purchase 3,512,500 shares of Common Stock have been issued and are unvested or unexercised, and 16,487,500 shares of Common Stock remain available for grants under the 2013 Plan. The 2013 Plan is administered by a committee of the Board (“Compensation Committee”) which determines the persons to whom awards will be granted, the number of awards to be granted and the specific terms of each grant, including the vesting thereof, subject to the provisions of the plan. In connection with Incentive Stock Options, the exercise price of each option may not be less than 100% of the fair market value of the Common Stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company). The aggregate fair market value (determined at the time of the grant) of stock for which an employee may exercise Incentive Stock Options under all plans of the company shall not exceed $1,000,000 per calendar year. If any employee shall have the right to exercise any options in excess of $100,000 during any calendar year, the options in excess of $100,000 shall be deemed to be Non-Statutory Stock Options, including prices, duration, transferability and limitations on exercise. The Company issued Non-Statutory Stock Options pursuant to contractual agreements with non-employees. Options granted under the agreements are expensed when the related service or product is provided. Determining the appropriate fair value of stock-based awards requires the input of subjective assumptions. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value represent management’s best estimates and involve inherent uncertainties and judgments. On January 31, 2017, the Company issued options to purchase 225,000 shares of Common Stock at an exercise price of $0.09 per share, with a term of five years, to a consultant, which vest over three months. The fair value of options issued was $19,727. These options were valued using the Black-Scholes option pricing model to calculate the grant-date fair value of the options, with the following assumptions: no dividend yield, expected volatility of 197.7%, risk-free interest rate of 1.90% and expected option life of five years. The options were revalued on February 28, 2017 and March 31, 2017 and it was determined that there was an increase in the value of the options of $2,307, which will be expensed over the remaining term of the options. On February 6, 2017, the Company issued options to purchase 250,000 shares of Common Stock at an exercise price of $0.068 per share and options to purchase 250,000 shares of Common Stock at an exercise price of $0.25, with a term of five years, to a consultant, which vest immediately. The fair value of options issued was $32,508. These options were valued using the Black-Scholes option pricing model to calculate the grant-date fair value of the options, with the following assumptions: no dividend yield, expected volatility of 198.0%, risk-free interest rate of 1.86% and expected option life of five years. The options were expensed immediately. For the three months ended March 31, 2017 and March 31, 2016 the Company expensed $51,597 and $335,828 with respect to the options. The following table summarizes the activities for our stock options for the three months ended March 31, 2017: Options Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price (in years) (in 000's) (1) Balance as of December 31, 2016 3,282,647 $ 0.52 7.9 Granted 725,000 0.14 Forfeited/cancelled (50,000 ) (0.57 ) Balance March 31, 2017 3,957,647 $ 0.45 7.2 $ 29 Exercisable at March 31, 2017 3,882,647 $ 0.46 7.3 $ 26 Exercisable at March 31, 2017 and expected to vest thereafter 3,882,647 $ 0.46 7.3 $ 26 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the closing stock price of $0.12 for the Company’s common stock on March 31, 2017. The following table summarizes the activities for the Company’s unvested stock options for the three months ended March 31, 2017: Unvested Options Weighted - Average Grant Number of Date Fair Shares Value (1) Balance December 31, 2016 - $ - Granted 725,000 0.07 Vested (650,000 ) (0.07 ) Cancelled/forfeited/expired - - Balance March 31, 2017 75,000 $ 0.07 As of March 31, 2017 there was $2,944 of unrecognized compensation cost related to outstanding stock options. This amount is expected to be recognized over a weighted-average period of 1 month. To the extent the actual forfeiture rate is different from what the Company has estimated, stock-based compensation related to these awards will be different from the Company’s expectations. The difference between the stock options exercisable at March 31, 2017 and the stock options exercisable and expected to vest relates to management’s estimate of options expected to vest in the future. The following table summarizes the activities for our warrants for the three months ended March 31, 2017: Warrants Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price in years) (in 000's) (1) Balance, December 31, 2016 9,216,452 $ 1.82 3.7 $ 10 Granted 7,250,000 0.40 Balance, March 31, 2017 16,466,452 $ 1.19 4.1 $ 11 Exercisable at March 31, 2017 16,466,452 $ 1.19 4.1 $ 11 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the closing stock price of $0.12 for the Company’s common stock on March 31, 2017. All warrants were vested on the date of grant. For the three months ended March 31, 2017 and 2016, the Company expensed $0 relative to the warrants in addition to previous income or expense related to the warrant liability.

OPERATING LEASES

OPERATING LEASES	3 Months Ended
	Mar. 31, 2017
Leases [Abstract]
OPERATING LEASES	NOTE 10 – OPERATING LEASES For the three months ended March 31, 2017 and 2016, total rent expense under leases amounted to $3,000 and $10,335. As of March 31, 2017, the Company was not obligated under any non-cancelable operating lease arrangements.

RELATED PARTIES

RELATED PARTIES	3 Months Ended
	Mar. 31, 2017
Related Parties
RELATED PARTIES	NOTE 11 – RELATED PARTIES As of March 31, 2017, the Company owed the current CEO $10,749 for services rendered, and the CFO $32,099 for services rendered. All of these amounts are included in accounts payable.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 12 – SUBSEQUENT EVENTS On April 26, 2017, the Company issued a secured promissory note (the “Note”) in the principal amount of $30,000 in exchange for a loan bearing 10% annual interest maturing October 31, 2017. The Note is secured by a first lien on all assets of the Company in accordance with a security agreement entered into in connection with the Note. In the event the Company completes a financing of at least $750,000 prior to maturity of the Note, the principal of the Note will automatically convert into a number of shares of common stock of the Company equivalent to an investment of $60,000 under the terms of such financing. In the event of such a conversion or a voluntary prepayment by the Company, the Company will also pay six months of interest payments on the $30,000 principal of the Note. On April 30, 2017, the Company renewed a consulting agreement for three months for 75,000 options per month, at an exercise price of $0.064, expiring in five years and vesting over three months.

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Nature of the Business	Nature of the Business The Company was incorporated in the State of Nevada on November 10, 1999. The Company is based in Downingtown, Pennsylvania and its common stock, par value $0.001 per share (the “Common Stock”), is traded on the over-the-counter market and quoted on the OTCQB under the ticker symbol “VRME.” The Company is a technology pioneer in the anti-counterfeiting industry. This broad market encompasses counterfeiting of physical and material goods and products, as well as counterfeiting of identity in digital transactions. The Company delivers security solutions for identification and authentication of people, products and packaging in a variety of applications in the security field for both digital and physical transactions. The products can be used to manage and issue secure credentials, including national IDs, passports, driver licenses and access control credentials. In addition, the Company has begun comprehensive authentication security software to secure physical and logical access to facilities, computer networks, internet sites and mobile applications. When the Company has sufficient working capital, management intends to devote resources resolving certain functionality issues which presently affect this technology. The Company’s activities are subject to significant risks and uncertainties, including the need to secure additional funding to operationalize the Company’s current technology.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions for Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The accompanying unaudited financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 as filed with the SEC. Operating results for the three months ended March 31, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017.
Basic and Diluted Net Income per Share of Common Stock	Basic and Diluted Net Income per Share of Common Stock The Company follows FASB ASC 260, “Earnings Per Share,” when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for each of the years presented, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , which simplifies several aspects of the accounting for share-based payment award transactions, including: (1) income tax consequences; (2) classification of awards as either equity or liabilities, and (3) classification on the statement of cash flows. For public companies, the amendments in the ASU are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. This pronouncement had no impact on the financial statements since any excess tax benefits were fully offset by the valuation allowance and not recognized for financial statement purposes.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted As of March 31, 2017, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2017.

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Payable [Abstract]
NOTES PAYABLE	Notes payable consist of the following as of March 31, 2017 and December 31, 2016: March 31, December 31, 2017 2016 Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due) 50,000 50,000 Notes payable; interest rate at 5% per annum; principal and accrued interest due at maturity on June 30, 2017 99,000 79,000 Notes payable; interest rate at 0% per annum; principal and accrued interest due at maturity on June 30, 2017 125,000 - Less: Unamortized discount (109,988 ) (60,931 ) 164,012 68,069 Less: Current portion 164,012 68,069 $ - $ -

FAIR VALUE OF FINANCIAL INSTR21

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Schedule of Liabilities Measured at Fair Value on a Recurring Basis	Liabilities measured at fair value on a recurring basis are summarized as follows: March 31, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Embedded derivative liability related to beneficial conversion option $ - $ - $ 250,000 $ 250,000 $ - $ - $ 228,718 $ 228,718 Derivative liability related to fair value of warrants - - 423,000 423,000 - - 394,744 394,744 Total $ - $ - $ 673,000 $ 673,000 $ - $ - $ 623,462 $ 623,462 Total Balance at December 31, 2016 $ 623,462 Change in fair value of derivative liablities 49,538 Balance at March 31, 2017 $ 673,000
Schedule of market based inputs used in valuation of embedded derivative liability	The Series C and Series D shares are convertible into shares of the Company’s Common Stock, which did trade in an active securities market, therefore the embedded derivative liability was valued using the following market based inputs: March 31, 2017 Closing trade price of Common Stock $ 0.12 Effective Series C Preferred Stock Conversion price - Effective Series D Preferred Stock Conversion price - Intrinsic value of conversion option per share $ 0.12
Schedule of Common Stock Purchase Warrants Valuation Assumptions	These warrants did not trade in an active securities market, and as such, the Company estimated the fair value of these warrants using the Black-Scholes option pricing model and the following assumptions: March 31, 2017 Annual Dividend Yield 0.0 % Expected Life (Years) 1.3 - 2.6 Risk-Free Interest Rate 1.0% - 1.5 % Expected Volatility 226.2% - 246.0 %

STOCK OPTIONS (Tables)

STOCK OPTIONS (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of the activities for stock options	The following table summarizes the activities for our stock options for the three months ended March 31, 2017: Options Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price (in years) (in 000's) (1) Balance as of December 31, 2016 3,282,647 $ 0.52 7.9 Granted 725,000 0.14 Forfeited/cancelled (50,000 ) (0.57 ) Balance March 31, 2017 3,957,647 $ 0.45 7.2 $ 29 Exercisable at March 31, 2017 3,882,647 $ 0.46 7.3 $ 26 Exercisable at March 31, 2017 and expected to vest thereafter 3,882,647 $ 0.46 7.3 $ 26 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the closing stock price of $0.12 for the Company’s common stock on March 31, 2017.
Summary of the activities for unvested stock options	The following table summarizes the activities for the Company’s unvested stock options for the three months ended March 31, 2017: Unvested Options Weighted - Average Grant Number of Date Fair Shares Value (1) Balance December 31, 2016 - $ - Granted 725,000 0.07 Vested (650,000 ) (0.07 ) Cancelled/forfeited/expired - - Balance March 31, 2017 75,000 $ 0.07
Summary of the activities for warrants	The following table summarizes the activities for our warrants for the three months ended March 31, 2017: Warrants Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price in years) (in 000's) (1) Balance, December 31, 2016 9,216,452 $ 1.82 3.7 $ 10 Granted 7,250,000 0.40 Balance, March 31, 2017 16,466,452 $ 1.19 4.1 $ 11 Exercisable at March 31, 2017 16,466,452 $ 1.19 4.1 $ 11 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the closing stock price of $0.12 for the Company’s common stock on March 31, 2017.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Common stock, par value	$ 0.001	$ 0.001

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Income Tax Disclosure [Abstract]
Income Tax Expense (Benefit)	$ 0
Unrecognized tax benefits	0
Interest or penalties related to unrecognized tax benefits	0
Change in unrecognized tax benefits	0
Accrual for uncertain tax positions	$ 0

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($)	1 Months Ended		3 Months Ended
	Feb. 13, 2017	Jan. 31, 2017	Mar. 31, 2017	Mar. 31, 2016	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Proceeds from issuance of notes payable			$ 145,000
Accumulated discount, notes payable (in dollars)			(109,988)			$ 60,931
Interest expense			66,544	$ 1,000
Note payable balance			164,012			68,069
Accrued interest			$ 31,983			$ 29,668
Warrant [Member] | Note [Member]
Debt Instrument [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Expected volatility	197.40%		202.10%
Risk-free interest rate	1.88%		1.97%
Expected warrant term	5 years	5 years	5 years
Proceeds from issuance of notes payable	$ 100,000	$ 20,000	$ 25,000
Number of common stock called by warrants (in shares)	5,000,000	1,000,000	1,250,000
Exercise price (in dollars per share)	$ 0.40	$ 0.40	$ 0.40
Fair value of warrant liability	$ 76,390	$ 15,895	$ 21,300
Interest rate, notes payable					5.00%
Warrant [Member] | Note [Member] | Minimum [Member]
Debt Instrument [Line Items]
Expected volatility		197.50%
Risk-free interest rate		1.94%
Warrant [Member] | Note [Member] | Maximum [Member]
Debt Instrument [Line Items]
Expected volatility		197.70%
Risk-free interest rate		1.90%

NOTES PAYABLE (Schedule of Note

NOTES PAYABLE (Schedule of Notes Payable) (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Less: Unamortized discount	$ 109,988	$ (60,931)
Less: Current portion	164,012	68,069
Long-term portion
Adjustment [Member]
Debt Instrument [Line Items]
Less: Current portion	164,012	68,069
Series A Notes Payable Due At Maturity In October 2011 (Past Due) [Member]
Debt Instrument [Line Items]
Notes payable	50,000	50,000
Notes Payable Due June Thirty Thousand Seventeen [Member]
Debt Instrument [Line Items]
Notes payable	99,000	79,000
Notes Payable One Due Junel Thirty Thousand Seventeen [Member]
Debt Instrument [Line Items]
Notes payable	$ 125,000

NOTES PAYABLE (Schedule of No27

NOTES PAYABLE (Schedule of Notes Payable) (Details)	Mar. 31, 2017	Dec. 31, 2016
Series A Notes Payable Due At Maturity In October 2011 (Past Due) [Member]
Debt Instrument [Line Items]
Interest rate	8.00%	8.00%
Notes Payable Due At Maturity In June 30, 2017 [Member]
Debt Instrument [Line Items]
Interest rate	5.00%	5.00%
Notes Payable One Due Junel Thirty Thousand Seventeen [Member]
Debt Instrument [Line Items]
Interest rate	0.00%	0.00%

EMBEDDED DERIVATIVE LIABILITY (

EMBEDDED DERIVATIVE LIABILITY (Details) - USD ($)	1 Months Ended		3 Months Ended
	Oct. 24, 2016	Feb. 29, 2016	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Beneficial conversion feature at a combined fair market value	$ 181,942	$ 1,235,000
Deemed dividend distribution				$ 1,235,000
Fair value of the embedded derivative liability			250,000		$ 228,718
Change in fair value of embedded derivative liability			$ 21,282	$ 463,000
Series C Convertible Preferred Stock [Member]
Dividend rate percentage			0.00%
Series D Convertible Preferred Stock [Member]
Dividend rate percentage			0.00%
Deemed dividend distribution			$ 181,942

WARRANT LIABILITY (Details)

WARRANT LIABILITY (Details) - USD ($)	1 Months Ended	3 Months Ended
	Jan. 31, 2014	Mar. 31, 2017	Dec. 31, 2016	Feb. 29, 2016	Feb. 09, 2016	Aug. 05, 2014	Jan. 02, 2014	Jan. 31, 2013	Dec. 31, 2012
Verify Me [Member] | Agreements [Member] | Research and Development Expense [Member]
Major Agreements [Line Items]
Initial fair value of warrant expensed	$ 444,000
Verify Me [Member] | Warrants Issued on January 1, 2014 [Member]
Major Agreements [Line Items]
Fair value of warrant liability		$ 5,504	$ 4,885
Number of warrants issued							74,697
Exercise price							$ 0.10
Zaah Technologies [Member] | Agreements [Member]
Major Agreements [Line Items]
Warrant liability									$ 2,400,000
Number of common stock shares purchased under warrants (in shares)		627,451
Fair value of warrant liability		$ 21,345	22,063
Notes Payable [Member] | Debt Instrument Date Five August 2014 [Member]
Major Agreements [Line Items]
Number of common stock shares purchased under warrants (in shares)						3,529
Fair value of warrant liability		$ 297	262
Series C Convertible Preferred Stock [Member]
Major Agreements [Line Items]
Number of common stock shares purchased under warrants (in shares)		3,087,500		500,000	2,587,500
Fair value of warrant liability		$ 310,757	285,290
Initial fair value of warrant expensed		1,767,576
Exercise price				$ 0.40	$ 0.40
Series A Convertible Preferred Stock [Member]
Major Agreements [Line Items]
Number of common stock shares purchased under warrants (in shares)								392,157
Fair value of warrant liability		$ 14,722	18,107					$ 2,995,791
Series D Convertible Preferred Stock [Member]
Major Agreements [Line Items]
Number of common stock shares purchased under warrants (in shares)		667,000
Fair value of warrant liability		$ 70,375	$ 64,137
Initial fair value of warrant expensed		$ 181,942

CONVERTIBLE PREFERRED STOCK (De

CONVERTIBLE PREFERRED STOCK (Details) - USD ($)	Jan. 06, 2017	Feb. 29, 2016	Feb. 09, 2016	Mar. 29, 2017	Jan. 31, 2013	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Class of Stock [Line Items]
Stock issuance costs							$ 17,500
Common Stock [Member]
Class of Stock [Line Items]
Conversion of shares of preferred stock to common stock, shares						660,000
Verify Me [Member] | Subscription Agreement [Member] | Common Stock [Member]
Class of Stock [Line Items]
Exercise price					$ 10.20
Value of shares issued					$ 1,000,000
Verify Me [Member] | Subscription Agreement [Member] | Pre Reverse Stock Split [Member] | Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Number of preferred stock purchased					392,157
Series B Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of Stock, Shares Converted
Conversion of shares of preferred stock to common stock, shares
Preferred stock, par value						$ 0.001		$ 0.001
Preferred stock, shares authorized						82		85
Series A Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of Stock, Shares Converted	13,000			20,000
Conversion of shares of preferred stock to common stock, shares	260,000			400,000		(33,000)
Preferred stock, par value						$ 0.001		$ 0.001
Preferred stock, shares authorized						37,564,767		37,564,767
Number of common stock called by warrants (in shares)					392,157
Series C Convertible Preferred Stock [Member]
Class of Stock [Line Items]
Conversion of shares of preferred stock to common stock, shares
Shares of convertible preferred stock issued		500,000	2,587,500
Preferred stock, par value			$ 0.001			$ 0.001		$ 0.001
Preferred stock, shares authorized						7,500,000		7,500,000
Proceeds from sale of Series C Convertible Preferred Stock		$ 200,000	$ 1,035,000				$ 1,235,000
Number of common stock called by warrants (in shares)		500,000	2,587,500			3,087,500
Purchase price (in dollars per share)		$ 0.40	$ 0.40
Exercise price		$ 0.40	$ 0.40
Stock issuance costs			$ 17,500

FAIR VALUE OF FINANCIAL INSTR31

FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative liability related to beneficial conversion option	$ 250,000	$ 228,718
Derivative liability related to fair value of warrants	423,000	394,744
Total	673,000	623,462
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative liability related to beneficial conversion option
Derivative liability related to fair value of warrants
Total
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative liability related to beneficial conversion option
Derivative liability related to fair value of warrants
Total
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Embedded derivative liability related to beneficial conversion option	250,000	228,718
Derivative liability related to fair value of warrants	423,000	394,744
Total	$ 673,000	$ 623,462

FAIR VALUE OF FINANCIAL INSTR32

FAIR VALUE OF FINANCIAL INSTRUMENTS (Fair Value Measurements within Fair Value Hierarchy of Derivative Liabilities Using Level 3 Inputs) (Details)	3 Months Ended
	Mar. 31, 2017USD ($)
Fair Value Disclosures [Abstract]
Balance at December 31, 2016	$ 623,462
Change in fair value of derivative liabilities	49,538
Balance at March 31, 2017	$ 673,000

FAIR VALUE OF FINANCIAL INSTR33

FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Market Based Inputs used in Valuation of Embedded Derivative Liability) (Details)	Mar. 31, 2017$ / shares
Fair Value Disclosures [Abstract]
Closing trade price of Common Stock	$ 0.12
Effective Series C Preferred Stock Conversion price
Effective Series D Preferred Stock Conversion price
Intrinsic value of conversion option per share	$ 0.12

FAIR VALUE OF FINANCIAL INSTR34

FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Common Stock Purchase Warrants Valuation Assumptions) (Details) - Warrant [Member]	3 Months Ended
	Mar. 31, 2017
Fair Value, Option, Quantitative Disclosures [Line Items]
Annual Dividend Yield	0.00%
Minimum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Expected Life (Years)	1 year 3 months 18 days
Risk-Free Interest Rate	1.00%
Expected Volatility	226.20%
Maximum [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Expected Life (Years)	2 years 7 months 6 days
Risk-Free Interest Rate	1.50%
Expected Volatility	246.00%

STOCK OPTIONS (Narrative) (Deta

STOCK OPTIONS (Narrative) (Details) - USD ($)	Feb. 06, 2017	Jan. 31, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option, expense			$ 0	$ 0
Closing stock price per share			$ 0.12
Nonvested Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued			725,000
Unrecognized compensation cost related to outstanding stock options			$ 2,944
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Increase in value of options			$ 2,307
Number of options issued	250,000	225,000	725,000
Exercise price of options issued	$ 0.068	$ 0.09	$ 0.14
Expected option life (in years)	5 years
Fair value of option issued expensed immediately	$ 53,731
Dividend yield	0.00%	0.00%
Expected volatility	202.90%	197.70%
Risk free interest rate	1.22%	1.90%
Expected Life (Years)	5 years	5 years
Option, expense			$ 51,597	$ 335,828
Closing stock price per share			$ 0.12
Fair value of options	$ 32,508	$ 19,727
Maximum percentage of outstanding stock			100.00%
Maximum aggregate fair market value			$ 1,000,000
Maximum fair value of options per employee			$ 100,000
Employee Stock Option [Member] | Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Closing stock price per share			$ 0.12
Employee Stock Option [Member] | Stock Option 2003 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be granted under plan			11,765
Number of common shares that can be purchased through equity awards that have been issued, unvested or unexercised			3,512,500
Employee Stock Option [Member] | Majority Shareholder [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum percentage of outstanding stock			110.00%
Employee Stock Option One [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of options issued	250,000
Exercise price of options issued	$ 0.25
Expected option life (in years)	5 years
Dividend yield	0.00%
Expected volatility	198.00%
Risk free interest rate	1.86%
Stock Compensation Plan [Member] | Stock Option 2013 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to be granted under plan					20,000,000
Number of options available to be issued			16,487,500

STOCK OPTIONS (Summary of Activ

STOCK OPTIONS (Summary of Activities for Stock Options) (Details) - Employee Stock Option [Member] - USD ($)		Feb. 06, 2017	Jan. 31, 2017	Mar. 31, 2017
Number of Shares
Balance, beginning			3,282,647	3,282,647
Granted		250,000	225,000	725,000
Forfeited/cancelled				(50,000)
Balance March 31, 2017				3,957,647
Balance March 31, 2017				3,882,647
Exercisable at March 31, 2017 and expected to vest thereafter				3,882,647
Weighted-Average Exercise Price
Balance, beginning			$ 0.52	$ 0.52
Granted		$ 0.068	$ 0.09	0.14
Forfeited/cancelled				(0.57)
Balance March 31, 2017				0.45
Exercisable at March 31, 2017				0.46
Exercisable at March 31, 2017 and expected to vest thereafter				$ 0.46
Weighted Average Remaining Contractual Term (in years)
Balance, beginning				7 years 10 months 24 days
Balance March 31, 2017				7 years 2 months 12 days
Exercisable at March 31, 2017				7 years 3 months 18 days
Exercisable at March 31, 2017 and expected to vest thereafter				7 years 3 months 18 days
Aggregate Intrinsic Value (in 000's)
Balance March 31, 2017	[1]			$ 29
Exercisable at March 31, 2017	[1]			26
Exercisable at March 31, 2017 and expected to vest thereafter	[1]			$ 26
[1]	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the closing stock price of $0.12 for the Company's common stock on March 31, 2017.

STOCK OPTIONS (Schedule of Unve

STOCK OPTIONS (Schedule of Unvested Stock Option Activity) (Details) - Nonvested Stock Options [Member]	3 Months Ended
	Mar. 31, 2017$ / sharesshares
Number of Shares
Balance, Beginning | shares
Granted | shares	725,000
Vested | shares	(650,000)
Cancelled/forfeited/expired | shares
Balance, Ending | shares	75,000
Weighted-Average Grant Date Fair Value
Balance, Beginning | $ / shares
Granted | $ / shares	0.07
Vested | $ / shares	(0.07)
Cancelled/forfeited/expired | $ / shares
Balance, Ending | $ / shares	$ 0.07

STOCK OPTIONS (Summary of Act38

STOCK OPTIONS (Summary of Activities for Warrants) (Details) - Warrant [Member]	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
Number of Shares
Balance, December 31, 2016 | shares	9,216,452
Granted | shares	7,250,000
Balance, March 31, 2017 | shares	16,466,452
Exercisable at March 31, 2017 | shares	16,466,452
Weighted-Average Exercise Price
Balance, December 31, 2016 | $ / shares	$ 1.82
Granted | $ / shares	0.40
Balance, March 31, 2017 | $ / shares	1.19
Exercisable at March 31, 2017 | $ / shares	$ 1.19
Weighted-Average Remaining Contractual Term (in years)
Balance, December 31, 2016	3 years 8 months 12 days
Balance, March 31, 2017	4 years 1 month 6 days
Exercisable at March 31, 2017	4 years 1 month 6 days
Aggregate Intrinsic Value
Balance, December 31, 2016 | $	$ 10	[1]
Balance, March 31, 2017 | $	11	[1]
Exercisable at March 31, 2017 | $	$ 11	[1]
[1]	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying options and the closing stock price of $0.12 for the Company's common stock on March 31, 2017.

OPERATING LEASES (Details)

OPERATING LEASES (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Leases [Abstract]
Total rent expense under leases	$ 3,000	$ 10,335

RELATED PARTIES (Details)

RELATED PARTIES (Details)	Mar. 31, 2017USD ($)
Chief Executive Officer [Member]
Due to related parties	$ 10,749
Chief Financial Officer [Member]
Due to related parties	$ 32,099

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - USD ($)	1 Months Ended
	Apr. 30, 2017	Apr. 26, 2017
Note [Member]
Principal amount of secured promissory note		$ 30,000
Loan bearing interest rate		10.00%
Maturity date		Oct. 31, 2017
Proceeds from issuance of debt		$ 750,000
Converted amount of number of shares of common stock		60,000
Interest expense debt		$ 30,000
Consultant [Member]
Amount of renewed consulting agreement per month	$ 75,000
Exercise price	$ 0.064
Term period for consulting agreement	5 years