VerifyMe (VRME) 10-Q 10 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
Document And Entity Information
Entity Registrant Name	VerifyMe, Inc.
Entity Central Index Key	1,104,038
Document Type	10-Q
Trading Symbol	VRME
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		101,673,206
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,018

Balance Sheets (Unaudited)

Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 2,316,301	$ 693,001
Accounts Receivable	5,667
Prepaid expenses and other current assets	18,668	18,668
Inventory	11,769
TOTAL CURRENT ASSETS	2,352,405	711,669
OTHER ASSETS
Patents and Trademarks, net of accumulated amortization of $248,225 and $237,331 as of June 30, 2018 and December 31, 2017	181,438	191,507
TOTAL ASSETS	2,533,843	903,176
CURRENT LIABILITIES
Accounts payable and accrued expenses	440,556	923,202
Notes payable	50,000	50,000
Common Stock payable		122,478
TOTAL CURRENT LIABILITIES	490,556	1,095,680
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock of $.001 par value; 675,000,000 authorized; 101,165,202 and 53,873,872 issued, 100,814,662 and 53,523,332 shares outstanding as of June 30, 2018 and December 31, 2017	101,165	53,522
Additional paid in capital	60,305,122	56,198,126
Treasury stock as cost (350,540 shares at June 30, 2018 and December 31, 2017)	(113,389)	(113,389)
Accumulated deficit	(58,249,916)	(56,331,088)
STOCKHOLDERS' EQUITY (DEFICIT)	2,043,287	(192,504)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	2,533,843	903,176
Series A Convertible Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Convertible Preferred Stock	305	325
Series B Convertible Preferred Stock [Member]
STOCKHOLDERS' EQUITY (DEFICIT)
Convertible Preferred Stock

Balance Sheets (Unaudited) (Par

Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Accumulated amortization, patent and trademarks	$ 248,225	$ 237,331
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	675,000,000	675,000,000
Common stock, shares issued	101,165,202	53,873,872
Common stock, shares outstanding	100,814,662	53,523,332
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	304,778	324,778
Preferred stock, shares outstanding	304,778	324,778
Series B Convertible Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	85	85
Preferred stock, shares issued	0.85	0.92
Preferred stock, shares outstanding	0.85	0.92

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
NET REVENUE
Sales		$ 6,799		$ 6,799
COST OF SALES		2,000		2,000
GROSS PROFIT		4,799		4,799
OPERATING EXPENSES
General and administrative	[1]	525,760	482,384	1,021,334	628,831
Legal and accounting		163,770	82,162	297,474	91,206
Payroll expenses	[1]	99,803	20,252	191,854	43,062
Research and development		16,233	8,641	28,429	17,310
Sales and marketing		25		8,067	1,535
Total Operating expenses		805,591	593,439	1,547,158	781,944
LOSS BEFORE OTHER INCOME (EXPENSE)		(800,792)	(593,439)	(1,542,359)	(781,944)
OTHER (EXPENSE) INCOME
Interest (expense) income, net		1,074	(145,772)	283	(212,316)
Settlement agreement with shareholders				(779,000)
Gain on accounts payable forgiveness		4,523		402,248
Change in fair value of warrants			130,000		101,744
Change in fair value of embedded derivative liability			100,702		79,420
TOTAL OTHER INCOME (EXPENSE)		5,597	84,930	(376,469)	(31,152)
NET LOSS		(795,195)	(508,509)	(1,918,828)	(813,096)
Less: Deemed dividend on convertible preferred shares			(144,219)		(144,219)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS		$ (795,195)	$ (652,728)	$ (1,918,828)	$ (957,315)
LOSS PER SHARE
BASIC (in dollars per share)		$ (0.01)	$ (0.05)	$ (0.02)	$ (0.09)
DILUTED (in dollars per share)		$ (0.01)	$ (0.05)	$ (0.02)	$ (0.09)
WEIGHTED AVERAGE COMMON SHARE OUTSTANDING
BASIC (in shares)		95,910,130	12,598,466	86,488,400	10,220,611
DILUTED (in shares)		95,910,130	12,598,466	86,488,400	10,220,611
Share related payments		$ 215,809	$ 284,373	$ 505,712	$ 335,970
[1]	Includes non-cash share-based compensation of $215,810 and $505,713 for the three and six months ended June 30, 2018 and $284,373 and $335,970 for the three and six months ended June 30, 2017.

Statements of Cash Flows (Unaud

Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,918,828)	$ (813,096)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	44,119
Fair value of options and warrants issued in exchange for services	226,188	335,970
Fair value of restricted stock and restricted stock units issued in exchange for services	235,406
Gain on accounts payable forgiveness	(402,248)
Share-based payment for settlement agreement with shareholders	279,000
Accretion of discount on notes payable		204,516
Change in fair value of warrant liability		(101,744)
Change in fair value of embedded derivative liability		(79,420)
Amortization and depreciation	10,894	6,331
Changes in operating assets and liabilities:
Accounts Receivable	(5,667)
Inventory	(11,769)	300
Prepaid expenses		(14,904)
Accounts payable and accrued expenses	(80,398)	180,598
Net cash used in operating activities	(1,623,303)	(281,449)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Patents	(825)
Net cash used in investing activities	(825)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of warrants	2,093,217	281,000
Proceeds from sale of common stock	1,154,211	531,250
Stock issuance costs		(15,128)
Net cash provided by financing activities	3,247,428	797,122
NET INCREASE IN CASH AND CASH EQUIVALENTS	1,623,300	515,673
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	693,001	22,644
CASH AND CASH EQUIVALENTS - END OF PERIOD	2,316,301	538,317
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for: Interest
Cash paid during the year for: Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Cashless Exercise of Stock Options	4,028
Common Stock and Warrants Issued for Common Stock Payable	122,478
Deemed dividend distribution on issuance of common stock for conversion of Series C and Series D		525,630
Revaluation of embedded derivative liability upon conversion of Series C Convertible Preferred Stock		137,625
Revaluation of embedded derivative liability upon conversion of Series D Convertible Preferred Stock		11,673
Revaluation of warrant liability upon conversion of Series C Convertible Preferred Stock		189,008
Revaluation of warrant liability upon conversion of Series D Convertible Preferred Stock		43,105
Warrants issued as discount to notes payable		113,585
Conversion of accounts payable and accrued expenses to common stock		80,750
Conversion of notes payable and accrued expenses to common stock		396,101
Series A Convertible Preferred Stock [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Convertible Preferred Stock converted to common stock	400	1,060
Series B Convertible Preferred Stock [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Convertible Preferred Stock converted to common stock	599
Series C Convertible Preferred Stock [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Convertible Preferred Stock converted to common stock		12,014
Revaluation of embedded derivative liability upon conversion of Series C Convertible Preferred Stock		137,625
Revaluation of warrant liability upon conversion of Series C Convertible Preferred Stock		189,008
Series D Convertible Preferred Stock [Member]
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES
Convertible Preferred Stock converted to common stock		1,810
Revaluation of embedded derivative liability upon conversion of Series C Convertible Preferred Stock		11,673
Revaluation of warrant liability upon conversion of Series C Convertible Preferred Stock		$ 43,105

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2018
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 Rochester, New York 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. 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 is able to deliver security solutions for identification and authentication of people, products and packaging in a variety of applications in the security field for physical transactions and owns digital patents which are in the same field. The products can be used to manage and issue secure credentials, including national IDs, passports, driver licenses and access control credentials, as well as comprehensive authentication security software to secure physical and logical access to facilities, computer networks, internet sites and mobile applications. The accompanying unaudited interim financial statements (the “Interim Statements”) have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by Generally Accepted Accounting Principles (“GAAP”) for complete financial statements are not included herein. The Interim Statements should be read in conjunction with the financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2018. The accompanying interim financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The interim results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any future interim periods. The Company’s activities are subject to significant risks and uncertainties, including the need to secure additional funding to further develop the Company’s patents. Basis of Presentation The accompanying financial statements are presented in accordance with GAAP. Revenue Recognition The Company accounts for revenues according to ASC Topic 606, “ Revenue from Contracts with Customers” The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. During the three and six months ended June 30, 2018, the Company’s revenues were primarily made up of canisters sold that will allow our customer to print labels with the Company’s technology. 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 periods 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. For the three months and six months ended June 30, 2018 and 2017, there were shares potentially issuable, that could dilute basic earnings per share in the future that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive to the Company’s losses during the years presented. For the three and six months ended June 30, 2018 there were approximately 42,703,000 anti-dilutive shares consisting of 18,014,000 relating to options, 11,375,000 relating to warrants and 13,314,000 relating to preferred share agreements. For the three and six months ended June 30, 2017 there were approximately 60,570,000 anti-dilutive shares consisting of 18,733,000 relating to options, 27,128,000 relating to warrants, and 14,709,000 relating to preferred share agreements. Recently Issued Accounting Pronouncements Not Yet Adopted As of June 30, 2018, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2018.

PATENTS AND TRADEMARKS

PATENTS AND TRADEMARKS	6 Months Ended
	Jun. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Patents and Trademark	NOTE 2 – PATENTS AND TRADEMARKS The current granted patent portfolio consists of 12 granted U.S. patents and two pending patents applications. The Company has recently received notice that one of its core printing technology patents has been granted in the European Union and will issue in approximately eight designated countries. Management has also conducted a review of its intellectual patent portfolio and determined that several of the applications, even if issued, were not central to the pursuit of the Company’s anti-counterfeiting and diversion business and thus not cost effective and would not continue to be pursued. Accordingly, costs associated with the registration and legal defense of these patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents which were determined to be 17 to 19 years. During the six months ended June 30, 2018 and 2017, the Company capitalized $825 and $0 of patent costs and trademarks. Amortization expense for patents and trademarks was $5,860 and $8,543 for the three months ended June 30, 2018 and 2017 and 10,894 and 6,331 for the six months ended June 30, 2018 and 2017.

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2018
Notes Payable [Abstract]
NOTES PAYABLE	NOTE 3 – NOTES PAYABLE Notes payable consist of the following as of June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 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 Net 50,000 50,000 Less: Current portion (50,000 ) (50,000 ) $ - $ - June 30, 2018 and On October 28, 2009 the Company issued an unsecured note payable for $50,000. The note and accrued interest at 8% per annum were due in full in October 2011. The holder has never demanded payment. As of December 31, 2017, 1,749,683 shares of common stock and 1,749,683 of warrants issuable upon conversion for $120,000 principal and $2,478 accrued interest had not yet been issued in relation to the conversion of related party note payable held by a member of the Board, and as such the amount has been recorded as Common Stock payable included on the Balance Sheets as of December 31, 2017. During the six months ended June 30, 2018, those shares of common stock and warrants were issued and delivered. Pursuant to ASC 470-50- 40 Modifications and Extinguishments, the Company assessed the nature of the transaction and based on its assessment concluded it is a capital transaction in essence, and as such accounted for it through Additional Paid-In Capital with no gain or loss recognized in the Income Statement during the period. Interest expense including accretion of debt discount for the three and six months ended June 30, 2018 was $1,000 and $1,000. Interest expense including accretion of debt discount for the three and six months ended June 30, 2017 was $143,971 and $204,516.

CONVERTIBLE PREFERRED STOCK

CONVERTIBLE PREFERRED STOCK	6 Months Ended
	Jun. 30, 2018
CONVERTIBLE PREFERRED STOCK [Abstract]
CONVERTIBLE PREFERRED STOCK	NOTE 4 – CONVERTIBLE PREFERRED STOCK The Company has outstanding Series A Preferred Stock (the “Series A”) and Series B Preferred Stock (the “Series B”). As of June 30, 2018, there were 37,564,767 authorized and 304,778 outstanding shares of Series A and 85 authorized and 0.85 outstanding shares of Series B. Each share of Series A and B has limited voting rights, is entitled to participate with the common stock on liquidation and holders of Series A and B have beneficial ownership limitations. Series A Convertible Preferred Stock During the six months ended June 30, 2018, 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 During the six months ended June 30, 2018, 0.07 shares of Series B Convertible Preferred Stock were converted into 599,362 shares of the Company’s Common Stock.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2018
Equity [Abstract]
STOCKHOLDERS' EQUITY	NOTE 5 – STOCKHOLDERS’ EQUITY For the three and six months ended June 30, 2018 the Company expensed $248 and $8,625 relative to restricted stock units. The Company did not have any expenses related to restricted stock units for the three and six months ended June 30, 2017. During the six months ended, 37,500 restricted stock units were vested in relation to a consulting service agreement and a total of $8,625 was expensed. During the six months ended June 30, 2018, the Company granted a total of 600,000 restricted stock awards to two directors of the Company, each receiving 300,000 shares of restricted common stock, for joining the Board of Directors. On April 25, 2018 the Company approved the immediate vesting of all of the Company’s outstanding restricted common stock issued in 2017 and 2018 to non-employee directors of the Company. During the three months ended June 30, 2018, the Company granted a total of 1,425,000 shares of restricted common stock to the directors and the Chief Executive Officer of the Company for their services and 150,000 shares to one attorney, vesting quarterly over a one-year period. For the three and six months ended June 30, 2018, the Company expensed $183,866 and $226,781 relative to restricted common stock. The Company did not have any expenses related to restricted stock awards for the three and six months ended June 30, 2017. On September 8, 2017, the Company entered into a consulting agreement stipulating partial payment in restricted common stock. During the three and six months ended June 30, 2018, 49,500 and 169,500 shares have been issued in relation to this agreement. These shares were valued at the closing price of the Company’s common stock as they became due for a total expense of $44,119 for the six months ended June 30, 2018. In 2017 the Company authorized a private placement with a maximum offering amount of $2,100,000 allowing investors to purchase units consisting of 715,000 shares of common stock and 715,000 five-year warrants exercisable at $0.15 per share. In January 2018 the Company’s Board of Directors increased the size of the private placement by an additional amount beyond the $2,100,000 limit. During the six months ended June 30, 2018 the Company raised gross proceeds of $1,154,211 for the purchase of 16,513,311 shares of common stock and 16,513,311 warrants. Of these amounts, gross proceeds of $530,777 for the purchase of 7,589,545 shares of common stock and 7,590,111 warrants related to directors and relatives of the directors of the Company. In January 2018, the Chairman of the Board of Directors, made a cashless exercise of 5,000,000 options related to services in 2017, whereby the Chairman disposed of 972,222 shares to the Company as part of his exercise, amounting to an issuance of 4,027,778 shares, see Note 6. On January 30, 2018, the Company authorized a 30-day offer, beginning on February 20, 2018, to the holders of the Company’s outstanding warrants exercisable at $0.15 to exercise their warrants at $0.10 per share. This authorization was extended until the latter of 30 days after the receipt of all Investment Letters, as defined below, in connection with the Settlement Shares, as defined below, or June 30, 2018. For the six months ended June 30, 2018, 20,764,860 shares of warrants were exercised and a total of 20,764,860 shares of common stock were issued for gross proceeds of $2,076,486. Included in the above amounts are gross proceeds of $1,205,458 from directors which resulted in 12,054,576 warrants converted into the issuance of 12,054,576 common stock. The offer to exercise $0.15 warrants at $0.10 per share expired on June 30, 2018 and the Company did not extend the offer. In January 2018, a member of the Board exercised 104,876 warrants with an exercise price of $0.15 and a total of 104,876 shares of common stock were issued for gross proceeds of $15,731. On March 31, 2018, the Company entered into a Confidential Settlement Agreement (the “Settlement Agreement”) with Paul Klapper, a member of the Company’s Board, Stephen Silver, PFK Development Group, Ltd. (“PFKD”) and certain other parties named in the Settlement Agreement. Pursuant to the terms of the Settlement Agreement, the Company (i) paid a total of $500,000 (the “Settlement Amount”) to PFKD and Mr. Silver and (ii) issued them each 500,000 shares of the Company’s common stock (the “Settlement Shares”). The shares were valued at $279,000 whereby $139,500 related to common stock issued to a related party and $139,500 related to common stock issued to a third party. The Settlement Agreement provides for cancellation as of March 31, 2018 of certain revenue sharing agreements between the Company and each of Mr. Klapper, Mr. Silver and PFKD, and terminates the Company’s obligation to issue warrants to purchase 3.7 million shares of the Company’s common stock at an exercise price of $0.40 per share. Mr. Klapper joined the Board of Directors on July 14, 2017 and resigned as of March 31, 2018. In January 2018, the Company issued 1,749,683 shares of common stock and 1,749,683 warrants with an exercise price of $0.15 to Mr. Klapper relating to the Note payable conversion that took place in June 2017. On March 28, 2018, the Company accelerated the vesting of 150,000 shares of restricted common stock owned by Mr. Klapper. In April 2018, the former Chief Executive Officer of the Company exercised his warrants at an exercise price of $0.01 for gross proceeds of $1,000 resulting in an issuance of 100,000 shares.

STOCK OPTIONS, RESTRICTED STOCK

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS	NOTE 6– STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS During 2013, the Company adopted a new incentive compensation plan (the “2013 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. On November 14, 2017, the Executive Committee of the Company’s Board of Directors (the “Executive Committee”) adopted the 2017 Equity Incentive Plan (the “Plan”) which covers the potential issuance of 13 million shares of common stock. The Plan provides that directors, officers, employees, and consultants of the Company will be eligible to receive equity incentives under the Plan at the discretion of the Board or the Compensation Committee. The Compensation Committee may adopt rules and regulations to carry out the terms of the Plan. The Plan terminates on November 14, 2027 unless sooner terminated. The 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. During the three and six months ended June 30, 2018 the Company expensed $20,219 and $226,188 with respect to options. For the three and six months ended June 30, 2017, the Company expensed $284,373 and $335,970 with respect to the options. The following table presents the weighted-average assumptions used to estimate the fair value of the stock options granted during the six months ended June 30, 2018: Risk Free Interest Rate 2.39 % Expected Volatility 201.48 % Expected Life (in years) 5.0 Dividend Yield 0 % Weighted average estimated fair value of options during the period $ 0.18 Options Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price (in years) (1) Balance as of December 31, 2017 22,013,529 $ 0.11 Granted 1,000,000 0.21 Exercised (5,000,000 ) 0.07 Balance June 30, 2018 18,013,529 $ 0.13 Exercisable at June 30, 2018 15,513,529 $ 0.14 4.4 $ 1,838,287 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for options that were in-the-money at each respective period. As of June 30, 2018, the aggregate intrinsic value of options exercised under the Company’s stock option plans was $1,838,287. In the six months ended June 30, 2018, the Company amended the consulting agreement held with its Chief Operating Officer and granted 1,000,000 stock options with an exercise price of $0.2102 with 500,000 stock options vesting immediately and the remaining 500,000 stock options vesting on February 28, 2019 subject to continuing to provide consulting services. In January 2018, the Chairman of the Board made a cashless exercise of 5,000,000 options related to services in 2017, whereby the Chairman disposed of 972,222 shares to the Company as part of his exercise, amounting to an issuance of 4,027,778 shares, see Note 6. The following table summarizes the activities for the Company’s unvested stock options for the six months ended June 30 Unvested Options Weighted - Average Grant Number of Unvested Date Exercise Price Options Balance December 31, 2017 2,666,666 $ 0.06 Granted 1,000,000 0.21 Vested (1,166,666 ) 0.11 Balance June 30, 2018 2,500,000 $ 0.10 The following table summarizes the activities for the Company’s warrants for the six months Warrants Outstanding Number of Weighted- Average Exercise Price Weighted - Average Remaining Contractual Term in years) Aggregate Intrinsic Value (in 000's) Balance, December 31, 2017 32,292,580 $ 0.30 Granted 18,262,994 0.15 Exercised (20, 969,737 ) 0.10 Expired (627,451 ) 0.07 Cancelled/Forfeited (4,950,000 ) 0.40 Balance, June 30, 2018 24,008,386 $ 0. 25 4. 2 Exercisable at June 30, 2018 24,008,386 $ 0. 25 4. 2 $ 2,620 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.2101 for our common stock on June 30, 2018. For the six months ended June 30, 2018, the Company has raised gross proceeds of $1,154,211 for the purchase of 16,513,311 shares of common stock and 16,513,311 warrants in relation to the private placement. See Note 5. In January 2018, the Company issued 1,749,683 shares of common stock and 1,749,683 warrants with an exercise price of $0.15 to Mr. Klapper relating to the Note payable conversion that took place in June 2017. Additionally, 3,700,000 warrants were forfeited. See Note 5. For the six months ended June 30, 2018, 20,764,860 shares of warrants were exercised and a total of 20,764,860 shares of common stock issued for gross proceeds of $2,076,486 pursuant to the warrant discount program. See Note 5. In January 2018, a member of the Board exercised 104,876 warrants with an exercise price of $0.15 and a total of 104,876 shares of common stock were issued for gross proceeds of $15,731, see Note 5. In April 2018, the former Chief Executive Officer of the Company exercised his warrants at an exercise price of $0.01 for gross proceeds of $1,000 resulting in an issuance of 100,000 shares. During the six months ended June 30, 2018 an additional 1,250,000 warrants were forfeited in relation to a note payable conversion occurring in the prior year. All warrants were vested on the date of grant.

DEBT FORGIVENESS

DEBT FORGIVENESS	6 Months Ended
	Jun. 30, 2018
Debt Forgiveness
DEBT FORGIVENESS	NOTE 8 – DEBT FORGIVENESS During the six months ended June 30, 2018 the Company negotiated with certain vendors regarding balances outstanding for prior year services resulting in a Gain on accounts payable forgiveness included in the Income Statement for $402,248.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 8 – SUBSEQUENT EVENTS In January 30, 2018, the Company authorized a 30-day offer, beginning on February 20, 2018, to the holders of the Company’s outstanding warrants exercisable at $0.15 to exercise their warrants at $0.10. This authorization was since extended until the latter of 30 days after the receipt of all Investment Letters in connection with the Settlement Shares, or June 30, 2018. On July 19, 2018 the Company authorized certain holders whom have sent in their exercise notices an extension until July 27, 2018 to submit payment. As of July 27, 2018, the Company received gross proceeds of $2,616 and has issued 26,163 shares. On July 27, 2018 the Company cancelled 607,143 in relation to private placement in 2017. On July 31, 2018, Laurence Blickman, one of our directors, exercised 1,439,524 warrants held by an entity under his control at an exercise price of $0.15 per share for a total price of $215,929.

SUMMARY OF SIGNIFICANT ACCOUN14

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Nature of Business	Nature of the Business The Company was incorporated in the State of Nevada on November 10, 1999. The Company is based in Rochester, New York 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. 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 is able to deliver security solutions for identification and authentication of people, products and packaging in a variety of applications in the security field for physical transactions and owns digital patents which are in the same field. The products can be used to manage and issue secure credentials, including national IDs, passports, driver licenses and access control credentials, as well as comprehensive authentication security software to secure physical and logical access to facilities, computer networks, internet sites and mobile applications. The accompanying unaudited interim financial statements (the “Interim Statements”) have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain information and disclosures required by Generally Accepted Accounting Principles (“GAAP”) for complete financial statements are not included herein. The Interim Statements should be read in conjunction with the financial statements and notes thereto included in the Company’s latest Annual Report on Form 10-K for the year ended December 31, 2017 as filed with the Securities and Exchange Commission (the “SEC”) on April 16, 2018. The accompanying interim financial statements are unaudited; however, in the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The interim results for the three and six months ended June 30, 2018 are not necessarily indicative of the results to be expected for the year ending December 31, 2018 or for any future interim periods. The Company’s activities are subject to significant risks and uncertainties, including the need to secure additional funding to further develop the Company’s patents.
Basis of Presentation	Basis of Presentation The accompanying financial statements are presented in accordance with GAAP.
Revenue Recognition	Revenue Recognition The Company accounts for revenues according to ASC Topic 606, “ Revenue from Contracts with Customers” The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements: · identify the contract with a customer; · identify the performance obligations in the contract; · determine the transaction price; · allocate the transaction price to performance obligations in the contract; and · recognize revenue as the performance obligation is satisfied. During the three and six months ended June 30, 2018, the Company’s revenues were primarily made up of canisters sold that will allow our customer to print labels with the Company’s technology.
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 periods 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. For the three months and six months ended June 30, 2018 and 2017, there were shares potentially issuable, that could dilute basic earnings per share in the future that were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive to the Company’s losses during the years presented. For the three and six months ended June 30, 2018 there were approximately 42,703,000 anti-dilutive shares consisting of 18,014,000 relating to options, 11,375,000 relating to warrants and 13,314,000 relating to preferred share agreements. For the three and six months ended June 30, 2017 there were approximately 60,570,000 anti-dilutive shares consisting of 18,733,000 relating to options, 27,128,000 relating to warrants, and 14,709,000 relating to preferred share agreements.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted As of June 30, 2018, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2018.

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2018
Notes Payable [Abstract]
NOTES PAYABLE	Notes payable consist of the following as of June 30, 2018 and December 31, 2017: June 30, December 31, 2018 2017 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 Net 50,000 50,000 Less: Current portion (50,000 ) (50,000 ) $ - $ -

STOCK OPTIONS, RESTRICTED STO16

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of weighted-average assumptions used to estimate the fair value of the stock options granted	The following table presents the weighted-average assumptions used to estimate the fair value of the stock options granted during the six months ended June 30, 2018: Risk Free Interest Rate 2.39 % Expected Volatility 201.48 % Expected Life (in years) 5.0 Dividend Yield 0 % Weighted average estimated fair value of options during the period $ 0.18
Schedule of stock option activity	Options Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price (in years) (1) Balance as of December 31, 2017 22,013,529 $ 0.11 Granted 1,000,000 0.21 Exercised (5,000,000 ) 0.07 Balance June 30, 2018 18,013,529 $ 0.13 Exercisable at June 30, 2018 15,513,529 $ 0.14 4.4 $1,838,287 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for options that were in-the-money at each respective period. As of June 30, 2018, the aggregate intrinsic value of options exercised under the Company’s stock option plans was $1,838,287.
Summary of the activities of unvested stock options	The following table summarizes the activities for the Company’s unvested stock options for the six months ended June 30 Unvested Options Weighted - Average Grant Number of Unvested Date Exercise Price Options Balance December 31, 2017 2,666,666 $ 0.06 Granted 1,000,000 0.21 Vested (1,166,666 ) 0.11 Balance June 30, 2018 2,500,000 $ 0.10
Schedule of warrant activity	The following table summarizes the activities for the Company’s warrants for the six months Warrants Outstanding Number of Weighted- Average Exercise Price Weighted - Average Remaining Contractual Term in years) Aggregate Intrinsic Value (in 000's) Balance, December 31, 2017 32,292,580 $ 0.30 Granted 18,262,994 0.15 Exercised (20, 969,737 ) 0.10 Expired (627,451 ) 0.07 Cancelled/Forfeited (4,950,000 ) 0.40 Balance, June 30, 2018 24,008,386 $ 0. 25 4. 2 Exercisable at June 30, 2018 24,008,386 $ 0. 25 4. 2 $ 2,620 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.2101 for our common stock on June 30, 2018.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Common stock, par value	$ 0.001		$ 0.001		$ 0.001
Anti-dilutive common stock equivalents, excluded from the calculation of earnings per share	42,703,000	60,570,000	42,703,000	60,570,000
Preferred share agreements [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents, excluded from the calculation of earnings per share	13,314,000	14,709,000	13,314,000	14,709,000
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents, excluded from the calculation of earnings per share	11,375,000	27,128,000	11,375,000	27,128,000
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive common stock equivalents, excluded from the calculation of earnings per share	18,014,000	18,733,000	18,014,000	18,733,000

PATENTS AND TRADEMARKS (Details

PATENTS AND TRADEMARKS (Details Narrative)	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)Number	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)Number	Jun. 30, 2017USD ($)
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Number of patents granted | Number	12		12
Amortization method			Straight-line basis
Capitalized patent costs and trademarks			$ 825	$ 0
Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization method			Straight-line basis
Patents And Trademark [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization expense	$ 5,860	$ 8,543	$ 10,894	$ 6,331
Maximum [Member] | Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated lives of intangible assets			19 years
Minimum [Member] | Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Estimated lives of intangible assets			17 years

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Short-term Debt [Line Items]
Net	$ 50,000	$ 50,000
Less: Current portion	(50,000)	(50,000)
Notes payable, noncurrent
8% Series A Notes Payable Due on October 2011 [Member]
Short-term Debt [Line Items]
Net	$ 50,000	$ 50,000

NOTES PAYABLE (Details Narrativ

NOTES PAYABLE (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Oct. 28, 2009
Short-term Debt [Line Items]
Accrued interest	$ 35,667		$ 35,667		$ 33,667
Interest expense	(1,074)	$ 145,772	(283)	$ 212,316
Conversion of issuable of common stock					$ 120,000
8% Unsecured Note Payable Due on October 2011 [Member]
Short-term Debt [Line Items]
Face amount						$ 50,000
Interest expense	$ 1,000	$ 143,971	$ 1,000	$ 204,516
Common Stock [Member]
Short-term Debt [Line Items]
Conversion of shares issuable of common stock					1,749,683
Warrant [Member]
Short-term Debt [Line Items]
Conversion of shares issuable of common stock					1,749,683

CONVERTIBLE PREFERRED STOCK (De

CONVERTIBLE PREFERRED STOCK (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Preferred stock, voting rights	Each share of Series A and B has limited voting rights, is entitled to participate with the common stock on liquidation and holders of Series A and B have beneficial ownership limitations.
Series A Convertible Preferred Stock [Member]
Convertible Preferred Stock, authorized (in shares)	37,564,767	37,564,767
Convertible Preferred Stock, outstanding (in shares)	304,778	324,778
Conversion of stock, shares converted (in shares)	20,000
Conversion of shares of preferred stock to common stock (in shares)	400,000
Series B Convertible Preferred Stock [Member]
Convertible Preferred Stock, authorized (in shares)	85	85
Convertible Preferred Stock, outstanding (in shares)	0.85	0.92
Conversion of stock, shares converted (in shares)	0.07
Conversion of shares of preferred stock to common stock (in shares)	599,362

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	Mar. 31, 2018	Apr. 30, 2018	Jan. 31, 2018	Jun. 30, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Mar. 28, 2018	Jan. 30, 2018
Common stock issued				101,165,202	101,165,202		53,873,872
Proceeds from issuance of convertible stock					$ 2,093,217	$ 281,000
Exercise price									$ 0.15
Share-based payment for settlement agreement with shareholders					279,000
Shares issued during period value					$ 1,154,211
Shares issued during period					16,513,311
Third Party [Member]
Share-based payment for settlement agreement with shareholders	$ 279,000
Related Party [Member]
Share-based payment for settlement agreement with shareholders	$ 139,500
Warrant [Member]
Exercise price				$ 0.10	$ 0.10		$ 0.15		$ 0.10
Shares issued during period					16,513,311
Warrant [Member] | Common stock and warrant [Member]
Common stock sold					16,513,311		715,000
Warrant term							5 years
Restricted Stock [Member]
Option vesting								150,000
Warrant [Member] | Employee Stock Option [Member] | Chief Executive Officer [Member]
Exercise price		$ 0.01
Shares issued during period value		$ 1,000
Shares issued during period		100,000
Common Stock [Member] | Common stock and warrant [Member]
Common stock sold					16,513,311		715,000
Warrant term							5 years
Board of Director [Member]
Proceeds from issuance of convertible stock					$ 2,076,486
Issuance of shares cashless exercise of options related to services			4,027,778		4,027,778
Board of Director [Member] | Settlement Agreement [Member]
Number of common stock called by warrants (in shares)	3,700,000
Common stock issued	500,000
Exercise price	$ 0.40
Amount of Settlement paid	$ 500,000
Share-based payment for settlement agreement with shareholders	$ 139,500
Board of Director [Member] | Employee Stock Option [Member]
Issuance of shares cashless exercise of options related to services			5,000,000
Board of Director [Member] | Warrant [Member]
Shares issued to convert accounts payable			1,749,683
Common stock sold					20,764,860
Proceeds from issuance of convertible stock					$ 1,205,458
Exercise price			$ 0.15
Board of Director [Member] | Warrant [Member] | Common stock and warrant [Member]
Common stock sold					7,589,545
Board of Director [Member] | Common Stock [Member]
Shares issued to convert accounts payable			1,749,683
Common stock sold					20,764,860
Proceeds from issuance of convertible stock					$ 12,054,576
Exercise price			$ 0.15
Restricted stock awards granted					300,000
Board of Director [Member] | Common Stock [Member] | Common stock and warrant [Member]
Common stock sold					7,590,111
Chairman of Board [Member]
Disposed shares related to services			972,222
Consulting service agreement [Member] | Restricted Stock Units (RSUs) [Member]
Restricted stock units, Expense				$ 248	$ 8,625
Restricted stock of vested, shares					37,500
Restricted stock of vested, amount					8,625
Consulting service agreement [Member] | Restricted Stock [Member]
Option foreited to purchase common stock				183,866	226,781
Two Director [Member] | Restricted Stock [Member]
Restricted stock awards granted					600,000
Director and Chief Executive Officer [Member] | Restricted Stock [Member]
Restricted stock of vested, shares				150,000
Restricted stock awards granted				1,425,000
Restricted stock awards granted term				1 year
Consultant [Member] | Restricted Stock Units (RSUs) [Member]
Restricted stock units issued				49,500	169,500
Restricted stock units fair value					$ 44,119
Officer [Member] | Warrant [Member]
Proceeds from issuance of convertible stock			$ 15,731
Warrants exercisable Price			$ 0.15
Stock issued			104,876
Private Placement [Member]
Proceeds From Issuance of Private Placement					1,154,211		$ 2,100,000
Private Placement [Member] | Board of Director [Member]
Proceeds From Issuance of Private Placement			$ 2,100,000		$ 530,777

STOCK OPTIONS, RESTRICTED STO23

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details)	6 Months Ended
	Jun. 30, 2018$ / shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk Free Interest Rate	2.39%
Expected Volatility	201.48%
Expected Life (in years)	5 years
Dividend Yield	0.00%
Weighted average estimated fair value of options during the period	$ 0.18

STOCK OPTIONS, RESTRICTED STO24

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 1) - Employee Stock Option [Member]	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Number of Shares
Balance, beginning | shares	22,013,529
Granted | shares	1,000,000
Exercised | shares	(5,000,000)
Balance, ending | shares	18,013,529
Exercisable | shares	15,513,529
Weighted Average Exercise Price
Balance, beginning | $ / shares	$ 0.11
Granted | $ / shares	0.21
Exercised | $ / shares	0.07
Balance, ending | $ / shares	0.13
Exercisable | $ / shares	$ 0.14
Weighted Average Remaining Contractual Term
Exercisable	4 years 4 months 24 days
Aggregate Intrinsic Value
Exercisable | $	$ 1,838,287	[1]
[1]	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company's common stock for options that were in-the-money at each respective period. As of June 30, 2018, the aggregate intrinsic value of options exercised under the Company's stock option plans was $1,838,287.

STOCK OPTIONS, RESTRICTED STO25

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 2) - Nonvested Stock Options [Member]	6 Months Ended
	Jun. 30, 2018$ / sharesshares
Number of Shares
Balance, Beginning | shares	2,666,666
Granted | shares	1,000,000
Vested | shares	(1,166,666)
Balance, Ending | shares	2,500,000
Weighted-Average Grant Date Exercise Price
Balance, Beginning | $ / shares	$ 0.06
Granted | $ / shares	0.21
Vested | $ / shares	0.11
Balance, Ending | $ / shares	$ 0.10

STOCK OPTIONS, RESTRICTED STO26

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details 3)	6 Months Ended
	Jun. 30, 2018USD ($)$ / sharesshares
Number of Shares
Balance, beginning | shares	32,292,580
Granted | shares	18,262,994
Exercised | shares	(20,969,737)
Expired | shares	(627,451)
Cancelled/Forfeited | shares	(4,950,000)
Balance, ending | shares	24,008,386
Exercisable | shares	24,008,386
Weighted Average Exercise Price
Balance, beginning	$ 0.30
Granted	0.15
Exercised	0.10
Expired	0.07
Cancelled/Forfeited	0.40
Balance, ending	0.25
Exercisable	$ 0.25
Weighted - Average Remaining Contractual Term
Balance, ending	4 years 2 months 12 days
Exercisable	4 years 2 months 12 days
Aggregate Intrinsic Value:
Exercisable | $	$ 2,620,000	[1]
Closing stock price	$ 0.2101
[1]	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.2101 for our common stock on June 30, 2018.

STOCK OPTIONS, RESTRICTED STO27

STOCK OPTIONS, RESTRICTED STOCK AND WARRANTS (Details Narrative) - USD ($)	Feb. 28, 2019	Apr. 30, 2018	Jan. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Jan. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option, expense				$ 20,219	$ 284,373	$ 226,188	$ 335,970
Shares issued during period value						$ 1,154,211
Shares issued during period						16,513,311
Exercise price (in dollars per share)									$ 0.15
Chairman of Board [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Disposed shares related to services			972,222
Board of Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of shares cashless exercise of options related to services			4,027,778			4,027,778
Shares issued in conversion of debt			1,749,683
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, description								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.
Granted						1,000,000
Warrants exercised						5,000,000
Employee Stock Option [Member] | Board of Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issuance of shares cashless exercise of options related to services			5,000,000
Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period						16,513,311
Exercise price (in dollars per share)				$ 0.10		$ 0.10		$ 0.15	$ 0.10
Warrants exercised						1,250,000
Warrant [Member] | Board of Director [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued in conversion of debt			1,749,683
Exercise price (in dollars per share)			$ 0.15
Forfeited warrants			3,700,000
Warrant [Member] | Member of Board [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period value			$ 15,731
Shares issued during period			104,876
Exercise price (in dollars per share)			$ 0.15
Warrants exercised			104,876
Warrant discount program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period value						$ 2,076,812
Shares issued during period						20,764,860
Warrants exercised						20,764,860
Stock Options, Restricted Stock and Units, and Other Stock-based Awards [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
Chief Executive Officer [Member] | Employee Stock Option [Member] | Warrant [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued during period value		$ 1,000
Shares issued during period		100,000
Exercise price (in dollars per share)		$ 0.01
Chief Operating Officer [Member] | Employee Stock Option [Member] | Consulting Agreement [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested						500,000
Granted						1,000,000
Exercise price (in dollars per share)				$ 0.2102		$ 0.2102
Chief Operating Officer [Member] | Employee Stock Option [Member] | Consulting Agreement [Member] | Subsequent Event [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vested	500,000

DEBT FORGIVENESS (Details)

DEBT FORGIVENESS (Details)	6 Months Ended
	Jun. 30, 2018USD ($)
Debt Forgiveness
Gain on accounts payable forgiveness	$ 402,248

SUBSEQUENT EVENTS (Details Narr

SUBSEQUENT EVENTS (Details Narrative) - USD ($)	Jul. 31, 2018	Jul. 27, 2018	Jun. 30, 2018	Jan. 31, 2018	Jan. 30, 2018	Dec. 31, 2017
Subsequent Event [Line Items]
Exercise price (in dollars per share)					$ 0.15
Exercised total share price			20,969,737
Subsequent Event [Member]
Subsequent Event [Line Items]
Process of issued, amount		$ 2,616
Process of issued, shares		26,163
Private placement of cancelled		$ 607,143
Warrant [Member]
Subsequent Event [Line Items]
Exercise price (in dollars per share)			$ 0.10		$ 0.10	$ 0.15
Warrant [Member] | Board of Director [Member]
Subsequent Event [Line Items]
Exercise price (in dollars per share)				$ 0.15
Exercised total share price	1,439,524
Exercised total price	$ 215,929