VerifyMe (VRME) 10-Q19 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 19, 2013
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'LASERLOCK TECHNOLOGIES INC	'
Entity Central Index Key	'0001104038	'
Trading Symbol	'llti	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	258,091,442
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS	'	'
Cash and cash equivalents	$2,216,100	$2,994,350
Accounts receivable, net of allowance of $0 at September 30, 2013 and December 31, 2012	3,473	3,473
Inventory	39,434	19,980
Prepaid expenses	329,605	750,000
TOTAL CURRENT ASSETS	2,588,612	3,767,803
PROPERTY AND EQUIPMENT	'	'
Capital equipment, net of accumulated depreciation of $74,639 and $32,624 as of September 30, 2013 and December 31, 2012	161,387	2,340
OTHER ASSETS	'	'
Deposits	37,197	'
Patents and trademarks, net of accumulated amortization of $102,116 and $92,302 as of September 30, 2013 and December 31, 2012	123,972	311,832
TOTAL ASSETS	2,911,168	4,081,975
CURRENT LIABILITIES	'	'
Accounts payable and accrued expenses	330,672	660,493
Accrued interest	14,667	97,563
Embedded derivative liability	1,500,000	'
Notes payable	50,000	200,000
TOTAL CURRENT LIABILITIES	1,895,339	958,056
LONG-TERM LIABILITIES	'	'
Warrant liability	8,500,000	2,400,000
Accrued interest	906,634	975,559
Senior secured convertible notes payable	550,249	775,249
Convertible notes payable	98,000	140,000
Notes payable, net of discount of $9,914 and $13,632 as of September 30, 2013 and December 31, 2012	701,086	697,368
TOTAL LONG-TERM LIABILITIES	10,755,969	4,988,176
STOCKHOLDERS' DEFICIT	'	'
Convertible Preferred Stock, $ .001 par value; 75,000,000 shares authorized; 21,111,111 shares issued and outstanding as of September 30, 2013 and no shares issued and outstanding at December 31, 2012	633,333	'
Common stock, $ .001 par value; 675,000,000 shares authorized; 287,887,344 shares issued and 258,091,442 outstanding at September 30, 2013 and 248,244,012 shares issued and 218,448,109 outstanding at December 31, 2012	287,887	248,244
Additional paid in capital	21,295,074	11,387,929
Treasury stock, at cost (29,795,903 shares at September 30, 2013 and December 31, 2012)	-113,389	-113,389
Deficit accumulated during the development stage	-31,843,045	-13,387,041
STOCKHOLDERS' DEFICIT	-9,740,140	-1,864,257
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$2,911,168	$4,081,975

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parentheticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Statement Of Financial Position [Abstract]	'	'
Allowance for accounts receivable (in dollars)	$0	$0
Accumulated depreciation on capital equipment (in dollars)	74,639	32,624
Accumulated amortization of patent and trademark costs (in dollars)	102,116	92,302
Discount of notes payable (in dollars)	$9,914	$13,632
Convertible preferred stock, par value (in dollars per share)	$0.00	$0.00
Convertible preferred stock, shares authorized	75,000,000	75,000,000
Convertible preferred stock, shares issued	21,111,111	'
Convertible preferred stock, shares outstanding	21,111,111	'
Common stock, par value (in dollars per share)	$0.00	$0.00
Common stock, shares authorized	675,000,000	675,000,000
Common stock, shares issued	287,887,344	248,244,012
Common stock, shares outstanding	258,091,442	218,448,109
Treasury stock, shares	29,795,903	29,795,903

Condensed_Consolidated_Stateme

Condensed Consolidated Statement of Operations (USD $)	3 Months Ended				9 Months Ended				167 Months Ended
Condensed Consolidated Statement of Operations (USD $)	Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013		Sep. 30, 2012		Sep. 30, 2013
NET REVENUES	'		'		'		'		'
Sales	'		$3,289		$3,140		$7,029		$464,295
Royalties	'		'		'		10,000		645,180
TOTAL NET REVENUE	'		3,289		3,140		17,029		1,109,475
COST OF SALES	'		2,047		2,710		4,083		431,741
GROSS PROFIT	'		1,242		430		12,946		677,734
OPERATING EXPENSES	'		'		'		'		'
General and administrative	232,291		18,911		501,299		89,898		2,044,658
Legal and accounting	110,187		4,549		278,275		174,358		1,817,061
Patent costs	'		'		'		'		65,000
Payroll expenses	344,539	[1]	'	[1]	9,085,336	[1]	'	[1]	12,498,318	[1]
Research and development	158,030		493		470,005		3,873		1,337,797
Sales and marketing	78,225		55,463		182,726		155,725		5,202,458
Total operating expenses	923,272		79,416		10,517,641		423,854		22,965,292
LOSS BEFORE OTHER INCOME (EXPENSE)	-923,272		-78,174		-10,517,211		-410,908		-22,287,558
OTHER INCOME (EXPENSE)	'		'		'		'		'
Interest income	'		'		'		'		63,665
Interest expense	-42,700		-77,169		-116,918		-229,125		-2,307,351
Loss on extinguishment of debt	'		'		-1,221,875		'		-1,221,875
Change in fair value of warrants	9,676,165		'		-3,104,209		'		-3,104,209
Change in fair value of embedded derivative liability	-500,000		'		-500,000		'		-500,000
Fair value of warrants in excess of consideration for convertible preferred stock	'		'		-2,995,791		'		-2,995,791
Gain on debt forgiveness	'		'		'		'		340,352
Gain on disposition of assets	'		'		'		'		4,722
TOTAL OTHER INCOME (EXPENSE)	9,133,465		-77,169		-7,938,793		-229,125		-9,720,487
INCOME (LOSS) BEFORE INCOME TAX BENEFIT	8,210,193		-155,343		-18,456,004		-640,033		-32,008,045
INCOME TAX BENEFIT	'		'		'		'		-165,000
NET INCOME (LOSS)	8,210,193		-155,343		-18,456,004		-640,033		-31,843,045
Less: Deemed dividend distribution	'		'		-1,000,000		'		-1,000,000
NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS	$8,210,193		($155,343)		($19,456,004)		($640,033)		($32,843,045)
NET INCOME (LOSS) PER COMMON SHARE	'		'		'		'		'
BASIC	($0.03)		$0		($0.08)		$0		'
DILUTED	($0.02)		$0		($0.08)		$0		'
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	'		'		'		'		'
BASIC	247,476,627		145,144,603		240,255,146		145,144,603		'
DILUTED	465,253,680		145,144,603		240,255,146		145,144,603		'

[1]	includes share based compensation of $9,137,726 cumulative, $154,975 for the three months ended September 30,2013, $8,427,202 for the nine months ended September 30, 2013 and $0 for the three and nine months ended September 30, 2012

Condensed_Consolidated_Stateme1

Condensed Consolidated Statement of Operations (Parentheticals) (Payroll Expenses, USD $)	3 Months Ended		9 Months Ended		167 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Payroll Expenses	'	'	'	'	'
Share-based compensation	$154,975	$0	$8,427,202	$0	$9,137,726

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) (USD $)	Convertible Preferred Stock	Common Stock	Deferred Consulting Fees	Additional Paid-In Capital	Treasury Stock	Deficit Accumulated During the Development Stage	Total
Balance (in shares) at Nov. 10, 1999	'	'	'	'	'	'	4,278,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of initial 4,278,000 shares on November 10, 1999	'	$4,278	'	$16,595	'	'	$20,873
Issuance of initial 4,278,000 shares on November 10, 1999 (in shares)	'	4,278,000	'	'	'	'	'
Issuance of shares of common stock in exchange for services	'	1,232	'	35,728	'	'	36,960
Issuance of shares of common stock in exchange for services (in shares)	'	1,232,000	'	'	'	'	'
Issuance of shares of common stock	'	2,090	'	60,610	'	'	62,700
Issuance of shares of common stock (in shares)	'	2,090,000	'	'	'	'	'
Stock issuance costs	'	'	'	-13,690	'	'	-13,690
Net loss	'	'	'	'	'	-54,113	-54,113
Balance at Dec. 31, 1999	'	7,600	'	99,243	'	-54,113	52,730
Balance (in shares) at Dec. 31, 1999	'	7,600,000	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock in exchange for services	'	240	-40,800	40,560	'	'	'
Issuance of shares of common stock in exchange for services (in shares)	'	240,000	'	'	'	'	'
Issuance of shares of common stock	'	5,450	'	921,050	'	'	926,500
Issuance of shares of common stock (in shares)	'	5,449,999	'	'	'	'	'
Stock issuance costs	'	'	'	-16,335	'	'	-16,335
Fair value of non-employee stock options	'	'	'	50,350	'	'	50,350
Amortization of deferred consulting fees	'	'	20,117	'	'	'	20,117
Net loss	'	'	'	'	'	-367,829	-367,829
Balance at Dec. 31, 2000	'	13,290	-20,683	1,094,868	'	-421,942	665,533
Balance (in shares) at Dec. 31, 2000	'	13,289,999	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock	'	218	'	77,723	'	'	77,941
Issuance of shares of common stock (in shares)	'	217,500	'	'	'	'	'
Issuance of shares of common stock and stock options for acquisition of subsidiary	'	2,000	'	736,000	'	'	738,000
Issuance of shares of common stock and stock options for acquisition of subsidiary (in shares)	'	2,000,000	'	'	'	'	'
Exercise of options	'	1,450	'	230,609	'	'	232,059
Exercise of options (in shares)	'	1,450,368	'	'	'	'	'
Fair value of non-employee stock options	'	'	'	323,250	'	'	323,250
Issuance of stock options	'	'	'	15,000	'	'	15,000
Amortization of deferred consulting fees	'	'	20,683	'	'	'	20,683
Net loss	'	'	'	'	'	-1,052,299	-1,052,299
Balance at Dec. 31, 2001	'	16,958	'	2,477,450	'	-1,474,241	1,020,167
Balance (in shares) at Dec. 31, 2001	'	16,957,867	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock	'	3,377	'	687,223	'	'	690,600
Issuance of shares of common stock (in shares)	'	3,376,875	'	'	'	'	'
Fair value of non-employee stock options	'	'	'	94,000	'	'	94,000
Salary due to shareholder contributed capital	'	'	'	15,000	'	'	15,000
Return of shares of common stock related to purchase price adjustment	'	-1,000	'	-353,000	'	'	-354,000
Return of shares of common stock related to purchase price adjustment (in shares)	'	-1,000,000	'	'	'	'	'
Net loss	'	'	'	'	'	-1,195,753	-1,195,753
Balance at Dec. 31, 2002	'	19,335	'	2,920,673	'	-2,669,994	270,014
Balance (in shares) at Dec. 31, 2002	'	19,334,742	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock in exchange for services	'	143	'	23,857	'	'	24,000
Issuance of shares of common stock in exchange for services (in shares)	'	143,000	'	'	'	'	'
Issuance of shares of common stock	'	22,512	'	1,387,109	'	'	1,409,621
Issuance of shares of common stock (in shares)	'	22,512,764	'	'	'	'	'
Stock issuance costs	'	'	'	-49,735	'	'	-49,735
Fair value of non-employee stock options	'	'	'	213,300	'	'	213,300
Net loss	'	'	'	'	'	-1,107,120	-1,107,120
Balance at Dec. 31, 2003	'	41,990	'	4,495,204	'	-3,777,114	760,080
Balance (in shares) at Dec. 31, 2003	'	41,990,506	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock	'	18,600	'	939,881	'	'	958,481
Issuance of shares of common stock (in shares)	'	18,600,000	'	'	'	'	'
Stock issuance costs	'	'	'	-25,000	'	'	-25,000
Fair value of non-employee stock options	'	'	'	493,600	'	'	493,600
Net loss	'	'	'	'	'	-1,406,506	-1,406,506
Balance at Dec. 31, 2004	'	60,590	'	5,903,685	'	-5,183,620	780,655
Balance (in shares) at Dec. 31, 2004	'	60,590,506	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock	'	3,000	'	102,000	'	'	105,000
Issuance of shares of common stock (in shares)	'	3,000,000	'	'	'	'	'
Fair value of non-employee stock options	'	'	'	286,762	'	'	286,762
Net loss	'	'	'	'	'	-1,266,811	-1,266,811
Balance at Dec. 31, 2005	'	63,590	'	6,292,447	'	-6,450,431	-94,394
Balance (in shares) at Dec. 31, 2005	'	63,590,506	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock in exchange for services	'	1,200	'	53,800	'	'	55,000
Issuance of shares of common stock in exchange for services (in shares)	'	1,200,000	'	'	'	'	'
Exercise of options	'	4,300	'	-3,870	'	'	430
Exercise of options (in shares)	'	4,300,000	'	'	'	'	'
Shares retired upon cancellation of consulting agreements	'	-1,200	'	1,080	'	'	-120
Shares retired upon cancellation of consulting agreements (in shares)	'	-1,200,000	'	'	'	'	'
Exercise of warrants	'	5,550	'	49,950	'	'	55,500
Exercise of warrants (in shares)	'	5,550,000	'	'	'	'	'
Fair value of employee stock options	'	'	'	135,098	'	'	135,098
Fair value of non-employee stock options	'	'	'	215,463	'	'	215,463
Fair value of warrants issued for deferred finance charges	'	'	'	392,376	'	'	392,376
Net loss	'	'	'	'	'	-1,607,017	-1,607,017
Balance at Dec. 31, 2006	'	73,440	'	7,136,344	'	-8,057,448	-847,664
Balance (in shares) at Dec. 31, 2006	'	73,440,506	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Fair value of employee stock options	'	'	'	67,651	'	'	67,651
Fair value of non-employee stock options	'	'	'	47,692	'	'	47,692
Recognition of beneficial conversion feature	'	'	'	375,000	'	'	375,000
Net loss	'	'	'	'	'	-1,117,334	-1,117,334
Balance at Dec. 31, 2007	'	73,440	'	7,626,687	'	-9,174,782	-1,474,655
Balance (in shares) at Dec. 31, 2007	'	73,440,506	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Fair value of warrants issued in conjunction with debt financing	'	'	'	25,000	'	'	25,000
Fair value of employee stock options	'	'	'	19,720	'	'	19,720
Fair value of non-employee stock options	'	'	'	28,752	'	'	28,752
Net loss	'	'	'	'	'	-931,338	-931,338
Balance at Dec. 31, 2008	'	73,440	'	7,700,159	'	-10,106,120	-2,332,521
Balance (in shares) at Dec. 31, 2008	'	73,440,506	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock in exchange for services	'	7,200	'	40,500	'	'	47,700
Issuance of shares of common stock in exchange for services (in shares)	'	7,200,000	'	'	'	'	'
Shares issued for conversion of notes payable and accrued interest	'	48,750	'	263,291	'	'	312,041
Shares issued for conversion of notes payable and accrued interest (in shares)	'	48,750,000	'	'	'	'	'
Fair value of warrants issued in conjunction with debt financing	'	'	'	15,450	'	'	15,450
Fair value of non-employee stock options	'	'	'	1,524	'	'	1,524
Net loss	'	'	'	'	'	-694,910	-694,910
Balance at Dec. 31, 2009	'	129,390	'	8,020,924	'	-10,801,030	-2,650,716
Balance (in shares) at Dec. 31, 2009	'	129,390,506	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock in exchange for services	'	25,950	'	182,650	'	'	208,600
Issuance of shares of common stock in exchange for services (in shares)	'	25,950,000	'	'	'	'	'
Fair value of warrants issued in conjunction with debt financing	'	'	'	20,143	'	'	20,143
Fair value of non-employee stock options	'	'	'	364	'	'	364
Net loss	'	'	'	'	'	-721,841	-721,841
Balance at Dec. 31, 2010	'	155,340	'	8,224,081	'	-11,522,871	-3,143,450
Balance (in shares) at Dec. 31, 2010	'	155,340,506	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock in exchange for services	'	1,000	'	29,000	'	'	30,000
Issuance of shares of common stock in exchange for services (in shares)	'	1,000,000	'	'	'	'	'
Contribution of common stock from related parties	'	'	'	95,594	-95,594	'	'
Contribution of common stock from related parties (in shares)	'	-12,000,000	'	'	'	'	'
Purchase of common stock for treasury	'	'	'	'	-17,795	'	-17,795
Purchase of common stock for treasury (in shares)	'	-17,795,903	'	'	'	'	'
Sale of common stock	'	15,500	'	384,500	'	'	400,000
Sale of common stock (in shares)	'	15,500,000	'	'	'	'	'
Issuance of shares for stock issuance costs	'	2,100	'	-2,100	'	'	'
Issuance of shares for stock issuance costs (in shares)	'	2,100,000	'	'	'	'	'
Stock issuance costs	'	'	'	-40,000	'	'	-40,000
Exercise of options	'	1,000	'	9,000	'	'	10,000
Exercise of options (in shares)	'	1,000,000	'	'	'	'	'
Fair value of warrants issued in conjunction with debt financing	'	'	'	21,275	'	'	21,275
Fair value of employee stock options	'	'	'	47,658	'	'	47,658
Fair value of non-employee stock options	'	'	'	48,374	'	'	48,374
Net loss	'	'	'	'	'	-665,113	-665,113
Balance at Dec. 31, 2011	'	174,940	'	8,817,382	-113,389	-12,187,984	-3,309,051
Balance (in shares) at Dec. 31, 2011	'	145,144,603	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of common stock in exchange for services	'	1,000	'	45,500	'	'	46,500
Issuance of shares of common stock in exchange for services (in shares)	'	1,000,000	'	'	'	'	'
Issuance of shares of common stock	'	44,111	'	1,015,889	'	'	1,060,000
Issuance of shares of common stock (in shares)	'	44,111,111	'	'	'	'	'
Issuance of stock for licensing	'	2,222	'	97,778	'	'	100,000
Issuance of stock for licensing (in shares)	'	2,222,222	'	'	'	'	'
Issuance of stock for trademarks, etc.	'	2,222	'	97,778	'	'	100,000
Issuance of stock for trademarks, etc. (in shares)	'	2,222,222	'	'	'	'	'
Shares issued for conversion of notes payable and accrued interest	'	12,925	'	568,639	'	'	581,564
Shares issued for conversion of notes payable and accrued interest (in shares)	'	12,923,622	'	'	'	'	'
Exercise of options	'	10,491	'	2,622	'	'	13,113
Exercise of options (in shares)	'	10,490,996	'	'	'	'	'
Exercise of warrants	'	333	'	49,667	'	'	50,000
Exercise of warrants (in shares)	'	333,333	'	'	'	'	'
Fair value of employee stock options	'	'	'	332,036	'	'	332,036
Fair value of non-employee stock options	'	'	'	11,638	'	'	11,638
Forgiveness of debt-related party	'	'	'	349,000	'	'	349,000
Net loss	'	'	'	'	'	-1,199,057	-1,199,057
Balance at Dec. 31, 2012	'	248,244	'	11,387,929	-113,389	-13,387,041	-1,864,257
Balance (in shares) at Dec. 31, 2012	'	218,448,109	'	'	'	'	'
Increase (Decrease) in Stockholders' Equity [Roll Forward]	'	'	'	'	'	'	'
Issuance of shares of preferred stock	1,000,000	'	'	'	'	'	1,000,000
Issuance of shares of preferred stock (in shares)	33,333,333	'	'	'	'	'	'
Conversion of shares of preferred stock to common stock	-366,667	12,222	'	354,445	'	'	'
Conversion of shares of preferred stock to common stock (in shares)	-12,222,222	12,222,222	'	'	'	'	'
Issuance of shares of common stock	'	4,811	'	230,189	'	'	235,000
Issuance of shares of common stock (in shares)	'	4,811,111	'	'	'	'	'
Shares issued for conversion of notes payable and accrued interest	'	18,275	'	1,871,725	'	'	1,890,000
Shares issued for conversion of notes payable and accrued interest (in shares)	'	18,275,000	'	'	'	'	'
Exercise of options	'	3,335	'	14,584	'	'	17,919
Exercise of options (in shares)	'	3,335,000	'	'	'	'	'
Exercise of warrants	'	1,000	'	9,000	'	'	10,000
Exercise of warrants (in shares)	'	1,000,000	'	'	'	'	'
Fair value of employee stock options	'	'	'	8,427,202	'	'	8,427,202
Deemed dividend distribution	'	'	'	-1,000,000	'	'	-1,000,000
Net loss	'	'	'	'	'	-18,456,004	-18,456,004
Balance at Sep. 30, 2013	$633,333	$287,887	'	$21,295,074	($113,389)	($31,843,045)	($9,740,140)
Balance (in shares) at Sep. 30, 2013	21,111,111	258,091,442	'	'	'	'	'

Consolidated_Statements_of_Cha

Consolidated Statements of Changes in Stockholders' Equity (Deficit) (Parentheticals)	Nov. 10, 1999
Statement Of Stockholders' Equity [Abstract]	'
Issuance of shares	4,278,000

Condensed_Consolidated_Stateme3

Condensed Consolidated Statement of Cash Flows (Unaudited) (USD $)	9 Months Ended		167 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'	'
Net loss	($18,456,004)	($640,033)	($31,843,045)
Adjustments to reconcile net loss to net cash used in operating activities	'	'	'
Fair value of options issued in exchange for services	8,427,202	11,638	10,844,434
Accretion of interest on deferred finance charges	'	12,562	453,625
Accretion of discount on notes payable	3,718	3,717	446,954
Change in fair value warrant liability	3,104,209	'	3,104,209
Change in fair value embedded derivative liability	500,000	'	500,000
Fair value of warrants in excess of consideration for convertible preferred stock	2,995,791	'	2,995,791
Fair value of stock in excess of converted notes payable and accrued interest	1,221,875	'	1,221,875
Salary due to stockholder contributed to capital	'	'	15,000
Amortization and depreciation	61,339	8,328	591,394
Gain on disposition of assets	'	'	-4,722
Gain on debt forgiveness	'	'	-340,352
Stock issued in exchange for services	'	'	553,760
Financing expenses paid directly from stock proceeds	'	'	5,270
Amortization of deferred consulting fees	'	'	40,800
(Increase) decrease in assets	'	'	'
Accounts receivable	'	-3,473	-3,473
Inventory	-19,454	3,583	526
Prepaid expenses	420,395	117,760	70,395
Deposit	-37,197	'	-37,197
Increase in liabilities	'	'	'
Accounts payable and accrued expenses	-230,516	298,584	2,336,846
Net cash used in operating activities	-2,008,642	-187,334	-9,047,910
CASH FLOWS FROM INVESTING ACTIVITIES	'	'	'
Purchase of property and equipment	-10,573	'	-48,682
Purchase of patents and trademarks	-21,954	-2,406	-246,088
Proceeds from sale of assets	'	'	6,738
Net cash used in investing activities	-32,527	-2,406	-288,032
CASH FLOWS FROM FINANCING ACTIVITIES	'	'	'
Proceeds from issuance of preferred stock	1,000,000	'	1,000,000
Proceeds from issuance of common stock	235,000	'	6,786,447
Proceeds from exercise of stock options	17,919	'	273,401
Proceeds issuance of stock options	'	'	15,000
Proceeds from exercise of warrants	10,000	'	115,500
Proceeds from issuance of warrants	'	'	1,000,000
Proceeds from issuance of notes payable	'	200,000	2,789,000
Repayments of notes payable	'	'	-202,751
Payment for treasury stock	'	'	-17,795
Debt issuance costs	'	'	-62,000
Stock issuance costs	'	'	-144,760
Net cash provided by financing activities	1,262,919	200,000	11,552,042
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	-778,250	10,260	2,216,100
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	2,994,350	53,573	'
CASH AND CASH EQUIVALENTS - END OF PERIOD	2,216,100	63,833	2,216,100
Cash paid during the year for:	'	'	'
Interest	13,895	'	53,336
Income taxes	'	'	'
Return of shares of common stock related to purchase price adjustment	'	'	'
Common stock	'	'	-1,000
Additional paid-in capital	'	'	-353,000
Intangible assets	'	'	-354,000
Issuance of common stock and stock options for acquisition of subsidiary	'	'	738,000
Proceeds from common stock sales applied directly to debt and financing expenses repayment	'	'	55,270
Fair value of warrants issued for deferred finance charges	'	'	392,376
Fair value of stock issued for conversion of notes payable and accrued interest	668,125	'	1,561,730
Fair value of stock issued for conversion of preferred stock to common stock	366,667	'	366,667
Fair value of stock issued for purchase of assets	'	'	100,000
Fair value of warrants issued for purchase of assets	'	'	100,000
Fair value of stock issued for licensing costs	'	'	100,000
Fair value of warrants issued for licensing costs	'	'	300,000
Accretion of discount on preferred stock as deemed dividend distribution	1,000,000	'	1,000,000
Fair value of beneficial conversion feature	1,500,000	'	1,500,000
Fair value of warrants issued as debt discount	'	'	78,043
Issuance of common stock for stock issuance costs	'	'	2,100
Issuance of options as stock cost for treasury stock	'	'	5,594
Forgiveness of debt-related party treated as additional paid in capital	'	'	$349,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of the Business

LaserLock Technologies, Inc. and Subsidiary (the “Company”) is a development stage enterprise incorporated in the state of Nevada on November 10, 1999. LaserLock Technologies, Inc. seeks to provide state-of-the-art authentication solutions to governments, health care providers, high-end retailers and the gaming industry. LaserLock Technologies, Inc. is based in Washington, D.C. and is publically traded on the OTC Market under the ticker symbol “LLTI”. The Company markets security technology to protect governments, health care providers, high-end retail goods, the gaming industry and branded products from counterfeiting.

Basis of Presentation

The financial statements are presented in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 915 for development stage entities. The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles 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 accounting principles generally accepted in the United States (“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 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, 2012 as filed with the Securities and Exchange Commission (the “SEC”). Operating results for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ended December 31, 2013.

Principle of Consolidation

The accompanying consolidated financial statements include the accounts of LaserLock Technologies, Inc. and its wholly-owned subsidiary, LL Security Products, Inc. All inter-company transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.

Comprehensive Income

The Company follows FASB ASC 220 in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. Since the Company has no items of other comprehensive income (loss), comprehensive income (loss) is equal to net income (loss).

Fair Value of Financial Instruments

The Company’s financial instruments consist of accounts receivable, accounts payable and accrued expenses, embedded derivative, warrant liability and notes payable. The carrying value of accounts receivable, accounts payable and accrued expenses approximate their fair value because of their short maturities. The Company believes the carrying amount of its notes payable and convertible debt approximates its fair value based on rates and other terms currently available to the Company for similar debt instruments.

The Company follows FASB ASC 820, Fair Value Measurements and Disclosures, and applies it to all assets and liabilities that are being measured and reported on a fair value basis. The statement requires that assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data

Level 3: Unobservable inputs that are not corroborated by market data

The level in the fair value within which a fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

Concentration of Credit Risk Involving Cash

The Company’s cash is held at two financial institutions. At times, the Company’s deposits may exceed Federal Deposit Insurance Corporation (FDIC) coverage limits. The Company has not experienced any losses from maintaining cash accounts in excess of federally insured limits.

Inventory

Inventory principally consists of penlights and pigments and is stated at the lower of cost (determined by the first-in, first-out method) or market.

Property and Equipment

Property and equipment is stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets, principally three to seven years. Maintenance and repairs of property are charged to operations, and major improvements are capitalized. Upon retirement, sale, or other disposition of property and equipment, the costs and accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is included in operations. Depreciation of property and equipment was $17,313 and $51,525 for the three and nine months ended September 30, 2013 and $0 for the three and nine months ended September 30, 2012 and included in general and administrative expenses.

Patents and Trademark

The Company has five issued patents, filed for three provisional patents for anti-counterfeiting technology and purchased a trademark. Costs associated with the registration and legal defense of the 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 20 years.

Long-Lived Assets

The Company evaluates the recoverability of its long-lived assets in accordance with FASB ASC 360 “Property, Plant, and Equipment.” The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets are measured by a comparison of the carrying amount of an asset to future cash flows expected to be generated by the asset, undiscounted and without interest or independent appraisals. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the assets.

Deferred Financing Costs

Costs incurred in securing long-term debt are deferred and amortized, as a charge to interest expense, over the term of the related debt. In the case of long-term debt modifications, the Company follows the guidance provided by FASB ASC 470-50 “Debt – Modification and Extinguishments.”

Convertible Notes Payable

Convertible notes payable, for which the embedded conversion feature does not qualify for derivative treatment, are evaluated to determine if the effective or actual rate of conversion per the terms of the convertible note agreement is below market value. In these instances, the Company accounts for the value of the beneficial conversion feature (“BCF”) as a debt discount, which is then accreted to interest expense over the life of the related debt using the straight-line method which approximates the effective interest method.

Revenue Recognition

In accordance with SEC Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition (Codified in FASB ASC 605), the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) collectability of the revenue is reasonably assured. Subject to these criteria, the Company recognizes revenue from product sales, consisting mainly of pigments and penlights, upon shipment to the customer. Royalty revenue is recognized upon receipt of notification from a customer that the Company’s product has been used in the customer’s production process.

Income Taxes

The Company follows FASB ASC 740, Income Taxes which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.

Stock-based Payments

The Company accounts for stock-based compensation under the provisions of FASB ASC 718, Compensation—Stock Compensation which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods using the straight-line method. The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC 505 -50, Equity-Based Payments to Non-Employees (“ASC 505-50”). Under ASC 505-50, the Company determines the fair value of the warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. All issuances of stock options or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. Any stock options issued to non-employees are recorded as an expense and additional paid-in capital in stockholders’ equity over the applicable service periods.

Advertising Costs

Advertising costs are expensed as incurred. Advertising costs were $23,615 and $29,371 for the three and nine months ended September 30, 2013 and $0 for the three and nine months ended September 30, 2012, and are included in sales and marketing expenses.

Research and Development Costs

In accordance with FASB ASC 730, research and development costs are expensed when incurred. Non-cash items included in research and development costs for the three and nine months ended September 30, 2013 were approximately $137,500 and $412,500 and $0 for the three and nine months ended September 30, 2012.

Earnings (Loss) Per Share

The Company follows FASB ASC 260 when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Since the Company reported a net loss for the three months ended September 30, 2012 and the nine months ended September 30, 2013 and 2012, common stock equivalents, including stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and dilutive earnings (loss) per share were the same.

The numerator for both basic and diluted earnings per share is net income. The denominator for basic earnings per share is the weighted average number of common shares outstanding during the period. The dilutive effect of outstanding convertible debt, stock options and warrants is reflected in the denominator for diluted earnings per share using the treasury stock method.

The following is a reconciliation of basic shares to diluted shares:

Three Months Ended September 30,

Nine Months Ended September 30,

2013

2012

2013

2012

Weighted-average shares – basic

247,476,627

145,144,603

240,255,146

145,144,603

Effect of dilutive securities

217,777,053

—

Weighted-average shares – diluted

465,253,680

145,144,603

240,255,146

145,144,603

Segment Information

The Company is organized and operates as one operating segment wherein the Company’s patented technologies are utilized to address counterfeiting issues. In accordance with FASB ASC 280, Segment Reporting, the chief operating decision-maker has been identified as the Chief Executive Officer, who reviews operating results to make decisions about allocating resources and assessing performance for the entire Company subject to Board approval. Since the Company operates in one segment and provides one group of similar products, all financial segment and product line information required by FASB ASC 280 can be found in the consolidated financial statements.

Reclassification

Certain prior year balances have been reclassified to conform to current year presentation.

Recently Adopted Accounting Pronouncements

As of September 30, 2013 and for the period then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

In July 2013, the FASB issued Accounting Standards Update (“ASU”) ASU 2013-11, Presentation of Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendments in this update provide guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists, in order to eliminate the diversity in practice in the presentation of unrecognized tax benefits in such instances. This guidance generally requires that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. However, to the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. ASU 2013-11 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. Retrospective application is permitted. The Company is currently evaluating ASU 2013-11 and plans to comply with all applicable provisions of this ASU no later than the first quarter of 2014.

MANAGEMENT_PLANS

MANAGEMENT PLANS	9 Months Ended
MANAGEMENT PLANS	Sep. 30, 2013
Management Plans [Abstract]	'
MANAGEMENT PLANS	'

	NOTE 2 – MANAGEMENT PLANS



	The accompanying 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 during the development stage. 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 believes that its existing cash resources will not 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 shareholders. 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.



	The Company is in the development stage at September 30, 2013. 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.

PATENTS_AND_TRADEMARK

PATENTS AND TRADEMARK	9 Months Ended
PATENTS AND TRADEMARK	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
PATENTS AND TRADEMARK	'

	NOTE 3 – PATENTS AND TRADEMARK



	The Company has five issued patents and filed for three additional provisional patents for anti-counterfeiting technology. Accordingly, costs associated with the registration of these patents and legal defense have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents (17 to 20 years). During the three and nine months ended September 30, 2013, the Company capitalized patent costs of $0 and $21,594 and $0 and $2,406 for the three and nine months ended September 30, 2012. Amortization expense for patents was $3,277 and $9,814 for the three and nine months ended September 30, 2013 and $2,768 and $8,328 for the three and nine months ended September 30, 2012 and included in general and administrative expense. Future estimated annual amortization over the next five years is approximately $13,100 per year for the years ended December 31, 2013 through 2017. In December 2012, the Company had purchased trademarks, a domain name and software from a third party and in the second quarter of 2013, reallocated the purchase price of $200,000 from intangibles to capital equipment based on the determined fair value of the assets acquired.

INCOME_TAXES

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2013
Income Tax Disclosure [Abstract]	'
INCOME TAXES	'

	NOTE 4 – INCOME TAXES



	Income tax expense was $0 for the three and nine months ended September 30, 2013 and 2012.



	As of December 31, 2012, the Company had net operating loss carry forwards approximating $8.3 million.



	As of January 1, 2013, the Company had no unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties during 2013 related to unrecognized tax benefits. There has been no change in unrecognized tax benefits during the nine months ended September 30, 2013, and there was no accrual for uncertain tax positions as of September 30, 2013. Tax years from 2009 through 2012 remain subject to examination by major tax jurisdictions.



	There is no income tax benefit for the income for the three months ended September 30, 2013 and for the losses for the nine months ended September 30, 2013 and 2012, 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.

SENIOR_SECURED_CONVERTIBLE_NOT

SENIOR SECURED CONVERTIBLE NOTES PAYABLE	9 Months Ended
SENIOR SECURED CONVERTIBLE NOTES PAYABLE	Sep. 30, 2013
Senior Secured Convertible Notes Payable [Abstract]	'
SENIOR SECURED CONVERTIBLE NOTES PAYABLE	'

	NOTE 5 - SENIOR SECURED CONVERTIBLE NOTES PAYABLE



	In February 2006, the Company commenced a private placement of up to $800,000 principal amount of 10% senior secured convertible promissory notes due twelve months from the date of issue to certain Company shareholders and other accredited investors. As of December 31, 2006, the Company completed this private placement by selling all notes payable totaling $800,000. The notes are secured by a first priority lien on all of the tangible and intangible personal property of the Company. In May 2007, the due date of these notes was extended to August 2008 and the interest rate increased to 12% per annum during the extension period. In June 2011, the interest rate on all of the notes was reset to 10% and $596,500 of the notes and accrued interest was extended until September 15, 2015. During the fourth quarter of 2012 the remaining $178,749 of unextended notes and the associated accrued interest were extended to September 30, 2015. In June 2013, $225,000 of these notes payable plus accrued interest of $181,125 were converted into 7.4 million shares of the Company’s common stock, which was valued at $1,628,000. The excess of the fair value of the Company’s common stock over the value of the notes payable and accrued interest was recorded as loss on extinguishment of debt in accordance with FASB ASC 470-50. As of September 30, 2013 and December 31, 2012, the outstanding principal balance on these notes was $550,249 and $775,249. Accrued interest at September 30, 2013 and December 31, 2012 amounted to $478,370 and $600,091. Purchasers of the notes were issued 8,000,000 10-year warrants exercisable into the Company’s shares at an exercise price of $0.01 per share. The warrants were valued at $392,376 and recorded as a debt discount on the notes payable. The Company used 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 169% and 284%, risk-free interest rate between 3.6% and 4.5% and expected warrant life of ten years. The deferred finance charges were amortized over one year, which was the original term of the notes. As of June 30, 2013, the Company has received $80,000 for the exercise of 8,000,000 of the warrants. In addition, if an equity financing with total proceeds of more than $5,000,000 occurs while any notes are outstanding, holders of notes will have the right, at their option, to convert the outstanding principal and interest of the notes into shares at a discount of 30% of the price per share in the qualified financing. Since the embedded conversion feature is contingent upon the occurrence of the qualified financing, the value of the contingent conversion feature, if beneficial, will be recognized when the triggering event occurs and the contingency is resolved.

CONVERTIBLE_NOTES_PAYABLE

CONVERTIBLE NOTES PAYABLE	9 Months Ended
CONVERTIBLE NOTES PAYABLE	Sep. 30, 2013
Convertible Notes Payable [Abstract]	'
CONVERTIBLE NOTES PAYABLE	'

	NOTE 6 - CONVERTIBLE NOTES PAYABLE



	During 2007, the Company commenced a private placement of up to $400,000 principal amount of 10% Convertible Promissory Notes originally due in August 2008 (the “Notes”). The Company raised $375,000 under this private placement in 2007 and the remaining $25,000 was raised in 2008. Holders of Notes will have the right, at their option, to convert the outstanding principal and interest of the Notes into shares of the Company’s Series A Preferred Stock at any time and from time to time at the option of the holder at the initial conversion price of $0.005333 per share. It is the intention, however, that the option holder will convert the Notes into shares of the Company’s common stock. The Notes are unsecured. The note holder of the remaining $140,000 under this convertible note issue agreed to extend the maturity date of these notes to September 30, 2015 at an interest rate of 10% per annum. Remaining shares to be potentially issued under this convertible note issue are 18,375,000.



	On March 19, 2013, the investor holding $140,000 of convertible notes transferred $14,000 of the $140,000 convertible notes to the Vice Chairman of the Company. Also on March 19, 2013, the investor agreed to convert $28,000 of the investor’s remaining $126,000 of convertible notes into 5,250,000 shares of the Company’s common stock.



	On March 19, 2013, the Vice Chairman of the Company agreed to convert $14,000 of convertible notes into 2,625,000 of the Company’s common stock.



	As of September 30, 2013 and December 31, 2012, the remaining principal balance on the notes was $98,000 and $140,000. Accrued interest at September 30, 2013 and December 31, 2012 amounted to $87,150 and $78,750.

NOTES_PAYABLE

NOTES PAYABLE	9 Months Ended
NOTES PAYABLE	Sep. 30, 2013
Debt Disclosure [Abstract]	'
NOTES PAYABLE	'

	NOTE 7 - NOTES PAYABLE



	Notes payable consists of the following:



			30-Sep-13			31-Dec-12

	Unsecured notes payable; interest at 10% per annum; principal and accrued interest due at maturity in September 2015		$	561,000		$	561,000

	Series A notes payable; interest at 8% per annum; principal and accrued interest due at extended maturity date in September 2015			150,000			150,000

	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 at 25% per annum; principal and interest due September 2013			-			150,000

	Less: Debt discount			(9,914	)		(13,632	)
				751,086			897,368

	Less: Current portion			50,000			200,000
	Long-term portion		$	701,086		$	697,368



	At September 30, 2013 and December 31, 2012 accrued interest on notes payable was $355,781 and $394,281.

	Unsecured Notes Payable

	During the second quarter of 2012, the Company received $200,000 for a 10% unsecured note payable, due April 27, 2013. In December 2012, this note payable and accrued interest of $9,167 was converted into 4,703,711 shares of the Company’s common stock.



	Private Placement of 8% Series A Notes Payable

	In August 2009, the Company commenced a private placement of up to $300,000 consisting of up to 6 units. Each unit consists of a $50,000, 8% Series A Note Payable, due September 30, 2011, and a non-detachable warrant to purchase 2 million shares of the Company’s common stock. During 2009, the Company sold 4 units, issued $200,000 of 8% Series A Notes Payable, issued 8 million warrants, and raised $180,000, net of commission of $20,000. In January 2010, the Company sold 0.5 unit, issued $25,000 of 8% Series A Notes Payable, issued 1 million warrants, and raised $17,500 net of commissions of $7,500. The commissions were treated as deferred finance charges and are expensed over the term of notes payable, which have been fully expensed.



	The 8 million warrants in 2009 were valued at $15,450, fair value, using the Black-Scholes option pricing model to calculate the fair-value of the warrants, with the following assumptions: no dividend yield, expected volatility of between 30.9% and 34.5%, risk free interest rate between .95% and 1.06% and warrant life of approximately 2 years. The 1 million warrants in 2010 were valued at $20,143, fair value, using the Black-Scholes option pricing model to calculate the fair-value of the warrants, with the following assumptions: no dividend yield, expected volatility of 28.6 %, risk free interest rate of .84% and warrant life of approximately 2 years.



	In June 2011, the maturity date on the $150,000 of the 8% Series A Notes Payable and the term on the associated 6 million warrants were extended to September 30, 2015. As a result, the warrants were revalued using the Black-Scholes option pricing model to calculate the incremental fair-value of the warrants of $21,275, with the following assumptions: no dividend yield, expected volatility of 60%, risk free interest rate of 1.52% and warrant life of approximately 1.25 years. As part of the debt extension, the lender holding the 6 million warrants agreed in writing to suspend its right to exercise these warrants until such time that the Company’s authorized shares have been increased. The authorized shares of the Company’s common stock were increased effective May 23, 2013 from 425,000,000 to 675,000,000.



	The relative fair value of the warrants issued in conjunction with the 8% Series A Notes Payable have been treated as a debt discount with an offsetting credit to additional paid-in capital. The debt discount related to the warrant issuances is being accreted to interest expense over the term of the notes. When the warrants were revalued the incremental amount of $21,275 was also treated as additional debt discount and is being accreted over the new term of the 8% Series A Notes Payable. As of September 30, 2013 and December 31, 2012, the unaccreted debt discount related to warrants issued in conjunction with the 8% Series A Notes payable was $9,914 and $13,632. For the three and nine months ended September 30, 2013 accreted interest expense from the accretion of the debt discount was $1,239 and $3,718 and for the three and nine months ended September 30, 2012, accreted interest expense from the accretion of the debt discount was $1,239 and $3,718.



	During the third quarter of 2011, $25,000 plus accrued interest of the 8% Series A Notes Payable were repaid and 3 million of the associated warrants expired unexercised.



	Private Placement of 25% Notes Payable

	In 2010, the Company issued $400,000 in notes payable in order to finance a patent infringement lawsuit (see Note 14 - Contingencies to these condensed consolidated financial statements). The notes payable accrue interest at 25% per annum and mature upon the earlier of September 1, 2013 or the date on which the Company receives net proceeds from the patent infringement claim. In addition to the base interest of 25% per annum, the lenders are entitled to Bonus Interest equal to the following:



	a.	First monies realized by the Company from its share of the net proceeds of the lawsuit shall be allocated and paid to the Lender until the principal and base interest accruing has been fully paid.
	b.	The next monies from the net proceeds of the litigation settlement will be paid to the Company to reimburse for out-of-pocket legal costs related to the lawsuit.



	c.	The next $825,000 of proceeds will be split 50%/50% between the Company and the Lenders.
	d.	The next $1 million realized by the Company shall be allocated 90% to the Company and 10% to the Lenders.
	e.	The next $1 million realized by Company shall be allocated 85% to Company and 15% to Lenders.
	f.	All remaining proceeds realized by Company shall be allocated 80% to Company and 20% to Lenders.



The Lenders have a security interest in the Company’s patent infringement claim in which the Lender has the right to the net proceeds of this lawsuit to satisfy outstanding principal and interest under the notes.



As part of the private placement of the 25% notes payable, the Company incurred debt placement fees of $34,500 in 2010. These debt placement fees have been treated as deferred finance charges and are being amortized to interest expense over two years. During 2012, the deferred finance charges were fully amortized. For the three and nine months ended September 30, 2012 amortization of deferred finance charges was $3,937 and $12,562.



In December 2012, $250,000 of these notes payable and accrued interest of $122,397 were converted into 8,219,911 shares of the Company’s common stock. In March 2013, the remaining $150,000 of the notes payable and accrued interest of $70,000 were converted into 3 million shares of the Company’s common stock. Accrued interest of $13,895 was paid in cash.



Aggregate Maturities of Long-term Debt



Aggregate maturities of the senior secured convertible notes, convertible notes and notes payable over the next five years are as follows:



2013		$	50,000
2014			-
2015			1,349,335
2016			-
2017			-

WARRANT_LIABILITY

WARRANT LIABILITY	9 Months Ended
WARRANT LIABILITY	Sep. 30, 2013
Warrant Liability [Abstract]	'
WARRANT LIABILITY	'

	NOTE 8 – WARRANT LIABILITY



	On December 31, 2012, the Company entered into an Investment Agreement, a Technology and Services Agreement, a Technology and Services Agreement with Zaah Technologies, Inc. (“Zaah”)., a Patent and Technology License Agreement, and an Asset Purchase Agreement (collectively the “Agreements”). Included in these Agreements were Warrants to purchase shares of the Company’s common stock.



	The warrants 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 September 30, 2013, the value of the warrants increased to $5,200,000 resulting in a charge to income of $5,984,749 for the three months ended September 30, 2013 and a charge to expense of $2,800,000 for the nine months ended September 30, 2013.

CONVERTIBLE_PREFERRED_STOCK

CONVERTIBLE PREFERRED STOCK	9 Months Ended
CONVERTIBLE PREFERRED STOCK	Sep. 30, 2013
Features Of Convertible Preferred Stock [Abstract]	'
CONVERTIBLE PREFERRED STOCK	'

	NOTE 9 – CONVERTIBLE PREFERRED STOCK



	Subscription Agreement



	The Company entered into a Subscription Agreement with VerifyMe, Inc. (“VerifyMe”) on January 31, 2013 (the “Subscription Agreement”). Under the terms of the Subscription Agreement VerifyMe subscribed to purchase 33,333,333 shares of the Company’s preferred stock and a warrant to purchase 33,333,333 shares of the Company’s common stock for $1 million at an exercise price of $0.12.



	At any time within two years after January 31, 2013, the subscriber has the right, but not the obligation to require the Company to repurchase all, but not less than all, of the capital stock of the Company and warrants exercisable for capital stock of the Company held by subscriber in exchange for the price originally paid by the subscriber therefore upon the occurrence of any of the following events:(i) the consummation of any bona fide business acquisition, (ii) the incurring of any indebtedness by the Company in an amount in excess of $2 million, (iii) the issuance or sale of any security having a preference on liquidation senior to common stock, or (iv) the sale by the Company of capital stock or warrants exercisable for its capital stock at a price below $0.03 per share.



	In accordance with FASB ASC 480 and 815, the Preferred Stock has been classified as permanent equity and was valued at $1 million at January 31, 2013.



	The conversion feature of the Preferred Stock is an embedded derivative, which is classified as a liability in accordance with FASB ASC 815 and was valued in accordance with FASB ASC 470 as a beneficial conversion feature at a fair market value of $1 million at January 31, 2013 and $1,500,000 at September 30, 2013. This was classified as an embedded derivative liability and a discount to Preferred Stock. Because the Preferred Stock can be converted at any time, the full amount was accreted and classified as a reduction to the discount on Preferred Stock and a deemed dividend distribution in the full amount of $1 million.



	Because the Preferred Stock can be converted at any time, the embedded derivative is classified as a current liability at September 30, 2013.



	The warrants associated with the Preferred Stock were also classified as a liability and valued at a fair market of $2,995,791 at January 31, 2013. Because this amount was in entirely in excess of the transaction price, this amount was recorded as a charge to expenses of $2,995,791. 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 September 30, 2013, the value of the warrants increased to $3,300,000 resulting in an increase in income of $3,691,416 for the three months ended September 30, 2013 and a charge to expenses of $3,300,000 for the nine months ended September 30, 2013.



	The Convertible Preferred Stock has a preference in liquidation that the holders of the Convertible Preferred Stock are to be paid out of assets available for distribution prior to holders of common stock. The Convertible Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Convertible Preferred Stock can be converted. In addition, the Convertible Preferred Stockholders are to be paid dividends, based on the number of Convertible Preferred shares as if the shares had been converted to common shares, prior to the common stockholders receiving a dividend.



	The conversion price of the Preferred A shares is currently $0.03 per share. There are no arrearages on cumulative dividends.



	In August 2013, VerifyMe elected to convert in a cashless transaction an equal number of Preferred A stock valued at $366,667 to 12,222,222 shares of common stock.

FAIR_VALUE_OF_FINANCIAL_INSTRU

FAIR VALUE OF FINANCIAL INSTRUMENTS	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
FAIR VALUE OF FINANCIAL INSTRUMENTS	'
	NOTE 10 – 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.
	The Company has identified the following liabilities that are measured at fair value on a recurring basis, summarized as follows:

	30-Sep-13	Level 1			Level 2		Level 3		Total

	Derivative liability related to fair value of beneficial conversion feature	$	-		$	1,500,000	$	-	$	1,500,000
	Derivative liability related to fair value of warrants		-			-		8,500,000		8,500,000
	Total	$	-		$	1,500,000	$	8,500,000	$	10,000,000

	31-Dec-12	Level 1			Level 2		Level 3		Total

	Derivative liability related to fair value of warrants		-			-		2,400,000		2,400,000
	Total	$	-		$	-	$	2,400,000	$	2,400,000

	The following table details the approximate fair value measurements within the fair value hierarchy of the Company’s derivative liabilities using Level 3 inputs:
		Total

	Balance at January 1, 2013	$	2,400,000
	Derivative liabilities resulting from Subscription Agreement		2,998,027
	Change in fair value of derivative liabilities		3,101,973

	Balance at September 30, 2013	$	8,500,000

	The following table details the approximate fair value measurements within the fair value hierarchy of the Company’s derivative liabilities using Level 3 inputs:
		Total

	Balance at July 1, 2013	$	18,176,165
	Change in fair value of derivative liabilities		(9,676,165	)

	Balance at September 30, 2013	$	8,500,000

	As of September 30, 2013, the beneficial conversion feature of the preferred stock is treated as an embedded derivative liability and changes in the fair value were recognized in earnings. The preferred stock 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:
		30-Sep-13
	Closing Trading Price of Common Stock		$0.10
	Series A Preferred Stock Conversion Price		$0.03
	Intrinsic value of conversion option per share		$0.07

	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 as of September 30, 2013 and December 31, 2012.
	As of September 30, 2013 and December 31, 2012, the Company’s outstanding warrants are treated as derivative liabilities and changes in the fair value were recognized in earnings. These common stock purchase warrants did not trade in an active securities market, and as such, the Company estimated the fair value of these warrants using Black-Scholes and the following assumptions:
		30-Sep-13
	Annual Dividend Yield		0.00%
	Expected Life (Years)		4.25 – 4.34
	Risk-Free Interest Rate		1.39%
	Expected Volatility		266.90%

	Expected volatility was based primarily on historical volatility. Historical volatility was computed using daily pricing observations for recent periods. The Company believed 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.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
STOCKHOLDERS' EQUITY	Sep. 30, 2013
Stockholders' Equity Note [Abstract]	'
STOCKHOLDERS' EQUITY	'

	NOTE 11 – STOCKHOLDERS’ EQUITY



	In January and February 2013, the Company received $185,000 from the sale of 3,700,000 units from private placements consisting of shares of the Company’s common stock and warrants to purchase shares of the Company’s common stock at an exercise price of $0.10 per share. The shares and warrants were sold in units with each unit comprised of one share and one warrant at a purchase price of $.05 per unit.



	In January 2013, the Company commenced private placements consisting of shares of the Company’s common stock and warrants to purchase shares of the Company’s common stock at an exercise price of $0.12 per share. The shares and warrants were sold in units with each unit comprised of one share and one warrant at a purchase price of $.045 per unit. The company sold 1,111,111 units and raised $50,000.



	On February 1, 2013, an investor exercised a warrant to purchase 1 million shares of the Company’s common stock that raised $10,000 for the Company.



	In February and March 2013, four investors exercised options to purchase 3,335,000 shares of the Company’s common stock that raised $17,919 for the Company.

STOCK_OPTIONS_AND_WARRANTS

STOCK OPTIONS AND WARRANTS	9 Months Ended
STOCK OPTIONS AND WARRANTS	Sep. 30, 2013
Equity [Abstract]	'
STOCK OPTIONS AND WARRANTS	'
	NOTE 12 – STOCK OPTIONS AND WARRANTS

	During 1999, the Board of Directors (“Board”) of the Company adopted, with the approval of the stockholders, a Stock Option Plan. In 2000, the Board superseded that plan and created a new Stock Option Plan, pursuant to which it is authorized to grant options to purchase up to 1.5 million shares of common stock. On December 17, 2003, the Board, with approval of the stockholders, superseded this plan and created the 2003 Stock Option Plan (the “Plan”). Under the Plan the Company is authorized to grant options to purchase up to 18,000,000 shares of common stock to the Company’s employees, officers, directors, consultants, and other agents and advisors. The Plan is intended to permit stock options granted to employees under the Plan to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended (“Incentive Stock Options”). All options granted under the Plan, which are not intended to qualify as Incentive Stock Options, are deemed to be non-qualified options (“Non-Statutory Stock Options”). As of September 30, 2013, there are 16,925,996 options that have been issued and exercised, 1,000,000 options that have been issued and are unexercised and 74,004 options that are available to be issued under the Plan.

	The Plan is administered by a committee of the Board of Directors (“Stock Option 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 to non-employees. Options granted under the agreements are expensed when the related service or product is provided.

	Effective October 8, 2012, the Company entered into a three year agreement with the Vice Chairman of the Board of the Company, with an annual compensation of $200,000 per year. In addition, upon execution of the agreement the Company has agreed to issue options to the Vice Chairman to purchase 5% of the shares of the Company’s fully diluted common stock at an exercise price of $.05 per share, subsequent to the Company receiving funding of $2.5 million. The Company has raised the $2.5 million in funding and on June 25, 2013, the Company issued the Vice Chairman 19 million options in satisfaction of the 5% of the shares of the Company’s fully diluted common stock clause. The Company used 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 146.1%, risk-free interest rate of 2.6% and expected option life of ten years. The fair value of options issued was $3,767,700 which was expensed immediately.

	Effective October 16, 2012, the Company entered into a three year agreement with the President and Chief Executive Officer of the Company with an annual compensation of $200,000 per year. In addition, upon execution of the agreement the Company has agreed to issue options to the President to purchase 5% of the shares of the Company’s fully diluted common stock at an exercise price of $.05 per share, subsequent to the Company receiving funding of $2.5 million and on June 25, 2013, the Company issued the President and Chief Executive Officer 19 million options in satisfaction of the 5% of the shares of the Company’s fully diluted common stock clause. The Company used 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 146.1%, risk-free interest rate of 2.6% and expected option life of ten years. The fair value of options issued was $3,767,700 which was expensed immediately.

	On January 22, 2013, the Company issued options to an employee to purchase 1 million shares of the Company’s common stock at an exercise price of $.05, with a term of ten years. The options vest as follows: 250,000 immediately, 250,000 in one year and 500,000 in two years The Company used 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 222%, risk-free interest rate of 1.9% and expected option life of ten years. The fair value of options issued was $99,972 of which $25,000 was expensed immediately and the remainder is being expensed over the vesting terms. The total expense for the three and nine months ended September 30, 2013 was $12,599 and $59,367.

	On February 25, 2013, the Company issued options to an employee to purchase 500,000 shares of the Company’s common stock at an exercise price of $.05, with a term of ten years. The options vest as follows: 200,000 in one year, 200,000 in two years and 100,000 in three years. The Company used 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 259%, risk-free interest rate of 1.9% and expected option life of ten years. The fair value of options issued was $89,998. The options were cancelled during the three months ended June 30, 2013. The total expense recognized of $5,000 was reversed upon cancellation of the options.

	On March 13, 2013, the Company issued an option to purchase 2 million shares of the Company’s common stock at an exercise price of $.05, with a term of ten years, to a member of the Board of Directors. The Company used 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 235%, risk-free interest rate of 2.0% and expected option life of ten years. The fair value of the option issued was $439,963 of which $219,982 was expensed immediately and the remainder will be expensed over one year. The total expense for the three and nine months ended September 30, 2013 was $55,447 and $341,122.

	On May 4, 2013, the Company issued an option to purchase 2 million shares of the Company’s common stock at an exercise price of $.05, with a term of ten years, to the a member of the Board of Directors. The options vest 50% immediately and 50% on May 4, 2014. The Company used 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 235%, risk-free interest rate of 1.78% and expected option life of ten years. The fair value of the option issued was $460,000 of which $230,000 was expensed immediately and the remainder will be expensed over one year. The total expense for the three and nine months ended September 30, 2013 was $57,973 and $323,890.

	On September 30, 2013, the Company issued an option to purchase 1 million shares of the Company’s common stock at an exercise price of $.15, with a term of ten years, to the Company’s Chief Operating Officer. The options vest 50% after the first year and 50% at the end of 24 months. The Company used 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 ranging from 268.4% to 272.8%, risk-free interest rate of 1.39% and expected option life of ten years. The fair value of the option issued was $99,840. No expense was recognized for the three and nine months ended September 30, 2013.

	A summary of incentive stock option transactions for employees since December 31, 2011 is as follows:
									Weighted Average
		Option/Warrant			Exercise				Exercise
		Shares			Price				Price
	Outstanding, December 31, 2011		6,390,000		$	0.00125			$	0.00125

	Granted		15,000,000			0.05 - 0.15				0.06
	Transferred from non-employee options		200,000			0.05				-
	Exercised		(5,823,333	)		0.00125 - 0.15				-
	Expired/Returned		-			-				-

	Outstanding, December 31, 2012		15,766,667			0.00125 to 0.10				0.06

	Granted		44,500,000			0.05 - 0.15				0.04
	Exercised		(900,000	)		0.00125				-
	Expired/Returned		(500,000	)		0.05				-

	Outstanding, September 30, 2013		58,866,667			$0.05 to $0.15			$	0.05

	Exercisable, September 30, 2013		50,116,667			$0.05 to $0.15			$	0.06

	Weighted Average Remaining Life, Exercisable, September 30, 2013 (years)		9.6

	The following tables summarize non-employee stock option/warrant activity of the Company since December 31, 2011:

									Weighted Average
		Option/Warrant			Exercise				Exercise
		Shares			Price				Price
	Outstanding, December 31, 2011		15,585,996			$0.00125 to $0.20			$	0.01

	Granted		72,422,221			0.05 to 0.10				0.08
	Transferred to employee options		(200,000	)		(0.05	)			-
	Exercised		(5,000,996	)		0.00125				-
	Expired		-			-				-

	Outstanding, December 31, 2012		82,807,221			0.00125 to 0.20				0

	Granted		38,144,444			0.10 to 0.15				0.03
	Exercised		(3,435,000	)		0.00125 - 0.07				-
Expired		-			-				-

Outstanding, September 30, 2013		117,516,665			$0.01 to $.20			$	0.1

Exercisable, September 30, 2013		117,516,665			$0.01 to $.20			$	0.1

Weighted Average Remaining Life, Exercisable, September 30, 2013 (years)		6.8

OPERATING_LEASES

OPERATING LEASES	9 Months Ended
OPERATING LEASES	Sep. 30, 2013
Leases, Operating [Abstract]	'
OPERATING LEASES	'

	NOTE 13 – OPERATING LEASES



	For the three and nine months ended September 30, 2013 total rent expense under leases amounted to $17,532 and $35,876 and included in general and administrative expense. For the three and nine months ended September 30, 2012 total rent expense under leases amounted to $0. At September 30, 2013, the Company was obligated under various non-cancelable operating lease arrangements for property as follows:



	2013	$	17,532
	2014		71,766
	2015		74,637
	2016		31,605

		$	195,540

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	9 Months Ended
RELATED PARTY TRANSACTIONS	Sep. 30, 2013
Related Party Transactions [Abstract]	'
RELATED PARTY TRANSACTIONS	'

	NOTE 14 – RELATED PARTY TRANSACTIONS



	At September 30, 2013, seven shareholders of the Company held $550,249 of the senior secured convertible notes payable and at December 31, 2012, five shareholders of the Company held $491,249 of the senior secured convertible notes payable.



	At September 30, 2013, one shareholder of the Company held $98,000 and at December 31, 2012 held $140,000 of convertible notes payable.



	At September 30, 2013 and December 31, 2012, three shareholders of the Company held $661,000 of unsecured notes payable.



	The Company maintains an office at the home of its Vice Chairman. No formal lease agreement exists and no direct rent expense has been incurred. However, related occupancy costs of $0 and $2,199 were incurred during the three and nine months ended September 30, 2013 and $9,360 and $24,523 were incurred during the three and nine months ended September 30, 2012.

MAJOR_CUSTOMERS

MAJOR CUSTOMERS	9 Months Ended
MAJOR CUSTOMERS	Sep. 30, 2013
Major Customers [Abstract]	'
MAJOR CUSTOMERS	'

	NOTE 15 – MAJOR CUSTOMERS



	During the nine months ended September 30, 2013, the Company earned all of its revenue from one customer aggregating $3,140. At September 30, 2013, no amounts were due from that customer. During the nine months ended September 30, 2012, the Company earned all of its revenue from one customer aggregating $13,075. At September 30, 2012, amount due from that customer included in trade accounts receivable was $1,135.

CONTINGENCIES

CONTINGENCIES	9 Months Ended
CONTINGENCIES	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
CONTINGENCIES	'

	NOTE 16 – CONTINGENCIES



	In October 2010, the Company filed suit in the Western District of Pennsylvania against WS Packaging Group, Inc. (“WS”) alleging that WS infringed on one of the Company’s patents in the manufacture of MONOPOLY game pieces on behalf of McDonald’s Corp. On June 4, 2012, both WS and the Company filed a stipulation to dismiss the action without prejudice and enter into settlement negotiations. Settlement negotiations are ongoing.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Basis of Presentation

Principle of Consolidation

Use of Estimates

Comprehensive Income

Fair Value of Financial Instruments

Level 1: Quoted market prices in active markets for identical assets or liabilities

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data

Level 3: Unobservable inputs that are not corroborated by market data

The level in the fair value within which a fair value measurement falls is based on the lowest level input that is significant to the fair value measurement in its entirety.

Concentration of Credit Risk Involving Cash

Inventory

Inventory principally consists of penlights and pigments and is stated at the lower of cost (determined by the first-in, first-out method) or market.

Property and Equipment

Patents and Trademark

Long-Lived Assets

Deferred Financing Costs

Convertible Notes Payable

Revenue Recognition

Income taxes

Income Taxes

Stock-based Payments

Advertising Costs

Research and Development Costs

Earnings (Loss) Per Share

The following is a reconciliation of basic shares to diluted shares:

Three Months Ended September 30,

Nine Months Ended September 30,

2013

2012

2013

2012

Weighted-average shares – basic

247,476,627

145,144,603

240,255,146

145,144,603

Effect of dilutive securities

217,777,053

—

Weighted-average shares – diluted

465,253,680

145,144,603

240,255,146

145,144,603

Segment Information

Reclassification

Certain prior year balances have been reclassified to conform to current year presentation.

Recently Adopted Accounting Pronouncements

As of September 30, 2013 and for the period then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Sep. 30, 2013
Accounting Policies [Abstract]	'
Schedule of reconciliation of basic shares to diluted shares	'

		Three Months Ended September 30,				Nine Months Ended September 30,
		2013		2012		2013		2012
	Weighted-average shares – basic		247,476,627		145,144,603		240,255,146		145,144,603
	Effect of dilutive securities		217,777,053		—		—		—

	Weighted-average shares – diluted		465,253,680		145,144,603		240,255,146		145,144,603

NOTES_PAYABLE_Tables

NOTES PAYABLE (Tables)	9 Months Ended
NOTES PAYABLE (Tables)	Sep. 30, 2013
Debt Disclosure [Abstract]	'
Schedule of notes payable	'



		30-Sep-13			31-Dec-12

	Unsecured notes payable; interest at 10% per annum; principal and accrued interest due at maturity in September 2015	$	561,000		$	561,000

	Series A notes payable; interest at 8% per annum; principal and accrued interest due at extended maturity date in September 2015		150,000			150,000

	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 at 25% per annum; principal and interest due September 2013		-			150,000

	Less: Debt discount		(9,914	)		(13,632	)
			751,086			897,368

	Less: Current portion		50,000			200,000
	Long-term portion	$	701,086		$	697,368

Schedule of aggregate maturities of senior secured convertible notes	'
	2013	$	50,000
	2014		-
	2015		1,349,335
	2016		-
	2017		-

FAIR_VALUE_OF_FINANCIAL_INSTRU1

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Schedule of liabilities measured at fair value on a recurring basis	'

	30-Sep-13	Level 1			Level 2		Level 3		Total

	Derivative liability related to fair value of beneficial conversion feature	$	-		$	1,500,000	$	-	$	1,500,000
	Derivative liability related to fair value of warrants		-			-		8,500,000		8,500,000
	Total	$	-		$	1,500,000	$	8,500,000	$	10,000,000

	31-Dec-12	Level 1			Level 2		Level 3		Total

	Derivative liability related to fair value of warrants		-			-		2,400,000		2,400,000
	Total	$	-		$	-	$	2,400,000	$	2,400,000
Schedule of fair value measurements within the fair value hierarchy of derivative liabilities using Level 3 inputs	'

		Total

	Balance at January 1, 2013	$	2,400,000
	Derivative liabilities resulting from Subscription Agreement		2,998,027
	Change in fair value of derivative liabilities		3,101,973

	Balance at September 30, 2013	$	8,500,000

		Total

	Balance at July 1, 2013	$	18,176,165
	Change in fair value of derivative liabilities		(9,676,165	)

	Balance at September 30, 2013	$	8,500,000
Schedule of embedded derivative liability valuation assumptions	'
		30-Sep-13
	Closing Trading Price of Common Stock		$0.10
	Series A Preferred Stock Conversion Price		$0.03
	Intrinsic value of conversion option per share		$0.07
Schedule of common stock purchase warrants valuation assumptions	'
		30-Sep-13
	Annual Dividend Yield		0.00%
	Expected Life (Years)		4.25 – 4.34
	Risk-Free Interest Rate		1.39%
	Expected Volatility		266.90%

STOCK_OPTIONS_AND_WARRANTS_Tab

STOCK OPTIONS AND WARRANTS (Tables)	9 Months Ended
STOCK OPTIONS AND WARRANTS (Tables)	Sep. 30, 2013
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]	'
Schedule of incentive stock option transactions for employees	'
								Weighted Average
		Option/Warrant			Exercise			Exercise
		Shares			Price			Price
	Outstanding, December 31, 2011		6,390,000		$	0.00125		$	0.00125

	Granted		15,000,000			0.05 - 0.15			0.06
	Transferred from non-employee options		200,000			0.05			-
	Exercised		(5,823,333	)		0.00125 - 0.15			-
	Expired/Returned		-			-			-

	Outstanding, December 31, 2012		15,766,667			0.00125 to 0.10			0.06

	Granted		44,500,000			0.05 - 0.15			0.04
	Exercised		(900,000	)		0.00125			-
	Expired/Returned		(500,000	)		0.05			-

	Outstanding, September 30, 2013		58,866,667			$0.05 to $0.15		$	0.05

	Exercisable, September 30, 2013		50,116,667			$0.05 to $0.15		$	0.06

	Weighted Average Remaining Life, Exercisable, September 30, 2013 (years)		9.6


Schedule of non-employee stock option/warrant activity	'
								Weighted Average
		Option/Warrant			Exercise			Exercise
		Shares			Price			Price
	Outstanding, December 31, 2011		15,585,996			$0.00125 to $0.20		$	0.01

	Granted		72,422,221			0.05 to 0.10			0.08
	Transferred to employee options		(200,000	)		(0.05	)		-
	Exercised		(5,000,996	)		0.00125			-
	Expired		-			-			-

	Outstanding, December 31, 2012		82,807,221			0.00125 to 0.20			0

	Granted		38,144,444			0.10 to 0.15			0.03
	Exercised		(3,435,000	)		0.00125 - 0.07			-
	Expired		-			-			-

	Outstanding, September 30, 2013		117,516,665			$0.01 to $.20		$	0.1

	Exercisable, September 30, 2013		117,516,665			$0.01 to $.20		$	0.1

	Weighted Average Remaining Life, Exercisable, September 30, 2013 (years)		6.8

OPERATING_LEASES_Tables

OPERATING LEASES (Tables)	9 Months Ended
OPERATING LEASES (Tables)	Sep. 30, 2013
Leases, Operating [Abstract]	'
Schedule of non-cancelable operating lease arrangements for property	'
	2013	$	17,532
	2014		71,766
	2015		74,637
	2016		31,605

		$	195,540

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended		9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Accounting Policies [Abstract]	'	'	'	'
Weighted-average shares - basic	247,476,627	145,144,603	240,255,146	145,144,603
Effect of dilutive securities	217,777,053	'	'	'
Weighted-average shares - diluted	465,253,680	145,144,603	240,255,146	145,144,603

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
			Segment
			Institution
Finite-Lived Intangible Assets [Line Items]	'	'	'	'
Number of financial institutions at which company's cash and cash equivalents are held	'	'	2	'
Property and equipment estimated useful lives	'	'	'three to seven years	'
Property and equipment depreciation method	'	'	'straight-line method	'
Non-cash items included incurred in research and development	$137,500	$0	$412,500	$0
Number of operating segment	'	'	1	'
General and administrative expense	'	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'	'
Depreciation of property and equipment	17,313	0	51,525	0
Sales and marketing expenses	'	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'	'
Advertising costs	$23,615	$0	$29,371	$0
Patents and Trademark	'	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'	'
Number of patents issued	'	'	5	'
Amortization method of patents	'	'	'straight-line method	'
Patents and Trademark \| Minimum	'	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'	'
Estimated lives of patents	'	'	'17 years	'
Patents and Trademark \| Maximum	'	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'	'
Estimated lives of patents	'	'	'20 years	'

PATENTS_AND_TRADEMARK_Detail_T

PATENTS AND TRADEMARK (Detail Textuals) (Patents and Trademark, USD $)	3 Months Ended			9 Months Ended
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2012	Patent	Sep. 30, 2012
Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Number of patents issued	'	'	'	5	'
Amortization method of patents	'	'	'	'straight-line method	'
Capitalized patent costs	$0	'	$0	$21,594	$2,406
Future estimated annual amortization in December 31, 2013	13,100	'	'	13,100	'
Future estimated annual amortization in December 31, 2014	13,100	'	'	13,100	'
Future estimated annual amortization in December 31, 2015	13,100	'	'	13,100	'
Future estimated annual amortization in December 31, 2016	13,100	'	'	13,100	'
Future estimated annual amortization in December 31, 2017	13,100	'	'	13,100	'
Reallocated purchase price from intangibles to capital equipment based	'	200,000	'	'	'
General and administrative expense	'	'	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Amortization expense	$3,277	'	$2,768	$9,814	$8,328
Minimum	'	'	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Estimated lives of patents	'	'	'	'17 years	'
Maximum	'	'	'	'	'
Finite-Lived Intangible Assets [Line Items]	'	'	'	'	'
Estimated lives of patents	'	'	'	'20 years	'

INCOME_TAXES_Detail_Textuals

INCOME TAXES (Detail Textuals) (USD $)	3 Months Ended		9 Months Ended		167 Months Ended
INCOME TAXES (Detail Textuals) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]	'	'	'	'	'	'
Income tax expense	'	'	'	'	($165,000)	'
Net operating loss carryforward	'	'	'	'	'	$8,300,000

SENIOR_SECURED_CONVERTIBLE_NOT1

SENIOR SECURED CONVERTIBLE NOTES PAYABLE (Detail Textuals) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Jun. 30, 2013	31-May-07	Dec. 31, 2012	Dec. 31, 2006	Jun. 30, 2011	Feb. 28, 2006
	Sep. 30, 2013	Dec. 31, 2012	10% Senior Secured Convertible Promissory Notes	10% Senior Secured Convertible Promissory Notes	10% Senior Secured Convertible Promissory Notes	10% Senior Secured Convertible Promissory Notes	10% Senior Secured Convertible Promissory Notes	10% Senior Secured Convertible Promissory Notes
Debt Instrument [Line Items]	'	'	'	'	'	'	'	'
Private placement of convertible notes principal amount	'	'	$225,000	'	'	'	$596,500	$800,000
Interest rate	'	'	'	'	'	'	10.00%	10.00%
Sale price of notes payable	'	'	'	'	'	800,000	'	'
Amount of interest rate increased	'	'	'	12.00%	'	'	'	'
Remianing debt and accrued interest was extended until September 15, 2015	'	'	'	'	178,749	'	'	'
Outstanding principal balance on notes	550,249	775,249	'	'	'	'	'	'
Accrued interest	478,370	600,091	181,125	'	'	'	'	'
Common stock shares issued on conversion of debt (in shares)	'	'	7,400,000	'	'	'	'	'
Common stock value issued on conversion of debt	'	'	$1,628,000	'	'	'	'	'

SENIOR_SECURED_CONVERTIBLE_NOT2

SENIOR SECURED CONVERTIBLE NOTES PAYABLE (Detail Textuals 1) (USD $)	167 Months Ended	9 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Jun. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
		10% Senior Secured Convertible Promissory Notes	10% Senior Secured Convertible Promissory Notes	10% Senior Secured Convertible Promissory Notes	10% Senior Secured Convertible Promissory Notes
				Minimum	Maximum
Debt Instrument [Line Items]	'	'	'	'	'
Repurchase of notes issued exercise by warrants	'	8,000,000	'	'	'
Term of warrants	'	'10 years	'	'	'
Exercise price (in dollars per share)	'	0.01	'	'	'
Fair value of warrants issued for deferred finance charges	$392,376	$392,376	'	'	'
Method used to calculate fair value of warrants	'	'Black-Scholes option pricing model	'	'	'
Dividend yield	'	0.00%	'	'	'
Expected volatility	'	'	'	169.00%	284.00%
Risk-free interest rate	'	'	'	3.60%	4.50%
Expected warrant term	'	'10 years	'	'	'
Amortization period	'	'1 year	'	'	'
Amount received for exercised of warrants	'	'	80,000	'	'
Number of warrants issued	'	'	8,000,000	'	'
Proceeds from equity financing	'	$5,000,000	'	'	'
Percent discount on transfer	'	30.00%	'	'	'

CONVERTIBLE_NOTES_PAYABLE_Deta

CONVERTIBLE NOTES PAYABLE (Detail Textuals) (USD $)	1 Months Ended	9 Months Ended	12 Months Ended
CONVERTIBLE NOTES PAYABLE (Detail Textuals) (USD $)	Mar. 19, 2013	Sep. 30, 2013	Dec. 31, 2008	Dec. 31, 2007	Dec. 31, 2012
Debt Instrument [Line Items]	'	'	'	'	'
Convertible notes payable	'	$98,000	'	'	$140,000
Accrued interest	'	478,370	'	'	600,091
10% Convertible Promissory Notes	'	'	'	'	'
Debt Instrument [Line Items]	'	'	'	'	'
Private placement of convertible notes principal amount	'	'	'	400,000	'
Interest rate	'	10.00%	'	10.00%	'
Maturity date	'	'2015-09	'	'2008-08	'
Proceeds from note payable	28,000	'	25,000	375,000	'
Convertible notes payable	126,000	140,000	'	'	'
Common stock shares issued on conversion of debt (in shares)	5,250,000	'	'	'	'
Warrants issued	'	18,375,000	'	'	'
Accrued interest	'	87,150	'	'	78,750
10% Convertible Promissory Notes \| Series A Preferred Stock	'	'	'	'	'
Debt Instrument [Line Items]	'	'	'	'	'
Initial conversion price per share (in dollars per share)	'	'	'	$0.01	'
10% Convertible Promissory Notes \| Vice Chairman	'	'	'	'	'
Debt Instrument [Line Items]	'	'	'	'	'
Proceeds from note payable	14,000	'	'	'	'
Convertible notes payable	$140,000	'	'	'	'
Common stock shares issued on conversion of debt (in shares)	2,625,000	'	'	'	'

NOTES_PAYABLE_Summary_Details

NOTES PAYABLE - Summary (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Debt Instrument [Line Items]	'	'
Less: Debt discount	($9,914)	($13,632)
Notes payable	751,086	897,368
Less: Current portion	50,000	200,000
Long-term portion	701,086	697,368
Unsecured notes payable; interest at 10% per annum; principal and accrued interest due at maturity in September 2015	'	'
Debt Instrument [Line Items]	'	'
Notes payable	561,000	561,000
Series A notes payable; interest at 8% per annum; principal and accrued interest due at extended maturity date in September 2015	'	'
Debt Instrument [Line Items]	'	'
Notes payable	150,000	150,000
Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due)	'	'
Debt Instrument [Line Items]	'	'
Notes payable	50,000	50,000
Notes payable, interest at 25% per annum; principal and interest due September 2013	'	'
Debt Instrument [Line Items]	'	'
Notes payable	'	$150,000

NOTES_PAYABLE_Information_rega

NOTES PAYABLE - Information regarding notes payable - (Parentheticals) (Details)	Sep. 30, 2013	Dec. 31, 2012	Jun. 30, 2012	Sep. 30, 2013	Dec. 31, 2012	Jun. 30, 2011	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Dec. 31, 2012
	Unsecured notes payable; interest at 10% per annum; principal and accrued interest due at maturity in September 2015	Unsecured notes payable; interest at 10% per annum; principal and accrued interest due at maturity in September 2015	Unsecured notes payable; interest at 10% per annum; principal and accrued interest due at maturity in September 2015	Series A notes payable; interest at 8% per annum; principal and accrued interest due at extended maturity date in September 2015	Series A notes payable; interest at 8% per annum; principal and accrued interest due at extended maturity date in September 2015	Series A notes payable; interest at 8% per annum; principal and accrued interest due at extended maturity date in September 2015	Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due)	Series A notes payable; interest at 8% per annum; principal and accrued interest due at maturity in October 2011 (past due)	Notes payable, interest at 25% per annum; principal and interest due September 2013	Notes payable, interest at 25% per annum; principal and interest due September 2013
Debt Instrument [Line Items]	'	'	'	'	'	'	'	'	'	'
Interest rate	10.00%	10.00%	10.00%	8.00%	8.00%	8.00%	8.00%	8.00%	25.00%	25.00%

NOTES_PAYABLE_Aggregate_Maturi

NOTES PAYABLE - Aggregate Maturities of Long-term Debt (Details 1) (USD $)	Sep. 30, 2013
Debt Disclosure [Abstract]	'
2013	$50,000
2014	'
2015	1,349,335
2016	'
2017	'

NOTES_PAYABLE_Detail_Textuals

NOTES PAYABLE (Detail Textuals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Debt Instrument [Line Items]	'	'
Accrued interest	$478,370	$600,091
Notes Payable	'	'
Debt Instrument [Line Items]	'	'
Accrued interest	$355,781	$394,281

NOTES_PAYABLE_Detail_Textuals_

NOTES PAYABLE (Detail Textuals 1) (USD $)	3 Months Ended
NOTES PAYABLE (Detail Textuals 1) (USD $)	Jun. 30, 2012	Sep. 30, 2013	Dec. 31, 2012
Debt Instrument [Line Items]	'	'	'
Accrued interest	'	478,370	$600,091
Unsecured notes payable	'	'	'
Debt Instrument [Line Items]	'	'	'
Proceeds from note payable	200,000	'	'
Interest rate	10.00%	10.00%	10.00%
Accrued interest	'	'	$9,167
Number of shares issued on conversion of notes payable (in shares)	'	'	4,703,711

NOTES_PAYABLE_Detail_Textuals_1

NOTES PAYABLE (Detail Textuals 2) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Jan. 31, 2010	Aug. 31, 2009	Dec. 31, 2010	Dec. 31, 2009	Sep. 30, 2011
			8% Series A Notes Payable	8% Series A Notes Payable	8% Series A Notes Payable	8% Series A Notes Payable	8% Series A Notes Payable
			Unit	Unit		Unit
Debt Instrument [Line Items]	'	'	'	'	'	'	'
Convertible notes payable	$98,000	$140,000	$25,000	$300,000	'	$200,000	$50,000
Number of units	'	'	0.5	6	'	4	'
Interest rate	'	'	8.00%	'	'	8.00%	8.00%
Number of shares of common stock	'	'	'	'	'	'	2,000,000
Warrants issued	'	'	1,000,000	'	1,000,000	8,000,000	'
Proceeds from note payable	'	'	17,500	'	'	180,000	'
Amount of commissions	'	'	$7,500	'	'	$20,000	'

NOTES_PAYABLE_Detail_Textuals_2

NOTES PAYABLE (Detail Textuals 3) (USD $)

Sep. 30, 2013

Dec. 31, 2012

Jun. 30, 2011

Dec. 31, 2009

Sep. 30, 2013

23-May-13

Dec. 31, 2012

Dec. 31, 2009

Jan. 31, 2010

Sep. 30, 2013

Sep. 30, 2011

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2012

Series A notes payable; interest at 8% per annum; principal and accrued interest due at extended maturity date in September 2015

8% Series A Notes Payable

Minimum

Maximum

Debt Instrument [Line Items]

Amount of note payable

$150,000

Interest rate

8.00%

Warrants issued

6,000,000

8,000,000

1,000,000

8,000,000

Method used to calculate fair value of warrants

'Black-Scholes option pricing model

Fair-value of the warrants

21,275

15,450

20,143

Dividend yield

0.00%

Expected volatility

60.00%

30.90%

34.50%

28.60%

Risk-free interest rate

1.52%

0.95%

1.06%

0.84%

Expected warrant term

'1 year 3 months

'2 years

Discount of notes payable (in dollars)

9,914

13,632

9,914

13,632

Interest Expense

1,239

3,718

Amount of notes payable repaid with accrued interest

$25,000

Number of warrants expired unexercised

3,000,000

Common stock, shares authorized

675,000,000

425,000,000

NOTES_PAYABLE_Detail_Textuals_3

NOTES PAYABLE (Detail Textuals 4) (Private Placement of 25% Notes Payable, USD $)	Dec. 31, 2010
Private Placement of 25% Notes Payable	'
Debt Instrument [Line Items]	'
Note payable, amount	$400,000
Interest rate	25.00%

NOTES_PAYABLE_Detail_Textuals_4

NOTES PAYABLE (Detail Textuals 5) (Private Placement of 25% Notes Payable, USD $)	12 Months Ended
	Dec. 31, 2010
Litigation Case Three	'
Debt Instrument [Line Items]	'
Proceeds from litigation settlement	$825,000
Percentage allocated to company	50.00%
Percentage allocated to lenders	50.00%
Litigation Case Four	'
Debt Instrument [Line Items]	'
Proceeds from litigation settlement	1,000,000
Percentage allocated to company	90.00%
Percentage allocated to lenders	10.00%
Litigation Case Five	'
Debt Instrument [Line Items]	'
Proceeds from litigation settlement	$1,000,000
Percentage allocated to company	85.00%
Percentage allocated to lenders	15.00%
Litigation Case Six	'
Debt Instrument [Line Items]	'
Percentage allocated to company	80.00%
Percentage allocated to lenders	20.00%

NOTES_PAYABLE_Detail_Textuals_5

NOTES PAYABLE (Detail Textuals 6) (USD $)	9 Months Ended	167 Months Ended		1 Months Ended	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012	Mar. 31, 2013	Sep. 30, 2012	Sep. 30, 2012	Dec. 31, 2012	Dec. 31, 2010
	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012	Private Placement of 25% Notes Payable	Private Placement of 25% Notes Payable	Private Placement of 25% Notes Payable	Private Placement of 25% Notes Payable	Private Placement of 25% Notes Payable
Debt Instrument [Line Items]	'	'	'	'	'	'	'	'
Interest rate	'	'	'	'	'	'	'	25.00%
Debt placement fees	'	'	'	'	'	'	'	$34,500
Amortization of deferred finance charges	'	40,800	'	'	3,937	12,562	'	'
Private placement of convertible notes	'	'	'	150,000	'	'	250,000	'
Accrued interest	478,370	478,370	600,091	70,000	'	'	122,397	'
Number of shares issued on conversion of notes payable (in shares)	'	'	'	3,000,000	'	'	8,219,911	'
Accrued interest paid in cash	$13,895	$53,336	'	$13,895	'	'	'	'

WARRANT_LIABILITY_Detail_Textu

WARRANT LIABILITY (Detail Textuals) (USD $)	3 Months Ended	9 Months Ended
WARRANT LIABILITY (Detail Textuals) (USD $)	Sep. 30, 2013	Sep. 30, 2013	Dec. 31, 2012
Major Agreements [Line Items]	'	'	'
Warrant liability	$8,500,000	$8,500,000	$2,400,000
Agreements \| Zaah Technologies	'	'	'
Major Agreements [Line Items]	'	'	'
Warrant liability	'	'	2,400,000
Value of the warrants increased	'	5,200,000	'
Income (Expenses) charged for warrant	$5,984,749	($2,800,000)	'

CONVERTIBLE_PREFERRED_STOCK_De

CONVERTIBLE PREFERRED STOCK (Detail Textuals) (USD $)

9 Months Ended

167 Months Ended

1 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

Sep. 30, 2013

Jan. 31, 2013

Sep. 30, 2013

Jan. 31, 2013

Sep. 30, 2013

Aug. 31, 2013

Sep. 30, 2013

Jan. 31, 2013

Aug. 31, 2013

Jan. 31, 2013

Sep. 30, 2013

Subscription Agreement

VerifyMe

Preferred Class

Convertible Preferred Stock

Common Stock

VerifyMe

Class of Stock [Line Items]

Number of preferred stock purchased

33,333,333

Number of common stock called by warrants (in shares)

33,333,333

Value of shares issued

$1,000,000

Exercise price of warrants

0.12

Convertible preferred stock description

'(i) the consummation of any bona fide business acquisition, (ii) the incurring of any indebtedness by the Company in an amount in excess of $2 million, (iii) the issuance or sale of any security having a preference on liquidation senior to common stock, or (iv) the sale by the Company of capital stock or warrants exercisable for its capital stock at a price below $0.03 per share.

Excess amount for incurring indebtedness

2,000,000

Exercise price of capital stock or warrant

$0.03

Preferred stock value

633,333

1,000,000

Beneficial conversion feature at fair market value

1,000,000

1,500,000

1,000,000

1,500,000

Fair value of warrants in excess of consideration for convertible preferred stock

2,995,791

3,300,000

Fair value of warrants recorded as charge to expenses

2,995,791

3,691,416

3,300,000

Initial conversion price per share (in dollars per share)

$0.03

Preferred stock value in noncash transaction

$366,667

Shares of common stock shares issued on conversion

12,222,222

FAIR_VALUE_OF_FINANCIAL_INSTRU2

FAIR VALUE OF FINANCIAL INSTRUMENTS - Liabilities measured at fair value on recurring basis (Details) (Fair value on a recurring basis, USD $)	Sep. 30, 2013	Dec. 31, 2012
Level 1	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability related to fair value of beneficial conversion feature	'	'
Derivative liability related to fair value of warrants	'	'
Total	'	'
Level 2	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability related to fair value of beneficial conversion feature	1,500,000	'
Derivative liability related to fair value of warrants	'	'
Total	1,500,000	'
Level 3	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability related to fair value of warrants	8,500,000	2,400,000
Total	8,500,000	2,400,000
Total	'	'
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]	'	'
Derivative liability related to fair value of beneficial conversion feature	1,500,000	'
Derivative liability related to fair value of warrants	8,500,000	2,400,000
Total	$10,000,000	$2,400,000

FAIR_VALUE_OF_FINANCIAL_INSTRU3

FAIR VALUE OF FINANCIAL INSTRUMENTS - Fair value measurements within fair value hierarchy of derivative liabilities using Level 3 inputs (Details 1) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]	'	'
Beginning balance	$18,176,165	$2,400,000
Derivative liabilities resulting from Subscription Agreement	'	2,998,027
Change in fair value of derivative liabilities	-9,676,165	3,101,973
Ending balance	$8,500,000	$8,500,000

FAIR_VALUE_OF_FINANCIAL_INSTRU4

FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated fair value of embedded derivative liability using Black-Scholes (Details 2) (USD $)	Sep. 30, 2013
Fair Value Disclosures [Abstract]	'
Closing Trading Price of Common Stock	$0.10
Series A Preferred Stock Conversion Price	$0.03
Intrinsic value of conversion option per share	$0.07

FAIR_VALUE_OF_FINANCIAL_INSTRU5

FAIR VALUE OF FINANCIAL INSTRUMENTS - Estimated fair value of warrants using Black-Scholes (Details 3) (Warrants treated as Derivative Liabilities)	9 Months Ended
	Sep. 30, 2013
Fair Value Inputs Quantitative Information [Line Items]	'
Annual Dividend Yield	0.00%
Risk-Free Interest Rate	1.39%
Expected Volatility	266.90%
Minimum	'
Fair Value Inputs Quantitative Information [Line Items]	'
Expected Life (Years)	'4 years 3 months
Maximum	'
Fair Value Inputs Quantitative Information [Line Items]	'
Expected Life (Years)	'4 years 4 months 2 days

STOCKHOLDERS_EQUITY_Detail_Tex

STOCKHOLDERS' EQUITY (Detail Textuals) (USD $)	2 Months Ended	9 Months Ended	12 Months Ended				2 Months Ended		1 Months Ended	2 Months Ended
	Mar. 31, 2013	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2006	Dec. 31, 2001	Mar. 31, 2013	Feb. 01, 2013	Jan. 31, 2013	Feb. 28, 2013
							Investor	Investor	Private placement	Private placement
									Unit	Unit
Stockholders Equity Note [Line Items]	'	'	'	'	'	'	'	'	'	'
Number of units sold under private offering value	'	'	'	'	'	'	'	'	$50,000	$185,000
Number of units sold under private offering (in units)	'	'	'	'	'	'	'	'	1,111,111	3,700,000
Exercise price (in dollars per share)	'	'	'	'	'	'	'	'	0.12	0.1
Sale of units under private offering, Issue price per unit (in dollars per unit)	'	'	'	'	'	'	'	'	0.045	0.05
Number of common stock called by warrants (in shares)	'	'	'	'	'	'	'	1,000,000	'	'
Amount received for exercised of warrants	'	'	'	'	'	'	'	10,000	'	'
Number of investors	'	'	'	'	'	'	4	'	'	'
Stock option exercised share (in shares)	'	'	'	'	'	'	3,335,000	'	'	'
Stock option exercised value	$17,919	$17,919	$13,113	$10,000	$430	$232,059	$17,919	'	'	'

STOCK_OPTIONS_AND_WARRANTS_Inc

STOCK OPTIONS AND WARRANTS - Incentive Stock Option Transactions (Details) (Incentive stock options, USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Option/Warrant Shares	'	'
Outstanding	15,766,667	6,390,000
Granted	44,500,000	15,000,000
Transferred from non-employee options	'	200,000
Exercised	-900,000	-5,823,333
Expired/Returned	-500,000	'
Outstanding	58,866,667	15,766,667
Exercisable	50,116,667	'
Weighted Average Remaining Life, Exercisable, September 30, 2013 (years)	'9 years 7 months 6 days	'
Exercise Price	'	'
Outstanding	'	$0.00
Transferred from non-employee options	'	$0.05
Exercised	$0.00	'
Expired/Returned	$0.05	'
Weighted Average Exercise Price	'	'
Outstanding	$0.06	$0.00
Granted	$0.04	$0.06
Transferred from non-employee options	'	'
Exercised	'	'
Expired/Returned	'	'
Outstanding	$0.05	$0.06
Weighted Average Exercise Price Exercisable, September 30, 2013	$0.06	'
Minimum	'	'
Exercise Price	'	'
Outstanding	$0.00	'
Granted	$0.05	$0.05
Exercised	'	$0.00
Outstanding	$0.05	$0.00
Exercisable	$0.05	'
Maximum	'	'
Exercise Price	'	'
Outstanding	$0.10	'
Granted	$0.15	$0.15
Exercised	'	$0.15
Outstanding	$0.15	$0.10
Exercisable	$0.15	'

STOCK_OPTIONS_AND_WARRANTS_Non

STOCK OPTIONS AND WARRANTS - Non-Employee Stock Option/Warrant Activity (Details 1) (Stock Options and Warrants, USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Option/Warrant Shares	'	'
Outstanding	82,807,221	15,585,996
Granted	38,144,444	72,422,221
Transferred to employee options	'	-200,000
Exercised	-3,435,000	-5,000,996
Expired	'	'
Outstanding	117,516,665	82,807,221
Exercisable, September 30, 2013	117,516,665	'
Weighted Average Remaining Life, Exercisable, September 30, 2013 (years)	'6 years 9 months 18 days	'
Exercise Price	'	'
Transferred to employee options	'	($0.05)
Exercised	'	$0.00
Expired	'	'
Weighted Average Exercise Price	'	'
Outstanding	$0	$0.01
Granted	$0.03	$0.08
Transferred to employee options	'	'
Exercised	'	'
Expired	'	'
Outstanding	$0.10	$0
Exercisable, September 30, 2013	$0.10	'
Minimum	'	'
Exercise Price	'	'
Outstanding	$0.00	$0.00
Granted	$0.10	$0.05
Exercised	$0.00	'
Outstanding	$0.01	$0.00
Exercisable, September 30, 2013	$0.01	'
Maximum	'	'
Exercise Price	'	'
Outstanding	$0.20	$0.20
Granted	$0.15	$0.10
Exercised	$0.07	'
Outstanding	$0.20	$0.20
Exercisable, September 30, 2013	$0.20	'

STOCK_OPTIONS_AND_WARRANTS_Det

STOCK OPTIONS AND WARRANTS (Detail Textuals)	9 Months Ended	12 Months Ended			9 Months Ended
	Sep. 30, 2013	Dec. 31, 2012	Dec. 31, 1999	Dec. 17, 2013	Sep. 30, 2013
	Incentive stock options	Incentive stock options	Stock option 2000 plan	Stock option 2003 plan	Stock option 2003 plan
			Stock options	Stock options	Incentive stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'
Number of shares authorized to grant options	'	'	1,500,000	18,000,000	'
Exercise of options (in shares)	900,000	5,823,333	'	'	16,925,996
Number of options issued and unexercised	'	'	'	'	1,000,000
Number of options available to be issued	'	'	'	'	74,004

STOCK_OPTIONS_AND_WARRANTS_Det1

STOCK OPTIONS AND WARRANTS (Detail Textuals 1) (USD $)	0 Months Ended
Share data in Millions, except Per Share data, unless otherwise specified	Oct. 08, 2012	Oct. 16, 2012	Sep. 30, 2013
	Board Of Directors Chairman	President and Chief Operating Officer	Stock option 2003 plan
			Incentive stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'
Minimum percentage for exercise price of option, percentage of the fair market value of the common stock	'	'	100.00%
Minimum percentage for exercise price of option in case outstanding stock held by grantee, percentage of the fair market value of the common stock	'	'	110.00%
Percentage of outstanding stock held by grantee	'	'	10.00%
Maximum threshold limit for aggregate fair market value of stock for which an employee may exercise incentive stock options	'	'	$1,000,000
Maximum value of options to be exercised	'	'	100,000
Maximum value of options shall be deemed to be Non-Statutory stock options	'	'	100,000
Term of agreement	'3 years	'3 years	'
Officers' compensation	200,000	200,000	'
Percentage shares purchase (in shares)	5.00%	5.00%	'
Exercise price of funding (in dollars per share)	$0.05	$0.05	'
Funding received by company	2,500,000	2,500,000	'
Number of options issued	19	19	'
Percentage of fully diluted common stock issued as options	5.00%	5.00%	'
Method used to calculate grant-date fair value	'Black-Scholes option pricing model	'Black-Scholes option pricing model	'
Expected volatility	146.10%	146.10%	'
Risk-free interest rate	2.60%	2.60%	'
Expected option life	'10 years	'10 years	'
Fair value of options issued	$3,767,700	$3,767,700	'

STOCK_OPTIONS_AND_WARRANTS_Det2

STOCK OPTIONS AND WARRANTS (Detail Textuals 2) (Stock options)	0 Months Ended		1 Months Ended		9 Months Ended
	4-May-13	Mar. 13, 2013	Feb. 25, 2013	Jan. 22, 2013	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'
Method used to calculate the grant-date fair value of the warrants	'Black-Scholes option pricing model	'Black-Scholes option pricing model	'Black-Scholes option pricing model	'Black-Scholes option pricing model	'Black-Scholes option pricing model
Expected volatility	235.00%	235.00%	259.00%	222.00%	'
Risk-free interest rate	1.78%	2.00%	1.90%	1.90%	1.39%
Expected option life (in years)	'10 years	'10 years	'10 years	'10 years	'10 years
Minimum	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'
Expected volatility	'	'	'	'	268.40%
Maximum	'	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'
Expected volatility	'	'	'	'	272.80%

STOCK_OPTIONS_AND_WARRANTS_Det3

STOCK OPTIONS AND WARRANTS (Detail Textuals 3) (Stock options, USD $)

1 Months Ended

3 Months Ended

9 Months Ended

1 Months Ended

9 Months Ended

0 Months Ended

3 Months Ended

9 Months Ended

0 Months Ended

3 Months Ended

9 Months Ended

Jan. 22, 2013

Sep. 30, 2012

Sep. 30, 2013

Feb. 25, 2013

Sep. 30, 2013

Mar. 13, 2013

Sep. 30, 2012

Sep. 30, 2013

4-May-13

Sep. 30, 2012

Sep. 30, 2013

22-Jan-13

25-Feb-13

13-Mar-13

4-May-13

30-Sep-13

Employee

Director

Chief Operating Officer

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Number of options issued to purchase aggregate common stocks

1,000,000

500,000

2,000,000

1,000,000

Exercisable common stock share price

$0.05

$0.15

Term for options

'10 years

Fair value of options issued

$99,972

$89,998

$439,963

$460,000

$99,840

Fair value of option issued expensed immediately

25,000

230,000

Fair value of option issued total expense

12,599

59,367

55,447

341,122

57,973

323,890

Expense recognized upon cancellation

$5,000

Options vest immediately

250,000

219,982

Options vest one year

250,000

200,000

Options vest two years

500,000

200,000

Options vests year three

100,000

Percentage of options vests immediately

50.00%

Percentage of options vests on May 4, 2014

50.00%

Percentage of option vests after the first year

50.00%

Percentage of option vests at the end of 24 month

50.00%

OPERATING_LEASES_Summary_of_ob

OPERATING LEASES - Summary of obligated various non-cancelable operating lease arrangements for property (Details) (USD $)	Sep. 30, 2013
Leases, Operating [Abstract]	'
2013	$17,532
2014	71,766
2015	74,637
2016	31,605
Total	$195,540

OPERATING_LEASES_Detail_Textua

OPERATING LEASES (Detail Textuals) (General and administrative expense, USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
General and administrative expense	'	'	'	'
Schedule of operating lease [Line Items]	'	'	'	'
Total rent expense under leases	$17,532	$0	$35,876	$0

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Detail Textuals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
RELATED PARTY TRANSACTIONS (Detail Textuals) (USD $)	Shareholder	Shareholder
Senior secured convertible notes payable	'	'
Debt Instrument [Line Items]	'	'
Number of shareholders	7	5
Senior secured convertible notes payable	$550,249	$491,249
Convertible notes payable	'	'
Debt Instrument [Line Items]	'	'
Number of shareholders	1	1
Senior secured convertible notes payable	98,000	140,000
Unsecured notes payable	'	'
Debt Instrument [Line Items]	'	'
Number of shareholders	3	3
Unsecured notes payable	$661,000	$661,000

RELATED_PARTY_TRANSACTIONS_Det1

RELATED PARTY TRANSACTIONS (Detail Textuals 1) (Vice Chairman, USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Vice Chairman	'	'	'	'
Related Party Transaction [Line Items]	'	'	'	'
Occupancy costs	$0	$9,360	$2,199	$24,523

MAJOR_CUSTOMERS_Detail_Textual

MAJOR CUSTOMERS (Detail Textuals) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2012
			Customers	Customers
			Customer	Customer
Revenue, Major Customer [Line Items]	'	'	'	'
Number of major customer	'	'	1	1
Revenue from major customer	'	'	$3,140	$13,075
Amount due from major customer included in trade accounts receivable	$3,473	$3,473	'	$1,135