Dais (DLYT) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 14, 2013
Document And Entity Information	'	'
Entity Registrant Name	'DAIS ANALYTIC CORP	'
Entity Central Index Key	'0001125699	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	59,859,034
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS	'	'
Cash and cash equivalents	$41,250	$294,150
Accounts receivable, net (including related party receivables of $121,643 and $0 at September 30, 2013 and December 31, 2012, respectively)	200,103	512,842
Other receivables	50,876	'
Inventory	217,243	292,443
Prepaid expenses and other current assets	53,072	45,945
Total Current Assets	562,544	1,145,380
Property and equipment, net	73,184	95,557
OTHER ASSETS:	'	'
Deposits	2,280	2,280
Patents, net of accumulated amortization of $165,099 and $170,548 at September 30, 2013 and December 31, 2012, respectively	134,158	107,230
Total Other Assets	136,438	109,510
TOTAL ASSETS	772,166	1,350,447
CURRENT LIABILITIES:	'	'
Accounts payable, including related party payables of $110,657 and $82,195 at September 30, 2013 and December 31, 2012, respectively	527,367	559,946
Accrued compensation and related benefits	'	10,000
Accrued expenses, other	122,660	140,975
Current portion of deferred revenue	122,352	189,094
Total Current Liabilities	772,379	900,015
LONG-TERM LIABILITIES:	'	'
Accrued compensation and related benefits	1,592,654	1,484,739
Deferred revenue, net of current portion	1,803,445	1,894,627
Total Long-Term Liabilities	3,396,099	3,379,366
STOCKHOLDERS' DEFICIT	'	'
Preferred stock; $0.01 par value; 10,000,000 shares authorized; 0 shares issued and outstanding	'	'
Common stock, $0.01 par value; 200,000,000 shares authorized; 60,116,247 and 55,274,817 shares issued and 59,859,034 and 55,017,604 shares outstanding, respectively	601,164	552,749
Common stock payable	'	19,255
Capital in excess of par value	36,943,124	35,723,001
Accumulated deficit	-39,668,488	-37,951,827
Total	-2,124,200	-1,656,822
Treasury stock at cost, 257,213 shares	-1,272,112	-1,272,112
Total Stockholders' Deficit	-3,396,312	-2,928,934
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$772,166	$1,350,447

Balance_Sheets_Unaudited_Paren

Balance Sheets (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS	'	'
Accounts receivable, net	$121,643	$0
Other assets:	'	'
Patents, net of accumulated amortization	165,099	170,548
Current liabilities:	'	'
Accounts payable, including related party payables	$110,657	$82,195
Stockholders' deficit:	'	'
Preferred stock par value	$0.01	$0.01
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock shares issued	0	0
Preferred stock shares outstanding	0	0
Common stock par value	$0.01	$0.01
Common stock shares authorized	200,000,000	200,000,000
Common stock shares issued	60,116,247	55,274,817
Common stock shares outstanding	59,859,034	55,017,604
Treasury stock shares	257,213	257,213

Statements_Of_Operations_Unaud

Statements Of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
REVENUE:	'	'	'	'
Sales	$300,709	$828,969	$1,348,281	$2,476,467
License fees	57,086	20,500	157,924	61,500
TOTAL	357,795	849,469	1,506,205	2,537,967
COST OF GOODS SOLD	229,595	518,166	1,061,763	1,707,554
GROSS MARGIN	128,200	331,303	444,442	830,413
OPERATING EXPENSES	'	'	'	'
Research and development expenses, net of government grant proceeds of $91,310, $0, $91,310 and $67,240, respectively	94,638	192,749	421,360	427,743
Selling, general and administrative expenses	373,737	418,696	1,757,974	1,383,106
Impairment of fixed assets	'	62,288	'	62,288
TOTAL OPERATING EXPENSES	468,375	673,733	2,179,334	1,873,137
LOSS FROM OPERATIONS	-340,175	-342,430	-1,734,892	-1,042,724
OTHER EXPENSE (INCOME)	'	'	'	'
Change in fair value of warrant liability	'	-108,633	'	-1,608,486
Amortization of discount on convertible note payable	'	'	'	358,555
Other income	-13,200	'	-18,200	'
Interest expense	31	94,893	'	254,208
Interest income	'	'	-31	-65
TOTAL OTHER EXPENSE (INCOME)	-13,169	-13,740	-18,231	-995,788
NET LOSS	($327,006)	($328,690)	($1,716,661)	($46,936)
NET LOSS PER COMMON SHARE, BASIC	($0.01)	($0.01)	($0.03)	$0
NET LOSS PER COMMON SHARE, DILUTED	($0.01)	($0.01)	($0.03)	$0
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND FULLY DILUTED	58,309,755	37,774,817	56,510,360	37,774,817

Statements_Of_Operations_Unaud1

Statements Of Operations (Unaudited) (Parenthetical) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Statements Of Operations Parenthetical	'	'	'	'
Research and development expenses, net of government grant	$91,310	$0	$91,310	$67,240

Statements_Of_Stockholders_Def

Statements Of Stockholders' Deficit (Unaudited) (USD $)	Common Stock	Common Stock Payable	Capital in Excess of Par Value	Accumulated Deficit	Treasury Stock	Total
Beginning Balance, Amount at Dec. 31, 2012	$552,749	$19,255	$35,723,001	($37,951,827)	($1,272,112)	($2,928,934)
Beginning Balance, Shares at Dec. 31, 2012	55,274,817	'	'	'	'	'
Issuance of common stock for cash, Shares	4,841,430	'	'	'	'	'
Issuance of common stock for cash, Amount	48,415	-19,255	435,729	'	'	464,889
Stock based compensation	'	'	784,394	'	'	784,394
Net loss	'	'	'	-1,716,661	'	-1,716,661
Ending Balance, Amount at Sep. 30, 2013	$601,164	'	$36,943,124	($39,668,488)	($1,272,112)	($3,396,312)
Ending Balance, Shares at Sep. 30, 2013	60,116,247	'	'	'	'	'

Statements_Of_Cash_Flows_Unaud

Statements Of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($1,716,661)	($46,936)
Adjustments to reconcile net loss to net cash and cash equivalents used by operating activities:	'	'
Depreciation and amortization	44,936	46,550
Stock based compensation expense	784,394	111,149
Change in fair value of warrant liability	'	-1,608,486
Increase (decrease) in allowance for doubtful accounts	62,636	-22,195
Impairment of equipment	'	62,288
Write off of deferred offering costs	'	55,164
Amortization of deferred loan costs	'	30,224
Amortization of discount on convertible note payable	'	358,555
(Increase) decrease in:	'	'
Accounts receivable	250,103	270,616
Other receivables	-50,876	53,806
Inventory	75,200	91,802
Prepaid expenses and other assets	-7,127	-51,515
Increase (decrease) in:	'	'
Accounts payable and accrued expenses	-50,894	279,678
Accrued compensation and related benefits	97,915	11,251
Deferred revenue	-157,924	-277,959
Net cash used by operating activities	-668,298	-636,008
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Increase in patent costs	-43,680	-24,739
Purchase of property and equipment	-5,811	-6,000
Net cash used by investing activities	-49,491	-30,739
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds from issuance of notes payable, related party	'	2,050,000
Payments on notes payable, related party	'	-1,565,000
Issuance of common stock	464,889	'
Net cash provided by financing activities	464,889	485,000
Net decrease in cash and cash equivalents	-252,900	-181,747
Cash and cash equivalents, beginning of period	294,150	262,740
Cash and cash equivalents, end of period	41,250	80,993
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
Cash paid for interest	'	210,066
NON-CASH FINANCING AND INVESTING ACTIVITIES:	'	'
Revaluation of common stock issued for services	'	105,000
Loan costs paid with note payable, related party	'	$15,000

Background_Information

Background Information	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 1 - Background Information	'
	Dais Analytic Corporation, a New York corporation, (the “Company”) has developed and is commercializing applications using its nano-structure polymer technology. The first commercial product is an energy recovery ventilator (“ERV”) (cores and systems) for use in commercial Heating, Ventilating, and Air Conditioning (HVAC) applications. In addition to direct sales, the Company licenses its nano-structured polymer technology to strategic partners in the aforementioned application and is in various stages of development with regard to other applications employing its base technologies. The Company was incorporated in April 1993 with its corporate headquarters located in Odessa, Florida.
	The accompanying financial statements of the Company are unaudited, but in the opinion of management, reflect all adjustments necessary to fairly state the Company’s financial position, results of operations, stockholders’ deficit and cash flows as of and for the dates and periods presented. The financial statements of the Company are prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information.
	The unaudited financial statements and notes are presented as permitted by Form 10-Q. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted although the Company generally believes that the disclosures are adequate to ensure that the information presented is not misleading. The accompanying financial statements and notes should be read in conjunction with the audited financial statements and notes of the Company for the fiscal year ended December 31, 2012 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 29, 2013. The results of operations for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results that may be expected for any future quarters or for the entire year ending December 31, 2013.

Going_Concern

Going Concern	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 2 - Going Concern	'
	The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses since inception. As of September 30, 2013, the Company has an accumulated deficit of $39,668,488, negative working capital of $209,835 and a stockholders’ deficit of $3,396,312. The Company used $668,298 and $636,008 of cash in operations during the nine months ended September 30, 2013 and 2012, respectively, which was funded by net proceeds from product sales and equity financings. There is no assurance that such equity financing will be available in the future. In view of these matters, there is substantial doubt that the Company will continue as a going concern. The Company is currently pursuing the following sources of short and long-term working capital:
		1	We are currently holding preliminary discussions with parties who are interested in becoming distribution partners for current or future products, by licensing or purchasing the rights to distribute the Company’s products, or providing equity or debt financing to further the Company’s business model outside of the Company’s current core market in North and South America.
		2	We are seeking growth capital from certain strategic and/or government (grant) related sources. In addition to said capital, these sources may, pursuant to any agreements that may be developed in conjunction with such funding, assist in the product definition and design, roll-out, and anticipated faster channel penetration for the Company’s products.
	The Company’s ability to continue as a going concern is highly dependent on our ability to obtain additional sources of cash flow sufficient to fund our working capital requirements. However, there can be no assurance that the Company will be successful in its efforts to secure such cash flow. Any failure by us to timely procure licensing or royalty fees, additional financing or investment adequate to pay our outstanding debt and fund our ongoing operations, including planned product development initiatives and commercialization efforts, will have material adverse consequences on our financial condition, results of operations and cash flows.
	The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

Significant_Accounting_Policie

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 3 - Significant Accounting Policies	'
	In the opinion of management, all adjustments necessary for a fair statement of (a) the results of operations for the three and nine month periods ended September 30, 2013 and 2012, (b) the financial position at September 30, 2013 and December 31, 2012, and (c) cash flows for the nine month periods ended September 30, 2013 and 2012, have been made.
	The significant accounting policies followed are:
	Use of estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 those estimates.
	Cash and cash equivalents - Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. All non-interest bearing cash balances were fully insured at December 31, 2012 due to a temporary federal program in effect from December 31, 2010 through December 31, 2012. Under the program, there is no limit to the amount of insurance for eligible accounts. Beginning 2013, insurance coverage reverted to $250,000 per depositor at each financial institution. The Company's non-interest bearing cash balances were fully insured at September 30, 2013.
	Accounts receivable - Accounts receivable consist primarily of receivables from the sale of our ERV products. The Company regularly reviews accounts receivable for any bad debts based on an analysis of the Company’s collection experience, customer credit worthiness, and current economic trends. Based on management’s review of accounts receivable, we have recorded an allowance for doubtful accounts of $65,212 and $2,576 at September 30, 2013 and December 31, 2012, respectively. At September 30, 2013, three customers accounted for approximately 99.9% of the balance of accounts receivable.
	Inventory - Inventory consists primarily of raw materials and is stated at the lower of cost, determined by first-in, first-out method, or market. Market is determined based on the net realizable value, with appropriate consideration given to obsolescence, excessive levels, deterioration and other factors.
	Property and equipment - Property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets ranging from 5 to 7 years. Gains and losses upon disposition are reflected in the statement of operations in the period of disposition. Maintenance and repair expenditures are charged to expense as incurred. Property and equipment are evaluated for impairment when events change or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.
	Intangible assets - Identified intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company’s existing intangible assets consist solely of patents. Patents are amortized over their estimated useful or economic lives of 15 years. Patent amortization expense was approximately $5,500 and $7,700 for the three months ended September 30, 2013 and 2012, respectively. Patent amortization expense was approximately $16,800 and $19,500 for the nine months ended September 30, 2013 and 2012, respectively. Total patent amortization expense for the next five years is estimated to be approximately $22,400 per year.
	Long-lived assets - Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company uses market quotes, if available or an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. There have been no significant impairments of long-lived assets during the three and nine month periods ended September 30, 2013.
	Revenue recognition - Generally, the Company recognizes revenue for its products upon shipment to customers, provided no significant obligations remain and collection is probable. During the nine months ended September 30, 2013 two customers accounted for approximately 86% (79% of revenue is from a related party) and during the nine months ended September 30, 2012, four customers accounted for approximately 63% of revenues.
	In certain instances, our ConsERV product carries a warranty for two years for all parts contained therein with the exception of the energy recovery ventilator core which, in such circumstances, may carry a 10 year warranty. The warranty includes replacement of defective parts. The Company has recorded an accrual of approximately $93,000 for future warranty expenses at September 30, 2013 and December 31, 2012.
	Revenue derived from the sale of licenses is deferred and recognized as revenue on a straight-line basis over the life of the license, or until the license arrangement is terminated. The Company recognized revenue of approximately $57,100 and $20,500 from license agreements for the three months ended September 30, 2013 and 2012, respectively. The Company recognized revenue of approximately $157,900 and $61,500 from license agreements for the nine months ended September 30, 2013 and 2012, respectively.
	The Company accounts for revenue arrangements with multiple elements under the provisions of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 605-25, "Revenue Recognition—Multiple-Element Arrangements," In order to account for these agreements, the Company must identify the deliverables included within the agreement and evaluate which deliverables represent separate units of accounting based on if certain criteria are met, including whether the delivered element has stand-alone value to the licensee. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units.
	Employee stock based compensation - The Company recognizes all share-based awards to employees, including grants of employee stock options, as compensation expense in the financial statements based on their fair values. That expense will be recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).
	The value of each award is estimated at the grant date using the Black-Scholes option model with the following assumptions for awards granted during the nine months ended September 30, 2013. There were no awards granted during the nine months ended September 30, 2012.
			Nine Months
			Ended
			September 30,
			2013
	Dividend rate			0	%
	Risk free interest rate			2.03% – 2.20	%
	Expected term		10 years
	Expected volatility			177	%
	The basis for the above assumptions are as follows: the dividend rate is based upon the Company’s history of dividends; the risk-free interest rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant; the expected term was calculated based on the Company’s historical pattern of options granted and the period of time they are expected to be outstanding; and expected volatility was calculated by review of the Company’s and a peer Company’s historical activity.
	Non-employee stock-based compensation - The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of ASC 505-50, Equity-Based Payments to Non-Employees. Stock based compensation related to non-employees is accounted for based on the fair value of the related stock or options or the fair value of the services, whichever is more readily determinable. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. During the nine months ended September 30, 2013 the Company issued 168,000 options valued at $19,105 for consulting services rendered. During the nine months ended September 30, 2012, the Company did not issue any non-employee stock based compensation.
	The fair value of stock options issued to consultants during the nine months ended September 30, 2013 was calculated using the Black-Scholes model with the following assumptions: Expected life in years: 2 years; Estimated volatility 165%; Risk-free interest rate: 0.26%; Dividend yield: 0%.
	Research and development expenses and grant proceeds - Expenditures for research, development and engineering of products are expensed as incurred. For the three and nine months ended September 30, 2013, the Company incurred research and development costs of approximately $185,900 and $512,700 respectively. For the three and nine months ended September 30, 2012, the Company incurred research and development costs of approximately $192,700 and $495,000, respectively. The Company accounts for proceeds received from government grants for research as a reduction in research and development costs. For the three and nine months ended September 30, 2013 the Company recorded approximately $91,300 and $91,300, respectively, in grant proceeds against research and development expenses on the statement of operations. For the three and nine months ended September 30, 2012, the Company recorded approximately $0 and $67,000, respectively, in grant proceeds against research and development expenses on the statement of operations.
	Government grants - Grants are recognized when there is reasonable assurance that the grant will be received and that any conditions associated with the grant will be met. When grants are received related to property and equipment, the Company reduces the basis of the assets resulting in lower depreciation expense over the life of the associated asset. Grants received related to expenses are reflected as a reduction of the associated expense in the period in which the expense is incurred.
	Financial instruments - Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
	•	Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
	•	Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
	•	Level 3 - Inputs that are both significant to the fair value measurement and unobservable.
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2013. The Company uses the market approach to measure fair value for its Level 1 financial assets and liabilities, which include cash equivalents. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities.
	The respective carrying value of certain on-balance sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash, accounts receivable, accounts payable, accrued compensation and accrued expenses.
	Income taxes - Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are computed on the basis of differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based upon 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.
	The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company’s remaining open tax years subject to examination by the Internal Revenue Service include the years ended December 31, 2009 through 2012.
	Earnings (loss) per share - Basic income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted income (loss) per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. For each of the three and nine months ended September 30, 2013, the Company had 40,127,582 potentially dilutive common shares that were not included in the computation of income (loss) per share. For the three and nine months ended September 30, 2012, the Company had 55,505,342 potentially dilutive common shares that were not included in the computation of income (loss) per share.
	Derivative financial instruments - The Company does not use derivative instruments to hedge exposure to cash flow, market or foreign currency risk. Terms of convertible promissory note instruments are reviewed to determine whether or not they contain embedded derivative instruments that are required under ASC 815 “Derivative and Hedging” (ASC 815) to be accounted for separately from the host contract, and recorded on the balance sheet at fair value. The fair value of derivative liabilities, if any, is required to be revalued at each reporting date, with corresponding changes in fair value recorded in current period operating results.
	Freestanding warrants issued by the Company in connection with the issuance or sale of debt and equity instruments may be considered to be derivative instruments and are evaluated and accounted for in accordance with the provisions of ASC 815. Pursuant to ASC 815, an evaluation of specifically identified conditions is made to determine whether fair value of warrants issued is required to be classified as equity or as a derivative liability.
	Recent accounting pronouncements - Recent accounting pronouncements issued by FASB, the AICPA and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Accrued_Expenses_Other

Accrued Expenses, Other	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 4 - Accrued Expenses, Other	'
	Accrued expenses, other consist of the following:
		September 30,		December 31,
		2013		2012
	Accrued expenses, other	$	29,135	$	29,946
	Accrued registration rights penalty		-		5,000
	Accrued warranty costs		93,525		92,829
	Contractual obligation		-		13,200
		$	122,660	$	140,975

Related_Party_Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 5 - Related Party Transactions	'
	Timothy N. Tangredi, our Chief Executive Officer and Chairman, is a founder and a member of the board of directors of Aegis BioSciences, LLC (“Aegis”). Mr. Tangredi currently owns 52% of Aegis’ outstanding equity and spends approximately one to two days per month on Aegis business for which he is compensated by Aegis. Aegis has two exclusive, world-wide licenses from us under which it has the right to use and sell products containing our polymer technologies in biomedical and health care applications. As a result of a $150,000 payment made by Aegis, the first license is considered fully paid and as such no additional license revenue will be forthcoming. Pursuant to the second license Aegis made an initial one-time payment of $50,000 and is to make royalty payments of 1.5% of the net sales price it receives with respect to any personal hygiene product, surgical drape or clothing products (the latter when employed in medical and animal related fields) and license revenue it receives should Aegis grant a sublicense to a third party. To date Aegis has sold no such products nor has it received any licensing fees requiring a royalty payment be made to us. All obligations for such payments will end on the earlier of June 2, 2015 or upon the aggregate of all sums paid to us by Aegis under the agreement reaching $1 million. The term of each respective license runs for the duration of the patented technology.
	The Company rents a building that is owned by two stockholders of the Company, one of which is the Chief Executive Officer. Rent expense for this building is currently $4,066 per month. The Company recognized rent expense of approximately $12,200 and $11,400 during the three months ended September 30, 2013 and 2012, respectively. The Company recognized rent expense of approximately $36,600 and $34,200 during the nine months ended September 30, 2013 and 2012, respectively. At September 30, 2013 and December 31, 2012, $110,033 and $82,195, respectively, were included in accounts payable for amounts owed for rent.
	The Company also has accrued compensation due to the Chief Executive Officer and other employees for deferred salaries earned and unpaid as of September 30, 2013 and December 31, 2012 of $1,592,654 and $1,494,739, respectively. The Company determined that total accrued compensation should be classified as a long term liability, as the Company does not believe it will be repaid within the next year.
	The above terms and amounts are not necessarily indicative of the terms and amounts that would have been incurred had comparable transactions been entered into with independent parties.

Stock_Options_and_Warrants

Stock Options and Warrants	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 6 - Stock Options and Warrants	'
	Options
	In June 2000 and November 2009, our Board of Directors adopted, and our shareholders approved, the 2000 Plan and 2009 Plan, respectively (together the “Plans”). The Plans provide for the granting of options to qualified employees of the Company, independent contractors, consultants, directors and other individuals. The Company’s Board of Directors approved and made available 11,093,886 and 15,000,000 shares of common stock to be issued pursuant to the 2000 Plan and the 2009 Plan. The Plans permit grants of options to purchase common shares authorized and approved by the Company’s Board of Directors.
	The average fair value of options granted at market value during nine months ended September 30, 2013 was $0.15 per option. There were no options awarded during the nine months ended September 30, 2012. There were no options exercised during the nine months ended September 30, 2013 and 2012.
	The following summarizes the information relating to outstanding stock options activity with employees during 2013 and 2012:
		Common			Weighted		Weighted		Aggregate
		Shares			Average		Average		Intrinsic
					Exercise Price		Remaining		Value
							Contractual
							Term
							(in years)
	Outstanding at December 31, 2012		18,647,332		$	0.29		6.06	$	26,345
	Awarded		5,168,000		$	0.17
	Expired/Forfeited		(1,521,416	)	$	0.27
	Outstanding at September 30, 2013		22,293,916		$	0.26		5.91	$	0
	Exercisable at September 30, 2013		20,679,748		$	0.27		5.67	$	0
	Stock compensation expense was approximately $31,900 and $784,400 for the three and nine months ended September 30, 2013, respectively, and $28,000 and $111,100 for the three and nine months ended September 30, 2012, respectively. The total fair value of shares vested during the nine months ended September 30, 2013 and 2012 was approximately $780,980 and $83,700, respectively.
	As of September 30, 2013, there was approximately $216,500 of unrecognized employee stock-based compensation expense related to non vested stock options, of which $31,200, $84,600, $74,700 and $26,000 is expected to be recognized for the remainder of the fiscal year ending December 31, 2013, and for the fiscal years ending 2014, 2015 and 2016, respectively.
	The following table represents our non vested share-based payment activity with employees for the nine months ended September 30, 2013:
		Number of Options			Weighted Average Grant Date Fair Value
	Nonvested options - December 31, 2012		1,235,555		$	0.16
	Granted		5,168,000		$	0.15
	Vested		(4,436,750	)	$	0.14
	Forfeited		(352,637	)	$	-
	Nonvested options – September 30, 2013		1,614,168		$	0.12
	Warrants
	At September 30, 2013, the Company had outstanding warrants to purchase the Company’s common stock which were issued in connection with multiple financing arrangements and consulting agreements. Information relating to these warrants is summarized as follows:
	Warrants	Remaining Number Outstanding			Weighted Average Remaining Life (Years)		Weighted Average Exercise Price		Expiration Year
	Warrants-Financing		7,000,000			2.48	$	0.34		2016
	Warrants-Consulting Agreement		825,000			1.02	$	0.3		2014 – 2015
	Warrants-Note Conversions		2,302,538			1.55	$	0.39		2014 – 2015
	Warrants-Stock Purchases		7,306,128			3.2	$	0.35		2014 – 2018
	Warrants-Services		400,000			1.31	$	0.5		2015
			17,833,666

Terminated_Sales_Agreements

Terminated Sales Agreements	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 7 - Terminated Sales Agreements	'
	On August 21, 2009, we entered into an Exclusive Distribution Agreement with Genertec America, under which we are to supply and Genertec was to to distribute, on an exclusive basis, three of our nanotechnology-based membrane products and related products in Greater China, including mainland China, Hong Kong, Macau and Taiwan. The agreement provided that during the initial five year term of the agreement, Genertec will order and purchase these products in the aggregate amount of $200 million. A minimum quantity of said products is to be purchased by Genertec during each contract year of the initial term.
	In April of 2010, the Company entered into a technical and sales agreement with CAST Systems Control Technology Co., Ltd. (“CAST”) and Genertec with a value of up to approximately $48 million over a twelve month period. Under the terms of the Agreement, the Company will supply to CAST, through Genertec, key system components of its nanotechnology clean water process.
	During 2011, Genertec expressed a desire to limit its participation in this endeavor as they find NanoAir and NanoClear to have engineering requirements they are not best suited to undertake. During the nine months ended September 30, 2012, we terminated the Genertec and CAST agreements and recognized $150,000 nonrefundable deposit received from Genertec as revenue.

Stock_Purchase_Agreement

Stock Purchase Agreement	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 8. Stock Purchase Agreement	'
	On October 17, 2012, Dais Analytic Corporation (the “Company”) entered into a Securities Purchase Agreement (the “SPA”) with an investor, Green Valley International Investment Management Company Limited (the “Investor”) pursuant to which the Company will offer up to $7.0 million of the Company’s common stock, $0.01 par value per share (the “Common Stock”), and warrants (the “Warrants”) to purchase up to 17,500,000 shares of Common Stock (such offer being the “Offering”). Pursuant to the terms and conditions of the SPA, Company agreed to issue the Common Stock and Warrants in three tranches. The Warrants are exercisable for 60 months beginning on the date of their issuance. The warrants have an exercise price of $0.30, and are subject to standard anti-dilution adjustments for stock splits and other subdivisions. Pursuant to terms of the Offering, officers of the Company and the Investor have signed lock-up agreements restricting the sale of Common Stock. The Investor does not have any registration rights with respect to the Common Stock or Warrants. No underwriter or placement agent was used in the sale of the Common Stock or Warrants.
	On December 28, 2012, Dais Analytic Corporation (the “Company”) amended the SPA, dated October 17, 2012, with Green Valley International Investment Management Company Limited (the “Investor”) pursuant to which the Investor may purchase up to $7.0 million of the Company’s common stock, $0.01 par value per share (the “Common Stock”), and warrants (the “Warrants”) to purchase up to 17,500,000 shares of Common Stock
	In 2012, the Company sold and issued, in connection with the SPA, 17,500,000 shares of its common stock to the Investor for $1,750,000. In addition, as part of the purchase it issued the Investor a warrant to purchase 4,375,000 shares of the Company’s common stock with an exercise period of five years from the date of issue at an exercise price of $.30 per share.
	During 2013, in connection with the SPA, the Company sold and issued 492,280 shares to the Investor for $49,228 in cash, of which $19,255 was received in 2012. In addition, under the terms of this agreement, the Investor also received a warrant to purchase 123,070 shares of the Company’s common stock with an exercise period of five years from the date of issue at an exercise price of $0.30 per share. The SPA expired, per its terms and conditions, on January 31, 2013.
	During 2013, the Company received $149,915 from an investor under another SPA entered into on May 31, 2013, towards the purchase of common stock at $0.10 per share. During the nine months ended September 30, 2013, the Company issued 1,499,150 shares of common stock in settlement of the aforementioned common stock payable. With the issuance of the common stock, the Company issued warrants to purchase 374,788 shares of the Company’s common stock at $0.50 per share. The warrants are exercisable for 60 months. The warrants are subject to standard anti-dilution adjustments for stock splits and other subdivisions. The proceeds from the sale of the securities shall be used for working capital purposes and to investigate and establish a China PRC company.
	During the nine months ended September 30, 2013, the Company issued, pursuant to a Stock Purchase Agreement with a private investor (the “Investor”), 2,850,000 restricted shares of the Company’s common stock at a purchase price of $0.10 per share for a total of $285,000. With the issuance of the common stock, the Company issued warrants to purchase 712,500 shares of the Company’s common stock at $0.50 per share. The Warrants are exercisable for 60 months. The warrants are subject to standard anti-dilution adjustments for stock splits and other subdivisions. The proceeds from the sale of the securities shall be used for working capital purposes.

Deferred_Revenue

Deferred Revenue	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 9 - Deferred Revenue	'
	The Company entered into a licensing agreement during the year ended December 31, 2003 and received an initial fee of $770,000. This fee is deferred and recognized on a straight-line basis over the life of the license agreement of 10 years. In addition, the Company received royalties of $100,000 in each of the first three years of the agreement. The Company recognized revenue of approximately $900 and $19,250 for this agreement during each of the three months ended September 30, 2013 and 2012, respectively. The Company recognized revenue of approximately $39,400 and $57,750 for this agreement during each of the nine months ended September 30, 2013 and 2012, respectively.
	The Company entered into a licensing agreement with a biomedical entity during the year ended December 31, 2005 and received an initial license fee of $50,000. This fee is deferred and recognized on a straight-line basis over the life of the license agreement of 7 years. The Company recognized revenue of approximately $1,250 for this agreement during each of the three months ended September 30, 2013 and 2012. The Company recognized revenue of approximately $3,750 for this agreement during each of the nine months ended September 30, 2013 and 2012.
	On October 30, 2012, the Company and MG Energy LLC, a Delaware limited liability company (“MG Energy”), a company in which a shareholder of the Company holds a position, entered into a License and Supply Agreement (the “Agreement”), effective October 26, 2012, pursuant to which the Company licensed certain intellectual property and improvements thereto to MG Energy, for use in the manufacture and sale of energy recovery ventilators (“ERV”) and certain other HVAC systems for installation in commercial, residential or industrial buildings in North America and South America in exchange for the cancellation of $2,034,521 of debt due to MG Energy. MG Energy also agreed to purchase its requirements of certain ConsERV products from the Company for MG Energy’s use, pursuant to the terms and conditions of the Agreement. MG Energy will also pay royalties, as defined, to the Company on the net sales of each product or system sold. The term of the Agreement will expire upon the last to expire of the underlying patent rights for the licensed technology.
	The Company has identified all of the deliverables under the Agreement and has determined significant deliverables to be the license for the intellectual property and the supply services. In determining the units of accounting, the Company evaluated whether the license has stand alone value to MG Energy based upon consideration of the relevant facts and circumstances of the Agreement. The Company determined that the license does not have stand alone value to the licensee and, therefore, should be combined with the supply agreement as one unit of accounting. The initial payment for the license agreement will be treated as an advance payment and recognized over the performance period of the supply agreement. Royalties will be recognized as revenue when earned. The Company recognized revenue of $29,920 in license fees and $283,324 in product sales relating to this Agreement during the three months ended September 30, 2013. The Company recognized revenue of $89,758 in license fees and $1,075,402 in product sales relating to this Agreement during the nine months ended September 30, 2013.

Change_in_Fair_Value_of_Warran

Change in Fair Value of Warrant Liability	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 10 - Change in Fair Value of Warrant Liability	'
	The Company has accounted for certain warrants in accordance with ASC 815-10, Derivatives and Hedging (ASC 815-10). ASC 815-10 provides guidance for determining whether an equity-linked financial instrument (or embedded feature) is indexed to an entity’s own stock. This applies to any freestanding financial instrument or embedded feature that has all the characteristics of a derivative under ASC 815-10, including any freestanding financial instrument that is potentially settled in an entity’s own stock.
	Due to certain adjustments that may be made to the exercise price of the warrants issued in December 2007, January 2008 and August 2008 if the Company issues or sells shares of its common stock at a price which is less than the then current warrant exercise price, these warrants have been classified as a liability as opposed to equity in accordance with the Derivatives and Hedging Topic of the FASB ASC 815-10-15 as it was determined that these warrants were not indexed to the Company’s stock. As a result, the fair market value of these warrants was remeasured on January 1, 2009 and marked to market at each subsequent financial reporting period. The change in fair value of the warrants is recorded in the statement of operations and is estimated using the Black-Scholes option-pricing model with the following assumptions:
		For the Three			For the Nine
		Months Ended			Months Ended
		September 30,			September 30,
		2012			2012
	Exercise price	$	0.25		$	0.25
	Market value of stock at end of period	$	0.1		$	0.1
	Expected dividend rate		0	%		0	%
	Expected volatility		221% - 240	%		221% - 240	%
	Risk-free interest rate		0.1	%		0.1	%
	All warrants issued by the Company other than the above noted warrants are classified as equity. For the three months ended September 30, 2013 and 2012, the Company recognized a change in the fair value of the warrant liability of $0 and $108,633, respectively. For the nine months ended September 30, 2013 and 2012, the Company recognized a change in the fair value of the warrant liability of $0 and $1,608,486, respectively. In the first quarter of 2013, all such warrants or provisions providing for price resets expired.

Amortization_of_Debt_Discount_

Amortization of Debt Discount on Convertible Note Payable	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 11 - Amortization of Debt Discount on Convertible Note Payable	'
	On March 22, 2011, the Company entered into a 10% note and warrant purchase agreement, secured convertible promissory note and patent security agreement (“financing agreements”) with an investor. In connection with the financing agreements, the Company issued a stock purchase warrant to the investor to purchase 3,000,000 shares of the Company’s common stock at $0.45 per share, exercisable until March 22, 2016. The warrant was fair valued on the date of issuance, which amounted to $1,204,787. The warrant value was recorded as a debt discount based on the relative fair value of the warrant to the total proceeds received, which amounted to $435,240. The warrant was fair valued using the Black-Scholes-Merton valuation model. In addition, the debt contained a beneficial conversion feature, which was valued at the date of issuance at $1,762,163; however, since this amount is in excess of the net value of the debt less the warrant discount, the beneficial conversion feature will be limited to $1,064,760 and recorded as a discount on the loan. The total debt discount of $1,500,000 is being amortized using the effective interest method over the 12-month term of the Secured Note. For the nine months ended September 30, 2012 the Company recognized $358,555 as amortization of this debt discount. The debt discount was fully amortized as of December 31, 2012.

Commitments

Commitments	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 12 - Commitments	'
	In April 2013, the U.S. Department of Defense, Navy and the U.S. Department of Energy Advanced Research Projects Agency-Energy (ARPA-E) approved a grant of up to $800,000 to Company for the funding of a project to produce and trial a chilling system, that is operated by directly manipulating water vapor using Company’s selectively permeable membrane made of a nano-structure solid polymer. The grant requires the Company to contribute $200,000 of the proposed total project cost of $1,000,000. The Company will receive the grant amount in phases upon the meeting of certain milestones. The grant will advance our Nano Air technologies toward commercialization.
	On June 11, 2013, effective as of March 11, 2013, the Company entered into an Employment Agreement with Ms. Joyce Conner-Boyd in connection with her appointment as Chief Operating Officer (the Executive). The term of the Agreement shall initially be for one year until March 11, 2014 but shall be automatically renewed on each anniversary of the effective date for an additional year unless either the Company or the Executive delivers a written termination at least 60 days before any anniversary.
	The Executive shall receive a salary of $120,000 per annum. After the completion of an offering of the Company’s common stock greater than $2 million to an investor who, at the time of the investment, does not own or control shares in the Company, the Executive’s salary shall be increased to $160,000 per annum.
	The Agreement provided that within ninety days of the effective date, the Company shall grant the Executive, pursuant to the terms and conditions of Company’s 2009 Incentive Compensation Plan (the "2009 Plan"), an option to purchase up to 1,250,000 shares of Company’s common stock. Such option was granted on June 11, 2013 at $0.16 per share, the fair market value of Company’s common stock on the date of the option grant, as determined in accordance with the terms of the 2009 Plan. An option to purchase 312,500 shares of the Company’s common stock shall vest on the effective date with the remaining options to purchase 937,500 shares of the Company’s common stock vesting ratably over a three year period on the first, second and third anniversary of the effective date provided the Executive is employed by Company on each vesting date.
	If the Executive’s employment is terminated (i) by the Company, without Cause (as defined in the Agreement) or terminated for other similar reasons described in the Agreement, or (ii) by the Executive for Good Reason (as defined in the Agreement), the Executive will be entitled to receive 50% of the Executive’s then-current annual base salary, in equal payments over six months, and immediate vesting of the Executive’s stock options pursuant to the terms and conditions of the 2009 Plan.

Significant_Accounting_Policie1

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Significant Accounting Policies Policies	'
Use of estimates	'
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 those estimates.
Cash and cash equivalents	'
	Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances. All non-interest bearing cash balances were fully insured at December 31, 2012 due to a temporary federal program in effect from December 31, 2010 through December 31, 2012. Under the program, there is no limit to the amount of insurance for eligible accounts. Beginning 2013, insurance coverage reverted to $250,000 per depositor at each financial institution. The Company's non-interest bearing cash balances were fully insured at September 30, 2013.
Accounts receivable	'
	Accounts receivable consist primarily of receivables from the sale of our ERV products. The Company regularly reviews accounts receivable for any bad debts based on an analysis of the Company’s collection experience, customer credit worthiness, and current economic trends. Based on management’s review of accounts receivable, we have recorded an allowance for doubtful accounts of $65,212 and $2,576 at September 30, 2013 and December 31, 2012, respectively. At September 30, 2013, three customers accounted for approximately 99.9% of the balance of accounts receivable.
Inventory	'
	Inventory consists primarily of raw materials and is stated at the lower of cost, determined by first-in, first-out method, or market. Market is determined based on the net realizable value, with appropriate consideration given to obsolescence, excessive levels, deterioration and other factors.
Property and equipment	'
	Property and equipment are recorded at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets ranging from 5 to 7 years. Gains and losses upon disposition are reflected in the statement of operations in the period of disposition. Maintenance and repair expenditures are charged to expense as incurred. Property and equipment are evaluated for impairment when events change or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.
Intangible assets	'
	Identified intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company’s existing intangible assets consist solely of patents. Patents are amortized over their estimated useful or economic lives of 15 years. Patent amortization expense was approximately $5,500 and $7,700 for the three months ended September 30, 2013 and 2012, respectively. Patent amortization expense was approximately $16,800 and $19,500 for the nine months ended September 30, 2013 and 2012, respectively. Total patent amortization expense for the next five years is estimated to be approximately $22,400 per year.
Long-lived assets	'
	Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the book value of the asset may not be recoverable. The Company periodically evaluates whether events and circumstances have occurred that indicate possible impairment. When impairment indicators exist, the Company uses market quotes, if available or an estimate of the future undiscounted net cash flows of the related asset or asset group over the remaining life in measuring whether or not the asset values are recoverable. There have been no significant impairments of long-lived assets during the three and nine month periods ended September 30, 2013.
Revenue recognition	'
	Generally, the Company recognizes revenue for its products upon shipment to customers, provided no significant obligations remain and collection is probable. During the nine months ended September 30, 2013 two customers accounted for approximately 86% (79% of revenue is from a related party) and during the nine months ended September 30, 2012, four customers accounted for approximately 63% of revenues.
	In certain instances, our ConsERV product carries a warranty for two years for all parts contained therein with the exception of the energy recovery ventilator core which, in such circumstances, may carry a 10 year warranty. The warranty includes replacement of defective parts. The Company has recorded an accrual of approximately $93,000 for future warranty expenses at September 30, 2013 and December 31, 2012.
	Revenue derived from the sale of licenses is deferred and recognized as revenue on a straight-line basis over the life of the license, or until the license arrangement is terminated. The Company recognized revenue of approximately $57,100 and $20,500 from license agreements for the three months ended September 30, 2013 and 2012, respectively. The Company recognized revenue of approximately $157,900 and $61,500 from license agreements for the nine months ended September 30, 2013 and 2012, respectively.
	The Company accounts for revenue arrangements with multiple elements under the provisions of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 605-25, "Revenue Recognition—Multiple-Element Arrangements," In order to account for these agreements, the Company must identify the deliverables included within the agreement and evaluate which deliverables represent separate units of accounting based on if certain criteria are met, including whether the delivered element has stand-alone value to the licensee. The consideration received is allocated among the separate units of accounting, and the applicable revenue recognition criteria are applied to each of the separate units.
Employee stock based compensation	'
	The Company recognizes all share-based awards to employees, including grants of employee stock options, as compensation expense in the financial statements based on their fair values. That expense will be recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).
	The value of each award is estimated at the grant date using the Black-Scholes option model with the following assumptions for awards granted during the nine months ended September 30, 2013. There were no awards granted during the nine months ended September 30, 2012.
			Nine Months
			Ended
			September 30,
			2013
	Dividend rate			0	%
	Risk free interest rate			2.03% – 2.20	%
	Expected term		10 years
	Expected volatility			177	%
	The basis for the above assumptions are as follows: the dividend rate is based upon the Company’s history of dividends; the risk-free interest rate for periods within the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant; the expected term was calculated based on the Company’s historical pattern of options granted and the period of time they are expected to be outstanding; and expected volatility was calculated by review of the Company’s and a peer Company’s historical activity.
Non-employee stock-based compensation	'
	The Company’s accounting policy for equity instruments issued to consultants and vendors in exchange for goods and services follows the provisions of ASC 505-50, Equity-Based Payments to Non-Employees. Stock based compensation related to non-employees is accounted for based on the fair value of the related stock or options or the fair value of the services, whichever is more readily determinable. The measurement date for the fair value of the equity instruments issued is determined at the earlier of (i) the date at which a commitment for performance by the consultant or vendor is reached or (ii) the date at which the consultant or vendor’s performance is complete. In the case of equity instruments issued to consultants, the fair value of the equity instrument is recognized over the term of the consulting agreement. During the nine months ended September 30, 2013 the Company issued 168,000 options valued at $19,105 for consulting services rendered. During the nine months ended September 30, 2012, the Company did not issue any non-employee stock based compensation.
	The fair value of stock options issued to consultants during the nine months ended September 30, 2013 was calculated using the Black-Scholes model with the following assumptions: Expected life in years: 2 years; Estimated volatility 165%; Risk-free interest rate: 0.26%; Dividend yield: 0%.
Research and development expenses and grant proceeds	'
	Expenditures for research, development and engineering of products are expensed as incurred. For the three and nine months ended September 30, 2013, the Company incurred research and development costs of approximately $185,900 and $512,700 respectively. For the three and nine months ended September 30, 2012, the Company incurred research and development costs of approximately $192,700 and $495,000, respectively. The Company accounts for proceeds received from government grants for research as a reduction in research and development costs. For the three and nine months ended September 30, 2013 the Company recorded approximately $91,300 and $91,300, respectively, in grant proceeds against research and development expenses on the statement of operations. For the three and nine months ended September 30, 2012, the Company recorded approximately $0 and $67,000, respectively, in grant proceeds against research and development expenses on the statement of operations.
Government grants	'
	Grants are recognized when there is reasonable assurance that the grant will be received and that any conditions associated with the grant will be met. When grants are received related to property and equipment, the Company reduces the basis of the assets resulting in lower depreciation expense over the life of the associated asset. Grants received related to expenses are reflected as a reduction of the associated expense in the period in which the expense is incurred.
Financial instruments	'
	Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:
	•	Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
	•	Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
	•	Level 3 - Inputs that are both significant to the fair value measurement and unobservable.
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2013. The Company uses the market approach to measure fair value for its Level 1 financial assets and liabilities, which include cash equivalents. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities.
	The respective carrying value of certain on-balance sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash, accounts receivable, accounts payable, accrued compensation and accrued expenses.
Income taxes	'
	Income taxes are accounted for under the asset and liability method. Deferred income tax assets and liabilities are computed on the basis of differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based upon 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.
	The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company’s remaining open tax years subject to examination by the Internal Revenue Service include the years ended December 31, 2009 through 2012.
Earnings (loss) per share	'
	Basic income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted income (loss) per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered anti-dilutive and thus are excluded from the calculation. For each of the three and nine months ended September 30, 2013, the Company had 40,127,582 potentially dilutive common shares that were not included in the computation of income (loss) per share. For the three and nine months ended September 30, 2012, the Company had 55,505,342 potentially dilutive common shares that were not included in the computation of income (loss) per share.
Derivative financial instruments	'
	The Company does not use derivative instruments to hedge exposure to cash flow, market or foreign currency risk. Terms of convertible promissory note instruments are reviewed to determine whether or not they contain embedded derivative instruments that are required under ASC 815 “Derivative and Hedging” (ASC 815) to be accounted for separately from the host contract, and recorded on the balance sheet at fair value. The fair value of derivative liabilities, if any, is required to be revalued at each reporting date, with corresponding changes in fair value recorded in current period operating results.
	Freestanding warrants issued by the Company in connection with the issuance or sale of debt and equity instruments may be considered to be derivative instruments and are evaluated and accounted for in accordance with the provisions of ASC 815. Pursuant to ASC 815, an evaluation of specifically identified conditions is made to determine whether fair value of warrants issued is required to be classified as equity or as a derivative liability.
Recent accounting pronouncements	'
	Recent accounting pronouncements issued by FASB, the AICPA and the SEC did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

Significant_Accounting_Policie2

Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2013
Significant Accounting Policies Tables	'
Employee stock based compensation	'
	The value of each award is estimated at the grant date using the Black-Scholes option model with the following assumptions for awards granted during the nine months ended September 30, 2013. There were no awards granted during the nine months ended September 30, 2012.
		Nine Months
		Ended
		September 30,
		2013
	Dividend rate		0	%
	Risk free interest rate		2.03% – 2.20	%
	Expected term	10 years
	Expected volatility		177	%

Accrued_Expenses_Other_Tables

Accrued Expenses, Other (Tables)	9 Months Ended
	Sep. 30, 2013
Accrued Expenses Other Tables	'
Accrued expenses and other expenses	'
	Accrued expenses, other consist of the following:
		September 30,		December 31,
		2013		2012
	Accrued expenses, other	$	29,135	$	29,946
	Accrued registration rights penalty		-		5,000
	Accrued warranty costs		93,525		92,829
	Contractual obligation		-		13,200
		$	122,660	$	140,975

Stock_Options_and_Warrants_Tab

Stock Options and Warrants (Tables)	9 Months Ended
	Sep. 30, 2013
Stock Options And Warrants Tables	'
Outstanding stock options activity	'
	The following summarizes the information relating to outstanding stock options activity with employees during 2013 and 2012:
		Common			Weighted		Weighted		Aggregate
		Shares			Average		Average		Intrinsic
					Exercise Price		Remaining		Value
							Contractual
							Term
							(in years)
	Outstanding at December 31, 2012		18,647,332		$	0.29		6.06	$	26,345
	Awarded		5,168,000		$	0.17
	Expired/Forfeited		(1,521,416	)	$	0.27
	Outstanding at September 30, 2013		22,293,916		$	0.26		5.91	$	0
	Exercisable at September 30, 2013		20,679,748		$	0.27		5.67	$	0
Non vested share-based payment activity	'
	The following table represents our non vested share-based payment activity with employees for the nine months ended September 30, 2013:
		Number of Options			Weighted Average Grant Date Fair Value
	Nonvested options - December 31, 2012		1,235,555		$	0.16
	Granted		5,168,000		$	0.15
	Vested		(4,436,750	)	$	0.14
	Forfeited		(352,637	)	$	-
	Nonvested options – September 30, 2013		1,614,168		$	0.12
Warrants	'
	At September 30, 2013, the Company had outstanding warrants to purchase the Company’s common stock which were issued in connection with multiple financing arrangements and consulting agreements. Information relating to these warrants is summarized as follows:
	Warrants	Remaining Number Outstanding			Weighted Average Remaining Life (Years)		Weighted Average Exercise Price		Expiration Year
	Warrants-Financing		7,000,000			2.48	$	0.34		2016
	Warrants-Consulting Agreement		825,000			1.02	$	0.3		2014 – 2015
	Warrants-Note Conversions		2,302,538			1.55	$	0.39		2014 – 2015
	Warrants-Stock Purchases		7,306,128			3.2	$	0.35		2014 – 2018
	Warrants-Services		400,000			1.31	$	0.5		2015
			17,833,666

Change_in_Fair_Value_of_Warran1

Change in Fair Value of Warrant Liability (Tables)	9 Months Ended
	Sep. 30, 2013
Change In Fair Value Of Warrant Liability Tables	'
Change in fair value of the warrants	'
	The change in fair value of the warrants is recorded in the statement of operations and is estimated using the Black-Scholes option-pricing model with the following assumptions:
		For the Three			For the Nine
		Months Ended			Months Ended
		September 30,			September 30,
		2012			2012
	Exercise price	$	0.25		$	0.25
	Market value of stock at end of period	$	0.1		$	0.1
	Expected dividend rate		0	%		0	%
	Expected volatility		221% - 240	%		221% - 240	%
	Risk-free interest rate		0.1	%		0.1	%

Going_Concern_Details_Narrativ

Going Concern (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Going Concern Details Narrative	'	'	'
Accumulated deficit	$39,668,488	'	$37,951,827
Working capital	209,835	'	'
Stockholders' deficit	3,396,312	'	2,928,934
Cash in operations	$668,298	$636,008	'

Significant_Accounting_Policie3

Significant Accounting Policies (Details) (Employee Stock Based Compensation [Member])	9 Months Ended
	Sep. 30, 2013
Employee Stock Based Compensation [Member]	'
Dividend rate	0.00%
Risk free interest rate, Minimum	2.03%
Risk free interest rate, Maximum	2.20%
Expected term	'10 years
Expected volatility	1.77%

Significant_Accounting_Policie4

Significant Accounting Policies (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Allowance for doubtful accounts	$65,212	'	$65,212	'	$2,576
Customers accounts receivable percentage	99.90%	'	99.90%	'	'
Property and equipment estimated useful life	'	'	'5 to 7 years	'	'
Patents estimated useful life	'	'	'15 years	'	'
Patent amortization expense	5,500	7,700	16,800	19,500	'
Future amortization expense year one	22,400	'	22,400	'	'
Future amortization expense year two	22,400	'	22,400	'	'
Future amortization expense year three	22,400	'	22,400	'	'
Future amortization expense year four	22,400	'	22,400	'	'
Future amortization expense year five	22,400	'	22,400	'	'
Warranty accrual	93,000	'	93,000	'	93,000
Revenue recognition	57,100	20,500	157,900	61,500	'
Option issued for consulting services	'	'	168,000	'	'
Option valued for consulting services	'	'	19,105	'	'
Research and development costs	185,900	192,700	512,700	495,000	'
Grant proceeds against research and development expenses	$91,300	$0	$91,300	$67,000	'
Dilutive common shares	40,127,582	55,505,342	40,127,582	55,505,342	'
Two customer [Member]	'	'	'	'	'
Percentage representation in revenue	'	'	86.00%	'	'
Related party customer [Member]	'	'	'	'	'
Percentage representation in revenue	'	'	79.00%	'	'
Four customer [Member]	'	'	'	'	'
Percentage representation in revenue	'	'	'	63.00%	'
Non Employee Stock Based Compensation [Member]	'	'	'	'	'
Expected life in years	'	'	'2 years	'	'
Estimated volatility	'	'	165.00%	'	'
Risk-free interest rate	'	'	0.26%	'	'
Dividend yield	'	'	0.00%	'	'

Accrued_Expenses_Other_Details

Accrued Expenses, Other (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Accrued Expenses Other Details	'	'
Accrued expenses, other	$29,135	$29,946
Accrued registration rights penalty	'	5,000
Accrued warranty costs	93,525	92,829
Contractual obligation	'	13,200
Accrued Expenses	$122,660	$140,975

Related_Party_Transactions_Det

Related Party Transactions (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Related Party Transactions Details Narrative	'	'	'	'	'
Rent expense recognized	$12,200	$11,400	$36,600	$34,200	'
Accounts payable for rent	110,033	'	110,033	'	82,195
Deferred salaries earned and unpaid	$1,592,654	'	$1,592,654	'	$1,494,739

Stock_Options_and_Warrants_Det

Stock Options and Warrants (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Stock Options And Warrants Details	'
Common shares outstanding	18,647,332
Common shares expired/forfeited	-1,521,416
Common shares awarded	5,168,000
Outstanding at September 30, 2013	22,293,916
Exercisable at September 30, 2013	20,679,748
Weighted average exercise price of shares outstanding	$0.29
Weighted average exercise price of shares expired/forfeited	$0.27
Weighted average exercise price of shares Awarded	$0.17
Weighted average exercise price of shares outstanding at September 30, 2013	$0.26
Weighted average exercise price of shares exercisable September 30, 2013	$0.27
Weighted average remaining contractual term (in years) of shares outstanding, Beggining Balance	'6 years 22 days
Weighted average remaining contractual term (in years) of shares outstanding, Ending Balance	'5 years 10 months 28 days
Weighted average remaining contractual term (in years) of shares exercisable	'5 years 8 months 1 day
Aggregate intrinsic value of shares outstanding, Beggining Balance	$26,345
Aggregate intrinsic value of shares outstanding, Ending Balance	0
Aggregate intrinsic value of shares exerciseable	$0

Stock_Options_and_Warrants_Det1

Stock Options and Warrants (Details 1) (USD $)	9 Months Ended
	Sep. 30, 2013
Stock Options And Warrants Details 1	'
Nonvested options, Number of Options	1,235,555
Granted, Number of Options	5,168,000
Forfeited, Number of Options	-352,637
Vested, Number of Options	-4,436,750
Nonvested options, Number of Options	1,614,168
Nonvested options beginning, Weighted Average Grant Date Fair Value	$0.16
Granted, Weighted Average Grant Date Fair Value	$0.15
Forfeited, Weighted Average Grant Date Fair Value	'
Vested, Weighted Average Grant Date Fair Value	$0.14
Nonvested options ending, Weighted Average Grant Date Fair Value	$0.12

Stock_Options_and_Warrants_Det2

Stock Options and Warrants (Details 2) (USD $)	Sep. 30, 2013
Remaining Number Outstanding	$17,833,666
Warrants Financing [Member]	'
Remaining Number Outstanding	7,000,000
Weighted Average Remaining Life	'2 years 5 months 23 days
Weighted Average Exercise Price	$0.34
Expiration Year	'2016
Warrants Consulting Agreement [Member]	'
Remaining Number Outstanding	825,000
Weighted Average Remaining Life	'1 year 7 days
Weighted Average Exercise Price	$0.30
Warrants Consulting Agreement [Member] | Minimum [Member]	'
Expiration Year	'2014
Warrants Consulting Agreement [Member] | Maximum [Member]	'
Expiration Year	'2015
Warrants Note Conversions [Member]	'
Remaining Number Outstanding	2,302,538
Weighted Average Remaining Life	'1 year 6 months 18 days
Weighted Average Exercise Price	$0.39
Warrants Note Conversions [Member] | Minimum [Member]	'
Expiration Year	'2014
Warrants Note Conversions [Member] | Maximum [Member]	'
Expiration Year	'2015
Warrants Stock Purchases [Member]	'
Remaining Number Outstanding	7,306,128
Weighted Average Remaining Life	'3 years 2 months 12 days
Weighted Average Exercise Price	$0.35
Warrants Stock Purchases [Member] | Minimum [Member]	'
Expiration Year	'2014
Warrants Stock Purchases [Member] | Maximum [Member]	'
Expiration Year	'2018
Warrants Services [Member]	'
Remaining Number Outstanding	$400,000
Weighted Average Remaining Life	'1 year 3 months 22 days
Weighted Average Exercise Price	$0.50
Expiration Year	'2015

Stock_Options_and_Warrants_Det3

Stock Options and Warrants (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Options And Warrants Details Narrative	'	'	'	'
Fair value of options granted at market value	'	'	$0.15	'
Options exercised	'	'	$0	$0
Stock compensation expense	31,900	28,000	784,400	111,100
Total fair value of shares vested	'	'	780,980	83,700
Unrecognized employee stock-based compensation expense related to non vested stock options	$216,500	'	$216,500	'

Terminated_Sales_Agreements_De

Terminated Sales Agreements (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2012
Terminated Sales Agreements Details Narrative	'
Nonrefundable deposit received recognized as revenue	$150,000

Stock_Purchase_Agreement_Detai

Stock Purchase Agreement (Details Narrative) (USD $)	3 Months Ended	9 Months Ended		12 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2012	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
			Warrant [Member]	Warrant [Member]	Investor [Member]	Investor [Member]	Investor [Member]
Common stock shares	'	'	123,070	4,375,000	492,280	'	17,500,000
Common stock shares, value	'	'	'	'	$49,228	$19,255	$1,750,000
Exercise period	'	'	'	'	'5 years	'	'5 years
Exercise price	$0.25	$0.25	'	'	$0.30	'	$0.30
Common stock purchase price per share	'	'	'	'	$0.10	'	'
Common stock at a purchase price	'	'	'	'	$285,000	'	'
Restricted shares	'	'	'	'	2,850,000	'	'
warrants issued to purchase share	'	'	'	'	712,500	'	'
warrants issued to purchase per share	'	'	'	'	$0.50	'	'
Common stock issued in settlement of common stock payable	'	'	1,499,150	'	'	'	'
Warrants purchase	'	'	374,788	'	'	'	'
Common stock per shares	'	'	$0.50	'	'	'	'
Warrants exercisable period	'	'	'60 months	'	'	'	'

Deferred_Revenue_Details_Narra

Deferred Revenue (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Recognized revenue	$900	$19,250	$39,400	$57,750
Biomedical entity [Member]	'	'	'	'
Recognized revenue	1,250	1,250	3,750	3,750
License fees	'	'	'	'
Recognized revenue	29,920	'	89,758	'
Product sales	'	'	'	'
Recognized revenue	$283,324	'	$1,075,402	'

Change_in_Fair_Value_of_Warran2

Change in Fair Value of Warrant Liability (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012
Exercise price	$0.25	$0.25
Market value of stock at end of period	$0.10	$0.10
Expected dividend rate	0.00%	0.00%
Risk-free interest rate	0.10%	0.10%
Minimum [Member]	'	'
Expected volatility rate	221.00%	221.00%
Maximum [Member]	'	'
Expected volatility rate	240.00%	240.00%

Change_in_Fair_Value_of_Warran3

Change in Fair Value of Warrant Liability (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Change In Fair Value Of Warrant Liability Details Narrative	'	'	'	'
Fair value of warrant liability	$0	$108,633	$0	$1,608,486

Amortization_of_Debt_Discount_1

Amortization of Debt Discount on Convertible Note Payable (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Amortization Of Debt Discount On Convertible Note Payable Details Narrative	'
Amortization of debt discount	$358,555