Dais (DLYT) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 14, 2014
Document And Entity Information	'	'
Entity Registrant Name	'DAIS ANALYTIC CORP	'
Entity Central Index Key	'0001125699	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
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	'	101,109,034
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

Balance_Sheets

Balance Sheets (USD $)	Jun. 30, 2014	Dec. 31, 2013
CURRENT ASSETS	'	'
Cash and cash equivalents	$569,777	$27,125
Accounts receivable, net	163,661	149,130
Other receivables	47,993	109,106
Inventory	182,216	159,870
Prepaid expenses and other current assets	78,262	47,540
Total Current Assets	1,041,909	492,771
Property and equipment, net	85,366	96,981
OTHER ASSETS:	'	'
Deposits	2,280	2,280
Patents, net of accumulated amortization of $189,705 and $176,178 at June 30, 2014 and December 31, 2013, respectively	118,653	113,139
Total Other Assets	120,933	115,419
TOTAL ASSETS	1,248,208	705,171
CURRENT LIABILITIES:	'	'
Accounts payable, including related party payables of $10,809 and $160,374 at March 31, 2014 and December 31, 2013, respectively	382,335	641,074
Accrued expenses, other	128,081	126,990
Current portion of deferred revenue	134,618	205,201
Note payable, related party	'	35,000
Total Current Liabilities	645,034	1,008,265
LONG-TERM LIABILITIES:	'	'
Accrued compensation and related benefits	1,695,672	1,672,893
Deferred revenue, net of current portion	1,763,686	1,773,525
Total Long-Term Liabilities	3,459,358	3,446,418
Total Liabilities	4,104,392	4,454,683
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; 101,366,247 and 60,116,247 shares issued and 101,109,034 and 59,859,034 shares outstanding, respectively	1,013,663	601,163
Capital in excess of par value	38,138,143	36,994,742
Accumulated deficit	-40,735,878	-40,073,305
Total	-1,584,072	-2,477,400
Treasury stock at cost, 257,213 shares	-1,272,112	-1,272,112
Total Stockholders' Deficit	-2,856,184	-3,749,512
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$1,248,208	$705,171

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Other assets:	'	'
Patents, net of accumulated amortization	$189,705	$176,178
Current liabilities:	'	'
Accounts payable, including related party payables	$4,403	$160,374
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	101,366,247	60,116,247
Common stock shares outstanding	101,109,034	59,859,034
Treasury stock shares	257,213	257,213

Statements_Of_Operations_Unaud

Statements Of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
REVENUE:	'	'	'	'
Sales	$488,354	$477,950	$708,765	$1,047,572
License fees and royalties	34,248	50,419	65,418	100,839
TOTAL	522,602	528,369	774,183	1,148,411
COST OF GOODS SOLD	307,400	351,184	514,550	832,147
GROSS MARGIN	215,202	177,185	259,633	316,264
OPERATING EXPENSES	'	'	'	'
Research and development expenses, net of government grant proceeds of $99,087, $0, $260,004 and $0	109,312	206,784	217,338	326,742
Selling, general and administrative expenses	365,931	1,058,907	706,386	1,384,238
TOTAL OPERATING EXPENSES	475,243	1,265,691	923,724	1,710,980
LOSS FROM OPERATIONS	-260,041	-1,088,506	-664,091	-1,394,716
OTHER EXPENSE (INCOME)	'	'	'	'
Other income	-1,500	-5,000	-1,500	-5,000
Interest expense	'	'	374	'
Interest income	-338	'	-392	-62
TOTAL OTHER EXPENSE (INCOME)	-1,838	-5,000	-1,518	-5,062
NET LOSS	'	'	($662,573)	($1,389,654)
NET LOSS PER COMMON SHARE, BASIC	$0	($0.02)	($0.01)	($0.02)
NET LOSS PER COMMON SHARE, DILUTED	$0	($0.02)	($0.01)	($0.02)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED	101,366,247	55,767,097	86,262,656	55,595,751

Statements_Of_Operations_Unaud1

Statements Of Operations (Unaudited) (Parenthetical) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Statements Of Operations Parenthetical	'	'	'	'
Research and development expenses, net of government grant	$99,087	$0	$260,004	$0

Statements_Of_Stockholders_Def

Statements Of Stockholders' Deficit (Unaudited) (USD $)	Common Stock	CapitalIn Excess Of Par Value	Accumulated Deficit	Treasury Stock	Total
Beginning Balance, Amount at Dec. 31, 2013	$601,163	$36,994,742	($40,073,305)	($1,272,112)	($3,749,512)
Beginning Balance, Shares at Dec. 31, 2013	60,116,247	'	'	'	'
Issuance of common stock for cash, including common stock issued to placement agent, Amount	412,500	1,087,500	'	'	1,500,000
Issuance of common stock for cash, including common stock issued to placement agent, Shares	41,250,000	'	'	'	'
Stock-based compensation	'	55,901	'	'	55,901
Net loss	'	'	-662,573	'	-662,573
Ending Balance, Amount at Jun. 30, 2014	$1,013,663	$38,138,143	($40,735,878)	($1,272,112)	($2,856,184)
Ending Balance, Shares at Jun. 30, 2014	101,366,247	'	'	'	'

Statements_Of_Cash_Flows_Unaud

Statements Of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($662,573)	($1,389,654)
Adjustments to reconcile net loss to net cash and cash equivalents used by operating activities:	'	'
Depreciation and amortization	34,342	28,549
Stock based compensation expense	55,901	752,450
Increase in allowance for doubtful accounts	'	8,698
(Increase) decrease in:	'	'
Accounts receivable	-14,531	267,164
Other receivables	61,113	'
Inventory	-22,346	38,430
Prepaid expenses and other assets	-30,722	-7,181
Increase (decrease) in:	'	'
Accounts payable and accrued expenses	-257,648	-2,791
Accrued compensation and related benefits	22,779	64,610
Deferred revenue and customer deposits	-80,422	-100,839
Net cash used by operating activities	-894,107	-340,564
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Increase in patent costs	-19,041	-33,493
Purchase of property and equipment	-9,200	-5,811
Net cash used by investing activities	-28,241	-39,304
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Payments on notes payable, related party	-35,000	'
Issuance of common stock, net of offering costs	1,500,000	179,888
Net cash provided by financing activities	1,465,000	179,888
Net increase (decrease) in cash and cash equivalents	542,652	-199,980
Cash and cash equivalents, beginning of period	27,125	294,150
Cash and cash equivalents, end of period	569,777	94,170
SUPPLEMENTAL CASH FLOW INFORMATION:	'	'
Cash paid for interest	$374	'

Background_Information

Background Information	6 Months Ended
	Jun. 30, 2014
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, 2013 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2014. The results of operations for the three and six month periods ended June 30, 2014 are not necessarily indicative of the results that may be expected for any future quarters or for the entire year ending December 31, 2014.

Going_Concern

Going Concern	6 Months Ended
	Jun. 30, 2014
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 June 30, 2014, the Company has an accumulated deficit of $40,735,878 and a stockholders’ deficit of $2,856,184. The Company used $894,107 and $340,564 of cash in operations during the six months ended June 30, 2014 and 2013, respectively, which was funded by proceeds from product sales and equity financings. The Company, as a result of an equity financing completed in the quarter ended March 31, 2014, has $569,777 in cash and cash equivalents. 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.
	Currently, the Company secures a substantial portion of its revenue from one customer. In October of 2012, we entered into a License and Supply Agreement with MG Energy LLC (“MGE”). Pursuant to the agreement, effective October 26, 2012, we licensed certain intellectual property and improvements thereto to MGE, 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. Energy recovery ventilators are mechanical equipment, of which an energy recovery ventilator air to air exchanger core is a component, that assists in the recovery of energy from the exhaust air expelled by an HVAC system for the purpose of pre-conditioning the incoming outdoor air's components prior to supplying the conditioned air to a residential or commercial building, either directly or as part of an air-conditioning system. MGE also agreed to purchase its requirements of certain products including, but not limited to, our ConsERV™ energy recovery ventilator cores from us for MGE’s use, pursuant to the terms and conditions of the agreement. MGE then entered into a sublicense with Multistack, LLC. Based on filings with the U.S. Securities and Exchange Commission, Michael Gostomski, one of the Company’s shareholders with approximately 2,500,000 shares at June 30, 2014, has an ownership interest in both MGE and Multistack, LLC. For the year ended December 31, 2013, Multistack, LLC, accounted for approximately 83% of the Company’s revenue. For the three and six months ended June 30, 2014, Multistack, LLC, accounted for approximately 62% and 59%, respectively, of the Company’s revenue.
	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. The Company plans to increase its sales outside North America and raise equity through the sale of licenses. As discussed in Note 10, on April 24, 2014, the Company entered into a Distribution Agreement with SoEX (Hong Kong) Industry & Investment Co., Ltd., to distribute certain of the Company’s products in China. The Company is scheduled to receive a $500,000 payment, of which $25,000 has been received, that is due on or before October 24, 2014. There can be no assurance, however, that the Company will be successful in securing other such cash flows. Any failure to timely procure additional cash flows adequate to pay our outstanding obligations 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	6 Months Ended
	Jun. 30, 2014
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 six month periods ended June 30, 2014 and 2013, (b) the financial position at June 30, 2014 and December 31, 2013, and (c) cash flows for the six month periods ended June 30, 2014 and 2013, 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 - For purposes of the Statements of Cash Flows, the Company considers all highly liquid debt instruments with a maturity of three months or less to be 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.
	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 $831 at June 30, 2014 and December 31, 2013, respectively.
	Other receivables - Other receivables consist primarily of receivables from the U.S. Department of Defense and the U.S. Department of Energy grant programs. The Company prepares invoices as it meets grant program milestones. Based on management’s review of other receivables, management has determined that no allowance for uncollectibilty is necessary at June 30, 2014 and December 31, 2014.
	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 3 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 17 to 20 years. Patent amortization expense was $5,828 and $5,295 for the three months ended June 30, 2014 and 2013, respectively. Patent amortization expense was $13,527 and $11,303 for the six months ended June 30, 2014 and 2013, respectively. Total patent amortization expense for the next five years is estimated to be approximately $17,000 per year and $34,000 thereafter.
	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 six month periods ended June 30, 2014.
	Revenue recognition - Generally, the Company recognizes revenue for its products upon shipment to customers, provided no significant obligations remain and collection is probable. In certain instances, our ConsERV energy recovery ventilator product carries a warranty of up to two years for all parts contained therein with the exception of the energy recovery ventilator core which, in some circumstances, may carry a warranty of up to 10 years. Subject to the terms of any such warranty, Company provides replacement parts for such products if original parts are determined to be defective. The Company has recorded an accrual of approximately $92,100 for future warranty expenses at June 30, 2014 and December 31, 2013.
	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 $61,263 and $100,800 from license agreements for the six months ended June 30, 2014 and 2013, respectively. The Company recognized revenue of $30,093 and $50,400 from license agreements for the three months ended June 30, 2014 and 2013, 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.
	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 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. The fair value of common stock issued for services is based on the closing stock price on the date the common stock was issued. During the six months ended June 30, 2014, the Company issued options to purchase 50,000 shares of stock at $0.27 per share to a consultant. The total fair value of the options was determined to be $11,809. During the six months ended June 30, 2013, the Company did not issue any non-employee stock based compensation.
	The value of option grants given to employees and consultants are estimated at the grant date using the Black-Scholes option model with the following assumptions for options granted during the six months ended June 30, 2014 and 2013:
	Six Months Ended		2014			2013
	Dividend rate			0	%		0	%
	Risk free interest rate			0.02% – 0.03	%		2.03% – 2.20	%
	Expected term		3 –10 years			10 years
	Expected volatility			177% – 183	%		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 based upon historical trends in the Company’s common stock.
	Research and development expenses and grant proceeds - Expenditures for research, development and engineering of products are expensed as incurred. For the three and six months ended June 30, 2014, the Company incurred gross research and development costs of approximately $208,400 and $477,300, respectively. For the three and six months ended June 30, 2013, the Company incurred gross research and development costs of approximately $206,800 and $326,800, respectively. The Company accounts for proceeds received from government grants for research as a reduction in research and development costs. For the three and six months ended June 30, 2014, the Company recorded approximately $99,100 and $260,000, respectively, in grant proceeds against research and development expenses on the statements of operations. There were no grant proceeds received by the Company during the three and six months ended June 30, 2013.
	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 June 30, 2014. The Company uses the market approach to measure fair value for its Level 1 financial assets and liabilities, which include cash equivalents of approximately $450,000 at June 30, 2014. 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 provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. 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 generally remain open for three years from the date of filing.
	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 the three and six months ended June 30, 2014 and 2013, the Company had 37,831,418 and 36,881,319 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 are 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 – In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our financial statements and have not yet determined the method by which we will adopt the standard in 2017.
	Other 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	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 4 - Accrued Expenses, Other	'
	Accrued expenses, other consist of the following:
		30-Jun-14		31-Dec-13
	Accrued expenses, other	$	36,826	$	34,890
	Accrued warranty costs		91,255		92,100
		$	128,081	$	126,990

Related_Party_Transactions

Related Party Transactions	6 Months Ended
	Jun. 30, 2014
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 four to six hours 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 $4,066 per month, including sales tax. The Company recognized rent expense of approximately $12,200 during each of the three month periods ended June 30, 2014 and 2013 and approximately $24,400 during each of the six month periods ended June 30, 2014 and 2013. At June 30, 2014 and December 31, 2013, $3,779 and $124,917, respectively, were included in accounts payable for amounts owed to these stockholders for rent.
	The Company also has accrued compensation due to the Chief Executive Officer and two other employees for deferred salaries earned and unpaid as of June 30, 2014 and December 31, 2013 of $1,695,672 and $1,672,893, respectively. The Company determined that all of the accrued payroll is a long term liability, as the Company does not believe it will be repaid within the next year.
	On November 25, 2013, the Company entered into an agreement with a related party to borrow $35,000, the entire amount of which was due on demand as of December 31, 2013, with an interest rate of 6%. The Company paid all interest and principal due under this note on March 7, 2014.
	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	6 Months Ended
	Jun. 30, 2014
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 the six months ended June 30, 2014 and 2013 was $0.26 and $0.15 per share respectively. There were no options exercised during the six months ended June 30, 2013 and 2014.
	The following summarizes the information relating to outstanding stock options activity with employees and consultants during 2014:
		Common			Weighted Average			Weighted Average		Aggregate
		Shares			Exercise Price			Remaining		Intrinsic
								Contractual Term		Value
								(in years)
	Outstanding at December 31, 2013		21,531,416			$	0.26		5.91		$	-
	Granted		150,000			$	0.26
	Expired/Forfeited		(256,000	)		$	0.23
	Outstanding at June 30, 2014		21,425,416			$	0.26		5.47		$	671,442
	Exercisable at June 30, 2014		20,940,694			$	0.27		5.4		$	596,716
	Stock compensation expense was approximately $44,400 and $55,900 for the three and six months ended June 30, 2014, respectively, and $727,700 and $752,500 for the three and six months ended June 30, 2013, respectively. The total fair value of shares vested during the six months ended June 30, 2014 and 2013 was approximately $32,700 and $640,200, respectively.
	As of June 30, 2014, there was approximately $36,100 of unrecognized employee stock-based compensation expense related to non vested stock options, of which approximately $13,200, $21,900 and $1,000 is expected to be recognized for the remainder of the fiscal year ending December 31, 2014, and for the fiscal years ending 2015 and 2016, respectively.
	The following table represents our non vested share-based payment activity with employees and consultants for the six months ended June 30, 2014:
		Number of				Weighted Average
		Options				Grant Date
						Fair Value
	Nonvested options - December 31, 2013		605,140			$	0.13
	Granted		150,000				0.26
	Vested		(270,418	)		$	0.18
	Nonvested options – June 30, 2014		484,722			$	0.11
	Warrants
	At June 30, 2014, 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				Weighted Average		Weighted Average
		Number Outstanding				Remaining Life		Exercise Price
						(Years)
	Warrants-Financing		7,000,000				1.73		0.34
	Warrants-Consulting Agreement		575,000				0.46		0.32
	Warrants-Note Conversions		1,761,413				1.12		0.43
	Warrants-Stock Purchases		6,669,589				3.22		0.36
	Warrants-Services		400,000				0.56		0.5
	Total		16,406,002

Securities_Purchase_Agreement

Securities Purchase Agreement	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 7 - Securities Purchase Agreement	'
	The Company entered into a Securities Purchase Agreement (the “SPA”) with an investor, SoEX (Hong Kong) Industry & Investment Co., Ltd., a Hong Kong corporation (the “Investor”), pursuant to which the Company agreed to sell 37.5 million shares of the Company’s common stock, for $1.5 million, at $0.04 per share pursuant to Regulation S. The Company received the $1.5 million from the Investor on March 3, 2014, ahead of the March 7, 2014 deadline specified in the SPA and has issued the 37.5 million shares of common stock to the Investor and 3,750,000 shares of common stock to a non-U.S. placement agent. The Company shall use the proceeds from the sale of the common stock for working capital and business development. Pursuant to the SPA, the Company and the Investor negotiated the organization of a joint venture subsidiary, which has not yet been formed, owned by the Company and the Investor (see Note 10). The SPA also requires the Company to appoint a director nominated by the Investor which shall be completed upon final review of the applicant nominated by the Investor. The Investor also signed a voting agreement which obligates the Investor to vote as recommended by the Company’s board of directors for a one-year period beginning on the date the shares of common stock are issued to the Investor, which were issued on March 6, 2014.

Deferred_Revenue

Deferred Revenue	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 8 - 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. This agreement expired at the end of 2013. The Company recognized revenue of approximately $19,250 for this agreement during each quarter ended March 31, 2013 and June 30, 2013.
	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. This agreement expired during the quarter ended June 30, 2014. The Company recognized revenue of approximately $1,250 and $1,424 for this agreement during the three and six months, respectively, ended June 30, 2014 and $1,250 and $2,500 for this agreement during the three and six months, respectively, ended June 30, 2013.
	On October 30, 2012, the Company and MGE, 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 MGE, 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 MGE. MGE also agreed to purchase its requirements of certain ConsERV products from the Company for MGE’s use, pursuant to the terms and conditions of the Agreement. MGE 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 MGE 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 license and royalty revenue of approximately $30,000 and $60,000 for this Agreement during the quarters and six-month periods ended June 30, 2014 and 2013, respectively.
	MGE entered into a sublicense with Multistack, LLC. Based on filings with the U.S. Securities and Exchange Commission, Michael Gostomski, one of the Company’s shareholders with approximately 2,500,000 shares at June 30, 2014, has an ownership interest in both MGE and Multistack, LLC. For the three and six months ended June 30, 2014, Multistack, LLC, accounted for approximately 62% and 59%, respectively, of the Company’s revenue. At June 30, 2014 and December 31, 2013, amounts due from Multistack, LLC were approximately 50% and 63%, respectively, of total accounts receivable.
	As discussed in Note 10, on April 24, 2014, the Company entered into a Distribution Agreement with SoEX (Hong Kong) Industry & Investment Co., Ltd., to distribute certain of the Company’s products in China. The Company is scheduled to receive a $500,000 payment, of which $25,000 has been received, that is due on or before October 24, 2014. This fee will be deferred and will be recognized on a straight-line basis over a performance period of 15 years.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 9 - Litigation	'
	In the ordinary course of business, the Company may become a party to various legal proceedings generally involving contractual matters, infringement actions, product liability claims and other matters.
	In November 2013, the Company’s Chief Operating Officer resigned from the Company. The former Chief Operating Officer alleges that the resignation was for Good Reason, as defined in the former Chief Operating Officer’s employment agreement, and filed a demand for arbitration in December 2013. The former Chief Operating Officer is seeking severance pay equal to $60,000, which is 50% of her annual salary in effect as of the date of resignation. The Company disputes the material allegations in the arbitration demand and believes the risk of loss is remote.
	In March 2014, the Company received notice of a lawsuit against the Company and one of its customers for damages in connection with the installation of equipment by a contractor involved in a construction project. The contractor makes claims for breach or warranties, negligence and products liability. In the complaint, the contractor alleges that it paid $180,000 to the general contractor of the project for damages, primarily consequential and incidental damages, allegedly caused by an alleged failure of a subcontracted component of equipment provided by the Company and its customer.
	For both matters, the Company intends to vigorously defend itself against these allegations and, at this stage, the Company does not have an estimate of the likelihood or the amount of any potential expense for these matters.

Distribution_Agreement_with_So

Distribution Agreement with SoEX (Hong Kong) Industry & Investment Co., Ltd.	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 10 - Distribution Agreement with SoEX (Hong Kong) Industry & Investment Co., Ltd.	'
	On April 24, 2014, the Company entered into a Distribution Agreement (the “Distribution Agreement”) with SoEX (Hong Kong) Industry & Investment Co., Ltd., a Hong Kong corporation (the “Distributor”), to distribute certain of the Company’s products. Pursuant to the Distribution Agreement, in exchange for $500,000, including $50,000 due upon the execution of the Distribution Agreement, royalty payments and a commitment from the Distributor to purchase nano-material membrane and other products from Dais, the Distributor obtained the right to distribute and market Dais’s products for incorporation in energy recovery ventilators sold and installed in commercial, industrial and residential buildings, transportation facilities and vehicles (the “Field”) in mainland China, Hong Kong, Macao and Taiwan (the “Territory”). Further the Distributor received an exclusive license in the Territory to use Dais’s intellectual property in the manufacture and sale of Dais’s products in the Field and Territory and to purchase its requirements of nano-material membrane only from Dais, subject to terms and conditions of the Distribution Agreement. The initial term of the Distribution Agreement is fifteen years unless terminated for, among other causes, the Distributor’s failure to make payments to Dais for products ordered that do not exceed $15,000,000 in 2016 or any calendar year thereafter.
	To further the distribution of Dais’s products in the Territory, and to further the intent of the Company and the Distributor first memorialized in the Securities Purchase Agreement, dated January 21, 2014 between the Distributor and Dais, the Distributor shall form SoEX (Beijing) Environmental Protection Technology Company Limited (the “Subsidiary”) which will function as the manufacturer and master distributor for the products in the Field and Territory. Upon the legal formation of the Subsidiary, Dais will be issued 25% of the equity of the Subsidiary, the right to a board seat and certain preemptive rights.

Subsequent_Events

Subsequent Events	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Note 11 - Subsequent Events	'
	No material events have occurred subsequent to June 30, 2014 that require recognition or disclosure in these financial statements.

Significant_Accounting_Policie1

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2014
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	'
	For purposes of the Statements of Cash Flows, the Company considers all highly liquid debt instruments with a maturity of three months or less to be 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.
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 $831 at June 30, 2014 and December 31, 2013, respectively.
Other receivables	'
	Other receivables consist primarily of receivables from the U.S. Department of Defense and the U.S. Department of Energy grant programs. The Company prepares invoices as it meets grant program milestones. Based on management’s review of other receivables, management has determined that no allowance for uncollectibilty is necessary at June 30, 2014 and December 31, 2014.
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 3 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 17 to 20 years. Patent amortization expense was $5,828 and $5,295 for the three months ended June 30, 2014 and 2013, respectively. Patent amortization expense was $13,527 and $11,303 for the six months ended June 30, 2014 and 2013, respectively. Total patent amortization expense for the next five years is estimated to be approximately $17,000 per year and $34,000 thereafter.
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 six month periods ended June 30, 2014.
Revenue recognition	'
	Generally, the Company recognizes revenue for its products upon shipment to customers, provided no significant obligations remain and collection is probable. In certain instances, our ConsERV energy recovery ventilator product carries a warranty of up to two years for all parts contained therein with the exception of the energy recovery ventilator core which, in some circumstances, may carry a warranty of up to 10 years. Subject to the terms of any such warranty, Company provides replacement parts for such products if original parts are determined to be defective. The Company has recorded an accrual of approximately $92,100 for future warranty expenses at June 30, 2014 and December 31, 2013.
	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 $61,263 and $100,800 from license agreements for the six months ended June 30, 2014 and 2013, respectively. The Company recognized revenue of $30,093 and $50,400 from license agreements for the three months ended June 30, 2014 and 2013, 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.
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 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. The fair value of common stock issued for services is based on the closing stock price on the date the common stock was issued. During the six months ended June 30, 2014, the Company issued options to purchase 50,000 shares of stock at $0.27 per share to a consultant. The total fair value of the options was determined to be $11,809. During the six months ended June 30, 2013, the Company did not issue any non-employee stock based compensation.
	The value of option grants given to employees and consultants are estimated at the grant date using the Black-Scholes option model with the following assumptions for options granted during the six months ended June 30, 2014 and 2013:
	Six Months Ended		2014			2013
	Dividend rate			0	%		0	%
	Risk free interest rate			0.02% – 0.03	%		2.03% – 2.20	%
	Expected term		3 –10 years			10 years
	Expected volatility			177% – 183	%		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 based upon historical trends in the Company’s common stock.
Research and development expenses and grant proceeds	'
	Expenditures for research, development and engineering of products are expensed as incurred. For the three and six months ended June 30, 2014, the Company incurred gross research and development costs of approximately $208,400 and $477,300, respectively. For the three and six months ended June 30, 2013, the Company incurred gross research and development costs of approximately $206,800 and $326,800, respectively. The Company accounts for proceeds received from government grants for research as a reduction in research and development costs. For the three and six months ended June 30, 2014, the Company recorded approximately $99,100 and $260,000, respectively, in grant proceeds against research and development expenses on the statements of operations. There were no grant proceeds received by the Company during the three and six months ended June 30, 2013.
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 June 30, 2014. The Company uses the market approach to measure fair value for its Level 1 financial assets and liabilities, which include cash equivalents of approximately $450,000 at June 30, 2014. 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 provided for the tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes resulting from temporary differences. Such temporary differences result from differences in the carrying value of assets and liabilities for tax and financial reporting purposes. The deferred tax assets and liabilities represent the future tax consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. 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 generally remain open for three years from the date of filing.
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 the three and six months ended June 30, 2014 and 2013, the Company had 37,831,418 and 36,881,319 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 are 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	'
	In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our financial statements and have not yet determined the method by which we will adopt the standard in 2017.
	Other 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)	6 Months Ended
	Jun. 30, 2014
Significant Accounting Policies Tables	'
Black-Scholes option model assumptions for options granted	'
	The value of option grants given to employees and consultants are estimated at the grant date using the Black-Scholes option model with the following assumptions for options granted during the six months ended June 30, 2014 and 2013:
	Six Months Ended	2014			2013
	Dividend rate		0	%		0	%
	Risk free interest rate		0.02% – 0.03	%		2.03% – 2.20	%
	Expected term	3 –10 years			10 years
	Expected volatility		177% – 183	%		177	%

Accrued_Expenses_Other_Tables

Accrued Expenses, Other (Tables)	6 Months Ended
	Jun. 30, 2014
Accrued Expenses Other Tables	'
Accrued expenses and other expenses	'
	Accrued expenses, other consist of the following:
		30-Jun-14		31-Dec-13
	Accrued expenses, other	$	36,826	$	34,890
	Accrued warranty costs		91,255		92,100
		$	128,081	$	126,990

Stock_Options_and_Warrants_Tab

Stock Options and Warrants (Tables)	6 Months Ended
	Jun. 30, 2014
Stock Options And Warrants Tables	'
Outstanding stock options activity	'
	The following summarizes the information relating to outstanding stock options activity with employees and consultants during 2014:
		Common			Weighted Average			Weighted Average		Aggregate
		Shares			Exercise Price			Remaining		Intrinsic
								Contractual Term		Value
								(in years)
	Outstanding at December 31, 2013		21,531,416			$	0.26		5.91		$	-
	Granted		150,000			$	0.26
	Expired/Forfeited		(256,000	)		$	0.23
	Outstanding at June 30, 2014		21,425,416			$	0.26		5.47		$	671,442
	Exercisable at June 30, 2014		20,940,694			$	0.27		5.4		$	596,716
Non vested share-based payment activity	'
	The following table represents our non vested share-based payment activity with employees and consultants for the six months ended June 30, 2014:
		Number of				Weighted Average
		Options				Grant Date
						Fair Value
	Nonvested options - December 31, 2013		605,140			$	0.13
	Granted		150,000				0.26
	Vested		(270,418	)		$	0.18
	Nonvested options – June 30, 2014		484,722			$	0.11
Warrants	'
	At June 30, 2014, 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				Weighted Average		Weighted Average
		Number Outstanding				Remaining Life		Exercise Price
						(Years)
	Warrants-Financing		7,000,000				1.73		0.34
	Warrants-Consulting Agreement		575,000				0.46		0.32
	Warrants-Note Conversions		1,761,413				1.12		0.43
	Warrants-Stock Purchases		6,669,589				3.22		0.36
	Warrants-Services		400,000				0.56		0.5
	Total		16,406,002

Significant_Accounting_Policie3

Significant Accounting Policies (Details)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Dividend rate	0.00%	0.00%
Expected term	'	'10 years
Expected volatility	'	177.00%
Minimum [Member]	'	'
Risk free interest rate	0.02%	2.03%
Expected term	'3 years	'
Expected volatility	177.00%	'
Maximum [Member]	'	'
Risk free interest rate	0.03%	2.20%
Expected term	'10 years	'
Expected volatility	183.00%	'

Significant_Accounting_Policie4

Significant Accounting Policies (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Significant Accounting Policies Details Narrative	'	'	'	'	'
Stock options to purchase	'	'	50,000	'	'
Stock options to purchase, per share	$0.27	'	$0.27	'	'
Total fair value options	'	'	$11,809	'	'
Allowance for doubtful accounts	831	'	831	'	831
Property and equipment estimated useful life	'	'	'3 to 7 years	'	'
Patents estimated useful life	'	'	'17 to 20 years	'	'
Patent amortization expense	5,828	5,295	13,527	11,303	'
amortization expense for the next five	17,000	'	17,000	'	'
Future amortization expense thereafter	34,000	'	34,000	'	'
Impairment costs	0	'	0	'	'
Warranty accrual	92,100	'	92,100	'	92,100
Revenue recognition from license agreements	30,093	50,400	61,263	100,800	'
Research and development costs	208,400	206,800	477,300	326,800	'
Grant proceeds against research and development expenses	99,100	0	260,000	0	'
Revenue recognition from royalties	30,093	50,400	61,263	100,800	'
Cash equivalents	$450,000	'	$450,000	'	$450,000
Dilutive common shares	37,831,418	36,881,319	37,831,418	36,881,319	'

Accrued_Expenses_Other_Details

Accrued Expenses, Other (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Accrued Expenses Other Details	'	'
Accrued expenses, other	$36,826	$34,890
Accrued warranty costs	91,255	92,100
Accrued Expenses	$128,081	$126,990

Related_Party_Transactions_Det

Related Party Transactions (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Related Party Transactions Details Narrative	'	'	'	'	'
Rent expense recognized	$12,200	$12,200	$24,400	$24,400	'
Accounts payable for rent	3,779	'	3,779	'	124,917
Deferred salaries earned and unpaid	$1,695,672	'	$1,695,672	'	$1,672,893

Stock_Options_and_Warrants_Det

Stock Options and Warrants (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Stock Options And Warrants Details	'
Common shares outstanding, Beginning	21,531,416
Common shares granted	150,000
Common shares expired/forfeited	-256,000
Common shares outstanding, Ending	21,425,416
Common shares outstanding, Exercisable	20,940,694
Weighted average exercise price of shares outstanding, Beginning	$0.26
Weighted average exercise price of shares granted	$0.26
Weighted average exercise price of shares expired/forfeited	$0.23
Weighted average exercise price of shares outstanding, Ending	$0.26
Weighted average exercise price of shares outstanding, exercisable	$0.27
Weighted average remaining contractual term (in years) of shares outstanding, Begining Balance	'5 years 10 months 28 days
Weighted average remaining contractual term (in years) of shares outstanding, Ending Balance	'5 years 5 months 19 days
Weighted average remaining contractual term (in years) of shares exercisable, Ending Balance	'5 years 4 months 24 days
Aggregate intrinsic value of shares outstanding, Ending Balance	$671,442
Aggregate intrinsic value of shares exerciseable	$596,716

Stock_Options_and_Warrants_Det1

Stock Options and Warrants (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2014
Non vested share-based payment activity with employees	'
Nonvested options, Number of Options	605,140
Granted, Number of Options	150,000
Vested, Number of Options	-270,418
Nonvested options, Number of Options	484,722
Nonvested options beginning, Weighted Average Grant Date Fair Value	$0.13
Granted, Weighted Average Grant Date Fair Value	$0.26
Vested, Weighted Average Grant Date Fair Value	$0.18
Nonvested options ending, Weighted Average Grant Date Fair Value	$0.11

Stock_Options_and_Warrants_Det2

Stock Options and Warrants (Details 2) (USD $)	6 Months Ended
	Jun. 30, 2014
Remaining Number Outstanding	$16,406,002
Warrants Financing [Member]	'
Remaining Number Outstanding	7,000,000
Weighted Average Remaining Life	'1 year 11 months 23 days
Weighted Average Exercise Price	$0.34
Warrants Consulting Agreement [Member]	'
Remaining Number Outstanding	575,000
Weighted Average Remaining Life	'5 months 16 days
Weighted Average Exercise Price	$0.32
Warrants Note Conversions [Member]	'
Remaining Number Outstanding	1,761,413
Weighted Average Remaining Life	'1 year 1 month 13 days
Weighted Average Exercise Price	$0.43
Warrants Stock Purchases [Member]	'
Remaining Number Outstanding	6,669,589
Weighted Average Remaining Life	'3 years 2 months 19 days
Weighted Average Exercise Price	$0.36
Warrants Services [Member]	'
Remaining Number Outstanding	$400,000
Weighted Average Remaining Life	'6 months 22 days
Weighted Average Exercise Price	$0.50

Stock_Options_and_Warrants_Det3

Stock Options and Warrants (Details Narrative) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Stock Options And Warrants Details Narrative	'	'	'	'
Stock compensation expense	$44,400	$727,700	$55,900	$752,500
Total fair value of shares vested	'	'	32,700	640,200
Unrecognized employee stock-based compensation expense first year	13,200	'	13,200	'
Unrecognized employee stock-based compensation expense second year	21,900	'	21,900	'
Unrecognized employee stock-based compensation expense third year	1,000	'	1,000	'
Total unrecognized employee stock-based compensation expenses	$36,100	'	$36,100	'
Fair value of options granted	'	'	$0.26	$0.15

Securities_Purchase_Agreement_

Securities Purchase Agreement (Details Narrative) (USD $)	6 Months Ended
In Millions, unless otherwise specified	Jun. 30, 2014
Notes to Financial Statements	'
Cash from Investor	$1.50

Deferred_Revenue_Details_Narra

Deferred Revenue (Details Narrative) (USD $)	3 Months Ended			6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Mar. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Deferred Revenue Details Narrative	'	'	'	'	'	'
Recognized revenue	'	$19,250	$19,250	'	'	'
Percentage of revenue	62.00%	'	'	59.00%	'	'
Percentage of accounts receivable	50.00%	'	'	50.00%	'	63.00%
Company recognized revenue agreement	1,250	1,250	'	1,424	2,500	'
License and royalty revenue	$30,000	$60,000	'	$30,000	$60,000	'