Ocata Therapeutics (OCAT) Inactive 10-Q12 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Oct. 30, 2013
Document And Entity Information	'	'
Entity Registrant Name	'ADVANCED CELL TECHNOLOGY, INC.	'
Entity Central Index Key	'0001140098	'
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	'Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	2,610,116,463
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2013	Dec. 31, 2012
ASSETS	'	'
Cash and cash equivalents	$5,452,653	$7,241,852
Grants receivable	25,685	96,425
Deferred royalty fees, current portion	62,435	82,435
Prepaid expenses	949,065	132,044
Total current assets	6,489,838	7,552,756
Property and equipment, net	697,027	175,256
Deferred royalty fees, less current portion	123,388	170,216
Deposits	66,751	29,856
Deferred costs	165,298	568,458
TOTAL ASSETS	7,542,302	8,496,542
LIABILITIES AND STOCKHOLDERS' DEFICIT	'	'
Accounts payable	2,716,272	2,956,743
Accrued expenses	2,647,728	3,210,908
Accrued settlement	0	6,807,891
Convertible promissory notes, current portion net of discounts of $0 and $30,935, respectively	0	256,850
Senior secured convertible debentures, current portion, net of discount of $275,396 and $290,000, respectively	2,124,604	2,110,000
Embedded conversion option liabilities, current portion	235,595	460,668
Loss contingency accrual	7,528,896	6,176,787
Deferred revenue, current portion	157,872	224,935
Total current liabilities	15,410,967	22,204,782
Senior secured convertible debentures, less current portion, net of discount of $75,107 and $435,000, respectively	1,724,893	3,165,000
Embedded conversion option liabilities, less current portion	467,405	507,033
Warrant and option derivative liabilities	357,875	972,381
Deferred revenue, less current portion	1,789,170	1,907,574
Total liabilities	19,750,310	28,756,770
Series A-1 redeemable preferred stock, $0.001 par value; 50,000,000 shares authorized, 0 and 113 shares issued and outstanding; aggregate liquidation value, net of discounts: $0 and $1,607,497, respectively	0	1,598,533
Commitments and contingencies	'	'
STOCKHOLDERS' DEFICIT:	'	'
Common stock	2,608,116	2,232,721
Additional paid-in capital	319,606,218	289,842,597
Promissory notes receivable, net of discount of $2,469,699 and $3,776,528 respectively	-33,399,438	-31,622,696
Accumulated deficit	-301,022,907	-282,311,386
Total stockholders' deficit	-12,208,008	-21,858,761
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	7,542,302	8,496,542
Series B Preferred Stock	'	'
STOCKHOLDERS' DEFICIT:	'	'
Preferred stock	1	1
Total stockholders' deficit	1	1
Series C Preferred Stock	'	'
STOCKHOLDERS' DEFICIT:	'	'
Preferred stock	2	2
Total stockholders' deficit	$2	$2

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
CURRENT LIABILITIES:	'	'
Discount on convertible promissory notes - current	$0	$30,935
Discount on senior secured convertible debentures - current	275,396	290,000
Discount on senior secured convertible debentures - noncurrent	75,107	435,000
Series A-1 redeemable preferred stock par value (in Dollars per share)	$0.00	$0.00
Series A-1 redeemable preferred stock shares authorized	50,000,000	50,000,000
Series A-1 redeemable preferred stock shares issued	0	113
Series A-1 redeemable preferred stock shares outstanding	0	113
Series A-1 redeemable preferred stock aggregate liquidation value (in Dollars)	0	1,607,497
STOCKHOLDERS' DEFICIT:	'	'
Preferred stock shares outstanding	1,000	1,000
Common stock par value (in Dollars per share)	$0.00	$0.00
Common stock shares authorized	2,750,000,000	2,750,000,000
Common stock shares issued	2,608,116,463	2,232,720,779
Common stock shares outstanding	2,608,116,463	2,232,720,779
Discount on promissory notes receivable (in Dollars)	$2,469,699	$3,776,528
Series B Preferred Stock	'	'
STOCKHOLDERS' DEFICIT:	'	'
Preferred stock par value	$0.00	$0.00
Preferred stock shares authorized	50,000,000	50,000,000
Preferred stock shares issued	1,000	1,000
Preferred stock shares outstanding	1,000	1,000
Series C Preferred Stock	'	'
STOCKHOLDERS' DEFICIT:	'	'
Preferred stock par value	$0.00	$0.00
Preferred stock shares authorized	50,000,000	50,000,000
Preferred stock shares issued	1,750	1,750
Preferred stock shares outstanding	1,750	1,750

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements Of Operations	'	'	'	'
Revenue (License fees and royalties)	$39,468	$68,184	$185,517	$342,053
Cost of Revenue	15,609	15,609	66,827	46,827
Gross profit	23,859	52,575	118,690	295,226
Operating expenses:	'	'	'	'
Research and development	2,898,253	2,363,098	8,285,406	6,204,146
General and administrative expenses	3,211,866	2,695,020	9,148,133	8,994,088
Total operating expenses	6,110,119	5,058,118	17,433,539	15,198,234
Loss from operations	-6,086,260	-5,005,543	-17,314,849	-14,903,008
Interest and other income	162,548	3,585	165,340	13,170
Interest expense	-271,021	-278,493	-1,165,438	-826,109
Finance gain (loss)	343,002	-2,891,600	-637,257	779,481
Fines	0	0	-587,147	-3,500,000
Gain on extinguishment of debt	0	0	438,587	779,481
Adjustments to fair value of derivatives	146,609	-336,200	371,255	256,282
Total non-operating income (expense)	381,138	-3,502,708	-1,414,660	-3,277,176
Loss before provision for income tax	-5,705,122	-8,508,251	-18,729,509	-18,180,184
Provision for income tax	0	0	0	0
Net loss	($5,705,122)	($8,508,251)	($18,729,509)	($18,180,184)
Weighted average shares outstanding : Basic and diluted	2,573,191,224	2,122,463,857	2,451,391,145	2,048,055,615
Loss per share: Basic and diluted	$0	$0	($0.01)	($0.01)

CONSOLIDATED_STATEMENT_OF_STOC

CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (USD $)	Series B Preferred Stock	Series C Preferred Stock	Common Stock	Additional Paid-In Capital	Promissory Notes Receivable, net	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2012	$1	$2	$2,232,721	$289,842,597	($31,622,696)	($282,311,386)	($21,858,761)
Beginning Balance, Shares at Dec. 31, 2012	1,000	1,750	2,232,720,779	'	'	'	'
Issuance of shares for settlements, Shares	'	'	100,283,406	'	'	'	'
Issuance of shares for settlements, Amount	'	'	100,283	5,599,717	'	'	'
Issuance of shares for services, Shares	'	'	9,981,686	'	'	'	'
Issuance of shares for services, Amount	'	'	9,981	1,262,381	'	'	'
Redemption of Series A Preferred Stock, Shares	'	'	27,522,833	'	'	'	'
Redemption of Series A Preferred Stock, Amount	'	'	27,523	1,885,314	'	'	'
Accrued dividends on Series B and C Preferred Stock	'	'	'	1,758,754	'	-1,758,754	'
Accretion of note receivable discount on Series B and C Preferred Stock	'	'	'	'	-1,776,742	1,776,742	'
Stock based compensation	'	'	'	2,650,530	'	'	'
Issuance of shares of common stock, Shares	'	'	237,607,759	'	'	'	'
Issuance of shares of common stock, Amount	'	'	237,608	16,606,925	'	'	'
Net loss	'	'	'	'	'	-18,729,509	-18,729,509
Ending Balance, Amount at Sep. 30, 2013	$1	$2	$2,608,116	$319,606,218	($33,399,438)	($301,022,907)	($12,208,008)
Ending Balance, Shares at Sep. 30, 2013	1,000	1,750	2,608,116,463	'	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($18,729,509)	($18,180,184)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation	64,320	35,541
Amortization of deferred charges	96,828	46,827
Amortization of deferred revenue	-185,467	-342,053
Redeemable preferred stock dividend accrual	43,873	100,409
Stock based compensation	2,650,530	2,892,403
Amortization of deferred issuance costs	403,160	604,887
Amortization of discounts	414,396	120,813
Adjustments to fair value of derivatives	-371,255	-256,282
Shares of common stock issued for compensation	1,272,363	0
Non-cash financing costs	-128,233	1,263,676
Gain on debt extinguishment	-438,587	-779,481
Options issued for consulting services	32,550	51,122
Changes in operating assets and liabilities	'	'
Grants receivable	70,740	-140,046
Prepaid expenses and other assets	-847,021	145,784
Accounts payable and other liabilities	-1,759,433	2,881,360
Net cash used in operating activities	-17,410,745	-11,555,224
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Purchases of property and equipment	-586,091	-10,269
Payment of lease deposits	-36,895	0
Net cash used in investing activities	-622,986	-10,269
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds from issuance of preferred stock	0	6,000,000
Proceeds from issuance of common stock	16,844,532	800,000
Repayment of senior secured convertible debentures	-600,000	-83,500
Net cash provided by financing activities	16,244,532	6,716,500
NET DECREASE IN CASH AND CASH EQUIVALENTS	-1,789,199	-4,848,993
CASH AND CASH EQUIVALENTS, BEGINNING BALANCE	7,241,852	13,103,007
CASH AND CASH EQUIVALENTS, ENDING BALANCE	5,452,653	8,254,014
CASH PAID FOR: Interest	0	0
CASH PAID FOR: Income taxes	0	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:	'	'
Issuance of note receivable on issuance of shares and exercise of warrants for 0 and 88,580,669 shares of common stock	0	7,200,000
Record note receivable discount related to Series C preferred stock	0	-1,026,809
Accrued dividends on Series B and C Preferred Stock	1,758,754	1,487,715
Accretion of note receivable discount on Series B and C Preferred Stock	1,776,742	1,500,672
Issuance of 100,283,406 and 330,690,982 shares of common stock for accrued settlement	5,700,000	38,427,013
Conversion of Series A Preferred stock for 27,522,833 shares of common stock	1,912,837	0
Issuance of 0 and 8,750,000 shares of common stock as commitment fee for securities purchase agreement	$0	$700,000

CONSOLIDATED_STATEMENTS_OF_CAS1

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements Of Cash Flows Parenthetical	'	'
Issuance of common stock for issuance of note receivable	0	88,580,669
Issuance of shares of common stock for accrued settlement	100,283,406	330,690,982
Conversion of Series A Preferred stock for shares of common stock	27,522,833	0
Issuance of common stock as commitment fee for securities purchase agreement, shares	0	8,750,000

1_ORGANIZATIONAL_MATTERS

1. ORGANIZATIONAL MATTERS	9 Months Ended
1. ORGANIZATIONAL MATTERS	Sep. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Note 1 - ORGANIZATIONAL MATTERS	'
	The unaudited consolidated financial statements have been prepared by Advanced Cell Technology, Inc. and Subsidiary (collectively the “Company”), pursuant to the rules and regulations of the Securities and Exchange Commission. The information furnished herein reflects all adjustments (consisting of normal recurring accruals and adjustments) which are, in the opinion of management, necessary to fairly present the operating results for the respective periods. Certain information and footnote disclosures normally present in annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 7, 2013, as amended. The results for the nine months ended September 30, 2013 are not necessarily indicative of the results to be expected for the full year ending December 31, 2013.

	Organization and Nature of Business

	The Company is a life science company, incorporated in the state of Delaware, focused on the emerging field of regenerative medicine. The Company’s core business strategy is to develop and ultimately commercialize stem cell derived cell therapies and biologics that will deliver safe and efficacious patient therapies, and which can be manufactured at scale and are reimbursable at attractive levels. The Company is conducting several ongoing clinical trials for treating macular degeneration, and it has a preclinical development pipeline focused on products for eye diseases, autoimmune and inflammatory diseases, and wound healing. The Company has no therapeutic products currently available for sale and does not expect to have any therapeutic products commercially available for sale for a period of years, if at all. These factors indicate that the Company’s ability to continue its research and development activities is dependent upon the ability of management to obtain additional financing as required.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Note 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation —The Company follows accounting standards set by the Financial Accounting Standards Board (“FASB”). The accompanying consolidated financial statements have been prepared in accordance with GAAP. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification, sometimes referred to as the Codification or ASC.

Principles of Consolidation — The accounts of the Company and its wholly-owned subsidiary Mytogen, Inc. are included in the accompanying consolidated financial statements. All intercompany balances and transactions were eliminated in consolidation.

Segment Reporting —ASC 280, “Segment Reporting” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company determined it has one operating segment. Disaggregation of the Company’s operating results is impracticable, because the Company’s research and development activities and its assets overlap, and management reviews its business as a single operating segment. Thus, discrete financial information is not available by more than one operating segment.

Use of Estimates — These consolidated financial statements have been prepared in accordance with GAAP and, accordingly, require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Specifically, the Company’s management has estimated loss contingencies related to outstanding litigation. In addition, Management has estimated variables used to calculate the Black-Scholes option pricing model used to value derivative instruments and the Company estimates the fair value of the embedded conversion option associated with the senior secured convertible debentures using a binomial lattice model as discussed below under “Fair Value Measurements”. Also, management has estimated the expected economic life and value of the Company’s licensed technology, the Company’s net operating loss for tax purposes, share-based payments for compensation to employees, directors, consultants and investment banks, and the useful lives of the Company’s fixed assets and its accounts receivable allowance. Actual results could differ from those estimates.

Cash and Cash Equivalents — Cash equivalents are comprised of certain highly liquid investments with maturities of three months or less when purchased. The Company maintains its cash in bank deposit accounts, which at times, may exceed federally insured limits. The Company has not experienced any losses related to this concentration of risk. As of September 30, 2013 and December 31, 2012, the Company had deposits in excess of federally-insured limits totaling $5,378,091 and $6,741,852, respectively.

Grant Received — From time to time, the Company participates in research grants both as an initiator of grants as well as a sub-recipient of grant funds. The Company incurs costs for the grant and is subsequently reimbursed for these expenses by grant receipts. The Company records such receipts as a reduction in research and development costs. For the three and nine months ended September 30, 2013, the Company recorded as a reduction in research and development costs, $40,010, and $160,054, respectively. For the three and nine months ended September 30, 2012, the Company recorded as a reduction in research and development costs $140,046 and $260,090, respectively.

Grants Receivable — The Company periodically assesses its grants receivable for collectability on a specific identification basis. If collectability of an account becomes unlikely, the Company records an allowance for that doubtful account. Once the Company has exhausted efforts to collect, management writes off the grants receivable against the allowance it has already created.

Property and Equipment — The Company records its property and equipment at historical cost. The Company expenses maintenance and repairs as incurred. Upon disposition of property and equipment, the gross cost and accumulated depreciation are written off and the difference between the proceeds and the net book value is recorded as a gain or loss on sale of assets. In the case of certain assets acquired under capital leases, the assets are recorded net of imputed interest, based upon the net present value of future payments. Assets under capital lease are pledged as collateral for the related lease.

The Company provides for depreciation over the assets’ estimated useful lives as follows:

Machinery & equipment

4 years

Computer equipment

3 years

Office furniture

4 years

Leasehold improvements

Lesser of lease life or economic life

Patents — The Company follows ASC 350-30, “General Intangibles Other than Goodwill,” in accounting for its patents. ASC 350-30 provides that costs of internally developing, maintaining, or restoring intangible assets that are not specifically identifiable, that have indeterminate lives, or that are inherent in a continuing business and related to an entity as a whole, shall be recognized as an expense when incurred. The Company has expensed as research and development expense all costs associated with developing its patents.

Equity Method Investment — The Company follows ASC 323, “Investments-Equity Method and Joint Ventures,” in accounting for its investment in the joint venture with CHA Bio & Diostech Co. Ltd. (see Note 3 below). In the event the Company’s share of the joint venture’s net losses reduces the Company’s investment to zero, the Company will discontinue applying the equity method and will not provide for additional losses unless the Company has guaranteed obligations of the joint venture or is otherwise committed to provide further financial support for the joint venture. If the joint venture subsequently reports net income, the Company will resume applying the equity method only after its share of that net income equals the share of net losses not recognized during the period the equity method was suspended.

Deferred Costs — Consist of the following:

(a) Payments, either in cash or share-based, made in connection with the sale of debentures which are amortized using the effective interest method over the lives of the related debentures. These deferred issuance costs are charged to financing costs when and if the related debt instrument is retired or converted early. The weighted average amortization period for deferred debt issuance costs is 48 months.

(b) Payments made to secure commitments under certain financing arrangements. These amounts are recognized in financing costs ratably over the period of the financing arrangements, and are recognized in financing costs immediately if the arrangement is cancelled, forfeited or the utility of the arrangement to the company is otherwise compromised.

(c) Payments made to financial institutions and consulting firms in order to provide financing related services. These costs are being amortized over the terms of the related agreements.

Long-Lived Assets— The Company follows ASC 360-10, “Property, Plant, and Equipment,” which established a “primary asset” approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. Through September 30, 2013, the Company had not experienced impairment losses on its long-lived assets.

Fair Value Measurements — The Company applies the provisions of ASC 820-10, “Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. For certain financial instruments, including cash and cash equivalents, grants receivable, prepaid expenses, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their relatively short maturities. The carrying amount of senior secured convertible debentures approximates fair value as the interest rate charged on the debentures is based on the prevailing rate. The three levels of valuation hierarchy are defined as follows:

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company analyzes all financial instruments with features of both liabilities and equity under ASC 480, “Distinguishing Liabilities From Equity,” and ASC 815, “Derivatives and Hedging.” Derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives. The effects of interactions between embedded derivatives are calculated and accounted for in arriving at the overall fair value of the financial instruments. In addition, the fair values of freestanding derivative instruments such as warrant and option derivatives are valued using the Black-Scholes model.

The Company uses Level 2 inputs for its valuation methodology for the warrant derivative liabilities and certain embedded conversion option liabilities as their fair values were determined by using the Black-Scholes option pricing model based on various assumptions. The Company’s derivative liabilities are adjusted to reflect fair value at each period end, with any increase or decrease in the fair value being recorded in results of operations as adjustments to fair value of derivatives.

The Company uses Level 3 inputs for its valuation methodology for the fair value of the embedded conversion options associated with the senior secured convertible debentures.

The Company estimates the fair value of the embedded conversion option associated with the senior secured convertible debentures using a binomial lattice model, which estimates and compares the present value of the principal and interest payments to the as converted value to determine whether the holder of the notes should convert the notes into the Company’s common stock or continue to receive principal and interest payments. The Company uses this methodology to determine the fair value of the notes and corresponding beneficial conversion features because there are no observable inputs available with respect to the fair value.

The binomial lattice model relies on the following Level 3 inputs: (1) expected volatility of the Company’s common stock; (2) discount for illiquidity applicable to potentially large blocks of the Company’s common stock that may be issued upon conversion of the senior secured convertible debentures; and (3) discount rate for contractual debt principal and interest payments. The fair value of the embedded beneficial conversion feature is estimated as the difference between the fair value of the notes with and without the conversion feature. The fair value of the notes without the conversion feature is determined using one Level 3 input, the discount rate for contractual debt interest and principal payments.

The expected volatility of the Company’s common stock is estimated from the historical volatility of daily returns in the Company’s common stock price. The Company monitors the volatility of its common stock on a quarterly basis to observe trends that many impact the fair value of the notes.

The discount for illiquidity is measured using an average-strike option that calculates the discount as the opportunity cost for not being able to sell a large block of the Company’s common stock immediately at prevailing observable market prices. Inputs to the average-strike option model include the expected volatility of the Company’s common stock and time to sell a large block of the Company’s stock as Level 3 inputs and other observable inputs. The time to sell the stock is estimated considering the historical daily trading volume of the Company’s common stock and market maker estimates of the amount of shares that can be offered for sale above the normal the daily trading volume without depressing the price of the Company’s common stock. We monitor the trading volume of the Company’s common stock on a quarterly basis to observe trends that many impact the fair value of the notes.

The discount rate for contractual debt interest and principal payments is estimated considering the security of the payments as stated in the debenture agreements, the Company’s credit standing, and yields to maturity of comparable securities. The Company monitors credit spreads, lending rates for companies that are at a similar stage of development, and the Company’s credit standing on a quarterly basis to observe trends that may impact the fair value of the notes.

The fair value of the senior secured convertible debentures is sensitive to changes in the discount rate for contractual debt principal and interest payments. A decrease in the discount would cause the fair value of the debentures to increase. The discount rate may decrease due to many factors including, decreases in rates of return offered on similar or alternative financial instruments, fluctuations in economic conditions, and improvement in the Company’s credit standing. The Company’s credit standing may improve if the Company raised additional equity capital, grew earnings, or reduced financial obligations.

Because the debentures are convertible into shares of the Company’s common stock, the fair value of the debentures is sensitive to changes in the value, volatility and trading volume of the Company’s common stock as these are primary factors affecting the value of the debenture holder’s conversion option. An increase in stock price and trading volume may improve the ability of the debenture holders to sell large blocks of the Company’s common stock and increase the likelihood of the debenture holders converting the notes into shares of the Company’s common stock. A reduction in the volatility of the Company’s common stock may also increase the likelihood of the debenture holders converting the debentures into shares of the Company’s common stock. Each of these factors may decrease the illiquidity discount estimated for potentially large blocks of the Company’s common stock, which may increase the value of the note conversion option and fair value. An improvement in the Company’s credit standing and increase in the Company’s stock price and trading volume may occur concurrently.

At September 30, 2013, the Company identified the following assets and liabilities that are required to be presented on the balance sheet at fair value:

Fair Value

Fair Value Measurements at

As of

30-Sep-13

Description

30-Sep-13

Using Fair Value Hierarchy

Level 1

Level 2

Level 3

Warrant and option derivative liabilities

357,875

–

357,875

–

Embedded conversion option liabilities

703,000

–

703,000

Total

1,060,875

–

357,875

703,000

The following table reconciles the change in fair value for measurements categorized within Level 3 of the fair value hierarchy:

Embedded

Conversion

Option

Liabilities

Balance at December 31, 2012

845,000

Total (gains) or losses for the period included in earnings

(142,000

)

Balance at September 30, 2013

703,000

Gains and losses included in earnings for the nine months ended September 30, 2013 are reported as follows:

Adjustment to

Fair Value of

Derivatives

Total gain included in earnings

142,000

The following table provides quantitative information about measurements categorized within Level 3 of the fair value hierarchy:

Fair Value at

September 30,

Valuation

Description

2013

Technique

Unobservable Input

Value

Embedded conversion option liability

703,000

Binomial Lattice Model

Expected volatility of the Company's common stock

71%

Discount for illiquidity of large blocks of the Company's common stock

5.7% to 100%

Discount rate for contractual debt principal and interest payments

20.00%

For the three and nine months ended September 30, 2013, the Company recognized a gain of $146,609 and $371,255, respectively, for the changes in the valuation of derivative liabilities. For the three and nine months ended September 30 2012, the Company recognized a loss of $336,200 and a gain of $256,282, respectively, for the changes in the valuation of derivative liabilities.

The Company did not identify any non-recurring assets and liabilities that were recorded at fair value during the periods presented.

Revenue Recognition and Deferred Revenue — The Company’s revenues are primarily generated from license and research agreements with collaborators. Licensing revenue is recognized on a straight-line basis over the shorter of the life of the license or the estimated economic life of the patents related to the license.

License fee revenue begins to be recognized in the first full month following the effective date of the license agreement. Deferred revenue represents the portion of the license and other payments received that has not been earned. Costs associated with the license revenue are deferred and recognized over the same term as the revenue. Reimbursements of research expense pursuant to grants are recorded in the period during which collection of the reimbursement becomes assured, because the reimbursements are subject to approval.

In some cases, the Company is entitled to receive royalty payments from licensees. In such cases, the Company recognizes the royalties when they are earned and collectability of those royalty payments is reasonably assured.

In connection with its license agreements, the Company recorded $39,468 and $185,517 in license fee revenue for the three and nine months ended September 30, 2013, respectively. In connection with its license agreements, the Company recorded $68,184 and $342,053 in license fee revenue for the three and nine months ended September 30, 2012, respectively, in its consolidated statements of operations, and the remainder of the license fees have been accrued in deferred revenue at September 30, 2013 and December 31, 2012, respectively.

Research and Development Costs — Research and development costs consist of expenditures for the research and development of patents and technology, which cannot be capitalized. The Company’s research and development costs consist mainly of payroll and payroll related expenses, research supplies and research grants. Reimbursements of research expense pursuant to grants are recorded in the period during which collection of the reimbursement becomes assured, because the reimbursements are subject to approval. Research and development costs are expensed as incurred.

Share-Based Compensation — The Company records stock-based compensation in accordance with ASC 718, “Compensation – Stock Compensation.” ASC 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the employee’s requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees. There were 119,082,258 and 100,672,803 options outstanding as of September 30, 2013 and 2012, respectively.

Income Taxes — Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.

Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations.

Net Loss Per Share — Earnings per share is calculated in accordance with the ASC 260-10, “Earnings Per Share.” Basic earnings-per-share is based upon the weighted average number of common shares outstanding. Diluted earnings-per-share is based on the assumption that all dilutive convertible shares and stock options were converted or exercised. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period.

As of September 30, 2013 and 2012, the following potential dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.

September 30,

2013

2012

Options, exercisable

98,286,015

74,093,057

Warrants

7,829,883

21,757,421

Convertible shares, notes

79,750,873

4,232,132

Convertible shares, preferred stock

–

1,506,887

185,866,771

101,589,497

Concentrations and Other Risks — Currently, the Company’s revenues are concentrated on a small number of licensees/collaborators. The following table shows the Company’s concentrations of its revenue for those customers comprising greater than 10% of total license revenue for the three and nine months ended September 30, 2013 and 2012.

Three Months Ended

Nine Months Ended

September 30,

2013

2012

2013

2012

International Stem Cell Corporation

18%

30%

51%

CHA Biotech and SCRMI

82%

48%

53%

29%

Lifeline

24%

14%

Embryone Sciences

18%

10%

11%

*License revenue earned during the period was less than 10% of total license revenue.

Other risks include the uncertainty of the regulatory environment and the effect of future regulations on the Company’s business activities. As the Company is a biotechnology research and development company, there is also the attendant risk that someone could commence legal proceedings over the Company’s discoveries.

Reclassifications — Certain amounts have been reclassified in the three and nine months period ended September 30, 2012 to conform with the three and nine months period ended September 30, 2013. The reclassifications are related to costs that have been reclassified from research and development expenses to general and administrative expenses. The reclassification is as follows:

For the Three Months Ended September 30, 2012

As Previously

Net

Reclassified

Reported

Reclass

Amount

Research & Development

2,808,300

(445,202

)

2,363,098

General & Administrative

2,249,818

445,202

2,695,020

For the Nine Months Ended September 30, 2012

As Previously

Net

Reclassified

Reported

Reclass

Amount

Research & Development

7,316,940

(1,112,794

)

6,204,146

General & Administrative

7,881,294

1,112,794

8,994,088

Recent Accounting Pronouncements

In December 2011, the FASB issued ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” This ASU requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. In January 2013, this guidance was amended by ASU 2013-01, “Clarifying the Scope of Disclosure about Offsetting Assets and Liabilities,” which limits the scope of ASU No. 2011-11 to certain derivatives, repurchase and reverse repurchase agreements, and securities borrowing and lending transactions. This guidance is effective for annual and interim reporting periods beginning on or after January 1, 2013. The adoption of this standard did not have a material impact on the consolidated results of operations, financial condition, or liquidity.

3_INVESTMENT_IN_JOINT_VENTURE

3. INVESTMENT IN JOINT VENTURE	9 Months Ended
3. INVESTMENT IN JOINT VENTURE	Sep. 30, 2013
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]	'
Note 3 - INVESTMENT IN JOINT VENTURE	'
	On December 1, 2008, the Company and CHA Bio & Diostech Co., Ltd. formed an international joint venture. The new company, Stem Cell & Regenerative Medicine International, Inc. (“SCRMI”), will develop human blood cells and other clinical therapies based on the Company’s hemangioblast program, one of the Company’s core technologies. Under the terms of the agreement, the Company purchased upfront a 33% interest in the joint venture, and will receive another 7% interest upon fulfilling certain obligations under the agreement over a period of 3 years. The Company’s contribution includes (a) the uninterrupted use of a portion of its leased facility at the Company’s expense, (b) the uninterrupted use of certain equipment in the leased facility, and (c) the release of certain of the Company’s research and science personnel to be employed by the joint venture. In return, for a 60% interest, CHA has agreed to contribute $150,000 cash and to fund all operational costs in order to conduct the hemangioblast program. Effective May 1, 2010, the Company was no longer obligated to provide laboratory space to SCRMI. As of September 30, 2013, the Company holds a 40% interest in the joint venture and CHA Bio & Diostech, Ltd. owns a 60% interest. The two partners to the joint venture are in negotiations on further funding of the joint venture, but there can be no assurances that an agreement will be reached. Any financial statement impact at this time is unclear should an agreement not be reached.

	The Company has agreed to collaborate with the joint venture in securing grants to further research and development of its technology. Additionally, SCRMI has agreed to pay the Company a fee of $500,000 for an exclusive, worldwide license to the hemangioblast Program. The Company recorded $7,353 and $22,059 in license fee revenue for the three and nine months ended September 30, 2013, respectively, and $7,353 and $22,059 in license fee revenue for the three and nine months ended September 30, 2012, respectively, in the consolidated statements of operations, and the balance of unamortized license fee of $359,069 and $381,127 is included in deferred revenue in the consolidated balance sheets at September 30, 2013 and December 31, 2012, respectively.

	On July 15, 2011, the Company and CHA Biotech entered into a binding term sheet, with the expectation of entering into a future definitive agreement, in which the joint venture was realigned around both product development rights and research responsibilities. Under the terms of the binding term sheet, SCRMI exclusively licensed the rights to the hemangioblast Program to the Company for United States and Canada and expanded the jurisdictional scope of the license to CHA Biotech to include Japan (in addition to South Korea, which was already exclusively licensed to CHA Biotech). As part of the agreement, the scientists at SCRMI involved in the hemangioblast Program were transferred to the Company, and SCRMI discontinued its research activity and became solely a licensing entity. In order to maintain its exclusive license the Company is obligated to satisfy certain diligence requirements relating to Licensed Products – which are defined as “any therapeutic, diagnostic, bioinformatics or other human or veterinarian health care product and/or service and or research reagent utilizing or derived in any manner whatsoever from the Technology”. In particular, the Company either needed to meet a minimal research spending requirement of $6.75 million by July 31, 2014, or complete the filing of an IND application or other application for regulatory approval of a Licensed Product. Intellectual property rights created by the Company in the course of its research are subject to a non-exclusive license to CHA Biotech for Japan and South Korea, and to SCRMI to be sub-licensable under certain circumstances for countries other than the United States, Canada, Japan and South Korea. By filing the investigational new animal drug application on September 12, 2013, with the Federal Drug Administration, the Company has met the commitment required to maintain its exclusive license.

	The following table is a summary of key financial data for the joint venture as of and for the nine months ended September 30, 2013 and 2012:

		September 30,
		2013		2012
	Current assets	$	189,866	$	179,310
	Noncurrent assets	$	1,227,201	$	1,028,102
	Current liabilities	$	294,165	$	293,276
	Noncurrent liabilities	$	1,948,582	$	2,240,697
	Net revenue	$	219,087	$	222,932
	Net income	$	137,901	$	150,566

4_PROPERTY_AND_EQUIPMENT

4. PROPERTY AND EQUIPMENT	9 Months Ended
4. PROPERTY AND EQUIPMENT	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Note 4 - PROPERTY AND EQUIPMENT	'
	Property and equipment consisted of the following at September 30, 2013 and December 31, 2012:

		September 30,			December 31,
		2013			2012
	Machinery & equipment	$	1,101,762		$	907,740
	Computer equipment		46,287			32,986
	Office furniture		38,783			6,684
	Leasehold improvements		486,691			169,572
			1,673,523			1,116,982

	Accumulated depreciation		(976,496	)		(941,726	)
	Property and equipment, net	$	697,027		$	175,256

	Depreciation expense for the three and nine months ended September 30, 2013 amounted to $26,618 and $64,320, respectively. Depreciation expense for the three and nine months ended September 30, 2012 amounted to $10,101 and $35,541, respectively.

5_ACCRUED_SETTLEMENT

5. ACCRUED SETTLEMENT	9 Months Ended
	Sep. 30, 2013
Accrued Settlement	'
Note 5 - ACCRUED SETTLEMENT	'
	CAMOFI Master LDC

	CAMOFI Master LDC (“CAMOFI”) and CAMZHN Master LDC (“CAMZHN” and together with “CAMOFI”, the “CAMOFI Parties”) filed a complaint on October 13, 2011. In their complaint, the CAMOFI Parties argued that as a result of the transactions between the Company and JMJ Financial (“JMJ”), Gemini Master Fund, Ltd., and Midsummer Investment, Ltd., respectively, the exercise prices in the warrants and debentures previously issued to the CAMOFI Parties should have been reduced. Consequently, the CAMOFI Parties argued that they have been denied the right to receive, in total, at least 130,795,594 shares of the Company's common stock, which has allegedly resulted in losses to the CAMOFI Parties of at least $22,265,951.

	On January 11, 2013, the Company entered into a settlement agreement and mutual release (the “Settlement Agreement”) with the CAMOFI Parties. Pursuant to the Settlement Agreement, and as approved by the Court, the Company agreed, in exchange for dismissal of the pending lawsuit with prejudice and a mutual release of all claims, (including termination of all outstanding warrants and debentures of the Company held by the CAMOFI Parties), to do the following on the business day following approval by the Court of the settlement or on another day agreed upon by the parties to the settlement (the “Closing”):

		·	issue to the CAMOFI Parties an aggregate number of shares of the Company’s common stock calculated by dividing $4,500,000 by the least of (a) $0.056 per share, (b) the closing price of the common stock on the day immediately prior to the execution of the Settlement Agreement or (c) the volume weighted average price (“VWAP”) reported by Bloomberg LP for the 30-day period before such shares of common stock are received (the “Closing Shares”), of which 78.9% of such Closing Shares will be issued to CAMOFI and 21.1% to CAMZHN;

		·	issue (a) to CAMOFI an Amortizing Senior Secured Convertible Debenture in the principal amount of $4,732,781 and (b) to CAMZHN an Amortizing Senior Secured Convertible Debenture in the original principal amount of $1,267,219 (together, the “Debentures”);

		·	pay $1,577,594 to CAMOFI and $422,406 to CAMZHN; and

		·	reimburse the CAMOFI Parties for certain of the CAMOFI Parties’ costs incurred in connection with the pending lawsuit.

	The Debentures accrue interest at the rate of 8% per annum and mature on June 30, 2015. The Company may pre-pay all or a portion of the amounts due under the Debentures prior to maturity without penalty. Both of the Debentures are convertible at the option of the holder at a price per share of the Company’s common stock equal to 80% of the VWAP of the ten consecutive trading days prior to the conversion date (the “Conversion Price”). The Company must make quarterly payments under the Debentures on the last day of each calendar quarter commencing on March 31, 2013 in the amount of $600,000. The quarterly payments may, at the option of the Company and subject to the satisfaction of certain conditions, be paid in shares of the Company’s common stock. In such case, the conversion price for such payment will be based on the lesser of (i) the Conversion Price or (ii) 80% of the average of the 10 closing prices immediately prior to the date the quarterly payment is due. To secure its obligations under the Debentures, the Company will grant a security interest in substantially all of the Company’s assets, including its intellectual property, to the CAMOFI Parties. The Debentures contain certain covenants customary for debt instruments of its kind. As of September 30, 2013, the Company was in compliance with the covenants in the Debentures.

	On January 22, 2013, the Supreme Court of New York approved the issuance of the shares of the Company’s common stock that the Company agreed to issue to the CAMOFI Parties pursuant to the Settlement Agreement that was entered into on January 11, 2013. Accordingly, on January 23, 2013, the Company issued an aggregate of 80,357,143 shares to the CAMOFI Parties as required by the Settlement Agreement and in reliance upon the exemption from registration under Section 3(a)(10) of the Securities Act of 1933, as amended.

	Pursuant to the Settlement Agreement, the Company and the CAMOFI Parties entered into a registration rights agreement, which required the Company to register the shares of the Company’s common stock into which the Debentures are convertible with the Securities and Exchange Commission. The registration rights agreement provides that the registration statement will be filed within thirty days of the execution of the registration rights agreement and that it becomes effective within sixty days or within 90 days in the event of a full review by the Securities and Exchange Commission. If the Company fails to file the registration statement within the required time period, then the Company will pay, in cash, partial liquidated damages equal to 1.5% of the original principal amount of the Debentures. If the Company fails to pay any partial liquidated damages with seven days after the date payable, the Company will pay interest thereon at a rate of 18% per annum. The Company filed the registration statement on February 21, 2013 which was within the required time period, and the registration statement was declared effective March 19, 2013.

	At September 30, 2013 and December 31, 2012, accrued settlements related to the above agreements were $0 and $6,807,891, respectively.

6_CONVERTIBLE_PROMISSORY_NOTES

6. CONVERTIBLE PROMISSORY NOTES	9 Months Ended
	Sep. 30, 2013
Convertible Promissory Notes	'
Note 6 - CONVERTIBLE PROMISSORY NOTES	'
	2010 JMJ Convertible Promissory Notes

	During 2010, the Company issued three convertible promissory notes to JMJ, for a total of $3,000,000 available to receive in cash, for a principal sum of $3,850,000, which included an original issue discount of $850,000. The notes bear a one-time interest charge of 10% on the principal sum. The holder may at its election convert all or part of these notes into shares of the Company’s common stock at the conversion rate of the lesser of: (a) $0.10 per share, or (b) 85% of the average of the three lowest trade prices in the 20 trading days prior to the conversion. During 2010, the Company received the entire $3,000,000 on these notes. Of the $3,850,000 borrowed, the Company converted $3,562,215 into 76,465,706 shares of common stock during 2010.

	On May 31, 2013, the Company and JMJ entered into a Mutual Release and Waiver Agreement (“Waiver Agreement”) whereby JMJ released and discharged the Company from any and all claims connected with the JMJ convertible promissory notes. At the date of the Waiver Agreement, the convertible promissory note balance was $287,785 and the conversion option liability associated with the convertible promissory note had a fair value of $150,802. The value was determined using the Black-Scholes model with the following assumptions: (1) dividend yield of 0%; (2) expected volatility of 80%, (3) risk-free interest rate of 0.04%, and (4) expected life of 0.001 years. The Company recorded a gain on extinguishment of debt of $438,587.

	Interest expense from amortization of debt discounts related to the JMJ convertible promissory notes for the three and nine months ended September 30, 2013 was $0 and $30,935, respectively. Interest expense from amortization of debt discounts related to the JMJ convertible promissory notes for the three and nine months ended September 30, 2012 was $31,976 and $95,231, respectively.

	As of September 30, 2013 and December 31, 2012 the outstanding balance of the JMJ Convertible Promissory Notes was $0, and $287,785, respectively.

	Senior Secured Convertible Debentures

	The Debentures issued to the CAMOFI Parties pursuant to the Settlement Agreement have an effective date of December 31, 2012, accrue interest at the rate of 8% per annum and mature on June 30, 2015. The Company may pre-pay all or a portion of the amounts due under the Debentures prior to maturity without penalty. Both of the Debentures are convertible at the option of the holder at a price per share of common stock equal to 80% of VWAP of the ten consecutive trading days prior to the conversion date. The Company must make quarterly payments under the Debentures on the last day of each calendar quarter commencing on March 31, 2013 in the amount of $600,000. The quarterly payments may, at the option of the Company and subject to the satisfaction of certain conditions, be paid in shares of Common Stock. In such case, the conversion price for such payment will be based on the lesser of (i) the conversion price as defined in the agreement or (ii) 80% of the average of the 10 closing prices immediately prior to the date the quarterly payment is due. The payment due on March 31, 2013, was paid in cash on April 1, 2013. To secure its obligations under the Debentures, the Company granted a security interest in substantially all of the Company’s assets, including its intellectual property, to the CAMOFI Parties. The Debentures contain certain covenants customary for debt instruments of its kind. At September 30, 2013, the Company was in compliance with the covenants of the Debentures.

	The Company received two conversion notices dated May 30, 2013 and May 31, 2013 for $600,000 each. The Company issued 10,135,287 shares of its common stock for the May 30, 2013 conversion notice which was consideration for the June 2013 installment and issued 9,790,976 shares of its common stock for the May 31, 2013 conversion notice, which was consideration for the September 30, 2013 installment.

	As of September 30, 2013, the redemption dates and amounts are as follows:

	Redemption
	Date		Amount
		12/31/13	$	600,000
		3/31/14		600,000
		6/30/14		600,000
		9/30/14		600,000
		12/31/14		600,000
		3/31/15		600,000
		6/30/15		600,000
			$	4,200,000

	The Company determined that the Debentures contained an embedded beneficial conversion feature as the Debentures are convertible at a price per share of common stock equal to 80% of VWAP of the ten consecutive trading days prior to the conversion date. The embedded beneficial conversion feature was modeled using a binomial lattice model, and the calculated value at September 30, 2013 and December 31, 2012 was $703,000 and $845,000, respectively. The Company recorded a loss of $2,000 and gain of $142,000 for the change in the fair value of the embedded conversion option liability for the three and nine months ended September 30, 2013, respectively.

	At September 30, 2013, the Debentures could be converted into 79,750,873 shares of common stock based on a conversion price of $0.0527. At September 30, 2013, the if-converted value exceeded the principal amount by approximately $1,486,000.

	The Company recorded a debt discount of $725,000, which will be amortized over the life of the note using the effective interest rate of 16.35%. For the three and nine months ended September 30, 2013, the Company amortized $87,626 and $374,497 of the debt discount and recorded it as interest expense. The unamortized discount at September 30, 2013 and December 31, 2012 was $350,503 and $725,000, respectively. The Company recorded interest expense of $84,000 and $304,000 for the three and nine months ended September 30, 2013, respectively, based on the contractual interest rate.

7_SERIES_A1_REDEEMABLE_CONVERT

7. SERIES A-1 REDEEMABLE CONVERTIBLE PREFERRED STOCK	9 Months Ended
7. SERIES A-1 REDEEMABLE CONVERTIBLE PREFERRED STOCK	Sep. 30, 2013
Series A-1 Redeemable Convertible Preferred Stock	'
Note 7 - SERIES A-1 REDEEMABLE CONVERTIBLE PREFERRED STOCK	'
	On March 3, 2009, the Company entered into a $5 million credit facility with Volation Life Sciences Capital Partners, LLC (“Volation”), a life sciences fund. Under the terms of the agreement, the Company may draw down funds, as needed, from the investor through the issuance of Series A-1 redeemable convertible preferred stock, par value $.001, at a basis of 1 share of Series A-1 redeemable convertible preferred stock for every $10,000 invested. The preferred stock pays dividends, in kind of preferred stock, at an annual rate of 10%, matures in four years from the initial drawdown date, and is convertible into common stock at $0.75 per share at the option of the holder.

	However, in the event the closing price of the Company’s common stock during the 5 trading days following the notice to convert falls below 75% of the average of the closing bid price in the 5 trading days prior to the closing date, the investor may, at its option, and without penalty, decline to purchase the applicable put shares on the closing date.

	Modification of Series A-1 Convertible Redeemable Preferred Stock:

	On October 19, 2009, the Company entered into two letter agreements with Volation, pursuant to which (i) the Company reduced the conversion price of its existing outstanding Series A-1 redeemable convertible preferred stock issued to Volation to $0.10 per share resulting in 22,880,000 shares of common stock upon conversion, (ii) the Company issued Volation 2,500,000 shares of its common stock at $0.10 per share in payment of an outstanding commitment fee, and (iii) Volation waived the delinquency in non-payment of the $250,000 commitment fee required pursuant to the preferred stock purchase agreement between the Company and Volation. The commitment fee was paid during the year ended December 31, 2010 by reducing the proceeds paid by the Series A-1 Preferred Stock investors by the amount of the commitment fee.

	The Series A-1 redeemable convertible preferred stock has been classified within the mezzanine section between liabilities and equity in the consolidated balance sheets because it is considered conditionally redeemable. The embedded conversion option has been recorded as a derivative liability in the Company’s consolidated balance sheets, and changes in the fair value each reporting period are reported in adjustments to fair value of derivatives in the consolidated statements of operations.

	On April 25, 2013, the Company entered into a share exchange agreement with Volation to exchange 27,522,833 freely tradeable shares of the Company’s common stock for Volation’s 113 shares of Series A-1 redeemable convertible preferred stock and accrued dividends at a negotiated conversion price was $0.06. At the date of the exchange agreement, the Company had principal and accrued dividends outstanding of $1,651,370. The Company recorded a finance cost of $261,467 for the difference between the fair value of the shares exchanged and the $1,651,370.

	The following table summarizes the Series A-1 redeemable convertible preferred stock outstanding at September 30, 2013 and December 31, 2012:

		September 30,		December 31,
		2013		2012
	Principal due	$	–	$	1,130,165
	Accrued dividend		–		477,332
	Debt discount		–		(8,964	)
		$	–	$	1,598,533

	Non-current portion	$	–	$	1,598,533


	Aggregate liquidation value*	$	–	$	1,607,497

	* Represents the sum of principal due and accrued dividends.

	The dividends are accrued at a rate of 10% per annum, and the Company records the accrual as interest expense in its consolidated statements of operations in the period incurred. The Company recorded accrued dividends on the Series A-1 redeemable convertible preferred stock of $0 and $43,873 for the three and nine months ended September 30, 2013, respectively, and $34,826 and $100,409 for the three and nine months ended September 30, 2012, respectively, which was recorded as interest expense in the consolidated statements of operations.

	Conversion Option:

	The embedded conversion option was valued at $0 and $33 at September 30, 2013 and December 31, 2012, respectively, at fair value using the Black-Scholes model. The decrease in the fair value of the embedded conversion option liability of $0 and $33 for the three and nine months ended September 30, 2013, respectively, and $1,657 and $22,354 for the three and nine months ended September 30, 2012, respectively, was recorded through the statements of operations as an adjustment to fair value of derivatives.

	Interest expense from amortization of the debt discount and deferred costs for the three and nine months ended September 30, 2013 was $0 and $117,180, respectively. Interest expense from amortization of the debt discount and deferred costs for the three and nine months ended September 30, 2012 was $112,296 and $334,445, respectively.

8_SERIES_B_PREFERRED_STOCK

8. SERIES B PREFERRED STOCK	9 Months Ended
	Sep. 30, 2013
SeriesBPreferredStockAbstract	'
Note 8 - SERIES B PREFERRED STOCK	'
	On November 2, 2009 (“Series B Effective Date”), the Company entered into a preferred stock purchase agreement with Optimus Life Sciences Capital Partners, LLC (“Optimus”). Pursuant to the purchase agreement, the Company agreed to sell, and Optimus agreed to purchase, in one or more purchases from time to time at the Company’s sole discretion, (i) up to 1,000 shares of Series B preferred stock at a purchase price of $10,000 per share, for an aggregate purchase price of up to $10,000,000, and (ii) five-year warrants to purchase shares of the Company’s common stock with an aggregate exercise price equal to 135% of the purchase price paid by Optimus, at an exercise price per share as follows:

		·	On the 6th trading day following the Tranche Notice Date (as defined in the purchase agreement), the exercise price of the Optimus warrant shall be adjusted to equal the VWAP for the 5 trading days beginning on and including the Tranche Notice Date (as so adjusted, the “Adjusted Exercise Price”); and
		·	If the Adjusted Exercise Price results in additional warrant shares being issuable to the holder, such additional shares shall be delivered to the holder within one trading day following the adjustment date. If the Adjusted Exercise Price results in less warrant shares being issuable to the holder, the excess warrant shares shall be returned by the holder to the Company within one trading day following on the adjustment date.

	The Company agreed to pay to Optimus a commitment fee of $500,000, at the earlier of the closing of the first Tranche or the six month anniversary of the Series B Effective Date, payable at the Company’s election in cash or common stock valued at 90% of the volume weighted average price of the Company’s common stock on the 5 trading days preceding the payment date. The $500,000 commitment fee was outstanding and was recorded in accrued expenses in the Company’s consolidated balance sheet at December 31, 2009. During 2010, the Company issued 50 shares of Series B preferred stock as payment for the commitment fee.

	During 2010, the Company delivered tranche notices to Optimus for delivery of a total of 1,000 shares under the Series B preferred stock for funding in the amount of $10,000,000 ($9,485,000 in cash proceeds, $500,000 of commitment fee applied, and $15,000 in legal fees).

	During 2010, in connection with the funding, the Company issued 95,870,362 shares of its common stock upon exercise of the same number of warrants, which were granted simultaneously with the Company’s tranche notices. During 2010, the Company received secured promissory notes in the amount of $13,500,000 to settle the warrant exercise.

	Dividends

	Commencing on the date of the issuance of any shares of Series B preferred stock, holders of Series B preferred stock will be entitled to receive dividends on each outstanding share of Series B preferred stock, which will accrue in shares of Series B preferred stock at a rate equal to 10% per annum from the issuance date compounded annually. Accrued dividends will be payable upon redemption of the Series B preferred stock. Accrued dividends were $3,271,594 and $2,352,321 at September 30, 2013 and December 31, 2012, respectively.

	Redemption Rights

	Upon or after the fourth anniversary of the initial issuance date, the Company will have the right, at the Company’s option, to redeem all or a portion of the shares of the Series B preferred stock, at a price per share equal to 100% of the Series B liquidation value. The Series B preferred stock may be redeemed at the Company’s option, commencing 4 years from the issuance date at a price per share of (a) $10,000 per share plus accrued but unpaid dividends (the “Series B Liquidation Value”), or, at a price per share of : (x) 127% of the Series B Liquidation Value if redeemed on or after the first anniversary but prior to the second anniversary of the initial issuance date, (y) 118% of the Series B Liquidation Value if redeemed on or after the second anniversary but prior to the third anniversary of the initial issuance date, and (z) 109% of the Series B Liquidation Value if redeemed on or after the third anniversary but prior to the fourth anniversary of the initial issuance date.

	Liquidation Rights

	The Series B preferred stock shall, with respect to dividend, rights upon liquidation, winding-up or dissolution, rank: (i) senior to the Company’s common stock, and any other class or series of preferred stock of the Company, except the Series A-1 redeemable convertible preferred stock which shall rank senior in right of liquidation and pari passu with respect to dividends; and (ii) junior to all existing and future indebtedness of the Company.

	If the Company determines to liquidate, dissolve or wind-up its business, it must redeem the Series B preferred stock at the prices set forth above. Upon any liquidation, dissolution or winding up of the Company the holders of Series B preferred stock shall be first entitled to be paid out of the assets of the Company available for distribution to its stockholders an amount with respect to each share of Series B preferred stock equal to $10,000, plus any accrued and unpaid dividends.

	The Company has classified the Series B preferred stock in the equity section in its consolidated balance sheets.

	Related Secured Promissory Notes Receivable:

	In accordance with the terms of the Series B preferred stock agreement, Optimus issued to the Company a secured promissory note in consideration for exercising warrants under each tranche. The value of each secured promissory note equals the value of the warrants that Optimus received. Interest on the notes accrues at 2% per year, compounding annually if the interest remains unpaid at the end of each year. The notes are secured by freely tradable marketable securities belonging to Optimus. Each promissory note matures on the fourth anniversary of its issuance. As of September 30, 2013, Optimus has issued $13,500,000 in secured promissory notes.

	In the event the Company redeems all or a portion of any shares of Series B preferred stock held by Optimus, the Company will be permitted to offset the full amount of such proceeds against amounts outstanding under the promissory notes. Accordingly, the Company included the discounted value of the secured promissory notes as a separate component of stockholders’ deficit at September 30, 2013 and December 31, 2012.

	At September 30, 2013, the value of the secured promissory notes in the consolidated balance sheet was $13,246,062, net of discounts of $906,998 and accrued interest of $653,060, reflecting a face value of $13,500,000.

	At December 31, 2012, the value of the secured promissory notes in the consolidated balance sheet was $12,328,558, net of discounts of $1,641,001 and accrued interest of $469,559, reflecting a face value of $13,500,000.

	The Company determined that a 10% discount is appropriate, in order to consistently reflect the Company’s cost of borrowing under the terms of the underlying Series B preferred stock that permits offset. The Company recorded an initial discount on the promissory notes in the amount of $3,519,238 during the year ended December 31, 2010. The Company accretes interest at 10% over the respective four-year terms of the promissory notes.

	During the three and nine months ended September 30, 2013, the Company accreted interest on the promissory notes in the amount of $315,546 and $917,504, respectively, and during the three and nine months ended September 30, 2012, the Company accreted interest on the promissory notes in the amount of $286,132 and $834,491, respectively, which was recorded in accumulated deficit during the periods then ended. The Company recorded dividends on its Series B preferred stock during the three and nine months ended September 30, 2013 of $316,154 and $919,273, respectively and $286,684 and $836,100 during the three and nine months ended September 30, 2012, respectively. The accrued dividends are offset by the accretion of the note receivable discount.

	As of September 30, 2013 and December 31, 2012, 1,000 shares of Series B preferred stock were outstanding. As of September 30, 2013, the Company has drawn the entire commitment of $10,000,000.

	Below is a table showing the net settlement amount at September 30, 2013 and December 31, 2012:

			September 30,		December 31,
			2013		2012

	Face Value of Preferred Stock		$	10,000,000	$	10,000,000
	Accrued Dividends		$	3,271,594	$	2,352,321
	Redemption factor			109%		118%
	Conversion price		$	14,466,037	$	14,575,739
	Receivable		$	14,153,057	$	13,969,559
	Net settlement upon conversion		$	312,980	$	606,180

9_SERIES_C_PREFERRED_STOCK

9. SERIES C PREFERRED STOCK	9 Months Ended
9. SERIES C PREFERRED STOCK	Sep. 30, 2013
SeriesCPreferredStockAbstract	'
Note 9 - SERIES C PREFERRED STOCK	'
	On December 30, 2010 (the “Series C Effective Date”), the Company entered into a securities purchase agreement (the “Series C Purchase Agreement”) with Socius CG II, Ltd., a Bermuda exempted company (“Socius”). Pursuant to the Series C Purchase Agreement:

		·	The Company agreed to sell, and Socius agreed to purchase, in one or more purchases from time to time (each such purchase, a “Series C Tranche”) in the Company’s sole discretion (subject to the conditions set forth therein), (i) up to 2,500 shares of Series C preferred stock at a purchase price of $10,000 per share, for an aggregate purchase price of up to $25,000,000, and (ii) a two-year warrant (the “Socius Warrant”) obligating Socius to purchase shares of the Company’s common stock with an aggregate exercise price equal to 20% of the purchase price paid by Socius for the Series C preferred stock sold in each Series C Tranche, at an exercise price per share equal to the closing bid price of the Company’s common stock on the date the Company provides notice of such Series C Tranche (the “Series C Tranche Notice”). On each date that the Company delivers a Series C Tranche Notice to Socius, Socius shall also become obligated, pursuant to a right automatically vesting on such Series C Tranche Notice date, to purchase that number of shares of common stock (such shares of common stock, the “Additional Investment Shares”) equal in dollar amount to 100% of the Series C Tranche amount set forth in the Series C Tranche Notice at a price per share equal to the closing bid price of the Company’s common stock on the Series C Tranche Notice date.

		·	The Series C Purchase Agreement requires that, when the Company requests Socius to purchase a tranche of Series C preferred stock, the mandatory purchase by Socius of the related Additional Investment Shares must occur no later than sixty (60) calendar days following the Series C Tranche Notice date.

		·	The Socius Warrant was issued to Socius on December 30, 2010 (the “Closing Date”) simultaneous with entering into the Series C Purchase Agreement. The Socius Warrant was issued with an initial exercise price per warrant of $0.16 per share and for a total of up to 31,250,000 shares, subject to adjustment as described therein. On January 10, 2011, Socius and the Company entered into a letter agreement in which the parties agreed that, following arms-length negotiations and notwithstanding anything to the contrary in the Socius Warrant, that the initial number of shares issuable under the Socius Warrant, subject to the adjustment mechanism set forth therein, was equal to 30,000,000.

		·	As required by the Series C Purchase Agreement, the Socius Warrant must be exercised for such number of shares of common stock equal in amount to 20% of the cumulative purchase price paid by Socius for the Series C preferred stock. The maximum amount of Series C preferred stock that Socius may become obligated to purchase under all Series C Tranches is $25,000,000. Assuming the maximum drawdown of $25,000,000 by the Company under the Series C Purchase Agreement, Socius would be required to exercise the Socius Warrant to purchase 20% of this total dollar amount, or $5,000,000 worth of the Company’s common stock.

		·	The letter agreement entered into on January 10, 2011, modified the Socius Warrant only with respect to the initial number of underlying shares and expressly provides that, except as so modified, the Socius Warrant shall remain unchanged and shall continue in full force and effect.

		·	At the initial closing pursuant to the Series C Purchase Agreement, which occurred on the Closing Date, (i) Socius purchased 400 shares of Series C preferred stock and the Company received gross proceeds of $4,000,000. (ii) the Company delivered to Socius an initial warrant (the “Initial Warrant”) obligating Socius to purchase shares of its common stock with an aggregate purchase price of $800,000, which shall be automatically exercisable on the date a registration statement for the resale of all shares of common stock issuable pursuant to the Series C Purchase Agreement is declared effective (which effectiveness occurred on April 13, 2011), with delivery of such shares made to Socius on the trading day immediately following the exercise date at a per-share price equal to the closing bid price of the Company’s common stock on the delivery date, and (iii) Socius became obligated to purchase additional shares of common stock equal in aggregate dollar amount to $4,000,000 (such shares of common stock the “Initial Investment Shares”), with delivery of such shares made to Socius on the trading day immediately following the date the registration statement is declared effective at a price per share equal to the closing bid price of the Company’s common stock on the delivery date.

		·	The Company agreed to pay to Socius a commitment fee of $1,250,000 (the “Commitment Fee”), at the earlier of the closing of the first Series C Tranche or the six month anniversary of the Series C Effective Date. This Commitment Fee is payable solely at the Company’s election, in cash or in the alternative, in shares of common stock valued at 88% of the volume weighted average price of the Company’s common stock on the 5 trading days preceding the payment date. If the Company elects to pay the Commitment Fee in shares of its common stock, no cash payment would be due as the issuance of shares would satisfy the Commitment Fee obligation in full. The Company issued 7,562,008 shares of its common stock on September 30, 2011 as full payment of the commitment fee.

		·	The Company agreed to use its best efforts to file within 60 days of the Series C Effective Date, and cause to become effective as soon as possible thereafter, a registration statement with the Securities and Exchange Commission for the resale of all shares of common stock issuable pursuant to the Series C Purchase Agreement, including the shares of common stock underlying the Socius Warrant, shares of the common stock issuable upon exercise of the Initial Warrant, shares of common stock issuable as Initial Investment Shares, shares of common stock issuable as Additional Investment Shares, and shares of common stock issuable in payment of the Commitment Fee.

		·	In the event that Socius does not comply with its obligations under the Series C Purchase Agreement (including its obligations to exercise the Socius Warrant), the Series C Purchase Agreement provides that, in addition to being entitled to exercise all rights provided therein or granted by law, the Company would be entitled to seek specific performance by Socius under the Series C Purchase Agreement and the Socius Warrant.

	On December 30, 2010, in accordance with the Series C Purchase Agreement, the Company filed a certificate of designations for the Series C preferred stock with the Secretary of State of the State of Delaware. As previously reported, pursuant to the certificate of designations, the Series C preferred stock shall, with respect to dividend, rights upon liquidation, winding-up or dissolution, rank: (i) senior to the Company’s common stock, and any other class or series of preferred stock of the Company (collectively, with any warrants, rights, calls or options exercisable for or convertible into such preferred stock, the “Junior Securities”); provided, however, the Series A-1 redeemable convertible preferred stock and Series B preferred stock (together, the “Senior Securities”) shall rank senior in right of redemption, liquidation, and dividends; and (ii) junior to all existing and future indebtedness of the Company.

	As of September 30, 2013 and December 31, 2012, the Company has drawn $17,500,000 of the $25,000,000 commitment, respectively.

	Dividends

	Commencing on the date of the issuance of any shares of Series C preferred stock, holders of Series C preferred stock will be entitled to receive dividends on each outstanding share of Series C preferred stock, which will accrue in shares of Series C preferred stock at a rate equal to 6% per annum from the issuance date compounded annually. Accrued dividends will be payable upon redemption of the Series C preferred stock. Accrued dividends were $2,164,813, and $1,325,333 at September 30, 2013 and December 31, 2012, respectively.

	Redemption Rights

	Upon or after the fourth anniversary of the initial issuance date, the Company will have the right, at the Company’s option, to redeem all or a portion of the shares of the Series C preferred stock, at a price per share equal to 100% of the Series C liquidation value. The Series C preferred stock may be redeemed at the Company’s option, commencing 4 years from the issuance date at a price per share of (a) $10,000 per share plus accrued but unpaid dividends (the “Series C Liquidation Value”), or, at a price per share of : (i) 136% of the Series C Liquidation Value if redeemed prior to the first anniversary of the initial issuance date, (ii) 127% of the Series C Liquidation Value if redeemed on or after the first anniversary but prior to the second anniversary of the initial issuance date, (iii) 118% of the Series C Liquidation Value if redeemed on or after the second anniversary but prior to the third anniversary of the initial issuance date, and (iv) 109% of the Series C Liquidation Value if redeemed on or after the third anniversary but prior to the fourth anniversary of the initial issuance date.

	Termination and Liquidation Rights

	If the Company determines to liquidate, dissolve or wind-up its business, it must redeem the Series C preferred stock at the prices set forth above. Upon any liquidation, dissolution or winding up of the Company, the holders of Series C preferred stock shall be first entitled to be paid out of the assets of the Company available for distribution to its stockholders an amount with respect to each share of Series C preferred stock equal to $10,000, plus any accrued and unpaid dividends.

	Related Secured Promissory Notes Receivable:

	As of September 30, 2013, Socius has issued $21,000,000 in notes receivable in accordance with the terms of the Series C Purchase Agreement.

	Interest on the notes accrues at 2% per year, compounding annually if the interest remains unpaid at the end of each year. The notes are secured by freely tradable marketable securities belonging to Socius. Each promissory note matures on the fourth anniversary of its issuance.

	In the event the Company redeems all or a portion of any shares of Series C preferred stock held by Socius, the Company will be permitted to offset the full amount of such proceeds against amounts outstanding under the promissory notes. Accordingly, the Company included the discounted value of the secured promissory notes as a separate component of stockholders’ deficit at September 30, 2013 and December 31, 2012.

	At September 30, 2013, the value of the secured promissory notes in the consolidated balance sheet was $20,153,376, net of discounts of $1,562,702 and accrued interest of $716,078, reflecting a face value of $21,000,000.

	At December 31, 2012, the value of the secured promissory notes in the consolidated balance sheet was $19,294,139, net of discounts of $2,135,527 and accrued interest of $429,666, reflecting a face value of $21,000,000.

	The Company determined that a 6% discount is appropriate, in order to consistently reflect the Company’s cost of borrowing under the terms of the underlying Series C preferred stock that permits offset. The Company recorded an initial discount on the promissory notes in the amount of $1,968,050 during the year ended December 31, 2011 and an additional $1,026,809 of debt discounts during the year ended December 31, 2012 related to the fifth, sixth and seventh tranche notice. The Company accretes interest at 6% over the respective four-year terms of the promissory notes.

	During the three and nine months ended September 30, 2013, the Company accreted interest on the promissory note in the amount of $295,494 and $859,238, respectively and during the three and nine months ended September 30, 2012, the Company accreted interest on the promissory note in the amount of $259,613 and $666,181, respectively, which was recorded in accumulated deficit during the periods then ended. The Company recorded dividends on its Series C preferred stock during the three and nine months ended September 30, 2013 of $287,203 and $839,480, respectively and recorded dividends of $252,319 and $651,615 during the three and nine months ended September 30, 2012, respectively. The accrued dividends are offset by the accretion of the note receivable discount.

	The Company has classified the Series C preferred stock in the equity section in its consolidated balance sheets. As of September 30, 2013 and December 31, 2012, 1,750 shares of Series C preferred stock were outstanding.

	Below is a table showing the net settlement amount at September 30, 2013 and December 31, 2012:

			September 30,			December 31,
			2013			2012

	Face Value of Preferred Stock		$	17,500,000		$	17,500,000
	Accrued Dividends		$	2,164,813		$	1,325,333
	Redemption factor			118%			118%
	Conversion price		$	23,204,479		$	22,213,893
Receivable		$	21,716,080		$	21,429,666
Net settlement upon conversion		$	1,488,399		$	784,227

10_WARRANT_SUMMARY

10. WARRANT SUMMARY	9 Months Ended
10. WARRANT SUMMARY	Sep. 30, 2013
Warrant Summary	'
Note 10 - WARRANT SUMMARY	'
	Warrant Activity

	A summary of warrant activity for the nine months ended September 30, 2013 is presented below:

								Weighted
						Weighted		Average		Aggregate
						Average		Remaining		Intrinsic
			Number of			Exercise		Contractual		Value
			Warrants			Price $		Life (in years)		(000) $
	Outstanding, December 31, 2012			21,757,421			0.18		1.88		–
	Granted			–			–
	Exercised			–			–
	Forfeited/Canceled			(13,927,538	)		0.13
	Outstanding, September 30, 2013			7,829,883			0.28		2.08
	Exercisable, September 30, 2013			7,829,883			0.28		2.08		–

	The aggregate intrinsic value in the table above is before applicable income taxes and is calculated based on the difference between the exercise price of the warrants and the quoted price of the Company’s common stock as of the reporting date.

	The following table summarizes information about warrants outstanding and exercisable at September 30, 2013:

		Warrants Outstanding and Exercisable
			Weighted		Weighted
			Average		Average
	Exercise	Number	Remaining		Exercise
	Price $	of Shares	Life (Years)		Price $
	.10 - .11	3,239,247	1.18		0.1
	.20 - .30	1,630,000	2.25		0.25
	.38 - .39	1,330,636	3.82		0.39
	.40 - .45	815,000	2.25		0.45
	0.7	815,000	2.25		0.7
		7,829,883

11_STOCKHOLDERS_EQUITY_TRANSAC

11. STOCKHOLDERS' EQUITY TRANSACTIONS	9 Months Ended
11. STOCKHOLDERS' EQUITY TRANSACTIONS	Sep. 30, 2013
Equity [Abstract]	'
Note 11 - STOCKHOLDERS' EQUITY TRANSACTIONS	'
	On September 19, 2012, the Company entered into a purchase agreement (the “Purchase Agreement”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”). Pursuant to the Purchase Agreement, the Company has the right to sell to Lincoln Park up to $35,000,000 in shares of its common stock. Upon signing the Purchase Agreement, Lincoln Park purchased 10,000,000 shares of the Company’s common stock for $800,000 as the initial purchase. In addition, the Company issued 8,750,000 shares of common stock to Lincoln Park as a commitment fee.

	Upon the satisfaction of the conditions set forth in the Purchase Agreement, including the registration statement for the resale of the shares issued thereunder being declared effective by the Securities and Exchange Commission (which effectiveness occurred on November 6, 2012), the Company has the right over a 36-month period to sell up to an additional $34.2 million worth of shares of its common stock to Lincoln Park, upon the terms set forth in the Purchase Agreement. Pursuant to the Purchase Agreement, the purchase price of such shares will be based on the prevailing market price of the Company’s common stock immediately preceding the time of sales, with the Company controlling the timing and amount of any future sales, if any, of common stock to Lincoln Park. There are no upper limits to the price Lincoln Park may pay to purchase the Company’s common stock. Lincoln Park shall not have the right or the obligation to purchase any shares of common stock on any business day that the closing price of the Company’s common stock is below a floor price as provided in the Purchase Agreement. The purchase price means, with respect to any regular purchase, the lower of: (i) the lowest sale price on the applicable purchase date and (ii) the arithmetic average of the three (3) lowest closing sale prices for the common stock during the ten (10) consecutive business days ending on the business day immediately preceding such purchase date (in each case, to be appropriately adjusted for any reorganization, recapitalization, non-cash dividend, stock split or other similar transaction that occurs on or after the date of this Purchase Agreement. However, the purchase price cannot be below $0.03.

	From January 1, 2013 to September 30, 2013, Lincoln Park purchased 237,607,759 shares of common stock for cash proceeds of $16,844,532.

	On January 23, 2013, the Company issued an aggregate of 80,357,143 shares to the CAMOFI Parties as required by the Settlement Agreement and in reliance upon the exemption from registration under Section 3(a)(10) of the Securities Act of 1933, as amended. On May 30, 2013 in connection with the settlement CAMOFI converted $600,000 in Debentures for 10,135,287 shares of common stock. On May 31, 2013 in connection with the settlement the CAMOFI converted $600,000 in Debentures for 9,790,976 shares of common stock.

	During the nine months ended September 30, 2013, the Company issued various board members 3,124,542 shares of common stock valued at $227,938 as compensation for board services.

	During the nine months ended September 30, 2013, the Company issued 6,857,144 shares of common stock valued at $1,044,426 as executive compensation.

	On April 23, 2013, the Company entered into a share exchange agreement with Volation to exchange 27,522,833 freely tradeable shares of the Company’s common stock for Volation’s 113 shares of Series A-1 redeemable convertible preferred stock and accrued dividends.

12_STOCKBASED_COMPENSATION

12. STOCK-BASED COMPENSATION	9 Months Ended
12. STOCK-BASED COMPENSATION	Sep. 30, 2013
Stock-Based Compensation	'
Note 12 - STOCK-BASED COMPENSATION	'
	Stock Plans

										Options/Shares
			Options/Shares				Options			Available
	Stock Plan		Issued				Outstanding			For Grant			Total Authorized
	2004 Stock Plan			2,492,000				70,000			1,215,104			2,800,000
	2004 Stock Plan II			1,301,161				1,071,161			–			1,301,161
	2005 Stock Plan			149,566,004				117,941,097			300,259,531			449,825,535
				153,359,165				119,082,258			301,474,635			453,926,696

	Stock Option Activity

	A summary of option activity for the nine months ended September 30, 2013 is presented below:

										Weighted
							Weighted			Average
							Average			Remaining			Aggregate
			Number of				Exercise			Contractual			Intrinsic
			Options				Price			Life (in years)			Value
	Outstanding, December 31, 2012			100,672,803			$	0.22			7.45
	Granted			22,100,000				0.08
	Exercised			–				–
	Forfeited/canceled			(3,690,545	)			0.19
	Outstanding, September 30, 2013			119,082,258				0.19			7.1			34,991

	Vested and expected to vest at September 30, 2013			116,378,746			$	0.19			7.05		$	34,991

	Exercisable, September 30, 2013			98,286,015			$	0.21			6.64		$	34,991

	The aggregate intrinsic value in the table above is before applicable income taxes and is calculated based on the difference between the exercise price of the options and the quoted price of the Company’s common stock as of the reporting date.

	The following table summarizes information about stock options outstanding and exercisable at September 30, 2013.

				Options Outstanding					Options Exercisable
						Weighted		Weighted			Weighted	Weighted
						Average		Average			Average	Average
		Exercise		Number		Exercise		Remaining	Number		Exercise	Remaining
		Price		of Shares		Price		Life (Years)	of Shares		Price	Life (Years)
	$	0.05 - 0.058		2,570,000	$	0.06		9.03	2,570,000	$	0.06	9.03
		0.08 - 0.09		32,892,647		0.08		8.42	15,434,121		0.09	7.17
		0.10 - 0.157		40,258,102		0.13		6.92	39,587,052		0.13	6.9
		0.185 - 0.21		26,267,499		0.19		6.99	24,600,832		0.19	6.93
		0.25 - 0.45		11,071,161		0.36		7.06	10,071,161		0.36	6.99
		0.85		5,417,849		0.85		0.65	5,417,849		0.85	0.65
	$	1.35 - 2.48		605,000	$	2.02		2.12	605,000	$	2.02	2.12
				119,082,258					98,286,015

	The assumptions used in calculating the fair value of options granted using the Black-Scholes option- pricing model for options granted during the nine months ended September 30, 2013 and 2012 are as follows:

			September 30,		September 30,
			2013		2012
	Risk-free interest rate		0.76 - 1.91%		1.04%
	Expected life of the options		5.00 - 6.50 years		6.26 years
	Expected volatility		160%		160%
	Expected dividend yield		0%		0%
	Expected forfeitures		13%		13%

	The weighted average grant-date fair value for the options granted during the nine months ended September 30, 2013 and 2012 was $0.08 and $0.10, respectively.

	Stock-based compensation expense to employees for the three and nine months ended September 30, 2013, was $856,646 and $2,650,530, respectively. Stock-based compensation expense to employees for the three and nine months ended September 30, 2012, was $798,746 and $2,896,236, respectively. The compensation expense related to the unvested options as of September 30, 2013, was $1,516,536, which will be recognized over the weighted average period of 8.05 years.

13_COMMITMENTS_AND_CONTINGENCI

13. COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Note 13 - COMMITMENTS AND CONTINGENCIES	'

	Loss Contingency Accrual

	The loss contingency accrual is comprised of the following at September 30, 2013 and December 31, 2012:

		September 30,		December 31,
		2013		2012
	SEC Civil Action	$	4,086,619	$	3,500,000
	Warrant Holder Claim		3,208,500		2,506,500
	Debenture Settlement		233,777		170,287
	Total	$	7,528,896	$	6,176,787

	Securities and Exchange Commission – Civil Action

	In May 2012, the Company was named as a defendant in a civil action brought by the Securities and Exchange Commission related to transactions involving the sale and issuance of the Company’s securities. The Securities and Exchange Commission alleges that Company violated Section 5(a) and 5(c) of the Securities Act of 1933, as amended, because certain sales of shares to outside organizations, completed in late 2008 and early 2009 under the Company’s former management, resulted in $3.5 million in proceeds to the Company, were neither registered under the Securities act nor subject to an exemption from registration under Section 3(a)(10) of the Securities Act of 1933, as amended. In addition, the Company is alleged to have violated Section 13(a) of the Exchange Act because the Company did not disclose the sale and issuance of the shares to the Securities and Exchange Commission on a timely basis. The Company has accrued approximately $4.1 million to “loss contingency accrual” in the consolidated balance sheet.

	Warrant Holder Claim

	The Company received a copy of Gary D. Aronson’s Creditor’s Claim (the “Claim”) in the amount of $27,909,706, dated July 13, 2011, against the Estate of William Caldwell (“Decedent”), who at the time of his death was the Chief Executive Officer and Chairman of the Board of Directors of the Company. The Claim states that Decedent’s liability arises under a cause of action that the Claimant intends to file in Federal court against the Company for violations of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), including Section 10(b) of the Exchange Act and the rules promulgated thereunder.

	In the Claim, the Claimant alleges that in September 2005, he entered into a Settlement Agreement with the Company pursuant to which he received a warrant to purchase shares of the Company’s Common Stock. In the Claim, the Claimant makes several allegations against the Company including that in reliance on misinformation provided to him by the Decedent he exercised his warrant to purchase the Company’s Common Stock at an inflated price and received fewer shares than he was owed by the Company under the terms of his warrant, that the Company breached the Claimant’s warrant by not timely issuing stock after the warrant was exercised, and that the Company failed to provide proper notice of certain events that allegedly triggered the Claimant’s purported rights to additional shares under the warrant. Claimant previously had brought an action against the Company, in October 2007, with respect to a dispute over the interpretation of the warrant but dismissed that action without prejudice the day before trial was to begin.

	On August 23, 2011, Gary Aronson filed suit in federal court in Massachusetts against Advanced Cell Technology, Inc. and Wilmington Trust, N.A., as Special Administrator of the Estate of Decedent William Mackay Caldwell. The suit reasserts allegations made in the Claim. On August 25, 2011, John S. Gorton filed a substantially similar lawsuit. Aronson and Gorton then filed substantially similar First Amended Complaints.

	The Company and Decedent moved to dismiss Aronson’s and Gorton’s First Amended Complaints. On July 16, 2012, a United States Magistrate Judge issued a report and recommendation concerning the Company’s and Decedent’s motions to dismiss. The district court adopted the report and recommendation, dismissing all claims, including those asserting material misrepresentations in violation of the Exchange Act, except for one breach-of-contract claim against the Company concerning a warrant allegedly issued to William Woodward in breach of the warrants issued to Aronson and Gorton. Aronson and Gorton filed motions for leave to file Second Amended Complaints on October 23, 2012 and October 25, 2012. The Company did not oppose the motions. The Second Amended Complaints, deemed filed as of November 9 and 12, 2012, reasserted the claim for breach of contract with respect to the Woodward warrant, as well as new breach-of-contract claims against the Company related to a warrant allegedly issued to Deron Colby, an alleged extension of the exercise periods for stock warrants issued to Andwell, LLC and Nancy Burrows, and alleged stock sales in 2008 that are the subject of a matter pending in the United States District Court for the Middle District of Florida, S.E.C. v. Lefkowitz. The Second Amended Complaints asserted no claims against the Decedent. The Company moved to dismiss the second, third, and fourth counts of the Second Amended Complaints on November 30, 2012. A United States Magistrate Judge issued a report and recommendation concerning the motion to dismiss. The district court adopted the report and recommendation, denying the motions to dismiss as to the second and third counts of the Second Amended Complaints, and granting the motion to dismiss the fourth count with leave to amend. On September 25 and 26, 2013, Aronson and Gorton filed their Third Amended Complaints. On October 15, 2013, the Company answered Aronson’s Third Amended Complaint and moved to dismiss Gorton’s Third Amended Complaint for lack of subject-matter jurisdiction.

	Pursuant to the employment agreement between the Company and the Decedent, the Company has to indemnify and hold Decedent harmless from costs, expenses or liability arising out of or relating to any acts or decisions made by Decedent in the course of his employment to the same extent that the Company indemnifies and holds harmless other officers and directors of the company in accordance with the Company’s established policies. Our directors and officers are indemnified by our bylaws against amounts actually and necessarily incurred by them in connection with the defense of any action, suit or proceeding in which they are a party by reason of being or having been directors or officers of the Company. Our certificate of incorporation provides that none of our directors or officers shall be personally liable for damages for breach of any fiduciary duty as a director or officer involving any act or omission of any such director or officer. Insofar as indemnification for liabilities arising under the Securities Act of 1933, as amended, may be permitted to such directors, officers and controlling persons pursuant to the foregoing

	The Company determined that an accrual was necessary at September 30, 2013, which is included in the “loss contingency accrual” amount on the consolidated balance sheets.

	Debenture Settlement

	The Company continues to negotiate with the remaining holders of convertible promissory notes and warrants that were issued between 2005 and 2010. The Company anticipates that the number of common shares to be issued will be approximately 3.3 million, based on the settlements that have already been finalized as of September 30, 2013. The Company determined that an accrual of approximately $234,000 was appropriate at September 30, 2013, which is included in the “loss contingency accrual” amount on the consolidated balance sheets.

	Employment Contracts

	The Company has entered into employment contracts with certain executives and research personnel. The contracts provide for salaries, bonuses and stock option grants, along with other employee, and post-employment benefits.

	Agreements

	On May 4, 2012, the Company entered into an exclusive license agreement with StemLifeLine, Inc. in which the Company obtained exclusive rights, with the right to sublicense, for commercial use of certain human stem cell lines that were created by StemLifeLine using the Company’s single blastomere technology – i.e., without destruction of any embryos. These lines are intended to be used in the Company’s manufacture of cell therapy products. The Company paid a single one-time fee of $65,000 to StemLifeLine for the exclusive license, and will not owe any further fees or royalties under the exclusive license. In addition to the exclusive license, the Company also obtained a non-exclusive license to distribute other human embryonic stem cell lines made by StemLifeLine, Inc. through stem cell banks, such as in collaboration with Roslin Cells Inc. with whom the Company had a preexisting hES cell banking agreement. Under the terms of the non-exclusive license relating to cell bank distribution, the Company will pay the first $200,000 in revenue that the Company receives from the cell bank, and 20% of any such revenue thereafter.

14_SUBSEQUENT_EVENTS

14. SUBSEQUENT EVENTS	9 Months Ended
14. SUBSEQUENT EVENTS	Sep. 30, 2013
Notes to Financial Statements	'
Note 14 - SUBSEQUENT EVENTS	'
Note 14 - SUBSEQUENT EVENTS	On October 22, 2013, the Company held its annual meeting of the stockholders. During the meeting, the stockholders approved an Certificate of Amendment to the Certificate of Incorporation, which provides for an increase in the authorized number of shares of the Company’s common stock , par value $0.001 per share, from 2,750,000 to 3,750,000. The Certificate of Amendment became effective upon its filing with the Secretary of State of the State of Delaware on October 24, 2013.

2_SUMMARY_OF_SIGNIFICANT_ACCOU1

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2013

Accounting Policies [Abstract]

Basis of Presentation

Principles of Consolidation

Segment Reporting

Segment Reporting — ASC 280, “Segment Reporting” requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the company for making operating decisions and assessing performance. The Company determined it has one operating segment. Disaggregation of the Company’s operating results is impracticable, because the Company’s research and development activities and its assets overlap, and management reviews its business as a single operating segment. Thus, discrete financial information is not available by more than one operating segment.

Use of Estimates

Cash and Cash Equivalents

Grant Received

Grants Receivable

Property and Equipment

The Company provides for depreciation over the assets’ estimated useful lives as follows:

Machinery & equipment

4 years

Computer equipment

3 years

Office furniture

4 years

Leasehold improvements

Lesser of lease life or economic life

Patents

Equity Method Investment

Deferred Costs

Deferred Costs — Consist of the following:

(c) Payments made to financial institutions and consulting firms in order to provide financing related services. These costs are being amortized over the terms of the related agreements.

Long-Lived Assets

Fair Value Measurements

Level 1 inputs to the valuation methodology are quoted prices for identical assets or liabilities in active markets.

Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The Company uses Level 3 inputs for its valuation methodology for the fair value of the embedded conversion options associated with the senior secured convertible debentures.

At September 30, 2013, the Company identified the following assets and liabilities that are required to be presented on the balance sheet at fair value:

Fair Value

Fair Value Measurements at

As of

30-Sep-13

Description

30-Sep-13

Using Fair Value Hierarchy

Level 1

Level 2

Level 3

Warrant and option derivative liabilities

357,875

–

357,875

–

Embedded conversion option liabilities

703,000

–

703,000

Total

1,060,875

–

357,875

703,000

The following table reconciles the change in fair value for measurements categorized within Level 3 of the fair value hierarchy:

Embedded

Conversion

Option

Liabilities

Balance at December 31, 2012

845,000

Total (gains) or losses for the period included in earnings

(142,000

)

Balance at September 30, 2013

703,000

Gains and losses included in earnings for the nine months ended September 30, 2013 are reported as follows:

Adjustment to

Fair Value of

Derivatives

Total gain included in earnings

142,000

The following table provides quantitative information about measurements categorized within Level 3 of the fair value hierarchy:

Fair Value at

September 30,

Valuation

Description

2013

Technique

Unobservable Input

Value

Embedded conversion option liability

703,000

Binomial Lattice Model

Expected volatility of the Company's common stock

71%

Discount for illiquidity of large blocks of the Company's common stock

5.7% to 100%

Discount rate for contractual debt principal and interest payments

20.00%

The Company did not identify any non-recurring assets and liabilities that were recorded at fair value during the periods presented.

Revenue Recognition and Deferred Revenue

Research and Development Costs

Share-Based Compensation

Income Taxes

Applicable interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statements of operations.

Net Loss Per Share

As of September 30, 2013 and 2012, the following potential dilutive shares were excluded from the shares used to calculate diluted earnings per share as their inclusion would be anti-dilutive.

September 30,

2013

2012

Options, exercisable

98,286,015

74,093,057

Warrants

7,829,883

21,757,421

Convertible shares, notes

79,750,873

4,232,132

Convertible shares, preferred stock

–

1,506,887

185,866,771

101,589,497

Concentrations and Other Risks

Three Months Ended

Nine Months Ended

September 30,

2013

2012

2013

2012

International Stem Cell Corporation

18%

30%

51%

CHA Biotech and SCRMI

82%

48%

53%

29%

Lifeline

24%

14%

Embryone Sciences

18%

10%

11%

*License revenue earned during the period was less than 10% of total license revenue.

Reclassifications

For the Three Months Ended September 30, 2012

As Previously

Net

Reclassified

Reported

Reclass

Amount

Research & Development

2,808,300

(445,202

)

2,363,098

General & Administrative

2,249,818

445,202

2,695,020

For the Nine Months Ended September 30, 2012

As Previously

Net

Reclassified

Reported

Reclass

Amount

Research & Development

7,316,940

(1,112,794

)

6,204,146

General & Administrative

7,881,294

1,112,794

8,994,088

Recent Accounting Pronouncements

2_SUMMARY_OF_SIGNIFICANT_ACCOU2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	9 Months Ended
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Sep. 30, 2013
Accounting Policies [Abstract]	'
Estimated useful lives	'
	Machinery & equipment	4 years
	Computer equipment	3 years
	Office furniture	4 years
	Leasehold improvements	Lesser of lease life or economic life
Fair value assets and liabilities	'
		Fair Value				Fair Value Measurements at
		As of				30-Sep-13
	Description	30-Sep-13				Using Fair Value Hierarchy
						Level 1			Level 2		Level 3
	Warrant and option derivative liabilities	$	357,875			$	–		$	357,875	$	–
	Embedded conversion option liabilities		703,000				–			–		703,000
	Total	$	1,060,875			$	–		$	357,875	$	703,000
Fair value for measurements Level 3	'
		Embedded
		Conversion
		Option
		Liabilities
	Balance at December 31, 2012	$	845,000
	Total (gains) or losses for the period included in earnings		(142,000	)
	Balance at September 30, 2013	$	703,000
Gains and losses included in earnings	'
		Adjustment to
		Fair Value of
		Derivatives
	Total gain included in earnings	$	142,000
Quantitative information within Level 3 of the fair value hierarchy	'
		Fair Value at
		September 30,		Valuation
	Description	2013		Technique		Unobservable Input		Value
	Embedded conversion option liability	703,000		Binomial Lattice Model		Expected volatility of the Company's common stock		71%

						Discount for illiquidity of large blocks of the Company's common stock		5.7% to 100%

						Discount rate for contractual debt principal and interest payments		20.00%
Potentially dilutive shares	'
		September 30,
		2013				2012
	Options, exercisable		98,286,015				74,093,057
	Warrants		7,829,883				21,757,421
	Convertible shares, notes		79,750,873				4,232,132
	Convertible shares, preferred stock		–				1,506,887
			185,866,771				101,589,497
Customer concentration	'
		Three Months Ended			Nine Months Ended
		September 30,			September 30,
		2013	2012		2013	2012
	International Stem Cell Corporation	*	18%		30%	51%
	CHA Biotech and SCRMI	82%	48%		53%	29%
	Lifeline	*	24%		*	14%
	Embryone Sciences	18%	10%		11%	*
Reclassifications	'

	For the Three Months Ended September 30, 2012

		As Previously				Net			Reclassified
		Reported				Reclass			Amount

	Research & Development	$	2,808,300			$	(445,202	)	$	2,363,098
	General & Administrative	$	2,249,818			$	445,202		$	2,695,020

	For the Nine Months Ended September 30, 2012

		As Previously				Net			Reclassified
		Reported				Reclass			Amount

	Research & Development	$	7,316,940			$	(1,112,794	)	$	6,204,146
	General & Administrative	$	7,881,294			$	1,112,794		$	8,994,088

3_INVESTMENT_IN_JOINT_VENTURE_

3. INVESTMENT IN JOINT VENTURE (Tables)	9 Months Ended
3. INVESTMENT IN JOINT VENTURE (Tables)	Sep. 30, 2013
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]	'
Summary of key financial data for the joint venture	'
		September 30,
		2013		2012
	Current assets	$	189,866	$	179,310
	Noncurrent assets	$	1,227,201	$	1,028,102
	Current liabilities	$	294,165	$	293,276
	Noncurrent liabilities	$	1,948,582	$	2,240,697
	Net revenue	$	219,087	$	222,932
	Net income	$	137,901	$	150,566

4_PROPERTY_AND_EQUIPMENT_Table

4. PROPERTY AND EQUIPMENT (Tables)	9 Months Ended
4. PROPERTY AND EQUIPMENT (Tables)	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Property and equipment	'
		September 30,			December 31,
		2013			2012
	Machinery & equipment	$	1,101,762		$	907,740
	Computer equipment		46,287			32,986
	Office furniture		38,783			6,684
	Leasehold improvements		486,691			169,572
			1,673,523			1,116,982

	Accumulated depreciation		(976,496	)		(941,726	)
	Property and equipment, net	$	697,027		$	175,256

6_CONVERTIBLE_PROMISSORY_NOTES1

6. CONVERTIBLE PROMISSORY NOTES (Tables)	9 Months Ended
6. CONVERTIBLE PROMISSORY NOTES (Tables)	Sep. 30, 2013
Convertible Promissory Notes Tables	'
Redemption dates and amounts	'
	Redemption
	Date		Amount
		12/31/13	$	600,000
		3/31/14		600,000
		6/30/14		600,000
		9/30/14		600,000
		12/31/14		600,000
		3/31/15		600,000
		6/30/15		600,000
			$	4,200,000

7_SERIES_A1_REDEEMABLE_CONVERT1

7. SERIES A-1 REDEEMABLE CONVERTIBLE PREFERRED STOCK (Tables)	9 Months Ended
	Sep. 30, 2013
Series A-1 Redeemable Convertible Preferred Stock	'
Series A-1 redeemable convertible preferred stock	'
		September 30,		December 31,
		2013		2012
	Principal due	$	–	$	1,130,165
	Accrued dividend		–		477,332
	Debt discount		–		(8,964	)
		$	–	$	1,598,533

	Non-current portion	$	–	$	1,598,533


	Aggregate liquidation value*	$	–	$	1,607,497

8_SERIES_B_PREFERRED_STOCK_Tab

8. SERIES B PREFERRED STOCK (Tables)	9 Months Ended
8. SERIES B PREFERRED STOCK (Tables)	Sep. 30, 2013
Series B Preferred Stock Tables	'
Settlement amount of Series B Preferred stock	'
		September 30,		December 31,
		2013		2012

	Face Value of Preferred Stock	$	10,000,000	$	10,000,000
	Accrued Dividends	$	3,271,594	$	2,352,321
	Redemption factor		109%		118%
	Conversion price	$	14,466,037	$	14,575,739
	Receivable	$	14,153,057	$	13,969,559
	Net settlement upon conversion	$	312,980	$	606,180

9_SERIES_C_PREFERRED_STOCK_Tab

9. SERIES C PREFERRED STOCK (Tables)	9 Months Ended
9. SERIES C PREFERRED STOCK (Tables)	Sep. 30, 2013
Series C Preferred Stock Tables	'
Settlement amount for Series C Preferred Stock	'
		September 30,		December 31,
		2013		2012

	Face Value of Preferred Stock	$	17,500,000	$	17,500,000
	Accrued Dividends	$	2,164,813	$	1,325,333
	Redemption factor		118%		118%
	Conversion price	$	23,204,479	$	22,213,893
	Receivable	$	21,716,080	$	21,429,666
	Net settlement upon conversion	$	1,488,399	$	784,227

10_WARRANT_SUMMARY_Tables

10. WARRANT SUMMARY (Tables)	9 Months Ended
10. WARRANT SUMMARY (Tables)	Sep. 30, 2013
Warrant Summary	'
Summary of warrant activity	'
								Weighted
						Weighted		Average		Aggregate
						Average		Remaining		Intrinsic
			Number of			Exercise		Contractual		Value
			Warrants			Price $		Life (in years)		(000) $
	Outstanding, December 31, 2012			21,757,421			0.18		1.88		–
	Granted			–			–
	Exercised			–			–
	Forfeited/Canceled			(13,927,538	)		0.13
	Outstanding, September 30, 2013			7,829,883			0.28		2.08
	Exercisable, September 30, 2013			7,829,883			0.28		2.08		–

Summary of warrants outstanding and exercisable	'
		Warrants Outstanding and Exercisable
			Weighted		Weighted
			Average		Average
	Exercise	Number	Remaining		Exercise
	Price $	of Shares	Life (Years)		Price $
	.10 - .11	3,239,247	1.18		0.1
	.20 - .30	1,630,000	2.25		0.25
	.38 - .39	1,330,636	3.82		0.39
	.40 - .45	815,000	2.25		0.45
	0.7	815,000	2.25		0.7
		7,829,883

12_STOCKBASED_COMPENSATION_Tab

12. STOCK-BASED COMPENSATION (Tables)	9 Months Ended
12. STOCK-BASED COMPENSATION (Tables)	Sep. 30, 2013
Stock-Based Compensation	'
Stock Plans	'
										Options/Shares
			Options/Shares				Options			Available
	Stock Plan		Issued				Outstanding			For Grant			Total Authorized
	2004 Stock Plan			2,492,000				70,000			1,215,104			2,800,000
	2004 Stock Plan II			1,301,161				1,071,161			–			1,301,161
	2005 Stock Plan			149,566,004				117,941,097			300,259,531			449,825,535
				153,359,165				119,082,258			301,474,635			453,926,696
Stock Option Activity	'
										Weighted
							Weighted			Average
							Average			Remaining			Aggregate
			Number of				Exercise			Contractual			Intrinsic
			Options				Price			Life (in years)			Value
	Outstanding, December 31, 2012			100,672,803			$	0.22			7.45
	Granted			22,100,000				0.08
	Exercised			–				–
	Forfeited/canceled			(3,690,545	)			0.19
	Outstanding, September 30, 2013			119,082,258				0.19			7.1			34,991

	Vested and expected to vest at September 30, 2013			116,378,746			$	0.19			7.05		$	34,991

	Exercisable, September 30, 2013			98,286,015			$	0.21			6.64		$	34,991
Summary stock options outstanding and exercisable	'
				Options Outstanding					Options Exercisable
						Weighted		Weighted			Weighted	Weighted
						Average		Average			Average	Average
		Exercise		Number		Exercise		Remaining	Number		Exercise	Remaining
		Price		of Shares		Price		Life (Years)	of Shares		Price	Life (Years)
	$	0.05 - 0.058		2,570,000	$	0.06		9.03	2,570,000	$	0.06	9.03
		0.08 - 0.09		32,892,647		0.08		8.42	15,434,121		0.09	7.17
		0.10 - 0.157		40,258,102		0.13		6.92	39,587,052		0.13	6.9
		0.185 - 0.21		26,267,499		0.19		6.99	24,600,832		0.19	6.93
		0.25 - 0.45		11,071,161		0.36		7.06	10,071,161		0.36	6.99
		0.85		5,417,849		0.85		0.65	5,417,849		0.85	0.65
	$	1.35 - 2.48		605,000	$	2.02		2.12	605,000	$	2.02	2.12
				119,082,258					98,286,015
Assumptions in calculating the fair value of options granted	'
			September 30,		September 30,
			2013		2012
	Risk-free interest rate		0.76 - 1.91%		1.04%
	Expected life of the options		5.00 - 6.50 years		6.26 years
	Expected volatility		160%		160%
	Expected dividend yield		0%		0%
	Expected forfeitures		13%		13%

13_COMMITMENTS_AND_CONTINGENCI1

13. COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
13. COMMITMENTS AND CONTINGENCIES (Tables)	Sep. 30, 2013
Commitments And Contingencies Tables	'
Loss contingency acrrual	'
		September 30,		December 31,
		2013		2012
	SEC Civil Action	$	4,086,619	$	3,500,000
	Warrant Holder Claim		3,208,500		2,506,500
	Debenture Settlement		233,777		170,287
	Total	$	7,528,896	$	6,176,787

2_Estimated_Useful_Lives_Detai

2. Estimated Useful Lives (Details)	9 Months Ended
2. Estimated Useful Lives (Details)	Sep. 30, 2013
Machinery and equipment	'
Estimated useful lifes	'
Estimated useful lives	'4 years
Computer Equipment	'
Estimated useful lifes	'
Estimated useful lives	'3 years
Office furniture member	'
Estimated useful lifes	'
Estimated useful lives	'4 years
Leasehold Improvements	'
Estimated useful lifes	'
Estimated useful lives	'Lesser of lease life or economic life

2_Fair_Value_of_Assets_and_Lia

2. Fair Value of Assets and Liabilities (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Total Derivative Liabilities	$1,060,875	'
Warrant and option derivative liabilities	'	'
Total Derivative Liabilities	357,875	'
Embedded conversion option liabilities	'	'
Total Derivative Liabilities	703,000	'
Fair Value Inputs Level 1	'	'
Total Derivative Liabilities	0	'
Fair Value Inputs Level 1 \| Warrant and option derivative liabilities	'	'
Total Derivative Liabilities	0	'
Fair Value Inputs Level 1 \| Embedded conversion option liabilities	'	'
Total Derivative Liabilities	0	'
Fair Value Inputs Level 2	'	'
Total Derivative Liabilities	357,875	'
Fair Value Inputs Level 2 \| Warrant and option derivative liabilities	'	'
Total Derivative Liabilities	357,875	'
Fair Value Inputs Level 2 \| Embedded conversion option liabilities	'	'
Total Derivative Liabilities	0	'
Fair Value Inputs Level 3	'	'
Total Derivative Liabilities	703,000	'
Fair Value Inputs Level 3 \| Embedded conversion option liabilities	'	'
Total Derivative Liabilities	$703,000	$845,000

2_Level_3_Fair_Value_Details

2. Level 3 Fair Value (Details) (USD $)	9 Months Ended
2. Level 3 Fair Value (Details) (USD $)	Sep. 30, 2013
Ending balance	$1,060,875
Fair Value Inputs Level 3	'
Ending balance	703,000
Embedded conversion option liabilities	'
Ending balance	703,000
Embedded conversion option liabilities \| Fair Value Inputs Level 3	'
Beginning balance	845,000
Total gains or (losses) for the period included in earnings	-142,000
Ending balance	$703,000

2_Quantitative_information_abo

2. Quantitative information about Level 3 measurements (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Fair Value Inputs Level 3	'
Embedded conversion option liability	703,000
Valuation Technique	'Binomial Lattice Model
Unobservable Input 1	'
Unobservable Input	'Expected volatility of the Company's common stock
Value	'71%
Unobservable Input 2	'
Unobservable Input	'Discount for illiquidity of large blocks of the Company's common stock
Value	'5.7% to 100%
Unobservable Input 3	'
Unobservable Input	'Discount rate for contractual debt principal and interest payments
Value	'20.0%

2_Potentially_dilutive_shares_

2. Potentially dilutive shares (Details)	9 Months Ended
2. Potentially dilutive shares (Details)	Sep. 30, 2013	Sep. 30, 2012
Potentially dilutive shares excluded from EPS	185,866,771	101,589,497
Options	'	'
Potentially dilutive shares excluded from EPS	98,286,015	74,093,057
Warrants	'	'
Potentially dilutive shares excluded from EPS	7,829,883	21,757,421
Convertible Notes	'	'
Potentially dilutive shares excluded from EPS	79,750,873	4,232,132
Convertible Preferred Stock [Member]	'	'
Potentially dilutive shares excluded from EPS	0	1,506,887

2_Concentration_of_Revenues_De

2. Concentration of Revenues (Details)	3 Months Ended		9 Months Ended
2. Concentration of Revenues (Details)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
International Stem Cell Corporation	'	'	'	'
Revenue concentrations by customer	'	18.00%	30.00%	51.00%
CHA Biotech and SCRMI	'	'	'	'
Revenue concentrations by customer	82.00%	48.00%	53.00%	29.00%
Lifeline	'	'	'	'
Revenue concentrations by customer	'	24.00%	'	14.00%
Embryone Sciences	'	'	'	'
Revenue concentrations by customer	18.00%	10.00%	11.00%	'

2_Reclassifications_Details

2. Reclassifications (Details) (USD $)	3 Months Ended		9 Months Ended
2. Reclassifications (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Research and development	$2,898,253	$2,363,098	$8,285,406	$6,204,146
General and administrative	3,211,866	2,695,020	9,148,133	8,994,088
Scenario, Previously Reported [Member]	'	'	'	'
Research and development	'	2,808,300	'	7,316,940
General and administrative	'	2,249,818	'	7,881,294
Net Reclass	'	'	'	'
Research and development	'	-445,202	'	-1,112,794
General and administrative	'	$445,202	'	$1,112,794

Recovered_Sheet1

2. Summary of Significant Accounting Policies (Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Accounting Policies [Abstract]	'	'	'	'	'
Deposits in excess of federally-insured limits	$5,378,091	'	$5,378,091	'	$6,741,852
Reduction in research and development costs	40,010	140,046	160,054	260,090	'
Gain (loss) for the changes in the valuation of derivative liabilities	146,609	-336,200	371,255	256,282	'
License fee revenue	$39,468	$68,184	$185,517	$342,053	'
Options outstanding	119,082,258	100,672,803	119,082,258	100,672,803	'

3_Key_Financial_Data_for_Joint

3. Key Financial Data for Joint Venture (Details) (USD $)	9 Months Ended
3. Key Financial Data for Joint Venture (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]	'	'
Current assets	$189,866	$179,310
Noncurrent assets	1,227,201	1,028,102
Current liabilities	294,165	293,276
Noncurrent liabilities	1,948,582	2,240,697
Net revenue	219,087	222,932
Net income	$137,901	$150,566

Recovered_Sheet2

3. Investment in Joint Venture (Narrative) (USD $)	3 Months Ended		9 Months Ended
3. Investment in Joint Venture (Narrative) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]	'	'	'	'	'
License fee revenue	$7,353	$7,353	$22,059	$22,059	'
Unamortized license fee	$359,069	'	$359,069	'	$381,127

4_Property_and_Equipment_Detai

4. Property and Equipment (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]	'	'
Total	$1,673,523	$1,116,982
Accumulated depreciation	-976,496	-941,726
Property and equipment, net	697,027	175,256
Machinery and Equipment [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Total	1,101,762	907,740
Computer Equipment [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Total	46,287	32,986
Furniture and Fixtures [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Total	38,783	6,684
Leasehold Improvements [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Total	$486,691	$169,572

4_Property_and_Equipment_Narra

4. Property and Equipment (Narrative) (USD $)	3 Months Ended		9 Months Ended
4. Property and Equipment (Narrative) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Property, Plant and Equipment [Abstract]	'	'	'	'
Depreciation expense	$26,618	$10,101	$64,320	$35,541

5_Accrued_Settlement_Narrative

5. Accrued Settlement (Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Accrued Settlement	'	'
Accrued settlements of agreement	$0	$6,807,891

6_Convertible_Notes_Redemption

6. Convertible Notes Redemption Schedule (Details) (USD $)	Sep. 30, 2013
Senior Secured Convertible Debentures	$4,200,000
12/31/13	'
Senior Secured Convertible Debentures	600,000
3/31/14	'
Senior Secured Convertible Debentures	600,000
6/30/14	'
Senior Secured Convertible Debentures	600,000
9/30/14	'
Senior Secured Convertible Debentures	600,000
12/31/14	'
Senior Secured Convertible Debentures	600,000
3/31/15	'
Senior Secured Convertible Debentures	600,000
6/30/15	'
Senior Secured Convertible Debentures	$600,000

Recovered_Sheet3

6. Convertible Promissory Notes (Narrative) (USD $)	3 Months Ended		9 Months Ended
6. Convertible Promissory Notes (Narrative) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Interest expense recorded	$271,021	$278,493	$1,165,438	$826,109	'
Unamortized discount	0	'	0	'	30,935
JMJ Convertible Promissory Notes	'	'	'	'	'
Interest expense from amortization of debt discounts	0	95,231	30,935	31,976	'
Convertible promissory notes	0	'	0	'	287,785
Senior Secured Convertible Debentures	'	'	'	'	'
Interest expense from amortization of debt discounts	87,626	'	374,497	'	'
Interest expense recorded	84,000	'	304,000	'	'
Unamortized discount	$350,503	'	$350,503	'	$725,000

Recovered_Sheet4

7. Series A-1 Redeemable Convertible Preferred Stock Outstanding (Details) (Series A-1 Convertible Redeemable Preferred Stock, USD $)	Sep. 30, 2013	Dec. 31, 2012
Series A-1 Convertible Redeemable Preferred Stock	'	'
Principal due	$0	$1,130,165
Accrued dividend	0	477,332
Debt discount	0	-8,964
Redeemable convertible preferred stock	0	1,598,533
Non-current portion	0	1,598,533
Aggregate liquidation value	$0	$1,607,497

Recovered_Sheet5

7. Series A-1 Redeemable Convertible Preferred Stock (Narrative) (Series A-1 Convertible Redeemable Preferred Stock, USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Series A-1 Convertible Redeemable Preferred Stock	'	'	'	'	'
Accrued dividends	$0	$34,826	$43,873	$100,409	'
Embedded conversion option	0	'	0	'	33
Decrease in the fair value of the embedded conversion option liability	0	-1,657	-33	-22,354	'
Interest expense from amortization of the debt discount and deferred costs	$0	$112,296	$117,180	$334,445	'

8_Series_B_Settlement_Amount_D

8. Series B Settlement Amount (Details) (Series B Preferred Stock, USD $)	Sep. 30, 2013	Dec. 31, 2012
Series B Preferred Stock	'	'
Face value of Preferred Stock	$10,000,000	$10,000,000
Accrued dividends	3,271,594	2,352,321
Redemption factor	109.00%	118.00%
Conversion price	14,466,037	14,575,739
Receivable	14,153,057	13,969,559
Net payable upon conversion	$312,980	$606,180

8_Series_B_Preferred_Stock_Nar

8. Series B Preferred Stock (Narrative) (Series B Preferred Stock, USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Series B Preferred Stock	'	'	'	'	'
Accrued dividends on preferred stock	$3,271,594	'	$3,271,594	'	$2,352,321
Value of secured promissory notes	13,246,062	'	13,246,062	'	12,328,558
Discount on secured promissory notes	906,998	'	906,998	'	1,641,001
Accrued interest on secured promissory notes	653,060	'	653,060	'	469,559
Face Value reflected	13,500,000	'	13,500,000	'	13,500,000
Accreted interest on the promissory notes	315,546	286,132	91,750	834,491	'
Dividends on Preferred Stock	$316,154	$286,684	$919,273	$836,100	'

9_Series_C_Settlement_Amount_D

9. Series C Settlement Amount (Details) (Series C Preferred Stock, USD $)	Sep. 30, 2013	Dec. 31, 2012
Series C Preferred Stock	'	'
Face value note	$17,500,000	$17,500,000
Accrued dividends	2,164,813	1,325,333
Redemption factor	118.00%	118.00%
Conversion price	23,204,479	22,213,893
Receivable	21,716,080	21,429,666
Net payable upon conversion	$1,488,399	$784,227

9_Series_C_Preferred_Stock_Det

9. Series C Preferred Stock (Details) (Series C Preferred Stock, USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Series C Preferred Stock	'	'	'	'	'
Amount drawn on Preferred commitment	$17,500,000	'	$17,500,000	'	$25,000,000
Accrued dividends on Series C Preferred stock	2,164,813	'	2,164,813	'	1,325,333
Notes receivable	21,000,000	'	21,000,000	'	'
Value of secured promissory notes	20,153,376	'	20,153,376	'	19,294,139
Discounts on secured promissory note	1,562,702	'	1,562,702	'	2,135,527
Accrued interest on secured promissory note	716,078	'	716,078	'	429,666
Face value reflected	21,000,000	'	21,000,000	'	21,000,000
Accreted interest on the promissory notes	295,494	259,613	859,238	666,181	'
Dividends on Preferred Stock	$287,203	$252,319	$839,480	$651,615	'

10_Warrants_Outstanding_Detail

10. Warrants Outstanding (Details) (WarrantMember, USD $)	9 Months Ended
10. Warrants Outstanding (Details) (WarrantMember, USD $)	Sep. 30, 2013
WarrantMember	'
Number of Warrants, Beginning	21,757,421
Number of Warrants, Granted	0
Number of Warrants, Exercised	0
Number of Warrants, Forfeited/Canceled	-13,927,538
Number of Warrants, Ending	7,829,883
Number of Warrants, Exercisable	7,829,883
Weighted Average Exercise Price, Beginning	0.18
Weighted Average Exercise Price, Granted	'
Weighted Average Exercise Price, Exercised	'
Weighted Average Exercise Price, Forfeited/Canceled	$0.13
Weighted Average Exercise Price, Ending	0.28
Weighted Average Exercise Price, Exercisable	$0.28
Weighted Average Remaining Contractual Life (in years), Beginning	'1 year 10 months 17 days
Weighted Average Remaining Contractual Life (in years), Ending	'2 years 29 days
Weighted Average Remaining Contractual Life (in years), Exercisable	'2 years 29 days
Aggregate Intrinsic Value outstanding	'
Aggregate Intrinsic Value Exercisable	'

10_Warrants_Outstanding_and_Ex

10. Warrants Outstanding and Exercisable (Details (USD $)	9 Months Ended
10. Warrants Outstanding and Exercisable (Details (USD $)	Sep. 30, 2013	Dec. 31, 2012
WarrantMember	'	'
Number of shares	7,829,883	21,757,421
Weighted Average Remaining Life (Years)	'2 years 29 days	'
Weighted Average Exercise Price $	0.28	0.18
Exercise Price $.10 - .11	'	'
Exercise Price Minimum	$0.10	'
Exercise Price Maximum	$0.11	'
Number of shares	3,239,247	'
Weighted Average Remaining Life (Years)	'1 year 2 months 5 days	'
Weighted Average Exercise Price $	0.1	'
Exercise Price $.20 - .30	'	'
Exercise Price Minimum	$0.20	'
Exercise Price Maximum	$0.30	'
Number of shares	1,630,000	'
Weighted Average Remaining Life (Years)	'2 years 3 months	'
Weighted Average Exercise Price $	0.25	'
Exercise Price $.38 - .39	'	'
Exercise Price Minimum	$0.38	'
Exercise Price Maximum	$0.39	'
Number of shares	1,330,636	'
Weighted Average Remaining Life (Years)	'3 years 9 months 25 days	'
Weighted Average Exercise Price $	0.39	'
Exercise Price $.40 - .45	'	'
Exercise Price Minimum	$0.40	'
Exercise Price Maximum	$0.45	'
Number of shares	815,000	'
Weighted Average Remaining Life (Years)	'2 years 3 months	'
Weighted Average Exercise Price $	0.45	'
Exercise Price $.70	'	'
Exercise Price Maximum	$0.70	'
Number of shares	815,000	'
Weighted Average Remaining Life (Years)	'2 years 3 months	'
Weighted Average Exercise Price $	0.7	'

Recovered_Sheet6

11. Stockholders' Equity Transactions (Narrative) (USD $)	9 Months Ended
11. Stockholders' Equity Transactions (Narrative) (USD $)	Sep. 30, 2013
Stock issued as executive compensation, shares	6,857,144
Stock issued as executive compensation, value	$1,044,426
Lincoln Park	'
Stock sold for cash, shares	237,607,759
Stock sold for cash, value	16,844,532
Board Members	'
Stock issued as compensation, shares	3,124,542
Stock issued as compensation, amount	$227,938

12_Stock_Plans_Details

12. Stock Plans (Details)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
12. Stock Plans (Details)	Sep. 30, 2013	Sep. 30, 2012	2004 Stock Plan	2004 Stock Plan II	2005 Stock Plan	Stock Plans
Options/Shares Issued	'	'	2,492,000	1,301,161	149,566,004	153,359,165
Options outstanding	119,082,258	100,672,803	70,000	1,071,161	117,941,097	119,082,258
Options/Shares Available For Grant	'	'	1,215,104	0	300,259,531	301,474,635
Total Authorized	'	'	2,800,000	1,301,161	449,825,535	453,926,696

12_Stock_Option_Activity_Detai

12. Stock Option Activity (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
12. Stock Option Activity (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Options
Number of Options	'	'	'
Number of shares, beginning balance	119,082,258	100,672,803	100,672,803
Number of Options Granted	'	'	22,100,000
Number of Options Exercised	'	'	0
Number of Options Forfeited/canceled	'	'	-3,690,545
Number of shares, ending balance	119,082,258	100,672,803	119,082,258
Number of Options Vested and expected to vest	'	'	116,378,746
Number of Options Exercisable	'	'	98,286,015
Weighted Average Exercise Price	'	'	'
Weighted Average Exercise Price Outstanding, Beginning	'	'	$0.22
Weighted Average Exercise Price Granted	'	'	$0.08
Weighted Average Exercise Price Forfeited/canceled	'	'	$0.19
Weighted Average Exercise Price Outstanding, Ending	'	'	$0.19
Weighted Average Exercise Price Vested and expected to vest	'	'	$0.19
Weighted Average Exercise Price Exercisable	'	'	$0.21
Weighted Average Remaining Contractual Life (in years)	'	'	'
Weighted Average Remaining Contractual Life (in years) Outstanding, beginning	'	'	'7 years 5 months 12 days
Weighted Average Remaining Contractual Life (in years) Outstanding, ending	'	'	'7 years 1 month 6 days
Weighted Average Remaining Contractual Life (in years) Vested and expected to vest	'	'	'7 years 18 days
Weighted Average Remaining Contractual Life (in years) Exercisable	'	'	'6 years 7 months 20 days
Aggregate Intrinsic Value	'	'	'
Aggregate Intrinsic Value Outstanding, ending	'	'	$34,991
Aggregate Intrinsic Value vested and expected to vest	'	'	34,991
Aggregate Intrinsic Value Exercisable	'	'	$34,991

12_Options_Outstanding_and_Exe

12. Options Outstanding and Exercisable (Details) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
			Options	Options	Options	Options	Options	Options	Options	Options	Options
					$0.05-0.058	$0.08-0.09	$0.10-0.157	$0.185-0.21	$0.25-0.45	$0.85	$1.35-2.48
Number of shares	119,082,258	100,672,803	119,082,258	100,672,803	2,570,000	32,892,647	40,258,102	26,267,499	11,071,161	5,417,849	605,000
Weighted Average Exercise Price Outstanding	'	'	$0.19	$0.22	$0.06	$0.08	$0.13	$0.19	$0.36	$0.85	$2.02
Weighted Average Remaining Life (Years) Outstanding	'	'	'7 years 5 months 12 days	'	'9 years 11 days	'8 years 5 months 1 day	'6 years 11 months 1 day	'6 years 11 months 26 days	'7 years 22 days	'7 months 24 days	'2 years 1 month 13 days
Number of Shares Exercisable	'	'	98,286,015	'	2,570,000	15,434,121	39,587,052	24,600,832	10,071,161	5,417,849	605,000
Weighted Average Exercise Price Exercisable	'	'	'	'	$0.06	$0.09	$0.13	$0.20	$0.36	$0.85	$2.02
Weighted Average Remaining Life (Years) Exercisable	'	'	'6 years 7 months 20 days	'	'9 years 11 days	'7 years 2 months 1 day	'6 years 10 months 24 days	'6 years 11 months 5 days	'6 years 11 months 26 days	'7 months 24 days	'2 years 1 month 13 days

12_Assumptions_Details

12. Assumptions (Details) (Options)	9 Months Ended
12. Assumptions (Details) (Options)	Sep. 30, 2013	Sep. 30, 2012
Options	'	'
Risk-free interest rate minimum	0.76%	'
Risk-free interest rate maximum	1.91%	'
Expected volatility	160.00%	'
Expected dividend yield	0.00%	'
Expected forfeitures	13.00%	'
Options	'	'
Risk-free interest rate minimum	'	1.04%
Expected life of the options	'	'6 years 3 months 4 days
Expected volatility	'	160.00%
Expected dividend yield	'	0.00%
Expected forfeitures	'	13.00%
Options \| Minimum [Member]	'	'
Expected life of the options	'5 years	'6 years 6 months

12_StockBased_Compensation_Nar

12. Stock-Based Compensation (Narrative) (USD $)	3 Months Ended		9 Months Ended
12. Stock-Based Compensation (Narrative) (USD $)	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock-Based Compensation	'	'	'	'
Weighted average grant-date fair value	'	'	$0.08	$0.10
Stock-based compensation expense to employees	$856,646	$798,746	$2,650,530	$2,896,236
Compensation expense related to unvested options	$1,516,536	'	$1,516,536	'
Compensation expense weighted average period	'	'	'8 years 18 days	'

13_Contingency_Accrual_Details

13. Contingency Accrual (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Loss contingency accrual	$7,528,896	$6,176,787
SEC Civil Action	'	'
Loss contingency accrual	4,086,619	3,500,000
Warrant Holder Claim	'	'
Loss contingency accrual	3,208,500	2,506,500
Debenture Settlement	'	'
Loss contingency accrual	$233,777	$170,287