Ocata Therapeutics (OCAT) 10-K 1 Apr 14 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Mar. 04, 2014	Jun. 30, 2013
Document And Entity Information	'	'	'
Entity Registrant Name	'ADVANCED CELL TECHNOLOGY, INC.	'	'
Entity Central Index Key	'0001140098	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Dec-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 Public Float	'	'	$198,000,000
Entity Common Stock, Shares Outstanding	'	2,776,983,176	'
Document Fiscal Period Focus	'FY	'	'
Document Fiscal Year Focus	'2013	'	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
ASSETS	'	'
Cash and cash equivalents	$1,743,485	$7,241,852
Other receivable	209,198	96,425
Deferred royalty fees, current portion	62,435	82,435
Prepaid expenses and other assets	896,741	132,044
Total current assets	2,911,859	7,552,756
Property and equipment, net	753,576	175,256
Deferred royalty fees, less current portion	107,780	170,216
Other Assets	68,801	29,856
Deferred costs, net of amortization of $6,165,098 and $5,662,543 at December 31, 2013 and 2012, respectively	65,903	568,458
TOTAL ASSETS	3,907,919	8,496,542
LIABILITIES AND STOCKHOLDERS' DEFICIT	'	'
Accounts payable	2,285,331	2,956,743
Accrued expenses	3,545,713	3,210,908
Accrued settlement	4,086,619	6,807,891
Convertible promissory notes, current portion net of discounts of $0 and $30,935 at December 31, 2013 and 2012, respectively	0	256,850
Senior secured convertible promissory notes, current portion, net of discount of $225,324 and $290,000 at December 31, 2013 and 2013, respectively	2,174,676	2,110,000
Embedded conversion option liabilities, current portion	335,208	460,668
Unsettled warrant obligation	3,899,391	3,791,953
Loss contingency accrual	6,431,979	3,670,287
Deferred revenue, current portion	157,872	224,935
Total current liabilities	22,916,789	23,490,235
Senior secured convertible promissory notes, less current portion, net of discount of $37,553 and $435,000 at December 31, 2013 and 2012, respectively	1,162,447	3,165,000
Embedded conversion option liabilities, less current portion	327,792	507,033
Warrant and option derivative liabilities	284,799	972,381
Deferred revenue, less current portion	1,749,702	1,907,574
Total liabilities	26,441,529	30,042,223
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	2,640,265	2,232,721
Additional paid-in capital	322,683,874	289,093,619
Promissory notes receivable, net of discount of $2,018,321 and $3,776,528, respectively	-34,013,395	-31,622,696
Accumulated deficit	-313,844,357	-282,847,861
Total stockholders' deficit	-22,533,610	-23,144,214
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	3,907,919	8,496,542
Series B Preferred Stock	'	'
STOCKHOLDERS' DEFICIT:	'	'
Preferred stock	1	1
Series C Preferred Stock	'	'
STOCKHOLDERS' DEFICIT:	'	'
Preferred stock	$2	$2

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
CURRENT ASSETS:	'	'
Amortization of deferred costs	$6,165,098	$5,662,543
CURRENT LIABILITIES:	'	'
Discount on convertible promissory notes - current	0	30,935
Discount on senior secured convertible debentures - current	225,324	290,000
Discount on senior secured convertible debentures - noncurrent	37,553	435,000
Series A-1 redeemable preferred stock par value	$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:	'	'
Common stock par value (in Dollars per share)	$0.00	$0.00
Common stock shares authorized	3,750,000,000	3,750,000,000
Common stock shares issued	2,640,264,975	2,232,720,779
Common stock shares outstanding	2,640,264,975	2,232,720,779
Discount on promissory notes receivable (in Dollars)	$2,018,321	$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 $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Consolidated Statements Of Operations	'	'	'
Revenue (License fees and royalties)	$224,985	$466,487	$506,419
Cost of Revenue	82,436	117,436	343,950
Gross profit	142,549	349,051	162,469
Operating expenses:	'	'	'
Research and development	11,564,768	14,158,936	9,753,759
General and administrative	12,057,067	11,432,866	7,435,709
Litigation settlement contingency	6,228,621	0	0
Loss on settlement of litigation	0	0	294,144
Total operating expenses	29,850,456	25,591,802	17,483,612
Loss from operations	-29,707,907	-25,242,751	-17,321,143
Non-operating income (expense):	'	'	'
Interest income	165,918	15,581	35,114
Interest expense	-1,437,584	-1,104,602	-1,510,693
Finance gain (loss)	95,162	-7,015,470	-54,984,170
Adjustment to fair value of unsettled warrant obligation	-107,438	1,390,382	7,963,101
Gain (loss) on disposal of fixed assets	0	-17,138	0
Gain on extinguishment of debt	438,587	0	0
Loss attributable to equity method investments	0	0	-820,000
Fines and penalties	-962,227	-3,500,000	0
Adjustments to fair value of derivatives	493,241	889,883	11,444,988
Total non-operating expense	-1,314,341	-9,341,364	-37,871,660
Loss before provision for income tax	-31,022,248	-34,584,115	-55,192,803
Provision for income tax	0	0	0
Net loss	($31,022,248)	($34,584,115)	($55,192,803)
Weighted average shares outstanding : Basic and diluted	2,491,872,696	2,086,619,741	1,582,095,095
Loss per share: Basic and diluted	($0.01)	($0.02)	($0.03)

CONSOLIDATED_STATEMENT_OF_STOC

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY/DEFICIT (USD $)	Series B Preferred Stock	Series C Preferred Stock	Common Stock	Additional Paid-In Capital	Promissory Notes Net	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2010	$1	'	$1,439,826	$164,969,477	($10,177,370)	($193,030,460)	($46,123,844)
Beginning Balance, Shares at Dec. 31, 2010	1,000	400	1,439,826,362	'	'	'	'
Convertible debenture redemptions, Shares	'	'	1,519,077	'	'	'	'
Convertible debenture redemptions, Amount	'	'	1,519	150,390	'	'	151,909
Shares issued for compensation, Shares	'	'	15,571,152	'	'	'	'
Shares issued for compensation, Amount	'	'	15,571	2,658,389	'	'	2,673,960
Shares issued for accrued liabilities, Shares	'	'	23,205,895	'	'	'	'
Shares issued for accrued liabilities, Amount	'	'	23,206	2,998,693	'	'	3,021,899
Common stock issued for settlements recorded as financing costs, Shares	'	'	133,645,953	'	'	'	'
Common stock issued for settlements recorded as financing costs, Amount	'	'	133,646	22,029,270	'	'	22,162,916
Warrant exercises, Shares	'	'	37,477,368	'	'	'	'
Warrant exercises, Amount	'	'	37,478	10,246,139	'	'	10,283,617
Option exercises, Shares	'	'	1,386,126	'	'	'	'
Option exercises, Amount	'	'	1,386	196,276	'	'	197,662
Shares issued for services, Shares	'	'	2,381,406	'	'	'	'
Shares issued for services, Amount	'	'	2,381	473,519	'	'	475,900
Accrued dividends on Series B and C Preferred Stock	1,229,538	'	'	1,432,661	'	-1,432,661	1,432,661
Accretion of note receivable discount on Series B and C Preferred Stock	'	'	'	'	-1,371,865	1,371,865	'
Option compensation charges	'	'	'	67,287	'	'	67,287
Issuance of Series C preferred stock, Shares	'	750	'	'	'	'	'
Issuance of Series C preferred stock, Amount	'	1	'	7,499,999	'	'	7,500,000
Issuance of Common Stock to Series C Preferred Stock holder for note receivable, Shares	'	'	73,796,597	'	'	'	'
Issuance of Common Stock to Series C Preferred Stock holder for note receivable, Amount	'	'	73,797	9,786,161	-9,859,958	'	'
Common stock issued upon exercise of Series C Preferred Stock warrants and issuance of note receivable, Shares	'	'	14,759,319	'	'	'	'
Common stock issued upon exercise of Series C Preferred Stock warrants and issuance of note receivable, Amount	'	'	14,759	1,957,233	-1,971,992	'	'
Stock option reclass from equity to liability	'	'	'	-3,099,883	'	'	-3,099,883
Net loss	'	'	'	'	'	-55,192,803	-55,192,803
Ending Balance, Amount at Dec. 31, 2011	1	1	1,743,569	221,365,611	-23,381,185	-248,284,059	-48,556,062
Ending Balance, Shares at Dec. 31, 2011	1,000	1,150	1,743,569,255	'	'	'	'
Shares issued for settlements, Shares	'	'	330,690,982	'	'	'	'
Shares issued for settlements, Amount	'	'	330,692	38,096,321	'	'	38,427,013
Shares issued for services, Shares	'	'	14,077,873	'	'	'	'
Shares issued for services, Amount	'	'	14,078	1,802,552	'	'	1,816,630
Accrued dividends on Series B and C Preferred Stock	'	'	'	2,048,007	'	-2,048,007	2,048,007
Accretion of note receivable discount on Series B and C Preferred Stock	'	'	'	'	-2,068,320	2,068,320	'
Option compensation charges	'	'	'	7,795,885	'	'	7,795,885
Issuance of Series C preferred stock, Shares	'	600	'	'	'	'	'
Issuance of Series C preferred stock, Amount	'	1	'	5,999,999	'	'	6,000,000
Issuance of Common Stock to Series C Preferred Stock holder for note receivable, Shares	'	'	73,817,224	'	'	'	'
Issuance of Common Stock to Series C Preferred Stock holder for note receivable, Amount	'	'	73,817	5,070,509	-5,144,326	'	'
Common stock issued upon exercise of Series C Preferred Stock warrants and issuance of note receivable, Shares	'	'	14,763,445	'	'	'	'
Common stock issued upon exercise of Series C Preferred Stock warrants and issuance of note receivable, Amount	'	'	14,763	1,014,102	-1,028,865	'	'
Stock option reclass from equity to liability	'	'	'	3,099,883	'	'	3,099,883
Issuance of common stock, Shares	'	'	47,052,000	'	'	'	'
Issuance of common stock, Amount	'	'	47,052	2,809,500	'	'	2,856,552
Issuance of common shares as a commitment fee, Shares	'	'	8,750,000	'	'	'	'
Issuance of common shares as a commitment fee, Amount	'	'	8,750	-8,750	'	'	'
Net loss	'	'	'	'	'	'	-34,584,115
Ending Balance, Amount at Dec. 31, 2012	'	'	2,232,721	289,093,619	-31,622,696	-282,847,861	-23,144,214
Ending Balance, Shares at Dec. 31, 2012	1,000	1,750	2,232,720,779	'	'	'	'
Redemption of Series A Preferred Stock, Shares	'	'	27,522,833	'	'	'	'
Redemption of Series A Preferred Stock, Amount	'	'	27,523	1,885,314	'	'	1,912,837
Shares issued for settlements, Shares	'	'	112,164,595	'	'	'	'
Shares issued for settlements, Amount	'	'	112,164	6,187,836	'	'	6,300,000
Shares issued for services, Shares	'	'	14,596,768	'	'	'	'
Shares issued for services, Amount	'	'	14,597	1,747,756	'	'	1,762,353
Accrued dividends on Series B and C Preferred Stock	'	'	'	2,364,947	'	-2,364,947	'
Accretion of note receivable discount on Series B and C Preferred Stock	'	'	'	'	-2,390,699	2,390,699	'
Option compensation charges	'	'	'	3,880,058	'	'	3,880,058
Issuance of common stock, Shares	'	'	253,260,000	'	'	'	'
Issuance of common stock, Amount	'	'	253,260	17,524,344	'	'	17,777,604
Net loss	'	'	'	'	'	-31,022,248	-31,022,248
Ending Balance, Amount at Dec. 31, 2013	'	'	$2,640,265	$322,683,874	($34,013,395)	($313,844,357)	($22,533,610)
Ending Balance, Shares at Dec. 31, 2013	1,000	1,750	2,640,264,975	'	'	'	'

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'	'
Net loss	($31,022,248)	($34,584,115)	($55,192,803)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'	'
Depreciation	93,507	58,637	67,161
Amortization of deferred charges	112,436	117,436	91,600
Amortization of deferred revenue	-224,935	-466,487	-506,419
Redeemable preferred stock dividend accrual	43,873	135,235	122,605
Stock based compensation	3,880,058	7,795,885	67,286
Amortization of deferred issuance costs	502,555	807,989	1,201,741
Amortization of discounts	502,022	161,379	180,172
Adjustment to fair value of unsettled warrant obligation	107,438	-1,390,382	-7,963,101
Adjustments to fair value of derivatives	-493,241	-889,883	-11,444,988
Shares of common stock issued for services	0	0	475,900
Shares of common stock issued for compensation	1,762,353	1,816,630	2,673,960
Non-cash financing costs	6,133,459	7,015,470	54,984,170
Loss on settlement of litigation	0	0	294,144
Gain on debt extinguishment	-438,587	0	0
Loss on disposal of fixed assets	0	17,138	0
Amortization of deferred joint venture obligations	0	0	-6,870
Warrant and options issued for consulting services	41,460	60,388	834,443
Changes in operating assets and liabilities	'	'	'
Grants receivable	-112,773	-96,425	0
Prepaid expenses and other assets	-794,697	34,204	-241,248
Deferred revenue	0	300,000	0
Accounts payable and other liabilities	-2,057,879	4,500,544	734,960
Net cash used in operating activities	-21,965,199	-14,606,357	-13,627,287
CASH FLOWS FROM INVESTING ACTIVITIES	'	'	'
Purchases of property and equipment	-671,827	-96,260	-36,830
Payment of lease deposits	-38,945	-15,090	0
Net cash used in investing activities	-710,772	-111,350	-36,830
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'	'
Proceeds from exercise of warrants and options	0	0	3,377,715
Repayment of convertible debentures	-600,000	0	0
Proceeds from convertible promissory notes	0	0	0
Proceeds from issuance of preferred stock	0	6,000,000	7,500,000
Proceeds from issuance of common stock	17,777,604	2,941,102	0
Costs associated with issuance of common stock	0	-84,550	0
Net cash provided by financing activities	17,177,604	8,856,552	10,877,715
NET DECREASE IN CASH AND CASH EQUIVALENTS	-5,498,367	-5,861,155	-2,786,402
CASH AND CASH EQUIVALENTS, BEGINNING BALANCE	7,241,852	13,103,007	15,889,409
CASH AND CASH EQUIVALENTS, ENDING BALANCE	1,743,485	7,241,852	13,103,007
CASH PAID FOR: Interest	389,133	0	0
CASH PAID FOR: Income taxes	0	0	0
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:	'	'	'
Issuance of 0, 0 and 1,519,077 shares of common stock in redemption of debt	0	0	151,909
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	13,800,000
Record note receivable discount related to Series C preferred stock	0	-1,026,809	-1,968,050
Accrued dividends on Series B and C Preferred Stock	2,364,947	2,048,007	1,432,661
Accretion of note receivable discount on Series B and C Preferred Stock	2,390,699	2,068,320	1,371,865
Issuance of 0, 0 and 3,252,066 and shares of common stock for cashless exercise of warrants	0	0	1,156,861
Issuance of 0, 0 and 636,126 and shares of common stock for exercise of options	0	0	160,162
Issuance of 0, 0 and 30,618,895 and shares of common stock for accrued liabilities	0	0	6,521,899
Issuance of 112,164,595, 330,690,982, and 126,232,953 shares of common stock for accrued settlement	6,300,000	38,427,013	18,662,916
Issuance of 0, 8,750,000, and 0 shares of common stock as commitment fee for securities purchase agreement	0	700,000	0
Conversion of Series A Preferred stock for 27,522,833 shares of common stock	1,912,837	0	0
Issuance of senior secured convertible promissory notes for settlement	$0	$6,000,000	$0

CONSOLIDATED_STATEMENTS_OF_CAS1

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
		As restated [Member]	As restated [Member]
Issuance of common stock shares for redemption of debt	0	0	1,519,077
Issuance of common stock for issuance of note receivable	0	88,580,669	88,555,916
Issuance of shares of common stock for cashless exercise of warrants	0	0	3,252,066
Issuance of shares of common stock for exercise of options	0	0	636,126
Issuance of shares of common stock for accrued liabilities	0	0	30,618,895
Issuance of shares of common stock for accrued settlement	112,164,595	330,690,982	126,232,953
Issuance of common stock as commitment fee for securities purchase agreement, shares	0	8,750,000	0
Conversion of Series A Preferred stock for shares of common stock	27,522,833	0	0

1_ORGANIZATIONAL_MATTERS

1. ORGANIZATIONAL MATTERS	12 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
1 - ORGANIZATIONAL MATTERS	'
	Organization and Nature of Business
	Advanced Cell Technology, Inc., the Company, is a biotechnology company, incorporated in the state of Delaware, focused on developing and commercializing human embryonic and adult stem cell technology in the emerging fields of regenerative medicine. Principal activities to date have included obtaining financing, securing operating facilities, and conducting research and development. 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 several 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_RESTATEMENT_OF_PREVIOUSLY_IS

2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS	12 Months Ended
	Dec. 31, 2013
Accounting Changes and Error Corrections [Abstract]	'
2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS	'
	On March 10, 2014, we concluded that our previously issued consolidated financial statements required a restatement for the years ended December 31, 2012 and 2011. We determined that a misapplication of accounting guidance relating to certain warrants and an associated full-ratchet anti-dilution feature that was included in these warrants occurred. We subsequently concluded that we had an error with our stock option compensation accounting as a result of having inadequate authorized, unissued shares available for our outstanding options in certain periods. As a result of these errors we determined that our financial statements for the following periods (the “Applicable Periods”) required a restatement and could no longer be relied upon: the fiscal years ended December 31, 2009, December 31, 2010, December 31, 2011 and December 31 2012; each quarterly period in 2011 and 2012; and the first three quarterly periods in its fiscal year ended December 31, 2013.
	Warrant Accounting Issue
	Two separate warrant agreements entered into in September 2005 contained a full ratchet, anti-dilution feature which entitled the holders to automatic adjustments in the number and purchase price of their shares, if the Company issued lower-priced shares between May 1, 2005 and January 15, 2009, the “pricing period”. From the original date of the warrant until the exercise of the warrants in September 2006, the anti-dilution embedded derivative feature was properly accounted for and recorded at its fair value. From the date of exercise through the end of the pricing period, the full ratchet feature remained in effect but was not accounted for or recorded at its fair value, which resulted in an accounting error. In determining the proper accounting, management performed a valuation of this full ratchet embedded derivative using a Monte Carlo simulation model. The results of the valuation and analysis through SAB 99 criteria on materiality, led management to conclude that a restatement for any periods prior to 2009 was not necessary.
	Management further determined that as of the end of the pricing period an adjustment to the shares and purchase price of the shares should have taken place per the full ratchet anti-dilution feature of the agreement. As the matter went to litigation this contractual obligation was never settled and became fixed at 63.2 million shares with a floor price of $0.06. This unsettled warrant contractual obligation should have been recorded from the end of the pricing period until settlement with accounting treatment, under ASC 815, requiring mark-to-market adjustments at each reporting date. Management also continues to evaluate the application of ASC 450, Contingencies, for the year ended December 31, 2013, as it relates to the ongoing, previously disclosed, legal dispute between the Company and the warrant holders.
	Management analyzed the resulting impact on the financial statements through a SAB 99 analysis. The cumulative impact from 2009 through the third quarter of 2013 resulted in an additional net loss of approximately $1.3 million and an increase to liabilities of approximately $1.3 million. Due to the resulting financial statement impact within the years impacted, the Company has determined it is necessary to restate its financial statements for the Applicable Periods.
	Stock Option Compensation Issue related to inadequate authorized and unissued shares to settle share based awards in shares
	The Company examined periods being restated for the warrant liability issue to determine if authorized, unissued share availability was an issue in relation to instruments that have share based settlement requirements. Through this analysis it was determined that stock options were impacted in certain periods while other instruments such as warrants, convertible debt and preferred stock already had liability classification and therefore would not be impacted by inadequate authorized, unissued shares available.
	It was determined that in Q1 2009, Q2 2009 and Q4 2011 options outstanding were impacted by the lack of authorized, unissued shares available. It was further determined that the date in which committed shares exceeded unauthorized was February 9, 2009 and that shortage of available shares ran through September 10, 2009, when additional authorized shares were approved. As for 2011, the share issue began on November 2, 2011 and ran through January 24, 2012, when additional authorized shares were approved.
	As per the accounting requirements of ASC 718, the inadequate share issue caused the accounting to change from equity based to liability based accounting, with the vested options to be measured at fair value as a liability until such time as adequate shares were approved and the accounting for the stock compensation would revert back to equity based accounting.
	This accounting error in treating the stock compensation as equity throughout these periods with inadequate authorized unissued shares, led the Company to re-measure all stock options impacted during these periods to effect the proper accounting treatment.
	Management analyzed the resulting impact on the financial statements through a SAB 99 analysis. The cumulative impact from 2009 through the third quarter of 2013 resulted in a reduction of the net loss of approximately $0.3 million and a decrease to additional-paid-in-capital of approximately $.3 million. Due to the resulting financial statement impact within the years impacted, the Company has determined it is necessary to restate its financial statements for the Applicable Periods.
	The following tables summarize the effects of the restatement and presentation reclassifications on our previously issued consolidated financial statements:
	Summary of increases (decreases) in Net Loss for the years ended December 31, 2012 and 2011
		December 31,
		2012			2011
	Net loss, as previously reported	$	(28,526,261	)	$	(72,795,119	)
	Net adjustments
	Research and development		(3,124,100	)		199,465
	General and administrative expenses		(980,636	)		3,589,750
	Adjustments to fair value of unsettled warrant obligation		(1,953,118	)		13,813,101
	Net loss, restated	$	(34,584,115	)	$	(55,192,803	)
	Basic loss per share:
	Net loss, as previously reported	$	(0.01	)	$	(0.05	)
	Net adjustments
	Research and development		0			0
	General and administrative expenses		(0.01	)		0
	Adjustments to fair value of unsettled warrant obligation		(0.00	)		0.02
	Net loss, restated	$	(0.02	)	$	(0.03	)
	Diluted loss per share:
	Net loss, as previously reported	$	(0.01	)	$	(0.05	)
	Net adjustments
	Research and development		0			0
	General and administrative expenses		(0.01	)		0
	Adjustments to fair value of unsettled warrant obligation		(0.00	)		0.02
	Net loss, restated	$	(0.02	)	$	(0.03	)
	Weighted average shares used in computing net loss per share:
	Basic		2,086,619,741			1,582,095,095
	Diluted		2,086,619,741			1,582,095,095
	Restatement adjustments on our Accumulated deficit as of January 1, 2011
		Amount
	Accumulated deficit, January 1, 2011, as previously reported	$	(180,949,523	)
	Restatement adjustments:
	Adjustments to Additional Paid in Capital for tainted shares		1,064,499
	Adjustments to fair value of unsettled warrant obligation		(13,145,436	)
	Accumulated deficit, January 1, 2011, as restated	$	(193,030,460	)
	Consolidated Balance Sheet impact as of December 31, 2012
		As of December 31, 2012
		As Previously Reported			Adjustments			As Restated
	Assets
	Current assets:
	Cash and cash equivalents	$	7,241,852		$	–		$	7,241,852
	Grants receivable		96,425			–			96,425
	Deferred royalty fees, current portion		82,435			–			82,435
	Prepaid expenses		132,044			–			132,044
	Total current assets		7,552,756			–			7,552,756
	Property and equipment, net		175,256			–			175,256
	Deferred royalty fees, less current portion		170,216			–			170,216
	Deposits		29,856			–			29,856
	Deferred costs, net		568,458			–			568,458
	Total assets	$	8,496,542		$	–		$	8,496,542
	Liabilities and Stockholders’ Deficit
	Current liabilities:
	Accounts payable	$	2,956,743		$	–		$	2,956,743
Accrued expenses		3,210,908			–			3,210,908
Accrued settlement		6,807,891			–			6,807,891
Convertible promissory notes, current portion		256,850			–			256,850
Senior secured convertible promissory notes, current portion		2,110,000			–			2,110,000
Embedded conversion option liabilities, current portion		460,668			–			460,668
Unsettled warrant obligation		–			3,791,953			3,791,953
Loss contingency accrual		6,176,787			(2,506,500	)		3,670,287
Deferred revenue, current portion		224,935			–			224,935
Total current liabilities		22,204,782			1,285,453			23,490,235
Senior secured convertible promissory notes, less current portion		3,165,000			–			3,165,000
Embedded conversion option liabilities, less current portion		507,033			–			507,033
Warrant and option derivative liabilities		972,381			–			972,381
Deferred revenue, less current portion		1,907,574			–			1,907,574
Total liabilities		28,756,770			1,285,453			30,042,223
Series A-1 redeemable preferred stock		1,598,533			–			1,598,533
Stockholders' Deficit:
Preferred stock, Series B		1			–			1
Preferred stock, Series C		2			–			2
Common stock		2,232,721			–			2,232,721
Additional paid-in capital		289,842,597			(748,978	)		289,093,619
Promissory notes receivable, net		(31,622,696	)		–			(31,622,696	)
Accumulated deficit		(282,311,386	)		(536,475	)		(282,847,861	)
Total stockholders' deficit		(21,858,761	)		(1,285,453	)		(23,144,214	)
Total liabilities and stockholders' deficit	$	8,496,542		$	–		$	8,496,542
Consolidated Statement of Operations impact for the year ended December 31, 2012
	For the Year Ended December 31, 2012
	As Previously Reported			Adjustments			As Restated
Revenue	$	466,487		$	–		$	466,487
Cost of revenue		117,436			–			117,436
Gross profit		349,051			–			349,051
Operating expenses:
Research and development		11,034,836			3,124,100			14,158,936
General and administrative expenses		10,452,230			980,636			11,432,866
Total operating expenses		21,487,066			4,104,736			25,591,802
Loss from operations		(21,138,015	)		(4,104,736	)		(25,242,751	)
Non-operating income (expense):
Interest income		15,581			–			15,581
Interest expense and late fees		(1,104,602	)		–			(1,104,602	)
Finance gain (cost)		(3,671,970	)		(3,343,500	)		(7,015,470	)
Gain (loss) on disposal of fixed assets		(17,138	)		–			(17,138	)
Fines and penalties		(3,500,000	)		–			(3,500,000	)
Adjustments to fair value of unsettled warrant obligation		–			1,390,382			1,390,382
Adjustments to fair value of derivatives		889,883			–			889,883
Total non-operating expense		(7,388,246	)		(1,953,118	)		(9,341,364	)
Loss before provision for income tax		(28,526,261	)		(6,057,854	)		(34,584,115	)
Provision for income tax		–			–			–
Net loss	$	(28,526,261	)	$	(6,057,854	)	$	(34,584,115	)
Loss per share:
Basic	$	(0.01	)	$	(0.01	)	$	(0.02	)
Diluted		(0.01	)		(0.01	)		(0.02	)
Weighted average shares outstanding:
Basic		2,086,619,741			2,086,619,741			2,086,619,741
Diluted		2,086,619,741			2,086,619,741			2,086,619,741
Consolidated Statement of Operations impact for the year ended December 31, 2011
	For the Year Ended December 31, 2011
	As Previously Reported			Adjustments			As Restated
Revenue	$	506,419		$	–		$	506,419
Cost of revenue		343,950			–			343,950
Gross profit		162,469			–			162,469
Operating expenses:
Research and development		9,953,224			(199,465	)		9,753,759
General and administrative expenses		11,025,459			(3,589,750	)		7,435,709
Loss on settlement of litigation		294,144			–			294,144
Total operating expenses		21,272,827			(3,789,215	)		17,483,612
Loss from operations		(21,110,358	)		3,789,215			(17,321,143	)
Non-operating income (expense):
Interest income		35,114			–			35,114
Interest expense and late fees		(1,510,693	)		–			(1,510,693	)
Finance gain (cost)		(60,834,170	)		5,850,000			(54,984,170	)
Loss attributable to equity method investments		(820,000	)		–			(820,000	)
Adjustments to fair value of unsettled warrant obligation		–			7,963,101			7,963,101
Adjustments to fair value of derivatives		11,444,988			–			11,444,988
Total non-operating expense		(51,684,761	)		13,813,101			(37,871,660	)
Loss before provision for income tax		(72,795,119	)		17,602,316			(55,192,803	)
Provision for income tax		–			–			–
Net loss	$	(72,795,119	)	$	17,602,316		$	(55,192,803	)
Loss per share:
Basic	$	(0.05	)	$	0.02		$	(0.03	)
Diluted		(0.05	)		0.02			(0.03	)
Weighted average shares outstanding:
Basic		1,582,095,095			1,582,095,095			1,582,095,095
Diluted		1,582,095,095			1,582,095,095			1,582,095,095
Consolidated Statement of Stockholders’ Deficit Impact
In addition to the effects on the consolidated balance sheets as of December 31, 2012, and consolidated statements of operations for the years ended December 31, 2012 and 2011, discussed above, the restatement affected the consolidated statements of stockholders’ deficit as of December 31, 2012 and 2011. Stockholders’ deficit as of January 1, 2011, is $36,798,526 as restated, compared to $23,653,090 as previously reported.
The following table sets forth the effects of the restatement on our consolidated stockholders’ deficit as of December 31, 2012 and 2011:
Consolidated Statement of Stockholders’ Deficit Impact
	For the Year Ended December 31,
	2012			2011
Stockholders’ deficit, as previously reported	$	(21,858,761	)	$	(46,123,844	)
Effect of restatement adjustment on net loss for the current period		(6,057,854	)		17,602,316
Adjustment to additional paid-in capital for the current period		(748,978	)		(7,953,597	)
Cumulative adjustment to accumulated deficit		5,521,379			(12,080,937	)
Total restatement adjustments		(1,285,453	)		(2,432,218	)
Stockholders’ deficit, as restated	$	(23,144,214	)	$	(48,556,062	)
Consolidated Statement of Cash Flows Impact
The following table includes selected information from our consolidated statements of cash flows presenting previously reported and restated cash flows, for the years ended December 31, 2012 and 2011:
Consolidated Statement of Cash Flows Impact
	For the Year Ended December 31,
	2012						2011
	As Previously Reported			As Restated			As Previously Reported			As Restated
Net loss	$	(28,526,261	)	$	(34,584,115	)	$	(72,795,119	)	$	(55,192,803	)
Stock based compensation		3,691,149			7,795,885			3,856,501			67,286
Adjustments to fair value of unsettled warrant obligation		–			(1,390,382	)		–			(7,963,101	)
Non-cash financing costs		3,671,970			7,015,470			60,834,170			54,984,170
Net cash used in operating activities		(14,606,357	)		(14,606,357	)		(13,627,287	)		(13,627,287	)

3_SUMMARY_OF_SIGNIFICANT_ACCOU

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

'

3 - 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 accounting principles generally accepted in the United States of America, 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.

The accompanying consolidated financial statements have been prepared in conformity with GAAP which contemplate continuation of the company as a going concern. However, as of December 31, 2013, the Company has an accumulated deficit of $313.8 million. This and other factors, such as the Company’s cash balance, raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon many factors, including the Company’s ability to raise additional capital in a timely manner, which management plans to do. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Principles of Consolidation — The accounts of the Company and its wholly-owned subsidiary Mytogen, Inc., or Mytogen, are included in the accompanying consolidated financial statements. Any 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 accounting principles generally accepted in the United States 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 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. Actual results could differ from those estimates.

Reclassifications — Certain prior period financial statement balances have been reclassified to conform to the current period presentation.

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 December 31, 2013, and 2012, the Company had deposits in excess of federally-insured limits totaling $1,668,232, and $5,147,037 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 years ended December 31, 2013, 2012 and 2011 , the Company recorded as a reduction in research and development costs, $160,054, $320,112 and $68,639, 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

Capital leases

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 4). 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 December 31, 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 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 certain warrant derivative liabilities. 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 certain embedded conversion options and warrant and option derivative liabilities.

The Company estimates the fair value of the embedded conversion option associated with its 8% convertible debentures using a binomial lattice, 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 beneficial conversion features because there are no observable inputs available with respect to the fair value.

The binomial lattice relies on the following Level 3 inputs: (1) expected volatility of our common stock; (2) potential discount for illiquidity of large blocks of our common stock, 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 may 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 our 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.

At December 31, 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

31-Dec-13

Description

31-Dec-13

Using Fair Value Hierarchy

Level 1

Level 2

Level 3

Warrant and option derivative liabilities

$

284,799

$

–

–

284,799

Embedded conversion option liabilities

663,000

–

663,000

Unsettled warrant obligation

3,899,391

3,899,391

Total

$

4,847,190

$

3,899,391

–

947,799

F-15

At December 31, 2012, 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

31-Dec-12

Description

31-Dec-12

Using Fair Value Hierarchy

Level 1

Level 2

Level 3

Warrant and option derivative liabilities

$

972,381

$

–

–

972,381

Embedded conversion option liabilities

967,701

–

122,701

845,000

Unsettled warrant obligation

3,791,953

3,791,953

Total

$

5,732,035

$

3,791,953

122,701

1,817,381

The following tables reconcile 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

(182,000

)

Balance at December 31, 2013

$

663,000

Warrant and Option Derivative Liabilities

Balance at December 31, 2012

$

972,381

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

(687,582

)

Balance at December 31, 2013

$

284,799

Gains and losses included in earnings for the twelve months ended December 31, 2013 are reported as follows:

Adjustment to

Fair Value of

Derivatives

Total gain included in earnings

$

182,000

Warrant and Option Derivative Liabilities

Total gain included in earnings

$

687,582

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

Fair Value at

December 31,

Valuation

Description

2013

Technique

Unobservable Input

Value

Embedded conversion option liability

663,000

Binomial Lattice Model

Expected volatility of the Company's common stock

57%

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

6.0% to 24.1%

Discount rate for contractual debt principal and interest payments

20.00%

Fair Value at

December 31,

Valuation

Description

2013

Technique

Unobservable Input

Value

Warrant and Option derivative liabilities

284,799

Black Scholes Model

Expected volatility of the Company's common stock

55% - 150%

For the years ended December 31, 2013, 2012 and 2011 the Company recognized a gain of $493,241, $889,883, and $11,444,988, 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 $224,985, $466,487, and $506,419 in license fee revenue for the years ended December 31, 2013, 2012 and 2011, respectively, in its consolidated statements of operations, and the remainder of the license fees have been accrued in deferred revenue at December 31, 2013 and 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 118,278,611 options outstanding as of December 31, 2013.

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 — Net loss per share is calculated in accordance with the ASC 260-10, “Earnings Per Share.” Basic net loss-per-share is based upon the weighted average number of common shares outstanding. Diluted net loss-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.

At December 31, 2013, 2012 and 2011, approximately 197,532,261, 235,989,033, and 119,000,000 potentially dilutive shares, respectively, were excluded from the shares used to calculate diluted net loss per share as their inclusion would be anti-dilutive.

Concentrations and Other Risks — Currently, the Company’s revenues are concentrated from a small number of license arrangements. The following table shows the Company’s concentrations of its revenue from those license arrangements comprising greater than 10% of total revenue for the years ended December 31, 2013, 2012 and 2011.

Years Ended December 31,

2013

2012

2011

Exeter Life Sciences, Inc.

*

*

24%

START Licensing, Inc.

*

*

13%

International Stem Cell Corporation

25%

52%

15%

CHA Biotech and SCRMI

58%

28%

26%

Lifeline

*

14%

13%

Embryone Sciences

12%

*

*

*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. Acts of God could also adversely affect the Company’s business.

Recent Accounting Pronouncements

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This new guidance is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on consolidated results of operations, financial condition, or liquidity.

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulative Other Comprehensive Income (ASU 2013-02), which replaces the presentation requirements for reclassifications out of accumulated other comprehensive income in ASU 2011-05 and ASU 2011-12. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income if the amount reclassified is required to be reclassified to net income in its entirety. The adoption of this standard is not expected to have a material impact on consolidated results of operations, financial condition, or liquidity.

In July 2012, the FASB issued ASU 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment." This ASU simplifies how entities test indefinite-lived intangible assets for impairment which improve consistency in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in the previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, early adoption is permitted. The adoption of this standard did not have a material impact on the consolidated results of operations, financial condition, or liquidity.

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.

4_INVESTMENT_IN_JOINT_VENTURE

4. INVESTMENT IN JOINT VENTURE	12 Months Ended
	Dec. 31, 2013
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]	'
4 - 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., or 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, and 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 $29,412, $29,412 and $29,412 in license fee revenue for the years ended December 31, 2013, 2012 and 2011, respectively, in its accompanying consolidated statements of operations, and the balance of unamortized license fee of $351,715 and $381,127 is included in deferred revenue in the accompanying consolidated balance sheets at December 31, 2013 and 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. The Company is obligated to meet a minimal research spending requirement of $6.75 million by July 31, 2014 in order to maintain its exclusive license, up to the point of filing an investigational new drug for a therapeutic product. Intellectual property rights created by the Company in the course of our 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. Pursuant to the agreement, the Company paid $820,000 to SCRMI which is recorded to “losses attributable to equity method investments.” 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 years ended December 31, 2013, 2012 and 2011:
		Years Ended December 31,
		2013		2012		2011
	Current assets	$	268,124	$	220,347	$	194,349
	Noncurrent assets	$	1,333,201	$	1,281,739	$	1,082,778
	Current liabilities	$	292,770	$	297,998	$	294,469
	Noncurrent liabilities	$	1,875,554	$	2,167,670	$	2,459,785
	Net revenue	$	292,116	$	292,116	$	417,382
	Net income (loss)	$	396,583	$	513,545	$	(574,713	)

5_PROPERTY_AND_EQUIPMENT

5. PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'
5 - PROPERTY AND EQUIPMENT	'
	Property and equipment consisted of the following at December 31, 2013 and 2012:
		Years Ended December 31,
		2013			2012
	Machinery & equipment (1)	$	1,086,800		$	907,740
	Computer equipment		49,707			32,986
	Office furniture		38,783			6,684
	Leasehold improvements (1)		559,969			169,572
			1,735,259			1,116,982
	Accumulated depreciation		(981,683	)		(941,726	)
	Property and equipment, net	$	753,576		$	175,256
	-1	The 2013 balances include approximately $125,000 in machinery & equipment and $339,000 in leasehold improvements that were not yet placed in service at December 31, 2013 and therefore had not started being depreciated as of that date.
	Depreciation expense for the years ended December 31, 2013, 2012 and 2011 was $93,507, $58,637, and $67,161, respectively.

6_ACCRUED_SETTLEMENT

6. ACCRUED SETTLEMENT	12 Months Ended
	Dec. 31, 2013
Accrued Settlement	'
6 - ACCRUED SETTLEMENT	'
			Years Ended December 31,
			2013				2012
	SEC civil action		$	4,086,619			$	–
	CAMOFI Master LDC			–				6,807,891
			$	4,086,619			$	6,807,891
	CAMOFI Master LDC
	CAMOFI Master LDC and CAMZHN Master LDC (the "CAMOFI Parties") filed their Complaint on October 13, 2011. In their Complaint, the CAMOFI Parties argue that as a result of the transactions between the Company and JMJ, Gemini Master Fund, Ltd. and Midsummer Investment, Ltd. respectively, the exercise prices in their Warrants and debentures should have been reduced. Consequently, the CAMOFI Parties argue 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. The Settlement Agreement relates to the lawsuit between the CAMOFI Parties, as plaintiffs, and the Company, as defendant, in the Supreme Court of New York, New York County (the “Court”), docket number 652816/2011, in which the CAMOFI Parties claim that the conversion price of certain notes and the exercise price of certain warrants held by the Settling Parties should have been adjusted as a result of certain transactions between the Company and JMJ Financial, Inc. during 2010.
	Pursuant to the Settlement Agreement, and subject to Court approval, the Company agreed, in exchange for dismissal of the pending lawsuit with prejudice and a mutual release of all claims, 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 CAMHZN;
		·	issue (a) to CAMOFI an Amortizing Senior Secured Convertible Debenture in the principal amount of $4,732,781 and (b) to CAMHZN 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 CAMHZN; and
		·	reimburse the CAMOFI Parties for certain of the CAMOFI Parties’ costs incurred in connection with the pending lawsuit.
	Summary of CAMOFI accrual at December 31, 2012:		Share value		$	4,500,000
			Cash Due		$	2,000,000
			Costs reimbursed		$	307,891
			Total CAMOFI		$	6,807,891
	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 Common Stock equal to 80% of the volume weighted average price (“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 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 Settling Parties. The Debentures contain certain covenants customary for debt instruments of its kind.
	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 and Mutual Release 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 CAMOFI entered into a registration rights agreement, which required the Company to register the shares of 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. As of December 31, 2013, the Company has not recorded a liability related to the registration rights agreement. (See Note 8 for further details).
	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 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 of 1934 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 expensed the $3.5 million as “fines and penalties” in the consolidated statement of operations and recorded the $3.5 million liability to “loss contingency accrual” in the consolidated balance sheet in 2012 and recorded an additional amount of approximately $586,619 in 2013, for a total accrual of $4,086,619 at December 31, 2013.
	In December 2013, the Company settled the civil action. Under the terms of the settlement accepted by the SEC, the Company consented to entry of judgment under which it neither admits nor denies liability and has agreed to disgorgement of $3.5 million in proceeds from the transactions in question. In addition, the Company will pay approximately $587,000 in pre-judgment interest. The total amount due, approximately $4.1 million, will be paid over six equal quarterly installments. The first installment was placed into escrow in July 2013 and was applied immediately to the aggregate amount due. The next installment will be due in late April 2014. In addition, the settlement permanently restrains and enjoins the Company from violations of Sections 5(a) and 5(c) of the Securities Act, Section 13(a) of the Exchange Act and Rule 13a-11 under the Exchange Act. The settlement remains subject to court approval.
	Midsummer Investment, Ltd
	On August 9, 2011, the Company entered into a Settlement Agreement and Mutual Release, or Settlement Agreement, with Midsummer Investment, Ltd and Midsummer Small Cap Master, Ltd. (collectively, “Midsummer”). Pursuant to the Settlement Agreement, upon tender by Midsummer to the Company of warrants held by Midsummer to purchase a total of 20,319,730 shares of the Company’s common stock (the “Warrants”), and duly executed notices of exercise (deemed to occur upon execution of the Settlement Agreement), the Company, to settle errors involving warrant issuances to Midsummer, agreed to (i) deliver to Midsummer an aggregate of 36,000,000 shares of the Company’s common stock (the “Current Shares”), as an exercise of the Warrants in respect of a partial exercise of Warrants, (ii) undertake to issue 30,585,774 additional shares of the Company’s common stock (the “Future Shares”), as an exercise of the remainder of the Warrants within ten days of the date that the Company shall have sufficient authorized and unissued shares of Common Stock (“Authorized Share Increase”) which are not otherwise reserved for issuance for other purposes to enable the Company to issue all of the Future Shares and (iii) issue 3,058,577 shares of the Company’s common stock (the “Additional Future Shares”) for every calendar month elapsed between the date of delivery of the Current Shares and the date following delivery of the Future Shares. The Company and Midsummer provided mutual general releases.
	The shares were valued at $0.17 which is the share price on the date of the agreement. Per the Settlement Agreement, the Company issued 36,000,000 shares on August 12, 2011 and issued the Future Shares of 30,585,774 and the Additional Future Shares of 15,292,885 on January 31, 2012.
	No accrual was recorded at December 31, 2013 or 2012.
	Alpha Capital
	On or about September 16, 2011, Alpha Capital Anstalt (“Alpha Capital”), a Liechtenstein corporation with its principal place of business in Vaduz, Liechtenstein (“plaintiff”), filed an action against the Company in the United States District Court for the Southern District of New York, Case No. 11 CIV 6458. Plaintiff alleges that it is or was a holder of various convertible notes and warrants issued by the Company, and that by reason of certain transactions between the Company and JMJ Financial, Inc. during 2010, the exercise and conversion prices in plaintiff’s convertible notes and warrants should have been reset. Plaintiff demands a preliminary and permanent injunction directing that the Company deliver to it at least 39,514,859 shares of its common stock, as well as monetary damages in an amount to be determined at trial.
	On October 14, 2011, the United States District Court for the Southern District of New York entered an order granting plaintiff Alpha Capital's motion for a preliminary injunction and preliminary declaratory relief in the lawsuit entitled Alpha Capital Anstalt v. Advanced Cell Technology, Inc., Case No. 11 CIV 6458 (S.D.N.Y. filed Sept. 16, 2011). In its motion, Alpha Capital sought an order directing the Company to deliver to it at least 39,514,859 shares of its common stock in accordance with the terms of its warrants and convertible promissory notes. The court's October 14, 2011 order directed the Company to hold in escrow 39,514,859 shares of its common stock pending the entry of a preliminary injunction, and directed Alpha Capital to submit a proposed form of order to the court by October 27, 2011. On November 1, 2011, we issued the 39,514,859 shares to Alpha Capital.
	On November 23, 2011, the Company answered Alpha Capital’s Complaint and asserted affirmative defenses. On December 12, 2011, the Company and Alpha submitted a Civil Case Management Plan and Scheduling Order.
	On September 11, 2012, the Company entered into a settlement agreement (the “Settlement Agreement”) with Alpha Capital. Pursuant to the Settlement Agreement, and subject to Court approval, the Company agreed, in exchange for dismissal of the pending lawsuit with prejudice and a mutual release of all claims, to issue to Alpha Capital 34,285,714 shares of the Company’s common stock (the “Settlement Shares”) and pay $500,000 to Alpha Capital (the “Cash Consideration”).
	Pursuant to the Settlement Agreement, the Company and Alpha Capital filed a joint application for a hearing to determine the fairness of the transactions contemplated by the Settlement Agreement. On September 13, 2012, the Court approved the Settlement Agreement, the issuance of the Settlement Shares and the Cash Consideration.
	No accrual was recorded at December 31, 2013 or 2012.
	Black Mountain Equities
	On November 9, 2011, the United States District Court for the Southern District of New York entered an order granting plaintiff Black Mountain Equities, Inc. ("Black Mountain") motion for a preliminary injunction and preliminary declaratory relief in the lawsuit entitled Black Mountain Equities, Inc., v. Advanced Cell Technology, Inc., Case No. 11 CIV 7305, filed on October 17, 2011. In its motion, Black Mountain sought an order directing the Company to deliver to it at least 18,000,000 shares of its common stock in accordance with the terms of its warrants and convertible promissory notes. The court's November 9, 2011 order directed the Company to hold in escrow 18,000,000 shares of its common stock pending the entry of a preliminary injunction.
	On November 15, 2011, the Company issued and held in escrow the 18,000,000 shares. On December 15, 2011, the Company answered BME’s initial Complaint and asserted counterclaims, disputing BME’s contention that it was owed 18,000,000 shares. On December 29, 2011, BME filed an Amended Complaint. On January 17, 2012, the Company answered the Amended Complaint and asserted revised counterclaims. On April 9, 2012, the Company settled by agreeing to release 18,000,000 shares of common stock held in escrow and issuing an additional 800,000 shares of common stock, which were issued on May 8, 2012. On May 4, 2012, the Court approved the settlement, and the action was dismissed with prejudice.
	No accrual was recorded at December 31, 2013 or 2012.
	Cranshire Master Fund
	On December 15, 2011, the United States District Court for the Southern District of New York entered an order granting plaintiff Cranshire Capital Master Fund, Ltd.’s (“Cranshire”) motion for a preliminary injunction in the lawsuit entitled Cranshire Capital Master Fund, Ltd. v. Advanced Cell Technology, Inc., Case No. 11 CIV 8755 (S.D.N.Y. filed December 1, 2011). Cranshire asserts that as a result of the transactions between the Company and JMJ, the exercise price of its warrants should have been decreased to $.0353 and the total number of warrant shares issuable upon exercise should have been increased from 6,918,197 to 19,598,292. Based upon these figures, Cranshire asserted that its December 2010 warrant exercise should have resulted in an additional 12,680,094 shares. Cranshire asserts claims for damages, in an amount to be determined at trial, for the Company's alleged failure to deliver the shares and to provide proper notice of reduction in exercise price and conversion price. On December 2, 2011, Cranshire moved for preliminary declaratory relief and for a preliminary injunction directing the Company to deliver immediately at least 12,680,094 shares of its common stock to Cranshire. At the hearing on December 15, 2011, Cranshire changed its argument, contending that the exercise price should have been decreased to $.027 (as opposed to $.0353) and that, consequently, it was entitled to 18,000,000 shares (as opposed to 12,660,094 shares).On December 15, 2011, the court granted a preliminary injunction and directed the Company to deliver to Cranshire 10,730,265 shares of the Company's common stock.
	The Company issued the 10,730,265 shares to Cranshire on December 16, 2011. On February 24, 2012, the Company entered into an agreement with Cranshire to settle all outstanding claims against the Company. Pursuant to the agreement, the Company issued to Cranshire (1) an additional 1,949,735 of common stock, (2) plus the quotient of (x) $276,000 divided by (y) 90% of the closing price of common stock on the trading day immediately preceding the entry of the court order. The number of shares of common stock issued based on a $0.11 share price at February 24, 2012 was 4,941,605. On March 8, 2012, the Court approved the exchange agreement entered into on February 24, 2012 and the action was dismissed with prejudice.
	No accrual was recorded at December 31, 2013 or 2012.
	Global Settlement
	On December 7, 2011, the Company entered into settlement agreements with 40 holders of convertible promissory notes and warrants that were issued between 2005 and 2010. The settlement agreements relate to claims that the holders may have against the Company regarding the assertion that the conversion price of the notes and the exercise price of the warrants should have been adjusted as a result of certain transactions between the Company and JMJ Financial, Inc. during 2010. Pursuant to the settlement agreements, the Company agreed to issue an aggregate of 239,601,630 shares of common stock to the settling holders.
	At the time of settlement, the Company did not have a sufficient number of authorized but unissued shares of common stock to issue all of the shares of common stock that the Company agreed to issue to settling holders pursuant to the settlement agreements. On January 24, 2012, the Company’s shareholders approved the increase in authorized shares to 2,750,000,000. The Company issued 238,237,459 shares on January 31, 2012 and 1,364,171 shares on February 7, 2012.
	No accrual was recorded at December 31, 2013 or 2012.

7_LOSS_CONTINGENCY_ACCRUAL

7. LOSS CONTINGENCY ACCRUAL	12 Months Ended
	Dec. 31, 2013
Loss Contingency [Abstract]	'
7 - LOSS CONTINGENCY ACCRUAL	'
		Years Ended December 31,
		2013		2012
	Warrant holder litigation	$	6,228,621	$	–
	SEC civil action		–		3,500,000
	Miscellaneous settlements		203,358		170,287
		$	6,431,979	$	3,670,287
	Warrant holder litigation
	In connection with the unsettled warrant obligation (see Note 9) the holder has filed numerous lawsuits and in 2011 made a claim for approximately $28 million. In evaluating the need for a loss contingency accrual relating to the associated litigation, the Company determined that a loss was probable and the amount of loss was reasonably estimable, based on the facts and circumstances surrounding the litigation during the last quarter of 2013. The loss contingency represents the estimated number of shares to settle above a determined share amount necessary to settle the warrant share obligation plus an additional amount for potential interest charges.
	While the Company believes it has meritorious defenses against the litigation, the ultimate resolution of the matter could result in a loss of up to approximately $25 million in excess of the amount currently accrued.
	SEC civil action
	The potential loss in this SEC matter was recorded as a loss contingency in 2012 and reclassified to accrued settlement in 2013 (see Note 6).
	Miscellaneous settlements
	The Company was not able to reach settlement agreements with all of holders of convertible promissory notes and warrants that were issued between 2005 and 2010. The Company has not been contacted by the remaining holders nor has it been able to reach them for potential settlement discussions. The holders in questions held warrants which expire in June 2014. If the Company is able to negotiate with the holders it anticipates that the number of shares to be issued will be similar to the settlements that have already been finalized as of December 31, 2012.

8_CONVERTIBLE_PROMISSORY_NOTES

8. CONVERTIBLE PROMISSORY NOTES	12 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
8 - CONVERTIBLE PROMISSORY NOTES	'
	2010 JMJ Convertible Promissory Notes
	During 2010, the Company issued three convertible promissory notes to JMJ Financial, 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.
	As of December 31, 2013 and December 31, 2012 the outstanding balance of the JMJ Convertible Promissory Notes was $0, and $287,785, respectively.
	The fair value of the embedded conversion option was $0 and $122,668 as of December 31, 2013 and 2012, respectively. The decrease in the fair value of this liability was $28,134, $104,878 and $401,372 during the years ended December 31, 2013, 2012 and 2011, respectively, which was recorded through the statements of operations as an adjustment to fair value of derivatives.
	Interest expense from amortization of debt discounts related to the JMJ Convertible Promissory Notes for the years ended December 31, 2013, 2012 and 2011 was $30,935, $127,207 and $126,863, respectively.
	CAMOFI Master LDC Amortizing Secured Convertible Debenture
	On January 11, 2013, the Company entered into a Settlement Agreement Mutual Release with the CAMOFI Parties. Pursuant to the Settlement Agreement, the Company issued Debentures in the principal amount of $4,732,781 and 1,267,219 to CAMOFI and CAMHZN, respectively. The Debentures 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 the 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. 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 December 31, 2013 the Company was in compliance with the covenants of the Debentures.
	The payment due on March 31, 2013, for $600,000 was paid in cash by the Company on April 1, 2013. 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. The Company, at its option per the agreement, issued 11,881,189 shares of its common stock for the December 31, 2013 installment.
	As of December 31, 2013, the redemption dates and amounts outstanding are as follows:
	Redemption
	Date		Amount
		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
			$	3,600,000
	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 the VWAP of the ten consecutive trading days prior to the conversion date. The Debentures and the embedded beneficial conversion feature were modeled using a lattice model. The Debenture was valued at a risk-adjusted rate resulting in a value at December 31, 2013 and 2012 of $3,337,123 and $5,275,000, respectively and the fair value of the embedded beneficial conversion feature at December 31, 2013 and 2012 was valued at $663,000 and $845,000, respectively. The Company recorded a gain of $182,000 for the change in the fair value of the embedded conversion option liability for the year ended December 31, 2013
	At December 31, 2013, the Debentures could be converted into 71,423,767 shares of common stock based on a conversion price of $0.063.
	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 years ended December 31, 2013 and 2012, the Company amortized $462,123 and $0, respectively, of the debt discount and recorded it as interest expense. The unamortized discount at December 31, 2013 and December 31, 2012 was $262,877 and $725,000, respectively. The Company recorded interest expense of $388,000 for the year ended December 31, 2013 based on the contractual interest rate.

9_UNSETTLED_WARRANT_OBLIGATION

9. UNSETTLED WARRANT OBLIGATION	12 Months Ended
	Dec. 31, 2013
Unsettled Warrant Obligation	'
9. UNSETTLED WARRANT OBLIGATION	'
	The Company determined that it has an unsettled warrant obligation related to two warrant agreements entered into in 2005. The warrant agreement had anti-dilution ratchet provisions which the Company determined led to a contractual obligation, which became fixed on January 15, 2009, to issue approximately 63.2 million common shares. The Company further determined that those common shares represent a liability which should be recorded at fair value at each accounting period with changes to that fair value being recorded in earnings. Fair value is based on the share obligation multiplied by the stock price at the end of each reporting period, with a liability “floor” established, at $0.06 per share, based on the stock price at the time the ratchet provision was triggered. At December 31, 2013 and 2012 the liability has been recorded at $3,899,391 and $3,791,953, respectively. (See Note 2 “Restatement of Previously Issued Financial Statements” of Notes to Consolidated Financial Statements).

10_SERIES_A1_REDEEMABLE_CONVER

10. SERIES A-1 REDEEMABLE CONVERTIBLE PREFERRED STOCK	12 Months Ended
	Dec. 31, 2013
Series A-1 Redeemable Convertible Preferred Stock	'
10 - SERIES A-1 REDEEMABLE CONVERTIBLE PREFERRED STOCK	'
	On March 3, 2009, the Company entered into a $5 million credit facility (“Facility”) with Volation. 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 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.
	The Company is required to keep available out of its authorized but unissued shares of common stock, such number of shares sufficient to effect a conversion of all then outstanding shares of the Series A-1 redeemable convertible preferred stock.
	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 December 31, 2013 and 2012:
		December 31,		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 $43,873, $135,235 and $122,605 for the years ended December 31, 2013, 2012, and 2011, respectively, which is recorded as interest expense in the consolidated statements of operations.
	Conversion Option:
	The embedded conversion option was valued at $0 and $33 at December 31, 2013 and 2012, respectively, at fair value using the Black-Scholes model. The decrease in the fair value of the embedded conversion option liability of $33, $25,950 and $186,464 for the years ended December 31, 2013, 2012 and 2011, respectively, was recorded through the statements of operations as an adjustment to fair value of derivatives.
	Commitment fee and expenses
	As compensation for investor relations services in connection with the Series A-1 redeemable convertible preferred stock credit facility, the Company issued a consultant 24,900,000 shares of its common stock on February 9, 2009. The Company valued the issuance of these shares at $4,731,000 based on a closing price of $0.19 on February 9, 2009 and recorded the value of the shares as deferred financing costs on the date they were issued. Beginning on the date of the first draw-down on April 6, 2009 (the loan maturity date is 4 years after the initial draw-down), the Company amortizes these fees over the term of the Series A-1 redeemable convertible preferred stock facility which represents the implied term of the investor relations contract.
	The Company also incurred a non-refundable commitment fee to the holder of this convertible preferred stock facility in the amount of $250,000. The initial fee went into delinquency and was modified on October 19, 2009. (See modification section in the footnote below.)
	Beginning on the date of the first draw-down on April 6, 2009 (the loan maturity date is 4 years after the initial draw-down), the Company amortizes the deferred issuance costs ratably over the term of the Series A-1 redeemable convertible preferred stock facility.
	Interest expense from amortization of the debt discount and deferred costs for the years ended December 31, 2013, 2012 and 2011 was $117,180, $446,741 and $445,521, respectively.

11_SERIES_B_PREFERRED_STOCK

11. SERIES B PREFERRED STOCK	12 Months Ended
	Dec. 31, 2013
Disclosure Text Block Supplement [Abstract]	'
11. SERIES B PREFERRED STOCK	'
	On November 2, 2009 (“Effective Date”), the Company entered into a preferred stock purchase agreement with Optimus Life Sciences Capital Partners, LLC (“Investor” or “Optimus”). Pursuant to the purchase agreement, the Company agreed to sell, and the Investor 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 the Investor, at an exercise price per share as follows:
	On the sixth (6th) Trading Day following the Tranche Notice Date, 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 the Investor a commitment fee of $500,000, at the earlier of the closing of the first Tranche or the six month anniversary of the 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 five 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 preferred stock as payment for the commitment fee.
	During 2010, the Company delivered tranche notices to Optimus Life Sciences Capital Partners, LLC 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 $3,587,748 and $2,352,321 at December 31, 2013 and 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 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 preferred shares 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 Series A-1 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 redeemable 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 receiving 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 note is secured by freely tradable marketable securities belonging to Optimus. 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 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 December 31, 2013 and 2012.
	The value of the secured promissory notes in the consolidated balance sheet was $13,561,607 net of discounts of $654,559 and accrued interest of $716,166 at December 31, 2013, reflecting a face value of $13,500,000. 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 at December 31, 2012, also 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 years ended December 31, 2013, 2012 and 2011 the Company accreted interest on the promissory notes in the amount of $1,233,050 $1,120,623 and $1,227,173 respectively, which was recorded in accumulated deficit during the periods then ended. The Company recorded dividends on its Series B preferred stock during the years ended December 31, 2013, 2012 and 2011 of $1,235,427, 1,122,783 and $1,229,538 respectively. The accrued dividends are offset by the accretion of the note receivable discount.
	As of December 31, 2013 and 2012, 1,000 shares of Series B preferred stock were outstanding. As of December 31, 2013, the Company has drawn the entire commitment of $10,000,000.
	Below is a table showing the net settlement amount at December 31, 2013 and December 31, 2012:
		December 31,		December 31,
		2013		2012
	Face Value of Preferred Stock	$	10,000,000	$	10,000,000
	Accrued Dividends	$	3,587,748	$	2,352,321
	Redemption factor		109%		118%
	Conversion price	$	14,810,645	$	14,575,739
	Receivable	$	14,216,166	$	13,969,559
	Net settlement upon conversion	$	594,479	$	606,180

12_SERIES_C_PREFERRED_STOCK

12. SERIES C PREFERRED STOCK	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
12. 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 (the “Series C Preferred Shares”) 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 (the “Common Stock”) with an aggregate exercise price equal to 20% of the purchase price paid by Socius for the Series C Preferred Shares 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 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 Shares, 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 is 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 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 Shares. 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 shares of 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 Preferred Shares 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 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 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 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 five trading days preceding the payment date. If the Company elects to pay the Commitment Fee in shares of 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 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 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 preferred shares 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 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.
	On June 16, 2011, the Company delivered the second Series C Tranche notice to Socius for delivery of a total of 400 shares under the Series C preferred stock for funding in the amount of $4,000,000.
	On September 22, 2011, the Company delivered the third Series C Tranche notice to Socius for delivery of a total of 150 shares under the Series C preferred stock for funding in the amount of $1,500,000.
	On December 15, 2011, the Company delivered the fourth Series C Tranche notice to Socius for delivery of a total of 200 shares under the Series C preferred stock for funding in the amount of $2,000,000.
	On March 21, 2012, the Company delivered the fifth Series C Tranche notice to Socius for delivery of a total of 250 shares under the Series C preferred stock for funding in the amount of $2,500,000.
	On June 20, 2012, the Company delivered the sixth Series C Tranche notice to Socius for delivery of a total of 200 shares under the Series C preferred stock for funding in the amount of $2,000,000.
	On September 21, 2012, the Company delivered the seventh Series C Tranche notice to Socius for delivery of a total of 150 shares under the Series C preferred stock for funding in the amount of $1,500,000.
	As of December 31, 2013, the Company has drawn $17,500,000 of the $25,000,000 commitment.
	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 $2,454,853 and $1,325,333 at December 31, 2013 and 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 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:
	In accordance with the terms of the Series C preferred stock agreement, the Company issued the following notes receivable:
		·	On April 14, 2011 and associated with the first Series C Tranche notice which occurred on December 31, 2010, Socius issued to the Company a secured promissory note of $4,000,000 for 22,222,222 shares of common stock and issued a secured promissory note of $800,000 for the exercise of warrants for 4,444,444 shares of common stock.
		·	On June 16, 2011 and associated with the second Series C Tranche notice, Socius issued to the Company a secured promissory note of $4,000,000 for 21,390,374 shares of common stock and issued a secured promissory note of $800,000 for the exercise of warrants for 4,278,075 shares of common stock.
		·	On September 22, 2011 and associated with the third Series C Tranche notice, Socius issued to the Company a secured promissory note of $1,500,000 for 9,671,180 shares of common stock and issued a secured promissory note of $300,000 for the exercise of warrants for 1,934,236 shares of common stock.
		·	On December 15, 2011 and associated with the fourth Series C Tranche notice, Socius issued to the Company a secured promissory note of $2,000,000 for 20,512,821 shares of common stock and issued a secured promissory note of $400,000 for the exercise of warrants for 4,102,564 shares of common stock.
		·	On March 21, 2012 and associated with the fifth Series C Tranche notice, Socius issued to the Company a secured promissory note of $2,500,000 for 26,315,789 shares of common stock and issued a secured promissory note of $500,000 for the exercise of warrants for 5,263,158 shares of common stock.
		·	On June 20, 2012 and associated with the sixth Series C Tranche notice, Socius issued to the Company a secured promissory note of $2,000,000 for 28,490,028 shares of common stock and issued a secured promissory note of $400,000 for the exercise of warrants for 5,698,006 shares of common stock.
		·	On September 21, 2012 and associated with the seventh Series C Tranche notice, Socius issued to the Company a secured promissory note of $1,500,000 for 19,011,407 shares of common stock and issued a secured promissory note of $300,000 for the exercise of warrants for 3,802,281 shares of common stock.
	Interest on the notes accrues at 2% per year, compounding annually if the interest remains unpaid at the end of each year. The note is 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 December 31, 2013 and 2012.
	The value of the secured promissory notes as of December 31, 2013 was $20,451,788, net of discounts of $1,363,762 and accrued interest of $815,549, reflecting a face value of $21,000,000. 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 at December 31, 2012, 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 years 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 years ended December 31, 2013 and 2012, the Company accreted interest on the promissory note in the amount of $1,157,649 and $947,696, respectively, which was recorded in accumulated deficit during the periods then ended. The Company recorded dividends on its Series C preferred stock during the years ended December 31, 2013 and 2012 of $1,129,520 and $925,222, respectively. The accrued dividends are offset by the accretion of the note receivable discount.
	The Company has classified the Series C redeemable preferred stock in the equity section in its consolidated balance sheets. As of December 31, 2013 and 2012, 1,750 shares of Series C preferred stock were outstanding.
	Below is a table showing the net settlement amount at December 31, 2013 and December 31, 2012:
			December 31,			December 31,
			2013			2012
	Face Value of Preferred Stock		$	17,500,000		$	17,500,000
	Accrued Dividends		$	2,454,853		$	1,325,333
	Redemption factor			109%			118%
	Conversion price		$	21,750,790		$	22,213,893
	Receivable		$	21,815,550		$	21,429,666
	Net settlement upon conversion		$	(64,760	)	$	784,227

13_WARRANT_SUMMARY

13. WARRANT SUMMARY	12 Months Ended
	Dec. 31, 2013
Warrants and Rights Note Disclosure [Abstract]	'
13 - WARRANT SUMMARY	'
	Warrant Activity
	A summary of warrant activity for the years ended December 31, 2013 and 2012 is presented below:
							Weighted
					Weighted		Average		Aggregate
					Average		Remaining		Intrinsic
		Number of			Exercise		Contractual		Value
		Warrants			Price $		Life (in years)		(000) $
	Outstanding, December 31, 2011		21,757,421			0.18		2.88
	Granted		14,763,445			0.081
	Exercised		(14,763,445	)		0.081
	Forfeited/Canceled		–			–
	Outstanding, December 31, 2012		21,757,421			0.18		1.88
	Granted		–			–
	Exercised		–			–
	Forfeited/Canceled		(13,927,538	)		0.13
	Outstanding, December 31, 2013		7,829,883			0.28		1.82		–
	Exercisable, December 31, 2013		7,829,883			0.28		1.82		–
	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 December 31, 2013:
			Warrants Outstanding and Exercisable
						Weighted		Weighted
						Average		Average
	Exercise		Number			Remaining		Exercise
	Price $		of Shares			Life (Years)		Price $
	.10 - .11		3,239,247			0.93		0.1
	.20 - .30		1,630,000			2		0.25
	.38-.39		1,330,636			3.57		0.39
	.40-.45		815,000			2		0.45
	0.7		815,000			2		0.7
			7,829,883

14_STOCKHOLDERS_DEFICIT_TRANSA

14. STOCKHOLDERS' DEFICIT TRANSACTIONS	12 Months Ended
	Dec. 31, 2013
Equity [Abstract]	'
14 - STOCKHOLDERS' DEFICIT TRANSACTIONS	'
	On September 19, 2012, the Company entered into a 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 SEC (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.
	During the twelve months ended December 31, 2013, Lincoln Park purchased 253,260,000 shares of common stock for cash proceeds of $17,777,604.
	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, CAMOFI converted $600,000 in Debentures for 9,790,976 shares of common stock. On December 31, 2013 the Company exercised its option to make settlement in shares and issued 11,881,189 to CAMOFI as consideration for the December 31, 2013 $600,000 Debenture payment.
	During the twelve months ended December 31, 2013, the Company issued various outside board members 5,453,910 shares of common stock valued at $453,213 as compensation for board services.
	During the twelve months ended December 31, 2013, the Company issued 9,142,858 shares of common stock valued at $1,309,140 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.
	On October 22, 2013, at the Annual Meeting of the Company’s Shareholders, the Company’s shareholders approved an amendment to the Certificate of Incorporation of the Company to effect a reverse stock split of the Company’s common stock, par value $0.001 per share, at a ratio not less than one-for-thirty and not greater than one-for-one hundred, and reduce the number of authorized shares of the Company’s common stock in the same proportion as the reverse split, with the exact ratio to be set within such range in the discretion of the Board of Directors without further approval or authorization of the Company’s shareholders, provided that the Board of Directors determines to effect the reverse stock split and proportional reduction in authorized shares of common stock and such amendment is filed with the Secretary of State of Delaware no later than September 30, 2014.
	During the Annual Meeting, the stockholders also 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.
	Effective July 1, 2011, the Company entered into an amended and restated employment agreement with Gary Rabin. Per the agreement, the Company agreed to issue 10,000,000 shares of restricted stock which vests in equal installments on the last day of each calendar quarter commencing on July 31, 2011 and ending on December 31, 2013. During the year ended December 31, 2012, the Company issued 4,000,000 shares of common stock pursuant to the agreement for a total of 6,000,000 shares issued through December 31, 2012. During the year ended December 31, 2013 the Company issued 4,000,000 shares of common stock pursuant to the agreement for a total of 10,000,000 shares which have been issued to date. The Company valued the 10,000,000 shares at $0.185 per share for a value of $1,850,000 which will be amortized over 30 months. During the years ended December 31, 2013, 2012, and 2011 the Company recorded $740,000, $740,000 and $370,000 as payroll expense in the consolidated statements of operations.
	On August 8, 2011, the Company entered into a new employment agreement with Robert Lanza. Per the agreement, the Company agreed to issue 15,000,000 shares of restricted stock with 6,000,000 shares vesting immediately and the remaining 9,000,000 shares vesting over a 21 months period beginning on January 31, 2012. The agreement had an end date of September 30, 2013. During the year ended December 31, 2012, the Company issued 5,142,857 shares of common stock pursuant to the agreement. As of December 31, 2012, 11,142,857 shares had been issued. Through the nine months ended September 30, 2013 the Company issued the remaining 3,857,143 shares per the agreement. The Company valued the original 15,000,000 shares at $0.1571 per share, for a value of $2,356,500 which was amortized through September 30, 2013. On November 8, 2013 the Company and Mr. Lanza agreed to extend the employment agreement through December 31, 2013 and issue an additional 1,285,714 shares. The additional 1,285,714 shares were valued at $0.062 per share, for a value of $79,714, which was amortized through December 31, 2013. During the years ended December 31, 2013, 2012 and 2011 the Company recorded $569,140, $652,568, and $1,214,504 as payroll expense in the accompanying consolidated statements of operations.

15_STOCKBASED_COMPENSATION

15. STOCK-BASED COMPENSATION	12 Months Ended
	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
15 - STOCK-BASED COMPENSATION	'
	The Company determined that in certain periods in 2009 and again in Q4 2011 it did not have the required amount of authorized, unissued common shares to deliver to option holders under its stock plans. As a result, under ASC 718, Compensation - Stock Compensation, certain equity balances were adjusted and accounted for as liabilities and marked-to-market until shareholder approval for additional shares to cover outstanding stock options occurred. In 2011 the lack of required authorized, unissued shares occurred on November 2, 2011 and shareholder approval for necessary shares to cover the outstanding option pool took place on January 24, 2012. As a result at that time in 2012 the stock options were considered equity classified share compensation. See Note 2, “Restatement of Previously Issued Consolidated Financial Statements”.
	Stock Plans
											Options/Shares
			Options/Shares				Options				Available
	Stock Plan		Issued				Outstanding				For Grant
	2004 Stock Plan			2,492,000				70,000				1,215,104
	2004 Stock Plan II			1,301,161				1,071,161				–
	2005 Stock Plan			150,048,071				117,137,450				299,777,464
				153,841,232				118,278,611				300,992,568
	Stock Option Activity
	A summary of option activity for the years ended December 31, 2013, 2012, and 2011 is presented below:
											Weighted
							Weighted				Average
							Average				Remaining				Aggregate
			Number of				Exercise				Contractual				Intrinsic
			Options				Price				Life (in years)				Value
	Outstanding, December 31, 2010			48,376,119			$	0.23				7.56			$	3,825
	Granted			46,207,499				0.22
	Exercised			(2,250,000	)			0.09
	Forfeited/canceled			(533,333	)			0.1
	Outstanding, December 31, 2011			91,800,285			$	0.23				8.19			$	-
	Granted			9,872,518				0.1
	Exercised			–				–
	Forfeited/canceled			(1,000,000	)			0.12
	Outstanding, December 31, 2012			100,672,803			$	0.22				7.45			$	399
	Granted			25,510,714				0.08
	Exercised			–				–
	Forfeited/canceled			(7,904,906	)			0.14				–
	Outstanding, December 31, 2013			118,278,611			$	0.19				6.95			$	10,319
	Vested and expected to vest at December 31, 2013			116,510,015			$	0.19				6.91			$	10,319
	Exercisable, December 31, 2013			104,674,029			$	0.21				6.63			$	10,319
	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 December 31, 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 -0.079				19,980,714			$	0.07				9.48				8,647,381	$	0.07		9.35
		0.08 - 0.09				28,325,892				0.09				6.17				26,054,643		0.09		5.94
		0.10 - 0.157				26,943,829				0.14				7.6				26,943,829		0.14		7.6
		0.185 - 0.21				25,934,166				0.19				6.73				25,934,166		0.19		6.73
		0.25 - 0.45				11,071,161				0.36				6.81				11,071,161		0.36		6.81
		0.85				5,417,849				0.85				0.39				5,417,849		0.85		0.39
	$	1.35 - 2.48				605,000			$	2.02				1.87				605,000	$	2.02		1.87
						118,278,611												104,674,029
	The assumptions used in calculating the fair value of options granted using the Black-Scholes option- pricing model for options granted during the three years ended December 31, 2013 are as follows:
		December 31,			December 31,			December 31,
		2013			2012			2011
	Risk-free interest rate		0.66 – 2.17%			0.66 – .92%			0.36%
	Expected life of the options		3.90 - 6.02 years			3.90 – 5.45 years			3.05 – 3.18 years
	Expected volatility		134% -158%			149% - 158%			125%
	Expected dividend yield		0%			0%			0%
	Expected forfeitures		13%			13%			13%
	The weighted average grant-date fair value for the options granted during the years ended December 31, 2013, 2012 and 2011 was $0.07, $0.09, and $0.16, respectively.
	Stock-based compensation expense to employees and non-employees for the years ended December 31, 2013, 2012 and 2011, was $3,880,058 $7,795,885, and $67,287, respectively. The compensation expense related to the unvested options as of December 31, 2013, was $1,056,343 which will be recognized over the weighted average period of 9.33 years.
	Restricted Common Stock Activity
	Pursuant to employment agreements with Gary Rabin and Robert Lanza the Company issued shares of restricted stock. A summary of the restricted stock activity for the years ended December 31, 2013, 2012, and 2011 is presented below:
			Number of Restricted Stock Shares				Weighted Average Grant Date Fair Value ($)
	Outstanding, December 31, 2010		5,000,000				0.14
	Granted		25,000,000				0.168
	Vested		(13,000,000		)		0.164
	Forfeited/canceled		–
Unvested, December 31, 2011			17,000,000				0.17
Granted			–				–
Vested			(9,142,857	)			0.169
Forfeited/canceled			–
Unvested, December 31, 2012			7,857,143				0.171
Granted			1,285,714				0.062
Vested			(9,142,857	)			0.147
Forfeited/canceled			–
Unvested, December 31, 2013			–				–
The Company recorded compensation expense of $1,309,140, $1,392,569, and $641,904, for the years ended December 31, 2013, 2012 and 2011, respectively.

16_COMMITMENTS_AND_CONTINGENCI

16. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
16 - COMMITMENTS AND CONTINGENCIES	'
	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 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 were 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.
	Leases
	On January 29, 2010, the Company signed a lease to move from its Worcester facility to a new 10,607 square-foot facility in Marlborough, Massachusetts. The lease term is from April 1, 2010 through July 31, 2015. Monthly base rent was $13,259, $13,038, and $12,817 for 2013, 2012 and 2011, respectively. The Company amended the lease effective March 1, 2011 adding an additional 1,650 square feet with an increase in monthly rent of $1,513. On January 11, 2013 the Company added an additional 17,696 square feet at its Marlborough location with a monthly base rent amount of $21,383, with a lease term from January 2013 through March 2018.
	During 2011, the Company renewed its site in Los Angeles, California through February 28, 2013 with a monthly base rent of $2,170. In November 2012, the Company entered into a new lease agreement that became effective July 1, 2013 and terminates on June 30, 2018. The monthly rent for this space is $6,272 per month for months 1 through 12, $6,460 per month for months 13 through 24, $6,654 per month for months 25 through 36, $6,854 per month for months 37 through 48, and $7,059 per month for months 49 through 60.
	Annual minimum lease payments are as follows:
	2014	$	513,820
	2015		448,302
	2016		349,803
	2017		356,659
	2018		110,927
		$	1,779,511
	Rent expense recorded in the financial statements for the years ended December 31, 2013, 2012 and 2011 was approximately $419,347, $187,000, and $201,000 respectively.

17_INCOME_TAXES

17. INCOME TAXES	12 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
17 - INCOME TAXES	'
	The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes were as follows:
		2013			2012			2011
	Statutory federal income tax rate		-34%			-34%			-34%
	State income taxes, net of federal taxes		-6%			-6%			-6%
	Non-includable items		17%			11%			29%
	Increase in valuation allowance		23%			29%			12%
	Effective income tax rate		–			–			–
	Significant components of deferred tax assets and (liabilities) are as follows:
		2013			2012
	Deferred tax assets:
	Net operating loss carryforwards	$	54,916,539		$	49,011,399
	Depreciation		155,651			151,194
	Capitalized R&D expenses		4,142,634			1,936,824
	Deferred revenue		(167,791	)		(77,592	)
	Losses from joint venture		348,102			348,102
	Professional fees		47,558			88,658
	Charitable contributions		(20,603	)		–
	Other		4,805			–
	Reversal of unpaid liabilities		1,238,538			1,238,538
	Valuation allowance		(60,665,433	)		(52,697,123	)
	Net deferred tax asset	$	–		$	–
	The Company files income tax returns in the U.S. federal jurisdiction, and various state jurisdictions. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years before 2008.
	At December 31, 2013, the Company had federal and state net operating loss carry forwards available to offset future taxable income of approximately $131 million and $90 million respectively. These carry forwards will begin to expire in the years ending December 31, 2020 and December 31, 2014, respectively. These net operating losses are subject to various limitations on utilization based on ownership changes in the prior years under Internal Revenue Code Section 382. The Company is in the process of analyzing the impact of the ownership changes but management does not believe they will have a material impact on the Company’s ability to utilize the net operating losses in the future.
	The Company periodically evaluates the likelihood of the realization of deferred tax assets, and adjusts the carrying amount of the deferred tax assets by the valuation allowance to the extent the future realization of the deferred tax assets is not judged to be more likely than not. The Company considers many factors when assessing the likelihood of future realization of its deferred tax assets, including its recent cumulative earnings experience by taxing jurisdiction, expectations of future taxable income or loss, the carryforward periods available to the Company for tax reporting purposes, and other relevant factors.
	At December 31, 2013, based on the weight of available evidence, including cumulative losses in recent years and expectations of future taxable income, the Company determined that it was more likely than not that its deferred tax assets would not be realized and have a $60.7 million valuation allowance associated with its deferred tax assets.
	The components of income tax expense are as follows:
		2013			2012			2011
	Current federal income tax	$	–		$	–		$	–
	Current state income tax		–			–			–
	Deferred taxes		7,968,310			2,021,705			7,878,246
	Valuation allowance		(7,968,310	)		(2,021,705	)		(7,878,246	)
		$	–		$	–		$	–
	Future changes in the unrecognized tax benefit will have no impact on the effective tax rate due to the existence of the valuation allowance. The Company estimates that the unrecognized tax benefit will not change significantly within the next twelve months. The Company will continue to classify income tax penalties and interest as part of general and administrative expense in its consolidated statements of operations. There were no interest or penalties accrued as of December 31, 2013, 2012 or 2011.
	The following table summarizes the open tax years for each major jurisdiction:
	Jurisdiction	Open Tax Years
	Federal	2010 - 2012
	States	2008 - 2012

18_SUBSEQUENT_EVENTS

18. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2013
Subsequent Events [Abstract]	'
18 - SUBSEQUENT EVENTS	'
	Separation Agreement with CEO
	On January 21, 2014, the Company entered into a Separation Agreement (the “Agreement”) with Gary Rabin. Entry into the Agreement was made in connection with Mr. Rabin’s departure from his roles of Chief Executive Officer and a director of the Company.
	Pursuant to the Agreement, as consideration for a general release of claims against the Company and related parties, Mr. Rabin will receive the following:
	(a) seven (7) months of his base salary, payable in accordance with the Company’s standard payroll practices;
	and
	(b) a one-time payment of $15,000 payable on the first payroll date following the last day of the seven month severance period.
	Camofi/Camhzn Debt
	From the period January 1, 2014 through March 17, 2014, the Company received conversion notices for a total of approximately $2,400,000. The Company issued 43,373,609 shares of its common stock for these conversion notices. As a result the outstanding amount of the Camofi Senior Secured Convertible Debentures has been reduced to approximately $1,200,000.
	Lincoln Park
	From the period January 1, 2014 through March 17, 2014, the Company received $7,706,756 from the issuance of 114,287,000 shares to Lincoln Park under the purchase agreement.

19_SUMMARIZED_QUARTERLY_UNAUDI

19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Restated)	12 Months Ended
	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]	'
19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Restated)	'
	As discussed in greater detail in Note 2, Restatement of Previously Issued Consolidated Financial Statements, we determined we needed to restate our previously issued consolidated financial information for the quarterly periods ended March 31, 2013, June 30, 2013, September 30, 20013 and each of the quarterly periods in the year ended December 31, 2012 and December 31, 2013. The restatements resulted from a correction in the recognition of liabilities related to a Warrant Agreement and unsettled warrant share obligation from January 2009 and a stock compensation expense error related to inadequate authorized and unissued shares to settle share based awards.
	The following tables summarize the effects of the restatement and presentation reclassifications on our previously issued unaudited condensed consolidated financial statements:
	2013 Summary of increases (decreases) in net loss (unaudited)
		For the Quarter Ended
		31-Mar-13			30-Jun-13						30-Sep-13
		Three Months			Three Months Ended			Six Months Ended			Three Months Ended			Nine Months Ended
		Ended
	Net loss, as previously reported	$	(6,413,041	)	$	(6,611,346	)	$	(13,024,387	)	$	(5,705,122	)	$	(18,729,509	)
	Net adjustments
	Research and development (Restatement)		(106,559	)		(113,033	)		(219,592	)		(163,079	)		(382,671	)
	General and administrative expenses (Restatement)		(8,005	)		(9,524	)		(17,529	)		(8,568	)		(26,097	)
	Adjustments to fair value of unsettled warrant obligation		16,968			(160,153	)		(143,185	)		131,034			(12,151	)
	Net loss, restated	$	(6,510,637	)	$	(6,894,056	)	$	(13,404,693	)	$	(5,745,735	)	$	(19,150,428	)
	Basic loss per share:
	Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.01	)
	Net adjustments
	Research and development (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	General and administrative expenses (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Adjustments to fair value of unsettled warrant obligation		0			(0.00	)		(0.00	)		0			(0.00	)
	Net loss, restated	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.01	)
	Diluted loss per share:
	Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.01	)
	Net adjustments
	Research and development (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	General and administrative expenses (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Adjustments to fair value of unsettled warrant obligation		0			(0.00	)		(0.00	)		0			(0.00	)
	Net loss, restated	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.01	)
	Weighted average shares used in computing net loss per share:
	Basic		2,251,585,598			2,451,694,258			2,389,481,712			2,573,191,224			2,451,391,145
	Diluted		2,251,585,598			2,451,694,258			2,389,481,712			2,573,191,224			2,451,391,145
	2012 Summary of increases (decreases) in net loss (unaudited)
		For the Quarter Ended
		31-Mar-12			30-Jun-12						30-Sep-12						31-Dec-12
		Three Months			Three Months Ended			Six Months Ended			Three Months Ended			Nine Months Ended			Three Months
		Ended															Ended
	Net loss, as previously reported	$	(5,712,490	)	$	(3,959,443	)	$	(9,671,933	)	$	(8,508,251	)	$	(18,180,184	)	$	(10,346,077	)
	Net adjustments
	Research and development (Restatement)		(2,470,817	)		(217,761	)		(2,688,578	)		(217,761	)		(2,906,339	)		(217,761	)
	General and administrative expenses (Restatement)		(1,455,167	)		296,411			(1,158,756	)		103,467			(1,055,289	)		74,653
	Adjustments to fair value of unsettled warrant obligation		(2,115,996	)		229,980			(1,886,016	)		(3,749	)		(1,889,765	)		(63,353	)
	Net loss, restated	$	(11,754,470	)	$	(3,650,813	)	$	(15,405,283	)	$	(8,626,294	)	$	(24,031,577	)	$	(10,552,538	)
	Basic loss per share:
	Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
	Net adjustments
	Research and development (Restatement)		(0.01	)		(0.00	)		(0.01	)		(0.00	)		(0.00	)		(0.00	)
	General and administrative expenses (Restatement)		(0.00	)		0			0			0			(0.00	)		0
	Adjustments to fair value of unsettled warrant obligation		(0.00	)		0			0			(0.00	)		(0.00	)		(0.00	)
	Net loss, restated	$	(0.01	)	$	0		$	(0.01	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
	Diluted loss per share:
	Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
	Net adjustments
	Research and development (Restatement)		(0.01	)		(0.00	)		(0.01	)		(0.00	)		(0.00	)		(0.00	)
	General and administrative expenses (Restatement)		(0.00	)		0			0			0			(0.00	)		0
	Adjustments to fair value of unsettled warrant obligation		(0.00	)		0			0			(0.00	)		(0.00	)		(0.00	)
	Net loss, restated	$	(0.01	)	$	0		$	(0.01	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
	Weighted average shares used in computing net loss per share:
	Basic		1,942,293,307			2,076,212,012			2,010,442,657			2,122,463,857			2,048,055,615			2,193,859,375
	Diluted		1,942,293,307			2,076,212,012			2,010,442,657			2,122,463,857			2,048,055,615			2,193,859,375
	2011 Summary of increases (decreases) in net loss (unaudited)
		For the Quarter Ended
		31-Mar-11			30-Jun-11						30-Sep-11						31-Dec-11
		Three Months			Three Months Ended			Six Months Ended			Three Months Ended			Nine Months Ended			Three Months
		Ended															Ended
Net loss, as previously reported	$	(3,342,037	)	$	(4,820,149	)	$	(8,162,186	)	$	(52,521,029	)	$	(60,683,215	)	$	(12,111,904	)
Net adjustments
Research and development (Restatement)		(39,760	)		(39,760	)		(79,520	)		(84,196	)		(163,716	)		363,181
General and administrative expenses (Restatement)		359,552			376,108			735,660			2,086,161			2,821,821			767,929
Adjustments to fair value of unsettled warrant obligation		1,579,980			(126,398	)		1,453,582			6,946,172			8,399,754			5,413,347
Net loss, restated	$	(1,442,265	)	$	(4,610,199	)	$	(6,052,464	)	$	(43,572,892	)	$	(49,625,356	)	$	(5,567,447	)
Basic loss per share:
Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.03	)	$	(0.04	)	$	(0.01	)
Net adjustments
Research and development (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		0
General and administrative expenses (Restatement)		0			0			0			0			0			0
Adjustments to fair value of unsettled warrant obligation		0			(0.00	)		0.01			0			0.01			0.01
Net loss, restated	$	(0.00	)	$	0		$	(0.00	)	$	(0.03	)	$	(0.03	)	$	(0.00	)
Diluted loss per share:
Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.03	)	$	(0.04	)	$	(0.01	)
Net adjustments
Research and development (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		0
General and administrative expenses (Restatement)		0			0			0			0			0			0
Adjustments to fair value of unsettled warrant obligation		0			(0.00	)		0.01			0			0.01			0.01
Net loss, restated	$	(0.00	)	$	0		$	(0.00	)	$	(0.03	)	$	(0.03	)	$	(0.00	)
Weighted average shares used in computing net loss per share:
Basic		1,478,231,834			1,543,519,167			1,510,945,682			1,613,530,283			1,546,379,685			1,547,852,307
Diluted		1,478,231,834			1,543,519,167			1,510,945,682			1,613,530,283			1,546,379,685			1,547,852,307
2013 Quarterly Consolidated Balance Sheets (unaudited)
	As of March 31, 2013						As of June 30, 2013						As of September 30, 2013
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Assets
Current assets:
Cash and cash equivalents	$	4,111,434		$	4,111,434		$	5,464,054		$	5,464,054		$	5,452,653		$	5,452,653
Grants receivable		254,279			254,279			60,022			60,022			25,685			25,685
Deferred royalty fees, current portion		92,435			92,435			62,435			62,435			62,435			62,435
Prepaid expenses		326,517			326,517			349,319			349,319			949,065			949,065
Total current assets		4,784,665			4,784,665			5,935,830			5,935,830			6,489,838			6,489,838
Property and equipment, net		255,790			255,790			572,152			572,152			697,027			697,027
Deferred royalty fees, less current portion		155,857			155,857			138,998			138,998			123,388			123,388
Deposits		38,661			38,661			38,220			38,220			66,751			66,751
Deferred costs, net		369,773			369,773			264,693			264,693			165,298			165,298
Total assets	$	5,604,746		$	5,604,746		$	6,949,893		$	6,949,893		$	7,542,302		$	7,542,302
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	2,439,123		$	2,439,123		$	2,382,843		$	2,382,843		$	2,716,272		$	2,716,272
Accrued expenses		2,611,378			2,611,378			2,627,808			2,627,808			2,647,728			2,647,728
Convertible promissory notes, current portion		287,785			287,785			–			–			–			–
Senior secured convertible promissory notes, current portion		2,604,545			2,604,545			2,055,755			2,055,755			2,124,604			2,124,604
Embedded conversion option liabilities, current portion		505,075			505,075			234,227			234,227			235,595			235,595
Unsettled warrant obligation		–			4,404,985			–			4,961,138			–			4,506,104
Loss contingency accrual		6,859,607			3,723,107			7,871,898			4,339,398			7,528,896			4,320,396
Deferred revenue, current portion		176,622			176,622			157,872			157,872			157,872			157,872
Total current liabilities		15,484,135			16,752,620			15,330,403			16,759,041			15,410,967			16,708,571
Senior secured convertible promissory notes, less current portion		2,802,273			2,802,273			1,706,116			1,706,116			1,724,893			1,724,893
Embedded conversion option liabilities, less current portion		453,000			453,000			466,773			466,773			467,405			467,405
Warrant and option derivative liabilities		435,792			435,792			496,078			496,078			357,875			357,875
Deferred revenue, less current portion		1,868,106			1,868,106			1,828,638			1,828,638			1,789,170			1,789,170
Total liabilities		21,043,306			22,311,791			19,828,008			21,256,646			19,750,310			21,047,914
Series A-1 redeemable preferred stock		1,641,006			1,641,006			–			–			–			–
Stockholders' Deficit:
Preferred stock, Series B		1			1			1			1			1			1
Preferred stock, Series C		2			2			2			2			2			2
Common stock		2,387,937			2,387,937			2,529,495			2,529,495			2,608,116			2,608,116
Additional paid-in capital		301,443,293			300,808,879			312,706,253			312,194,396			319,606,218			319,266,008
Promissory notes receivable, net		(32,189,828	)		(32,189,828	)		(32,788,398	)		(32,788,398	)		(33,399,438	)		(33,399,438	)
Accumulated deficit		(288,720,971	)		(289,355,042	)		(295,325,468	)		(296,242,249	)		(301,022,907	)		(301,980,301	)
Total stockholders' deficit		(17,079,566	)		(18,348,051	)		(12,878,115	)		(14,306,753	)		(12,208,008	)		(13,505,612	)
Total liabilities and stockholders' deficit	$	5,604,746		$	5,604,746		$	6,949,893		$	6,949,893		$	7,542,302		$	7,542,302
2012 Quarterly Consolidated Balance Sheets (unaudited)
	As of March 31, 2012						As of June 30, 2012						As of September 30, 2012
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Assets
Current assets:
Cash and cash equivalents	$	10,778,045		$	10,778,045		$	9,862,536		$	9,862,536		$	8,254,014		$	8,254,014
Grants receivable		–			–			–			–			140,046			140,046
Deferred royalty fees, current portion		62,435			62,435			62,435			62,435			62,435			62,435
Prepaid expenses		199,262			199,262			122,712			122,712			95,464			95,464
Total current assets		11,039,742			11,039,742			10,047,683			10,047,683			8,551,959			8,551,959
Property and equipment, net		151,857			151,857			153,600			153,600			129,499			129,499
Deferred royalty fees, less current portion		217,043			217,043			201,434			201,434			185,825			185,825
Deposits		14,766			14,766			14,766			14,766			14,766			14,766
Deferred costs, net		1,175,554			1,175,554			974,661			974,661			771,560			771,560
Total assets	$	12,598,962		$	12,598,962		$	11,392,144		$	11,392,144		$	9,653,609		$	9,653,609
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	1,872,248		$	1,872,248		$	1,839,515		$	1,839,515		$	2,003,884		$	2,003,884
Accrued expenses		1,827,655			1,827,655			1,825,684			1,825,684			2,244,583			2,244,583
Convertible promissory notes, current portion		161,270			161,270			192,898			192,898			224,874			224,874
Senior secured convertible promissory notes, current portion					–						–			–			–
Embedded conversion option liabilities, current portion		–			–			186,484			186,484			160,371			160,371
Unsettled warrant obligation		–			5,498,331			–			3,918,351			–			4,822,100
Loss contingency accrual		15,474,595			11,424,595			15,347,341			12,647,341			14,653,227			11,053,227
Deferred revenue, current portion		217,333			217,333			338,617			338,617			309,901			309,901
Total current liabilities		19,553,101			21,001,432			19,730,539			20,948,890			19,596,840			20,818,940
Senior secured convertible promissory notes, less current portion					–			–			–			–			–
Embedded conversion option liabilities, less current portion		228,435			228,435			5,286			5,286			3,629			3,629
Warrant and option derivative liabilities		1,866,913			1,866,913			1,178,897			1,178,897			1,555,417			1,555,417
Deferred revenue, less current portion		2,025,978			2,025,978			1,986,510			1,986,510			1,947,042			1,947,042
Total liabilities		23,674,427			25,122,758			22,901,232			24,119,583			23,102,928			24,325,028
Series A-1 redeemable preferred stock		1,468,930			1,468,930			1,511,701			1,511,701			1,555,117			1,555,117
Stockholders' Deficit:
Preferred stock, Series B		1			1			1			1			1			1
Preferred stock, Series C		1			1			2			2			2			2
Common stock		2,073,832			2,073,832			2,112,215			2,112,215			2,191,303			2,191,303
Additional paid-in capital		271,300,678			270,372,948			277,304,154			276,297,774			285,831,971			284,939,885
Promissory notes receivable, net		(26,402,020	)		(26,402,020	)		(28,966,005	)		(28,966,005	)		(31,055,048	)		(31,055,048	)
Accumulated deficit		(259,516,887	)		(260,037,488	)		(263,471,156	)		(263,683,127	)		(271,972,665	)		(272,302,679	)
Total stockholders' deficit		(12,544,395	)		(13,992,726	)		(13,020,789	)		(14,239,140	)		(15,004,436	)		(16,226,536	)
Total liabilities and stockholders' deficit	$	12,598,962		$	12,598,962		$	11,392,144		$	11,392,144		$	9,653,609		$	9,653,609
2013 Quarterly Consolidated Statements of Operations (unaudited)
	31-Mar-13						30-Jun-13
	Three Months Ended						Three Months Ended						Six Months Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Revenue	$	87,781		$	87,781		$	58,268		$	58,268		$	146,049		$	146,049
Cost of revenue		34,359			34,359			16,859			16,859			51,218			51,218
Gross profit		53,422			53,422			41,409			41,409			94,831			94,831
Operating expenses:
Research and development		2,992,000			3,098,559			2,862,237			2,975,270			5,854,237			6,073,829
General and administrative expenses		2,825,864			2,833,869			2,643,319			2,652,843			5,469,183			5,486,712
Total operating expenses		5,817,864			5,932,428			5,505,556			5,628,113			11,323,420			11,560,541
Loss from operations		(5,764,442	)		(5,879,006	)		(5,464,147	)		(5,586,704	)		(11,228,589	)		(11,465,710	)
Non-operating income (expense):
Interest income		1,777			1,777			1,015			1,015			2,792			2,792
Interest expense and late fees		(524,189	)		(524,189	)		(370,228	)		(370,228	)		(894,417	)		(894,417	)
Finance gain (cost)		(293,120	)		336,880			(687,139	)		(291,139	)		(980,259	)		45,741
Fines and penalties		–			–			(587,147	)		(587,147	)		(587,147	)		(587,147	)
Gain on extinguishment of debt		–			–			438,587			438,587			438,587			438,587
Adjustments to fair value of unsettled warrant obligation		–			(613,032	)		–			(556,153	)		–			(1,169,185	)
Adjustments to fair value of derivatives		166,933			166,933			57,713			57,713			224,646			224,646
Total non-operating expense		(648,599	)		(631,631	)		(1,147,199	)		(1,307,352	)		(1,795,798	)		(1,938,983	)
Loss before provision for income tax		(6,413,041	)		(6,510,637	)		(6,611,346	)		(6,894,056	)		(13,024,387	)		(13,404,693	)
Provision for income tax		–			–			–			–			–			–
Net loss	$	(6,413,041	)	$	(6,510,637	)	$	(6,611,346	)	$	(6,894,056	)	$	(13,024,387	)	$	(13,404,693	)
Loss per share:
Basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
Diluted		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.01	)
Weighted average shares outstanding:
Basic		2,251,585,598			2,251,585,598			2,451,694,258			2,451,694,258			2,389,481,712			2,389,481,712
Diluted		2,251,585,598			2,251,585,598			2,451,694,258			2,451,694,258			2,389,481,712			2,389,481,712
2013 Quarterly Consolidated Statements of Operations (unaudited)
	30-Sep-13												Three Months
	Three Months Ended						Nine Months Ended						Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			31-Dec-13
Revenue	$	39,468		$	39,468		$	185,517		$	185,517		$	39,468
Cost of revenue		15,609			15,609			66,827			66,827			15,609
Gross profit		23,859			23,859			118,690			118,690			23,859
Operating expenses:
Research and development		2,898,253			3,061,332			8,285,406			8,668,077			2,896,691
General and administrative expenses		3,211,866			3,220,434			9,148,133			9,174,230			2,882,837
Change in estimate of loss on settlement of litigation		–			–			–			–			6,228,621
Total operating expenses		6,110,119			6,281,766			17,433,539			17,842,307			12,008,149
Loss from operations		(6,086,260	)		(6,257,907	)		(17,314,849	)		(17,723,617	)		(11,984,290	)
Non-operating income (expense):
Interest income		162,548			162,548			165,340			165,340			578
Interest expense and late fees		(271,021	)		(271,021	)		(1,165,438	)		(1,165,438	)		(272,146	)
Finance gain (cost)		343,002			19,002			(637,257	)		64,743			30,419
Fines and penalties		–			–			(587,147	)		(587,147	)		(375,080	)
Gain on extinguishment of debt		–			–			438,587			438,587			–
Adjustments to fair value of unsettled warrant liability		–			455,034			–			(714,151	)		606,713
Adjustments to fair value of derivatives		146,609			146,609			371,255			371,255			121,986
Total non-operating expense		381,138			512,172			(1,414,660	)		(1,426,811	)		112,470
Loss before provision for income tax		(5,705,122	)		(5,745,735	)		(18,729,509	)		(19,150,428	)		(11,871,820	)
Provision for income tax		–			–			–			–			–
Net loss	$	(5,705,122	)	$	(5,745,735	)	$	(18,729,509	)	$	(19,150,428	)	$	(11,871,820	)
Loss per share:
Basic	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.00	)
Diluted		(0.00	)		(0.00	)		(0.01	)		(0.01	)		(0.00	)
Weighted average shares outstanding:
Basic		2,573,191,224			2,573,191,224			2,451,391,145			2,451,391,145			2,592,594,262
Diluted		2,573,191,224			2,573,191,224			2,451,391,145			2,451,391,145			2,592,594,262
2012 Quarterly Consolidated Statements of Operations (unaudited)
	31-Mar-12						30-Jun-12
	Three Months Ended						Three Months Ended						Six Months Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Revenue	$	55,685		$	55,685		$	218,184		$	218,184		$	273,869		$	273,869
Cost of revenue		15,609			15,609			15,609			15,609			31,218			31,218
Gross profit		40,076			40,076			202,575			202,575			242,651			242,651
Operating expenses:
Research and development		2,440,542			4,911,359			2,068,098			2,285,859			4,508,640			7,197,218
General and administrative expenses		3,019,005			4,474,172			2,612,471			2,316,060			5,631,476			6,790,232
Total operating expenses		5,459,547			9,385,531			4,680,569			4,601,919			10,140,116			13,987,450
Loss from operations		(5,419,471	)		(9,345,455	)		(4,477,994	)		(4,399,344	)		(9,897,465	)		(13,744,799	)
Non-operating income (expense):
Interest income		5,077			5,077			4,508			4,508			9,585			9,585
Interest expense and late fees		(272,324	)		(272,324	)		(275,292	)		(275,292	)		(547,616	)		(547,616	)
Finance gain (cost)		115,827			(1,684,173	)		3,555,254			2,205,254			3,671,081			521,081
Fines and penalties		–			–			(3,500,000	)		(3,500,000	)		(3,500,000	)		(3,500,000	)
Adjustments to fair value of unsettled warrant liability		–			(315,996	)		–			1,579,980			–			1,263,984
Adjustments to fair value of derivatives		(141,599	)		(141,599	)		734,081			734,081			592,482			592,482
Total non-operating expense		(293,019	)		(2,409,015	)		518,551			748,531			225,532			(1,660,484	)
Loss before provision for income tax		(5,712,490	)		(11,754,470	)		(3,959,443	)		(3,650,813	)		(9,671,933	)		(15,405,283	)
Provision for income tax		–			–			–			–			–			–
Net loss	$	(5,712,490	)	$	(11,754,470	)	$	(3,959,443	)	$	(3,650,813	)	$	(9,671,933	)	$	(15,405,283	)
Loss per share:
Basic	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
Diluted		(0.00	)		(0.01	)		(0.00	)		(0.00	)		(0.00	)		(0.01	)
Weighted average shares outstanding:
Basic		1,942,293,307			1,942,293,307			2,076,212,012			2,076,212,012			2,010,442,657			2,010,442,657
Diluted		1,942,293,307			1,942,293,307			2,076,212,012			2,076,212,012			2,010,442,657			2,010,442,657
2012 Quarterly Consolidated Statements of Operations (unaudited)
	30-Sep-12												31-Dec-12
	Three Months Ended						Nine Months Ended						Three Months Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Revenue	$	68,184		$	68,184		$	342,053		$	342,053		$	124,434		$	124,434
Cost of revenue		15,609			15,609			46,827			46,827			70,609			70,609
Gross profit		52,575			52,575			295,226			295,226			53,825			53,825
Operating expenses:
Research and development		2,808,300			3,026,061			7,316,940			10,223,279			3,717,896			3,935,657
General and administrative expenses		2,249,818			2,146,351			7,881,294			8,936,583			2,570,936			2,496,283
Total operating expenses		5,058,118			5,172,412			15,198,234			19,159,862			6,288,832			6,431,940
Loss from operations		(5,005,543	)		(5,119,837	)		(14,903,008	)		(18,864,636	)		(6,235,007	)		(6,378,115	)
Non-operating income (expense):
Interest income		3,585			3,585			13,170			13,170			2,411			2,411
Interest expense and late fees		(278,493	)		(278,493	)		(826,109	)		(826,109	)		(278,493	)		(278,493	)
Finance gain (cost)		(2,891,600	)		(1,991,600	)		779,481			(1,470,519	)		(4,451,451	)		(5,544,951	)
Gain (loss) on disposal of fixed assets		–			–			–			–			(17,138	)		(17,138	)
Fines and penalties		–			–			(3,500,000	)		(3,500,000	)		–			–
Adjustments to fair value of unsettled warrant liability		–			(903,749	)		–			360,235			–			1,030,147
Adjustments to fair value of derivatives		(336,200	)		(336,200	)		256,282			256,282			633,601			633,601
Total non-operating expense		(3,502,708	)		(3,506,457	)		(3,277,176	)		(5,166,941	)		(4,111,070	)		(4,174,423	)
Loss before provision for income tax		(8,508,251	)		(8,626,294	)		(18,180,184	)		(24,031,577	)		(10,346,077	)		(10,552,538	)
Provision for income tax		–			–			–			–			–			–
Net loss	$	(8,508,251	)	$	(8,626,294	)	$	(18,180,184	)	$	(24,031,577	)	$	(10,346,077	)	$	(10,552,538	)
Loss per share:
Basic	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.00	)	$	(0.00	)
Diluted		(0.00	)		(0.00	)		(0.01	)		(0.01	)		(0.00	)		(0.00	)
Weighted average shares outstanding:
Basic		2,122,463,857			2,122,463,857			2,048,055,615			2,048,055,615			2,193,859,375			2,193,859,375
Diluted		2,122,463,857			2,122,463,857			2,048,055,615			2,048,055,615			2,193,859,375			2,193,859,375
2011 Quarterly Consolidated Statements of Operations (unaudited)
	31-Mar-11						30-Jun-11
	Three Months Ended						Three Months Ended						Six Months Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Revenue	$	153,688		$	153,688		$	153,688		$	153,688		$	307,376		$	307,376
Cost of revenue		22,900			22,900			281,500			281,500			304,400			304,400
Gross profit		130,788			130,788			(127,812	)		(127,812	)		2,976			2,976
Operating expenses:
Research and development		1,474,773			1,514,533			1,532,271			1,572,031			3,007,044			3,086,564
General and administrative expenses		3,197,526			2,837,974			1,951,728			1,575,620			5,149,254			4,413,594
Loss on settlement of litigation		294,144			294,144			–			–			294,144			294,144
Total operating expenses		4,966,443			4,646,651			3,483,999			3,147,651			8,450,442			7,794,302
Loss from operations		(4,835,655	)		(4,515,863	)		(3,611,811	)		(3,275,463	)		(8,447,466	)		(7,791,326	)
Non-operating income (expense):
Interest income		11,784			11,784			10,765			10,765			22,549			22,549
Interest expense and late fees		(681,710	)		(681,710	)		(272,171	)		(272,171	)		(953,881	)		(953,881	)
Finance gain (cost)		(2,625,875	)		(2,625,875	)		(245,734	)		(245,734	)		(2,871,609	)		(2,871,609	)
Loss attributable to equity method investments		–			–			–			–			–			–
Adjustments to fair value of unsettled warrant liability		–			1,579,980			–			(126,398	)		–			1,453,582
Adjustments to fair value of derivatives		4,789,419			4,789,419			(701,198	)		(701,198	)		4,088,221			4,088,221
Total non-operating expense		1,493,618			3,073,598			(1,208,338	)		(1,334,736	)		285,280			1,738,862
Loss before provision for income tax		(3,342,037	)		(1,442,265	)		(4,820,149	)		(4,610,199	)		(8,162,186	)		(6,052,464	)
Provision for income tax		–			–			–			–			–			–
Net loss	$	(3,342,037	)	$	(1,442,265	)	$	(4,820,149	)	$	(4,610,199	)	$	(8,162,186	)	$	(6,052,464	)
Loss per share:
Basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
Diluted		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.00	)
Weighted average shares outstanding:
Basic		1,478,231,834			1,478,231,834			1,543,519,167			1,543,519,167			1,510,945,682			1,510,945,682
Diluted		1,478,231,834			1,478,231,834			1,543,519,167			1,543,519,167			1,510,945,682			1,510,945,682
2011 Quarterly Consolidated Statements of Operations (unaudited)
	30-Sep-11												31-Dec-11
	Three Months Ended						Nine Months Ended						Three Months Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Revenue	$	132,805		$	132,805		$	440,181		$	440,181		$	66,238		$	66,238
Cost of revenue		16,650			16,650			321,050			321,050			22,900			22,900
Gross profit		116,155			116,155			119,131			119,131			43,338			43,338
Operating expenses:
Research and development		4,035,722			4,119,918			7,042,766			7,206,482			2,910,458			2,547,277
General and administrative expenses		2,976,219			890,058			8,125,473			5,303,652			2,899,986			2,132,057
Loss on settlement of litigation		–			–			294,144			294,144			–			–
Total operating expenses		7,011,941			5,009,976			15,462,383			12,804,278			5,810,444			4,679,334
Loss from operations		(6,895,786	)		(4,893,821	)		(15,343,252	)		(12,685,147	)		(5,767,106	)		(4,635,996	)
Non-operating income (expense):
Interest income		5,833			5,833			28,382			28,382			6,732			6,732
Interest expense and late fees		(275,378	)		(275,378	)		(1,229,259	)		(1,229,259	)		(281,434	)		(281,434	)
Finance gain (cost)		(48,197,130	)		(43,526,130	)		(51,068,739	)		(46,397,739	)		(9,765,431	)		(8,586,431	)
Loss attributable to equity method investments		(820,000	)		(820,000	)		(820,000	)		(820,000	)		–			–
Adjustments to fair value of unsettled warrant liability		–			2,275,172			–			3,728,754			–			4,234,347
Adjustments to fair value of derivatives		3,661,432			3,661,432			7,749,653			7,749,653			3,695,335			3,695,335
Total non-operating expense		(45,625,243	)		(38,679,071	)		(45,339,963	)		(36,940,209	)		(6,344,798	)		(931,451	)
Loss before provision for income tax		(52,521,029	)		(43,572,892	)		(60,683,215	)		(49,625,356	)		(12,111,904	)		(5,567,447	)
Provision for income tax		–			–			–			–			–			–
Net loss	$	(52,521,029	)	$	(43,572,892	)	$	(60,683,215	)	$	(49,625,356	)	$	(12,111,904	)	$	(5,567,447	)
Loss per share:
Basic	$	(0.03	)	$	(0.03	)	$	(0.04	)	$	(0.03	)	$	(0.01	)	$	(0.00	)
Diluted		(0.03	)		(0.03	)		(0.04	)		(0.03	)		(0.01	)		(0.00	)
Weighted average shares outstanding:
Basic		1,613,530,283			1,613,530,283			1,546,379,685			1,546,379,685			1,547,852,307			1,547,852,307
Diluted		1,613,530,283			1,613,530,283			1,546,379,685			1,546,379,685			1,547,852,307			1,547,852,307
2013 Quarterly Consolidated Statements of Cash Flows (unaudited)
	Three Months Ended March 31, 2013						Six Months Ended June 30, 2013						Nine Months Ended September 30, 2013
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(6,413,041	)	$	(6,510,637	)	$	(13,024,387	)	$	(13,404,693	)	$	(18,729,509	)	$	(19,150,428	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		17,852			17,852			37,702			37,702			64,320			64,320
Amortization of deferred charges		34,359			34,359			81,218			81,218			96,828			96,828
Amortization of deferred revenue		(87,781	)		(87,781	)		(145,999	)		(145,999	)		(185,467	)		(185,467	)
Redeemable preferred stock dividend accrual		34,069			34,069			43,873			43,873			43,873			43,873
Stock based compensation		1,018,060			1,132,624			1,793,884			2,031,005			2,650,530			3,059,298
Amortization of deferred issuance costs		198,685			198,685			303,765			303,765			403,160			403,160
Amortization of discounts		171,157			171,157			326,770			326,770			414,396			414,396
Adjustments to fair value of unsettled warrant obligation		–			613,032			–			1,169,185			–			714,151
Adjustments to fair value of derivatives		(166,933	)		(166,933	)		(224,646	)		(224,646	)		(371,255	)		(371,255	)
Shares of common stock issued for compensation		420,955			420,955			849,659			849,659			1,272,363			1,272,363
Non-cash financing costs		(389,700	)		(1,019,700	)		(128,233	)		(1,154,233	)		(128,233	)		(830,233	)
Gain on debt extinguishment		–			–			(438,587	)		(438,587	)		(438,587	)		(438,587	)
Options issued for consulting services		10,418			10,418			22,145			22,145			32,550			32,550
Changes in operating assets and liabilities:
Grants receivable		–			–			–			–			70,740			70,740
Prepaid expenses and other assets		(382,327	)		(382,327	)		(210,873	)		(210,873	)		(847,021	)		(847,021	)
Accounts payable and other liabilities		(2,742,221	)		(2,742,221	)		(1,769,780	)		(1,769,780	)		(1,759,433	)		(1,759,433	)
Net cash used in operating activities		(8,276,448	)		(8,276,448	)		(12,483,489	)		(12,483,489	)		(17,410,745	)		(17,410,745	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(98,386	)		(98,386	)		(434,598	)		(434,598	)		(586,091	)		(586,091	)
Payment of lease deposits		(8,805	)		(8,805	)		(8,364	)		(8,364	)		(36,895	)		(36,895	)
Net cash used in investing activities		(107,191	)		(107,191	)		(442,962	)		(442,962	)		(622,986	)		(622,986	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock		5,253,221			5,253,221			11,748,653			11,748,653			16,844,532			16,844,532
Repayment of senior secured convertible debentures		–			–			(600,000	)		(600,000	)		(600,000	)		(600,000	)
Net cash provided by financing activities		5,253,221			5,253,221			11,148,653			11,148,653			16,244,532			16,244,532
Net decrease in cash and cash equivalents		(3,130,418	)		(3,130,418	)		(1,777,798	)		(1,777,798	)		(1,789,199	)		(1,789,199	)
Cash and cash equivalents, beginning of period		7,241,852			7,241,852			7,241,852			7,241,852			7,241,852			7,241,852
Cash and cash equivalents, end of period	$	4,111,434		$	4,111,434		$	5,464,054		$	5,464,054		$	5,452,653		$	5,452,653
2012 Quarterly Consolidated Statements of Cash Flows (unaudited)
	Three Months Ended March 31, 2012						Six Months Ended June 30, 2012						Nine Months Ended September 30, 2012
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(5,712,490	)	$	(11,754,470	)	$	(9,671,933	)	$	(15,405,283	)	$	(18,180,184	)	$	(24,031,577	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		12,091			12,091			25,440			25,440			35,541			35,541
Amortization of deferred charges		15,609			15,609			31,218			31,218			46,827			46,827
Amortization of deferred revenue		(55,685	)		(55,685	)		(273,869	)		(273,869	)		(342,053	)		(342,053	)
Redeemable preferred stock dividend accrual		31,308			31,308			65,583			65,583			100,409			100,409
Stock based compensation		1,100,998			5,026,982			2,093,657			5,940,991			2,892,403			6,854,031
Amortization of deferred issuance costs		200,893			200,893			401,786			401,786			604,887			604,887
Amortization of discounts		40,123			40,123			80,247			80,247			120,813			120,813
Adjustments to fair value of unsettled warrant obligation		–			315,996			–			(1,263,984	)		–			(360,235	)
Adjustments to fair value of derivatives		141,599			141,599			(592,482	)		(592,482	)		(256,282	)		(256,282	)
Shares of common stock issued for compensation		421,642			421,642			840,033			840,033			–			–
Non-cash financing costs		(115,827	)		1,684,173			(3,671,081	)		(521,081	)		1,263,676			3,513,676
Gain on debt extinguishment		–			–			–			–			(779,481	)		(779,481	)
Options issued for consulting services		29,172			29,172			38,571			38,571			51,122			51,122
Changes in operating assets and liabilities:
Grants receivable		–			–			–			–			(140,046	)		(140,046	)
Prepaid expenses and other assets		41,986			41,986			118,536			118,536			145,784			145,784
Accounts payable and other liabilities		(967,204	)		(967,204	)		2,798,092			2,798,092			2,881,360			2,881,360
Net cash used in operating activities		(4,815,785	)		(4,815,785	)		(7,716,202	)		(7,716,202	)		(11,555,224	)		(11,555,224	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(9,177	)		(9,177	)		(24,269	)		(24,269	)		(10,269	)		(10,269	)
Net cash used in investing activities		(9,177	)		(9,177	)		(24,269	)		(24,269	)		(10,269	)		(10,269	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of preferred stock		2,500,000			2,500,000			4,500,000			4,500,000			6,000,000			6,000,000
Proceeds from issuance of common stock		–			–			–			–			800,000			800,000
Repayment of senior secured convertible debentures		–			–			–			–			(83,500	)		(83,500	)
Net cash provided by financing activities		2,500,000			2,500,000			4,500,000			4,500,000			6,716,500			6,716,500
Net decrease in cash and cash equivalents		(2,324,962	)		(2,324,962	)		(3,240,471	)		(3,240,471	)		(4,848,993	)		(4,848,993	)
Cash and cash equivalents, beginning of period		13,103,007			13,103,007			13,103,007			13,103,007			13,103,007			13,103,007
Cash and cash equivalents, end of period	$	10,778,045		$	10,778,045		$	9,862,536		$	9,862,536		$	8,254,014		$	8,254,014
2011 Quarterly Consolidated Statements of Cash Flows (unaudited)
	Three Months Ended March 31, 2011						Six Months Ended June 30, 2011						Nine Months Ended September 30, 2011						Year Ended December 31, 2011
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(3,342,037	)	$	(1,442,265	)	$	(8,162,186	)	$	(6,052,464	)	$	(60,683,215	)	$	(49,625,356	)	$	(72,795,119	)	$	(55,192,803	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		21,285			21,285			38,394			38,394			53,949			53,949			67,161			67,161
Amortization of deferred charges		22,900			22,900			45,800			45,800			68,700			68,700			91,600			91,600
Amortization of deferred revenue		(153,688	)		(153,688	)		(307,376	)		(307,376	)		(415,231	)		(415,231	)		(506,419	)		(506,419	)
Redeemable preferred stock dividend accrual		28,149			28,149			59,301			59,301			90,953			90,953			122,605			122,605
Stock based compensation		362,695			42,903			741,946			85,806			2,831,250			173,145			3,856,501			67,286
Amortization of deferred issuance costs		594,647			594,647			795,540			795,540			998,641			998,641			1,201,741			1,201,741
Amortization of discounts		58,913			58,913			94,022			94,022			132,736			132,736			180,172			180,172
Adjustments to fair value of unsettled warrant obligation		–			(1,579,980	)		–			(1,453,582	)		–			(3,728,754	)		–			(7,963,101	)
Adjustments to fair value of derivatives		(4,789,419	)		(4,789,419	)		(4,088,221	)		(4,088,221	)		(7,749,653	)		(7,749,653	)		(11,444,988	)		(11,444,988	)
Shares of common stock issued for services		590,438			590,438			475,900			475,900			475,900			475,900			475,900			475,900
Shares of common stock issued for compensation		–			–			423,138			423,138			2,025,658			2,025,658			2,673,960			2,673,960
Loss on settlement of litigation		294,144			294,144			294,144			294,144			294,144			294,144			294,144			294,144
Non-cash financing costs		2,625,875			2,625,875			2,871,609			2,871,609			51,068,739			46,397,739			60,834,170			54,984,170
Amortization of deferred joint venture obligations		(3,265	)		(3,265	)		–			–			–			–			(6,870	)		(6,870	)
Options issued for consulting services		664,944			664,944			769,347			769,347			794,714			794,714			834,443			834,443
Changes in operating assets and liabilities:
Grants receivable		–			–			–			–			(24,950	)		(24,950	)		–			–
Prepaid expenses and other assets		(36,999	)		(36,999	)		(344,497	)		(344,497	)		(278,248	)		(278,248	)		(241,248	)		(241,248	)
Accounts payable and other liabilities		(317,082	)		(317,082	)		(396,056	)		(396,056	)		(512,260	)		(512,260	)		734,960			734,960
Net cash used in operating activities		(3,378,500	)		(3,378,500	)		(6,689,195	)		(6,689,195	)		(10,828,173	)		(10,828,173	)		(13,627,287	)		(13,627,287	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(19,072	)		(19,072	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)
Net cash used in investing activities		(19,072	)		(19,072	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants and options		1,258,136			1,258,136			2,950,940			2,950,940			3,377,715			3,377,715			3,377,715			3,377,715
Proceeds from issuance of preferred stock		–			–			4,000,000			4,000,000			5,500,000			5,500,000			7,500,000			7,500,000
Net cash provided by financing activities		1,258,136			1,258,136			6,950,940			6,950,940			8,877,715			8,877,715			10,877,715			10,877,715
Net decrease in cash and cash equivalents		(2,139,436	)		(2,139,436	)		224,915			224,915			(1,987,288	)		(1,987,288	)		(2,786,402	)		(2,786,402	)
Cash and cash equivalents, beginning of period		15,889,409			15,889,409			15,889,409			15,889,409			15,889,409			15,889,409			15,889,409			15,889,409
Cash and cash equivalents, end of period	$	13,749,973		$	13,749,973		$	16,114,324		$	16,114,324		$	13,902,121		$	13,902,121		$	13,103,007		$	13,103,007
Selected operating results for the quarters ended 2013, 2012 and 2011
	For the Quarter Ended
	31-Mar-13			30-Jun-13			30-Sep-13			31-Dec-13
	(restated)			(restated)			(restated)
Revenue	$	87,781		$	58,268		$	39,468		$	39,468
Loss from operations		(5,879,006	)		(5,586,704	)		(6,257,907	)		(11,984,290	)
Net loss		(6,510,637	)		(6,894,056	)		(5,745,735	)		(11,871,820	)
Loss per share:
Basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Diluted		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	For the Quarter Ended
	31-Mar-12			30-Jun-12			30-Sep-12			31-Dec-12
	(restated)			(restated)			(restated)			(restated)
Revenue	$	55,685		$	218,184		$	68,184		$	124,434
Loss from operations		(9,345,455	)		(4,399,344	)		(5,119,837	)		(6,378,115	)
Net loss		(11,754,470	)		(3,650,813	)		(8,626,294	)		(10,552,538	)
Loss per share:
Basic	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
Diluted		(0.01	)		(0.00	)		(0.00	)		(0.00	)
	For the Quarter Ended
	31-Mar-11			30-Jun-11			30-Sep-11			31-Dec-11
	(restated)			(restated)			(restated)			(restated)
Revenue	$	153,688		$	153,688		$	132,805		$	66,238
Loss from operations		(4,515,863	)		(3,275,463	)		(4,893,821	)		(4,635,996	)
Net loss		(1,442,265	)		(4,610,199	)		(43,572,892	)		(5,567,447	)
Loss per share:
Basic	$	(0.00	)	$	(0.00	)	$	(0.03	)	$	(0.00	)
Diluted		(0.00	)		(0.00	)		(0.03	)		(0.00	)

3_SUMMARY_OF_SIGNIFICANT_ACCOU1

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

'

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 accounting principles generally accepted in the United States of America, 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.

The accompanying consolidated financial statements have been prepared in conformity with GAAP which contemplate continuation of the company as a going concern. However, as of December 31, 2013, the Company has an accumulated deficit of $313.8 million. This and other factors, such as the Company’s cash balance, raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent upon many factors, including the Company’s ability to raise additional capital in a timely manner, which management plans to do. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Principles of Consolidation

'

accounts of the Company and its wholly-owned subsidiary Mytogen, Inc., or Mytogen, are included in the accompanying consolidated financial statements. Any 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 accounting principles generally accepted in the United States 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 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. Actual results could differ from those estimates.

Reclassifications

'

Certain prior period financial statement balances have been reclassified to conform to the current period presentation.

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 December 31, 2013, and 2012, the Company had deposits in excess of federally-insured limits totaling $1,668,232, and $5,147,037 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 years ended December 31, 2013, 2012 and 2011 , the Company recorded as a reduction in research and development costs, $160,054, $320,112 and $68,639, 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

Capital leases

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 4). 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 December 31, 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 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 certain warrant derivative liabilities. 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 certain embedded conversion options and warrant and option derivative liabilities.

The Company estimates the fair value of the embedded conversion option associated with its 8% convertible debentures using a binomial lattice, 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 beneficial conversion features because there are no observable inputs available with respect to the fair value.

The binomial lattice relies on the following Level 3 inputs: (1) expected volatility of our common stock; (2) potential discount for illiquidity of large blocks of our common stock, 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 may 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 our 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.

At December 31, 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

31-Dec-13

Description

31-Dec-13

Using Fair Value Hierarchy

Level 1

Level 2

Level 3

Warrant and option derivative liabilities

$

284,799

$

–

–

284,799

Embedded conversion option liabilities

663,000

–

663,000

Unsettled warrant obligation

3,899,391

3,899,391

Total

$

4,847,190

$

3,899,391

–

947,799

At December 31, 2012, 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

31-Dec-12

Description

31-Dec-12

Using Fair Value Hierarchy

Level 1

Level 2

Level 3

Warrant and option derivative liabilities

$

972,381

$

–

–

972,381

Embedded conversion option liabilities

967,701

–

122,701

845,000

Unsettled warrant obligation

3,791,953

3,791,953

Total

$

5,732,035

$

3,791,953

122,701

1,817,381

The following tables reconcile 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

(182,000

)

Balance at December 31, 2013

$

663,000

Warrant and Option Derivative Liabilities

Balance at December 31, 2012

$

972,381

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

(687,582

)

Balance at December 31, 2013

$

284,799

Gains and losses included in earnings for the twelve months ended December 31, 2013 are reported as follows:

Adjustment to

Fair Value of

Derivatives

Total gain included in earnings

$

182,000

Warrant and Option Derivative Liabilities

Total gain included in earnings

$

687,582

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

Fair Value at

December 31,

Valuation

Description

2013

Technique

Unobservable Input

Value

Embedded conversion option liability

663,000

Binomial Lattice Model

Expected volatility of the Company's common stock

57%

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

6.0% to 24.1%

Discount rate for contractual debt principal and interest payments

20.00%

Fair Value at

December 31,

Valuation

Description

2013

Technique

Unobservable Input

Value

Warrant and Option derivative liabilities

284,799

Black Scholes Model

Expected volatility of the Company's common stock

55% - 150%

For the years ended December 31, 2013, 2012 and 2011 the Company recognized a gain of $493,241, $889,883, and $11,444,988, 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 $224,985, $466,487, and $506,419 in license fee revenue for the years ended December 31, 2013, 2012 and 2011, respectively, in its consolidated statements of operations, and the remainder of the license fees have been accrued in deferred revenue at December 31, 2013 and 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 118,278,611 options outstanding as of December 31, 2013.

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

'

Net Loss Per Share — Net loss per share is calculated in accordance with the ASC 260-10, “Earnings Per Share.” Basic net loss-per-share is based upon the weighted average number of common shares outstanding. Diluted net loss-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.

At December 31, 2013, 2012 and 2011, approximately 197,532,261, 235,989,033, and 119,000,000 potentially dilutive shares, respectively, were excluded from the shares used to calculate diluted net loss per share as their inclusion would be anti-dilutive.

Concentrations and Other Risks

'

Currently, the Company’s revenues are concentrated from a small number of license arrangements. The following table shows the Company’s concentrations of its revenue from those license arrangements comprising greater than 10% of total revenue for the years ended December 31, 2013, 2012 and 2011.

Years Ended December 31,

2013

2012

2011

Exeter Life Sciences, Inc.

*

*

24%

START Licensing, Inc.

*

*

13%

International Stem Cell Corporation

25%

52%

15%

CHA Biotech and SCRMI

58%

28%

26%

Lifeline

*

14%

13%

Embryone Sciences

12%

*

*

*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. Acts of God could also adversely affect the Company’s business.

Recent Accounting Pronouncements

'

In July 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (ASU 2013-11). ASU 2013-11 clarifies guidance and eliminates diversity in practice on the presentation of unrecognized tax benefits when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists at the reporting date. This new guidance is effective on a prospective basis for fiscal years and interim reporting periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 is not expected to have a material impact on consolidated results of operations, financial condition, or liquidity.

In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220) – Reporting of Amounts Reclassified out of Accumulative Other Comprehensive Income (ASU 2013-02), which replaces the presentation requirements for reclassifications out of accumulated other comprehensive income in ASU 2011-05 and ASU 2011-12. ASU 2013-02 requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component and to present significant amounts reclassified out of accumulated other comprehensive income by respective line items of net income if the amount reclassified is required to be reclassified to net income in its entirety. The adoption of this standard is not expected to have a material impact on consolidated results of operations, financial condition, or liquidity.

In July 2012, the FASB issued ASU 2012-02, “Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment." This ASU simplifies how entities test indefinite-lived intangible assets for impairment which improve consistency in impairment testing requirements among long-lived asset categories. These amended standards permit an assessment of qualitative factors to determine whether it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying value. For assets in which this assessment concludes it is more likely than not that the fair value is more than its carrying value, these amended standards eliminate the requirement to perform quantitative impairment testing as outlined in the previously issued standards. The guidance is effective for annual and interim impairment tests performed for fiscal years beginning after September 15, 2012, early adoption is permitted. The adoption of this standard did not have a material impact on the consolidated results of operations, financial condition, or liquidity.

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.

2_RESTATEMENT_OF_PREVIOUSLY_IS1

2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Tables)	12 Months Ended
	Dec. 31, 2013
Accounting Changes and Error Corrections [Abstract]	'
Restatement tables	'
	Summary of increases (decreases) in Net Loss for the years ended December 31, 2012 and 2011
		December 31,
		2012			2011
	Net loss, as previously reported	$	(28,526,261	)	$	(72,795,119	)
	Net adjustments
	Research and development		(3,124,100	)		199,465
	General and administrative expenses		(980,636	)		3,589,750
	Adjustments to fair value of unsettled warrant obligation		(1,953,118	)		13,813,101
	Net loss, restated	$	(34,584,115	)	$	(55,192,803	)
	Basic loss per share:
	Net loss, as previously reported	$	(0.01	)	$	(0.05	)
	Net adjustments
	Research and development		0			0
	General and administrative expenses		(0.01	)		0
	Adjustments to fair value of unsettled warrant obligation		(0.00	)		0.02
	Net loss, restated	$	(0.02	)	$	(0.03	)
	Diluted loss per share:
	Net loss, as previously reported	$	(0.01	)	$	(0.05	)
	Net adjustments
	Research and development		0			0
	General and administrative expenses		(0.01	)		0
	Adjustments to fair value of unsettled warrant obligation		(0.00	)		0.02
	Net loss, restated	$	(0.02	)	$	(0.03	)
	Weighted average shares used in computing net loss per share:
	Basic		2,086,619,741			1,582,095,095
	Diluted		2,086,619,741			1,582,095,095
	Restatement adjustments on our Accumulated deficit as of January 1, 2011
		Amount
	Accumulated deficit, January 1, 2011, as previously reported	$	(180,949,523	)
	Restatement adjustments:
	Adjustments to Additional Paid in Capital for tainted shares		1,064,499
	Adjustments to fair value of unsettled warrant obligation		(13,145,436	)
	Accumulated deficit, January 1, 2011, as restated	$	(193,030,460	)
	Consolidated Balance Sheet impact as of December 31, 2012
		As of December 31, 2012
		As Previously Reported			Adjustments			As Restated
	Assets
	Current assets:
	Cash and cash equivalents	$	7,241,852		$	–		$	7,241,852
	Grants receivable		96,425			–			96,425
	Deferred royalty fees, current portion		82,435			–			82,435
	Prepaid expenses		132,044			–			132,044
	Total current assets		7,552,756			–			7,552,756
	Property and equipment, net		175,256			–			175,256
	Deferred royalty fees, less current portion		170,216			–			170,216
	Deposits		29,856			–			29,856
	Deferred costs, net		568,458			–			568,458
	Total assets	$	8,496,542		$	–		$	8,496,542
	Liabilities and Stockholders’ Deficit
	Current liabilities:
	Accounts payable	$	2,956,743		$	–		$	2,956,743
	Accrued expenses		3,210,908			–			3,210,908
	Accrued settlement		6,807,891			–			6,807,891
	Convertible promissory notes, current portion		256,850			–			256,850
	Senior secured convertible promissory notes, current portion		2,110,000			–			2,110,000
	Embedded conversion option liabilities, current portion		460,668			–			460,668
	Unsettled warrant obligation		–			3,791,953			3,791,953
	Loss contingency accrual		6,176,787			(2,506,500	)		3,670,287
	Deferred revenue, current portion		224,935			–			224,935
	Total current liabilities		22,204,782			1,285,453			23,490,235
	Senior secured convertible promissory notes, less current portion		3,165,000			–			3,165,000
	Embedded conversion option liabilities, less current portion		507,033			–			507,033
	Warrant and option derivative liabilities		972,381			–			972,381
Deferred revenue, less current portion		1,907,574			–			1,907,574
Total liabilities		28,756,770			1,285,453			30,042,223
Series A-1 redeemable preferred stock		1,598,533			–			1,598,533
Stockholders' Deficit:
Preferred stock, Series B		1			–			1
Preferred stock, Series C		2			–			2
Common stock		2,232,721			–			2,232,721
Additional paid-in capital		289,842,597			(748,978	)		289,093,619
Promissory notes receivable, net		(31,622,696	)		–			(31,622,696	)
Accumulated deficit		(282,311,386	)		(536,475	)		(282,847,861	)
Total stockholders' deficit		(21,858,761	)		(1,285,453	)		(23,144,214	)
Total liabilities and stockholders' deficit	$	8,496,542		$	–		$	8,496,542
Consolidated Statement of Operations impact for the year ended December 31, 2012
	For the Year Ended December 31, 2012
	As Previously Reported			Adjustments			As Restated
Revenue	$	466,487		$	–		$	466,487
Cost of revenue		117,436			–			117,436
Gross profit		349,051			–			349,051
Operating expenses:
Research and development		11,034,836			3,124,100			14,158,936
General and administrative expenses		10,452,230			980,636			11,432,866
Total operating expenses		21,487,066			4,104,736			25,591,802
Loss from operations		(21,138,015	)		(4,104,736	)		(25,242,751	)
Non-operating income (expense):
Interest income		15,581			–			15,581
Interest expense and late fees		(1,104,602	)		–			(1,104,602	)
Finance gain (cost)		(3,671,970	)		(3,343,500	)		(7,015,470	)
Gain (loss) on disposal of fixed assets		(17,138	)		–			(17,138	)
Fines and penalties		(3,500,000	)		–			(3,500,000	)
Adjustments to fair value of unsettled warrant obligation		–			1,390,382			1,390,382
Adjustments to fair value of derivatives		889,883			–			889,883
Total non-operating expense		(7,388,246	)		(1,953,118	)		(9,341,364	)
Loss before provision for income tax		(28,526,261	)		(6,057,854	)		(34,584,115	)
Provision for income tax		–			–			–
Net loss	$	(28,526,261	)	$	(6,057,854	)	$	(34,584,115	)
Loss per share:
Basic	$	(0.01	)	$	(0.01	)	$	(0.02	)
Diluted		(0.01	)		(0.01	)		(0.02	)
Weighted average shares outstanding:
Basic		2,086,619,741			2,086,619,741			2,086,619,741
Diluted		2,086,619,741			2,086,619,741			2,086,619,741
Consolidated Statement of Operations impact for the year ended December 31, 2011
	For the Year Ended December 31, 2011
	As Previously Reported			Adjustments			As Restated
Revenue	$	506,419		$	–		$	506,419
Cost of revenue		343,950			–			343,950
Gross profit		162,469			–			162,469
Operating expenses:
Research and development		9,953,224			(199,465	)		9,753,759
General and administrative expenses		11,025,459			(3,589,750	)		7,435,709
Loss on settlement of litigation		294,144			–			294,144
Total operating expenses		21,272,827			(3,789,215	)		17,483,612
Loss from operations		(21,110,358	)		3,789,215			(17,321,143	)
Non-operating income (expense):
Interest income		35,114			–			35,114
Interest expense and late fees		(1,510,693	)		–			(1,510,693	)
Finance gain (cost)		(60,834,170	)		5,850,000			(54,984,170	)
Loss attributable to equity method investments		(820,000	)		–			(820,000	)
Adjustments to fair value of unsettled warrant obligation		–			7,963,101			7,963,101
Adjustments to fair value of derivatives		11,444,988			–			11,444,988
Total non-operating expense		(51,684,761	)		13,813,101			(37,871,660	)
Loss before provision for income tax		(72,795,119	)		17,602,316			(55,192,803	)
Provision for income tax		–			–			–
Net loss	$	(72,795,119	)	$	17,602,316		$	(55,192,803	)
Loss per share:
Basic	$	(0.05	)	$	0.02		$	(0.03	)
Diluted		(0.05	)		0.02			(0.03	)
Weighted average shares outstanding:
Basic		1,582,095,095			1,582,095,095			1,582,095,095
Diluted		1,582,095,095			1,582,095,095			1,582,095,095
Consolidated Statement of Stockholders’ Deficit Impact
	For the Year Ended December 31,
	2012			2011
Stockholders’ deficit, as previously reported	$	(21,858,761	)	$	(46,123,844	)
Effect of restatement adjustment on net loss for the current period		(6,057,854	)		17,602,316
Adjustment to additional paid-in capital for the current period		(748,978	)		(7,953,597	)
Cumulative adjustment to accumulated deficit		5,521,379			(12,080,937	)
Total restatement adjustments		(1,285,453	)		(2,432,218	)
Stockholders’ deficit, as restated	$	(23,144,214	)	$	(48,556,062	)
Consolidated Statement of Cash Flows Impact
	For the Year Ended December 31,
	2012						2011
	As Previously Reported			As Restated			As Previously Reported			As Restated
Net loss	$	(28,526,261	)	$	(34,584,115	)	$	(72,795,119	)	$	(55,192,803	)
Stock based compensation		3,691,149			7,795,885			3,856,501			67,286
Adjustments to fair value of unsettled warrant obligation		–			(1,390,382	)		–			(7,963,101	)
Non-cash financing costs		3,671,970			7,015,470			60,834,170			54,984,170
Net cash used in operating activities		(14,606,357	)

3_SUMMARY_OF_SIGNIFICANT_ACCOU2

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 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
	Capital leases	Lesser of lease life or economic life
Fair value assets and liabilities	'
		Fair Value			Fair Value Measurements at
		As of			31-Dec-13
	Description	31-Dec-13			Using Fair Value Hierarchy
					Level 1			Level 2		Level 3
	Warrant and option derivative liabilities	$	284,799		$	–			–		284,799
	Embedded conversion option liabilities		663,000			–					663,000
	Unsettled warrant obligation		3,899,391			3,899,391
	Total	$	4,847,190		$	3,899,391			–		947,799
	At December 31, 2012, 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			31-Dec-12
	Description	31-Dec-12			Using Fair Value Hierarchy
					Level 1			Level 2		Level 3
	Warrant and option derivative liabilities	$	972,381		$	–			–		972,381
	Embedded conversion option liabilities		967,701			–			122,701		845,000
	Unsettled warrant obligation		3,791,953			3,791,953
	Total	$	5,732,035		$	3,791,953			122,701		1,817,381
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		(182,000	)
	Balance at December 31, 2013	$	663,000
		Warrant and Option Derivative Liabilities
	Balance at December 31, 2012	$	972,381
	Total (gains) or losses for the period included in earnings		(687,582	)
	Balance at December 31, 2013	$	284,799
Gains and losses included in earnings	'
		Adjustment to
		Fair Value of
		Derivatives
	Total gain included in earnings	$	182,000
		Warrant and Option Derivative Liabilities
	Total gain included in earnings	$	687,582
Quantitative information within Level 3 of the fair value hierarchy	'
		Fair Value at
		December 31,		Valuation
	Description	2013		Technique	Unobservable Input		Value
	Embedded conversion option liability	663,000		Binomial Lattice Model	Expected volatility of the Company's common stock		57%
					Discount for illiquidity of large blocks of the Company's common stock		6.0% to 24.1%
					Discount rate for contractual debt principal and interest payments		20.00%
		Fair Value at
		December 31,		Valuation
	Description	2013		Technique	Unobservable Input		Value
	Warrant and Option derivative liabilities	284,799		Black Scholes Model	Expected volatility of the Company's common stock		55% - 150%
Customer concentration	'
		Years Ended December 31,
		2013			2012			2011
	Exeter Life Sciences, Inc.		*			*			24%
	START Licensing, Inc.		*			*			13%
	International Stem Cell Corporation		25%			52%			15%
	CHA Biotech and SCRMI		58%			28%			26%
	Lifeline		*			14%			13%
	Embryone Sciences		12%			*			*

4_INVESTMENT_IN_JOINT_VENTURE_

4. INVESTMENT IN JOINT VENTURE (Tables)	12 Months Ended
	Dec. 31, 2013
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]	'
Summary of key financial data for the joint venture	'
		Years Ended December 31,
		2013		2012		2011
	Current assets	$	268,124	$	220,347	$	194,349
	Noncurrent assets	$	1,333,201	$	1,281,739	$	1,082,778
	Current liabilities	$	292,770	$	297,998	$	294,469
	Noncurrent liabilities	$	1,875,554	$	2,167,670	$	2,459,785
	Net revenue	$	292,116	$	292,116	$	417,382
	Net income (loss)	$	396,583	$	513,545	$	(574,713	)

5_PROPERTY_AND_EQUIPMENT_Table

5. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2013
Property, Plant and Equipment [Abstract]	'
Property and equipment	'
		Years Ended December 31,
		2013			2012
	Machinery & equipment (1)	$	1,086,800		$	907,740
	Computer equipment		49,707			32,986
	Office furniture		38,783			6,684
	Leasehold improvements (1)		559,969			169,572
			1,735,259			1,116,982
	Accumulated depreciation		(981,683	)		(941,726	)
	Property and equipment, net	$	753,576		$	175,256

6_ACCRUED_SETTLEMENT_Tables

6. ACCRUED SETTLEMENT (Tables)	12 Months Ended
	Dec. 31, 2013
Accrued Settlement Tables	'
Accrued settlement	'
		Years Ended December 31,
		2013				2012
	SEC civil action	$	4,086,619			$	–
	CAMOFI Master LDC		–				6,807,891
		$	4,086,619			$	6,807,891
Summary of accrual	'
	Summary of CAMOFI accrual:	Share value		$	4,500,000
		Cash Due		$	2,000,000
		Costs reimbursed		$	307,891
		Total CAMOFI		$	6,807,891

7_LOSS_CONTINGENCY_ACCRUAL_Tab

7. LOSS CONTINGENCY ACCRUAL (Tables)	12 Months Ended
	Dec. 31, 2013
Loss Contingency [Abstract]	'
Accrual contingency	'
		Years Ended December 31,
		2013		2012
	Warrant holder litigation	$	6,228,621	$	–
	SEC civil action		–		3,500,000
	Miscellaneous settlements		203,358		170,287
		$	6,431,979	$	3,670,287

8_CONVERTIBLE_PROMISSORY_NOTES1

8. CONVERTIBLE PROMISSORY NOTES (Tables)	12 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
Redemption dates and amounts	'
	Redemption
	Date		Amount
		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
			$	3,600,000

10_SERIES_A1_REDEEMABLE_CONVER1

10. SERIES A-1 REDEEMABLE CONVERTIBLE PREFERRED STOCK (Tables)	12 Months Ended
	Dec. 31, 2013
Series A-1 Redeemable Convertible Preferred Stock	'
Series A-1 redeemable convertible preferred stock	'
		December 31,		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

11_SERIES_B_PREFERRED_STOCK_Ta

11. SERIES B PREFERRED STOCK (Tables)	12 Months Ended
	Dec. 31, 2013
Disclosure Text Block Supplement [Abstract]	'
Settlement amount of Series B Preferred stock	'
		December 31,		December 31,
		2013		2012
	Face Value of Preferred Stock	$	10,000,000	$	10,000,000
	Accrued Dividends	$	3,587,748	$	2,352,321
	Redemption factor		109%		118%
	Conversion price	$	14,810,645	$	14,575,739
	Receivable	$	14,216,166	$	13,969,559
	Net settlement upon conversion	$	594,479	$	606,180

12_SERIES_C_PREFERRED_STOCK_Ta

12. SERIES C PREFERRED STOCK (Tables)	12 Months Ended
	Dec. 31, 2013
Disclosure Text Block Supplement [Abstract]	'
Settlement amount for Series C Preferred Stock	'
		December 31,			December 31,
		2013			2012
	Face Value of Preferred Stock	$	17,500,000		$	17,500,000
	Accrued Dividends	$	2,454,853		$	1,325,333
	Redemption factor		109%			118%
	Conversion price	$	21,750,790		$	22,213,893
	Receivable	$	21,815,550		$	21,429,666
	Net settlement upon conversion	$	(64,760	)	$	784,227

13_WARRANT_SUMMARY_Tables

13. WARRANT SUMMARY (Tables)	12 Months Ended
	Dec. 31, 2013
Warrants and Rights Note Disclosure [Abstract]	'
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, 2011		21,757,421			0.18		2.88
	Granted		14,763,445			0.081
	Exercised		(14,763,445	)		0.081
	Forfeited/Canceled		–			–
	Outstanding, December 31, 2012		21,757,421			0.18		1.88
	Granted		–			–
	Exercised		–			–
	Forfeited/Canceled		(13,927,538	)		0.13
	Outstanding, December 31, 2013		7,829,883			0.28		1.82		–
	Exercisable, December 31, 2013		7,829,883			0.28		1.82		–
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			0.93		0.1
	.20 - .30		1,630,000			2		0.25
	.38-.39		1,330,636			3.57		0.39
	.40-.45		815,000			2		0.45
	0.7		815,000			2		0.7
			7,829,883

15_STOCKBASED_COMPENSATION_Tab

15. STOCK-BASED COMPENSATION (Tables)	12 Months Ended
	Dec. 31, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'
Stock Plans	'
											Options/Shares
			Options/Shares				Options				Available
	Stock Plan		Issued				Outstanding				For Grant
	2004 Stock Plan			2,492,000				70,000				1,215,104
	2004 Stock Plan II			1,301,161				1,071,161				–
	2005 Stock Plan			150,048,071				117,137,450				299,777,464
				153,841,232				118,278,611				300,992,568
Stock Option Activity	'
											Weighted
							Weighted				Average
							Average				Remaining				Aggregate
			Number of				Exercise				Contractual				Intrinsic
			Options				Price				Life (in years)				Value
	Outstanding, December 31, 2010			48,376,119			$	0.23				7.56			$	3,825
	Granted			46,207,499				0.22
	Exercised			(2,250,000	)			0.09
	Forfeited/canceled			(533,333	)			0.1
	Outstanding, December 31, 2011			91,800,285			$	0.23				8.19			$	-
	Granted			9,872,518				0.1
	Exercised			–				–
	Forfeited/canceled			(1,000,000	)			0.12
	Outstanding, December 31, 2012			100,672,803			$	0.22				7.45			$	399
	Granted			25,510,714				0.08
	Exercised			–				–
	Forfeited/canceled			(7,904,906	)			0.14				–
	Outstanding, December 31, 2013			118,278,611			$	0.19				6.95			$	10,319
	Vested and expected to vest at December 31, 2013			116,510,015			$	0.19				6.91			$	10,319
	Exercisable, December 31, 2013			104,674,029			$	0.21				6.63			$	10,319
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 -0.079				19,980,714			$	0.07				9.48				8,647,381	$	0.07		9.35
		0.08 - 0.09				28,325,892				0.09				6.17				26,054,643		0.09		5.94
		0.10 - 0.157				26,943,829				0.14				7.6				26,943,829		0.14		7.6
		0.185 - 0.21				25,934,166				0.19				6.73				25,934,166		0.19		6.73
		0.25 - 0.45				11,071,161				0.36				6.81				11,071,161		0.36		6.81
		0.85				5,417,849				0.85				0.39				5,417,849		0.85		0.39
	$	1.35 - 2.48				605,000			$	2.02				1.87				605,000	$	2.02		1.87
						118,278,611												104,674,029
Assumptions in calculating the fair value of options granted	'
		December 31,			December 31,			December 31,
		2013			2012			2011
	Risk-free interest rate		0.66 – 2.17%			0.66 – .92%			0.36%
	Expected life of the options		3.90 - 6.02 years			3.90 – 5.45 years			3.05 – 3.18 years
	Expected volatility		134% -158%			149% - 158%			125%
	Expected dividend yield		0%			0%			0%
	Expected forfeitures		13%			13%			13%
Summary of the restricted stock	'
			Number of Restricted Stock Shares				Weighted Average Grant Date Fair Value ($)
	Outstanding, December 31, 2010		5,000,000				0.14
	Granted		25,000,000				0.168
	Vested		(13,000,000		)		0.164
	Forfeited/canceled		–
	Unvested, December 31, 2011			17,000,000				0.17
	Granted			–				–
	Vested			(9,142,857	)			0.169
	Forfeited/canceled			–
	Unvested, December 31, 2012			7,857,143				0.171
	Granted			1,285,714				0.062
	Vested			(9,142,857	)			0.147
	Forfeited/canceled			–
	Unvested, December 31, 2013			–				–

16_COMMITMENTS_AND_CONTINGENCI1

16. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Loss contingency acrrual	'
	2014	$	513,820
	2015		448,302
	2016		349,803
	2017		356,659
	2018		110,927
		$	1,779,511

17_INCOME_TAXES_Tables

17. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Provision for income taxes	'
		2013			2012			2011
	Statutory federal income tax rate		-34%			-34%			-34%
	State income taxes, net of federal taxes		-6%			-6%			-6%
	Non-includable items		17%			11%			29%
	Increase in valuation allowance		23%			29%			12%
	Effective income tax rate		–			–			–
Components of deferred tax assets and (liabilities)	'
		2013			2012
	Deferred tax assets:
	Net operating loss carryforwards	$	54,916,539		$	49,011,399
	Depreciation		155,651			151,194
	Capitalized R&D expenses		4,142,634			1,936,824
	Deferred revenue		(167,791	)		(77,592	)
	Losses from joint venture		348,102			348,102
	Professional fees		47,558			88,658
	Charitable contributions		(20,603	)		–
	Other		4,805			–
	Reversal of unpaid liabilities		1,238,538			1,238,538
	Valuation allowance		(60,665,433	)		(52,697,123	)
	Net deferred tax asset	$	–		$	–
Components of income tax expense	'
		2013			2012			2011
	Current federal income tax	$	–		$	–		$	–
	Current state income tax		–			–			–
	Deferred taxes		7,968,310			2,021,705			7,878,246
	Valuation allowance		(7,968,310	)		(2,021,705	)		(7,878,246	)
		$	–		$	–		$	–
Summary of open tax years	'
	Jurisdiction	Open Tax Years
	Federal	2010 - 2012
	States	2008 - 2012

19_SUMMARIZED_QUARTERLY_UNAUDI1

19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Tables)	12 Months Ended
	Dec. 31, 2013
Quarterly Financial Information Disclosure [Abstract]	'
Summary of increases (decreases) in Net Loss	'
	2013 Summary of increases (decreases) in net loss (unaudited)
		For the Quarter Ended
		31-Mar-13			30-Jun-13						30-Sep-13
		Three Months			Three Months Ended			Six Months Ended			Three Months Ended			Nine Months Ended
		Ended
	Net loss, as previously reported	$	(6,413,041	)	$	(6,611,346	)	$	(13,024,387	)	$	(5,705,122	)	$	(18,729,509	)
	Net adjustments
	Research and development (Restatement)		(106,559	)		(113,033	)		(219,592	)		(163,079	)		(382,671	)
	General and administrative expenses (Restatement)		(8,005	)		(9,524	)		(17,529	)		(8,568	)		(26,097	)
	Adjustments to fair value of unsettled warrant obligation		16,968			(160,153	)		(143,185	)		131,034			(12,151	)
	Net loss, restated	$	(6,510,637	)	$	(6,894,056	)	$	(13,404,693	)	$	(5,745,735	)	$	(19,150,428	)
	Basic loss per share:
	Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.01	)
	Net adjustments
	Research and development (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	General and administrative expenses (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Adjustments to fair value of unsettled warrant obligation		0			(0.00	)		(0.00	)		0			(0.00	)
	Net loss, restated	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.01	)
	Diluted loss per share:
	Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.01	)
	Net adjustments
	Research and development (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	General and administrative expenses (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Adjustments to fair value of unsettled warrant obligation		0			(0.00	)		(0.00	)		0			(0.00	)
	Net loss, restated	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.01	)
	Weighted average shares used in computing net loss per share:
	Basic		2,251,585,598			2,451,694,258			2,389,481,712			2,573,191,224			2,451,391,145
	Diluted		2,251,585,598			2,451,694,258			2,389,481,712			2,573,191,224			2,451,391,145
	2012 Summary of increases (decreases) in net loss (unaudited)
		For the Quarter Ended
		31-Mar-12			30-Jun-12						30-Sep-12						31-Dec-12
		Three Months			Three Months Ended			Six Months Ended			Three Months Ended			Nine Months Ended			Three Months
		Ended															Ended
	Net loss, as previously reported	$	(5,712,490	)	$	(3,959,443	)	$	(9,671,933	)	$	(8,508,251	)	$	(18,180,184	)	$	(10,346,077	)
	Net adjustments
	Research and development (Restatement)		(2,470,817	)		(217,761	)		(2,688,578	)		(217,761	)		(2,906,339	)		(217,761	)
	General and administrative expenses (Restatement)		(1,455,167	)		296,411			(1,158,756	)		103,467			(1,055,289	)		74,653
	Adjustments to fair value of unsettled warrant obligation		(2,115,996	)		229,980			(1,886,016	)		(3,749	)		(1,889,765	)		(63,353	)
	Net loss, restated	$	(11,754,470	)	$	(3,650,813	)	$	(15,405,283	)	$	(8,626,294	)	$	(24,031,577	)	$	(10,552,538	)
	Basic loss per share:
	Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
	Net adjustments
	Research and development (Restatement)		(0.01	)		(0.00	)		(0.01	)		(0.00	)		(0.00	)		(0.00	)
	General and administrative expenses (Restatement)		(0.00	)		0			0			0			(0.00	)		0
	Adjustments to fair value of unsettled warrant obligation		(0.00	)		0			0			(0.00	)		(0.00	)		(0.00	)
	Net loss, restated	$	(0.01	)	$	0		$	(0.01	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
	Diluted loss per share:
	Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
	Net adjustments
	Research and development (Restatement)		(0.01	)		(0.00	)		(0.01	)		(0.00	)		(0.00	)		(0.00	)
	General and administrative expenses (Restatement)		(0.00	)		0			0			0			(0.00	)		0
	Adjustments to fair value of unsettled warrant obligation		(0.00	)		0			0			(0.00	)		(0.00	)		(0.00	)
	Net loss, restated	$	(0.01	)	$	0		$	(0.01	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
	Weighted average shares used in computing net loss per share:
	Basic		1,942,293,307			2,076,212,012			2,010,442,657			2,122,463,857			2,048,055,615			2,193,859,375
	Diluted		1,942,293,307			2,076,212,012			2,010,442,657			2,122,463,857			2,048,055,615			2,193,859,375
	2011 Summary of increases (decreases) in net loss (unaudited)
		For the Quarter Ended
		31-Mar-11			30-Jun-11						30-Sep-11						31-Dec-11
		Three Months			Three Months Ended			Six Months Ended			Three Months Ended			Nine Months Ended			Three Months
		Ended															Ended
	Net loss, as previously reported	$	(3,342,037	)	$	(4,820,149	)	$	(8,162,186	)	$	(52,521,029	)	$	(60,683,215	)	$	(12,111,904	)
	Net adjustments
Research and development (Restatement)		(39,760	)		(39,760	)		(79,520	)		(84,196	)		(163,716	)		363,181
General and administrative expenses (Restatement)		359,552			376,108			735,660			2,086,161			2,821,821			767,929
Adjustments to fair value of unsettled warrant obligation		1,579,980			(126,398	)		1,453,582			6,946,172			8,399,754			5,413,347
Net loss, restated	$	(1,442,265	)	$	(4,610,199	)	$	(6,052,464	)	$	(43,572,892	)	$	(49,625,356	)	$	(5,567,447	)
Basic loss per share:
Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.03	)	$	(0.04	)	$	(0.01	)
Net adjustments
Research and development (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		0
General and administrative expenses (Restatement)		0			0			0			0			0			0
Adjustments to fair value of unsettled warrant obligation		0			(0.00	)		0.01			0			0.01			0.01
Net loss, restated	$	(0.00	)	$	0		$	(0.00	)	$	(0.03	)	$	(0.03	)	$	(0.00	)
Diluted loss per share:
Net loss, as previously reported	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.03	)	$	(0.04	)	$	(0.01	)
Net adjustments
Research and development (Restatement)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)		0
General and administrative expenses (Restatement)		0			0			0			0			0			0
Adjustments to fair value of unsettled warrant obligation		0			(0.00	)		0.01			0			0.01			0.01
Net loss, restated	$	(0.00	)	$	0		$	(0.00	)	$	(0.03	)	$	(0.03	)	$	(0.00	)
Weighted average shares used in computing net loss per share:
Basic		1,478,231,834			1,543,519,167			1,510,945,682			1,613,530,283			1,546,379,685			1,547,852,307
Diluted		1,478,231,834			1,543,519,167			1,510,945,682			1,613,530,283			1,546,379,685			1,547,852,307
Consolidated Balance Sheet	'
	2013 Quarterly Consolidated Balance Sheets (unaudited)
		As of March 31, 2013						As of June 30, 2013						As of September 30, 2013
		As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
	Assets
	Current assets:
	Cash and cash equivalents	$	4,111,434		$	4,111,434		$	5,464,054		$	5,464,054		$	5,452,653		$	5,452,653
	Grants receivable		254,279			254,279			60,022			60,022			25,685			25,685
	Deferred royalty fees, current portion		92,435			92,435			62,435			62,435			62,435			62,435
	Prepaid expenses		326,517			326,517			349,319			349,319			949,065			949,065
	Total current assets		4,784,665			4,784,665			5,935,830			5,935,830			6,489,838			6,489,838
	Property and equipment, net		255,790			255,790			572,152			572,152			697,027			697,027
	Deferred royalty fees, less current portion		155,857			155,857			138,998			138,998			123,388			123,388
	Deposits		38,661			38,661			38,220			38,220			66,751			66,751
	Deferred costs, net		369,773			369,773			264,693			264,693			165,298			165,298
	Total assets	$	5,604,746		$	5,604,746		$	6,949,893		$	6,949,893		$	7,542,302		$	7,542,302
	Liabilities and Stockholders’ Deficit
	Current liabilities:
	Accounts payable	$	2,439,123		$	2,439,123		$	2,382,843		$	2,382,843		$	2,716,272		$	2,716,272
	Accrued expenses		2,611,378			2,611,378			2,627,808			2,627,808			2,647,728			2,647,728
	Convertible promissory notes, current portion		287,785			287,785			–			–			–			–
	Senior secured convertible promissory notes, current portion		2,604,545			2,604,545			2,055,755			2,055,755			2,124,604			2,124,604
	Embedded conversion option liabilities, current portion		505,075			505,075			234,227			234,227			235,595			235,595
	Unsettled warrant obligation		–			4,404,985			–			4,961,138			–			4,506,104
	Loss contingency accrual		6,859,607			3,723,107			7,871,898			4,339,398			7,528,896			4,320,396
	Deferred revenue, current portion		176,622			176,622			157,872			157,872			157,872			157,872
	Total current liabilities		15,484,135			16,752,620			15,330,403			16,759,041			15,410,967			16,708,571
	Senior secured convertible promissory notes, less current portion		2,802,273			2,802,273			1,706,116			1,706,116			1,724,893			1,724,893
	Embedded conversion option liabilities, less current portion		453,000			453,000			466,773			466,773			467,405			467,405
	Warrant and option derivative liabilities		435,792			435,792			496,078			496,078			357,875			357,875
	Deferred revenue, less current portion		1,868,106			1,868,106			1,828,638			1,828,638			1,789,170			1,789,170
	Total liabilities		21,043,306			22,311,791			19,828,008			21,256,646			19,750,310			21,047,914
	Series A-1 redeemable preferred stock		1,641,006			1,641,006			–			–			–			–
	Stockholders' Deficit:
	Preferred stock, Series B		1			1			1			1			1			1
	Preferred stock, Series C		2			2			2			2			2			2
	Common stock		2,387,937			2,387,937			2,529,495			2,529,495			2,608,116			2,608,116
	Additional paid-in capital		301,443,293			300,808,879			312,706,253			312,194,396			319,606,218			319,266,008
	Promissory notes receivable, net		(32,189,828	)		(32,189,828	)		(32,788,398	)		(32,788,398	)		(33,399,438	)		(33,399,438	)
	Accumulated deficit		(288,720,971	)		(289,355,042	)		(295,325,468	)		(296,242,249	)		(301,022,907	)		(301,980,301	)
	Total stockholders' deficit		(17,079,566	)		(18,348,051	)		(12,878,115	)		(14,306,753	)		(12,208,008	)		(13,505,612	)
	Total liabilities and stockholders' deficit	$	5,604,746		$	5,604,746		$	6,949,893		$	6,949,893		$	7,542,302		$	7,542,302
	2012 Quarterly Consolidated Balance Sheets (unaudited)
		As of March 31, 2012						As of June 30, 2012						As of September 30, 2012
		As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
	Assets
	Current assets:
	Cash and cash equivalents	$	10,778,045		$	10,778,045		$	9,862,536		$	9,862,536		$	8,254,014		$	8,254,014
	Grants receivable		–			–			–			–			140,046			140,046
	Deferred royalty fees, current portion		62,435			62,435			62,435			62,435			62,435			62,435
	Prepaid expenses		199,262			199,262			122,712			122,712			95,464			95,464
	Total current assets		11,039,742			11,039,742			10,047,683			10,047,683			8,551,959			8,551,959
	Property and equipment, net		151,857			151,857			153,600			153,600			129,499			129,499
	Deferred royalty fees, less current portion		217,043			217,043			201,434			201,434			185,825			185,825
	Deposits		14,766			14,766			14,766			14,766			14,766			14,766
	Deferred costs, net		1,175,554			1,175,554			974,661			974,661			771,560			771,560
	Total assets	$	12,598,962		$	12,598,962		$	11,392,144		$	11,392,144		$	9,653,609		$	9,653,609
	Liabilities and Stockholders’ Deficit
	Current liabilities:
	Accounts payable	$	1,872,248		$	1,872,248		$	1,839,515		$	1,839,515		$	2,003,884		$	2,003,884
	Accrued expenses		1,827,655			1,827,655			1,825,684			1,825,684			2,244,583			2,244,583
	Convertible promissory notes, current portion		161,270			161,270			192,898			192,898			224,874			224,874
	Senior secured convertible promissory notes, current portion					–						–			–			–
	Embedded conversion option liabilities, current portion		–			–			186,484			186,484			160,371			160,371
Unsettled warrant obligation		–			5,498,331			–			3,918,351			–			4,822,100
Loss contingency accrual		15,474,595			11,424,595			15,347,341			12,647,341			14,653,227			11,053,227
Deferred revenue, current portion		217,333			217,333			338,617			338,617			309,901			309,901
Total current liabilities		19,553,101			21,001,432			19,730,539			20,948,890			19,596,840			20,818,940
Senior secured convertible promissory notes, less current portion					–			–			–			–			–
Embedded conversion option liabilities, less current portion		228,435			228,435			5,286			5,286			3,629			3,629
Warrant and option derivative liabilities		1,866,913			1,866,913			1,178,897			1,178,897			1,555,417			1,555,417
Deferred revenue, less current portion		2,025,978			2,025,978			1,986,510			1,986,510			1,947,042			1,947,042
Total liabilities		23,674,427			25,122,758			22,901,232			24,119,583			23,102,928			24,325,028
Series A-1 redeemable preferred stock		1,468,930			1,468,930			1,511,701			1,511,701			1,555,117			1,555,117
Stockholders' Deficit:
Preferred stock, Series B		1			1			1			1			1			1
Preferred stock, Series C		1			1			2			2			2			2
Common stock		2,073,832			2,073,832			2,112,215			2,112,215			2,191,303			2,191,303
Additional paid-in capital		271,300,678			270,372,948			277,304,154			276,297,774			285,831,971			284,939,885
Promissory notes receivable, net		(26,402,020	)		(26,402,020	)		(28,966,005	)		(28,966,005	)		(31,055,048	)		(31,055,048	)
Accumulated deficit		(259,516,887	)		(260,037,488	)		(263,471,156	)		(263,683,127	)		(271,972,665	)		(272,302,679	)
Total stockholders' deficit		(12,544,395	)		(13,992,726	)		(13,020,789	)		(14,239,140	)		(15,004,436	)		(16,226,536	)
Total liabilities and stockholders' deficit	$	12,598,962		$	12,598,962		$	11,392,144		$	11,392,144		$	9,653,609		$	9,653,609
Consolidated Statement of Operations	'
	2013 Quarterly Consolidated Statements of Operations (unaudited)
		31-Mar-13						30-Jun-13
		Three Months Ended						Three Months Ended						Six Months Ended
		As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
	Revenue	$	87,781		$	87,781		$	58,268		$	58,268		$	146,049		$	146,049
	Cost of revenue		34,359			34,359			16,859			16,859			51,218			51,218
	Gross profit		53,422			53,422			41,409			41,409			94,831			94,831
	Operating expenses:
	Research and development		2,992,000			3,098,559			2,862,237			2,975,270			5,854,237			6,073,829
	General and administrative expenses		2,825,864			2,833,869			2,643,319			2,652,843			5,469,183			5,486,712
	Total operating expenses		5,817,864			5,932,428			5,505,556			5,628,113			11,323,420			11,560,541
	Loss from operations		(5,764,442	)		(5,879,006	)		(5,464,147	)		(5,586,704	)		(11,228,589	)		(11,465,710	)
	Non-operating income (expense):
	Interest income		1,777			1,777			1,015			1,015			2,792			2,792
	Interest expense and late fees		(524,189	)		(524,189	)		(370,228	)		(370,228	)		(894,417	)		(894,417	)
	Finance gain (cost)		(293,120	)		336,880			(687,139	)		(291,139	)		(980,259	)		45,741
	Fines and penalties		–			–			(587,147	)		(587,147	)		(587,147	)		(587,147	)
	Gain on extinguishment of debt		–			–			438,587			438,587			438,587			438,587
	Adjustments to fair value of unsettled warrant obligation		–			(613,032	)		–			(556,153	)		–			(1,169,185	)
	Adjustments to fair value of derivatives		166,933			166,933			57,713			57,713			224,646			224,646
	Total non-operating expense		(648,599	)		(631,631	)		(1,147,199	)		(1,307,352	)		(1,795,798	)		(1,938,983	)
	Loss before provision for income tax		(6,413,041	)		(6,510,637	)		(6,611,346	)		(6,894,056	)		(13,024,387	)		(13,404,693	)
	Provision for income tax		–			–			–			–			–			–
	Net loss	$	(6,413,041	)	$	(6,510,637	)	$	(6,611,346	)	$	(6,894,056	)	$	(13,024,387	)	$	(13,404,693	)
	Loss per share:
	Basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)
	Diluted		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.01	)
	Weighted average shares outstanding:
	Basic		2,251,585,598			2,251,585,598			2,451,694,258			2,451,694,258			2,389,481,712			2,389,481,712
	Diluted		2,251,585,598			2,251,585,598			2,451,694,258			2,451,694,258			2,389,481,712			2,389,481,712
	2013 Quarterly Consolidated Statements of Operations (unaudited)
		30-Sep-13												Three Months
		Three Months Ended						Nine Months Ended						Ended
		As Previously Reported			As Restated			As Previously Reported			As Restated			31-Dec-13
	Revenue	$	39,468		$	39,468		$	185,517		$	185,517		$	39,468
	Cost of revenue		15,609			15,609			66,827			66,827			15,609
	Gross profit		23,859			23,859			118,690			118,690			23,859
	Operating expenses:
	Research and development		2,898,253			3,061,332			8,285,406			8,668,077			2,896,691
	General and administrative expenses		3,211,866			3,220,434			9,148,133			9,174,230			2,882,837
	Change in estimate of loss on settlement of litigation		–			–			–			–			6,228,621
	Total operating expenses		6,110,119			6,281,766			17,433,539			17,842,307			12,008,149
	Loss from operations		(6,086,260	)		(6,257,907	)		(17,314,849	)		(17,723,617	)		(11,984,290	)
	Non-operating income (expense):
	Interest income		162,548			162,548			165,340			165,340			578
	Interest expense and late fees		(271,021	)		(271,021	)		(1,165,438	)		(1,165,438	)		(272,146	)
	Finance gain (cost)		343,002			19,002			(637,257	)		64,743			30,419
	Fines and penalties		–			–			(587,147	)		(587,147	)		(375,080	)
	Gain on extinguishment of debt		–			–			438,587			438,587			–
	Adjustments to fair value of unsettled warrant liability		–			455,034			–			(714,151	)		606,713
	Adjustments to fair value of derivatives		146,609			146,609			371,255			371,255			121,986
	Total non-operating expense		381,138			512,172			(1,414,660	)		(1,426,811	)		112,470
	Loss before provision for income tax		(5,705,122	)		(5,745,735	)		(18,729,509	)		(19,150,428	)		(11,871,820	)
	Provision for income tax		–			–			–			–			–
	Net loss	$	(5,705,122	)	$	(5,745,735	)	$	(18,729,509	)	$	(19,150,428	)	$	(11,871,820	)
	Loss per share:
	Basic	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.00	)
	Diluted		(0.00	)		(0.00	)		(0.01	)		(0.01	)		(0.00	)
	Weighted average shares outstanding:
	Basic		2,573,191,224			2,573,191,224			2,451,391,145			2,451,391,145			2,592,594,262
	Diluted		2,573,191,224			2,573,191,224			2,451,391,145			2,451,391,145			2,592,594,262
	2012 Quarterly Consolidated Statements of Operations (unaudited)
		31-Mar-12						30-Jun-12
	Three Months Ended						Three Months Ended						Six Months Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Revenue	$	55,685		$	55,685		$	218,184		$	218,184		$	273,869		$	273,869
Cost of revenue		15,609			15,609			15,609			15,609			31,218			31,218
Gross profit		40,076			40,076			202,575			202,575			242,651			242,651
Operating expenses:
Research and development		2,440,542			4,911,359			2,068,098			2,285,859			4,508,640			7,197,218
General and administrative expenses		3,019,005			4,474,172			2,612,471			2,316,060			5,631,476			6,790,232
Total operating expenses		5,459,547			9,385,531			4,680,569			4,601,919			10,140,116			13,987,450
Loss from operations		(5,419,471	)		(9,345,455	)		(4,477,994	)		(4,399,344	)		(9,897,465	)		(13,744,799	)
Non-operating income (expense):
Interest income		5,077			5,077			4,508			4,508			9,585			9,585
Interest expense and late fees		(272,324	)		(272,324	)		(275,292	)		(275,292	)		(547,616	)		(547,616	)
Finance gain (cost)		115,827			(1,684,173	)		3,555,254			2,205,254			3,671,081			521,081
Fines and penalties		–			–			(3,500,000	)		(3,500,000	)		(3,500,000	)		(3,500,000	)
Adjustments to fair value of unsettled warrant liability		–			(315,996	)		–			1,579,980			–			1,263,984
Adjustments to fair value of derivatives		(141,599	)		(141,599	)		734,081			734,081			592,482			592,482
Total non-operating expense		(293,019	)		(2,409,015	)		518,551			748,531			225,532			(1,660,484	)
Loss before provision for income tax		(5,712,490	)		(11,754,470	)		(3,959,443	)		(3,650,813	)		(9,671,933	)		(15,405,283	)
Provision for income tax		–			–			–			–			–			–
Net loss	$	(5,712,490	)	$	(11,754,470	)	$	(3,959,443	)	$	(3,650,813	)	$	(9,671,933	)	$	(15,405,283	)
Loss per share:
Basic	$	(0.00	)	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)
Diluted		(0.00	)		(0.01	)		(0.00	)		(0.00	)		(0.00	)		(0.01	)
Weighted average shares outstanding:
Basic		1,942,293,307			1,942,293,307			2,076,212,012			2,076,212,012			2,010,442,657			2,010,442,657
Diluted		1,942,293,307			1,942,293,307			2,076,212,012			2,076,212,012			2,010,442,657			2,010,442,657
2012 Quarterly Consolidated Statements of Operations (unaudited)
	30-Sep-12												31-Dec-12
	Three Months Ended						Nine Months Ended						Three Months Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Revenue	$	68,184		$	68,184		$	342,053		$	342,053		$	124,434		$	124,434
Cost of revenue		15,609			15,609			46,827			46,827			70,609			70,609
Gross profit		52,575			52,575			295,226			295,226			53,825			53,825
Operating expenses:
Research and development		2,808,300			3,026,061			7,316,940			10,223,279			3,717,896			3,935,657
General and administrative expenses		2,249,818			2,146,351			7,881,294			8,936,583			2,570,936			2,496,283
Total operating expenses		5,058,118			5,172,412			15,198,234			19,159,862			6,288,832			6,431,940
Loss from operations		(5,005,543	)		(5,119,837	)		(14,903,008	)		(18,864,636	)		(6,235,007	)		(6,378,115	)
Non-operating income (expense):
Interest income		3,585			3,585			13,170			13,170			2,411			2,411
Interest expense and late fees		(278,493	)		(278,493	)		(826,109	)		(826,109	)		(278,493	)		(278,493	)
Finance gain (cost)		(2,891,600	)		(1,991,600	)		779,481			(1,470,519	)		(4,451,451	)		(5,544,951	)
Gain (loss) on disposal of fixed assets		–			–			–			–			(17,138	)		(17,138	)
Fines and penalties		–			–			(3,500,000	)		(3,500,000	)		–			–
Adjustments to fair value of unsettled warrant liability		–			(903,749	)		–			360,235			–			1,030,147
Adjustments to fair value of derivatives		(336,200	)		(336,200	)		256,282			256,282			633,601			633,601
Total non-operating expense		(3,502,708	)		(3,506,457	)		(3,277,176	)		(5,166,941	)		(4,111,070	)		(4,174,423	)
Loss before provision for income tax		(8,508,251	)		(8,626,294	)		(18,180,184	)		(24,031,577	)		(10,346,077	)		(10,552,538	)
Provision for income tax		–			–			–			–			–			–
Net loss	$	(8,508,251	)	$	(8,626,294	)	$	(18,180,184	)	$	(24,031,577	)	$	(10,346,077	)	$	(10,552,538	)
Loss per share:
Basic	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	(0.00	)	$	(0.00	)
Diluted		(0.00	)		(0.00	)		(0.01	)		(0.01	)		(0.00	)		(0.00	)
Weighted average shares outstanding:
Basic		2,122,463,857			2,122,463,857			2,048,055,615			2,048,055,615			2,193,859,375			2,193,859,375
Diluted		2,122,463,857			2,122,463,857			2,048,055,615			2,048,055,615			2,193,859,375			2,193,859,375
2011 Quarterly Consolidated Statements of Operations (unaudited)
	31-Mar-11						30-Jun-11
	Three Months Ended						Three Months Ended						Six Months Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Revenue	$	153,688		$	153,688		$	153,688		$	153,688		$	307,376		$	307,376
Cost of revenue		22,900			22,900			281,500			281,500			304,400			304,400
Gross profit		130,788			130,788			(127,812	)		(127,812	)		2,976			2,976
Operating expenses:
Research and development		1,474,773			1,514,533			1,532,271			1,572,031			3,007,044			3,086,564
General and administrative expenses		3,197,526			2,837,974			1,951,728			1,575,620			5,149,254			4,413,594
Loss on settlement of litigation		294,144			294,144			–			–			294,144			294,144
Total operating expenses		4,966,443			4,646,651			3,483,999			3,147,651			8,450,442			7,794,302
Loss from operations		(4,835,655	)		(4,515,863	)		(3,611,811	)		(3,275,463	)		(8,447,466	)		(7,791,326	)
Non-operating income (expense):
Interest income		11,784			11,784			10,765			10,765			22,549			22,549
Interest expense and late fees		(681,710	)		(681,710	)		(272,171	)		(272,171	)		(953,881	)		(953,881	)
Finance gain (cost)		(2,625,875	)		(2,625,875	)		(245,734	)		(245,734	)		(2,871,609	)		(2,871,609	)
Loss attributable to equity method investments		–			–			–			–			–			–
Adjustments to fair value of unsettled warrant liability		–			1,579,980			–			(126,398	)		–			1,453,582
Adjustments to fair value of derivatives		4,789,419			4,789,419			(701,198	)		(701,198	)		4,088,221			4,088,221
Total non-operating expense		1,493,618			3,073,598			(1,208,338	)		(1,334,736	)		285,280			1,738,862
Loss before provision for income tax		(3,342,037	)		(1,442,265	)		(4,820,149	)		(4,610,199	)		(8,162,186	)		(6,052,464	)
Provision for income tax		–			–			–			–			–			–
Net loss	$	(3,342,037	)	$	(1,442,265	)	$	(4,820,149	)	$	(4,610,199	)	$	(8,162,186	)	$	(6,052,464	)
Loss per share:
Basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.01	)	$	(0.00	)
Diluted		(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.01	)		(0.00	)
Weighted average shares outstanding:
Basic		1,478,231,834			1,478,231,834			1,543,519,167			1,543,519,167			1,510,945,682			1,510,945,682
Diluted		1,478,231,834			1,478,231,834			1,543,519,167			1,543,519,167			1,510,945,682			1,510,945,682
2011 Quarterly Consolidated Statements of Operations (unaudited)
	30-Sep-11												31-Dec-11
	Three Months Ended						Nine Months Ended						Three Months Ended
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
Revenue	$	132,805		$	132,805		$	440,181		$	440,181		$	66,238		$	66,238
Cost of revenue		16,650			16,650			321,050			321,050			22,900			22,900
Gross profit		116,155			116,155			119,131			119,131			43,338			43,338
Operating expenses:
Research and development		4,035,722			4,119,918			7,042,766			7,206,482			2,910,458			2,547,277
General and administrative expenses		2,976,219			890,058			8,125,473			5,303,652			2,899,986			2,132,057
Loss on settlement of litigation		–			–			294,144			294,144			–			–
Total operating expenses		7,011,941			5,009,976			15,462,383			12,804,278			5,810,444			4,679,334
Loss from operations		(6,895,786	)		(4,893,821	)		(15,343,252	)		(12,685,147	)		(5,767,106	)		(4,635,996	)
Non-operating income (expense):
Interest income		5,833			5,833			28,382			28,382			6,732			6,732
Interest expense and late fees		(275,378	)		(275,378	)		(1,229,259	)		(1,229,259	)		(281,434	)		(281,434	)
Finance gain (cost)		(48,197,130	)		(43,526,130	)		(51,068,739	)		(46,397,739	)		(9,765,431	)		(8,586,431	)
Loss attributable to equity method investments		(820,000	)		(820,000	)		(820,000	)		(820,000	)		–			–
Adjustments to fair value of unsettled warrant liability		–			2,275,172			–			3,728,754			–			4,234,347
Adjustments to fair value of derivatives		3,661,432			3,661,432			7,749,653			7,749,653			3,695,335			3,695,335
Total non-operating expense		(45,625,243	)		(38,679,071	)		(45,339,963	)		(36,940,209	)		(6,344,798	)		(931,451	)
Loss before provision for income tax		(52,521,029	)		(43,572,892	)		(60,683,215	)		(49,625,356	)		(12,111,904	)		(5,567,447	)
Provision for income tax		–			–			–			–			–			–
Net loss	$	(52,521,029	)	$	(43,572,892	)	$	(60,683,215	)	$	(49,625,356	)	$	(12,111,904	)	$	(5,567,447	)
Loss per share:
Basic	$	(0.03	)	$	(0.03	)	$	(0.04	)	$	(0.03	)	$	(0.01	)	$	(0.00	)
Diluted		(0.03	)		(0.03	)		(0.04	)		(0.03	)		(0.01	)		(0.00	)
Weighted average shares outstanding:
Basic		1,613,530,283			1,613,530,283			1,546,379,685			1,546,379,685			1,547,852,307			1,547,852,307
Diluted		1,613,530,283			1,613,530,283			1,546,379,685			1,546,379,685			1,547,852,307			1,547,852,307
Consolidated Statement of Cash Flows	'
	2013 Quarterly Consolidated Statements of Cash Flows (unaudited)
		Three Months Ended March 31, 2013						Six Months Ended June 30, 2013						Nine Months Ended September 30, 2013
		As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
	CASH FLOWS FROM OPERATING ACTIVITIES:
	Net loss	$	(6,413,041	)	$	(6,510,637	)	$	(13,024,387	)	$	(13,404,693	)	$	(18,729,509	)	$	(19,150,428	)
	Adjustments to reconcile net loss to net cash used in operating activities:
	Depreciation		17,852			17,852			37,702			37,702			64,320			64,320
	Amortization of deferred charges		34,359			34,359			81,218			81,218			96,828			96,828
	Amortization of deferred revenue		(87,781	)		(87,781	)		(145,999	)		(145,999	)		(185,467	)		(185,467	)
	Redeemable preferred stock dividend accrual		34,069			34,069			43,873			43,873			43,873			43,873
	Stock based compensation		1,018,060			1,132,624			1,793,884			2,031,005			2,650,530			3,059,298
	Amortization of deferred issuance costs		198,685			198,685			303,765			303,765			403,160			403,160
	Amortization of discounts		171,157			171,157			326,770			326,770			414,396			414,396
	Adjustments to fair value of unsettled warrant obligation		–			613,032			–			1,169,185			–			714,151
	Adjustments to fair value of derivatives		(166,933	)		(166,933	)		(224,646	)		(224,646	)		(371,255	)		(371,255	)
	Shares of common stock issued for compensation		420,955			420,955			849,659			849,659			1,272,363			1,272,363
	Non-cash financing costs		(389,700	)		(1,019,700	)		(128,233	)		(1,154,233	)		(128,233	)		(830,233	)
	Gain on debt extinguishment		–			–			(438,587	)		(438,587	)		(438,587	)		(438,587	)
	Options issued for consulting services		10,418			10,418			22,145			22,145			32,550			32,550
	Changes in operating assets and liabilities:
	Grants receivable		–			–			–			–			70,740			70,740
	Prepaid expenses and other assets		(382,327	)		(382,327	)		(210,873	)		(210,873	)		(847,021	)		(847,021	)
	Accounts payable and other liabilities		(2,742,221	)		(2,742,221	)		(1,769,780	)		(1,769,780	)		(1,759,433	)		(1,759,433	)
	Net cash used in operating activities		(8,276,448	)		(8,276,448	)		(12,483,489	)		(12,483,489	)		(17,410,745	)		(17,410,745	)
	CASH FLOWS FROM INVESTING ACTIVITIES:
	Purchases of property and equipment		(98,386	)		(98,386	)		(434,598	)		(434,598	)		(586,091	)		(586,091	)
	Payment of lease deposits		(8,805	)		(8,805	)		(8,364	)		(8,364	)		(36,895	)		(36,895	)
	Net cash used in investing activities		(107,191	)		(107,191	)		(442,962	)		(442,962	)		(622,986	)		(622,986	)
	CASH FLOWS FROM FINANCING ACTIVITIES:
	Proceeds from issuance of common stock		5,253,221			5,253,221			11,748,653			11,748,653			16,844,532			16,844,532
	Repayment of senior secured convertible debentures		–			–			(600,000	)		(600,000	)		(600,000	)		(600,000	)
	Net cash provided by financing activities		5,253,221			5,253,221			11,148,653			11,148,653			16,244,532			16,244,532
	Net decrease in cash and cash equivalents		(3,130,418	)		(3,130,418	)		(1,777,798	)		(1,777,798	)		(1,789,199	)		(1,789,199	)
	Cash and cash equivalents, beginning of period		7,241,852			7,241,852			7,241,852			7,241,852			7,241,852			7,241,852
	Cash and cash equivalents, end of period	$	4,111,434		$	4,111,434		$	5,464,054		$	5,464,054		$	5,452,653		$	5,452,653
	2012 Quarterly Consolidated Statements of Cash Flows (unaudited)
		Three Months Ended March 31, 2012						Six Months Ended June 30, 2012						Nine Months Ended September 30, 2012
		As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
	CASH FLOWS FROM OPERATING ACTIVITIES:
	Net loss	$	(5,712,490	)	$	(11,754,470	)	$	(9,671,933	)	$	(15,405,283	)	$	(18,180,184	)	$	(24,031,577	)
	Adjustments to reconcile net loss to net cash used in operating activities:
	Depreciation		12,091			12,091			25,440			25,440			35,541			35,541
	Amortization of deferred charges		15,609			15,609			31,218			31,218			46,827			46,827
	Amortization of deferred revenue		(55,685	)		(55,685	)		(273,869	)		(273,869	)		(342,053	)		(342,053	)
	Redeemable preferred stock dividend accrual		31,308			31,308			65,583			65,583			100,409			100,409
	Stock based compensation		1,100,998			5,026,982			2,093,657			5,940,991			2,892,403			6,854,031
	Amortization of deferred issuance costs		200,893			200,893			401,786			401,786			604,887			604,887
	Amortization of discounts		40,123			40,123			80,247			80,247			120,813			120,813
	Adjustments to fair value of unsettled warrant obligation		–			315,996			–			(1,263,984	)		–			(360,235	)
	Adjustments to fair value of derivatives		141,599			141,599			(592,482	)		(592,482	)		(256,282	)		(256,282	)
	Shares of common stock issued for compensation		421,642			421,642			840,033			840,033			–			–
	Non-cash financing costs		(115,827	)		1,684,173			(3,671,081	)		(521,081	)		1,263,676			3,513,676
	Gain on debt extinguishment		–			–			–			–			(779,481	)		(779,481	)
	Options issued for consulting services		29,172			29,172			38,571			38,571			51,122			51,122
	Changes in operating assets and liabilities:
	Grants receivable		–			–			–			–			(140,046	)		(140,046	)
	Prepaid expenses and other assets		41,986			41,986			118,536			118,536			145,784			145,784
	Accounts payable and other liabilities		(967,204	)		(967,204	)		2,798,092			2,798,092			2,881,360			2,881,360
	Net cash used in operating activities		(4,815,785	)		(4,815,785	)		(7,716,202	)		(7,716,202	)		(11,555,224	)		(11,555,224	)
	CASH FLOWS FROM INVESTING ACTIVITIES:
	Purchases of property and equipment		(9,177	)		(9,177	)		(24,269	)		(24,269	)		(10,269	)		(10,269	)
	Net cash used in investing activities		(9,177	)		(9,177	)		(24,269	)		(24,269	)		(10,269	)		(10,269	)
	CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of preferred stock		2,500,000			2,500,000			4,500,000			4,500,000			6,000,000			6,000,000
Proceeds from issuance of common stock		–			–			–			–			800,000			800,000
Repayment of senior secured convertible debentures		–			–			–			–			(83,500	)		(83,500	)
Net cash provided by financing activities		2,500,000			2,500,000			4,500,000			4,500,000			6,716,500			6,716,500
Net decrease in cash and cash equivalents		(2,324,962	)		(2,324,962	)		(3,240,471	)		(3,240,471	)		(4,848,993	)		(4,848,993	)
Cash and cash equivalents, beginning of period		13,103,007			13,103,007			13,103,007			13,103,007			13,103,007			13,103,007
Cash and cash equivalents, end of period	$	10,778,045		$	10,778,045		$	9,862,536		$	9,862,536		$	8,254,014		$	8,254,014
2011 Quarterly Consolidated Statements of Cash Flows (unaudited)
	Three Months Ended March 31, 2011						Six Months Ended June 30, 2011						Nine Months Ended September 30, 2011						Year Ended December 31, 2011
	As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated			As Previously Reported			As Restated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(3,342,037	)	$	(1,442,265	)	$	(8,162,186	)	$	(6,052,464	)	$	(60,683,215	)	$	(49,625,356	)	$	(72,795,119	)	$	(55,192,803	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		21,285			21,285			38,394			38,394			53,949			53,949			67,161			67,161
Amortization of deferred charges		22,900			22,900			45,800			45,800			68,700			68,700			91,600			91,600
Amortization of deferred revenue		(153,688	)		(153,688	)		(307,376	)		(307,376	)		(415,231	)		(415,231	)		(506,419	)		(506,419	)
Redeemable preferred stock dividend accrual		28,149			28,149			59,301			59,301			90,953			90,953			122,605			122,605
Stock based compensation		362,695			42,903			741,946			85,806			2,831,250			173,145			3,856,501			67,286
Amortization of deferred issuance costs		594,647			594,647			795,540			795,540			998,641			998,641			1,201,741			1,201,741
Amortization of discounts		58,913			58,913			94,022			94,022			132,736			132,736			180,172			180,172
Adjustments to fair value of unsettled warrant obligation		–			(1,579,980	)		–			(1,453,582	)		–			(3,728,754	)		–			(7,963,101	)
Adjustments to fair value of derivatives		(4,789,419	)		(4,789,419	)		(4,088,221	)		(4,088,221	)		(7,749,653	)		(7,749,653	)		(11,444,988	)		(11,444,988	)
Shares of common stock issued for services		590,438			590,438			475,900			475,900			475,900			475,900			475,900			475,900
Shares of common stock issued for compensation		–			–			423,138			423,138			2,025,658			2,025,658			2,673,960			2,673,960
Loss on settlement of litigation		294,144			294,144			294,144			294,144			294,144			294,144			294,144			294,144
Non-cash financing costs		2,625,875			2,625,875			2,871,609			2,871,609			51,068,739			46,397,739			60,834,170			54,984,170
Amortization of deferred joint venture obligations		(3,265	)		(3,265	)		–			–			–			–			(6,870	)		(6,870	)
Options issued for consulting services		664,944			664,944			769,347			769,347			794,714			794,714			834,443			834,443
Changes in operating assets and liabilities:
Grants receivable		–			–			–			–			(24,950	)		(24,950	)		–			–
Prepaid expenses and other assets		(36,999	)		(36,999	)		(344,497	)		(344,497	)		(278,248	)		(278,248	)		(241,248	)		(241,248	)
Accounts payable and other liabilities		(317,082	)		(317,082	)		(396,056	)		(396,056	)		(512,260	)		(512,260	)		734,960			734,960
Net cash used in operating activities		(3,378,500	)		(3,378,500	)		(6,689,195	)		(6,689,195	)		(10,828,173	)		(10,828,173	)		(13,627,287	)		(13,627,287	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment		(19,072	)		(19,072	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)
Net cash used in investing activities		(19,072	)		(19,072	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)		(36,830	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants and options		1,258,136			1,258,136			2,950,940			2,950,940			3,377,715			3,377,715			3,377,715			3,377,715
Proceeds from issuance of preferred stock		–			–			4,000,000			4,000,000			5,500,000			5,500,000			7,500,000			7,500,000
Net cash provided by financing activities		1,258,136			1,258,136			6,950,940			6,950,940			8,877,715			8,877,715			10,877,715			10,877,715
Net decrease in cash and cash equivalents		(2,139,436	)		(2,139,436	)		224,915			224,915			(1,987,288	)		(1,987,288	)		(2,786,402	)		(2,786,402	)
Cash and cash equivalents, beginning of period		15,889,409			15,889,409			15,889,409			15,889,409			15,889,409			15,889,409			15,889,409			15,889,409
Cash and cash equivalents, end of period	$	13,749,973		$	13,749,973		$	16,114,324		$	16,114,324		$	13,902,121		$	13,902,121		$	13,103,007		$	13,103,007
Operating results for all year	'
	Selected operating results for the quarters ended 2013, 2012 and 2011
		For the Quarter Ended
		31-Mar-13			30-Jun-13			30-Sep-13			31-Dec-13
		(restated)			(restated)			(restated)
	Revenue	$	87,781		$	58,268		$	39,468		$	39,468
	Loss from operations		(5,879,006	)		(5,586,704	)		(6,257,907	)		(11,984,290	)
	Net loss		(6,510,637	)		(6,894,056	)		(5,745,735	)		(11,871,820	)
	Loss per share:
	Basic	$	(0.00	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
	Diluted		(0.00	)		(0.00	)		(0.00	)		(0.00	)
		For the Quarter Ended
		31-Mar-12			30-Jun-12			30-Sep-12			31-Dec-12
		(restated)			(restated)			(restated)			(restated)
	Revenue	$	55,685		$	218,184		$	68,184		$	124,434
	Loss from operations		(9,345,455	)		(4,399,344	)		(5,119,837	)		(6,378,115	)
	Net loss		(11,754,470	)		(3,650,813	)		(8,626,294	)		(10,552,538	)
	Loss per share:
	Basic	$	(0.01	)	$	(0.00	)	$	(0.00	)	$	(0.00	)
	Diluted		(0.01	)		(0.00	)		(0.00	)		(0.00	)
		For the Quarter Ended
		31-Mar-11			30-Jun-11			30-Sep-11			31-Dec-11
		(restated)			(restated)			(restated)			(restated)
	Revenue	$	153,688		$	153,688		$	132,805		$	66,238
	Loss from operations		(4,515,863	)		(3,275,463	)		(4,893,821	)		(4,635,996	)
	Net loss		(1,442,265	)		(4,610,199	)		(43,572,892	)		(5,567,447	)
	Loss per share:
	Basic	$	(0.00	)	$	(0.00	)	$	(0.03	)	$	(0.00	)
	Diluted		(0.00	)		(0.00	)		(0.03	)		(0.00	)

2_RESTATEMENT_OF_PREVIOUSLY_IS2

2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details-Net loss 2012 and 2011) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net adjustments	'	'	'
Net loss, restated	($31,022,248)	($34,584,115)	($55,192,803)
Weighted average shares used in computing net loss per share:	'	'	'
Basic	'	2,086,619,741	1,582,095,095
Diluted	'	2,086,619,741	1,582,095,095
As restated [Member]	'	'	'
Net loss, as previously reported	'	-28,526,261	-72,795,119
Net adjustments	'	'	'
Research and development	'	-3,124,100	199,465
General and administrative expenses	'	-980,636	3,589,750
Adjustments to fair value of unsettled warrant obligation	'	-1,953,118	13,813,101
Net loss, restated	'	-34,584,115	-55,192,803
Basic loss per share:	'	'	'
Net loss, as previously reported	'	($0.01)	($0.05)
Net adjustments	'	'	'
Research and development	'	$0	$0
General and administrative expenses	'	($0.01)	$0
Adjustments to fair value of unsettled warrant obligation	'	$0	$0.02
Net loss, restated	'	($0.02)	($0.03)
Diluted loss per share:	'	'	'
Net loss, as previously reported	'	($0.01)	($0.05)
Net adjustments	'	'	'
Research and development	'	$0	$0
General and administrative expenses	'	($0.01)	$0
Adjustments to fair value of unsettled warrant obligation	'	$0	$0.02
Net loss, restated	'	($0.02)	($0.03)
Weighted average shares used in computing net loss per share:	'	'	'
Basic	'	2,086,619,741	1,582,095,095
Diluted	'	2,086,619,741	1,582,095,095
Accumulated Deficit adjustments	'	'	'
Accumulated deficit, as previously reported	'	'	-180,949,523
Adjustments to Additional Paid in Capital for tainted shares	'	'	1,064,499
Adjustments to fair value of unsettled warrant obligation	'	'	-13,145,436
Accumulated deficit, as restated	'	'	($193,030,460)

2_RESTATEMENT_OF_PREVIOUSLY_IS3

2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details-Balance sheet impact 2012) (USD $)	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash and cash equivalents	$1,743,485	$7,241,852	$13,103,007	$15,889,409
Grants receivable	'	96,425	'	'
Deferred royalty fees, current portion	62,435	82,435	'	'
Prepaid expenses	896,741	132,044	'	'
Total current assets	2,911,859	7,552,756	'	'
Property and equipment, net	753,576	175,256	'	'
Deferred royalty fees, less current portion	107,780	170,216	'	'
Deposits	68,801	29,856	'	'
Deferred costs, net	65,903	568,458	'	'
Total assets	3,907,919	8,496,542	'	'
Accounts payable	2,285,331	2,956,743	'	'
Accrued expenses	3,545,713	3,210,908	'	'
Accrued settlement	4,086,619	6,807,891	'	'
Convertible promissory notes, current portion	0	256,850	'	'
Senior secured convertible promissory notes, current portion	2,174,676	2,110,000	'	'
Embedded conversion option liabilities, current portion	335,208	460,668	'	'
Unsettled warrant obligation	3,899,391	3,791,953	'	'
Loss contingency accrual	6,431,979	3,670,287	'	'
Deferred revenue, current portion	157,872	224,935	'	'
Total current liabilities	22,916,789	23,490,235	'	'
Senior secured convertible promissory notes, less current portion	1,162,447	3,165,000	'	'
Embedded conversion option liabilities, less current portion	327,792	507,033	'	'
Warrant and option derivative liabilities	284,799	972,381	'	'
Deferred revenue, less current portion	1,749,702	1,907,574	'	'
Total liabilities	26,441,529	30,042,223	'	'
Series A-1 redeemable preferred stock	0	1,598,533	'	'
Preferred stock, Series B	'	1	'	'
Preferred stock, Series C	'	2	'	'
Common stock	2,640,265	2,232,721	'	'
Additional paid-in capital	322,683,874	289,093,619	'	'
Promissory notes receivable, net	-34,013,395	-31,622,696	'	'
Accumulated deficit	-313,844,357	-282,847,861	'	'
Total stockholders' deficit	-22,533,610	-23,144,214	-48,556,062	-46,123,844
Total liabilities and stockholders' deficit	3,907,919	8,496,542	'	'
Scenario, Previously Reported [Member]	'	'	'	'
Cash and cash equivalents	'	7,241,852	'	'
Grants receivable	'	96,425	'	'
Deferred royalty fees, current portion	'	82,435	'	'
Prepaid expenses	'	132,044	'	'
Total current assets	'	7,552,756	'	'
Property and equipment, net	'	175,256	'	'
Deferred royalty fees, less current portion	'	170,216	'	'
Deposits	'	29,856	'	'
Deferred costs, net	'	568,458	'	'
Total assets	'	8,496,542	'	'
Accounts payable	'	2,956,743	'	'
Accrued expenses	'	3,210,908	'	'
Accrued settlement	'	6,807,891	'	'
Convertible promissory notes, current portion	'	256,850	'	'
Senior secured convertible promissory notes, current portion	'	2,110,000	'	'
Embedded conversion option liabilities, current portion	'	460,668	'	'
Unsettled warrant obligation	'	'	'	'
Loss contingency accrual	'	6,176,787	'	'
Deferred revenue, current portion	'	224,935	'	'
Total current liabilities	'	22,204,782	'	'
Senior secured convertible promissory notes, less current portion	'	3,165,000	'	'
Embedded conversion option liabilities, less current portion	'	507,033	'	'
Warrant and option derivative liabilities	'	972,381	'	'
Deferred revenue, less current portion	'	1,907,574	'	'
Total liabilities	'	28,756,770	'	'
Series A-1 redeemable preferred stock	'	1,598,533	'	'
Preferred stock, Series B	'	1	'	'
Preferred stock, Series C	'	2	'	'
Common stock	'	2,232,721	'	'
Additional paid-in capital	'	289,842,597	'	'
Promissory notes receivable, net	'	-31,622,696	'	'
Accumulated deficit	'	-282,311,386	'	'
Total stockholders' deficit	'	-21,858,761	'	'
Total liabilities and stockholders' deficit	'	8,496,542	'	'
Adjustments [Member]	'	'	'	'
Cash and cash equivalents	'	'	'	'
Grants receivable	'	'	'	'
Deferred royalty fees, current portion	'	'	'	'
Prepaid expenses	'	'	'	'
Total current assets	'	'	'	'
Property and equipment, net	'	'	'	'
Deferred royalty fees, less current portion	'	'	'	'
Deposits	'	'	'	'
Deferred costs, net	'	'	'	'
Total assets	'	'	'	'
Accounts payable	'	'	'	'
Accrued expenses	'	'	'	'
Accrued settlement	'	'	'	'
Convertible promissory notes, current portion	'	'	'	'
Senior secured convertible promissory notes, current portion	'	'	'	'
Embedded conversion option liabilities, current portion	'	'	'	'
Unsettled warrant obligation	'	3,791,953	'	'
Loss contingency accrual	'	-2,506,500	'	'
Deferred revenue, current portion	'	'	'	'
Total current liabilities	'	1,285,453	'	'
Senior secured convertible promissory notes, less current portion	'	'	'	'
Embedded conversion option liabilities, less current portion	'	'	'	'
Warrant and option derivative liabilities	'	'	'	'
Deferred revenue, less current portion	'	'	'	'
Total liabilities	'	1,285,453	'	'
Series A-1 redeemable preferred stock	'	'	'	'
Preferred stock, Series B	'	'	'	'
Preferred stock, Series C	'	'	'	'
Common stock	'	'	'	'
Additional paid-in capital	'	-748,978	'	'
Promissory notes receivable, net	'	'	'	'
Accumulated deficit	'	-536,475	'	'
Total stockholders' deficit	'	-1,285,453	'	'
Total liabilities and stockholders' deficit	'	'	'	'

2_RESTATEMENT_OF_PREVIOUSLY_IS4

2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details-Statement of Operations) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Revenue (License fees and royalties)	$224,985	$466,487	$506,419
Cost of Revenue	82,436	117,436	343,950
Gross profit	142,549	349,051	162,469
Research and development	11,564,768	14,158,936	9,753,759
General and administrative expenses	12,057,067	11,432,866	7,435,709
Total operating expenses	29,850,456	25,591,802	17,483,612
Loss from operations	-29,707,907	-25,242,751	-17,321,143
Interest income	165,918	15,581	35,114
Interest expense and late fees	-1,437,584	-1,104,602	-1,510,693
Finance gain (loss)	95,162	-7,015,470	-54,984,170
Gain (loss) on disposal of fixed assets	0	-17,138	0
Fines and penalties	-962,227	-3,500,000	0
Loss attributable to equity method investments	0	0	-820,000
Adjustments to fair value of unsettled warrant obligation	-107,438	1,390,382	7,963,101
Adjustments to fair value of derivatives	493,241	889,883	11,444,988
Total non-operating income (expense)	-1,314,341	-9,341,364	-37,871,660
Loss before provision for income tax	-31,022,248	-34,584,115	-55,192,803
Provision for income tax	0	0	0
Net loss	-31,022,248	-34,584,115	-55,192,803
Loss per share:	'	'	'
Basic	'	($0.02)	($0.03)
Diluted	'	($0.02)	($0.03)
Weighted average shares outstanding:	'	'	'
Basic	'	2,086,619,741	1,582,095,095
Diluted	'	2,086,619,741	1,582,095,095
Scenario, Previously Reported [Member]	'	'	'
Revenue (License fees and royalties)	'	466,487	506,419
Cost of Revenue	'	117,436	343,950
Gross profit	'	349,051	162,469
Research and development	'	11,034,836	9,953,224
General and administrative expenses	'	10,452,230	11,025,459
Total operating expenses	'	21,487,066	294,144
Loss from operations	'	-21,138,015	21,272,827
Interest income	'	15,581	35,114
Interest expense and late fees	'	-1,104,602	-1,510,693
Finance gain (loss)	'	-3,671,970	-60,834,170
Gain (loss) on disposal of fixed assets	'	-17,138	-820,000
Fines and penalties	'	-3,500,000	'
Loss attributable to equity method investments	'	'	-820,000
Adjustments to fair value of unsettled warrant obligation	'	'	'
Adjustments to fair value of derivatives	'	889,883	11,444,988
Total non-operating income (expense)	'	-7,388,246	-51,684,761
Loss before provision for income tax	'	-28,526,261	-72,795,119
Provision for income tax	'	'	'
Net loss	'	-28,526,261	-72,795,119
Loss per share:	'	'	'
Basic	'	($0.01)	($0.05)
Diluted	'	($0.01)	($0.05)
Weighted average shares outstanding:	'	'	'
Basic	'	2,086,619,741	1,582,095,095
Diluted	'	2,086,619,741	1,582,095,095
Adjustments [Member]	'	'	'
Revenue (License fees and royalties)	'	'	'
Cost of Revenue	'	'	'
Gross profit	'	'	'
Research and development	'	3,124,100	-199,465
General and administrative expenses	'	980,636	-3,589,750
Total operating expenses	'	4,104,736	'
Loss from operations	'	-4,104,736	-3,789,215
Interest income	'	'	'
Interest expense and late fees	'	'	'
Finance gain (loss)	'	-3,343,500	5,850,000
Gain (loss) on disposal of fixed assets	'	'	'
Fines and penalties	'	'	7,963,101
Loss attributable to equity method investments	'	'	'
Adjustments to fair value of unsettled warrant obligation	'	1,390,382	7,963,101
Adjustments to fair value of derivatives	'	'	'
Total non-operating income (expense)	'	-1,953,118	13,813,101
Loss before provision for income tax	'	-6,057,854	17,602,316
Provision for income tax	'	'	'
Net loss	'	($6,057,854)	$17,602,316
Loss per share:	'	'	'
Basic	'	($0.01)	$0.02
Diluted	'	($0.01)	$0.02
Weighted average shares outstanding:	'	'	'
Basic	'	2,086,619,741	1,582,095,095
Diluted	'	2,086,619,741	1,582,095,095

2_RESTATEMENT_OF_PREVIOUSLY_IS5

2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details-Stockholders Deficit Impact) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011
Accounting Changes and Error Corrections [Abstract]	'	'
Stockholders' deficit, as previously reported	($21,858,761)	($46,123,844)
Effect of restatement adjustment on net loss for the current period	-6,057,854	17,602,316
Adjustment to additional paid-in capital for the current period	-748,978	-7,953,597
Cumulative adjustment to accumulated deficit	5,521,379	-12,080,937
Total restatement adjustments	-1,285,453	-2,432,218
Stockholders' deficit, as restated	($23,144,214)	($48,556,062)

2_RESTATEMENT_OF_PREVIOUSLY_IS6

2. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Details-Cash Flow Impact) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Net loss	($31,022,248)	($34,584,115)	($55,192,803)
Stock based compensation	3,880,058	7,795,885	67,286
Adjustments to fair value of unsettled warrant obligation	107,438	-1,390,382	-7,963,101
Non-cash financing costs	6,133,459	7,015,470	54,984,170
Net cash used in operating activities	-21,965,199	-14,606,357	-13,627,287
Scenario, Previously Reported [Member]	'	'	'
Net loss	'	-28,526,261	-72,795,119
Stock based compensation	'	3,691,149	3,856,501
Adjustments to fair value of unsettled warrant obligation	'	'	'
Non-cash financing costs	'	3,671,970	60,834,170
Net cash used in operating activities	'	($14,606,357)	($13,627,287)

3_SUMMARY_OF_SIGNIFICANT_ACCOU3

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details-Useful lives)	12 Months Ended
	Dec. 31, 2013
Machinery and equipment [Member]	'
Estimated useful lifes	'
Estimated useful lives	'4 years
Computer Equipment [Member]	'
Estimated useful lifes	'
Estimated useful lives	'3 years
Office furniture [Member]	'
Estimated useful lifes	'
Estimated useful lives	'4 years
Leasehold Improvements [Member]	'
Estimated useful lifes	'
Estimated useful lives	'Lesser of lease life or economic life
Capital leases [Member]	'
Estimated useful lifes	'
Estimated useful lives	'Lesser of lease life or economic life

3_SUMMARY_OF_SIGNIFICANT_ACCOU4

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details-Fair value measurements) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Total Derivative Liabilities	$4,847,190	$5,732,035
Fair Value Inputs Level 1 [Member]	'	'
Total Derivative Liabilities	3,899,391	3,791,953
Fair Value Inputs Level 2 [Member]	'	'
Total Derivative Liabilities	'	122,701
Fair Value Inputs Level 3 [Member]	'	'
Total Derivative Liabilities	947,799	1,817,381
Warrant and option derivative liabilities [Member]	'	'
Total Derivative Liabilities	284,799	284,799
Warrant and option derivative liabilities [Member] | Fair Value Inputs Level 1 [Member]	'	'
Total Derivative Liabilities	'	'
Warrant and option derivative liabilities [Member] | Fair Value Inputs Level 2 [Member]	'	'
Total Derivative Liabilities	'	'
Warrant and option derivative liabilities [Member] | Fair Value Inputs Level 3 [Member]	'	'
Total Derivative Liabilities	284,799	972,381
Embedded conversion option liabilities [Member]	'	'
Total Derivative Liabilities	663,000	967,701
Embedded conversion option liabilities [Member] | Fair Value Inputs Level 1 [Member]	'	'
Total Derivative Liabilities	'	'
Embedded conversion option liabilities [Member] | Fair Value Inputs Level 2 [Member]	'	'
Total Derivative Liabilities	'	122,701
Embedded conversion option liabilities [Member] | Fair Value Inputs Level 3 [Member]	'	'
Total Derivative Liabilities	663,000	845,000
Unsettled warrant obligation [Member]	'	'
Total Derivative Liabilities	3,899,391	3,791,953
Unsettled warrant obligation [Member] | Fair Value Inputs Level 1 [Member]	'	'
Total Derivative Liabilities	3,899,391	3,791,953
Unsettled warrant obligation [Member] | Fair Value Inputs Level 2 [Member]	'	'
Total Derivative Liabilities	'	'
Unsettled warrant obligation [Member] | Fair Value Inputs Level 3 [Member]	'	'
Total Derivative Liabilities	'	'

3_SUMMARY_OF_SIGNIFICANT_ACCOU5

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details-Level 3) (Fair Value Inputs Level 3 [Member], USD $)	12 Months Ended
	Dec. 31, 2013
Embedded conversion option liabilities [Member]	'
Fair value, Beginning balance	$845,000
Total (gains) or losses for the period included in earnings	-182,000
Fair value, Ending balance	663,000
Warrant and option derivative liabilities [Member]	'
Fair value, Beginning balance	972,381
Total (gains) or losses for the period included in earnings	-687,582
Fair value, Ending balance	$284,799

3_SUMMARY_OF_SIGNIFICANT_ACCOU6

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details-Gains derivatives) (Fair Value Inputs Level 3 [Member], USD $)	12 Months Ended
	Dec. 31, 2013
Embedded conversion option liabilities [Member]	'
Total gain included in earnings	$182,000
Warrant and option derivative liabilities [Member]	'
Total gain included in earnings	$687,582

3_SUMMARY_OF_SIGNIFICANT_ACCOU7

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details-Qualitative information) (USD $)	12 Months Ended		3 Months Ended	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2012
	Embedded conversion option liabilities [Member]	Embedded conversion option liabilities [Member]	Embedded conversion option liabilities [Member]	Embedded conversion option liabilities [Member]	Warrant and option derivative liabilities [Member]	Warrant and option derivative liabilities [Member]
	Fair Value Inputs Level 3 [Member]	Fair Value Inputs Level 3 [Member]	Unobservable Input Level 3 [Member]	Unobservable Input Level3 [Member]	Fair Value Inputs Level 3 [Member]	Fair Value Inputs Level 3 [Member]
Fair value, Ending balance	$663,000	$845,000	'	'	$284,799	$972,381
Valuation Techniques	'Binomial Lattice Model	'	'Binomial Lattice Model	'Binomial Lattice Model	'Black Scholes Model	'
Unobservable Input	'Expected volatility of the Company's common stock	'	'Discount for illiquidity of large blocks of the Company's common stock	'Discount rate for contractual debt principal and interest payments	'Expected volatility of the Company's common stock	'
Value	'57%	'	'6.0% to 24.1%	'20.0%	'55% - 150%	'

3_SUMMARY_OF_SIGNIFICANT_ACCOU8

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details-Concentration of risk)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Exeter Life Sciences, Inc [Member]	'	'	'
Revenue concentrations by customer	'	'	24.00%
START Licensing, Inc. [Member]	'	'	'
Revenue concentrations by customer	'	'	13.00%
International Stem Cell Corporation [Member]	'	'	'
Revenue concentrations by customer	25.00%	52.00%	15.00%
CHA Biotech and SCRMI [Member]	'	'	'
Revenue concentrations by customer	58.00%	14.00%	26.00%
Lifeline [Member]	'	'	'
Revenue concentrations by customer	'	28.00%	13.00%
Embryone Sciences [Member]	'	'	'
Revenue concentrations by customer	12.00%	'	'

3_SUMMARY_OF_SIGNIFICANT_ACCOU9

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accounting Policies [Abstract]	'	'	'
Accumulated deficit	$313,844,357	$282,847,861	'
Deposits in excess of federally-insured limits	1,668,232	5,147,037	'
Reduction in research and development costs	160,054	320,112	68,639
Gain (loss) for the changes in the valuation of derivative liabilities	493,241	889,883	11,444,988
License fee revenue	$224,985	$466,487	$506,419
Potentially dilutive shares	197,532,261	235,989,033	119,000,000

4_INVESTMENT_IN_JOINT_VENTURE_1

4. INVESTMENT IN JOINT VENTURE (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]	'	'	'
Current assets	$268,124	$220,347	$194,349
Noncurrent assets	1,333,201	1,281,739	1,082,778
Current liabilities	292,770	297,998	294,469
Noncurrent liabilities	1,875,554	2,167,670	2,459,785
Net revenue	292,116	292,116	417,382
Net income	$396,583	$513,545	($574,713)

4_INVESTMENT_IN_JOINT_VENTURE_2

4. INVESTMENT IN JOINT VENTURE (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]	'	'	'
License fee revenue	$29,412	$29,412	$29,412
Unamortized license fee	$351,715	$381,127	'

5_PROPERTY_AND_EQUIPMENT_Detai

5. PROPERTY AND EQUIPMENT (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Property, Plant and Equipment [Line Items]	'	'
Property and equipment, Gross	$1,735,259	$1,116,982
Accumulated depreciation	-981,683	-941,726
Property and equipment, net	753,576	175,256
Machinery and equipment [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Property and equipment, Gross	1,086,800	907,740
Computer Equipment [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Property and equipment, Gross	49,707	32,986
Office furniture [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Property and equipment, Gross	38,783	6,684
Leasehold Improvements [Member]	'	'
Property, Plant and Equipment [Line Items]	'	'
Property and equipment, Gross	$559,969	$169,572

5_PROPERTY_AND_EQUIPMENT_Detai1

5. PROPERTY AND EQUIPMENT (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Depreciation expense	$93,507	$58,637	$67,161
Machinery and equipment [Member]	'	'	'
Amount yet not placed in service	125,000	'	'
Leasehold Improvements [Member]	'	'	'
Amount yet not placed in service	$339,000	'	'

6_ACCRUED_SETTLEMENT_Details_N

6. ACCRUED SETTLEMENT (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Accrued settlements	$4,086,619	$6,807,891
SEC Civil Action	'	'
Accrued settlements	4,086,619	'
CAMOFI Master LDC	'	'
CAMOFI share value	'	4,500,000
Cash Due	'	2,000,000
Costs reimbursed	'	307,891
Accrued settlements	'	$6,807,891

7_LOSS_CONTINGENCY_ACCRUAL_Det

7. LOSS CONTINGENCY ACCRUAL (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Loss contingency accrual	$6,431,979	$3,670,287
Warrant holder litigation [Member]	'	'
Loss contingency accrual	6,228,621	'
SEC Civil Action [Member]	'	'
Loss contingency accrual	'	3,500,000
Miscellaneous settlements [Member]	'	'
Loss contingency accrual	$203,358	$170,287

8_CONVERTIBLE_PROMISSORY_NOTES2

8. CONVERTIBLE PROMISSORY NOTES (Details) (USD $)	Dec. 31, 2013
Senior Secured Convertible Debentures	$3,600,000
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

8_CONVERTIBLE_PROMISSORY_NOTES3

8. CONVERTIBLE PROMISSORY NOTES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Interest expense amortized debt discount	$1,437,584	$1,104,602	$1,510,693
Debt discount	502,022	161,379	180,172
Unamortized discount	0	30,935	'
JMJ Convertible Promissory Notes [Member]	'	'	'
Convertible promissory notes	0	287,785	'
Fair value of embedded conversion option	0	122,668	'
Interest expense from amortization of debt discounts	30,935	127,207	126,863
Decrease in the fair value derivative liability	28,134	104,878	401,372
Senior Secured Convertible Debentures [Member]	'	'	'
Fair value of embedded conversion option	663,000	845,000	'
Interest expense amortized debt discount	388,000	'	'
Debentures at risk-adjusted rate	3,337,123	5,275,000	'
Gain in the fair value derivative liability	182,000	'	'
Common stock due to conversion of debentures	71,423,767	'	'
Conversion price	$0.06	'	'
Debt discount	725,000	'	'
Effective interest rate	16.35%	'	'
Unamortized discount	262,877	725,000	'
Interest expense debt unamortized discount based on the contractual interest rate	$388,000	'	'
Common stock shares issued as per settlement agreement	11,881,189	'	'

9_UNSETTLED_WARRANT_OBLIGATION1

9. UNSETTLED WARRANT OBLIGATION (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Unsettled Warrant Obligation	'	'
Unsettled warrant obligation	$3,899,391	$3,791,953

10_SERIES_A1_REDEEMABLE_CONVER2

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

10_SERIES_A1_REDEEMABLE_CONVER3

10. SERIES A-1 REDEEMABLE CONVERTIBLE PREFERRED STOCK (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Accrued dividends	'	$2,048,007	$1,432,661
Series A-1 Convertible Redeemable Preferred Stock	'	'	'
Accrued dividends	43,873	135,235	122,605
Embedded conversion option	0	33	'
Decrease in the fair value of the embedded conversion option liability	33	25,950	186,464
Interest expense from amortization of the debt discount and deferred costs	$117,180	$446,741	$445,521

11_SERIES_B_PREFERRED_STOCK_De

11. SERIES B PREFERRED STOCK (Details) (Series B Preferred Stock, USD $)	Dec. 31, 2013	Dec. 31, 2012
Series B Preferred Stock	'	'
Face value of Preferred Stock	$10,000,000	$10,000,000
Accrued dividends	3,587,748	2,352,321
Redemption factor	109.00%	118.00%
Conversion price	14,810,645	14,575,739
Receivable	14,216,166	13,969,559
Net settlement upon conversion	$594,479	$606,180

11_SERIES_B_PREFERRED_STOCK_De1

11. SERIES B PREFERRED STOCK (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Dividends on Preferred Stock	'	$2,048,007	$1,432,661
Series B Preferred Stock	'	'	'
Accrued dividends on preferred stock	3,587,748	2,352,321	'
Accreted interest on the promissory notes	'	'	1,227,173
Dividends on Preferred Stock	'	'	1,229,538
Series B Preferred Stock	'	'	'
Value of secured promissory notes	13,561,607	12,328,558	'
Discount on secured promissory notes	654,559	1,641,001	'
Accrued interest on secured promissory notes	716,166	469,559	'
Face Value reflected	13,500,000	13,500,000	'
Accreted interest on the promissory notes	1,233,050	1,120,623	'
Dividends on Preferred Stock	1,235,427	1,122,783	'
Preferred stock shares outstanding	1,000	1,000	'
Drawn entire commitment	$10,000,000	'	'

12_SERIES_C_PREFERRED_STOCK_De

12. SERIES C PREFERRED STOCK (Details) (Series C Preferred Stock, USD $)	Dec. 31, 2013	Dec. 31, 2012
Series C Preferred Stock	'	'
Face value of Preferred Stock	$17,500,000	$17,500,000
Accrued dividends	2,454,853	1,325,333
Redemption factor	109.00%	118.00%
Conversion price	21,750,790	22,213,893
Receivable	21,815,550	21,429,666
Net settlement upon conversion	($64,760)	$784,227

12_SERIES_C_PREFERRED_STOCK_De1

12. SERIES C PREFERRED STOCK (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Dividends on Preferred Stock	'	$2,048,007	$1,432,661
Series C Preferred Stock	'	'	'
Amount drawn on Preferred commitment	17,500,000	25,000,000	'
Commitment amount	25,000,000	'	'
Value of secured promissory notes	20,451,788	19,294,139	'
Discounts on secured promissory note	1,363,762	2,135,527	'
Accrued interest on secured promissory note	815,549	429,666	'
Face value reflected	21,000,000	21,000,000	'
Accreted interest on the promissory notes	1,157,649	947,696	'
Additional debt discounts	'	1,026,809	'
Dividends on Preferred Stock	$1,129,520	$925,222	'
Preferred stock shares outstanding	1,750	1,750	'

13_WARRANT_SUMMARY_DetailsWarr

13. WARRANT SUMMARY (Details-Warrant activity) (USD $)	12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013
			WarrantMember
Number of Warrants, Beginning	21,757,421	'	21,757,421
Number of Warrants, Granted	14,763,445	'	'
Number of Warrants, Exercised	-14,763,445	'	'
Number of Warrants, Forfeited/Canceled	'	'	-13,927,538
Number of Warrants, Ending	21,757,421	21,757,421	7,829,883
Number of Warrants, Exercisable	'	'	7,829,883
Weighted Average Exercise Price, Beginning	0.18	'	0.18
Weighted Average Exercise Price, Granted	$0.08	'	'
Weighted Average Exercise Price, Exercised	$0.08	'	'
Weighted Average Exercise Price, Forfeited/Canceled	'	'	$0.13
Weighted Average Exercise Price, Ending	0.18	0.18	0.28
Weighted Average Exercise Price, Exercisable	'	'	$0.28
Weighted Average Remaining Contractual Life (in years), Ending	'1 year 10 months 17 days	'2 years 10 months 17 days	'1 year 9 months 25 days
Weighted Average Remaining Contractual Life (in years), Exercisable	'	'	'1 year 9 months 25 days
Aggregate Intrinsic Value outstanding	'	'	'
Aggregate Intrinsic Value Exercisable	'	'	'

13_WARRANT_SUMMARY_DetailsInfo

13. WARRANT SUMMARY (Details-Information by Exercise Price) (USD $)	12 Months Ended				12 Months Ended
	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013	Dec. 31, 2013
			WarrantMember	WarrantMember	Exercise Price $.10 - .11	Exercise Price $.20 - .30	Exercise Price $.38 - .39	Exercise Price $.40 - .45	Exercise Price $.70
Exercise Price Minimum	'	'	'	'	$0.10	$0.20	$0.38	$0.40	'
Exercise Price Maximum	'	'	'	'	$0.11	$0.30	$0.39	$0.45	$0.70
Number of shares	21,757,421	21,757,421	7,829,883	21,757,421	3,239,247	1,630,000	1,330,636	815,000	815,000
Weighted Average Remaining Life (Years)	'1 year 10 months 17 days	'2 years 10 months 17 days	'1 year 9 months 25 days	'	'11 months 5 days	'2 years	'3 years 6 months 25 days	'2 years	'2 years
Weighted Average Exercise Price $	0.18	0.18	0.28	0.18	0.1	0.25	0.39	0.45	0.7

14_STOCKHOLDERS_DEFICIT_TRANSA1

14. STOCKHOLDERS' DEFICIT TRANSACTIONS (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Debenture payment	$6,300,000	$38,427,013	'
Payroll expense	740,000	740,000	370,000
Common stock pursuant to the agreement	4,000,000	6,000,000	'
Payroll expense in the accompanying consolidated statements of operations	569,140	652,568	1,214,504
Employment Contracts [Member]	'	'	'
Additional share issued	1,285,714	'	'
Additional share issued, Per share	$0.06	'	'
Additional share issued, Amortized	79,714	'	'
Board [Member]	'	'	'
Common stock issued, various outside board members	5,453,910	'	'
Common stock valued, compensation for board services	453,213	'	'
Executive compensation [Member]	'	'	'
Common stock issued,executive compensation	9,142,858	'	'
Common stock valued, executive compensation	1,309,140	'	'
Lincoln Park	'	'	'
Common stock sold for cash, Shares	253,260,000	'	'
Common stock sold for cash, Value	17,777,604	'	'
CAMOFI Parties [Member]	'	'	'
Common stock issued for debenture payment	11,881,189	'	'
Debenture payment	$600,000	'	'

15_STOCKBASED_COMPENSATION_Det

15. STOCK-BASED COMPENSATION (Details-Option information)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	Dec. 31, 2010
Options	'	'	'	'
Options/Shares Issued	25,510,714	9,872,518	46,207,499	'
Options outstanding	118,278,611	100,672,803	91,800,285	48,376,119
Options/Shares Available For Grant	300,992,568	'	'	'
2004 Stock Plan	'	'	'	'
Options/Shares Issued	2,492,000	'	'	'
Options outstanding	70,000	'	'	'
Options/Shares Available For Grant	1,215,104	'	'	'
2004 Stock Plan II	'	'	'	'
Options/Shares Issued	1,301,161	'	'	'
Options outstanding	1,071,161	'	'	'
Options/Shares Available For Grant	'	'	'	'
2005 Stock Plan	'	'	'	'
Options/Shares Issued	150,048,071	'	'	'
Options outstanding	117,137,450	'	'	'
Options/Shares Available For Grant	299,777,464	'	'	'
Stock Plans	'	'	'	'
Options/Shares Issued	153,841,232	'	'	'

15_STOCKBASED_COMPENSATION_Det1

15. STOCK-BASED COMPENSATION (Details-Option Activity) (Options, USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Options	'	'	'
Number of Options	'	'	'
Number of Options Outstanding	100,672,803	91,800,285	48,376,119
Number of Options Granted	25,510,714	9,872,518	46,207,499
Number of Options Exercised	'	'	-2,250,000
Number of Options Forfeited/canceled	-7,904,906	-1,000,000	-533,333
Number of Options Outstanding	118,278,611	100,672,803	91,800,285
Vested and expected to vest at December 31, 2013	116,510,015	'	'
Exercisable, December 31, 2013	104,674,029	'	'
Weighted Average Exercise Price	'	'	'
Weighted Average Exercise Price Outstanding, Beginning	$0.22	$0.23	$0.23
Weighted Average Exercise Price Granted	$0.08	$0.10	$0.22
Weighted Average Exercise Price Exercised	'	'	$0.09
Weighted Average Exercise Price Forfeited/canceled	$0.14	$0.12	$0.10
Weighted Average Exercise Price Outstanding, Ending	$0.19	$0.22	$0.23
Weighted Average Exercise Price vest at December 31, 2013	$0.19	'	'
Weighted Average Exercise Price Exercisable, December 31, 2013	$0.21	'	'
Weighted Average Remaining Contractual Life (in years)	'	'	'
Weighted Average Remaining Contractual Life (in years) Outstanding, Beginning	'	'	'7 years 6 months 22 days
Weighted Average Remaining Contractual Life (in years) Outstanding, Ending	'6 years 11 months 12 days	'7 years 5 months 12 days	'8 years 2 months 9 days
Weighted Average Remaining Contractual Life (in years) Vested and expected to vest at December 31, 2013	'6 years 10 months 28 days	'	'
Weighted Average Remaining Contractual Life (in years) Exercisable, December 31, 2013	'6 years 7 months 17 days	'	'
Aggregate Intrinsic Value	'	'	'
Aggregate Intrinsic Value Outstanding, December 31, 2013	$10,319	$399	$3,825
Aggregate Intrinsic Value vested and expected to vest at December 31, 2012	10,319	'	'
Aggregate Intrinsic Value Exercisable, December 31, 2013	$10,319	'	'

15_STOCKBASED_COMPENSATION_Det2

15. STOCK-BASED COMPENSATION (Details-Options outstanding and exercisable) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2011	Dec. 31, 2012	Dec. 31, 2010
$0.05-$0.079	'	'	'	'
Exercise Price, Minimum	$0.05	'	'	'
Exercise Price, Maximum	$0.08	'	'	'
Number of Shares Outstanding	19,980,714	'	'	'
Weighted Average Exercise Price Outstanding	$0.07	'	'	'
Weighted Average Remaining Life (Years) Outstanding	'9 years 5 months 23 days	'	'	'
Number of Shares Exercisable	8,647,381	'	'	'
Weighted Average Exercise Price Exercisable	$0.07	'	'	'
Weighted Average Remaining Life (Years) Exercisable	'9 years 4 months 6 days	'	'	'
$0.08-$0.09	'	'	'	'
Exercise Price, Minimum	$0.08	'	'	'
Exercise Price, Maximum	$0.09	'	'	'
Number of Shares Outstanding	28,325,892	'	'	'
Weighted Average Exercise Price Outstanding	$0.09	'	'	'
Weighted Average Remaining Life (Years) Outstanding	'6 years 2 months 1 day	'	'	'
Number of Shares Exercisable	26,054,643	'	'	'
Weighted Average Exercise Price Exercisable	$0.09	'	'	'
Weighted Average Remaining Life (Years) Exercisable	'5 years 11 months 9 days	'	'	'
$0.10-$0.157	'	'	'	'
Exercise Price, Minimum	$0.10	'	'	'
Exercise Price, Maximum	$0.16	'	'	'
Number of Shares Outstanding	26,943,829	'	'	'
Weighted Average Exercise Price Outstanding	$0.14	'	'	'
Weighted Average Remaining Life (Years) Outstanding	'7 years 7 months 6 days	'	'	'
Number of Shares Exercisable	26,943,829	'	'	'
Weighted Average Exercise Price Exercisable	$0.14	'	'	'
Weighted Average Remaining Life (Years) Exercisable	'7 years 7 months 6 days	'	'	'
$0.185-$0.21	'	'	'	'
Exercise Price, Minimum	$0.19	'	'	'
Exercise Price, Maximum	$0.21	'	'	'
Number of Shares Outstanding	25,934,166	'	'	'
Weighted Average Exercise Price Outstanding	$0.19	'	'	'
Weighted Average Remaining Life (Years) Outstanding	'6 years 8 months 23 days	'	'	'
Number of Shares Exercisable	25,934,166	'	'	'
Weighted Average Exercise Price Exercisable	$0.19	'	'	'
Weighted Average Remaining Life (Years) Exercisable	'6 years 8 months 23 days	'	'	'
$0.25-$0.45	'	'	'	'
Exercise Price, Minimum	$0.25	'	'	'
Exercise Price, Maximum	$0.45	'	'	'
Number of Shares Outstanding	11,071,161	'	'	'
Weighted Average Exercise Price Outstanding	$0.36	'	'	'
Weighted Average Remaining Life (Years) Outstanding	'6 years 9 months 22 days	'	'	'
Number of Shares Exercisable	11,071,161	'	'	'
Weighted Average Exercise Price Exercisable	$0.36	'	'	'
Weighted Average Remaining Life (Years) Exercisable	'6 years 9 months 22 days	'	'	'
$0.85	'	'	'	'
Exercise Price	$0.85	'	'	'
Number of Shares Outstanding	5,417,849	'	'	'
Weighted Average Exercise Price Outstanding	$0.85	'	'	'
Weighted Average Remaining Life (Years) Outstanding	'4 months 21 days	'	'	'
Number of Shares Exercisable	5,417,849	'	'	'
Weighted Average Exercise Price Exercisable	$0.85	'	'	'
Weighted Average Remaining Life (Years) Exercisable	'4 months 21 days	'	'	'
$1.35-$2.48	'	'	'	'
Exercise Price, Minimum	$1.35	'	'	'
Exercise Price, Maximum	$2.48	'	'	'
Number of Shares Outstanding	605,000	'	'	'
Weighted Average Exercise Price Outstanding	$2.02	'	'	'
Weighted Average Remaining Life (Years) Outstanding	'1 year 10 months 13 days	'	'	'
Number of Shares Exercisable	605,000	'	'	'
Weighted Average Exercise Price Exercisable	$2.02	'	'	'
Weighted Average Remaining Life (Years) Exercisable	'1 year 10 months 13 days	'	'	'
Options	'	'	'	'
Number of Shares Outstanding	118,278,611	91,800,285	100,672,803	48,376,119
Weighted Average Exercise Price Outstanding	$0.19	$0.23	$0.22	$0.23
Weighted Average Remaining Life (Years) Outstanding	'	'7 years 6 months 22 days	'	'
Number of Shares Exercisable	104,674,029	'	'	'
Weighted Average Remaining Life (Years) Exercisable	'6 years 7 months 17 days	'	'	'

15_STOCKBASED_COMPENSATION_Det3

15. STOCK-BASED COMPENSATION (Details-Assumptions)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Options	'	'	'
Risk-free interest rate	'	'	0.36%
Expected volatility	'	'	125.00%
Expected dividend yield	0.00%	0.00%	0.00%
Expected forfeitures	13.00%	13.00%	13.00%
Minimum [Member]	'	'	'
Risk-free interest rate	0.66%	0.66%	'
Expected life of the options	'3 years 10 months 24 days	'3 years 10 months 24 days	'3 years 18 days
Expected volatility	134.00%	149.00%	'
Maximum [Member]	'	'	'
Risk-free interest rate	2.17%	0.92%	'
Expected life of the options	'6 years 7 days	'5 years 5 months 12 days	'3 years 2 months 5 days
Expected volatility	158.00%	158.00%	'

15_STOCKBASED_COMPENSATION_Det4

15. STOCK-BASED COMPENSATION (Details-Restricted stock activity) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Number of Restricted Stock Shares	'	'	'
Number of Stock Granted	'	14,763,445	'
Number of Stock Forfeited/canceled	'	'	'
Weighted Average Exercise Grant Date Fair Value	'	'	'
Weighted Average Exercise Grant Date Fair Value, Granted	'	$0.08	'
Weighted Average Grant Date Fair Value, vested	'	$0.08	'
Weighted Average Grant Date Fair Value Forfeited/canceled	'	'	'
Restricted Stock [Member]	'	'	'
Number of Restricted Stock Shares	'	'	'
Number of Stock Outstanding beginning	7,857,143	17,000,000	5,000,000
Number of Stock Granted	1,285,714	'	25,000,000
Number of Stock vested	-9,142,857	-9,142,857	-13,000,000
Number of Stock Forfeited/canceled	'	'	'
Number of Stock Outstanding ending	0	7,857,143	17,000,000
Weighted Average Exercise Grant Date Fair Value	'	'	'
Weighted Average Grant Date Fair Value Outstanding, Beginning	$0.17	$0.17	$0.14
Weighted Average Exercise Grant Date Fair Value, Granted	$0.06	'	$0.17
Weighted Average Grant Date Fair Value, vested	$0.15	$0.17	$0.16
Weighted Average Grant Date Fair Value Outstanding, Ending	'	$0.17	$0.17

15_STOCKBASED_COMPENSATION_Det5

15. STOCK-BASED COMPENSATION (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]	'	'	'
Weighted average grant-date fair value	$0.07	$0.09	$0.16
Stock-based compensation expense to employees	$1,309,140	$1,392,569	$641,904
Compensation expense related to unvested options	$1,056,343	'	'
Compensation expense weighted average period	'9 years 3 months 29 days	'	'

16_COMMITMENTS_AND_CONTINGENCI2

16. COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
2014	$513,820
2015	448,302
2016	349,803
2017	356,659
2018	110,927
Total	$1,779,511

16_COMMITMENTS_AND_CONTINGENCI3

16. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]	'	'	'
Monthly base rent	$13,259	$13,038	$12,817
Rent expense	$419,347	$187,000	$201,000

17_INCOME_TAXES_DetailsTax_rat

17. INCOME TAXES (Details-Tax rate)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]	'	'	'
Statutory federal income tax rate	-34.00%	-34.00%	-34.00%
State income taxes, net of federal taxes	-6.00%	-6.00%	-6.00%
Non-includable items	17.00%	11.00%	29.00%
Increase in valuation allowance	23.00%	29.00%	12.00%
Effective income tax rate	0.00%	0.00%	0.00%

17_INCOME_TAXES_DetailsDeferre

17. INCOME TAXES (Details-Deferred tax assets) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]	'	'
Net operating loss carryforwards	$54,916,539	$49,011,399
Depreciation	155,651	151,194
Capitalized R&D expenses	4,142,634	1,936,824
Deferred revenue	-167,791	-77,592
Losses from joint venture	348,102	348,102
Professional fees	47,558	88,658
Charitable contributions	-20,603	0
Other	4,805	0
Reversal of unpaid liabilities	1,238,538	1,238,538
Net deferred tax asset	$0	$0

17_INCOME_TAXES_DetailsIncome_

17. INCOME TAXES (Details-Income tax expense) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011
Income Tax Disclosure [Abstract]	'	'	'
Current federal income tax	'	'	'
Current state income tax	'	'	'
Deferred taxes	7,968,310	2,021,705	7,878,246
Valuation allowance	-7,968,310	-2,021,705	-7,878,246
Income tax expense	$0	$0	$0

17_INCOME_TAXES_Details_Narrat

17. INCOME TAXES (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]	'	'
Federal net operating loss carry forwards available to offset future taxable income	$13,100,000	$9,000,000
Valuation Allowance	$6,050,000	'