Health Discovery (HDVY) 10-Q 12 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 12, 2013
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'HEALTH DISCOVERY CORP	'
Entity Central Index Key	'0001141788	'
Trading Symbol	'hdvy	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	234,085,644
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Balance_Sheets_unaudited

Balance Sheets (unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current Assets	'	'
Cash	$16,949	$171,424
Accounts Receivable	147	90
Investment in Available For Sale Securities (Note G)	780,000	1,716,160
Total Current Assets	797,096	1,887,674
Equipment, Less Accumulated Depreciation of $53,566 and $47,219	7,319	11,329
Other Assets	'	'
Patents, Less Accumulated Amortization of $2,453,610 and $2,256,571	1,532,184	1,729,224
Total Assets	2,336,599	3,628,227
Current Liabilities	'	'
Accounts Payable - Trade	319,244	139,790
Accrued Liabilities	'	55,500
Deferred Revenue	1,024,988	1,024,988
Total Current Liabilities	1,344,232	1,220,278
Long Term Liabilities	'	'
Deferred Revenue	447,874	1,216,616
Dividends Payable	549,254	455,546
Total Liabilities	2,341,360	2,892,440
Stockholders' (Deficit) Equity	'	'
Common Stock, No Par Value, 300,000,000 Shares Authorized 234,085,644 Shares Issued and Outstanding September 30, 2013 233,773,144 Shares Issued and Outstanding December 31, 2012	25,249,475	25,263,426
Accumulated Deficit	-26,744,251	-26,017,654
Total Stockholders' (Deficit) Equity	-4,761	735,787
Total Liabilities and Stockholders' (Deficit) Equity	2,336,599	3,628,227
Series B Preferred Stock Convertible	'	'
Stockholders' (Deficit) Equity	'	'
Series B Preferred Stock, Convertible, 20,625,000 Shares Authorized, 17,027,675 Issued and Outstanding	$1,490,015	$1,490,015

Balance_Sheets_unaudited_Paren

Balance Sheets (unaudited) (Parenthenticals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Accumulated depreciation on equipment (in dollars)	$53,566	$47,219
Accumulated amortization on patents (in dollars)	$2,453,610	$2,256,571
Common stock, no par value (in dollars per share)	'	'
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	234,085,644	233,773,144
Common stock, shares outstanding	234,085,644	233,773,144
Series B Preferred Stock Convertible	'	'
Preferred stock, shares authorized	20,625,000	20,625,000
Preferred stock, shares issued	17,027,675	17,027,675
Preferred stock, shares outstanding	17,027,675	17,027,675

Statements_of_Operations_unaud

Statements of Operations (unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenues:	'	'	'	'
Licensing & Development	$256,523	$731,894	$797,222	$1,293,960
Operating Expenses:	'	'	'	'
Amortization	65,680	65,680	197,040	197,040
Professional and Consulting Fees	82,427	100,590	580,832	517,059
Legal Fees	116,155	110,210	202,111	174,901
Research and Development Fees	33,668	24,118	92,496	97,267
Compensation	92,374	270,079	416,408	929,227
Other General and Administrative Expenses	63,645	151,225	356,513	525,311
Total Operating Expenses	453,949	721,902	1,845,400	2,440,805
(Loss) / Income From Operations	-197,426	9,992	-1,048,178	-1,146,845
Other (Expense) Income	'	'	'	'
Unrealized (Loss) Gain on Available for Sale Securities (Note G)	-513,059	1,135,380	-318,400	1,502,580
Realized (Loss) Gain/ on Available for Sale Securities (Note G)	158,470	337,841	689,982	337,841
Interest Income	'	67	'	1,059
Settlement Expense	-50,000	'	-50,000	'
Total Other (Expense) Income	-404,589	1,473,288	321,582	1,841,480
Net (Loss) Income	-602,015	1,483,280	-726,596	694,635
Preferred Stock Dividends	34,335	34,965	102,920	454,398
(Loss) Earnings Attributable to Common Shareholders	($636,350)	$1,448,315	($829,516)	$240,237
Weighted Average Outstanding Shares - basic (in shares)	234,085,644	232,457,588	233,912,033	231,907,958
(Loss) Earnings Per Share (basic) (in dollars per share)	($0.00)	$0.01	($0.00)	$0.00
Weighted Average Outstanding Shares - diluted (in shares)	234,085,644	249,826,717	233,912,033	232,523,320
(Loss) Earnings Per Share (diluted) (in dollars per share)	($0.00)	$0.01	($0.00)	$0.00

Statements_of_Cash_Flows_unaud

Statements of Cash Flows (unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash Flows From Operating Activities	'	'
Net (Loss) Income	($726,596)	$694,635
Adjustments to Reconcile Net (Loss) Income to Net Cash Used for Operating Activities:	'	'
Stock-based Compensation	35,863	100,000
Services Exchanged for Options	53,106	86,859
Realized Gain on Investments in Available for Sale Securities Measured in Accordance with the Fair Value Option(Note G)	-689,982	-337,841
Unrealized Loss (Gain) on Investments in Available for Sale Securities Measured in Accordance with the Fair Value Option (Note G)	318,400	-1,502,580
Increase in Deferred Charges	'	-202,850
Depreciation and Amortization	203,386	204,774
Increase in Accounts Receivable	-56	-170
Decrease in Deferred Revenue	-768,741	-278,813
Decrease in Prepaid Expenses and Other Assets	'	45,350
Increase (Decrease) in Accounts Payable - Trade	179,453	-215,788
Decrease in Accrued Liabilities	-55,500	-15,250
Net Cash Used for Operating Activities	-1,450,667	-1,421,674
Cash Flows From Investing Activities:	'	'
Proceeds from Sale of Available for Sale Securities (Note G)	1,307,741	922,711
Purchase of Equipment	-2,336	-3,879
Net Cash Provided by Investing Activities	1,305,405	918,832
Cash Flows From Financing Activities:	'	'
Dividends Paid	-9,213	'
Net Cash Used for Financing Activities	-9,213	'
Net Decrease in Cash	-154,475	-502,842
Cash, at Beginning of Period	171,424	890,326
Cash, at End of Period	16,949	387,484
Non-cash Transactions:	'	'
Acquisition Fair Value of Available for Sale Securities Recorded as an Investment and as Deferred Revenue	'	$1,944,800

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
BASIS OF PRESENTATION	'
	Note A - BASIS OF PRESENTATION
	Health Discovery Corporation (the “Company”) is a technology-oriented company that has acquired patents and has patent pending applications for certain machine learning tools, primarily pattern recognition techniques using advanced mathematical algorithms to analyze large amounts of data thereby uncovering patterns that might otherwise be undetectable.  Such machine learning tools are currently in use for diagnostics, but are also marketed for other applications.  The Company licenses the use of its patented protected technology and may provide services to develop specific learning tools under development agreements or to sell to third parties.
	The accounting principles followed by the Company and the methods of applying these principles conform with accounting principles generally accepted in the United States of America (GAAP).  In preparing financial statements in conformity with GAAP, management is required to make estimates and assumptions that affect the reported amounts in the financial statements.  Actual results could differ significantly from those estimates.
	The interim financial statements included in this report are unaudited but reflect all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial position and results of operations for the interim periods presented.  All such adjustments are of a normal recurring nature.  The results of operations for the three and nine month periods ended September 30, 2013 are not necessarily indicative of the results of a full year’s operations and should be read in conjunction with the financial statements and footnotes included in the Company’s annual report on Form 10-K for the year ended December 31, 2012.

REVENUE_RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2013
Deferred Revenue Disclosure [Abstract]	'
REVENUE RECOGNITION	'
	Note B – REVENUE RECOGNITION
	Revenue is generated through the sale or license of patented technology and processes and from services provided through development agreements.  These arrangements are generally governed by contracts that dictate responsibilities and payment terms.  The Company recognizes revenues as they are earned over the duration of a license agreement or upon the sale of any owned patent once all contractual obligations have been fulfilled.  If a license agreement has an undetermined or unlimited life, the revenue is recognized over the remaining expected life of the patents. Revenue is recognized under development agreements in the period the services are performed.
	The Company treats the incremental direct cost of revenue arrangements, which consists principally of employee bonuses, as deferred charges and these incremental direct costs are amortized to expense using the straight-line method over the same term as the related deferred revenue recognition.
	Deferred revenue represents the unearned portion of payments received in advance for licensing and development agreements.  The Company had total unearned revenue of $1,472,862 as of September 30, 2013.  Unearned revenue of $1,024,988 is recorded as current and $447,874 is classified as long-term.

NET_INCOME_LOSS_PER_SHARE

NET INCOME (LOSS) PER SHARE	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
NET (LOSS) INCOME PER SHARE	'
	Note C - NET (LOSS) INCOME PER SHARE
	Basic Earnings Per Share (“EPS”) includes no dilution and is computed by dividing income or loss available to common shareholders by the weighted average number of common shares outstanding for the period.  Diluted EPS reflects the potential dilution of securities that could share in the earnings or losses of the entity.
	Due to the net loss for the three and nine month periods ending September 30, 2013 the calculation of diluted per share amounts would create an anti-dilutive result and therefore are not presented.
	The following is an analysis of the basic and diluted earnings per common share computations for the three and nine months ended September 30, 2012:
		Three months ended		Nine months ended
		30-Sep-12		30-Sep-12
	Basic:
	Net income attributable to common shareholders	$	1,448,315	$	240,237
	Basic weighted average common shares outstanding		232,457,588		231,907,958
	Basic earnings per common share	$	0.006	$	0.001
	Diluted:
	Net income attributable to common shareholders	$	1,483,280	$	240,237
	Basic weighted average common shares outstanding		232,457,588		231,907,958
	Effect of dilutive securities:
	Conversion of options and warrants		28,954		615,362
	Conversion of preferred shares to common shares		17,340,175		-
	Diluted weighted average common shares outstanding		249,826,717		232,523,320
	Diluted earnings per common share	$	0.006	$	0.001
	During the three and nine month periods ended September 30, 2012, 6,500,000 outstanding stock options and warrants were not included in the computation of diluted earnings per common share because to do so would have an antidilutive effect.  In addition, for the nine-month period ended September 30, 2012, 17,340,175 in convertible preferred stock was not included in the diluted earnings per common share calculation because to do so would have had an antidilutive effect.

STOCKBASED_COMPENSATION_AND_OT

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS	9 Months Ended
	Sep. 30, 2013
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]	'
STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS	'
	Note D - STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS
	Stock-based expense included in our net loss for the three months and nine months ended September 30, 2013 consisted of a credit of $3,967 and a charge of $88,969 respectively for stock options granted to officers and directors.  The credit was related to options being forfeited prior to their vesting schedule where expense had been previously recorded. Stock-based expense included in our net income for the three months and nine months ended September 30, 2012 was $28,953 and $186,859 respectively.
	As of September 30, 2013, there was $56,784 of unrecognized cost related to stock option and warrant grants.  The cost is to be recognized over the remaining vesting periods that average approximately 2.75 years.
	In connection with their election to the Board of Directors, on July 25, 2013, the Company granted to Mr. Henry Kaplan, Mr. Kevin Kowbel, and Mr. Eric Winger each an option to purchase 1,500,000 shares of the Company’s common stock. Upon his appointment to Interim Chief Executive Officer, Mr. Kowbel returned his options back to the Company. As a result, only the options for Messrs. Kaplan and Winger vest 250,000 shares every six months, have an exercise price of $0.027, and expire on July 25, 2023.  The fair value of each option granted is $0.020 and was estimated on the date of grant using the Black-Scholes pricing model with the following assumptions: dividend yield at 0%, risk-free interest rate of 1.91%, an expected life of 5 years, and volatility of 98%.  The aggregate computed value of these options is $60,124, and this amount will be charged as an expense over the three-year vesting period. There is no expense related to Mr. Kowbel as he returned all of the options granted to him back to the Company.
	Due to the expiration of their terms as directors of the Company, Dr. Joseph McKenzie and Mr. David Eckoff’s previously granted options to purchase 3,000,000 shares of the Company’s common stock were forfeited per the option agreement with them.
	Due to his termination as CEO, Mr. Norris forfeited his potential 14,000,000 options to purchase the Company’s common stock as was outlined in his temporary employment contract awarded to him in December 2012. In addition, due to Mr. Sumio Takeichi resigning from the Board of Directors, his option to purchase 1,500,000 shares of the Company’s common stock was also forfeited per the option agreement with him.
	The following schedule summarizes combined stock option and warrant information for the nine months ended September 30, 2013 and the twelve months ended December 31, 2012:
		Option and			Weighted
		Warrant			Average
	2012	Shares			Exercise Price
	Outstanding, January 1, 2012		30,291,667		$	0.16
	Granted		1,000,000		$	0.05
	Exercised		(473,334	)	$	0.07
	Forfeited		(3,000,000	)	$	0.12
	Expired un-exercised		(15,568,333	)	$	0.21
	Outstanding, December 31, 2012		12,250,000		$	0.1
	2013
	Granted		10,000,000		$	0.03
	Exercised		-			-
	Forfeited		(9,500,000	)	$	0.04
	Expired un-exercised		(1,500,000	)	$	0.08
	Outstanding, September 30, 2013		11,250,000		$	0.07
	The following schedule summarizes combined stock option and warrant information as of September 30, 2013:
	Exercise Prices	Number			Weighted-		Number		Weighted
		Outstanding			Average		Exercisable		Average
					Remaining				Remaining
					Contractual				Contractual Life
					Life (years)				(years) of
									Exercisable
									Warrants and
									Options
	$0.03		3,000,000			9.75		-		9.75
	$0.03		1,500,000			9.5		250,000		9.5
	$0.04		1,000,000			4.5		1,000,000		4.5
	$0.05		1,500,000			9.5		-		9.5
	$0.05		1,000,000			4.25		1,000,000		4.25
	$0.08		750,000			0.75		750,000		0.75
	$0.19		2,500,000			7		2,500,000		7
	Total		11,250,000					5,500,000
	The weighted average remaining life of all outstanding warrants and options at September 30, 2013 are 7.5 years.  As of September 30, 2013, the aggregate net intrinsic value of all options and warrants outstanding is $826,000.

PATENTS

PATENTS	9 Months Ended
	Sep. 30, 2013
Goodwill and Intangible Assets Disclosure [Abstract]	'
PATENTS	'
	Note E - PATENTS
	The Company has acquired and developed a group of patents related to biotechnology and certain machine learning tools used for diagnostic and drug discovery. Legal costs associated with patent acquisitions and the application processes for new patents are also capitalized as patent assets. The Company has recorded as other assets $1,532,184 in patents and patent related costs, net of $2,453,610 in accumulated amortization, at September 30, 2013. Amortization charged to operations for the three and nine months ended September 30, 2013, was $65,680 and $197,040 respectively. Estimated amortization expense for the next five years is $262,720 per year.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2013
Stockholders Equity Note [Abstract]	'
STOCKHOLDERS' EQUITY	'
	Note F – STOCKHOLDERS’ EQUITY
	Series B Preferred Stock
	The Company sold to individual investors a total of 19,402,675 shares of Series B Preferred Stock for $1,490,015, net of associated expenses, in 2009.
	The Series B Preferred Stock may be converted into Common Stock of the Company at the option of the holder, without the payment of additional consideration by the holder, so long as the Company has a sufficient number of authorized shares to allow for the exercise of all of its outstanding warrants and options. The Shares of Series B Preferred Stock must be converted into Common Stock of the Company upon the demand by the Company after the fifth anniversary of the date of issuance.
	The Series B Preferred Stock accrues dividends at the rate of 10% of the Series B Original Issue Price per year, which shall be satisfied by the fifth anniversary of the issuance of such shares of the Series B Preferred Stock (the “Original Issue Date”) by the Company’s issuance of the number of shares of Common Stock equal to such accrued dividends divided by the average closing price of the Company’s Common Stock as reported on the Over-the-Counter-Bulletin Board or other exchange on which the Company’s Common Stock trades during the prior ten business days or by the payment of cash, as the Company may determine in its sole discretion. Dividends have been accrued for the Series B Preferred Stock in the amount of $455,546 as of December 31, 2012 and $549,254 as of September 30, 2013.
	Subject to the limitations set forth in the Amended and Restated Articles of Amendment to Articles of Incorporation and applicable law, as long as the Series B Preferred Stock remain outstanding, the Company is required to pay the holders of the Series B Preferred Stock a special dividend equal to 15% of Company Net Revenue collected beginning with the Original Issue Date and ending on the date the Series B Preferred Stock cease to be outstanding (the “Cash Bonus”).  Company Net Revenue include, but is not limited to, revenue derived from development fees, license fees and royalties paid to the Company and revenue collected as a result of the sale of any asset of the Company or distributions from SVM Capital, LLC (each a “Revenue Contract”), reduced by the amount of any out-of-pocket costs or expenses that are directly related to obtaining, negotiating or documenting the Revenue Contracts and the performance of such Revenue Contracts, but does not include the proceeds of any capital infusions from the exercise of outstanding options or warrants or as a result of any capital raise undertaken by the Company.  At any time following the Original Issue Date, the Company may satisfy the special dividend right in its entirety if the aggregate payments made to the Series B Holders are equal to that value which provides an internal annual rate of return of twenty percent (20%) on the Series B Preferred Stock.  The maximum Cash Bonus to be paid each year shall be the aggregate Series B Original Issue Price, and no amounts in excess of such amount shall accrue or carry-over to subsequent years. No special dividends are accrued for the Series B Preferred Stock special dividend as of September 30, 2013 and December 31, 2012.

INVESTMENT_IN_AVAILABLE_FOR_SA

INVESTMENT IN AVAILABLE FOR SALE SECURITIES	9 Months Ended
	Sep. 30, 2013
Available-For-Sale Securities [Abstract]	'
INVESTMENT IN AVAILABLE FOR SALE SECURITIES	'
	Note G – INVESTMENT IN AVAILABLE FOR SALE SECURITIES
	The Company has elected the fair value option in accordance with ASC 825, Financial Instruments, as it relates to the 1,360,000 shares of NeoGenomics common stock that were acquired under the NeoGenomics Master License Agreement executed on January 6, 2012. Management made the election for the fair value option related to this investment because it believes the fair value option for the NeoGenomics common stock provides a better measurement from which to compare financial statements from reporting period to reporting period. No other financial assets or liabilities are fair valued using the fair value option.
	The Company’s investment in NeoGenomics common stock is recorded on the accompanying balance sheets as of September 30, 2013 under the caption Investment in Available for Sale Securities. The carrying value of this investment on the date of acquisition was approximately $1,945,000. The net change in fair value from December 31, 2012 to September 30, 2013 was $371,581 and is classified as other income under the captions Realized and Unrealized Gain on Available for Sale Securities for the nine months ended September 30, 2013 in the accompanying statements of operations. The Company classifies its investment as an available for sale security presented as a trading security on the balance sheet and the fair value is considered a Level 1 investment in the fair value hierarchy. The September 30, 2013 fair value of the investment of $780,000 is based on the closing stock price of the NeoGenomics common stock at the end of the reporting period.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
SUBSEQUENT EVENTS	'
	Note H – SUBSEQUENT EVENTS
	At a duly called meeting of the Board of Directors (the “Board”) held on October 11, 2013, Mr. Norris advised the Board that Mr. Takeichi had resigned from the Board of Directors, effective August 2, 2013.  On October 14, 2013, Mr. Norris emailed the Chairman with what Mr. Norris referred to as a “joint resignation letter” from Messrs. Norris, Takeichi, and Mineta in which they resigned from the Board of Directors. As a result of their resignation from Board, their options to purchase 4,250,000 shares of the Company’s common stock were forfeited. This includes the 1,500,000 options forfeited by Mr. Takeichi as previously discussed in Note D.

COMMITMENTS

COMMITMENTS	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
COMMITMENTS	'
	Note I – COMMITMENTS
	On July 17, 2013, the Company received a Civil Investigative Demand (the “Demand”) from the Federal Trade Commission of the United States of America (the “FTC”) relating to the Company’s MelApp software application. In the Demand, the FTC has requested information relating to potentially unfair or deceptive acts or practices related to (i) false advertising and (ii) consumer privacy and data security, in violation of Trade Commission Act, 15 U.S.C. Sections 45 and 42. The Company has gathered the information and responded to the request by the FTC in accordance with the terms of the Demand.
	On July 29, 2013, the Company entered into a settlement agreement with Stephen D. Barnhill, the former Chairman and Chief Executive Officer of the Company.  Under the terms of the Settlement Agreement, (i) the Company paid $50,000 to, or for the benefit of, Dr. Barnhill and (ii) Dr. Barnhill executed a general release in favor of the Company, subject to any indemnification rights that Dr. Barnhill may have under any agreement, law, or insurance policy maintained by the Company.
	From time to time, the Company is subject to various claims primarily arising in the normal course of business. Although the outcome of these matters cannot be determined, the Company does not believe it is probable that any such claims will result in material costs and expenses.

NET_INCOME_LOSS_PER_SHARE_Tabl

NET INCOME (LOSS) PER SHARE (Table)	9 Months Ended
	Sep. 30, 2013
Earnings Per Share [Abstract]	'
Schedule of analysis of the basic and diluted earnings per common share computations	'
		Three months ended		Nine months ended
		30-Sep-12		30-Sep-12
	Basic:
	Net income attributable to common shareholders	$	1,448,315	$	240,237
	Basic weighted average common shares outstanding		232,457,588		231,907,958
	Basic earnings per common share	$	0.006	$	0.001
	Diluted:
	Net income attributable to common shareholders	$	1,483,280	$	240,237
	Basic weighted average common shares outstanding		232,457,588		231,907,958
	Effect of dilutive securities:
	Conversion of options and warrants		28,954		615,362
	Conversion of preferred shares to common shares		17,340,175		-
	Diluted weighted average common shares outstanding		249,826,717		232,523,320
	Diluted earnings per common share	$	0.006	$	0.001

STOCKBASED_COMPENSATION_AND_OT1

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Tables)	9 Months Ended
	Sep. 30, 2013
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]	'
Schedule of stock option and warrant information	'
		Option and			Weighted
		Warrant			Average
	2012	Shares			Exercise Price
	Outstanding, January 1, 2012		30,291,667		$	0.16
	Granted		1,000,000		$	0.05
	Exercised		(473,334	)	$	0.07
	Forfeited		(3,000,000	)	$	0.12
	Expired un-exercised		(15,568,333	)	$	0.21
	Outstanding, December 31, 2012		12,250,000		$	0.1
	2013
	Granted		10,000,000		$	0.03
	Exercised		-			-
	Forfeited		(9,500,000	)	$	0.04
	Expired un-exercised		(1,500,000	)	$	0.08
	Outstanding, September 30, 2013		11,250,000		$	0.07
Schedule of combined stock option and warrant information	'
	Exercise Prices	Number			Weighted-		Number		Weighted
		Outstanding			Average		Exercisable		Average
					Remaining				Remaining
					Contractual				Contractual Life
					Life (years)				(years) of
									Exercisable
									Warrants and
									Options
	$0.03		3,000,000			9.75		-		9.75
	$0.03		1,500,000			9.5		250,000		9.5
	$0.04		1,000,000			4.5		1,000,000		4.5
	$0.05		1,500,000			9.5		-		9.5
	$0.05		1,000,000			4.25		1,000,000		4.25
	$0.08		750,000			0.75		750,000		0.75
	$0.19		2,500,000			7		2,500,000		7
	Total		11,250,000					5,500,000

REVENUE_RECOGNITION_Detail_Tex

REVENUE RECOGNITION (Detail Textuals) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Deferred Revenue Disclosure [Abstract]	'	'
Total unearned revenue	$1,472,862	'
Unearned revenue current	1,024,988	1,024,988
Unearned revenue long term	$447,874	$1,216,616

NET_INCOME_LOSS_PER_SHARE_Summ

NET INCOME (LOSS) PER SHARE - Summary of basic and diluted earnings per common share computations (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Basic:	'	'	'	'
Net income attributable to common shareholders	($636,350)	$1,448,315	($829,516)	$240,237
Basic weighted average common shares outstanding	234,085,644	232,457,588	233,912,033	231,907,958
Basic earnings per common share	($0.00)	$0.01	($0.00)	$0.00
Diluted:	'	'	'	'
Net income attributable to common shareholders	'	$1,483,280	'	$240,237
Basic weighted average common shares outstanding	234,085,644	232,457,588	233,912,033	231,907,958
Effect of dilutive securities:	'	'	'	'
Conversion of options and warrants	'	28,954	'	615,362
Conversion of preferred shares to common shares	'	17,340,175	'	'
Diluted weighted average common shares outstanding	234,085,644	249,826,717	233,912,033	232,523,320
Diluted earnings per common share	($0.00)	$0.01	($0.00)	$0.00

NET_INCOME_LOSS_PER_SHARE_Deta

NET INCOME (LOSS) PER SHARE (Detail Textuals)	3 Months Ended	9 Months Ended
	Sep. 30, 2012	Sep. 30, 2012
Stock Options and Warrants	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,500,000	6,500,000
Convertible Preferred Stock	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	'	17,340,175

STOCKBASED_COMPENSATION_AND_OT2

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Details) (Stock Options and Warrants, USD $)	9 Months Ended	12 Months Ended
	Sep. 30, 2013	Dec. 31, 2012
Stock Options and Warrants	'	'
Option and Warrant Shares	'	'
Outstanding at beginning of period	12,250,000	30,291,667
Granted	10,000,000	1,000,000
Exercised	'	-473,334
Forfeited	-9,500,000	-3,000,000
Expired un-exercised	-1,500,000	-15,568,333
Outstanding at end of period	11,250,000	12,250,000
Weighted Average Exercise Price	'	'
Outstanding at beginning of period	$0.10	$0.16
Granted	$0.03	$0.05
Exercised	'	$0.07
Forfeited	$0.04	$0.12
Expired un-exercised	$0.08	$0.21
Outstanding at end of period	$0.07	$0.10

STOCKBASED_COMPENSATION_AND_OT3

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Details 1) (Stock Options and Warrants, USD $)	9 Months Ended
	Sep. 30, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Number Outstanding	11,250,000
Weighted- Average Remaining Contractual Life (years)	'7 years 6 months
Number Exercisable	5,500,000
Dollar 0.027	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Exercise Price	0.027
Number Outstanding	3,000,000
Weighted- Average Remaining Contractual Life (years)	'9 years 9 months
Number Exercisable	'
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants and Options	'9 years 9 months
Dollar 0.032	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Exercise Price	0.032
Number Outstanding	1,500,000
Weighted- Average Remaining Contractual Life (years)	'9 years 6 months
Number Exercisable	250,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants and Options	'9 years 6 months
Dollar 0.040	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Exercise Price	0.04
Number Outstanding	1,000,000
Weighted- Average Remaining Contractual Life (years)	'4 years 6 months
Number Exercisable	1,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants and Options	'4 years 6 months
Dollar 0.048	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Exercise Price	0.048
Number Outstanding	1,500,000
Weighted- Average Remaining Contractual Life (years)	'9 years 6 months
Number Exercisable	'
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants and Options	'9 years 6 months
Dollar 0.050	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Exercise Price	0.05
Number Outstanding	1,000,000
Weighted- Average Remaining Contractual Life (years)	'4 years 3 months
Number Exercisable	1,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants and Options	'4 years 3 months
Dollar 0.080	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Exercise Price	0.08
Number Outstanding	750,000
Weighted- Average Remaining Contractual Life (years)	'9 months
Number Exercisable	750,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants and Options	'9 months
Dollar 0.190	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Exercise Price	0.19
Number Outstanding	2,500,000
Weighted- Average Remaining Contractual Life (years)	'7 years
Number Exercisable	2,500,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants and Options	'7 years

STOCKBASED_COMPENSATION_AND_OT4

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Detail Textuals) (Stock Options and Warrants, USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Stock Options and Warrants	'	'	'	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'
Stock-based expense	$3,967	$28,953	$88,969	$186,859
Unrecognized cost related to stock option and warrant grants	$56,784	'	$56,784	'
Recognition period of unrecognized cost related to stock option and warrant grants	'	'	'2 years 9 months	'

STOCKBASED_COMPENSATION_AND_OT5

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Detail textuals 1) (USD $)	1 Months Ended			12 Months Ended		1 Months Ended		9 Months Ended
	Jul. 25, 2013	Jul. 25, 2013	Jul. 25, 2013	Dec. 31, 2012	Dec. 31, 2012	Jul. 25, 2013	Jul. 25, 2013	Sep. 30, 2013	Sep. 30, 2013
	Stock Options	Stock Options	Stock Options	Stock Options	Stock Options	Stock Options	Stock Options	Stock Options	Stock Options and Warrants
		Messrs. Kaplan And Winger	Mr. Henry Kaplan	Mr. Sumio Takeichi	Mr. Norris	Mr. Eric Winger	Mr. Kevin Kowbel	Dr. Joseph McKenzie and Mr. David Eckoff
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'	'	'	'	'
Number of option granted to purchase common stock	'	'	1,500,000	'	'	1,500,000	1,500,000	'	'
Number of option vested for every six month	'	250,000	'	'	'	'	'	'	'
Exercise price of each option granted (in dollars per share)	'	$0.03	'	'	'	'	'	'	'
Fair value of each stock option (in dollars per share)	$0.02	'	'	'	'	'	'	'	'
Method used for fair value assumptions	'Black-Scholes pricing model	'	'	'	'	'	'	'	'
Dividend yield	0.00%	'	'	'	'	'	'	'	'
Risk free interest rate	1.91%	'	'	'	'	'	'	'	'
Expected life of option	'5 years	'	'	'	'	'	'	'	'
Expected volatility rate	98.00%	'	'	'	'	'	'	'	'
Aggregate value of options	$60,124	'	'	'	'	'	'	'	'
Vesting period of option	'3 years	'	'	'	'	'	'	'	'
Common stock forfeited	'	'	'	1,500,000	14,000,000	'	'	3,000,000	'
Weighted average remaining life of outstanding warrants and options	'	'	'	'	'	'	'	'	'7 years 6 months
Intrinsic value of options and warrants	'	'	'	'	'	'	'	'	$826,000

PATENTS_Detail_Textuals

PATENTS (Detail Textuals) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
Goodwill and Intangible Assets Disclosure [Abstract]	'	'	'	'	'
Patents and patent related costs, net	$1,532,184	'	$1,532,184	'	$1,729,224
Accumulated amortization of patents	2,453,610	'	2,453,610	'	2,256,571
Amortization charged to operations	65,680	65,680	197,040	197,040	'
Estimated future amortization expense year 1	262,720	'	262,720	'	'
Estimated future amortization expense year 2	262,720	'	262,720	'	'
Estimated future amortization expense year 3	262,720	'	262,720	'	'
Estimated future amortization expense year 4	262,720	'	262,720	'	'
Estimated future amortization expense year 5	$262,720	'	$262,720	'	'

STOCKHOLDERS_EQUITY_Detail_Tex

STOCKHOLDERS' EQUITY (Detail Textuals) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2009
			Series B Preferred Stock	Series B Preferred Stock	Series B Preferred Stock
Class of Stock [Line Items]	'	'	'	'	'
Number of series B preferred stock issued (in shares)	'	'	'	'	19,402,675
Amount of Series B Preferred stock issued	'	'	'	'	$1,490,015
Dividend rate on Series B Preferred Stock	'	'	10.00%	'	'
Dividend accrued for Series B Preferred Stock	$549,254	$455,546	'	'	'
Percentage of special dividend for series B preferred stock	'	'	15.00%	'	'
Internal annual rate of return on Series B Preferred Stock	'	'	20.00%	'	'
Number of business days which trading during prior or by payment of cash	'	'	'	'10 days	'

INVESTMENT_IN_AVAILABLE_FOR_SA1

INVESTMENT IN AVAILABLE FOR SALE SECURITIES (Detail Textuals) (Neo Genomics Laboratories Inc, USD $)	0 Months Ended	9 Months Ended
	Jan. 06, 2012	Sep. 30, 2013	Jan. 06, 2012	Sep. 30, 2013
		Other Income	Carrying value	Fair value
Schedule of Available-for-sale Securities [Line Items]	'	'	'	'
Number of shares initially acquired	1,360,000	'	'	'
Available for sale securities	'	'	$1,945,000	$780,000
Realized and unrealized gain on available for sale securities	'	$371,581	'	'

SUBSEQUENT_EVENTS_Detail_Textu

SUBSEQUENT EVENTS (Detail Textuals) (Stock Options)	12 Months Ended	0 Months Ended
	Dec. 31, 2012	Oct. 14, 2013	Oct. 14, 2013
	Mr. Sumio Takeichi	Subsequent Event	Subsequent Event
		Messrs. Norris, Takeichi, and Mineta	Mr. Sumio Takeichi
Subsequent Event [Line Items]	'	'	'
Common stock forfeited	1,500,000	4,250,000	1,500,000

COMMITMENTS_Detail_Textuals

COMMITMENTS (Detail Textuals) (Chairman and Chief Executive Officer, USD $)	1 Months Ended
	Jul. 29, 2013
Chairman and Chief Executive Officer	'
Commitments [Line Items]	'
Payments to settlement agreement	$50,000