Health Discovery (HDVY) 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 16, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	HEALTH DISCOVERY CORP
Entity Central Index Key	1,141,788
Trading Symbol	hdvy
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		268,718,989
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3

Balance Sheets (unaudited)

Balance Sheets (unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets
Cash	$ 506,551	$ 7,642
Accounts Receivable		1,969
Investment in Available For Sale Securities (Note G)	104,434	362,373
Total Current Assets	610,985	371,984
Equipment, Less Accumulated Depreciation of $60,496 and $59,765 as of September 30, 2015 and December 31, 2014, respectively	389	1,120
Other Assets
Patents, Less Accumulated Amortization of $2,979,048 and $2,782,009 as of September 30, 2015 and December 31, 2014, respectively	1,006,746	1,203,785
Total Assets	1,618,120	1,576,889
Current Liabilities
Accounts Payable - Trade	19,768	239,910
Dividends Payable	206,637	373,346
Deferred Revenue	43,388	43,388
Total Current Liabilities	269,793	656,644
Long Term Liabilities
Deferred Revenue	115,699	148,240
Total Liabilities	385,492	804,884
Stockholders' Equity
Common Stock, No Par Value, 300,000,000 Shares Authorized 268,718,989 Shares Issued and Outstanding at September 30, 2015 261,384,810 Shares Issued and Outstanding at December 31, 2014	27,393,858	27,055,938
Accumulated Deficit	(27,061,230)	(26,615,933)
Total Stockholders' Equity	1,232,628	772,005
Total Liabilities and Stockholders' Equity	1,618,120	1,576,889
Series C Preferred Stock Convertible
Stockholders' Equity
Series C Preferred Stock, Convertible, 30,000,000 Shares Authorized, 30,000,000 Issued and Outstanding at September 30, 2015 6,640,000 Issued and Outstanding at December 31, 2014	$ 900,000	$ 332,000

Balance Sheets (unaudited) (Par

Balance Sheets (unaudited) (Parentheticals) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Accumulated depreciation on equipment (in dollars)	$ 60,496	$ 59,765
Accumulated amortization on patents (in dollars)	$ 2,979,048	$ 2,782,009
Common stock, no par value (in dollars per share)
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	268,718,989	261,384,810
Common stock, shares outstanding	268,718,989	261,384,810
Series C Preferred Stock Convertible
Preferred stock, shares authorized	30,000,000	30,000,000
Preferred stock, shares issued	30,000,000	6,640,000
Preferred stock, shares outstanding	30,000,000	6,640,000

Statements of Operations (unaud

Statements of Operations (unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenues:
Licensing & Development	$ 12,050	$ 256,247	$ 33,754	$ 773,901
Operating Expenses:
Amortization	65,680	65,679	197,039	197,039
Professional and Consulting Fees	30,965	26,985	129,377	144,700
Legal Fees	9,000	14,792	37,357	49,171
Research & Development Fees	9,000	23,438	31,813	70,763
Compensation	48,328	62,955	142,665	202,311
Other General and Administrative Expenses	33,633	35,562	116,843	129,803
Total Operating Expenses	196,606	229,411	655,094	793,787
(Loss) Income From Operations	(184,556)	26,836	(621,340)	(19,886)
Other Income (Expense)
Unrealized Gain (Loss) on Available for Sale Securities (Note G)	(17,917)	87,431	(160,706)	(57,619)
Realized Gain on Available for Sale Securities (Note G)	27,192	192,783	232,937	295,349
Forgiveness on Payables (Note H)	121,503		121,503
Settlement Expense			(17,693)
Total Other Income	130,778	280,214	176,041	237,730
Net (Loss) Income	(53,778)	307,050	(445,299)	217,844
Preferred Stock Dividends		17,800		52,820
Net (Loss) Earnings Attributable to Common Stockholders	$ (53,778)	$ 289,250	$ (445,299)	$ 165,024
Weighted Average Outstanding Shares - basic and diluted (in shares)	266,052,322	252,557,310	265,163,433	252,557,310
(Loss) Earnings Per Share - basic and diluted (in dollars per share)	$ (0.0001)	$ 0.0011	$ (0.0017)	$ 0.0007

Statements of Cash Flows (unaud

Statements of Cash Flows (unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash Flows From Operating Activities
Net (Loss) Income	$ (445,299)	$ 217,844
Adjustments to Reconcile Net (Loss) Income to Net Cash Used in Operating Activities:
Stock-based Compensation for Employees	11,512	11,511
Stock-based Compensation for Directors and Consultants	39,700	44,634
Realized Gain on Investments in Available for Sale Securities Measured in Accordance with the Fair Value Option	(232,937)	(295,349)
Unrealized Loss on Investments in Available for Sale Securities Measured in Accordance with the Fair Value Option	160,706	57,619
Depreciation and Amortization	197,770	200,766
Decrease in Accounts Receivable	1,969	80
Decrease in Deferred Revenue	(32,541)	(768,741)
Decrease in Accounts Payable - Trade	(98,639)	(3,449)
Forgiveness on Accounts Payable - Trade	(121,503)
Increase in Available for Sale Securities	(1,294)
Decrease in Accrued Liabilities		(2,500)
Net Cash Used in Operating Activities	(520,556)	(537,585)
Cash Flows From Investing Activities:
Proceeds from Sale of Available for Sale Securities	331,465	437,448
Net Cash Provided by Investing Activity	331,465	437,448
Cash Flows From Financing Activities:
Proceeds from Common Stock Issuance	120,000
Proceeds from Series C Preferred Stock Issuance	568,000	147,000
Net Cash Provided by Financing Activity	688,000	147,000
Net Increase in Cash	498,909	46,863
Cash, at Beginning of Period	7,642	71,991
Cash, at End of Period	$ 506,551	$ 118,854

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
BASIS OF PRESENTATION	Note A - BASIS OF PRESENTATION Health Discovery Corporation (the “Company”) is a biotechnology-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 and drug discovery, but are also marketed for other applications. The Company licenses the use of its patent 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 to 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 months ended September 30, 2015 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, 2014.

REVENUE RECOGNITION

REVENUE RECOGNITION	9 Months Ended
	Sep. 30, 2015
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 $159,087 as of September 30, 2015. Unearned revenue of $43,388 is recorded as current and $115,699 is classified as long-term.

NET (LOSS) INCOME PER SHARE

NET (LOSS) INCOME PER SHARE	9 Months Ended
	Sep. 30, 2015
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 attributable 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 ended September 30, 2015, the calculation of diluted per share amounts would create an anti-dilutive result and therefore are not presented in the following table. The following is an analysis of the basic and diluted earnings per common share computations for the three and nine months ended September 30, 2014: Three months ended Nine months ended Basic: Net income attributable to common shareholders $ 289,250 $ 165,024 Basic weighted average common shares outstanding 252,557,310 252,557,310 Basic earnings per common share $ 0.0001 $ 0.0001 Diluted: Net income attributable to common shareholders $ 289,250 $ 165,024 Basic weighted average common shares outstanding 252,557,310 252,557,310 Effect of dilutive securities: Conversion of options and warrants - - Conversion of preferred shares to common shares - - Diluted weighted average common shares outstanding 252,557,310 252,557,310 Diluted earnings per common share $ 0.0001 $ 0.0001 During the three and nine month periods ended September 30, 2014, 18,890,000 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 due to the fact that the strike prices were higher than the market price for the Company’s common stock. In addition, for the three and nine month periods ended September 30, 2014, 14,967,500 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 due to the fact that the strike prices were higher than the market price for the Company’s common stock.

STOCK-BASED COMPENSATION AND OT

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS	9 Months Ended
	Sep. 30, 2015
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, 2015 consisted of $17,071 and $51,212, respectively, for stock options granted to officers and directors. Stock-based expense included in our net income for the three months and nine months ended September 30, 2014 consisted of $18,714 and $56,145, respectively, for stock options granted to officers and directors. As of September 30, 2015, there was $68,962 of unrecognized cost related to stock option grants. The cost is to be recognized over the remaining vesting periods that average approximately 1.0 year. There were no grants, exercises, forfeitures or expirations of stock options for the three and nine month periods ended September 30, 2015. There were grants of warrants relating to the issuance of Series C Preferred Stock and Common Stock during the three month period ended September 30, 2015. As of September 30, 2015, there were 46,750,000 option and warrant shares outstanding with a weighted average exercise price of $0.032. The following schedule summarizes combined stock option and warrant information for the nine months ended September 30, 2015. Option and Warrant Shares Weighted Average Exercise Price Outstanding, December 31, 2014 19,390,000 $0.034 Granted 27,360,000 0.030 Exercised - - Forfeited - - Expired un-exercised - - Outstanding, September 30, 2015 46,750,000 $0.032 The following schedule summarizes combined stock option and warrant information as of September 30, 2015: Exercise Prices Number Outstanding Weighted- Average Remaining Contractual Life (years) Number Exercisable Weighted Average Remaining Contractual Life (years) of Exercisable Warrants $ 0.027 3,000,000 7.75 2,000,000 7.75 $ 0.030 34,000,000 8.75 34,000,000 8.75 $ 0.036 7,750,000 8.00 5,000,000 8.00 $ 0.040 1,000,000 2.25 1,000,000 2.25 $ 0.050 1,000,000 2.25 1,000,000 2.25 Total 46,750,000 43,000,000 The weighted average remaining life of all outstanding warrants and options at September 30, 2015 is 7.75 years. The aggregate intrinsic value of all options and warrants outstanding and exercisable as of September 30, 2015 was zero, based on the market closing price of $0.026 on September 30, 2015, less exercise prices.

PATENTS

PATENTS	9 Months Ended
	Sep. 30, 2015
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 Amortization charged to operations for the three months and nine months ended September 30, 2015 was $65,680 and $197,039, respectively. For the three months and nine months ended September 30, 2014, amortization charged to operations was $65,679 and $197,039, respectively. Estimated amortization expense for the next four years is $262,720 per year.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2015
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 was converted into Common Stock of the Company in the fourth quarter of 2014, which was the fifth anniversary of the date of issuance as outlined in the original purchase agreement. Dividends have been accrued for the Series B Preferred Stock in the amount of $373,346 as of December 31, 2014. The Company gave the Series B holders the choice of either (1) Common Stock for the amount of the dividend accrued based upon the price of $0.05 per share or (2) to defer payment of the dividend in cash until the Company is able to pay, at the sole discretion of the Company. During the first quarter of 2015, $166,709 in dividends were paid with the issuance of 3,334,179 shares of Common Stock. The remaining accrued dividend is recorded as a current liability in the amount of $206,637 as of September 30, 2015. Series C Preferred Stock In the fourth quarter of 2013, the Board of Directors authorized the issuance of Series C Preferred Shares in private placement transactions. As of December 31, 2014 and September 30, 2015, the Company had issued a total of 6,640,000 and 30,000,000 preferred shares, respectively. The Series C Preferred Shares were fully subscribed in the third quarter 2015. The Company received total net proceeds of $900,000, of which $568,000 was received in the period ended September 30, 2015. The Series C Preferred Shares are accompanied by $0.03 warrants and $0.03 contingency warrants. The contingency warrants will be issued only if the Company has not attained profitability by the end of the first quarter 2016. The holders must exercise fifty percent of the warrants if the market price for the Company’s common stock is $0.20 for a period of thirty consecutive calendar days. The holders must also exercise fifty percent of the warrants if the market price for the Company’s common stock is $0.30 for a period of thirty consecutive calendar days. The warrants were valued at $0.025 each using the Black Scholes Method. The Series C Preferred Stock has not been registered under either federal or state securities laws and must be held until a registration statement covering such securities is declared effective by the Securities and Exchange Commission or an applicable exemption applies. The Series C 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 C Preferred Stock must be converted into Common Stock of the Company either by the demand by the shareholder or at the fifth anniversary of the date of issuance. If the Company were to be dissolved, the Series C Preferred Stock receives preferential treatment over Common Stock.

INVESTMENT IN AVAILABLE FOR SAL

INVESTMENT IN AVAILABLE FOR SALE SECURITIES	9 Months Ended
	Sep. 30, 2015
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, The Company’s investment in NeoGenomics’ common stock is recorded on the accompanying balance sheets under the caption Investment in Available for Sale Securities. The carrying value of this investment on the date of acquisition approximated $1,945,000. The change in fair value from December 31, 2014 to September 30, 2015 was a net gain of $72,231 for the remaining 18,000 shares held and is classified as other income (expense) under the captions Realized and Unrealized (Loss) Gain on Available for Sale Securities in the accompanying statements of operations. The change in fair value from December 31, 2013 to September 30, 2014 was a net gain of $237,730 and is classified as other income (expense) under the captions Realized and Unrealized (Loss) Gain on Available for Sale Securities for the nine months ended September 30, 2014 in the accompanying statements of operations. The Company classifies its investment as an available for sale security and the fair value is considered a Level 1 investment in the fair value hierarchy. The September 30, 2015 fair value of the investment of $104,434 is for the remaining shares held and is calculated using the closing stock price of the NeoGenomics common stock at the end of the reporting period. As of September 30, 2015, the Company held 18,000 shares of NeoGenomics stock as compared to 86,900 shares as of December 31, 2014.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Note H – COMMITMENTS AND CONTINGENCIES 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. On February 23, 2015, the FTC notified the Company of its approval, by a vote of 4-1, to accept an Agreement Containing Consent Order (“Agreement”). The Agreement does, among other things, bar the Company from claiming that any device detects or diagnoses melanoma or its risk factors, or increases users’ chances of early detection, unless the representation is not misleading and supported by competent and reliable scientific evidence in the form of human clinical testing of the device. The Agreement also prohibits the Company from making any other misleading or unsubstantiated claims about a device’s health benefits or efficacy, unless the representation is not misleading and supported by competent and reliable scientific evidence in the form of human clinical testing of the device. Finally, the Company was required to pay $17,693 to the FTC, which was accrued during the three month period ended March 31, 2015. This amount is included as Settlement Expense in the accompanying statements of operations. The Company’s balance sheet for the year ended December 31, 2014 reflected an accrued liability of approximately $239,910 for professional services. In an effort to conserve cash, the Company worked with several of the vendors regarding a portion of this amount by negotiating with the service providers regarding potential reduction of the amount billed. During the quarter ended September 30, 2015, the Company and the service providers negotiated the amounts owed and as a result, the Company recorded a decrease in accounts payables of $121,503. 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.

FINANCIAL CONDITION

FINANCIAL CONDITION	9 Months Ended
	Sep. 30, 2015
Financial Condition And Going Concern [Abstract]
FINANCIAL CONDITION	Note I – FINANCIAL CONDITION We have prepared our financial statements on a “going concern” basis, which presumes that we will be able to realize our assets and discharge our liabilities in the normal course of business for the foreseeable future. Our ability to continue as a going concern is dependent upon our licensing arrangements with third parties, achieving profitable operations, obtaining additional financing and successfully bringing our technologies to the market. The successful outcome of these matters cannot be predicted at this time. Our financial statements have been prepared on a going concern basis and do not include any adjustments to the amounts and classifications of the assets and liabilities that might be necessary should we be unable to continue in business. At September 30, 2015, we had $506,551 cash on hand along with stock available for sale worth $104,434. The Company’s plan to have sufficient cash to support operations is comprised of generating revenue through its relationship with NeoGenomics, providing services related to those patents, selling its NeoGenomics stock, and obtaining additional equity or debt financing. As a result, the Company focused its efforts to secure funds via licensing activity or other forms of fund raising either in the debt or equity markets. In addition, prior to the beginning of this year, the Company began raising capital through the Series C Preferred Stock offering. The Series C Preferred Stock offering was fully subscribed and completed in August 2015. As a result, the Company received $568,000 in 2015 in addition to the $332,000 received in prior years for a total of $900,000. The Company believes the funds received from the Series C Preferred Stock offering, along with disciplined expense management, will allow the Company to maintain operations through 2016. While the Company believes these efforts will create a profitable future, there is no guarantee the Company will be successful in these efforts.

NET (LOSS) INCOME PER SHARE (Ta

NET (LOSS) INCOME PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2015
Earnings Per Share [Abstract]
Schedule of basic and diluted earnings per common share	Three months ended Nine months ended Basic: Net income attributable to common shareholders $ 289,250 $ 165,024 Basic weighted average common shares outstanding 252,557,310 252,557,310 Basic earnings per common share $ 0.0001 $ 0.0001 Diluted: Net income attributable to common shareholders $ 289,250 $ 165,024 Basic weighted average common shares outstanding 252,557,310 252,557,310 Effect of dilutive securities: Conversion of options and warrants - - Conversion of preferred shares to common shares - - Diluted weighted average common shares outstanding 252,557,310 252,557,310 Diluted earnings per common share $ 0.0001 $ 0.0001

STOCK-BASED COMPENSATION AND 16

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
Schedule of combined stock option and warrant information of company	Option and Warrant Shares Weighted Average Exercise Price Outstanding, December 31, 2014 19,390,000 $0.034 Granted 27,360,000 0.030 Exercised - - Forfeited - - Expired un-exercised - - Outstanding, September 30, 2015 46,750,000 $0.032
Schedule of stock option and warrants outstanding by exercise price range	Exercise Prices Number Outstanding Weighted- Average Remaining Contractual Life (years) Number Exercisable Weighted Average Remaining Contractual Life (years) of Exercisable Warrants $ 0.027 3,000,000 7.75 2,000,000 7.75 $ 0.030 34,000,000 8.75 34,000,000 8.75 $ 0.036 7,750,000 8.00 5,000,000 8.00 $ 0.040 1,000,000 2.25 1,000,000 2.25 $ 0.050 1,000,000 2.25 1,000,000 2.25 Total 46,750,000 43,000,000

REVENUE RECOGNITION (Detail Tex

REVENUE RECOGNITION (Detail Textuals) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Deferred Revenue Disclosure [Abstract]
Total unearned revenue	$ 159,087
Current unearned revenue	43,388	$ 43,388
Unearned revenue long term	$ 115,699	$ 148,240

NET (LOSS) INCOME PER SHARE (De

NET (LOSS) INCOME PER SHARE (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basic:
Net income attributable to common shareholders	$ (53,778)	$ 289,250	$ (445,299)	$ 165,024
Basic weighted average common shares outstanding		252,557,310		252,557,310
Basic earnings per common share		$ 0.0001		$ 0.0001
Diluted:
Net income attributable to common shareholders		$ 289,250		$ 165,024
Basic weighted average common shares outstanding		252,557,310		252,557,310
Effect of dilutive securities:
Conversion of options and warrants
Conversion of preferred shares to common shares
Diluted weighted average common shares outstanding		252,557,310		252,557,310
Diluted earnings per common share		$ 0.0001		$ 0.0001

NET (LOSS) INCOME PER SHARE (19

NET (LOSS) INCOME PER SHARE (Detail Textuals) - shares	3 Months Ended	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2014
Stock option and warrant
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	18,890,000	18,890,000
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	14,967,500	14,967,500

STOCK-BASED COMPENSATION AND 20

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Details) - Stock option and warrant	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Option and Warrant Shares
Outstanding, December 31, 2014	19,390,000
Granted	27,360,000
Exercised
Forfeited
Expired un-exercised
Outstanding, September 30, 2015	46,750,000
Weighted Average Exercise Price
Outstanding, December 31, 2014 | $ / shares	$ 0.034
Granted | $ / shares	$ 0.030
Forfeited | $ / shares
Expired un-exercised | $ / shares
Outstanding, September 30, 2015 | $ / shares	$ 0.032

STOCK-BASED COMPENSATION AND 21

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Details 1) - Stock option and warrant - $ / shares	9 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices	$ 0.032	$ 0.034
Number Outstanding	46,750,000	19,390,000
Weighted-Average Remaining Contractual Life (years)	7 years 9 months
Number Exercisable	43,000,000
Exercise Price $0.027
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding	3,000,000
Weighted-Average Remaining Contractual Life (years)	7 years 9 months
Number Exercisable	2,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	7 years 9 months
Exercise Price $0.030
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding	34,000,000
Weighted-Average Remaining Contractual Life (years)	8 years 9 months
Number Exercisable	34,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	8 years 9 months
Exercise Price $0.036
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding	7,750,000
Weighted-Average Remaining Contractual Life (years)	8 years
Number Exercisable	5,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	8 years
Exercise Price $0.040
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding	1,000,000
Weighted-Average Remaining Contractual Life (years)	2 years 3 months
Number Exercisable	1,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	2 years 3 months
Exercise Price $0.050
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding	1,000,000
Weighted-Average Remaining Contractual Life (years)	2 years 3 months
Number Exercisable	1,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	2 years 3 months

STOCK-BASED COMPENSATION AND 22

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 17,071	$ 18,714	$ 51,212	$ 56,145
Stock option and warrant
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total compensation unrecognized for stock options and warrants			$ 68,962
Average remaining vesting period for recognition of unrecognized expenses related to stock options and warrants			1 year
Number outstanding	46,750,000		46,750,000		19,390,000
Weighted average exercise price	$ 0.032		$ 0.032		$ 0.034
Weighted average remaining life of outstanding warrants and options			7 years 9 months
Aggregate intrinsic value of options and warrants outstanding	$ 0		$ 0
Market closing price less exercise prices	$ 0.026		$ 0.026

PATENTS (Detail Textuals)

PATENTS (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Patents and patent related costs, net	$ 1,006,746		$ 1,006,746		$ 1,203,785
Accumulated amortization of patents	2,979,048		2,979,048		$ 2,782,009
Amortization charged on patents	65,680	$ 65,679	197,039	$ 197,039
Estimated amortization expense of patents at 2015	262,720		262,720
Estimated amortization expense of patents at 2016	262,720		262,720
Estimated amortization expense of patents at 2017	262,720		262,720
Estimated amortization expense of patents at 2018	262,720		262,720
Estimated amortization expense of patents at 2019	$ 262,720		$ 262,720

STOCKHOLDERS' EQUITY (Detail Te

STOCKHOLDERS' EQUITY (Detail Textuals) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2015	Sep. 30, 2015	Dec. 31, 2009	Dec. 31, 2014
Class of Stock [Line Items]
Dividend accrued on Series B preferred stock		$ 206,637		$ 373,346
Series B Preferred Stock
Class of Stock [Line Items]
Number of preferred stock issued (in shares)			19,402,675
Proceeds from issuance of stock, net of associated expenses			$ 1,490,015
Dividend accrued on Series B preferred stock				$ 373,346
Accrued dividend on common stock		0.05
Dividend paid	$ 166,709
Dividend paid with issuance of common stock	3,334,179
Series B Preferred Stock | Current liability
Class of Stock [Line Items]
Dividend accrued on Series B preferred stock		$ 206,637

STOCKHOLDERS' EQUITY (Detail 25

STOCKHOLDERS' EQUITY (Detail Textuals 1)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2015USD ($)$ / shares$ / Warrantshares	Sep. 30, 2015USD ($)$ / shares$ / Warrantshares	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)shares
Class Of Stock [Line Items]
Proceeds from Series C Preferred Stock Issuance | $		$ 568,000	$ 147,000
Series C Preferred Stock
Class Of Stock [Line Items]
Preferred stock, shares issued | shares	30,000,000	30,000,000		6,640,000
Proceeds from Series C Preferred Stock Issuance | $	$ 900,000	$ 568,000		$ 332,000
Preferred shares warrant feature per share (in dollars per share)		$ 0.03
Preferred shares contingency warrant feature per share (in dollars per share)		$ 0.03
Series C preferred stock, contingency warrant exercise description		The contingency warrants will be issued only if the Company has not attained profitability by the end of the first quarter 2016. The holders must exercise fifty percent of the warrants if the market price for the Company's common stock is $0.20 for a period of thirty consecutive calendar days.
Percentage of warrants exercise if market price for company's common stock is $0.20		50.00%
Price per share for exercise of warrants, condition one	$ 0.20	$ 0.20
Number of days for common stock price at $0.20		30 days
Percentage of warrants exercise if market price for company's common stock is $0.30		50.00%
Price per share for exercise of warrants, condition two | $ / Warrant	0.30	0.30
Number of days for common stock price at $0.30		30 days
Fair value of exercise price of warrants	$ 0.025	$ 0.025
Valuation method for warrants		Black Scholes Method

INVESTMENT IN AVAILABLE FOR S26

INVESTMENT IN AVAILABLE FOR SALE SECURITIES (Detail Textuals) - NeoGenomics Laboratories Inc - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Number of shares of Neo Genomics stock held	18,000		86,900
Other income (expense)
Schedule of Available-for-sale Securities [Line Items]
Unrecognized net gain (loss) on available for sale securities	$ 72,231	$ 237,730
Carrying value
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities	1,945,000
Fair value
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities	$ 104,434

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Mar. 31, 2015	Sep. 30, 2015	Dec. 31, 2014
Commitments And Contingencies [Line Items]
Accrued liability				$ 239,910
Decrease in accounts payables	$ (121,503)		$ (121,503)
Containing Consent Order | Federal Trade Commission (FTC)
Commitments And Contingencies [Line Items]
Accrued settlement expense		$ 17,693

FINANCIAL CONDITION (Detail Tex

FINANCIAL CONDITION (Detail Textuals) - USD ($)	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Dec. 31, 2013
Financial Condition And Going Concern [Abstract]
Cash	$ 506,551	$ 506,551	$ 118,854	$ 7,642	$ 71,991
Schedule of Available-for-sale Securities [Line Items]
Proceeds from Series C Preferred Stock Issuance		568,000	$ 147,000
Series C Preferred Stock
Schedule of Available-for-sale Securities [Line Items]
Proceeds from Series C Preferred Stock Issuance	900,000	568,000		$ 332,000
NeoGenomics Laboratories Inc | Fair value
Schedule of Available-for-sale Securities [Line Items]
Available for sale securities	$ 104,434	$ 104,434