Health Discovery (HDVY) 10-Q 23 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 23, 2016
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		271,718,989
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Balance Sheets (unaudited)

Balance Sheets (unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current Assets
Cash	$ 406,455	$ 417,208
Investment in Available For Sale Securities (Note G)	121,434	141,978
Total Current Assets	527,889	559,186
Equipment, Less Accumulated Depreciation of $60,885 and $60,690 as of March 31, 2016 and December 31, 2015, respectively		195
Other Assets
Patents, Less Accumulated Amortization of $3,110,408 and $3,044,728 as of March 31, 2016 and December 31, 2015, respectively	875,386	941,066
Total Assets	1,403,275	1,500,447
Current Liabilities
Accounts Payable - Trade	100,662	37,633
Dividends Payable	206,637	206,637
Deferred Revenue	43,388	43,388
Common Stock Warrants Liability (Note D)	1,280,080	339,268
Total Current Liabilities	1,630,767	626,926
Long Term Liabilities
Deferred Revenue	94,005	104,853
Total Liabilities	1,724,772	731,779
Stockholders' (Deficit) Equity
Common Stock, No Par Value, 300,000,000 Shares Authorized; 271,718,989 Shares Issued and Outstanding March 31, 2016; 268,718,989 Shares Issued and Outstanding December 31, 2015	27,522,571	27,410,930
Accumulated Deficit	(28,404,800)	(27,202,994)
Total Stockholders' (Deficit) Equity	(321,497)	768,668
Total Liabilities and Stockholders' (Deficit) Equity	1,403,275	1,500,447
Series C Preferred Stock Convertible
Stockholders' (Deficit) Equity
Series C Preferred Stock, Convertible, 30,000,000 Shares Authorized; 30,000,000 Issued and Outstanding March 31, 2016 and December 31, 2015	$ 560,732	$ 560,732

Balance Sheets (unaudited) (Par

Balance Sheets (unaudited) (Parentheticals) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accumulated depreciation on equipment (in dollars)	$ 60,885	$ 60,690
Accumulated amortization on patents (in dollars)	$ 3,110,408	$ 3,044,728
Common stock, no par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	271,718,989	268,718,989
Common stock, shares outstanding	271,718,989	268,718,989
Series C Preferred Stock Convertible
Preferred stock, shares authorized	30,000,000	30,000,000
Preferred stock, shares issued	30,000,000	30,000,000
Preferred stock, shares outstanding	30,000,000	30,000,000

Statements of Operations (unaud

Statements of Operations (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Licensing & Development	$ 10,971	$ 10,847
Operating Expenses:
Amortization	65,680	65,680
Professional and Consulting Fees	80,911	67,633
Legal Fees	9,000	18,317
Research & Development Fees	9,000	13,813
Compensation	50,920	46,757
Other General and Administrative Expenses	35,911	31,980
Total Operating Expenses	251,422	244,180
Loss From Operations	(240,451)	(233,333)
Other Income (Expense)
Unrealized Loss on Available for Sale Securities (Note G)	(20,544)	(102,026)
Realized Gain on Available for Sale Securities (Note G)		133,957
Other Expense - Change in Warrants Liability (Note D)	(940,812)
Settlement Expense		(17,693)
Other Income (Expense), net	(931,356)	14,238
Net Loss	$ (1,201,807)	$ (219,095)
Weighted Average Outstanding Shares (basic and diluted) (in shares)	269,718,989	264,718,989
Net Loss Per Share (basic and diluted) (in dollars per share)	$ (0.0045)	$ (0.0008)

Statements of Cash Flows (unaud

Statements of Cash Flows (unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash Flows From Operating Activities:
Net Loss	$ (1,201,807)	$ (219,095)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Stock-based Compensation for Employees	5,437	3,837
Stock-based Compensation for Directors and Consultants	16,205	13,234
Realized Gain on Investments in Available for Sale Securities Measured in Accordance with the Fair Value Option (Note G)		(133,957)
Unrealized Loss on Investments in Available for Sale Securities Measured in Accordance with the Fair Value Option (Note G)	20,544	102,026
Increase in Warrants Liability (Note D)	940,812
Depreciation and Amortization	65,875	66,021
Decrease in Accounts Receivable		1,969
Decrease in Deferred Revenue	(10,848)	(10,846)
Increase in Accounts Payable - Trade	63,029	79,880
Net Cash Used in Operating Activities	(100,753)	(96,931)
Cash Flows From Investing Activities:
Proceeds from Sale of Available for Sale Securities (Note G)		198,164
Net Cash Provided by Investing Activities		198,164
Cash Flows From Financing Activities:
Proceeds from Common Stock Issuance	90,000
Net Cash Provided by Financing Activities	90,000
Net (Decrease) Increase in Cash	(10,753)	101,233
Cash, at Beginning of Period	417,208	7,642
Cash, at End of Period	$ 406,455	$ 108,875

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2016
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 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 month period ended March 31, 2016 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, 2015.

REVENUE RECOGNITION

REVENUE RECOGNITION	3 Months Ended
	Mar. 31, 2016
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 $137,393 as of March 31, 2016. Unearned revenue of $43,388 is recorded as current and $94,005 is classified as long-term.

NET LOSS PER SHARE

NET LOSS PER SHARE	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
NET LOSS PER SHARE	Note C - NET LOSS PER SHARE Basic Earnings Per Share (“EPS”) includes no dilution and is computed by dividing income or loss available to common stockholders 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 in all periods presented, potentially dilutive shares are not included in the calculation of diluted EPS as those shares would create an anti-dilutive result.

STOCK-BASED COMPENSATION AND OT

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS	3 Months Ended
	Mar. 31, 2016
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 ended March 31, 2016 consisted of $21,642 for stock options granted to employees, directors, and consultants. Stock-based expense included in our net loss for the three months ended March 31, 2015 was $17,071 for stock options granted to directors, officers and consultants. As of March 31, 2016, there was $139,971 of unrecognized cost related to stock option grants. The cost is to be recognized over the remaining vesting periods that average approximately 1.5 years. On February 8, 2016, the Company granted options to purchase 5,000,000 shares of the Company’s common stock to a group of employees and consultants in recognition of their efforts to lower the Company’s monthly expenditures and compensation and their continuing contributions to the Company. The options vest over a two-year period, have an exercise price of $.03, and expire on February 8, 2026. Within the group of 5,000,000 options, the Company’s Vice President, Mark A. Moore, Ph.D., received an option to purchase 500,000 shares of the Company’s common stock and the Company’s Senior Vice President, Hong Zhang, Ph.D., received an option to purchase 1,250,000 shares of the Company’s common stock. The fair value of each option granted is $0.0219 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 1.99%, an expected life of 5 years, and volatility of 96%. The aggregate computed value of these options is $109,271, and this amount will be charged as an expense over the two-year vesting period. Because these options exceed the amount of common shares available if the holders exercise the previously issued outstanding options and warrants, the Company will need to increase the authorized shares of common stock in order to satisfy these options. 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, 2015, the Company had issued a total of 30,000,000 preferred shares. The Series C Preferred Shares were fully subscribed in the third quarter 2015. The Series C Preferred Shares are accompanied by $0.03 warrants and $0.03 contingency warrants. The contingency warrants were issued during the three months ended March 31, 2016 as a result of the Company not attaining profitability by the end of the first quarter 2016. Because these contingency warrants exceed the amount of common shares available if the holders exercise the previously issued outstanding options and warrants, the Company will need to increase the authorized shares of common stock in order to satisfy these options. Furthermore, the Company has recorded an increase in the common stock warrants liability during the first quarter of 2016. The fair value of each warrant granted is $0.0219 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 1.67%, an expected life of 5 years, and volatility of 96%. The aggregate computed value of these warrants is $656,380. During the third quarter of 2015, the Board of Directors authorized the issuance of Common Stock in a private placement of 7,000,000 Common Shares with certain warrant features. As of March 31, 2016, 7,000,000 shares of this offering were sold. During the three month period ended March 31, 2016, the Company sold 3,000,000 of these shares and received $90,000 in proceeds. The Common Shares are accompanied by $0.03 warrants and $0.06 contingency warrants. The contingency warrants were issued during the three months ended March 31, 2016 as a result of the Company not attaining profitability by the end of the first quarter 2016. Because these warrants exceed the amount of common shares available if the holders exercise the previously issued outstanding options and warrants, the Company will need to increase the authorized shares of common stock in order to satisfy these options. Furthermore, the Company has recorded an increase in the common stock warrants liability during the first quarter of 2016. The fair value of each warrant granted is $0.0219 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 1.67%, an expected life of 5 years, and volatility of 96%. The aggregate computed value of these warrants is $284,432. As of March 31, 2016, there were 91,750,000 option and warrant shares outstanding with a weighted average exercise price of $0.032. The following schedule summarizes combined stock option and warrant information as of March 31, 2016: Exercise Prices Number Outstanding Weighted- Average Remaining Contractual Life (years) Number Exercisable Weighted Average Remaining Contractual Life (years) of Exercisable Options and Warrants $0.027 3,000,000 7.25 2,500,000 7.25 $0.030 72,000,000 9.75 67,000,000 9.75 $0.036 7,750,000 7.50 5,916,668 7.50 $0.040 1,000,000 1.75 1,000,000 1.75 $0.050 1,000,000 1.75 1,000,000 1.75 $0.060 7,000,000 10.00 7,000,000 10.00 Total 91,750,000 84,416,668 The weighted average remaining life of all outstanding warrants and options at March 31, 2016 are 9.75 years. The aggregate intrinsic value of all options and warrants outstanding and exercisable as of March 31, 2016 was $7,500, based on the market closing price of $0.03 on March 31, 2016, less exercise prices.

PATENTS

PATENTS	3 Months Ended
	Mar. 31, 2016
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 ended March 31, 2016 and 2015 was $65,680 in both years. Estimated amortization expense for the next three years is $262,720 per year. Estimated amortization expense for the fourth year is $152,906 and no amortization expense for the fifth year.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2016
Stockholders Equity Note [Abstract]
STOCKHOLDERS' EQUITY	Note F – STOCKHOLDERS’ EQUITY 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, 2015, the Company had issued a total of 30,000,000 preferred shares. The Series C Preferred Shares were fully subscribed in the third quarter of 2015. The Series C Preferred Shares are accompanied by $0.03 warrants and $0.03 contingency warrants. The contingency warrants were issued during the three month period ended March 31, 2016 as a result of the Company not attaining 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 fair value of each warrant granted is $0.0219 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 1.67%, an expected life of 5 years, and volatility of 96%. The aggregate computed value of these warrants is $656,380. 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. Each share of Series C Preferred Stock may be converted into one share of 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. During the third quarter of 2015, the Board of Directors authorized the issuance of Common Stock in a private placement of 7,000,000 Common Shares with certain warrant features. As of March 31, 2016, 7,000,000 shares of this offering have been sold. The Common Shares are accompanied by $0.03 warrants and $0.06 contingency warrants. The contingency warrants were issued during the three month period ended March 31, 2016 as a result of the Company not attaining 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 fair value of each warrant granted is $0.0219 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 1.67%, an expected life of 5 years, and volatility of 96%. Due to the warrant features that accompany the sale of the Company’s preferred and common shares, if all outstanding options and warrants were exercised, the Company would not have sufficient shares of common stock to meet the exercised options. The aggregate intrinsic value of all options and warrants outstanding and exercisable as of March 31, 2016 was $7,500, based on the market closing price of $0.03 on March 31, 2016, less exercise prices. The Company will need to increase the authorized shares of common stock in order to satisfy the options and warrants if the holders exercise the outstanding options and warrants.

INVESTMENT IN AVAILABLE FOR SAL

INVESTMENT IN AVAILABLE FOR SALE SECURITIES	3 Months Ended
	Mar. 31, 2016
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, 2015 to March 31, 2016 is an unrecognized loss of $20,544 for the remaining 18,000 shares held and is classified as other expense under the caption Unrealized Loss on Available for Sale Securities in the accompanying statements of operations. There are three levels of investments in the fair value hierarchy that assesses a company’s assets based on the degree of certainty around the asset’s underlying value. A Level 1 asset can be valued with certainty because they are liquid and have clear market prices. At the other end of the spectrum, Level 3 assets are illiquid and estimating their value requires inputs that are unobservable and reflect significant management assumptions. The Company classifies its investment as an available for sale security presented as a trading security on the balance sheets and the fair value is considered a Level 1 investment in the fair value hierarchy. The March 31, 2016 fair value of the investment of $121,434 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 March 31, 2016 and December 31, 2015, the Company held 18,000 shares of NeoGenomics stock. The initial 1,360,000 shares were acquired in January 2012 as a result of the NeoGenomics Master License Agreement.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	Note H – COMMITMENTS AND CONTINGENCIES 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	3 Months Ended
	Mar. 31, 2016
Financial Condition And Going Concern [Abstract]
FINANCIAL CONDITION AND GOING CONCERN	Note I – FINANCIAL CONDITION AND GOING CONCERN The Company has prepared its financial statements on a “going concern” basis, which presumes that it will be able to realize our assets and discharge our liabilities in the normal course of business for the foreseeable future. The Company’s 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 the Company’s technologies to the market. The outcome of these matters cannot be predicted at this time. The Company’s 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 the Company be unable to continue in business. If the going concern assumption was not appropriate for the Company’s financial statements then adjustments would be necessary in the carrying value of assets and liabilities, the reported expenses and the balance sheet classifications used. Such adjustments may be material. At March 31, 2016, the Company had $406,455 cash on hand along with its investment in NeoGenomics stock classified as available for sale securities worth $121,434. As a result, the Company estimates cash will be depleted by the end of 2016 if the Company does not generate sufficient cash to support operations. 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. Specifically, the Company expects to begin receiving revenue by the end of 2016 from commercialization of the flow cytometry service and prostate tests developed as a part of the NeoGenomics relationship. 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. During the third quarter of 2015, the Board of Directors authorized the issuance of Common Stock in a private placement of 7,000,000 Common Shares with certain warrant features. As of March 31, 2016, 7,000,000 shares of this offering were sold. During the three month period ended March 31, 2016, the Company sold 3,000,000 of these shares and received $90,000 in proceeds. The Company believes the funds received from the Series C Preferred Stock offering and private placement, along with disciplined expense management, will allow the Company to maintain operations until the end of 2016. While the Company believes these efforts will create a profitable future, there is no guarantee the Company will be successful in these efforts.

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	Note J – RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards (“ASU”) 2016-02, Leases. This standard update was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities, including for operating leases, on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that adopting ASU 2016-02 will have on its financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This standard update provides guidance for balance sheet classification of deferred taxes. This standard requires that deferred tax assets and liabilities be classified as non-current on the balance sheet, and eliminates the prior guidance which required an entity to separate deferred tax liabilities and assets into a current amount and a noncurrent amount on the balance sheet. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Earlier application is permitted as of the beginning of an interim or annual period. The Company is currently evaluating the impact that adopting ASU 2015-17 will have on its financial statements.

ACCOUNTING POLICIES

ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
ACCOUNTING POLICIES	Note K – ACCOUNTING POLICIES Patents Initial costs paid to purchase patents are capitalized and amortized using the straight line method over the remaining life of the patent. The Company capitalizes the external costs and filing fees associated with obtaining patents on its new discoveries and amortizes these costs using the straight-line method over the shorter of the legal life of the patent or its economic life, generally 17 years, beginning on the date the patent is issued. Annual patent maintenance costs and annual license and renewal registration fees are expensed as period costs. If the applied for patents are abandoned or are not issued, the Company will expense the costs capitalized to date in the period of abandonment or earlier if abandonment appears probable. The carrying value of patents is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. As of March 31, 2016, the Company does not believe there has been any impairment of its patents. Stock-based Compensation Stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Valuation and Amortization Method Expected Term Expected Volatility – Risk-Free Interest Rate

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	Note L – SUBSEQUENT EVENTS On May 17, 2016, the Company held its Annual Shareholder’s Meeting. One of the proposals presented by the Company in its proxy statement was an approval to amend the Company’s Articles of Incorporation to increase the number of authorized shares of common stock from 300,000,000 to 450,000,000. This proposal received a majority of votes. In connection with their election to the Board of Directors, on May 17, 2016, the Company granted to Mr. Henry Kaplan, Mr. Kevin Kowbel, Mr. George McGovern, and Mr. William Quirk each an option to purchase 1,500,000 shares of the Company’s common stock. As a result, the options for Messrs. Kaplan, Kowbel, McGovern and Quirk vest 250,000 shares every six months, have an exercise price of $0.035, and expire on May 17, 2026. The fair value of each option granted is $0.0265 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 1.89%, an expected life of 5 years, and volatility of 102%. The aggregate computed value of these options is $159,038, and this amount will be charged as an expense over the three-year vesting period. Additionally, in recognition of his leadership as Chairman of the Board of Directors and CEO, on May 17, 2016, the Company granted to Mr. Kevin Kowbel an option to purchase 3,000,000 shares of the Company’s common stock. As a result, the options for Mr. Kowbel vest immediately, have an exercise price of $0.035, and expire on May 17, 2026. The fair value of each option granted is $0.0265 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 1.89%, an expected life of 5 years, and volatility of 102%. The aggregate computed value of these options is $79,519, and this amount will be charged as an expense during the second quarter of 2016.

ACCOUNTING POLICIES (Policies)

ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Patents	Patents Initial costs paid to purchase patents are capitalized and amortized using the straight line method over the remaining life of the patent. The Company capitalizes the external costs and filing fees associated with obtaining patents on its new discoveries and amortizes these costs using the straight-line method over the shorter of the legal life of the patent or its economic life, generally 17 years, beginning on the date the patent is issued. Annual patent maintenance costs and annual license and renewal registration fees are expensed as period costs. If the applied for patents are abandoned or are not issued, the Company will expense the costs capitalized to date in the period of abandonment or earlier if abandonment appears probable. The carrying value of patents is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. As of March 31, 2016, the Company does not believe there has been any impairment of its patents.
Stock-based Compensation	Stock-based Compensation Stock-based compensation cost is measured at grant date, based on the fair value of the award, and is recognized as expense over the requisite service period. Valuation and Amortization Method Expected Term Expected Volatility – Risk-Free Interest Rate
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTS In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards (“ASU”) 2016-02, Leases. This standard update was issued to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities, including for operating leases, on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that adopting ASU 2016-02 will have on its financial statements. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes. This standard update provides guidance for balance sheet classification of deferred taxes. This standard requires that deferred tax assets and liabilities be classified as non-current on the balance sheet, and eliminates the prior guidance which required an entity to separate deferred tax liabilities and assets into a current amount and a noncurrent amount on the balance sheet. ASU 2015-17 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Earlier application is permitted as of the beginning of an interim or annual period. The Company is currently evaluating the impact that adopting ASU 2015-17 will have on its financial statements.

STOCK-BASED COMPENSATION AND 19

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Tables)	3 Months Ended
	Mar. 31, 2016
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]
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 Options and Warrants $0.027 3,000,000 7.25 2,500,000 7.25 $0.030 72,000,000 9.75 67,000,000 9.75 $0.036 7,750,000 7.50 5,916,668 7.50 $0.040 1,000,000 1.75 1,000,000 1.75 $0.050 1,000,000 1.75 1,000,000 1.75 $0.060 7,000,000 10.00 7,000,000 10.00 Total 91,750,000 84,416,668

REVENUE RECOGNITION (Detail Tex

REVENUE RECOGNITION (Detail Textuals) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Deferred Revenue Disclosure [Abstract]
Total unearned revenue	$ 137,393
Unearned revenue, current	43,388	$ 43,388
Unearned revenue, long term	$ 94,005	$ 104,853

STOCK-BASED COMPENSATION AND 21

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Details 1)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number Outstanding	91,750,000
Number Exercisable	84,416,668
Stock option and warrant | Exercise Price $0.027
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices | $ / shares	$ 0.027
Number Outstanding	3,000,000
Weighted-Average Remaining Contractual Life (years)	7 years 3 months
Number Exercisable	2,500,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	7 years 3 months
Stock option and warrant | Exercise Price $0.030
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices | $ / shares	$ 0.030
Number Outstanding	72,000,000
Weighted-Average Remaining Contractual Life (years)	9 years 9 months
Number Exercisable	67,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	9 years 9 months
Stock option and warrant | Exercise Price $0.036
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices | $ / shares	$ 0.036
Number Outstanding	7,750,000
Weighted-Average Remaining Contractual Life (years)	7 years 6 months
Number Exercisable	5,916,668
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	7 years 6 months
Stock option and warrant | Exercise Price $0.040
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices | $ / shares	$ 0.040
Number Outstanding	1,000,000
Weighted-Average Remaining Contractual Life (years)	1 year 9 months
Number Exercisable	1,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	1 year 9 months
Stock option and warrant | Exercise Price $0.050
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices | $ / shares	$ 0.050
Number Outstanding	1,000,000
Weighted-Average Remaining Contractual Life (years)	1 year 9 months
Number Exercisable	1,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	1 year 9 months
Stock option and warrant | Exercise Price $0.060
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise Prices | $ / shares	$ 0.060
Number Outstanding	7,000,000
Weighted-Average Remaining Contractual Life (years)	10 years
Number Exercisable	7,000,000
Weighted Average Remaining Contractual Life (years) of Exercisable Warrants	10 years

STOCK-BASED COMPENSATION AND 22

STOCK-BASED COMPENSATION AND OTHER EQUITY BASED PAYMENTS (Detail Textuals) - USD ($)	Feb. 08, 2016	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Sep. 30, 2015	Dec. 31, 2013
Private placement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of share authorized for issuance					7,000,000
Stock issued under private placement		7,000,000
Weighted average exercise price		$ 0.20
Series C Preferred Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Preferred stock, shares issued		30,000,000		30,000,000		30,000,000
Shares warrant feature per share (in dollars per share)		$ 0.03
Shares contingency warrant feature per share (in dollars per share)		0.03
Weighted average exercise price		$ 0.20
Board of Directors | Private placement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Method used		Black-Scholes pricing model
Dividend yield		0.00%
Risk-free interest rate		1.67%
Expected life		5 years
Volatility rate		96.00%
Shares warrant feature per share (in dollars per share)		$ 0.03
Shares contingency warrant feature per share (in dollars per share)		$ 0.06
Number of share authorized for issuance					7,000,000
Stock issued under private placement		7,000,000
Number of shares sold		3,000,000
Proceeds from shares sold		$ 90,000
Stock options and warrants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Fair value of each option granted	$ 0.0219	$ 0.0219
Method used	Black-Scholes pricing model	Black-Scholes pricing model
Dividend yield	0.00%	0.00%
Risk-free interest rate	1.99%	1.67%
Expected life	5 years	5 years
Volatility rate	96.00%	96.00%
Aggregate computed value of warrants		$ 656,380
Unrecognized cost related to stock option grants	$ 109,721	$ 139,971
Remaining vesting periods	2 years	1 year 6 months
Number of option granted to purchase common stock	5,000,000
Option and warrant outstanding		91,750,000
Weighted average exercise price		$ 0.032
Weighted-Average Remaining Contractual Life (years)		9 years 9 months
Aggregate intrinsic value of outstanding and exercisable options and warrants outstanding and exercisable		$ 7,500
Closing price of outstanding and exercisable options and warrants less exercise prices		0.03
Stock options and warrants | Employees, directors, and consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based expense		21,642
Stock options and warrants | Directors, officers and consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based expense			$ 17,071
Stock options and warrants | Employees and consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of option granted to purchase common stock	5,000,000
Vesting period of option	2 years
Exercise price of option	$ 0.03
Stock options and warrants | Mark A. Moore, Ph.D.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of option granted to purchase common stock	500,000
Stock options and warrants | Hong Zhang, Ph.D.
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of option granted to purchase common stock	1,250,000
Stock options and warrants | Board of Directors | Private placement
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate computed value of warrants		$ 284,432

PATENTS (Detail Textuals)

PATENTS (Detail Textuals) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Patents and patent related costs, net	$ 875,386		$ 941,066
Accumulated amortization of patents	3,110,408		$ 3,044,728
Amortization charged on patents	65,680	$ 65,680
Estimated amortization expense of patents at 2017	262,720
Estimated amortization expense of patents at 2018	262,720
Estimated amortization expense of patents at 2019	262,720
Estimated amortization expense of patents at 2020	$ 152,906

STOCKHOLDERS' EQUITY (Detail Te

STOCKHOLDERS' EQUITY (Detail Textuals 1)	Feb. 08, 2016$ / shares	Mar. 31, 2016USD ($)$ / shares$ / Warrantshares	Dec. 31, 2015shares	Sep. 30, 2015shares	Dec. 31, 2013shares
Stock options and warrants
Class Of Stock [Line Items]
Price per share for exercise of warrants, condition one (in dollars per share)		$ 0.032
Aggregate intrinsic value of outstanding and exercisable options and warrants outstanding and exercisable | $		$ 7,500
Closing price of outstanding and exercisable options and warrants less exercise prices | $		$ 0.03
Fair value of each option granted	$ 0.0219	$ 0.0219
Method used	Black-Scholes pricing model	Black-Scholes pricing model
Dividend yield	0.00%	0.00%
Risk-free interest rate	1.99%	1.67%
Expected life	5 years	5 years
Volatility rate	96.00%	96.00%
Aggregate computed value of warrants | $		$ 656,380
Private placement
Class Of Stock [Line Items]
Preferred shares warrant feature per share (in dollars per share)		$ 0.03
Preferred shares contingency warrant feature per share (in dollars per share)		$ 0.06
Series C preferred stock, contingency warrant exercise description		The contingency warrants were issued as a result of the Company not attaining 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 (in dollars per share)		$ 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
Number of days for common stock price at $0.30		30 days
Number of share authorized for issuance | shares				7,000,000
Stock Issued Under Private Placement | shares		7,000,000
Fair value of exercise price of warrants		$ 0.022
Valuation method for warrants		Black Scholes Method
Series C Preferred Stock
Class Of Stock [Line Items]
Preferred stock, shares issued | shares		30,000,000	30,000,000		30,000,000
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 were issued as a result of the Company not attaining 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 (in dollars per share)		$ 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
Number of days for common stock price at $0.30		30 days
Fair value of exercise price of warrants		$ 0.0219
Valuation method for warrants		Black Scholes Method
Series C Preferred Stock converted into Common Stock | shares		1

INVESTMENT IN AVAILABLE FOR S25

INVESTMENT IN AVAILABLE FOR SALE SECURITIES (Detail Textuals) - NeoGenomics Laboratories Inc - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended
	Jan. 31, 2012	Mar. 31, 2016	Dec. 31, 2015
Schedule of Available-for-sale Securities [Line Items]
Number of shares of Neo Genomics stock held		18,000	18,000
Number of shares initially acquired	1,360,000
Other income (expense)
Schedule of Available-for-sale Securities [Line Items]
Unrecognized net gain (loss) on available for sale securities		$ (20,544)
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		$ 121,434

FINANCIAL CONDITION AND GOING C

FINANCIAL CONDITION AND GOING CONCERN (Detail Textuals) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Mar. 31, 2015
Financial Condition And Going Concern [Abstract]
Cash	$ 406,455	$ 417,208	$ 7,642		$ 108,875
Private placement
Schedule of Available-for-sale Securities [Line Items]
Number of share authorized for issuance				7,000,000
Stock issued under private placement	7,000,000
Private placement | Board of Directors
Schedule of Available-for-sale Securities [Line Items]
Number of share authorized for issuance				7,000,000
Stock issued under private placement	7,000,000
Number of shares sold	3,000,000
Proceeds from shares sold	$ 90,000
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	$ 121,434

ACCOUNTING POLICIES (Detail Tex

ACCOUNTING POLICIES (Detail Textuals) - Patents	3 Months Ended
	Mar. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization method	straight-line method
Useful life	17 years

SUBSEQUENT EVENTS (Detail Textu

SUBSEQUENT EVENTS (Detail Textuals) - USD ($)	1 Months Ended
	May. 17, 2016	Mar. 31, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Number of authorized shares of common stock		300,000,000	300,000,000
Subsequent event
Subsequent Event [Line Items]
Number of authorized shares of common stock	450,000,000
Subsequent event | Board of Directors
Subsequent Event [Line Items]
Number of option to purchase	1,500,000
Number of shares vested	250,000
Exercise price	$ 0.035
Fair value of each option granted	$ 0.0265
Method used	Black-Scholes pricing model
Dividend yield	0.00%
Risk-free interest rate	1.89%
Expected life	5 years
Volatility rate	102.00%
Aggregate computed value of options	$ 159,038
Vesting period	3 years
Subsequent event | Chairman of the Board of Directors and CEO
Subsequent Event [Line Items]
Number of option to purchase	3,000,000
Exercise price	$ 0.035
Fair value of each option granted	$ 0.0265
Method used	Black-Scholes pricing model
Dividend yield	0.00%
Risk-free interest rate	1.89%
Expected life	5 years
Volatility rate	102.00%
Aggregate computed value of options	$ 79,519