Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2013 | Nov. 14, 2013 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ULURU INC. | ' |
Entity Central Index Key | '0001168220 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Entity Voluntary Filers | 'No | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 18,444,893 |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-13 | ' |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Current Assets | ' | ' |
Cash and cash equivalents | $53,001 | $21,549 |
Accounts receivable, net | 216,427 | 111,898 |
Notes receivable and accrued interest, current portion | 488,043 | 260,444 |
Inventory | 487,984 | 527,643 |
Prepaid expenses and deferred charges | 130,996 | 194,448 |
Total Current Assets | 1,376,451 | 1,115,982 |
Property, Equipment and Leasehold Improvements, net | 690,718 | 845,535 |
Other Assets | ' | ' |
Intangible assets, net | 3,790,600 | 4,145,985 |
Notes receivable and accrued interest, net of current portion | 275,611 | 1,041,776 |
Investment in unconsolidated subsidiary | 0 | 0 |
Deferred financing costs, net | 104,929 | 160,770 |
Deposits | 18,069 | 18,069 |
Total Other Assets | 4,189,209 | 5,366,600 |
TOTAL ASSETS | 6,256,378 | 7,328,117 |
Current Liabilities | ' | ' |
Accounts payable | 1,703,381 | 2,340,782 |
Accrued liabilities | 343,327 | 372,965 |
Accrued interest | 33,983 | 41,141 |
Convertible notes payable, net of unamortized debt discount, current portion | 1,281,445 | 1,089,619 |
Deferred revenue, current portion | 58,959 | 45,227 |
Total Current Liabilities | 3,421,095 | 3,889,734 |
Long Term Liabilities | ' | ' |
Convertible notes payable, net of unamortized debt discount and current portion | 45,688 | 751,543 |
Deferred revenue, net of current portion | 912,994 | 835,553 |
Total Long Term Liabilities | 958,682 | 1,587,096 |
TOTAL LIABILITIES | 4,379,777 | 5,476,830 |
COMMITMENTS AND CONTINGENCIES | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock - $0.001 par value; 20,000 shares authorized; Preferred Stock Series A, 1,000 shares designated; nil and 65 shares issued and outstanding, aggregate liquidation value of nil and $701,843, at September 30, 2013 and December 31, 2012, respectively | 0 | 0 |
Common Stock - $0.001 par value; 200,000,000 shares authorized; 16,693,883 and 10,074,448 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively | 16,694 | 10,075 |
Additional paid-in capital | 52,623,219 | 51,336,931 |
Promissory notes receivable and accrued interest for common stock issuance | 0 | -985,287 |
Accumulated (deficit) | -50,763,312 | -48,510,432 |
TOTAL STOCKHOLDERS' EQUITY | 1,876,601 | 1,851,287 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $6,256,378 | $7,328,117 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
STOCKHOLDERS' EQUITY | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized (in shares) | 20,000 | 20,000 |
Preferred stock, shares issued (in shares) | 0 | ' |
Preferred stock, shares outstanding (in shares) | 0 | ' |
Common Stock, par value (in dollars per share) | $0.00 | $0.00 |
Common Stock, shares authorized (in shares) | 200,000,000 | 200,000,000 |
Common Stock, shares issued (in shares) | 16,693,883 | 10,074,448 |
Common Stock, shares outstanding (in shares) | 16,693,883 | 10,074,448 |
Series A Preferred Stock [Member] | ' | ' |
STOCKHOLDERS' EQUITY | ' | ' |
Shares designated to Series A (in shares) | 1,000 | 1,000 |
Preferred stock, shares issued (in shares) | 0 | 65 |
Preferred stock, shares outstanding (in shares) | 0 | 65 |
Preferred stock, aggregate liquidation value | $0 | $701,843 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Revenues | ' | ' | ' | ' |
License fees | $11,400 | $11,400 | $33,827 | $29,163 |
Royalty income | 10,276 | 16,633 | 10,276 | 49,918 |
Product sales, net | 88,904 | 60,889 | 197,405 | 126,057 |
Total Revenues | 110,580 | 88,922 | 241,508 | 205,138 |
Costs and Expenses | ' | ' | ' | ' |
Cost of goods sold | 60,245 | 113,415 | 104,236 | 135,745 |
Research and development | 201,244 | 152,985 | 577,712 | 517,196 |
Selling, general and administrative | 302,093 | 375,767 | 914,509 | 1,365,836 |
Amortization of intangible assets | 119,763 | 119,763 | 355,385 | 356,687 |
Depreciation | 59,688 | 75,219 | 185,536 | 225,691 |
Total Costs and Expenses | 743,033 | 837,149 | 2,137,378 | 2,601,155 |
Operating (Loss) | -632,453 | -748,227 | -1,895,870 | -2,396,017 |
Other Income (Expense) | ' | ' | ' | ' |
Interest and miscellaneous income | 15,088 | 30,720 | 55,564 | 33,745 |
Interest expense | -125,904 | -134,218 | -385,965 | -191,008 |
Equity in earnings (loss) of unconsolidated subsidiary | 0 | 0 | 0 | 0 |
Gain on sale of equipment | 0 | 0 | 3,627 | 0 |
(Loss) Before Income Taxes | -743,269 | -851,725 | -2,222,644 | -2,553,280 |
Income taxes | 0 | 0 | 0 | 0 |
Net (Loss) | -743,269 | -851,725 | -2,222,644 | -2,553,280 |
Less preferred stock dividends | -6,061 | -12,288 | -30,236 | -35,168 |
Net (Loss) Allocable to Common Stockholders | ($749,330) | ($864,013) | ($2,252,880) | ($2,588,448) |
Basic and diluted net (loss) per common share (in dollars per share) | ($0.05) | ($0.10) | ($0.16) | ($0.32) |
Weighted average number of common shares outstanding (in shares) | 15,659,822 | 8,267,755 | 13,677,186 | 8,106,117 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
OPERATING ACTIVITIES : | ' | ' |
Net loss | ($2,222,644) | ($2,553,280) |
Adjustments to reconcile net loss to net cash used in operating activities: | ' | ' |
Amortization of intangible assets | 355,385 | 356,687 |
Depreciation | 185,536 | 225,691 |
Share-based compensation for stock and options issued to employees | 10,933 | 16,494 |
Share-based compensation for options issued to non-employees | 45,910 | 21,745 |
Equity in earnings (loss) of unconsolidated subsidiary | 0 | 0 |
Amortization of debt discount on convertible note | 134,052 | 53,029 |
Amortization of deferred financing costs | 55,841 | 20,151 |
Cancellation of warrants issued for services | -48,776 | 0 |
Common stock issued for services | 158,250 | 130,000 |
Common stock issued for wages | 20,000 | 0 |
Common stock issued for interest due on convertible note | 101,917 | 44,200 |
Gain on sale of equipment | -3,627 | 0 |
Change in operating assets and liabilities: | ' | ' |
Accounts receivable | -104,529 | -6,621 |
Other receivable | 0 | 26,410 |
Inventory | 39,659 | 152,243 |
Prepaid expenses and deferred charges | 63,452 | 9,232 |
Notes receivable and accrued interest | 538,566 | -31,997 |
Accounts payable | -637,401 | 353,346 |
Accrued liabilities | -29,638 | 26,114 |
Accrued interest | -7,158 | 23,027 |
Deferred revenue | 91,173 | 195,837 |
Total | 969,545 | 1,615,588 |
Net Cash Used in Operating Activities | -1,253,099 | -937,692 |
INVESTING ACTIVITIES : | ' | ' |
Purchase of equipment | -32,030 | -64,349 |
Proceeds from sale of equipment | 4,937 | 0 |
Proceeds from sale of intangible asset | 0 | 220,000 |
Net Cash (Used in) Provided by Investing Activities | -27,093 | 155,651 |
FINANCING ACTIVITIES : | ' | ' |
Proceeds from sale of common stock and warrants, net | 1,391,446 | 0 |
Proceeds from sale of preferred stock, net | 0 | 275,761 |
Proceeds from redemption of preferred stock, net | 1,864 | 0 |
Proceeds from issuance of convertible notes and warrants, net | 0 | 467,290 |
Repayment of principle due on convertible note | -81,666 | 0 |
Offering cost adjustment - preferred stock sale in 2011 | 0 | 28,927 |
Net Cash Provided by Financing Activities | 1,311,644 | 771,978 |
Net Increase (Decrease) in Cash | 31,452 | -10,063 |
Cash, beginning of period | 21,549 | 46,620 |
Cash, end of period | 53,001 | 36,557 |
SUPPLEMENTAL CASH FLOW DISCLOSURE: | ' | ' |
Cash paid for interest | 33,544 | 3,747 |
Non-cash investing and financing activities: | ' | ' |
Issuance of common stock for promissory note | 0 | 245,818 |
Issuance of common stock for principle due on convertible note | 566,414 | 39,133 |
Issuance of 469,094 shares of common stock pursuant to cashless exercise of warrants to purchase 479,459 shares of common stock | 0 | ' |
Redemption of 65 shares of Series A preferred stock by offset of promissory notes receivable ($969,000) and accrued interest thereon. | $0 | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 7 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Aug. 15, 2013 | Sep. 30, 2013 | |
Non-cash investing and financing activities: | ' | ' | ' |
Shares issued on exercise of warrants (in shares) | 469,094 | ' | 469,094 |
Warrants exercised (in shares) | 479,459 | ' | 479,459 |
Preferred shares redeemed by offset of promissory note receivable (in shares) | ' | -65 | -65 |
Promissory note offset against preferred share redemption | ' | ($969,000) | ($969,000) |
COMPANY_OVERVIEW_AND_BASIS_OF_
COMPANY OVERVIEW AND BASIS OF PRESENTATION | 9 Months Ended | |
Sep. 30, 2013 | ||
COMPANY OVERVIEW AND BASIS OF PRESENTATION [Abstract] | ' | |
COMPANY OVERVIEW AND BASIS OF PRESENTATION | ' | |
NOTE 1. | COMPANY OVERVIEW AND BASIS OF PRESENTATION | |
Company Overview | ||
ULURU Inc. (hereinafter "we", "our", "us", "ULURU", or the "Company") is a Nevada corporation. We are a diversified specialty pharmaceutical company committed to developing and commercializing a broad range of innovative wound care and muco-adhesive film products based on our patented Nanoflex® and OraDiscTM drug delivery technologies, with the goal of improving outcomes for patients, health care professionals, and health care payers. | ||
Basis of Presentation | ||
In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and include the accounts of ULURU Inc., a Nevada corporation, and its wholly-owned subsidiary, Uluru Delaware Inc., a Delaware corporation. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company's financial position as of September 30, 2013 and the results of its operations for the three and nine months ended September 30, 2013 and 2012 and cash flows for the nine months ended September 30, 2013 and 2012 have been made. | ||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates and assumptions. These differences are usually minor and are included in our consolidated financial statements as soon as they are known. Our estimates, judgments, and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from those estimates. | ||
All intercompany transactions and balances have been eliminated in consolidation. | ||
Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | ||
These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on March 29, 2013, including the risk factors set forth therein. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |
Sep. 30, 2013 | ||
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ' | |
SIGNIFICANT ACCOUNTING POLICIES | ' | |
NOTE 2. | SIGNIFICANT ACCOUNTING POLICIES | |
The significant accounting policies used in preparation of these condensed consolidated financial statements for the three and nine months ended September 30, 2013 are consistent with those discussed in Note 2 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on March 29, 2013. |
THE_EFFECT_OF_RECENTLY_ISSUED_
THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS | 9 Months Ended | |
Sep. 30, 2013 | ||
THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS [Abstract] | ' | |
THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS | ' | |
NOTE 3. | THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS | |
In September 2011, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2011-08, "Intangibles – Goodwill and Other (Topic 350): Testing Goodwill for Impairment" ("ASU 2011-08"). ASU 2011-08 updated guidance on the periodic testing of goodwill for impairment. This guidance will allow companies to assess qualitative factors to determine if it is more-likely-than-not that goodwill might be impaired and whether it is necessary to perform the two-step goodwill impairment test required under current accounting standards. This new guidance is effective for fiscal years beginning after December 15, 2011; however, early adoption is permitted in certain circumstances. We adopted the provisions of ASU 2011-08 in the first quarter of 2012. The adoption of this update does not materially impact our financial statements. | ||
In June 2011, the FASB issued Accounting Standards Update No. 2011-05, "Comprehensive Income (Topic 220): Presentation of Comprehensive Income" ("ASU 2011-05"). ASU 2011-05 amended existing guidance by allowing only two options for presenting the components of net income and other comprehensive income: (1) in a single continuous financial statement of comprehensive income or (2) in two separate but consecutive financial statements, consisting of an income statement followed by a separate statement of other comprehensive income. Also, items that are reclassified from other comprehensive income to net income must be presented on the face of the financial statements. ASU No. 2011-05 requires retrospective application, and it is effective for fiscal years beginning after December 15, 2011. We adopted the provisions of ASU 2011-05 in the first quarter of 2012. The adoption of this update does not materially impact our financial statements. | ||
In May 2011, the FASB issued Accounting Standards Update No. 2011-04, "Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs" ("ASU 2011-04"). ASU 2011-04 generally provides a uniform framework for fair value measurements and related disclosures between U.S. generally accepted accounting principles and International Financial Reporting Standards. Additional disclosure requirements in the update include: (1) for Level 3 fair value measurements, quantitative information about unobservable inputs used, a description of the valuation processes used by the entity, and a qualitative discussion about the sensitivity of the measurements to changes in the unobservable inputs; (2) for an entity's use of a nonfinancial asset that is different from the asset's highest and best use, the reason for the difference; (3) for financial instruments not measured at fair value but for which disclosure of fair value is required, the fair value hierarchy level in which the fair value measurements were determined; and (4) the disclosure of all transfers between Level 1 and Level 2 of the fair value hierarchy. ASU 2011-04 was effective for interim and annual periods beginning on or after December 15, 2011. We adopted the provisions of ASU 2011-04 in the first quarter of 2012. The adoption of this update does not materially impact our financial statements. | ||
There are no other new accounting pronouncements adopted or enacted during the nine months ended September 30, 2013 that had, or are expected to have, a material impact on our financial statements. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | ' | ||||||||||||||||||||||||||||||||
NOTE 4. | SEGMENT INFORMATION | ||||||||||||||||||||||||||||||||
We operate in one business segment: the research, development and commercialization of pharmaceutical products. Our corporate headquarters in the United States collects product sales, licensing fees, royalties, and sponsored research revenues from our arrangements with external customers and licensees. Our entire business is managed by a single management team, which reports to the Chief Executive Officer. | |||||||||||||||||||||||||||||||||
Our revenues are currently derived primarily from five licensees for international activities and our domestic sales activities of Altrazeal®. | |||||||||||||||||||||||||||||||||
Revenues per geographic area, along with relative percentages of total revenues, for the three and nine months ended September 30 are summarized as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
Revenues | 2013 | % | 2012 | % | 2013 | % | 2012 | % | |||||||||||||||||||||||||
Domestic | $ | 17,197 | 16 | % | $ | 57,179 | 64 | % | $ | 54,594 | 23 | % | $ | 155,633 | 76 | % | |||||||||||||||||
International | 93,383 | 84 | % | 31,743 | 36 | % | 186,914 | 77 | % | 49,505 | 24 | % | |||||||||||||||||||||
Total | $ | 110,580 | 100 | % | $ | 88,922 | 100 | % | $ | 241,508 | 100 | % | $ | 205,138 | 100 | % | |||||||||||||||||
A significant portion of our revenues are derived from a few major customers. Customers with greater than 10% of total sales, along with their relative percentage of all sales, for the three and nine months ended September 30 are represented on the following table: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
Customers | Product | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Customer A | Altrazeal® | 70% | 29% | 66% | 15% | ||||||||||||||||||||||||||||
Customer B | Aphthasol® | --- | 19% | --- | 24% | ||||||||||||||||||||||||||||
Total | 70% | 48% | 66% | 39% |
NOTES_RECEIVABLE
NOTES RECEIVABLE | 9 Months Ended | |
Sep. 30, 2013 | ||
NOTES RECEIVABLE [Abstract] | ' | |
NOTES RECEIVABLE | ' | |
NOTE 5. | NOTES RECEIVABLE | |
On June 27, 2012, we entered into a Securities Purchase Agreement related to our issuance of a $2,210,000 Secured Convertible Note (the "June 2012 Note"), with Inter-Mountain Capital Corp., a Delaware corporation ("Inter-Mountain"). As part of the June 2012 Note transaction, we received $1,500,000 in the form of six promissory notes in favor of the Company, each in the principal amount of $250,000 (the "Investor Notes") and each of which becomes due as the outstanding balance under the June 2012 Note is reduced to certain levels. On October 5, 2012, we and Inter-Mountain entered into a First Amendment to Buyer Trust Deed Note #1 (the "Trust Deed Note Amendment") for the purpose of revising certain terms and conditions contained in the Buyer Trust Deed Note #1, to include receiving payments of $100,000, $100,000, and $50,000 on October 5, 2012, November 30, 2012, and December 31, 2012, respectively, and any interest thereon. | ||
As of September 30, 2013, we had $763,654 in notes receivable which is comprised of $687,500 for three Investor Notes and $76,154 for accrued interest thereon. | ||
Please refer to Note 11 for a more detailed description of the June 2012 Note transaction. |
INVENTORY
INVENTORY | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
INVENTORY [Abstract] | ' | ||||||||
INVENTORY | ' | ||||||||
NOTE 6. | INVENTORY | ||||||||
As of September 30, 2013, our inventory was comprised of Altrazeal® finished goods, manufacturing costs incurred in the production of Altrazeal®, and raw materials. Inventories are stated at the lower of cost (first in, first out method) or market. We regularly review inventories on hand and write down the carrying value of our inventories for excess and potentially obsolete inventories based on historical usage and estimated future usage. In assessing the ultimate realization of our inventories, we are required to make judgments as to future demand requirements. As actual future demand or market conditions may vary from those projected by us, adjustment to inventories may be required. | |||||||||
The components of inventory, at the different stages of production, consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
Inventory | 30-Sep-13 | 31-Dec-12 | |||||||
Finished goods | $ | 109,452 | $ | 303,779 | |||||
Work-in-progress | 346,163 | 190,794 | |||||||
Raw materials | 32,369 | 33,070 | |||||||
Total | $ | 487,984 | $ | 527,643 |
PROPERTY_EQUIPMENT_and_LEASEHO
PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS [Abstract] | ' | ||||||||
PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS | ' | ||||||||
NOTE 7. | PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS | ||||||||
Property, equipment and leasehold improvements, net, consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
Property, equipment and leasehold improvements | 30-Sep-13 | 31-Dec-12 | |||||||
Laboratory equipment | $ | 424,888 | $ | 424,888 | |||||
Manufacturing equipment | 1,574,665 | 1,547,572 | |||||||
Computers, office equipment, and furniture | 140,360 | 140,360 | |||||||
Computer software | 4,108 | 4,108 | |||||||
Leasehold improvements | 95,841 | 95,841 | |||||||
2,239,862 | 2,212,769 | ||||||||
Less: accumulated depreciation and amortization | ( 1,549,144 | ) | (1,367,234 | ) | |||||
Property, equipment and leasehold improvements, net | $ | 690,718 | $ | 845,535 | |||||
Depreciation expense on property, equipment and leasehold improvements was $59,688 and $75,219 for the three months ended September 30, 2013 and 2012, respectively, and was $185,536 and $225,691 for the nine months ended September 30, 2013 and 2012, respectively. |
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
INTANGIBLE ASSETS [Abstract] | ' | ||||||||
INTANGIBLE ASSETS | ' | ||||||||
NOTE 8. | INTANGIBLE ASSETS | ||||||||
Intangible assets are comprised of patents acquired in October, 2005. Intangible assets, net consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
Intangible assets | 30-Sep-13 | 31-Dec-12 | |||||||
Patent - Amlexanox (Aphthasol®) | $ | 2,090,000 | $ | 2,090,000 | |||||
Patent - Amlexanox (OraDisc™ A) | 6,873,080 | 6,873,080 | |||||||
Patent - OraDisc™ | 73,000 | 73,000 | |||||||
Patent - Hydrogel nanoparticle aggregate | 589,858 | 589,858 | |||||||
9,625,938 | 9,625,938 | ||||||||
Less: accumulated amortization | ( 5,835,338 | ) | (5,479,953 | ) | |||||
Intangible assets, net | $ | 3,790,600 | $ | 4,145,985 | |||||
Amortization expense for intangible assets was $119,763 and $119,763 for the three months ended September 30, 2013 and 2012, respectively, and was $355,385 and $356,687 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||
The future aggregate amortization expense for intangible assets, remaining as of September 30, 2013, is as follows: | |||||||||
Calendar Years | Future Amortization | ||||||||
Expense | |||||||||
2013 (Three months) | $ | 119,763 | |||||||
2014 | 475,148 | ||||||||
2015 | 475,148 | ||||||||
2016 | 476,450 | ||||||||
2017 | 475,148 | ||||||||
2018 & Beyond | 1,768,943 | ||||||||
Total | $ | 3,790,600 |
INVESTMENTS_IN_UNCONSOLIDATED_
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES [Abstract] | ' | ||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES | ' | ||||
NOTE 9. | INVESTMENTS IN UNCONSOLIDATED ENTITIES | ||||
We use the equity method of accounting for investments in other companies that are not controlled by us and in which our interest is generally between 20% and 50% of the voting shares or we have significant influence over the entity, or both. | |||||
On January 11, 2012, we executed a shareholders' agreement for the establishment of Altrazeal Trading Ltd., a single purpose entity to be used for the exclusive marketing of Altrazeal® throughout the European Union, Australia, New Zealand, North Africa, and the Middle East. As a result of this transaction, we received a non-dilutable 25% ownership interest in Altrazeal Trading Ltd. | |||||
For the three and nine months ended September 30, 2013, the financial statements of Altrazeal Trading Ltd. were unavailable and our share of any gains or losses of Altrazeal Trading Ltd. for such periods have not been recorded in our financial statements. The financial activity of Altrazeal Trading Ltd. for the three months and nine months ended September 30, 2013 would not have a material impact on our financial statements. | |||||
Based upon unaudited financial statements provided by Altrazeal Trading Ltd. for the year ended December 31, 2012, our share of Altrazeal Trading Ltd. losses exceeded the carrying value of our investment, therefore the equity method of accounting was suspended and no additional losses were charged to our operations. Our unrecorded share of Altrazeal Trading Ltd. losses for the year ended December 31, 2012 totaled $82,740. | |||||
Summarized financial information for our investment in Altrazeal Trading Ltd. assuming 100% ownership is as follows: | |||||
Altrazeal Trading Ltd. | 31-Dec-12 | ||||
Balance sheet | |||||
Total assets | $ | 415,248 | |||
Total liabilities | $ | 205,991 | |||
Total stockholders' equity | $ | 209,257 | |||
Statement of operations | |||||
Revenues | $ | 131,869 | |||
Net (loss) | $ | (330,961 | ) | ||
On October 19, 2012, we executed a shareholders' agreement for the establishment of ORADISC GmbH, a single purpose entity to be used for the exclusive development and marketing of OraDisc™ erodible film technology products. We received a non-dilutable 25% ownership interest in ORADISC GmbH. | |||||
As of September 30, 2013, ORADISC GmbH had not begun operations and accordingly the net book value of the investee assets had not been determined and there were no equity method investee gains or losses for the three and nine months ended September 30, 2013. |
ACCRUED_LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
ACCRUED LIABILITIES [Abstract] | ' | ||||||||
ACCRUED LIABILITIES | ' | ||||||||
NOTE 10. | ACCRUED LIABILITIES | ||||||||
Accrued liabilities consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
Accrued Liabilities | 30-Sep-13 | 31-Dec-12 | |||||||
Accrued taxes – payroll | $ | 106,299 | $ | 106,299 | |||||
Accrued compensation/benefits | 192,556 | 213,005 | |||||||
Accrued insurance payable | 43,894 | 52,629 | |||||||
Product rebates/returns | 20 | 81 | |||||||
Other | 558 | 951 | |||||||
Total accrued liabilities | $ | 343,327 | $ | 372,965 |
CONVERTIBLE_DEBT
CONVERTIBLE DEBT | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
CONVERTIBLE DEBT [Abstract] | ' | |||||||||||||||||||||||||
CONVERTIBLE DEBT | ' | |||||||||||||||||||||||||
NOTE 11. | CONVERTIBLE DEBT | |||||||||||||||||||||||||
On June 27, 2012, we entered into a Securities Purchase Agreement (the "Purchase Agreement"), related to our issuance of a $2,210,000 Secured Convertible Note, with Inter-Mountain Capital Corp., a Delaware corporation ("Inter-Mountain"). The purchase price for the June 2012 Note was paid $500,000 at closing in cash and $1,500,000 in the form of six promissory notes in favor of the Company, each in the principal amount of $250,000 (the "Investor Notes"), each of which bears interest at the rate of 8.0% per annum, and each of which becomes due as the outstanding balance under the June 2012 Note is reduced to certain levels. The purchase price of the June 2012 Note also reflected a $200,000 original issue discount and $10,000 in attorney's fees. The Purchase Agreement also includes representations and warranties, restrictive covenants, and indemnification provisions standard for similar transactions. | ||||||||||||||||||||||||||
The June 2012 Note bears interest at the rate of 8.0% per annum, with monthly installment payments of $83,333 commencing on the date that is the earlier of (i) thirty calendar days after the effective date of a registration statement registering the re-sale of the shares issuable upon conversion under the June 2012 Note or (ii) December 24, 2012, but in no event sooner than September 25, 2012. At our option, subject to certain volume, price, and other conditions, the monthly installment payments on the June 2012 Note may be paid in whole, or in part, in cash or in our common stock. If the monthly installment is paid in common stock, such shares being issued will be based on a price that is 80% of the average of the three lowest volume weighted average prices of the shares of common stock during the preceding twenty trading days. The percentage declines to 70% if the average of the three lowest volume weighted average prices of the shares of common stock during the preceding twenty trading days is less than $0.05. | ||||||||||||||||||||||||||
At the option of Inter-Mountain, the outstanding principal balance of the June 2012 Note may be converted into shares of our common stock at a conversion price of $0.35 per share, subject to certain pricing adjustments and ownership limitations. The initial tranche was $710,000 and the six subsequent tranches are each $250,000, plus interest. At our option, the outstanding principal balance of the June 2012 Note, or a portion thereof, may be prepaid in cash at 120% of the amount elected to be prepaid. The June 2012 Note is secured by a Security Agreement pursuant to which we granted to Inter-Mountain a first-priority security interest in the assets held by the Company. | ||||||||||||||||||||||||||
Events of default under the June 2012 Note include failure to make required payments or to deliver shares upon conversion, the entry of a $100,000 judgment not stayed within 30 days, breach of representations or covenants under the transaction documents, various events associated with insolvency or failure to pay debts, delisting of our common stock, a restatement of financial statements, and a default under certain other agreements. In the event of default, the interest rate under the June 2012 Note increases to 18% and the June 2012 Note becomes callable at a premium. In addition, the holder has all remedies under law and equity, including foreclosing on our assets under a Security Agreement with Inter-Mountain. | ||||||||||||||||||||||||||
As part of the convertible debt financing, Inter-Mountain also received a total of seven warrants (the "Warrants") to purchase, if they all vest, an aggregate of 3,142,857 shares of common stock, which number of shares could increase based upon the terms and conditions of the Warrants. The Warrants have an exercise price of $0.35 per share, subject to certain pricing adjustments, and are exercisable, subject to vesting provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, February 26, 2013, and July 15, 2013, respectively. Each of the three remaining Warrants will vest upon the payment by the holder of each of the remaining three Investor Notes. For the three months ended September 30, 2013, we issued 469,094 shares of common stock to Inter-Mountain for the cashless exercise of warrants to purchase 479,459 shares of common stock. | ||||||||||||||||||||||||||
As part of the convertible debt financing, we entered into a Registration Rights Agreement whereby we agreed to prepare and file with the SEC a registration statement for the number of shares referred to therein no later than July 27, 2012 and to cause such registration statement to be declared effective no later than ninety days after such filing with the SEC and to keep such registration statement effective for a period of no less than one hundred and eighty days. The Registration Rights Agreement also grants Inter-Mountain piggy-back registration rights with respect to future offerings by the Company. In accordance with our obligations under the Registration Rights Agreement, we filed with the SEC a registration statement that was declared effective on July 31, 2012. | ||||||||||||||||||||||||||
On October 5, 2012, we and Inter-Mountain entered into a First Amendment to Buyer Trust Deed Note #1 for the purpose of revising certain terms and conditions contained in the Buyer Trust Deed Note #1, to include an updated schedule for the timing of certain payment obligations by Inter-Mountain contained therein. | ||||||||||||||||||||||||||
On July 28, 2011, we completed a convertible debt financing for $125,000 with Mr. Kerry P. Gray, the Company's Chairman, President, and Chief Executive Officer (the "July 2011 Note"). The July 2011 Note bears interest at the rate of 10.0% per annum, with annual payments of interest commencing on July 1, 2012. The full amount of principal and any unpaid interest will be due on July 28, 2014. The outstanding principal balance of the July 2011 Note may be converted into shares of the Company's common stock, at the option of the note holder and at any time, at a conversion price of $1.08 per share or 115,741 shares of common stock. We may force conversion of the July 2011 Note if our common stock trades for a defined period of time at a price greater than $2.16. The July 2011 Note is collateralized by the grant of a security interest in the inventory, accounts receivables and capital equipment held by the Company. The securities issuable on conversion have not been registered under the Securities Act of 1933 and may not be sold absent registration or an applicable exemption from the registration requirements. As part of the convertible debt financing, Mr. Gray also received a warrant to purchase up to 34,722 shares of the Company's common stock. The warrant has an exercise price of $1.08 per share and is exercisable at any time until July 28, 2016. | ||||||||||||||||||||||||||
On July 3, 2012, the Company and Mr. Gray entered into a Modification Agreement for the purpose of deferring the annual payment of interest due on July 1, 2012 of $11,542 until such time as Mr. Gray provides written notice to us with such notice being no less than 15 days prior to the relevant payment date. Moreover, the parties agreed that no Event of Default under the July 2011 Note occurred as a result of any failure by us to make the annual payment of interest due on July 1, 2012. Commencing on July 1, 2012, interest at the rate of 12.0% per annum accrued on the deferred interest payment of $11,542 until the relevant payment date. On September 5, 2013, we remitted to Mr. Gray the annual interest due on July 1, 2012 of $11,542 and accrued interest thereon of $1,643. | ||||||||||||||||||||||||||
On July 1, 2013, the Company and Mr. Gray entered into a Modification Agreement for the purpose of deferring the annual payment of interest due on July 1, 2013 of $12,501 until such time as Mr. Gray provides written notice to us with such notice being no less than 15 days prior to the relevant payment date. Moreover, the parties agreed that no Event of Default under the July 2011 Note occurred as a result of any failure by us to make the annual payment of interest due on July 1, 2013. Commencing on July 1, 2013, interest at the rate of 12.0% per annum accrued on the deferred interest payment of $12,501 until the relevant payment date. On October 28, 2013, we remitted to Mr. Gray the annual interest due on July 1, 2013 of $12,501 and accrued interest thereon of $492. | ||||||||||||||||||||||||||
On June 13, 2011, we completed a $140,000 convertible debt financing with Mr. Gray (the "June 2011 Note"). The June 2011 Note bears interest at the rate of 10% per annum, with annual payments of interest commencing on July 1, 2012. The full amount of principal and any unpaid interest will be due on June 13, 2014. The outstanding principal balance of the June 2011 Note may be converted into shares of the Company's common stock, at the option of the note holder and at any time, at a conversion price of $1.20 per share or 116,667 shares of common stock. We may force conversion of the convertible note if our common stock trades for a defined period of time at a price greater than $1.80. The June 2011 Note is collateralized by the grant of a security interest in the inventory, accounts receivables, and capital equipment held by the Company. The securities issuable on conversion have not been registered under the Securities Act of 1933 and may not be sold absent registration or an applicable exemption from the registration requirements. As part of the convertible debt financing, Mr. Gray also received a warrant to purchase up to 35,000 shares of the Company's common stock. The warrant has an exercise price of $1.20 per share and is exercisable at any time until June 13, 2016. | ||||||||||||||||||||||||||
On July 3, 2012, the Company and Mr. Gray entered into a Modification Agreement for the purpose of deferring the annual payment of interest due on July 1, 2012 of $14,653 until such time as Mr. Gray provides written notice to us with such notice being no less than 15 days prior to the relevant payment date. Moreover, the parties agreed that no Event of Default under the June 2011 Note occurred as a result of any failure by us to make the annual payment of interest due on July 1, 2012. Commencing on July 1, 2012, interest at the rate of 12.0% per annum accrued on the deferred interest payment of $14,653 until the relevant payment date. On September 5, 2013, we remitted to Mr. Gray the annual interest due on July 1, 2012 of $14,653 and accrued interest thereon of $2,080. | ||||||||||||||||||||||||||
On July 1, 2013, the Company and Mr. Gray entered into a Modification Agreement for the purpose of deferring the annual payment of interest due on July 1, 2013 of $14,001 until such time as Mr. Gray provides written notice to us with such notice being no less than 15 days prior to the relevant payment date. Moreover, the parties agreed that no Event of Default under the June 2011 Note occurred as a result of any failure by us to make the annual payment of interest due on July 1, 2013. Commencing on July 1, 2013, interest at the rate of 12.0% per annum accrued on the deferred interest payment of $14,001 until the relevant payment date. On October 28, 2013, we remitted to Mr. Gray the annual interest due on July 1, 2013 of $14,001 and accrued interest thereon of $553. | ||||||||||||||||||||||||||
We account for convertible debt using specific guidelines in accordance with U.S. GAAP. We allocated the value of the proceeds received to the convertible instrument and to the warrant on a relative fair value basis. We calculated the fair value of the warrant issued with the convertible instrument using the Black-Scholes valuation method, using the same assumptions used for valuing employee stock options, except the contractual life of the warrant was used. Using the effective interest method, the allocated fair value was recorded as a debt discount and is being amortized over the expected term of the convertible debt to interest expense. | ||||||||||||||||||||||||||
On the date of issuance of the June 2011 Note, the July 2011 Note, and the June 2012 Note, no portion of the proceeds were attributable to a beneficial conversion feature since the conversion price of the June 2011 Note, the July 2011 Note, and the June 2012 Note exceeded the market price of the Company's common stock. | ||||||||||||||||||||||||||
Information relating to our convertible notes payable is as follows: | ||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||
Transaction | Initial | Interest | Maturity | Conversion | Principal | Unamortized | Carrying | |||||||||||||||||||
Principal | Rate | Date | Price (1)(2) | Balance | Debt | Value | ||||||||||||||||||||
Amount | Discount | |||||||||||||||||||||||||
June 2011 Note | $ | 140,000 | 10 | % | 6/13/14 | $ | 1.2 | $ | 140,000 | $ | 2,768 | $ | 137,232 | |||||||||||||
July 2011 Note | 125,000 | 10 | % | 7/28/14 | $ | 1.08 | 125,000 | 6,144 | 118,856 | |||||||||||||||||
June 2012 Note | 2,210,000 | 8 | % | 3/27/15 | $ | 0.35 | 1,318,210 | 247,165 | 1,071,045 | |||||||||||||||||
Total | $ | 2,475,000 | $ | 1,583,210 | $ | 256,077 | $ | 1,327,133 | ||||||||||||||||||
-1 | The outstanding principal balance of the June 2011 Note and the July 2011 Note may be converted, at the option of Mr. Gray, into shares of common stock at a fixed conversion price of $1.20 per share and $1.08 per share, respectively. | |||||||||||||||||||||||||
-2 | The outstanding principal balance of the June 2012 Note may be converted, at the option of Inter-Mountain, into shares of common stock at a conversion price of $0.35 per share, subject to certain pricing adjustments and ownership limitations. | |||||||||||||||||||||||||
The amount of interest cost recognized from our convertible notes outstanding was $38,032 and $52,121 for the three months ended September 30, 2013 and 2012, respectively, and was $124,677 and $67,227 for the nine months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||||||||||
The future minimum principle payments relating to our convertible notes payable, as of September 30, 2013, are as follows: | ||||||||||||||||||||||||||
Payments Due By Period | ||||||||||||||||||||||||||
Transaction | Total | 2013 (Three Months) | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||||||
June 2011 Note | $ | 140,000 | $ | --- | $ | 140,000 | $ | --- | $ | --- | $ | --- | ||||||||||||||
July 2011 Note | 125,000 | --- | 125,000 | --- | --- | --- | ||||||||||||||||||||
June 2012 Note | 1,318,120 | 441,538 | 876,582 | --- | --- | --- | ||||||||||||||||||||
Total | $ | 1,583,120 | $ | 441,538 | $ | 1,141,852 | $ | --- | $ | --- | $ | --- |
EQUITY_TRANSACTIONS
EQUITY TRANSACTIONS | 9 Months Ended | |
Sep. 30, 2013 | ||
EQUITY TRANSACTIONS [Abstract] | ' | |
EQUITY TRANSACTIONS | ' | |
NOTE 12. | EQUITY TRANSACTIONS | |
Common Stock Transactions | ||
On March 14, 2013, we entered into a Securities Purchase Agreement (the "March SPA") with Kerry P. Gray, the Company's Chairman, President, and Chief Executive Officer and Terrance K. Wallberg, the Company's Vice President and Chief Financial Officer (collectively, the "Investors") relating to an equity investment of $440,000 by the Investors for 1,100,000 shares of our common stock, par value $0.001 per share (the "March Shares") and warrants to purchase up to 660,000 shares of our common stock (the "March Warrants") (the "March 2013 Offering"). Under the March SPA, the purchase and sale of the March Shares and March Warrants will take place at four closings over the next twelve months, with $88,000 being funded at the initial closing under the March SPA, $110,000 being funded on the four-month anniversary of the initial closing, $132,000 being funded on the eight-month anniversary of the initial closing, and $110,000 being funded on the one-year anniversary of the initial closing. The March Warrants have a fixed exercise price of $0.60 per share, become exercisable in tranches on each of the four funding dates, and expire on the five-year anniversary of the initial closing. On March 14, 2013, we closed the March 2013 Offering and received the initial funding tranche of $88,000 for the purchase of 220,000 shares of our common stock. On July 15, 2013, we received the second funding tranche of $110,000 for the purchase of 275,000 shares of our common stock. On November 14, 2013, we received the third funding tranche of $132,000 for the purchase of 330,000 shares of our common stock. | ||
On December 21, 2012, we entered into a Securities Purchase Agreement (the "SPA") with IPMD GmbH ("IPMD") relating to an equity investment of $2,000,000 by IPMD for 5,000,000 shares of our common stock, par value $0.001 per share (the "Shares") and warrants to purchase up to 3,000,000 shares of our common stock (the "Warrants") (the "January 2013 Offering"). Under the SPA, the purchase and sale of the Shares and Warrants will take place at four closings over the next twelve months, with $400,000 being funded at the initial closing under the SPA, $500,000 being funded on the four-month anniversary of the initial closing, $600,000 being funded on the eight-month anniversary of the initial closing, and $500,000 being funded on the one-year anniversary of the initial closing. The Warrants have a fixed exercise price of $0.60 per share, become exercisable in tranches on each of the four funding dates, and expire on the one-year anniversary of the initial closing. On January 3, 2013, we closed the January 2013 Offering and received the initial funding tranche of $400,000 for the purchase of 1,000,000 shares of our common stock. On May 7, 2013, September 6, 2013, and October 24, 2013, we received subsequent funding tranches of $500,000, $300,000, and $300,000 for the purchase of 1,250,000, 750,000, and 750,000 shares of our common stock, respectively. | ||
In the SPA, we also agree to appoint up to two directors nominated by IPMD to serve on our Board of Directors. On January 17, 2013, the Board of Directors of the Company appointed Helmut Kerschbaumer and Klaus Kuehne to each serve as a director of the Company. Messrs. Kerschbaumer and Kuehne are the designees of IPMD to serve on the Company's Board of Directors pursuant to covenants in the SPA with IPMD. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
STOCKHOLDERS' EQUITY [Abstract] | ' | ||||||||
STOCKHOLDERS' EQUITY | ' | ||||||||
NOTE 13. | STOCKHOLDERS' EQUITY | ||||||||
Common Stock | |||||||||
As of September 30, 2013, we had 16,693,883 shares of common stock issued and outstanding. We issued 2,236,227 shares of common stock for the three months ended September 30, 2013 comprised of 150,000 shares of common stock issued for consulting services, 750,000 shares of common stock issued to IPMD pursuant to the January 2013 Offering, 275,000 shares of common stock issued to Messrs. Gray and Wallberg pursuant to the March 2013 Offering, 592,133 shares of common stock issued for installment payments due on the June 2012 Note with Inter-Mountain, and 469,094 shares of common stock issued for the cashless exercise of warrants held by Inter-Mountain. | |||||||||
Preferred Stock | |||||||||
As of September 30, 2013, we had no shares of Series A preferred stock issued and outstanding. For the three months ended September 30, 2013, we did not issue any shares of Series A preferred stock to Ironridge Global pursuant to our agreement related to the purchase of the Series A preferred stock. | |||||||||
On August 15, 2013, we provided notice to Ironridge Global III, LLC ("Ironridge") for the redemption of all of our Series A Preferred Stock shares (the "Series A Shares") held by Ironridge, a total of 65 Series A Shares. An affiliate of Ironridge, the issuer of promissory notes held by us, due 7.5 years from the issue date, in the principal amount of $969,000 (the "Notes"), agreed to accept the cancellation of the Notes held by us as full and final payment for the redemption amounts of the Series A Shares. | |||||||||
Warrants | |||||||||
The following table summarizes the warrants outstanding and the number of shares of common stock subject to exercise as of September 30, 2013 and the changes therein during the nine months then ended: | |||||||||
Number of Shares of Common Stock Subject to Exercise | Weighted – Average | ||||||||
Exercise Price | |||||||||
Balance as of December 31, 2012 | 2,041,165 | $ | 0.98 | ||||||
Warrants issued | 4,445,714 | $ | 0.56 | ||||||
Warrants exercised | (479,459 | ) | $ | 0.35 | |||||
Warrants cancelled | (250,000 | ) | $ | 0.35 | |||||
Balance as of September 30, 2013 (1) | 5,757,420 | $ | 0.73 | ||||||
-1 | As part of the June 2012 Note, Inter-Mountain received a total of seven warrants to purchase, if they all vest, an aggregate of 3,142,857 shares of common stock, which number of shares could increase based upon the terms and conditions of the warrants. The warrants have an exercise price of $0.35 per share, subject to certain pricing adjustments, and are exercisable, subject to vesting provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, February 26, 2013, and July 15, 2013, respectively, and warrants for 479,459 shares of common stock have been exercised. For the purposes of this Table, only such net vested shares of common stock (1,484,826 shares) have been included, based upon an exercise price of $0.35 per share of common stock. Each of the other three warrants vest upon the payment by Inter-Mountain of each of the three remaining Investor Notes. | ||||||||
For the nine months ended September 30, 2013, we issued warrants to purchase up to an aggregate of 4,445,714 shares of our common stock which consisted of (i) a warrant issued to IPMD pursuant to the January 2013 Offering to purchase up to an aggregate of 3,000,000 shares of our common stock at an exercise price of $0.60 per share, (ii) a warrant issued to Kerry P. Gray pursuant to the March 2013 Offering to purchase up to an aggregate of 600,000 shares of our common stock at an exercise price of $0.60 per share, (iii) a warrant issued to Terrance K. Wallberg pursuant to the March 2013 Offering to purchase up to an aggregate of 60,000 shares of our common stock at an exercise price of $0.60 per share, (iv) two warrants issued to Inter-Mountain to purchase up to an aggregate of 785,714 shares of our common stock at an exercise price of $0.35 per share. Also occurring during the nine months ended September 30, 2013 was the exercise of warrants to purchase 479,459 shares of our common stock, at an exercise price of $0.35 per share, by Inter-Mountain and the cancellation of a warrant issued to NUWA Group LLC to purchase up to an aggregate of 250,000 shares of our common stock at an exercise price of $0.35 per share. | |||||||||
Of the warrant shares subject to exercise as of September 30, 2013, expiration of the right to exercise is as follows: | |||||||||
Date of Expiration | Number of Warrant Shares of Common Stock Subject to Expiration | ||||||||
3-Jan-14 | 3,000,000 | ||||||||
23-Jul-14 | 69,050 | ||||||||
15-May-15 | 357,155 | ||||||||
13-Jun-16 | 35,000 | ||||||||
16-Jul-16 | 116,667 | ||||||||
28-Jul-16 | 34,722 | ||||||||
27-Jun-17 | 1,484,826 | ||||||||
14-Mar-18 | 660,000 | ||||||||
Total | 5,757,420 |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 9 Months Ended | |||
Sep. 30, 2013 | ||||
EARNINGS PER SHARE [Abstract] | ' | |||
EARNINGS PER SHARE | ' | |||
NOTE 14. | EARNINGS PER SHARE | |||
Basic and Diluted Net Loss Per Share | ||||
In accordance with FASB Accounting Standards Codification ("ASC") Topic 260, Earnings per Share, basic earnings (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period, increased to include potential dilutive common shares. The effect of outstanding stock options, restricted vesting common stock, convertible debt, convertible preferred stock, and warrants, when dilutive, is reflected in diluted earnings (loss) per common share by application of the treasury stock method. We have excluded all outstanding stock options, restricted vesting common stock, convertible debt, convertible preferred stock, and warrants from the calculation of diluted net loss per common share because all such securities are antidilutive for all periods presented. | ||||
Shares used in calculating basic and diluted net loss per common share exclude these potential common shares as of September 30, 2013 and December 31, 2012: | ||||
30-Sep-13 | 31-Dec-12 | |||
Warrants to purchase common stock (1) | 5,757,420 | 2,041,165 | ||
Stock options to purchase common stock | 1,014,907 | 158,409 | ||
Unvested restricted common stock | --- | 300 | ||
Common stock issuable upon the assumed conversion of our convertible note payable from June 2012 (2) | 3,766,316 | 5,617,974 | ||
Common stock issuable upon the assumed conversion of our convertible notes payable from June 2011 and July 2011 (3) | 309,818 | 368,637 | ||
Common stock issuable upon the assumed conversion of our Series A preferred stock (4)(5) | --- | 1,002,634 | ||
Total | 10,848,461 | 9,189,119 | ||
-1 | As part of the June 2012 Note, Inter-Mountain received a total of seven warrants to purchase, if they all vest, an aggregate of 3,142,857 shares of common stock, which number of shares could increase based upon the terms and conditions of the warrants. The warrants have an exercise price of $0.35 per share, subject to certain pricing adjustments, and are exercisable, subject to vesting provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, February 26, 2013, and July 15, 2013, respectively, and warrants for 479,459 shares of common stock have been exercised. For the purposes of this Table, only such net vested shares of common stock (1,484,826 shares) have been included, based upon an exercise price of $0.35 per share of common stock. Each of the other three warrants vest upon the payment by Inter-Mountain of each of the three remaining Investor Notes. | |||
-2 | The outstanding principal balance and the accrued and unpaid interest of the June 2012 Note may be converted, at the option of Inter-Mountain, into shares of common stock at a conversion price of $0.35 per share, subject to certain pricing adjustments and ownership limitations. For the purposes of this Table, we have assumed a conversion price of $0.35 per share and no ownership limitations. | |||
-3 | The outstanding principal balance of the June 2011 Note and the July 2011 Note may be converted, at the option of Mr. Gray, into shares of common stock at a fixed conversion price of $1.20 per share and $1.08 per share, respectively. The accrued and unpaid interest for each convertible note payable may be converted, at the option of Mr. Gray, into shares of common stock at a conversion price based upon the average of the five trading days prior to the payment date, which for the purposes of this Table we have assumed to be September 30, 2013. | |||
-4 | The outstanding Series A preferred stock and the accrued and unpaid dividends thereon are convertible into shares of the Company's common stock at the Company's option at any time after six-months from the date of issuance of the Series A preferred stock. The conversion price for the holder is fixed at $0.70 per share with no adjustment mechanisms, resets, ratchets, or anti-dilution covenants other than the customary adjustments for stock splits. For the purposes of this Table, we have assumed a conversion price of $0.70 per share. | |||
-5 | On August 15, 2013, we provided notice to Ironridge for the redemption of all of our Series A Shares held by Ironridge, a total of 65 Series A Shares. An affiliate of Ironridge, the issuer of promissory notes held by us, due 7.5 years from the issue date, in the principal amount of $969,000, agreed to accept the cancellation of the promissory notes held by us as full and final payment for the redemption amounts of the Series A Shares. |
SHARE_BASED_COMPENSATION
SHARE BASED COMPENSATION | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
SHARE BASED COMPENSATION [Abstract] | ' | ||||||||||||||||||
SHARE BASED COMPENSATION | ' | ||||||||||||||||||
NOTE 15. | SHARE BASED COMPENSATION | ||||||||||||||||||
The Company's share-based compensation plan, the 2006 Equity Incentive Plan ("Equity Incentive Plan"), is administered by the compensation committee of the Board of Directors ("Board"), which selects persons to receive awards and determines the number of shares subject to each award and the terms, conditions, performance measures and other provisions of the award. | |||||||||||||||||||
Our Board granted the following incentive stock option awards to executives or employees and nonstatutory stock option awards to directors or non-employees for the three and nine months ended September 30: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 (3) | ||||||||||||||||
Incentive Stock Options (1) | |||||||||||||||||||
Quantity | --- | --- | 232,500 | --- | |||||||||||||||
Weighted average fair value per share | --- | --- | $ | 0.24 | --- | ||||||||||||||
Fair value | --- | --- | $ | 56,112 | --- | ||||||||||||||
Nonstatutory Stock Options (2) | |||||||||||||||||||
Quantity | --- | --- | 735,000 | --- | |||||||||||||||
Weighted average fair value per share | --- | --- | $ | 0.24 | --- | ||||||||||||||
Fair value | --- | --- | $ | 177,388 | --- | ||||||||||||||
-1 | The Company did not award any incentive stock options for the three months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||
-2 | The Company did not award any nonstatutory stock options for the three months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||
-3 | The Company did not award any shared-based compensation for the nine months ended September 30, 2012. | ||||||||||||||||||
We account for share-based compensation under FASB ASC Topic 718, Stock Compensation, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees, consultants, and directors based on estimated fair values of the award on the grant date. We use the Black-Scholes option-pricing model to estimate the fair value of share-based awards with the following weighted average assumptions: | |||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Incentive Stock Options | |||||||||||||||||||
Expected volatility (1) | 103.55% | --- | |||||||||||||||||
Risk-free interest rate % (2) | 0.81% | --- | |||||||||||||||||
Expected term (in years) | 5 | --- | |||||||||||||||||
Dividend yield (3) | --- | --- | |||||||||||||||||
Forfeiture rate | --- | --- | |||||||||||||||||
Nonstatutory Stock Options | |||||||||||||||||||
Expected volatility (1) | 103.55% | --- | |||||||||||||||||
Risk-free interest rate % (2) | 0.81% | --- | |||||||||||||||||
Expected term (in years) | 5 | --- | |||||||||||||||||
Dividend yield (3) | --- | --- | |||||||||||||||||
Forfeiture rate | --- | --- | |||||||||||||||||
-1 | Expected volatility assumption was based upon a combination of historical stock price volatility measured on a daily basis and an estimate of expected future stock price volatility | ||||||||||||||||||
-2 | Risk-free interest rate assumption is based upon U.S. Treasury bond interest rates appropriate for the term of the stock options. | ||||||||||||||||||
-3 | The Company does not currently intend to pay cash dividends, thus has assumed a 0% dividend yield. | ||||||||||||||||||
Stock Options (Incentive and Nonstatutory) | |||||||||||||||||||
The following table summarizes share-based compensation related to stock options for the three and nine months ended September 30: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Research and development | $ | 5,425 | $ | --- | $ | 11,438 | $ | 6,280 | |||||||||||
Selling, general and administrative | 19,662 | 6,760 | 44,414 | 25,753 | |||||||||||||||
Total share-based compensation expense | $ | 25,087 | $ | 6,760 | $ | 55,852 | $ | 32,033 | |||||||||||
At September 30, 2013, the balance of unearned share-based compensation to be expensed in future periods related to unvested stock option awards, as adjusted for expected forfeitures, is approximately $177,530. The period over which the unearned share-based compensation is expected to be recognized is approximately thirty months. | |||||||||||||||||||
The following table summarizes the stock options outstanding and the number of shares of common stock subject to exercise as of September 30, 2013 and the changes therein during the nine months then ended: | |||||||||||||||||||
Stock Options | Weighted Average Exercise Price per Share | ||||||||||||||||||
Outstanding as of December 31, 2012 | 158,409 | $ | 12.32 | ||||||||||||||||
Granted | 967,500 | 0.33 | |||||||||||||||||
Forfeited/cancelled | (111,002 | ) | 1.03 | ||||||||||||||||
Exercised | --- | --- | |||||||||||||||||
Outstanding as of September 30, 2013 | 1,014,907 | $ | 2.12 | ||||||||||||||||
The following table presents the stock option grants outstanding and exercisable as of September 30, 2013: | |||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||
Stock Options Outstanding | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Life in Years | Stock Options Exercisable | Weighted Average Exercise Price per Share | |||||||||||||||
892,500 | $ | 0.33 | 9.5 | 197,500 | $ | 0.33 | |||||||||||||
53,334 | 2.38 | 4.7 | 46,668 | 2.36 | |||||||||||||||
30,002 | 14.4 | 3.5 | 30,002 | 14.4 | |||||||||||||||
39,071 | 33.35 | 4.1 | 39,071 | 33.35 | |||||||||||||||
1,014,907 | $ | 2.12 | 8.8 | 313,241 | $ | 6.1 | |||||||||||||
Restricted Stock Awards | |||||||||||||||||||
Restricted stock awards, which typically vest over a period of two to five years, are issued to certain key employees and are subject to forfeiture until the end of an established restriction period. We utilize the market price on the date of grant as the fair market value of restricted stock awards and expense the fair value on a straight-line basis over the vesting period. | |||||||||||||||||||
The following table summarizes share-based compensation related to restricted stock awards for the three and nine months ended September 30: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Research and development | $ | --- | $ | ( 391 | ) | $ | 444 | $ | 2,814 | ||||||||||
Selling, general and administrative | --- | 1,143 | 547 | 3,392 | |||||||||||||||
Total share-based compensation expense | $ | --- | $ | 752 | $ | 991 | $ | 6,206 | |||||||||||
At September 30, 2013, the balance of unearned share-based compensation to be expensed in future periods related to restricted stock awards, as adjusted for expected forfeitures, is nil. | |||||||||||||||||||
The following table summarizes the non-vested restricted stock awards outstanding and the number of shares of common stock subject to potential issue as of September 30, 2013 and the changes therein during the nine months then ended: | |||||||||||||||||||
Restricted stock | Weighted Average Grant Date Fair Value | ||||||||||||||||||
Outstanding as of December 31, 2012 | 300 | $ | 34.59 | ||||||||||||||||
Shares granted | --- | --- | |||||||||||||||||
Shares forfeited/cancelled | --- | --- | |||||||||||||||||
Shares exercised/issued | (300 | ) | 34.59 | ||||||||||||||||
Outstanding as of September 30, 2013 | --- | $ | --- | ||||||||||||||||
Summary of Plans | |||||||||||||||||||
2006 Equity Incentive Plan | |||||||||||||||||||
In March 2006, our Board adopted and our stockholders approved our Equity Incentive Plan, which initially provided for the issuance of up to 133,333 shares of our common stock pursuant to stock option and other equity awards. At the annual meetings of the stockholders held on May 8, 2007, December 17, 2009, June 15, 2010, June 14, 2012, and on June 13, 2013, our stockholders approved amendments to the Equity Incentive Plan to increase the total number of shares of common stock issuable under the Equity Incentive Plan pursuant to stock options and other equity awards by 266,667 shares, 200,000 shares, 200,000 shares, 400,000 shares, and 600,000 shares, respectively, to a total of 1,800,000 shares. | |||||||||||||||||||
In December 2006, we began issuing stock options to employees, consultants, and directors. The stock options issued generally vest over a period of one to four years and have a maximum contractual term of ten years. In January 2007, we began issuing restricted stock awards to our employees. Restricted stock awards generally vest over a period of six months to five years after the date of grant. Prior to vesting, restricted stock awards do not have dividend equivalent rights, do not have voting rights and the shares underlying the restricted stock awards are not considered issued and outstanding. Shares of common stock are issued on the date the restricted stock awards vest. | |||||||||||||||||||
As of September 30, 2013, we had granted options to purchase 1,376,167 shares of common stock since the inception of the Equity Incentive Plan, of which 1,014,907 were outstanding at a weighted average exercise price of $2.12 per share, and we had granted awards for 68,616 shares of restricted stock since the inception of the Equity Incentive Plan, of which none were outstanding. As of September 30, 2013, there were 715,647 shares that remained available for future grants under our Equity Incentive Plan. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||
NOTE 16. | FAIR VALUE MEASUREMENTS | ||||||||
In accordance with ASC Topic 820, Fair Value Measurements, ("ASC Topic 820") certain assets and liabilities of the Company are required to be recorded at fair value. Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability in an orderly transaction between market participants. The guidance in ASC Topic 820 also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimized the use of unobservable inputs by requiring that the most observable inputs be used when available. | |||||||||
Observable inputs are based on market data obtained from independent sources, while unobservable inputs are based on our market assumptions. Unobservable inputs require significant management judgment or estimation. In some cases, the inputs used to measure an asset or liability may fall into different levels of the fair value hierarchy. In those instances, the fair value measurement is required to be classified using the lowest level of input that is significant to the fair value measurement. Such determination requires significant management judgment. | |||||||||
The three-tier value hierarchy, which prioritizes the inputs used in the valuation methodologies, is as follows: | |||||||||
Level 1 | — | Valuations based on quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||
Level 2 | — | Valuations based on observable inputs other than quoted prices in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and other inputs that are observable or can be corroborated by observable market data. | |||||||
Level 3 | — | Valuations based on unobservable inputs reflecting the Company's own assumptions, consistent with reasonably available assumptions made by other market participants. | |||||||
Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. We review the fair value hierarchy classification on a quarterly basis. Changes in the observability of valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. | |||||||||
Our financial instruments, including cash, cash equivalents, accounts receivable, and accounts payable are carried at cost, which approximates their fair value because of the short-term maturity of these instruments. We believe that the carrying value of our other receivable and convertible note payable balances approximates fair value based on a valuation methodology using the income approach and a discounted cash flow model. | |||||||||
The following table summarizes the fair value of our financial instruments at September 30, 2013 and December 31, 2012. | |||||||||
Description | 30-Sep-13 | 31-Dec-12 | |||||||
Assets: | |||||||||
Notes receivable and accrued interest | $ | 763,654 | $ | 1,302,220 | |||||
Liabilities: | |||||||||
Convertible note – June 2011 | $ | 137,232 | $ | 134,154 | |||||
Convertible note – July 2011 | $ | 118,856 | $ | 113,084 | |||||
Convertible note – June 2012 | $ | 1,071,045 | $ | 1,593,924 |
INCOME_TAXES
INCOME TAXES | 9 Months Ended | |
Sep. 30, 2013 | ||
INCOME TAXES [Abstract] | ' | |
INCOME TAXES | ' | |
NOTE 17. | INCOME TAXES | |
There was no current federal tax provision or benefit recorded for any period since inception, nor were there any recorded deferred income tax assets, as such amounts were completely offset by valuation allowances. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||
NOTE 18. | COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
Operating Leases | |||||||||||||||||
On January 31, 2006 we entered into a lease agreement for office and laboratory space in Addison, Texas. The lease commenced on April 1, 2006 and originally continued until April 1, 2013. The lease required a minimum monthly lease obligation of $9,330, which is inclusive of monthly operating expenses, until April 1, 2011 and at such time increased to $9,776, which is inclusive of monthly operating expenses. On February 22, 2013, we executed an Amendment to Lease Agreement (the "Lease Amendment") that renewed and extended our lease until March 31, 2015. The Lease Amendment requires a minimum monthly lease obligation of $9,128, which is inclusive of monthly operating expenses, until March 31, 2014 and at such time, will increase to $9,314, which is inclusive of monthly operating expenses. The Lease Amendment includes an option whereby we may convert the term of our lease renewal from a two year term to a five year term by providing written notice on or before October 1, 2013. If so elected, the minimum monthly lease obligation for the remainder of the first year shall be reduced to $8,751, which is inclusive of monthly operating expenses, effective on the first day of the month following our election and the minimum monthly lease obligation shall increase annually every April 1st thereafter by $186 per month until March 31, 2018. | |||||||||||||||||
On December 10, 2010 we entered into a lease agreement for certain office equipment. The lease, which commenced on February 1, 2011 and continues until February 1, 2015, requires a minimum lease obligation of $744 per month. | |||||||||||||||||
The future minimum lease payments under the 2013 office lease and the 2010 equipment lease are as follows as of September 30, 2013: | |||||||||||||||||
Calendar Years | Future Lease Expense | ||||||||||||||||
2013 (Three months) | $ | 29,811 | |||||||||||||||
2014 | 120,917 | ||||||||||||||||
2015 | 28,881 | ||||||||||||||||
2016 | --- | ||||||||||||||||
2017 | --- | ||||||||||||||||
Total | $ | 179,609 | |||||||||||||||
Rent expense for our operating leases amounted to $31,083 and $32,971 for the three months ended September 30, 2013 and 2012, respectively, and $86,125 and $98,111 for the nine months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||
Employment Agreements | |||||||||||||||||
As of September 30, 2013, we are party to employment agreements with our Vice President and Chief Financial Officer, Terrance K. Wallberg, and Daniel G. Moro, Vice President – Polymer Drug Delivery. The employment agreements with Messrs. Wallberg and Moro each have a term of one year and include an automatic one-year term renewal for each year thereafter. Each employment agreement provides for a base salary, bonus, stock options, stock grants, and eligibility for Company provided benefit programs. Under certain circumstances, the employment agreements provide for certain severance benefits in the event of termination or a change in control. The employment agreements also contain non-solicitation, confidentiality and non-competition covenants, and a requirement for the assignment of certain invention and intellectual property rights to the Company. | |||||||||||||||||
Separation Agreement | |||||||||||||||||
As of September 30, 2013, we continue to be a party to a separation agreement with Kerry P. Gray, dated March 9, 2009. Mr. Gray currently serves as our Chairman of the Board, Chairman of the Board's Executive Committee, Chief Executive Officer, and President. Pursuant to the terms of the separation agreement, we provide or have provided, as applicable, certain benefits to Mr. Gray, including: (i) payments totaling $400,000 during the initial 12 month period following March 9, 2009; (ii) commencing March 1, 2010 and continuing for a period of forty-eight (48) months, a payment of $12,500 per month; (iii) full acceleration of all vesting schedules for all outstanding Company stock options and shares of restricted stock of the Company held by Mr. Gray, with all such Company stock options exercisable by Mr. Gray having expired as of March 1, 2012; and (iv) for a period of twenty-four (24) months following March 9, 2009 we were required to maintain and provide coverage under Mr. Gray's existing health coverage plan. The separation agreement contains a mutual release of claims, certain stock lock-up provisions, and other standard provisions. | |||||||||||||||||
Indemnification | |||||||||||||||||
In the normal course of business, we enter into contracts and agreements that contain a variety of representations and warranties and provide for general indemnifications. Our exposure under these agreements is unknown because it involves claims that may be made against us in the future, but have not yet been made. To date, we have not paid any claims or been required to defend any action related to our indemnification obligations. However, we may record charges in the future as a result of these indemnification obligations. | |||||||||||||||||
In accordance with our restated articles of incorporation and our amended and restated bylaws, we have indemnification obligations to our officers and directors for certain events or occurrences, subject to certain limits, while they are serving at our request in their respective capacities. There have been no claims to date and we have a director and officer insurance policy that enables us to recover a portion of any amounts paid for future potential claims. We have also entered into contractual indemnification agreements with each of our officers and directors. | |||||||||||||||||
Related Party Transactions | |||||||||||||||||
On January 17, 2013, the Board of Directors of the Company appointed Helmut Kerschbaumer and Klaus Kuehne to each serve as a director of the Company. Messrs. Kerschbaumer and Kuehne currently serve as directors of IPMD, Altrazeal Trading, Ltd and Melmed Holding AG and thereby have control of, and make investment and business decisions on behalf of IPMD, Altrazeal Trading Ltd. and Melmed Holding AG (collectively, the "Euro Distributors"). | |||||||||||||||||
For the nine months ended September 30, 2013 and 2012, respectively, the Company had product sales, in approximate numbers, of $143,000 and $22,000 with Euro Distributors, which represented 59% and 11% of our total revenues. As of September 30, 2013 and December 31, 2012, respectively, Euro Distributors had an outstanding accounts receivable, in approximate numbers, of $82,000 and $101,000, which represented 35% and 77% of our total outstanding accounts receivables. | |||||||||||||||||
On December 21, 2012, we entered into a Securities Purchase Agreement with IPMD as described in more detail in Note 12. | |||||||||||||||||
Related Party Obligations | |||||||||||||||||
Since 2011, our named executive officers and certain key executives have temporarily deferred portions of their compensation as part of a plan to conserve the Company's cash and financial resources. | |||||||||||||||||
As of September 30, 2013, the following table summarizes the compensation temporarily deferred since 2011: | |||||||||||||||||
Name | 2013 | 2012 | 2011 | Total | |||||||||||||
Kerry P. Gray (1) | $ | (23,500 | ) | $ | 220,673 | $ | 140,313 | $ | 337,486 | ||||||||
Terrance K. Wallberg | (11,539 | ) | $ | 24,230 | $ | 36,539 | $ | 49,230 | |||||||||
Key executives | (20,000 | ) | $ | 27,253 | $ | 20,986 | $ | 28,239 | |||||||||
Total | $ | (55,039 | ) | $ | 272,156 | $ | 197,838 | $ | 414,955 | ||||||||
-1 | During 2013, Mr. Gray temporarily deferred compensation of $169,000 which consisted of $11,500 earned pursuant to a Separation Agreement and $157,500 for his duties as Chairman of the Executive Committee of the Company's Board of Directors. During 2013, Mr. Gray was also repaid $192,500 of temporarily deferred compensation, of which $180,000 was used by Mr. Gray for funding required pursuant to the March 2013 Offering. | ||||||||||||||||
The Company's obligation for temporarily deferred compensation was $414,955, of which $275,000 was included in accounts payable and $139,955 was included in accrued liabilities, and $469,994 of which $310,000 was included in accounts payable and $159,994 was included in accrued liabilities, as of September 30, 2013 and December 31, 2012, respectively. | |||||||||||||||||
Contingent Milestone Obligations | |||||||||||||||||
We are subject to paying Access Pharmaceuticals, Inc. ("Access") for certain milestones based on our achievement of certain annual net sales, cumulative net sales, and/or our having reached certain defined technology milestones including licensing agreements and advancing products to clinical development. As of September 30, 2013, the future milestone obligations that we are subject to paying Access, if the milestones related thereto are achieved, total $4,750,000. Such milestones are based on total annual sales of 20 and 40 million dollars of certain products, annual sales of 20 million dollars of any one certain product, and cumulative sales of such products of 50 and 100 million dollars. | |||||||||||||||||
On March 7, 2008, we terminated the license agreement with ProStrakan Ltd. for Amlexanox-related products in the United Kingdom and Ireland. As part of the termination, we agreed to pay ProStrakan Ltd. a royalty of 30% on any future payments received by us from a new licensee in the United Kingdom and Ireland territories, up to a maximum of $1,400,000. On November 17, 2008, we entered into a licensing agreement for Amlexanox-related product rights to the United Kingdom and Ireland territories with MEDA AB. |
LEGAL_PROCEEDINGS
LEGAL PROCEEDINGS | 9 Months Ended | |
Sep. 30, 2013 | ||
LEGAL PROCEEDINGS [Abstract] | ' | |
LEGAL PROCEEDINGS | ' | |
NOTE 19. | LEGAL PROCEEDINGS | |
From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. We are not currently a party to any legal proceedings, the adverse outcome of which, in management's opinion, individually or in the aggregate, would have a material adverse effect on the results of our operations or financial position. There are no material proceedings to which any director, officer or any of our affiliates, any owner of record or beneficially of more than five percent of any class of our voting securities, or any associate of any such director, officer, our affiliates, or security holder, is a party adverse to us or our consolidated subsidiary or has a material interest adverse thereto. |
COMPANY_OVERVIEW_AND_BASIS_OF_1
COMPANY OVERVIEW AND BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
COMPANY OVERVIEW AND BASIS OF PRESENTATION [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
In the opinion of management, the accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and include the accounts of ULURU Inc., a Nevada corporation, and its wholly-owned subsidiary, Uluru Delaware Inc., a Delaware corporation. They do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company's financial position as of September 30, 2013 and the results of its operations for the three and nine months ended September 30, 2013 and 2012 and cash flows for the nine months ended September 30, 2013 and 2012 have been made. | |
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, as well as disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results may differ from those estimates and assumptions. These differences are usually minor and are included in our consolidated financial statements as soon as they are known. Our estimates, judgments, and assumptions are continually evaluated based on available information and experience. Because of the use of estimates inherent in the financial reporting process, actual results could differ from those estimates. | |
All intercompany transactions and balances have been eliminated in consolidation. | |
Operating results for the three and nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013. | |
These condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on March 29, 2013, including the risk factors set forth therein. |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
SEGMENT INFORMATION [Abstract] | ' | ||||||||||||||||||||||||||||||||
Revenues per geographic area | ' | ||||||||||||||||||||||||||||||||
Revenues per geographic area, along with relative percentages of total revenues, for the three and nine months ended September 30 are summarized as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
Revenues | 2013 | % | 2012 | % | 2013 | % | 2012 | % | |||||||||||||||||||||||||
Domestic | $ | 17,197 | 16 | % | $ | 57,179 | 64 | % | $ | 54,594 | 23 | % | $ | 155,633 | 76 | % | |||||||||||||||||
International | 93,383 | 84 | % | 31,743 | 36 | % | 186,914 | 77 | % | 49,505 | 24 | % | |||||||||||||||||||||
Total | $ | 110,580 | 100 | % | $ | 88,922 | 100 | % | $ | 241,508 | 100 | % | $ | 205,138 | 100 | % | |||||||||||||||||
Customers with greater than 10% of total sales | ' | ||||||||||||||||||||||||||||||||
Customers with greater than 10% of total sales, along with their relative percentage of all sales, for the three and nine months ended September 30 are represented on the following table: | |||||||||||||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||
Customers | Product | 2013 | 2012 | 2013 | 2012 | ||||||||||||||||||||||||||||
Customer A | Altrazeal® | 70% | 29% | 66% | 15% | ||||||||||||||||||||||||||||
Customer B | Aphthasol® | --- | 19% | --- | 24% | ||||||||||||||||||||||||||||
Total | 70% | 48% | 66% | 39% |
INVENTORY_Tables
INVENTORY (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
INVENTORY [Abstract] | ' | ||||||||
Components of inventory | ' | ||||||||
The components of inventory, at the different stages of production, consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
Inventory | 30-Sep-13 | 31-Dec-12 | |||||||
Finished goods | $ | 109,452 | $ | 303,779 | |||||
Work-in-progress | 346,163 | 190,794 | |||||||
Raw materials | 32,369 | 33,070 | |||||||
Total | $ | 487,984 | $ | 527,643 |
PROPERTY_EQUIPMENT_and_LEASEHO1
PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS [Abstract] | ' | ||||||||
Property, equipment and leasehold improvements | ' | ||||||||
Property, equipment and leasehold improvements, net, consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
Property, equipment and leasehold improvements | 30-Sep-13 | 31-Dec-12 | |||||||
Laboratory equipment | $ | 424,888 | $ | 424,888 | |||||
Manufacturing equipment | 1,574,665 | 1,547,572 | |||||||
Computers, office equipment, and furniture | 140,360 | 140,360 | |||||||
Computer software | 4,108 | 4,108 | |||||||
Leasehold improvements | 95,841 | 95,841 | |||||||
2,239,862 | 2,212,769 | ||||||||
Less: accumulated depreciation and amortization | ( 1,549,144 | ) | (1,367,234 | ) | |||||
Property, equipment and leasehold improvements, net | $ | 690,718 | $ | 845,535 |
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
INTANGIBLE ASSETS [Abstract] | ' | ||||||||
Intangible assets | ' | ||||||||
Intangible assets are comprised of patents acquired in October, 2005. Intangible assets, net consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
Intangible assets | 30-Sep-13 | 31-Dec-12 | |||||||
Patent - Amlexanox (Aphthasol®) | $ | 2,090,000 | $ | 2,090,000 | |||||
Patent - Amlexanox (OraDisc™ A) | 6,873,080 | 6,873,080 | |||||||
Patent - OraDisc™ | 73,000 | 73,000 | |||||||
Patent - Hydrogel nanoparticle aggregate | 589,858 | 589,858 | |||||||
9,625,938 | 9,625,938 | ||||||||
Less: accumulated amortization | ( 5,835,338 | ) | (5,479,953 | ) | |||||
Intangible assets, net | $ | 3,790,600 | $ | 4,145,985 | |||||
Future aggregate amortization expense for intangible assets | ' | ||||||||
The future aggregate amortization expense for intangible assets, remaining as of September 30, 2013, is as follows: | |||||||||
Calendar Years | Future Amortization | ||||||||
Expense | |||||||||
2013 (Three months) | $ | 119,763 | |||||||
2014 | 475,148 | ||||||||
2015 | 475,148 | ||||||||
2016 | 476,450 | ||||||||
2017 | 475,148 | ||||||||
2018 & Beyond | 1,768,943 | ||||||||
Total | $ | 3,790,600 |
INVESTMENTS_IN_UNCONSOLIDATED_1
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES [Abstract] | ' | ||||
Summarized financial information for investment | ' | ||||
Summarized financial information for our investment in Altrazeal Trading Ltd. assuming 100% ownership is as follows: | |||||
Altrazeal Trading Ltd. | 31-Dec-12 | ||||
Balance sheet | |||||
Total assets | $ | 415,248 | |||
Total liabilities | $ | 205,991 | |||
Total stockholders' equity | $ | 209,257 | |||
Statement of operations | |||||
Revenues | $ | 131,869 | |||
Net (loss) | $ | (330,961 | ) |
ACCRUED_LIABILITIES_Tables
ACCRUED LIABILITIES (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
ACCRUED LIABILITIES [Abstract] | ' | ||||||||
Accrued liabilities | ' | ||||||||
Accrued liabilities consisted of the following at September 30, 2013 and December 31, 2012: | |||||||||
Accrued Liabilities | 30-Sep-13 | 31-Dec-12 | |||||||
Accrued taxes – payroll | $ | 106,299 | $ | 106,299 | |||||
Accrued compensation/benefits | 192,556 | 213,005 | |||||||
Accrued insurance payable | 43,894 | 52,629 | |||||||
Product rebates/returns | 20 | 81 | |||||||
Other | 558 | 951 | |||||||
Total accrued liabilities | $ | 343,327 | $ | 372,965 |
CONVERTIBLE_DEBT_Tables
CONVERTIBLE DEBT (Tables) | 9 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||
CONVERTIBLE DEBT [Abstract] | ' | |||||||||||||||||||||||||
Information relating to convertible notes payable | ' | |||||||||||||||||||||||||
Information relating to our convertible notes payable is as follows: | ||||||||||||||||||||||||||
As of September 30, 2013 | ||||||||||||||||||||||||||
Transaction | Initial | Interest | Maturity | Conversion | Principal | Unamortized | Carrying | |||||||||||||||||||
Principal | Rate | Date | Price (1)(2) | Balance | Debt | Value | ||||||||||||||||||||
Amount | Discount | |||||||||||||||||||||||||
June 2011 Note | $ | 140,000 | 10 | % | 6/13/14 | $ | 1.2 | $ | 140,000 | $ | 2,768 | $ | 137,232 | |||||||||||||
July 2011 Note | 125,000 | 10 | % | 7/28/14 | $ | 1.08 | 125,000 | 6,144 | 118,856 | |||||||||||||||||
June 2012 Note | 2,210,000 | 8 | % | 3/27/15 | $ | 0.35 | 1,318,210 | 247,165 | 1,071,045 | |||||||||||||||||
Total | $ | 2,475,000 | $ | 1,583,210 | $ | 256,077 | $ | 1,327,133 | ||||||||||||||||||
-1 | The outstanding principal balance of the June 2011 Note and the July 2011 Note may be converted, at the option of Mr. Gray, into shares of common stock at a fixed conversion price of $1.20 per share and $1.08 per share, respectively. | |||||||||||||||||||||||||
-2 | The outstanding principal balance of the June 2012 Note may be converted, at the option of Inter-Mountain, into shares of common stock at a conversion price of $0.35 per share, subject to certain pricing adjustments and ownership limitations. | |||||||||||||||||||||||||
Schedule of future minimum payments relating to our convertible notes payable | ' | |||||||||||||||||||||||||
The future minimum principle payments relating to our convertible notes payable, as of September 30, 2013, are as follows: | ||||||||||||||||||||||||||
Payments Due By Period | ||||||||||||||||||||||||||
Transaction | Total | 2013 (Three Months) | 2014 | 2015 | 2016 | 2017 | ||||||||||||||||||||
June 2011 Note | $ | 140,000 | $ | --- | $ | 140,000 | $ | --- | $ | --- | $ | --- | ||||||||||||||
July 2011 Note | 125,000 | --- | 125,000 | --- | --- | --- | ||||||||||||||||||||
June 2012 Note | 1,318,120 | 441,538 | 876,582 | --- | --- | --- | ||||||||||||||||||||
Total | $ | 1,583,120 | $ | 441,538 | $ | 1,141,852 | $ | --- | $ | --- | $ | --- |
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
STOCKHOLDERS' EQUITY [Abstract] | ' | ||||||||
Warrants outstanding and number of shares of common stock subject to exercise | ' | ||||||||
The following table summarizes the warrants outstanding and the number of shares of common stock subject to exercise as of September 30, 2013 and the changes therein during the nine months then ended: | |||||||||
Number of Shares of Common Stock Subject to Exercise | Weighted – Average | ||||||||
Exercise Price | |||||||||
Balance as of December 31, 2012 | 2,041,165 | $ | 0.98 | ||||||
Warrants issued | 4,445,714 | $ | 0.56 | ||||||
Warrants exercised | (479,459 | ) | $ | 0.35 | |||||
Warrants cancelled | (250,000 | ) | $ | 0.35 | |||||
Balance as of September 30, 2013 (1) | 5,757,420 | $ | 0.73 | ||||||
-1 | As part of the June 2012 Note, Inter-Mountain received a total of seven warrants to purchase, if they all vest, an aggregate of 3,142,857 shares of common stock, which number of shares could increase based upon the terms and conditions of the warrants. The warrants have an exercise price of $0.35 per share, subject to certain pricing adjustments, and are exercisable, subject to vesting provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, February 26, 2013, and July 15, 2013, respectively, and warrants for 479,459 shares of common stock have been exercised. For the purposes of this Table, only such net vested shares of common stock (1,484,826 shares) have been included, based upon an exercise price of $0.35 per share of common stock. Each of the other three warrants vest upon the payment by Inter-Mountain of each of the three remaining Investor Notes. | ||||||||
Expiration dates for warrants subject to exercise | ' | ||||||||
Of the warrant shares subject to exercise as of September 30, 2013, expiration of the right to exercise is as follows: | |||||||||
Date of Expiration | Number of Warrant Shares of Common Stock Subject to Expiration | ||||||||
3-Jan-14 | 3,000,000 | ||||||||
23-Jul-14 | 69,050 | ||||||||
15-May-15 | 357,155 | ||||||||
13-Jun-16 | 35,000 | ||||||||
16-Jul-16 | 116,667 | ||||||||
28-Jul-16 | 34,722 | ||||||||
27-Jun-17 | 1,484,826 | ||||||||
14-Mar-18 | 660,000 | ||||||||
Total | 5,757,420 |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 9 Months Ended | |||
Sep. 30, 2013 | ||||
EARNINGS PER SHARE [Abstract] | ' | |||
Common shares excluded from calculating basic and diluted net loss per common share | ' | |||
Shares used in calculating basic and diluted net loss per common share exclude these potential common shares as of September 30, 2013 and December 31, 2012: | ||||
30-Sep-13 | 31-Dec-12 | |||
Warrants to purchase common stock (1) | 5,757,420 | 2,041,165 | ||
Stock options to purchase common stock | 1,014,907 | 158,409 | ||
Unvested restricted common stock | --- | 300 | ||
Common stock issuable upon the assumed conversion of our convertible note payable from June 2012 (2) | 3,766,316 | 5,617,974 | ||
Common stock issuable upon the assumed conversion of our convertible notes payable from June 2011 and July 2011 (3) | 309,818 | 368,637 | ||
Common stock issuable upon the assumed conversion of our Series A preferred stock (4)(5) | --- | 1,002,634 | ||
Total | 10,848,461 | 9,189,119 | ||
-1 | As part of the June 2012 Note, Inter-Mountain received a total of seven warrants to purchase, if they all vest, an aggregate of 3,142,857 shares of common stock, which number of shares could increase based upon the terms and conditions of the warrants. The warrants have an exercise price of $0.35 per share, subject to certain pricing adjustments, and are exercisable, subject to vesting provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, February 26, 2013, and July 15, 2013, respectively, and warrants for 479,459 shares of common stock have been exercised. For the purposes of this Table, only such net vested shares of common stock (1,484,826 shares) have been included, based upon an exercise price of $0.35 per share of common stock. Each of the other three warrants vest upon the payment by Inter-Mountain of each of the three remaining Investor Notes. | |||
-2 | The outstanding principal balance and the accrued and unpaid interest of the June 2012 Note may be converted, at the option of Inter-Mountain, into shares of common stock at a conversion price of $0.35 per share, subject to certain pricing adjustments and ownership limitations. For the purposes of this Table, we have assumed a conversion price of $0.35 per share and no ownership limitations. | |||
-3 | The outstanding principal balance of the June 2011 Note and the July 2011 Note may be converted, at the option of Mr. Gray, into shares of common stock at a fixed conversion price of $1.20 per share and $1.08 per share, respectively. The accrued and unpaid interest for each convertible note payable may be converted, at the option of Mr. Gray, into shares of common stock at a conversion price based upon the average of the five trading days prior to the payment date, which for the purposes of this Table we have assumed to be September 30, 2013. | |||
-4 | The outstanding Series A preferred stock and the accrued and unpaid dividends thereon are convertible into shares of the Company's common stock at the Company's option at any time after six-months from the date of issuance of the Series A preferred stock. The conversion price for the holder is fixed at $0.70 per share with no adjustment mechanisms, resets, ratchets, or anti-dilution covenants other than the customary adjustments for stock splits. For the purposes of this Table, we have assumed a conversion price of $0.70 per share. | |||
-5 | On August 15, 2013, we provided notice to Ironridge for the redemption of all of our Series A Shares held by Ironridge, a total of 65 Series A Shares. An affiliate of Ironridge, the issuer of promissory notes held by us, due 7.5 years from the issue date, in the principal amount of $969,000, agreed to accept the cancellation of the promissory notes held by us as full and final payment for the redemption amounts of the Series A Shares. |
SHARE_BASED_COMPENSATION_Table
SHARE BASED COMPENSATION (Tables) | 9 Months Ended | ||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||
SHARE BASED COMPENSATION [Abstract] | ' | ||||||||||||||||||
Stock option awards granted | ' | ||||||||||||||||||
Our Board granted the following incentive stock option awards to executives or employees and nonstatutory stock option awards to directors or non-employees for the three and nine months ended September 30: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 (3) | ||||||||||||||||
Incentive Stock Options (1) | |||||||||||||||||||
Quantity | --- | --- | 232,500 | --- | |||||||||||||||
Weighted average fair value per share | --- | --- | $ | 0.24 | --- | ||||||||||||||
Fair value | --- | --- | $ | 56,112 | --- | ||||||||||||||
Nonstatutory Stock Options (2) | |||||||||||||||||||
Quantity | --- | --- | 735,000 | --- | |||||||||||||||
Weighted average fair value per share | --- | --- | $ | 0.24 | --- | ||||||||||||||
Fair value | --- | --- | $ | 177,388 | --- | ||||||||||||||
-1 | The Company did not award any incentive stock options for the three months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||
-2 | The Company did not award any nonstatutory stock options for the three months ended September 30, 2013 and 2012, respectively. | ||||||||||||||||||
-3 | The Company did not award any shared-based compensation for the nine months ended September 30, 2012. | ||||||||||||||||||
Weighted average assumptions to estimate the fair value of share based awards | ' | ||||||||||||||||||
We use the Black-Scholes option-pricing model to estimate the fair value of share-based awards with the following weighted average assumptions: | |||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Incentive Stock Options | |||||||||||||||||||
Expected volatility (1) | 103.55% | --- | |||||||||||||||||
Risk-free interest rate % (2) | 0.81% | --- | |||||||||||||||||
Expected term (in years) | 5 | --- | |||||||||||||||||
Dividend yield (3) | --- | --- | |||||||||||||||||
Forfeiture rate | --- | --- | |||||||||||||||||
Nonstatutory Stock Options | |||||||||||||||||||
Expected volatility (1) | 103.55% | --- | |||||||||||||||||
Risk-free interest rate % (2) | 0.81% | --- | |||||||||||||||||
Expected term (in years) | 5 | --- | |||||||||||||||||
Dividend yield (3) | --- | --- | |||||||||||||||||
Forfeiture rate | --- | --- | |||||||||||||||||
-1 | Expected volatility assumption was based upon a combination of historical stock price volatility measured on a daily basis and an estimate of expected future stock price volatility | ||||||||||||||||||
-2 | Risk-free interest rate assumption is based upon U.S. Treasury bond interest rates appropriate for the term of the stock options. | ||||||||||||||||||
-3 | The Company does not currently intend to pay cash dividends, thus has assumed a 0% dividend yield. | ||||||||||||||||||
Allocated share-based compensation expense | ' | ||||||||||||||||||
The following table summarizes share-based compensation related to stock options for the three and nine months ended September 30: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Research and development | $ | 5,425 | $ | --- | $ | 11,438 | $ | 6,280 | |||||||||||
Selling, general and administrative | 19,662 | 6,760 | 44,414 | 25,753 | |||||||||||||||
Total share-based compensation expense | $ | 25,087 | $ | 6,760 | $ | 55,852 | $ | 32,033 | |||||||||||
The following table summarizes share-based compensation related to restricted stock awards for the three and nine months ended September 30: | |||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||
September 30, | September 30, | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||
Research and development | $ | --- | $ | ( 391 | ) | $ | 444 | $ | 2,814 | ||||||||||
Selling, general and administrative | --- | 1,143 | 547 | 3,392 | |||||||||||||||
Total share-based compensation expense | $ | --- | $ | 752 | $ | 991 | $ | 6,206 | |||||||||||
Stock option activity | ' | ||||||||||||||||||
The following table summarizes the stock options outstanding and the number of shares of common stock subject to exercise as of September 30, 2013 and the changes therein during the nine months then ended: | |||||||||||||||||||
Stock Options | Weighted Average Exercise Price per Share | ||||||||||||||||||
Outstanding as of December 31, 2012 | 158,409 | $ | 12.32 | ||||||||||||||||
Granted | 967,500 | 0.33 | |||||||||||||||||
Forfeited/cancelled | (111,002 | ) | 1.03 | ||||||||||||||||
Exercised | --- | --- | |||||||||||||||||
Outstanding as of September 30, 2013 | 1,014,907 | $ | 2.12 | ||||||||||||||||
Stock option grants outstanding and exercisable | ' | ||||||||||||||||||
The following table presents the stock option grants outstanding and exercisable as of September 30, 2013: | |||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||
Stock Options Outstanding | Weighted Average Exercise Price per Share | Weighted Average Remaining Contractual Life in Years | Stock Options Exercisable | Weighted Average Exercise Price per Share | |||||||||||||||
892,500 | $ | 0.33 | 9.5 | 197,500 | $ | 0.33 | |||||||||||||
53,334 | 2.38 | 4.7 | 46,668 | 2.36 | |||||||||||||||
30,002 | 14.4 | 3.5 | 30,002 | 14.4 | |||||||||||||||
39,071 | 33.35 | 4.1 | 39,071 | 33.35 | |||||||||||||||
1,014,907 | $ | 2.12 | 8.8 | 313,241 | $ | 6.1 | |||||||||||||
Nonvested restricted stock awards | ' | ||||||||||||||||||
The following table summarizes the non-vested restricted stock awards outstanding and the number of shares of common stock subject to potential issue as of September 30, 2013 and the changes therein during the nine months then ended: | |||||||||||||||||||
Restricted stock | Weighted Average Grant Date Fair Value | ||||||||||||||||||
Outstanding as of December 31, 2012 | 300 | $ | 34.59 | ||||||||||||||||
Shares granted | --- | --- | |||||||||||||||||
Shares forfeited/cancelled | --- | --- | |||||||||||||||||
Shares exercised/issued | (300 | ) | 34.59 | ||||||||||||||||
Outstanding as of September 30, 2013 | --- | $ | --- |
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ' | ||||||||
Fair value of financial instruments | ' | ||||||||
The following table summarizes the fair value of our financial instruments at September 30, 2013 and December 31, 2012. | |||||||||
Description | 30-Sep-13 | 31-Dec-12 | |||||||
Assets: | |||||||||
Notes receivable and accrued interest | $ | 763,654 | $ | 1,302,220 | |||||
Liabilities: | |||||||||
Convertible note – June 2011 | $ | 137,232 | $ | 134,154 | |||||
Convertible note – July 2011 | $ | 118,856 | $ | 113,084 | |||||
Convertible note – June 2012 | $ | 1,071,045 | $ | 1,593,924 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES [Abstract] | ' | ||||||||||||||||
Future minimum lease payments | ' | ||||||||||||||||
The future minimum lease payments under the 2013 office lease and the 2010 equipment lease are as follows as of September 30, 2013: | |||||||||||||||||
Calendar Years | Future Lease Expense | ||||||||||||||||
2013 (Three months) | $ | 29,811 | |||||||||||||||
2014 | 120,917 | ||||||||||||||||
2015 | 28,881 | ||||||||||||||||
2016 | --- | ||||||||||||||||
2017 | --- | ||||||||||||||||
Total | $ | 179,609 | |||||||||||||||
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred | ' | ||||||||||||||||
As of September 30, 2013, the following table summarizes the compensation temporarily deferred since 2011: | |||||||||||||||||
Name | 2013 | 2012 | 2011 | Total | |||||||||||||
Kerry P. Gray (1) | $ | (23,500 | ) | $ | 220,673 | $ | 140,313 | $ | 337,486 | ||||||||
Terrance K. Wallberg | (11,539 | ) | $ | 24,230 | $ | 36,539 | $ | 49,230 | |||||||||
Key executives | (20,000 | ) | $ | 27,253 | $ | 20,986 | $ | 28,239 | |||||||||
Total | $ | (55,039 | ) | $ | 272,156 | $ | 197,838 | $ | 414,955 | ||||||||
-1 | During 2013, Mr. Gray temporarily deferred compensation of $169,000 which consisted of $11,500 earned pursuant to a Separation Agreement and $157,500 for his duties as Chairman of the Executive Committee of the Company's Board of Directors. During 2013, Mr. Gray was also repaid $192,500 of temporarily deferred compensation, of which $180,000 was used by Mr. Gray for funding required pursuant to the March 2013 Offering. |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Licensee | ||||
Segment | ||||
SEGMENT INFORMATION [Abstract] | ' | ' | ' | ' |
Number of business segments | ' | ' | 1 | ' |
Number of international licensees | ' | ' | 5 | ' |
Revenues per geographic area [Abstract] | ' | ' | ' | ' |
Total Revenues | $110,580 | $88,922 | $241,508 | $205,138 |
Total revenue, percentage (in hundredths) | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Sales from major customer, percentage (in hundredths) | 70.00% | 48.00% | 66.00% | 39.00% |
Customer A [Member] | Altrazeal [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Sales from major customer, percentage (in hundredths) | 70.00% | 29.00% | 66.00% | 15.00% |
Customer B [Member] | Aphthasol [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Sales from major customer, percentage (in hundredths) | 0.00% | 19.00% | 0.00% | 24.00% |
Domestic [Member] | ' | ' | ' | ' |
Revenues per geographic area [Abstract] | ' | ' | ' | ' |
Total Revenues | 17,197 | 57,179 | 54,594 | 155,633 |
Total revenue, percentage (in hundredths) | 16.00% | 64.00% | 23.00% | 76.00% |
International [Member] | ' | ' | ' | ' |
Revenues per geographic area [Abstract] | ' | ' | ' | ' |
Total Revenues | $93,383 | $31,743 | $186,914 | $49,505 |
Total revenue, percentage (in hundredths) | 84.00% | 36.00% | 77.00% | 24.00% |
NOTES_RECEIVABLE_Details
NOTES RECEIVABLE (Details) (USD $) | 0 Months Ended | 9 Months Ended | 12 Months Ended | |||
Dec. 31, 2012 | Nov. 30, 2012 | Oct. 05, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | |
PromissoryNote | PromissoryNote | |||||
Information relating to convertible notes payable [Abstract] | ' | ' | ' | ' | ' | ' |
Initial principal amount | ' | ' | ' | ' | ' | $2,475,000 |
June 2012 Note [Member] | ' | ' | ' | ' | ' | ' |
Information relating to convertible notes payable [Abstract] | ' | ' | ' | ' | ' | ' |
Initial principal amount | 2,210,000 | ' | ' | ' | 2,210,000 | 2,210,000 |
Secured convertible note [Member] | June 2012 Note [Member] | ' | ' | ' | ' | ' | ' |
Information relating to convertible notes payable [Abstract] | ' | ' | ' | ' | ' | ' |
Purchase price paid in the form of promissory notes | ' | ' | ' | 1,500,000 | 1,500,000 | ' |
Number of promissory notes issued under purchase agreement | ' | ' | ' | 6 | 6 | ' |
Principal amount of promissory notes | 250,000 | ' | ' | 250,000 | 250,000 | ' |
Payment received | 50,000 | 100,000 | 100,000 | ' | ' | ' |
Notes receivable and accrued interest | ' | ' | ' | ' | ' | 763,654 |
Notes receivable | ' | ' | ' | ' | ' | 687,500 |
Accrued interest | ' | ' | ' | ' | ' | $76,154 |
INVENTORY_Details
INVENTORY (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Components of inventory [Abstract] | ' | ' |
Finished goods | $109,452 | $303,779 |
Work-in-progress | 346,163 | 190,794 |
Raw materials | 32,369 | 33,070 |
Total | $487,984 | $527,643 |
PROPERTY_EQUIPMENT_and_LEASEHO2
PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Property, equipment and leasehold improvements, net [Abstract] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, gross | $2,239,862 | ' | $2,239,862 | ' | $2,212,769 |
Less: accumulated depreciation and amortization | -1,549,144 | ' | -1,549,144 | ' | -1,367,234 |
Property, equipment and leasehold improvements, net | 690,718 | ' | 690,718 | ' | 845,535 |
Depreciation expense | 59,688 | 75,219 | 185,536 | 225,691 | ' |
Laboratory Equipment [Member] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, net [Abstract] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, gross | 424,888 | ' | 424,888 | ' | 424,888 |
Manufacturing Equipment [Member] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, net [Abstract] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, gross | 1,574,665 | ' | 1,574,665 | ' | 1,547,572 |
Computers, Office Equipment, and Furniture [Member] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, net [Abstract] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, gross | 140,360 | ' | 140,360 | ' | 140,360 |
Computer Software [Member] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, net [Abstract] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, gross | 4,108 | ' | 4,108 | ' | 4,108 |
Leasehold Improvements [Member] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, net [Abstract] | ' | ' | ' | ' | ' |
Property, equipment and leasehold improvements, gross | $95,841 | ' | $95,841 | ' | $95,841 |
INTANGIBLE_ASSETS_Details
INTANGIBLE ASSETS (Details) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets, gross | $9,625,938 | ' | $9,625,938 | ' | $9,625,938 |
Less: accumulated amortization | -5,835,338 | ' | -5,835,338 | ' | -5,479,953 |
Intangible assets, net | 3,790,600 | ' | 3,790,600 | ' | 4,145,985 |
Amortization expense | 119,763 | 119,763 | 355,385 | 356,687 | ' |
Future aggregate amortization expense for intangible assets [Abstract] | ' | ' | ' | ' | ' |
2013 (Three months) | 119,763 | ' | 119,763 | ' | ' |
2014 | 475,148 | ' | 475,148 | ' | ' |
2015 | 475,148 | ' | 475,148 | ' | ' |
2016 | 476,450 | ' | 476,450 | ' | ' |
2017 | 475,148 | ' | 475,148 | ' | ' |
2018 & Beyond | 1,768,943 | ' | 1,768,943 | ' | ' |
Total | 3,790,600 | ' | 3,790,600 | ' | ' |
Patents [Member] | Amlexanox (Aphthasol) [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets, gross | 2,090,000 | ' | 2,090,000 | ' | 2,090,000 |
Patents [Member] | Amlexanox (OraDiscA) [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets, gross | 6,873,080 | ' | 6,873,080 | ' | 6,873,080 |
Patents [Member] | OraDisc [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets, gross | 73,000 | ' | 73,000 | ' | 73,000 |
Patents [Member] | Hydrogel Nanoparticle Aggregate [Member] | ' | ' | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' |
Intangible assets, gross | $589,858 | ' | $589,858 | ' | $589,858 |
INVESTMENTS_IN_UNCONSOLIDATED_2
INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
Minimum [Member] | Maximum [Member] | Altrazeal Trading Ltd. [Member] | OraDisc [Member] | OraDisc [Member] | OraDisc [Member] | |||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of noncontrolling interest (in hundredths) | ' | ' | ' | ' | 20.00% | 50.00% | ' | ' | ' | ' |
Non-dilutable ownership interest (in hundredths) | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' | 25.00% |
Unrecorded profit (loss) | ' | ' | ' | ' | ' | ' | $82,740 | ' | ' | ' |
Balance sheet [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets | ' | ' | ' | ' | ' | ' | 415,248 | ' | ' | ' |
Total liabilities | ' | ' | ' | ' | ' | ' | 205,991 | ' | ' | ' |
Total stockholders' equity | ' | ' | ' | ' | ' | ' | 209,257 | ' | ' | ' |
Statement of operations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | 131,869 | ' | ' | ' |
Net (loss) | ' | ' | ' | ' | ' | ' | -330,961 | ' | ' | ' |
Gains losses on equity method investments | $0 | $0 | $0 | $0 | ' | ' | ' | $0 | $0 | ' |
ACCRUED_LIABILITIES_Details
ACCRUED LIABILITIES (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Accrued liabilities [Abstract] | ' | ' |
Accrued taxes - payroll | $106,299 | $106,299 |
Accrued compensation/benefits | 192,556 | 213,005 |
Accrued insurance payable | 43,894 | 52,629 |
Product rebates/returns | 20 | 81 |
Other | 558 | 951 |
Total accrued liabilities | $343,327 | $372,965 |
CONVERTIBLE_DEBT_Details
CONVERTIBLE DEBT (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 31, 2011 | Jun. 30, 2011 | Jun. 30, 2011 | Jul. 31, 2011 | Sep. 30, 2013 | Jun. 27, 2012 | Feb. 26, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Jul. 31, 2011 | Sep. 30, 2013 | Jul. 31, 2011 | ||||
Warrant - June 2011 Debt Offering [Member] | Warrant - July 2011 Debt Offering [Member] | Warrant - June 2012 Debt Offering [Member] | Warrant - June 2012 Debt Offering [Member] | Common Stock [Member] | Common Stock [Member] | June 2011 Note [Member] | July 2011 Note [Member] | June 2012 Note [Member] | June 2012 Note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | Secured convertible note [Member] | |||||||||
Warrant | June 2011 Note [Member] | June 2011 Note [Member] | June 2011 Note [Member] | July 2011 Note [Member] | July 2011 Note [Member] | July 2011 Note [Member] | June 2012 Note [Member] | June 2012 Note [Member] | June 2012 Note [Member] | June 2012 Note [Member] | July 2013 Note [Member] | July 2013 Note [Member] | |||||||||||||||||||||||
Agreement Modification 1 [Member] | Agreement Modification 2 [Member] | Agreement Modification 1 [Member] | Agreement Modification 2 [Member] | Tranche | PromissoryNote | ||||||||||||||||||||||||||||||
PromissoryNote | |||||||||||||||||||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Purchase price paid in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $500,000 | ' | ' | ' | ' | |||
Purchase price paid in the form of promissory notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,500,000 | 1,500,000 | ' | ' | ' | ' | |||
Number of promissory notes issued under purchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | 6 | ' | ' | ' | ' | |||
Principal amount of promissory notes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | 250,000 | ' | ' | ' | ' | |||
Original issue discount reflected in purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | ' | ' | ' | ' | ' | |||
Attorney's fees reflected in purchase price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000 | ' | ' | ' | ' | ' | |||
Amount of monthly installment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 83,333 | ' | ' | ' | ' | ' | |||
Number of calendar days after the date of registration to commence monthly installment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | |||
Monthly installment payment terms | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'If the monthly installment is paid in common stock, such shares being issued will be based on a price that is 80% of the average of the three lowest volume weighted average prices of the shares of common stock during the preceding twenty trading days. The percentage declines to 70% if the average of the three lowest volume weighted average prices of the shares of common stock during the preceding twenty trading days is less than $0.05. | ' | ' | ' | ' | ' | |||
Percentage of weighted average prices of shares of common stock (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | |||
Declined percentage of weighted average prices of shares of common stock (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.00% | ' | ' | ' | ' | ' | |||
Preceding number of trading days to calculate weighted average common stock price | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '20 days | ' | ' | ' | ' | ' | |||
Weighted average price of shares of common stock, Maximum (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.05 | ' | ' | ' | ' | ' | |||
Amount convertible under initial tranche | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 710,000 | ' | ' | ' | ' | ' | |||
Number of subsequent tranches | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6 | ' | ' | ' | ' | ' | |||
Amount of each subsequent tranche plus interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 250,000 | ' | ' | ' | ' | ' | |||
Percentage of outstanding principal balance prepaid in cash (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 120.00% | ' | ' | ' | ' | ' | |||
Entry amount of judgment not stayed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | |||
Period within which judgment not stayed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | ' | ' | ' | ' | ' | |||
Increased interest rate in the event of default (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18.00% | ' | ' | ' | ' | ' | |||
Conversion number of equity instruments (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 116,667 | ' | ' | 115,741 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Stock price trigger (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.16 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Annual principal payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,653 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,542 | ' | 12,501 | |||
Interest Payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,080 | 553 | ' | 1,643 | 492 | ' | ' | ' | ' | ' | ' | |||
Deferred interest payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,001 | ' | ' | 12,501 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Information relating to convertible notes payable [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Initial principal amount | 2,475,000 | 2,475,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,210,000 | 2,210,000 | ' | ' | ' | ' | ' | 140,000 | ' | ' | 125,000 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest Rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.00% | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | 10.00% | ' | ' | ' | ' | 12.00% | ' | 12.00% | ' | |||
Maturity Date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 27-Mar-15 | ' | ' | ' | ' | ' | ' | 13-Jun-14 | ' | ' | 28-Jul-14 | ' | ' | ' | ' | ' | ' | ' | ' | |||
Conversion Price (in dollars per share) | $0.70 | $0.70 | ' | $1.08 | $1.20 | ' | ' | ' | ' | ' | ' | ' | ' | $0.35 | [1],[2] | ' | ' | ' | ' | ' | ' | $1.20 | [1],[2] | ' | ' | $1.08 | [1],[2] | ' | ' | ' | ' | ' | ' | ' | ' |
Principal Balance | 1,583,210 | 1,583,210 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,000 | 125,000 | 1,318,210 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Unamortized Debt Discount | 256,077 | 256,077 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,768 | 6,144 | 247,165 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Carrying Value | 1,327,133 | 1,327,133 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 137,232 | 118,856 | 1,071,045 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Interest cost recognized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 38,032 | 52,121 | 124,677 | 67,227 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Future Minimum payments due, convertible notes [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2013 (Nine Months) | 441,538 | 441,538 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 441,538 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2014 | 1,141,852 | 1,141,852 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 140,000 | 125,000 | 876,582 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2015 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2016 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2017 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total | $1,583,120 | $1,583,120 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $140,000 | $125,000 | $1,318,120 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Class of Warrant or Right [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of warrants | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of securities called by warrants (in shares) | 4,445,714 | 4,445,714 | ' | ' | ' | 35,000 | 34,722 | 3,142,857 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Exercise price of warrants (in dollars per share) | ' | ' | $0.35 | ' | ' | $1.20 | $1.08 | $0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of warrants that vest upon payment of notes (in shares) | 3 | 3 | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Number of securities vested (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 785,714 | 392,857 | 392,857 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Shares issued on exercise of warrants | 469,094 | 469,094 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Warrants exercised (in shares) | 479,459 | 479,459 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Minimum period during which registration statement is to be declared effective after filing with SEC | ' | '90 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Maximum period during which registration statement is to be declared effective after filing with SEC | ' | '180 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | The outstanding principal balance of the June 2012 Note may be converted, at the option of Inter-Mountain, into shares of common stock at a conversion price of $0.35 per share, subject to certain pricing adjustments and ownership limitations. | ||||||||||||||||||||||||||||||||||
[2] | The outstanding principal balance of the June 2011 Note and the July 2011 Note may be converted, at the option of Mr. Gray, into shares of common stock at a fixed conversion price of $1.20 per share and $1.08 per share, respectively. |
EQUITY_TRANSACTIONS_Details
EQUITY TRANSACTIONS (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Nov. 14, 2013 | Sep. 06, 2013 | Jul. 15, 2013 | 7-May-13 | Mar. 14, 2013 | Jan. 03, 2013 | Dec. 31, 2012 | Oct. 24, 2013 | Sep. 30, 2013 | Mar. 14, 2013 | Mar. 14, 2013 | Mar. 14, 2013 | Mar. 14, 2013 | Dec. 31, 2012 | Dec. 21, 2012 | Dec. 21, 2012 | Dec. 21, 2012 |
SPA [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | Common Stock [Member] | |||
Director | Subsequent Event [Member] | March SPA [Member] | March SPA [Member] | March SPA [Member] | March SPA [Member] | March SPA [Member] | SPA [Member] | SPA [Member] | SPA [Member] | SPA [Member] | ||||||||||
Four-month anniversary [Member] | Eight-month anniversary [Member] | One-year anniversary [Member] | Four-month anniversary [Member] | Eight-month anniversary [Member] | ||||||||||||||||
Common Stock Transactions [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity investment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $440,000 | ' | ' | ' | ' | $2,000,000 | ' | ' | ' |
Common Stock, par value (in dollars per share) | ' | $0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.00 | ' | ' | ' | ' | $0.00 | ' | ' | ' |
Share price (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.60 | ' | ' | ' | ' | $0.60 | ' | ' |
Issuance of shares of common stock under securities purchase agreement (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | ' | 5,000,000 | ' | ' | ' |
Promissory notes issued for common stock | ' | ' | ' | ' | ' | ' | ' | 88,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of securities called by warrants (in shares) | 4,445,714 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 660,000 | ' | ' | ' | ' | 3,000,000 | ' | ' | ' |
Maximum amount of common stock purchased under common stock purchase agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | 88,000 | 110,000 | 132,000 | 110,000 | ' | 400,000 | 500,000 | 600,000 |
Proceeds from offering | ' | ' | ' | $132,000 | $300,000 | $110,000 | $500,000 | $88,000 | $400,000 | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares purchased under stock purchased agreement | ' | ' | ' | 330,000 | 750,000 | 275,000 | 1,250,000 | 220,000 | 1,000,000 | ' | 750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of maximum directors that could be appointed | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) (USD $) | 3 Months Ended | 7 Months Ended | 9 Months Ended | 7 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | Aug. 15, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Feb. 26, 2013 | Dec. 31, 2012 | Jun. 27, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Aug. 15, 2013 | |||
Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Kerry P. Gray [Member] | Terrace K. Wallberg [Member] | Inter-Mountain [Member] | Warrant - June 2012 Debt Offering [Member] | January 3, 2014 [Member] | July 23, 2014 [Member] | May 15, 2015 [Member] | June 13, 2016 [Member] | July 16, 2016 [Member] | July 28, 2016 [Member] | June 27, 2017 [Member] | March 14, 2018 [Member] | Series A Preferred Stock [Member] | ||||||||
Common Stock [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Common Stock, shares issued (in shares) | 16,693,883 | ' | 16,693,883 | 10,074,448 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Common Stock, shares outstanding (in shares) | 16,693,883 | ' | 16,693,883 | 10,074,448 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Common stock issued during period (in shares) | 2,239,334 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock Issued During Period, Shares, Issued for Consulting Services | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Stock issued in lieu of offering agreement (in shares) | 275,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of shares of common stock issued for IPMD pursuant (in shares) | 750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number shares of common stock issued for installment payments (in shares) | 592,133 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Shares issued on exercise of warrants | 469,094 | ' | 469,094 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Preferred Stock [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Preferred stock, shares issued (in shares) | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Preferred stock, shares outstanding (in shares) | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Preference shares redeemed by offset of promissory note receivable (in shares) | ' | -65 | -65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -65 | ||
Promissory note offset on preference share redemption | ' | ($969,000) | ($969,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ($969,000) | ||
Promissory note term | ' | '7 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years 6 months | ||
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Balance (in shares) | ' | 2,041,165 | 2,041,165 | ' | ' | 1,484,826 | 392,857 | 392,857 | 785,714 | ' | ' | ' | ' | 3,000,000 | 69,050 | 357,155 | 35,000 | 116,667 | 34,722 | 1,484,826 | 660,000 | ' | ||
Warrants issued (in shares) | ' | ' | 4,445,714 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrants exercised (in shares) | -479,459 | ' | -479,459 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrants cancelled (in shares) | ' | ' | -250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Balance (in shares) | 5,757,420 | [1] | ' | 5,757,420 | [1] | ' | ' | 1,484,826 | 392,857 | 392,857 | 785,714 | ' | ' | ' | ' | 3,000,000 | 69,050 | 357,155 | 35,000 | 116,667 | 34,722 | 1,484,826 | 660,000 | ' |
Warrants, Weighted-Average Exercise Price [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Balance (in dollars per share) | ' | $0.98 | $0.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrants issued (in dollars per share) | ' | ' | $0.56 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrants exercised (in dollars per share) | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Warrants cancelled (in dollars per share) | ' | ' | $0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Balance (in dollars per share) | $0.73 | [1] | ' | $0.73 | [1] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Warrant shares subject to expiration [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of Warrant Shares of Common Stock Subject to Expiration (in shares) | 5,757,420 | [1] | ' | 5,757,420 | [1] | ' | ' | 1,484,826 | 392,857 | 392,857 | 785,714 | ' | ' | ' | ' | 3,000,000 | 69,050 | 357,155 | 35,000 | 116,667 | 34,722 | 1,484,826 | 660,000 | ' |
Number of warrants to purchase common stock (in shares) | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Aggregate shares of common stock issued upon exercise of warrants (in shares) | 4,445,714 | ' | 4,445,714 | ' | ' | ' | ' | ' | ' | 600,000 | 60,000 | 785,714 | 3,142,857 | 3,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Common stock vested upon initial warrant (in shares) | 5,757,420 | [1] | ' | 5,757,420 | [1] | ' | ' | 1,484,826 | 392,857 | 392,857 | 785,714 | ' | ' | ' | ' | 3,000,000 | 69,050 | 357,155 | 35,000 | 116,667 | 34,722 | 1,484,826 | 660,000 | ' |
Exercise price of warrants (in dollars per share) | ' | ' | ' | ' | $0.35 | ' | ' | ' | ' | $0.60 | $0.60 | $0.35 | $0.35 | $0.60 | ' | ' | ' | ' | ' | ' | ' | ' | ||
Number of warrants that vest upon payment of notes (in shares) | 3 | ' | 3 | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
[1] | As part of the June 2012 Note, Inter-Mountain received a total of seven warrants to purchase, if they all vest, an aggregate of 3,142,857 shares of common stock, which number of shares could increase based upon the terms and conditions of the warrants. The warrants have an exercise price of $0.35 per share, subject to certain pricing adjustments, and are exercisable, subject to vesting provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, February 26, 2013, and July 15, 2013, respectively, and warrants for 479,459 shares of common stock have been exercised. For the purposes of this Table, only such net vested shares of common stock (1,484,826 shares) have been included, based upon an exercise price of $0.35 per share of common stock. Each of the other three warrants vest upon the payment by Inter-Mountain of each of the three remaining Investor Notes. provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, and February 26, 2013, respectively, and only such shares of common stock (1,571,428 shares) have been included in this Table, based upon an exercise price of $0.35 per share of common stock. Each of the other four warrants vest upon the payment by Inter-Mountain of each of the four remaining Investor Notes. |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 7 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | Aug. 15, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jul. 31, 2011 | Jun. 30, 2011 | Sep. 30, 2013 | Feb. 26, 2013 | Dec. 31, 2012 | Jun. 27, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Jul. 15, 2013 | Jun. 27, 2013 | Feb. 26, 2013 | Sep. 30, 2013 | Jun. 27, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | |||||||||||
Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | Warrants to purchase common stock [Member] | Warrants to purchase common stock [Member] | Warrants to purchase common stock [Member] | Warrants to purchase common stock [Member] | Warrants to purchase common stock [Member] | Warrants to purchase common stock [Member] | Warrants to purchase common stock [Member] | Stock options to purchase common stock [Member] | Stock options to purchase common stock [Member] | Unvested restricted common stock [Member] | Unvested restricted common stock [Member] | Common stock issuable upon the assumed conversion of our convertible note payable from June 2012 [Member] | Common stock issuable upon the assumed conversion of our convertible note payable from June 2012 [Member] | Common stock issuable upon the assumed conversion of our convertible note payable from June 2012 [Member] | Common stock issuable upon the assumed conversion of our convertible notes payable from June 2011 and July 2011 [Member] | Common stock issuable upon the assumed conversion of our convertible notes payable from June 2011 and July 2011 [Member] | Common stock issuable upon the assumed conversion of our Series A preferred stock [Member] | Common stock issuable upon the assumed conversion of our Series A preferred stock [Member] | ||||||||||||||||||
Private Placement [Member] | Private Placement [Member] | Private Placement [Member] | |||||||||||||||||||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Antidilutive securities excluded from calculating basic and diluted net loss per common share (in shares) | ' | ' | 10,848,461 | 9,189,119 | ' | ' | ' | ' | ' | ' | ' | 5,757,420 | [1] | 2,041,165 | [1] | ' | ' | ' | ' | ' | 1,014,907 | 158,409 | 0 | 300 | 3,766,316 | [2] | 5,617,974 | [2] | ' | 309,818 | [3] | 368,637 | [3] | 0 | [4] | 1,002,634 | [4] | ||
Number of warrants to purchase common stock (in shares) | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Number of warrants that vest upon payment of notes | 3 | ' | 3 | ' | 3 | ' | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Aggregate shares of common stock issued upon exercise of warrants (in shares) | 4,445,714 | ' | 4,445,714 | ' | ' | ' | ' | ' | ' | ' | ' | 3,142,857 | ' | ' | ' | ' | 785,714 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Common stock vested upon initial warrant (in shares) | 5,757,420 | [1] | ' | 5,757,420 | [1] | 2,041,165 | ' | ' | ' | 1,484,826 | 392,857 | 392,857 | 785,714 | ' | 392,857 | 392,857 | 785,714 | 392,857 | ' | 1,484,826 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Exercise price of warrants (in dollars per share) | ' | ' | ' | ' | $0.35 | ' | ' | ' | ' | ' | ' | $0.35 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Warrants exercised (in shares) | 479,459 | ' | 479,459 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -479,459 | ' | ' | ' | ' | ||||||||||
Average number of trading days prior to the payment of note taken to calculate the conversion price | ' | ' | '5 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Conversion price (in dollars per share) | $0.70 | ' | $0.70 | ' | ' | $1.08 | $1.20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Number of months from date of issuance of Series A preferred stock taken for conversion of accrued dividends | ' | ' | '6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Preference shares redeemed by offset of promissory note receivable (in shares) | ' | -65 | -65 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Promissory note offset on preference share redemption | ' | ($969,000) | ($969,000) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
Promissory note term | ' | '7 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||||
[1] | As part of the June 2012 Note, Inter-Mountain received a total of seven warrants to purchase, if they all vest, an aggregate of 3,142,857 shares of common stock, which number of shares could increase based upon the terms and conditions of the warrants. The warrants have an exercise price of $0.35 per share, subject to certain pricing adjustments, and are exercisable, subject to vesting provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, February 26, 2013, and July 15, 2013, respectively, and warrants for 479,459 shares of common stock have been exercised. For the purposes of this Table, only such net vested shares of common stock (1,484,826 shares) have been included, based upon an exercise price of $0.35 per share of common stock. Each of the other three warrants vest upon the payment by Inter-Mountain of each of the three remaining Investor Notes. provisions and ownership limitations, until June 27, 2017. Warrants for 785,714, 392,857, and 392,857 shares of common stock vested on June 27, 2012, December 31, 2012, and February 26, 2013, respectively, and only such shares of common stock (1,571,428 shares) have been included in this Table, based upon an exercise price of $0.35 per share of common stock. Each of the other four warrants vest upon the payment by Inter-Mountain of each of the four remaining Investor Notes. | ||||||||||||||||||||||||||||||||||||||
[2] | The outstanding principal balance and the accrued and unpaid interest of the June 2012 Note may be converted, at the option of Inter-Mountain, into shares of common stock at a conversion price of $0.35 per share, subject to certain pricing adjustments and ownership limitations. For the purposes of this Table, we have assumed a conversion price of $0.35 per share and no ownership limitations. | ||||||||||||||||||||||||||||||||||||||
[3] | The outstanding principal balance of the June 2011 Note and the July 2011 Note may be converted, at the option of Mr. Gray, into shares of common stock at a fixed conversion price of $1.20 per share and $1.08 per share, respectively. The accrued and unpaid interest for each convertible note payable may be converted, at the option of Mr. Gray, into shares of common stock at a conversion price based upon the average of the five trading days prior to the payment date, which for the purposes of this Table we have assumed to be June 30, 2013. | ||||||||||||||||||||||||||||||||||||||
[4] | The outstanding Series A preferred stock and the accrued and unpaid dividends thereon are convertible into shares of the Company's common stock at the Company's option at any time after six-months from the date of issuance of the Series A preferred stock. The conversion price for the holder is fixed at $0.70 per share with no adjustment mechanisms, resets, ratchets, or anti-dilution covenants other than the customary adjustments for stock splits. For the purposes of this Table, we have assumed a conversion price of $0.70 per share. |
SHARE_BASED_COMPENSATION_Detai
SHARE BASED COMPENSATION (Details) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||||||||||||||
Jun. 13, 2013 | Jun. 14, 2012 | Jun. 15, 2010 | Dec. 17, 2009 | 8-May-07 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2006 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | |||||||||
Incentive Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | Incentive Stock Options [Member] | Nonstatutory Stock Options [Member] | Nonstatutory Stock Options [Member] | Nonstatutory Stock Options [Member] | Nonstatutory Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | 2006 Equity Incentive Plan [Member] | 2006 Equity Incentive Plan [Member] | 2006 Equity Incentive Plan [Member] | 2006 Equity Incentive Plan [Member] | 2006 Equity Incentive Plan [Member] | 2006 Equity Incentive Plan [Member] | 2006 Equity Incentive Plan [Member] | 2006 Equity Incentive Plan [Member] | |||||||||||||||
Minimum [Member] | Maximum [Member] | Stock Options [Member] | Stock Options [Member] | Stock Options [Member] | Restricted Stock [Member] | Restricted Stock [Member] | Restricted Stock [Member] | |||||||||||||||||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | |||||||||||||||||||||||||||||||
Options Granted [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Quantity (in shares) | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | [1] | 232,500 | [1] | 0 | [1],[2] | 0 | [3] | 0 | [3] | 735,000 | [3] | 0 | [2],[3] | 967,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fair value per share (in dollars per share) | ' | ' | ' | ' | ' | ' | $0 | [1] | $0 | [1] | $0.24 | [1] | $0 | [1],[2] | $0 | [3] | $0 | [3] | $0.24 | [3] | $0 | [2],[3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value | ' | ' | ' | ' | ' | ' | $0 | [1] | $0 | [1] | $56,112 | [1] | $0 | [1],[2] | $0 | [3] | $0 | [3] | $177,388 | [3] | $0 | [2],[3] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average assumptions to estimate the fair value of share-based awards [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Expected volatility (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 103.55% | [4] | 0.00% | [4] | ' | ' | 103.55% | [4] | 0.00% | [4] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Risk-fee interest rate % (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 0.81% | [5] | 0.00% | [5] | ' | ' | 0.81% | [5] | 0.00% | [5] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Expected term (in years) | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Dividend yield (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | [6] | 0.00% | [6] | ' | ' | 0.00% | [6] | 0.00% | [6] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||
Forfeiture rate (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | 0.00% | 0.00% | ' | ' | 0.00% | 0.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, beginning of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 158,409 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Granted (in shares) | ' | ' | ' | ' | ' | ' | 0 | [1] | 0 | [1] | 232,500 | [1] | 0 | [1],[2] | 0 | [3] | 0 | [3] | 735,000 | [3] | 0 | [2],[3] | 967,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited/cancelled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -111,002 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Exercised (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, end of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,014,907 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, beginning of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $12.32 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0.33 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Forfeited/cancelled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.03 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Exercised (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, end of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2.12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Nonvested restricted stock awards, Number of Shares [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, beginning of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Granted (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Forfeited/cancelled (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Exercised/issued (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -300 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, end of period (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Nonvested restricted stock awards, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, beginning of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34.59 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Granted (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Forfeited/cancelled (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Exercised/issued (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $34.59 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Outstanding, end of period (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Additional disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '5 years | ' | ' | ' | '1 year | '4 years | ' | '6 months | '5 years | ||||||||
Number of shares authorized (in shares) | ' | ' | ' | ' | ' | 1,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 133,333 | ' | ' | ' | ' | ' | ' | ||||||||
Number of additional shares authorized (in shares) | 600,000 | 400,000 | 200,000 | 200,000 | 266,667 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Contractual term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Number of options granted to date (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,376,167 | ' | ' | ' | ' | ' | ||||||||
Number of restricted shares granted to date (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 68,616 | ' | ' | ||||||||
Number of shares available for grant (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 715,647 | ' | ' | ' | ' | ' | ' | ' | ||||||||
Nonvested Awards, unearned share-based compensation [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Unearned share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $177,530 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Unearned share-based compensation, recognition period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '30 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
[1] | (1) The Company did not award any incentive stock options for the three months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||
[2] | (3) The Company did not award any shared-based compensation for the nine months ended September 30, 2012. | |||||||||||||||||||||||||||||||||
[3] | (2) The Company did not award any nonstatutory stock options for the three months ended September 30, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||
[4] | Expected volatility assumption was based upon a combination of historical stock price volatility measured on a daily basis and an estimate of expected future stock price volatility | |||||||||||||||||||||||||||||||||
[5] | Risk-free interest rate assumption is based upon U.S. Treasury bond interest rates appropriate for the term of the stock options. | |||||||||||||||||||||||||||||||||
[6] | The Company does not currently intend to pay cash dividends, thus has assumed a 0% dividend yield. |
SHARE_BASED_COMPENSATION_Alloc
SHARE BASED COMPENSATION, Allocated Compensation expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $25,087 | $6,760 | $55,852 | $32,033 |
Stock Options [Member] | Research and Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 5,425 | 0 | 11,438 | 6,280 |
Stock Options [Member] | Selling, General and Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 19,662 | 6,760 | 44,414 | 25,753 |
Restricted Stock [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 0 | 752 | 991 | 6,206 |
Restricted Stock [Member] | Research and Development [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | 0 | -391 | 444 | 2,814 |
Restricted Stock [Member] | Selling, General and Administrative [Member] | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' | ' |
Share-based compensation expense | $0 | $1,143 | $547 | $3,392 |
SHARE_BASED_COMPENSATION_Stock
SHARE BASED COMPENSATION, Stock options grant outstanding and exercisable (Details) (USD $) | 9 Months Ended |
Sep. 30, 2013 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Stock Options Outstanding (in shares) | 1,014,907 |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $2.12 |
Options Outstanding, Weighted Average Remaining Contractual Life in Years | '8 years 9 months 18 days |
Stock Options Exercisable (in shares) | 313,241 |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $6.10 |
Exercise Price Range 1 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Stock Options Outstanding (in shares) | 892,500 |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $0.33 |
Options Outstanding, Weighted Average Remaining Contractual Life in Years | '9 years 6 months |
Stock Options Exercisable (in shares) | 197,500 |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $0.33 |
Exercise Price Range 2 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Stock Options Outstanding (in shares) | 53,334 |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $2.38 |
Options Outstanding, Weighted Average Remaining Contractual Life in Years | '4 years 8 months 12 days |
Stock Options Exercisable (in shares) | 46,668 |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $2.36 |
Exercise Price Range 3 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Stock Options Outstanding (in shares) | 30,002 |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $14.40 |
Options Outstanding, Weighted Average Remaining Contractual Life in Years | '3 years 6 months |
Stock Options Exercisable (in shares) | 30,002 |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $14.40 |
Exercise Price Range 4 [Member] | ' |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ' |
Stock Options Outstanding (in shares) | 39,071 |
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $33.35 |
Options Outstanding, Weighted Average Remaining Contractual Life in Years | '4 years 1 month 6 days |
Stock Options Exercisable (in shares) | 39,071 |
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $33.35 |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
Assets [Abstract] | ' | ' |
Notes receivable and accrued interest | $763,654 | $1,302,220 |
Convertible note - June 2011 [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Convertible note payable | 137,232 | 134,154 |
Convertible note - July 2011 [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Convertible note payable | 118,856 | 113,084 |
Convertible note - June 2012 [Member] | ' | ' |
Liabilities [Abstract] | ' | ' |
Convertible note payable | $1,071,045 | $1,593,924 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 3 Months Ended | 6 Months Ended | 9 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | 6 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | 23 Months Ended | 84 Months Ended | 9 Months Ended | ||||||||||||||||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 07, 2008 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Mar. 09, 2009 | Mar. 31, 2013 | Sep. 30, 2013 | Feb. 22, 2013 | Mar. 31, 2013 | Sep. 30, 2013 | ||||
Access Pharmaceuticals [Member] | Access Pharmaceuticals [Member] | Access Pharmaceuticals [Member] | Access Pharmaceuticals [Member] | Access Pharmaceuticals [Member] | ProStrakan Ltd [Member] | Kerry P. Gray [Member] | Kerry P. Gray [Member] | Kerry P. Gray [Member] | Kerry P. Gray [Member] | Terrance K. Wallberg [Member] | Terrance K. Wallberg [Member] | Terrance K. Wallberg [Member] | Key Executives [Member] | Key Executives [Member] | Key Executives [Member] | Altrazeal Trading Ltd. [Member] | Altrazeal Trading Ltd. [Member] | Altrazeal Trading Ltd. [Member] | Altrazeal Trading Ltd. [Member] | Altrazeal Trading Ltd. [Member] | Altrazeal Trading Ltd. [Member] | Altrazeal Trading Ltd. [Member] | Chairman, CEO and President [Member] | Chairman, CEO and President [Member] | Office and Laboratory Space [Member] | Office and Laboratory Space [Member] | Office and Laboratory Space [Member] | Office and Laboratory Space [Member] | Office Equipment [Member] | ||||||||||
Annual Sales, Certain Products [Member] | Annual Sales, Certain Products [Member] | Annual Sales, Any One Certain Product [Member] | Cumulative Sales, Certain Products [Member] | Cumulative Sales, Certain Products [Member] | Sales Revenue, Goods, Net [Member] | Sales Revenue, Goods, Net [Member] | Accounts Receivable [Member] | Accounts Receivable [Member] | |||||||||||||||||||||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||||||||||||||
Operating Leased Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Minimum monthly lease obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $9,128 | ' | $9,776 | $9,330 | $744 | |||
Future minimum monthly lease obligation after specified period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9,314 | ' | ' | ' | |||
Minimum monthly lease obligation on exercise of option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,751 | ' | ' | ' | |||
Lease term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' | ' | |||
Amended lease term on exercise of option | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | ' | ' | ' | |||
Increase in minimum monthly lease obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 186 | ' | ' | ' | |||
Future minimum lease payments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2013 (Three months) | 29,811 | ' | ' | 29,811 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2014 | 120,917 | ' | ' | 120,917 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2015 | 28,881 | ' | ' | 28,881 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2016 | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
2017 | 0 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total | 179,609 | ' | ' | 179,609 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Rent expense for operating lease | 31,083 | 32,971 | ' | 86,125 | 98,111 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Employment Agreements [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Term of employment | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Renewal term | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Separation Agreements [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Total separation benefit payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' | ' | |||
Period for separation benefit payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '48 months | '12 months | ' | ' | ' | ' | ' | |||
Monthly separation benefits payments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,500 | ' | ' | ' | ' | ' | ' | |||
Period for separation health coverage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '24 months | ' | ' | ' | ' | ' | |||
Related Party Obligations [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Related party sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 143,000 | 22,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Outstanding accounts receivable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 82,000 | ' | 101,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Concentration risk, percentage (in hundredths) | 70.00% | 48.00% | ' | 66.00% | 39.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 59.00% | 11.00% | 35.00% | 77.00% | ' | ' | ' | ' | ' | ' | ' | |||
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Deferred compensation liability | ' | ' | 197,838 | -55,039 | 272,156 | ' | ' | ' | ' | ' | ' | ' | 140,313 | [1] | -23,500 | [1] | 220,673 | [1] | ' | 36,539 | -11,539 | 24,230 | 20,986 | -20,000 | 27,253 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred compensation | 414,955 | ' | ' | 414,955 | ' | 469,994 | ' | ' | ' | ' | ' | ' | ' | 337,486 | [1] | ' | 169,000 | ' | 49,230 | ' | ' | 28,239 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Deferred compensation liability pursuant to separation agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Deferred compensation liability pursuant to duties as chairman | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 157,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Repayment of temporarily deferred compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 192,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Proceeds from issuance of common stock under March 2013 offering | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 180,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Compensation accounts payable | 275,000 | ' | ' | 275,000 | ' | 310,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Compensation accrued liabilities | 139,955 | ' | ' | 139,955 | ' | 159,994 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Milestone payments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Future milestone obligations | 4,750,000 | ' | ' | 4,750,000 | ' | ' | ' | ' | ' | ' | ' | 1,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Milestone for payment | ' | ' | ' | ' | ' | ' | $20,000,000 | $40,000,000 | $20,000,000 | $50,000,000 | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Royalty percentage (in hundredths) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
[1] | During 2013, Mr. Gray temporarily deferred compensation of $169,000 which consisted of $11,500 earned pursuant to a Separation Agreement and $157,500 for his duties as Chairman of the Executive Committee of the Companybs Board of Directors. During 2013, Mr. Gray was also repaid $192,500 of temporarily deferred compensation, of which $180,000 was used by Mr. Gray for funding required pursuant to the March 2013 Offering. |
LEGAL_PROCEEDINGS_Details
LEGAL PROCEEDINGS (Details) | 9 Months Ended |
Sep. 30, 2013 | |
LEGAL PROCEEDINGS [Abstract] | ' |
Percentage of voting securities (in hundredths) | 5.00% |