ULURU 10-Q 16 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 16, 2016
Entity Information [Line Items]
Entity Registrant Name	ULURU Inc.
Entity Central Index Key	1,168,220
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
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Common Stock [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		62,974,431
Series A Preferred Stock [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		0

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current Assets
Cash and cash equivalents	$ 1,202,691	$ 180,000
Accounts receivable, net	91,921	89,378
Accounts receivable - related party, net	0	2,805
Inventory	537,364	531,421
Prepaid expenses and deferred charges	107,110	123,201
Total Current Assets	1,939,086	926,805
Property, Equipment and Leasehold Improvements, net	224,252	257,417
Other Assets
Intangible asset - patents, net	2,602,078	2,720,541
Intangible asset - licensing rights, net	3,426,062	3,506,235
Investment in unconsolidated subsidiary	0	0
Deposits	18,069	18,069
Total Other Assets	6,046,209	6,244,845
TOTAL ASSETS	8,209,547	7,429,067
Current Liabilities
Accounts payable	1,924,145	1,780,197
Accrued liabilities	423,628	402,214
Promissory notes payable, net of unamortized debt discount and debt issuance costs, current portion	182,441	315,058
Deferred revenue, current portion	29,202	42,934
Total Current Liabilities	2,559,416	2,540,403
Long Term Liabilities
Deferred revenue, net of current portion	597,743	685,287
Total Long Term Liabilities	597,743	685,287
TOTAL LIABILITIES	$ 3,157,159	$ 3,225,690
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock - $0.001 par value; 20,000 shares authorized; Preferred Stock Series A, 1,000 shares designated; no shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	$ 0	$ 0
Common Stock - $0.001 par value; 200,000,000 shares authorized; 62,974,431 and 36,834,933 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively	62,975	36,835
Additional paid-in capital	62,257,129	60,426,915
Subscription receivable	(361,000)	0
Accumulated (deficit)	(56,906,716)	(56,260,373)
TOTAL STOCKHOLDERS' EQUITY	5,052,388	4,203,377
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 8,209,547	$ 7,429,067

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
STOCKHOLDERS' EQUITY
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000	20,000
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	62,974,431	36,834,933
Common stock, shares outstanding (in shares)	62,974,431	36,834,933
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	0
Preferred stock, shares outstanding (in shares)	0	0

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
License fees	$ 101,276	$ 14,539
Royalty income	0	0
Product sales, net	7,516	280,109
Total Revenues	108,792	294,648
Costs and Expenses
Cost of goods sold	924	101,530
Research and development	136,159	204,159
Selling, general and administrative	318,801	446,157
Amortization of intangible assets	198,636	117,161
Depreciation	33,165	58,309
Total Costs and Expenses	687,685	927,316
Operating (Loss)	(578,893)	(632,668)
Other Income (Expense)
Interest and miscellaneous income	22	142
Interest expense	(46,758)	(12,969)
Equity in earnings (loss) of unconsolidated subsidiary	0	0
Foreign currency transaction gain (loss)	4,286	(92,778)
Accommodation fee due on promissory note	(25,000)	0
(Loss) Before Income Taxes	(646,343)	(738,273)
Income taxes	0	0
Net (Loss)	$ (646,343)	$ (738,273)
Basic and diluted net (loss) per common share (in dollars per share)	$ (0.02)	$ (0.03)
Weighted average number of common shares outstanding (in shares)	37,658,932	24,458,018

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
OPERATING ACTIVITIES :
Net loss	$ (646,343)	$ (738,273)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of intangible assets	198,636	117,161
Depreciation	33,165	58,309
Share-based compensation for stock and options issued to employees	11,854	12,928
Share-based compensation for options issued to non-employees	16,013	62,420
Equity in earnings (loss) of unconsolidated subsidiary	0	0
Amortization of debt discount on promissory note	13,015	0
Amortization of deferred financing costs	9,368	0
Common stock issued for services	36,000	0
Common stock issued for interest due on promissory note	2,239	0
Accommodation fee due on promissory note	25,000	0
Change in operating assets and liabilities:
Accounts receivable	262	(180,100)
Inventory	(5,943)	(40,147)
Prepaid expenses and deferred charges	16,091	59,235
Accounts payable	143,948	126,157
Accrued liabilities	21,414	(13,740)
Deferred revenue	(101,276)	(14,539)
Total	419,786	187,684
Net Cash Used in Operating Activities	(226,557)	(550,589)
INVESTING ACTIVITIES :
Net Cash Used in Investing Activities	0	0
FINANCING ACTIVITIES :
Proceeds from sale of common stock and warrants, net	1,398,426	0
Offering costs associated with acquisition of licensing rights in 2015	(14,178)	0
Offering cost adjustment - preferred stock sale in 2011	0	10,509
Repayment of principle due on promissory note	(135,000)	0
Net Cash Provided by Financing Activities	1,249,248	10,509
Net Increase (Decrease) in Cash	1,022,691	(540,080)
Cash, beginning of period	180,000	550,458
Cash, end of period	1,202,691	10,378
SUPPLEMENTAL CASH FLOW DISCLOSURE:
Cash paid for interest	7,577	852
Non-cash investing and financing activities:
Issuance of common stock for principle due on promissory note	$ 45,000	$ 0

COMPANY OVERVIEW AND BASIS OF P

COMPANY OVERVIEW AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2016
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 specialty pharmaceutical company committed to developing and commercializing a range of innovative wound care and muco-adhesive film products based on our patented Nanoflex® and OraDisc TM 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 March 31, 2016 and the results of its operations for the three months ended March 31, 2016 and 2015 and cash flows for the three months ended March 31, 2016 and 2015 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 months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015, as filed with the Securities and Exchange Commission on March 30, 2016, including the risk factors set forth therein. Liquidity and Going Concern The report of our independent registered public accounting firm for the fiscal year ended December 31, 2015, contained an explanatory paragraph to reflect its significant doubt about our ability to continue as a going concern as a result of our history of losses and our liquidity position, as discussed herein and in this Form 10-Q. Based on our liquidity as of March 31, 2016, the expected level of operating expenses, and the projected sales of our existing products combined with other revenues, we believe that we will be able to meet our working capital and capital expenditure requirements through the third quarter of 2016. However, we cannot be sure that our anticipated revenue growth will be realized or that we will generate significant positive cash flow from operations. Moreover, we may not be able to raise sufficient additional capital on acceptable terms, or at all, to continue operations beyond the third quarter of 2016. Therefore, we are unable to assert that our financial position is sufficient to fund operations beyond the third quarter of 2016, and as a result, there is substantial doubt about our ability to continue as a going concern beyond the third quarter of 2016. In order to continue to advance our business plan and outstanding obligations after the third quarter of 2016, we need to raise additional capital.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
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 months ended March 31, 2016 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, 2015, as filed with the Securities and Exchange Commission on March 30, 2016.

THE EFFECT OF RECENTLY ISSUED A

THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS	3 Months Ended
	Mar. 31, 2016
THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS [Abstract]
THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS	NOTE 3. THE EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS There were no new accounting pronouncements adopted or enacted during the periods presented that had, or are expected to have, a material impact on our financial statements.

SEGMENT INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2016
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, and royalties 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 product revenues are currently derived primarily from the sale of Altrazeal® in sixteen international markets and from our sales activities in the United States. Revenues per geographic area for the three months ended March 31 are summarized as follows: Revenues 2016 % 2015 % Domestic $ 7,516 7% $ 6,802 2% International 101,276 93% 287,846 98% Total $ 108,792 100% $ 294,648 100% A significant portion of our revenues are derived from a few major customers. Customers with greater than 10% of total revenues for the three months ended March 31 are represented on the following table: Customers Product 2016 2015 Customer A Altrazeal® 87% 1% Customer B Altrazeal® --- 93% Total 87% 94%

INVENTORY

INVENTORY	3 Months Ended
	Mar. 31, 2016
INVENTORY [Abstract]
INVENTORY	NOTE 5. INVENTORY As of March 31, 2016, 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 March 31, 2016 and December 31, 2015: Inventory March 31, 2016 December 31, 2015 Raw materials $ 38,439 $ 38,037 Work-in-progress 444,358 485,123 Finished goods 54,567 8,261 Total $ 537,364 $ 531,421

PROPERTY, EQUIPMENT and LEASEHO

PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS	3 Months Ended
	Mar. 31, 2016
PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS [Abstract]
PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS	NOTE 6. PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS Property, equipment and leasehold improvements, net, consisted of the following at March 31, 2016 and December 31, 2015: Property, equipment and leasehold improvements March 31, 2016 December 31, 2015 Laboratory equipment $ 424,888 $ 424,888 Manufacturing equipment 1,604,894 1,604,894 Computers, office equipment, and furniture 153,865 153,865 Computer software 4,108 4,108 Leasehold improvements 95,841 95,841 2,283,596 2,283,596 Less: accumulated depreciation and amortization (2,059,344) (2,026,179) Property, equipment and leasehold improvements, net $ 224,252 $ 257,417 Depreciation expense on property, equipment and leasehold improvements was $33,165 and $58,309 for the three months ended March 31, 2016 and 2015, respectively.

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2016
INTANGIBLE ASSETS [Abstract]
INTANGIBLE ASSETS	NOTE 7. INTANGIBLE ASSETS Patents Intangible patent assets are comprised of patents acquired in October, 2005. Intangible assets, net consisted of the following at March 31, 2016 and December 31, 2015: Intangible assets – patents March 31, 2016 December 31, 2015 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 ( 7,023,860) (6,905,397) Intangible assets - patents, net $ 2,602,078 $ 2,720,541 Amortization expense for intangible patents assets was $118,463 and $117,161 for the three months ended March 31, 2016 and 2015, respectively. The future aggregate amortization expense for intangible patent assets, remaining as of March 31, 2016, is as follows: Calendar Years Future Amortization Expense 2016 (Nine months) $ 357,987 2017 475,148 2018 475,148 2019 475,148 2020 476,450 2021 & Beyond 342,197 Total $ 2,602,078 Licensing rights On December 24, 2015, we entered into and closed the transaction contemplated by a License Purchase and Termination Agreement (the “Altrazeal Termination Agreement”) with Altrazeal Trading GmbH (“Altrazeal Trading”) and IPMD GmbH (“IPMD”). The Altrazeal Termination Agreement relates to the License and Supply Agreement dated January 11, 2012 (the “Altrazeal License”), under which Altrazeal Trading and its affiliates were authorized by the Company to distribute our Altrazeal® wound care product in the European Union, Australia, New Zealand, Middle East (excluding Jordan and Syria), North Africa, Albania, Bosnia, Croatia, Kosovo, Macedonia, Montenegro, and Serbia. Under the Altrazeal Termination Agreement, the Altrazeal License was assigned to the Company thereby effecting its termination and the Company’s 25% ownership interest in Altrazeal Trading was cancelled. In addition, the Company assumed from Altrazeal Trading and certain affiliated entities rights and future obligations under sub-distribution agreements in numerous territories within the scope of the Altrazeal License and related consulting agreements. Under the terms of the Altrazeal Termination Agreement, we agreed to pay to Altrazeal Trading a net transfer fee of €1,570,271 and to pay IPMD a transfer fee of €703,500. The net transfer fee to Altrazeal Trading includes adjustments for amounts owed by Altrazeal Trading to the Company. The Company paid the net transfer fee (a) to Altrazeal Trading by means of the issuance of 4,441,606 shares of Common Stock together with warrants to purchase 444,161 shares of Common Stock and (b) to IPMD by means of the issuance of 2,095,241 shares of Common Stock, together with warrants to purchase 209,525 shares of Common Stock. The warrants have an exercise price of $0.68 per share and a term of one-year. Altrazeal Trading also agreed to return inventory of Altrazeal® blisters held in its possession in an amount up to €88,834 (“Inventory Payment”). To the extent Altrazeal Trading does not return the entire inventory, we may deduct from the Inventory Payment €4.20 per Altrazeal® blister not returned in usable condition. We are currently in the process of confirming with Altrazeal Trading the actual number of Altrazeal® blisters to be returned. Under the Altrazeal Termination Agreement, we also agreed to file within twenty (20) days of closing a registration statement registering the resale of 2,500,000 shares of Common Stock issued under the Altrazeal Termination Agreement and to use all commercially reasonable efforts to cause such registration Statement to become effective. In accordance with our obligations under the Altrazeal Termination Agreement, we filed with the SEC a registration statement that was declared effective on February 16, 2016. We are required to keep the registration statement effective at all times with respect to such 2,500,000 shares, other than permitted suspension periods, until the earliest of (i) June 24, 2016, (ii) the date when Altrazeal Trading and IPMD may sell all of the registered shares under Rule 144 under the Securities Act without volume limitations, or (iii) the date when Altrazeal Trading and IPMD no longer owns any of the registered shares. In connection with the Altrazeal Termination Agreement, we also entered into a Mutual Termination and Release Agreement, dated December 24, 2015, for the purpose of terminating the Binding Term Sheet dated May 12, 2015 with Altrazeal Trading and Firnron LTD (the “Term Sheet”). Under the Term Sheet, it was contemplated that the Company would acquire all of the remaining equity interests in Altrazeal Trading. Licensing rights, net consisted of the following at March 31, 2016 and December 31, 2015: Intangible assets - licensing rights March 31, 2016 December 31, 2015 European Union, Australia, New Zealand, Middle East (excluding Jordan and Syria), North Africa, Albania, Bosnia, Croatia, Kosovo, Macedonia, Montenegro, and Serbia. $ 3,512,506 $ 3,512,506 Less: accumulated amortization (86,444) (6,271) Intangible assets - licensing rights, net $ 3,426,062 $ 3,506,235 Amortization expense for intangible licensing rights assets was $80,173 and nil for the three months ended March 31, 2016 and 2015, respectively. The future aggregate amortization expense for intangible licensing rights assets, remaining as of March 31, 2016, is as follows: Calendar Years Future Amortization Expense 2016 (Nine months) $ 244,975 2017 325,148 2018 325,148 2019 325,148 2020 325,148 2021 & Beyond 1,880,495 Total $ 3,426,062

INVESTMENTS IN UNCONSOLIDATED E

INVESTMENTS IN UNCONSOLIDATED ENTITIES	3 Months Ended
	Mar. 31, 2016
INVESTMENTS IN UNCONSOLIDATED ENTITIES [Abstract]
INVESTMENTS IN UNCONSOLIDATED ENTITIES	NOTE 8. 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. Altrazeal Trading GmbH 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. On February 1, 2014, Altrazeal Trading Ltd. transferred all of their rights and obligations under the existing shareholders’ agreement to Altrazeal Trading GmbH (“Altrazeal Trading”). As a result of this transfer, we were entitled to receive a non-dilutable 25% ownership interest in Altrazeal Trading. On December 24, 2015, we completed the Altrazeal Termination Agreement with Altrazeal Trading and IPMD GmbH (“IPMD”) as more fully described in Note 7. Under the Altrazeal Termination Agreement, our ownership interest in Altrazeal Trading was cancelled. Altrazeal AG On February 1, 2014, we executed a shareholders’ agreement with Altrazeal AG, a single purpose entity for the marketing of Altrazeal® in several territories, including Africa (markets not already licensed), Latin America, Georgia, Turkmenistan, Ukraine, the Commonwealth of Independent States, Jordan, Syria, Asia and the Pacific (excluding China, Hong Kong, Macau, Taiwan, South Korea, Japan, Australia, and New Zealand). As a result of this transaction, we were entitled to receive a non-dilutable 25% ownership interest in Altrazeal AG. In late March 2016, we provided Altrazeal AG with a notice identifying certain breaches in the Exclusive License and Supply Agreement, dated September 30, 2013 with Altrazeal AG (as amended, the “ELSA”). On or about March 24, 2016, we learned that Altrazeal AG had commenced an insolvency proceeding in Switzerland and immediately sent an additional notice of termination referencing the insolvency. On or about April 18, 2016, we learned that the insolvency petition filed by Altrazeal AG in Switzerland has been accepted by the court and an administrator is to be appointed. As a result of the breaches by Altrazeal AG in the ELSA, the ELSA has been terminated in accordance with its terms. As a result of the accepted insolvency petition, we believe that our ownership interest in Altrazeal AG is deemed to be worthless and certain net accounts receivables with Altrazeal AG are uncollectible. ORADISC GmbH On October 19, 2012, we executed a shareholders’ agreement for the establishment of ORADISC GmbH, through which OraDisc™ erodible film technology products would be developed and marketed. We were entitled to receive a non-dilutable 25% ownership interest in ORADISC GmbH. In October 2012, we executed a License and Supply Agreement with ORADISC GmbH for the marketing of applications of our OraDisc™ erodible film technology for dental applications including benzocaine (OraDisc™ B), re-mineralization dental strips, fluoride dental strips, long-acting breath freshener, Amlexanox (OraDisc™ A). We also granted to ORADISC GmbH a twenty-four month option to utilize the OraDisc™ erodible film technology for drug delivery for migraine, nausea and vomiting, cough and cold, and pain. In January 2015, the initial twenty-four month option period to utilize the OraDisc™ erodible film technology by ORADISC GmbH was extended until December 31, 2015. In addition, this option expanded the applications for use to include anti-psychotics, neurologic products, and actives for the treatment of erectile dysfunction. On December 30, 2015, we received notice from ORADISC GmbH of their exercise of the option. We informed ORADISC GmbH that under the terms of the option, the right to use the OraDisc™erodible film technology expired on December 31, 2015. In March 2016, we also provided ORADISC GmbH with a notice identifying certain breaches in the License and Supply Agreement with ORADISC GmbH. As a result of the breaches by ORADISC GmbH in the License and Supply Agreement, the License and Supply Agreement has been terminated in accordance with its terms and ORADISC GmbH has ceased to be a product distributor for the Company. Since delivering the termination notice to ORADISC GmbH we have not had any communication from ORADISC GmbH with respect to the License and Supply Agreement. In March 2016, we learned that insolvency proceedings have been initiated with an Austrian commercial court with respect to IPMD GmbH and that one of its affiliated operating entities, ORADISC GmbH, might be affected by such insolvency proceeding filing. We are continuing to evaluate our position with respect to IPMD GmbH and ORADISC GmbH in light of this recent development. Financial statements for the three months ended March 31, 2016 and for the year ended December 31, 2015 have not been released to us and, therefore, we have not included the effect of the financial activities of ORADISC GmbH in our financial statements for such reporting periods. We believe that our share of the cumulative losses of ORADISC GmbH for the three months ended March 31, 2016 and for the years ended December 31, 2015, 2014, and 2013 would exceed the carrying value of our investment, therefore the equity method of accounting would be suspended for such reporting periods and no additional losses would be charged to operations. Based upon the unaudited financial statements for the years ended December 31, 2014 and 2013, as provided to us by ORADISC GmbH, our unrecorded share of ORADISC GmbH cumulative losses as of December 31, 2014 totaled $22,826. Summarized financial information for our investment in ORADISC GmbH assuming 100% ownership is as follows: ORADISC GmbH December 31, 2014 (Unaudited) December 31, 2013 (Unaudited) Balance sheet Total assets $ 237,726 $ 305,069 Total liabilities $ 286,643 $ 302,572 Total stockholders’ (deficit)/equity $ (48,917) $ 2,497 Statement of operations Revenues $ --- $ --- Net (loss) $ (47,450) $ (34,671)

ACCRUED LIABILITIES

ACCRUED LIABILITIES	3 Months Ended
	Mar. 31, 2016
ACCRUED LIABILITIES [Abstract]
ACCRUED LIABILITIES	NOTE 9. ACCRUED LIABILITIES Accrued liabilities consisted of the following at March 31, 2016 and December 31, 2015: Accrued Liabilities March 31, 2016 December 31, 2015 Accrued compensation/benefits $ 394,117 $ 329,131 Accrued insurance payable 27,032 73,074 Accrued property taxes 2,475 --- Product rebates/returns 4 9 Total accrued liabilities $ 423,628 $ 402,214

CONVERTIBLE DEBT

CONVERTIBLE DEBT	3 Months Ended
	Mar. 31, 2016
CONVERTIBLE DEBT [Abstract]
CONVERTIBLE DEBT	NOTE 10. CONVERTIBLE DEBT Debt Financing – April 2015 On April 15, 2015, we entered into a Securities Purchase Agreement dated April 14, 2015 (the “Purchase Agreement”) with Inter-Mountain Capital Corp. (“Inter-Mountain”) related to our issuance of a $550,000 Promissory Note (the “April 2015 Note”). The purchase price for the April 2015 Note, which reflects a $50,000 original issue discount, was $500,000. The Purchase Agreement also included representations and warranties, restrictive covenants and indemnification provisions standard for similar transactions. The April 2015 Note bears interest at the rate of 10.0% per annum, with monthly installment payments of $45,000 commencing on the date that is 120 calendar days after the issuance date of the April 2015 Note. At our option, subject to certain volume, price and other conditions, the monthly installments may be paid in whole, or in part, in cash or in Common Stock. If the monthly installments are 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 per share. At our option, the outstanding principal balance of the April 2015 Note, or a portion thereof, may be prepaid in cash at 120% of the amount elected to be prepaid. The April 2015 Note is unsecured and is not subject to conversion at the discretion of Inter-Mountain. Events of default under the April 2015 Note include failure to make required payments, 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 the Common Stock, a restatement of financial statements and a default under certain other agreements. In the event of default, the interest rate under the April 2015 Note increases to 18% and the April 2015 Note becomes callable at a premium. In addition, Inter-Mountain has all remedies under law and equity. As part of the debt financing, Inter-Mountain also received a warrant (the “Warrant”) to purchase up to an aggregate of 194,118 shares of Common Stock. The Warrant has an exercise price of $0.85 per share and expires on April 30, 2020. The Warrant includes a standard net cashless exercise provision and provisions requiring proportionate adjustments in connection with a recapitalization transaction. As part of the debt financing, we entered into a Registration Rights Agreement whereby we agreed to prepare and file with the Securities and Exchange Commission (the “SEC”) a registration statement no later than May 11, 2015 and to cause such registration statement to be declared effective no later than 120 after the closing date and to keep such registration statement effective for a period of no less than 180 days. In accordance with our obligations under the Registration Rights Agreement, we filed with the SEC a registration statement that was declared effective on June 4, 2015. Such registration statement ceased to be effective in April 2016. On January 11, 2016, we executed a Waiver Agreement with Inter-Mountain. The Waiver Agreement relates to the April 2015 Note and our failure to make the installment payment under the April 2015 Note due in November 2015 on a timely basis. Subsequent installment payments with respect to 2015 and 2016 have all been made on a timely basis. Under the terms of the Waiver Agreement, we agreed to remit the November 2015 installment payment of $45,000 in cash and to pay Inter-Mountain an accommodation fee of $25,000, with the accommodation fee being added to the outstanding loan balance. Using specific guidelines in accordance with U.S. GAAP, we allocated the value of the proceeds received to the promissory note and to the warrant on a relative fair value basis. We calculated the fair value of the warrant issued with the debt 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 of the warrant was recorded as a debt discount and is being amortized over the expected term of the promissory note to interest expense. Information relating to the April 2015 Note is as follows: As of March 31, 2016 Transaction Initial Principal Amount Interest Rate Maturity Date Conversion Price (1) Principal Balance Unamortized Debt Discount Unamortized Debt Issuance Costs Carrying Value April 2015 Note $550,000 10.0% 08/12/2016 $ 215,000 $ 19,000 $ 13,559 $ 182,441 Total $550,000 $ 215,000 $ 19,000 $ 13,559 $ 182,441 (1) As part of the April 2015 Note, at our option, subject to certain volume, price and other conditions, the monthly installments of principle and interest due under the April 2015 Note may be paid in whole, or in part, in cash or in Common Stock. If the monthly installments are 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 per share. For the three months ended March 31, 2016, we issued 694,056 shares of Common Stock for one installment payment of principal and interest due under the April 2015 Note. For the same period, we also remitted three installment payments in cash of principal and interest due under the April 2015 Note. The future minimum payments relating to the April 2015 Note, as of March 31, 2016, are as follows: Payments Due By Period Transaction Total 2016 2017 2018 2019 2020 April 2015 Note $ 215,000 $ 215,000 $ --- $ --- $ --- $ --- Total $ 215,000 $ 215,000 $ --- $ --- $ --- $ --- The amount of interest cost recognized from our promissory note was $8,226 and nil for the three months ended March 31, 2016 and 2015, respectively. The amount of debt discount amortized from our promissory note was $13,015 and nil for the three months ended March 31, 2016 and 2015, respectively. The amount of debt issuance costs amortized from our promissory note was $9,368 and nil for the three months ended March 31, 2016 and 2015, respectively.

EQUITY TRANSACTIONS

EQUITY TRANSACTIONS	3 Months Ended
	Mar. 31, 2016
EQUITY TRANSACTIONS [Abstract]
EQUITY TRANSACTIONS	NOTE 11. EQUITY TRANSACTIONS Common Stock Transaction March 2016 Offering On March 29, 2016, we entered into a Stock Purchase Agreement with fifteen investors for the offer and sale of 25,245,442 shares of Common Stock and warrants to purchase an additional 25,245,442 shares of Common Stock at a purchase price of $0.0713 per unit, with each unit consisting of one share and one warrant to purchase Common Stock, for an aggregate purchase price of $1,800,000 (the “March 2016 Offering). The issue price of the shares sold was based on a 10% discount to the average closing price between March 7, 2016 and March 11, 2016 and the warrant exercise price was based on a 10% premium to the same average closing price. As of the date of this Report, the March 2016 Offering has resulted in gross proceeds of $1,800,000, of which $1,439,000 was received in March 2016 and $361,000 was received in April 2016. As part of the offering expenses, we paid to a European placement agent a referral fee of $26,000 which is equal to 10% of the gross proceeds, provided that the investors referred by such placement agent are not U.S. Persons and were solicited outside the United States. Purchasers in the March 2016 Offering include Michael I. Sacks ($1,000,000), the father of Bradley J. Sacks, the Chairman of our Board of Directors, Centric Capital Ventures, LLC ($19,000), an investment entity controlled by Bradley J. Sacks, Terrance K. Wallberg ($50,000), our Vice President and Chief Financial Officer, and Daniel G. Moro ($10,000), our Vice President of Polymer Drug Delivery.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2016
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	NOTE 12. STOCKHOLDERS’ EQUITY Common Stock As of March 31, 2016, we had 62,974,431 shares of Common Stock issued and outstanding. For the three months ended March 31, 2016, we issued 26,139,498 shares of Common Stock composed of 25,245,442 shares of Common Stock issued to investors pursuant to the March 2016 offering, 694,056 shares of Common Stock issued for installment payments due under the April 2015 Note with Inter-Mountain, and 200,000 shares issued for consulting services related to investor relations. Preferred Stock As of March 31, 2016, we had no shares of Series A Preferred Stock (the “Series A Shares”) issued and outstanding. For the three months ended March 31, 2016, we did not issue or redeem any Series A Shares. Warrants The following table summarizes the warrants outstanding and the number of shares of Common Stock subject to exercise as of March 31, 2016 and the changes therein during the three months then ended: Number of Shares of Common Stock Subject to Exercise Weighted – Average Exercise Price Balance as of December 31, 2015 1,774,193 $ 0.77 Warrants issued 25,245,442 $ 0.09 Warrants exercised --- --- Warrants cancelled --- --- Balance as of March 31, 2016 27,019,635 $ 0.13 For the three months ended March 31, 2016, we issued warrants to purchase up to an aggregate of 25,245,442 shares of our Common Stock at an exercise price of $0.0871 per shares pursuant to the March 2016 Offering. Of the warrant shares subject to exercise as of March 31, 2016, expiration of the right to exercise is as follows: Date of Expiration Number of Warrant Shares of Common Stock Subject to Expiration June 13, 2016 35,000 July 16, 2016 116,667 July 28, 2016 34,722 December 24, 2016 653,686 March 14, 2018 660,000 January 15, 2019 80,000 April 30, 2020 194,118 March 30, 2021 25,245,442 Total 27,019,635

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2016
EARNINGS PER SHARE [Abstract]
EARNINGS PER SHARE	NOTE 13. EARNINGS PER SHARE Basic and Diluted Net Loss Per Share In accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 260, Earnings per Share Shares used in calculating basic and diluted net loss per common share exclude these potential common shares as of March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Warrants to purchase Common Stock 27,019,635 1,774,193 Stock options to purchase Common Stock 1,409,571 1,664,573 Common stock issuable upon the assumed conversion of payments due under our promissory note from April 2015 (1) 3,307,693 1,934,718 Total 31,736,899 5,373,484 (1) As part of the April 2015 Note, at our option, subject to certain volume, price and other conditions, the monthly installments of principle and interest due under the April 2015 Note may be paid in whole, or in part, in cash or in Common Stock. If the monthly installments are 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 per share. For the purposes of this Table, we have assumed that all outstanding monthly installments of principal and interest will be paid in Common Stock based on a price of $0.06 per share (80% of the average of the three lowest volume weighted average prices of the shares of Common Stock during the preceding twenty trading days prior to March 31, 2016), subject to certain ownership limitations.

SHARE BASED COMPENSATION

SHARE BASED COMPENSATION	3 Months Ended
	Mar. 31, 2016
SHARE BASED COMPENSATION [Abstract]
SHARE BASED COMPENSATION	NOTE 14. SHARE BASED COMPENSATION The Company’s share-based compensation plan, the 2006 Equity Incentive Plan, as amended (“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 did not grant any incentive stock option awards to executives or employees or any nonstatutory stock option awards to directors or non-employees for the three months ended March 31, 2016 and 2015, respectively. We account for share-based compensation under FASB ASC Topic 718, Stock Compensation Stock Options (Incentive and Nonstatutory) The following table summarizes share-based compensation related to stock options for the three months ended March 31: Three Months Ended March 31, 2016 2015 Research and development $ 8,670 $ 18,612 Selling, general and administrative 19,197 56,736 Total share-based compensation expense $ 27,867 $ 75,348 At March 31, 2016, 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 $78,000. The period over which the unearned share-based compensation is expected to be recognized is approximately eighteen months. The following table summarizes the stock options outstanding and the number of shares of Common Stock subject to exercise as of March 31, 2016 and the changes therein during the three months then ended: Stock Options Weighted Average Exercise Price per Share Outstanding as of December 31, 2015 1,664,573 $ 1.73 Granted --- --- Forfeited/cancelled (255,002) $ 2.83 Exercised --- --- Outstanding as of March 31, 2016 1,409,571 $ 1.53 The following table presents the stock option grants outstanding and exercisable as of March 31, 2016: 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 807,500 $ 0.33 7.0 565,000 $ 0.33 550,000 1.15 6.2 75,000 1.15 52,071 24.20 1.4 52,071 24.20 1,409,571 $ 1.53 6.5 692,071 $ 2.22 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. For the three months ended March 31, 2016 and 2015, we did not grant any restricted stock awards. 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, June 13, 2013, and on June 5, 2014, 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, 600,000 shares, and 1,000,000 shares, respectively, to a total of 2,800,000 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 March 31, 2016, we had granted options to purchase 2,061,167 shares of Common Stock since the inception of the Equity Incentive Plan, of which 1,409,571 were outstanding at a weighted average exercise price of $1.53 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 March 31, 2016, there were 1,320,983 shares that remained available for future grants under our Equity Incentive Plan.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2016
FAIR VALUE MEASUREMENTS [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 15. FAIR VALUE MEASUREMENTS In accordance with FASB ASC Topic 820, Fair Value Measurements 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 promissory 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 March 31, 2016 and December 31, 2015. Description March 31, 2016 December 31, 2015 Liabilities: Promissory note – April 2015 $ 215,000 $ 370,000 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.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2016
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 16. 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	3 Months Ended
	Mar. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 17. 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 was inclusive of monthly operating expenses, until April 1, 2011 and at such time increased to $9,776, which was 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 required a minimum monthly lease obligation of $9,193, which was inclusive of monthly operating expenses, until March 31, 2014 and at such time, increased to $9,379, which was inclusive of monthly operating expenses. On March 17, 2015, we executed a Second Amendment to Lease Agreement (the “Second Amendment”) that renewed and extended our lease until March 31, 2018. The Second Amendment requires a minimum monthly lease obligation of $9,436, which is inclusive of monthly operating expenses. On December 10, 2010 we entered into a lease agreement for certain office equipment that commenced on February 1, 2011 and continued until February 1, 2015 and required a minimum lease obligation of $744 per month. On January 16, 2015 we entered into a new lease agreement for certain office equipment. The new office equipment lease, that commenced on February 1, 2015 and continues until February 1, 2018, requires a minimum lease obligation of $551 per month. The future minimum lease payments under the 2015 office lease and the 2015 equipment lease are as follows as of March 31, 2016: Calendar Years Future Lease Expense 2016 (Nine months) $ 89,880 2017 119,840 2018 28,858 2019 --- 2020 --- Total $ 238,578 Rent expense for our operating leases amounted to $29,960 and $31,165 for the three ended March 31, 2016 and 2015, respectively. 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 and Concentration 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. During 2015, Mr. Kerschbaumer served as a director of Altrazeal Trading GmbH, Altrazeal AG, and Melmed Holding AG (collectively, the “Altrazeal Distributors”) and Mr. Kuehne served as a director of Altrazeal AG. In such capacities, Mr. Kerschbaumer may have been considered, either singularly or collectively, to have had control of, and make investment and business decisions on behalf of the Altrazeal Distributors and Mr. Kuehne may be considered, either singularly of collectively, to have had control of, and make investment and business decisions on behalf of Altrazeal AG. As a result of the Altrazeal Termination Agreement in December 2015, Altrazeal Trading GmbH and Melmed Holding AG ceased to be a product distributor for the Company. As a result of the breaches in March and April 2016 by Altrazeal AG in the ELSA, we believe that the ELSA has been cancelled and Altrazeal AG has ceased to be a product distributor for the Company. Each of Mr. Kerschbaumer and Mr. Kuehne are managing directors of ORADISC GmbH and in such capacities may be considered, either singularly or collectively, to have control of, and make investment and business decisions on behalf of the ORADISC GmbH. On April 19, 2016, Mr. Kuehne resigned as a managing director of ORADISC GmbH. In October 2012, we executed a License and Supply Agreement with ORADISC GmbH for the marketing of applications of our OraDisc™ erodible film technology for dental applications including benzocaine (OraDisc™ B), re-mineralization dental strips, fluoride dental strips, long-acting breath freshener, Amlexanox (OraDisc™ A). We also granted to ORADISC GmbH a twenty-four month option to utilize the OraDisc™ erodible film technology for drug delivery for migraine, nausea and vomiting, cough and cold, and pain. In January 2015, the initial twenty-four month option period to utilize the OraDisc™ erodible film technology by ORADISC GmbH was extended until December 31, 2015. In addition, this option expanded the applications for use to include anti-psychotics, neurologic products, and actives for the treatment of erectile dysfunction. On December 30, 2015, we received notice from ORADISC GmbH of their exercise of the option. We informed ORADISC GmbH that under the terms of the option, the right to use the OraDisc™erodible film technology expired on December 31, 2015. In March 2016, we also provided ORADISC GmbH with a notice identifying certain breaches in the License and Supply Agreement with ORADISC GmbH. As a result of the breaches by ORADISC GmbH in the License and Supply Agreement, the License and Supply Agreement has been terminated in accordance with its terms and ORADISC GmbH has ceased to be a product distributor for the Company. Since delivering the termination notice to ORADISC GmbH we have not had any communication from ORADISC GmbH with respect to the License and Supply Agreement. For the three months ended March 31, 2016 and 2015, the Company recorded revenues, in approximate numbers, of nil and $282,000, respectively, with the various Altrazeal Distributors, which represented 0% and 96% of our total revenues. As of March 31, 2016 and December 31, 2015, Altrazeal Distributors had an outstanding net accounts receivable, in approximate numbers, of nil and $3,000, respectively, which represented 0% and 3% of our net outstanding accounts receivables. License Purchase and Termination Agreement On December 24, 2015, we entered into and closed the transaction contemplated by a License Purchase and Termination Agreement (the “Altrazeal Termination Agreement”) with Altrazeal Trading GmbH (“Altrazeal Trading”) and IPMD GmbH (“IPMD”). The Altrazeal Termination Agreement relates to the License and Supply Agreement dated January 11, 2012 (the “Altrazeal License”), under which Altrazeal Trading and its affiliates were authorized by the Company to distribute our Altrazeal® wound care product in the European Union, Australia, New Zealand, Middle East (excluding Jordan and Syria), North Africa, Albania, Bosnia, Croatia, Kosovo, Macedonia, Montenegro, and Serbia. Under the Altrazeal Termination Agreement, the Altrazeal License was assigned to the Company thereby effecting its termination and the Company’s 25% ownership interest in Altrazeal Trading was cancelled. In addition, the Company assumed from Altrazeal Trading and certain affiliated entities rights and future obligations under sub-distribution agreements in numerous territories within the scope of the Altrazeal License and related consulting agreements. Under the terms of the Altrazeal Termination Agreement, we agreed to pay to Altrazeal Trading a net transfer fee of €1,570,271 and to pay IPMD a transfer fee of €703,500. The net transfer fee to Altrazeal Trading includes adjustments for amounts owed by Altrazeal Trading to the Company. The Company paid the net transfer fee (a) to Altrazeal Trading by means of the issuance of 4,441,606 shares of Common Stock together with warrants to purchase 444,161 shares of Common Stock and (b) to IPMD by means of the issuance of 2,095,241 shares of Common Stock, together with warrants to purchase 209,525 shares of Common Stock. The warrants have an exercise price of $0.68 per share and a term of one-year. Altrazeal Trading also agreed to return inventory of Altrazeal® blisters held in its possession in an amount up to €88,834 (“Inventory Payment”). To the extent Altrazeal Trading does not return the entire inventory, we may deduct from the Inventory Payment €4.20 per Altrazeal® blister not returned in usable condition. We are currently in the process of confirming with Altrazeal Trading the actual number of Altrazeal® blisters to be returned. Under the Altrazeal Termination Agreement, we also agreed to file within twenty (20) days of closing a registration statement registering the resale of 2,500,000 shares of Common Stock issued under the Altrazeal Termination Agreement and to use all commercially reasonable efforts to cause such registration Statement to become effective. In accordance with our obligations under the Altrazeal Termination Agreement, we filed with the SEC a registration statement that was declared effective on February 16, 2016. We are required to keep the registration statement effective at all times with respect to such 2,500,000 shares, other than permitted suspension periods, until the earliest of (i) June 24, 2016, (ii) the date when Altrazeal Trading and IPMD may sell all of the registered shares under Rule 144 under the Securities Act without volume limitations, or (iii) the date when Altrazeal Trading and IPMD no longer owns any of the registered shares. In connection with the Altrazeal Termination Agreement, we also entered into a Mutual Termination and Release Agreement, dated December 24, 2015, for the purpose of terminating the Binding Term Sheet dated May 12, 2015 with Altrazeal Trading and Firnron LTD (the “Term Sheet”). Under the Term Sheet, it was contemplated that the Company would acquire all of the remaining equity interests in Altrazeal Trading. 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 and manage the Company’s cash and financial resources. As of March 31, 2016, the following table summarizes the Company’s obligation for compensation temporarily deferred by our employees: Name 2016 2015 2014 – 2011 Total Kerry P. Gray (1) (2) (3) $ --- $ 275,153 $ 150,000 $ 425,153 Terrance K. Wallberg 25,897 53,540 --- 79,437 Other employees 16,385 54,871 --- 71,256 Total $ 42,282 $ 383,564 $ 150,000 $ 575,846 (1) On November 19, 2015, Mr. Gray resigned as the Company’s President and Chief Executive Officer and on February 18, 2016 resigned as a director for the Company. (2) During 2015, Mr. Gray temporarily deferred compensation of $275,153 which consisted of $51,770 earned as salary compensation for his duties as President of the Company, $186,083 for his duties as Chairman of the Executive Committee of the Company’s Board of Directors, and $37,300 as a temporary advance of working capital. (3) During 2014, Mr. Gray temporarily deferred compensation of $150,000 which consisted of $62,500 earned as salary compensation for his duties as President of the Company and $87,500 for his duties as Chairman of the Executive Committee of the Company’s Board of Directors. During 2014, Mr. Gray was also repaid $269,986 of temporarily deferred compensation, of which $100,000 was used by Mr. Gray for funding required pursuant to a Securities Purchase Agreement, dated March 14, 2013 (the “March 2013 Offering”). Prior to 2014, over a three year period Mr. Gray temporarily deferred, at various times, aggregate compensation of $582,486 and during the same time period was also repaid $312,500 of temporarily deferred compensation, of which $300,000 was used by Mr. Gray for funding required pursuant to the March 2013 Offering. As of March 31, 2016, the Company’s obligation for temporarily deferred compensation was $575,846 of which $302,263 was included in accrued liabilities and $273,583 was included in accounts payable, respectively. As of December 31, 2015, the Company’s obligation for temporarily deferred compensation was $533,564 of which $259,981 was included in accrued liabilities and $273,583 was included in accounts payable, 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 March 31, 2016, 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	3 Months Ended
	Mar. 31, 2016
LEGAL PROCEEDINGS [Abstract]
LEGAL PROCEEDINGS	NOTE 18. 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; however, one or more events may lead to a formal dispute or proceeding in the future. In late March 2016, we provided Altrazeal AG with a notice identifying certain breaches in the Exclusive License and Supply Agreement, dated September 30, 2013 (the “ELSA”). On or about March 24, 2016, we learned that Altrazeal AG had commenced an insolvency proceeding in Switzerland and immediately sent an additional notice of termination referencing the insolvency. On or about April 18, 2016, we have learned that the insolvency petition filed by Altrazeal AG in Switzerland has been accepted by the court and an administrator is to be appointed. As a result of the breaches by Altrazeal AG in the ELSA, we believe that the ELSA has been cancelled. As a result of the accepted insolvency petition, we believe that our ownership interest in Altrazeal AG is deemed to be worthless and certain net accounts receivables with Altrazeal AG are uncollectible. In March 2016, we learned that insolvency proceedings have been initiated with an Austrian commercial court with respect to IPMD GmbH and that one of its affiliated operating entities, ORADISC GmbH, might be affected by such insolvency proceeding filing. We are continuing to evaluate our position with respect to IPMD GmbH and ORADISC GmbH in light of this recent development. In October 2012, we executed a License and Supply Agreement with ORADISC GmbH for the marketing of applications of our OraDisc™ erodible film technology for dental applications including benzocaine (OraDisc™ B), re-mineralization dental strips, fluoride dental strips, long-acting breath freshener, Amlexanox (OraDisc™ A). We also granted to ORADISC GmbH a twenty-four month option to utilize the OraDisc™ erodible film technology for drug delivery for migraine, nausea and vomiting, cough and cold, and pain. In January 2015, the initial twenty-four month option period to utilize the OraDisc™ erodible film technology by ORADISC GmbH was extended until December 31, 2015. In addition, this option expanded the applications for use to include anti-psychotics, neurologic products, and actives for the treatment of erectile dysfunction. On December 30, 2015, we received notice from ORADISC GmbH of their exercise of the option. We informed ORADISC GmbH that under the terms of the option, the right to use the OraDisc™erodible film technology expired on December 31, 2015. In March 2016, we also provided ORADISC GmbH with a notice identifying certain breaches in the License and Supply Agreement with ORADISC GmbH. As a result of the breaches by ORADISC GmbH in the License and Supply Agreement, the License and Supply Agreement has been terminated in accordance with its terms and ORADISC GmbH has ceased to be a product distributor for the Company. Since delivering the termination notice to ORADISC GmbH we have not had any communication from ORADISC GmbH with respect to the License and Supply Agreement.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	NOTE 19. SUBSEQUENT EVENTS On March 29, 2016, we entered into a Stock Purchase Agreement with fifteen investors for the offer and sale of 25,245,442 shares of Common Stock and warrants to purchase an additional 25,245,442 shares of Common Stock at a purchase price of $0.0713 per unit, with each unit consisting of one share and one warrant to purchase Common Stock, for an aggregate purchase price of $1,800,000 (the “March 2016 Offering). As of the date of this Report, the March 2016 Offering has resulted in gross proceeds of $1,800,000, of which $1,439,000 was received in March 2016 and $361,000 was received in April 2016. Refer to Note 11. for a detailed description.

COMPANY OVERVIEW AND BASIS OF25

COMPANY OVERVIEW AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and the results of its operations for the three months ended March 31, 2016 and 2015 and cash flows for the three months ended March 31, 2016 and 2015 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 months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015, as filed with the Securities and Exchange Commission on March 30, 2016, including the risk factors set forth therein.
Liquidity and Going Concern	Liquidity and Going Concern The report of our independent registered public accounting firm for the fiscal year ended December 31, 2015, contained an explanatory paragraph to reflect its significant doubt about our ability to continue as a going concern as a result of our history of losses and our liquidity position, as discussed herein and in this Form 10-Q. Based on our liquidity as of March 31, 2016, the expected level of operating expenses, and the projected sales of our existing products combined with other revenues, we believe that we will be able to meet our working capital and capital expenditure requirements through the third quarter of 2016. However, we cannot be sure that our anticipated revenue growth will be realized or that we will generate significant positive cash flow from operations. Moreover, we may not be able to raise sufficient additional capital on acceptable terms, or at all, to continue operations beyond the third quarter of 2016. Therefore, we are unable to assert that our financial position is sufficient to fund operations beyond the third quarter of 2016, and as a result, there is substantial doubt about our ability to continue as a going concern beyond the third quarter of 2016. In order to continue to advance our business plan and outstanding obligations after the third quarter of 2016, we need to raise additional capital.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2016
SEGMENT INFORMATION [Abstract]
Revenues per geographic area	Revenues per geographic area for the three months ended March 31 are summarized as follows: Revenues 2016 % 2015 % Domestic $ 7,516 7% $ 6,802 2% International 101,276 93% 287,846 98% Total $ 108,792 100% $ 294,648 100%
Customers with greater than 10% of total sales	Customers with greater than 10% of total revenues for the three months ended March 31 are represented on the following table: Customers Product 2016 2015 Customer A Altrazeal® 87% 1% Customer B Altrazeal® --- 93% Total 87% 94%

INVENTORY (Tables)

INVENTORY (Tables)	3 Months Ended
	Mar. 31, 2016
INVENTORY [Abstract]
Components of inventory	The components of inventory, at the different stages of production, consisted of the following at March 31, 2016 and December 31, 2015: Inventory March 31, 2016 December 31, 2015 Raw materials $ 38,439 $ 38,037 Work-in-progress 444,358 485,123 Finished goods 54,567 8,261 Total $ 537,364 $ 531,421

PROPERTY, EQUIPMENT and LEASE28

PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS (Tables)	3 Months Ended
	Mar. 31, 2016
PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS [Abstract]
Property, equipment and leasehold improvements	Property, equipment and leasehold improvements, net, consisted of the following at March 31, 2016 and December 31, 2015: Property, equipment and leasehold improvements March 31, 2016 December 31, 2015 Laboratory equipment $ 424,888 $ 424,888 Manufacturing equipment 1,604,894 1,604,894 Computers, office equipment, and furniture 153,865 153,865 Computer software 4,108 4,108 Leasehold improvements 95,841 95,841 2,283,596 2,283,596 Less: accumulated depreciation and amortization (2,059,344) (2,026,179) Property, equipment and leasehold improvements, net $ 224,252 $ 257,417

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2016
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	Intangible assets, net consisted of the following at March 31, 2016 and December 31, 2015: Intangible assets – patents March 31, 2016 December 31, 2015 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 ( 7,023,860) (6,905,397) Intangible assets - patents, net $ 2,602,078 $ 2,720,541
Future aggregate amortization expense for intangible assets	The future aggregate amortization expense for intangible patent assets, remaining as of March 31, 2016, is as follows: Calendar Years Future Amortization Expense 2016 (Nine months) $ 357,987 2017 475,148 2018 475,148 2019 475,148 2020 476,450 2021 & Beyond 342,197 Total $ 2,602,078
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets	Licensing rights, net consisted of the following at March 31, 2016 and December 31, 2015: Intangible assets - licensing rights March 31, 2016 December 31, 2015 European Union, Australia, New Zealand, Middle East (excluding Jordan and Syria), North Africa, Albania, Bosnia, Croatia, Kosovo, Macedonia, Montenegro, and Serbia. $ 3,512,506 $ 3,512,506 Less: accumulated amortization (86,444) (6,271) Intangible assets - licensing rights, net $ 3,426,062 $ 3,506,235
Future aggregate amortization expense for intangible assets	The future aggregate amortization expense for intangible licensing rights assets, remaining as of March 31, 2016, is as follows: Calendar Years Future Amortization Expense 2016 (Nine months) $ 244,975 2017 325,148 2018 325,148 2019 325,148 2020 325,148 2021 & Beyond 1,880,495 Total $ 3,426,062

INVESTMENTS IN UNCONSOLIDATED30

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Tables)	3 Months Ended
	Mar. 31, 2016
ORADISC GmbH [Member]
Schedule of Equity Method Investments [Line Items]
Summarized financial information for investment	Summarized financial information for our investment in ORADISC GmbH assuming 100% ownership is as follows: ORADISC GmbH December 31, 2014 (Unaudited) December 31, 2013 (Unaudited) Balance sheet Total assets $ 237,726 $ 305,069 Total liabilities $ 286,643 $ 302,572 Total stockholders’ (deficit)/equity $ (48,917) $ 2,497 Statement of operations Revenues $ --- $ --- Net (loss) $ (47,450) $ (34,671)

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2016
ACCRUED LIABILITIES [Abstract]
Accrued liabilities	Accrued liabilities consisted of the following at March 31, 2016 and December 31, 2015: Accrued Liabilities March 31, 2016 December 31, 2015 Accrued compensation/benefits $ 394,117 $ 329,131 Accrued insurance payable 27,032 73,074 Accrued property taxes 2,475 --- Product rebates/returns 4 9 Total accrued liabilities $ 423,628 $ 402,214

CONVERTIBLE DEBT (Tables)

CONVERTIBLE DEBT (Tables)	3 Months Ended
	Mar. 31, 2016
CONVERTIBLE DEBT [Abstract]
Information relating to convertible notes payable	Information relating to the April 2015 Note is as follows: As of March 31, 2016 Transaction Initial Principal Amount Interest Rate Maturity Date Conversion Price (1) Principal Balance Unamortized Debt Discount Unamortized Debt Issuance Costs Carrying Value April 2015 Note $550,000 10.0% 08/12/2016 $ 215,000 $ 19,000 $ 13,559 $ 182,441 Total $550,000 $ 215,000 $ 19,000 $ 13,559 $ 182,441 (1) As part of the April 2015 Note, at our option, subject to certain volume, price and other conditions, the monthly installments of principle and interest due under the April 2015 Note may be paid in whole, or in part, in cash or in Common Stock. If the monthly installments are 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 per share.
Schedule of future minimum payments relating to our convertible notes payable	The future minimum payments relating to the April 2015 Note, as of March 31, 2016, are as follows: Payments Due By Period Transaction Total 2016 2017 2018 2019 2020 April 2015 Note $ 215,000 $ 215,000 $ --- $ --- $ --- $ --- Total $ 215,000 $ 215,000 $ --- $ --- $ --- $ ---

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and the changes therein during the three months then ended: Number of Shares of Common Stock Subject to Exercise Weighted – Average Exercise Price Balance as of December 31, 2015 1,774,193 $ 0.77 Warrants issued 25,245,442 $ 0.09 Warrants exercised --- --- Warrants cancelled --- --- Balance as of March 31, 2016 27,019,635 $ 0.13
Expiration dates for warrants subject to exercise	Of the warrant shares subject to exercise as of March 31, 2016, expiration of the right to exercise is as follows: Date of Expiration Number of Warrant Shares of Common Stock Subject to Expiration June 13, 2016 35,000 July 16, 2016 116,667 July 28, 2016 34,722 December 24, 2016 653,686 March 14, 2018 660,000 January 15, 2019 80,000 April 30, 2020 194,118 March 30, 2021 25,245,442 Total 27,019,635

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2016
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 March 31, 2016 and December 31, 2015: March 31, 2016 December 31, 2015 Warrants to purchase Common Stock 27,019,635 1,774,193 Stock options to purchase Common Stock 1,409,571 1,664,573 Common stock issuable upon the assumed conversion of payments due under our promissory note from April 2015 (1) 3,307,693 1,934,718 Total 31,736,899 5,373,484 (1) As part of the April 2015 Note, at our option, subject to certain volume, price and other conditions, the monthly installments of principle and interest due under the April 2015 Note may be paid in whole, or in part, in cash or in Common Stock. If the monthly installments are 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 per share. For the purposes of this Table, we have assumed that all outstanding monthly installments of principal and interest will be paid in Common Stock based on a price of $0.06 per share (80% of the average of the three lowest volume weighted average prices of the shares of Common Stock during the preceding twenty trading days prior to March 31, 2016), subject to certain ownership limitations.

SHARE BASED COMPENSATION (Table

SHARE BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2016
SHARE BASED COMPENSATION [Abstract]
Allocated share-based compensation expense	The following table summarizes share-based compensation related to stock options for the three months ended March 31: Three Months Ended March 31, 2016 2015 Research and development $ 8,670 $ 18,612 Selling, general and administrative 19,197 56,736 Total share-based compensation expense $ 27,867 $ 75,348
Stock option activity	The following table summarizes the stock options outstanding and the number of shares of Common Stock subject to exercise as of March 31, 2016 and the changes therein during the three months then ended: Stock Options Weighted Average Exercise Price per Share Outstanding as of December 31, 2015 1,664,573 $ 1.73 Granted --- --- Forfeited/cancelled (255,002) $ 2.83 Exercised --- --- Outstanding as of March 31, 2016 1,409,571 $ 1.53
Stock option grants outstanding and exercisable	The following table presents the stock option grants outstanding and exercisable as of March 31, 2016: 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 807,500 $ 0.33 7.0 565,000 $ 0.33 550,000 1.15 6.2 75,000 1.15 52,071 24.20 1.4 52,071 24.20 1,409,571 $ 1.53 6.5 692,071 $ 2.22

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2016
FAIR VALUE MEASUREMENTS [Abstract]
Fair value of our financial instruments	The following table summarizes the fair value of our financial instruments at March 31, 2016 and December 31, 2015. Description March 31, 2016 December 31, 2015 Liabilities: Promissory note – April 2015 $ 215,000 $ 370,000

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2016
COMMITMENTS AND CONTINGENCIES [Abstract]
Future minimum lease payments	The future minimum lease payments under the 2015 office lease and the 2015 equipment lease are as follows as of March 31, 2016: Calendar Years Future Lease Expense 2016 (Nine months) $ 89,880 2017 119,840 2018 28,858 2019 --- 2020 --- Total $ 238,578
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred	As of March 31, 2016, the following table summarizes the Company’s obligation for compensation temporarily deferred by our employees: Name 2016 2015 2014 – 2011 Total Kerry P. Gray (1) (2) (3) $ --- $ 275,153 $ 150,000 $ 425,153 Terrance K. Wallberg 25,897 53,540 --- 79,437 Other employees 16,385 54,871 --- 71,256 Total $ 42,282 $ 383,564 $ 150,000 $ 575,846 (1) On November 19, 2015, Mr. Gray resigned as the Company’s President and Chief Executive Officer and on February 18, 2016 resigned as a director for the Company. (2) During 2015, Mr. Gray temporarily deferred compensation of $275,153 which consisted of $51,770 earned as salary compensation for his duties as President of the Company, $186,083 for his duties as Chairman of the Executive Committee of the Company’s Board of Directors, and $37,300 as a temporary advance of working capital. (3) During 2014, Mr. Gray temporarily deferred compensation of $150,000 which consisted of $62,500 earned as salary compensation for his duties as President of the Company and $87,500 for his duties as Chairman of the Executive Committee of the Company’s Board of Directors. During 2014, Mr. Gray was also repaid $269,986 of temporarily deferred compensation, of which $100,000 was used by Mr. Gray for funding required pursuant to a Securities Purchase Agreement, dated March 14, 2013 (the “March 2013 Offering”). Prior to 2014, over a three year period Mr. Gray temporarily deferred, at various times, aggregate compensation of $582,486 and during the same time period was also repaid $312,500 of temporarily deferred compensation, of which $300,000 was used by Mr. Gray for funding required pursuant to the March 2013 Offering.

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details)	3 Months Ended
	Mar. 31, 2016USD ($)SegmentMarket	Mar. 31, 2015USD ($)
SEGMENT INFORMATION [Abstract]
Number of business segments | Segment	1
Number of international markets | Market	16
Revenues per geographic area [Abstract]
Total Revenues	$ 108,792	$ 294,648
Total revenue, percentage	100.00%	100.00%
Reportable Geographical Components [Member] | Domestic [Member]
Revenues per geographic area [Abstract]
Total Revenues	$ 7,516	$ 6,802
Total revenue, percentage	7.00%	2.00%
Reportable Geographical Components [Member] | International [Member]
Revenues per geographic area [Abstract]
Total Revenues	$ 101,276	$ 287,846
Total revenue, percentage	93.00%	98.00%

SEGMENT INFORMATION, Reporting

SEGMENT INFORMATION, Reporting Segment (Details)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue, Major Customer [Line Items]
Concentration risk, percentage	100.00%	100.00%
Revenue [Member] | Customer Concentration Risk [Member]
Revenue, Major Customer [Line Items]
Concentration risk, percentage	87.00%	94.00%
Revenue [Member] | Customer Concentration Risk [Member] | Customer A [Member] | Altrazeal [Member]
Revenue, Major Customer [Line Items]
Concentration risk, percentage	87.00%	1.00%
Revenue [Member] | Customer Concentration Risk [Member] | Customer B [Member] | Altrazeal [Member]
Revenue, Major Customer [Line Items]
Concentration risk, percentage	0.00%	93.00%

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Components of inventory [Abstract]
Raw materials	$ 38,439	$ 38,037
Work-in-progress	444,358	485,123
Finished goods	54,567	8,261
Total	$ 537,364	$ 531,421

PROPERTY, EQUIPMENT and LEASE41

PROPERTY, EQUIPMENT and LEASEHOLD IMPROVEMENTS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Property, equipment and leasehold improvements, net [Abstract]
Property, equipment and leasehold improvements, gross	$ 2,283,596		$ 2,283,596
Less: accumulated depreciation and amortization	(2,059,344)		(2,026,179)
Property, equipment and leasehold improvements, net	224,252		257,417
Depreciation expense	33,165	$ 58,309
Laboratory Equipment [Member]
Property, equipment and leasehold improvements, net [Abstract]
Property, equipment and leasehold improvements, gross	424,888		424,888
Manufacturing Equipment [Member]
Property, equipment and leasehold improvements, net [Abstract]
Property, equipment and leasehold improvements, gross	1,604,894		1,604,894
Computers, Office Equipment, and Furniture [Member]
Property, equipment and leasehold improvements, net [Abstract]
Property, equipment and leasehold improvements, gross	153,865		153,865
Computer Software [Member]
Property, equipment and leasehold improvements, net [Abstract]
Property, equipment and leasehold improvements, gross	4,108		4,108
Leasehold Improvements [Member]
Property, equipment and leasehold improvements, net [Abstract]
Property, equipment and leasehold improvements, gross	$ 95,841		$ 95,841

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Intangible assets, net	$ 2,602,078		$ 2,720,541
Amortization expense	198,636	$ 117,161
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	9,625,938		9,625,938
Less: accumulated amortization	(7,023,860)		(6,905,397)
Intangible assets, net	2,602,078		2,720,541
Amortization expense	118,463	$ 117,161
Future aggregate amortization expense for intangible assets [Abstract]
2016 (Nine months)	357,987
2,017	475,148
2,018	475,148
2,019	475,148
2,020	476,450
2021 & Beyond	342,197
Total	2,602,078
Patents [Member] | Amlexanox (Aphthasol) [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	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
Patents [Member] | OraDisc [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	73,000		73,000
Patents [Member] | Hydrogel Nanoparticle Aggregate [Member]
Finite-Lived Intangible Assets [Line Items]
Intangible assets, gross	$ 589,858		$ 589,858

INTANGIBLE ASSETS, Licensing Ri

INTANGIBLE ASSETS, Licensing Rights (Details)	Dec. 24, 2015EUR (€)€ / sharesshares	Mar. 31, 2016USD ($)shares	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)shares	Dec. 24, 2015$ / shares	Dec. 24, 2015EUR (€)shares
Finite-Lived Intangible Assets [Line Items]
Issuance of common stock (in shares) | shares		62,974,431		36,834,933
Amortization expense		$ 198,636	$ 117,161
Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
European Union, Australia, New Zealand, Middle East (excluding Jordan and Syria), North Africa, Albania, Bosnia, Croatia, Kosovo, Macedonia, Montenegro, and Serbia		3,512,506		$ 3,512,506
Less: accumulated amortization		(86,444)		(6,271)
Total		3,426,062		3,506,235
Amortization expense		80,173	$ 0
Future aggregate amortization expense for intangible assets [Abstract]
2016 (Nine months)		244,975
2,017		325,148
2,018		325,148
2,019		325,148
2,020		325,148
2021 & Beyond		1,880,495
Total		$ 3,426,062		$ 3,506,235
Altrazeal Trading GmbH [Member] | Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Percentage of ownership interest						25.00%
Transfer fee | €	€ 1,570,271
Issuance of common stock (in shares) | shares						4,441,606
Aggregate shares of common stock issued upon exercise of warrants (in shares) | shares						444,161
Exercise price of warrants (in dollars per share) | $ / shares					$ 0.68
Term of warrants	1 year
Deduction in inventory payment (in dollars per share) | € / shares	€ 4.20
Number of days for closing registration statement	20 days
Common stock reissued (in shares) | shares	2,500,000
Altrazeal Trading GmbH [Member] | Licensing Agreements [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Inventory payment | €						€ 88,834
IPMD GmbH [Member] | Licensing Agreements [Member]
Finite-Lived Intangible Assets [Line Items]
Transfer fee | €	€ 703,500
Issuance of common stock (in shares) | shares						2,095,241
Aggregate shares of common stock issued upon exercise of warrants (in shares) | shares						209,525
Exercise price of warrants (in dollars per share) | $ / shares					$ 0.68
Term of warrants	1 year

INVESTMENTS IN UNCONSOLIDATED44

INVESTMENTS IN UNCONSOLIDATED ENTITIES (Details) - USD ($)	Oct. 31, 2012	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Statement of operations [Abstract]
Gains losses on equity method investments		$ 0	$ 0
Minimum [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of noncontrolling interest		20.00%
Maximum [Member]
Schedule of Equity Method Investments [Line Items]
Percentage of noncontrolling interest		50.00%
Altrazeal Trading Ltd. [Member]
Schedule of Equity Method Investments [Line Items]
Non-dilutable ownership interest							25.00%
Altrazeal Trading GmbH [Member]
Schedule of Equity Method Investments [Line Items]
Non-dilutable ownership interest					25.00%
Altrazeal AG [Member]
Schedule of Equity Method Investments [Line Items]
Non-dilutable ownership interest					25.00%
ORADISC GmbH [Member]
Schedule of Equity Method Investments [Line Items]
Non-dilutable ownership interest							25.00%
Unrecorded profit (loss)					$ (22,826)
Time period granted to utilize OraDisc erodible film technology	24 months
OraDisc erodible film technology, expiry date		Dec. 31, 2015
Balance sheet [Abstract]
Total assets					237,726	$ 305,069
Total liabilities					286,643	302,572
Total stockholders' (deficit)/equity					(48,917)	2,497
Statement of operations [Abstract]
Revenues					0	0
Net (loss)					(47,450)	(34,671)
Gains losses on equity method investments		$ 0		$ 0	$ 0	$ 0

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Accrued liabilities [Abstract]
Accrued compensation/benefits	$ 394,117	$ 329,131
Accrued insurance payable	27,032	73,074
Accrued property taxes	2,475	0
Product rebates/returns	4	9
Total accrued liabilities	$ 423,628	$ 402,214

CONVERTIBLE DEBT (Details)

CONVERTIBLE DEBT (Details)		Jan. 11, 2016USD ($)	Apr. 15, 2015USD ($)$ / sharesshares	Mar. 31, 2016USD ($)Installment$ / sharesshares	Mar. 31, 2015USD ($)
Debt Instrument [Line Items]
Promissory note original issue discount				$ 19,000
Information relating to convertible notes payable [Abstract]
Initial Principal Amount				$ 550,000
Conversion Price (in dollars per share) | $ / shares	[1]			$ 0
Principal Balance				$ 215,000
Unamortized Debt Discount				19,000
Unamortized Debt Issuance Costs				13,559
Carrying Value				$ 182,441
Share issued for payment of principal (in shares) | shares				26,139,498
Future minimum payments relating to convertible notes payable [Abstract]
2,016				$ 215,000
2,017				0
2,018				0
2,019				0
2,020				0
April 2015 Note [Member]
Debt Instrument [Line Items]
Promissory note original issue discount				19,000
Information relating to convertible notes payable [Abstract]
Initial Principal Amount				$ 550,000
Interest Rate				10.00%
Maturity Date				Aug. 12, 2016
Conversion Price (in dollars per share) | $ / shares	[1]			$ 0
Principal Balance				$ 215,000
Unamortized Debt Discount				19,000
Unamortized Debt Issuance Costs				13,559
Carrying Value				182,441
Future minimum payments relating to convertible notes payable [Abstract]
2,016				215,000
2,017				0
2,018				0
2,019				0
2,020				0
Interest cost recognized				8,226	$ 0
Amortization of debt discount				13,015	0
Amortization of debt issuance costs				$ 9,368	$ 0
Inter Mountain Capital Corp [Member] | April 2015 Note [Member]
Debt Instrument [Line Items]
Promissory note original issue discount			$ 50,000
Purchase price for promissory note			500,000
Promissory note monthly installment payments			$ 45,000
Monthly installment payments commencing period			120 days
Notes prepayment percentage			120.00%
Notes repayment default amount			$ 100,000
Judgement stay period on note default			30 days
Increase in interest rate			18.00%
Warrant to purchase shares of common stock (in shares) | shares			194,118
Warrants exercise price (in dollars per share) | $ / shares			$ 0.85
Warrants expiration date			Apr. 30, 2020
Maximum number of days with in which registration statement should be declared			120 days
Number of days for registration effective for a period			180 days
Instalment payment remittance amount		$ 45,000
Promissory note accommodation fee		$ 25,000
Information relating to convertible notes payable [Abstract]
Initial Principal Amount			$ 550,000
Interest Rate			10.00%
Unamortized Debt Discount			$ 50,000
Share issued for payment of principal (in shares) | shares				694,056
Number of installments covered under the stock issuance | Installment				1
Number of installments remitted in cash | Installment				3
Inter Mountain Capital Corp [Member] | Conversion Condition One [Member] | April 2015 Note [Member]
Debt Instrument [Line Items]
Average percentage of three lowest volume weighted average price			80.00%
Number of trading days in conversion			20 days
Inter Mountain Capital Corp [Member] | Conversion Condition Two [Member] | April 2015 Note [Member]
Debt Instrument [Line Items]
Average percentage of three lowest volume weighted average price			70.00%
Number of trading days in conversion			20 days
Inter Mountain Capital Corp [Member] | Maximum [Member] | Conversion Condition Two [Member] | April 2015 Note [Member]
Debt Instrument [Line Items]
Weighted average price of common stock (in dollars per share) | $ / shares			$ 0.05
[1]	As part of the April 2015 Note, at our option, subject to certain volume, price and other conditions, the monthly installments of principle and interest due under the April 2015 Note may be paid in whole, or in part, in cash or in Common Stock. If the monthly installments are 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 per share.

EQUITY TRANSACTIONS (Details)

EQUITY TRANSACTIONS (Details)	Mar. 29, 2016USD ($)Investor$ / sharesshares	Apr. 30, 2016USD ($)	Mar. 31, 2016USD ($)$ / shares	Mar. 31, 2016USD ($)$ / sharesshares
Class of Stock [Line Items]
Common stock issued during period (in shares) | shares				26,139,498
March 2016 Offering [Member]
Class of Stock [Line Items]
Number of investors entered into stock purchase | Investor	15
Common stock issued during period (in shares) | shares	25,245,442
Aggregate shares of common stock issued upon exercise of warrants (in shares) | shares	25,245,442
Purchase price (in dollars per share) | $ / shares	$ 0.0713
Proceeds from issuance or sale of equity	$ 1,800,000
Percentage of discount on average closing price for share issue price	10.00%
Percentage of premium on average closing price for warrant exercise price	10.00%
Exercise price of warrants (in dollars per share) | $ / shares	$ 0.0871		$ 0.0871	$ 0.0871
Term of warrants	5 years
Proceeds from offering			$ 1,439,000	$ 1,800,000
Referral fee paid to european placement agent				$ 26,000
Percentage of referral fee to european placement agent				10.00%
March 2016 Offering [Member] | Subsequent Event [Member]
Class of Stock [Line Items]
Proceeds from offering		$ 361,000
March 2016 Offering [Member] | Michael I. Sacks [Member]
Class of Stock [Line Items]
Proceeds from offering				$ 1,000,000
March 2016 Offering [Member] | Bradley J. Sacks [Member]
Class of Stock [Line Items]
Proceeds from offering				19,000
March 2016 Offering [Member] | Terrance K. Wallberg [Member]
Class of Stock [Line Items]
Proceeds from offering				50,000
March 2016 Offering [Member] | Daniel G. Moro [Member]
Class of Stock [Line Items]
Proceeds from offering				$ 10,000

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - shares	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Common Stock [Abstract]
Common stock, shares issued (in shares)	62,974,431	36,834,933
Common stock, shares outstanding (in shares)	62,974,431	36,834,933
Common stock issued during period (in shares)	26,139,498
Number of shares of common stock issued for investors (in shares)	25,245,442
Inter-Mountain [Member]
Common Stock [Abstract]
Common stock issued for the cashless conversion of a warrant (in shares)	200,000
April 2015 Note [Member] | Inter-Mountain [Member]
Common Stock [Abstract]
Number shares of common stock issued for installment payments (in shares)	694,056
Series A Preferred Stock [Member]
Preferred Stock [Abstract]
Preferred stock, shares issued (in shares)	0
Preferred stock, shares outstanding (in shares)	0

STOCKHOLDERS' EQUITY, Warrants

STOCKHOLDERS' EQUITY, Warrants (Details)	3 Months Ended
	Mar. 31, 2016$ / sharesshares	Mar. 31, 2016$ / sharesshares	Mar. 29, 2016$ / shares
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward]
Balance (in shares)	1,774,193
Warrants issued (in shares)	25,245,442
Warrants exercised (in shares)	0
Warrants cancelled (in shares)	0
Balance (in shares)	27,019,635
Warrants, Weighted-Average Exercise Price [Abstract]
Balance (in dollars per share) | $ / shares	0.77
Warrants issued (in dollars per share) | $ / shares	0.09
Warrants exercised (in dollars per share) | $ / shares	0
Warrants cancelled (in dollars per share) | $ / shares	0
Balance (in dollars per share) | $ / shares	0.13
Warrant shares subject to expiration [Abstract]
Number of Warrant Shares of Common Stock Subject to Expiration (in shares)	1,774,193	27,019,635
March 2016 Offering [Member]
Warrant shares subject to expiration [Abstract]
Exercise price of warrants (in dollars per share) | $ / shares		$ 0.0871	$ 0.0871
June 13, 2016 [Member]
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward]
Balance (in shares)	35,000
Warrant shares subject to expiration [Abstract]
Number of Warrant Shares of Common Stock Subject to Expiration (in shares)	35,000	35,000
July 16, 2016 [Member]
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward]
Balance (in shares)	116,667
Warrant shares subject to expiration [Abstract]
Number of Warrant Shares of Common Stock Subject to Expiration (in shares)	116,667	116,667
July 28, 2016 [Member]
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward]
Balance (in shares)	34,722
Warrant shares subject to expiration [Abstract]
Number of Warrant Shares of Common Stock Subject to Expiration (in shares)	34,722	34,722
December 24, 2016 [Member]
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward]
Balance (in shares)	653,686
Warrant shares subject to expiration [Abstract]
Number of Warrant Shares of Common Stock Subject to Expiration (in shares)	653,686	653,686
March 14, 2018 [Member]
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward]
Balance (in shares)	660,000
Warrant shares subject to expiration [Abstract]
Number of Warrant Shares of Common Stock Subject to Expiration (in shares)	660,000	660,000
January 15, 2019 [Member]
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward]
Balance (in shares)	80,000
Warrant shares subject to expiration [Abstract]
Number of Warrant Shares of Common Stock Subject to Expiration (in shares)	80,000	80,000
April 30, 2020 [Member]
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward]
Balance (in shares)	194,118
Warrant shares subject to expiration [Abstract]
Number of Warrant Shares of Common Stock Subject to Expiration (in shares)	194,118	194,118
March 30, 2021 [Member]
Warrants and Number of Shares of Common Stock Subject to Exercise [Roll Forward]
Balance (in shares)	25,245,442
Warrant shares subject to expiration [Abstract]
Number of Warrant Shares of Common Stock Subject to Expiration (in shares)	25,245,442	25,245,442

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - $ / shares		3 Months Ended	12 Months Ended
		Mar. 31, 2016	Dec. 31, 2015
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)		31,736,899	5,373,484
Conversion price per share (in dollars per share)	[1]	$ 0
Warrants to Purchase Common Stock [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)		27,019,635	1,774,193
Stock Options to Purchase Common Stock [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)		1,409,571	1,664,573
Common Stock Issuable upon the Assumed Conversion of Payments Due under our Promissory Note from April 2015 [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)	[2]	3,307,693	1,934,718
Percentage of weighted average prices of shares of common stock		80.00%
Preceding number of trading days to calculate weighted average common stock price		20 days
Declined percentage of weighted average prices of shares of common stock		70.00%
Weighted average price of shares of common stock, Maximum (in dollars per share)		$ 0.05
Conversion price per share (in dollars per share)		$ 0.06
[1]	As part of the April 2015 Note, at our option, subject to certain volume, price and other conditions, the monthly installments of principle and interest due under the April 2015 Note may be paid in whole, or in part, in cash or in Common Stock. If the monthly installments are 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 per share.
[2]	As part of the April 2015 Note, at our option, subject to certain volume, price and other conditions, the monthly installments of principle and interest due under the April 2015 Note may be paid in whole, or in part, in cash or in Common Stock. If the monthly installments are 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 per share. For the purposes of this Table, we have assumed that all outstanding monthly installments of principal and interest will be paid in Common Stock based on a price of $0.06 per share (80% of the average of the three lowest volume weighted average prices of the shares of Common Stock during the preceding twenty trading days prior to March 31, 2016), subject to certain ownership limitations.

SHARE BASED COMPENSATION (Detai

SHARE BASED COMPENSATION (Details) - USD ($)	Jun. 05, 2014	Jun. 13, 2013	Jun. 14, 2012	Jun. 15, 2010	Dec. 17, 2009	May. 08, 2007	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2006
Stock Options [Member]
Options, Outstanding [Roll Forward]
Outstanding, beginning of period (in shares)							1,664,573
Granted (in shares)							0
Forfeited/cancelled (in shares)							(255,002)
Exercised (in shares)							0
Outstanding, end of period (in shares)							1,409,571
Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding, beginning of period (in dollars per share)							$ 1.73
Granted (in dollars per share)							0
Forfeited/cancelled (in dollars per share)							2.83
Exercised (in dollars per share)							0
Outstanding, end of period (in dollars per share)							$ 1.53
Nonvested Awards, unearned share-based compensation [Abstract]
Unearned share-based compensation expense							$ 78,000
Unearned share-based compensation, recognition period							18 months
Stock Options [Member] | Maximum [Member]
Additional disclosures [Abstract]
Contractual term							10 years
Restricted Stock [Member]
Additional disclosures [Abstract]
Granted (in shares)							0	0
Restricted Stock [Member] | Minimum [Member]
Additional disclosures [Abstract]
Vesting period							2 years
Restricted Stock [Member] | Maximum [Member]
Additional disclosures [Abstract]
Vesting period							5 years
2006 Equity Incentive Plan [Member]
Additional disclosures [Abstract]
Number of shares authorized (in shares)							2,800,000		133,333
Number of additional shares authorized (in shares)	1,000,000	600,000	400,000	200,000	200,000	266,667
Number of shares available for grant (in shares)							1,320,983
2006 Equity Incentive Plan [Member] | Stock Options [Member]
Additional disclosures [Abstract]
Number of options granted to date (in shares)							2,061,167
2006 Equity Incentive Plan [Member] | Stock Options [Member] | Minimum [Member]
Additional disclosures [Abstract]
Vesting period							1 year
2006 Equity Incentive Plan [Member] | Stock Options [Member] | Maximum [Member]
Additional disclosures [Abstract]
Vesting period							4 years
2006 Equity Incentive Plan [Member] | Restricted Stock [Member]
Additional disclosures [Abstract]
Number of restricted shares granted to date (in shares)							68,616
2006 Equity Incentive Plan [Member] | Restricted Stock [Member] | Minimum [Member]
Additional disclosures [Abstract]
Vesting period							6 months
2006 Equity Incentive Plan [Member] | Restricted Stock [Member] | Maximum [Member]
Additional disclosures [Abstract]
Vesting period							5 years

SHARE BASED COMPENSATION, Alloc

SHARE BASED COMPENSATION, Allocated Compensation expense (Details) - Stock Options [Member] - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 27,867	$ 75,348
Research and Development [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	8,670	18,612
Selling, General and Administrative [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 19,197	$ 56,736

SHARE BASED COMPENSATION, Stock

SHARE BASED COMPENSATION, Stock options grant outstanding and exercisable (Details)	3 Months Ended
	Mar. 31, 2016$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock Options Outstanding (in shares) | shares	1,409,571
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares	$ 1.53
Options Outstanding, Weighted Average Remaining Contractual Life in Years	6 years 6 months
Stock Options Exercisable (in shares) | shares	692,071
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares	$ 2.22
Exercise Price Range 1 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock Options Outstanding (in shares) | shares	807,500
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares	$ 0.33
Options Outstanding, Weighted Average Remaining Contractual Life in Years	7 years
Stock Options Exercisable (in shares) | shares	565,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares	$ 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) | shares	550,000
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares	$ 1.15
Options Outstanding, Weighted Average Remaining Contractual Life in Years	6 years 2 months 12 days
Stock Options Exercisable (in shares) | shares	75,000
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares	$ 1.15
Exercise Price Range 3 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Stock Options Outstanding (in shares) | shares	52,071
Options Outstanding, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares	$ 24.20
Options Outstanding, Weighted Average Remaining Contractual Life in Years	1 year 4 months 24 days
Stock Options Exercisable (in shares) | shares	52,071
Options Exercisable, Weighted Average Exercise Price per Share (in dollars per share) | $ / shares	$ 24.20

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Promissory Note April 2015 [Member]
Liabilities [Abstract]
Convertible note payable	$ 215,000	$ 370,000

COMMITMENTS AND CONTINGENCIES55

COMMITMENTS AND CONTINGENCIES (Details)		Dec. 24, 2015EUR (€)€ / sharesshares	Mar. 31, 2016USD ($)shares	Mar. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)shares	Mar. 16, 2015USD ($)	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Mar. 31, 2014USD ($)	May. 13, 2016USD ($)	Feb. 22, 2013USD ($)	Jan. 31, 2015USD ($)	Mar. 31, 2011USD ($)	Dec. 24, 2015$ / shares	Dec. 24, 2015EUR (€)shares	Dec. 31, 2012USD ($)	Dec. 31, 2011USD ($)	Mar. 07, 2008USD ($)
Future minimum lease payments [Abstract]
2016 (Nine months)			$ 89,880
2,017			119,840
2,018			28,858
2,019			0
2,020			0
Total			238,578
Rent expense for operating lease			29,960	$ 31,165
Related Party Obligations [Abstract]
Outstanding accounts receivable			$ 0			$ 2,805
Concentration risk, percentage			100.00%	100.00%
License purchase and termination agreement [Abstract]
Issuance of common stock (in shares) | shares			62,974,431			36,834,933
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred [Abstract]
Deferred compensation liability			$ 42,282			$ 383,564		$ 150,000	$ 150,000								$ 150,000	$ 150,000
Deferred compensation			575,846			533,564
Compensation accrued liabilities			302,263			259,981
Compensation accounts payable			273,583			273,583
Milestone payments [Line Items]
Future milestone obligations			4,750,000
Kerry P. Gray [Member]
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred [Abstract]
Deferred compensation liability	[1],[2],[3]		0			275,153		150,000	150,000								150,000	150,000
Deferred compensation	[1],[2],[3]		425,153
Repayment of temporarily deferred compensation								269,986	312,500
Proceeds from issuance of common stock under March 2013 offering								100,000	300,000
Temporary advance of working capital						37,300
Kerry P. Gray [Member] | Temporarily Deferred Compensation [Member]
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred [Abstract]
Deferred compensation						275,153		150,000	582,486
Kerry P. Gray [Member] | President [Member]
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred [Abstract]
Deferred compensation						51,770		62,500
Kerry P. Gray [Member] | Board of Directors Chairman [Member]
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred [Abstract]
Deferred compensation						186,083		87,500
Terrance K. Wallberg [Member]
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred [Abstract]
Deferred compensation liability			25,897			53,540		0	0								0	0
Deferred compensation			79,437
Other Employees [Member]
Summary of compensation earned, compensation paid in cash, and compensation temporarily deferred [Abstract]
Deferred compensation liability			16,385			54,871		$ 0	$ 0								$ 0	$ 0
Deferred compensation			71,256
Altrazeal Trading GmbH [Member] | Licensing Agreements [Member]
License purchase and termination agreement [Abstract]
Percentage of ownership interest																25.00%
Transfer fee | €		€ 1,570,271
Issuance of common stock (in shares) | shares																4,441,606
Aggregate shares of common stock issued upon exercise of warrants (in shares) | shares																444,161
Warrants exercise price (in dollars per share) | $ / shares															$ 0.68
Term of warrants		1 year
Deduction in inventory payment (in dollars per share) | € / shares		€ 4.20
Number of days closing a registration statement		20 days
Common stock reissued (in shares) | shares		2,500,000
Altrazeal Trading GmbH [Member] | Licensing Agreements [Member] | Maximum [Member]
License purchase and termination agreement [Abstract]
Inventory payments | €																€ 88,834
Altrazeal Distributors [Member] | Revenue [Member]
Related Party Obligations [Abstract]
Related party sales			$ 0	$ 282,000
Concentration risk, percentage			0.00%	96.00%
Altrazeal Distributors [Member] | Accounts Receivable [Member]
Related Party Obligations [Abstract]
Outstanding accounts receivable			$ 0			$ 3,000
Concentration risk, percentage			0.00%			3.00%
IPMD GmbH [Member] | Licensing Agreements [Member]
License purchase and termination agreement [Abstract]
Transfer fee | €		€ 703,500
Issuance of common stock (in shares) | shares																2,095,241
Aggregate shares of common stock issued upon exercise of warrants (in shares) | shares																209,525
Warrants exercise price (in dollars per share) | $ / shares															$ 0.68
Term of warrants		1 year
Office and Laboratory Space [Member]
Operating Leased Assets [Line Items]
Minimum monthly lease obligation					$ 9,436		$ 9,379			$ 9,193		$ 9,776		$ 9,330
Office Equipment [Member]
Operating Leased Assets [Line Items]
Minimum monthly lease obligation													$ 744
Office Equipment [Member] | Subsequent Event [Member]
Operating Leased Assets [Line Items]
Minimum monthly lease obligation											$ 551
Access Pharmaceuticals [Member] | Annual Sales, Certain Products [Member] | Minimum [Member]
Milestone payments [Line Items]
Milestone for payment			$ 20,000,000
Access Pharmaceuticals [Member] | Annual Sales, Certain Products [Member] | Maximum [Member]
Milestone payments [Line Items]
Milestone for payment			40,000,000
Access Pharmaceuticals [Member] | Annual Sales, Any One Certain Product [Member]
Milestone payments [Line Items]
Milestone for payment			20,000,000
Access Pharmaceuticals [Member] | Cumulative Sales, Certain Products [Member] | Minimum [Member]
Milestone payments [Line Items]
Milestone for payment			50,000,000
Access Pharmaceuticals [Member] | Cumulative Sales, Certain Products [Member] | Maximum [Member]
Milestone payments [Line Items]
Milestone for payment			$ 100,000,000
ProStrakan Ltd [Member]
Milestone payments [Line Items]
Royalty percentage			30.00%																30.00%
ProStrakan Ltd [Member] | Maximum [Member]
Milestone payments [Line Items]
Future milestone obligations			$ 1,400,000																$ 1,400,000
[1]	During 2014, Mr. Gray temporarily deferred compensation of $150,000 which consisted of $62,500 earned as salary compensation for his duties as President of the Company and $87,500 for his duties as Chairman of the Executive Committee of the Company's Board of Directors. During 2014, Mr. Gray was also repaid $269,986 of temporarily deferred compensation, of which $100,000 was used by Mr. Gray for funding required pursuant to a Securities Purchase Agreement, dated March 14, 2013 (the "March 2013 Offering"). Prior to 2014, over a three year period Mr. Gray temporarily deferred, at various times, aggregate compensation of $582,486 and during the same time period was also repaid $312,500 of temporarily deferred compensation, of which $300,000 was used by Mr. Gray for funding required pursuant to the March 2013 Offering.
[2]	During 2015, Mr. Gray temporarily deferred compensation of $275,153 which consisted of $51,770 earned as salary compensation for his duties as President of the Company, $186,083 for his duties as Chairman of the Executive Committee of the Company's Board of Directors, and $37,300 as a temporary advance of working capital.
[3]	On November 19, 2015, Mr. Gray resigned as the Company's President and Chief Executive Officer and on February 18, 2016 resigned as a director for the Company.

LEGAL PROCEEDINGS (Details)

LEGAL PROCEEDINGS (Details)	Oct. 31, 2012	Mar. 31, 2016
LEGAL PROCEEDINGS [Abstract]
Maximum percentage of material proceedings/interest		5.00%
ORADISC GmbH [Member]
Schedule of Equity Method Investments [Line Items]
Time period granted to utilize OraDisc erodible film technology	24 months
OraDisc erodible film technology, expiry date		Dec. 31, 2015

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	Mar. 29, 2016USD ($)Investor$ / sharesshares	Apr. 30, 2016USD ($)	Mar. 31, 2016USD ($)	Mar. 31, 2016USD ($)shares
Subsequent Event [Line Items]
Common stock issued during period (in shares) | shares				26,139,498
March 2016 Offering [Member]
Subsequent Event [Line Items]
Number of investors entered into stock purchase | Investor	15
Common stock issued during period (in shares) | shares	25,245,442
Aggregate shares of common stock issued upon exercise of warrants (in shares) | shares	25,245,442
Purchase price (in dollars per share) | $ / shares	$ 0.0713
Proceeds from issuance or sale of equity | $	$ 1,800,000
Proceeds from offering | $			$ 1,439,000	$ 1,800,000
March 2016 Offering [Member] | Subsequent Event [Member]
Subsequent Event [Line Items]
Proceeds from offering | $		$ 361,000