EAU (EAUI) 10-K 8 Apr 15 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Mar. 30, 2015	Jun. 30, 2014
Document And Entity Information
Entity Registrant Name	EAU TECHNOLOGIES, INC.
Entity Central Index Key	1170816
Document Type	10-K
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$734,883
Entity Common Stock, Shares Outstanding		28,575,371
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014

BALANCE_SHEETS

BALANCE SHEETS (USD $)	Dec. 31, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash	$259,805	$2,654
Accounts receivable, net	56,296	29,705
Accounts receivable - related party, net	1,500	1,500
Prepaid expense	47,438	60,210
Inventory, net	72,290	653,967
Total current assets	437,329	748,036
PROPERTY AND EQUIPMENT, accumulated depreciation of $120,721	0	0
OTHER ASSETS
Intellectual property, net	138,101	123,547
Total other assets	138,101	123,547
Total assets	575,430	871,583
CURRENT LIABILITIES
Accounts payable	161,787	298,613
Accounts payable - related party	8,454	27,010
Accrued expenses	44,694	41,098
Accrued interest	2,611,490	2,043,671
Warranty reserve	140,000	160,000
Advance deposits on machine orders	542,793	554,618
Advance deposits on machine orders - related party	413,595	433,540
Short term notes payable - related party	1,290,000	130,000
Unsecured short term advances - related party	5,000	5,000
Convertible note payables - related party	4,986,827	4,986,827
Total current liabilities	10,204,640	8,680,377
Total Liabilities	10,204,640	8,680,377
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $.0001 par value; 50,000,000 shares authorized; 28,575,371 and 28,575,371 issued and outstanding, respectively	2,858	2,858
Additional paid in capital	45,726,127	45,681,729
Accumulated deficit	-55,358,195	-53,493,381
Total stockholders' equity (deficit)	-9,629,210	-7,808,794
Total liabilities and stockholders' equity (deficit)	$575,430	$871,583

BALANCE_SHEETS_Parenthetical

BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Assets
Accumulated Depreciation on Property and Equipment	$120,721	$120,721
Stockholders Equity
Common Stock shares par value	$0.00	$0.00
Common Stock shares Authorized	50,000,000	50,000,000
Common Stock shares Issued	28,575,371	28,575,371
Common Stock shares Outstanding	28,575,371	28,575,371

STATEMENTS_OF_OPERATIONS

STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
NET REVENUES - RELATED PARTY	$38,234	$132,574
NET REVENUES	953,030	1,851,475
TOTAL REVENUES	991,264	1,984,049
COST OF GOODS SOLD	879,949	1,391,741
GROSS PROFIT	111,315	592,308
OPERATING EXPENSES
Depreciation and amortization	1,356	1,356
Research and development	0	18,438
Selling, general and administrative	1,400,534	1,677,616
Total operating expenses	1,401,890	1,697,410
LOSS FROM OPERATIONS	-1,290,575	-1,105,102
OTHER INCOME (EXPENSE)
Interest expense	-610,915	-561,395
Interest income	76	171
Rental income	9,600	4,800
Gain on settlement of debt	27,000	0
Impairment of leased equipment	0	-301,474
Total other income (expense)	-574,239	-857,898
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES	-1,864,814	-1,963,000
PROVISION FOR INCOME TAXES	0	0
NET (LOSS)	($1,864,814)	($1,963,000)
NET (LOSS) PER SHARE	($0.07)	($0.07)
WEIGHTED AVERAGE OF SHARES OUTSTANDING - BASIC AND FULLY DILUTED	28,575,371	28,575,371

Statement_STATEMENTS_OF_STOCKH

Statement - STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (USD $)	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2012	$2,858	$45,557,946	($51,530,381)	($5,969,577)
Beginning Balance, Shares at Dec. 31, 2012	28,575,371
Issuance and vesting of options and warrants for services	0	97,283	0	97,283
Issuance of warrants to related party		26,500		26,500
Net loss for the year ended	0	0	-1,963,000	-1,963,000
Ending Balance, Amount at Dec. 31, 2013	2,858			-7,808,794
Ending Balance, Shares at Dec. 31, 2013	28,575,371
Vesting of options for services		1,936		1,936
Issuance and vesting of options and warrants for services		42,462		42,462
Net loss for the year ended			-1,864,814	-1,864,814
Ending Balance, Amount at Dec. 31, 2014	$2,858			($9,629,210)
Ending Balance, Shares at Dec. 31, 2014	28,575,371	45,726,127	-55,358,195

STATEMENTS_OF_CASH_FLOWS

STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss)	($1,864,814)	($1,963,000)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	1,356	1,356
Warrants and options vested or issued for services	1,936	97,283
Discount of note payable	42,462	67,652
Gain on settlement of debt	-27,000	0
Impairment of leased equipment	0	301,474
Changes in operating assets and liabilities:
(Increase) in accounts receivable	-26,591	-27,205
Decrease in accounts receivable - related party	0	4,000
(Increase) decrease in pre-paid expense	12,772	-21,176
Decrease in inventory	581,677	817,473
Decrease in deposits	0	144,273
Increase (decrease) in accounts payable	-128,382	38,387
(Decrease) in accrued expenses	3,596	-8,805
Increase in accrued interest	567,819	483,249
Increase in warranty reserve	-20,000	15,000
(Decrease) in advance deposits for machine orders - related party	-19,945	-81,843
Increase (decrease) in advance deposits on machine orders	-11,825	-1,069,440
Net cash used in operating activities	-886,939	-1,201,322
CASH FLOWS FROM INVESTING ACTIVITIES
Intellectual property additions	-15,910	-21,677
Disposal of intellectual property	0	34,005
Net cash provided by (used) in investing activities	-15,910	12,328
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of notes payable - related party	1,160,000	438,300
Net cash provided by financing activities	1,160,000	438,300
NET INCREASE (DECREASE) IN CASH	257,151	-750,694
CASH, beginning of period	2,654	753,348
CASH, end of period	259,805	2,654
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for: Interest paid	634	10,494
Cash paid during the period for: Income Taxes paid	$0	$0

1_BUSINESS_DESCRIPTION_AND_SIG

1. BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES	Business Description – EAU Technologies, Inc. (the “Company” or “EAU”), was incorporated on March 6, 2000, under the laws of the state of Delaware and commenced operations in September, 2000 as Primacide, Inc.  On May 10, 2001, the Company changed its name from Primacide, Inc., to Electric Aquagenics Unlimited, Inc.  On January 17, 2007 the Company changed its name from Electric Aquagenics Unlimited, Inc. to EAU Technologies, Inc.  The Company is in the business of developing, manufacturing and marketing equipment that uses water electrolysis to create fluids. These fluids have various commercial applications and may be used in commercial food processing organic or non-organic agricultural and consumer products that clean, disinfect, remediate, hydrate and moisturize.  These products, which the Company intends to market nationally and internationally, are for commercial and residential use. The Company’s financial statements are presented in accordance with accounting principles generally accepted in the United States of America.
	Cash and Cash Equivalents - For purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents.
	Receivables – Receivables represent valid claims against debtors for sales or other charges arising on or before the balance-sheet date and are reduced to their estimated net realizable value.  The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses.  The Company charges off uncollectible accounts receivable when management estimates no possibility of collecting the related receivable.
	Inventory – Inventory, consisting primarily of finished goods, is stated at the lower of cost or market; cost is determined on first-in, first-out (FIFO) method.
	Property and Equipment, and Depreciation – Property and equipment are recorded at historical cost.  Expenditures for additions and major improvements that extend the life of the asset are capitalized, whereas the cost of maintenance and repairs are expensed as incurred.  Depreciation is computed on the straight-line method over the estimated useful lives of the assets ranging from three to seven years.  Depreciation expense for the years ended December 31, 2014 and 2013 was $0 and $0, respectively.  In September 2005, the Company pledged all the assets of the Company as collateral for the Senior Convertible Note, payable to Water Science, a related party.
	Long-Lived Assets – Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.  Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition.  Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the asset.  Long-lived assets are reported at the lower of carrying or fair value less costs to sell.
	Fair Value of Financial Instruments – The carrying values of cash on hand, receivables, payables and accrued expenses approximate their fair value due to the short period to maturity of these instruments.
	Recognition of Sales and Costs of Goods Sold – The Company records sales of its products based upon the terms of the contract; when title passes to its customers; and, when collectability is reasonably assured.  The Company provides an allowance for sales returns based on current and historical experience.  Cost of goods sold consists of the purchase price of products sold including inbound shipping charges.
	Sales Taxes - In accordance with FASB ASC 605-45, formerly EITF Issue No. 06-3, How Taxes Collected From Customers and Remitted to Government Authorities Should be Presented in the Income Statement, the Company accounts for sales taxes imposed on its good and services on a gross basis in the statements of operations.  For the years ended December 31, 2014 and 2013, respectively, $0 and $0 of sales taxes has been reported in revenues.
	Warranties – The Company warrants its products against defects in materials and workmanship for a period of up to three years.  The Company has accrued a reserve for these anticipated future warranty costs.
	Income Taxes – Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.
	When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.  Tax positions taken are not offset or aggregated with other positions.  Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.  The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.
	Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statement of income.
	Accounting Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	Research and Development – Research and development costs are expensed as incurred. Research and development expenses for the years ended December 31, 2014 and 2013 were approximately $0 and $18,438, respectively.
	Patents, Trademarks and Intellectual Property – Patents, trademarks and intellectual property, consisting of trade secrets and formulas are recorded in accordance with Accounting Standards Codification 350, Intangibles – Goodwill and Other (ASC 350), (formerly Statement of Financial Accounting Standards “SFAS” No. 142, "Goodwill and Other Intangible Assets").  As such, patents and trademarks are initially measured based on their fair values.
	Loss Per Share – The Company follows the provisions of ASC Topic 260 "Earnings Per Share".  Earnings per share (EPS) are computed based on the weighted average number of shares actually outstanding.  No changes in the computation of diluted earnings per share amounts are presented because warrants granted would have been anti-dilutive due to the Company’s net reported loss.
	Stock Based Compensation - Stock-based compensation is calculated according to FASB ASC Topic 718, Compensation — Stock Compensation, which requires a fair-value-based measurement method to account for stock-based compensation.  The Company has modified the price of stock options to employees and directors.  The Company accounts for the incremental value of the modified options based on the excess of the fair value of the modified award based on current circumstances.  The modifications made to the Company’s equity awards did not result in significant incremental compensation costs, either individually or in the aggregate.
	Reclassification – Certain amounts in the accompanying financial statements have been reclassified to conform to current year presentation.  These reclassifications had no material effect on our financial statements.
	Recently   Enacted   Accounting   Standards
	In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In connection with each annual and interim period, management is required to assess whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the issuance date, and to provide related footnote disclosures in certain circumstances. The new guidance is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its financial position, results of operations and disclosures.
	In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Accounting Standard Codification 605 - Revenue Recognition” and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2016. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is currently assessing the impact ASU 2014-09 will have on its financial position and results of operations.
	Other recently issued ASUs were assessed and determined to be either not applicable or are expected to have a minimal impact on the Company’s consolidated financial position and results of operations.

2_CONCENTRATIONS_OF_CREDIT_RIS

2. CONCENTRATIONS OF CREDIT RISK	12 Months Ended
	Dec. 31, 2014
Concentrations Of Credit Risk
2. CONCENTRATIONS OF CREDIT RISK	The Company occasionally maintains cash balances in excess of the $250,000 federally insured limit.  To date, the Company has not incurred, and the Company’s management does not currently expect to incur, any losses associated with its cash balances.
	The Company extends unsecured credit to its customers in the normal course of business.  Periodically, the Company performs credit evaluations of its customers’ financial condition for determination of doubtful accounts.

3_TRADE_ACCOUNTS_RECEIVABLE

3. TRADE ACCOUNTS RECEIVABLE	12 Months Ended
	Dec. 31, 2014
Receivables [Abstract]
3. TRADE ACCOUNTS RECEIVABLE	Trade accounts receivable consist of the following at December 31:
		2014		2013
	Trade accounts receivable	$	56,296	$	29,705
	Trade accounts receivable – related party		1,500		1,500
	Less allowance for doubtful accounts		-		-
		$	57,796	$	31,205
	During 2014, sales to two customers represented 78% of our total revenues.  During 2013, sales to one customer represented approximately 75% of our revenues.  Bad debt expense for the years ended December 31, 2014 and 2013 was $0 and $0, respectively.

4_INVENTORIES

4. INVENTORIES	12 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
4. INVENTORIES	The composition of inventories is as follows at December 31:
		2014			2013
	Finished goods	$	-		$	536,207
	Raw materials		462,927			634,015
	Allowance for obsolete inventory		(390,637	)		(516,255	)
		$	72,290		$	653,967

5_PROPERTY_AND_EQUIPMENT

5. PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
5. PROPERTY AND EQUIPMENT	Property and equipment consisted of the following at December 31:
		2014			2013
	Machinery and equipment	$	41,301		$	41,301
	Furniture and fixtures		47,284			47,284
	Leasehold improvements		32,136			32,136
	Total property and equipment		120,721			120,721
	Less: accumulated depreciation		(120,721	)		(120,721	)
	Property and equipment, net	$	-		$	-
	Depreciation expense for the year ended December 31, 2014 and 2013 was $0 and $0, respectively.

6_INTANGIBLE_ASSETS

6. INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
6. INTANGIBLE ASSETS	Patents, trademarks and intellectual property, consisting of trade secrets and formulas are recorded in accordance with Accounting Standards Codification 350, Intangibles – Goodwill and Other (ASC 350). As such, patents are initially measured based on their fair values.  The patents which have been granted are being amortized over a period of 20 years.  Patents which are pending or are being developed are not amortized until a patent has been issued.  The amount of intangible assets, consisting of patents, as of December 31, 2014 is as follows:
		2014			2013
	Gross amount of patents	$	145,529		$	129,618
	Less amount of accumulated amortization		(7,428	)		(6,071	)
	Net value of patents	$	138,101		$	123,547
	Amortization expense for the fiscal years ended December 31, 2014 and 2013 was $1,357 and $1,357, respectively.  During the year ended December 31, 2013, the Company abandoned a patent application that was not permitted by the U.S. Patent Office and wrote off $34,005 of accrued costs.
	The estimated amortization expense, based on current intangible balances, for the next fiscal years beginning January 1, 2015 is as follows:
	2015	$	1,357
	2016	$	1,357
	2017	$	1,357
	2018	$	1,357
	2019	$	1,357

7_RELATED_PARTY_TRANSACTIONS

7. RELATED PARTY TRANSACTIONS	12 Months Ended
	Dec. 31, 2014
Related Party Transactions [Abstract]
7. RELATED PARTY TRANSACTIONS	Sales to Affiliates – In September 2005, Water Science, a related party, paid to the Company $1,000,000 for the exclusive rights to sell our products in South America and Mexico.  The agreement allows for a pro-rated refund during the first 5 years under certain circumstances.  The Company recognizes income from this agreement over the first 5 years of the agreement.  The Company fully recognized the exclusivity rights during 2010.  This agreement also gives Water Science the rights to purchase machinery from the Company at cost plus 25 percent.  The Company had sales of $38,234 and $132,574 during the years ended December 31, 2014 and 2013, respectively.  The Company has received and recorded $413,595 and $433,540 in advance deposits from Water Science on machine orders at December 31, 2014 and 2013, respectively.
	Notes Payable – See Note 9 for disclosure of related party Notes Payable.
	Advances – Periodically throughout the year, the Company advances officers and employees cash for certain reimbursable expenses.  As of December 31, 2014 and 2013, the Company had advances to employees or officers in the amount of $1,500 and $1,500, respectively.
	Employee Options – In December 2007, the Company granted 480,260 options to various employees.  The options are for a term of ten (10) years and have an exercise price of $1.30 per share.  The options vested over a period of four (4) years.   The options were valued using the Binomial model with the following assumptions:  risk free rate of 4.64%, volatility at 87.06% and the stock price at $1.30.  The value of each option was approximately $1.13.  In May 2009, 36,000 options were cancelled due to the departure of an employee.  The exercise price per option was adjusted to $0.31 by the Company in September 2010.  The options were fully vested as of December 31, 2012.
	In November 2007, the Company granted 530,000 options to Douglas Kindred, in connection with the appointment of Mr. Kindred as Chief Technology Officer.  The options are for a term of ten (10) years and have an exercise price of $1.30 per share.  The options vested over a period of four (4) years.   The options were valued using the Binomial model with the following assumptions:  risk free rate of 4.28%, volatility at 85.99% and the stock price at $1.01.  The exercise price per option was adjusted to $0.31 by the Company in September 2010.  The options were fully vested as of December 31, 2012.
	Director Options – See Note 10 for disclosure about grants of director stock options.

8_WARRANTY_RESERVE

8. WARRANTY RESERVE	12 Months Ended
	Dec. 31, 2014
Guarantees [Abstract]
8. WARRANTY RESERVE	The Company warrants its products against defects in materials and workmanship for a period of three years.  The Company reviews the historical experience of failure rates and estimates the rate of warranty claims that will be made and has accrued a warranty reserve for these anticipated future warranty costs.  If actual results differ from the estimates, the Company would adjust the estimated warranty liability.  Changes in the warranty reserve are as follows:
		For the Year Ended December 31,
		2014			2013
	Warranty reserve at beginning of period	$	160,000		$	145,000
	Costs accrued for additional warranties		1,001			16,864
	Service obligations honored		(1,001	)		(1,864	)
	Reduction in accrued estimate		(20,000	)		-
	Warranty reserve at end of period	$	140,000		$	160,000

9_NOTES_PAYABLE_RELATED_PARTIE

9. NOTES PAYABLE - RELATED PARTIES	12 Months Ended
	Dec. 31, 2014
Debt Disclosure [Abstract]
9. NOTES PAYABLE - RELATED PARTIES	At various times throughout 2014, funds totaling $1,160,000 were advanced to the Company by Mr. Ullrich, a related party.  In April 2015, the Company entered into a loan agreement with this related party which formalized those advances into a note payable.  This balance has been included on the balance sheet in related party notes payable as of December 31, 2014.  The loan agreement provides for interest at a rate of 10% annually and will mature on November 30, 2015.  The outstanding balance under the Loan Agreement is convertible into shares of the Company’s common stock at $0.31 per share and no principal or interest payments are due until maturity.  The Loan Agreement provides that accrued interest and the outstanding principal balance can be prepaid, in whole or in part, at any time without premium or penalty. In connection with the negotiation of the Loan Agreement, the Company also granted a warrant to purchase up to 1,160,000 shares of the Company’s common stock at an exercise of $0.31 per share. The warrant expires in April 2020.
	In April 2014, the Company entered into a loan agreement with Mr. Ullrich, a related party, which formalized $303,300 in advances into a note payable.  The loan agreement provides for interest at a rate of 10% annually and has been extended to mature on November 30, 2015.  The outstanding balance under the Loan Agreement is convertible into shares of the Company’s common stock at $0.31 per share and no principal or interest payments are due until maturity.  The Loan Agreement provides that accrued interest and the outstanding principal balance can be prepaid, in whole or in part, at any time without premium or penalty. In connection with the negotiation of the Loan Agreement, the Company also granted a warrant to purchase up to 303,300 shares of the Company’s common stock at an exercise of $0.31 per share. The warrant expires in April, 2019.
	In May 2013, the Company entered into Promissory Notes (“Promissory Notes”) with Peter Ullrich and Theodore Jacoby, related parties.  Mr. Ullrich agreed to lend the Company $80,000 and Mr. Jacoby agreed to lend the Company $50,000.  The Promissory Notes provide for interest at a rate of 10% annually.  No principal or interest payments are due until maturity.  The Promissory Notes provide that accrued interest and the outstanding principal balance can be prepaid, in whole or in part, at any time without premium or penalty.  In November 2013, the Company entered into Amended Promissory Note agreements to extend the notes from November 2013 to May 2014. In May 2014, the Promissory Notes were again extended to May 2015.
	In January 2013, the Company entered into a loan agreement with a related party.  The principal amount of the Note is $1,325,000.  The Loan Agreement provides for interest at a rate of 10% annually and will mature on November 30, 2013.  The outstanding balance under the Loan Agreement is convertible into shares of the Company’s common stock at $0.31 per share and no principal or interest payments are due until maturity.  The Loan Agreement provides that accrued interest and the outstanding principal balance can be prepaid, in whole or in part, at any time without premium or penalty. In connection with the negotiation of the Loan Agreement, the Company also granted a warrant to purchase up to 1,325,000 shares of the Company’s common stock at an exercise of $0.31 per share. The warrant expires on January 31, 2018.  Due to the warrants issued in connection with the loan, the Company recognized a debt discount of $26,500 in interest expense.  The Company also recognized approximately $26,500 in interest expense related to the amortization of this debt discount.
	In September 2005, the Company entered into a Senior Convertible Note (the “Note”) with Water Science, a related party, in exchange for $3,000,000. Pursuant to the debt agreement, the Note accrues interest at the rate of 3% per annum and was initially due, principal and interest together, on September 16, 2008.  In June 2008, Water Science agreed to extend the maturity date of the Note to March 16, 2009.  In March 2009, the Company and Water Science agreed to extend the maturity date to September 16, 2009 and increase the interest rate to 10%.  No principal or interest payments need to be paid during the loan period.  In October 2008, as part of a new financing agreement, the Company amended the Note and changed the conversion rate from $3.00 per share to $1.00 per share.
	The Note may be converted into 3,000,000 shares of the Company’s $0.0001 par value common stock prior to the maturity date, and at any time, by the holder at a price per share equal to $1.00 per share, subject to certain other conversion adjustments.  The Company granted a security interest in all of the Company’s assets as collateral for the loan.  In connection with the original issuance of the Note, the Company granted a three year warrant to purchase up to two million shares of the Company’s $0.0001 par value common stock with an exercise price of $2.76 per share.
	In August 2009 and October 2010, the Company entered into agreements with Water Science, a related party, to extend the maturity dates of the Note from September 16, 2009 to November 1, 2010 and to December 1, 2011, respectively.
	In December 2011, the Company and Water Science agreed to again extend the maturity date of the Note this time to November 30, 2013.
	In December 2011, the Company entered into an agreement to convert $358,527 of accrued interest into a new convertible note.  Simple interest accrued at a rate of 10% per annum on the unpaid principal amount outstanding and the loan was set to mature on November 30, 2013, at which time accrued interest and the outstanding principal balance shall be due.  The agreement contains an optional conversion right, whereby the Lender may convert all or any portion of the outstanding principal and interest due into shares of the Company’s common stock at a price per share equal to $1.00 per share.  In connection with the issuance of the convertible note, the Company granted a five year warrant to purchase up to 358,527 shares of the Company’s $0.0001 par value common stock with an exercise price of $0.31 per share.
	In March 2015, the Company entered into agreements with Water Science and Mr. Ullrich to extend the Senior Convertible Note, the $358,527 Note and the $1,325,000 Note until November 30, 2015.

10_COMMON_STOCK

10. COMMON STOCK	12 Months Ended
	Dec. 31, 2014
Equity [Abstract]
10. COMMON STOCK	In January 2013, the Compensation Committee of the Board of Directors of the Company authorized the Company to grant each director 96,775 warrants for the purchase of common stock at $0.31 per share for the current year compensation for the year of service the director will serve as a member of the Board of Directors, pursuant to the Company’s Board of Directors compensation plan. The option will vest ratably over a period of two years from the date of when the option was granted. These grants were made pursuant to the annual directors’ compensation program approved by the Board in December 2007.
	In August 2013, the Company modified existing options for two former employees.  The Company recognized approximately $31,000 of expense related to the change.
	A summary of the status of common stock options and warrants outstanding at December 31, 2014 and 2013, and changes during the years then ended is presented below.
			For the years ended December 31,
			2014							2013
			Shares			Weighted Average Exercise Price				Shares			Weighted Average Exercise Price
	Outstanding at beginning of period			6,609,854		$	0.31				4,897,754		$	0.31
	Granted			303,300			0.31				2,105,560			0.31
	Exercised			-			-				-			-
	Expired or cancelled			(500,000	)		-				(393,460	)		-
	Outstanding at end of period			6,413,154		$	0.31				6,609,854		$	0.31
	Weighted average fair value of options and warrants exercisable			6,413,154		$	0.31				6,513,079		$	0.31
	A summary of the status of the options and warrants outstanding at December 31, 2014 is presented below:
				Warrants Outstanding							Warrants Exercisable
	Range of Exercise Prices			Number Outstanding		Weighted-Average Remaining Contractual Life		Weighted-Average Exercise Price			Number Exercisable		Weighted-Average Exercise Price
	$	.01-.50			6,413,154	3.5 years		$	0.31			6,413,154	$	0.31
	The fair value of each option and warrant granted is estimated on the date granted using the Binomial pricing model, with the following assumptions used for the grants: risk-free interest rate of 1.15%, expected dividend yield of zero, expected lives of five years and expected volatility of 246%.
	The stock-based compensation expense recognized in the statement of operations during the years ended December 31, 2014 and 2013 was $1,936 and $97,283 respectively.

11_INCOME_TAXES

11. INCOME TAXES	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
11. INCOME TAXES	The Company accounts for income taxes in accordance with ASC 740, Income Taxes.  ASC 740 requires the Company to provide a net deferred tax asset or liability equal to the expected future tax benefit or expense of temporary reporting differences between book and tax accounting and any available operating loss or tax credit carryforwards.  At December 31, 2014 and 2013, the total of all deferred tax assets was approximately $18,133,000 and $17,022,000, respectively, and the total of the deferred tax liabilities was approximately $0 and $143,000, respectively.  The amount of and ultimate realization of the benefits from the deferred tax assets for income tax purposes is dependent, in part, upon the tax laws in effect, the Company’s future earnings, and other future events, the effects of which cannot be determined.  Because of the uncertainty surrounding the realization of the deferred tax assets, the Company established a valuation allowance of approximately $18,133,000 and $16,879,000 as of December 31, 2014 and 2013, respectively, which has been offset against the deferred tax assets.  The net change in the valuation allowance during the year ended December 31, 2014, was approximately $1,254,000.
	The Company has available at December 31, 2014, unused tax operating loss carryforwards of approximately $45,445,000, which may be applied against future taxable income and expire in various years through 2034.  No tax benefit has been reported in the December 31, 2014 financial statements since the potential tax benefit is offset by a valuation allowance of the same amount.
	Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carryforwards for Federal income tax reporting purposes are subject to annual limitations.  Should a change in ownership occur, net operating loss carryforwards may be limited as to use in future years.
	The components of income tax expense from continuing operations for the years ended December 31, 2014 and 2013 consist of the following:
		Year Ended December 31,
		2014			2013
	Current income tax expense:
	Federal	$	-		$	-
	State		-			-
	Net current tax expense	$	-		$	-
	Deferred tax expense (benefit) arising from:
	Net operating income (loss)	$	(695,600	)	$	(732,200	)
	Excess of tax over financial accounting depreciation		-			113,000
	Stock for services		700			36,300
	Accrued interest		210,800			178,200
	Warranty reserve		(7,500	)		5,600
	Amortization of debt discounts		-			25,200
	Section 263(A)		13,200			5,700
	Other – meals & entertainment, change in allowance for Obsolete inventory, gain on settlement of accrued contingent liability		(46,300	)		79,600
	Valuation allowance		524,700			288,600
	Net deferred tax expense	$	-		$	-
	Deferred income tax expense results primarily from the reversal of temporary timing differences between tax and financial statement income.
	The temporary differences gave rise to the following deferred tax asset (liability) at December 31, 2014 and 2013:
		December 31,
		2014			2013
	Excess of book accounting depreciation over tax	$	-		$	(142,800	)
	Obsolete inventory		145,700			192,600
	Accrued interest – related party		975,800			764,900
	Warranty reserve		52,200			59,700
	263(A) capitalization		8,600			21,800
	NOL carryforwards		16,950,900			15,982,800
	Valuation allowance		(18,133,200	)		(16,879,000	)
	Net deferred tax expense	$	-		$	-
	Deferred income tax expense results primarily from the reversal of temporary timing differences between tax and financial statement income.
	The Company files income tax returns in the U.S. federal jurisdiction, and North Carolina and Georgia.  With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years before 2011.  The statute of limitations remains open on all years from 2011 going forward.
	At December 31, 2014, there are no tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty about the timing of such deductibility.  Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period.

12_COMMITMENTS_AND_CONTINGENCI

12. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2014
Commitments and Contingencies Disclosure [Abstract]
12. COMMITMENTS AND CONTINGENCIES	In December 2010, the Company entered into a Second Amended and Restated License Agreement with Zerorez Franchising Systems, Inc. (“Zerorez”).  The agreement amended the previous agreements with Zerorez by expanding the license granted to Zerorez by allowing Zerorez to acquire and use commercial Electrolyzed Water Generators in connection with their performance of franchise services other than the Primacide Generators manufactured or sold by the Company.  The term of the agreement is for five years.
	In September 2005, Water Science, a related party, paid to the Company $1,000,000 for the exclusive rights to sell our products in South America and Mexico.  This agreement also gives Water Science the rights to purchase machinery from the Company at cost plus 25 percent.

13_GOING_CONCERN

13. GOING CONCERN	12 Months Ended
	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
13. GOING CONCERN	The Company has incurred significant losses and has had negative cash flows from operations.  As a result, at December 31, 2014, the Company has had a high level of equity financing transactions and additional financing will be required by the Company to fund its future activities and to support its operations.  We currently do not have sufficient funds on hand to fund all of our operational needs for the next 12 months.  We will have sufficient funds to operate our business provided we receive expected orders from our customers or if we are able to secure additional funding.  We do not have any agreements in place for additional funding.  Management will continue to seek to obtain sufficient funding for its operations through either debt or equity financing.  However, there is no assurance that the Company will be able to obtain additional financing.  Furthermore, there is no assurance that rapid technological changes, changing customer needs and evolving industry standards will enable the Company to introduce new products and services on a continual and timely basis so that profitable operations can be attained.  The Company’s ability to achieve and maintain profitability and positive cash flows is dependent upon its ability to achieve positive sales and profit margins and control operating expenses.
	At December 31, 2014 the Company had deficit working capital, deficit equity and has sustained recurring losses from operations, all of which raise substantial doubt about the Company’s ability to continue as a going concern.  The financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and satisfaction of liabilities in the ordinary course of business. However, as a result of recurring operating losses, such realization of assets and satisfaction of liabilities are subject to uncertainty, which raises substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
	The Company estimates that it may need up to $1,200,000 for the upcoming twelve months to execute our business plan.  Management plans to mitigate its losses in the near term through the further development and marketing of its trademarks, brand and product offerings.  Management will also continue to seek to obtain sufficient funding for its operations through either debt or equity financing.

14_LOSS_PER_SHARE

14. LOSS PER SHARE	12 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
14. LOSS PER SHARE	Basic earnings per share is based on the weighted effect of all common shares issued and outstanding, and is calculated by dividing net income by the weighted average shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted average number of common shares used in the basic earnings per share calculation plus the number of common shares that would be issued assuming exercise or conversion of all potentially dilutive common shares outstanding.
	At December 31, 2014 and 2013, the Company had outstanding warrants and notes payable convertible into shares of common stock, which were not used in the computation of income (loss) per share because their effect would be anti-dilutive either due to the net loss or due to the exercise price of the warrants and options or conversion rate of the convertible notes relative to the current stock price.
	The following data shows the amounts used in computing loss per share:
		For the Year Ended
		December 31,
		2014			2013
	Net (loss) (numerator)	$	(1,864,814	)	$	(1,963,000	)
	Shares (denominator)
	Basic		28,575,371			28,575,371
	Per share amount
	Basic	$	(0.07	)	$	(0.07	)

15_SUBSEQUENT_EVENTS

15. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2014
Subsequent Events [Abstract]
15. SUBSEQUENT EVENTS	At various times throughout 2014, funds totaling $1,160,000 were advanced to the Company by a related party.  In March 2015, the Company entered into a loan agreement with this related party which formalized those advances into a note payable.  This balance has been included on the balance sheet in related party notes payable as of December 31, 2014.  The loan agreement provides for interest at a rate of 10% annually and will mature on November 30, 2015.  The outstanding balance under the Loan Agreement is convertible into shares of the Company’s common stock at $0.31 per share and no principal or interest payments are due until maturity.  The Loan Agreement provides that accrued interest and the outstanding principal balance can be prepaid, in whole or in part, at any time without premium or penalty. In connection with the negotiation of the Loan Agreement, the Company also granted a warrant to purchase up to 1,160,000 shares of the Company’s common stock at an exercise of $0.31 per share. The warrant expires in March, 2020.
	In March 2015, the Company entered into agreements with Water Science and Mr. Ullrich to extend the Senior Convertible Note, the $358,527 Note and the $1,325,000 Note until November 30, 2015.
	In January and March 2015, the Company obtained an unsecured short term advances of $100,000 and $100,000 from Peter Ullrich a member of the Board of Directors of the Company.  The final agreement to document the advances has not been signed, and the material terms are not final. It is anticipated that the final loan will be at 10% simple interest and conversion rights into Company common stock.  The material terms of the final agreement will be disclosed in subsequent filings with the Securities and Exchange Commission.
	In accordance with ASC 855, management evaluated events subsequent to December 31, 2014 and concluded there were no other events or transactions during this period that required recognition or disclosure in its financial statements.

1_BUSINESS_DESCRIPTION_AND_SIG1

1. BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2014
Accounting Policies [Abstract]
Business Description	EAU Technologies, Inc. (the “Company” or “EAU”), was incorporated on March 6, 2000, under the laws of the state of Delaware and commenced operations in September, 2000 as Primacide, Inc.  On May 10, 2001, the Company changed its name from Primacide, Inc., to Electric Aquagenics Unlimited, Inc.  On January 17, 2007 the Company changed its name from Electric Aquagenics Unlimited, Inc. to EAU Technologies, Inc.  The Company is in the business of developing, manufacturing and marketing equipment that uses water electrolysis to create fluids. These fluids have various commercial applications and may be used in commercial food processing organic or non-organic agricultural and consumer products that clean, disinfect, remediate, hydrate and moisturize.  These products, which the Company intends to market nationally and internationally, are for commercial and residential use. The Company’s financial statements are presented in accordance with accounting principles generally accepted in the United States of America.
Cash and Cash Equivalents	For purposes of the balance sheet and statement of cash flows, the Company considers all highly liquid debt instruments purchased with maturity of three months or less to be cash equivalents.
Receivables	Receivables represent valid claims against debtors for sales or other charges arising on or before the balance-sheet date and are reduced to their estimated net realizable value.  The Company estimates allowances for doubtful accounts based on the aged receivable balances and historical losses.  The Company charges off uncollectible accounts receivable when management estimates no possibility of collecting the related receivable.
Inventory	Inventory, consisting primarily of finished goods, is stated at the lower of cost or market; cost is determined on first-in, first-out (FIFO) method.
Property and Equipment, and Depreciation	Property and equipment are recorded at historical cost.  Expenditures for additions and major improvements that extend the life of the asset are capitalized, whereas the cost of maintenance and repairs are expensed as incurred.  Depreciation is computed on the straight-line method over the estimated useful lives of the assets ranging from three to seven years.  Depreciation expense for the years ended December 31, 2014 and 2013 was $0 and $0, respectively.  In September 2005, the Company pledged all the assets of the Company as collateral for the Senior Convertible Note, payable to Water Science, a related party.
Long-Lived Assets	Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable.  Determination of recoverability is based on an estimate of undiscounted future cash flows resulting from the use of the asset and its eventual disposition.  Measurement of an impairment loss for long-lived assets that management expects to hold and use is based on the fair value of the asset.  Long-lived assets are reported at the lower of carrying or fair value less costs to sell.
Fair Value of Financial Instruments	The carrying values of cash on hand, receivables, payables and accrued expenses approximate their fair value due to the short period to maturity of these instruments.
Recognition of Sales and Costs of Goods Sold	The Company records sales of its products based upon the terms of the contract; when title passes to its customers; and, when collectability is reasonably assured.  The Company provides an allowance for sales returns based on current and historical experience.  Cost of goods sold consists of the purchase price of products sold including inbound shipping charges.
Sales Taxes	In accordance with FASB ASC 605-45, formerly EITF Issue No. 06-3, How Taxes Collected From Customers and Remitted to Government Authorities Should be Presented in the Income Statement, the Company accounts for sales taxes imposed on its good and services on a gross basis in the statements of operations.  For the years ended December 31, 2014 and 2013, respectively, $0 and $0 of sales taxes has been reported in revenues.
Warranties	The Company warrants its products against defects in materials and workmanship for a period of up to three years.  The Company has accrued a reserve for these anticipated future warranty costs.
Income Taxes	Deferred income taxes are provided using the liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of the changes in tax laws and rates of the date of enactment.
	When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.  The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.  Tax positions taken are not offset or aggregated with other positions.  Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.  The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination.
	Interest and penalties associated with unrecognized tax benefits are classified as additional income taxes in the statement of income.
Accounting Estimates	The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
Research and Development	Research and development costs are expensed as incurred. Research and development expenses for the years ended December 31, 2014 and 2013 were approximately $0 and $18,438, respectively.
Patents, Trademarks and Intellectual Property	Patents, trademarks and intellectual property, consisting of trade secrets and formulas are recorded in accordance with Accounting Standards Codification 350, Intangibles – Goodwill and Other (ASC 350), (formerly Statement of Financial Accounting Standards “SFAS” No. 142, "Goodwill and Other Intangible Assets").  As such, patents and trademarks are initially measured based on their fair values.
Loss Per Share	The Company follows the provisions of ASC Topic 260 "Earnings Per Share".  Earnings per share (EPS) are computed based on the weighted average number of shares actually outstanding.  No changes in the computation of diluted earnings per share amounts are presented because warrants granted would have been anti-dilutive due to the Company’s net reported loss.
Stock Based Compensation	- Stock-based compensation is calculated according to FASB ASC Topic 718, Compensation — Stock Compensation, which requires a fair-value-based measurement method to account for stock-based compensation.  The Company has modified the price of stock options to employees and directors.  The Company accounts for the incremental value of the modified options based on the excess of the fair value of the modified award based on current circumstances.  The modifications made to the Company’s equity awards did not result in significant incremental compensation costs, either individually or in the aggregate.
Reclassification	Certain amounts in the accompanying financial statements have been reclassified to conform to current year presentation.  These reclassifications had no material effect on our financial statements.
Recently Enacted Accounting Standards	In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. In connection with each annual and interim period, management is required to assess whether there is substantial doubt about an entity’s ability to continue as a going concern within one year after the issuance date, and to provide related footnote disclosures in certain circumstances. The new guidance is effective for annual periods ending after December 15, 2016, and interim periods within annual periods beginning after December 15, 2016. Early adoption is permitted. The Company is currently evaluating the impact of adoption on its financial position, results of operations and disclosures.
	In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Accounting Standard Codification 605 - Revenue Recognition” and most industry-specific guidance. The standard requires that entities recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which a company expects to be entitled in exchange for those goods or services. This ASU is effective for fiscal years beginning after December 15, 2016. ASU 2014-09 permits the use of either the retrospective or cumulative effect transition method. The Company is currently assessing the impact ASU 2014-09 will have on its financial position and results of operations.
	Other recently issued ASUs were assessed and determined to be either not applicable or are expected to have a minimal impact on the Company’s consolidated financial position and results of operations.

3_TRADE_ACCOUNTS_RECEIVABLE_Ta

3. TRADE ACCOUNTS RECEIVABLE (Tables)	12 Months Ended
	Dec. 31, 2014
Receivables [Abstract]
Schedule of trade accounts receivable
		2014		2013
	Trade accounts receivable	$	56,296	$	29,705
	Trade accounts receivable – related party		1,500		1,500
	Less allowance for doubtful accounts		-		-
		$	57,796	$	31,205

4_INVENTORIES_Tables

4. INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
Composition of Inventories		2014			2013
	Finished goods	$	-		$	536,207
	Raw materials		462,927			634,015
	Allowance for obsolete inventory		(390,637	)		(516,255	)
		$	72,290		$	653,967

5_PROPERTY_AND_EQUIPMENT_Table

5. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2014
Property, Plant and Equipment [Abstract]
Schedule of property and equipment		2014			2013
	Machinery and equipment	$	41,301		$	41,301
	Furniture and fixtures		47,284			47,284
	Leasehold improvements		32,136			32,136
	Total property and equipment		120,721			120,721
	Less: accumulated depreciation		(120,721	)		(120,721	)
	Property and equipment, net	$	-		$	-

6_INTANGIBLE_ASSETS_Tables

6. INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Scheduule of intangible assets		2014			2013
	Gross amount of patents	$	145,529		$	129,618
	Less amount of accumulated amortization		(7,428	)		(6,071	)
	Net value of patents	$	138,101		$	123,547
Schedule of amortization expense	2015	$	1,357
	2016	$	1,357
	2017	$	1,357
	2018	$	1,357
	2019	$	1,357

8_WARRANTY_RESERVE_Tables

8. WARRANTY RESERVE (Tables)	12 Months Ended
	Dec. 31, 2014
Guarantees [Abstract]
Warranty Reserve		For the Year Ended December 31,
		2014			2013
	Warranty reserve at beginning of period	$	160,000		$	145,000
	Costs accrued for additional warranties		1,001			16,864
	Service obligations honored		(1,001	)		(1,864	)
	Reduction in accrued estimate		(20,000	)		-
	Warranty reserve at end of period	$	140,000		$	160,000

10_COMMON_STOCK_Tables

10. COMMON STOCK (Tables)	12 Months Ended
	Dec. 31, 2014
Equity [Abstract]
Schedule of common stock options and warrants outstanding			For the years ended December 31,
			2014							2013
			Shares			Weighted Average Exercise Price				Shares			Weighted Average Exercise Price
	Outstanding at beginning of period			6,609,854		$	0.31				4,897,754		$	0.31
	Granted			303,300			0.31				2,105,560			0.31
	Exercised			-			-				-			-
	Expired or cancelled			(500,000	)		-				(393,460	)		-
	Outstanding at end of period			6,413,154		$	0.31				6,609,854		$	0.31
	Weighted average fair value of options and warrants exercisable			6,413,154		$	0.31				6,513,079		$	0.31
				Warrants Outstanding							Warrants Exercisable
	Range of Exercise Prices			Number Outstanding		Weighted-Average Remaining Contractual Life		Weighted-Average Exercise Price			Number Exercisable		Weighted-Average Exercise Price
	$	.01-.50			6,413,154	3.5 years		$	0.31			6,413,154	$	0.31

11_INCOME_TAXES_Tables

11. INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2014
Income Tax Disclosure [Abstract]
Schedule of income tax from continuing operations		Year Ended December 31,
		2014			2013
	Current income tax expense:
	Federal	$	-		$	-
	State		-			-
	Net current tax expense	$	-		$	-
	Deferred tax expense (benefit) arising from:
	Net operating income (loss)	$	(695,600	)	$	(732,200	)
	Excess of tax over financial accounting depreciation		-			113,000
	Stock for services		700			36,300
	Accrued interest		210,800			178,200
	Warranty reserve		(7,500	)		5,600
	Amortization of debt discounts		-			25,200
	Section 263(A)		13,200			5,700
	Other – meals & entertainment, change in allowance for Obsolete inventory, gain on settlement of accrued contingent liability		(46,300	)		79,600
	Valuation allowance		524,700			288,600
	Net deferred tax expense	$	-		$	-
Schedule of temporary tax differences		December 31,
		2014			2013
	Excess of book accounting depreciation over tax	$	-		$	(142,800	)
	Obsolete inventory		145,700			192,600
	Accrued interest – related party		975,800			764,900
	Warranty reserve		52,200			59,700
	263(A) capitalization		8,600			21,800
	NOL carryforwards		16,950,900			15,982,800
	Valuation allowance		(18,133,200	)		(16,879,000	)
	Net deferred tax expense	$	-		$	-

14_LOSS_PER_SHARE_Tables

14. LOSS PER SHARE (Tables)	12 Months Ended
	Dec. 31, 2014
Earnings Per Share [Abstract]
Schedule of earnings per share		For the Year Ended
		December 31,
		2014			2013
	Net (loss) (numerator)	$	(1,864,814	)	$	(1,963,000	)
	Shares (denominator)
	Basic		28,575,371			28,575,371
	Per share amount
	Basic	$	(0.07	)	$	(0.07	)

1_BUSINESS_DESCRIPTION_AND_SIG2

1. BUSINESS DESCRIPTION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Accounting Policies [Abstract]
Depreciation expense	$0	$0
Sales taxes	0	0
Research and development expenses	$0	$18,438

3_TRADE_ACCOUNTS_RECEIVABLE_De

3. TRADE ACCOUNTS RECEIVABLE (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Trade accounts receivable	$56,296	$29,705
Trade accounts receivable - related party	1,500	1,500
Less allowance for doubtful accounts	0	0
Total trade accounts receivable	$57,796	$31,205

3_TRADE_ACCOUNTS_RECEIVABLE_De1

3. TRADE ACCOUNTS RECEIVABLE (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Receivables [Abstract]
Bad debt expense	$0	$0

4_INVENTORIES_Details

4. INVENTORIES (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Finished goods	$0	$536,207
Raw materials	462,927	634,015
Allowance for obsolete inventory	-390,637	-516,255
Total	$72,290	$653,967

5_PROPERTY_AND_EQUIPMENT_Detai

5. PROPERTY AND EQUIPMENT (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Machinery and equipment	$41,301	$41,301
Furniture and fixtures	47,284	47,284
Leasehold improvements	32,136	32,136
Total property and equipment	120,721	120,721
Less: accumulated depreciation	-120,721	-120,721
Property and equipment, net	$0	$0

5_PROPERTY_AND_EQUIPMENT_Detai1

5. PROPERTY AND EQUIPMENT (Details Narrative) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Abstract]
Depreciation expense	$0	$0

6_INTANGIBLE_ASSETS_Details

6. INTANGIBLE ASSETS (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Gross amount of patents	$145,529	$129,618
Less amount of accumulated amortization	-7,428	-6,071
Net value of patents	$138,101	$123,547

6_INTANGIBLE_ASSETS_Details_1

6. INTANGIBLE ASSETS (Details 1) (USD $)	Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
2015	$1,357
2016	1,357
2017	1,357
2018	1,357
2019	$1,357

6_INTANGIBLE_ASSETS_Details_Na

6. INTANGIBLE ASSETS (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$1,357	$1,357
Accrued costs written off		$34,005

7_RELATED_PARTY_TRANSACTIONS_D

7. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Related Party Transactions [Abstract]
Sales	$38,234	$132,574
Received and recorded advance from Water Science	413,595	433,540
Advances to employees	$1,500	$1,500

8_WARRANTY_RESERVE_Details

8. WARRANTY RESERVE (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Guarantees [Abstract]
Warranty reserve at beginning of period	$160,000	$145,000
Costs accrued for additional warranties	1,001	16,864
Service obligations honored	-1,001	-1,864
Reduction in accrued estimate	-20,000	0
Warranty reserve at end of period	$140,000	$160,000

10_COMMON_STOCK_Details

10. COMMON STOCK (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Number of Options and Warrants
Outstanding at beginning of period	6,609,854	4,897,754
Granted	303,300	2,105,560
Exercised	0	0
Expired or cancelled	-500,000	-393,460
Outstanding at end of period	6,413,154	6,609,854
Weighted average fair value of options and warrants exercisable	6,413,154	6,513,079
Weighted Average Exercise Price
Outstanding at beginning of period	$0.31	$0.31
Granted	$0.31	$0.31
Exercised	$0	$0
Expired	$0	$0
Outstanding at end of period	$0.31	$0.31
Weighted average fair value of options and warrants exercisable	$0.31	$0.31

10_COMMON_STOCK_Details_1

10. COMMON STOCK (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2014
Equity [Abstract]
Exercise Prices, Range Minimum	$0.01
Exercise Prices, Range Maximum	$0.50
Warrants Outstanding
Weighted-Average Remaining Contractual Life	3 years 5 months
Weighted-Average Exercise Price	$0.31
Warrants Exercisable
Number Exercisable	6,413,154
Weighted-Average Exercise Price	$0.31

10_COMMON_STOCK_Details_Narrat

10. COMMON STOCK (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Equity [Abstract]
Stock-based compensation expense recognized	$1,936	$97,283

11_INCOME_TAXES_Details

11. INCOME TAXES (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Current income tax expense:
Federal	$0	$0
State	0	0
Net current tax expense	0	0
Deferred tax expense (benefit) arising from:
Net operating income (loss)	-695,600	-732,200
Excess of tax over financial accounting depreciation	0	113,000
Stock for services	700	36,300
Accrued interest	210,800	178,200
Warranty reserve	-7,500	5,600
Amortization of debt discounts	0	25,200
Section 263(A)	13,200	5,700
Other - meals & entertainment, change in allowance for Obsolete	-46,300	79,600
Valuation allowance	524,700	288,600
Net deferred tax expense	$0	$0

11_INCOME_TAXES_Details_1

11. INCOME TAXES (Details 1) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Excess of book accounting depreciation over tax	$0	($142,800)
Obsolete inventory	145,700	192,600
Accrued interest - related party	975,800	764,900
Warranty reserve	52,200	59,700
263A capitalization	8,600	21,800
NOL carryforwards	16,950,900	15,982,800
Valuation allowance	-18,133,200	-16,879,000
Net deferred tax expense	$0	$0

11_INCOME_TAXES_Details_Narrat

11. INCOME TAXES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Tax Disclosure [Abstract]
Deferred tax assets	$18,133,000	$17,022,000
Deferred tax liabilities	0	143,000
Valuation allowance	18,133,000	16,879,000
Change in the valuation allowance	1,254,000
Operating loss carryforwards	$45,445,000

14_LOSS_PER_SHARE_Details

14. LOSS PER SHARE (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Earnings Per Share [Abstract]
Net (loss) (numerator)	($1,864,814)	($1,963,000)
Shares (denominator)
Basic	28,575,371	28,575,371
Per share amount
Basic	($0.07)	($0.07)