AudioEye (AEYE) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 15, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Entity Registrant Name	AUDIOEYE INC
Entity Central Index Key	1,362,190
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	AEYE
Entity Common Stock, Shares Outstanding		112,564,118

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash	$ 783,664	$ 1,409,418
Accounts receivable, net	57,599	44,645
Marketable securities, held in related party	1,200	1,200
Prepaid expenses and other current assets	13,689	19,560
Total current assets	856,152	1,474,823
Property and equipment, net	5,289	0
Intangible assets, net	2,219,178	2,313,249
Goodwill	700,528	700,528
Total assets	3,781,147	4,488,600
Current liabilities:
Accounts payable and accrued expenses	257,530	245,677
Notes and loans payable, current	17,800	23,800
Related party payables	25,535	32,118
Derivative liabilities	3,173,915	3,478,626
Deferred rent	2,811	207
Deferred revenue	456,444	386,485
Total current liabilities	3,934,035	4,166,913
Long term liabilities:
Deferred rent	11,461	14,450
Total liabilities	3,945,496	4,181,363
Stockholders' (deficit) equity:
Preferred stock, $0.00001 par value, 10,000,000 shares authorized, 160,000 shares issued and outstanding as of March 31, 2017 and December 31, 2016	2	2
Common stock, $0.00001 par value, 250,000,000 shares authorized, 111,994,142 and 111,512,001 shares issued and outstanding as of March 31, 2017 and December 31, 2016, respectively	1,120	1,115
Additional paid-in capital	34,455,786	34,124,181
Accumulated deficit	(34,621,257)	(33,818,061)
Total stockholders' (deficit) equity	(164,349)	307,237
Total liabilities and stockholders' (deficit) equity	$ 3,781,147	$ 4,488,600

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Preferred Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	160,000	160,000
Preferred Stock, Shares Outstanding	160,000	160,000
Common Stock, Par or Stated Value Per Share	$ 0.00001	$ 0.00001
Common Stock, Shares Authorized	250,000,000	250,000,000
Common Stock, Shares, Issued	111,994,142	111,512,001
Common Stock, Shares, Outstanding	111,994,142	111,512,001

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues	$ 434,507	$ 124,702
Cost of revenue	341,042	294,808
Gross profit (loss)	93,465	(170,106)
Operating expenses:
Selling and marketing	279,727	123,366
Research and development	44,702	85,617
General and administrative	737,681	471,025
Amortization and depreciation	145,488	138,538
Total operating expenses	1,207,598	818,546
Operating loss	(1,114,133)	(988,652)
Other income (expense):
Unrealized gain (loss) on derivative liabilities	310,773	(3,412,059)
Interest income (expense), net	164	(110,165)
Total other income (expense)	310,937	(3,522,224)
Net loss	(803,196)	(4,510,876)
Dividend on Series A Convertible preferred stock	(20,000)	(21,875)
Net loss available to common stockholders	$ (823,196)	$ (4,532,751)
Net loss per common share-basic and diluted	$ (0.01)	$ (0.06)
Weighted average common shares outstanding-basic and diluted	111,884,024	81,717,154

CONSOLIDATED STATEMENT OF STOCK

CONSOLIDATED STATEMENT OF STOCKHOLDERS' (DEFICIT) EQUITY - 3 months ended Mar. 31, 2017 - USD ($)	Total	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]
Balance at Dec. 31, 2016	$ 307,237	$ 1,115	$ 2	$ 34,124,181	$ (33,818,061)
Balance (in shares) at Dec. 31, 2016		111,512,001	160,000
Common stock sold for cash	50,000	$ 4	$ 0	49,996	0
Common stock sold for cash (in shares)		357,143	0
Common stock issued for services	17,875	$ 1	$ 0	17,874	0
Common stock issued for services (in shares)		124,998	0
Reclassify fair value of liability warrants issued in connection with sale of common stock	(6,062)	$ 0	$ 0	(6,062)	0
Warrants and options issued for services	211,464	0	0	211,464	0
Restricted stock units issued in payment of accrued compensation	58,333	0	0	58,333	0
Net loss	(803,196)	0	0	0	(803,196)
Balance at Mar. 31, 2017	$ (164,349)	$ 1,120	$ 2	$ 34,455,786	$ (34,621,257)
Balance (in shares) at Mar. 31, 2017		111,994,142	160,000

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss)	$ (803,196)	$ (4,510,876)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	145,488	138,538
Amortization of debt discounts	0	46,141
Option, warrant, RSU and PSU expense	211,464	215,778
Stock issued for services	17,875	0
(Loss) gain on change in derivative liabilities	(310,773)	3,412,059
Changes in operating assets and liabilities:
Accounts receivable	(12,954)	3,459
Other current assets	5,871	0
Accounts payable and accruals	11,853	58,459
Deferred rent	(385)	0
Deferred revenue	69,959	89,506
Related party payables	51,750	(17,764)
Net cash (used in) operating activities	(613,048)	(564,700)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment	(5,736)	0
Cash (paid for) intellectual property	(50,970)	(36,067)
Net cash (used in) investing activities	(56,706)	(36,067)
CASH FLOWS FROM FINANCING ACTIVITIES:
Issuance of common stock and warrants for cash	50,000	0
Repayments of notes payable	(6,000)	(6,000)
Net cash provided by financing activities	44,000	(6,000)
Net (decrease) increase in cash	(625,754)	(606,767)
Cash-beginning of period	1,409,418	1,687,257
Cash-end of period	783,664	1,080,490
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Interest paid	0	0
Income taxes paid	0	0
Non-cash investing and financing activities:
Reclassify fair value of liability warrants from equity to liability upon issuance	6,062	0
Restricted stock units issued in payment of accrued compensation	$ 58,333	$ 0

ORGANIZATION AND BASIS OF PRESE

ORGANIZATION AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1: ORGANIZATION AND BASIS OF PRESENTATION The accompanying unaudited interim financial statements of AudioEye, Inc. and its wholly-owned subsidiary (collectively, the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2017. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements that would substantially duplicate the disclosures contained in the audited financial statements for the year ended December 31, 2016 as reported in the Company’s Annual Report on Form 10-K have been omitted. AudioEye, Inc. was formed as a Delaware corporation on May 20, 2005. The Company focuses on providing its customers with the most complete and inclusive web accessibility solution available. The Company’s suite of technologies allows its customers to provide their site visitors with an enhanced web experience. When implemented, the Company believes its solutions offer businesses the opportunity to reach more customers, improve brand image, and build additional brand loyalty. In addition, the Company’s solutions provide organizations with the ability to comply with internationally accepted web content accessibility guidelines (WCAG) as well as United States, Canadian and United Kingdom accessibility laws. Revenue is recognized when all applicable recognition criteria have been met, which generally include (a) persuasive evidence of an existing arrangement; (b) fixed or determinable price; (c) delivery has occurred or service has been rendered; and (d) collectability of the sales price is reasonably assured. For software and technology development contracts the Company recognizes revenues on a percentage of completion method based upon several factors including but not limited to (a) estimate of total hours and milestones to complete; (b) total hours completed; (c) delivery of services rendered; (d) change in estimates; and (e) collectability of the contract. The Company had two major customers including their affiliates which each generated approximately 16 16 32 At March 31, 2017, the Company had five customers representing 20 21 30 13 11 95 Certain Software as a Service (SaaS) and website hosting contracts are prepared and invoiced on an annual basis. Any funds received for hosting services not provided yet are held in deferred revenue, and are recorded as revenue when earned. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Significant estimates include the fair value of the Company’s stock, stock-based compensation, fair values relating to derivative liabilities, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates. The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Stock-based compensation expense is recorded by the Company in the same expense classifications in the consolidated statements of operations, as if such amounts were paid in cash. The Company accounts for derivative instruments in accordance with ASC 815, which establishes accounting and reporting standards for derivative instruments and hedging activities, including certain derivative instruments embedded in other financial instruments or contracts and requires recognition of all derivatives on the balance sheet at fair value, regardless of hedging relationship designation. Accounting for changes in fair value of the derivative instruments depends on whether the derivatives qualify as hedging relationships and the types of relationships designated are based on the exposures hedged. At March 31, 2017 and December 31, 2016, the Company did not have any derivative instruments that were designated as hedges. On October 9, 2015, the Company issued convertible promissory notes representing $ 2,500,000 25,000,000 the Company’s common stock. 0.10 5 1,792,000 the Company’s common stock. 0.25 5 In accordance with ASC 815, these outstanding warrants are deemed to contain embedded derivatives. The value of the derivative instrument will fluctuate with the price of the Company’s common stock and is recorded as a current liability on the Company’s Consolidated Balance Sheets. The change in the value of the liability is recorded as “unrealized gain (loss) on derivative liability” on the Consolidated Statements of Operations. This is a non-cash income (expense) item and is adjusted in the “operating activities” of the Consolidated Statements of Cash Flow. At March 31, 2017 and December 31, 2016, the derivative liability was stated at $ 3,173,915 3,478,626 310,773 Fair value is an estimate of the exit price, representing the amount that would be received to upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction cost. Fair value measurement under generally accepted accounting principles provides for use of a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the Company. Level 3: Unobservable inputs reflect the assumptions that the Company develops based on available information about what market participants would use in valuing the asset or liability. An asset or liability’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 and Level 2 assets or liabilities. In October and November 2015, the Company issued warrants with an exercise price of $ 0.10 0.10 The Company estimated the fair value of these derivative warrants at initial issuance and again at each balance sheet date. The changes in fair value are recognized in earnings in the Consolidated Statements of Operations under the caption “unrealized gain/(loss) – derivative liability” until such time as the derivative warrants are exercised or expire. The Company used the Black-Scholes Option Pricing model to estimate the fair value of the dates of issuance, the price of the Company stock ranged $ 0.031 0.058 102 1.14 1.75 5 In 2016 and the three months ended March 31, 2017, the Company issued warrants with an exercise price of $ 0.25 the Company’s common stock. The Company estimated the fair value of these derivative warrants at initial issuance and again at each balance sheet date. The changes in fair value are recognized in earnings in the Consolidated Statements of Operations under the caption “unrealized gain/(loss) – derivative liability” until such time as the derivative warrants are exercised or expire. The Company used the Black-Scholes Option Pricing model to estimate the fair value of the dates of issuance, the price of the Company stock ranged $ 0.152 0.195 169 178 1.22 1.87 5 280,777 6,062 At March 31, 2017, the price of the Company stock was $ 0.13 172.0 1.93 3.53 4.79 3,173,915 310,773 Fair Value Fair Value Hierarchy Assets Marketable securities, March 31, 2017 $ 1,200 Level 1 Marketable securities, December 31, 2016 $ 1,200 Level 1 Liabilities Derivative Liability, March 31, 2017 $ 3,173,915 Level 3 Derivative Liability, December 31, 2016 $ 3,478,626 Level 3 There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations or cash flows.

GOING CONCERN AND MANAGEMENT_S

GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS	3 Months Ended
	Mar. 31, 2017
Going Concern [Abstract]
Substantial Doubt about Going Concern [Text Block]	NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS As of March 31, 2017, the Company had cash of $ 783,664 3,077,883 96,032 613,048 During the three months ended March 31, 2017, the Company sold shares of common stock and warrants for net proceeds, after commissions and other costs, of $ 50,000 50,000 The Company expects that cash used in operations will decrease significantly over the next several years as the Company executes its business plan. In the event that the Company is not able to fully achieve its plan, the Company may need to raise additional funds through equity or debt financing. If the Company is unsuccessful in raising additional financing, it will need to reduce costs and operations in the future. Accordingly, the accompanying financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The financial statements do not include any adjustment that might result from the outcome of this uncertainty.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment Disclosure [Text Block]	NOTE 3 – PROPERTY AND EQUIPMENT March 31, December 31, 2017 2016 Computer equipment $ 31,214 $ 25,478 Less accumulated depreciation (25,925) (25,478) Property and equipment, net $ 5,289 $ - Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful life of 3 years. When retired or otherwise disposed, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition, is reflected in earnings. Depreciation expense was $ 447 0

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2017
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 4 — RELATED PARTY TRANSACTIONS Dr. Carr Bettis, Executive Chairman and Chairman of Board of Directors As of March 31, 2017 and December 31, 2016, the Company owed Dr. Bettis $ 5,992 20,575 500 1,500 0 16,000 8,000 Sean Bradley, President, Chief Technology Officer, and Secretary As of March 31, 2017 and December 31, 2016, the Company owed Sean Bradley $ 3,543 Other The Company holds 60,000 60,000 In summary, as of March 31, 2017 and December 31, 2016, the total balances of related party payables were $ 25,535 32,118

INTANGIBLE ASSETS

INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets Disclosure [Text Block]	NOTE 5: INTANGIBLE ASSETS For the three months ended March 31, 2017, the Company invested in software development and patents in the amounts of $ 50,970 0 0 36,067 Prior to December 31, 2015, patents, technology and other intangibles with contractual terms were generally amortized over their estimated useful lives of ten years. When certain events or changes in operating conditions occur, an impairment assessment is performed and lives of intangible assets with determinable lives may be adjusted. Software development costs are amortized over their estimated useful life of three years. Prior to any impairment adjustment, intangible assets consisted of the following: March 31, December 31, 2017 2016 Patents $ 3,697,710 $ 3,697,710 Capitalized software development 672,537 621,567 Accumulated amortization (2,151,069) (2,006,028) Intangible assets, net $ 2,219,178 $ 2,313,249 Amortization expense for patents totaled $ 91,582 92,779 53,459 45,759 Total amortization expense totaled $ 145,041 138,538

NOTES PAYABLE

NOTES PAYABLE	3 Months Ended
	Mar. 31, 2017
Notes Payable [Abstract]
Debt Disclosure [Text Block]	NOTE 6 — NOTES PAYABLE 17,800 23,800 March 31, December 31, Notes and loans payable 2017 2016 Short Term Maryland TEDCO $ 17,800 $ 23,800 Total $ 17,800 $ 23,800 As of December 31, 2012, the Company had an outstanding loan to a third party in the amount of $ 74,900 25 74,900 149,800 2,000 17,800 23,800 6,000

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Attributable to Parent [Abstract]
Sale Leaseback Transaction Disclosure [Text Block]	NOTE 7: STOCKHOLDERS’ EQUITY As of March 31, 2017 and December 31, 2016, the Company had 111,994,142 111,512,001 ompany had 160,000 10 5 0.1754 In January 2017, the Company sold 357,143 40,000 50,000 0.25 In January 2017, the Company issued 41,666 6,625 In February 2017, the Company issued 41,666 5,333 In March 2017, the Company issued 41,666 5,917 Registration rights Under the purchase agreement, the Company has agreed to use its reasonable best efforts to prepare and file with the SEC registration statement within 60 days of the initial closing date, covering the resale by the investors of any common stock previously issued to the investors, and any common stock into which any convertible promissory notes previously issued to the investors are convertible and any common stock for which the warrants or any warrants previously issued to the investors are exercisable. The Company filed a registration statement on September 30, 2016 and became effective on December 21, 2016. Options 25,931,207 25,731,207 Intrinsic Wtd Avg. Value Number of Wtd Avg. Remaining of Options Exercise Price Term Exercisable Options Outstanding at December 31, 2016 25,731,207 $ 0.20 3.34 15,091,366 $ 1,161,244 Granted 200,000 0.15 5.00 - Forfeited/Expired Outstanding at March 31, 2017 25,931,207 $ 0.20 3.10 15,943,384 $ 1,032,718 On January 17, 2017, the Company granted 100,000 50 2.08 0.159 January 17, 2022 11,119 On March 10, 2017, the Company granted 100,000 50 2.08 0.145 March 10, 2022 12,541 Option grants during the three months ended March 31, 2017 were valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 3.50 173.08 175.56 1.42 1.66 0 For the three months ended March 31, 2017 and 2016, total stock compensation expense related to the options totaled $ 167,414 138,046 The outstanding unamortized stock compensation expense related to options was $ 313,184 Warrants Intrinsic Wtd Avg. Value Number of Wtd Avg. Remaining of Warrants Exercise Price Term Warrants Outstanding at December 31, 2016 63,433,041 $ 0.15 3.55 $ 3,662,610 Granted 290,000 0.14 3.28 Exercised - Forfeited - Outstanding at March 31, 2017 63,723,041 $ 0.15 3.30 $ 3,218,660 In January 2017, the Company issued 40,000 0.25 the Company’s common stock. In January 2017, in exchange for services rendered, 250,000 0.12 29,433 The warrant grants for services during the three months ended March 31, 2017 were valued using the Black-Scholes pricing model. Significant assumptions used in the valuation include expected term of 3.0 175.64 1.48 0 For the three months ended March 31, 2017 and 2016, the Company has incurred warrant-based expense of $ 44,050 77,732 33,068 Restricted stock units (“RSU”) Restricted stock units issued as of January 1, 2017 1,252,620 Granted 402,297 Total Restricted stock units issued at March 31, 2017 1,654,917 Vested at March 31, 2017 - Unvested restricted stock units as of March 31, 2017 1,654,917 On February 23, 2017, the Company granted 402,297 58,333 seven In connection with the issuance of the above described RSUs as payment for accrued compensation, the Company reclassified to equity the settled salary accrual of $ 58,333

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 8: COMMITMENTS AND CONTINGENCIES Litigation In April 2015, two shareholder class action lawsuits were filed against the Company and former officers Nathaniel Bradley and Edward O’Donnell in the U.S. District Court for the District of Arizona. The plaintiffs allege various causes of action against the defendants arising from our announcement that our previously issued financial results for the first three quarters of 2014 and the guidance for the fourth quarter of 2014 and the full year of 2014 could no longer be relied upon. The complaints sought among other relief, compensatory damages and plaintiff’s counsel’s fees and experts’ fees. The Court appointed a lead plaintiff and lead counsel, and consolidated the actions. A consolidated amended complaint was filed under the caption In re AudioEye, Inc. Sec. Litigation. On July 25, 2016, in connection with a voluntary mediation, the parties reached an agreement in principle to settle the consolidated actions. The terms of the agreement include a settlement payment to the class of $ 1,525,000 100,000 On July 26, 2016, a shareholder derivative complaint entitled Denese M. Hebert, derivatively on Behalf of Nominal Defendant AudioEye, Inc., v. Bradley, et al., was filed in the State of Arizona Superior Court for Pima County. The complaint generally asserts causes of action related to the Company’s restatement of its financial statements for the first three fiscal quarters of 2014. As a derivative complaint, the plaintiff-shareholder purports to act on behalf of the Company against the Named Individuals. The Company is named as a nominal defendant. The Company understands that the Named Individuals intend to vigorously defend the lawsuit. The defendants filed a motion to dismiss the complaint in February 2017. On May 8, 2017, the Court granted the motion to dismiss, and denied Plaintiff’s request for leave to amend the complaint. While the Company believes that its legal defense costs may be reimbursed by the Company’s insurance carrier, no reasonable estimate of the outcome of the litigation, the related legal fees, or the impact on the financial results of the Company can be made as of the date of this statement. We may become involved in various other routine disputes and allegations incidental to our business operations. While it is not possible to determine the ultimate disposition of these matters, our management believes that the resolution of any such matters, should they arise, is not likely to have a material adverse effect on our financial position or results of operations.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2017
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 9: SUBSEQUENT EVENTS Convertible promissory note On April 11, 2017, the Company issued a convertible promissory note in the principal amount 50,000 500,000 common stock of the Company The Note and Warrant were issued in connection with an election granted under our October 9, 2015 Note and Warrant Purchase Agreement (the “October 2015 Purchase Agreement”) whereby any investor in the October 2015 Purchase Agreement within the three-year period immediately following the initial closing date, may purchase an additional note in the principal amount 50 principal amount of the initial note purchased by such investor at previous closings and an additional warrant with an aggregate exercise price equal to such investor’s the principal amount of such additional note. The Note bears interest at 10 matures the earlier of October 9, 2018 or after the occurrence an event of default (as defined in the Note). In the event of any conversion, all interest shall be also converted into equity and shall not be payable in cash. If the Company sells equity securities in a single transaction or series of related transactions for cash of at least $ 1,000,000 60 The Warrant is exercisable at $ 0.10 60 Common stock In April 2017, the Company issued 41,674 7,126 In May 2017, the Company issued 528,302 1,000,000

ORGANIZATION AND BASIS OF PRE16

ORGANIZATION AND BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Corporate Information and Background AudioEye, Inc. was formed as a Delaware corporation on May 20, 2005. The Company focuses on providing its customers with the most complete and inclusive web accessibility solution available. The Company’s suite of technologies allows its customers to provide their site visitors with an enhanced web experience. When implemented, the Company believes its solutions offer businesses the opportunity to reach more customers, improve brand image, and build additional brand loyalty. In addition, the Company’s solutions provide organizations with the ability to comply with internationally accepted web content accessibility guidelines (WCAG) as well as United States, Canadian and United Kingdom accessibility laws.
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition Revenue is recognized when all applicable recognition criteria have been met, which generally include (a) persuasive evidence of an existing arrangement; (b) fixed or determinable price; (c) delivery has occurred or service has been rendered; and (d) collectability of the sales price is reasonably assured. For software and technology development contracts the Company recognizes revenues on a percentage of completion method based upon several factors including but not limited to (a) estimate of total hours and milestones to complete; (b) total hours completed; (c) delivery of services rendered; (d) change in estimates; and (e) collectability of the contract. The Company had two major customers including their affiliates which each generated approximately 16 16 32 At March 31, 2017, the Company had five customers representing 20 21 30 13 11 95 Certain Software as a Service (SaaS) and website hosting contracts are prepared and invoiced on an annual basis. Any funds received for hosting services not provided yet are held in deferred revenue, and are recorded as revenue when earned.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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. Significant estimates include the fair value of the Company’s stock, stock-based compensation, fair values relating to derivative liabilities, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]	Stock based compensation The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period. Stock-based compensation expense is recorded by the Company in the same expense classifications in the consolidated statements of operations, as if such amounts were paid in cash.
Derivatives, Policy [Policy Text Block]	Derivative Instrument Liability The Company accounts for derivative instruments in accordance with ASC 815, which establishes accounting and reporting standards for derivative instruments and hedging activities, including certain derivative instruments embedded in other financial instruments or contracts and requires recognition of all derivatives on the balance sheet at fair value, regardless of hedging relationship designation. Accounting for changes in fair value of the derivative instruments depends on whether the derivatives qualify as hedging relationships and the types of relationships designated are based on the exposures hedged. At March 31, 2017 and December 31, 2016, the Company did not have any derivative instruments that were designated as hedges. On October 9, 2015, the Company issued convertible promissory notes representing $ 2,500,000 25,000,000 the Company’s common stock. 0.10 5 1,792,000 the Company’s common stock. 0.25 5 In accordance with ASC 815, these outstanding warrants are deemed to contain embedded derivatives. The value of the derivative instrument will fluctuate with the price of the Company’s common stock and is recorded as a current liability on the Company’s Consolidated Balance Sheets. The change in the value of the liability is recorded as “unrealized gain (loss) on derivative liability” on the Consolidated Statements of Operations. This is a non-cash income (expense) item and is adjusted in the “operating activities” of the Consolidated Statements of Cash Flow. At March 31, 2017 and December 31, 2016, the derivative liability was stated at $ 3,173,915 3,478,626 310,773
Fair Value of Financial Instruments, Policy [Policy Text Block]	Fair Value Measurements Fair value is an estimate of the exit price, representing the amount that would be received to upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants (i.e., the exit price at the measurement date). Fair value measurements are not adjusted for transaction cost. Fair value measurement under generally accepted accounting principles provides for use of a fair value hierarchy that prioritizes inputs to valuation techniques used to measure fair value into three levels: Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted market prices that are observable, either directly or indirectly, and reasonably available. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability and are developed based on market data obtained from sources independent of the Company. Level 3: Unobservable inputs reflect the assumptions that the Company develops based on available information about what market participants would use in valuing the asset or liability. An asset or liability’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Availability of observable inputs can vary and is affected by a variety of factors. The Company uses judgment in determining fair value of assets and liabilities and Level 3 assets and liabilities involve greater judgment than Level 1 and Level 2 assets or liabilities. In October and November 2015, the Company issued warrants with an exercise price of $ 0.10 0.10 The Company estimated the fair value of these derivative warrants at initial issuance and again at each balance sheet date. The changes in fair value are recognized in earnings in the Consolidated Statements of Operations under the caption “unrealized gain/(loss) – derivative liability” until such time as the derivative warrants are exercised or expire. The Company used the Black-Scholes Option Pricing model to estimate the fair value of the dates of issuance, the price of the Company stock ranged $ 0.031 0.058 102 1.14 1.75 5 In 2016 and the three months ended March 31, 2017, the Company issued warrants with an exercise price of $ 0.25 the Company’s common stock. The Company estimated the fair value of these derivative warrants at initial issuance and again at each balance sheet date. The changes in fair value are recognized in earnings in the Consolidated Statements of Operations under the caption “unrealized gain/(loss) – derivative liability” until such time as the derivative warrants are exercised or expire. The Company used the Black-Scholes Option Pricing model to estimate the fair value of the dates of issuance, the price of the Company stock ranged $ 0.152 0.195 169 178 1.22 1.87 5 280,777 6,062 At March 31, 2017, the price of the Company stock was $ 0.13 172.0 1.93 3.53 4.79 3,173,915 310,773 Fair Value Fair Value Hierarchy Assets Marketable securities, March 31, 2017 $ 1,200 Level 1 Marketable securities, December 31, 2016 $ 1,200 Level 1 Liabilities Derivative Liability, March 31, 2017 $ 3,173,915 Level 3 Derivative Liability, December 31, 2016 $ 3,478,626 Level 3
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations or cash flows.

ORGANIZATION AND BASIS OF PRE17

ORGANIZATION AND BASIS OF PRESENTATION (Tables)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]	The following are the Company’s assets and liabilities, measured at fair value on a recurring basis, as of March 31, 2017 and December 31, 2016: Fair Value Fair Value Hierarchy Assets Marketable securities, March 31, 2017 $ 1,200 Level 1 Marketable securities, December 31, 2016 $ 1,200 Level 1 Liabilities Derivative Liability, March 31, 2017 $ 3,173,915 Level 3 Derivative Liability, December 31, 2016 $ 3,478,626 Level 3

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2017
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment [Table Text Block]	Property and equipment as of March 31, 2017 and December 31, 2016 is summarized as follows: March 31, December 31, 2017 2016 Computer equipment $ 31,214 $ 25,478 Less accumulated depreciation (25,925) (25,478) Property and equipment, net $ 5,289 $ -

INTANGIBLE ASSETS (Tables)

INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets [Table Text Block]	Prior to any impairment adjustment, intangible assets consisted of the following: March 31, December 31, 2017 2016 Patents $ 3,697,710 $ 3,697,710 Capitalized software development 672,537 621,567 Accumulated amortization (2,151,069) (2,006,028) Intangible assets, net $ 2,219,178 $ 2,313,249

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	3 Months Ended
	Mar. 31, 2017
Notes Payable [Abstract]
Schedule of Debt [Table Text Block]	As of March 31, 2017 and December 31, 2016, the Company has short term notes payable of $ 17,800 23,800 March 31, December 31, Notes and loans payable 2017 2016 Short Term Maryland TEDCO $ 17,800 $ 23,800 Total $ 17,800 $ 23,800

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2017
Stockholders' Equity Attributable to Parent [Abstract]
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	As of March 31, 2017 and December 31, 2016, the Company has outstanding options to purchase 25,931,207 25,731,207 Intrinsic Wtd Avg. Value Number of Wtd Avg. Remaining of Options Exercise Price Term Exercisable Options Outstanding at December 31, 2016 25,731,207 $ 0.20 3.34 15,091,366 $ 1,161,244 Granted 200,000 0.15 5.00 - Forfeited/Expired Outstanding at March 31, 2017 25,931,207 $ 0.20 3.10 15,943,384 $ 1,032,718
Schedule of Other Share-based Compensation, Activity [Table Text Block]	Below is a table summarizing the Company’s outstanding warrants as of March 31, 2017 and December 31, 2016: Intrinsic Wtd Avg. Value Number of Wtd Avg. Remaining of Warrants Exercise Price Term Warrants Outstanding at December 31, 2016 63,433,041 $ 0.15 3.55 $ 3,662,610 Granted 290,000 0.14 3.28 Exercised - Forfeited - Outstanding at March 31, 2017 63,723,041 $ 0.15 3.30 $ 3,218,660
Nonvested Restricted Stock Shares Activity [Table Text Block]	The following table summarizes the restricted stock unit activity for the three months ended March 31, 2017: Restricted stock units issued as of January 1, 2017 1,252,620 Granted 402,297 Total Restricted stock units issued at March 31, 2017 1,654,917 Vested at March 31, 2017 - Unvested restricted stock units as of March 31, 2017 1,654,917

ORGANIZATION AND BASIS OF PRE22

ORGANIZATION AND BASIS OF PRESENTATION (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities held in related party	$ 1,200	$ 1,200
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities held in related party	1,200	1,200
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative Liability, Fair Value, Gross Liability	$ 3,173,915	$ 3,478,626

ORGANIZATION AND BASIS OF PRE23

ORGANIZATION AND BASIS OF PRESENTATION (Details Textual) - USD ($)	Oct. 09, 2015	Nov. 30, 2015	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Jan. 31, 2017
Summary Of Significant Accounting Policies [Line Items]
Payments to Acquire Businesses and Interest in Affiliates, Total			$ 3,173,915
Common Stock Issuance Price Per Share		$ 0.10	$ 0.25
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.10	$ 0.10	0.25			$ 0.25
Share Price			$ 0.13
Fair Value Assumptions, Weighted Average Volatility Rate			172.00%	102.00%
Fair Value Assumptions, Risk Free Interest Rate			1.93%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	5 years		5 years	5 years
Fair Value Adjustment of Warrants			$ 6,062		$ 280,777
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Change in Unrealized Gain (Loss)			$ 310,773
Class Of Warrant Or Right Exercisable Number	25,000,000		1,792,000
Debt Instrument, Face Amount	$ 2,500,000
Derivative Liability, Current			$ 3,173,915		$ 3,478,626
Unrealized Gain (Loss) on Derivatives			$ 310,773	$ (3,412,059)
Warrant [Member]
Summary Of Significant Accounting Policies [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 0.25
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			5 years
Minimum [Member]
Summary Of Significant Accounting Policies [Line Items]
Share Price			$ 0.152	$ 0.031
Fair Value Assumptions, Weighted Average Volatility Rate			169.00%
Fair Value Assumptions, Risk Free Interest Rate			1.22%	1.14%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			3 years 6 months 11 days
Maximum [Member]
Summary Of Significant Accounting Policies [Line Items]
Share Price			$ 0.195	$ 0.058
Fair Value Assumptions, Weighted Average Volatility Rate			178.00%
Fair Value Assumptions, Risk Free Interest Rate			1.87%	1.75%
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			4 years 9 months 14 days
Customer Concentration Risk [Member] | Sales Revenue, Net [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			32.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			95.00%
Customer One [Member] | Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			20.00%
Customer Two [Member] | Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			21.00%
Customer Three [Member] | Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			30.00%
Customer Four [Member] | Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			13.00%
Customer Five [Member] | Accounts Receivable [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			11.00%
Major Customer Number One [Member] | Sales Revenue, Net [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			16.00%
Major Customer Number Two [Member] | Sales Revenue, Net [Member]
Summary Of Significant Accounting Policies [Line Items]
Concentration Risk, Percentage			16.00%

GOING CONCERN AND MANAGEMENT_24

GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Apr. 30, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Going Concern And Management Liquidity Plans [Line Items]
Working Capital Amount		$ 3,077,883
Working Capital		96,032
Cash		783,664		$ 1,409,418
Net Cash Provided by (Used in) Operating Activities, Continuing Operations, Total		(613,048)	$ (564,700)
Proceeds from Issuance or Sale of Equity		$ 50,000
Subsequent Event [Member]
Going Concern And Management Liquidity Plans [Line Items]
Proceeds from Convertible Debt	$ 50,000

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Less accumulated depreciation	$ (25,925)	$ (25,478)
Property and equipment, net	5,289	0
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Computer equipment	$ 31,214	$ 25,478

PROPERTY AND EQUIPMENT (Detai26

PROPERTY AND EQUIPMENT (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Property, Plant and Equipment [Line Items]
Depreciation	$ 447	$ 0

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2014
Related party payables	$ 25,535		$ 32,118
Due To Related Party For Unreimbursed Travel related Expenses	16,000		8,000
Accounts Payable and Accrued Liabilities [Member]
Accrued Rent, Current	0		0
Executive Officer [Member]
Due to Related Parties	5,992		20,575
Nathaniel Bradley
Operating Leases, Rent Expense, Net, Total	500	$ 1,500
Peartrack Security Systems
Related party payables	$ 25,535		32,118
Shares owned	60,000
Ecologic Transportation
Conversion of accounts receivable				$ 60,000
Sean Bradley
Due to Related Parties	$ 3,543		$ 3,543

INTANGIBLE ASSETS (Details)

INTANGIBLE ASSETS (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Intangible Assets
Accumulated amortization	$ (2,151,069)	$ (2,006,028)
Intangible assets, net	2,219,178	2,313,249
Patents
Intangible Assets
Finite-Lived Intangible Assets, Gross	3,697,710	3,697,710
Capitalized software development
Intangible Assets
Finite-Lived Intangible Assets, Gross	$ 672,537	$ 621,567

INTANGIBLE ASSETS (Details Text

INTANGIBLE ASSETS (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Software Development [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	$ 145,041		$ 138,538
Amortization of Intangible Assets	53,459	$ 45,759
Finite-lived Intangible Assets Acquired	50,970	0
Patents [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	3,697,710		$ 3,697,710
Amortization of Intangible Assets	91,582	92,779
Finite-lived Intangible Assets Acquired	$ 0	$ 36,067

NOTES PAYABLE (Details)

NOTES PAYABLE (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Notes and loans payable
Short Term	$ 17,800	$ 23,800
Maryland TEDCO Note
Notes and loans payable
Short Term	$ 17,800	$ 23,800

NOTES PAYABLE (Details Textual)

NOTES PAYABLE (Details Textual) - USD ($)	1 Months Ended	3 Months Ended
	Oct. 24, 2011	Mar. 31, 2017	Dec. 31, 2016	Oct. 09, 2015	Dec. 31, 2012
Debt Instrument [Line Items]
Debt Instrument, Face Amount				$ 2,500,000
Notes and Loans Payable, Current, Total		$ 17,800	$ 23,800
Loans Payable
Debt Instrument [Line Items]
Long-term Debt, Gross					$ 74,900
Debt Instrument, Interest Rate, Stated Percentage					25.00%
Interest Payable, Current					$ 74,900
Maryland TEDCO Note
Debt Instrument [Line Items]
Debt Instrument, Periodic Payment, Total	$ 2,000
Debt Instrument, Face Amount	$ 149,800
Notes and Loans Payable, Current, Total		17,800	23,800
Long-term Debt, Total		17,800	$ 23,800
Repayments of Long-term Debt, Total		$ 6,000

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Number of Options
Outstanding at beginning of the period (in shares)	25,731,207
Outstanding at the end of the period (in shares)	25,931,207	25,731,207
Employee Stock Option
Number of Options
Outstanding at beginning of the period (in shares)	25,731,207
Granted (in shares)	200,000
Forfeited/Expired (in shares)	0
Outstanding at the end of the period (in shares)	25,931,207	25,731,207
Exercisable (in shares)	15,943,384	15,091,366
Wtd Avg. Exercise Price
Outstanding at beginning of the period (in dollars per share)	$ 0.2
Granted (in dollars per share)	0.15
Forfeited/Expired (in dollars per share)	0
Outstanding at end of the period (in dollars per share)	$ 0.2	$ 0.2
Wtd Avg. Remaining Term
Outstanding, Wtd Average Remaining Term	3 years 1 month 6 days	3 years 4 months 2 days
Granted Weighted Average Remaining Term	5 years
Intrinsic Value of Options
Outstanding, Intrinsic Value (in dollars)	$ 1,032,718	$ 1,161,244
Granted, Intrinsic Value of Exercisable Options	$ 0

STOCKHOLDERS' EQUITY (Details 1

STOCKHOLDERS' EQUITY (Details 1) - Warrant - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Number of warrants
Number of shares, beginning	63,433,041
Number of shares, granted	290,000
Number of shares, exercised	0
Number of shares, Forfeited	0
Number of shares, ending	63,723,041	63,433,041
Wtd Avg. Exercise Price
Oustanding (in dollars per share)	$ 0.15
Granted (in dollars per share)	0.14
Oustanding (in dollars per share)	$ 0.15	$ 0.15
Wtd Avg. Remaining Term
Oustanding	3 years 3 months 18 days	3 years 6 months 18 days
Granted	3 years 3 months 11 days
Intrinsic Value of Warrants
Outstanding	$ 3,218,660	$ 3,662,610

STOCKHOLDERS' EQUITY (Details 2

STOCKHOLDERS' EQUITY (Details 2) - Restricted Stock Units (RSUs) [Member]	3 Months Ended
	Mar. 31, 2017shares
Number of shares	1,252,620
Granted	402,297
Number of shares	1,654,917
Vested at March 31, 2017	0
Unvested restricted stock units as of March 31, 2017	1,654,917

STOCKHOLDERS' EQUITY (Details T

STOCKHOLDERS' EQUITY (Details Textual) - USD ($)	Mar. 10, 2017	Mar. 31, 2017	Feb. 28, 2017	Feb. 23, 2017	Jan. 31, 2017	Jan. 17, 2017	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Nov. 30, 2015	Oct. 09, 2015
Class of Stock [Line Items]
Common Stock, Shares, Issued		111,994,142					111,994,142		111,512,001
Common Stock, Shares, Outstanding		111,994,142					111,994,142		111,512,001
Stock Issued During Period, Shares, Issued for Services		41,666	41,666		41,666
Stock Issued During Period, Value, Issued for Services		$ 5,917	$ 5,333		$ 6,625		$ 17,875
Stock Issued During Period, Shares, New Issues					357,143
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.25			$ 0.25		$ 0.25			$ 0.10	$ 0.10
Proceeds from Issuance of Private Placement					$ 50,000
Preferred Stock, Par or Stated Value Per Share		$ 0.00001					$ 0.00001		$ 0.00001
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance		25,931,207					25,931,207		25,731,207
Stock Issued During Period Shares Warrants Exercised					40,000
Employee Stock Option [Member]
Class of Stock [Line Items]
Expected term							3 years 6 months
Expected dividend yield (as a percent)							0.00%
Allocated Share-based Compensation Expense							$ 167,414	$ 138,046
Deferred Compensation Liability, Current and Noncurrent		$ 313,184					$ 313,184
Accredited investors [Member]
Class of Stock [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 0.12
Class Of Warrant Or Right Grant Date Fair Value					$ 29,433
Warrants To Purchase Common Stock Shares					250,000
Warrant [Member]
Class of Stock [Line Items]
Stock Issued During Period Value Warrants Exercised					40,000
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 0.25
Expected term							3 years
Expected volatility (as a percent)							175.64%
Risk-free interest rate (as a percent)							1.48%
Expected dividend yield (as a percent)							0.00%
Allocated Share-based Compensation Expense							$ 44,050	77,732
Deferred Compensation Liability, Current and Noncurrent		$ 33,068					33,068
Restricted Stock Units (RSUs) [Member]
Class of Stock [Line Items]
Stock Issued During Period, Value, Restricted Stock Award, Gross							$ 58,333
Stock Issued During Period, Shares, Restricted Stock Award, Gross				402,297
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period							7 years
Allocated Share-based Compensation Expense								$ 58,333
Options Granted On January 2017 [Member]
Class of Stock [Line Items]
Granted (in shares)						100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 0.159
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date						Jan. 17, 2022
Share Based Compensation Arrangement by Share Based Payment Award, Options, Grants in Period Grant Date Fair Value						$ 11,119
Options Granted On January 2017 [Member] | Share-based Compensation Award, Tranche One [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage						50.00%
Options Granted On January 2017 [Member] | Share-based Compensation Award, Tranche Two [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage						2.08%
Options Granted On March 2017 [Member]
Class of Stock [Line Items]
Granted (in shares)	100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.145
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Date	Mar. 10, 2022
Share Based Compensation Arrangement by Share Based Payment Award, Options, Grants in Period Grant Date Fair Value	$ 12,541
Options Granted On March 2017 [Member] | Share-based Compensation Award, Tranche One [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Options Granted On March 2017 [Member] | Share-based Compensation Award, Tranche Two [Member]
Class of Stock [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	2.08%
Maximum | Employee Stock Option [Member]
Class of Stock [Line Items]
Expected volatility (as a percent)							175.56%
Risk-free interest rate (as a percent)							1.66%
Minimum | Employee Stock Option [Member]
Class of Stock [Line Items]
Expected volatility (as a percent)							173.08%
Risk-free interest rate (as a percent)							1.42%
Series A Preferred Stock [Member]
Class of Stock [Line Items]
Common Stock, Shares, Issued		160,000					160,000
Redemption Price (in dollars per share)		$ 0.1754					$ 0.1754
Preferred Stock, Dividend Rate, Percentage							5.00%
Preferred Stock, Par or Stated Value Per Share		$ 10					$ 10

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details Textual)	1 Months Ended
	Jul. 25, 2016USD ($)
Commitments And Contingencies [Line Items]
Litigation Settlement, Amount	$ 1,525,000
Payments for Legal Settlements	$ 100,000

SUBSEQUENT EVENTS (Details Text

SUBSEQUENT EVENTS (Details Textual) - USD ($)	Apr. 11, 2017	May 31, 2017	Mar. 31, 2017	Feb. 28, 2017	Jan. 31, 2017	Mar. 31, 2017	Nov. 30, 2015	Oct. 09, 2015
Subsequent Event [Line Items]
Common stock issued for services			41,666	41,666	41,666
Debt Instrument, Face Amount								$ 2,500,000
Class of Warrant or Right, Exercise Price of Warrants or Rights			$ 0.25		$ 0.25	$ 0.25	$ 0.10	$ 0.10
Stock Issued During Period, Value, Issued for Services			$ 5,917	$ 5,333	$ 6,625	$ 17,875
Common Stock
Subsequent Event [Line Items]
Common stock issued for services						124,998
Stock Issued During Period, Value, Issued for Services						$ 1
Warrant [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 0.25
Subsequent Event
Subsequent Event [Line Items]
Stock Issued During Period, Shares, Common Stock In Exchange For Warrants		528,302
Warrant Exercise, Shares Issued		1,000,000
Subsequent Event | Common Stock
Subsequent Event [Line Items]
Common stock issued for services	41,674
Stock Issued During Period, Value, Issued for Services	$ 7,126
Subsequent Event | Warrant [Member]
Subsequent Event [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.10
Warrants Term	60 months
Proceeds from Sale of Available-for-sale Securities, Equity	$ 1,000,000
Debt Conversion Total Issued And Outstanding Common Shares Percent	60.00%
Subsequent Event | Note and Warrant Purchase Agreement
Subsequent Event [Line Items]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	500,000
Debt Instrument, Face Amount	$ 50,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	50.00%
Debt Instrument, Interest Rate, Stated Percentage	10.00%