CareView Communications (CRVW) 10-Q 15 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 15, 2016
Document And Entity Information
Entity Registrant Name	CareView Communications Inc
Entity Central Index Key	1,377,149
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity a Well-known Seasoned Issuer	No
Entity a Voluntary Filer	No
Entity's Reporting Status Current	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		139,380,748
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Current Assets:
Cash and cash equivalents	$ 14,086,306	$ 17,678,969
Accounts receivable, net	1,057,554	1,176,404
Other current assets	398,258	471,075
Total current assets	15,542,118	19,326,448
Property and equipment, net	4,331,382	4,483,440
Other Assets:
Restricted cash	3,250,000	3,250,000
Intangible assets, net	565,262	380,765
Other assets	2,410,096	2,689,758
[Assets Noncurrent]	6,225,358	6,320,523
Total assets	26,098,858	30,130,411
Current Liabilities:
Accounts payable	337,944	332,402
Notes payable	440,637	441,498
Mandatorily redeemable equity in joint venture	440,637	441,498
Accrued interest	294,812	261,450
Other current liabilities	630,837	479,226
Total current liabilities	2,144,867	1,956,074
Long-term Liabilities:
Senior secured convertible notes, net of debt discount and debt costs of $22,751,154 and $23,041,363, respectively	37,451,308	33,729,093
Loan payable	20,000,000	20,000,000
Fair value of warrant liability	11,785	168,805
Total long-term liabilities	57,463,093	53,897,898
Total liabilities	59,607,960	55,853,972
Commitments and Contingencies
Stockholders' Deficit:
Preferred stock - par value $0.001; 20,000,000 shares authorized; no shares issued and outstanding
Common stock - par value $0.001; 300,000,000 shares authorized; 139,380,748 issued and outstanding	139,381	139,381
Additional paid in capital	83,803,065	82,434,461
Accumulated deficit	(116,918,332)	(107,795,712)
Total CareView Communications Inc. stockholders' deficit	(32,975,886)	(25,221,870)
Noncontrolling interest	(533,216)	(501,691)
Total stockholders' deficit	(33,509,102)	(25,723,561)
Total liabilities and stockholders' deficit	$ 26,098,858	$ 30,130,411

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) (Parenthetical) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	139,380,748	139,380,748
Common stock, shares outstanding	139,380,748	139,380,748
2011 Senior Secured Convertible Note#1 [Member]
Debt discount and debt issuance costs (in dollars)	$ 22,751,154	$ 23,041,363

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
Revenues, net	$ 1,534,116	$ 1,266,391	$ 3,029,909	$ 2,266,945
Operating expenses:
Network operations	1,135,494	1,304,973	2,287,601	2,135,067
General and administration	912,280	923,056	1,967,138	1,761,365
Sales and marketing	153,353	233,154	375,041	430,776
Research and development	328,389	306,445	577,487	531,641
Depreciation and amortization	451,569	442,248	896,985	858,152
Total operating expense	2,981,085	3,209,876	6,104,252	5,717,001
Operating loss	(1,446,969)	(1,943,485)	(3,074,343)	(3,450,056)
Other income and (expense)
Interest expense	(3,099,911)	(2,217,846)	(6,251,468)	(4,263,747)
Change in fair value of warrant liability	72,523	225,147	157,020	(12,954)
Interest income	4,468	1,342	9,438	2,485
Other income	88	615	5,208	1,740
Total other income (expense)	(3,022,832)	(1,990,742)	(6,079,802)	(4,272,476)
Loss before taxes	(4,469,801)	(3,934,227)	(9,154,145)	(7,722,532)
Net loss	(4,469,801)	(3,934,227)	(9,154,145)	(7,722,532)
Net loss attributable to noncontrolling interest	(15,415)	(16,482)	(31,525)	(32,704)
Net loss attributable to CareView Communications, Inc.	$ (4,454,386)	$ (3,917,745)	$ (9,122,620)	$ (7,689,828)
Net loss per share attributable to CareView Communications, Inc., basic and diluted (in dollars per share)	$ (0.03)	$ (0.03)	$ (0.07)	$ (0.06)
Weighted average number of common shares outstanding, basic and diluted (in shares)	139,380,748	139,380,748	139,380,748	139,380,748

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT (Unaudited) - 6 months ended Jun. 30, 2016 - USD ($)	Common Stock [Member]	Additional Paid in Capital [Member]	Accumulated Deficit [Member]	Noncontrolling Interest [Member]	Total
Balance, beginning at Dec. 31, 2015	$ 139,381	$ 82,434,461	$ (107,795,712)	$ (501,691)	$ (25,723,561)
Balance, beginning (in shares) at Dec. 31, 2015	139,380,748
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options granted as compensation		380,535			380,535
Beneficial conversion features for senior secured convertible notes		988,069			988,069
Net loss			(9,112,620)	(31,525)	(9,154,145)
Balance, ending at Jun. 30, 2016	$ 139,381	$ 83,803,065	$ (116,918,332)	$ (533,216)	$ (33,509,102)
Balance, ending (in shares) at Jun. 30, 2016	139,380,748

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITES
Net loss	$ (9,154,145)	$ (7,722,532)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation	863,456	838,300
Provision for doubtful accounts		5,588
Amortization of debt discount and debt costs	1,278,278	1,110,863
Amortization of deferred installation costs	190,635	168,607
Amortization of deferred debt issuance and debt financing costs	145,542	2,431
Amortization of intangible assets	33,529	19,852
Amortization of prepaid expense		15,915
Interest incurred and paid in kind	3,432,006	3,089,342
Stock based compensation related to options granted	380,535	410,033
Loss on disposal of assets	1,459	43,740
Change in fair value of warrant liability	(157,020)	12,954
Changes in operating assets and liabilities:
Accounts receivable	118,850	(215,176)
Other current assets	75,992	(73,306)
Other assets	8,197	(747,283)
Accounts payable	5,542	266,512
Accrued expenses and other current liabilities	184,973	363,605
Net cash flows used in operating activities	(2,592,171)	(2,410,555)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	(712,857)	(580,053)
Payment for deferred installation costs	(64,712)	(159,069)
Patent and trademark costs	(221,201)	(52,527)
Net cash flows used in investing activities	(998,770)	(791,649)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes and loan payable		5,901,445
Repayment of notes payable	(861)
Repayment of mandatorily redeemable equity in join venture	(861)
Net cash flows (used in) provided by financing activities	(1,722)	5,901,445
Increase (decrease) in cash	(3,592,663)	2,699,241
Cash and cash equivalent, beginning of period	17,678,969	2,546,262
Cash and cash equivalents, end of period	14,086,306	5,245,503
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash paid for interest	1,362,550	10,170
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING ACTIVITIES:
Beneficial conversion features for senior secured convertible notes	$ 988,069	928,256
Warrants issued in connection with the senior secured convertible notes		1,471,105
Warrants issued in connection with credit facility		$ 1,257,778

BASIS OF PRESENTATION AND RECEN

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS	NOTE 1 – BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Interim Financial Statements The accompanying unaudited interim condensed consolidated financial statements of CareView Communications, Inc. (“CareView”, the “Company”, “we”, “us” or “our”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. 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 and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results for the full year. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the SEC on March 30, 2016. Fair Value of Financial Instruments Our financial instruments consist primarily of receivables, accounts payable, accrued expenses and short- and long-term debt. The carrying amount of receivables, accounts payable and accrued expenses approximates our fair value because of the short-term maturity of such instruments. We have elected not to carry our debt instruments at fair value. The carrying amount of our debt approximates fair value. Interest rates that are currently available to us for issuance of short- and long-term debt with similar terms and remaining maturities are used to estimate the fair value of the our short- and long-term debt and would be considered Level 3 inputs under the fair value hierarchy. We have categorized our assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy in accordance with GAAP. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the condensed consolidated balance sheets at fair value are categorized based on a hierarchy of inputs, as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 - Unobservable inputs for the asset or liability. The Company’s financial assets and liabilities recorded at fair value on a recurring basis include the fair value of warrant liability as detailed below. The fair value of this warrant liability is included in long-term liabilities on the accompanying condensed consolidated financial statements. The following table provides the financial assets and liabilities reported at fair value and measured on a recurring basis: Description Assets/ Quoted Prices Significant Significant Fair value of warrant liability $ (11,785 ) $ — $ — $ (11,785 ) The following table provides a summary of changes in fair value associated with the Level 3 liabilities for the six months ended June 30, 2016: Fair Value Measurements Balance at January 1, 2016 $ (168,805 ) Issuances of derivative liabilities — Change in fair value of warrant liability 157,020 Transfers in and/out of Level 3 — Ending balance at June 30, 2016 $ (11,785 ) The above table of Level 3 liabilities begins with the prior period balance and adjusts the balance for changes that occurred during the current period. The ending balance of the Level 3 securities presented above represent our best estimates and may not be substantiated by comparisons to independent markets and, in many cases, could not be realized in immediate settlement of the instruments. Earnings Per Share We calculate earnings per share (“EPS”) in accordance with GAAP, which requires the computation and disclosure of two EPS amounts, basic and diluted. Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of common shares outstanding plus all potentially dilutive common shares outstanding during the period under the treasury stock method. Such potential dilutive common shares consist of stock options, warrants and convertible debt. Potential common shares totaling 111,459,660 and 110,516,873 at June 30, 2016 and 2015, respectively, have been excluded from the diluted earnings per share calculation as they are anti-dilutive due to our reported net loss. Recently Issued and Newly Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board, (“FASB”), issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting. This guidance simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted in any annual or interim period for which financial statements have not been issued or made available for issuance, but all of the guidance must be adopted in the same period. If an entity early adopts the guidance in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. We are currently evaluating the impact of this guidance on our consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are evaluating the impact that ASU 2016-03 will have on our consolidated financial statements and related disclosures. There have been no material changes to our significant accounting policies as summarized in NOTE 2 of our Annual Report on Form 10-K for the year ended December 31, 2015. We do not expect that the adoption of any recent accounting pronouncements will have a material impact on our accompanying condensed consolidated financial statements.

LIQUIDITY AND MANAGEMENT'S PLAN

LIQUIDITY AND MANAGEMENT'S PLAN	6 Months Ended
	Jun. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
LIQUIDITY AND MANAGEMENT'S PLAN	NOTE 2 – LIQUIDITY AND MANAGEMENT’S PLAN Our cash position at June 30, 2016 was approximately $14,086,000. We also have $3,250,000 recorded as restricted cash related to a debt covenant in our credit agreement with PDL BioPharma, Inc. as discussed below. Pursuant to the terms of a Note and Warrant Purchase Agreement dated April 21, 2011 (as subsequently amended) with HealthCor Partners Fund, LP and HealthCor Hybrid Offshore Master Fund, LP (“HealthCor”) we are required to maintain a minimum cash balance $2,000,000 (see NOTE 11 for further details), and we are in compliance with the minimum cash balance as of the date of this filing. Our continued successful operation is dependent upon us achieving positive cash flow through operations while maintaining adequate liquidity. We expect that the cash on hand, as well as our existing and projected cash flow from billable contracts, will enable us to continue to operate for the next twelve month period. We believe that our sales and marketing plan to attract new business and our ongoing deployment and installation of units under existing hospital agreements, will meet our near-term cash needs and will help us achieve future operating profitability. At present, we have sufficient inventory to install and service a select number of large customers, but eventually we will need to address additional capital requirements. To that end, on June 26, 2015, we entered into a Credit Agreement with PDL Biopharma, Inc., as administrative agent and lender (“the Lender”), (the “PDL Credit Agreement”) pursuant to which the Lender made available to us up to $40 million in two tranches of $20 million each, with each tranche contingent upon us meeting certain milestones. On October 7, 2015, pursuant to the First Amendment to the PDL Credit Agreement (the “First Amendment”) the Lender made the first tranche of $20 million available and funded us $19,533,992, net of fees. As of June 30, 2016, we are including $20 million in long-term liabilities on the accompanying condensed consolidated financial statements. Pursuant to the terms of the PDL Credit Agreement, we are required to maintain a minimum cash balance $3,250,000, and we are in compliance with the minimum cash balance as of the date of this filing (see NOTE13 for further details). No funds under the second tranche of the PDL Credit Agreement were available to us as of June 30, 2016.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 3 – STOCKHOLDERS’ EQUITY Warrants to Purchase Common Stock of the Company We use the Black-Scholes-Merton option pricing model (the “Black-Scholes Model”) to determine the fair value of warrants to purchase Common Stock of the Company (“Warrants”) (except certain Warrants issued to HealthCor in 2011 as discussed in NOTE 11 and the warrants issued in connection with a private placement completed in April 2013 (the “Private Placement Warrants”). The Private Placement Warrants contain provisions that protect the holders from a decline in the issue price of our common stock or “down round” provisions. In accordance with the accounting standards, we determined that these instruments qualify as derivative liabilities and should be recorded at their fair value on the date of issuance and re-measured at fair value each reporting period with the change reported in earnings). The Black-Scholes Model is an acceptable model in accordance with the GAAP. The Black-Scholes Model requires the use of a number of assumptions including volatility of the stock price, the weighted average risk-free interest rate, and the weighted average term of the Warrant. The fair value of the Warrants issued to HealthCor and the Private Placement Warrants was computed using the Binomial Lattice model, incorporating transaction details such as the price of our Common Stock, contractual terms, maturity and risk free rates, as well as assumptions about future financings, volatility, and holder behavior. Due to the down round provisions associated with the exercise price of these Warrants, we determined that the Binomial Lattice model was the most appropriate model for valuing these instruments. As discussed in NOTE 11 , the Warrants issued to HealthCor in 2011 were substantially amended and no longer contain down round provisions. The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the term of the Warrants and is calculated by using the average daily historical stock prices through the day preceding the grant date. Estimated volatility is a measure of the amount by which our stock price is expected to fluctuate each year during the expected life of the award. Our estimated volatility is an average of the historical volatility of our stock prices (and that of peer entities whose stock prices were publicly available). Our calculation of estimated volatility is based on historical stock prices over a period equal to the expected life of the awards. Where appropriate we used the historical volatility of peer entities due to the lack of sufficient historical data of our stock price during 2007-2009. Warrant Activity during the Six Months Ended June 30, 2016 During the six months ended June 30, 2016, no Warrants were issued and none were exercised or expired. As of December 31, 2015, we recorded a warrant liability of $168,805 in our consolidated financial statements. At June 30, 2016, the Private Placement Warrants were re-valued with a fair value determination of $11,785, resulting in a difference of $157,020, which was included as change in fair value of warrant liability in other income and expense in the accompanying condensed consolidated financial statements. Warrant Activity during the Six Months Ended June 30, 2015 On June 26, 2015, in conjunction with the PLD Credit Agreement, we issued a warrant to purchase 4,444,445 shares of our Common Stock, subject to adjustment as described therein (the “PDL Warrant”). The PDL Warrant has an exercise price of $0.45, a fair value of $1,257,778, and expires on June 26, 2025 (see NOTE 12 for further details). On February 17, 2015, we entered into a Fifth Amendment to the Note and Warrant Purchase Agreement with HealthCor and certain other investors and agreed to sell and issue (i) additional notes in the initial aggregate principal amount of $6,000,000, with a conversion price per share equal to $0.52 (subject to adjustment for standard anti-dilution provisions) and (ii) additional Warrants for an aggregate of up to 3,692,307 shares of our Common Stock at an exercise price per share equal to $0.52 (subject to adjustment for standard anti-dilution provisions) (the “Fifth Amendment Warrants”). The fair value of the convertible debt and the Fifth Amendment Warrants was determined to be $7,336,615, resulting in a relative fair value of $1,093,105 for the Fifth Amendment Warrants on the date of grant (see NOTE 11 for further details). On March 31, 2015, we issued HealthCor a Warrant for up to an aggregate of 1,000,000 shares of our Common Stock in consideration for certain prior waivers of the minimum cash balance requirement in the Purchase Agreement. This Warrant has an exercise price of $0.53 per share and an expiration date of March 31, 2025 (see NOTE 11 for further details). During the six months ended June 30, 2015, warrants to purchase an aggregate of 2,892,686 shares of our Common Stock expired. Options to Purchase Common Stock of the Company During the six months ended June 30, 2016, we granted options to purchase 20,000 shares of our Common Stock (the ‘‘Option(s)’’) to an employee. During the six months ended June 30, 2015, we granted 1,815,000 Options to certain employees and members of our board of directors. During those same six month periods, 118,336 and 77,837 Options, respectively, were canceled and 126,665 and 6,261,308 Options, respectively, expired. A summary of our stock option activity and related information follows: Number of Shares Under Options Weighted Average Exercise Weighted Average Remaining Contractual Life Aggregate Intrinsic Balance at December 31, 2015 9,350,667 $ 0.58 7.6 $ 15,705 Granted 20,000 $ 0.30 $ — Expired (126,665 ) Canceled (118,336 ) Balance at June 30, 2016 9,125,666 $ 0.57 7.1 $ — Vested and Exercisable at June 30, 2016 5,694,496 $ 0.63 6.5 $ — The valuation methodology used to determine the fair value of the Options issued was the Black-Scholes Model. The assumptions used in the Black-Scholes Model are set forth in the table below. Six Months Ended Year Ended December 31, 2015 Risk-free interest rate 1.39 % 1.41-1.74 % Volatility 63.49 % 71.30-71.86 % Expected life in years 6 6 Dividend yield 0.00 % 0.00 % The risk-free interest rate assumption is based upon observed interest rates on zero coupon U.S. Treasury bonds whose maturity period is appropriate for the expected term of the Option and is calculated by using the average daily historical stock prices through the day preceding the grant date. Estimated volatility is a measure of the amount by which our stock price is expected to fluctuate each year during the expected life of the award. Our estimated volatility is an average of the historical volatility of our stock prices. Our calculation of estimated volatility is based on historical stock prices over a period equal to the expected life of the awards. Share-based compensation expense for Options charged to our operating results for the six months ended June 30, 2016 and 2015 ($380,467 and $410,034, respectively) is based on awards vested. The estimate of forfeitures are to be recorded at the time of grant and revised in subsequent periods if actual forfeitures differ from the estimates. We have not included an adjustment to our stock based compensation expense based on the nominal amount of the historical forfeiture rate. We do, however, revise our stock based compensation expense based on actual forfeitures during each reporting period. At June 30, 2016, total unrecognized estimated compensation expense related to non-vested Options granted prior to that date was approximately $642,200, which is expected to be recognized over a weighted-average period of 1.3 years. No tax benefit was realized due to a continued pattern of operating losses.

OTHER CURRENT ASSETS

OTHER CURRENT ASSETS	6 Months Ended
	Jun. 30, 2016
Other Current Assets
OTHER CURRENT ASSETS	NOTE 6 – OTHER ASSETS Intangible assets consist of the following: June 30, 2016 Cost Accumulated Amortization Net Patents and trademarks $ 637,745 $ 80,554 $ 557,191 Other intangible assets 53,088 45,017 8,071 TOTAL INTANGIBLE ASSETS $ 690,833 $ 125,571 $ 565,262 December 31, 2015 Cost Accumulated Amortization Net Patents and trademarks $ 420,137 $ 53,706 $ 366,431 Other intangible assets 56,263 41,929 14,334 TOTAL INTANGIBLE ASSETS $ 476,400 $ 95,635 $ 380,765 Other assets consist of the following: June 30, 2016 Cost Accumulated Amortization Net Deferred debt issuance costs $ 1,257,778 $ 181,684 $ 1,076,094 Prepaid financing costs 805,917 129,768 676,149 Deferred installation costs 1,852,581 1,411,617 440,964 Prepaid license fee 249,999 79,234 170,765 Security deposit 46,124 — 46,124 TOTAL OTHER ASSETS $ 4,212,399 $ 1,802,303 $ 2,410,096 Other assets consist of the following: December 31, 2015 Cost Accumulated Amortization Net Deferred debt issuance costs $ 1,257,778 $ 91,840 $ 1,165,938 Deferred financing costs 805,917 74,070 731,847 Deferred installation costs 1,787,869 1,220,982 566,887 Prepaid license fee 249,999 71,037 178,962 Security deposit 46,124 — 46,124 TOTAL OTHER ASSETS $ 4,147,687 $ 1,457,929 $ 2,689,758

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT	NOTE 5 – PROPERTY AND EQUIPMENT Property and equipment consist of the following: June 30, December 31, Network equipment $ 11,963,452 $ 11,310,494 Office equipment 224,423 200,683 Vehicles 161,584 158,803 Test equipment 141,032 115,712 Furniture 85,156 81,838 Warehouse equipment 9,524 9,524 Leasehold improvements 5,121 5,121 12,590,292 11,882,175 Less: accumulated depreciation (8,258,910 ) (7,398,735 ) TOTAL PROPERTY AND EQUIPMENT $ 4,331,382 $ 4,483,440 Depreciation expense for the six months ended June 30, 2016 and 2015 was $863,456 and $838,300, respectively.

OTHER ASSETS

OTHER ASSETS	6 Months Ended
	Jun. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
OTHER ASSETS	NOTE 6 – OTHER ASSETS Intangible assets consist of the following: March 31, 2016 Cost Accumulated Amortization Net Patents and trademarks $ 591,747 $ 74,018 $ 517,729 Other intangible assets 56,263 43,473 12,790 TOTAL INTANGIBLE ASSETS $ 648,010 $ 117,491 $ 530,519 December 31, 2015 Cost Accumulated Amortization Net Patents and trademarks $ 420,137 $ 53,706 $ 366,431 Other intangible assets 56,263 41,929 14,334 TOTAL INTANGIBLE ASSETS $ 476,400 $ 95,635 $ 380,765 Other assets consist of the following: March 31, 2016 Cost Accumulated Amortization Net Deferred debt issuance costs $ 1,257,778 $ 136,763 $ 1,121,015 Prepaid financing costs 805,917 101,919 703,998 Deferred installation costs 1,825,804 1,323,523 502,281 Prepaid license fee 249,999 75,135 174,864 Security deposit 46,124 — 46,124 TOTAL OTHER ASSETS $ 4,185,622 $ 1,637,340 $ 2,548,282 Other assets consist of the following: December 31, 2015 Cost Accumulated Amortization Net Deferred debt issuance costs $ 1,257,778 $ 91,840 $ 1,165,938 Deferred financing costs 805,917 74,070 731,847 Deferred installation costs 1,787,869 1,220,982 566,887 Prepaid license fee 249,999 71,037 178,962 Security deposit 46,124 — 46,124 TOTAL OTHER ASSETS $ 4,147,687 $ 1,457,929 $ 2,689,758

OTHER CURRENT LIABILITIES

OTHER CURRENT LIABILITIES	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
OTHER CURRENT LIABILITIES	NOTE 7 – OTHER CURRENT LIABILITIES Other current liabilities consist of the following: June 30, December 31, 2015 Accrued taxes $ 251,530 $ 235,162 Allowance for system removal 149,750 54,771 Accrued paid time off 101,285 108,526 Accrued insurance 70,430 — Accrued professional services 35,000 67,500 Other accrued liabilities 22,842 13,267 TOTAL OTHER CURRENT LIABILITIES $ 630,837 $ 479,226

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 8 – INCOME TAXES Deferred income tax assets and liabilities are determined based upon differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. We do not expect to pay any significant federal or state income tax for 2016 as a result of the losses recorded during the six months ended June 30, 2016 and the additional losses expected for the remainder of 2016 and net operating loss carry forwards from prior years. Accounting standards require the consideration of a valuation allowance for deferred tax assets if it is “more likely than not” that some component or all of the benefits of deferred tax assets will not be realized. As of June 30, 2016, we maintained a full valuation allowance for all deferred tax assets. Based on these requirements, no provision or benefit for income taxes has been recorded. There were no recorded unrecognized tax benefits at the end of the reporting period.

JOINT VENTURE AGREEMENT

JOINT VENTURE AGREEMENT	6 Months Ended
	Jun. 30, 2016
Equity Method Investments and Joint Ventures [Abstract]
JOINT VENTURE AGREEMENT	NOTE 9 – JOINT VENTURE AGREEMENT On November 16, 2009, we entered into a Master Investment Agreement (the “Rockwell Agreement”) with Rockwell Holdings I, LLC, a Wisconsin limited liability (“Rockwell”). Under the terms of the Rockwell Agreement, we used funds from Rockwell to fully implement the CareView System™ in Hillcrest Medical Center in Tulsa, Oklahoma (“Hillcrest”) and Saline Memorial Hospital in Benton, Arkansas (“Saline”) (the “Project Hospital(s)”). CareView-Hillcrest, LLC and CareView-Saline, LLC were created as the operating entities for the Project Hospitals under the Rockwell Agreement (the “Project LLC(s)”). Rockwell and the Company own 50% of each Project LLC. We contributed our intellectual property rights and hospital contract with each Project Hospital and Rockwell contributed cash to be used for the purchase of equipment for the Project LLCs. Rockwell provided $1,151,205 as the initial funding, $575,603 was provided under promissory notes (the “Project Notes”) and $575,602 was provided under an investment interest (“Rockwell’s Preferential Return”). We classified Rockwell’s Preferential Return as a liability since it represents an unconditional obligation by us and is recorded in mandatorily redeemable equity in joint venture on the accompanying consolidated financial statements. The Project Notes and Rockwell’s Preferential Returns both earn interest at the rate of ten percent (10%) and are secured by a security interest in all of the equipment in the Project Hospitals, intellectual property rights, and the Project Hospital Contract. In accordance with GAAP, we determined the Project LLCs are VIEs based on the fact that the total equity investment at risk was not sufficient to finance the entities activities without additional financial support. We consolidate the Project LLCs as we have the power to direct the activities and an obligation to absorb losses of the VIEs. We have no contractual liability to Rockwell with respect to the repayment obligations of the Project LLCs. As additional consideration to Rockwell for providing the funding, we granted Rockwell 1,151,206 Warrants on the date of the Rockwell Agreement, and using the Black-Scholes Model valued the Warrants at $1,124,728 (the “Project Warrant”). The Project Warrant is classified as equity and is included in additional paid-in-capital on the accompanying condensed consolidated financial statements. We allocated the proceeds to the Project Warrant, the Project Notes and Preferential Returns based on the relative fair value. The originally recorded debt discount of $636,752 was amortized over the expected life of the debt and was fully amortized as of March 31, 2013. Hillcrest notified us of its desire to terminate its hospital agreement effective January 27, 2012. This termination resulted in the loss of monthly revenue totaling approximately $20,000, which revenue was used to make payments on our indebtedness to Rockwell. To date, we have incurred system removal costs of approximately $3,000 for removing our equipment from the hospital premises. We currently have approximately 100 units remaining on site at Hillcrest. Included in other current liabilities in the accompanying condensed consolidated financial statements is an allowance for system removal totaling $10,250 to reserve for the removal of the remaining units. As of June 30, 2016, the Project LLCs’ indebtedness to Rockwell, including principal and interest totaled approximately $1,176,000. On February 19, 2015, the Project Notes and Rockwell’s Preferential Returns due dates were extended to June 30, 2016. In October 2015, the expiration date of the Project Warrants was extended to November 16, 2017. All other provisions of the Project Warrant remained unchanged. The Project Warrant were revalued in October 2015 resulting in a $102,457 increase in fair value, which has been recorded as non-cash costs included in general and administration expense in the accompanying condensed consolidated financial statements. CareView, as 50% owner of the LLCs, is currently negotiating with Rockwell to settle the debt of the LLCs through the issuance of shares of CareView’s Common Stock. Although CareView anticipates that this settlement will be forthcoming in the near future, CareView and the LLCs can give no assurances that a settlement will be negotiated, or if negotiated and settled, that it will be through the issuance of CareView’s Common Stock.

VARIABLE INTEREST ENTITIES

VARIABLE INTEREST ENTITIES	6 Months Ended
	Jun. 30, 2016
Variable Interest Entities
VARIABLE INTEREST ENTITIES	NOTE 10 – VARIABLE INTEREST ENTITIES The Company consolidates VIEs of which it is the primary beneficiary. The liabilities recognized as a result of consolidating these VIEs do not necessarily represent additional claims on our general assets; rather, they represent claims against the specific assets of the consolidated VIEs. Conversely, assets recognized as a result of consolidating these VIEs do not represent additional assets that could be used to satisfy claims against our general assets. The total consolidated VIE assets and liabilities reflected on our condensed consolidated balance sheets at June 30, 2016 and December 31, 2015 are as follows: June 30, December 31, Assets Cash $ 268 $ 2,146 Receivables 4,731 4,731 Total current assets 4,999 6,877 Property, net 36,544 50,382 Total assets $ 41,543 $ 57,259 Liabilities Accounts payable $ 136,975 $ 132,170 Accrued interest 294,812 261,450 Other current liabilities 27,396 26,936 Notes payable 440,637 441,498 Mandatorily redeemable interest 440,637 441,498 Total liabilities $ 1,340,457 $ 1,303,552 The financial performance of the consolidated VIEs reflected on our condensed consolidated statements of operations for the six months ended June 30, 2016 and 2015 is as follows: June 30, 2016 2015 Revenue $ 14,194 $ 14,194 Network operations expense 8,329 8,328 General and administrative expense 460 1,485 Depreciation 24,265 24,492 Total operating costs 33,054 34,305 Operating loss (18,860 ) (20,111 ) Other expense (44,190 ) (45,296 ) Loss before taxes (63,050 ) (65,407 ) Provision for taxes — — Net loss (63,050 ) (65,407 ) Net loss attributable to noncontrolling interest (31,525 ) (32,704 ) Net loss attributable to CareView Communications, Inc. $ (31,525 ) $ (32,703 )

AGREEMENT WITH HEALTHCOR

AGREEMENT WITH HEALTHCOR	6 Months Ended
	Jun. 30, 2016
Agreement With Healthcor
AGREEMENT WITH HEALTHCOR	NOTE 11 – AGREEMENT WITH HEALTHCOR On April 21, 2011, we entered into a Note and Warrant Purchase Agreement (as subsequently amended) (the “HealthCor Purchase Agreement”) with HealthCor. Pursuant to the terms HealthCor Purchase Agreement, we sold Senior Secured Convertible Notes to HealthCor in the principal amount of $9,316,000 and $10,684,000, respectively (collectively the “2011 HealthCor Notes”). The 2011 HealthCor Notes have a maturity date of April 20, 2021. We also issued Warrants to HealthCor for the purchase of an aggregate of up to 5,488,456 and 6,294,403 shares, respectively, of our Common Stock at an exercise price of $1.40 per share (collectively the “2011 HealthCor Warrants”). So long as no event of default has occurred, the outstanding principal balances of the 2011 HealthCor Notes accrue interest from April 21, 2011 through April 20, 2016 (the “First Five Year Note Period”) at the rate of 12.5% per annum, compounding quarterly and shall be added to the outstanding principal balances of the 2011 HealthCor Notes on the last day of each calendar quarter. Interest accruing from April 21, 2016 through April 20, 2021 (the “Second Five Year Note Period”) at a rate of 10% per annum, compounding quarterly, may be paid quarterly in arrears in cash or, at our option, such interest may be added to the outstanding principal balances of the 2011 HealthCor Notes on the last day of each calendar quarter. From the date any event of default occurs, the interest rate, then applicable, shall be increased by five percent (5%) per annum. HealthCor has the right, upon an event of default, to declare due and payable any unpaid principal amount of the 2011 HealthCor Notes then outstanding, plus previously accrued but unpaid interest and charges, together with the interest then scheduled to accrue (calculated at the default rate described in the immediately preceding sentence) through the end of the First Five Year Note Period or the Second Five Year Note Period, as applicable. At any time after April 21, 2011, HealthCor is entitled to convert any portion of the outstanding and unpaid accrued interest on and principal balances of the 2011 HealthCor Notes into fully paid and non-assessable shares of our Common Stock at a conversion rate of $1.25 per share, subject to adjustment in accordance with anti-dilution provisions set forth in the 2011 HealthCor Notes. As of June 30, 2016, the underlying shares of our Common Stock related to the 2011 HealthCor Notes totaled approximately 30,182,000. On January 31, 2012, we entered into the Second Amendment to the HealthCor Purchase Agreement with HealthCor (the “Second Amendment”) amending the HealthCor Purchase Agreement, and sold Senior Secured Convertible Notes to HealthCor in the principal amounts of $2,329,000 and $2,671,000, respectively (collectively the “2012 HealthCor Notes”). As provided by the Second Amendment, the 2012 HealthCor Notes are in substantially the same form as the 2011 HealthCor Notes, with changes to the “Issuance Date,” “Maturity Date,” “First Five Year Note Period” and other terms to take into account the timing of the issuance of the 2012 HealthCor Notes. The 2012 HealthCor Notes have a maturity date of January 30, 2022. In addition, the provisions regarding interest payments, interest acceleration, optional conversion, negative covenants, and events of default, preemptive rights and registration rights are the same as those of the 2011 HealthCor Notes. At any time after January 30, 2012, HealthCor is entitled to convert any portion of the outstanding and unpaid accrued interest on and principal balances of the 2012 HealthCor Notes into fully paid and non-assessable shares of our Common Stock at a conversion rate of $1.25 per share, subject to adjustment in accordance with anti-dilution provisions set forth in the 2012 HealthCor Notes. As of June 30, 2016, the underlying shares of our Common Stock related to the 2012 HealthCor Notes totaled approximately 6,888,000. On August 20, 2013, we entered into a Third Amendment to the HealthCor Purchase Agreement with HealthCor (the “Third Amendment”) to redefine our minimum cash balance requirements. Previously we were required to maintain a minimum cash balance of $5,000,000 and should we drop below that balance, it triggered a default. The Third Amendment allowed for a reduced minimum cash period, as defined in the HealthCor Purchase Agreement, which allowed us to drop below $5,000,000, but not below $4,000,000. All other terms and conditions of the HealthCor Purchase Agreement, including all amendments thereto, remain the same. Upon entering the reduced minimum cash period (which occurred on October 7, 2013), we had 120 days to return our minimum cash balance to the original $5,000,000. On January 16, 2014, we increased our cash balance to in excess of the original $5,000,000 minimum allowable balance. On January 16, 2014, we entered into a Fourth Amendment to the HealthCor Purchase Agreement with HealthCor (the “Fourth Amendment”) and sold Senior Secured Convertible Notes to HealthCor in the principal amounts of $2,329,000 and $2,671,000 (collectively the ‘‘2014 HealthCor Notes’’). As provided by the Fourth Amendment, the 2014 HealthCor Notes are in substantially the same form as the 2011 HealthCor Notes, with changes to the “Issuance Date,” “Maturity Date,” “First Five Year Note Period” and other terms to take into account the timing of the issuance of the 2014 HealthCor Notes. The 2014 HealthCor Notes have a maturity date of January 15, 2024. In addition, the provisions regarding interest payments, interest acceleration, optional conversion, negative covenants, and events of default, preemptive rights and registration rights are the same as those of the 2011 HealthCor Notes. At any time after January 16, 2014, HealthCor is entitled to convert any portion of the outstanding and unpaid accrued interest on and principal balances of the 2014 HealthCor Notes into fully paid and non-assessable shares of our Common Stock at a conversion rate of $0.40 per share, subject to adjustment in accordance with anti-dilution provisions set forth in the 2014 HealthCor Notes. Additionally we issued Warrants to HealthCor for the purchase of an aggregate of up to 4,000,000 shares of our Common Stock at an exercise price of $0.40 per share (collectively the “2014 HealthCor Warrants”). As of June 30, 2016, the underlying shares of our Common Stock related to the 2014 HealthCor Notes totaled approximately 16,912,000. On December 4, 2014, we entered into a Fifth Amendment to the HealthCor Purchase Agreement (the “Fifth Amendment”) with HealthCor and certain additional investors (such additional investors, the “New Investors” and, collectively with HealthCor Partners Fund, LP, the “Investors”) and agreed to sell and issue (i) additional notes in the initial aggregate principal amount of $6,000,000,with a conversion price per share of $0.52 (subject to adjustment as described therein) (the “Fifth Amendment Notes”) and (ii) additional Warrants for an aggregate of up to 3,692,308 shares of our Common Stock at an exercise price per share of $0.52 (subject to adjustment as described therein) (the “Fifth Amendment Warrants”). As provided by the Fifth Amendment, the Fifth Amendment Notes are in substantially the same form as the 2011 HealthCor Notes, with changes to the “Issuance Date,” “Maturity Date,” “First Five Year Note Period” and other terms to take into account the timing of the issuance of the Fifth Amendment Notes. The Fifth Amendment Notes have a maturity date of February 16, 2025. In addition, the provisions regarding interest payments, interest acceleration, optional conversion, negative covenants, and events of default, preemptive rights and registration rights are the same as those of the 2011 HealthCor Notes. The New Investors are composed of all but one of our current directors and one of our officers. On February 17, 2015, the Company and the Investors closed on the transactions contemplated by the Fifth Amendment. In connection with this closing, the Company and the Investors entered into an Amended and Restated Pledge and Security Agreement (the “Amended Security Agreement”), amending and restating that certain Pledge and Security Agreement dated as of April 20, 2011, and an Amended and Restated Intellectual Property Security Agreement (the “Amended IP Security Agreement”), amending and restating that certain Intellectual Property Security Agreement dated as of April 20, 2011. As of June 30, 2016, the underlying shares of our Common Stock related to the Fifth Amendment Notes totaled approximately 2,276,000 to HealthCor and 11,378,000 to the New Investors. On March 31, 2015, we entered into the Sixth Amendment to the HealthCor Purchase Agreement (the “Sixth Amendment”) pursuant to which, among other things, (i) the requirement to maintain a minimum cash balance of $5,000,000 was reduced to a minimum cash balance of $2,000,000 and (ii) the amendment provision was revised to permit the HealthCor Purchase Agreement to be amended by the Company and the holders of the majority of the Common Stock underlying the outstanding notes and warrants to purchase shares of our Common Stock sold pursuant to the HealthCor Purchase Agreement. On March 31, 2015, we also issued a warrant to HealthCor to purchase up to an aggregate of 1,000,000 shares of our Common Stock in consideration for certain prior waivers of the minimum cash balance requirement in the HealthCor Purchase Agreement (the “Sixth Amendment Warrant”). The Sixth Amendment Warrant has an exercise price per share of $0.53 (subject to adjustment as described therein) and an expiration date of March 31, 2025. On June 26, 2015, we (i) entered into a Seventh Amendment to the HealthCor Purchase Agreement (the “Seventh Amendment”) pursuant to which the HealthCor Purchase Agreement was amended to permit the Company to enter into and perform its obligations under the Credit Agreement entered into with PDL BioPharma, Inc., as administrative agent and lender (the “Lender”) (the “PDL Credit Agreement”); (ii) executed an Amendment to the Registration Rights Agreement between the Company and HealthCor dated April 21, 2011 (the “RR Agreement”) pursuant to which the RR Agreement was amended to make its priority of registration consistent with the Registration Rights Agreement executed by the Company and Lender (as detailed in NOTE 12 ); (iii) amended the 2011 HealthCor Notes to extend the maturity date, in the event that Tranche Two of the PDL Credit Agreement is funded, for such notes to 90 days after the earlier of the Tranche Two maturity date or repayment date, but not later than December 31, 2022, (iv) amended the 2012 HealthCor Notes, to set the maturity date at January 30, 2022 and, in the event that Tranche Two of the PDL Credit Agreement is funded, to extend such maturity date to 90 days after the earlier of the Tranche Two maturity date or repayment date, but later than December 31, 2022; and (v) amended each of the Senior Secured Convertible Notes issued under the HealthCor Purchase Agreement (the “HealthCor Notes”) to, among other things, subordinate the HealthCor Notes to the loans under the PDL Credit Agreement (as detailed in NOTE 12 Accounting Treatment When issuing debt or equity securities convertible into common stock at a discount to the fair value of the common stock at the date the debt or equity financing is committed, a company is required to record a beneficial conversion feature (“BCF”) charge. We had three separate issuances of equity securities convertible into common stock that qualify under this accounting treatment, (i) the 2011 HealthCor Notes, (ii) the 2012 HealthCor Notes and (iii) the 2014 HealthCor Notes. Because the conversion option and the 2011 HealthCor Warrants on the 2011 HealthCor Notes were originally classified as a liability when issued due to the down round provision and the removal of the provision requiring liability treatment, and subsequently reclassified to equity on December 31, 2011 when the 2011 HealthCor Notes were amended, only the accrued interest capitalized as payment in kind (‘‘PIK’’) since reclassification qualifies under this accounting treatment. The face amount of the 2012 and 2014 HealthCor Notes and all accrued PIK interest also qualify for this accounting treatment. During the three and six months ended June 30, 2016, we recorded a BCF of $471,225 and $988,069, respectively, and during the three and six months ended June 30, 2015, we recorded a BCF of $471,268 and $928,255, respectively. The BCF was recorded as a charge to debt discount and a credit to additional paid in capital, with the debt discount, using the effective interest method, amortized to interest expense over the term of the notes. As Warrants were issued with the Fifth Amendment Notes, the proceeds were allocated to the instruments based on relative fair value as the Warrants did not contain any features requiring liability treatment and therefore were classified as equity. The Warrants issued with the Sixth Amendment also did not contain features requiring liability accounting and were recorded at fair value on the date of issuance with the offsetting credit recorded in equity. The value allocated to the Fifth Amendment Warrants was $1,093,105, which was recorded as debt discount with the credit to additional paid in capital. We recorded an aggregate of $656,689 and $558,797 in interest expense for the three months June 30, 2016 and 2015, respectively, and $1,249,377 and $1,110,863 in interest expense for the six months June 30, 2016 and 2015, respectively, related to these transactions. The carrying value of the debt with HealthCor and the New Investors at June 30, 2016 approximates fair value as the interest rates used are those currently available to us and would be considered level 3 inputs under the fair value hierarchy. The value allocated to the Sixth Amendment Warrant was $378,000, which was recorded as deferred debt costs with the credit to additional paid in capital. We recorded an aggregate of $14,451 and $28,901 in financing costs for the three and six months ended June 30, 2016 related to this transaction.

AGREEMENT WITH PDL BIOPHARMA, I

AGREEMENT WITH PDL BIOPHARMA, INC.	6 Months Ended
	Jun. 30, 2016
Agreement With Pdl Biopharma Inc.
AGREEMENT WITH PDL BIOPHARMA	NOTE 12 – AGREEMENT WITH PDL BIOPHARMA, INC. On June 26, 2015, we entered into a Credit Agreement with PDL BioPharma, Inc., as administrative agent and lender (“PDL” or the “Lender”) (the “PDL Credit Agreement”). Under the PDL Credit Agreement the Lender made available to us up to $40 million in two tranches of $20 million each. Certain covenants of the PDL Credit Agreement include (a) in the event that a milestone relating to the placement of 9,000 billable units occurs on or before October 31, 2015, the Lender will fund us $20 million (the “Tranche One Loan”) and (b) in the event that additional milestones relating to (i) the placement of 27,750 billable units and (ii) the Company recording earnings before interest, tax, depreciation, and amortization (EBITDA) of not less than $7,000,000 on an annualized basis for the three calendar month period prior to the funding (on or before June 30, 2017), the Lender will fund us an additional $20 million (the “Tranche Two Loan” and, together with the Tranche One Loan, the “Loans”). Outstanding borrowings under the Tranche One Loan bear interest at the rate of 13.5% per annum, payable quarterly in arrears. Outstanding borrowings under the Tranche Two Loan bear interest at the rate of 13.0% per annum, payable quarterly in arrears. From the date any event of default occurs, the interest rate shall be increased by five percent (5%) per annum. The PDL Credit Agreement includes a minimum cash balance requirement of $3,250,000 and should we drop below $3,250,000, it will trigger a default. The $3,250,000 has been recorded as restricted cash on the condensed consolidated balance sheets at June 30, 2016 and December 31, 2015. On October 7, 2015, the Company entered into a First Amendment (the “First Amendment”) to the PDL Credit Agreement. The First Amendment modified the conditions precedent to the funding of each tranche, such that, among other things, we no longer need to attain a specified milestone relating to the placement of our products in order for the Lender to fund us the Tranche One Loan. Contemporaneously with the execution of the First Amendment we borrowed the Tranche One Loan and issued to the Lender a term note in the principal amount of $20 million (the “Tranche One Term Note”), payable in accordance with the terms of the Credit Agreement, as amended. The First Amendment also included a revision to the Tranche Two Milestone, which changed from a minimum of 27,750 billable units (defined as one unit for each room control platform and two units for each nurse station monitor) to 31,500 Bed Equivalent Units (defined as a billable unit plus 14 units for each head-end server operating as the communication center and fractional units for mobile assets as applicable). Once funded, the PDL Credit Agreement requires interest only payments for the first eight interest payment dates and principal plus interest payments will commence on the ninth interest payment date. We may elect to pay a portion of the interest due in the form of additional loans (interest paid in kind) during the first eight interest payment dates. The first principal payment on the Tranche One Term Note is due on January 8, 2018 in the amount of $1,666,667, with similar amounts due quarterly thereafter with the final payment due on October 8, 2020. Each tranche will mature on the fifth anniversary of the date borrowed. We may elect to prepay the Loans at any time without any premium or penalty, subject to certain conditions. The obligations under the PDL Credit Agreement are secured by a pledge of substantially all of the assets of the Company and certain of its domestic subsidiaries. We executed a Subordination and Intercreditor Agreement (the “Subordination and Intercreditor Agreement”), with the Lender, HealthCor and the New Investors (as defined in NOTE 11 ) pursuant to which we granted first-priority liens on our pledged assets to the Lender and second-priority liens on such pledged assets to HealthCor and the New Investors. The PDL Credit Agreement contains customary affirmative covenants for transactions of this type and other affirmative covenants agreed to by the Company and the Lender, including, among others, the provision of annual and quarterly reports, maintenance of property, insurance, compliance with laws and contractual obligations and payment of taxes. The PDL Credit Agreement contains customary negative covenants for transactions of this type and other negative covenants agreed to by the Company and the Lender, including, among others, restrictions on the incurrence of indebtedness, the granting of liens, making restricted payments and investments, entering into affiliate transactions and transferring assets. The PDL Credit Agreement also provides for a number of customary events of default, including payment, bankruptcy, covenant, representation and warranty and judgment defaults. Contemporaneously with the execution of the PDL Credit Agreement, we issued to the Lender a warrant to purchase 4,444,445 shares of our Common Stock at an exercise price of $0.45 per share, subject to adjustment as described therein (the “PDL Warrant”). The PDL Warrant expires on June 26, 2025. Pursuant to the terms of the First Amendment we amended and restated the PDL Warrant, reducing the exercise price per share from $0.45 to $0.40 (the “Amended Warrant”). All other provisions of the Amended Warrant remained unchanged. In addition, contemporaneously with the execution of the PDL Credit Agreement the Company and the Lender executed (i) a Registration Rights Agreement pursuant to which the Company agreed to provide the Lender with certain registration rights with respect to the shares of Common Stock issuable upon exercise of the PDL Warrant (the “PDL RRA”), (ii) a Guarantee and Collateral Agreement (the “Guarantee and Collateral Agreement”) pursuant to which certain of our subsidiaries guaranteed the performance of our obligations under the PDL Credit Agreement and granted the Lender a security interest in such subsidiaries’ tangible and intangible assets securing our performance of the same, and (iii) a Patent Security Agreement and a Trademark Security Agreement pursuant to which we granted the Lender a security interest in a certain subsidiary’s tangible and intangible assets securing the performance of our obligations under the PDL Credit Agreement. Accounting Treatment In connection with the Credit Agreement, we issued the PDL Warrant to the Lender. The fair value of the PDL Warrant at issuance was $1,257,778, which has been recorded as deferred issuance costs in the accompanying condensed consolidated financial statements. The deferred debt issuance costs associated with the PDL Credit Agreement are recorded as assets in accordance with the accounting standards as the PDL Credit Agreement is considered to be a credit facility and the warrants were payment for the facility and not the drawdowns. These costs are amortized to interest expense using the straight line method over the term of the Credit Agreement. Upon amendment of the PDL Warrant, we evaluated whether there was an increase in fair value which would require recognition of additional costs. No such increase in fair value was noted and no adjustment to the PDL Warrant valuation was necessary. For the three and six months ended June 30, 2016, $44,922 and $89,844 was amortized to interest expense. For the period from June 25, 2015 through June 30, 2015, $2,431 was amortized to interest expense. The PDL Warrant has not been exercised. We also incurred certain financing costs totaling $805,917 in the accompanying condensed consolidated financial statements. These costs have been recorded as deferred financing costs and are being amortized to interest expense over the term of the Credit Agreement. For the three and six months ended June 30, 2016, $27,849 and $55,698 was amortized to interest expense. For the period from June 25, 2015 through June 30, 2015, $1,464 was amortized to interest expense.

BASIS OF PRESENTATION AND REC19

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Policies)	6 Months Ended
	Jun. 30, 2016
Basis Of Presentation And Recently Issued Accounting Pronouncements Policies
Interim Financial Statements	Interim Financial Statements The accompanying unaudited interim condensed consolidated financial statements of CareView Communications, Inc. (“CareView”, the “Company”, “we”, “us” or “our”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, such financial statements include all adjustments (consisting solely of normal recurring adjustments) necessary for the fair statement of the financial information included herein in accordance with GAAP and the rules and regulations of the Securities and Exchange Commission (the “SEC”). The balance sheet at December 31, 2015 has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by GAAP for complete financial statements. 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 and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results could differ from those estimates. Results of operations for interim periods are not necessarily indicative of results for the full year. The accompanying condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2015 as filed with the SEC on March 30, 2016.
Fair Value of Financial Instruments	Fair Value of Financial Instruments Our financial instruments consist primarily of receivables, accounts payable, accrued expenses and short- and long-term debt. The carrying amount of receivables, accounts payable and accrued expenses approximates our fair value because of the short-term maturity of such instruments. We have elected not to carry our debt instruments at fair value. The carrying amount of our debt approximates fair value. Interest rates that are currently available to us for issuance of short- and long-term debt with similar terms and remaining maturities are used to estimate the fair value of the our short- and long-term debt and would be considered Level 3 inputs under the fair value hierarchy. We have categorized our assets and liabilities that are valued at fair value on a recurring basis into a three-level fair value hierarchy in accordance with GAAP. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets and liabilities (Level 1) and lowest priority to unobservable inputs (Level 3). Assets and liabilities recorded in the condensed consolidated balance sheets at fair value are categorized based on a hierarchy of inputs, as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Quoted prices for similar assets or liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument. Level 3 - Unobservable inputs for the asset or liability. The Company’s financial assets and liabilities recorded at fair value on a recurring basis include the fair value of warrant liability as detailed below. The fair value of this warrant liability is included in long-term liabilities on the accompanying condensed consolidated financial statements. The following table provides the financial assets and liabilities reported at fair value and measured on a recurring basis: Description Assets/ Quoted Prices Significant Significant Fair value of warrant liability $ (11,785 ) $ — $ — $ (11,785 ) The following table provides a summary of changes in fair value associated with the Level 3 liabilities for the six months ended June 30, 2016: Fair Value Measurements Balance at January 1, 2016 $ (168,805 ) Issuances of derivative liabilities — Change in fair value of warrant liability 157,020 Transfers in and/out of Level 3 — Ending balance at June 30, 2016 $ (11,785 ) The above table of Level 3 liabilities begins with the prior period balance and adjusts the balance for changes that occurred during the current period. The ending balance of the Level 3 securities presented above represent our best estimates and may not be substantiated by comparisons to independent markets and, in many cases, could not be realized in immediate settlement of the instruments.
Earnings Per Share	Earnings Per Share We calculate earnings per share (“EPS”) in accordance with GAAP, which requires the computation and disclosure of two EPS amounts, basic and diluted. Basic EPS is computed based on the weighted average number of shares of common stock outstanding during the period. Diluted EPS is computed based on the weighted average number of common shares outstanding plus all potentially dilutive common shares outstanding during the period under the treasury stock method. Such potential dilutive common shares consist of stock options, warrants and convertible debt. Potential common shares totaling 111,459,660 and 110,516,873 at June 30, 2016 and 2015, respectively, have been excluded from the diluted earnings per share calculation as they are anti-dilutive due to our reported net loss.
Recently Issued and Newly Adopted Accounting Pronouncements	Recently Issued and Newly Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board, (“FASB”), issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting. This guidance simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The guidance is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted in any annual or interim period for which financial statements have not been issued or made available for issuance, but all of the guidance must be adopted in the same period. If an entity early adopts the guidance in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. We are currently evaluating the impact of this guidance on our consolidated financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (“ASU 2016-02”). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We are evaluating the impact that ASU 2016-03 will have on our consolidated financial statements and related disclosures. There have been no material changes to our significant accounting policies as summarized in NOTE 2 of our Annual Report on Form 10-K for the year ended December 31, 2015. We do not expect that the adoption of any recent accounting pronouncements will have a material impact on our accompanying condensed consolidated financial statements.

BASIS OF PRESENTATION AND REC20

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Tables)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Schedule of financial assets and liabilities reported at fair value and measured on a recurring basis	The following table provides the financial assets and liabilities reported at fair value and measured on a recurring basis: Description Assets/ Quoted Prices Significant Significant Fair value of warrant liability $ (11,785 ) $ — $ — $ (11,785 )
Schedule of summary of changes in fair value associated with the Level 3 liabilities	The following table provides a summary of changes in fair value associated with the Level 3 liabilities for the six months ended June 30, 2016: Fair Value Measurements Balance at January 1, 2016 $ (168,805 ) Issuances of derivative liabilities — Change in fair value of warrant liability 157,020 Transfers in and/out of Level 3 — Ending balance at June 30, 2016 $ (11,785 )

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
Schedule of stock option activity	A summary of our stock option activity and related information follows: Number of Shares Under Options Weighted Average Exercise Weighted Average Remaining Contractual Life Aggregate Intrinsic Balance at December 31, 2015 9,350,667 $ 0.58 7.6 $ 15,705 Granted 20,000 $ 0.30 $ — Expired (126,665 ) Canceled (118,336 ) Balance at June 30, 2016 9,125,666 $ 0.57 7.1 $ — Vested and Exercisable at June 30, 2016 5,694,496 $ 0.63 6.5 $ —
Schedule of assumptions used in the Black-Scholes Model	The assumptions used in the Black-Scholes Model are set forth in the table below. Six Months Ended Year Ended December 31, 2015 Risk-free interest rate 1.39 % 1.41-1.74 % Volatility 63.49 % 71.30-71.86 % Expected life in years 6 6 Dividend yield 0.00 % 0.00 %

OTHER CURRENT ASSETS (Tables)

OTHER CURRENT ASSETS (Tables)	6 Months Ended
	Jun. 30, 2016
Other Current Assets
Schedule of other current assets	Other current assets consist of the following: June 30, December 31, Prepaid expenses $ 390,662 $ 467,137 Other current assets 7,596 3,938 TOTAL OTHER CURRENT ASSETS $ 398,258 $ 471,075

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	6 Months Ended
	Jun. 30, 2016
Property, Plant and Equipment [Abstract]
Schedule of property and equipment	Property and equipment consist of the following: June 30, December 31, Network equipment $ 11,963,452 $ 11,310,494 Office equipment 224,423 200,683 Vehicles 161,584 158,803 Test equipment 141,032 115,712 Furniture 85,156 81,838 Warehouse equipment 9,524 9,524 Leasehold improvements 5,121 5,121 12,590,292 11,882,175 Less: accumulated depreciation (8,258,910 ) (7,398,735 ) TOTAL PROPERTY AND EQUIPMENT $ 4,331,382 $ 4,483,440

OTHER ASSETS (Tables)

OTHER ASSETS (Tables)	6 Months Ended
	Jun. 30, 2016
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of intangible assets	Intangible assets consist of the following: June 30, 2016 Cost Accumulated Amortization Net Patents and trademarks $ 637,745 $ 80,554 $ 557,191 Other intangible assets 53,088 45,017 8,071 TOTAL INTANGIBLE ASSETS $ 690,833 $ 125,571 $ 565,262 December 31, 2015 Cost Accumulated Amortization Net Patents and trademarks $ 420,137 $ 53,706 $ 366,431 Other intangible assets 56,263 41,929 14,334 TOTAL INTANGIBLE ASSETS $ 476,400 $ 95,635 $ 380,765
Schedule of other assets	Other assets consist of the following: June 30, 2016 Cost Accumulated Amortization Net Deferred debt issuance costs $ 1,257,778 $ 181,684 $ 1,076,094 Prepaid financing costs 805,917 129,768 676,149 Deferred installation costs 1,852,581 1,411,617 440,964 Prepaid license fee 249,999 79,234 170,765 Security deposit 46,124 — 46,124 TOTAL OTHER ASSETS $ 4,212,399 $ 1,802,303 $ 2,410,096 Other assets consist of the following: December 31, 2015 Cost Accumulated Amortization Net Deferred debt issuance costs $ 1,257,778 $ 91,840 $ 1,165,938 Deferred financing costs 805,917 74,070 731,847 Deferred installation costs 1,787,869 1,220,982 566,887 Prepaid license fee 249,999 71,037 178,962 Security deposit 46,124 — 46,124 TOTAL OTHER ASSETS $ 4,147,687 $ 1,457,929 $ 2,689,758

OTHER CURRENT LIABILITIES (Tabl

OTHER CURRENT LIABILITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Payables and Accruals [Abstract]
Schedule of other current liabilities	Other current liabilities consist of the following: June 30, December 31, 2015 Accrued taxes $ 251,530 $ 235,162 Allowance for system removal 149,750 54,771 Accrued paid time off 101,285 108,526 Accrued insurance 70,430 — Accrued professional services 35,000 67,500 Other accrued liabilities 22,842 13,267 TOTAL OTHER CURRENT LIABILITIES $ 630,837 $ 479,226

VARIABLE INTEREST ENTITIES (Tab

VARIABLE INTEREST ENTITIES (Tables)	6 Months Ended
	Jun. 30, 2016
Variable Interest Entities
Schedule of VIE assets and liabilities and results of operations	The total consolidated VIE assets and liabilities reflected on our condensed consolidated balance sheets at June 30, 2016 and December 31, 2015 are as follows: June 30, December 31, Assets Cash $ 268 $ 2,146 Receivables 4,731 4,731 Total current assets 4,999 6,877 Property, net 36,544 50,382 Total assets $ 41,543 $ 57,259 Liabilities Accounts payable $ 136,975 $ 132,170 Accrued interest 294,812 261,450 Other current liabilities 27,396 26,936 Notes payable 440,637 441,498 Mandatorily redeemable interest 440,637 441,498 Total liabilities $ 1,340,457 $ 1,303,552 The financial performance of the consolidated VIEs reflected on our condensed consolidated statements of operations for the six months ended June 30, 2016 and 2015 is as follows: June 30, 2016 2015 Revenue $ 14,194 $ 14,194 Network operations expense 8,329 8,328 General and administrative expense 460 1,485 Depreciation 24,265 24,492 Total operating costs 33,054 34,305 Operating loss (18,860 ) (20,111 ) Other expense (44,190 ) (45,296 ) Loss before taxes (63,050 ) (65,407 ) Provision for taxes — — Net loss (63,050 ) (65,407 ) Net loss attributable to noncontrolling interest (31,525 ) (32,704 ) Net loss attributable to CareView Communications, Inc. $ (31,525 ) $ (32,703 )

BASIS OF PRESENTATION AND REC27

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details Narrative) - shares	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Accounting Policies [Abstract]
Anti-dilutive common share equivalents excluded from EPS calculation	111,459,660	110,516,873

BASIS OF PRESENTATION AND REC28

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Fair value of warrant liability	$ (11,785)	$ (168,805)
Recurring Measurement [Member] | Significant Other Unobservable Inputs (Level 3) [Member]
Fair value of warrant liability	(11,785)
Recurring Measurement [Member] | Fair Value [Member]
Fair value of warrant liability	$ (11,785)

BASIS OF PRESENTATION AND REC29

BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Change in Fair Value of Level 3 Liabilities
Balance, beginning of period			$ (168,805)
Change in fair value of warrant liability	$ 72,523	$ 225,147	157,020	$ (12,954)
Balance, end of period	$ (11,785)		$ (11,785)

LIQUIDITY AND MANAGEMENTS PLAN

LIQUIDITY AND MANAGEMENTS PLAN (Details Narrative) - USD ($)	Oct. 07, 2015	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Jun. 26, 2015	Dec. 31, 2014
Cash and cash equivalents		$ 14,086,306	$ 17,678,969	$ 5,245,503		$ 2,546,262
Restricted cash		3,250,000	3,250,000
Minimum cash balance required under existing loan documents		2,000,000
Proceeds from issuance of debt, net	$ 19,533,992
Loan payable		20,000,000	$ 20,000,000
PDL BioPharma, Inc (Administrative Agent and Lender) [Member]
Minimum cash balance required under existing loan documents					$ 3,250,000
Debt face amount					40,000,000
PDL BioPharma, Inc (Administrative Agent and Lender) [Member] | Tranche One Debt [Member]
Debt face amount		20,000,000			20,000,000
Loan payable		20,000,000
PDL BioPharma, Inc (Administrative Agent and Lender) [Member] | Tranche Two Debt [Member]
Debt face amount		$ 20,000,000			$ 20,000,000

STOCKHOLDERS' EQUITY (Details N

STOCKHOLDERS' EQUITY (Details Narrative) - USD ($)	Jun. 26, 2015	Mar. 31, 2015	Feb. 17, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015	Dec. 04, 2014
Fair value adjustment recorded as non-cash costs				$ (157,020)	$ 12,954
Fair value of the warrants						$ 168,805
Senior secured convertible notes				37,451,308		$ 33,729,093
HealthCor Fifth Amendment Purchase Agreement [Member]
Warrant exercise price (in dollars per share)			$ 0.52				$ .52
Fair value of the warrants			$ 1,093,105
Senior secured convertible notes			6,000,000
Fair value of convertible debt			$ 7,336,615
Debt conversion rate			$ 0.52				$ .52
HealthCor Fifth Amendment Purchase Agreement [Member] | Senior Convertible Notes - 2015 Issuance [Member]
Warrants issued for financing costs, warrants			3,692,307
Warrants Revalued [Member]
Fair value of warrants at re-value				11,785
Fair value adjustment recorded as non-cash costs				$ 157,020
Warrants [Member]
Warrants expired					2,892,686
Warrants [Member] | PDL BioPharma, Inc (Administrative Agent and Lender) [Member]
Number common stock called	4,444,445
Warrant exercise price (in dollars per share)	$ 0.45
Fair value of the warrants	$ 1,257,778
Warrant expiration date	Jun. 26, 2025
Purchase Agreement Warrants [Member] | HealthCor Partners Fund [Member]
Number common stock called		1,000,000
Warrant exercise price (in dollars per share)		$ 0.53
Warrant expiration date		Mar. 31, 2025

STOCKHOLDERS' EQUITY (Details32

STOCKHOLDERS' EQUITY (Details Narrative 1) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Options granted	20,000
Options shares cancelled	(118,336)	(77,837)
Options shares expired	(126,665)	(6,261,308)
Share-based compensation expense	$ 380,647	$ 410,034
Unrecognized estimated compensation expense	$ 642,200
Period for recognization of unrecognized compensation expense	1 year 3 months 18 days
Stock Options [Member] | Employees and Board of Directors [Member]
Options granted		1,815,000

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Number Options
Stock Options Outstanding, Beginning	9,350,667
Granted	20,000
Expired	(126,665)	(6,261,308)
Cancelled	(118,336)	(77,837)
Stock Options Outstanding, Ending	9,125,666
Stock Options, vested and exercisable	5,694,496
Weighted Average Exercise Price
Stock Options Outstanding, Beginning	$ 0.58
Granted	0.3
Stock Options Outstanding, Ending	0.57
Stock Options, vested and exercisable	$ 0.63
Weighted Average Remaining Contractual Life
Stock Options Outstanding, Beginning	7 years 7 months 6 days
Stock Options Outstanding, Ending	7 years 1 month 6 days
Stock Options, vested and exercisable	6 years 6 months
Aggregate Intrinsic Value
Stock Options Outstanding, Beginning	$ 15,705

STOCKHOLDERS' EQUITY (Details 1

STOCKHOLDERS' EQUITY (Details 1) - Stock Options [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2016	Dec. 31, 2015
Black-Scholes Model:
Risk-free interest rate	1.39%
Volatility	63.49%
Expected life	6 years	6 years
Dividend yield	0.00%	0.00%
Lower Range [Member]
Black-Scholes Model:
Risk-free interest rate		1.41%
Volatility		71.30%
Upper Range [Member]
Black-Scholes Model:
Risk-free interest rate		1.74%
Volatility		71.86%

OTHER CURRENT ASSETS (Details)

OTHER CURRENT ASSETS (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Other Current Assets Details
Prepaid expenses	$ 390,662	$ 467,137
Other current assets	7,596	3,938
TOTAL OTHER CURRENT ASSETS	$ 398,258	$ 471,075

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Property, Plant and Equipment [Abstract]
Depreciation expense	$ 863,456	$ 838,300

PROPERTY AND EQUIPMENT (Detai37

PROPERTY AND EQUIPMENT (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 12,590,292	$ 11,882,175
Less: accumulated depreciation	(8,258,910)	(7,398,735)
Property and equipment, net	4,331,382	4,483,440
Network Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,963,452	11,310,494
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	224,423	200,683
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	161,584	158,803
Test Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	141,032	115,712
Furniture [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	85,156	81,838
Warehouse Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,524	9,524
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,121	$ 5,121

OTHER ASSETS (Details)

OTHER ASSETS (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Cost	$ 690,833	$ 476,400
Accumulated Amortization	125,571	95,635
Intangible assets, Net	565,262	380,765
Patents and Trademarks [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	637,745	420,137
Accumulated Amortization	80,554	53,706
Intangible assets, Net	557,191	366,431
Other Intangible Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Cost	53,088	56,263
Accumulated Amortization	45,017	41,929
Intangible assets, Net	$ 8,071	$ 14,334

OTHER ASSETS (Details 1)

OTHER ASSETS (Details 1) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Cost	$ 4,212,399	$ 4,147,687
Accumulated Amortization	1,802,303	1,457,929
Other assets	2,410,096	2,689,758
Deferred Debt Issuance Costs [Member]
Cost	1,257,778	1,257,778
Accumulated Amortization	181,684	91,840
Other assets	1,076,094	1,165,938
Prepaid Financing Costs [Member]
Cost	805,917
Accumulated Amortization	129,768
Other assets	676,149
Deferred Installation Costs [Member]
Cost	1,852,581	1,787,869
Accumulated Amortization	1,411,617	1,220,982
Other assets	440,964	566,887
Prepaid License Fee [Member]
Cost	249,999	249,999
Accumulated Amortization	79,234	71,037
Other assets	170,765	178,962
Security Deposit [Member]
Cost	46,124	46,124
Other assets	$ 46,124	46,124
Deferred Financing Costs [Member]
Cost		805,917
Accumulated Amortization		74,070
Other assets		$ 731,847

OTHER CURRENT LIABILITIES (Deta

OTHER CURRENT LIABILITIES (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
OTHER CURRENT LIABILITIES:
Accrued taxes	$ 251,530	$ 235,162
Allowance for system removal	149,750	54,771
Accrued paid time off	101,285	108,526
Accrued insurance	70,430
Accrued professional services	35,000	67,500
Other accrued liabilities	22,842	13,267
TOTAL OTHER CURRENT LIABILITIES	$ 630,837	$ 479,226

JOINT VENTURE AGREEMENT (Detail

JOINT VENTURE AGREEMENT (Details Narrative)	Jan. 27, 2012USD ($)Number	Nov. 16, 2009USD ($)shares	Oct. 31, 2015USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Other current liabilities				$ 630,837	$ 479,226
Joint Venture - Rockwell [Member]
Percentage owned by company of each joint venture		50.00%
Funding by Rockwell into the Joint Venture, cash		$ 1,151,205
Promissory note amounts		575,603		1,176,000
Investment Interest issued to Rockwell as Preferential Return		$ 575,602
Interest rate on project notes and preferential returns, per investment agreement		10.00%
Fair value of warrants issued to Rockwell for providing funding			$ 102,457
Discount on debt recorded				636,752
Monthly revenue lost due to Hillcrest termination	$ 20,000
De-installation costs incurred	$ 3,000
Number of units remaining at Hillcrest site | Number	100
Other current liabilities				$ 10,250
Joint Venture - Rockwell [Member] | Warrants [Member]
Warrants issued for financing costs, warrants | shares		1,151,206
Fair value of warrants issued to Rockwell for providing funding		$ 1,124,728

VARIABLE INTEREST ENTITIES (Det

VARIABLE INTEREST ENTITIES (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Assets
Receivables	$ 1,057,554	$ 1,176,404
Total current assets	15,542,118	19,326,448
Property, net	4,331,382	4,483,440
Total assets	26,098,858	30,130,411
Liabilities
Accounts payable	337,944	332,402
Accrued interest	294,812	261,450
Other current liabilities	630,837	479,226
Total liabilities	59,607,960	55,853,972
Variable Interest Entity [Member]
Assets
Cash	268	2,146
Receivables	4,731	4,731
Total current assets	4,999	6,877
Property, net	36,544	50,382
Total assets	41,543	57,259
Liabilities
Accounts payable	136,975	132,170
Accrued interest	294,812	261,450
Other current liabilities	27,396	26,936
Notes payable	440,637	441,498
Mandatorily redeemable interest	440,637	441,498
Total liabilities	$ 1,340,457	$ 1,303,552

VARIABLE INTEREST ENTITIES (D43

VARIABLE INTEREST ENTITIES (Details 1) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenue	$ 1,534,116	$ 1,266,391	$ 3,029,909	$ 2,266,945
Network operations expense	1,135,494	1,304,973	2,287,601	2,135,067
General and administrative expense	912,280	923,056	1,967,138	1,761,365
Depreciation	451,569	442,248	896,985	858,152
Total operating costs	2,981,085	3,209,876	6,104,252	5,717,001
Operating loss	(1,446,969)	(1,943,485)	(3,074,343)	(3,450,056)
Loss before taxes	(4,469,801)	(3,934,227)	(9,154,145)	(7,722,532)
Net loss attributable to noncontrolling interest	(15,415)	(16,482)	(31,525)	(32,704)
Net loss attributable to CareView Communications, Inc.	$ (4,454,386)	$ (3,917,745)	(9,122,620)	(7,689,828)
Variable Interest Entity [Member]
Revenue			14,194	14,194
Network operations expense			8,329	8,328
General and administrative expense			460	1,485
Depreciation			24,265	24,492
Total operating costs			33,054	34,305
Operating loss			(18,860)	(20,111)
Other expense			(44,190)	(45,296)
Loss before taxes			(63,050)	(65,407)
Net loss			(63,050)	(65,407)
Net loss attributable to noncontrolling interest			(31,525)	(32,704)
Net loss attributable to CareView Communications, Inc.			$ (31,525)	$ (32,703)

AGREEMENT WITH HEALTHCOR (Detai

AGREEMENT WITH HEALTHCOR (Details Narrative)	Jan. 31, 2012USD ($)$ / shares	Apr. 21, 2011USD ($)$ / sharesshares	Jun. 30, 2016Number
HealthCor Purchase Agreement [Member] | 2011 Senior Secured Convertible Note#1 [Member]
Note amount | $		$ 9,316,000
Debt Maturity Date		Apr. 20, 2021
Issuance of warrants | shares		5,488,456
Exercise price of warrants | $ / shares		$ 1.40
HealthCor Purchase Agreement [Member] | 2011 Senior Secured Convertible Note#2 [Member]
Note amount | $		$ 10,684,000
Debt Maturity Date		Apr. 20, 2021
Issuance of warrants | shares		6,294,403
Exercise price of warrants | $ / shares		$ 1.40
HealthCor Purchase Agreement [Member] | 2011 Senior Secured Convertible Notes [Member]
Increase in interest rate (per annum) should default occur		5.00%
Debt conversion price | $ / shares		$ 1.25
Number of shares the note may be converted into | Number			30,182,000
HealthCor Purchase Agreement [Member] | 2011 Senior Secured Convertible Notes [Member] | First Five Year Note Period [Member]
Interest rate, provided no default		12.50%
HealthCor Purchase Agreement [Member] | 2011 Senior Secured Convertible Notes [Member] | Second Five Year Note Period [Member]
Interest rate, provided no default		10.00%
HealthCor Second Amendment Purchase Agreement [Member] | 2012 Senior Secured Convertible Note#1 [Member]
Note amount | $	$ 2,329,000
Debt Maturity Date	Jan. 30, 2022
HealthCor Second Amendment Purchase Agreement [Member] | 2012 Senior Secured Convertible Note#2 [Member]
Note amount | $	$ 2,671,000
Debt Maturity Date	Jan. 30, 2022
HealthCor Second Amendment Purchase Agreement [Member] | 2012 Senior Secured Convertible Notes [Member]
Debt conversion price | $ / shares	$ 1.25
Number of shares the note may be converted into | Number			6,888,000

AGREEMENT WITH HEALTHCOR (Det45

AGREEMENT WITH HEALTHCOR (Details Narrative 1)	Dec. 04, 2014USD ($)$ / sharesshares	Jan. 16, 2014USD ($)$ / sharesshares	Jun. 30, 2016USD ($)	Jun. 30, 2015USD ($)$ / sharesshares	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2016USD ($)Number	Jun. 30, 2015USD ($)$ / shares	Feb. 17, 2015$ / shares	Aug. 21, 2013USD ($)
Minimum cash balance required under existing loan documents			$ 2,000,000			$ 2,000,000
Beneficial conversion features for senior secured convertible notes						988,069	$ 928,256
Interest Expense			3,099,911		$ 2,217,846	$ 6,251,468	4,263,747
HealthCor Third Amendment Purchase Agreement [Member]
Minimum cash balance required under existing loan documents									$ 5,000,000
HealthCor Third Amendment Purchase Agreement [Member] | Lower Range [Member]
Minimum cash balance required under existing loan documents									4,000,000
HealthCor Third Amendment Purchase Agreement [Member] | Upper Range [Member]
Minimum cash balance required under existing loan documents		$ 5,000,000							$ 5,000,000
HealthCor Fourth Amendment Purchase Agreement [Member] | 2014 Senior Secured Convertible Note#1 [Member]
Note amount		2,329,000
HealthCor Fourth Amendment Purchase Agreement [Member] | 2014 Senior Secured Convertible Note#2 [Member]
Note amount		$ 2,671,000
HealthCor Fourth Amendment Purchase Agreement [Member] | 2014 Senior Secured Convertible Notes [Member]
Issuance of warrants | shares		4,000,000
Exercise price of warrants | $ / shares		$ .40
Debt conversion price | $ / shares		$ .40
Number of shares the note may be converted into | Number						16,912,000
HealthCor Fifth Amendment Purchase Agreement [Member]
Note amount	$ 6,000,000
Issuance of warrants | shares	3,692,308
Exercise price of warrants | $ / shares	$ .52							$ 0.52
Debt conversion price | $ / shares	$ .52							$ 0.52
Debt discount	$ 1,093,105
Interest Expense			656,689		$ 558,797	$ 1,249,377	$ 1,110,863
HealthCor Fifth Amendment Purchase Agreement [Member] | HealthCor Partners Fund [Member]
Number of shares the note may be converted into | Number						2,276,000
HealthCor Fifth Amendment Purchase Agreement [Member] | New Investors [Member]
Number of shares the note may be converted into | Number						11,378,000
HealthCor Sixth Amendment Purchase Agreement [Member]
Issuance of warrants | shares				1,000,000
Exercise price of warrants | $ / shares				$ .53	$ .53		$ .53
Minimum cash balance required under existing loan documents				$ 5,000,000	$ 5,000,000		$ 5,000,000
Interest Expense			14,451			$ 28,901
Deferred debt costs				378,000	378,000		378,000
Aggregate financing costs				14,450
HealthCor Sixth Amendment Purchase Agreement [Member] | Lower Range [Member]
Minimum cash balance required under existing loan documents				$ 2,000,000	2,000,000		2,000,000
HealthCor Purchase Agreement [Member]
Beneficial conversion features for senior secured convertible notes			$ 471,225		$ 471,268	$ 988,069	$ 928,255

AGREEMENT WITH PDL BIOPHARMA,46

AGREEMENT WITH PDL BIOPHARMA, INC. (Details Narrative)	Oct. 07, 2015Number$ / shares	Jun. 30, 2015USD ($)	Jun. 26, 2015USD ($)Number$ / sharesshares	Jun. 30, 2016USD ($)	Jun. 30, 2016USD ($)	Dec. 31, 2015USD ($)
Fair value						$ 168,805
Minimum cash balance required under existing loan documents				$ 2,000,000	$ 2,000,000
Restricted cash				3,250,000	3,250,000	$ 3,250,000
PDL BioPharma, Inc (Administrative Agent and Lender) [Member]
Debt face amount			$ 40,000,000
Description of payment terms			Interest only payments for the first eight interest payment dates and principal plus interest payments will commence on the ninth interest payment date. We may elect to pay a portion of the interest due in the form of additional loans (interest paid in kind) during the first eight interest payment dates.Each tranche will mature on the fifth anniversary of the date borrowed. We may elect to prepay the Loans at any time without any premium or penalty, subject to certain conditions.
Description of collateral			Secured by a pledge of substantially all of the assets of the Company and certain of its domestic subsidiaries.
Minimum cash balance required under existing loan documents			$ 3,250,000
PDL BioPharma, Inc (Administrative Agent and Lender) [Member] | Warrants [Member]
Number common stock called | shares			4,444,445
Exercise price (in dollars per shares) | $ / shares			$ 0.45
Warrant expiration date			Jun. 26, 2025
Fair value			$ 1,257,778
Amortized interest expense		$ 2,431		44,922	89,844
Deferred financing costs				805,917	805,917
Amortized deferred financing costs		$ 1,464		27,849	55,698
PDL BioPharma, Inc (Administrative Agent and Lender) [Member] | Tranche One Debt [Member]
Debt face amount			$ 20,000,000	20,000,000	20,000,000
Description of debt milestone placement			In the event that a milestone relating to the placement of 9,000 billable units occurs on or before October 31, 2015.
Interest rate			13.50%
Number of billable units | Number			9,000
Date of first required debt repyment			Jan. 8, 2018
Debt periodic repayment			$ 1,666,667
PDL BioPharma, Inc (Administrative Agent and Lender) [Member] | Tranche Two Debt [Member]
Debt face amount			$ 20,000,000	$ 20,000,000	$ 20,000,000
Description of debt milestone placement			(i) the placement of 27,750 billable units and (ii) the Company recording earnings before interest, tax, depreciation, and amortization (EBITDA) of not less than $7,000,000 on an annualized basis for the three calendar month period prior to the funding (on or before June 30, 2017).
Interest rate			13.00%
Number of billable units | Number			27,250
Earning before interest, tax, depreciation, and amortization milestone			$ 7,000,000
Increase of interest rate if default occurs			5.00%
PDL BioPharma, Inc (Administrative Agent and Lender) - First Amendment [Member] | Warrants [Member]
Exercise price (in dollars per shares) | $ / shares	$ 0.45
PDL BioPharma, Inc (Administrative Agent and Lender) - First Amendment [Member] | Tranche Two Debt [Member]
Description of debt milestone placement	Tranche Two Milestone, which changed from a minimum of 27,750 billable units (defined as one unit for each room control platform and two units for each nurse station monitor) to 31,500 Bed Equivalent Units (defined as a billable unit plus 14 units for each head-end server operating as the communication center and fractional units for mobile assets as applicable).
Number of billable units | Number	31,500
PDL BioPharma, Inc (Administrative Agent and Lender) - Restated Amendment [Member] | Warrants [Member]
Exercise price (in dollars per shares) | $ / shares	$ 0.40