Blue Calypso 10-Q 9 May 14 2014 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2014	1-May-14
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'BLUE CALYPSO, INC.	'
Document Type	'10-Q	'
Current Fiscal Year End Date	'--12-31	'
Entity Common Stock, Shares Outstanding	'	210,636,895
Amendment Flag	'false	'
Entity Central Index Key	'0001399587	'
Entity Current Reporting Status	'Yes	'
Entity Voluntary Filers	'No	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Well-known Seasoned Issuer	'No	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
ASSETS	'	'
Cash	$1,679,915	$1,294,882
Accounts receivable, net of allowance of $0 as of March 31, 2014 and December 31, 2013	176,540	64,300
Prepaid expenses	42,347	57,371
Total current assets	1,898,802	1,416,553
Property and equipment, net	8,820	10,009
Capitalized software development costs, net of accumulated amortization of $729,473 and $647,247 as of March 31, 2014 and December 31, 2013, respectively	911,433	984,674
Total assets	2,819,055	2,411,236
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Accounts payable	163,718	161,225
Accrued expenses	105,476	4,878
Deferred revenue	10,475	'
Convertible notes payable, net of discount of $167,471 and $207,589 as of March 31, 2014 and December 31, 2013, respectively	432,529	242,411
Warrant liabilities	486	2,030
Total current liabilities	712,684	410,544
Convertible notes payable, net of discount of $15,830 as of December 31, 2013	'	134,170
Total liabilities	712,684	544,714
Preferred stock, $0.0001 par value; 5,000,000 shares authorized Series A convertible preferred stock, $0.0001 par value; 1,700,000 shares designated; 750,068 shares issued and outstanding	75	75
Common stock, $0.0001 par value; 680,000,000 shares authorized, 199,437,262 and 188,237,262 shares issued and outstanding as of March 31, 2014 and December 31, 2013, respectively	19,944	18,824
Additional paid in capital	28,263,483	26,279,393
Accumulated deficit	-26,177,131	-24,431,770
Total stockholders' equity	2,106,371	1,866,522
Total liabilities and stockholders' equity	2,819,055	2,411,236
Series A Convertible Preferred Stock [Member]	'	'
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Preferred stock, $0.0001 par value; 5,000,000 shares authorized Series A convertible preferred stock, $0.0001 par value; 1,700,000 shares designated; 750,068 shares issued and outstanding	$75	$75

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Accounts receivable, net of allowance (in Dollars)	$0	$0
Capitalized software development costs,accumulated amortization (in Dollars)	729,473	647,247
Convertible Debt, Unamortized Discount, Current (in Dollars)	167,471	207,589
Convertible Debt, Unamortized Discount, Non Current (in Dollars)	$0	$15,830
Preferred stock, par value (in Dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
Common stock, par value (in Dollars per share)	$0.00	$0.00
Common stock,shares authorized	680,000,000	680,000,000
Common stock,shares issued	199,437,262	188,237,262
Common stock,share outstanding	199,437,262	188,237,262
Series A Convertible Preferred Stock [Member]	'	'
Preferred stock, par value (in Dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	1,700,000	1,700,000
Preferred stock, shares issued	750,068	750,068
Preferred stock, shares outstanding	750,068	750,068

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
REVENUE	$164,215	$10,000
Cost of revenue	73,747	4,323
Gross profit	90,468	5,677
OPERATING EXPENSES:	'	'
Sales and marketing	163,517	125,957
General and administrative	1,072,376	923,151
Depreciation and amortization	83,415	68,229
Total operating expenses	1,319,308	1,117,337
Loss from operations	-1,228,840	-1,111,660
Change in fair value of derivative liabilities	1,543	8,216,218
Interest expense	-518,064	-306,664
Total other income (expense)	-516,521	7,909,554
NET (LOSS) INCOME	($1,745,361)	$6,797,894
Net (loss) income per common share, basic (in Dollars per share)	($0.01)	$0.05
Weighted average common shares outstanding, basic (in Shares)	200,065,680	130,893,388
Net (loss) income per common share, diluted (in Dollars per share)	($0.01)	$0.03
Weighted average common shares outstanding, diluted (in Shares)	200,065,680	205,355,014

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance, January 1, 2014 at Dec. 31, 2013	$75	$18,824	$26,279,393	($24,431,770)	$1,866,522
Balance, January 1, 2014 (in Shares) at Dec. 31, 2013	750,068	188,237,262	'	'	'
Shares issued in connection with exercise of warrants at $0.05 per share	'	1,120	558,880	'	560,000
Shares issued in connection with exercise of warrants at $0.05 per share (in Shares)	'	11,200,000	'	'	'
Proceeds received for exercise of warrants at $0.05 per share	'	'	464,558	'	464,558
Stock based compensation	'	'	513,727	'	513,727
Loss on warrant modification	'	'	446,925	'	446,925
Net loss	'	'	'	-1,745,361	-1,745,361
Balance, March 31, 2014 at Mar. 31, 2014	$75	$19,944	$28,263,483	($26,177,131)	$2,106,371
Balance, March 31, 2014 (in Shares) at Mar. 31, 2014	750,068	199,437,262	'	'	'

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parentheticals) (USD $)	Mar. 31, 2014
Warrants exercise price, per share	$0.05

CONDENSED_CONSOLIDATED_STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net (loss) income	($1,745,361)	$6,797,894
Depreciation and amortization	83,415	68,229
Amortization of debt discounts	55,948	277,285
Change in fair value of derivative liabilities	-1,543	-8,216,218
Non cash interest due to warrant modification	446,925	'
Stock based compensation	513,727	477,700
Accounts receivable	-112,240	43,868
Prepaid expenses	15,024	-15,936
Accounts payable	2,493	20,688
Accrued liabilities	100,598	253,587
Deferred income	10,475	-10,000
Net cash used in operating activities	-630,540	-302,903
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Software development costs	-8,985	-58,338
Net cash used in investing activities	-8,985	-58,338
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from notes payable	'	207,036
Proceeds from exercise of warrants	1,024,558	'
Net cash provided by financing activities	1,024,558	207,036
Net increase (decrease) in cash and cash equivalents	385,033	-154,205
Cash and cash equivalents at beginning of period	1,294,882	218,798
Cash and cash equivalents at end of period	1,679,915	64,593
SUPPLEMENTAL INFORMATION	'	'
Cash paid for interest	'	'
Cash paid for income taxes	'	'
Conversion of accounts payable to common stock	'	$30,000

NATURE_OF_OPERATIONS_AND_BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2014
Disclosure Text Block [Abstract]	'
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	'
	NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION
	Blue Calypso, Inc., a Delaware corporation (the "Company”), is engaged in the development, licensing and enforcement of technology and intellectual property focused on digital word-of-mouth marketing and advertising. In January 2014, the Company transitioned from a development stage enterprise to an operating company.  Prior to 2014, the Company’s primary activities since inception, were the design and development of its products, negotiating strategic alliances and other agreements, and raising capital.
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and disclosures required by GAAP for annual financial statements. In the opinion of management, such statements include all adjustments (consisting only of normal recurring items) which are considered necessary for a fair presentation of the condensed consolidated financial statements of the Company as of March 31, 2014 and for the three months ended March 31, 2014 and 2013. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the operating results for the full year ending December 31, 2014, or any other period.  These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related disclosures of the Company as of December 31, 2013 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on March 31, 2014.

GOING_CONCERN_AND_MANAGEMENTS_

GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS	3 Months Ended
	Mar. 31, 2014
Liquidity Going Concern Disclosure [Abstract]	'
Liquidity Going Concern Disclosure [Text Block]	'
	NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS
	As of March 31, 2014, the Company had cash and cash equivalents of $1,679,915 and working capital of $1,186,118. During the three months ended March 31, 2014, the Company used net cash in operating activities of $630,540.  The Company has incurred net losses since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
	During the three months ended March 31, 2014, the Company received $1,024,558 in cash proceeds from the exercise of warrants.  The Company believes that its current cash on hand will be sufficient to fund its projected operating requirements through the fourth quarter of 2014.
	The Company's primary source of operating funds since inception has been cash proceeds from the issuance of common shares and preferred shares to its initial investors, proceeds from the issuance of convertible secured debentures and the sale of common stock and debentures in private placements.  The Company intends to raise additional capital through private debt and equity investors, but there can be no assurance that these funds will be available on terms acceptable to the Company, or will be sufficient to enable the Company to fully complete its development activities or sustain operations. If the Company is unable to raise sufficient additional funds, it will have to develop and implement a plan to further extend payables, reduce overhead, or scale back its current business plan until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful.
	Accordingly, the accompanying condensed consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The condensed consolidated financial statements do not include any adjustment that might result from the outcome of this uncertainty.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Significant Accounting Policies [Text Block]	'
	NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Principles of Consolidation
	The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  All significant intercompany accounts and transactions have been eliminated in consolidation.
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability and useful lives of long-lived assets, the fair value of the Company’s stock, stock-based compensation, fair values relating to warrant and other derivative liabilities, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.
	Concentrations of Credit Risk
	The Company’s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.
	As of March 31, 2014, two customers represented 65% and 16% of the Company’s accounts receivable. As of December 31, 2013, two customers represented 49% and 24% of the Company’s accounts receivable.
	During the three months ended March 31, 2014, two customers represented 71% and 13% of total revenue.
	Net Income (Loss) per Share
	The Company computes basic net income (loss) per share by dividing net income (loss) per share available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. The computation of basic and diluted loss per share as of March 31, 2014 and 2013 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.
	Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share are as follows:
		March 31,	March 31,
		2014	2013
	Convertible notes payable	3,000,000	7,773,879
	Series A convertible preferred stock	11,045,655	25,036,820
	Options to purchase common stock	23,110,318	14,679,073
	Warrants to purchase common stock	12,004,589	32,495,753
	Restricted stock units	5,532,640	13,296,255
	Totals	54,693,202	93,281,780
	Recent Accounting Pronouncements
	There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations or cash flows.
	Reclassifications
	Certain amounts in the prior period condensed consolidated financial statements have been reclassified for comparison purposes to conform to the presentation of the current period condensed consolidated financial statements. These reclassifications had no effect on the previously reported net income.
	Subsequent Events
	The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed.

STOCKHOLDERS_EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity Note [Abstract]	'
Stockholders' Equity Note Disclosure [Text Block]	'
	NOTE 4 – STOCKHOLDERS’ EQUITY
	On January 9, 2014, the Company entered into agreements with the holder of certain of its outstanding warrants originally issued in private placement transactions in September 2011 and April 2012. Pursuant to such agreements, which are more fully described below, the Company agreed to extend the period during which the warrants are exercisable at a reduced exercise price.
	On January 9, 2014, the Company entered into Amendment No. 4 to the warrants that were originally issued in September 2011.  Pursuant to Amendment No. 4, the exercise price of the warrants was reduced to $0.05 per share until March 10, 2014.
	On January 9, 2014, the Company entered into Amendment No. 3 to the warrant that was originally issued in April 19, 2012.  Pursuant to Amendment No. 3, the exercise price of the warrants was reduced to $0.05 per share until March 10, 2014.
	On January 10, 2014, holders of such warrants exercised an aggregate of 11,200,000 warrants to purchase common stock at the reduced exercise price of $0.05 per share resulting in $560,000 in cash proceeds.  In connection with the warrant exercise, the Company incurred a non-cash interest expense due to warrant modification of $241,176 when the inducement offer was accepted during the three months ended March 31, 2014.
	On March 24, 2014, the holder of such warrants exercised an aggregate of 9,291,164 warrants to purchase common stock at the reduced exercise price of $0.05 per share resulting in $464,558 in cash proceeds.   As of March 31, 2014, the shares of common stock were not issued.  Such shares were issued in April 2014, but were included in the calculation of net loss per share for the three months ended March 31, 2014.  In connection with the warrant exercise, the Company incurred a non-cash interest expense due to warrant modification of $205,749 when the inducement offer was accepted during the three months ended March 31, 2014.
	Options
	Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure derived from an index of historical stock prices of comparable entities until sufficient data exists to estimate the volatility using the Company’s own historical stock prices. Management determined this assumption to be a more accurate indicator of value. The Company accounts for the expected life of options in accordance with the “simplified” method which enables the use of the simplified method for “plain vanilla” share options as defined in Staff Accounting Bulletin No. 107. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.  The fair value of stock-based payment awards during the three months ended March 31, 2014 was estimated using the Black-Scholes pricing model.
	In addition, the Company is required to estimate the expected forfeiture rate and only recognize expense for those shares expected to vest. In estimating the Company’s forfeiture rate, the Company analyzed its historical forfeiture rate, the remaining lives of unvested options, and the number of vested options as a percentage of total options outstanding. If the Company’s actual forfeiture rate is materially different from its estimate, or if the Company reevaluates the forfeiture rate in the future, the stock-based compensation expense could be significantly different from what the Company has recorded in the current period.
	The Company estimated forfeitures related to option grants at a weighted average annual rate of  0% per year, as the Company does not yet have adequate historical data, for options granted during the three months ended March 31, 2014 and 2013.
	The following assumptions were used in determining the fair value of employee and vesting non-employee options:
			March 31,		March 31,
			2014		2013
	Risk-free interest rate	0	2.65%-2.73%		0.77%-0.86%
	Dividend yield		0%		0%
	Stock price volatility		78.9%-79.2%		20%-37%
	Expected life		8-10 years		5.75 years
	Weighted average grant date fair value		$0.11		$0.11
	On March 14, 2014, the Compensation Committee of the Board of Directors approved an equity bonus for the  Company’s Chief Executive Officer consisting of stock options with a fair value of $800,000. The total bonus awarded was $1,140,000 of which $85,000 will be paid in cash and $1,055,000 will be paid in stock options valued using the Black Scholes method.  Accordingly, the Company granted options to purchase 9,232,745 shares of common stock to the Chief Executive Officer effective March 14, 2014 exercisable at $0.14 per share for ten years, vesting over a term of three years.
	The following table summarizes the stock option activity for the three months ended March 31, 2014:
		Shares		Weighted-Average			Weighted-Average		Aggregate
				Exercise Price			Remaining		Intrinsic
							Contractual Term		Value
	Outstanding at January 1, 2014	13,877,573		$	0.19			8.4	$	-
	Grants	9,232,745		$	0.14			10	$	-
	Exercised	-
	Outstanding at March 31, 2014	23,110,318		$	0.17			9.1	$	253,064
	Vested and expected to vest at March 31, 2014	23,110,318		$	0.17			9.1	$	253,064
	Exercisable at March 31, 2014	9,928,556		$	0.16			8.2	$	253,064
	The following table presents information related to employee stock options at March 31, 2014:
	Options Outstanding					Options Exercisable
						Weighted
						Average		Exercisable
	Exercise			Number of		Remaining Life		Number of
	Price			Options		In Years		Options
	$	0.00-0.10		7,049,043		8		7,049,043
		0.11-0.25		14,791,275		9.6		1,856,179
		0.26-0.50		750,000		8.2		750,000
		0.51 – 0.90		520,000		8.3		273,334
				23,110,318		9.1		9,928,556
	As of March 31, 2014, stock-based compensation of $1,418,265 remains unamortized and is expected to be amortized over the weighted average remaining period of 2 years.
	The stock-based compensation expense related to option grants was $75,717 and $41,506 during the three months ended March 31, 2014 and 2013, respectively.
	Restricted Stock
	The following table summarizes the restricted stock activity for the three months ended March 31, 2014:
	Restricted shares issued as of January 1, 2014		13,456,667
		Granted	-
		Forfeited	-
		Total Restricted Shares Issued at March 31, 2014	13,456,667
		Vested at March 31, 2014	-7,924,027
		Unvested restricted shares as of March 31, 2014	5,532,640
	Stock based compensation expense related to restricted stock grants was $438,010 and $436,194 for the three months ended March 31, 2014 and 2013, respectively. As of March 31, 2014, the stock-based compensation relating to restricted stock of $2,039,206 remains unamortized and is expected to be amortized over the remaining period of approximately 1.25 years.
	Warrants
	The following table summarizes information with respect to outstanding warrants to purchase common stock of the Company, all of which were exercisable, at March 31, 2014:
	Exercise			Number
	Price			Outstanding		Expiration Date
	$	0.05		20,336,818		March 2017 to April 2018
	$	0.5		487,235		November 2014 to December 2014
	$	0.75		471,700		Jul-14
				21,295,753
		Shares		Weighted-Average			Weighted-Average		Aggregate
				Exercise Price			Remaining		Intrinsic
							Contractual Term		Value
	Outstanding at January 1, 2014	32,495,753		$	0.08			3.4	$	-
Issued	-							$	-
Exercised	-11,200,000		$	0.05
Forfeitures or expirations	-
Outstanding at March 31, 2014	21,295,753		$	0.08			2.6	$	1,626,945
Vested and expected to vest at March 31, 2014	21,295,753		$	0.08			2.6	$	1,626,945
Exercisable at March 31, 2014	21,295,753		$	0.08			2.6	$	1,626,945

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies Disclosure [Text Block]	'
	NOTE 5 – COMMITMENTS AND CONTINGENCIES
	Litigation
	Between July 19, 2013 and October 3, 2013, Groupon filed petitions with the Patent Trial & Appeals Board (“PTAB”) requesting institution of Covered Business Method Review of all asserted claims. On December 19, 2013 and January 17, 2014, the PTAB issued decisions instituting review on all but four of the asserted claims. On January 14, 2014, the Company and all defendants filed a joint motion to stay the district court litigation. The Court granted the motion and stayed the case on January 16, 2014 pending a decision by the PTAB. Trial on the Covered Business Method Reviews at the PTAB is set for September 5, 2014. On February 3, 2014, Groupon filed a petition to the U.S. Court of Appeals for the Federal Circuit for mandamus on the District Court's denial of its motion to transfer. The Federal Circuit on April 23, 2014 denied Groupon Inc.'s bid to transfer our suit from Texas to Illinois, finding that the lower court judge correctly denied Groupon, Inc.’s earlier transfer request.
	As part of the Company's August 2013 settlement with Living Social, the Company's attorney is entitled to additional compensation for the value of certain non-monetary arrangements. As of March 31, 2014, the payment of such compensation is not probable or measurable.
	In the normal course of business the Company may be involved in legal proceedings, claims and assessments arising in the ordinary course of business. Such matters are subject to many uncertainties, and outcomes are not predictable with assurance. Legal fees for such matters are expensed as incurred and we accrue for adverse outcomes as they become probable and estimable.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2014
Subsequent Events [Abstract]	'
Subsequent Events [Text Block]	'
	NOTE 6 – SUBSEQUENT EVENTS
	In April 2014, the Company issued at aggregate of 497,982 shares of common stock to consultants for services rendered.  In addition, the Company issued 320,000 shares of common stock in connection with exercise of non-employee options at an exercise price of $0.0679 per share.
	In April 2014, the Company issued 1,090,487 common shares to the Company’s Chief Executive Officer, the vested portion of previously issued restricted stock units.  See Note 4 above.
	In April 2014, the Company awarded an aggregate of 1,730,000 of stock options to certain employees and one contractor.  The stock options have a exercise prices from $0.12 to $0.13 per share, will vest over a three year period, and have an approximate fair value of $170,000.

Accounting_Policies_by_Policy_

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Consolidation, Policy [Policy Text Block]	'
	Principles of Consolidation
	The accompanying condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries.  All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block]	'
	Use of Estimates
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include the recoverability and useful lives of long-lived assets, the fair value of the Company’s stock, stock-based compensation, fair values relating to warrant and other derivative liabilities, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates
Concentration Risk, Credit Risk, Policy [Policy Text Block]	'
	Concentrations of Credit Risk
	The Company’s financial instruments that are exposed to a concentration of credit risk are cash and accounts receivable.
	As of March 31, 2014, two customers represented 65% and 16% of the Company’s accounts receivable. As of December 31, 2013, two customers represented 49% and 24% of the Company’s accounts receivable.
	During the three months ended March 31, 2014, two customers represented 71% and 13% of total revenue
Earnings Per Share, Policy [Policy Text Block]	'
	Net Income (Loss) per Share
	The Company computes basic net income (loss) per share by dividing net income (loss) per share available to common stockholders by the weighted average number of common shares outstanding for the period and excludes the effects of any potentially dilutive securities. Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable. The computation of basic and diluted loss per share as of March 31, 2014 and 2013 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.
	Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share are as follows:
		March 31,	March 31,
		2014	2013
	Convertible notes payable	3,000,000	7,773,879
	Series A convertible preferred stock	11,045,655	25,036,820
	Options to purchase common stock	23,110,318	14,679,073
	Warrants to purchase common stock	12,004,589	32,495,753
	Restricted stock units	5,532,640	13,296,255
	Totals	54,693,202	93,281,780
New Accounting Pronouncements, Policy [Policy Text Block]	'
	Recent Accounting Pronouncements
	There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company's financial position, results of operations or cash flows
Reclassification, Policy [Policy Text Block]	'
	Reclassifications
	Certain amounts in the prior period condensed consolidated financial statements have been reclassified for comparison purposes to conform to the presentation of the current period condensed consolidated financial statements. These reclassifications had no effect on the previously reported net income.
Subsequent Events, Policy [Policy Text Block]	'
	Subsequent Events
	The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed consolidated financial statements, except as disclosed

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2014
Accounting Policies [Abstract]	'
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]	'
		March 31,	March 31,
		2014	2013
	Convertible notes payable	3,000,000	7,773,879
	Series A convertible preferred stock	11,045,655	25,036,820
	Options to purchase common stock	23,110,318	14,679,073
	Warrants to purchase common stock	12,004,589	32,495,753
	Restricted stock units	5,532,640	13,296,255
	Totals	54,693,202	93,281,780

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2014
Stockholders' Equity Note [Abstract]	'
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]	'
			March 31,		March 31,
			2014		2013
	Risk-free interest rate	0	2.65%-2.73%		0.77%-0.86%
	Dividend yield		0%		0%
	Stock price volatility		78.9%-79.2%		20%-37%
	Expected life		8-10 years		5.75 years
	Weighted average grant date fair value		$0.11		$0.11
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	'
		Shares		Weighted-Average			Weighted-Average		Aggregate
				Exercise Price			Remaining		Intrinsic
							Contractual Term		Value
	Outstanding at January 1, 2014	13,877,573		$	0.19			8.4	$	-
	Grants	9,232,745		$	0.14			10	$	-
	Exercised	-
	Outstanding at March 31, 2014	23,110,318		$	0.17			9.1	$	253,064
	Vested and expected to vest at March 31, 2014	23,110,318		$	0.17			9.1	$	253,064
	Exercisable at March 31, 2014	9,928,556		$	0.16			8.2	$	253,064
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	'
	Options Outstanding					Options Exercisable
						Weighted
						Average		Exercisable
	Exercise			Number of		Remaining Life		Number of
	Price			Options		In Years		Options
	$	0.00-0.10		7,049,043		8		7,049,043
		0.11-0.25		14,791,275		9.6		1,856,179
		0.26-0.50		750,000		8.2		750,000
		0.51 – 0.90		520,000		8.3		273,334
				23,110,318		9.1		9,928,556
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block]	'
	Restricted shares issued as of January 1, 2014		13,456,667
		Granted	-
		Forfeited	-
		Total Restricted Shares Issued at March 31, 2014	13,456,667
		Vested at March 31, 2014	-7,924,027
		Unvested restricted shares as of March 31, 2014	5,532,640
Schedule of Outstanding Warrants [Table Text Block]	'
	Exercise			Number
	Price			Outstanding		Expiration Date
	$	0.05		20,336,818		March 2017 to April 2018
	$	0.5		487,235		November 2014 to December 2014
	$	0.75		471,700		Jul-14
				21,295,753
Schedule of Warrants Activity [Table Text Block]	'
		Shares		Weighted-Average			Weighted-Average		Aggregate
				Exercise Price			Remaining		Intrinsic
							Contractual Term		Value
	Outstanding at January 1, 2014	32,495,753		$	0.08			3.4	$	-
	Issued	-							$	-
	Exercised	-11,200,000		$	0.05
	Forfeitures or expirations	-
	Outstanding at March 31, 2014	21,295,753		$	0.08			2.6	$	1,626,945
	Vested and expected to vest at March 31, 2014	21,295,753		$	0.08			2.6	$	1,626,945
	Exercisable at March 31, 2014	21,295,753		$	0.08			2.6	$	1,626,945

GOING_CONCERN_AND_MANAGEMENTS_1

GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012
Liquidity Going Concern Disclosure [Abstract]	'	'	'	'
Cash and Cash Equivalents, at Carrying Value	$1,679,915	$64,593	$1,294,882	$218,798
Working Capital	1,186,118	'	'	'
Net Cash Provided by (Used in) Operating Activities	-630,540	-302,903	'	'
Proceeds from Warrant Exercises	$1,024,558	'	'	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Customer 1 [Member] | Accounts Receivable [Member]	'	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]	'	'
Concentration Risk, Percentage	65.00%	49.00%
Customer 1 [Member] | Sales [Member]	'	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]	'	'
Concentration Risk, Percentage	71.00%	'
Customer 2 [Member] | Accounts Receivable [Member]	'	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]	'	'
Concentration Risk, Percentage	16.00%	24.00%
Customer 2 [Member] | Sales [Member]	'	'
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]	'	'
Concentration Risk, Percentage	13.00%	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	54,693,202	93,281,780
Convertible Notes Payable [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	3,000,000	7,773,879
Convertible Debt Securities [Member] | Series A Preferred Stock [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	11,045,655	25,036,820
Equity Option [Member] | Common Stock [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	23,110,318	14,679,073
Warrant [Member] | Common Stock [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	12,004,589	32,495,753
Restricted Stock Units (RSUs) [Member] | Common Stock [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share	5,532,640	13,296,255

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)

0 Months Ended

2 Months Ended

3 Months Ended

3 Months Ended

Jan. 24, 2014

Jan. 10, 2014

Mar. 24, 2014

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2014

Mar. 31, 2013

Mar. 31, 2014

Mar. 31, 2013

Jan. 31, 2014

Jan. 31, 2014

Mar. 31, 2014

Employee Stock Option [Member]

Employee Stock Option [Member]

Employee Stock Option [Member]

Restricted Stock [Member]

Restricted Stock [Member]

Warrant Agreement Amendment No 4 [Member]

Warrant Agreement Amendment No 3 [Member]

Chief Executive Officer [Member]

Chief Executive Officer [Member]

STOCKHOLDERS' EQUITY (Details) [Line Items]

'

'

'

'

'

'

'

'

'

'

'

'

'

'

Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per Share)

'

'

'

$0.05

$0.05

'

'

'

'

'

'

$0.05

$0.05

'

Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares)

9,291,164

11,200,000

'

'

'

'

'

'

'

'

'

'

'

'

Proceeds from Issuance of Warrants

$464,558

$560,000

'

'

'

'

'

'

'

'

'

'

'

'

Gain (Loss) on Derivative Instruments, Net, Pretax

'

241,176

205,749

'

-446,925

'

'

'

'

'

'

'

'

'

Officers' Compensation

'

'

'

'

'

'

'

'

'

'

'

'

'

800,000

Allocated Share-based Compensation Expense

'

'

'

'

'

'

'

75,717

41,506

'

'

'

'

1,140,000

Payments to Employees

'

'

'

'

'

'

'

'

'

'

'

'

'

85,000

Stock or Unit Option Plan Expense

'

'

'

'

'

'

'

'

'

'

'

'

'

1,055,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)

'

'

'

9,232,745

'

'

'

'

'

'

'

'

'

9,232,745

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price (in Dollars per share)

'

'

'

$0.16

$0.16

'

'

'

'

'

'

'

'

$0.14

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term

'

'

'

'8 years 73 days

'

'

'

'

'

'

'

'

'

'10 years

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period

'

'

'

'

'

'

'3 years

'

'

'

'

'

'

'

Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options

'

'

'

'

'

'

'

1,418,265

'

2,039,206

'

'

'

'

Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition

'

'

'

'

'

'

'

'2 years

'

'1 year 3 months

'

'

'

'

Share-based Compensation

'

'

'

'

$513,727

$477,700

'

'

'

$438,010

$436,194

'

'

'

STOCKHOLDERS_EQUITY_Details_As

STOCKHOLDERS' EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
STOCKHOLDERS' EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options [Line Items]	'	'
Dividend yield	0.00%	0.00%
Expected life	'	'5 years 9 months
Weighted average grant date fair value (in Dollars per share)	$0.11	$0.11
Minimum [Member]	'	'
STOCKHOLDERS' EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options [Line Items]	'	'
Risk-free interest rate	2.65%	0.77%
Stock price volatility	78.90%	20.00%
Expected life	'8 years	'
Maximum [Member]	'	'
STOCKHOLDERS' EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options [Line Items]	'	'
Risk-free interest rate	2.73%	0.86%
Stock price volatility	79.20%	37.00%
Expected life	'10 years	'

STOCKHOLDERS_EQUITY_Details_St

STOCKHOLDERS' EQUITY (Details) - Stock option activity (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2014
Stock option activity [Abstract]	'	'
Outstanding at January 1, 2014	'	13,877,573
Outstanding at January 1, 2014 (in Dollars per share)	'	$0.19
Outstanding at January 1, 2014	'9 years 36 days	'8 years 146 days
Outstanding at January 1, 2014 (in Dollars)	'	'
Grants	9,232,745	'
Grants (in Dollars per share)	$0.14	'
Grants	'10 years	'
Grants (in Dollars)	'	'
Exercised	'	'
Outstanding at March 31, 2014	23,110,318	23,110,318
Outstanding at March 31, 2014 (in Dollars per share)	$0.17	$0.17
Outstanding at March 31, 2014	'9 years 36 days	'8 years 146 days
Outstanding at March 31, 2014 (in Dollars)	253,064	253,064
Vested and expected to vest at March 31, 2014	23,110,318	23,110,318
Vested and expected to vest at March 31, 2014 (in Dollars per share)	$0.17	$0.17
Vested and expected to vest at March 31, 2014	'9 years 36 days	'
Vested and expected to vest at March 31, 2014 (in Dollars)	253,064	253,064
Exercisable at March 31, 2014	9,928,556	9,928,556
Exercisable at March 31, 2014 (in Dollars per share)	$0.16	$0.16
Exercisable at March 31, 2014	'8 years 73 days	'
Exercisable at March 31, 2014 (in Dollars)	$253,064	$253,064

STOCKHOLDERS_EQUITY_Details_In

STOCKHOLDERS' EQUITY (Details) - Information related employee stock options	12 Months Ended
	Mar. 31, 2014
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Number of Options	23,110,318
Weighted Average Remaining Life	'9 years 36 days
Exercisable Number of Options	9,928,556
Exercise Price Range 0.00-0.10 [Member]	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Number of Options	7,049,043
Weighted Average Remaining Life	'8 years
Exercisable Number of Options	7,049,043
Exercise Price Range 0.11-0.25 [Member]	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Number of Options	14,791,275
Weighted Average Remaining Life	'9 years 219 days
Exercisable Number of Options	1,856,179
Exercise Price Range 0.26-0.50 [Member]	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Number of Options	750,000
Weighted Average Remaining Life	'8 years 73 days
Exercisable Number of Options	750,000
Exercise Price Range 0.51 b 0.90 [Member]	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]	'
Number of Options	520,000
Weighted Average Remaining Life	'8 years 109 days
Exercisable Number of Options	273,334

STOCKHOLDERS_EQUITY_Details_Re

STOCKHOLDERS' EQUITY (Details) - Restricted stock activity (Restricted Stock [Member])	3 Months Ended
	Mar. 31, 2014
Restricted Stock [Member]	'
STOCKHOLDERS' EQUITY (Details) - Restricted stock activity [Line Items]	'
Restricted shares issued as of January 1, 2014	13,456,667
Granted	'
Forfeited	'
Total Restricted Shares Issued at March 31, 2014	13,456,667
Vested at March 31, 2014	-7,924,027
Unvested restricted shares as of March 31, 2014	5,532,640

STOCKHOLDERS_EQUITY_Details_In1

STOCKHOLDERS' EQUITY (Details) - Information with respect to outstanding warrants (USD $)	3 Months Ended
	Mar. 31, 2014
STOCKHOLDERS' EQUITY (Details) - Information with respect to outstanding warrants [Line Items]	'
Exercise Price (in Dollars per Share)	$0.05
Number of Outstanding	21,295,753
Warrants Exercise Price 0.05 [Member]	'
STOCKHOLDERS' EQUITY (Details) - Information with respect to outstanding warrants [Line Items]	'
Exercise Price (in Dollars per Share)	$0.05
Number of Outstanding	20,336,818
Expiration Date	'March 2017 to April 2018
Warrants Exercise Price 0.50 [Member]	'
STOCKHOLDERS' EQUITY (Details) - Information with respect to outstanding warrants [Line Items]	'
Exercise Price (in Dollars per Share)	$0.50
Number of Outstanding	487,235
Expiration Date	'November 2014 to December 2014
Warrants Exercise Price 0.75 [Member]	'
STOCKHOLDERS' EQUITY (Details) - Information with respect to outstanding warrants [Line Items]	'
Exercise Price (in Dollars per Share)	$0.75
Number of Outstanding	471,700
Expiration Date	'July 2014

STOCKHOLDERS_EQUITY_Details_Wa

STOCKHOLDERS' EQUITY (Details) - Warrant activity (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2014
STOCKHOLDERS' EQUITY (Details) - Warrant activity [Line Items]	'	'
Outstanding at March 31, 2014	21,295,753	21,295,753
Outstanding at March 31, 2014 (in Dollars per Share)	$0.05	$0.05
Warrant [Member]	'	'
STOCKHOLDERS' EQUITY (Details) - Warrant activity [Line Items]	'	'
Outstanding at January 1, 2014	'	32,495,753
Outstanding at January 1, 2014 (in Dollars per Share)	'	$0.08
Outstanding at January 1, 2014	'2 years 219 days	'3 years 146 days
Outstanding at January 1, 2014 (in Dollars)	'	'
Issued	'	'
Issued (in Dollars)	'	'
Exercised	-11,200,000	'
Exercised (in Dollars per share)	$0.05	'
Forfeitures or expirations	'	'
Outstanding at March 31, 2014	21,295,753	21,295,753
Outstanding at March 31, 2014 (in Dollars per Share)	$0.08	$0.08
Outstanding at March 31, 2014	'2 years 219 days	'3 years 146 days
Outstanding at March 31, 2014 (in Dollars)	1,626,945	1,626,945
Vested and expected to vest at March 31, 2014	21,295,753	21,295,753
Vested and expected to vest at March 31, 2014 (in Dollars per share)	$0.08	$0.08
Vested and expected to vest at March 31, 2014	'2 years 219 days	'
Vested and expected to vest at March 31, 2014 (in Dollars)	1,626,945	1,626,945
Exercisable at March 31, 2014	21,295,753	21,295,753
Exercisable at March 31, 2014 (in Dollars per share)	$0.08	$0.08
Exercisable at March 31, 2014	'2 years 219 days	'
Exercisable at March 31, 2014 (in Dollars)	$1,626,945	$1,626,945

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (USD $)	1 Months Ended
	Apr. 30, 2014
SUBSEQUENT EVENTS (Details) [Line Items]	'
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit (in Dollars per share)	$0.12
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit (in Dollars per share)	$0.13
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value (in Dollars)	$170,000
Subsequent Event [Member] | Common Stock [Member]	'
SUBSEQUENT EVENTS (Details) [Line Items]	'
Stock Issued During Period, Shares, Issued for Services	497,982
Subsequent Event [Member] | Chief Executive Officer [Member]	'
SUBSEQUENT EVENTS (Details) [Line Items]	'
Stock Issued During Period, Shares, Restricted Stock Award, Gross	1,090,487
Subsequent Event [Member]	'
SUBSEQUENT EVENTS (Details) [Line Items]	'
Share-based Goods and Nonemployee Services Transaction, Quantity of Securities Issued	320,000
Share-based Goods and Nonemployee Services Transaction Exercise Price of Options (in Dollars per share)	$0.07
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,730,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	'3 years