Blue Calypso 10-Q 14 May 15 2015 Q1 Quarterly report Financial data

Document_And_Entity_Informatio

Document And Entity Information	3 Months Ended
	Mar. 31, 2015	14-May-15
Document and Entity Information [Abstract]
Entity Registrant Name	BLUE CALYPSO, INC.
Document Type	10-Q
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding		248,996,580
Amendment Flag	FALSE
Entity Central Index Key	1399587
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-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$640,243	$1,103,201
Accounts receivable	106,621	167,396
Prepaid expenses and other current assets	37,820	50,356
Total current assets	784,684	1,320,953
Property and equipment, net	10,082	6,315
Other assets:
Capitalized software development costs, net of accumulated amortization of $1,069,745 and $986,502 as of March 31, 2015 and December 31, 2014, respectively	788,538	794,551
Total assets	1,583,304	2,121,819
Current liabilities:
Accounts payable	33,110	24,600
Accrued expenses	182,313	236,526
Deferred revenue	1,100	1,100
Total current liabilities	216,523	262,226
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; -0- and 161,827 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively		16
Common stock, $0.0001 par value; 680,000,000 shares authorized, 248,996,580 and 245,130,308 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively	24,900	24,514
Additional paid in capital	34,117,960	34,002,297
Accumulated deficit	-32,776,079	-32,167,234
Total stockholders' equity	1,366,781	1,859,593
Total liabilities and stockholders' equity	1,583,304	2,121,819
Preferred Stock [Member]
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; -0- and 161,827 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively
Total stockholders' equity		16
Series A Convertible Preferred Stock [Member]
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; -0- and 161,827 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively		$16

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Capitalized software development costs,accumulated amortization (in Dollars)	$1,069,745	$986,502
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	248,996,580	245,130,308
Common stock, shares outstanding	248,996,580	245,130,308
Preferred Stock [Member]
Preferred stock, par value (in Dollars per share)	$0.00	$0.00
Preferred stock, shares authorized	5,000,000	5,000,000
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	0	161,827
Preferred stock, shares outstanding	0	161,827

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
REVENUE	$115,725	$164,215
Cost of revenue	55,112	73,747
Gross profit	60,613	90,468
OPERATING EXPENSES:
Sales and marketing	48,574	163,517
General and administrative	535,547	1,072,376
Depreciation and amortization	84,621	83,415
Total operating expenses	668,742	1,319,308
Loss from operations	-608,129	-1,228,840
Other expense:
Change in fair value of derivative liabilities		1,543
Interest expense	-716	-518,064
Total other expense	-716	-516,521
NET LOSS	($608,845)	($1,745,361)
Net loss per common share, basic and diluted (in Dollars per share)	$0	($0.01)
Weighted average common shares outstanding, basic and diluted (in Shares)	245,883,588	200,065,680

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (unaudited) (USD $)	Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2014	$16	$24,514	$34,002,297	($32,167,234)	$1,859,593
Balance (in Shares) at Dec. 31, 2014	161,827	245,130,308
Conversion of preferred shares to common shares	-16	238	-222
Conversion of preferred shares to common shares (in Shares)	-161,827	2,382,312
Shares issued for services rendered		39	59,840		59,879
Shares issued for services rendered (in Shares)		393,473
Stock based compensation		109	56,045		56,154
Stock based compensation (in Shares)		1,090,487
Net loss				-608,845	-608,845
Balance at Mar. 31, 2015		$24,900	$34,117,960	($32,776,079)	$1,366,781
Balance (in Shares) at Mar. 31, 2015		248,996,580

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	($608,845)	($1,745,361)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	84,621	83,415
Bad debt expense	18,476
Amortization of debt discounts		55,948
Interest from warrant modification		446,925
Change in fair value of derivative liabilities		-1,543
Stock based compensation	56,154	513,727
Common stock issued for services rendered	59,879
Changes in operating assets and liabilities:
Accounts receivable	42,299	-112,240
Prepaid expenses and other current assets	12,536	15,024
Accounts payable	8,510	2,493
Accrued expenses	-54,213	100,598
Deferred revenue		10,475
Net cash used in operating activities	-380,583	-630,540
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of fixed assets	-5,144
Software development costs	-77,231	-8,985
Net cash used in investing activities	-82,375	-8,985
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of warrants		1,024,558
Net cash provided by financing activities		1,024,558
Net (decrease) increase in cash	-462,958	385,033
Cash at beginning of period	1,103,201	1,294,882
Cash at end of period	640,243	1,679,915
SUPPLEMENTAL INFORMATION
Cash paid for interest	27,976
Cash paid for income taxes

NATURE_OF_OPERATIONS_AND_BASIS

NATURE OF OPERATIONS AND BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2015
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.
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Accordingly, they do not include all of the information and disclosures required by U.S. 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, 2015 and for the three months ended March 31, 2015 and 2014. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of the operating results for the full year ending December 31, 2015, 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, 2014 and for the year then ended, which were filed with the Securities and Exchange Commission on Form 10-K on March 17, 2015.

GOING_CONCERN_AND_MANAGEMENTS_

GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Substantial Doubt about Going Concern [Text Block]	NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS
	As of March 31, 2015, the Company had cash of $640,243 and working capital of $568,161. During the three months ended March 31, 2015, the Company used net cash in operating activities of $380,583.  The Company has incurred net losses since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
	The Company believes that its current cash on hand will be sufficient to fund its projected operating requirements through June 2015.
	The Company's primary source of operating funds since inception has been cash proceeds from private placements of common stock, preferred stock, convertible debentures and the exercise of warrants.  The Company intends to raise additional capital through private issuances of debt and equity instruments, 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 execute on its business plan 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 U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The 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, 2015
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 U.S. 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, debt discounts and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.
	Concentrations of Credit Risk
	As of March 31, 2015, three customers represented 28%, 50% and 12% of the Company’s accounts receivable. As of December 31, 2014, two customers represented 62% and 20% of the Company’s accounts receivable.
	During the three months ended March 31, 2015, three customers represented 11%, 64% and 15% of total revenue. During the three months ended March 31, 2014, two customers represented 71% and 13% of total revenue.
	Net Loss per Share
	The Company computes basic net loss per share by dividing net 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 for the three months ended March 31, 2015 and 2014 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 loss per share are as follows:
		March 31,	March 31,
		2015	2014
	Convertible notes payable	-	3,000,000
	Series A convertible preferred stock	-	11,045,655
	Options to purchase common stock	22,365,236	23,110,318
	Warrants to purchase common stock	11,045,654	12,004,589
	Restricted stock units	1,090,487	5,532,640
	Totals	34,501,377	54,693,202
	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.
	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, 2015
Stockholders' Equity Note [Abstract]
Stockholders' Equity Note Disclosure [Text Block]	NOTE 4 – STOCKHOLDERS’ EQUITY
	On March 3, 2015, 161,827 shares of the Company’s Series A Convertible Preferred Stock were converted into an aggregate of 2,382,312 shares of common stock at the stated conversion price of $0.0679 per share.
	During the three months ended March 31, 2015, the Company issued 180,053 shares of its common stock as consideration for investor relations services valued at $30,000.
	During the three months ended March 31, 2015, the Company issued 213,420 shares of its common stock as consideration for legal services valued at $29,879.
	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 using the Company’s historical stock prices for 2015. Prior to 2015, the Company derived the volatility figure from an index of historical stock prices for comparable entities. Management determined this assumption to be a more accurate indicator of value. The Company accounts for the expected life of options based on the contractual life of options for non-employees. For employees, the Company accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla” options, as defined in the accounting standards codification.
	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.
	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, 2015 and 2014.
	The following assumptions were used in determining the fair value of employee and vesting non-employee options during the three months ended March 31, 2015 and 2014:
		31-Mar-15		31-Mar-14
	Risk-free interest rate	1.68% - 1.94%		2.65% - 2.73%
	Dividend yield	0%		0%
	Stock price volatility	140.67% - 145.24%		78.9% - 79.2%
	Expected life	7 - 10 years		8-10  years
	Weighted average grant date fair value	$0.11		$0.11
	During the three months ended March 31, 2015, the Company granted options to purchase 375,000 shares of common stock to a new board member. These options vest over a 3 year period, have a term of 10 years, and contain an exercise price of $0.10 per share. The options had an aggregate grant date fair value of $34,945.
		Shares		Weighted-Average			Weighted-Average			Aggregate
				Exercise Price			Remaining			IntrinsicValue
							Contractual Term
	Outstanding at January 1, 2015	22,052,736		$	0.1687			4.2		$         858,766
	Granted	375,000		$	0.1			10
	Canceled	-62,500		$	0.12
	Outstanding at March 31, 2015	22,365,236		$	0.17			3.9		429,012
	Exercisable at March 31, 2015	16,047,474		$	0.16			3.7		$         373,706
	The following table presents information related to stock options at March 31, 2015:
	Options Outstanding				Options Exercisable
					Weighted
					Average
					Remaining Life	Exercisable
					In Years	Number of
		Exercise	Number of
						Options
		Price	Options
	$	0.00-0.10	8,254,043		4.3	7,342,585
		0.11-0.25	12,841,193		3.5	7,658,222
		0.26-0.50	750,000		5	750,000
		0.51-0.90	520,000		5	296,667
			22,365,236		3.9	16,047,474
	As of March 31, 2015, stock-based compensation of $140,587 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 $56,154 and $75,717 during the three months ended March 31, 2015 and 2014, respectively.
	Restricted Stock
	As of March 31, 2015, the Company had unissued restricted shares of 1,090,487.  Stock based compensation expense related to restricted stock grants was $-0- and $438,010 for the three months ended March 31, 2015 and 2014, respectively.  As of December 31, 2014, there was no stock-based compensation relating to restricted stock unamortized, since the remaining unamortized expense was charged to operations upon the departure of the Company’s former Chief Executive Officer in December 2014.
	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, 2015:
	Exercise			Number
	Price			Outstanding		Expiration Date
	$	0.1		11,045,654		Aug-16
						.
	The following table summarizes the warrant activity for the two years ended December 31, 2014:
							Weighted-Average			Aggregate
							Remaining			Intrinsic
				Weighted-Average
							Contractual Term			Value
		Shares		Exercise Price
	Outstanding at January 1, 2015	11,045,654		$	0.1		1.7		$	1,325,478
	Grants	-							$	-
	Exercised	-
	Forfeitures or expirations	-
	Outstanding at March 31, 2015	11,045,654		$	0.1		1.4		$	1,015,096
	Exercisable at March 31, 2015	11,045,654		$	0.1		1.4		$	1,015,096

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2015
Related Party Transactions [Abstract]
Related Party Transactions Disclosure [Text Block]	NOTE 5 – RELATED PARTY TRANSACTIONS
	The Company appointed a new Chief Financial Officer during August 2014.  Blue Calypso utilizes Assure Professional, LLC (Assure) to provide certain outsourced accounting services.  The Company’s current Chief Financial Officer is a partial owner of Assure.  The Company incurred expense of $6,750 in exchange for these services during the three months ended March 31, 2015.  Included in accounts payable at March 31, 2015 was $2,250 due to Assure.
	Mr. D. Jonathan Merriman, joined the Company’s Board of Directors during December 2014.  Mr. Merriman is the CEO of Merriman Capital, Inc. (“Merriman”).  Merriman provides capital market advisory services to the Company for which we incurred expense of $30,000 during the three months ended March 31, 2015.  The Company primarily issues common stock in exchange for monthly services and no amount was due to Merriman at March 31, 2015.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies Disclosure [Text Block]	NOTE 6 – COMMITMENTS AND CONTINGENCIES
	Litigation
	On July 31, 2012, the Company filed suit against Groupon, Inc. in the Eastern District of Texas in Civil Action No. 6:12-cv-00486.
	The Company filed additional suits against Izea, Inc. on October 17, 2012; Yelp, Inc. on October 17, 2012; and Foursquare Labs, Inc. on October 31, 2012 in Civil Action Nos. 6:12-cv-786, 6:12-cv-788, 6:12-cv-837, respectively. Each of these cases alleges that the defendants infringe U.S. Patent Nos. 7,664,516 entitled "Method and System for Peer-to-Peer Advertising Between Mobile Communication Devices" and 8,155,679 entitled "System and Method for Peer-to-Peer Advertising Between Mobile Communication Devices." The Company subsequently added U.S. Patent Nos. 8,438,055, 8,452,646, and 8,457,670 to the cases, alleging each defendant infringed the newly added patents. Each of the defendants have answered, denying infringement and claiming that the asserted patents are invalid. Groupon, Yelp, and Foursquare filed counterclaims for declaratory judgment that the asserted patents are invalid and not infringed. Yelp filed an additional counterclaim for declaratory judgment that the asserted patens are unenforceable. The Court subsequently consolidated the actions for at least pre-trial purposes. Groupon filed a motion to transfer the case against it to the U.S. District Court for the Northern District of California, which the Court denied on September 27, 2013.
	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 occurred during September 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. . On April 23, 2014, the petition was denied by the Federal Circuit.
	On December 17, 2014, the Patent Trial and Appeal Board issued final decisions in Covered Business Method Review proceedings CBM2013-00035, CBM2013-00033, CBM2013-00046 and CBM2013-00044.  In each case, certain claims of each patent were held to be invalid for various reasons.  With respect to the ‘516, ‘679, ‘055 and ‘646 patents, many of the claims survived and the patents remain enforceable.  All of the claims of the ‘670 patent were held invalid.  The Company has appealed each of the final decisions to the United States Federal Circuit Court of Appeals.  A decision on those appeals is expected sometime in early 2016.
	On April 2, 2015, the District Court lifted the stay and required the Parties to file a joint docket control order. On April 5, 2015, the Court set a Markman Hearing for June 29, 2015, and jury selection for December 14, 2015. On April 15, 2015, the Parties filed their joint docket control order. The Court entered its docket control order on April 23, 2015.
	As part of the Company's 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, 2015, 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, 2015
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 7 – SUBSEQUENT EVENTS
	On April 1, 2015, the Board of Directors approved a proposed amendment to the Certificate of Incorporation of the Company to effect a reverse stock split of the Company’s common stock in the range of 10:1 to 50:1, such ratio to be determined in the discretion of the Board. The proposed amendment will be submitted to the stockholders of the Company for approval and cannot be implemented until it has been approved by requisite number of the Company’s stockholders.
	On April 6, 2015, the Company entered into a letter of engagement with a third party firm pursuant to which the firm will act as the sole book runner and lead managing underwriter in connection with a potential registered follow – on offering of common stock or a combination of common stock and warrants.
	On April 10, 2015, the Company granted options to purchase 1,000,000 shares of common stock to each of the four board members for a total of 4,000,000 options. These options vest over a 3 year period, have a term of 10 years, and contain an exercise price equal to the market price on the grant date.
	On May 6, 2015, the Company granted options totaling 800,000 shares of common stock among three different employees. In general, these options vest over a 3 year period, have a term of 10 years, and contain an exercise price equal to the market price on the grant date. For 500,000 of the options, one third vest immediately with the balance vesting quarterly over a term of two years.
	During April and May 2015, the Company entered into advisory agreements with four individuals. Pursuant to these agreements the Company anticipates granting each individual 100,000 options for a total of 400,000 options. As of the date the financial statements were issued we have not finalized the grant of these options.

Accounting_Policies_by_Policy_

Accounting Policies, by Policy (Policies)	3 Months Ended
	Mar. 31, 2015
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 U.S. 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, 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
	As of March 31, 2015, three customers represented 28%, 50% and 12% of the Company’s accounts receivable. As of December 31, 2014, two customers represented 62% and 20% of the Company’s accounts receivable.
	During the three months ended March 31, 2015, three customers represented 11%, 64% and 15% of total revenue. 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 Loss per Share
	The Company computes basic net loss per share by dividing net 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 for the three months ended March 31, 2015 and 2014 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 loss per share are as follows:
		March 31,	March 31,
		2015	2014
	Convertible notes payable	-	3,000,000
	Series A convertible preferred stock	-	11,045,655
	Options to purchase common stock	22,365,236	23,110,318
	Warrants to purchase common stock	11,045,654	12,004,589
	Restricted stock units	1,090,487	5,532,640
	Totals	34,501,377	54,693,202
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.
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, 2015
Accounting Policies [Abstract]
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]		March 31,	March 31,
		2015	2014
	Convertible notes payable	-	3,000,000
	Series A convertible preferred stock	-	11,045,655
	Options to purchase common stock	22,365,236	23,110,318
	Warrants to purchase common stock	11,045,654	12,004,589
	Restricted stock units	1,090,487	5,532,640
	Totals	34,501,377	54,693,202

STOCKHOLDERS_EQUITY_Tables

STOCKHOLDERS' EQUITY (Tables)	3 Months Ended
	Mar. 31, 2015
Stockholders' Equity Note [Abstract]
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]		31-Mar-15		31-Mar-14
	Risk-free interest rate	1.68% - 1.94%		2.65% - 2.73%
	Dividend yield	0%		0%
	Stock price volatility	140.67% - 145.24%		78.9% - 79.2%
	Expected life	7 - 10 years		8-10  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			IntrinsicValue
							Contractual Term
	Outstanding at January 1, 2015	22,052,736		$	0.1687			4.2		$         858,766
	Granted	375,000		$	0.1			10
	Canceled	-62,500		$	0.12
	Outstanding at March 31, 2015	22,365,236		$	0.17			3.9		429,012
	Exercisable at March 31, 2015	16,047,474		$	0.16			3.7		$         373,706
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]	Options Outstanding				Options Exercisable
					Weighted
					Average
					Remaining Life	Exercisable
					In Years	Number of
		Exercise	Number of
						Options
		Price	Options
	$	0.00-0.10	8,254,043		4.3	7,342,585
		0.11-0.25	12,841,193		3.5	7,658,222
		0.26-0.50	750,000		5	750,000
		0.51-0.90	520,000		5	296,667
			22,365,236		3.9	16,047,474
Schedule Of Outstanding Warrants [Table Text Block]	Exercise			Number
	Price			Outstanding		Expiration Date
	$	0.1		11,045,654		Aug-16
						.
Schedule Of Warrants Activity [Table Text Block]							Weighted-Average			Aggregate
							Remaining			Intrinsic
				Weighted-Average
							Contractual Term			Value
		Shares		Exercise Price
	Outstanding at January 1, 2015	11,045,654		$	0.1		1.7		$	1,325,478
	Grants	-							$	-
	Exercised	-
	Forfeitures or expirations	-
	Outstanding at March 31, 2015	11,045,654		$	0.1		1.4		$	1,015,096
	Exercisable at March 31, 2015	11,045,654		$	0.1		1.4		$	1,015,096

GOING_CONCERN_AND_MANAGEMENTS_1

GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash	$640,243
Working Capital	568,161
Net Cash Provided by (Used in) Operating Activities	($380,583)	($630,540)

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended	12 Months Ended	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014
Customer 1 [Member] | Accounts Receivable [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Concentration Risk, Percentage	28.00%	62.00%
Customer 1 [Member] | Sales [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Concentration Risk, Percentage	11.00%		71.00%
Customer 2 [Member] | Accounts Receivable [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Concentration Risk, Percentage	50.00%	20.00%
Customer 2 [Member] | Sales [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Concentration Risk, Percentage	64.00%		13.00%
Customer 3 [Member] | Accounts Receivable [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Concentration Risk, Percentage	12.00%
Customer 3 [Member] | Sales [Member]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Concentration Risk, Percentage	15.00%

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, 2015	Mar. 31, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share	34,501,377	54,693,202
Convertible Notes Payable [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share		3,000,000
Convertible Debt Securities [Member] | Series A Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share		11,045,655
Equity Option [Member] | Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share	22,365,236	23,110,318
Warrant [Member] | Common Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share	11,045,654	12,004,589
Restricted Stock Units (RSUs) [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share	1,090,487	5,532,640

STOCKHOLDERS_EQUITY_Details

STOCKHOLDERS' EQUITY (Details) (USD $)	3 Months Ended			4 Months Ended	0 Months Ended
	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2014	Apr. 30, 2015	Mar. 03, 2015
STOCKHOLDERS' EQUITY (Details) [Line Items]
Stock Issued During Period, Value, Issued for Services		$59,879
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)	375,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	3 years 328 days	4 years 73 days
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)	$0.10
Share-based Compensation		56,154	513,727
Restricted Stock Shares Unissued (in Shares)				1,090,487
Employee Stock Option [Member] | Consultants [Member]
STOCKHOLDERS' EQUITY (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Employee Stock Option [Member] | Employees [Member]
STOCKHOLDERS' EQUITY (Details) [Line Items]
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share)		$0.10
Employee Stock Option [Member]
STOCKHOLDERS' EQUITY (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)		375,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term		10 years
Share Based Compensation Arrangement By Share Based Payment Award Options Grant Date Intrinsic Value		34,945
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	140,587	140,587
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition		2 years
Share-based Compensation		56,154	75,717
Restricted Stock [Member]
STOCKHOLDERS' EQUITY (Details) [Line Items]
Share-based Compensation		0	438,010
Investor Relations Services [Member]
STOCKHOLDERS' EQUITY (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services (in Shares)		180,053
Stock Issued During Period, Value, Issued for Services		30,000
Legal Services [Member]
STOCKHOLDERS' EQUITY (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services (in Shares)		213,420
Stock Issued During Period, Value, Issued for Services		$29,879
Series A Convertible Preferred Stock [Member]
STOCKHOLDERS' EQUITY (Details) [Line Items]
Conversion of Stock, Shares Converted (in Shares)					161,827
Common Stock [Member]
STOCKHOLDERS' EQUITY (Details) [Line Items]
Conversion of Stock, Shares Issued (in Shares)					2,382,312
Shares Issued, Price Per Share (in Dollars per share)					0.0679

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, 2015	Mar. 31, 2014
STOCKHOLDERS' EQUITY (Details) - Assumptions used in determining fair value of employee and vesting non-employee options [Line Items]
Dividend yield	0.00%	0.00%
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	1.68%	2.65%
Stock price volatility	140.67%	78.90%
Expected life	7 years	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	1.94%	2.73%
Stock price volatility	145.24%	79.20%
Expected life	10 years	10 years

STOCKHOLDERS_EQUITY_Details_St

STOCKHOLDERS' EQUITY (Details) - Stock option activity (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2015
Stock option activity [Abstract]
Outstanding at January 1, 2015		22,052,736
Outstanding at January 1, 2015		$0.17
Outstanding at January 1, 2015	3 years 328 days	4 years 73 days
Outstanding at January 1, 2015		$858,766
Granted	375,000
Granted	$0.10
Granted	10 years
Canceled	-62,500
Canceled	$0.12
Outstanding at March 31, 2015	22,365,236	22,365,236
Outstanding at March 31, 2015	$0.17	$0.17
Outstanding at March 31, 2015	3 years 328 days	4 years 73 days
Outstanding at March 31, 2015	429,012	429,012
Exercisable at March 31, 2015	16,047,474	16,047,474
Exercisable at March 31, 2015	$0.16	$0.16
Exercisable at March 31, 2015	3 years 255 days
Exercisable at March 31, 2015	$373,706	$373,706

STOCKHOLDERS_EQUITY_Details_In

STOCKHOLDERS' EQUITY (Details) - Information related employee stock options (USD $)	3 Months Ended
	Mar. 31, 2015
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of Options	22,365,236
Options Exercisable, Weighted Average Remaining Life	3 years 328 days
Options Exercisable, Number of Options	16,047,474
Exercise Price Range 0.00- 0.10 [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price (in Dollars per share)	0
Exercise Price Range 0.00- 0.10 [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price (in Dollars per share)	0.1
Exercise Price Range 0.00- 0.10 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of Options	8,254,043
Options Exercisable, Weighted Average Remaining Life	4 years 109 days
Options Exercisable, Number of Options	7,342,585
Exercise Price Range 0.11- 0.25 [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price (in Dollars per share)	0.11
Exercise Price Range 0.11- 0.25 [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price (in Dollars per share)	0.25
Exercise Price Range 0.11- 0.25 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of Options	12,841,193
Options Exercisable, Weighted Average Remaining Life	3 years 6 months
Options Exercisable, Number of Options	7,658,222
Exercise Price Range 0.26- 0.50 [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price (in Dollars per share)	0.26
Exercise Price Range 0.26- 0.50 [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price (in Dollars per share)	0.5
Exercise Price Range 0.26- 0.50 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of Options	750,000
Options Exercisable, Weighted Average Remaining Life	5 years
Options Exercisable, Number of Options	750,000
Exercise Price Range 0.51- 0.91 [Member] | Minimum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price (in Dollars per share)	0.51
Exercise Price Range 0.51- 0.91 [Member] | Maximum [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price (in Dollars per share)	0.9
Exercise Price Range 0.51- 0.91 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of Options	520,000
Options Exercisable, Weighted Average Remaining Life	5 years
Options Exercisable, Number of Options	296,667

STOCKHOLDERS_EQUITY_Details_In1

STOCKHOLDERS' EQUITY (Details) - Information with respect to outstanding warrants (Warrants Exercise Price 0.10 [Member], USD $)	3 Months Ended
	Mar. 31, 2015
Warrants Exercise Price 0.10 [Member]
STOCKHOLDERS' EQUITY (Details) - Information with respect to outstanding warrants [Line Items]
Warrants, Exercise	$0.10
Warants, Number Outstanding	11,045,654
Warrants, Expiration Date	Aug-16

STOCKHOLDERS_EQUITY_Details_Wa

STOCKHOLDERS' EQUITY (Details) - Warrant activity (Warrant [Member], USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2015
Warrant [Member]
STOCKHOLDERS' EQUITY (Details) - Warrant activity [Line Items]
Outstanding at January 1, 2015		11,045,654
Outstanding at January 1, 2015 (in Dollars per share)		$0.10
Outstanding at January 1, 2015	1 year 146 days	1 year 255 days
Outstanding at January 1, 2015 (in Dollars)		$1,325,478
Grants
Grants (in Dollars)
Exercised
Forfeitures or expirations
Outstanding at March 31, 2015	11,045,654	11,045,654
Outstanding at March 31, 2015 (in Dollars per share)	$0.10	$0.10
Outstanding at March 31, 2015	1 year 146 days	1 year 255 days
Outstanding at March 31, 2015 (in Dollars)	1,015,096	1,015,096
Exercisable at March 31, 2015	11,045,654
Exercisable at March 31, 2015 (in Dollars per share)	$0.10	$0.10
Exercisable at March 31, 2015	1 year 146 days
Exercisable at March 31, 2015 (in Dollars)	$1,015,096	$1,015,096

RELATED_PARTY_TRANSACTIONS_Det

RELATED PARTY TRANSACTIONS (Details) (USD $)	3 Months Ended
	Mar. 31, 2015
Assure [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$6,750
Due to Related Parties	2,250
Merriman [Member]
RELATED PARTY TRANSACTIONS (Details) [Line Items]
Related Party Transaction, Expenses from Transactions with Related Party	$30,000

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details)	3 Months Ended	0 Months Ended		2 Months Ended	0 Months Ended
	Mar. 31, 2015	Apr. 01, 2015	Apr. 10, 2015	31-May-15	6-May-15
SUBSEQUENT EVENTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	375,000
Subsequent Event [Member] | Reverse Stock Split [Member] | Minimum [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Stockholders' Equity Note, Stock Split, Conversion Ratio		10
Subsequent Event [Member] | Reverse Stock Split [Member] | Maximum [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Stockholders' Equity Note, Stock Split, Conversion Ratio		50
Subsequent Event [Member] | Each of the Four Board Members [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			1,000,000
Subsequent Event [Member] | Options Issuable Per Agreement [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance				100,000
Subsequent Event [Member] | Gross Shares Issuable Under Agreements [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Share-based Goods and Nonemployee Services Transaction, Shares Approved for Issuance				400,000
Subsequent Event [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Stockholders' Equity, Reverse Stock Split		On April 1, 2015, the Board of Directors approved a proposed amendment to the Certificate of Incorporation of the Company to effect a reverse stock split of the Company’s common stock in the range of 10:1 to 50:1, such ratio to be determined in the discretion of the Board
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			4,000,000		800,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period			10 years		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares					500,000