FluoroPharma Medical (FPMI) 10-Q 14 Aug 14 2014 Q2 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	6 Months Ended
	Jun. 30, 2014	Aug. 14, 2014
Document And Entity Information	'	'
Entity Registrant Name	'FLUOROPHARMA MEDICAL, INC.	'
Entity Central Index Key	'0001402785	'
Document Type	'10-Q	'
Document Period End Date	30-Jun-14	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	29,095,095
Document Fiscal Period Focus	'Q2	'
Document Fiscal Year Focus	'2014	'

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2014	Jun. 30, 2013
Current Assets:	'	'
Cash and cash equivalents	$100,986	$1,143,175
Investment in trading securities	'	634,826
Prepaid expenses & other	156,777	52,959
Total Current Assets	257,763	1,830,960
Property and equipment, net	32,392	35,429
Intangible assets, net	377,037	49,339
Total Assets	667,192	1,915,728
Current Liabilities:	'	'
Accounts payable	769,398	183,298
Derivative warrant liability	3,289,284	2,549,196
Accrued expenses and other	437,361	239,673
Total Current Liabilities	4,496,043	2,972,167
Stockholders' Equity (Deficit):	'	'
Preferred stock Series A; $0.001 par value, 3,500,000 shares designated 963,048 and 2,350,196 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively (preference in liquidation of $799,330 and $1,950,663 at June 30, 2014 and December 31, 2013, respectively)	965	2,352
Preferred stock Series B; $0.001 par value, 12,000,000 shares designated 5,694,571 and 5,725,821 shares issued and outstanding at June 30, 2014 (preference in liquidation of $4,902,497 and $4,703,533 at June 30, 2014 and December 31, 2013, respectively)	5,695	5,726
Common stock - Class A; $0.001 par value, 100,000,000 shares authorized, 29,095,295 and 25,675,013 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively	29,096	25,676
Additional paid-in capital	23,813,836	23,084,429
Deficit accumulated in the development stage	-27,678,443	-24,174,622
Total Stockholders' Equity (Deficit)	-3,828,851	-1,056,439
Total Liabilities and Stockholders' Equity (Deficit)	$667,192	$1,915,728

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock Series A, par value	$0.00	$0.00
Preferred stock Series A,designated	3,500,000	3,500,000
Preferred stock Series A, shares issued	963,048	2,350,196
Preferred stock Series A, shares outstanding	963,048	2,350,196
Preference in liquidation	$799,330	$1,950,663
Preferred stock Series B, par value	$0.00	$0.00
Preferred stock Series B, designated	12,000,000	12,000,000
Preferred stock Series B, shares issued	5,694,571	5,725,821
Preferred stock, Series B, shares outstanding	5,694,571	5,725,821
Preference in liquidation	$4,902,497	$4,703,533
Common stock, par value	$0.00	$0.00
Common stock, Authorized	100,000,000	100,000,000
Common stock, shares issued	29,095,295	25,675,013
Common stock, shares outstanding	29,095,295	25,675,013

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Operating Expenses:	'	'	'	'
General and administrative	$947,387	$718,722	$1,842,235	$1,486,321
Research and development	266,907	365,534	591,494	656,733
Total Operating Expenses	1,214,294	1,084,256	2,433,729	2,143,054
Loss from Operations	-1,214,294	-1,084,256	-2,433,729	-2,143,054
Other Income (Expense):	'	'	'	'
Interest income	'	42	'	209
Other income	'	'	'	70,525
Loss on disposition of fixed assets	-16,591	'	-16,591	'
Loss on sale of trading securities	118,518	'	302,116	'
Unrealized gain on trading securities	94,404	'	236,143	'
Loss on revaluation of derivative warrant liability	-642,047	'	-706,967	'
Interest and other expense	-282	-16,646	-608	-16,646
Total Other Income (Expense), net	-683,034	-16,604	-790,139	54,088
Loss Before Provision for Income Taxes	-1,897,328	-1,100,860	-3,223,868	-2,088,966
Provision for Income Taxes	'	'	'	'
Net Loss	-1,897,328	-1,100,860	-3,223,868	-2,088,966
Preferred Stock Dividend	-134,159	-45,664	-279,953	-89,721
Net Loss Attributable to Common Stockholders	($2,031,487)	($1,146,524)	($3,503,821)	($2,178,687)
Net loss per common share - Basic and Diluted	($0.07)	($0.05)	($0.12)	($0.09)
Weighted Average Shares Used in per Share Calculation - Basic and Diluted	28,947,241	24,365,067	28,117,277	24,355,346

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($3,223,868)	($2,088,966)
Adjustments to reconcile net loss to net cash used by operating activities	'	'
Depreciation and amortization	15,313	12,163
Non-cash fair value of common stock issued for consulting	178,160	36,150
Share-based compensation related to employee stock options	232,872	264,715
Non-cash fair value of stock options issued to non-employees for consulting	4,081	153,761
Loss on intangible asset dispositions	16,591	'
Net loss on sale of trading securities	302,116	'
Unrealized loss on trading securities	-236,143	'
Loss on revaluation of derivative warrant liabilitiy	706,967	'
(Increase) decrease in:	'	'
Prepaid expenses	-103,818	46,599
Increase (decrease) in:	'	'
Accounts payable	586,100	202,048
Accrued expenses	-26,278	-63,594
Net Cash Used in Operating Activities	-1,547,907	-1,437,124
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Proceeds from sale of investments, net	568,852	'
Purchase of intangible assets	350,000	'
Cash paid for purchase of property and equipment	6,564	1,029
Net Cash Used by Investing Activities	212,288	-1,029
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds from issuance of notes - stockholders	'	200,000
Proceeds from the exercise of stock warrants	90,375	'
Proceeds from sale of Common Stock, net	203,055	'
Net Cash Provided by Financing Activities	293,430	200,000
Net Increase (Decrease) in Cash and Cash Equivalents	-1,042,189	-1,238,153
Cash and Cash Equivalents, Beginning of Period	1,143,175	1,304,088
Cash and Cash Equivalents, End of Period	100,986	65,935
Supplemental Cash Flow Disclosures:	'	'
Tax paid	1,683	'
Supplemental Non-Cash Disclosure:	'	'
Fair value of warrants modified in connection with Series B financing	-114,923	'
Fair value of warrants issued to Series B placement agents	-12,738	'
Series B Preferred Stock dividends accrued	-225,219	'
Series A Preferred Stock dividend	-38,666	-89,721
Conversion of Series A Preferred Stock dividend to Common Stock	-16,068	'
Conversion of Series A Preferred Stock to Common Stock	-1,434	'
Conversion of Series B Preferred Stock dividend to Common Stock	($1,254)	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2014

Notes to Financial Statements

'

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

'

FluoroPharma Medical, Inc., a Nevada corporation (the “Company”), is a molecular imaging company headquartered in Montclair, N.J. The Company was founded as FluoroPharma Inc. in 2003 to engage in the discovery, development and commercialization of proprietary products for the positron emission tomography (“PET”) market. The Company’s initial focus has been on the development of novel cardiovascular imaging agents that can more efficiently and effectively detect and assess acute and chronic forms of coronary artery disease (“CAD”). Molecular imaging pharmaceuticals are radiopharmaceuticals that enable early detection of disease through the visualization of subtle changes in biochemical and biological processes.

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, FluoroPharma, Inc., a Delaware corporation.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements of FluoroPharma Medical, Inc. and Subsidiary have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and the rules and regulations of the U.S. Securities and Exchange Commission (the "SEC").  Accordingly, the unaudited condensed consolidated financial statements do not include all information and footnotes required by U.S. GAAP for complete annual financial statements.  In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of only normal recurring adjustments, considered necessary for a fair presentation.  Certain prior year amounts in the condensed consolidated financial statements and notes thereto have been reclassified to conform to the current period’s presentation.  Interim operating results are not necessarily indicative of results that may be expected for the year ending December 31, 2014 or for any other interim period.  The unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements of the Company and the notes thereto as of and for the year ended December 31, 2013, as included in the Company's Form 10-K filed with the SEC on March 25, 2014.

Development Stage Entity

In previous filings, the Company has reported as a “Development Stage Entity”.  However, in June 2014, the Financial Accounting Standards Board (FASB) published Accounting Standards Update 2014-10, “Development Stage Entities” (ASU 2014-10).  ASU 2014-10 removed the development stage entity guidance under Accounting Standards Codification Topic 915 (ASC 915), “Development Stage Entities”, thereby removing the financial reporting distinction between development stage entities and other reporting entities. In addition, ASU 2014-10 eliminates the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage.

Presentation and disclosure requirements under ASC 915 are no longer required for the first annual period beginning after December 15, 2014, including interim periods therein.  Earlier adoption of the new guidance for ASC 915 is permitted for any annual or interim period for which financial statements have not yet been issued for public business entities.  Accordingly, the Company has elected to adopt these changes effective with the filing of this 10-Q.

Investments

Investments that are purchased and held principally for the purpose of selling them in the near term are classified as “trading securities” and reflected on the balance sheet at fair value, with unrealized gains and losses included in earnings. All the Company’s investments are considered “trading securities” at December 31, 2013. Realized gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.  During the six months ended June 30, 2014, the Company has received cash proceeds of $568,852 from the sale of investments, and has recorded realized losses of $302,116 upon the sale of these securities.  As of June 30, 2014, the Company has sold all of such securities.

Intangible Assets

The Company’s intangible assets consist of technology licenses and are carried at the legal cost to obtain them. Intangible assets are amortized using the straight-line method over the estimated useful life. Useful lives on technology licenses are 5 to 15 years.

Fair Value of Financial Instruments

The Company groups its assets and liabilities measured at fair value, in three levels based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.  Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (an exit price).

Financial instruments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

The three levels of the fair value hierarchy are as follows:

Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities.  Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 – Valuation is based on observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.  Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.  In such cases, an instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.  The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the financial instrument.

The Company recognizes transfers between levels at the end of the reporting period as if the transfers occurred on the last day of the reporting period.

Assets and liabilities measured at fair value on a recurring basis at June 30, 2014 are summarized below:

30-Jun-14

Level 1

Level 2

Level 3

Fair Value

Current Liabilities:

Derivative warrant liability

$

-

$

-

$

3,289,284

$

3,289,284

Assets and liabilities measured at fair value on a recurring basis at December 31, 2013 are summarized below:

31-Dec-13

Level 1

Level 2

Level 3

Fair Value

Current Assets:

Trading securities

$

634,826

$

-

$

-

$

634,826

Current Liabilities:

Derivative warrant liability

$

-

$

-

$

2,549,196

$

2,549,196

The following table sets forth the changes in the estimated fair value during 2014 for our Level 3 classified derivative warrant liability:

Six Months Ended

30-Jun-14

Fair value at beginning of period

$

2,549,196

Modification and reclassification of outstanding warrants

114,923

Change in fair value

625,165

Fair value at end of period

$

3,289,284

At December 31, 2013, the Company measured at fair value on a nonrecurring basis certain equipment in accordance with ASC Topic 360-10-35. Fair value was determined to be $0 using certain Level 3 inputs and resulted in the Company recording a loss of $128,245 in 2013. Fair value was estimated using quantitative and qualitative considerations including the expected use and disposition of the equipment.

Net Loss per Common Share

Basic and diluted earnings per share were the same for all periods presented as including common stock equivalents in the calculation of diluted earnings per share would have been antidilutive. As of June 30, 2014, the Company had outstanding options exercisable for 4,644,428 shares of its common stock, warrants exercisable for 14,854,035 shares of its common stock, series A preferred stock (the “Series A Preferred Stock”) convertible into 1,598,660 shares of common stock, and series B preferred stock (the “Series B Preferred Stock”) convertible into 9,364,158 shares of common stock.  At June 30, 2013, the Company had outstanding options exercisable for 4,550,428 shares of its common stock, and warrants exercisable for 7,318,312 shares of common stock, and Series A Preferred Stock convertible into 2,234,673 shares of common stock.

Going concern

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company has experienced net losses and negative cash flows from operations since its inception.  The Company has sustained cumulative losses attributable to common stockholders of $27,678,443 as of June 30, 2014.  The Company has historically financed its operations through issuances of equity and the proceeds of debt instruments. In the past, the Company has also provided for its cash needs by issuing common stock, options and warrants for certain operating costs, including consulting and professional fees.   During the six months ended June 30, 2014, the Company raised $203,055 in cash, net of offering costs, through the private placement of common stock and warrants (see Note 3).   In addition, during the six months ended June 30, 2014, various warrant holders exercised rights to purchase 180,750 shares of the Company’s common stock, with an average exercise price of $0.50 per share, pursuant to a cash exercise whereby the Company received cash proceeds of $90,375.  In addition, during the six months ended June 30, 2014, the Company received gross proceeds of $568,852 from the sale of freely tradable securities received as consideration in the Company’s 2013 private placement of its Series B Preferred Stock.  During the year ended December 31, 2013, the Company raised $1,370,190 in cash and converted notes and freely tradable securities valued at $3,495,384 (based upon the closing price of such securities on the day prior to closing), net of offering costs, through the through the private placements of common stock, Series B Preferred Stock and warrants .  As of December 31, 2013, the Company received gross proceeds of $1.8 million from the sale of a portion of such freely tradable securities received as consideration in the Company’s 2013 private placement of its Series B Preferred Stock.

The Company continues to actively pursue various funding options, including equity offerings, to obtain additional funds to continue the development of its products and bring them to commercial markets. Management continues to assess fund raising opportunities to ensure minimal dilution to its existing shareholder base and to obtain the best price for its securities (see Note 8). Management is optimistic based upon its ability to raise funds in prior years, through private placement offerings (see description of private placement offerings in Note 2), that it will be able to raise additional funds in the future.  If the Company is unable to raise additional capital as may be needed to meet its projections for operating expenses, it could have a material adverse effect on liquidity or require the Company to cease or significantly delay some of its clinical trials.  These financial statements do not include any adjustments relating to the recoverability of recorded asset amounts that might be necessary as a result of the above uncertainty.

2013_PRIVATE_PLACEMENT_Common_

2013 PRIVATE PLACEMENT - Common Stock	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
2013 PRIVATE PLACEMENT - Common Stock	'
	On December 31, 2013, the Company closed a private placement offering and raised aggregate gross proceeds of $642,500 upon the sale of 1,285,000 shares of common stock (the “2013 Common Stock Offering”).  For each share of common stock purchased at a price per share of $0.50, the investors received a five-year warrant to purchase a share of common stock at an exercise price of $0.83. In January 2014, pursuant to the terms of the 2013 Common Stock Offering, the Company issued an additional 470,000 shares of common stock at a price per share $0.50 and five-year warrants to purchase 470,000 shares of common stock at an exercise price of $0.83 for an aggregate purchase price of $235,000.
	Monarch Capital and Brookline acted as the Company’s placement agents in connection with the 2013 Common Stock Offering. Monarch Capital received a cash fee of $55,400 and five-year warrants to purchase 138,500 shares of common stock at an exercise price of $0.83 per share. Brookline received a cash fee of $14,000 and five-year warrants to purchase 35,000 shares of common stock at an exercise price of $0.83 per share.  The fair value of the placement agent warrants was approximately $51,100 and was recorded as both a debit and credit to additional paid-in capital as a stock issuance cost.
	All warrants issued in the 2013 Common Stock Offering meet the requirements for classification as equity instruments.
	As a result of the issuance of the shares in the 2013 Common Stock Offering, the conversion price of the Company’s outstanding shares of Series A Preferred Stock and Series B Preferred Stock was adjusted to $0.50 per share; provided, however, Platinum Montaur Life Sciences, LLC (“Platinum”) waived its right to (i) adjust the conversion price of the 4,523,076 shares of Series B Preferred Stock and accordingly, such conversion price remained $0.80 per share solely with respect to Platinum, and (ii) adjust the exercise price of 6,020,214 warrants held by it.  During the six months ended June 30, 2014, the conversion price of the Series B Preferred shares and warrants held by Platinum was adjusted to $0.53, see Notes 3 and 4.
	In connection with the 2013 Common Stock Offering, the Company also entered into a registration rights agreement with the investors, in which the Company agreed to file a registration statement with the SEC to register for resale the shares and the shares of common stock issuable upon exercise of the warrants within 30 calendar days of the final closing date, and to have the registration statement declared effective within 90 calendar days of the final closing date or within 150 calendar days of the final closing date in the event of a full review of the registration statement by the SEC. The registration statement was filed and declared effective by the SEC on February 12, 2014.

CAPITAL_STOCK

CAPITAL STOCK	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
CAPITAL STOCK	'
	SERIES A PREFERRED STOCK
	The Company is authorized to issue 100,000,000 shares of preferred stock, $0.001 par value per share, of which 3,500,000 shares have been designated Series A Preferred Stock. At June 30, 2014 and December 31, 2013, 963,048 and 2,350,196 shares of Series A Preferred Stock, respectively, were issued and outstanding.
	The material terms of the Series A Preferred Stock, as specified in the Certificate of Designation for the Series A Preferred Stock, are as follows:
	Conversion
	Each share of Series A Preferred Stock may, at the holder’s option, convert into common stock. The conversion rate is equal to the sum of the stated value of the Series A Preferred Stock, which is $0.83 per share, plus all accrued and unpaid dividends, divided by the conversion price. As a result of the issuance of the Series B Preferred Stock pursuant to the Company’s private placement in 2013, the conversion price of the Series A Preferred Stock was reduced from $0.83 to $0.50. As of June 30, 2014, 1,433,734 shares of Series A Preferred Stock were converted into 2,380,000 shares of the Company’s common stock.  In addition, the Company issued 32,137 shares of the Company’s common stock in satisfaction of $16,068 dividend accrued on the shares Series A Preferred Stock that were converted.
	Subject to the specified provisions, the Series A Preferred Stock will automatically convert into common stock at the conversion price on the mandatory conversion date, which is defined as the first date at least six (6) months after the issuance of the Series A Preferred Stock on which each of the following conditions shall have been satisfied: (i) the Company shall have consummated, a qualified financing for aggregate gross proceeds to the Company of $7,000,000, (ii) the volume weighted average trading price for the Company’s common stock for each day on thirty (30) consecutive trading days immediately preceding such date, must be above $1.50 and the trading volume over that period must exceed 1,500,000 shares, and (iii) as of such date, all shares of common stock issuable upon conversion of the Series A Preferred Stock are registered under the Securities Act of 1933, as amended (the “Act”) pursuant to an effective registration statement or are otherwise eligible for sale under Rule 144 under the Act. As of June 30, 2014, no mandatory conversion has taken place as all of the conditions required for such mandatory conversion have not occurred.
	Dividends
	(a) Cumulative Preferred Dividends.  Each holder of the Series A Preferred Stock shall be entitled to receive cash dividends payable on the stated value of the Series A Preferred Stock at a rate of 10% per annum which shall be cumulative and accrue daily from the original issuance date; provided however, if either (i) the Company shall not have consummated a qualified financing with aggregate gross proceeds to the Company of $7,000,000 on or before June 30, 2012, or (ii) for any reason, any shares of common stock issuable upon conversion of the Series A Preferred Stock are not registered pursuant to an effective registration statement on or before June 30, 2012 or are not otherwise eligible for sale under Rule 144 of the Act, then, effective July 1, 2012, the rate of dividends on the Series A Preferred Stock shall increase to 12% per annum. As of June 30, 2012, both of the above conditions have been met by the Company and accordingly, the rate of dividends on the Series A Preferred Stock remains at 10% per annum.
	(b) Payment of Dividends.  The Company shall be required to pay all accrued and unpaid dividends (whether or not declared) in respect of the Series A Preferred Stock semi-annually on each June 30 and December 31 of each calendar year. All such dividends shall be paid in cash; provided, that, at the option of the Company, the Company may pay any accrued and unpaid dividends on the Series A Preferred Stock in the form of additional shares of Series A Preferred Stock, with each share of Series A Preferred Stock being valued for this purpose at the stated value in effect on the date of payment.
	For the six months ended June 30, 2014, the Company accrued a preferred stock dividend of $54,734.  The Company issued 46,586 shares of Series A Preferred Stock in payment of such dividends as related to the Series A Preferred Stock outstanding at June 30, 2014.  In addition, during the six months ended June 30, 2014, the Company issued 32,137 shares of Common Stock in payment of such dividend as related to the shares of Series A Preferred stock converted into Common Stock. For the six months ended June 30, 2013, the Company accrued a preferred stock dividend of $89,721 and issued 108,099 shares of Series A Preferred Stock in satisfaction of such accrued dividends.
	Liquidation preference
	In the event of liquidation, dissolution or winding up of the business of the Company, whether voluntary or involuntary, each holder of Series A Preferred Stock shall be entitled to receive, for each share thereof, out of assets of the Company legally available therefor, a preferential amount in cash, per share of Series A Preferred Stock, equal to (and not more than) the sum of the (x) stated value, plus (y) all accrued and unpaid dividends thereon. All preferential amounts to be paid to the holders of Series A Preferred Stock in connection with such liquidation, dissolution or winding up shall be paid before the payment or setting apart for payment of any amount for, or the distribution of any assets of the Company to the holders of the Company's common stock. If upon any such distribution the assets of the Company shall be insufficient to pay the holders of the outstanding shares of Series A Preferred Stock the full amounts to which they shall be entitled, such holders shall share ratably in any distribution of assets in accordance with the sums which would be payable on such distribution if all sums payable thereon were paid in full.
	Voting
	The holders of the Series A Preferred Stock have the right to one vote for each share of common stock into which such Series A Preferred Stock could then convert.
	SERIES B PREFERRED STOCK
	The Company is authorized to issue 100,000,000 shares of preferred stock, $0.001 par value per share, of which 12,000,000 shares have been designated Series B Preferred Stock. At June 30, 2014 and December 31, 2013, 5,694,571 and 5,725,821 shares of Series B Preferred Stock were issued and outstanding, respectively.
	The material terms of the Series B Preferred Stock, as specified in the Certificate of Designation for the Series B Preferred Stock, are as follows:
	Ranking
	The Series B Preferred Stock will rank junior to the Company’s Series A Preferred Stock and senior to the Company’s common stock with respect to distributions of assets upon the liquidation, dissolution or winding up of the Company.
	Stated Value
	Each share of Series B Preferred Stock will have a stated value of $0.80, subject to adjustment for stock splits, combinations and similar events.
	Dividends
	Cumulative dividends on the Series B Preferred Stock accrue at the rate of 10% of the stated value per annum, compounded annually, from and after the date of the initial issuance through the third anniversary of the issuance date; provided, however, that any holder of at least 4,500,000 shares of Series B Preferred Stock after the issuance date and prior to October 1, 2013 (a “Major Holder”) will be entitled to accrued dividends through the fourth anniversary of the issuance date (as applicable, the “Accrual Period”). Accrued dividends are payable upon the earliest to occur of (i) the third anniversary of the issuance date (or, with respect to the Major Holder, the fourth anniversary of the issuance date), (ii) mandatory conversion (as described below) and (iii) an automatic conversion upon a fundamental transaction (as such term is defined in the Certificate of Designation) or triggering event (as described below). Dividends are payable in Series B Preferred Stock valued at the stated value, or in cash upon the mutual agreement of the Company and the holder.
	For the six months ended June 30, 2014, the Company accrued a Series B Preferred Stock dividend of $225,219   The Series B Preferred Stock was not issued and outstanding as of June 30, 2013.
	Liquidation Preference
	If the Company voluntarily or involuntarily liquidates, dissolves or winds up its affairs, each holder of the Series B Preferred Stock will be entitled to receive out of the Company’s assets available for distribution to stockholders, after satisfaction of liabilities to creditors, if any, and payments due to holders of the Series A Preferred Stock but before any distribution of assets is made on the Company’s common stock or any of our other shares of stock ranking junior as to such a distribution to the Series B Preferred Stock, a liquidating distribution in the amount in the amount of the stated value of all such holder’s Series B Preferred Stock plus all accrued and unpaid dividends thereon.
	Voluntary Conversion
	Each share of Series B Preferred Stock will be convertible at the holder’s option into the Company’s common stock in an amount equal to the stated value plus accrued and unpaid dividends thereon through the conversion date divided by the then applicable conversion price. The initial conversion price is $0.80 per share and is subject to customary adjustments for issuances of shares of common stock as a dividend or distribution on shares of the common stock, or mergers or reorganizations, as well as “full-ratchet” anti-dilution adjustments for future issuances of other Company securities.  As a result of the issuance of common stock pursuant to the 2013 Common Stock Offering, the conversion price of the Series B Preferred Stock was reduced from $0.80 to $0.50, provided, however, Platinum waived its right to adjust the conversion price of the 4,523,076 shares of Series B Preferred Stock held by it and accordingly, such conversion price remained $0.80 per share solely with respect to Platinum until the issuance of common stock to consultants in April with a fair value of $0.53 per share. During the six months ended June 30, 2014, 31,250 shares of Series B Preferred Stock were converted into 50,000 shares of the Company’s common stock.
	Holders also have the option to convert their Series B Preferred Stock upon the occurrence of a fundamental transaction or one of the following triggering events: Johan (Thijs) Spoor ceases to be the chief executive officer of the Company; or there is a change in three of the five current members of the Company’s board of directors, such conversion will be on the same terms as a mandatory conversion.
	Mandatory Conversion
	The Series B Preferred Stock is subject to mandatory conversion at such time as the volume weighted average price of the Company’s common stock is at least $1.20 (subject to adjustments for stock splits and similar events) provided, that, on the mandatory conversion date, (A) a registration statement providing for the resale of the shares underlying the Series B Preferred Stock is effective, or such shares may be offered for sale to the public without limitations pursuant to Rule 144 (B) trading in the common stock shall not have been suspended by the SEC or exchange or market on which the common stock is trading), (C) the daily volume of the common stock is at least 50,000 shares per day for the applicable ten (10) consecutive trading days, and (D) the Company is in material compliance with the terms and conditions of the transaction documents. In the event of mandatory conversion, each share of Series B Preferred Stock will convert into the number of shares of common stock equal to the stated value plus accrued and unpaid dividends for the Accrual Period divided by the conversion price.
	Voting Rights
	The holders of the Series B Preferred Stock will be entitled to vote upon all matters upon which holders of common stock have the right to vote, such votes to be counted together with all other shares of capital stock having general voting powers and not separately as a class. The holders of the Series B Preferred Stock will be entitled to the number of votes equal to the number of common stock into which the Series B Preferred Stock are then convertible.
	In addition, as long as at least 25% of the Series B Preferred Stock remains outstanding, the Company will not, without the affirmative vote or consent of the holders of at least a majority of the outstanding Series B Preferred Stock, voting as a separate class, (i) amend, waive or repeal (including through a merger, consolidation or similar event) any provision of the Company’s articles of incorporation or by-laws in any manner that adversely affects the rights of the holders of the Series B Preferred Stock; (ii) alter or change adversely the preferences, rights, privileges, or restrictions of the Series B Preferred Stock; (iii) authorize or create any class or series of stock having rights, preferences or privileges in any respect senior to the Series B Preferred Stock; or (iv) reclassify, alter or amend any existing class or series of stock, if such reclassification, alteration or amendment would render such other class or series of stock as having rights, preferences or privileges in any respect senior to the Series B Preferred Stock.
	COMMON STOCK
	The Company has authorized 100,000,000 shares of its common stock, $0.001 par value per share. At June 30, 2014 and December 31, 2013, the Company had issued and outstanding 29,095,295 and 25,675,013, shares of its common stock, respectively.
	During the year ended December 31, 2013, the Company issued 60,000 shares of common stock for services performed pursuant to a consulting agreement. The total fair value of these shares, $45,550, is included in operating expenses. In addition, on December 31, 2013, the Company issued 1,285,000 shares of common stock, valued at $0.50 per share, in connection with the 2013 Common Stock Offering.
	In January 2014, the Company issued 470,000 shares of common stock, valued at $0.50 per share, in connection with the 2013 Common Stock Offering (see Note 2).
	During the period ended June 30, 2014, the Company issued 304,888 shares of common stock for services performed pursuant to a consulting agreement. The total fair value of these shares, $178,160, is included in operating expenses. As a result of issuing these shares, the conversion price of the remaining Series B Preferred Stock, not previously adjusted to $0.50, (including Platinum) was reduced from $0.80 to $0.53.

STOCK_PURCHASE_WARRANTS

STOCK PURCHASE WARRANTS	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
STOCK PURCHASE WARRANTS	'
	During the six months ended June 30, 2014, the Company issued 470,000 common stock warrants to investors and 45,000 common stock warrants to the placement agents in connection with the additional closings related to the 2013 Common Stock Offering.
	In addition, during the six months ended June 30, 2014, the Company exchanged 546,470 common stock warrants for an equal number of warrants with the same terms as the warrants issued in the 2013 sale of Series B preferred stock. As a result of this exchange and because such new warrants are derivative instruments, the Company increased its derivative warrant liability by approximately $115,000, the fair value of the warrants on the date of the modification. In addition, in conjunction with the exchange, the Company recognized a one-time expense of approximately $82,000 representing the incremental fair value resulting from the modification, which is included in the accompanying statements of operations.
	During the six months ended June 30, 2014, various warrant holders exercised rights to purchase 180,750 shares of the Company’s common stock, with an average exercise price of $0.50 per share, pursuant to a cash exercise whereby the Company received cash proceeds of $90,375.
	During the year ended December 31, 2013, the Company issued 7,621,070 common stock warrants to investors and 82,772 common stock warrants to the placement agents in connection with the sale of Series B preferred stock. These warrants are recorded as derivative warrant liability.  In addition, the Company issued 1,285,000 common stock warrants to investors and 128,500 common stock warrants to placement agents in connection with 2013 Common Stock Offering.
	As a result of the issuance of common stock pursuant to the 2013 Common Stock Offering, the exercise price of the warrants issued in connection with sale of Series B preferred stock was reduced from $0.83 to $0.50, provided, however, Platinum waived its right to adjust the exercise price of the 6,020,214 warrants held by it and accordingly, such exercise price remained $0.83 per share, as of December 31, 2013, solely with respect to Platinum.  During the six months ended June 30, 2014, the Company issued common stock for services performed pursuant to a service agreement.  The shares of common stock were issued at the market value of $0.53 per share.  As a result of this issuance, the exercise price of the remaining warrants issued in connection with the Series B preferred stock, including the warrants issued to Platinum, was reduced to $0.53.
	In addition, during the year ended December 31, 2013, the Company exchanged 426,096 common stock warrants for an equal number of warrants with the same terms as the warrants issued in the Series B Offering. As a result of this exchange and because such warrants are derivative instruments, the Company increased its derivative warrant liability by approximately $114,000, the fair value of the warrants on the date of the modification.  In addition, in conjunction with the exchange, the Company recognized a one-time expense of approximately $30,000 representing the incremental fair value resulting from the modification.
	The following is a summary of all common stock warrant activity:
			Number of Shares				Exercise			Weighted
			Under Warrants				Price			Average Exercise Price
							Per Share
	Warrants issued and exercisable at December 31, 2013			14,616,535			$	0.50 - 1.33		$	0.9
	Warrants Granted			1,061,470			$	0.83		$	0.83
	Warrants Expired/Forfeited/Exchanged			(643,220	)		$	0.50 - 1.33		$	0.87
	Warrants Exercised			(180,750	)		$	0.50		$	0.50
	Warrants issued and exercisable at June 30, 2014			14,854,035			$	0.50 - 1.33		$	0.76
	The following represents additional information related to common stock warrants outstanding and exercisable at June 30, 2014:
	Exercise Price				Number of Shares Under Warrants				Weighted Average Remaining Contract Life in Years			Weighted Average Exercise Price
	$	0.5				2,109,724				4.26		$	0.5
	$	0.53				6,566,684				4.26		$	0.53
	Total warrants accounted for as derivative liability					8,676,408				4.26		$	0.52
	$	0.83				2,379,046				3.92		$	0.83
	$	0.84				20,000				2.09		$	0.84
	$	0.85				281,912				3.07		$	0.85
	$	0.95				20,000				2.26		$	0.95
	$	1				165,417				4.85		$	1
	$	1.33				3,311,252				1.01		$	1.33
	Total warrants accounted for as equity					6,177,627				2.33		$	1.1
	Total for all warrants outstanding					14,854,035				3.46		$	0.76
	The Company used the Black-Scholes option price calculation to value the warrants granted during the six months ended June 30, 2014 using the following assumptions: risk-free rate of 1.62%, respectively, volatility of 60.13%, actual term and exercise price of warrants granted.   For warrants granted that are accounted for as a derivative liability, the Company used a Binomial Options Pricing model.  The primary assumptions used to determine the fair values of these warrants were: risk free interest rate with a range from 1.59 % - 3.40%, volatility of 60.13%, actual term and exercise price of the warrants granted.

COMMON_STOCK_OPTIONS

COMMON STOCK OPTIONS	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
COMMON STOCK OPTIONS	'
	On February 11, 2011, the Company adopted its 2011 Equity Incentive Plan (the “Plan”) under which 6,475,750 shares of common stock were reserved for issuance under options or other equity interests as set forth in the Plan. Under the Plan, options are available for issuance to employees, officers, directors, consultants and advisors. The Plan provides that the board of directors will determine the exercise price and vesting terms of each option on the date of grant. Options granted under the Plan generally expire ten years from the date of grant.
	Under the Plan, the Company has issued 161,250 shares of fully paid and non-assessable restricted common stock to a director of the Company. These shares of restricted stock are subject to the terms of the Plan and are unvested and outstanding as of December 31, 2013. The shares shall vest upon the earlier of (i) the occurrence of a Change of Control, as defined in the Plan, (ii) the successful completion of a Phase II clinical trial for any of the Company’s products, or (iii) the determination by the board of directors to provide for immediate vesting. The weighted average grant-date fair value is $1.07 per share.
	The following is a summary of all common stock option activity for the six months ended June 30, 2014:
		Shares Under			Weighted Average
		Options Outstanding			Exercise Price
	Outstanding at December 31, 2013		4,536,928		$	0.68
	Options granted		220,000		$	0.51
	Options forfeited		(112,500	)	$	0.50
	Options exercised		-		$	-
	Outstanding at June 30, 2014		4,644,428		$	0.68
		Options Exercisable			Weighted Average Exercise
					Price per Share
	Exercisable at December 31, 2013		2,786,928		$	0.69
	Exercisable at June 30, 2014		3,046,094		$	0.68
	The weighted average fair value of options granted during the six months ended June 30, 2014 was $0.30.
	At June 30, 2014, the weighted average remaining contractual term for exercisable and outstanding options is 5.67 and 6.38 years, respectively.  At June 30, 2014, the aggregate intrinsic value of all of the Company’s exercisable and outstanding options is $476,700 and $622,100, respectively.
	Employee stock-based compensation expense for the six months ended June 30, 2014 and 2013 is $232,872 and $264,715, respectively
	To compute compensation expense, the Company estimated the fair value of each option award on the date of grant using the Black-Scholes option pricing model for employees, and calculated the fair value of each option award at the end of the period for non-employees.  The Company based the expected volatility assumption on a volatility index of peer companies as the Company did not have sufficient historical market information to estimate the volatility of its own stock.  The expected term of options granted represents the period of time that options are expected to be outstanding.  The Company estimated the expected term of stock options by using the simplified method. The expected forfeiture rates are based on the historical employee forfeiture experiences.  To determine the risk-free interest rate, the Company utilized the U.S. Treasury yield curve in effect at the time of grant with a term consistent with the expected term of the Company’s awards.  The Company has not declared a dividend on its common stock since its inception and has no intentions of declaring a dividend in the foreseeable future and therefore used a dividend yield of zero.
	The fair value of each share-based payment is estimated on the measurement date using the Black-Scholes model with the following assumptions as of June 30, 2014 and 2013, respectively: risk-free rate of 3.40% and 2.61%, respectively, volatility of 60.13% and 62.20%, respectively, expected term of 5.5 years and 6 years, respectively.  There was no dividend yield included in the calculations.
	As of June 30, 2014, there was $359,064 of unrecognized compensation cost related to non-vested options. The unrecognized compensation expense is estimated to be recognized over a period of 1.02 years at June 30, 2014.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
COMMITMENTS AND CONTINGENCIES	'
	License Agreements
	On June 26, 2014, the Company and The General Hospital Corporation, d/b/a Massachusetts General Hospital (“MGH”) entered into two license agreements (the “Agreements”), which Agreements replace the single license agreement between the Company and MGH dated April 27, 2009, as amended by letter dated June 21, 2011 and agreement dated October 31, 2011 (the “Original Agreement”). The Agreements provide exclusive licenses for the Company’s two lead product candidates, BFPET and CardioPET, two of the three cardiac imaging technologies covered by the Original Agreement. The Company and MGH are in discussions regarding the exclusive license to VasoPET, the third product candidate covered by the Original Agreement, the Company’s rights to which ceased upon the termination of the Original Agreement contemporaneously with the execution of the new Agreements. The Agreements were entered into primarily for the purpose of separating the Company’s rights and obligations with respect to its different product development programs. Each of the Agreements requires the Company to pay MGH an initial license fee of $175,000 and annual license maintenance fees of $125,000 each. The Agreements require the Company to meet certain obligations, including, but not limited to, meeting certain development milestones relating to clinical trials and filings with the United States Food and Drug Administration. MGH has the right to cancel or make non-exclusive certain licenses on certain patents should the Company fail to meet stipulated obligations and milestones. Additionally, upon commercialization, the Company is required to make specified milestone payments and royalties on commercial sales.  The Company is amortizing the cost of these intangible assets over the remaining useful life of the Agreements of 10 years.
	The Company is current with all stipulated obligations and milestones under the Agreements and the Agreements remain in full force and effect. The Company believes that it maintains a good relationship with MGH and will be able to obtain waivers or extension of its obligations under the Agreement, should the need arise. If MGH were to refuse to provide the Company with a waiver or extension of any of its obligations or were to cancel or make the license non-exclusive, this would have a material adverse impact on the Company as it may be unable to commercialize products without exclusivity and would lose its competitive edge for portions of the patent portfolio.
	As of June 1, 2014, the Company has relinquished its Alzheimer’s license and accordingly has recorded a loss on disposal of $16,591 in the period ended June 30, 2014.
	Clinical Research Services Agreements
	On September 7, 2012, the Company entered into a Clinical Research Services Agreement (“CRS Agreement”) with SGS Life Science Services (“SGS”), a company with its registered offices in Belgium, for clinical research services relating to the Company’s CardioPET Phase II study to assess myocardial perfusion and fatty acid uptake in coronary artery disease (CAD) patients. The phase II trial will be an open label trial designed to assess the safety and diagnostic performance of CardioPET as compared to stress echocardiography, myocardial perfusion imaging and angiography as a gold standard of background disease. Two trial sites are planned in Belgium and are expected to be concluded in the second half of 2014.
	In March 2012, the Company had signed a Letter of Intent (“LOI”) that provided for the pre-payment of $290,271 for start-up services.  The CRS Agreement provides for additional payments of $346,234 to SGS subject to a schedule of milestones relating to the progress of the clinical trial. Immediately before entry into the LOI, the Company engaged FGK Representative Service GmbH to serve as the Company’s sponsor in compliance with the laws governing clinical trials conducted in the European Union.  On February 28, 2013, the Company announced that the Phase II trial had begun and released the initial data and images from the trial. On February 6, 2014, the Company presented interim data from the trial at the SNMMI mid-winter meeting.
	On May 23, 2014, the Company entered into a Master Services Agreement with PPD Development, LP, a clinical research organization engaged in the business of managing clinical research programs and providing clinical development and other related services, for the clinical research services relating to the Company’s BFPET Phase II study.  The Phase II trial will be an open label trial designed to assess the safety and diagnostic performance of BFPET.  Multiple trial sites are planned in various locations in the United States.  The trial is expected to be initiated in the second half of 2014.
	Executive Employment Contracts
	The Company maintains employment contracts with key Company executives that provide for the continuation of salary and the grant of certain options to the executives if terminated for reasons other than cause, as defined within the agreements. One contract also provides for a $1 million bonus should the Company execute transactions as specified in the contract, including the sale of substantially all of the Company’s assets or stock or a merger transaction, any of which resulting in compensation to the Company’s stockholders aggregating in excess of $50 million for such transaction.
	Operating Lease Commitment
	In July 2011, the Company entered into a three-year lease for office space, which commenced May 1, 2012 and expires on April 30, 2015. The annual minimum lease payments over this three-year period for this office space are $45,600 per year plus common area costs. In conjunction with this agreement, the Company paid $5,700 as a security deposit and an additional $25,171 for leasehold improvements. The future minimum lease payments through April 30, 2015 are as follows:
	Year ending December 31, 2014	$	45,600
	2015		15,200
		$	60,800
	Rent expense, net of sublease income, was $25,617 and $15,670 for the six months ended June 30, 2014 and 2013, respectively.
	Legal Contingencies
	On July 16, 2013, Todd Nelson, as plaintiff, served Fluoropharma Medical, Inc. with process in the matter captioned, Todd Nelson v. Fluoropharma Medical, Inc.; and Does 1 through 10, No. 13 CV 01152 JAD CWH, which is pending before the United States District Court for the District of Nevada. In this action, the plaintiff alleged that he suffered damages attributable to the Company’s refusal to honor certain stock options after February 28, 2012. Plaintiff seeks at least $325,200 in damages, as well as punitive and exemplary damages, prejudgment interest, and costs.  The parties are presently engaged in discovery. Management believes that it has meritorious defenses in all such matters, and accordingly, no accrual has been recorded for these matters as of June 30, 2014.
	The Company is not aware of any other material, active, pending or threatened proceeding, nor is the Company, or any subsidiary, involved as a plaintiff or defendant in any other material proceeding or pending litigation.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
SUBSEQUENT EVENTS	'
	The Company evaluated events occurring subsequent to June 30, 2014, identifying those that are required to be disclosed as follows:
	On July 22, 2014, the Company issued promissory notes (the “Notes”) pursuant to a Note Purchase Agreement entered into with certain accredited investors for an aggregate principal amount of approximately $1,200,000. The Notes mature one year from the date of issuance and bear interest at the rate of 8% per annum. All principal and accrued interest under the Notes will automatically convert into the Company’s next equity or equity-linked financing in accordance with the following formula: (the Outstanding Balance as of the closing of the Subsequent Financing) x (1.15) / (the per security price of the securities sold in the Subsequent Financing). In addition, upon the closing of a Subsequent Financing, each of the investors shall be issued, in addition to any warrants issued in connection with a Subsequent Financing, an additional warrant, to purchase a number of shares of common stock equal to fifty percent (50%) of the number of shares of common stock purchased by such investor in the Subsequent Financing assuming a per share purchase price of the securities to be issued in the Subsequent Financing.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2014
Summary Of Significant Accounting Policies Tables	'
Fair value of financial instruments	'
	Assets and liabilities measured at fair value on a recurring basis at June 30, 2014 are summarized below:
		30-Jun-14
		Level 1			Level 2			Level 3			Fair Value
	Current Liabilities:
	Derivative warrant liability		$	-		$	-		$	3,289,284		$	3,289,284
	Assets and liabilities measured at fair value on a recurring basis at December 31, 2013 are summarized below:
			31-Dec-13
			Level 1			Level 2			Level 3			Fair Value
	Current Assets:
	Trading securities		$	634,826		$	-		$	-		$	634,826
	Current Liabilities:
	Derivative warrant liability		$	-		$	-		$	2,549,196		$	2,549,196
Fair value of Level 3 financial instruments	'
	The following table sets forth the changes in the estimated fair value during 2014 for our Level 3 classified derivative warrant liability:
			Six Months Ended
			30-Jun-14
	Fair value at beginning of period		$	2,549,196
	Modification and reclassification of outstanding warrants			114,923
	Change in fair value			625,165
	Fair value at end of period		$	3,289,284

STOCK_PURCHASE_WARRANTS_Tables

STOCK PURCHASE WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2014
Stock Purchase Warrants Tables	'
Common stock warrant activity	'
			Number of Shares				Exercise			Weighted
			Under Warrants				Price			Average Exercise Price
							Per Share
	Warrants issued and exercisable at December 31, 2013			14,616,535			$	0.50 - 1.33		$	0.9
	Warrants Granted			1,061,470			$	0.83		$	0.83
	Warrants Expired/Forfeited/Exchanged			(643,220	)		$	0.50 - 1.33		$	0.87
	Warrants Exercised			(180,750	)		$	0.50		$	0.50
	Warrants issued and exercisable at June 30, 2014			14,854,035			$	0.50 - 1.33		$	0.76
Common stock warrants outstanding and exercisable	'
	Exercise Price				Number of Shares Under Warrants				Weighted Average Remaining Contract Life in Years			Weighted Average Exercise Price
	$	0.5				2,109,724				4.26		$	0.5
	$	0.53				6,566,684				4.26		$	0.53
	Total warrants accounted for as derivative liability					8,676,408				4.26		$	0.52
	$	0.83				2,379,046				3.92		$	0.83
	$	0.84				20,000				2.09		$	0.84
	$	0.85				281,912				3.07		$	0.85
	$	0.95				20,000				2.26		$	0.95
	$	1				165,417				4.85		$	1
	$	1.33				3,311,252				1.01		$	1.33
	Total warrants accounted for as equity					6,177,627				2.33		$	1.1
	Total for all warrants outstanding					14,854,035				3.46		$	0.76

COMMON_STOCK_OPTIONS_Tables

COMMON STOCK OPTIONS (Tables)	6 Months Ended
	Jun. 30, 2014
Common Stock Options Tables	'
Common stock options outstanding and exercisable	'
		Shares Under			Weighted Average
		Options Outstanding			Exercise Price
	Outstanding at December 31, 2013		4,536,928		$	0.68
	Options granted		220,000		$	0.51
	Options forfeited		(112,500	)	$	0.50
	Options exercised		-		$	-
	Outstanding at June 30, 2014		4,644,428		$	0.68
		Options Exercisable			Weighted Average Exercise
					Price per Share
	Exercisable at December 31, 2013		2,786,928		$	0.69
	Exercisable at June 30, 2014		3,046,094		$	0.68

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jun. 30, 2014
Commitments And Contingencies Tables	'
COMMITMENTS AND CONTINGENCIES	'
	Year ending December 31, 2014	$	45,600
	2015		15,200
		$	60,800

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Trading securities	'	$634,826
Derivative warrant liability	3,298,284	2,549,196
Fair Value, Inputs, Level 1 [Member]	'	'
Trading securities	'	634,826
Derivative warrant liability	'	'
Fair Value, Inputs, Level 2 [Member]	'	'
Trading securities	'	'
Derivative warrant liability	'	'
Fair Value, Inputs, Level 3 [Member]	'	'
Trading securities	'	'
Derivative warrant liability	$3,289,284	$2,549,196

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details1) (Fair Value, Inputs, Level 3 [Member], USD $)	6 Months Ended
	Jun. 30, 2014
Fair Value, Inputs, Level 3 [Member]	'
Fair value at beginning of period	$2,549,196
Issuance of derivative warrant liability	114,923
Change in fair value	625,165
Fair value at end of period	$3,289,284

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Intangible assets, useful life	'	'	'15 years	'	'
Employee stock-based compensation expense	'	'	$232,872	$264,715	'
Outstanding options exercisable	3,046,094	'	3,046,094	'	2,786,928
Cumulative losses	-2,031,487	-1,146,524	-3,503,821	-2,178,687	128,245
Capital raised through private placement, net of costs	'	'	203,055	'	1,370,190
Value of freely tradable securities	'	'	'	'	3,495,384
Unrealized loss relate to trading securities	-94,404	'	-236,143	'	'
Gross proceeds from sale of freely tradable securities	'	'	568,852	'	1,800,000
Cash proceeds from sale of investments	'	'	568,852	'	'
Realized losses	'	'	302,116	'	'
Cash proceeds from exercise of warrants	'	'	$90,375	'	'
Common Stock	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Outstanding options exercisable	4,644,428	4,550,428	4,644,428	4,550,428	'
Warrant [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Outstanding options exercisable	14,854,035	7,318,312	14,854,035	7,318,312	'
Preferred Stock	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Outstanding options exercisable	1,598,660	2,234,973	1,598,660	2,234,973	'
Preferred B [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Outstanding options exercisable	9,364,158	'	9,364,158	'	'
Computers [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property and equipment, estimated useful lives	'	'	'Three to five years	'	'
Machinery and equipment [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property and equipment, estimated useful lives	'	'	'Three to five years	'	'
Leasehold improvements [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property and equipment, estimated useful lives	'	'	'Three to five years	'	'
Office equipment [Member]	'	'	'	'	'
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property and equipment, estimated useful lives	'	'	'Three to five years	'	'

2013_PRIVATE_PLACEMENT_Details

2013 PRIVATE PLACEMENT (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014
Notes to Financial Statements	'
Gross proceeds	$642,500
Warrant price per share	$0.83
2013 Common Stock Offering	1,285,000
Cash payments	55,400
Cash fees, Brookline	14,000
Equity securities	138,500
Equity securities, Brookline	35,000
Fair value of equity securities	51,100
Series B shares held by Platinum	4,523,076
Warrants held by Platinum	6,020,214
Placement agent warrants	470,000
Placement agent warrants, price per share	$0.50
Fair value of placement agent warrants	$235,000
Conversion price of Series B Preferred held by Platinum	$0.53

CAPITAL_STOCK_Details_Narrativ

CAPITAL STOCK (Details Narrative) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Preferred stock, authorized	100,000,000	'	100,000,000
Preferred stock Series A,designated	3,500,000	'	3,500,000
Preferred stock Series A, par value	$0.00	'	$0.00
Preferred stock Series A, Issued	963,048	'	2,350,196
Preferred stock Series A, Outstanding	963,048	'	2,350,196
Preferred stock Series B, par value	$0.00	'	$0.00
Preferred stock Series B, designated	12,000,000	'	12,000,000
Preferred stock Series B, shares issued	5,694,571	'	5,725,821
Accrued preferred stock dividend	'	$89,721	'
Preferred Stock issued during year	1,433,734	108,099	'
Series A Preferred converted to Common Stock	2,380,000	'	'
Series B Preferred converted to Common Stock	50,000	'	'
Common stock, par value	$0.00	'	$0.00
Common stock, Authorized	100,000,000	'	100,000,000
Common stock, shares issued	29,095,295	'	25,675,013
Common stock, outstanding	29,095,295	'	25,675,013
Common Stock issued for services performed pursuant to a consulting agreement	304,888	'	60,000
Fair Value of shares issued for services	178,160	'	45,550
2013 Common Stock Offering shares issued	'	'	1,285,000
Price per share of shares issued in connection with 2013 Common Stock Offering	'	'	$0.50
Stock issued in satisfaction of dividend	32,137	'	'
Series A Preferred dividend accrued	16,068	'	'
Preferred Stock	'	'	'
Accrued preferred stock dividend	54,734	'	'
Stated Value	$0.80	'	'
Stock issued in satisfaction of dividend	46,586	'	'
Preferred B [Member]	'	'	'
Accrued preferred stock dividend	$225,219	'	'
Fair value	$0.53	'	'

STOCK_PURCHASE_WARRANTS_Detail

STOCK PURCHASE WARRANTS (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Number of Shares Under Warrants	'
Warrants Granted	220,000
Weighted Average Exercise Price	'
Warrants Granted	$0.51
Warrant [Member]	'
Number of Shares Under Warrants	'
Warrants issued and exercisable	14,616,535
Warrants Granted	1,061,470
Warrants Expired	-643,220
Warrants Exercised	-180,750
Warrants issued and exercisable	14,854,035
Exercise Price Share Per Share	'
Warrants Granted	$0.83
Warrants Exercised	$0.50
Weighted Average Exercise Price	'
Warrants issued and exercisable	$0.90
Warrants Granted	$0.83
Warrants Expired	$0.87
Warrants Exercised	$0.50
Warrants issued and exercisable	$0.76
Warrant [Member] | Minimum [Member]	'
Exercise Price Share Per Share	'
Warrants issued and exercisable	$0.50
Warrants Expired	$0.50
Warrants issued and exercisable	$0.50
Warrant [Member] | Maximum [Member]	'
Exercise Price Share Per Share	'
Warrants issued and exercisable	$1.33
Warrants Expired	$1.33
Warrants issued and exercisable	$1.33

STOCK_PURCHASE_WARRANTS_Detail1

STOCK PURCHASE WARRANTS (Details 1) (USD $)	Jun. 30, 2014	Dec. 31, 2013
Stock Purchase Warrants	'	'
Number of Shares	15,131,535	'
Weighted Average Exercise Price	$0.68	$0.68
Warrant [Member] | Warrant 1 [Member]	'	'
Stock Purchase Warrants	'	'
Exercise Price	$0.50	'
Number of Shares	2,109,724	'
Weighted Average Exercise Price	$0.50	'
Warrant [Member] | Warrant 2 [Member]	'	'
Stock Purchase Warrants	'	'
Exercise Price	$0.53	'
Number of Shares	6,566,684	'
Weighted Average Exercise Price	$0.53	'
Warrant [Member] | Warrant 5 [Member]	'	'
Stock Purchase Warrants	'	'
Exercise Price	$0.83	'
Number of Shares	2,379,046	'
Weighted Average Exercise Price	$0.83	'
Warrant [Member] | Warrant 3 [Member]	'	'
Stock Purchase Warrants	'	'
Exercise Price	$0.84	'
Number of Shares	20,000	'
Weighted Average Exercise Price	$0.84	'
Warrant [Member] | Warrant 4 [Member]	'	'
Stock Purchase Warrants	'	'
Exercise Price	$0.85	'
Number of Shares	281,912	'
Weighted Average Exercise Price	$0.85	'
Warrant [Member] | Warrant 6 [Member]	'	'
Stock Purchase Warrants	'	'
Exercise Price	$0.95	'
Number of Shares	20,000	'
Weighted Average Exercise Price	$0.95	'
Warrant [Member] | Warrant 7 [Member]	'	'
Stock Purchase Warrants	'	'
Exercise Price	$1	'
Number of Shares	165,417	'
Weighted Average Exercise Price	$1	'
Warrant [Member] | Warrant 8 [Member]	'	'
Stock Purchase Warrants	'	'
Exercise Price	$1.33	'
Number of Shares	3,311,252	'
Weighted Average Exercise Price	$1.33	'
Derivative Warrant [Member]	'	'
Stock Purchase Warrants	'	'
Number of Shares	8,676,408	'
Weighted Average Exercise Price	$0.52	'

STOCK_PURCHASE_WARRANTS_Detail2

STOCK PURCHASE WARRANTS (Details Narrative) (USD $)	6 Months Ended		12 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Dec. 31, 2013
Common stock options exchanged	546,470	'	426,096
Derivative warrant liability increase	$115,000	'	$114,000
Incremental fair value resulting from modification of derivative warrant liability	82,000	'	30,000
Common stock warrants issued	180,750	'	'
Cash proceeds	$90,375	'	'
Investor [Member]	'	'	'
Common stock warrants issued	'	'	7,621,070
Shares issued in connection with 2013 Common Stock Offering	'	'	1,285,000
Placement Agents [Member]	'	'	'
Common stock warrants issued	'	'	82,772
Shares issued in connection with 2013 Common Stock Offering	45,000	'	128,500

COMMON_STOCK_OPTIONS_Details

COMMON STOCK OPTIONS (Details) (USD $)	6 Months Ended
	Jun. 30, 2014
Summary of all common stock option activity	'
Outstanding shares, beginning of period	4,536,928
Options granted, shares	220,000
Options forfeited, shares	-112,500
Options exercised	'
Outstanding shares	4,644,428
Exercisable shares, beginning of period	2,786,928
Exercisable shares,end of period	3,046,094
Outstanding weighted average exercise price, beginning	$0.68
Options granted, weighted average exercise price	$0.51
Options forfeited, weighted average exercise price	$0.50
Options exercised, weighted average exercise price	'
Outstanding weighted average exercise price, ending	$0.68
Exercisable, weighted average exercise price, Beginning of period	$0.69
Exercisable, weighted average exercise price, End of period	$0.68

COMMON_STOCK_OPTIONS_Details_N

COMMON STOCK OPTIONS (Details Narrative) (USD $)	6 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Notes to Financial Statements	'	'
Equity plan reserved shares	6,475,750	'
Equity plan issued shares	161,250	'
Options granted, weighted average exercise price	$0.51	'
Weighted average fair value of options granted	$0.30	'
Weighted average remaining contract life, exercisable options	'5 years 8 months 1 day	'
Weighted average remaining contract life, outstanding options	'6 years 4 months 17 days	'
Aggregate intrinsic value of options	$622,100	'
Aggregate intrinsic value of options exercisable	476,700	'
Unrecognized compensation cost related to non-vested options	359,064	'
Employee stock-based compensation expense	$232,872	$264,715

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Jun. 30, 2014
Notes to Financial Statements	'
Year ending December 31, 2014	$45,600
2015	15,200
Total future minimum lease payments	$60,800

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	6 Months Ended		127 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014
Commitments and contingencies additional details	'	'	'
Payment of an aggregate compensation to SGS	'	'	$346,234
Amount paid upon execution of the LOI	'	'	290,271
Bonus for key company executive if the Company execute transactions as specified in the contract	1,000,000	'	'
Executive employment contract conditions	'should the Company execute transactions as specified in the contract, including the sale of substantially all of the CompanyBs assets or stock or a merger transaction, any of which resulting in compensation to the CompanyBs stockholders aggregating in excess of $50 million for such transaction	'	'
Lease term for office space	'3 years	'	'
Annual minimum lease payments	45,600	'	45,600
Security deposit for lease	5,700	'	5,700
Leasehold improvements	25,171	'	25,171
Annual license maintenance fee	'	125,000	'
Initial license fee	'	175,000	'
Rent expenses	25,617	15,670	'
Plaintiff amount	325,200	'	'
Loss on disposal	$16,591	'	'

Subsequent_Events_Details_Narr

Subsequent Events (Details Narrative) (USD $)	1 Months Ended
	Aug. 14, 2014
Subsequent Events Details Narrative	'
Note Purchase Agreement principal amount	$1,200,000
Interest rate, NPA	8.00%