CorMedix (CRMD) 10-Q 13 Nov 14 2014 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2014	Nov. 10, 2014
Document And Entity Information	'	'
Entity Registrant Name	'CorMedix Inc.	'
Entity Central Index Key	'0001410098	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-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	'	22,383,101
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2014	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Sep. 30, 2014	Dec. 31, 2013
Current assets	'	'
Cash and cash equivalents	$5,920,020	$2,373,893
Restricted cash	0	220,586
Trade receivables	46,453	2,339
Inventories	677,417	80,021
Prepaid research and development expenses	0	6,205
Other prepaid expenses and current assets	140,928	232,987
Total current assets	6,784,818	2,916,031
Property and equipment, net	46,875	36,061
Deferred financing costs	0	2,366
Security deposit	13,342	13,342
TOTAL ASSETS	6,845,035	2,967,800
Current liabilities	'	'
Accounts payable	740,318	939,785
Accrued expenses	475,003	713,179
Deferred rent	3,105	0
Deferred revenue	8,823	0
Dividend payable	0	21,117
Total current liabilities	1,227,249	1,674,081
Derivative liabilities	0	5,308,804
Deferred rent, long-term	454	7,258
Deferred revenue, long-term	39,706	0
TOTAL LIABILITIES	1,267,409	6,990,143
COMMITMENTS AND CONTINGENCIES	'	'
STOCKHOLDERS' DEFICIT	'	'
Preferred stock - $0.001 par value: 2,000,000 shares authorized; 954,948 and 857,160 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	955	857
Common stock - $0.001 par value: 80,000,000 shares authorized; 22,325,609 and 16,606,695 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively	22,325	16,606
Deferred stock issuances	-146	-146
Accumulated other comprehensive gain (loss)	116,979	-9,323
Additional paid-in capital	79,427,270	51,720,302
Accumulated deficit	-73,989,757	-55,750,639
TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY)	5,577,626	-4,022,343
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICICIENCY)	$6,845,035	$2,967,800

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Statement of Financial Position [Abstract]	'	'
Preferred stock, par value	$0.00	$0.00
Preferred stock, shares authorized	2,000,000	2,000,000
Preferred stock, shares issued	954,948	857,160
Preferred stock, shares outstanding	954,948	857,160
Common stock, par value	$0.00	$0.00
Common stock, shares authorized	80,000,000	80,000,000
Common stock, shares issued	22,325,609	16,606,695
Common stock, shares outstanding	22,325,609	16,606,695

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Operations And Comprehensive Loss (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
REVENUE	'	'	'	'
Net sales	$52,441	$0	$104,373	$0
Cost of sales	-36,675	0	-172,180	0
Gross profit (loss)	15,766	0	-67,807	0
OPERATING EXPENSES	'	'	'	'
Research and development	-292,688	-750,774	-817,635	-1,385,983
Selling, general and administrative	-1,586,614	-504,528	-5,802,364	-1,965,006
Total Operating Expenses	-1,879,302	-1,255,302	-6,619,999	-3,350,989
LOSS FROM OPERATIONS	-1,863,536	-1,255,302	-6,687,806	-3,350,989
OTHER INCOME (EXPENSE)	'	'	'	'
Interest income	645	61	2,153	295
Foreign exchange transaction gain (loss)	-122,645	1,294	-150,803	390
Loss on issuance of preferred stock, convertible notes and warrants	0	-945,892	-89,590	-945,892
Change in fair value of derivative liabilities	-586,440	45,934	-8,848,953	45,934
Loss on modification of equity instruments and extinguishment of derivative liabilities	-2,462,588	-33,626	-2,462,588	-33,626
Interest expense, including amortization and write-off of deferred financing costs and debt discounts	-553	-312,368	-1,531	-1,413,933
Net Loss	-5,035,117	-2,499,899	-18,239,118	-5,697,821
Other Comprehensive Income:	'	'	'	'
Foreign currency translation gain	118,319	0	126,302	0
Comprehensive Loss	-4,916,798	-2,499,899	-18,112,816	-5,697,821
Net loss	-5,035,117	-2,499,899	-18,239,118	-5,697,821
Dividends, including beneficial conversion feature	-27,125	-53,246	-81,727	-363,190
Net Loss Attributable To Common Shareholders	($5,062,242)	($2,553,145)	($18,320,845)	($6,061,011)
Net Loss Per Common Share - Basic and Diluted	($0.23)	($0.18)	($0.87)	($0.46)
Weighted Average Common Shares Outstanding - Basic and Diluted	22,080,673	14,430,374	21,161,532	13,037,814

Condensed_Consolidated_Shareho

Condensed Consolidated Shareholders Equity (Unaudited) (USD $)	Common Stock	Preferred Stock	Deferred Stock Issuances	Accumulated Other Comprehensive Loss	Additional Paid-In Capital	Accumulated Deficit During Development Stage	Total
Beginning balance at Dec. 31, 2013	$16,606	$857	($146)	($9,323)	$51,720,302	($55,750,639)	($4,022,343)
Beginning balance (in shares) at Dec. 31, 2013	16,606,695	857,160	'	'	'	'	'
Series C-3 non-voting preferred stock issued in January 2014 financing at $10 per share, net, Shares	'	200,000	'	'	'	'	'
Series C-3 non-voting preferred stock issued in January 2014 financing at $10 per share, net, Amount	'	200	'	'	'	'	200
Conversion of Series C-1 non-voting preferred stock to common stock, Shares	1,400,000	-140,000	'	'	'	'	'
Conversion of Series C-1 non-voting preferred stock to common stock, Amount	1,400	-140	'	'	2,446,124	'	2,447,384
Stock issued in connection with March 2014 public offering at $2.50 per unit, net, Shares	2,960,000	'	'	'	'	'	'
Stock issued in connection with March 2014 public offering at $2.50 per unit, net, Amount	2,960	'	'	'	4,991,838	'	4,994,798
Reclassification of Series C-2 and C-3 preferred stock conversion option derivative liability to equity, Amount	'	'	'	'	6,235,398	'	6,235,398
Reclassification of derivative liabilities to equity from modification of various equity instruments, shares	'	53,788	'	'	'	'	'
Reclassification of derivative liabilities to equity from modification of various equity instruments, amount	'	54	'	'	11,740,809	'	11,740,863
Stock issued in connection with warrants exercised, Shares	751,689	'	'	'	'	'	'
Stock issued in connection with warrants exercised, Amount	752	'	'	'	-752	'	0
Conversion of Series C-3 non-voting preferred stock to common stock, shares	160,000	-16,000	'	'	'	'	'
Conversion of Series C-3 non-voting preferred stock to common stock, amount	160	-16	'	'	-144	'	0
Stock issued in connection with stock options exercised, Shares	425,000	'	'	'	'	'	'
Stock issued in connection with stock options exercised, Amount	425	'	'	'	309,025	'	309,450
Conversion of wages to common stock, Shares	22,225	'	'	'	'	'	'
Conversion of wages to common stock, Amount	22	'	'	'	42,478	'	42,500
Stock-based compensation	'	'	'	'	1,942,192	'	1,942,192
Other comprehensive income	'	'	'	126,302	'	'	126,302
Net loss	'	'	'	'	'	-18,239,118	-18,239,118
Ending balance at Sep. 30, 2014	$22,325	$955	($146)	$116,979	$79,427,270	($73,989,757)	$5,577,626
Ending balance (in shares) at Sep. 30, 2014	22,325,609	954,948	'	'	'	'	'

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($18,239,118)	($5,697,821)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Stock-based compensation	1,942,192	753,476
Warrants issued in connection with license agreements	0	76,574
Amortization of deferred financing costs	0	269,156
Amortization of debt discount	0	1,050,240
Loss on foreign currency transactions	150,803	0
Loss on issuance of preferred stock, convertible notes and warrants	89,590	945,892
Loss on modification of equity instruments and extinguishment of derivative liabilities	2,462,588	33,626
Revaluation of derivative liabilities	8,848,953	-45,934
Non-cash interest expense	0	28,855
Depreciation	11,467	1,628
Changes in operating assets and liabilities:	'	'
Restricted cash	220,586	-220,500
Trade receivables	-47,353	0
Inventories	-597,396	-270,506
Prepaid expenses and other current assets	95,611	9,310
Accounts payable	-170,898	-121,785
Accrued expenses and accrued interest	441,469	493,102
Accrued interest, related parties	0	3,087
Deferred revenue	48,529	0
Deferred rent	-3,699	-3,695
Net cash used in operating activities	-4,746,676	-2,695,295
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Purchase of equipment	-25,898	0
Net cash used in investing activities	-25,898	0
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Proceeds from Series C-3 preferred stock, net	743,884	0
Proceeds from Series C-3 preferred stock, related party	575,000	0
Proceeds from exercise of warrants	0	60,000
Proceeds from exercise of stock options	309,450	0
Payments for deferred financing costs and private placement expenses	-2,366	-89,624
Proceeds from sale of equity securities	6,723,248	1,033,000
Proceeds from senior convertible notes, net	0	686,250
Proceeds from senior convertible notes, related parties, net	0	686,250
Repurchase of outstanding warrants	0	-33,000
Net cash provided by financing activities	8,349,216	2,342,876
Foreign exchange effect on cash	-30,515	0
NET INCREASE (DECREASE) IN CASH	3,546,127	-352,419
CASH - BEGINNING OF PERIOD	2,373,893	835,471
CASH - END OF PERIOD	5,920,020	483,052
Cash paid for interest	1,531	93,451
Supplemental Disclosure of Non-Cash Financing Activities:	'	'
Conversion of notes payable and accrued interest to common stock, fair value	0	1,416,321
Conversion of preferred stock to common stock	2,447,384	533,000
Conversion of accounts payable and accrued expenses to preferred stock	645,458	0
Reclassification of derivative liabilities to equity	17,955,143	0
Conversion of wages to common stock	42,500	0
Dividends, including beneficial conversion feature	81,727	363,190
Accrued and unpaid deferred financing cost	0	48,534
Accrued private placement expenses	$0	$19,538

1_Organization_Business_and_Ba

1. Organization, Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2014
Organization Business And Basis Of Presentation	'
Organization, Business and Basis of Presentation	'
	Business and Nature of Operations:
	CorMedix Inc. (“CorMedix” or the “Company”) was incorporated in the State of Delaware on July 28, 2006.  The Company in-licenses, develops and commercializes prophylactic and therapeutic products for the prevention and treatment of infectious diseases in cardiac, renal and oncology patients.  The Company formed a wholly-owned subsidiary, CorMedix Europe GmbH, in 2013.  CorMedix’s product Neutrolin® received its CE Mark in Europe in July 2013 and product shipments to dialysis centers began in December 2013.  The Company expects to incur additional expenses as it continues to commercialize Neutrolin in Europe and other foreign markets and seeks U.S. Food and Drug Administration (“FDA”) approval of Neutrolin in the U.S.
	The Company expects to conduct one Phase III clinical trial in hemodialysis catheters and one Phase III clinical trial in oncology/total parenteral nutrition.  A protocol was designed for the planned Phase III trial in hemodialysis patients with a central venous catheter; this protocol was accepted by the FDA in August 2014 and the Company filed an IND in September 2014.  In October 2014, the FDA informed the Company that it had determined that the IND is not subject to a clinical hold, and that the Phase III clinical trial in hemodialysis patients can be initiated in the U.S.
	Basis of Presentation and Liquidity:
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  Accordingly, the unaudited condensed consolidated financial statements do not include all information and footnotes required by U.S. GAAP for complete financial statements.  In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of such interim results.  Interim operating results are not necessarily indicative of results that may be expected for the full year ending December 31, 2014 or for any subsequent period.  These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto of the Company which are included in the Company’s Annual Report on Form 10-K filed on March 31, 2014.  The accompanying condensed balance sheet as of December 31, 2013 has been derived from the audited financial statements included in such Form 10-K.
	To date, the Company has not generated significant revenues.  For the nine months ended September 30, 2014, the Company incurred an operating loss of $6.7 million and a net loss of $18.2 million.  Based on current assumptions about sales of Neutrolin and the development plans for Neutrolin, management believes that the Company’s existing cash will be sufficient to fund its operations through the third quarter of 2015.  However, the Company’s continued operations beyond the third quarter of 2015, including the commencement of its planned Phase III trial for Neutrolin in hemodialysis patients in the U.S., will depend on its ability to generate substantial revenue from the sale of Neutrolin and on its ability to raise additional capital through various potential sources, such as equity and/or debt financings, strategic relationships, or out-licensing of its products.  However, the Company can provide no assurances on future sales of Neutrolin or that financing or strategic relationships will be available on acceptable terms, or at all.  If the Company is unable to raise sufficient capital, find strategic partners or generate substantial revenue from the sale of Neutrolin, there would be a material adverse effect on its business. Further, the Company expects in the future to incur additional expenses as it continues to commercialize Neutrolin in Europe and other foreign markets, protects its intellectual property and seeks FDA approval of Neutrolin in the U.S.
	Basis of Consolidation:
	The consolidated financial statements include the accounts of the Company and CorMedix Europe GmbH, its wholly owned subsidiary.  All significant intercompany accounts and transactions have been eliminated in consolidation.

2_Summary_of_Significant_Accou

2. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Summary of Significant Accounting Policies	'
	Use of Estimates:
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
	Basis of Consolidation:
	The consolidated financial statements include the accounts of the Company and CorMedix Europe GmbH, its wholly owned subsidiary.  All significant intercompany accounts and transactions have been eliminated in consolidation.
	Recently Adopted Accounting Standards:
	In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915) – Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”).  ASU 2014-10 eliminates the concept of a development stage entity in its entirety from current accounting guidance. The new guidance eliminates the requirements for development stage entities to (i) present inception-to-date information in the statement of operations, stockholders’ equity and cash flows, (ii) label the financial statements as those of a development stage entity, (iii) disclose a description of the development stage activities in which the entity is engaged, and (iv) 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.  ASU 2014-10 is effective prospectively for public entities for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods.  However early adoption is permitted.  The Company elected to adopt ASU 2014-10 beginning with the quarter ended June 30, 2014 and, accordingly, has not included the inception-to-date disclosures and other previously required disclosures for development stage entities.
	Recent Authoritative Pronouncements:
	In May 2014, the FASB issued new guidance related to how an entity should recognize revenue. The guidance specifies that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In addition, the guidance expands the required disclosures related to revenue and cash flows from contracts with customers. The guidance is effective for the Company beginning in the first quarter of 2017.  Early adoption is not permitted and retrospective application is required. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial condition, results of operations and cash flows.
	In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.   The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. Earlier adoption is permitted. The standard may be applied prospectively to all awards granted or modified after the effective date; or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter.  The Company is currently evaluating the impact of adopting this guidance on its consolidated financial condition, results of operations and cash flows.
	Cash and Cash Equivalents:
	Cash and cash equivalents include cash accounts and all investments purchased with initial maturities of three months or less.  The Company attempts to mitigate its exposure to liquidity, credit and other relevant risks by placing its cash and cash equivalents with financial institutions it believes are structurally sound.  The Company maintains its cash and cash equivalents in bank deposit and other interest bearing accounts, the balances of which, at times, may exceed federally insured limits.
	Foreign Currency:
	The consolidated financial statements are presented in U.S. Dollars (“USD”), the reporting currency of the Company.  For the financial statements of the Company’s foreign subsidiary, whose functional currency is the Euro, foreign currency asset and liability amounts are translated into USD at end-of-period exchange rates.  Foreign currency income and expenses are translated at average exchange rates in effect during the period.  Translation gains and losses resulting from this process are included in other comprehensive income (loss).  Transaction gains and losses that arise from the exchange rate fluctuations on transactions are included in other income (expense).
	Geographic Information:
	The Company reported revenues for the three-month period ended September 30, 2014 of $52,441 of which $50,970 was attributable to its European operations which are based in Germany and $1,471 was attributable to the amortization of deferred revenue received as a result of distribution agreement with a Korean company (See Deferred Revenue below).  The Company reported revenues for the nine-month period ended September 30, 2014 of $104,373 of which $102,902 was attributable to its European operations and $1,471 was attributable to the amortization of deferred revenue received as a result of distribution agreement with a Korean company.  Of the Company’s total assets of $6.8 million at September 30, 2014, $6 million was located in the U.S., with the remainder located in Germany.
	Restricted Cash:
	Pursuant to a supply agreement, the Company had invested in a twelve-month certificate of deposit held by the bank as collateral for a letter of credit in connection with the Company’s purchase of raw materials due to be delivered in the next twelve months.  The certificate of deposit was recorded on the consolidated balance sheets at December 31, 2013 as restricted cash.  As of September 30, 2014, the transaction which covered the letter of credit was completed, which resulted in the release of the restriction in the cash.
	Prepaid Expenses:
	Prepaid expenses consist of payments made in advance to vendors relating to service contracts for clinical trial development, manufacturing, preclinical development and insurance policies. These advanced payments are amortized to expense either as services are performed or over the relevant service period using the straight-line method.
	Inventories:
	Inventories are valued at the lower of cost or market on a first in, first out basis.  Inventories consist of raw materials (including labeling and packaging), work-in-process, and finished goods, if any, for the Neutrolin product.  Inventories consist of the following:
		30-Sep-14		31-Dec-13
	Raw materials	$	304,282	$	77,103
	Work in process		368,955		-
	Finished goods		4,180		2,918
	Total	$	677,417	$	80,021
	Accrued Expenses:
	Accrued expenses consist of the following:
		30-Sep-14		31-Dec-13
	Licensing fee	$	-	$	500,000
	Royalty fee		30,000		-
	Accrued payroll and related taxes		2,153		197,969
	Professional and consulting fees		382,201		12,000
	Raw material purchases		54,000		-
	Other		6,649		3,210
	Total	$	475,003	$	713,179
	Deferred Revenue:
	In August 2014, the Company entered into an exclusive distribution agreement (the “Agreement”) with Wonik Corporation, a South Korean company, to market, sell and distribute Neutrolin for hemodialysis and oncolytic patients upon receipt of regulatory approval in Korea.  Upon execution of the Agreement, Wonik paid the Company a non-refundable $50,000 payment and will pay an additional $50,000 upon receipt of the product registration necessary to sell Neutrolin in the Republic of Korea (the “Territory”).  The term of the agreement commenced on August 8, 2014 and will continue for three years after the first commercial sale of Neutrolin in the Territory.  The non-refundable up-front payment has been recorded as deferred revenue and will be recognized as revenue on a straight-line basis over the contractual term of the Agreement.
	Revenue Recognition:
	CorMedix recognizes revenue in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 101, Revenue Recognition in Financial Statements (“SAB 101”), as amended by SAB No. 104, Revenue Recognition (“SAB 104”) and FASB Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”).  This guidance requires that revenue is recognized from product sales when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed or determinable, and collectability is reasonably assured.
	CorMedix’s product Neutrolin received its CE Mark in Europe in July 2013 and product shipments to dialysis centers began in December 2013.  Orders are processed through a distributor; however, Neutrolin is drop-shipped via a pharmacy directly to the Company’s customer, the dialysis center. The Company recognizes net sales upon shipment of product to the dialysis centers.
	Income (loss) per common share:
	Basic income (loss) per common share excludes any potential dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings (loss) per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.  However, since their effect is anti-dilutive, the Company has excluded potentially dilutive shares.  The following potentially dilutive shares have been excluded from the calculation of diluted net loss per share as their effect would be anti-dilutive.
		September 30,
		2014		2013
	Convertible notes		-		2,035,628
	Series B non-voting preferred stock		454,546		454,546
	Series C non-voting preferred stock		3,340,000		-
	Series D non-voting preferred stock		1,479,240		-
	Series E non-voting preferred stock		2,021,358		-
	Shares underlying outstanding warrants		11,571,233		8,985,025
	Shares underlying outstanding stock options		3,653,500		3,179,630
	Total		22,519,877		14,654,829
	Stock-Based Compensation:
	The Company measures and recognizes compensation expense for all stock-based payments granted to employees, officers and directors at fair value, net of estimated forfeitures, over the vesting period of the underlying stock-based awards.
	The Company accounts for stock options granted to non-employees on a fair value basis using the Black-Scholes option pricing method.  The non-cash charge to operations for non-employee options with service vesting is based on the revalued amount of the options at the end of each reporting period which is amortized to expense over the related vesting period.  For stock options granted to non-employees with vesting contingent upon various performance metrics, the Company used the guidelines in accordance with FASB ASC No. 505-50, Equity-Based Payments to Non-Employees. For options having performance conditions that are outside of the control of the non-employee, the cost to be recognized is the lowest aggregate fair value prior to the achievement of the performance condition, even if the Company believes it is probable that the performance condition will be achieved.
	Embedded Derivative Liabilities and Warrant Liabilities:
	The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks; however, the Company has several series of preferred stock and warrants that contain embedded derivatives.  The Company evaluates all its financial instruments to determine if those instruments or any potential embedded components of those instruments qualify as derivatives that need to be separately accounted for in accordance with FASB ASC 815, “Derivatives and Hedging”.  Embedded derivatives satisfying certain criteria are recorded at fair value at issuance and marked-to-market at each balance sheet date with the change in the fair value recorded as income or expense.  In addition, upon the occurrence of an event that requires the derivative liability to be reclassified to equity, the derivative liability is revalued to fair value at that date.
	The Company accounts for stock warrants as either equity instruments or derivative liabilities depending on the specific terms of the warrant agreement.  Stock warrants that allow for cash settlement or provide for certain modifications of the warrant exercise price were accounted for as derivative liabilities.  For those liability-classified warrants that have down-round provisions which allow the exercise price to be adjusted as a result of certain future financing transactions, the Company uses level 3 inputs to value those warrants. The estimated fair values of the warrant liabilities with downround protection were determined using a Monte Carlo option pricing model which takes into account the probabilities of certain events occurring over the life of the warrants.  The derivative liabilities were adjusted to their estimated fair values at each reporting period, with any decrease or increase in the estimated fair value being recorded in other income (expense).  The significant inputs and assumptions are as follows:
	Stock price – Due to the historical volatility of the Company's common stock price, a one month volume-weighted average stock price was used as of each valuation date.
	Conversion/redemption strike price – These assumptions incorporate both the initial contractual conversion price as well as subsequent downward adjustments  (wherever applicable) based on management’s estimate of the probabilities of additional future financings that would  include a stock price or conversion price that is lower than the then existing conversion price.
	Volatility – The Company used a weighted average of (i) the historical volatility of the Company’s common stock for approximately five years,  (ii) the volatility used for prior period valuations, and (iii) the volatilities of comparable companies (provided by the Company’s management) from the date product approval is received to the various valuation dates.  Then, appropriate weights were applied to these data points to arrive at the weighted average historical volatility.
	Term – Although the Series C, D and E preferred stocks do not have a specified contracted life, the Company has assumed a five year life from the date of inception for the purpose of the valuations.
Risk-free Rate – The U.S. Treasury Bond Rate with a term approximating the term of the instrument was used as the risk-free interest rate in the valuation.
Credit adjusted discount rate – Management believes that its debt, if rated, would be equivalent to Moody’s C rated bonds or lower.
Dividend rate - Management does not expect to pay any dividends during the term of the hybrid instrument.
As discussed in Note 4, the warrants issued in March 2014, which do not have downround protection, were valued using a Black Scholes option pricing model.

3_Stockholders_Equity

3. Stockholders' Equity	9 Months Ended
	Sep. 30, 2014
STOCKHOLDERS' DEFICIT	'
Stockholders' Equity	'
	Common Stock and Warrants
	In March 2014, the Company sold an aggregate of 2,960,000 units in a registered direct offering at a purchase price of $2.50 per unit.  Each unit consisted of one share of the Company’s common stock and 0.35 of a warrant, each to purchase one share of the Company’s common stock.   Upon issuance, the warrants had an exercise price of $3.10 per share, are exercisable commencing six months from the date of issuance, and have a term of five years from the date of exercisability.  A holder is prohibited from exercising a warrant if, as a result of such exercise, the holder, together with its affiliates, would own more than 3.99% or 4.99%, at the holder’s election, of the total number of shares of the Company’s common stock then issued and outstanding.  The Company received net proceeds of $6,723,248.  Under certain circumstances, the warrants may be settled in cash and were therefore classified as derivative liabilities.  The Company used the Black Scholes option pricing model to value the warrants, of which $1,728,450 was the ascribed value calculated at the issuance date. These warrants were revalued at each balance sheet date and the resulting changes were recorded in other income (expense) in the statement of operations.  On September 15, 2014, the exercise price of these warrants was decreased to $2.50 in exchange for the removal of the cash settlement provisions of the warrant.  The Company revalued the warrants on September 15, 2014 immediately prior to the modification which resulted in a change in fair value recorded in other income (expense) in the statement of operations, and immediately subsequent to the modification which resulted in a loss on modification of equity instruments and extinguishment of derivative liabilities recorded in other income (expense) in the statement of operations. Refer to Note 4 for further details of this transaction. During 2014, the Company used the following assumptions in calculating the Black Scholes values of these warrants:
		At Issuance Date			15-Sep-14
	Expected term (years)		5.5			5
	Volatility		75	%		75	%
	Dividend yield		0	%		0	%
	Risk-free interest rate		1.63	%		1.8	%
	During the nine months ended September 30, 2014, stock options to purchase 425,000 shares of the Company’s common stock were exercised resulting in gross proceeds of $309,450 to the Company.
	During the nine months ended September 30, 2014, an aggregate of 140,000 shares of the Series C-1 non-voting preferred stock were converted into 1,400,000 shares of the Company’s common stock.
	During the nine months ended September 30, 2014, 16,000 shares of the Series C-3 non-voting preferred stock were converted into 160,000 shares of the Company’s common stock.
	During the nine months ended September 30, 2014, warrants to purchase 887,292 shares of the Company’s common stock were exercised on a cashless basis resulting in the issuance of 751,689 shares of the Company’s common stock.
	During the nine months ended September 30, 2014, wages in the amount of $42,500 were converted into 22,225 shares of common stock by an officer at prices of $1.71 - $2.00 per share.
	Preferred Stock and Warrants
	In January 2014, the Company sold to various investors 200,000 shares of Series C-3 preferred stock, together with warrants to purchase up to an aggregate of 1,000,000 shares of common stock, for aggregate gross proceeds of $2,000,000.  The Series C-3 preferred stock and the related warrants were sold together at a price of $10.00 per share for each share of Series C-3 preferred stock.  The Series C-3 preferred stock has rights, privileges and terms that are identical to the Company’s Series C-1 and C-2 non-voting convertible preferred stock.  Each share of Series C-3 preferred stock is convertible into 10 shares of common stock at any time at the holder’s option.  However, the holder is prohibited from converting Series C-3 preferred stock into shares of common stock if, as a result of such conversion, the holder, together with its affiliates, would own more than 9.99% of the total number of shares of the Company’s common stock then issued and outstanding.  The warrants are exercisable one year after issuance, had an exercise price of $1.25 per share (decreased to $0.90 per share in September 2014 – See Note 4), subject to adjustment, and a term of five years from the date they are first exercisable. However, a holder is prohibited from exercising a warrant if, as a result of such exercise, the holder, together with its affiliates, would own more than 4.99% or 9.99%, at the holder’s election, of the total number of shares of the Company’s common stock then issued and outstanding.  Included in this financing was the settlement of an aggregate amount of $645,458 in accruals and payables owed to ND Partners, the Company’s CEO for his 2013 salary, and a consultant.  The Company received net proceeds of $1,318,884.
	Due to the existence of downround provisions, the conversion features of the Series C-3 stock and the associated warrants were classified as derivative liabilities upon issuance and were valued using a Monte Carlo simulation model.  On the issuance date, the estimated value of the conversion features and warrants was $1,398,158 and $655,574, respectively.
	In January 2014, all 140,000 outstanding shares of Series C-1 preferred stock were converted into 1,400,000 shares of the Company’s common stock which resulted in the reclassification of the derivative liability to equity in the amount of $2,447,384.
	In February 2014, the downround protection of Series C-2 and Series C-3 preferred stock was eliminated as, pursuant to its terms, the closing price of the Company’s common stock was greater than $2.00 for a period of twenty trading days for a consecutive thirty trading day period subsequent to the closing, resulting in the reclassification of the related derivative liability to equity in the amount of $6,235,398.
	On September 15, 2014 the Company entered into consent and exchange agreements with investors holding its outstanding Series C-2, Series C-3, Series D, and Series E preferred stock.  The Company modified certain terms within the preferred stock, as described in Note 4, which resulted in the reclassification of the remaining derivative liability to equity.
	The Company used a Monte Carlo simulation model to separately value the conversion options associated with the preferred stock instruments and the warrants issued in connection with the preferred stock.  A summary of the assumptions used in the Monte Carlo models are as follows:
		At September 15, 2014			At Issuance Date
	Expected term (months)		49 - 64			56 - 60
	Volatility		75	%		75	%
	Dividend yield		0	%		0	%
	Risk-free interest rate		1.63 - 1.8	%		1.3 - 1.5	%
	Stock Options
	During the nine months ended September 30, 2014, the Company granted to its officers, directors and employees, ten-year non-qualified stock options under the 2013 Stock Incentive Plan, covering an aggregate of 1,185,000 shares, respectively, of the Company’s common stock with exercise prices ranging from $1.80 to $2.79 per share.  Of these options, 896,000 vested on the date of grant, 204,000 options vest one year after the grant date, 45,000 options vest two years after the grant date, 25,000 options vest three years after the grant date.  The remaining 15,000 options are subject to certain performance milestones which were achieved during the nine months ended September 30, 2014, resulting in the vesting of 15,000 options in addition to the 896,000 options that vested on the date of grant.
	During the nine months ended September 30, 2014, the Company granted to its consultants ten-year non-qualified stock options under the 2013 Plan, covering an aggregate of 180,000 shares, respectively, of the Company’s common stock with exercise prices ranging from $1.77 to $2.24 per share.  Of these options, 13,000 vested on the grant date, 40,000 options vest quarterly for two years from grant date and the remaining 127,000 options are subject to performance milestones.  Some of these milestones were achieved as of September 30, 2014 which resulted in the vesting of 30,000 options in addition to the 13,000 options that vested on the date of grant.
	During the three and nine months ended September 30, 2014, total compensation expense for stock options issued to employees, directors, officers and consultants was $166,439 and $1,942,192, respectively.  For the nine months ended September 30, 2013, compensation expense was $321,627 and $753,476, respectively.
	The Company records compensation expense associated with stock options and other forms of equity compensation using the Black-Scholes option-pricing model and the following assumptions:
		Nine Months Ended September 30,
		2014			2013
	Expected term (years)		10-May			2 – 10
	Volatility		74% - 113	%		86% - 131	%
	Dividend yield		0	%		0	%
	Risk-free interest rate		1.5% - 2.9	%		0.34% - 2.78	%
	The Company estimated the expected term of the stock options granted based on anticipated exercises in future periods.  The expected term of the stock options granted to consultants is based upon the full term of the respective option agreements.  Given the Company’s short period of publicly-traded stock history, management’s estimate of expected volatility is based on the average historical volatilities of a sampling of five companies with similar attributes to the Company, including: industry, stage of life cycle, size and financial leverage.  The Company will continue to analyze the expected stock price volatility and expected term assumptions as more historical data for the Company’s common stock becomes available.  The expected dividend yield of 0.0% reflects the Company’s current and expected future policy for dividends on the Company’s common stock.  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 estimation of the number of stock awards that will ultimately vest requires judgment, and to the extent actual results or updated estimates differ from the Company’s current estimates, compensation expense may need to be revised.  The Company considers many factors when estimating expected forfeitures for stock awards granted to employees, officers and directors, including types of awards, employee class, and an analysis of the Company’s historical forfeitures.
	A summary of the Company’s stock option activity and related information for the nine months ended September 30, 2014 is as follows:
		Shares			Weighted Average Exercise Price
	Outstanding at beginning of period		3,453,630		$	1.06
	Exercised		(425,000	)	$	0.73
	Forfeited		(215,500	)	$	1.22
	Expired		(524,630	)	$	1.89
	Granted		1,365,000		$	2.04
	Outstanding at end of period		3,653,500		$	1.22
	Options exercisable		2,925,000		$	1.17
	Weighted-average fair value of options granted during the period				$	1.52
	The weighted average remaining contractual life of stock options outstanding at September 30, 2014 is 8.17 years.  The weighted average remaining contractual life of stock options exercisable at September 30, 2014 is 7.94 years.  The aggregate intrinsic value is calculated as the difference between the exercise prices of the underlying options and the quoted closing price of the common stock of the Company at September 30, 2014 for those options that have an exercise price below the quoted closing price.  As of September 30, 2014, the aggregate intrinsic value of stock options outstanding was $2,683,650 and the aggregate intrinsic value of stock options exercised during the nine months ended September 30, 2014 was $600,550.
	As of September 30, 2014, the total compensation expense related to non-vested options not yet recognized totaled $443,556.  The weighted-average remaining vesting period related to these non-vested options at September 30, 2014 was approximately 0.58 years.
	Warrants
	The following table is the summary of warrant activity for the nine months ended September 30, 2014:
		Shares			Weighted Average Exercise Price			Weighted Average Remaining Contractual Life
	Outstanding at beginning of period		10,422,525		$	2			3.12
	Granted		2,036,000		$	2.19			5.11
	Exercised		(887,292	)	$	1.18			-
	Outstanding at end of period		11,571,233		$	2	*		2.8
	*  Reflects reduced exercise prices of warrants as per September 15, 2014 amendment, see Note 4.
	Stock-based Deferred Compensation Plan for Non-Employee Directors
	During the third quarter of 2014, the Company established an unfunded stock-based deferred compensation plan, providing non-employee directors the opportunity to defer up to one hundred percent of fees and compensation, including restricted stock units.  The amount of fees and compensation deferred by a non-employee director is converted into  stock units, the number of which is determined based on the closing price of the Company’s common stock on the date such compensation would have otherwise been payable.  At all times, the plan participants are one hundred percent vested in their respective deferred compensation accounts.  On the tenth business day of January in the year following a director’s termination of service, the director will receive a number of common shares equal to the number of stock units accumulated in the director’s deferred compensation account.  The Company accounts for this plan as stock based compensation under ASC 718.  During the three months ended September 30, 2014, the amount of compensation that was deferred under this plan was not material.

4_Equity_Instruments_Modificat

4. Equity Instruments Modification and Fair Value Measurements	9 Months Ended
	Sep. 30, 2014
Equity Instruments Modification And Fair Value Measurements	'
Fair Value Measurements	'
	The fair value of the Company’s cash, accounts receivable and accounts payable at September 30, 2014 approximate their carrying values due to the relative liquidity and/or short-term nature of these instruments.  As defined by ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), fair value measurements and disclosures establish a fair value hierarchy that prioritizes fair value measurements based on the type of inputs used for the various valuation techniques (market approach, income approach and cost approach).   The three levels of the fair value hierarchy under ASC 820 are described below:
	●	Level 1 - observable inputs such as quoted prices in active markets for identical assets or liabilities;
	●	Level 2 - inputs other than quoted market prices that are observable for the asset or liability, either directly or indirectly; these include quoted prices for similar assets or liabilities in active markets, such as interest rates and yield curves that are observable at commonly-quoted intervals; and
	●	Level 3 - unobservable inputs that reflect the Company’s own assumptions, as there is little, if any, related market activity.
	The following table presents the fair value hierarchy and the change in fair values of the Company’s derivative liabilities measured at fair value on a recurring basis.
									Change in Fair Value
			Fair Value Hierarchy Level			Fair Value December 31, 2013			From July 1 to Sept. 15, 2014 (Modification Date)			From Jan. 1 to Sept. 15, 2014 (Modification Date)
	Series C-1, C-2 and C-3  non-voting preferred stock conversion option issued in October 2013 and January 2014			3		$	2,027,330		$	-		$	599,814
	Series D non-voting preferred stock conversion option issued in October 2013			3			901,625			204,102			2,017,960
	Series E non-voting preferred stock conversion option issued in October   2013			3			735,619			176,437			1,786,902
	Warrants issued in connection with  convertible debt issued in May 2013			3			660,869			105,471			1,566,444
	Warrants issued in connection with Series C-1, C-2 and C-3 non-voting preferred stock issued in October 2013 and January 2014			3			983,361			193,984			3,732,962
	Warrants issued in March 2014 in  connection with the private placement of common stock and warrants			3			-			(93,554	)		(855,129	)
	Total					$	5,308,804		$	586,440		$	8,848,953
	The Company's derivative liabilities are classified as Level 3.   Changes in the unobservable input values would likely cause material changes in the fair value of the Company’s Level 3 derivative liabilities.  Significant unobservable inputs are implied volatilities.  Significant increases (decreases) in implied volatilities in isolation would result in a significantly higher (lower) fair value measurement.  The Company reviews these valuations and the changes in the fair value measurements for reasonableness.
	On September 15, 2014, the Company entered into consent and exchange agreements with the investors holding its outstanding Series C-2 preferred stock and related warrants, Series C-3 preferred stock and related warrants, Series D preferred stock and Series E preferred stock, and the investors holding warrants issued in March 2014.  Pursuant to those agreements, the Company and the investors agreed to amend and restate the Series C-2 preferred stock and related warrants, Series C-3 preferred stock and related warrants, Series D preferred stock and Series E preferred stock and the warrants issued in May 2013, October 2013 and March 2014, to remove anti-dilution, price reset, cash settlement features and certain change of control provisions that caused those instruments to be classified as derivative liabilities.  The Company also eliminated the preferred dividends on the Series D preferred stock and Series E preferred stock.
	In exchange for the removal of the anti-dilution, price reset, cash settlement, change of control and dividend provisions from the Series C-2 preferred stock, Series C-3 preferred stock, Series D preferred stock and Series E preferred stock and the related warrants, as applicable, the Company agreed to the following:
	1.	Decrease the exercise price of the warrants issued in May 2013 from $1.00 to $0.65, decrease the exercise price of the warrants issued in October 2013 from $1.25 to $0.90, decrease the exercise price of the warrants issued in January 2014  from $1.25 to $0.90, and decrease the exercise price of the warrants issued in March 2014 from $3.10 to $2.50;
	2.	Extend the existing right of the two institutional investors in our May and October 2013 financings to participate in future financings to the later of two years after September 15, 2014 or the date on which  the respective holder holds less than 5% of the Company’s common stock on a fully diluted basis;
	3.	Increase the conversion ratio of the Series E preferred stock from 20 shares to 21.8667 shares of common stock for every share of  Series E preferred stock;
	4.	Issue 16,562 shares of the Company’s  Series D preferred stock to the investor holding all of the outstanding shares of the Series D preferred stock in satisfaction of the 9.0% payment-in-kind dividend on that stock; and
	5.	Issue an aggregate of 37,226 shares of Series E preferred stock to the two investors holding all of the outstanding shares of Series E preferred stock in satisfaction of the 8.0% payment-in-kind dividend on that stock.
	As a result of these modifications, all of the outstanding derivative liabilities were reclassified to equity.  The Company applied the accounting treatment prescribed for the modification of stock options under ASC 718 to the modification of the preferred stock and warrant instruments by analogy. The outstanding warrants and the preferred stock Series E and Series D hybrid instruments were re-measured immediately prior to the modification date with the original terms and immediately after the modification date with the amended terms.  The change in fair value resulting from the modifications made to those instruments on September 15, 2014 was recorded as loss on modification of equity instruments and extinguishment of derivative liabilities in the amount of approximately $2,463,000.
	The table below sets forth a summary of changes in the fair value of the Company’s Level 3 derivative liabilities related to the non-voting preferred stock embedded derivatives and the liability classified warrants.
			30-Sep-14
			Three Months			Nine Months
	Balance at beginning of period		$	8,670,717		$	5,308,804
	Additions to derivative liabilities			-			3,782,182
	Conversion of convertible preferred stock to common stock			-			(2,447,384	)
	Loss from modification of preferred stock and warrant instruments			2,462,588			2,462,588
	Change in fair value of derivative liabilities			586,440			8,848,953
	Reclassification of derivative liabilities to equity (excluding $21,117 dividends issued in 2013)			(11,719,745	)		(17,955,143	)
	Balance at end of period		$	-		$	-

5_Commitments_and_Contingencie

5. Commitments and Contingencies	9 Months Ended
	Sep. 30, 2014
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	In February 2007, Geistlich Söhne AG für Chemische Industrie, Switzerland, (Geistlich), filed an opposition against the Sodemann patent covering our Neutrolin product candidate which is owned by ND Partners, LLC and licensed to the Company pursuant to the License and Assignment Agreement between the Company and ND Partners LLC. The opposition against the Sodemann patent that was filed at the head office of the European Patent Office in Munich, Germany, was for lack of inventiveness in the use of citric acid and a pH value in the range of 4.5 to 6.5 with having the aim to provide an alternative lock solution through having improved anticoagulant characteristics compared to the lock solutions described in the Lehner patent. In June 2008 the opposition division at the European Patent Office held oral proceedings and rejected the opposition by Geistlich and maintained the patent as granted. On August 27, 2008, Geistlich appealed the court's ruling, alleging the same arguments as presented during the opposition proceedings. The Company filed a response to the appeal of Geistlich on March 25, 2009 where it requested a dismissal of the appeal and to maintain the patent as granted. On October 10, 2012, the Company became aware that the Board of Appeals of the European Patent Office issued, on September 4, 2012, a summons for oral proceedings. On November 28, 2012, the Board of Appeals of the European Patent Office held oral proceedings and verbally upheld the Sodemann patent covering Neutrolin, but remanded the proceeding to the opposition division as the lower court to consider restricting certain of the Sodemann patent claims. The Company received the Appeals Board final written decision on March 28, 2013 which was consistent with the oral proceedings. In a letter dated September 30, 2013, the Company was notified that the opposition division of the European Patent Office reopened the proceedings before the first instance again, and has given their preliminary non-binding opinion that the patent as amended during the appeal proceedings fulfils the requirements of Clarity, Novelty, and Inventive Step, and invited the parties to provide their comments and/or requests by February 10, 2014. The Company filed its response on February 3, 2014 to request that the patent be maintained as amended during the appeal proceedings. Geistlich did not provide any filing by February 10, 2014; however, the Board of the European Patent Office opposition division granted Geistlich an extension to respond by the end of July 2014 because its representative did not receive the September 30, 2013 letter due to a change of address.  Geistlich did not file a further statement within the required timeline.  As a result, the case is open for a final decision by the Board of the European Patent Office opposition division. The Company intends to continue to vigorously defend the patent in a restricted form. However, the Company can provide no assurances regarding the timing or outcome of this matter.
	Navinta LLC, a U.S.-based Active Pharmaceutical Ingredient (“API”) developer, provides API manufacturing (manufactured in India at an FDA-compliant facility) and a Drug Master File for CRMD003, pursuant to a supply agreement dated December 7, 2009 (the “Navinta Agreement”). The Navinta Agreement provides that Navinta will supply taurolidine (the API for Neutrolin) to the Company on an exclusive worldwide basis in the field of the prevention and treatment of human infection and/or dialysis so long as the Company purchased a minimum of $350,000 of product from Navinta by December 30, 2010, which the Company achieved, and following the Company’s first commercial sale of a product incorporating taurolidine, purchases a minimum of $2,250,000 of product on an annual basis for five years. The Company will not purchase the required amount in 2014.  The Company is also required to make certain cash payments to Navinta upon the achievement of certain sales-based milestones.  The maximum aggregate amount of such payments, assuming achievement of all milestones, is $1,975,000 over five years. The Navinta Agreement has a term of five years, but may be terminated by either party upon 30 days written notice.
	In January 2008, the Company entered into a License and Assignment Agreement (the “NDP License Agreement”) with ND Partners, LLC (“NDP”).  Pursuant to the NDP License Agreement, NDP granted us exclusive, worldwide licenses for certain antimicrobial catheter lock solutions, processes for treating and inhibiting infections, a biocidal lock system and a taurolidine delivery apparatus, and the corresponding United States and foreign patents and applications (the “NDP Technology”). As consideration in part for the rights to the NDP Technology, the Company paid NDP an initial licensing fee of $325,000 and granted NDP an equity interest in us consisting of 365,534 shares of the Company’s common stock as of December 31, 2010. In addition, the Company is required to make payments to NDP upon the achievement of certain regulatory and sales-based milestones. Certain of the milestone payments are to be made in the form of shares of common stock currently held in escrow for NDP, and other milestone payments are to be paid in cash. The maximum aggregate number of shares issuable upon achievement of milestones and the number of shares held in escrow was 145,543 shares of common stock as of September 30, 2014, which are reflected as deferred stock issuances on the condensed consolidated balance sheets. The maximum aggregate amount of cash payments of $2.5 million is based upon achievement of milestones related to U.S. regulatory developement and attainment of designated worldwide net sales levels from licensed products, none of which are expected to be met in 2014 or 2015.
	In April 2013, the Company entered into an amendment to the NDP License Agreement. Under the NDP License Agreement, the Company was obligated to make a milestone payment of $500,000 to NDP upon the first issuance of a CE Mark for a licensed product. Pursuant to the terms of the amendment, the Company and NDP agreed to delay such milestone payment to a time, to be chosen by the Company, within 12 months after the achievement of such issuance.   In July 2013, a milestone payment of $500,000 was earned by NDP upon the first issuance of the CE Mark for Neutrolin and was settled upon issuance of 50,000 shares of Series C-3 preferred stock in January 2014 (See Note 3 – Stockholders’ Equity).
	In January 2008, the Company also entered into an Exclusive License and Consulting Agreement with Dr. Polaschegg (the “Polaschegg License Agreement”).  The Polaschegg License Agreement replaced the original license agreement between NDP and Dr. Polaschegg that the Company was assigned and the Company assumed under the NDP License Agreement.  Pursuant to the Polaschegg License Agreement, Dr. Polaschegg granted the Company an exclusive, worldwide license for a certain antimicrobial solution and certain taurolidine treatments and the corresponding United States patent applications (the “Polaschegg Technology”), and agreed to provide the Company with certain consulting services. As consideration for the rights to the Polaschegg Technology, the Company paid Dr. Polaschegg an initial payment of $5,000 and agreed to pay Dr. Polaschegg certain royalty payments ranging from 1% to 3% of the net sales of the Polaschegg Technology. The Polaschegg License Agreement also sets forth certain minimum royalty payments (on an annual basis) to be made to Dr. Polaschegg in connection with the Polaschegg Technology, which payments range from $10,000 to $45,000. The Company may terminate the Polaschegg License Agreement with respect to any piece of the Polaschegg Technology upon 60 days notice.  If the Polaschegg License Agreement is terminated with respect to any piece of the Polaschegg Technology by either party, all rights with respect to such portion of the Polaschegg Technology will revert to Dr. Polaschegg.  The Company expensed $10,000 and $30,000 during the three and nine months ended September 30, 2014, respectively, and $11,250 and $33,750 for the three and nine months ended September 30, 2013, respectively.
	On July 21, 2014, the Company appointed Harry O’Grady as its Chief Financial Officer and Dr. Antony Pfaffle as its Chief Scientific Officer and entered into an employment agreement with each officer. Pursuant to their respective employment agreements, the Company will pay a base salary of $230,000 to Mr. O’Grady and $200,000 to Dr. Pfaffle.   Mr. O’Grady will be eligible to participate in the Company’s Short Term Incentive Plan (“STIP”) beginning January 1, 2015, with a target award opportunity equal to 40% of his base salary.  Dr. Pfaffle is eligible to participate in the STIP beginning on his employment date.  His 2015 target award opportunity is equal to 30% of his base salary.  Pursuant to his employment agreement, the Company also granted Mr. O’Grady an option to purchase 100,000 shares of the Company’s common stock.   If either officer’s employment is terminated as a result of his death or disability, the Company will pay him or his estate, as applicable (i) his base salary for 180 days after the termination of his employment, and (ii) additional benefits, if any, as may be provided under applicable employee benefit plans, programs and arrangements of the Company.  If the Company terminates either officer’s employment without “cause” (as defined in the employment agreement) or the officer terminates his employment for “good reason” (as defined in the employment agreement), then the Company will (i) pay the officer his then-current salary for 12 months, and (ii) provide the officer such other benefits, if any, as may be provided under applicable employee benefit plans, programs and arrangements of the Company.

6_Related_Party_Transactions

6. Related Party Transactions	9 Months Ended
	Sep. 30, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	In January 2014, the following related parties participated in the private placement of Series C-3 preferred stock and warrants to purchase the Company’s common stock at an exercise price of $1.25 per share, which was reduced to $0.90 in September 2014.  Each share of Series C-3 preferred stock is convertible into 10 shares of common stock.  All terms were the same as the Series C-1 and C-2 preferred stock issued in the October 2013 private placement (see Note 3 – Stockholders’ Equity):
			Amount		Number of Series C-3 Preferred Stock		Number of Warrants
	Gary A. Gelbfish (1)	Former Chairman of the Board	$	500,000		50,000		250,000
	Randy Milby	CEO and Director	$	237,000		23,700		118,500
	MW Bridges LLC, an entity for which Randy Milby is Managing Partner		$	13,000		1,300		6,500
	Steven W. Lefkowitz	Director and Former Interim CFO	$	45,000		4,500		22,500
	Wade Capital Corporation Money Purchase Plan, an entity for which Steven W.  Lefkowitz has voting and investment control		$	30,000		3,000		15,000
	(1) Gary A. Gelbfish resigned effective June 13, 2014 and ceased to be a related party 90 days thereafter.

2_Summary_of_Significant_Accou1

2. Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Use of Estimates	'
	The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
Basis of Consolidation	'
	Business and Nature of Operations:
	CorMedix Inc. (“CorMedix” or the “Company”) was incorporated in the State of Delaware on July 28, 2006.  The Company in-licenses, develops and commercializes prophylactic and therapeutic products for the prevention and treatment of infectious diseases in cardiac, renal and oncology patients.  The Company formed a wholly-owned subsidiary, CorMedix Europe GmbH, in 2013.  CorMedix’s product Neutrolin® received its CE Mark in Europe in July 2013 and product shipments to dialysis centers began in December 2013.  The Company expects to incur additional expenses as it continues to commercialize Neutrolin in Europe and other foreign markets and seeks U.S. Food and Drug Administration (“FDA”) approval of Neutrolin in the U.S.
	The Company expects to conduct one Phase III clinical trial in hemodialysis catheters and one Phase III clinical trial in oncology/total parenteral nutrition.  A protocol was designed for the planned Phase III trial in hemodialysis patients with a central venous catheter; this protocol was accepted by the FDA in August 2014 and the Company filed an IND in September 2014.  In October 2014, the FDA informed the Company that it had determined that the IND is not subject to a clinical hold, and that the Phase III clinical trial in hemodialysis patients can be initiated in the U.S.
	Basis of Presentation and Liquidity:
	The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”).  Accordingly, the unaudited condensed consolidated financial statements do not include all information and footnotes required by U.S. GAAP for complete financial statements.  In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation of such interim results.  Interim operating results are not necessarily indicative of results that may be expected for the full year ending December 31, 2014 or for any subsequent period.  These unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto of the Company which are included in the Company’s Annual Report on Form 10-K filed on March 31, 2014.  The accompanying condensed balance sheet as of December 31, 2013 has been derived from the audited financial statements included in such Form 10-K.
	To date, the Company has not generated significant revenues.  For the nine months ended September 30, 2014, the Company incurred an operating loss of $6.7 million and a net loss of $18.2 million.  Based on current assumptions about sales of Neutrolin and the development plans for Neutrolin, management believes that the Company’s existing cash will be sufficient to fund its operations through the third quarter of 2015.  However, the Company’s continued operations beyond the third quarter of 2015, including the commencement of its planned Phase III trial for Neutrolin in hemodialysis patients in the U.S., will depend on its ability to generate substantial revenue from the sale of Neutrolin and on its ability to raise additional capital through various potential sources, such as equity and/or debt financings, strategic relationships, or out-licensing of its products.  However, the Company can provide no assurances on future sales of Neutrolin or that financing or strategic relationships will be available on acceptable terms, or at all.  If the Company is unable to raise sufficient capital, find strategic partners or generate substantial revenue from the sale of Neutrolin, there would be a material adverse effect on its business. Further, the Company expects in the future to incur additional expenses as it continues to commercialize Neutrolin in Europe and other foreign markets, protects its intellectual property and seeks FDA approval of Neutrolin in the U.S.
	Basis of Consolidation:
	The consolidated financial statements include the accounts of the Company and CorMedix Europe GmbH, its wholly owned subsidiary.  All significant intercompany accounts and transactions have been eliminated in consolidation.
Recently Adopted Accounting Standards	'
	In June 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915) – Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation (“ASU 2014-10”).  ASU 2014-10 eliminates the concept of a development stage entity in its entirety from current accounting guidance. The new guidance eliminates the requirements for development stage entities to (i) present inception-to-date information in the statement of operations, stockholders’ equity and cash flows, (ii) label the financial statements as those of a development stage entity, (iii) disclose a description of the development stage activities in which the entity is engaged, and (iv) 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.  ASU 2014-10 is effective prospectively for public entities for annual reporting periods beginning after December 15, 2015, and interim periods within those annual periods.  However early adoption is permitted.  The Company elected to adopt ASU 2014-10 beginning with the quarter ended June 30, 2014 and, accordingly, has not included the inception-to-date disclosures and other previously required disclosures for development stage entities.
Recent Authoritative Pronouncements:	'
	In May 2014, the FASB issued new guidance related to how an entity should recognize revenue. The guidance specifies that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In addition, the guidance expands the required disclosures related to revenue and cash flows from contracts with customers. The guidance is effective for the Company beginning in the first quarter of 2017.  Early adoption is not permitted and retrospective application is required. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial condition, results of operations and cash flows.
	In June 2014, the FASB issued an accounting standard that clarifies the accounting for share-based payments when the terms of an award provide that a performance target could be achieved after the requisite service period. The standard requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.   The amendments are effective for interim and annual reporting periods beginning after December 15, 2015. Earlier adoption is permitted. The standard may be applied prospectively to all awards granted or modified after the effective date; or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter.  The Company is currently evaluating the impact of adopting this guidance on its consolidated financial condition, results of operations and cash flows.
Cash and Cash Equivalents	'
	Cash and cash equivalents include cash accounts and all investments purchased with initial maturities of three months or less.  The Company attempts to mitigate its exposure to liquidity, credit and other relevant risks by placing its cash and cash equivalents with financial institutions it believes are structurally sound.  The Company maintains its cash and cash equivalents in bank deposit and other interest bearing accounts, the balances of which, at times, may exceed federally insured limits.
Foreign Currency	'
	The consolidated financial statements are presented in U.S. Dollars (“USD”), the reporting currency of the Company.  For the financial statements of the Company’s foreign subsidiary, whose functional currency is the Euro, foreign currency asset and liability amounts are translated into USD at end-of-period exchange rates.  Foreign currency income and expenses are translated at average exchange rates in effect during the period.  Translation gains and losses resulting from this process are included in other comprehensive income (loss).  Transaction gains and losses that arise from the exchange rate fluctuations on transactions are included in other income (expense).
Geographic Information	'
	The Company reported revenues for the three-month period ended September 30, 2014 of $52,441 of which $50,970 was attributable to its European operations which are based in Germany and $1,471 was attributable to the amortization of deferred revenue received as a result of distribution agreement with a Korean company (See Deferred Revenue below).  The Company reported revenues for the nine-month period ended September 30, 2014 of $104,373 of which $102,902 was attributable to its European operations and $1,471 was attributable to the amortization of deferred revenue received as a result of distribution agreement with a Korean company.  Of the Company’s total assets of $6.8 million at September 30, 2014, $6 million was located in the U.S., with the remainder located in Germany.
Restricted Cash	'
	Pursuant to a supply agreement, the Company had invested in a twelve-month certificate of deposit held by the bank as collateral for a letter of credit in connection with the Company’s purchase of raw materials due to be delivered in the next twelve months.  The certificate of deposit was recorded on the consolidated balance sheets at December 31, 2013 as restricted cash.  As of September 30, 2014, the transaction which covered the letter of credit was completed, which resulted in the release of the restriction in the cash.
Prepaid Expenses	'
	Prepaid expenses consist of payments made in advance to vendors relating to service contracts for clinical trial development, manufacturing, preclinical development and insurance policies. These advanced payments are amortized to expense either as services are performed or over the relevant service period using the straight-line method.
Inventories	'
	Inventories are valued at the lower of cost or market on a first in, first out basis.  Inventories consist of raw materials (including labeling and packaging), work-in-process, and finished goods, if any, for the Neutrolin product.  Inventories consist of the following:
		30-Sep-14		31-Dec-13
	Raw materials	$	304,282	$	77,103
	Work in process		368,955		-
	Finished goods		4,180		2,918
	Total	$	677,417	$	80,021
	Accrued Expenses:
	Accrued expenses consist of the following:
		30-Sep-14		31-Dec-13
	Licensing fee	$	-	$	500,000
	Royalty fee		30,000		-
	Accrued payroll and related taxes		2,153		197,969
	Professional and consulting fees		382,201		12,000
	Raw material purchases		54,000		-
	Other		6,649		3,210
	Total	$	475,003	$	713,179
Deferred Revenue	'
	In August 2014, the Company entered into an exclusive distribution agreement (the “Agreement”) with Wonik Corporation, a South Korean company, to market, sell and distribute Neutrolin for hemodialysis and oncolytic patients upon receipt of regulatory approval in Korea.  Upon execution of the Agreement, Wonik paid the Company a non-refundable $50,000 payment and will pay an additional $50,000 upon receipt of the product registration necessary to sell Neutrolin in the Republic of Korea (the “Territory”).  The term of the agreement commenced on August 8, 2014 and will continue for three years after the first commercial sale of Neutrolin in the Territory.  The non-refundable up-front payment has been recorded as deferred revenue and will be recognized as revenue on a straight-line basis over the contractual term of the Agreement.
Revenue Recognition	'
	CorMedix recognizes revenue in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 101, Revenue Recognition in Financial Statements (“SAB 101”), as amended by SAB No. 104, Revenue Recognition (“SAB 104”) and FASB Accounting Standards Codification (“ASC”) 605, Revenue Recognition (“ASC 605”).  This guidance requires that revenue is recognized from product sales when the following four revenue recognition criteria are met: persuasive evidence of an arrangement exists, delivery has occurred, the selling price is fixed or determinable, and collectability is reasonably assured.
	CorMedix’s product Neutrolin received its CE Mark in Europe in July 2013 and product shipments to dialysis centers began in December 2013.  Orders are processed through a distributor; however, Neutrolin is drop-shipped via a pharmacy directly to the Company’s customer, the dialysis center. The Company recognizes net sales upon shipment of product to the dialysis centers.
Income (Loss) per common share	'
	Basic income (loss) per common share excludes any potential dilution and is computed by dividing net income (loss) available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted earnings (loss) per common share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity.  However, since their effect is anti-dilutive, the Company has excluded potentially dilutive shares.  The following potentially dilutive shares have been excluded from the calculation of diluted net loss per share as their effect would be anti-dilutive.
		September 30,
		2014		2013
	Convertible notes		-		2,035,628
	Series B non-voting preferred stock		454,546		454,546
	Series C non-voting preferred stock		3,340,000		-
	Series D non-voting preferred stock		1,479,240		-
	Series E non-voting preferred stock		2,021,358		-
	Shares underlying outstanding warrants		11,571,233		8,985,025
	Shares underlying outstanding stock options		3,653,500		3,179,630
	Total		22,519,877		14,654,829
Stock-Based Compensation	'
	The Company measures and recognizes compensation expense for all stock-based payments granted to employees, officers and directors at fair value, net of estimated forfeitures, over the vesting period of the underlying stock-based awards.
	The Company accounts for stock options granted to non-employees on a fair value basis using the Black-Scholes option pricing method.  The non-cash charge to operations for non-employee options with service vesting is based on the revalued amount of the options at the end of each reporting period which is amortized to expense over the related vesting period.  For stock options granted to non-employees with vesting contingent upon various performance metrics, the Company used the guidelines in accordance with FASB ASC No. 505-50, Equity-Based Payments to Non-Employees. For options having performance conditions that are outside of the control of the non-employee, the cost to be recognized is the lowest aggregate fair value prior to the achievement of the performance condition, even if the Company believes it is probable that the performance condition will be achieved.
Embedded Derivative Liabilities and Warrant Liabilities	'
	The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risks; however, the Company has several series of preferred stock and warrants that contain embedded derivatives.  The Company evaluates all its financial instruments to determine if those instruments or any potential embedded components of those instruments qualify as derivatives that need to be separately accounted for in accordance with FASB ASC 815, “Derivatives and Hedging”.  Embedded derivatives satisfying certain criteria are recorded at fair value at issuance and marked-to-market at each balance sheet date with the change in the fair value recorded as income or expense.  In addition, upon the occurrence of an event that requires the derivative liability to be reclassified to equity, the derivative liability is revalued to fair value at that date.
	The Company accounts for stock warrants as either equity instruments or derivative liabilities depending on the specific terms of the warrant agreement.  Stock warrants that allow for cash settlement or provide for certain modifications of the warrant exercise price were accounted for as derivative liabilities.  For those liability-classified warrants that have down-round provisions which allow the exercise price to be adjusted as a result of certain future financing transactions, the Company uses level 3 inputs to value those warrants. The estimated fair values of the warrant liabilities with downround protection were determined using a Monte Carlo option pricing model which takes into account the probabilities of certain events occurring over the life of the warrants.  The derivative liabilities were adjusted to their estimated fair values at each reporting period, with any decrease or increase in the estimated fair value being recorded in other income (expense).  The significant inputs and assumptions are as follows:
	Stock price – Due to the historical volatility of the Company's common stock price, a one month volume-weighted average stock price was used as of each valuation date.
	Conversion/redemption strike price – These assumptions incorporate both the initial contractual conversion price as well as subsequent downward adjustments  (wherever applicable) based on management’s estimate of the probabilities of additional future financings that would  include a stock price or conversion price that is lower than the then existing conversion price.
	Volatility – The Company used a weighted average of (i) the historical volatility of the Company’s common stock for approximately five years,  (ii) the volatility used for prior period valuations, and (iii) the volatilities of comparable companies (provided by the Company’s management) from the date product approval is received to the various valuation dates.  Then, appropriate weights were applied to these data points to arrive at the weighted average historical volatility.
	Term – Although the Series C, D and E preferred stocks do not have a specified contracted life, the Company has assumed a five year life from the date of inception for the purpose of the valuations.
	Risk-free Rate – The U.S. Treasury Bond Rate with a term approximating the term of the instrument was used as the risk-free interest rate in the valuation.
	Credit adjusted discount rate – Management believes that its debt, if rated, would be equivalent to Moody’s C rated bonds or lower.
	Dividend rate - Management does not expect to pay any dividends during the term of the hybrid instrument.
	As discussed in Note 4, the warrants issued in March 2014, which do not have downround protection, were valued using a Black Scholes option pricing model.

2_Summary_of_Significant_Accou2

2. Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2014
Accounting Policies [Abstract]	'
Schedule of inventories	'
		30-Sep-14		31-Dec-13
	Raw materials	$	304,282	$	77,103
	Work in process		368,955		-
	Finished goods		4,180		2,918
	Total	$	677,417	$	80,021
Schedule of accrued expenses	'
		30-Sep-14		31-Dec-13
	Licensing fee	$	-	$	500,000
	Royalty fee		30,000		-
	Accrued payroll and related taxes		2,153		197,969
	Professional and consulting fees		382,201		12,000
	Raw material purchases		54,000		-
	Other		6,649		3,210
	Total	$	475,003	$	713,179
Schedule of anti-dilutive securities excluded from calculation of diluted net loss per share	'
		September 30,
		2014		2013
	Convertible notes		-		2,035,628
	Series B non-voting preferred stock		454,546		454,546
	Series C non-voting preferred stock		3,340,000		-
	Series D non-voting preferred stock		1,479,240		-
	Series E non-voting preferred stock		2,021,358		-
	Shares underlying outstanding warrants		11,571,233		8,985,025
	Shares underlying outstanding stock options		3,653,500		3,179,630
	Total		22,519,877		14,654,829

3_Stockholders_Equity_Tables

3. Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2014
STOCKHOLDERS' DEFICIT	'
Assumptions Used in Black-Scholes Warrant-Pricing Model	'
		At Issuance Date			15-Sep-14
	Expected term (years)		5.5			5
	Volatility		75	%		75	%
	Dividend yield		0	%		0	%
	Risk-free interest rate		1.63	%		1.8	%
Assumptions Used in Monte Carlo Model	'
		At September 15, 2014			At Issuance Date
	Expected term (months)		49 - 64			56 - 60
	Volatility		75	%		75	%
	Dividend yield		0	%		0	%
	Risk-free interest rate		1.63 - 1.8	%		1.3 - 1.5	%
Assumptions Used in Black-Scholes Option-Pricing Model	'
		Nine Months Ended September 30,
		2014			2013
	Expected term (years)		10-May			2 – 10
	Volatility		74% - 113	%		86% - 131	%
	Dividend yield		0	%		0	%
	Risk-free interest rate		1.5% - 2.9	%		0.34% - 2.78	%
Summary of Option Activity under Plan and Related Information	'
		Shares			Weighted Average Exercise Price
	Outstanding at beginning of period		3,453,630		$	1.06
	Exercised		(425,000	)	$	0.73
	Forfeited		(215,500	)	$	1.22
	Expired		(524,630	)	$	1.89
	Granted		1,365,000		$	2.04
	Outstanding at end of period		3,653,500		$	1.22
	Options exercisable		2,925,000		$	1.17
	Weighted-average fair value of options granted during the period				$	1.52
Summary of warrants outstanding	'
		Shares			Weighted Average Exercise Price			Weighted Average Remaining Contractual Life
	Outstanding at beginning of period		10,422,525		$	2			3.12
	Granted		2,036,000		$	2.19			5.11
	Exercised		(887,292	)	$	1.18			-
	Outstanding at end of period		11,571,233		$	2	*		2.8

4_Fair_Value_Measurements_Tabl

4. Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2014
Fair Value Measurements Tables	'
Fair Value Measurements	'
								Change in Fair Value
		Fair Value Hierarchy Level			Fair Value December 31, 2013			From July 1 to Sept. 15, 2014 (Modification Date)			From Jan. 1 to Sept. 15, 2014 (Modification Date)
	Series C-1, C-2 and C-3  non-voting preferred stock conversion option issued in October 2013 and January 2014		3		$	2,027,330		$	-		$	599,814
	Series D non-voting preferred stock conversion option issued in October 2013		3			901,625			204,102			2,017,960
	Series E non-voting preferred stock conversion option issued in October   2013		3			735,619			176,437			1,786,902
	Warrants issued in connection with convertible debt issued in May 2013		3			660,869			105,471			1,566,444
	Warrants issued in connection with Series C-1, C-2 and C-3 non-voting preferred stock issued in October 2013 and January 2014		3			983,361			193,984			3,732,962
	Warrants issued in March 2014 in connection with the private placement of common stock and warrants		3			-			(93,554	)		(855,129	)
	Total				$	5,308,804		$	586,440		$	8,848,953
Level 3 derivative liabilities	'
		30-Sep-14
		Three Months			Nine Months
	Balance at beginning of period	$	8,670,717		$	5,308,804
	Additions to derivative liabilities		-			3,782,182
	Conversion of convertible preferred stock to common stock		-			(2,447,384	)
	Loss from modification of preferred stock and warrant instruments		2,462,588			2,462,588
	Change in fair value of derivative liabilities		586,440			8,848,953
	Reclassification of derivative liabilities to equity (excluding $21,117 dividends issued in 2013)		(11,719,745	)		(17,955,143	)
	Balance at end of period	$	-		$	-

6_Related_Party_Transactions_T

6. Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2014
Related Party Transactions [Abstract]	'
Related Party Transactions	'
			Amount		Number of Series C-3 Preferred Stock		Number of Warrants
	Gary A. Gelbfish (1)	Former Chairman of the Board	$	500,000		50,000		250,000
	Randy Milby	CEO and Director	$	237,000		23,700		118,500
	MW Bridges LLC, an entity for which Randy Milby is Managing Partner		$	13,000		1,300		6,500
	Steven W. Lefkowitz	Director and Former Interim CFO	$	45,000		4,500		22,500
	Wade Capital Corporation Money Purchase Plan, an entity for which Steven W.  Lefkowitz has voting and investment control		$	30,000		3,000		15,000

1_Organization_Business_and_Ba1

1. Organization, Business and Basis of Presentation (Details Narrative) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Organization Business And Basis Of Presentation Details Narrative	'	'	'	'
Net income (loss)	($5,035,117)	($2,499,899)	($18,239,118)	($5,697,821)

2_Summary_of_Significant_Accou3

2. Summary of Significant Accounting Policies (Details) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Summary Of Significant Accounting Policies Details	'	'
Raw materials	$304,282	$77,103
Work in process	368,955	0
Finished goods	4,180	2,918
Total	$677,417	$80,021

2_Summary_of_Significant_Accou4

2. Summary of Significant Accounting Policies (Details 1) (USD $)	Sep. 30, 2014	Dec. 31, 2013
Accounting Policies [Abstract]	'	'
Licensing fee	$0	$500,000
Royalty fee	30,000	0
Accrued payroll and related taxes	2,153	197,969
Professional and consulting fees	382,201	12,000
Raw material purchases	54,000	0
Other	6,649	3,210
Total	$475,003	$713,179

2_Summary_of_Significant_Accou5

2. Summary of Significant Accounting Policies (Details 2)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Antidilutive Shares	22,519,877	14,654,829
Convertible notes	'	'
Antidilutive Shares	0	2,035,628
Series B non-voting preferred stock	'	'
Antidilutive Shares	454,546	454,546
Series C non-voting convertible preferred stock	'	'
Antidilutive Shares	3,340,000	0
Series D non-voting convertible preferred stock	'	'
Antidilutive Shares	1,479,240	0
Series E non-voting convertible preferred stock	'	'
Antidilutive Shares	2,021,358	0
Shares underlying outstanding warrants	'	'
Antidilutive Shares	11,571,233	8,985,025
Shares underlying outstanding stock options	'	'
Antidilutive Shares	3,653,500	3,179,630

3_Stockholders_Equity_Details

3. Stockholders' Equity (Details)	3 Months Ended	9 Months Ended	3 Months Ended	9 Months Ended
	Mar. 31, 2014	Sep. 15, 2014	Mar. 31, 2014	Sep. 15, 2014	Sep. 30, 2014	Sep. 30, 2013
	Common Stock	Common Stock	Preferred Stock and Warrants [Member]	Preferred Stock and Warrants [Member]	Stock options	Stock options
Expected Term	'5 years 6 months	'5 years	'	'	'	'
Expected Term, minimum	'	'	'P56Y	'P49M	'P5Y	'P2Y
Expected Term, maximum	'	'	'P60Y	'P64M	'P10Y	'P10Y
Volatility	75.00%	75.00%	75.00%	75.00%	'	'
Volatility, minimum	'	'	'	'	74.00%	86.00%
Volatility, maximum	'	'	'	'	113.00%	131.00%
Dividend yield	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Risk-free interest rate	1.63%	1.80%	'	'	'	'
Risk-free interest rate, minimum	'	'	1.30%	1.63%	1.50%	0.34%
Risk-free interest rate, maximum	'	'	1.50%	1.80%	2.90%	2.78%

3_Stockholders_Equity_Details_

3. Stockholders' Equity (Details 1) (Stock options, USD $)	9 Months Ended
	Sep. 30, 2014
Stock options	'
Number of Options	'
Outstanding, Beginning	3,453,630
Number of Options Exercised	-425,000
Number of Options Forfeited	-215,500
Expired/Canceled	-524,630
Number of Options Granted	1,365,000
Outstanding, Ending	3,653,500
Exercisable	2,925,000
Weighted Average Exercise Price	'
Weighted Average Exercise Price Outstanding, Beginning	$1.06
Weighted Average Exercise Price Exercised	$0.73
Weighted Average Exercise Price Forfeited	$1.22
Weighted Average Exercise Price Expired/Canceled	$1.89
Weighted Average Exercise Price Granted	$2.04
Weighted Average Exercise Price Outstanding, Ending	$1.22
Weighted Average Exercise Price Exercisable	$1.17
Weighted-average fair value of options granted during the period	$1.52

3_Stockholders_Equity_Details_1

3. Stockholders' Equity (Details 2) (USD $) (Warrants, USD $)	9 Months Ended
	Sep. 30, 2014
Warrants	'
Outstanding, Beginning	10,422,525
Number of Warrants Granted	2,036,000
Number of Warrants Exercised	-887,292
Outstanding, Ending	11,571,233
Weighted Average Exercise Price Outstanding, Beginning	$2
Weighted Average Exercise Price Granted	$2.19
Weighted Average Exercise Price Exercised	$1.18
Weighted Average Exercise Price Outstanding, Ending	$2
Weighted Average Remaining Contractual Life (in years) Outstanding, Beginning	'3 years 1 month 13 days
Weighted Average Remaining Contractual Life (in years) warrants granted	'5 years 1 month 10 days
Weighted Average Remaining Contractual Life (in years) Outstanding, Ending	'2 years 9 months 18 days

4_Fair_Value_Measurements_Deta

4. Fair Value Measurements (Details) (USD $)	3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2014	Jun. 30, 2014	Dec. 31, 2013
Series C-1, C-2 and C-3 non-voting preferred stock conversion option issued in October 2013 and January 2014	'	'	'	'	$2,027,330
Series D non-voting preferred stock conversion option issued in October 2013	'	'	'	'	901,625
Series E non-voting preferred stock conversion option issued in October 2013	'	'	'	'	735,619
Warrants issued in connection with convertible debt issued in May 2013	'	'	'	'	660,869
Warrants issued in connection with Series C-1, C-2 and C-3 non-voting preferred stock issued in October 2013 and January 2014	'	'	'	'	983,361
Financial Liabilities Measured at Fair Value on a Recurring Basis	'	'	0	8,670,717	5,308,804
Change in fair value	586,440	8,848,953	'	'	'
Series C Preferred	'	'	'	'	'
Change in fair value	0	599,814	'	'	'
Series D Preferred	'	'	'	'	'
Change in fair value	204,102	2,017,960	'	'	'
Series E Preferred	'	'	'	'	'
Change in fair value	176,437	1,786,902	'	'	'
Warrant With Convertible Debt	'	'	'	'	'
Change in fair value	105,471	1,566,444	'	'	'
Warrant With Series C	'	'	'	'	'
Change in fair value	193,984	3,732,962	'	'	'
Warrant With Private Placement	'	'	'	'	'
Change in fair value	-93,554	-855,129	'	'	'
Level 3	'	'	'	'	'
Series C-1, C-2 and C-3 non-voting preferred stock conversion option issued in October 2013 and January 2014	'	'	'	'	2,027,330
Series D non-voting preferred stock conversion option issued in October 2013	'	'	'	'	901,627
Series E non-voting preferred stock conversion option issued in October 2013	'	'	'	'	735,619
Warrants issued in connection with convertible debt issued in May 2013	'	'	'	'	660,869
Warrants issued in connection with Series C-1, C-2 and C-3 non-voting preferred stock issued in October 2013 and January 2014	'	'	'	'	983,362
Financial Liabilities Measured at Fair Value on a Recurring Basis	'	'	'	'	$5,308,804

4_Fair_Value_Measurements_Deta1

4. Fair Value Measurements (Details 1) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Sep. 30, 2014	Sep. 30, 2013
Fair Value Measurements Details 1	'	'	'	'
Balance at beginning of year	$8,670,717	'	$5,308,804	'
Additions to derivative liabilities	0	'	3,782,182	'
Conversion of convertible preferred stock to common stock	0	'	-2,447,384	'
Loss on modification of preferred stock and warrant instruments	2,462,588	33,626	2,462,588	33,626
Change in fair value of derivative liabilities	586,440	'	8,848,953	'
Reclassification from derivative liabilities to equity	-11,719,745	'	-17,955,143	0
Balance at end of period	$0	'	$0	'

6_Related_Party_Transactions_D

6. Related Party Transactions (Details) (USD $)	9 Months Ended
	Sep. 30, 2014
Gary A. Gelbfish	'
Related party transaction	$500,000
Number of Series C-3 Preferred Stock	'50000
Number of Warrants	'250000
Randy Milby	'
Related party transaction	237,000
Number of Series C-3 Preferred Stock	'23700
Number of Warrants	'118500
MW Bridges LLC	'
Related party transaction	13,000
Number of Series C-3 Preferred Stock	'1300
Number of Warrants	'6500
Steven W. Lefkowitz	'
Related party transaction	45,000
Number of Series C-3 Preferred Stock	'4500
Number of Warrants	'22500
Wade Capital Corporation Money Purchase Plan	'
Related party transaction	$30,000
Number of Series C-3 Preferred Stock	'3000
Number of Warrants	'15000