OxySure Therapeutics (OXYS) 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 13, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	OxySure Systems Inc
Entity Central Index Key	1,413,797
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		36,220,761

Condensed Balance Sheets

Condensed Balance Sheets - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$ 6,312	$ 647,093
Restricted cash	2,000,000
Accounts receivable, net	830,596	$ 369,575
Inventories	390,028	277,346
License fee receivable	403,478	463,308
Prepaid expenses and other current assets	91,747	53,588
Total current assets	3,722,161	1,810,910
Property and equipment, net	89,544	91,537
Intangible assets, net	340,142	362,764
Other assets	276,692	246,237
TOTAL ASSETS	4,428,538	2,511,448
Current liabilities
Accounts payable and accrued expenses	768,674	558,338
Related party payable	$ 222,417	154,850
Capital leases - current		149
Notes payable - current, net of discount	$ 47,103	40,897
Convertible notes payable, net of discount	1,132,808	606,932
Derivative liability	76,618	416,563
Total current liabilities	$ 2,247,620	1,392,176
Long-term liabilities
Notes payable		44,484
Total long-term liabilities		44,484
TOTAL LIABILITIES	$ 2,247,620	$ 1,436,660
COMMITMENTS AND CONTINGENCY
STOCKHOLDERS' EQUITY
Common stock, par value $0.0004 per share; 100,000,000 shares authorized; 33,488,420 shares of voting common stock issued and outstanding as of September 30, 2015 and 28,436,930 shares issued and outstanding as of December 31, 2014	$ 13,398	$ 11,377
Other stockholder equity	(1,231,666)
Additional Paid-in Capital	25,418,546	$ 19,104,322
Accumulated deficit	(22,020,795)	(18,041,208)
TOTAL STOCKHOLDERS' EQUITY	2,180,918	1,074,788
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	4,428,538	2,511,448
Series A convertible preferred shares
STOCKHOLDERS' EQUITY
Preferred stock value	258	296
Series B convertible preferred shares
STOCKHOLDERS' EQUITY
Preferred stock value	1	$ 1
Series C convertible preferred shares
STOCKHOLDERS' EQUITY
Preferred stock value	385
Series D convertible preferred shares
STOCKHOLDERS' EQUITY
Preferred stock value	525
Series E convertible preferred shares
STOCKHOLDERS' EQUITY
Preferred stock value	$ 266

Condensed Balance Sheets (Paren

Condensed Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2015	Dec. 31, 2014
Preferred stock, par value	$ 0.0005	$ 0.0005
Preferred stock, shares authorized	25,000,000	25,000,000
Common stock, par value	$ 0.0004	$ 0.0004
Common stock, shares authorized	100,000,000	100,000,000
Voting common stock, shares issued	33,488,420	28,436,930
Voting common stock, shares outstanding	33,488,420	28,436,930
Series A convertible preferred shares
Preferred Stock, shares issued	518,750	593,750
Preferred stock, shares outstanding	518,750	593,750
Series B convertible preferred shares
Preferred Stock, shares issued	750	1,145
Preferred stock, shares outstanding	750	1,145
Series C convertible preferred shares
Preferred Stock, shares issued	770,000	0
Preferred stock, shares outstanding	770,000	0
Series D convertible preferred shares
Preferred Stock, shares issued	1,050,000	0
Preferred stock, shares outstanding	1,050,000	0
Series E convertible preferred shares
Preferred Stock, shares issued	531,666	0
Preferred stock, shares outstanding	531,666	0

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenues, net	$ 1,138,380	$ 818,456	$ 2,809,553	$ 1,852,796
Cost of goods sold	580,126	321,932	1,325,165	792,378
Gross profit	558,254	496,524	1,484,388	1,060,418
Operating expenses
Research and development	362,599	155,869	873,450	433,384
Sales and marketing	437,442	202,825	1,231,581	444,818
Other general and administrative	686,828	527,289	1,930,425	1,132,276
Total operating expenses	1,486,869	885,983	4,035,456	2,010,478
Loss from operations	(928,615)	(389,459)	(2,551,067)	(950,060)
Other income (expenses)
Interest expense	(626,127)	$ (169,051)	(1,519,071)	$ (362,638)
Change in value of derivative liabilities	219,673		342,257
Derivative expense	(47,091)		(251,363)
Other income (expense)	1,407	$ 96,161	(342)	$ 154,521
Total other income (expenses)	(452,138)	(72,890)	(1,428,519)	(208,117)
Net loss	$ (1,380,753)	$ (462,349)	$ (3,979,587)	$ (1,158,177)
Basic net loss per common share	$ (0.04)	$ (0.02)	$ (0.13)	$ (0.04)
Weighted average common shares outstanding:
Basic and Diluted	32,425,195	26,120,974	30,543,678	26,042,971

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (3,979,587)	$ (1,158,177)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation and amortization expense	33,239	35,462
Amortization of debt discount and beneficial conversion features	1,315,271	$ 254,944
Gain on forgiveness of debt	(44,954)
Excess derivative over proceeds	251,363
Derivative liability fair value adjustment	(342,257)
Expenses paid by related parties	137,150	$ 4,374
Warrants issued for services	11,025
Stock based compensation	119,083	$ 62,137
Common stock issued for services	$ 147,363
Gain on extinguishment of debt		$ (123,667)
Changes in operating assets and liabilities:
Accounts receivable	$ (461,020)	(444,915)
Inventories	(112,682)	(11,618)
License fees receivable	59,830	36,692
Prepaid expenses and other current assets	(38,159)	$ 87,070
Other assets	(30,455)
Accounts payable and accrued liabilities	$ 266,363	$ 476,772
Deferred revenue		(2,976)
NET CASH USED IN OPERATING ACTIVITIES	$ (2,668,427)	(783,900)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment	$ (8,624)	(70,651)
Purchase of intangible assets		(198)
NET CASH USED IN INVESTING ACTIVITIES	$ (8,624)	(70,849)
CASH FLOWS FROM FINANCING ACTIVITIES
Common stock subscribed and issued for cash	80,001	$ 29,672
Preferred stock issued for cash and warrants	2,650,001
Cash received from related parties	43,917	$ 9,800
Payments made to related parties	(113,500)	(115,300)
Cash received from convertible notes payable	1,551,000	475,000
Payments made on convertible notes payable	(175,000)	(192,000)
Payments on capital leases	(149)	(1,440)
NET CASH PRODUCED BY FINANCING ACTIVITIES	4,036,270	205,732
Net change in cash and cash equivalents	1,359,219	(649,019)
Cash and cash equivalents, at beginning of period	647,093	657,673
Cash and cash equivalents, at end of period	$ 2,006,312	8,654
Cash paid during the period for:
Interest		$ 12,996
Income taxes
Supplemental non-cash investing and financing activities:
Conversion of preferred stock to common stock	$ 371
Common stock issued for prepaid services		$ 25,000
Conversion of convertible notes payable	$ 1,234,730	$ 188,358
Beneficial conversion feature	843,515
Initial value of the derivative	$ 165,200

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A summary of significant accounting policies of OxySure® Systems, Inc. (“OxySure” or the “Company”) is presented to assist in understanding the Company’s financial statements. The accounting policies presented in these footnotes conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the accompanying financial statements. These financial statements and notes are representations of the Company’s management who are responsible for their integrity and objectivity. Basis of Presentation The accompanying Condensed Financial Statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and therefore do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements. The Company's Condensed Financial Statements reflect all adjustments that management believes are necessary for the fair presentation of their financial position, results of operations, comprehensive loss and cash flows for the periods presented. The information at December 31, 2014 in the Company's Condensed Balance Sheet included in this quarterly report was derived from the audited Balance Sheet included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 31, 2015. Where applicable, the Company's 2014 Annual Report on Form 10-K is referred to in this quarterly report as the “2014 Annual Report.” This quarterly report should be read in conjunction with the 2014 Annual Report. Deferred Revenue and Income - Inventory Inventories as at September 30, 2015 and December 31, 2014 consisted of the following: September 30, December 31, 2015 2014 Parts inventory $ 207,605 $ 133,477 Work in process 45,120 41,114 Finished goods 137,303 102,755 Total inventories $ 390,028 $ 277,346 Cash and Cash Equivalents - Fair Value of Financial Instruments - Level 1 Level 2 Level 3 The fair value of the majority of our cash equivalents was determined based on “Level 1” inputs. We do not have any marketable securities in the “Level 2” and “Level 3” category. We believe that the recorded values of all our other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations. Property and Equipment Other Long-Lived Assets Intangible assets with definite useful lives and other long-lived assets are tested for impairment if certain impairment indicators are identified . 5-Year amortization expense for patents and trademarks is as follows: 2015 $ 30,232 2016 30,232 2017 30,232 2018 30,232 Thereafter 188,982 $ 340,142 Other Assets Capitalization of software Amortization expense for websites and URLs was $9,654 and $9,654 for the three month periods ended September 30, 2015 and 2014, respectively. Amortization expense for websites and URLs was $28,962 and $28,962 for the nine month periods ended September 30, 2015 and 2014, respectively. Research and Development Costs – Equity Warrants - Stock-Based Compensation – For the three month periods ended September 30, 2015 and 2014, stock based compensation expense was approximately $25,740 and $42,437, respectively, which consisted primarily of stock-based compensation expense related to stock options issued to the employees and recognized under GAAP. For the nine month periods ended September 30, 2015 and 2014, stock based compensation expense was approximately $132,651 and $60,025, respectively. Shipping and Handling Costs Advertising Costs - Net Income (Loss) Per Share - Recent Accounting Pronouncements We have reviewed recent accounting pronouncements and concluded that they are either not applicable to our business or that no material effect is expected on the financial statements as a result of future adoption.

Notes Payable

Notes Payable	9 Months Ended
	Sep. 30, 2015
Notes Payable [Abstract]
NOTES PAYABLE	NOTE 2 – NOTES PAYABLE We have issued warrants for the purchase of shares of our restricted common stock in connection with raising equity and debt financing and for other professional services. The fair value of warrants issued is determined in accordance with Codification topic 470-20. Frisco Promissory Note. The Frisco Note requires varying annual principal payments through December 2015. The Frisco Note is non-interest bearing; however, interest has been imputed at 12.34% per annum. The unamortized discount at September 30, 2015 was $4,897 and the net amount of the Frisco Note as at September 30, 2015 was $47,103. Future principal payments of the Frisco Note payable are as follows: 2015 52,000 Total $ 52,000 During the nine months ended September 30, 2015 we issued ten convertible notes with a total principal value of $1,683,500 for $1,461,500 in cash. The notes contained original issuance discounts for a total of $222,500, and interest rates ranging between 8% and 12%. The maturity dates of the notes range from January 7, 2016 to May 4, 2017. The creditors have the option at any time to convert the principal and any accrued interest into common stock of the Company at an aggregate discount rate of approximately 7% off the market price of the Company’s common stock. During the nine months ended September 30, 2014 we repaid two notes with principal values totaling $175,000 for $237,298 in cash and the two notes were extinguished in their entirety pursuant to these transactions. During the nine months ended September 30, 2014 we issued eight convertible notes with a total principal value of $475,000 for $412,500 in cash. The notes contained original issuance discounts for a total of $62,500, and interest rates of 12%. The maturity dates of the notes range from January 28, 2015 to September 10, 2015. The creditors have the option at any time to convert the principal and any accrued interest into common stock of the Company at a an aggregate discount rate of approximately thirty eight percent off the market price of the Company’s common stock. During the nine months ended September 30, 2014 we repaid two notes with principal values totaling $167,500 for $207,000 in cash and the two notes were extinguished in their entirety pursuant to these transactions. During the nine months ended September 30, 2014 we exchanged a lease with an outstanding amount of $307,662 for a convertible note with a principal value of $150,000 and 75,000 shares of our common stock. The lease was extinguished in its entirety pursuant to the exchange transaction. During the nine months ended September 30, 2015, we issued warrants associated with notes. In accordance with ASC 470-20, Debt with conversions and other options, the proceeds from the notes were allocated based on the relative fair values of the notes without the warrants issued in conjunction with the notes and of the warrants themselves at the time of issuance. We recorded the relative fair value of the warrants issued with the notes in the amount of $251,363 as debt discounts upon issuance, and amortized these debt discounts as interest expense over the life of the notes. Additionally, as a result of issuing the warrants with the subordinated convertible promissory notes, a beneficial conversion option for each note was recorded as a debt discount reflecting the incremental conversion option intrinsic value benefit totaling $133,637 at the time of issuance provided to the holders of the notes, which was also amortized as interest expense over the life of the notes. We recorded interest expense in the amounts of $270,361 and $0 for the three months ended September 30, 2015 and 2014, respectively in connection with the notes (issued with warrants) that contained beneficial conversion features. We recorded interest expense in the amounts of $355,101 and $0 for the nine months ended September 30, 2015 and 2014, respectively in connection with all the notes (issued with warrants) that contained beneficial conversion features.

Shareholders' Equity

Shareholders' Equity	9 Months Ended
	Sep. 30, 2015
Shareholders' Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 3 - SHAREHOLDERS’ EQUITY Preferred Shares Rights We have 25,000,000 shares of preferred stock authorized, par value $0.0005 per share. Series A Convertible Preferred Stock: As of September 30, 2015, the Company had authorized the issuance of 3,143,237 shares of preferred stock designated as Series A Convertible Preferred Stock (“Series A Preferred”). The original issue price of the Series A Preferred is $1.00 per share. There were 518,750 and 593,750 Series A Preferred shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively. During the three months ended September 30, 2015 the Company did not issue any shares of the Series A Preferred, and no shares of the Series A Preferred have been converted into common stock. Series B Convertible Preferred Stock: As of September 30, 2015, we had 3,500 shares of preferred stock designated as Series B Convertible Preferred Stock (“Series B Preferred”). The original issue price of the Series B Preferred is $1,000 per share. There were 750 and 1,145 Series B Preferred shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively. During the three months ended September 30, 2015 the Company did not issue any shares of the Series B Preferred and 150 shares of Series B Preferred were converted into 313,296 shares of our common stock. Series C Convertible Preferred Stock: As of September 30, 2015, we had 770,000 shares of preferred stock designated as Series C Convertible Preferred Stock (“Series C Preferred”). The original issue price of the Series C Preferred is $2.00 per share. There were 770,000 and 0 Series C Preferred shares issued and outstanding as of September 30, 2015 and December 31, 2014, respectively. During the three months ended September 30, 2015 the Company issued no shares of the Series C Preferred and no shares of Series C Preferred were converted into common stock. Series D Convertible Preferred Stock: As of September 30, 2015, we had 1,050,000 shares of preferred stock designated as Series D Convertible Preferred Stock (“Series D Preferred”). The original issue price of the Series D Preferred is $2.00 per share. There were 1,050,000 and 0 shares of the Series D Preferred issued and outstanding as of September 30, 2015 and December 31, 2014, respectively. During the three months ended September 30, 2015 the Company issued no shares of the Series D Preferred and no shares of Series D Preferred were converted into common stock. Series E Convertible Preferred Stock: As of September 30, 2015, we had 531,666 shares of preferred stock designated as Series E Convertible Preferred Stock (“Series E Preferred”). The original issue price of the Series E Preferred is $1.00 per share. There were 531,666 and 0 shares of the Series E Preferred issued and outstanding as of September 30, 2015 and December 31, 2014, respectively. During the three months ended September 30, 2015 the Company issued no shares of the Series E Preferred and no shares of Series E Preferred were converted into common stock. Common Stock The Company has authorized 100,000,000 shares of $0.0004 par value common stock. During the three months ended September 30, 2015: (1) We issued 313,296 shares of common stock pursuant to the cashless conversion of 150 shares of Series B Preferred; (2) We issued 1,767,650 shares of common stock pursuant to the conversion of convertible notes; (3) We issued 90,000 shares of common stock for services; (4) We issued 93,474 shares of common stock for compensation; (5) We recorded $2,380 in expenses in connection warrants issued for services; (6) We recorded $219,673 in connection with derivative revaluation; (7) We recorded $26,740 for the computed fair value of options issued to employees, non-employee directors, and consultants, net of cancellations and forfeitures; and (8) We recorded $434,983 in connection with beneficial conversion features. During the nine months ended September 30, 2015: 1. We issued 133,333 shares of common stock for $80,001 in cash; 2. We issued 91,500 shares of common stock pursuant to the cashless conversion of 75,000 shares of Series A Preferred; 3. We issued 835,833 shares of common stock pursuant to the cashless conversion of 395 shares of Series B Preferred; 4. We issued 770,000 shares of the Series C Preferred for which we received $700,000 in cash and recorded a stock subscription receivable for the remaining $700,000; 5. We issued 1,050,000 shares of the Series D Preferred for $2,000,000 in cash held in escrow, to be released upon our uplisting to a national exchange; 6. We issued 3,719,350 shares of common stock pursuant to the conversion of convertible notes; 7. We issued 178,000 shares of common stock for services; 8. We issued 93,474 shares of common stock for compensation; 9. We recorded $11,025 in expenses in connection warrants issued for services; 10. We recorded $342,257 in connection with derivative revaluation; 11. We recorded $132,651 for the computed fair value of options issued to employees, non-employee directors, and consultants, net of cancellations and forfeitures; and 12. We recorded $1,315,271 in connection with beneficial conversion features. During the three months ended September 30, 2014: (1) We issued 26,580 shares of common stock for $19,000 in cash; and (2) We issued 360,781 shares of common stock pursuant to cashless conversions of convertible notes payable and accrued interest, valued at $150,858. During the nine months ended September 30, 2014: (1) We issued 41,580 shares of common stock for $29,700 in cash; (2) We issued 444,072 shares of common stock pursuant to cashless conversions of convertible notes payable and accrued interest, valued at $188,358; and (3) We issued 122,000 shares of common stock pursuant to the cashless conversion of 100,000 shares of Series A Preferred. As of September 30, 2015 we had approximately 33,488,420 shares of common stock issued and outstanding.

Stock Options and Warrants

Stock Options and Warrants	9 Months Ended
	Sep. 30, 2015
Stock Options and Warrants [Abstract]
STOCK OPTIONS AND WARRANTS	NOTE 4 - STOCK OPTIONS AND WARRANTS Equity Incentive Plans In April 2004, our Board of Directors and the stockholders at that time approved the adoption of a Voting Stock Option Plan (“the Plan”), which provides for the issuance of stock options to eligible employees, consultants, Board members and Advisory Board members of the Company to acquire up to a maximum of 5,000,000 shares of common stock. Our Board of Directors, which determines the number of options that will be granted, the effective dates of the grants, the option process and the vesting schedules, administers the Plan. In the absence of an established market for the common stock of the Company, the Board of Directors determines the fair market value of our common stock. Options generally expire between five and ten years from the date of grant and automatically terminate 90 days after such optionee ceases to be an eligible individual under the Plan other than by reason of death or disability. The portion of options granted that is not exercisable on the date the optionee ceases to be an eligible individual under the Plan by reason other than death, shall terminate and be forfeited to the Company on the date of such cessation. An optionee has no right as a stockholder with respect to any shares covered by the options granted to him until a certificate representing such shares is issued to them. Stock Options The following table summarizes information about the number and weighted average of the options that were forfeited or expired under the Plan as at September 30, 2015: Employee Non-Employee Weighted Weighted Number Average Number Average Combined Of Exercise Of Exercise Total Outstanding at June 30, 2015 2,513,838 $ 0.41 - $ - 2,513,838 Granted - $ - - $ - - Exercised - $ - - $ - - Forfeited/Cancelled (62,500 ) $ - - $ - - Outstanding at September 30, 2015 2,451,338 $ 0.39 - $ - 2,451,338 The number of stock options exercisable at September 30, 2015 was 1,886,721. We used the following assumptions to estimate the fair value of options granted under the Plan for the three and nine months ended September 30, 2015 and 2014: Equity Incentive Plans Equity Incentive Plans for the Three Months Ended September 30, for the Nine Months Ended September 30, 2015 2014 2015 2014 Expected terms (in years) 5-10 5-10 5-10 5-10 Volatility (weighted ave.) 83.79 % 40.45 % 83.79 % 40.45 % Risk-free interest rate .85% - 1.74 % 1.50% - 1.80 % .85% - 1.74 % 1.44% - 1.80 % Expected dividend rate 0 % 0 % 0 % 0 % The expected term of stock options represents the weighted average period the stock options are expected to remain outstanding. The expected term is based on the observed and expected time to exercise and post-vesting cancellations of options by optionees. We use historical volatility in deriving our expected volatility assumption because it believes that future volatility over the expected term of the stock options is not likely to differ from the past. The expected dividend assumption is based on our history and expectation of dividend payouts. The fair value of the shares of common stock underlying the stock options has historically been determined by the board of directors. On or before February 2012, when our common stock commenced trading on the over the counter bulletin board (OTCQB), there has been no public market for our common stock. Consequently, the board of directors has historically determined the fair value of the common stock at the time of grant of the option by considering a number of objective and subjective factors including valuation of comparable companies, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, amongst other factors. FASB ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company only records stock-based compensation expense for awards that are expected to vest. While we generally consider historical forfeitures in its estimates, judgment is also required in estimating the amount of stock-based awards that are expected to be forfeited. The Company’s estimates for forfeitures may differ from actual forfeitures. If actual results differ significantly from these estimates, stock-based compensation expense and its results of operations could be materially impacted when the Company records a true-up for the difference in the period that the awards vest. We adjust stock-based compensation expense based on our actual forfeitures on an annual basis, if necessary. Stock compensation cost, using the graded vesting attribute method in accordance with Codification topic 718, is recognized over the requisite service period, generally 5 years, during which each tranche of shares is earned (zero, one, two, three, and four years). The value of each tranche is generally amortized on a straight-line basis. For the three months ended September 30, 2015 and 2014, stock based compensation expense was approximately $26,736 and $42,437 respectively, which consisted primarily of stock-based compensation expense related to stock options recognized under GAAP issued to employees. For each of the three months ended September 30, 2015 and 2014, the number of options exercised was 0. Compensation expense is recognized only for the portion of stock options that are expected to vest, assuming an expected forfeiture rate in determining stock-based compensation expense, which could affect the stock-based compensation expense recorded if there is a significant difference between actual and estimated forfeiture rates. As of September 30, 2015, total unrecognized compensation cost related to stock-based awards granted to employees and non-employee directors was $323,715. Warrants. The following table summarizes our warrant activities for the three months ended September 30, 2015: Weighted Number Average Of Exercise Warrants Price Outstanding at June 30, 2015 4,863,956 $ 1.22 Granted 15,000 $ 1.23 Exercised - $ - Forfeited/Cancelled - $ - Outstanding at September 30, 2015 4,878,956 $ 1.23 The number of warrants exercisable at September 30, 2015 was 4,878,956.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 5 – RELATED PARTY TRANSACTIONS A summary of the related party financings and notes as at September 30, 2015 is as follows: Related party Julian Ross (1) Amount $ 222,417 Stated interest rate 0 % Maturity n/a (1) Our CEO, Mr. Ross provides us shareholder cash advances and other consideration from time to time to fund working capital.

Off Balance Sheet Arrangements

Off Balance Sheet Arrangements and Contractual Obligations	9 Months Ended
	Sep. 30, 2015
Off Balance Sheet Arrangements and Contractual Obligations [Abstract]
OFF BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS	NOTE 6 – OFF BALANCE SHEET ARRANGEMENTS AND CONTRACTUAL OBLIGATIONS We have not entered into any transactions with unconsolidated entities whereby we have financial guarantees, subordinated retained interests, or other contingent arrangements that expose us to material continuing risks, contingent liabilities, or any other obligation under a variable interest in an unconsolidated entity that provides financing, liquidity, market risk or credit risk support to us.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2015
Fair Value Measurements [Abstract]
FAIR VALUE MEASUREMENTS	NOTE 7 – FAIR VALUE MEASUREMENTS Changes related to derivatives for the nine months ended September 30, 2015 are as follows: Balance as of December 31, 2014 $ 31,010 Additions related to embedded derivative of convertible notes issued 416,563 Gain on decrease in value of derivative liabilities (342,257 ) Conversions (28,698 ) Balance as of September 30, 2015 $ 76,618 During the nine month period the Company recorded derivatives related to convertible notes of $416,563 of which $251,363 exceed the proceeds of the convertible notes and was recorded as a derivative expense. The Company also converted $28,698 and recorded gains on the change in the fair values of the derivatives of $342,257. Assets Measured at Fair Value on a Recurring Basis Fair value measurements at Total Level 1 Level 2 Level 3 Cash (1) $ 2,006,312 $ 2,006,312 - - Derivatives (76,618 ) - (76,618 ) - Total assets at fair value as of September 30, 2015 $ 1,929,694 $ 2,006,312 $ (76,618 ) $ - (1) Included in Cash and cash equivalents on the Company's Balance Sheet. Total Level 1 Level 2 Level 3 Cash (1) $ 647,093 $ 647,093 - - Total assets at fair value as of December 31, 2014 $ 647,093 $ 647,093 - - (1) Included in Cash and cash equivalents on the Company's Balance Sheet.

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2015
Segment Information [Abstract]
SEGMENT INFORMATION	NOTE 8 – SEGMENT INFORMATION We are organized as, and operate in, one reportable segment: the development, distribution and sale of specialty respiratory products and related medical products, accessories, and services. Our chief operating decision-maker is our Chief Executive Officer. Our Chief Executive Officer reviews financial information presented for purposes of evaluating financial performance and allocating resources, accompanied by information about revenue by geographic regions. Our assets are primarily located in the United States of America and not allocated to any specific region and we do not measure the performance of our geographic regions based upon asset-based metrics. Therefore, geographic information is presented only for revenue. Revenue by geographic region is based on the ship to address on our customer orders. The following presents total revenue by geographic region for the three month periods ended September 30, 2015 and 2014: Three Months Ended 2015 2014 United States - product sales $ 1,138,380 $ 814,619 ROW - product sales - 3,837 Totals $ 1,138,380 $ 818,456 T he following presents total revenue by geographic region for the nine month periods ended September 30, 2015 and 2014: Nine Months Ended September 30, 2015 2014 United States - product sales $ 2,807,600 $ 1,793,729 ROW - product sales 1,953 41,567 ROW - license fees/service revenue - 17,500 Totals $ 2,809,553 $ 1,852,796

Going Concern

Going Concern	9 Months Ended
	Sep. 30, 2015
Going Concern [Abstract]
GOING CONCERN	NOTE 9 – GOING CONCERN Our financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. Historically we have been suffering from recurring loss from operations. We have an accumulated deficit of $22,020,795 and $18,041,208 at September 30, 2015 and December 31, 2014, respectively, and stockholders’ equity of $2,180,918 and $1,074,787 as of September 30, 2015 and December 31, 2014, respectively. We require substantial additional funds to manufacture and commercialize our products. Our management is actively seeking additional sources of equity and/or debt financing; however, there is no assurance that any additional funding will be available. In view of the matters described above, recoverability of a major portion of the recorded asset amounts shown in the accompanying September 30, 2015 balance sheet is dependent upon continued operations of the Company, which in turn is dependent upon the Company’s ability to meet its financing requirements on a continuing basis, to maintain present financing, and to generate cash from future operations. These factors, among others, raise substantial doubt about our ability to continue as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should we be unable to continue in existence.

Summary of Significant Accoun15

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying Condensed Financial Statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (“SEC”) and therefore do not contain all of the information and footnotes required by GAAP and the SEC for annual financial statements. The Company's Condensed Financial Statements reflect all adjustments that management believes are necessary for the fair presentation of their financial position, results of operations, comprehensive loss and cash flows for the periods presented. The information at December 31, 2014 in the Company's Condensed Balance Sheet included in this quarterly report was derived from the audited Balance Sheet included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014 filed with the SEC on March 31, 2015. Where applicable, the Company's 2014 Annual Report on Form 10-K is referred to in this quarterly report as the “2014 Annual Report.” This quarterly report should be read in conjunction with the 2014 Annual Report.
Deferred Revenue and Income	Deferred Revenue and Income -
Inventory	Inventory Inventories as at September 30, 2015 and December 31, 2014 consisted of the following: September 30, December 31, 2015 2014 Parts inventory $ 207,605 $ 133,477 Work in process 45,120 41,114 Finished goods 137,303 102,755 Total inventories $ 390,028 $ 277,346
Cash and Cash Equivalents	Cash and Cash Equivalents -
Fair Value of Financial Instruments	Fair Value of Financial Instruments - Level 1 Level 2 Level 3 The fair value of the majority of our cash equivalents was determined based on “Level 1” inputs. We do not have any marketable securities in the “Level 2” and “Level 3” category. We believe that the recorded values of all our other financial instruments approximate their current fair values because of their nature and respective relatively short maturity dates or durations.
Property and Equipment	Property and Equipment
Other Long-Lived Assets	Other Long-Lived Assets Intangible assets with definite useful lives and other long-lived assets are tested for impairment if certain impairment indicators are identified . 5-Year amortization expense for patents and trademarks is as follows: 2015 $ 30,232 2016 30,232 2017 30,232 2018 30,232 Thereafter 188,982 $ 340,142
Other assets	Other Assets Capitalization of software Amortization expense for websites and URLs was $9,654 and $9,654 for the three month periods ended September 30, 2015 and 2014, respectively. Amortization expense for websites and URLs was $28,962 and $28,962 for the nine month periods ended September 30, 2015 and 2014, respectively.
Research and Development Costs	Research and Development Costs –
Equity Warrants	Equity Warrants -
Stock-Based Compensation	Stock-Based Compensation – For the three month periods ended September 30, 2015 and 2014, stock based compensation expense was approximately $25,740 and $42,437, respectively, which consisted primarily of stock-based compensation expense related to stock options issued to the employees and recognized under GAAP. For the nine month periods ended September 30, 2015 and 2014, stock based compensation expense was approximately $132,651 and $60,025, respectively.
Shipping and Handling Costs	Shipping and Handling Costs
Advertising Costs	Advertising Costs -
Net Income (Loss) Per Share	Net Income (Loss) Per Share -
Recent Accounting Pronouncements	Recent Accounting Pronouncements We have reviewed recent accounting pronouncements and concluded that they are either not applicable to our business or that no material effect is expected on the financial statements as a result of future adoption.

Summary of Significant Accoun16

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2015
Summary of Significant Accounting Policies [Abstract]
Schedule of inventories	September 30, December 31, 2015 2014 Parts inventory $ 207,605 $ 133,477 Work in process 45,120 41,114 Finished goods 137,303 102,755 Total inventories $ 390,028 $ 277,346
Schedule of finite-lived intangible assets amortization expense	2015 $ 30,232 2016 30,232 2017 30,232 2018 30,232 Thereafter 188,982 $ 340,142

Notes Payable (Tables)

Notes Payable (Tables)	9 Months Ended
	Sep. 30, 2015
Frisco EDC [Member]
Debt Instrument [Line Items]
Summary of future principal payments of Frisco note payable	2015 52,000 Total $ 52,000

Stock Options and Warrants (Tab

Stock Options and Warrants (Tables)	9 Months Ended
	Sep. 30, 2015
Stock Options and Warrants [Abstract]
Summary of option activity	Employee Non-Employee Weighted Weighted Number Average Number Average Combined Of Exercise Of Exercise Total Outstanding at June 30, 2015 2,513,838 $ 0.41 - $ - 2,513,838 Granted - $ - - $ - - Exercised - $ - - $ - - Forfeited/Cancelled (62,500 ) $ - - $ - - Outstanding at September 30, 2015 2,451,338 $ 0.39 - $ - 2,451,338
Summary of assumptions to estimate the fair value of options granted	Equity Incentive Plans Equity Incentive Plans for the Three Months Ended September 30, for the Nine Months Ended September 30, 2015 2014 2015 2014 Expected terms (in years) 5-10 5-10 5-10 5-10 Volatility (weighted ave.) 83.79 % 40.45 % 83.79 % 40.45 % Risk-free interest rate .85% - 1.74 % 1.50% - 1.80 % .85% - 1.74 % 1.44% - 1.80 % Expected dividend rate 0 % 0 % 0 % 0 %
Summary of warrant activity	Weighted Number Average Of Exercise Warrants Price Outstanding at June 30, 2015 4,963,956 $ 1.22 Granted 15,000 $ 1.20 Exercised - $ - Forfeited/Cancelled - $ - Outstanding at September 30, 2015 4,963,956 $ 1.22

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Summary of the related party financings and notes payable	Related party Julian Ross (1) Amount $ 222,417 Stated interest rate 0 % Maturity n/a

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2015
Fair Value Measurements [Abstract]
Schedule of changes related to derivatives	Balance as of December 31, 2014 $ 31,010 Additions related to embedded derivative of convertible notes issued 416,563 Gain on decrease in value of derivative liabilities (342,257 ) Conversions (28,698 ) Balance as of September 30, 2015 $ 76,618
Schedule of assets measured at fair value on a recurring basis	Fair value measurements at Total Level 1 Level 2 Level 3 Cash (1) $ 2,006,312 $ 2,006,312 - - Derivatives (76,618 ) - (76,618 ) - Total assets at fair value as of September 30, 2015 $ 1,929,694 $ 2,006,312 $ (76,618 ) $ - (1) Included in Cash and cash equivalents on the Company's Balance Sheet. Total Level 1 Level 2 Level 3 Cash (1) $ 647,093 $ 647,093 - - Total assets at fair value as of December 31, 2014 $ 647,093 $ 647,093 - - (1) Included in Cash and cash equivalents on the Company's Balance Sheet.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Information [Abstract]
Summary of revenue by geographic region	Three Months Ended 2015 2014 United States - product sales $ 1,138,380 $ 814,619 ROW - product sales - 3,837 Totals $ 1,138,380 $ 818,456 Nine Months Ended September 30, 2015 2014 United States - product sales $ 2,807,600 $ 1,793,729 ROW - product sales 1,953 41,567 ROW - license fees/service revenue - 17,500 Totals $ 2,809,553 $ 1,852,796

Summary of Significant Accoun22

Summary of Significant Accounting Policies (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Summary of Inventories
Parts inventory	$ 207,605	$ 133,477
Work in process	45,120	41,114
Finished goods	137,303	102,755
Total inventories	$ 390,028	$ 277,346

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Details 1)	Sep. 30, 2015USD ($)
Summary of Significant Accounting Policies [Abstract]
2,015	$ 30,232
2,016	30,232
2,017	30,232
2,018	30,232
Thereafter	188,982
Total	$ 340,142

Summary of Significant Accoun24

Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Summary of Significant Accounting Policies (Textual)
Deferred revenue	$ 0		$ 0		$ 0
Depreciation expense	3,797	$ 3,052	10,617	$ 12,838
Impairment charges for patents	0	0
Amortization of intangible assets	7,508	7,557	22,616	22,623
Amortization expense of other assets	9,654	9,654	28,962	47,216
Research and development	362,599	155,869	873,450	433,384
Stock-based compensation expense related to stock options issued to the employees	25,740	42,437	132,651	60,025
Advertising and promotion costs	437,442	202,825	$ 1,231,581	444,818
Potentially dilutive shares			21,865,386
Furniture and Fixtures [Member]
Summary of Significant Accounting Policies (Textual)
Property and equipment, useful life			5 years
Computer Software, Intangible Asset [Member]
Summary of Significant Accounting Policies (Textual)
Amortization of intangible assets	$ 9,654	$ 9,654	$ 28,962	$ 28,962
Property and equipment, useful life			3 years
Computer Software, Intangible Asset [Member] | Minimum [Member]
Summary of Significant Accounting Policies (Textual)
Property and equipment, useful life			3 years
Computer Software, Intangible Asset [Member] | Maximum [Member]
Summary of Significant Accounting Policies (Textual)
Property and equipment, useful life			5 years
Machinery and Equipment [Member] | Minimum [Member]
Summary of Significant Accounting Policies (Textual)
Property and equipment, useful life			5 years
Machinery and Equipment [Member] | Maximum [Member]
Summary of Significant Accounting Policies (Textual)
Property and equipment, useful life			7 years
Leasehold Improvements [Member] | Minimum [Member]
Summary of Significant Accounting Policies (Textual)
Property and equipment, useful life			3 years
Leasehold Improvements [Member] | Maximum [Member]
Summary of Significant Accounting Policies (Textual)
Property and equipment, useful life			7 years

Notes Payable (Details)

Notes Payable (Details) - Frisco Note payable [Member]	Sep. 30, 2015USD ($)
Summary of future principal payments of Frisco note payable
2,015	$ 52,000
Note payable, Total	$ 52,000

Notes Payable (Details Textual)

Notes Payable (Details Textual)	Mar. 22, 2011USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)ConvertibleNotes	Sep. 30, 2014USD ($)ConvertibleNotesshares
Notes Payable (Textual)
Repayment of notes				$ 175,000	$ 192,000
Interest expense		$ 626,127	$ 169,051	1,519,071	362,638
Convertible Notes Payable [Member]
Notes Payable (Textual)
Fair value of warrants issued				251,363
Conversion option intrinsic value				133,637
Interest expense		270,361	0	$ 355,101	0
Ten Convertible Notes [Member]
Notes Payable (Textual)
Number of convertible notes | ConvertibleNotes				2
Unamortized discount, new notes		222,500		$ 222,500
Note payable, net (new notes)		1,683,500		1,683,500
Convertible notes, cash value		$ 1,461,500		$ 1,461,500
Maturity date of notes, description				Maturity dates of the notes range from January 7, 2016 to May 4, 2017.
Market price discount rate				7.00%
Ten Convertible Notes [Member] | Note One [Member]
Notes Payable (Textual)
Repayment of notes					175,000
Ten Convertible Notes [Member] | Notes Two [Member]
Notes Payable (Textual)
Repayment of notes					$ 237,298
Ten Convertible Notes [Member] | Minimum [Member]
Notes Payable (Textual)
Interest rate		8.00%		8.00%
Ten Convertible Notes [Member] | Maximum [Member]
Notes Payable (Textual)
Interest rate		12.00%		12.00%
Eight Convertible Notes [Member]
Notes Payable (Textual)
Number of convertible notes | ConvertibleNotes					2
Unamortized discount, new notes			62,500		$ 62,500
Note payable, net (new notes)			475,000		475,000
Convertible notes, cash value			$ 412,500		$ 412,500
Interest rate			12.00%		12.00%
Maturity date of notes, description					Maturity dates of the notes range from January 28, 2015 to September 10, 2015.
Market price discount rate					38.00%
Lease outstanding amount			$ 307,662		$ 307,662
Convertible note principal value			$ 150,000		$ 150,000
Convertible note issuance of common shares | shares					75,000
Eight Convertible Notes [Member] | Note One [Member]
Notes Payable (Textual)
Repayment of notes					$ 167,500
Eight Convertible Notes [Member] | Notes Two [Member]
Notes Payable (Textual)
Repayment of notes					$ 207,000
Promissory Note [Member]
Notes Payable (Textual)
Amount of renewal and extension forgivable loan	$ 213,000
Debt instrument, payment terms	(i) the full payment of the economic incentives; or (ii) March 31, 2016.
Period of performance for debt	5 years
Unamortized discount, new notes		$ 4,897		$ 4,897
Note payable, net (new notes)		$ 47,103		$ 47,103
New debt instrument interest rate	12.34%

Shareholders' Equity (Details)

Shareholders' Equity (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Shareholders' Equity (Textual)
Preferred stock, shares authorized	25,000,000		25,000,000		25,000,000
Preferred stock, par value	$ 0.0005		$ 0.0005		$ 0.0005
Common stock issued for cash		$ 19,000	$ 80,001	$ 29,700
Common stock issued for cash, shares		26,580	133,333	41,580
Common stock, shares authorized	100,000,000		100,000,000		100,000,000
Common stock, par value	$ 0.0004		$ 0.0004		$ 0.0004
Beneficial conversion features	$ 434,983		$ 1,315,271
Common stock issued upon conversion of convertible notes, Shares	1,767,650	360,781	3,719,350	444,072
Fair value of options issued to employees	$ 26,740		$ 132,651
Common stock, Shares issued	33,488,420		33,488,420		28,436,930
Common stock, Shares outstanding	33,488,420		33,488,420		28,436,930
Change in value of derivative liabilities	$ 219,673		$ 342,257
Common stock issued for services	90,000		178,000
Common stock issued for compensation	93,474		93,474
Accrued interest		$ 150,858		$ 188,358
Series A Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred Stock, shares issued	518,750		518,750		593,750
Preferred stock converted into common stock			91,500	100,000
Common stock issued upon conversion of convertible preferred stock, Shares			75,000	122,000
Preferred stock, shares outstanding	518,750		518,750		593,750
Series B Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred Stock, shares issued	750		750		1,145
Preferred stock converted into common stock	150		835,833
Series B preferred authorized			3,500
Common stock issued upon conversion of convertible preferred stock, Shares	313,296		395
Preferred stock, shares outstanding	750		750		1,145
Series C Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred Stock, shares issued	770,000		770,000		0
Common stock issued for cash			$ 700,000
Common stock issued for cash, shares			770,000
Preferred stock converted to common stock, Shares
Preferred stock subscription receivable	$ 700,000		$ 700,000
Preferred stock, shares outstanding	770,000		770,000		0
Series D Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred Stock, shares issued	1,050,000		1,050,000		0
Common stock issued for cash, shares			1,050,000
Preferred stock converted to common stock, Shares
Preferred stock, shares outstanding	1,050,000		1,050,000		0
Cash held in escrow	$ 2,000,000		$ 2,000,000
Series E Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred Stock, shares issued	531,666		531,666		0
Preferred stock converted to common stock, Shares
Preferred stock, shares outstanding	531,666		531,666		0
Warrant [Member]
Shareholders' Equity (Textual)
Warrants issued for services	$ 2,380		$ 11,025
Common stock [Member] | Series A Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred stock, shares authorized	3,143,237		3,143,237
Preferred stock, par value	$ 1		$ 1
Common stock [Member] | Series B Preferred Stock [Member]
Shareholders' Equity (Textual)
Preferred stock, par value	$ 1,000		$ 1,000

Stock Options and Warrants (Det

Stock Options and Warrants (Details) - Stock Options [Member]	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Summary of option activity
Outstanding Options/Warrants, beginning balance	2,513,838
Granted
Granted, Weighted Average Exercise Price | $ / shares
Exercised
Exercised, Weighted Average Exercise Price | $ / shares
Forfeited/Cancelled
Forfeited/Cancelled, Weighted Average Exercise Price | $ / shares
Outstanding Options/Warrants, ending balance	2,451,338
Employee [Member]
Summary of option activity
Outstanding Options/Warrants, beginning balance	2,513,838
Outstanding Options/Warrants, Weighted Average Exercise Price, beginning balance | $ / shares	$ 0.41
Granted
Granted, Weighted Average Exercise Price | $ / shares
Exercised
Exercised, Weighted Average Exercise Price | $ / shares
Forfeited/Cancelled	(62,500)
Forfeited/Cancelled, Weighted Average Exercise Price | $ / shares
Outstanding Options/Warrants, ending balance	2,451,338
Outstanding Options/Warrants, Weighted Average Exercise Price, ending balance | $ / shares	$ 0.39
Non-Employee [Member]
Summary of option activity
Outstanding Options/Warrants, beginning balance
Outstanding Options/Warrants, Weighted Average Exercise Price, beginning balance | $ / shares
Granted
Granted, Weighted Average Exercise Price | $ / shares
Exercised
Exercised, Weighted Average Exercise Price | $ / shares
Forfeited/Cancelled
Forfeited/Cancelled, Weighted Average Exercise Price | $ / shares
Outstanding Options/Warrants, ending balance
Outstanding Options/Warrants, Weighted Average Exercise Price, ending balance | $ / shares

Stock Options and Warrants (D29

Stock Options and Warrants (Details 1)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Summary of fair value of options granted were estimated at the date of grant using the Black-Scholes model
Volatility (weighted ave.)	83.79%	40.45%	83.79%	40.45%
Expected dividend rate	0.00%	0.00%	0.00%	0.00%
Minimum [Member]
Summary of fair value of options granted were estimated at the date of grant using the Black-Scholes model
Expected terms (in years)	5 years	5 years	5 years	5 years
Risk-free interest rate	0.85%	1.50%	0.85%	1.44%
Maximum [Member]
Summary of fair value of options granted were estimated at the date of grant using the Black-Scholes model
Expected terms (in years)	10 years	10 years	10 years	10 years
Risk-free interest rate	1.74%	1.80%	1.74%	1.80%

Stock Options and Warrants (D30

Stock Options and Warrants (Details 2) - Warrant [Member]	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Summary of warrants activity
Outstanding Options/Warrants, beginning balance	4,863,956
Outstanding Options/Warrants, Weighted Average Exercise Price, beginning balance | $ / shares	$ 1.22
Granted	15,000
Granted, Weighted Average Exercise Price | $ / shares	$ 1.23
Exercised
Exercised, Weighted Average Exercise Price | $ / shares
Forfeited/Cancelled
Forfeited/Cancelled, Weighted Average Exercise Price | $ / shares
Outstanding Options/Warrants, ending balance	4,878,956
Outstanding Options/Warrants, Weighted Average Exercise Price, ending balance | $ / shares	$ 1.23

Stock Options and Warrants (D31

Stock Options and Warrants (Details Textual) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Apr. 30, 2004	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock option and warrants (Textual)
Maximum number of shares acquired under voting stock option plan	5,000,000
Expiration period of option, Maximum	10 years
Expiration period of option, Minimum	5 years
Termination period of option for ineligible individual	90 days
Stock compensation expense recognition requisite service period				5 years
Stock based compensation expense		$ 26,736	$ 42,437	$ 119,083	$ 62,137
Number of stock options exercisable		1,886,721		1,886,721
Number of warrants exercisable		4,878,956		4,878,956
Stock Options [Member]
Stock option and warrants (Textual)
Unrecognized compensation costs related to non-vested stock option		$ 323,715		$ 323,715

Related Party Transactions (Det

Related Party Transactions (Details) - Julian Ross [Member]	Sep. 30, 2015USD ($)	[1]
Summary of related party financings and notes
Amount	$ 222,417
Stated interest rate	0.00%
[1]	(1) Our CEO, Mr. Ross provides us shareholder cash advances and other consideration from time to time to fund working capital.

Fair Value Measurements (Detail

Fair Value Measurements (Details)	9 Months Ended
	Sep. 30, 2015USD ($)
Schedule of changes related to derivative
Balance as of December 31, 2014	$ 416,563
Additions related to embedded derivative of convertible notes issued	416,563
Gain on decrease in value of derivative liabilities	(342,257)
Conversions	(28,698)
Balance as of September 30, 2015	$ 76,618

Fair Value Measurements (Deta34

Fair Value Measurements (Details 1) - USD ($)		Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash (1)	[1]	$ 2,006,312	$ 647,093
Derivatives		(76,618)
Total assets at fair value		1,929,694	647,093
Fair value measurements Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash (1)	[1]	$ 2,006,312	647,093
Derivatives
Total assets at fair value		$ 2,006,312	$ 647,093
Fair value measurements Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash (1)	[1]
Derivatives		$ (76,618)
Total assets at fair value		$ (76,618)
Fair value measurements Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash (1)	[1]
Derivatives
Total assets at fair value
[1]	Included in Cash and cash equivalents on the Company's Balance Sheet.

Fair Value Measurements (Deta35

Fair Value Measurements (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Fair Value Measurements (Textual)
Additions related to embedded derivative of convertible notes issued	$ 416,563
Excess derivative over proceeds	251,363
Conversions	28,698
Gain on decrease in value of derivative liabilities	$ 342,257

Segment Information (Details)

Segment Information (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Components of revenue by geographic region
Total revenues	$ 1,138,380	$ 818,456	$ 2,809,553	$ 1,852,796
United States revenues [Member]
Components of revenue by geographic region
Total revenues	$ 1,138,380	814,619	2,807,600	1,793,729
Row Product Sales [Member]
Components of revenue by geographic region
Total revenues		$ 3,837	$ 1,953	41,567
ROW - license fees/service revenue [Member]
Components of revenue by geographic region
Total revenues				$ 17,500

Going Concern (Details)

Going Concern (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Going Concern (Textual)
Accumulated deficit	$ 22,020,795	$ 18,041,208
Stockholders' deficit	$ 2,180,918	$ 1,074,788