United Cannabis (CNABQ) 10-Q 14 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 13, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	United Cannabis Corp
Entity Central Index Key	1,436,161
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		44,897,500
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 19,168	$ 321,353
Accounts receivable, net	7,697	6,245
Due from related parties	5,000	44,012
Prepaid expenses	134,500	177,400
Total current assets	166,365	549,010
Intangible assets	19,994	18,210
Investments in non-marketable equity securities	593,750	593,750
Equity method investments	88,000	138,000
Total assets	868,109	1,298,970
Current liabilities:
Accounts payable	127,483	27,424
Accrued expenses	390,526	550,795
Current portion of deferred revenue	380,000	500,000
Notes payable	775,000	775,000
Total current liabilities	1,673,009	1,853,219
Long term liabilities:
Deferred revenue, net of current portion	473,750	443,750
Total liabilities	$ 2,146,759	$ 2,296,969
Stockholders' deficit:
Preferred stock, no par value; 10,000,000 shares authorized; none issued and outstanding
Common stock, no par value; 100,000,000 shares authorized; 44,857,500 (unaudited) and 44,020,000 shares issued and outstanding, respectively	$ 2,915,168	$ 1,538,968
Common stock outstanding, not yet issued; 40,000 shares	88,000	88,000
Accumulated deficit	(4,281,818)	(2,624,967)
Total stockholders' deficit	(1,278,650)	(997,999)
Total liabilities and stockholders' deficit	$ 868,109	$ 1,298,970

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares None in scaling factor is -9223372036854775296	Jun. 30, 2015	Dec. 31, 2014
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract]
Preferred stock, no par value
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, no par value
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	44,857,500	44,020,000
Common stock, shares outstanding	44,857,500	44,020,000
Common stock, not yet issued shares	40,000	40,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenues:
Revenues, non-affiliates	$ 313,360		$ 397,765
Revenues, affiliate			4,425
Total revenues	$ 313,360		402,190
Cost of revenues	(79,963)		(107,018)
Gross profit	$ 233,397		295,172
Operating expenses:
Sales and marketing		$ 68,158	1,700	$ 74,158
Research and development		66,053	329	76,053
General and administrative	$ 493,316	360,664	1,050,449	424,142
Total operating expenses	493,316	494,875	1,052,478	574,353
Loss from operations	$ (259,919)	(494,875)	$ (757,306)	(574,353)
Other (income) expense:
Interest (income)		$ (25)		$ (25)
Interest expense	$ 20,132		$ 40,043
Equity in net loss of unconsolidated affiliate	$ 40,900		90,900
Loss on settlement of disputed terms of warrant			768,602
Total other (income) expense	$ 61,032	$ (25)	899,545	$ (25)
Loss from continuing operations	$ (320,951)	$ (494,850)	$ (1,656,851)	(574,328)
Net loss from discontinued operations				(58,892)
Net loss	$ (320,951)	$ (494,850)	$ (1,656,851)	$ (633,220)
Basic and diluted net loss per share:
Continuing operations	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.02)
Discontinued operations				0	[1]
Net loss per share	$ (0.01)	$ (0.01)	$ (0.04)	$ (0.02)
Basic and diluted weighted-average common shares outstanding:	44,850,363	43,620,000	44,630,287	32,592,376
[1]	Denotes loss of less than $0.01 per share.

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Operating activities:
Net loss	$ (1,656,851)	$ (633,220)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Bad debt expense	$ 16,625
Loss on sale of assets of discontinued operations		$ 15,704
Share-based compensation expense	$ 461,347
Value of non-marketable equity securities recognized as revenue	(90,000)
Equity in net loss of unconsolidated affiliate	90,900
Loss on settlement of disputed terms of warrant	768,602
Changes in operating assets and liabilities:
Accounts receivable	(18,077)
Due from related party	(1,888)	$ 10,774
Prepaid expenses	(18,512)
Accounts payable and accrued expenses	160,054	$ 11,872
Net cash provided by (used in) operating activities	(287,800)	$ (594,870)
Investing activities:
Purchase of intangible assets	(14,385)
Net cash provided by (used in) investing activities	$ (14,385)
Financing activities:
Proceeds from issuance of common shares and warrants		$ 900,000
Net cash provided by (used in) financing activities		900,000
Net increase (decrease) in cash	$ (302,185)	305,130
Cash, beginning of period	321,353	32,414
Cash, end of period	$ 19,168	$ 337,544
Supplemental schedule of cash flow information:
Cash paid for interest
Cash paid for income taxes
Supplemental disclosure of non-cash investing and financing activities:
Issuance of common stock for repurchase of warrant	$ 218,788
Cancellation of warrant	(218,788)
Issuance of common stock in settlement of disputed terms of warrant	768,602
Issuance of common stock for services	189,935
Issuance of stock options	$ 417,664
Investment in non-marketable equity securities for deferred services		$ 893,750
Conversion of note payable, related party, into common stock		$ 50,000

BUSINESS ORGANIZATION AND NATUR

BUSINESS ORGANIZATION AND NATURE OF OPERATIONS	6 Months Ended
	Jun. 30, 2015
BUSINESS ORGANIZATION AND NATURE OF OPERATIONS [Abstract]
BUSINESS ORGANIZATION AND NATURE OF OPERATIONS	NOTE 1 –BUSINESS ORGANIZATION AND NATURE OF OPERATIONS On March 19, 2014, we effected a four-for-one stock split of our outstanding shares of common stock. All references to shares of our common stock in our condensed consolidated financial statements refer to the number of shares of common stock after giving effect to the stock split (unless otherwise indicated). Background and Current Operations United Cannabis Corporation ("we", "our", "us", "UCANN", or “our Company”), a Colorado corporation, was originally formed as a California corporation under the name MySkin, Inc. on November 15, 2007. MySkin was engaged in the business of providing management services to a medical spa in Los Angeles, California which provided various advanced skin care services until March 31, 2014, when this business was sold. In early 2014 we decided to exit the medical spa management business and change our focus to providing products, services and intellectual property to the cannabis industry. On March 26, 2014, we entered into a License Agreement with Earnest Blackmon, Tony Verzura and Chad Ruby pursuant to which Messrs. Blackmon, Verzura and Ruby licensed certain intellectual property to us in exchange for a total of 38,690,000 In connection with this transaction: • Messrs. Blackmon, Verzura and Ruby licensed to us all of their knowledge and know-how relating to the design and buildout of cultivation facilities, growing/cultivation systems, seed-to-sale protocols and procedures, products, a genetic catalogue including over 150 different strains, an advanced (non-psychoactive) cannabinoid therapy program called "A.C.T. Now", security, regulatory compliance, and other methods and processes which relate to the cannabis industry. • The territory for this license is the entire world and the license runs in perpetuity. There are no royalty payments under the License Agreement. • Messrs. Blackmon, Verzura and Ruby were appointed to our board of directors effective April 7, 2014. • Mr. Blackmon was elected as our President, Mr. Ruby was elected as Chief Operating Officer and Mr. Verzura was elected as Vice President. • A total of 41,690,000 43,620,000 UCANN was formed as a Colorado corporation on March 25, 2014, and on May 2, 2014, MySkin, Inc. merged into UCANN, a wholly-owned subsidiary of MySkin, Inc., for the purpose of changing domicile from California to Colorado and changing the corporation's name to United Cannabis Corporation. On March 31, 2014, we sold all right, title and interest in the tangible and intangible assets, trademarks, customer lists, intellectual property and rights, which we owned and were related to our advanced skin care business since we have entered into a new business and no longer have any use for these assets. The assets were sold to MySkin Services, Inc. (“MTA”), a business partly owned by Marichelle Stoppenhagen, our former officer and director, in exchange for the $ 15,000 Government Regulation As of June 30, 2015, 23 states and the District of Columbia allow their citizens to use medical marijuana, and four states and the District of Columbia have legalized marijuana for recreational use. The state laws are in conflict with the federal Controlled Substances Act, which makes marijuana use and possession illegal on a national level. The Obama administration has effectively stated that it is not an efficient use of resources to direct federal law enforcement agencies to prosecute those lawfully abiding by state-designated laws allowing the use and distribution of medical and recreational marijuana. However, there is no guarantee that the current administration will not change its stated policy regarding the low-priority enforcement of federal laws, or that any future administration would not change this policy and decide to enforce the federal laws vigorously. Any such change in the federal government's enforcement of current federal laws could cause significant financial damage to us.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Principles of Consolidation Use of Estimates We make our estimate of the ultimate outcome for these items based on historical trends and other information available when our condensed consolidated financial statements are prepared. We recognize changes in estimates in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available. We believe that our significant estimates, assumptions and judgments are reasonable, based upon information available at the time they were made. Our actual results could differ from these estimates, making it possible that a change in these estimates could occur in the near term. Financial Instruments Financial Instruments The carrying amounts of our short-term financial instruments, including accounts receivable, prepaid expenses, accounts payable, accrued expenses and deferred revenue approximates fair value due to the relatively short period to maturity for these instruments. Investments in non-marketable equity securities are carried at cost. The carrying amount of our notes payable at June 30, 2015, approximates their fair values based on our incremental borrowing rates. Cash and Cash Equivalents Accounts Receivable We determine our allowance for doubtful accounts by regularly evaluating individual customer receivables and considering the customer's financial condition and credit history, and current economic conditions. Our allowance for doubtful accounts was $ 16,625 0 16,625 Inventory Prepaid Expenses - Property and Equipment three five Intangible Assets – 10 20 Investments in Non-Marketable Equity Securities Long-Lived Assets one We have not recorded any impairment charges related to long-lived assets as of June 30, 2015 or December 31, 2014. Equity Method Investments Deferred Revenue no Revenue Recognition - Revenue Recognition Revenue for services with a payment in form of stock, warrants or other financial assets is recognized when the services are performed. The value of revenue paid for with warrants is measured using the Black-Scholes model. Revenue from product sales, including delivery fees, is recognized when an order has been obtained, the price is fixed and determinable, the product is shipped, title has transferred and collectability is reasonably assured. Generally, our suppliers drop-ship orders to our clients with origin terms. For any shipments with destination terms, we defer revenue until delivery is made to the customer. During 2014 and during the six months ended June 30, 2015, sales returns were not significant and as such, no sales return allowance had been recorded as of June 30, 2015 and December 31, 2014. Reimbursable expenses, including those relating to travel, other out-of-pocket expenses and any third-party costs, are included as a component of revenues. Typically, an equivalent amount of reimbursable expenses are included in total direct client service costs. Reimbursable expenses related to time and materials and fixed-fee engagements are recognized as revenue in the period in which the expense is incurred and collectability is reasonably assured. Taxes collected from customers and remitted to governmental authorities are presented in the condensed consolidated statement of operations on a net basis. Cost of Revenues Shipping and Handling Costs - 1,013 0 Advertising Costs - 1,500 0 Research and Development Expenses - Sales and Marketing Expenses – General and Administrative Expenses - Share-Based Compensation 505 Equity We account for stock option grants issued and vesting to employees based on ASC 718, Compensation – Stock Compensation Income Taxes We follow the provisions of ASC 740, Income Taxes When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in our condensed consolidated financial statements in the period during which, based on all available evidence, we believe it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying condensed consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits, if any, are classified as interest expense and penalties and are included in selling, general and administrative expenses in our condensed consolidated statements of operations. Commitments and Contingencies one If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in our condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed. Net Loss Per Share Earnings per Share Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share, because the effect of their inclusion would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Warrants to purchase common stock 3,000,000 3,000,000 3,000,000 3,000,000 Stock options 600,000 — 600,000 — Total potentially dilutive securities 3,600,000 3,000,000 3,600,000 3,000,000 Other Comprehensive Income (Loss) Segment Reporting – one Concentration of Credit Risk The following tables show significant concentrations in our revenues and accounts receivable (net of allowances for doubtful accounts) for the periods indicated: Percentage of Revenue: Three Months Ended June 30, 2015 2014 Customer A 64 % — % Customer B 14 % — % Customer C 12 % — % Six Months Ended June 30, 2015 2014 Customer A 50 % — % Customer B 22 % — % Customer C 15 % — % Percentage of Accounts Receivable: June 30, 2015 December 31, 2014 Customer C 100 % — % Recently Issued Accounting Pronouncements In May 2014 the FASB issued guidance on revenue from contracts with customers, which implements a five step process of how an entity should recognize revenue in order 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 or services. This guidance will be effective for us at the beginning of fiscal year 2018, and early application is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact that the adoption will have on our condensed consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing reporting.

GOING CONCERN

GOING CONCERN	6 Months Ended
	Jun. 30, 2015
GOING CONCERN [Abstract]
GOING CONCERN	NOTE 3 – GOING CONCERN Our condensed consolidated financial statements have been prepared on a going concern basis which assumes we will be able to realize our assets and discharge our liabilities in the normal course of business for the foreseeable future. During the six months ended June 30, 2015, we incurred losses of $ 1,656,851 287,800 1,506,644 4,281,818

INVESTMENTS IN NON-MARKETABLE E

INVESTMENTS IN NON-MARKETABLE EQUITY SECURITIES	6 Months Ended
	Jun. 30, 2015
INVESTMENTS IN NON-MARKETABLE EQUITY SECURITIES [Abstract]
INVESTMENTS IN NON-MARKETABLE EQUITY SECURITIES	NOTE 4 – INVESTMENTS IN NON-MARKETABLE EQUITY SECURITIES On June 9, 2014, we received 1,187,500 3,000,000 4.29 The WMD common shares were recorded at $ 0.50 0.50 593,750 On December 9, 2014, the 3,000,000 300,000

PREPAID EXPENSES

PREPAID EXPENSES	6 Months Ended
	Jun. 30, 2015
PREPAID EXPENSES [Abstract]
PREPAID EXPENSES	NOTE 5 – PREPAID EXPENSES Prepaid expenses consist of: June 30, 2015 December 31, 2014 Prepaid corporate finance services $ 83,290 $ — Prepaid investor relations services 6,667 121,500 Other prepaid services and fees 44,543 55,900 $ 134,500 $ 177,400

EQUITY METHOD INVESTMENTS

EQUITY METHOD INVESTMENTS	6 Months Ended
	Jun. 30, 2015
EQUITY METHOD INVESTMENTS [Abstract]
EQUITY METHOD INVESTMENTS	NOTE 6 – EQUITY METHOD INVESTMENTS Our equity method investments consist of: June 30, 2015 December 31, 2014 Lone Mountain Partners, LLC (“Lone Mountain”) – 25 $ — $ 50,000 Cannabinoid Research & Development Company Limited (“CRD”) – 50 88,000 88,000 Total equity method investments $ 88,000 $ 138,000 Lone Mountain On August 14, 2014, we acquired a 25 50,000 40,900 50,000 40,900 During the six months ended June 30, 2015, Lone Mountain incurred operating losses in excess of $ 400,000 90,900 CRD On August 15, 2014, we acquired a 50 40,000 88,000 88,000 88,000

ACCRUED EXPENSES

ACCRUED EXPENSES	6 Months Ended
	Jun. 30, 2015
ACCRUED EXPENSES [Abstract]
ACCRUED EXPENSES	NOTE 7 – ACCRUED EXPENSES Our accrued expenses consist of: June 30, 2015 December 31, 2014 Accrued consulting fees $ 110,000 $ 110,000 Accrued wages and related costs 232,868 433,963 Accrued interest expense 46,875 6,832 Accrued expenses - other 783 — Total accrued expenses $ 390,526 $ 550,795 The $110,000 accrued consulting fees at June 30, 2015 and December 31, 2014, represent fees owed to consultants working on a research and development project that is approximately 80% complete. See Note 12.

DEFERRED REVENUE

DEFERRED REVENUE	6 Months Ended
	Jun. 30, 2015
DEFERRED REVENUE
DEFERRED REVENUE	NOTE 8 – DEFERRED REVENUE Our deferred revenue consists of: June 30, 2015 December 31, 2014 Deferred revenue – WeedMD $ 653,750 $ 743,750 Deferred revenue - FoxBarry 200,000 200,000 Less – current portion (380,000 ) (500,000 ) Deferred revenue, net of current portion $ 473,750 $ 443,750 As described in Note 4 above, on June 9, 2014, we received 1,187,500 3,000,000 893,750 150,000 three 15,000 45,000 90,000 180,000 On December 28, 2014, we entered into a royalty and consulting services agreement with FoxBarry Farms, LLC (“FoxBarry”) whereby we received a $ 200,000

NOTES PAYABLE

NOTES PAYABLE	6 Months Ended
	Jun. 30, 2015
NOTES PAYABLE [Abstract]
NOTES PAYABLE	NOTE 9 – NOTES PAYABLE Our notes payable consist of: June 30, 2015 December 31, 2014 Note payable - WeedMD $ 175,000 $ 175,000 Note payable – unrelated third party 600,000 600,000 Total notes payable $ 775,000 $ 775,000 On July 7, 2014, we issued a $ 175,000 5 2,181 4,339 8,606 4,267 On December 18, 2014, we issued a $ 600,000 12 18 13,500 17,951 35,704 38,269 2,565

STOCKHOLDERS' DEFICIT

STOCKHOLDERS' DEFICIT	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' DEFICIT [Abstract]
STOCKHOLDERS' DEFICIT	NOTE 10 – STOCKHOLDERS' DEFICIT Stock Options On January 9, 2015, we awarded 200,000 0.70 ten We calculated the fair value of each option to be approximately $0.70 per option utilizing the Black Scholes option pricing model and the following assumptions on the date of valuation: Stock price $ 0.70 Exercise price $ 0.70 Risk free interest rate 1.98 % Expected term (years) 10.0 Expected volatility 173 % Expected dividends 0 % At December 31, 2014, the fair value of these 600,000 417,664 The following table summarizes our stock options outstanding as of June 30, 2015 and December 31, 2014: Six Months Ended June 30, 2015 Number of Shares Weighted Average Remaining Life (years) Weighted Average Exercise Price Stock options outstanding, beginning of period — — $ — Issued 600,000 10.0 0.70 Exercised — — — Expired — — — Stock options outstanding, end of period 600,000 9.5 $ 0.70 Stock options exercisable, June 30, 2015 600,000 9.5 $ 0.70 Common Stock Issued For Warrant Outstanding On February 10, 2015, we issued 621,000 987,390 On February 10, 2015, we calculated the fair value of the Warrant to be $ 218,788 1.29 Stock price $ 1.59 Exercise price $ 3.00 Risk free interest rate 1.05 % Expected term (years) 2.6 Expected volatility 183 % Expected dividends 0 % The Warrant gave Typenex the right to purchase 170,044 768,602 218,788 Common Stock Issued For Services On March 2, 2015, we issued 30,000 42,600 42,600 On April 23, 2015 we issued 60,000 47,400 47,400 26,998 41,356 6,044 On April 23, 2015, we issued 126,500 99,935 99,935 33,312 66,623 four Warrants: The following table summarizes our share warrants outstanding as of June 30, 2015 and December 31, 2014: Six Months Ended June 30, 2015 Number of Shares Weighted Average Remaining Life (years) Weighted Average Exercise Price Warrants outstanding, beginning of period 3,170,044 1.3 $ 11.52 Issued — — — Exercised — — — Repurchased and cancelled (170,044 ) 2.5 3.00 Expired — — — Warrants outstanding, end of period 3,000,000 0.8 $ 12.00 Warrants exercisable, June 30, 2015 3,000,000 0.8 $ 12.00

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2015
SHARE-BASED COMPENSATION [Abstract]
SHARE-BASED COMPENSATION	NOTE 11 – SHARE-BASED COMPENSATION Share-based Compensation We recognize share-based compensation expense in cost of revenues and general and administrative expense based on the fair value of common shares issued for services. In addition, we accrue share-based compensation expense for estimated share-based awards earned during 2015 under our 2014 Equity Incentive Plan. Share-based compensation expense for the three and six months ended June 30, 2015 and 2014 is as follows: Three Months Ended June 30, 2015 2014 Share-based compensation expense – amortization of shares issued for prepaid services $ 142,310 $ — Share-based compensation expense – accrual of estimated share-based awards 105,000 — $ 247,310 $ — Six Months Ended June 30, 2015 2014 Share-based compensation expense – shares issued for services $ 42,600 $ — Share-based compensation expense – amortization of shares issued for prepaid services 208,747 — Share-based compensation expense – accrual of estimated share-based awards 210,000 — $ 461,347 $ —

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 12 –COMMITMENTS AND CONTINGENCIES Contractual Obligations and Commercial Commitments On May 6, 2014, we entered into a consultancy agreement with two third party consultants that has a six 50,000 50,000 200,000 100,000 50,000 80 110,000 160,000 80 110,000 100,000 2015 Legal Proceedings We are involved in disputes and legal actions arising in the normal course of our business. There have been no material developments in legal proceedings in which we are involved during the three and six months ended June 30, 2015.

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
RELATED PARTY TRANSACTIONS [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 13 –RELATED PARTY TRANSACTIONS Affiliate Customer During 2010 Messrs. Blackmon and Verzura have made loans to, or equity investments in, one of our customers and, effective June 30, 2015, Messrs. Blackmon and Verzura have completely divested themselves of those interests. As Messrs. Blackmon and Verzura may have had significant influence on management or operating polices of the customer until June 30, 2015, we have classified sales to this customer as revenues, affiliate, in our condensed consolidated statements of operations and accounts receivable from this customer as due from related parties on our condensed consolidated balance sheets. Lone Mountain During the year ended December 31, 2014, we made certain payments on behalf of Lone Mountain during the organizational phase of this venture and we classified these payments as due from related parties on our condensed consolidated balance sheets. As further described in Note 6 above, during the three and six months ended June 30, 2015, we expensed our $ 40,900 CRD On April 20, 2015, we advanced CRD $ 5,000 Amounts due from related parties consist of: June 30, 2015 December 31, 2014 Affiliated customer $ — $ 3,112 Lone Mountain — 40,900 CRD 5,000 — Total due from related parties $ 5,000 $ 44,012

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	6 Months Ended
	Jun. 30, 2015
DISCONTINUED OPERATIONS [Abstract]
DISCONTINUED OPERATIONS	NOTE 14 –DISCONTINUED OPERATIONS On March 31, 2014, we sold all right, title and interest in the tangible and intangible assets, trademarks, customer lists, intellectual property and rights, which we owned and were related to the advanced skin care business. The assets were sold to MySkin Services, Inc. (“MTA”), a business partly owned by Ms. Stoppenhagen in exchange for a $ 15,000 The following details our loss from discontinued operations: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues $ — $ — $ — $ 20,684 Operating expenses: Selling, general and administrative — — — 63,872 Loss on disposal of assets — — — 15,704 Total operating expenses — — — 79,576 Loss from discontinued operations, before income taxes — — — (58,892 ) Provision for income taxes — — — — Loss from discontinued operations, net of income taxes $ — $ — $ — $ (58,892 )

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	NOTE 15 – SUBSEQUENT EVENTS We are in the process of disposing our 25% equity interest in LMP in exchange for a mutual release from all claims against us, LMP and the other LMP members. We expect that this transaction will be complete effective July 7, 2015. This transaction will not impact our condensed consolidated financial statements as we have previously written off our investment in and advances to LMP. In accordance with ASC 855-10 we have analyzed our operations subsequent to June 30, 2015, to the date these condensed consolidated financial statements were issued, and has determined that, other that as disclosed above, we do not have any material subsequent events to disclose in these condensed consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy)	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of Presentation	Basis of Presentation
Principles of Consolidation	Principles of Consolidation
Use of Estimates	Use of Estimates We make our estimate of the ultimate outcome for these items based on historical trends and other information available when our condensed consolidated financial statements are prepared. We recognize changes in estimates in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available. We believe that our significant estimates, assumptions and judgments are reasonable, based upon information available at the time they were made. Our actual results could differ from these estimates, making it possible that a change in these estimates could occur in the near term.
Financial Instruments	Financial Instruments Financial Instruments The carrying amounts of our short-term financial instruments, including accounts receivable, prepaid expenses, accounts payable, accrued expenses and deferred revenue approximates fair value due to the relatively short period to maturity for these instruments. Investments in non-marketable equity securities are carried at cost. The carrying amount of our notes payable at June 30, 2015, approximates their fair values based on our incremental borrowing rates.
Cash and Cash Equivalents	Cash and Cash Equivalents
Accounts Receivable	Accounts Receivable We determine our allowance for doubtful accounts by regularly evaluating individual customer receivables and considering the customer's financial condition and credit history, and current economic conditions. Our allowance for doubtful accounts was $ 16,625 0 16,625
Inventory	Inventory
Prepaid Expenses	Prepaid Expenses -
Property and Equipment	Property and Equipment three five
Intangible Assets	Intangible Assets – 10 20
Investments in Non-Marketable Equity Securities	Investments in Non-Marketable Equity Securities
Long-Lived Assets	Long-Lived Assets one We have not recorded any impairment charges related to long-lived assets as of June 30, 2015 or December 31, 2014.
Equity Method Investments	Equity Method Investments
Deferred Revenue	Deferred Revenue no
Revenue Recognition	Revenue Recognition - Revenue Recognition Revenue for services with a payment in form of stock, warrants or other financial assets is recognized when the services are performed. The value of revenue paid for with warrants is measured using the Black-Scholes model. Revenue from product sales, including delivery fees, is recognized when an order has been obtained, the price is fixed and determinable, the product is shipped, title has transferred and collectability is reasonably assured. Generally, our suppliers drop-ship orders to our clients with origin terms. For any shipments with destination terms, we defer revenue until delivery is made to the customer. During 2014 and during the six months ended June 30, 2015, sales returns were not significant and as such, no sales return allowance had been recorded as of June 30, 2015 and December 31, 2014. Reimbursable expenses, including those relating to travel, other out-of-pocket expenses and any third-party costs, are included as a component of revenues. Typically, an equivalent amount of reimbursable expenses are included in total direct client service costs. Reimbursable expenses related to time and materials and fixed-fee engagements are recognized as revenue in the period in which the expense is incurred and collectability is reasonably assured. Taxes collected from customers and remitted to governmental authorities are presented in the condensed consolidated statement of operations on a net basis.
Cost of Revenues	Cost of Revenues
Shipping and Handling Costs	Shipping and Handling Costs - 1,013 0
Advertising Costs	Advertising Costs - 1,500 0
Research and Development Expenses	Research and Development Expenses -
Sales and Marketing Expenses and General and Administrative Expenses	Sales and Marketing Expenses – General and Administrative Expenses -
Share-Based Compensation	Share-Based Compensation 505 Equity We account for stock option grants issued and vesting to employees based on ASC 718, Compensation – Stock Compensation
Income Taxes	Income Taxes We follow the provisions of ASC 740, Income Taxes When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in our condensed consolidated financial statements in the period during which, based on all available evidence, we believe it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying condensed consolidated balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination. Interest and penalties associated with unrecognized tax benefits, if any, are classified as interest expense and penalties and are included in selling, general and administrative expenses in our condensed consolidated statements of operations.
Commitments and Contingencies	Commitments and Contingencies one If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in our condensed consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.
Net Loss Per Share	Net Loss Per Share Earnings per Share Potentially dilutive securities outlined in the table below have been excluded from the computation of diluted net loss per share, because the effect of their inclusion would have been anti-dilutive. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Warrants to purchase common stock 3,000,000 3,000,000 3,000,000 3,000,000 Stock options 600,000 — 600,000 — Total potentially dilutive securities 3,600,000 3,000,000 3,600,000 3,000,000
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss)
Segment Reporting	Segment Reporting – one
Concentration of Credit Risk	Concentration of Credit Risk The following tables show significant concentrations in our revenues and accounts receivable (net of allowances for doubtful accounts) for the periods indicated: Percentage of Revenue: Three Months Ended June 30, 2015 2014 Customer A 64 % — % Customer B 14 % — % Customer C 12 % — % Six Months Ended June 30, 2015 2014 Customer A 50 % — % Customer B 22 % — % Customer C 15 % — % Percentage of Accounts Receivable: June 30, 2015 December 31, 2014 Customer C 100 % — %
Recently Issued Accounting Pronouncements	Recently Issued Accounting Pronouncements In May 2014 the FASB issued guidance on revenue from contracts with customers, which implements a five step process of how an entity should recognize revenue in order 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 or services. This guidance will be effective for us at the beginning of fiscal year 2018, and early application is permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the impact that the adoption will have on our condensed consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing reporting.

SUMMARY OF SIGNIFICANT ACCOUN22

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Schedule of potentially dilutive securities that have been excluded from the computation of diluted net loss per share, because the effect of their inclusion would have been anti-dilutive	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Warrants to purchase common stock 3,000,000 3,000,000 3,000,000 3,000,000 Stock options 600,000 — 600,000 — Total potentially dilutive securities 3,600,000 3,000,000 3,600,000 3,000,000
Schedule of significant concentrations in revenues and accounts receivable	Percentage of Revenue: Three Months Ended June 30, 2015 2014 Customer A 64 % — % Customer B 14 % — % Customer C 12 % — % Six Months Ended June 30, 2015 2014 Customer A 50 % — % Customer B 22 % — % Customer C 15 % — % Percentage of Accounts Receivable: June 30, 2015 December 31, 2014 Customer C 100 % — %

PREPAID EXPENSES (Tables)

PREPAID EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2015
PREPAID EXPENSES [Abstract]
Schedule of prepaid expenses and other assets	June 30, 2015 December 31, 2014 Prepaid corporate finance services $ 83,290 $ — Prepaid investor relations services 6,667 121,500 Other prepaid services and fees 44,543 55,900 $ 134,500 $ 177,400

EQUITY METHOD INVESTMENTS (Tabl

EQUITY METHOD INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
EQUITY METHOD INVESTMENTS [Abstract]
Schedule of equity method investments	June 30, 2015 December 31, 2014 Lone Mountain Partners, LLC (“Lone Mountain”) – 25 $ — $ 50,000 Cannabinoid Research & Development Company Limited (“CRD”) – 50 88,000 88,000 Total equity method investments $ 88,000 $ 138,000

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	6 Months Ended
	Jun. 30, 2015
ACCRUED EXPENSES [Abstract]
Schedule of accrued expenses	June 30, 2015 December 31, 2014 Accrued consulting fees $ 110,000 $ 110,000 Accrued wages and related costs 232,868 433,963 Accrued interest expense 46,875 6,832 Accrued expenses - other 783 — Total accrued expenses $ 390,526 $ 550,795

DEFERRED REVENUE (Tables)

DEFERRED REVENUE (Tables)	6 Months Ended
	Jun. 30, 2015
DEFERRED REVENUE
Schedule of deferred revenue	June 30, 2015 December 31, 2014 Deferred revenue – WeedMD $ 653,750 $ 743,750 Deferred revenue - FoxBarry 200,000 200,000 Less – current portion (380,000 ) (500,000 ) Deferred revenue, net of current portion $ 473,750 $ 443,750

NOTES PAYABLE (Tables)

NOTES PAYABLE (Tables)	6 Months Ended
	Jun. 30, 2015
NOTES PAYABLE [Abstract]
Schedule of notes payable	June 30, 2015 December 31, 2014 Note payable - WeedMD $ 175,000 $ 175,000 Note payable – unrelated third party 600,000 600,000 Total notes payable $ 775,000 $ 775,000

STOCKHOLDERS' DEFICIT (Tables)

STOCKHOLDERS' DEFICIT (Tables)	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' DEFICIT [Abstract]
Schedule of assumptions used for valuation utilizing the Black Scholes option pricing model for fair value of each option	Stock price $ 0.70 Exercise price $ 0.70 Risk free interest rate 1.98 % Expected term (years) 10.0 Expected volatility 173 % Expected dividends 0 %
Summary of stock options outstanding	Six Months Ended June 30, 2015 Number of Shares Weighted Average Remaining Life (years) Weighted Average Exercise Price Stock options outstanding, beginning of period — — $ — Issued 600,000 10.0 0.70 Exercised — — — Expired — — — Stock options outstanding, end of period 600,000 9.5 $ 0.70 Stock options exercisable, June 30, 2015 600,000 9.5 $ 0.70
Schedule of assumptions on the date of valuation utilizing the Black Scholes option pricing model for fair value of each warrants	Stock price $ 1.59 Exercise price $ 3.00 Risk free interest rate 1.05 % Expected term (years) 2.6 Expected volatility 183 % Expected dividends 0 %
Summary of share warrants outstanding	Six Months Ended June 30, 2015 Number of Shares Weighted Average Remaining Life (years) Weighted Average Exercise Price Warrants outstanding, beginning of period 3,170,044 1.3 $ 11.52 Issued — — — Exercised — — — Repurchased and cancelled (170,044 ) 2.5 3.00 Expired — — — Warrants outstanding, end of period 3,000,000 0.8 $ 12.00 Warrants exercisable, June 30, 2015 3,000,000 0.8 $ 12.00

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2015
SHARE-BASED COMPENSATION [Abstract]
Schedule of share-based compensation expense	Three Months Ended June 30, 2015 2014 Share-based compensation expense – amortization of shares issued for prepaid services $ 142,310 $ — Share-based compensation expense – accrual of estimated share-based awards 105,000 — $ 247,310 $ — Six Months Ended June 30, 2015 2014 Share-based compensation expense – shares issued for services $ 42,600 $ — Share-based compensation expense – amortization of shares issued for prepaid services 208,747 — Share-based compensation expense – accrual of estimated share-based awards 210,000 — $ 461,347 $ —

RELATED PARTY TRANSACTIONS (Tab

RELATED PARTY TRANSACTIONS (Tables)	6 Months Ended
	Jun. 30, 2015
RELATED PARTY TRANSACTIONS [Abstract]
Schedule of amounts due from related parties	June 30, 2015 December 31, 2014 Affiliated customer $ — $ 3,112 Lone Mountain — 40,900 CRD 5,000 — Total due from related parties $ 5,000 $ 44,012

DISCONTINUED OPERATIONS (Tables

DISCONTINUED OPERATIONS (Tables)	6 Months Ended
	Jun. 30, 2015
DISCONTINUED OPERATIONS [Abstract]
Schedule of Loss from Discontinued Operations	Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Revenues $ — $ — $ — $ 20,684 Operating expenses: Selling, general and administrative — — — 63,872 Loss on disposal of assets — — — 15,704 Total operating expenses — — — 79,576 Loss from discontinued operations, before income taxes — — — (58,892 ) Provision for income taxes — — — — Loss from discontinued operations, net of income taxes $ — $ — $ — $ (58,892 )

BUSINESS ORGANIZATION AND NAT32

BUSINESS ORGANIZATION AND NATURE OF OPERATIONS (Details)	Mar. 19, 2014	Mar. 31, 2014shares	Jun. 30, 2015shares	Dec. 31, 2014shares	Jun. 30, 2014USD ($)	Mar. 26, 2014shares
BUSINESS ORGANIZATION AND NATURE OF OPERATIONS [Abstract]
Stock split ratio	0.25
Amount of payable owed to former officer and director, exchanged for assets sold | $					$ 15,000
Number of common shares issued in exchange for certain intellectual property		38,690,000
Total number of common shares previously outstanding, cancelled during period						41,690,000
Common stock, shares outstanding			44,857,500	44,020,000		43,620,000

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)	6 Months Ended
	Jun. 30, 2015USD ($)Item	Jun. 30, 2014USD ($)	Dec. 31, 2014USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Cash equivalents
Allowance for doubtful accounts	$ 16,625
Bad debt expense	16,625
Shipping and handling costs	1,013
Advertising Costs	$ 1,500
Number of operating segment | Item	1
Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	3 years
Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives	5 years

SUMMARY OF SIGNIFICANT ACCOUN34

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Intangible Assets) (Details)	6 Months Ended
	Jun. 30, 2015
Minimum [Member]
Intangible Assets [Line Items]
Estimated useful life	10 years
Maximum [Member]
Intangible Assets [Line Items]
Estimated useful life	20 years

SUMMARY OF SIGNIFICANT ACCOUN35

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of anti-dilutive securities) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	3,600,000	3,000,000	3,600,000	3,000,000
Warrants to purchase common stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	3,000,000	3,000,000	3,000,000	3,000,000
Stock options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted net loss per share	600,000		600,000

SUMMARY OF SIGNIFICANT ACCOUN36

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Schedule of concentration of credit risk) (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Revenue [Member] | Customer A [Member]
Concentration Risk [Line Items]
Concentration risk percentage	64.00%		50.00%
Revenue [Member] | Customer B [Member]
Concentration Risk [Line Items]
Concentration risk percentage	14.00%		22.00%
Revenue [Member] | Customer C [Member]
Concentration Risk [Line Items]
Concentration risk percentage	12.00%		15.00%
Accounts Receivable [Member] | Customer C [Member]
Concentration Risk [Line Items]
Concentration risk percentage			100.00%

GOING CONCERN (Details)

GOING CONCERN (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
GOING CONCERN [Abstract]
Net loss (income)	$ 320,951	$ 494,850	$ 1,656,851	$ 633,220
Net cash used in operating activities			287,800	$ 594,870
Working capital deficit	1,506,644		1,506,644
Accumulated deficit	$ 4,281,818		$ 4,281,818		$ 2,624,967

INVESTMENTS IN NON-MARKETABLE38

INVESTMENTS IN NON-MARKETABLE EQUITY SECURITIES (Narrative) (Details)	Dec. 09, 2014shares	Jun. 09, 2014shares	Jun. 30, 2015USD ($)$ / shares	Jun. 30, 2015CAD / shares	Dec. 31, 2014USD ($)
Schedule of Cost-method Investments [Line Items]
Investments in non-marketable equity securities			$ 593,750		$ 593,750
WeedMD RX Inc. (''WMD'') [Member]
Schedule of Cost-method Investments [Line Items]
Common shares received in exchange for future consulting services and use of our intellectual property | shares		1,187,500
Warrants received in exchange for future consulting services and use of our intellectual property | shares		3,000,000
Equity investment		4.29%
Common shares, price per share | (per share)			$ 0.50	CAD 0.50
Investments in non-marketable equity securities			$ 593,750
Warrants expired | shares	3,000,000
Loss on investment in non-marketable equity securities			$ 300,000

PREPAID EXPENSES (Details)

PREPAID EXPENSES (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
PREPAID EXPENSES [Abstract]
Prepaid corporate finance services	$ 83,290
Prepaid investor relations services	6,667	$ 121,500
Other prepaid services and fees	44,543	55,900
Total prepaid expenses	$ 134,500	$ 177,400

EQUITY METHOD INVESTMENTS (Sche

EQUITY METHOD INVESTMENTS (Schedule of equity method investments) (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014	Aug. 15, 2014	Aug. 14, 2014
Schedule of Equity Method Investments [Line Items]
Equity method investments	$ 88,000	$ 138,000
Lone Mountain [Member]
Schedule of Equity Method Investments [Line Items]
Interest owned (as a percentage)	25.00%			25.00%
Equity method investments		50,000		$ 50,000
CRD [Member]
Schedule of Equity Method Investments [Line Items]
Interest owned (as a percentage)	50.00%		50.00%
Equity method investments	$ 88,000	$ 88,000	$ 88,000

EQUITY METHOD INVESTMENTS (Narr

EQUITY METHOD INVESTMENTS (Narrative) (Details) - USD ($)	Aug. 15, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Aug. 14, 2014
Schedule of Equity Method Investments [Line Items]
Equity method investments		$ 88,000		$ 88,000	$ 138,000
Due from related parties		5,000		5,000	44,012
Equity in net loss of unconsolidated affiliate		$ (40,900)		$ (90,900)
Lone Mountain [Member]
Schedule of Equity Method Investments [Line Items]
Interest acquired (as a percentage)		25.00%		25.00%			25.00%
Equity method investments					50,000		$ 50,000
Operating Losses				$ 400,000
Advances to affiliate					40,900
Due from related parties					40,900
Equity in net loss of unconsolidated affiliate				$ 90,900
CRD [Member]
Schedule of Equity Method Investments [Line Items]
Interest acquired (as a percentage)	50.00%	50.00%		50.00%
Equity method investments	$ 88,000	$ 88,000		$ 88,000	$ 88,000
Shares of common stock issuable for acquisition of interest	40,000
Common stock not yet issued		$ 88,000		$ 88,000

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
ACCRUED EXPENSES [Abstract]
Accrued consulting fees	$ 110,000	$ 110,000
Accrued wages and related costs	232,868	433,963
Accrued interest expense	46,875	$ 6,832
Accrued expenses - other	783
Total accrued expenses	$ 390,526	$ 550,795

DEFERRED REVENUE (Details)

DEFERRED REVENUE (Details) - USD ($)	Jun. 09, 2014	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014
Deferred Revenue Arrangement [Line Items]
Less - current portion		$ (380,000)	$ (380,000)	$ (500,000)
Deferred revenue, net of current portion		473,750	473,750	443,750
WeedMD [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue		653,750	653,750	743,750
Less - current portion		(180,000)	(180,000)
Common shares received in exchange for future consulting services and use of our intellectual property	1,187,500
Warrants received in exchange for future consulting services and use of our intellectual property	3,000,000
Fair value of securities recorded as deferred revenue	$ 893,750
Deferred revenue recognized per month			15,000
Total deferred revenue recognized		45,000	90,000	$ 150,000
Initial revenue recognized period				3 years
FoxBarry [Member]
Deferred Revenue Arrangement [Line Items]
Deferred revenue		200,000	200,000	$ 200,000
Less - current portion		$ (200,000)	$ (200,000)

NOTES PAYABLE (Schedule of Note

NOTES PAYABLE (Schedule of Notes Payable) (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Short-term Debt [Line Items]
Notes payable	$ 775,000	$ 775,000
Note payable [Member] | WeedMD [Member]
Short-term Debt [Line Items]
Notes payable	175,000	175,000
Note payable [Member] | Unrelated third party [Member]
Short-term Debt [Line Items]
Notes payable	$ 600,000	$ 600,000

NOTES PAYABLE (Narrative) (Deta

NOTES PAYABLE (Narrative) (Details) - USD ($)	Dec. 18, 2014	Jun. 30, 2015	Jun. 30, 2015	Dec. 31, 2014	Jul. 07, 2014
Short-term Debt [Line Items]
Accrued interest payable		$ 46,875	$ 46,875	$ 6,832
Note payable [Member] | WeedMD [Member]
Short-term Debt [Line Items]
Debt instrument, face amount					$ 175,000
Debt instrument, interest rate					5.00%
Interest expense		2,181	4,339
Accrued interest payable		8,606	8,606	4,267
Note payable [Member] | Unrelated third party [Member]
Short-term Debt [Line Items]
Debt instrument, face amount	$ 600,000
Debt instrument, interest rate	12.00%
Default rate of interest under the note	18.00%
Debt issuance costs	$ 13,500
Interest expense		17,951	35,704
Accrued interest payable		$ 38,269	$ 38,269	$ 2,565

STOCKHOLDERS' DEFICIT (Stock Op

STOCKHOLDERS' DEFICIT (Stock Options) (Details) - USD ($)	Jan. 09, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Stock Options [Line Items]
Issuance of stock options		$ 417,664
Stock options [Member]
Stock Options [Line Items]
Number of shares awarded		600,000
Stock options [Member] | Stock Incentive Plan2014 [Member]
Stock Options [Line Items]
Fair value of option (in dollars per share)	$ 0.70
Vesting period	10 years
Issuance of stock options				$ 417,664
Options granted				600,000
Blackmon [Member] | Stock options [Member] | Stock Incentive Plan2014 [Member]
Stock Options [Line Items]
Number of shares awarded	200,000
Verzura [Member] | Stock options [Member] | Stock Incentive Plan2014 [Member]
Stock Options [Line Items]
Number of shares awarded	200,000
Ruby [Member] | Stock options [Member] | Stock Incentive Plan2014 [Member]
Stock Options [Line Items]
Number of shares awarded	200,000

STOCKHOLDERS' DEFICIT (Schedule

STOCKHOLDERS' DEFICIT (Schedule of Assumptions used for Valuation Utilizing the Black Scholes Option Pricing Model for Fair Value of Each Option) (Details) - Jun. 30, 2015 - Stock options [Member] - $ / shares	Total
Fair value Assumptions [Line Items]
Stock price (in dollars per share)	$ 0.70
Exercise price (in dollars per share)	$ 0.70
Risk free interest rate (as a percent)	1.98%
Expected term (years)	10 years
Expected volatility (as a percent)	173.00%
Expected dividends (as a percent)	0.00%

STOCKHOLDERS' DEFICIT (Summary

STOCKHOLDERS' DEFICIT (Summary of Stock Options Outstanding) (Details) - Stock options [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Number of Shares
Stock options outstanding, beginning of period (in shares)
Issued (in shares)	600,000
Exercised (in shares)
Expired (in shares)
Stock options outstanding, end of period (in shares)	600,000
Stock options exercisable (in shares)	600,000
Weighted Average Remaining Life
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	9 years 6 months
Issued	10 years
Exercised
Expired
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2	9 years 6 months
Stock options exercisable	9 years 6 months
Weighted Average Exercise Price
Stock options outstanding, beginning of period (in dollars per share)
Issued (in dollars per share)	$ 0.70
Exercised (in dollars per share)
Expired (in dollars per share)
Stock options outstanding, end of period (in dollars per share)	$ 0.70
Stock options exercisable (in dollars per share)	$ 0.70

STOCKHOLDERS' DEFICIT (Common S

STOCKHOLDERS' DEFICIT (Common Stock Issued For Services and Warrants) (Details) - USD ($)	Apr. 23, 2015	Mar. 02, 2015	Feb. 10, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Stockholders Equity [Line Items]
Loss on settlement of disputed terms of warrant						$ (768,602)
Warrants cancelled						(218,788)
Issuance of Stock and Warrants for Services or Claims						$ 42,600
Number of Shares
Warrants outstanding, beginning of period (in shares)						3,170,044
Issued (in shares)
Exercised (in shares)
Repurchased and cancelled (shares)						(170,044)
Expired (in shares)
Warrants outstanding, end of period (in shares)				3,000,000		3,000,000		3,170,044
Warrants exercisable (in shares)				3,000,000		3,000,000
Weighted Average Remaining Life (years)
ClassOfWarrantsOrRightsOutstandingWeightedAverageRemainingContractualTerm						9 months 18 days		1 year 3 months 18 days
Issued
Exercised
Repurchased and cancelled						2 years 6 months
Expired
ClassOfWarrantsOrRightsOutstandingWeightedAverageRemainingContractualTerm						9 months 18 days		1 year 3 months 18 days
Warrants exercisable						9 months 18 days
Weighted Average Exercise Price
Warrants outstanding, beginning of period (in dollars per share)						$ 11.52
Issued (in dollars per share)
Exercised (in dollars per share)
Repurchased and cancelled (in dollars per share)						$ 3
Expired (in dollars per share)
Warrants outstanding, end of period (in dollars per share)				$ 12		$ 12		$ 11.52
Warrants exercisable (in dollars per share)				$ 12		$ 12
Independent Contractor [Member]
Stockholders Equity [Line Items]
Number of shares of common stock issued for services		30,000
Value of shares of common stock issued for services		$ 42,600
Issuance of Stock and Warrants for Services or Claims		$ 42,600
Accounting Service Provider [Member]
Stockholders Equity [Line Items]
Number of shares of common stock issued for services	60,000
Value of shares of common stock issued for services	$ 47,400
Issuance of Stock and Warrants for Services or Claims				$ 26,998		$ 41,356
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized				6,044		$ 6,044
Investment Banking Service Provider [Member]
Stockholders Equity [Line Items]
Amortization term						4 months
Number of shares of common stock issued for services	126,500
Value of shares of common stock issued for services	$ 99,935
Issuance of Stock and Warrants for Services or Claims				33,312		$ 33,312
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized				$ 66,623		$ 66,623
Warrant [Member]
Stockholders Equity [Line Items]
Fair value of warrants			$ 218,788
Typenex Co Investment Llc [Member]
Stockholders Equity [Line Items]
Number of shares of common stock issued			621,000
Value of shares of common stock issued			$ 987,390
Typenex Co Investment Llc [Member] | Warrant [Member]
Stockholders Equity [Line Items]
Number of warrants repurchased			170,044
Loss on settlement of disputed terms of warrant			$ (768,602)
Warrants cancelled			$ 218,788

STOCKHOLDERS' DEFICIT (Schedu50

STOCKHOLDERS' DEFICIT (Schedule of Assumptions on Date of Valuation Utilizing Black Scholes Option Pricing Model for Fair Value of Each Warrants) (Details) - Feb. 10, 2015 - Warrant [Member] - $ / shares	Total
Warrants [Line Items]
Warrants price (on dollars per shares)	$ 1.29
Stock price (in dollars per share)	1.59
Exercise price (in dollars per share)	$ 3
Risk free interest rate (as a percent)	1.05%
Expected term (years)	2 years 7 months 6 days
Expected volatility (as a percent)	183.00%
Expected dividends (as a percent)	0.00%

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
SHARE-BASED COMPENSATION [Abstract]
Share-based compensation expense - shares issued for services			$ 42,600
Share-based compensation expense - amortization of shares issued for prepaid services	$ 142,310		208,747
Share-based compensation expense - accrual of estimated share-based awards	105,000		210,000
Share-based compensation	$ 247,310		$ 461,347

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	May. 06, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Long-term Purchase Commitment [Line Items]
Research and development			$ 66,053	$ 329	$ 76,053
Research and Development Arrangement [Member]
Long-term Purchase Commitment [Line Items]
Consultancy agreement, term	6 months
Consultancy agreement, initial payment	$ 50,000
Consultancy agreement, additional payments	$ 50,000
Shares issued for consultancy agreement	100,000
Research and development			$ 50,000		$ 50,000
Accrued expenses		$ 110,000		110,000		$ 100,000
Total commitment				$ 200,000
Percentage of completion		80.00%		80.00%
Costs recognized		$ 160,000		$ 160,000

RELATED PARTY TRANSACTIONS (Det

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Related party transaction [Line Items]
Total due from related parties	$ 5,000	$ 44,012
Affiliated customer [Member]
Related party transaction [Line Items]
Total due from related parties		3,112
Lone Mountain [Member]
Related party transaction [Line Items]
Total due from related parties		$ 40,900
CRD [Member]
Related party transaction [Line Items]
Total due from related parties	$ 5,000

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
DISCONTINUED OPERATIONS [Abstract]
Amount of payable owed to former officer and director, exchanged for assets sold		$ 15,000		$ 15,000
Revenues				20,684
Operating expenses:
Selling, general and administrative				63,872
Loss on disposal of assets				15,704
Total operating expenses				79,576
Loss from discontinued operations, before income taxes				$ (58,892)
Provision for income taxes
Loss from discontinued operations, net of income taxes				$ (58,892)

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details)	Jun. 30, 2015	Aug. 14, 2014
Lone Mountain [Member]
Subsequent Event [Line Items]
Equity investment	25.00%	25.00%