Rego Payment Architectures (RPMT) 10-Q 10 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 10, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Entity Registrant Name	VIRTUAL PIGGY, INC.
Entity Central Index Key	1,437,283
Current Fiscal Year End Date	--12-31
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,015
Document Period End Date	Jun. 30, 2015
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Common Stock, Shares Outstanding		119,267,626

Balance Sheets

Balance Sheets - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 409,712	$ 1,652,392
Accounts receivable	6,544	7,607
Prepaid expenses	412,320	591,929
TOTAL CURRENT ASSETS	828,576	2,251,928
PROPERTY AND EQUIPMENT
Computer equipment	115,522	109,978
Furniture and fixtures	79,634	79,634
Leasehold improvements	81,659	81,659
Gross property and equipment	276,815	271,271
Less: accumulated depreciation	(131,465)	(91,742)
Total property and equipment	145,350	179,529
OTHER ASSETS
Deposit	39,230	46,483
Patents and trademarks, net of accumulated amortization of $93,566 and $75,292	645,997	636,230
Total other assets	685,227	682,713
TOTAL ASSETS	1,659,153	3,114,170
CURRENT LIABILITIES
Accounts payable and accrued expenses	1,024,614	829,372
Deferred revenue	10,361	2,685
Preferred stock dividend liability	1,255,799	$ 723,649
Notes payable-stockholders	2,940,000
TOTAL CURRENT LIABILITIES	$ 5,230,774	$ 1,555,706
CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, $.0001 par value; 230,000,000 shares authorized;119,267,626 and 119,117,626 shares issued and outstanding at June 30, 2015 and December 31, 2014	$ 11,927	$ 11,912
Additional paid in capital	54,213,663	53,458,324
Accumulated deficit	(57,905,265)	(52,060,191)
Cumulative translation adjustment	108,040	148,405
STOCKHOLDERS' EQUITY (DEFICIT)	(3,571,621)	1,558,464
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	1,659,153	3,114,170
Preferred stock, $.0001 par value; 2,000,000 preferred shares authorized; 195,000 preferred shares Series A authorized; 108,600 shares issued and outstanding at June 30, 2015 and December 31, 2014
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock	11	11
Preferred stock, $.0001 par value; 2,000,000 preferred shares authorized; 222,222 preferred shares Series B authorized; 28,378 shares issued and outstanding at June 30, 2015 and December 31, 2014
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock	$ 3	$ 3

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Patents and trademarks, accumulated amortization	$ 93,566	$ 75,292
Preferred stock, par value per share	$ 0.0001	$ 0.0001
Preferred stock, shares authorized	2,000,000	2,000,000
Common stock, par value per share	$ 0.0001	$ 0.0001
Common stock, shares authorized	230,000,000	230,000,000
Common stock, shares issued	119,267,626	119,117,626
Common stock, shares outstanding	119,267,626	119,117,626
Series A preferred shares [Member]
Preferred stock, shares authorized	195,000	195,000
Preferred stock, shares issued	108,600	108,600
Preferred stock, shares outstanding	108,600	108,600
Series B preferred shares [Member]
Preferred stock, shares authorized	222,222	222,222
Preferred stock, shares issued	28,378	28,378
Preferred stock, shares outstanding	28,378	28,378

Statements of Operations

Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statements of Operations [Abstract]
SALES	$ 5,277	$ 1,253	$ 9,386	$ 1,678
OPERATING EXPENSES
Sales and marketing	509,039	1,490,016	1,398,276	2,687,428
Product development	505,924	818,598	1,096,793	1,704,572
Integration and customer support	58,872	188,102	120,710	375,141
General and administrative	798,833	1,284,536	2,291,085	2,501,839
Strategic consulting	203,500	280,048	338,500	280,048
Total operating expenses	2,076,168	4,061,300	5,245,364	7,549,028
NET OPERATING LOSS	(2,070,891)	(4,060,047)	(5,235,978)	(7,547,350)
OTHER INCOME (EXPENSE)
Interest income	150	2,439	299	3,941
Interest expense	$ (62,998)	(285)	$ (77,245)	(94,565)
Change in fair value of embedded derivative liability		2,184,750		(625)
Total other income (expense)	$ (62,848)	2,186,904	$ (76,946)	(91,249)
NET LOSS	$ (2,133,739)	(1,873,143)	$ (5,312,924)	(7,638,599)
Less: Deemed dividend distributions		$ (3,489,000)		$ (5,855,419)
Less: Accrued preferred dividends	$ (267,545)		$ (532,150)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (2,401,284)	$ (5,362,143)	$ (5,845,074)	$ (13,494,018)
BASIC AND DILUTED NET LOSS PER COMMON SHARE	$ (0.02)	$ (0.05)	$ (0.05)	$ (0.12)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	119,167,626	117,041,436	119,142,626	115,929,864

Statements of Comprehensive Los

Statements of Comprehensive Loss - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Statements of Comprehensive Loss [Abstract]
NET LOSS	$ (2,133,739)	$ (1,873,143)	$ (5,312,924)	$ (7,638,599)
OTHER COMPREHENSIVE INCOME
Foreign Currency Translation Adjustments, net of tax	(154,840)	(27,472)	(40,365)	(45,052)
TOTAL OTHER COMPREHENSIVE INCOME, net of tax	(154,840)	(27,472)	(40,365)	(45,052)
COMPREHENSIVE LOSS	$ (2,288,579)	$ (1,900,615)	$ (5,353,289)	$ (7,683,651)

Statement of Changes in Stockho

Statement of Changes in Stockholders' Equity (Deficit) - 6 months ended Jun. 30, 2015 - USD ($)	Total	Preferred Stock Series A [Member]	Preferred Stock Series B [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Cumulative Translation Adjustment [Member]
Balance at Dec. 31, 2014	$ 1,558,464	$ 11	$ 3	$ 11,912	$ 53,458,324	$ (52,060,191)	$ 148,405
Balance, shares at Dec. 31, 2014		108,600	28,378	119,117,626
Revaluation of options and warrants	195,463				195,463
Issuance of options for services	279,976				279,976
Issuance of stock for services	279,915			$ 15	$ 279,900
Issuance of stock for services, shares				150,000
Accrued preferred dividend	(532,150)					$ (532,150)
Net loss	(5,312,924)					$ (5,312,924)
Cumulative translation adjustment	(40,365)						$ (40,365)
Balance at Jun. 30, 2015	$ (3,571,621)	$ 11	$ 3	$ 11,927	$ 54,213,663	$ (57,905,265)	$ 108,040
Balance, shares at Jun. 30, 2015		108,600	28,378	119,267,626

Statements of Cash Flows

Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (5,312,924)	$ (7,638,599)
Adjustments to reconcile net loss to net cash used in operating activities
Fair value of options issued in exchange for services	279,976	552,115
Fair value of stock issued in exchange for services	279,915	190,500
Revaluation of options and warrants	$ 195,463	136,663
Change in fair value of embedded derivative liability		625
Accretion of discount on notes payable		86,087
Depreciation and amortization	$ 59,250	37,728
Loss on abandonment of patents and disposal of fixed assets	895	122,661
(Increase) decrease in assets
Accounts receivable	$ 1,063	(264)
Insurance receivable		4,325
Prepaid expenses	$ 179,609	(266,119)
Deposits	7,253	(194,892)
Increase (decrease) in liabilities
Accounts payable, accrued expenses and litigation settlement	195,244	$ (1,025,441)
Deferred revenue	7,676
Net cash used in operating activities	(4,106,580)	$ (7,994,611)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment	(7,693)	(124,045)
Patent and trademark costs	(28,042)	(98,052)
Net cash used in investing activities	(35,735)	$ (222,097)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from note payable - stockholders	$ 2,940,000
Repayment of note payable - stockholders		$ (1,000,000)
Proceeds from issuance of preferred stock and warrants		10,860,000
Proceeds from exercise of options		75,000
Proceeds from exercise of warrants		2,660,429
Stock issuance costs		(171,327)
Net cash provided by financing activities	$ 2,940,000	12,424,102
EFFECT OF EXCHANGE RATE ON CASH	(40,365)	(45,052)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(1,242,680)	4,162,342
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	1,652,392	1,752,461
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 409,712	5,914,803
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during year for: Interest		$ 8,478
Cash paid during year for: Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Fair value of beneficial conversion value as discount against Preferred Stock		$ 5,137,825
Fair value of warrant liability as discount against Preferred Stock		5,137,825
Accretion of discount on preferred stock as deemed distribution		5,137,825
Deemed dividend distribution in conjunction with warrant exchange		$ 717,594
Accrued preferred dividend	$ 532,150
Fair value of stock issued for prepaid expenses		$ 190,500

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 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of the Business Virtual Piggy, Inc. (the “Company”) was incorporated in the state of Delaware on February 11, 2008. Virtual Piggy is a technology company that delivers an online ecommerce solution for the family. Its system allows parents and their children to manage, allocate funds and track their expenditures, savings and charitable giving online. Its system is designed to allow the child to transact online without a credit card by gaining the parent's permission ahead of time and allowing the parent to set up the rules of use and authorized spending limits. The Company's principal office is located in Hermosa Beach, California. Virtual Piggy's technology, branded as “Oink,” enables online businesses to interact and transact with the “Under 18” market in a manner consistent with the Children's Online Privacy Protection Act (“COPPA”) and other similar international children's privacy laws. Oink was launched in the US in 2012 and in the European market in 2013. The Company secures agreements with merchants, retail and gaming e-commerce platforms and payment processors, which allows it to offer its Oink service to its user base. A number of retailers and gaming companies are using Oink with their e-commerce systems and the Company is in the process of integrating the other signed retailers and gaming companies. The Company is seeking to add merchants which would provide more opportunities for its registered systems users to purchase products online. Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The financial statements should be read in conjunction with the financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as amended, as filed with the Securities and Exchange Commission (the “SEC”). Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. The Company's activities are subject to significant risks and uncertainties, including failing to secure additional funding to continue operations and operationalize the Company's current technology before another company develops similar technology to compete with the Company. It is management's opinion that all adjustments necessary for the fair statement of the results for interim periods have been made, and disclosures have been made so as to not make such financial information misleading. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Comprehensive Income The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220 in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The Company has one item of other comprehensive income, consisting of a foreign translation adjustment. Fair Value of Financial Instruments The Company's financial instruments consist of accounts receivable, accounts payable and accrued expenses and notes payable. The carrying value of accounts receivable, accounts payable and accrued expenses approximate their fair value because of their short maturities. The Company believes the carrying amount of its notes payable approximate fair value based on rates and other terms currently available to the Company for similar debt instruments. Foreign Currency Translation The functional currency of operations outside the U.S. is British Pounds. Concentration of Credit Risk Involving Cash The Company may have deposits with a financial institution which at times exceed Federal Deposit Insurance Corporation (“FDIC”) coverage. The Company has not experienced any losses from maintaining cash accounts in excess of federally insured limits. Cash and Cash Equivalents For purposes of reporting cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and certificates of deposit and commercial paper with original maturities of 90 days or less to be cash or cash equivalents. Property and Equipment Property, equipment and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Maintenance and repairs of property are charged to operations, and major improvements are capitalized. Upon retirement, sale, or other disposition of property and equipment, the costs and accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is included in operations. The cost of leasehold improvements is amortized over the lesser length of the related leases or the estimated useful lives of the assets. Depreciation of property and equipment was $ 20,738 11,899 40,976 20,288 The Company's depreciation and amortization policies on property and equipment are as follows: Useful life (in years) Computer equipment 3 5 Furniture and fixtures 7 Leasehold improvements Term of lease Patents and Trademarks The Company has three issued patents with the United States Patent and Trademark Office (“USPTO”), entitled “System and Method for Verifying the Age of an Internet User,” “System and Method for Virtual Piggy Bank Wish-List,” and “System and Method for Virtual Piggy Bank.” The Company has filed for one provisional U.S. patent application, as well as twelve non-provisional U.S. patent applications, four of which are pending, three of which have been allowed, and five of which have been abandoned. Additionally, the Company has been granted two patents in Germany, entitled “Virtual Piggy Bank” and “Parent Match.” The Company also has patents pending in Australia, Brazil, Canada (“Parent Match” has been allowed), Europe, and the Republic of Korea under the Patent Cooperation Treaty (“PCT”). Costs associated with the registration and legal defense of the patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents. Long-Lived Assets The Company evaluates the recoverability of its long-lived assets in accordance with FASB ASC 360 “Property, Plant, and Equipment.” The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets are measured by a comparison of the carrying amount of an asset to future cash flows expected to be generated by the asset, undiscounted and without interest or independent appraisals. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Revenue Recognition In accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition Income Taxes The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. Tax years from 2011 through 2014 remain subject to examination by major tax jurisdictions. Stock-based Payments The Company accounts for stock-based compensation under the provisions of FASB ASC 718, Compensation—Stock Compensation Non-employee equity based payments that do not vest immediately upon grant are recorded as an expense over the service period, as if the Company had paid cash for the services. At the end of each financial reporting period, prior to vesting or prior to the completion of the services, the fair value of the equity based payments will be re-measured and the non-cash expense recognized during the period will be adjusted accordingly. Since the fair value of equity based payments granted to non-employees is subject to change in the future, the amount of the future expense will include fair value re-measurements until the equity based payments are fully vested or the service completed. Advertising Costs Advertising costs are expensed as incurred. Advertising costs were $ 25,058 123,646 134,517 175,658 Product Development Costs In accordance with FASB ASC 730, research and development costs are expensed when incurred. Research and development costs were $ 505,924 818,598 1,096,794 1,704,572 Loss Per Share The Company follows FASB ASC 260 when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for each of the quarters presented, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same. Start-up Costs In accordance with FASB ASC 720 , Segment Information The Company is organized and operates as one operating segment. In accordance with FASB ASC 280, Segment Reporting Recently Adopted Accounting Pronouncements As of June 30, 2015 and for the three and six months then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company's financial statements. Recently Issued Accounting Pronouncements Not Yet Adopted As of June 30, 2015, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company s financial statements through 2016. Reclassifications Certain amounts in the 2014 financial statements have been reclassified in order for them to be in conformity with the 2015 presentation.

MANAGEMENT PLANS

MANAGEMENT PLANS	6 Months Ended
	Jun. 30, 2015
MANAGEMENT PLANS [Abstract]
MANAGEMENT PLANS	NOTE 2 – MANAGEMENT PLANS The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has incurred significant losses and experienced negative cash flow from operations since inception. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Since inception, the Company has focused on developing and implementing its business plan. The Company believes that its existing cash resources will not be sufficient to sustain operations during the next twelve months. The Company's current monetization model is to derive a percentage of all revenues generated by online merchants using the Oink service. Merchants are billed at the end of each month for all transactions that have been processed by the Company on their behalf in the prior month. As the merchant base and consumer base grows, and as the trend to higher online spending levels continues, the Company expects to generate additional revenue to help support operations. As of August 7, 2015, the Company had a cash position of approximately 0.5 Based upon the current cash position, management believes the Company has the capability to finance its operations through September 30, 2015

PATENTS AND TRADEMARKS

PATENTS AND TRADEMARKS	6 Months Ended
	Jun. 30, 2015
PATENTS AND TRADEMARKS [Abstract]
PATENTS AND TRADEMARKS	NOTE 3 – PATENTS AND TRADEMARKS The Company continues to apply for patents and purchased the Oink trademark in November 2013. Accordingly, costs associated with the registration of the patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents (20 years). The trademark is also being amortized on a straight-line basis over its estimated useful life of 20 645,997 636,230 9,794 7,311 for the three months ended June 30, 2015 and 2014 and were $ 18,274 17,440

NOTES PAYABLE-STOCKHOLDERS

NOTES PAYABLE-STOCKHOLDERS	6 Months Ended
	Jun. 30, 2015
NOTES PAYABLE-STOCKHOLDERS [Abstract]
NOTES PAYABLE-STOCKHOLDERS	NOTE 4 – NOTES PAYABLE-STOCKHOLDERS On December 27, 2013, the Company entered into two identical agreements with two stockholders that each include a note payable in the amount of $ 500,000 37,500 0.01 50,000 1.00 10 a. 5 days after the sale of the Company's securities in one transaction or series of related transactions, which sale resulted in gross proceeds to the Company of at least $ 3 b. Upon (i) the sale or other disposition of all or substantially all of the Company's assets or (ii) the acquisition of the Company by another entity by means of any transaction or series of related transactions to which the Company is a party other than a transaction or series of transactions in which the holders of the voting securities of the Company outstanding immediately prior to such transaction continue to retain, as a result of shares in the Company held by such holders prior to such transaction, at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such transaction or series of transactions; or c. February 28, 2014. The warrants were valued at $ 92,470 22.2 .4 2 Recognition On March 6, 2015, the Company, pursuant to a Securities Purchase Agreement (the “Purchase Agreement”), issued $ 2,000,000 10 On May 11, 2015, the Company issued an additional $ 940,000 The Notes are convertible by the holders, at any time, into shares of the Company's Series B Preferred Stock at a conversion price of $ 90.00 100 0.90 The Notes are recorded as a current liability as of June 30, 2015. Interest accrued on the notes during the three and six months 62,998 $ 77,245 Total interest expense for the three and six months ended June 30, 2015 was 62,998 77,245 285 94,565

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2015
INCOME TAXES [Abstract]
INCOME TAXES	NOTE 5 – INCOME TAXES Income tax expense was $ 0 As of December 31, 2014, the Company had net operating loss carry forwards approximating $ 48 As of January 1, 2015, the Company had no no no There is no income tax benefit for the losses for the six months ended June 30, 2015 and 2014, since management has determined that the realization of the net tax deferred asset is not assured and has created a valuation allowance for the entire amount of such benefits.

LITIGATION

LITIGATION	6 Months Ended
	Jun. 30, 2015
LITIGATION [Abstract]
LITIGATION	NOTE 6 – LITIGATION On April 10, 2014, the Company was named in a law suit in superior court for the State of California filed by a former employee alleging wrongful termination and seeking monetary damages and legal fees. During the three months ended September 30, 2014, the matter was settled in mediation.

CONVERTIBLE PREFERRED STOCK

CONVERTIBLE PREFERRED STOCK	6 Months Ended
	Jun. 30, 2015
CONVERTIBLE PREFERRED STOCK [Abstract]
CONVERTIBLE PREFERRED STOCK	NOTE 7 – CONVERTIBLE PREFERRED STOCK Series A Preferred Stock In January 2014, the Company, pursuant to a Securities Purchase Agreement (the “Series A Purchase Agreement”), issued in a private placement to certain accredited investors, 50,450 100 two 5,045,000 1.00 5,045,000 8 141,000 In accordance with FASB ASC 480 and 815, the Series A Preferred Stock has been classified as permanent equity and was valued at $ 3,396,175 1,648,825 The conversion feature of the Series A Preferred Stock is an embedded derivative, which is classified as a liability in accordance with FASB ASC 815 and was valued in accordance with FASB ASC 470 as a beneficial conversion feature at a fair market value of $ 1,648,825 0 The Series A Warrants associated with the Series A Preferred Stock were also classified as equity, in accordance with FASB ASC 480-10-25. Therefore it is not necessary to bifurcate the Series A Warrants from the Series A Preferred Stock. The Series A Preferred Stock has a preference in liquidation equal to two times the Original Series A Issue Price to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 2.5 times the Original Series A Issue Price. The Series A Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series A Preferred Stock can be converted. The Series A Preferred Stock also contains customary approval rights with respect to certain matters. The conversion price of the Series A Preferred Stock is subject to anti-dilution adjustment and was subsequently reduced from $ 1.00 0.90 The Series A Preferred Stock is subject to mandatory conversion if certain registration or related requirements are satisfied and the average closing price of the Company's common stock exceeds 2.5 times the conversion price over a period of twenty consecutive trading days. On April 30, 2014, the Company sold, in a private placement to certain accredited investors, an additional 58,150 5,815,000 5,815,000 2,326,000 3,489,000 6,000 The conversion feature of the additional Series A Preferred Stock is an embedded derivative, which is classified as a liability in accordance with FASB ASC 815 and was valued in accordance with FASB ASC 470 as a beneficial conversion feature at a fair market value of $ 3,489,000 0 Series B Preferred Stock In October 2014, the Company, pursuant to a Securities Purchase Agreement (the “Series B Purchase Agreement”), issued in a private placement to certain accredited investors, 28,378 90 two 2,837,800 1.00 2,554,020 8 24,029 In accordance with FASB ASC 480 and 815, the Series B Preferred Stock has been classified as permanent equity and was valued at $ 2,178,179 375,841 The conversion feature of the Series B Preferred Stock is an embedded derivative, which is classified as a liability in accordance with FASB ASC 815 and was valued in accordance with FASB ASC 470 as a beneficial conversion feature at a fair market value of $ 375,841 0 Because the Series B Preferred Stock can be converted at any time, the embedded derivative is classified as a current liability. The Series B Warrants associated with the Series B Preferred Stock were also classified as equity, in accordance with FASB ASC 480-10-25. Therefore it is not necessary to bifurcate the Series B Warrants from the Series B Preferred Stock. The Series B Preferred Stock is pari passu with the Series A Preferred Stock and has a preference in liquidation equal to two times the Original Issue Price to be paid out of assets available for distribution prior to holders of common stock and thereafter participates with the holders of common stock in any remaining proceeds subject to an aggregate cap of 2.5 times the Original Issue Price. The Series B Preferred Stockholders may cast the number of votes equal to the number of whole shares of common stock into which the shares of Series B Preferred Stock can be converted. The Series B Preferred Stock also contains customary approval rights with respect to certain matters. The conversion price of the Series B Preferred Stock is currently $ 0.90 As of June 30, 2015, the value of the cumulative 8 1,255,799

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2015
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	NOTE 8 – STOCKHOLDERS' EQUITY Private Placements of Securities In February 2014, options and warrants to purchase 50,000 0.50 25,000 In March 2014, options and warrants to purchase 100,000 0.75 75,000 Exchange of Warrants and Deemed Dividend Effective February 7, 2014, when the market price of our common stock was $ 1.18 0.50 1.00 717,594 no 143.2 0.30 two two 2,521,143 5,042,287 Extension and Revaluation of Warrants and Options In February 2014, the Company extended the term of warrants previously granted to two of its executive officers, which included 1,142,588 0.04 100,000 0.75 two 28,663 89.3 89.5 0.33 2 In June 2014, the Company extended by one 514,286 0.75 no 99.6 0.11 one 108,000 In February 2015, the Board of Directors of the Company approved amendments extending the term of outstanding warrants to purchase in the aggregate 3,877,970 0.01 1.00 one 219,051 no 95.1 0.33 1.28 In February 2015, the Company extended options previously granted to two of its executive officers, which included 3,500,000 0.04 9,692 no 96.4 0.64 2 In April 2015, the Company extended options previously granted to an executive officer, which included 250,000 0.75 250,000 0.90 25,175 no 100.9 0.23 0.42 2 In accordance with FASB ASC 505-50, options with performance conditions should be revalued based on the modification accounting methodology described in ASC 718-20. As such the Company has revalued certain options with consultants and determined that there was a decrease in fair value of $ 58,455 no 102.9 113.50 0.64 1.63 2 5 Issuance of Restricted Shares In April, 2014, the Company issued 300,000 six 1.27 381,000 six 190,500 190,500 In November, 2014, one of the Company's executive officers voluntarily terminated his option grant of 1,000,000 2,000,000 three 0.70 1.4 116,347 231,415 During the six months ended June 30, 2015, the Company issued a consultant 150,000 0.27 0.40 0.30 48,500

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	6 Months Ended
	Jun. 30, 2015
STOCK OPTIONS AND WARRANTS [Abstract]
STOCK OPTIONS AND WARRANTS	NOTE 9 – STOCK OPTIONS AND WARRANTS During 2008, the Board of Directors (“Board”) of the Company adopted the 2008 Equity Incentive Plan (“2008 Plan”) that was approved by the shareholders. Under the 2008 Plan, the Company is authorized to grant options to purchase up to 25,000,000 June 30, 2015 , options to purchase 13,053,325 1,430,005 During 2013, the Board adopted the 2013 Equity Incentive Plan (“2013 Plan”), which was approved by stockholders at the 2013 annual meeting of stockholders. Under the 2013 Plan, the Company is authorized to grant awards of stock options, restricted stock, restricted stock units and other stock-based awards of up to an aggregate of 5,000,000 4,011,669 ,988,331 The 2008 Plan and 2013 Plan are administered by the Board or its compensation committee, which determines the persons to whom awards will be granted, the number of awards to be granted, and the specific terms of each grant, including the vesting thereof, subject to the terms of the applicable Plan. In connection with Incentive Stock Options, the exercise price of each option may not be less than 100% of the fair market value of the common stock on the date of the grant (or 110% of the fair market value in the case of a grantee holding more than 10% of the outstanding stock of the Company). Prior to January 1, 2014, volatility in all instances presented is the Company's estimate of volatility that is based on the volatility of other public companies that are in closely related industries to the Company. Beginning January 1, 2014, volatility in all instances presented is the Company's estimate of volatility that is based on the historical volatility of the Company's stock price. The following table presents the weighted-average assumptions used to estimate the fair values of the stock options granted during the six months ended June 30, 2015: Risk-free interest rate 1.22 Expected volatility 96 Expected life (in years) 4.1 Dividend yield 0 Weighted-average estimated fair value of options granted during the period $ 0.27 The following table summarizes the activities for stock options for the six months ended June 30, 2015: Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in 000's) (1) Balance as of December 31, 2014 16,670,827 $ 0.78 Granted 1,675,000 $ 0.39 Exercised - $ - Forfeited/canceled (1,649,167 ) $ 0.92 Expired (551,663 ) $ 1.85 Balance as of June 30, 2015 16,144,997 $ 0.69 2.1 $ 916 Exercisable as of June 30, 2015 13,027,480 $ 0.68 1.7 $ 910 Exercisable as of June 30, 2015 and expected to vest 16,144,997 $ 0.70 2.1 $ 916 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $ 0.30 June 30, 2015 . This table excludes the issuance of 2,000,000 During the six months ended June 30, 2015, the weighted average fair value of stock options granted during the period was $ 443,887 For the three and six months ended June 30, 2015 , the Company expensed $ 89,612 279,976 272,792 552,115 and restricted stock , respectively As of June 30, 2015, there was $ 1,882,596 and restricted stock. 2.3 The following table summarizes the activities of unvested stock options for the six months ended June 30, 2015: Unvested Stock Options Number of Weighted Weighted Weighted Unvested stock options at December 31, 2014 4,663,767 $ 0.98 $ 0.40 Granted 1,675,000 $ 0.39 $ 0.27 Cancelled/Forfeited (1,466,669 ) $ 0.87 $ 0.43 Expired - $ - $ - Vested (1,754,581 ) $ 0.93 $ 0.31 Unvested stock options at June 30, 2015 3,117,517 $ 0.75 $ 0.37 2.07 The following table summarizes the activities for warrants for the six months ended June 30, 2015: Warrants Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in 000's) (1) Balance as of December 31, 2014 26,631,410 $ 1.01 Granted - $ - Exercised - $ - Forfeited/canceled - $ - Expired (515,714 ) $ 0.50 Balance as of June 30, 2015 26,115,696 $ 1.02 0.84 $ 319 Exercisable as of June 30, 2015 and expected to vest thereafter 26,115,696 $ 1.02 0.84 $ 319 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $ 0.30 June 30, 2015 . All warrants were vested on the date of grant.

OPERATING LEASES

OPERATING LEASES	6 Months Ended
	Jun. 30, 2015
OPERATING LEASES [Abstract]
OPERATING LEASES	NOTE 10 – OPERATING LEASES Rent expense was $ 72,594 172,028 for the three months ended June 30, 2015 and 2014, and was $ 229,261 310,872 2015 $ 44,439 2016 52,701 $ 97,140

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2015
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	NOTE 11 – SUBSEQUENT EVENTS On July 20, 2015, the Company issued $ 250,200 200,200 50,000 two twenty 0.90 50,000 The Notes bear interest at a rate of ten six 1 7.5 In July 2015, 2 On July 31, 2015, the Company issued options to purchase 250,000 0.22 five 42,214 no 104.7 1.54 5

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Nature of the Business	Nature of the Business Virtual Piggy, Inc. (the “Company”) was incorporated in the state of Delaware on February 11, 2008. Virtual Piggy is a technology company that delivers an online ecommerce solution for the family. Its system allows parents and their children to manage, allocate funds and track their expenditures, savings and charitable giving online. Its system is designed to allow the child to transact online without a credit card by gaining the parent's permission ahead of time and allowing the parent to set up the rules of use and authorized spending limits. The Company's principal office is located in Hermosa Beach, California. Virtual Piggy's technology, branded as “Oink,” enables online businesses to interact and transact with the “Under 18” market in a manner consistent with the Children's Online Privacy Protection Act (“COPPA”) and other similar international children's privacy laws. Oink was launched in the US in 2012 and in the European market in 2013. The Company secures agreements with merchants, retail and gaming e-commerce platforms and payment processors, which allows it to offer its Oink service to its user base. A number of retailers and gaming companies are using Oink with their e-commerce systems and the Company is in the process of integrating the other signed retailers and gaming companies. The Company is seeking to add merchants which would provide more opportunities for its registered systems users to purchase products online.
Basis of Presentation	Basis of Presentation The accompanying unaudited financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The financial statements should be read in conjunction with the financial statements and notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2014, as amended, as filed with the Securities and Exchange Commission (the “SEC”). Operating results for the three and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. The Company's activities are subject to significant risks and uncertainties, including failing to secure additional funding to continue operations and operationalize the Company's current technology before another company develops similar technology to compete with the Company. It is management's opinion that all adjustments necessary for the fair statement of the results for interim periods have been made, and disclosures have been made so as to not make such financial information misleading.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Comprehensive Income	Comprehensive Income The Company follows Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 220 in reporting comprehensive income. Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income. The Company has one item of other comprehensive income, consisting of a foreign translation adjustment.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The Company's financial instruments consist of accounts receivable, accounts payable and accrued expenses and notes payable. The carrying value of accounts receivable, accounts payable and accrued expenses approximate their fair value because of their short maturities. The Company believes the carrying amount of its notes payable approximate fair value based on rates and other terms currently available to the Company for similar debt instruments.
Foreign Currency Translation	Foreign Currency Translation The functional currency of operations outside the U.S. is British Pounds.
Concentration of Credit Risk Involving Cash	Concentration of Credit Risk Involving Cash The Company may have deposits with a financial institution which at times exceed Federal Deposit Insurance Corporation (“FDIC”) coverage. The Company has not experienced any losses from maintaining cash accounts in excess of federally insured limits.
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of reporting cash flows, the Company considers all cash accounts, which are not subject to withdrawal restrictions or penalties, and certificates of deposit and commercial paper with original maturities of 90 days or less to be cash or cash equivalents.
Property and Equipment	Property and Equipment Property, equipment and leasehold improvements are stated at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Maintenance and repairs of property are charged to operations, and major improvements are capitalized. Upon retirement, sale, or other disposition of property and equipment, the costs and accumulated depreciation are eliminated from the accounts, and any resulting gain or loss is included in operations. The cost of leasehold improvements is amortized over the lesser length of the related leases or the estimated useful lives of the assets. Depreciation of property and equipment was $ 20,738 11,899 40,976 20,288 The Company's depreciation and amortization policies on property and equipment are as follows: Useful life (in years) Computer equipment 3 5 Furniture and fixtures 7 Leasehold improvements Term of lease
Patents and Trademarks	Patents and Trademarks The Company has three issued patents with the United States Patent and Trademark Office (“USPTO”), entitled “System and Method for Verifying the Age of an Internet User,” “System and Method for Virtual Piggy Bank Wish-List,” and “System and Method for Virtual Piggy Bank.” The Company has filed for one provisional U.S. patent application, as well as twelve non-provisional U.S. patent applications, four of which are pending, three of which have been allowed, and five of which have been abandoned. Additionally, the Company has been granted two patents in Germany, entitled “Virtual Piggy Bank” and “Parent Match.” The Company also has patents pending in Australia, Brazil, Canada (“Parent Match” has been allowed), Europe, and the Republic of Korea under the Patent Cooperation Treaty (“PCT”). Costs associated with the registration and legal defense of the patents have been capitalized and are amortized on a straight-line basis over the estimated lives of the patents.
Long-Lived Assets	Long-Lived Assets The Company evaluates the recoverability of its long-lived assets in accordance with FASB ASC 360 “Property, Plant, and Equipment.” The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets are measured by a comparison of the carrying amount of an asset to future cash flows expected to be generated by the asset, undiscounted and without interest or independent appraisals. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the asset exceeds the fair value of the assets.
Revenue Recognition	Revenue Recognition In accordance with Securities and Exchange Commission (“SEC”) Staff Accounting Bulletin (“SAB”) No. 104, Revenue Recognition
Income Taxes	Income Taxes The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. Tax years from 2011 through 2014 remain subject to examination by major tax jurisdictions.
Stock-based Payments	Stock-based Payments The Company accounts for stock-based compensation under the provisions of FASB ASC 718, Compensation—Stock Compensation Non-employee equity based payments that do not vest immediately upon grant are recorded as an expense over the service period, as if the Company had paid cash for the services. At the end of each financial reporting period, prior to vesting or prior to the completion of the services, the fair value of the equity based payments will be re-measured and the non-cash expense recognized during the period will be adjusted accordingly. Since the fair value of equity based payments granted to non-employees is subject to change in the future, the amount of the future expense will include fair value re-measurements until the equity based payments are fully vested or the service completed.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred. Advertising costs were $ 25,058 123,646 134,517 175,658
Product Development Costs	Product Development Costs In accordance with FASB ASC 730, research and development costs are expensed when incurred. Research and development costs were $ 505,924 818,598 1,096,794 1,704,572
Loss Per Share	Loss Per Share The Company follows FASB ASC 260 when reporting Earnings Per Share resulting in the presentation of basic and diluted earnings per share. Because the Company reported a net loss for each of the quarters presented, common stock equivalents, including preferred stock, stock options and warrants were anti-dilutive; therefore, the amounts reported for basic and diluted loss per share were the same.
Start-up Costs	Start-up Costs In accordance with FASB ASC 720 ,
Segment Information	Segment Information The Company is organized and operates as one operating segment. In accordance with FASB ASC 280, Segment Reporting
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements As of June 30, 2015 and for the three and six months then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company's financial statements.
Recently Issued Accounting Pronouncements Not Yet Adopted	Recently Issued Accounting Pronouncements Not Yet Adopted As of June 30, 2015, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company s financial statements through 2016.
Reclassifications	Reclassifications Certain amounts in the 2014 financial statements have been reclassified in order for them to be in conformity with the 2015 presentation.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	6 Months Ended
	Jun. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Schedule of Property and Equipment, Useful Life	Useful life (in years) Computer equipment 3 5 Furniture and fixtures 7 Leasehold improvements Term of lease

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2015
STOCK OPTIONS AND WARRANTS [Abstract]
Schedule of Weighted-average Assumptions Used to Estimate the Fair Values of Stock Options Granted	Risk-free interest rate 1.22 Expected volatility 96 Expected life (in years) 4.1 Dividend yield 0 Weighted-average estimated fair value of options granted during the period $ 0.27
Schedule of Stock Option Activity	Options Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in 000's) (1) Balance as of December 31, 2014 16,670,827 $ 0.78 Granted 1,675,000 $ 0.39 Exercised - $ - Forfeited/canceled (1,649,167 ) $ 0.92 Expired (551,663 ) $ 1.85 Balance as of June 30, 2015 16,144,997 $ 0.69 2.1 $ 916 Exercisable as of June 30, 2015 13,027,480 $ 0.68 1.7 $ 910 Exercisable as of June 30, 2015 and expected to vest 16,144,997 $ 0.70 2.1 $ 916
Summary of the activities of unvested stock options	Unvested Stock Options Number of Weighted Weighted Weighted Unvested stock options at December 31, 2014 4,663,767 $ 0.98 $ 0.40 Granted 1,675,000 $ 0.39 $ 0.27 Cancelled/Forfeited (1,466,669 ) $ 0.87 $ 0.43 Expired - $ - $ - Vested (1,754,581 ) $ 0.93 $ 0.31 Unvested stock options at June 30, 2015 3,117,517 $ 0.75 $ 0.37 2.07
Schedule of Warrant Activity	Warrants Outstanding Number of Shares Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in 000's) (1) Balance as of December 31, 2014 26,631,410 $ 1.01 Granted - $ - Exercised - $ - Forfeited/canceled - $ - Expired (515,714 ) $ 0.50 Balance as of June 30, 2015 26,115,696 $ 1.02 0.84 $ 319 Exercisable as of June 30, 2015 and expected to vest thereafter 26,115,696 $ 1.02 0.84 $ 319

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	6 Months Ended
	Jun. 30, 2015
OPERATING LEASES [Abstract]
Schedule of Future Minimum Rental Commitments Under Non-Cancelable Operating Lease Arrangements	2015 $ 44,439 2016 52,701 $ 97,140

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Advertising costs	$ 25,058	$ 123,646	$ 134,517	$ 175,658
Research and development expenses	505,924	818,598	1,096,794	1,704,572
Property, Plant and Equipment [Line Items]
Depreciation	$ 20,738	$ 11,899	$ 40,976	$ 20,288
Computer equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Useful life			3 years
Computer equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Useful life			5 years
Furniture and fixtures [Member]
Property, Plant and Equipment [Line Items]
Useful life			7 years
Leasehold improvements [Member]
Property, Plant and Equipment [Line Items]
Useful life			Term of lease

MANAGEMENT PLANS (Details)

MANAGEMENT PLANS (Details) - USD ($)	Aug. 07, 2015	Jun. 30, 2015	Dec. 31, 2014	Jun. 30, 2014	Dec. 31, 2013
Going concern [Line Items]
Cash position		$ 409,712	$ 1,652,392	$ 5,914,803	$ 1,752,461
Subsequent event [Member]
Going concern [Line Items]
Cash position	$ 500,000

PATENTS AND TRADEMARKS (Details

PATENTS AND TRADEMARKS (Details) - Patents and trademarks [Member] - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Amortization period			20 years
Unamortized capitalized patent costs, net of accumulated amortization	$ 645,997		$ 645,997		$ 636,230
Amortization expense for patents	$ 9,794	$ 7,311	$ 18,274	$ 17,440

NOTES PAYABLE-STOCKHOLDERS (Det

NOTES PAYABLE-STOCKHOLDERS (Details) - USD ($)	1 Months Ended		3 Months Ended		6 Months Ended
	Feb. 28, 2015	Dec. 31, 2013	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Oct. 31, 2014
Debt Instrument [Line Items]
Interest expense, notes payable			$ 62,998	$ 285	$ 77,245	$ 94,565
Preferred Class B [Member]
Debt Instrument [Line Items]
Conversion price (in dollars per share)							$ 0.90
Convertible Promissory Notes due March 5, 2016 [Member]
Debt Instrument [Line Items]
Interest accrued			$ 62,998		$ 77,245
Convertible Promissory Notes due March 5, 2016 [Member] | Preferred Class B [Member]
Debt Instrument [Line Items]
Conversion price (in dollars per share)			$ 90		$ 90
Number of convertible shares in specific lot size					100
Conversion price at which preferred stock is convertible into common stock (in dollars per share)					$ 0.90
Convertible Promissory Notes due March 5, 2016, Issued on March 6, 2015 [Member]
Debt Instrument [Line Items]
Note payable included per unit			$ 2,000,000		$ 2,000,000
Interest rate			10.00%		10.00%
Convertible Promissory Notes due March 5, 2016, Issued on May 11, 2015 [Member]
Debt Instrument [Line Items]
Note payable included per unit			$ 940,000		$ 940,000
Agreement One [Member]
Debt Instrument [Line Items]
Note payable included per unit		$ 500,000
Number of shares entitled by warrants		37,500
Exercise price of warrants		$ 0.01
Interest rate		10.00%
Sale proceeds amount		$ 3,000,000
Agreement Two [Member]
Debt Instrument [Line Items]
Note payable included per unit		$ 500,000
Number of shares entitled by warrants		50,000
Exercise price of warrants		$ 1
Interest rate		10.00%
Warrants [Member]
Debt Instrument [Line Items]
Number of shares entitled by warrants	3,877,970
Fair value of stock options		$ 92,470
Dividend yield
Expected volatility	95.10%	22.20%
Risk-free interest rate	0.33%	0.40%
Expected life	1 year 3 months 11 days				2 years

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jan. 01, 2015	Dec. 31, 2014
INCOME TAXES [Abstract]
Income tax expense	$ 0	$ 0	$ 0	$ 0
Net operating loss carryforwards						$ 48,000,000
Unrecognized tax benefits
Change in unrecognized tax benefits
Accrual for uncertain tax positions

CONVERTIBLE PREFERRED STOCK (De

CONVERTIBLE PREFERRED STOCK (Details) - USD ($)	1 Months Ended			3 Months Ended		6 Months Ended
	Oct. 31, 2014	Apr. 30, 2014	Jan. 31, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Feb. 28, 2014	Jan. 27, 2014
Class of Stock [Line Items]
Equity issuance, price per share								$ 0.75	$ 0.50
Proceeds from issuance of preferred stock and warrants							$ 10,860,000
Beneficial conversion feature							$ 5,137,825
Dividends declared				$ 267,545		$ 532,150
Preferred Class A [Member]
Class of Stock [Line Items]
Issuance of shares of common stock, shares		58,150	50,450
Equity issuance, price per share			$ 100
Proceeds from issuance of preferred stock and warrants		$ 5,815,000	$ 5,045,000
Dividend rate			8.00%
Stock issuance costs		6,000	$ 141,000
Purchase price of preferred stock and warrants		2,326,000	3,396,175
Beneficial conversion feature		$ 3,489,000	$ 1,648,825
Conversion price before issuance of Series B Preferred Stock			$ 1
Conversion price			$ 0.90
Beneficial conversion feature at a fair market value			$ 1,648,825	0		0
Preferred Class A [Member] | Series A Warrants [Member]
Class of Stock [Line Items]
Warrant Term			2 years
Exercise price of warrants			$ 1
Preferred Class B [Member]
Class of Stock [Line Items]
Issuance of shares of common stock, shares	28,378
Equity issuance, price per share	$ 90
Proceeds from issuance of preferred stock and warrants	$ 2,554,020
Dividend rate	8.00%
Stock issuance costs	$ 24,029
Purchase price of preferred stock and warrants	2,178,179
Beneficial conversion feature	$ 375,841
Conversion price	$ 0.90
Beneficial conversion feature at a fair market value	$ 375,841			0		$ 0
Preferred Class B [Member] | Series B Warrants [Member]
Class of Stock [Line Items]
Warrant Term	2 years
Exercise price of warrants	$ 1
Common Stock [Member]
Class of Stock [Line Items]
Shares issuable upon exercise of warrants	2,837,800	5,815,000								5,045,000
Preferred Stock [Member]
Class of Stock [Line Items]
Dividend rate						8.00%
Dividends declared						$ 1,255,799
Additional Preferred Stock [Member]
Class of Stock [Line Items]
Beneficial conversion feature at a fair market value		$ 3,489,000		$ 0		$ 0

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)

1 Months Ended

3 Months Ended

6 Months Ended

Apr. 30, 2015

Feb. 28, 2015

Nov. 30, 2014

Jun. 30, 2014

Apr. 30, 2014

Mar. 31, 2014

Feb. 28, 2014

Dec. 31, 2013

Jun. 30, 2015

Jun. 30, 2014

Jun. 30, 2015

Jun. 30, 2014

Dec. 31, 2014

Dec. 31, 2012

Equity Issued [Line Items]

Equity issuance, price or exercise price per security issued

$ 0.75

$ 0.50

Exercise of stock options and warrants, shares

100,000

50,000

Exercise of stock options and warrants

$ 75,000

$ 25,000

Market price

$ 0.30

$ 0.30

Deemed dividend distribution in conjunction with warrant exchange offering

$ 717,594

Compensation expense

$ 89,612

$ 279,976

$ 272,792

552,115

Unrecognized compensation cost, period of recognition

2 years 3 months 18 days

Consultant [Member]

Equity Issued [Line Items]

Issuance of shares of common stock, shares

150,000

Issuance of shares of common stock, value

$ 48,500

Consultant [Member] | Share Issuance Period One [Member]

Equity Issued [Line Items]

Equity issuance, price or exercise price per security issued

$ 0.27

$ 0.27

Consultant [Member] | Share Issuance Period Two [Member]

Equity Issued [Line Items]

Equity issuance, price or exercise price per security issued

0.40

0.40

Consultant [Member] | Share Issuance Period Three [Member]

Equity Issued [Line Items]

Equity issuance, price or exercise price per security issued

0.30

$ 0.30

Employee Stock Option [Member]

Equity Issued [Line Items]

Expected life

4 years 1 month 6 days

Dividend yield

0.00%

Expected volatility

96.00%

Risk-free interest rate

1.22%

Market price

0.30

$ 0.30

Granted, shares

1,675,000

Price exercisable

0.68

$ 0.68

Employee Stock Option [Member] | Executive officers [Member]

Equity Issued [Line Items]

Expected life

2 years

Dividend yield

Risk-free interest rate

0.64%

Compensation expense

$ 9,692

Expected volatility

96.40%

Granted, shares

3,500,000

Price exercisable

$ 0.04

Exchange of Warrants and Deemed Dividend [Member]

Equity Issued [Line Items]

Exercise price of warrants

$ 1

$ 0.50

Expected life

2 years

Dividend yield

Expected volatility

143.20%

Risk-free interest rate

0.30%

Expiration period after issuance

2 years

Market price

$ 1.18

Deemed dividend distribution in conjunction with warrant exchange offering

$ 717,594

Issuance of shares of common stock from exercise of warrants through warrant exchange offering at $.50 per share

$ 2,521,143

Issuance of shares of common stock from exercise of warrants through warrant exchange offering at $.50 per share, shares

5,042,287

Extension of Warrants [Member]

Equity Issued [Line Items]

Exercise price of warrants

$ 0.75

$ 0.75

Expected life

1 year

2 years

Fair value of options or warrants

$ 28,663

Dividend yield

Expected volatility

99.60%

Risk-free interest rate

0.11%

0.33%

Warrants outstanding

514,286

514,286

Compensation expense

$ 108,000

Warrant extension

1 year

2 years

Expected volatility, minimum

89.30%

Expected volatility, maximum

89.50%

Extension of Warrants [Member] | Warrant Type One [Member]

Equity Issued [Line Items]

Exercise price of warrants

$ 0.04

Warrants outstanding

1,142,588

Extension of Warrants [Member] | Warrant Type Two [Member]

Equity Issued [Line Items]

Exercise price of warrants

$ 0.75

Warrants outstanding

100,000

Issuance of Restricted Shares [Member]

Equity Issued [Line Items]

Compensation expense

$ 116,347

$ 231,415

Issuance of Restricted Shares [Member] | Restricted Stock [Member]

Equity Issued [Line Items]

Issuance of shares of common stock, shares

300,000

Issuance of shares of common stock, value

$ 381,000

Vesting period

6 months

Market price

$ 1.27

Compensation expense

190,500

190,500

Unrecognized compensation cost, period of recognition

6 months

Unrecognized compensation cost recorded in prepaid expense

$ 190,500

$ 190,500

$ 190,500

Issuance of Restricted Shares [Member] | Restricted Stock [Member] | Executive officers [Member]

Equity Issued [Line Items]

Warrants issued

2,000,000

Issuance of shares of common stock, value

$ 1,400,000

Vesting period

3 years

Market price

$ 0.70

Shares granted

1,000,000

Extension of Options [Member] | Employee Stock Option [Member] | Executive officers [Member]

Equity Issued [Line Items]

Expected life

2 years

Fair value of options or warrants

$ 25,175

Dividend yield

Expected volatility

100.90%

Risk-free interest rate, minimum

0.23%

Risk-free interest rate, maximum

0.42%

Extension of Options [Member] | Employee Stock Option One [Member] | Executive officers [Member]

Equity Issued [Line Items]

Granted, shares

250,000

Price exercisable

$ 0.75

Extension of Options [Member] | Employee Stock Option Two [Member] | Executive officers [Member]

Equity Issued [Line Items]

Granted, shares

250,000

Price exercisable

$ 0.90

Revaluation of Options [Member] | Employee Stock Option [Member] | Executive officers [Member]

Equity Issued [Line Items]

Fair value of options or warrants

$ 58,455

Dividend yield

Expected volatility, minimum

102.90%

Expected volatility, maximum

113.50%

Risk-free interest rate, minimum

0.64%

Risk-free interest rate, maximum

1.63%

Revaluation of Options [Member] | Employee Stock Option [Member] | Executive officers [Member] | Minimum [Member]

Equity Issued [Line Items]

Expected life

2 years

Revaluation of Options [Member] | Employee Stock Option [Member] | Executive officers [Member] | Maximum [Member]

Equity Issued [Line Items]

Expected life

5 years

Warrant [Member]

Equity Issued [Line Items]

Number of shares entitled by warrants

3,877,970

Expected life

1 year 3 months 11 days

2 years

Fair value of options or warrants

$ 92,470

Dividend yield

Risk-free interest rate

0.33%

0.40%

Compensation expense

$ 219,051

Warrant extension

1 year

Expected volatility

95.10%

22.20%

Warrant [Member] | Minimum [Member]

Equity Issued [Line Items]

Exercise price of warrants

$ 0.01

Warrant [Member] | Maximum [Member]

Equity Issued [Line Items]

Exercise price of warrants

$ 1

STOCK OPTIONS AND WARRANTS (Nar

STOCK OPTIONS AND WARRANTS (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Mar. 31, 2014	Feb. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share issued price (in dollars per share)					$ 0.75	$ 0.50
Issuance of restricted stock (in shares)			2,000,000
Unrecognized compensation cost related to outstanding employee and consultant stock options	$ 1,882,596		$ 1,882,596
Unrecognized compensation cost related to outstanding employee and consultant stock options, period of recognition			2 years 3 months 18 days
Share-based compensation	$ 89,612	$ 279,976	$ 272,792	$ 552,115
Weighted average fair value of stock options granted			$ 443,887
2008 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under plan	25,000,000		25,000,000
Number of shares of common stock that have been issued and are unexercised under the plan	13,053,325		13,053,325
Shares available for grant	1,430,005		1,430,005
2013 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares authorized under plan	5,000,000		5,000,000
Number of shares of common stock that have been issued and are unexercised under the plan	4,011,669		4,011,669
Shares available for grant	988,331		988,331

STOCK OPTIONS AND WARRANTS (Wei

STOCK OPTIONS AND WARRANTS (Weighted Average Assumptions Used to Estimate Fair Value of Stock Option and Warrant Grants) (Details) - 6 months ended Jun. 30, 2015 - Stock Options [Member] - $ / shares	Total
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.22%
Expected volatility	96.00%
Expected life	4 years 1 month 6 days
Dividend yield	0.00%
Weighted-average estimated fair value of options granted during the period	$ 0.27

STOCK OPTIONS AND WARRANTS (Sch

STOCK OPTIONS AND WARRANTS (Schedule of Stock Option Activity) (Details) - Jun. 30, 2015 - USD ($)		Total
Aggregate Intrinsic Value:
Closing stock price		$ 0.30
Stock Options [Member]
Number of Shares:
Balance as of December 31, 2014		16,670,827
Granted		1,675,000
Exercised
Forfeited/canceled		(1,649,167)
Expired		(551,663)
Balance as of June 30, 2015		16,144,997
Exercisable as of June 30, 2015		13,027,480
Exercisable as of June 30, 2015 and expected to vest thereafter		16,144,997
Weighted Average Exercise Price:
Balance as of December 31, 2014		$ 0.78
Granted		$ 0.39
Exercised
Forfeited/canceled		$ 0.92
Expired		1.85
Balance as of June 30, 2015		0.69
Exercisable as of June 30, 2015		0.68
Exercisable as of June 30, 2015 and expected to vest thereafter		$ 0.70
Weighted Average Remaining Contractual Term:
Balance as of June 30, 2015		2 years 1 month 6 days
Exercisable as of June 30, 2015		1 year 8 months 12 days
Exercisable as of June 30, 2015 and expected to vest thereafter		2 years 1 month 6 days
Aggregate Intrinsic Value:
Balance as of June 30, 2015	[1]	$ 916
Exercisable as of June 30, 2015	[1]	910
Exercisable as of June 30, 2015 and expected to vest thereafter	[1]	$ 916
Closing stock price		$ 0.30
[1]	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $0.30 for our common stock on June 30, 2015.

STOCK OPTIONS AND WARRANTS (Sum

STOCK OPTIONS AND WARRANTS (Summary of Activities of Unvested Stock Options) (Details) - 6 months ended Jun. 30, 2015 - Unvested Stock Options [Member] - $ / shares	Total
Number of Awards
Unvested stock options at December 31, 2014	4,663,767
Granted	1,675,000
Cancelled/Forfeited	(1,466,669)
Expired
Vested	(1,754,581)
Unvested stock options at June 30, 2015	3,117,517
Weighted Average Exercise Price
Unvested stock options at December 31, 2014	$ 0.98
Granted	0.39
Cancelled/Forfeited	$ 0.87
Expired
Vested	$ 0.93
Unvested stock options at June 30, 2015	0.75
Weighted Average Grant Date Fair Value
Unvested stock options at December 31, 2014	0.40
Granted	0.27
Cancelled/Forfeited	$ 0.43
Expired
Vested	$ 0.31
Unvested stock options at June 30, 2015	$ 0.37
Weighted Average Remaining Amortization Period (Years)
Unvested stock options at June 30, 2015	2 years 25 days

STOCK OPTIONS AND WARRANTS (S34

STOCK OPTIONS AND WARRANTS (Schedule of Warrant Activity) (Details) - Jun. 30, 2015 - Share-based Compensation Arrangements by Share-based Payment Award, Award Type and Plan Name [Domain] - USD ($) $ / shares in Units, $ in Thousands		Total
Number of Shares:
Balance as of December 31, 2014		26,631,410
Granted
Exercised
Forfeited/canceled
Expired		(515,714)
Balance as of June 30, 2015		26,115,696
Exercisable as of June 30, 2015 and expected to vest thereafter		26,115,696
Weighted Average Exercise Price:
Balance as of December 31, 2014		$ 1.01
Granted
Exercised
Forfeited/canceled
Expired		$ 0.50
Balance as of June 30, 2015		1.02
Exercisable as of June 30, 2015 and expected to vest thereafter		$ 1.02
Weighted- Average Remaining Contractual Term:
Balance as of June 30, 2015		10 months 2 days
Exercisable as of June 30, 2015 and expected to vest thereafter		10 months 2 days
Aggregate Intrinsic Value:
Balance as of June 30, 2015	[1]	$ 319
Exercisable as of June 30, 2015 and expected to vest thereafter	[1]	$ 319
Closing stock price		$ 0.30
[1]	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.30 for our common stock on June 30, 2015.

OPERATING LEASES (Details)

OPERATING LEASES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
OPERATING LEASES [Abstract]
Rent expense	$ 72,594	$ 172,028	$ 229,261	$ 310,872

OPERATING LEASES (Schedule of N

OPERATING LEASES (Schedule of Non Cancelable Operating Lease Arrangements) (Details)	Jun. 30, 2015USD ($)
OPERATING LEASES [Abstract]
2,015	$ 44,439
2,016	52,701
Total	$ 97,140

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Class of Stock [Domain] - USD ($)	Jul. 31, 2015	Jul. 20, 2015	Jul. 31, 2015	Feb. 28, 2015	Dec. 31, 2013	Jun. 30, 2015
Subsequent event [Line Items]
Share price (in dollars per share)						$ 0.30
Employee Stock Option [Member]
Subsequent event [Line Items]
Shares option issued						1,675,000
Share price (in dollars per share)						$ 0.30
Option term						2 years 1 month 6 days
Dividend yield						0.00%
Expected volatility						96.00%
Risk-free interest rate						1.22%
Expected life						4 years 1 month 6 days
Warrant [Member]
Subsequent event [Line Items]
Warrant to purchase a number of shares of common stock				3,877,970
Fair value of stock options					$ 92,470
Dividend yield
Risk-free interest rate				0.33%	0.40%
Expected life				1 year 3 months 11 days		2 years
Warrant [Member] | Minimum [Member]
Subsequent event [Line Items]
Exercise price of warrants				$ 0.01
Warrant [Member] | Maximum [Member]
Subsequent event [Line Items]
Exercise price of warrants				$ 1
Subsequent event [Member] | Chief Financial Officer [Member]
Subsequent event [Line Items]
Number of share repurchased	250,000
Share price (in dollars per share)	$ 0.22		$ 0.22
Option term	5 years
Fair value of stock options	$ 42,214
Dividend yield
Expected volatility	104.70%
Risk-free interest rate	1.54%
Expected life	5 years
Subsequent event [Member] | Consulting agreement with former officer [Member]
Subsequent event [Line Items]
Restricted shares forfeited			2,000,000
Subsequent event [Member] | Convertible Promissory Notes [Member]
Subsequent event [Line Items]
Principal amount		$ 1,000,000
Commitment fee, percentage		7.50%
Subsequent event [Member] | Unsecured Promissory Notes [Member]
Subsequent event [Line Items]
Principal amount		$ 250,200
Interest rate		10.00%
Note payable maturity term		6 months
Subsequent event [Member] | Class A Unsecured Notes [Member]
Subsequent event [Line Items]
Principal amount		$ 200,200
Subsequent event [Member] | Class B Unsecured Notes [Member]
Subsequent event [Line Items]
Principal amount		$ 50,000
Subsequent event [Member] | Warrant [Member]
Subsequent event [Line Items]
Warrant Term		2 years
Percent of principal amount for which warrant issued		20.00%
Exercise price of warrants		$ 0.90
Warrant to purchase a number of shares of common stock		50,000