Rego Payment Architectures (RPMT) 10-Q 12 Aug 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 12, 2016
Document And Entity Information
Entity Registrant Name	VIRTUAL PIGGY, INC.
Entity Central Index Key	1,437,283
Document Type	10-Q
Document Period End Date	Jun. 30, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		118,017,626
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,016

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 3,735	$ 16,646
Accounts receivable, net of allowance of $0 and $6,293		360
Assets held for sale, net of accumulated depreciation of $0 and $23,174		34,071
Prepaid expenses		72,918
TOTAL CURRENT ASSETS	3,735	123,995
PROPERTY AND EQUIPMENT
Computer equipment	20,366	73,645
Furniture and fixtures	15,722	15,722
Gross property and equipment	36,088	89,367
Less: accumulated depreciation	(22,220)	(57,823)
Total property and equipment	13,868	31,544
OTHER ASSETS
Deposit		31,800
Patents and trademarks, net of accumulated amortization of $114,706 and $96,282	570,997	589,420
Total other assets	570,997	621,220
TOTAL ASSETS	588,600	776,759
CURRENT LIABILITIES
Accounts payable and accrued expenses	1,889,100	1,702,527
Accounts payable and accrued expenses - related parties	198,568
Loans payable	9,000
Preferred stock dividend liability	2,340,863	1,804,302
Convertible notes payable - stockholders	3,040,000	2,940,000
Notes payable, net of discount of $10,959 and $37,482	1,674,041	988,918
TOTAL CURRENT LIABILITIES	9,151,572	7,435,747
CONTINGENCIES
STOCKHOLDERS' DEFICIT
Common stock, $ .0001 par value; 230,000,000 shares authorized; 118,017,626 shares issued and outstanding at June 30, 2016 and December 31, 2015	11,802	11,752
Additional paid in capital	55,652,622	54,203,451
Deferred compensation	(22,917)	(72,188)
Accumulated deficit	(64,204,493)	(60,802,017)
STOCKHOLDERS' DEFICIT	(8,562,972)	(6,658,988)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	588,600	776,759
Series A [Member]
STOCKHOLDERS' DEFICIT
Preferred stock	11	11
Series B [Member]
STOCKHOLDERS' DEFICIT
Preferred stock	$ 3	$ 3

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Accounts receivable, allowance		$ 6,293
Assets held for sale, accumulated depreciation		23,174
Patents and trademarks, accumulated amortization	114,706	96,282
Notes payable, discount	$ 10,959	$ 37,482
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	118,017,626	117,517,626
Common stock, shares outstanding	118,017,626	117,517,626
Series A [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 [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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Statement [Abstract]
SALES	$ 12	$ 5,277	$ 1,037	$ 9,386
OPERATING EXPENSES
Sales and marketing	(1,068)	509,039	34,035	1,398,276
Product development	168,566	505,924	416,139	1,096,793
Integration and customer support	36,337	58,872	70,575	120,710
General and administrative	359,885	798,833	2,078,113	2,291,085
Strategic consulting		203,500		338,500
Total operating expenses	563,720	2,076,168	2,598,862	5,245,364
NET OPERATING LOSS	(563,708)	(2,070,891)	(2,597,825)	(5,235,978)
OTHER INCOME (EXPENSE)
Interest income		150		299
Interest expense	(134,347)	(62,998)	(276,578)	(77,245)
Other income	1,085		1,085
Gain on disposition of fixed assets			7,403
Total other income (expense)	(133,262)	(62,848)	(268,090)	(76,946)
NET LOSS	(696,970)	(2,133,739)	(2,865,915)	(5,312,924)
Less: Accrued preferred dividends	(268,281)	(267,545)	(536,561)	(532,150)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (965,251)	$ (2,401,284)	$ (3,402,476)	$ (5,845,074)
BASIC AND DILUTED NET LOSS PER COMMON SHARE	$ (0.01)	$ (0.02)	$ (0.03)	$ (0.05)
BASIC AND DILUTED WEIGHTED AVERAGE COMMON SHARES OUTSTANDING	117,684,293	119,167,626	117,600,959	119,142,626

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Statement of Comprehensive Income [Abstract]
NET LOSS	$ (696,970)	$ (2,133,739)	$ (2,865,915)	$ (5,312,924)
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustments, net of tax		(154,840)		(40,365)
TOTAL OTHER COMPREHENSIVE LOSS, net of tax		(154,840)		(40,365)
COMPREHENSIVE LOSS	$ (696,970)	$ (2,288,579)	$ (2,865,915)	$ (5,353,289)

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Changes in Stockholders' Deficit - 6 months ended Jun. 30, 2016 - USD ($)	Preferred Stock [Member]Series A [Member]	Preferred Stock [Member]Series B [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Deferred Compensation [Member]	Accumulated Deficit [Member]	Total
Balance at Dec. 31, 2015	$ 11	$ 3	$ 11,752	$ 54,203,451	$ (72,188)	$ (60,802,017)	$ (6,658,988)
Balance, shares at Dec. 31, 2015	108,600	28,378	117,517,626
Issuance of restricted common stock for services			$ 50	54,950	(55,000)
Issuance of restricted common stock for services, shares			500,000
Issuance of warrants with notes payable				8,537			8,537
Revaluation of warrants				1,305,411			1,305,411
Fair value of options for services				162,773			162,773
Amortization of deferred compensation					32,083		32,083
Forfeited restricted common stock				(82,500)	72,188		(10,312)
Accrued preferred dividends						(536,561)	(536,561)
Net loss						(2,865,915)	(2,865,915)
Balance at Jun. 30, 2016	$ 11	$ 3	$ 11,802	$ 55,652,622	$ (22,917)	$ (64,204,493)	$ (8,562,972)
Balance, shares at Jun. 30, 2016	108,600	28,378	118,017,626

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (2,865,915)	$ (5,312,924)
Adjustments to reconcile net loss to net cash used in operating activities
Provision for bad debts	360
Fair value of options issued in exchange for services	162,773	279,976
Fair value of common stock issued in exchange for services		279,915
Revaluation of options and warrants	1,305,411	195,463
Reversal of expense from forfeiture of restricted common stock	(10,312)
Amortization of deferred compensation	32,083
Accretion of discount on notes payable	57,568
Depreciation and amortization	22,573	59,250
(Gain) Loss on abandonment of patents and disposal of fixed assets	(7,403)	895
Decrease in assets
Accounts receivable		1,063
Prepaid expenses	72,918	179,609
Deposits	31,800	7,253
Increase in liabilities
Accounts payable and accrued expenses	417,633	195,244
Deferred revenue		7,676
Net cash used in operating activities	(780,511)	(4,106,580)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment		(7,693)
Patent and trademark costs		(28,042)
Net cash used in investing activities		(35,735)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from loans payable	9,000
Proceeds from convertible notes payable - stockholders	100,000	2,940,000
Proceeds from notes payable - stockholders	658,600
Net cash provided by financing activities	767,600	2,940,000
EFFECT OF EXCHANGE RATE ON CASH		(40,365)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(12,911)	(1,242,680)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	16,646	1,652,392
CASH AND CASH EQUIVALENTS - END OF PERIOD	3,735	409,712
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during year for: Interest
Cash paid during year for: Income taxes
SUPPLEMENTAL DISCLOSURE OF NON-CASH FINANCING ACTIVITIES:
Disposal of equipment in satisfaction of accounts payable	55,000
Accrued preferred dividend	536,561	532,150
Fair value of warrants issued as discount for note payable	8,537
Accrued interest as discount on notes payable	22,508
Issuance of restricted common stock	55,000
Forfeited restricted stock	$ 82,500

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2016
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. The Company is a technology company that seeks to deliver an online ecommerce solution for the family. The Company’s system allows parents and their children to manage, allocate funds and track their expenditures, savings and charitable giving online. The system is designed to allow a minor to transact online without a credit card by gaining the parents’ permission ahead of time and allowing the parent to set up the rules of use. The Company believes that a future alternative for Virtual Piggy, Inc. will revolve around the FinTech industry with a partner-first go to market model in which established payments market leaders and vertical market participants can incorporate and integrate the Company’s platform into co-branded payments solutions targeting youth and family. The Company also believes this approach will enable the Company to reduce expenses while broadening its reach. Within this affinity partner model, the Company will seek to incorporate licensing fees and customization services. This would enable the company to begin creating shareholder value above and beyond consumer transaction fees. The Company is also analyzing specific components of our technology for individual monetization as well as exploring opportunities in the Business to Business (“B2B”) realm. In addition, the Company is currently adding enhancements to the platform, to enable the platform to update itself with any new regulations that are passed, in order to reduce costs associated with manually updating the platform. This will also enable the Company to market the platform to other companies in need of a solution to comply with the Children’s Online Privacy Protection Act (“COPPA”) or other regulatory requirements. The Company’s primary strategic objective over the next 12 -18 months is to increase the value of the underlying technical assets of the Company by incorporating new essential functionality that will act as a key differentiator in the financial services market. In addition, the Company is redirecting its marketing efforts to increase its user base by entering into affinity marketing agreements with companies targeting specific user communities. This approach should greatly reduce the expense associated with direct marketing efforts. The Company’s principal office is located in Palm Beach, Florida. On December 3, 2015, Finity, Inc. was incorporated as a wholly owned subsidiary of the Company. On December 11, 2015, Finity, Inc. changed its name to Finitii, Inc. Finitii, Inc. was established as a not for profit entity for the purpose of teaching children financial literacy. Finitii, Inc. has had no operations since it was formed. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 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 accompanying unaudited 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, 2015 as filed with the SEC. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The accompanying condensed consolidated financial statements of Virtual Piggy, Inc. and its wholly owned subsidiary, Finitii, Inc. (collectively the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany transactions have been eliminated in consolidation. The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional financing to operationalize the Company’s current technology before another company develops similar technology to compete with the Company. Recently Adopted Accounting Pronouncements As of June 30, 2016 and for the period 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, 2016, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2017.

MANAGEMENT PLANS

MANAGEMENT PLANS	6 Months Ended
	Jun. 30, 2016
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 license its platform to merchants to enable them to provide COPPA compliant services for themselves and their customers. As of August 12, 2016, the Company has a cash position of approximately $40,000. Based upon the current cash position and the Company’s planned expense run rate, management believes the Company has funds currently to finance its operations through August 2016.

ACCOUNTS PAYABLE AND ACCRUED EX

ACCOUNTS PAYABLE AND ACCRUED EXPENSES - RELATED PARTIES	6 Months Ended
	Jun. 30, 2016
Related Party Transactions [Abstract]
ACCOUNTS PAYABLE AND ACCRUED EXPENSES - RELATED PARTIES	NOTE 3 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES – RELATED PARTIES As of June 30, 2016, the former Chairman of the Board had paid expenses on behalf of the Company in the amount of $114,126. The Company owes the Chief Executive Officer unpaid salary of $26,154. The Company also owes the Chief Financial Officer a total of $32,721 as of June 30, 2016, including unpaid salary of $11,538, health insurance of $14,670 and unpaid accounting services, to the Chief Financial Officer’s accounting firm for services provided prior to his becoming the Chief Financial Officer of the Company, in the amount of $6,513. Additionally, the Company owes a company owned by a beneficial owner of more than 5% of the Company $20,567 and the son of this beneficial owner $5,000 as of June 30, 2016.

CONVERTIBLE NOTES PAYABLE

CONVERTIBLE NOTES PAYABLE	6 Months Ended
	Jun. 30, 2016
CONVERTIBLE NOTES PAYABLE [Abstract]
CONVERTIBLE NOTES PAYABLE	NOTE 4 – CONVERTIBLE NOTES PAYABLE On March 6, 2015, the Company, pursuant to a Securities Purchase Agreement (the “Purchase Agreement”), issued $2,000,000 aggregate principal amount of its 10% Secured Convertible Promissory Notes due March 5, 2016 (the “Notes”) to certain stockholders. On May 11, 2015, the Company issued an additional $940,000 of Notes to stockholders. The maturity dates of the Notes were extended to March 5, 2017 with the consent of the Note holders. On May 5, 2016, the Company issued an additional $100,000 of Notes to stockholders. 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 per share, subject to adjustment for stock splits, stock dividends and similar transactions with respect to the Series B Preferred Stock only. Each share of Series B Preferred Stock is currently convertible into 100 shares of the Company’s common stock at a current conversion price of $0.90 per share, subject to anti-dilution adjustment as described in the Certificate of Designation of the Series B Preferred Stock. In addition, pursuant to the terms of a Security Agreement entered into on May 11, 2015 by and among the Company, the Investors and a collateral agent acting on behalf of the Investors (the “Security Agreement”), the Notes are secured by a lien against substantially all of the Company’s business assets. Pursuant to the Purchase Agreement, the Company also granted piggyback registration rights to the holders of the Series B Preferred Stock upon a conversion of the Notes. The Notes are recorded as a current liability as of June 30, 2016. Interest accrued on the notes was $374,542 and $225,452 as of June 30, 2016 and December 31, 2015. Interest expense related to these notes payable was $75,792 and $149,091 for the three and six months ended June 30, 2016 and $62,998 and $77,245 for the three and six months ended June 30, 2015.

NOTES PAYABLE - STOCKHOLDERS

NOTES PAYABLE - STOCKHOLDERS	6 Months Ended
	Jun. 30, 2016
Debt Disclosure [Abstract]
NOTES PAYABLE - STOCKHOLDERS	NOTE 5 – NOTES PAYABLE - STOCKHOLDERS On January 15 and 19, 2016, the Company entered into agreements with two stockholders that includes notes payable in the aggregate amount of $62,500, and two-year warrants to purchase 12,500 shares of the Company’s common stock at $0.90. The notes bear interest at 10% per annum, and mature on the six month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of the 10% Secured Convertible Promissory Notes. On January 29 and February 3, 2016, the Company entered into agreements with two stockholders that includes notes payable in the aggregate amount of $90,000, and two-year warrants to purchase 18,000 shares of the Company’s common stock at $0.90. The notes bear interest at 10% per annum, and mature on the six month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of the 10% Secured Convertible Promissory Notes. On February 23, 2016, the Company entered into agreements with three stockholders that includes notes payable in the aggregate amount of $26,000, and two-year warrants to purchase 5,200 shares of the Company’s common stock at $0.90 per share. The notes bear interest at 10% per annum, and mature on the six month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of the 10% Secured Convertible Promissory Notes. On February 23, 2016, the Company entered into Amendments to Promissory Note Agreements (the “Amendments”) with five holders of the Company’s outstanding unsecured Promissory Notes in the aggregate principal amount of $475,300 (the “Outstanding Notes”), pursuant to which the maturity date of such Outstanding Notes was extended to the twelve (12) month anniversary of the original issuance date (formerly the six (6) month anniversary of the original issuance date) or such earlier date that (i) the Company completes the closing of specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of 10% Secured Convertible Promissory Notes. The Outstanding Notes were previously to mature between January 20, 2016 and March 18, 2016 and will now mature not later than dates between July 20, 2016 and September 18, 2016. The Amendments took effect retroactive to the prior applicable maturity date. On March 2, 2016, the Company entered into an agreement with a stockholder that includes a note payable in the amount of $5,000, and two-year warrants to purchase 1,000 shares of the Company’s common stock at $0.90. The note bears interest at 10% per annum, and matures on the six month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of the 10% Secured Convertible Promissory Notes. On March 4, 2016, the Company entered into an agreement with a stockholder that includes a note payable in the amount of $100,100, and two-year warrants to purchase 20,020 shares of the Company’s common stock at $0.90. The note bears interest at 10% per annum, and matures on the six month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of the 10% Secured Convertible Promissory Notes. This note contains a 7.5% commitment fee, which is payable upon maturity of the note. On March 15, 2016, the Company entered into an agreement with a stockholder that includes notes payable in the amount of $200,000, and two-year warrants to purchase 40,000 shares of the Company’s common stock at $0.90 per share. The note bears interest at 10% per annum, and matures on the six month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of the 10% Secured Convertible Promissory Notes. This note contains a 7.5% commitment fee, which is payable upon maturity of the note. On April 18, 2016, the Company issued $20,000 in aggregate principal amount of unsecured Promissory Notes to two accredited investors pursuant to Promissory Note Agreements. The Investors also received two-year Warrants to purchase an aggregate of 4,000 shares of Company common stock at an exercise price of $0.90 per share. The Notes bear interest at a rate of ten percent (10%) per annum and mature on the six (6) month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of 10% Secured Convertible Promissory Notes. On April 20, 2016, the Company issued $5,000 in aggregate principal amount of unsecured Promissory Notes to an accredited investor pursuant to Promissory Note Agreements. The Investors also received two-year Warrants to purchase an aggregate of 1,000 shares of Company common stock at an exercise price of $0.90 per share. The notes bear interest at a rate of ten percent (10%) per annum and mature on the six (6) month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of 10% Secured Convertible Promissory Notes. On April 25, 2016, the Company issued a $50,000 principal amount unsecured Promissory Note to an accredited investor pursuant to a Promissory Note Agreement. The Investor also received two-year Warrants to purchase an aggregate of 10,000 shares of Company common stock at an exercise price of $0.90 per share. The note bears interest at a rate of ten percent (10%) per annum and matures on the six (6) month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of 10% Secured Convertible Promissory Notes. On June 1, 2016, the Company issued a $50,000 principal amount unsecured Promissory Note to an accredited investor pursuant to a Promissory Note Agreement. The Investor also received two-year Warrants to purchase an aggregate of 10,000 shares of Company common stock at an exercise price of $0.90 per share. The note bears interest at a rate of ten percent (10%) per annum and matures on the six (6) month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of 10% Secured Convertible Promissory Notes. On June 9, 2016, the Company issued a $50,000 principal amount unsecured Promissory Note to an accredited investor pursuant to a Promissory Note Agreement. The Investor also received two-year Warrants to purchase an aggregate of 10,000 shares of Company common stock at an exercise price of $0.90 per share. The note bears interest at a rate of ten percent (10%) per annum and matures on the six (6) month anniversary of the issuance date, or on such earlier date that (i) the Company completes the closing of a specified joint venture agreement or (ii) the Company completes the sale of at least an additional $1 million of 10% Secured Convertible Promissory Notes. As of June 30, 2016, $551,100 in aggregate principal of the Promissory Notes are in default. The 7.5% commitment fees, amounting to $76,913 and $54,405 as of June 30, 2016 and December 31, 2015, on the Notes Payable were treated as a discount to the value of the notes payable in accordance with FASB ASC 835-30-25, Recognition The fair value of the warrants issued in conjunction with the Promissory Notes are recorded as a discount to the value of the notes payable in accordance with FASB ASC 835-30-25, Recognition The warrants were valued at $2,178 and $8,537 fair value for the three and six months ended June 30, 2016, using the Black-Scholes option pricing model to calculate the grant-date fair value of the warrants, with the following assumptions: no dividend yield, expected volatility of 135.4% to 183.1%, risk free interest rate of 0.71% to 0.98% and expected option life of 2 years. The notes payable are recorded as a current liability as of June 30, 2016. Interest accrued including the 7.5% commitment fee on the notes as of June 30, 2016 and December 31, 2015 was $174,257 and $81,831. Interest expense, including accretion of discounts, related to these notes payable was $58,555 and $127,487 for the three and six months ended June 30, 2016 and $0 for the three and six months ended June 30, 2015.

LOANS PAYABLE

LOANS PAYABLE	6 Months Ended
	Jun. 30, 2016
Loans Payable
LOANS PAYABLE	NOTE 6 – LOANS PAYABLE During the three months ended June 30, 2016, the Company received loans in the aggregate amount of $9,000. These loans have no formal repayment terms and are not accruing interest.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 7 – INCOME TAXES Income tax expense was $0 for the three and six months ended June 30, 2016 and 2015. As of January 1, 2016, the Company had no unrecognized tax benefits, and accordingly, the Company did not recognize interest or penalties during 2016 related to unrecognized tax benefits. There has been no change in unrecognized tax benefits during the six months ended June 30, 2016, and there was no accrual for uncertain tax positions as of June 30, 2016. Tax years from 2012 through 2015 remain subject to examination by major tax jurisdictions. There is no income tax benefit for the losses for the three and six months ended June 30, 2016 and 2015, 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.

CONVERTIBLE PREFERRED STOCK

CONVERTIBLE PREFERRED STOCK	6 Months Ended
	Jun. 30, 2016
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
CONVERTIBLE PREFERRED STOCK	NOTE 8 – CONVERTIBLE PREFERRED STOCK As of June 30, 2016, the value of the cumulative 8% dividends for all preferred stock was $2,340,863. Such dividends will be paid when and if declared payable by the Company’s board of directors or upon the occurrence of certain liquidation events. In accordance with FASB ASC 260-10-45-11, the Company has recorded these accrued dividends as a current liability.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2016
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	NOTE 9 – STOCKHOLDERS’ EQUITY 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 shares of common stock of the Company at exercise prices ranging from $0.01 per share to $1.00 per share. These warrants were scheduled to expire at various dates during 2015 and were each extended for an additional one year period from the applicable current expiration date, with the new expiration dates ranging from February 23, 2016 to December 28, 2016. The increase in fair value of this term extension was $219,051, which was expensed in 2015. The increase in fair value of this term extension was $219,051 which was expensed during the period. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended warrants: no dividend yield, expected volatility of 95.1%, risk free interest rate of 0.22%, and expected warrant life of 1.28 years. In February 2015, the Company extended options previously granted to two of its executive officers, which included 3,500,000 options exercisable at $0.04 per share. The increase in fair value of this term extension was $9,692 which was expensed during the period. The Company used the Black-Scholes option pricing model to calculate the increase in fair value after the extension, with the following assumptions: no dividend yield, expected volatility of 96.4%, risk free interest rate of 0.64%, and expected option life of 2 years. On January 25, 2016, the Board of Directors approved amendments extending the term of outstanding warrants to purchase in the aggregate 24,372,838 shares of common stock of the Company at exercise prices ranging from $0.01 per share to $3.00 per share (the “Warrants”). These Warrants were scheduled to expire at various dates during 2016 and were each extended for an additional one year period from the applicable current expiration date, with the new expiration dates ranging from January 26, 2017 to December 28, 2017. The increase in fair value of this term extension was $1,305,411 which was expensed during the three months ended March 31, 2016. The Company used the Black-Scholes option pricing model to calculate the increase in fair value, with the following assumptions for the extended warrants: no dividend yield, expected volatility of 161.3%, risk free interest rate of 0.47%, and expected warrant life of 1.27 years. On April 14, 2016, the Company appointed a new Chief Executive Officer and Chairman of the Board, with such appointments taking effect on April 18, 2016. In connection with his appointment, the Company also simultaneously entered into an Employment Agreement with the Chief Executive Officer and Chairman of the Board, pursuant to which he will be employed on an at will basis at an annual salary of $240,000 during the first year of employment. He also received options to purchase 3,000,000 shares of the Company’s common stock at an exercise price of $0.90 per share, vesting over three years and 500,000 shares of restricted stock, 250,000 of which vest immediately and the remainder vest on the one year anniversary of his employment. The options were valued at $196,505 fair value using the Black-Scholes option pricing model to calculate the fair value, with the following assumptions for the extended warrants: no dividend yield, expected volatility of 121.7%, risk free interest rate of 1.24%, and expected warrant life of 5 years. A restricted stock award (“RSA”) is an award of common shares that is subject to certain restrictions during a specified period. Restricted stock awards are independent of option grants and are generally subject to forfeiture if employment terminates prior to the release of the restrictions. The grantee cannot transfer the shares before the restricted shares vest. Shares of nonvested restricted stock have the same voting rights as common stock, are entitled to receive dividends and other distributions thereon and are considered to be currently issued and outstanding. The Company’s restricted stock awards vest over a period of one year. The Company expenses the cost of the restricted stock awards, which is determined to be the fair market value of the shares at the date of grant, straight-line over the period during which the restrictions lapse. For these purposes, the fair market value of the restricted stock is determined based on the closing price of the Company’s common stock on the grant date. The RSAs were valued at $55,000 based on the market price of the shares on the issuance date, which was $0.11. The value of the 250,000 RSAs that vested immediately, or $27,500, was expensed immediately and the remainder was recorded as deferred compensation and is being amortized. For the three and six months ended June 30, 2016 $0 and $32,083 was expensed and for the three and six months ended June 30, 2015 $0 was expensed. The remaining value of the previous CEO’s RSAs included in deferred compensation in the amount of $48,125 was reclassified to additional paid in capital upon her resignation and the Company reversed expense of $10,312 relative to her departure.

STOCK OPTIONS AND WARRANTS

STOCK OPTIONS AND WARRANTS	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK OPTIONS AND WARRANTS	NOTE 10 – 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 Plan, the Company is authorized to grant options to purchase up to 25,000,000 shares of common stock to any officer, other employee or director of, or any consultant or other independent contractor who provides services to the Company. The Plan is intended to permit stock options granted to employees under the 2008 Plan to qualify as incentive stock options under Section 422 of the Internal Revenue Code of 1986, as amended (“Incentive Stock Options”). All options granted under the 2008 Plan, which are not intended to qualify as Incentive Stock Options are deemed to be non-qualified options (“Non-Statutory Stock Options”). As of June 30, 2016, options to purchase 9,590,000 shares of common stock have been issued and are unexercised, and 5,560,000 shares are available for grants under the 2008 Plan. 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 shares of common stock to any officer, employee, director or consultant. The 2013 Plan is intended to permit stock options granted to employees under the 2013 Plan to qualify as Incentive Stock Options. All options granted under the 2013 Plan, which are not intended to qualify as Incentive Stock Options are deemed to be Non-Statutory Stock Options. As of June 30, 2016, under the 2013 Plan grants of restricted stock and options to purchase 1,390,000 shares of common stock have been issued and are unvested or unexercised, and 3,110,000 shares of common stock remain available for grants under the 2013 Plan. 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. The following table summarizes the activities for the Company’s stock options for the six months ended June 30, 2016: Options Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price in years) (in 000's) (1) Balance December 31, 2015 8,822,500 $ 0.76 2.6 Granted 4,225,000 $ 0.80 Cancelled/forfeited/expired (1,737,500 ) $ (0.83 ) Balance June 30, 2016 11,310,000 $ 0.76 2.7 $ - Exercisable at June 30, 2016 6,532,496 $ 0.81 1.6 $ - Exercisable at June 30, 2016 and expected to vest thereafter 11,310,000 $ 0.76 2.7 $ - (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $0.12 for the Company’s common stock on June 30, 2016. For the three and six months ended June 30, 2016, the Company expensed $93,366 and $162,773 with respect to the options. For the three and six months ended June 30, 2015, the Company expensed $89,612 and $279,976 with respect to the options. As of June 30, 2016 there was $494,841 of unrecognized compensation cost related to outstanding stock options. This amount is expected to be recognized over a weighted-average period of 2.1 years. To the extent the actual forfeiture rate is different from what the Company has estimated, stock-based compensation related to these awards will be different from the Company’s expectations. The difference between the stock options exercisable at June 30, 2016 and the stock options exercisable and expected to vest relates to management’s estimate of options expected to vest in the future. The following table summarizes the activities for the Company warrants for the six months ended June 30, 2016: Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price in years) (in 000's) (1) Balance December 31, 2015 26,365,896 $ 1.02 0.4 Expired (1,242,858 ) (0.10 ) - Granted 131,700 $ 0.90 - Balance June 30, 2016 25,254,738 $ 1.07 0.8 $ 8 Exercisable at June 30, 2016 25,254,738 $ 1.07 0.8 $ 8 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.12 for the Company’s common stock on June 30, 2016. All warrants were vested on the date of grant.

OPERATING LEASES

OPERATING LEASES	6 Months Ended
	Jun. 30, 2016
Leases [Abstract]
OPERATING LEASES	NOTE 11 – OPERATING LEASES For the three and six months ended June 30, 2016, total rent expense under leases amounted to $3,417 and $11,415. For the three and six months ended June 30, 2015, total rent expense under leases amounted to $72,594 and $172,028. As of June 30, 2016, the Company was not obligated under any non-cancelable operating lease arrangements.

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2016
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. The Company is a technology company that seeks to deliver an online ecommerce solution for the family. The Company’s system allows parents and their children to manage, allocate funds and track their expenditures, savings and charitable giving online. The system is designed to allow a minor to transact online without a credit card by gaining the parents’ permission ahead of time and allowing the parent to set up the rules of use. The Company believes that a future alternative for Virtual Piggy, Inc. will revolve around the FinTech industry with a partner-first go to market model in which established payments market leaders and vertical market participants can incorporate and integrate the Company’s platform into co-branded payments solutions targeting youth and family. The Company also believes this approach will enable the Company to reduce expenses while broadening its reach. Within this affinity partner model, the Company will seek to incorporate licensing fees and customization services. This would enable the company to begin creating shareholder value above and beyond consumer transaction fees. The Company is also analyzing specific components of our technology for individual monetization as well as exploring opportunities in the Business to Business (“B2B”) realm. In addition, the Company is currently adding enhancements to the platform, to enable the platform to update itself with any new regulations that are passed, in order to reduce costs associated with manually updating the platform. This will also enable the Company to market the platform to other companies in need of a solution to comply with the Children’s Online Privacy Protection Act (“COPPA”) or other regulatory requirements. The Company’s primary strategic objective over the next 12 -18 months is to increase the value of the underlying technical assets of the Company by incorporating new essential functionality that will act as a key differentiator in the financial services market. In addition, the Company is redirecting its marketing efforts to increase its user base by entering into affinity marketing agreements with companies targeting specific user communities. This approach should greatly reduce the expense associated with direct marketing efforts. The Company’s principal office is located in Palm Beach, Florida. On December 3, 2015, Finity, Inc. was incorporated as a wholly owned subsidiary of the Company. On December 11, 2015, Finity, Inc. changed its name to Finitii, Inc. Finitii, Inc. was established as a not for profit entity for the purpose of teaching children financial literacy. Finitii, Inc. has had no operations since it was formed.
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) 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 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 accompanying unaudited 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, 2015 as filed with the SEC. Operating results for the three and six months ended June 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. The accompanying condensed consolidated financial statements of Virtual Piggy, Inc. and its wholly owned subsidiary, Finitii, Inc. (collectively the “Company”), have been prepared in accordance with accounting principles generally accepted in the United States of America. All intercompany transactions have been eliminated in consolidation. The Company’s activities are subject to significant risks and uncertainties, including failing to secure additional financing to operationalize the Company’s current technology before another company develops similar technology to compete with the Company.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements As of June 30, 2016 and for the period 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, 2016, there are no recently issued accounting standards not yet adopted which would have a material effect on the Company’s financial statements through 2017.

STOCK OPTIONS AND WARRANTS (Tab

STOCK OPTIONS AND WARRANTS (Tables)	6 Months Ended
	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Option Activity	The following table summarizes the activities for the Company’s stock options for the six months ended June 30, 2016: Options Outstanding Weighted - Average Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price in years) (in 000's) (1) Balance December 31, 2015 8,822,500 $ 0.76 2.6 Granted 4,225,000 $ 0.80 Cancelled/forfeited/expired (1,737,500 ) $ (0.83 ) Balance June 30, 2016 11,310,000 $ 0.76 2.7 $ - Exercisable at June 30, 2016 6,532,496 $ 0.81 1.6 $ - Exercisable at June 30, 2016 and expected to vest thereafter 11,310,000 $ 0.76 2.7 $ - (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $0.12 for the Company’s common stock on June 30, 2016.
Schedule of Warrant Activity	The following table summarizes the activities for the Company warrants for the six months ended June 30, 2016: Remaining Aggregate Weighted- Contractual Intrinsic Number of Average Term Value Shares Exercise Price in years) (in 000's) (1) Balance December 31, 2015 26,365,896 $ 1.02 0.4 Expired (1,242,858 ) (0.10 ) - Granted 131,700 $ 0.90 - Balance June 30, 2016 25,254,738 $ 1.07 0.8 $ 8 Exercisable at June 30, 2016 25,254,738 $ 1.07 0.8 $ 8 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.12 for the Company’s common stock on June 30, 2016.

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
	Jun. 30, 2016
Accounting Policies [Abstract]
Minimum period for increase to value of underlying technical assets	12 months
Maximum period for increase to value of underlying technical assets	18 months

MANAGEMENT PLANS (Details)

MANAGEMENT PLANS (Details) - USD ($)	Aug. 12, 2016	Jun. 30, 2016	Dec. 31, 2015	Jun. 30, 2015	Dec. 31, 2014
Going Concern [Line Items]
Cash positions		$ 3,735	$ 16,646	$ 409,712	$ 1,652,392
Subsequent Event [Member]
Going Concern [Line Items]
Cash positions	$ 40,000

ACCOUNTS PAYABLE AND ACCRUED 23

ACCOUNTS PAYABLE AND ACCRUED EXPENSES - RELATED PARTIES (Details) - USD ($)	Jun. 30, 2016	Dec. 31, 2015
Related Party Transaction [Line Items]
Due to related party	$ 198,568
Chairman of Board [Member]
Related Party Transaction [Line Items]
Due to related party	114,126
Chief Executive Officer [Member]
Related Party Transaction [Line Items]
Due to related party	26,154
Chief Financial Officer [Member]
Related Party Transaction [Line Items]
Due to related party	32,721
Chief Financial Officer [Member] | Unpaid salary [Member]
Related Party Transaction [Line Items]
Due to related party	11,538
Chief Financial Officer [Member] | Unpaid health insurance [Member]
Related Party Transaction [Line Items]
Due to related party	14,670
Chief Financial Officer [Member] | Unpaid accounting services [Member]
Related Party Transaction [Line Items]
Due to related party	6,513
Beneficial Owner [Member]
Related Party Transaction [Line Items]
Due to related party	$ 20,567
Ownership percentage	5.00%
Son of Beneficial Owner [Member]
Related Party Transaction [Line Items]
Due to related party	$ 5,000

CONVERTIBLE NOTES PAYABLE (Deta

CONVERTIBLE NOTES PAYABLE (Details) - USD ($)	May 05, 2016	May 11, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Additional notes issued to stockholders	$ 100,000	$ 940,000			$ 100,000	$ 2,940,000
Convertible Promissory Notes due March 5, 2016 [Member]
Debt Instrument [Line Items]
Interest accrued					$ 374,542		$ 225,452
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		$ 0.90
Convertible Promissory Notes due March 5, 2016, Issued on March 6, 2015 [Member]
Debt Instrument [Line Items]
Interest rate			10.00%		10.00%
Interest expense, notes payable			$ 75,792	$ 62,998	$ 149,091	$ 77,245
Convertible Promissory Notes due March 5, 2016, Issued on May 11, 2015 [Member]
Debt Instrument [Line Items]
Note payable included per unit			$ 2,000,000		$ 2,000,000

NOTES PAYABLE - STOCKHOLDERS (D

NOTES PAYABLE - STOCKHOLDERS (Details) - USD ($)	Jan. 31, 2016	Jun. 30, 2016	Apr. 30, 2016	Mar. 31, 2016	Feb. 29, 2016	Feb. 28, 2016	Feb. 29, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Amount of debt in default		$ 551,000						$ 551,000		$ 551,000
Note payable		1,674,041						1,674,041		1,674,041		$ 988,918
Fair value of options or warrants								2,178		$ 8,537
Dividend yield										0.00%
Vesting period										2 years
Expected volatility, minimum										135.40%
Expected volatility, maximum										183.10%
Risk-free interest rate, minimum										0.71%
Risk-free interest rate, maximum										0.98%
Note Payable [Member]
Debt Instrument [Line Items]
Amount of debt in default		551,000						551,000		$ 551,000
Commitment fee, percentage										7.50%
Commitment fees, amount										$ 76,913		54,405
Note payable		174,257						174,257		174,257		$ 81,831
Interest accrued including commitment fee amount								58,555	$ 0	127,487	$ 0
January 15 and 19, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount	$ 62,500
Warrant Term	2 years
Warrant to purchase a number of shares of common stock	12,500
Exercise price of warrants	$ 0.90
Interest rate	10.00%
Additional Secured Convertible Promissory Notes	$ 1,000,000
January 29 and February 3, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount					$ 90,000		$ 90,000
Warrant Term							2 years
Warrant to purchase a number of shares of common stock					18,000		18,000
Exercise price of warrants					$ 0.90		$ 0.90
Interest rate					10.00%		10.00%
Additional Secured Convertible Promissory Notes					$ 1,000,000		$ 1,000,000
February 23, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount					$ 26,000		$ 26,000
Warrant Term					2 years
Warrant to purchase a number of shares of common stock					5,200		5,200
Exercise price of warrants					$ 0.90		$ 0.90
Interest rate					10.00%		10.00%
Additional Secured Convertible Promissory Notes					$ 1,000,000		$ 1,000,000
Amendment To Promissory Note Agreements [Member]
Debt Instrument [Line Items]
Principal amount						$ 475,300
Amendment To Promissory Note Agreements [Member] | Minimum [Member]
Debt Instrument [Line Items]
Note payable maturity date						Jul. 20, 2016
Amendment To Promissory Note Agreements [Member] | Maximum [Member]
Debt Instrument [Line Items]
Note payable maturity date						Sep. 18, 2016
March 2, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount				$ 5,000
Warrant Term				2 years
Warrant to purchase a number of shares of common stock				1,000
Exercise price of warrants				$ 0.90
Interest rate				10.00%
Additional Secured Convertible Promissory Notes				$ 1,000,000
March 4, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount				$ 100,100
Warrant Term				2 years
Warrant to purchase a number of shares of common stock				20,020
Exercise price of warrants				$ 0.90
Interest rate				10.00%
Commitment fee, percentage				7.50%
Additional Secured Convertible Promissory Notes				$ 1,000,000
March 15, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount				$ 200,000
Warrant Term				2 years
Warrant to purchase a number of shares of common stock				40,000
Exercise price of warrants				$ 0.90
Interest rate				10.00%
Commitment fee, percentage				7.50%
Additional Secured Convertible Promissory Notes				$ 1,000,000
April 18, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount			$ 20,000
Warrant Term			2 years
Warrant to purchase a number of shares of common stock			4,000
Exercise price of warrants			$ 0.90
Interest rate			10.00%
Additional Secured Convertible Promissory Notes			$ 1,000,000
April 20, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount			$ 5,000
Warrant Term			2 years
Warrant to purchase a number of shares of common stock			1,000
Exercise price of warrants			$ 0.90
Interest rate			10.00%
Additional Secured Convertible Promissory Notes			$ 1,000,000
April 25, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount			$ 50,000
Warrant Term			2 years
Warrant to purchase a number of shares of common stock			10,000
Exercise price of warrants			$ 0.90
Interest rate			10.00%
Additional Secured Convertible Promissory Notes			$ 1,000,000
June 1, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount		$ 50,000						$ 50,000		$ 50,000
Warrant Term		2 years
Warrant to purchase a number of shares of common stock		10,000						10,000		10,000
Exercise price of warrants		$ 0.90						$ 0.90		$ 0.90
Interest rate		10.00%						10.00%		10.00%
Additional Secured Convertible Promissory Notes		$ 1,000,000						$ 1,000,000		$ 1,000,000
June 9, 2016 Agreement [Member]
Debt Instrument [Line Items]
Principal amount		$ 50,000						$ 50,000		$ 50,000
Warrant Term		2 years
Warrant to purchase a number of shares of common stock		10,000						10,000		10,000
Exercise price of warrants		$ 0.90						$ 0.90		$ 0.90
Interest rate		10.00%						10.00%		10.00%
Additional Secured Convertible Promissory Notes		$ 1,000,000						$ 1,000,000		$ 1,000,000

LOANS PAYABLE (Details)

LOANS PAYABLE (Details) - USD ($)	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Loans Payable
Aggregate loan amount received	$ 9,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Income Tax Disclosure [Abstract]
Income tax expense
Change in unrecognized tax benefits
Accrual for uncertain tax positions

CONVERTIBLE PREFERRED STOCK (De

CONVERTIBLE PREFERRED STOCK (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Class of Stock [Line Items]
Dividends declared	$ 268,281	$ 267,545	$ 536,561	$ 532,150
Preferred Stock [Member]
Class of Stock [Line Items]
Dividend rate			8.00%
Dividends declared			$ 2,340,863

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	Apr. 14, 2016	Jan. 25, 2016	Feb. 28, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Mar. 31, 2016
Equity Issued [Line Items]
Fair value of options or warrants				$ 2,178		$ 8,537
Dividend yield						0.00%
Vesting period						2 years
Compensation expense					$ 89,612
Expected volatility, minimum						135.40%
Expected volatility, maximum						183.10%
Risk-free interest rate, minimum						0.71%
Risk-free interest rate, maximum						0.98%
Share price	$ 0.11			$ 0.12		$ 0.12
Amount reclassified to additional paid-in capital				$ 48,125		$ 48,125
Reversal of expense from forfeiture of restricted common stock						$ 10,312
Extension Of Warrants [Member]
Equity Issued [Line Items]
Number of shares entitled by warrants		24,372,838
Dividend yield						0.00%
Expected volatility						161.30%
Risk-free interest rate						47.00%
Vesting period						1 year 3 months 7 days
Warrant extension		1 year
Warrant Term						0 years
Fair value of extended warrants								$ 1,305,411
Minimum [Member] | Extension Of Warrants [Member]
Equity Issued [Line Items]
Exercise price of warrants		$ 0.01
Warrants/Options expiration date		Jan. 26, 2017
Maximum [Member] | Extension Of Warrants [Member]
Equity Issued [Line Items]
Exercise price of warrants		$ 3
Warrants/Options expiration date		Dec. 28, 2017
Chief Executive Officer and Chairman of the Board [Member]
Equity Issued [Line Items]
Dividend yield	0.00%
Expected volatility	121.70%
Risk-free interest rate	1.24%
Vesting period	5 years
Compensation expense	$ 27,500
Options granted in period	3,000,000
Price exercisable	$ 0.9
Annual salary	$ 240,000
Restricted stock units	500,000
Vesting immediately	250,000
Fair value of options	$ 196,505
Share price	$ 0.11
Warrant [Member]
Equity Issued [Line Items]
Number of shares entitled by warrants			3,877,970
Dividend yield			0.00%
Expected volatility			95.10%
Risk-free interest rate			0.22%
Vesting period			1 year 3 months 11 days
Compensation expense			$ 219,051
Warrant extension			1 year
Warrant [Member] | Minimum [Member]
Equity Issued [Line Items]
Exercise price of warrants			$ 0.01
Warrants/Options expiration date			Feb. 23, 2016
Warrant [Member] | Maximum [Member]
Equity Issued [Line Items]
Exercise price of warrants			$ 1
Warrants/Options expiration date			Dec. 28, 2016
Stock Options [Member]
Equity Issued [Line Items]
Compensation expense				$ 93,366	89,612	$ 162,773	279,976
Options granted in period						4,225,000
Price exercisable				$ 0.81		$ 0.81
Share price				$ 0.12		$ 0.12
Stock Options [Member] | Executive Officer [Member]
Equity Issued [Line Items]
Dividend yield			0.00%
Expected volatility			96.40%
Risk-free interest rate			0.64%
Vesting period			2 years
Compensation expense			$ 9,692
Expected volatility			96.40%
Extension period of options			2 years
Options granted in period			3,500,000
Price exercisable			$ 0.04
(RSUs) [Member]
Equity Issued [Line Items]
Compensation expense						$ 32,083
Restricted stock units							55,000
Vesting immediately							250,000
(RSUs) [Member] | Chief Executive Officer and Chairman of the Board [Member]
Equity Issued [Line Items]
Compensation expense	$ 27,500
Awards other than options granted in period	500,000
(RSUs) [Member] | Chief Executive Officer and Chairman of the Board [Member] | Vesting Immediately [Member]
Equity Issued [Line Items]
Awards other than options granted in period	250,000
(RSUs) [Member] | Chief Executive Officer and Chairman of the Board [Member] | Vesting On One Year Anniversary [Member]
Equity Issued [Line Items]
Awards other than options granted in period	250,000

STOCK OPTIONS AND WARRANTS (Nar

STOCK OPTIONS AND WARRANTS (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense		$ 89,612
Equity Incentive Plan 2008 [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	9,590,000		9,590,000
Shares available for grant	5,560,000		5,560,000
Equity Incentive Plan 2013 [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	1,390,000		1,390,000
Shares available for grant	3,110,000		3,110,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 93,366	$ 89,612	$ 162,773	$ 279,976
Unrecognized compensation cost related to stock options	$ 494,841		$ 494,841
Unrecognized compensation cost related to stock options, period of recognition			2 years 1 month 6 days

STOCK OPTIONS AND WARRANTS (Sch

STOCK OPTIONS AND WARRANTS (Schedule of Stock Option Activity) (Details) - USD ($)		Apr. 14, 2016	Jun. 30, 2016	Dec. 31, 2015
Aggregate Intrinsic Value:
Closing stock price		$ 0.11	$ 0.12
Stock Options [Member]
Number of Shares:
Balance December 31, 2015			8,822,500
Granted			4,225,000
Cancelled/forfeited/expired			(1,737,500)
Balance June 30, 2016			11,310,000	8,822,500
Exercisable at June 30, 2016			6,532,496
Exercisable at June 30, 2016 and expected to vest thereafter			11,310,000
Weighted Average Exercise Price:
Balance December 31, 2015			$ 0.76
Granted			0.80
Cancelled/forfeited/expired			(0.83)
Balance June 30, 2016			0.76	$ 0.76
Exercisable at June 30, 2016			0.81
Exercisable at June 30, 2016 and expected to vest thereafter			$ 0.76
Weighted Average Remaining Contractual Term:
Balance June 30, 2016			2 years 8 months 12 days	2 years 7 months 6 days
Exercisable at June 30, 2016			1 year 7 months 6 days
Exercisable at June 30, 2016 and expected to vest thereafter			2 years 8 months 12 days
Aggregate Intrinsic Value:
Balance June 30, 2016	[1]
Exercisable at June 30, 2016	[1]
Exercisable at June 30, 2016 and expected to vest thereafter	[1]
Closing stock price			$ 0.12
[1]	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the closing stock price of $0.12 for the Company's common stock on June 30, 2016.

STOCK OPTIONS AND WARRANTS (S32

STOCK OPTIONS AND WARRANTS (Schedule of Warrant Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2016	Dec. 31, 2015	Apr. 14, 2016
Number of Shares:
Balance December 31, 2015		26,365,896
Expired		(1,242,858)
Granted		131,700
Balance June 30, 2016		25,254,738	26,365,896
Exercisable at June 30, 2016		25,254,738
Weighted Average Exercise Price:
Balance December 31, 2015		$ 1.02
Expired		(0.10)
Granted		0.90
Balance June 30, 2016		1.07	$ 1.02
Exercisable at June 30, 2016		$ 1.07
Weighted- Average Remaining Contractual Term:
Balance December 31, 2015		9 months 18 days	4 months 24 days
Exercisable at June 30, 2016		9 months 18 days
Aggregate Intrinsic Value:
Balance June 30, 2016	[1]	$ 8
Exercisable at June 30, 2016	[1]	$ 8
Closing stock price		$ 0.12		$ 0.11
[1]	The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.12 for the Company's common stock on June 30, 2016.

OPERATING LEASES (Details)

OPERATING LEASES (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Leases [Abstract]
Total rent expense under leases	$ 3,417	$ 72,594	$ 11,415	$ 172,028