Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Document And Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Signal Advance Inc | ' |
Entity Central Index Key | '0001545061 | ' |
Trading Symbol | 'sigl | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 9,662,409 |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Balance_Sheets
Balance Sheets (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current Assets | ' | ' |
Cash or Cash Equivalent | $28,492 | $11,497 |
Total Current Assets | 28,492 | 11,497 |
Fixed Assets | ' | ' |
Cost / Basis | 126,467 | 125,807 |
Depreciation | -122,299 | -121,884 |
Total Fixed Assets | 4,169 | 3,924 |
Other Assets | ' | ' |
Available for Sale Securities - Note C | 0 | 13 |
Long-Term Investments | 21,438 | 21,438 |
Total Other Assets | 21,438 | 21,451 |
TOTAL ASSETS | 54,099 | 36,871 |
Liabilities | ' | ' |
Loan from Shareholder - Note F | 36,807 | 118,406 |
Total Liabilities | 36,807 | 118,406 |
Shareholders' Equity | ' | ' |
Common Stock - $0 par value - shares issued and outstanding 9,662,409, as of Mar. 31, 2014 9,520,409, as of Dec. 31, 2013 | ' | ' |
Capital Investment | ' | ' |
Cash | 709,101 | 667,101 |
Services/Assets | 3,609,732 | 3,509,732 |
Total Capital Investment | 4,318,834 | 4,176,834 |
Retained Earnings | -4,258,368 | -3,057,220 |
Net Income | -43,174 | -1,201,149 |
Total Equity | 17,292 | -81,535 |
TOTAL LIABILITIES & EQUITY | $54,099 | $36,871 |
Balance_Sheets_Parentheticals
Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock no par value (in dollars per share) | $0 | $0 |
Common stock, shares issued | 9,662,409 | 9,520,409 |
Common stock, shares outstanding | 9,662,409 | 9,520,409 |
Statements_of_Income_and_Expen
Statements of Income and Expense Distribution (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income | ' | ' |
Other Income | $0 | $0 |
Total income | 0 | 0 |
Gross Profit | 0 | 0 |
Expense | ' | ' |
General, Selling & Administrative | 8,642 | 13,788 |
Intellectual Property Protection - Note B | 7,418 | 5,575 |
Professional Services | 22,686 | 1,846 |
R&D Expenses | 4,000 | 0 |
Depreciation | 415 | 677 |
Total Expense | 43,161 | 21,886 |
Net Ordinary Income | -43,161 | -21,886 |
Other Expense | ' | ' |
Available for Sale Securities - Note C | 13 | 0 |
Total Other Expense | 13 | 0 |
Net Other Income | -13 | 0 |
NET INCOME | ($43,174) | ($21,886) |
Statements_of_Cash_Flow
Statements of Cash Flow (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
OPERATING ACTIVITIES | ' | ' |
Net Income | ($43,174) | ($21,886) |
Adjustments to reconcile Net Income to net cash provided by operations: | ' | ' |
Depreciation | 415 | 677 |
Non-Cash Expenses: | ' | ' |
Services Rendered in Exchange for Equity | 100,000 | 0 |
Net cash provided by Operating Activities | 57,241 | -21,209 |
INVESTING ACTIVITIES | ' | ' |
Fixed Assets (Cost / Basis) | -660 | -1,520 |
Available for Sale Securities | 13 | 0 |
Net cash provided by Investing Activities | -648 | -1,520 |
FINANCING ACTIVITIES | ' | ' |
Capital Investment (Sale of Common Stock) | 42,000 | 0 |
Loan from Shareholder | -81,599 | 64,655 |
Net cash provided by Financing Activities | -39,599 | 64,655 |
Net cash increase for period | 16,995 | 41,925 |
Cash at beginning of period | 11,497 | 8,110 |
Cash at end of period | 28,492 | 50,035 |
Supplemental Disclosure | ' | ' |
Interest Expense | $898 | $2,343 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
NATURE OF OPERATIONS AND ORGANIZATION: Signal Advance, Inc. (the Company) is currently conducting operations. Signal Advance, Inc., incorporated in Texas on June 4, 1992, is an engineering product and procedure development and consulting firm focused on the development of applications for emerging technologies. The Company has significant experience in computer technology, distributed information systems, and data acquisition and analysis systems, as well as, medical education, intellectual property protection and medical-legal litigation support. The Company has focused its resources on the improvement of signal detection systems through the development and refinement of its proprietary "Signal Advance" technology which has potential application in a wide range of medical applications, as well as applications outside of biomedicine. | |
CASH AND CASH EQUIVALENTS: The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | |
IMPAIRMENT: The Company anticipates amortizing intangible assets over their estimated useful lives unless such lives are deemed indefinite. Amortized intangible assets are tested for impairment based on undiscounted cash flows, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested annually for impairment and written down to fair value as required. No impairment of intangible assets has been identified during any of the periods presented (FASB ASC 350-30). | |
USE OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION: The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. The Company's financial statements include amounts and all adjustments that, in the opinion of management and based on management's best estimates and judgments, are necessary to make the financial statement not misleading. Actual results could differ from those estimates. | |
AVAILABLE FOR SALE SECURITIES: The Company holds certain investments that are treated as available-for-sale securities (FASB ASC 320-10-25) and stated at their fair market values. All investments are available for current operations and are classified as other assets in the balance sheet. Unrealized holding gains and losses are included as a component of other comprehensive income (loss) until realized (FASB ASC 320-35-1). Realized gains and losses are determined by the specific identification method and are included in 'Other Income (Loss)' in the income statement. | |
RESEARCH AND DEVELOPMENT: Research and development costs are expensed as incurred until technological feasibility can be determined (FASB ASC 730-10-25). Upfront and milestone payments made to third parties in connection with research and development collaborations are expensed as incurred up to the point of regulatory approval, marketability, licensing, lease, or sale when the net present value and useful life is able to be determined. Payments made to third parties subsequent to the aforementioned events will be capitalized. Amounts capitalized for such payments will be included in other intangibles, less the net of the accumulated amortization, once their useful lives can be determined. | |
REVENUE RECOGNITION: The Company revenues are generated by: 1) Providing consulting services; 2) Licensing intellectual property; and 3) Providing consulting services to licensees to facilitate implementation. | |
Revenue is not recognized until it is realized or realizable and earned (FASB Concepts Statement No. 5, Recognition and Measurement in Financial Statements of Business Enterprises, paragraphs 83-84). In accordance with ASC 605, 'Revenue Recognition,' the company recognizes as revenue the fees charged clients as referenced below because 1) persuasive evidence of an arrangement exists, 2) the fees charged as royalties and/or for services are substantially fixed or determinable during the period in which services are provided or royalties are collected, 3) the company and its clients understand the specific nature and terms of the agreed upon transactions, and 4) collectability is reasonable assured after services have been rendered, or according to a royalty payment schedule. | |
Consulting Revenue – For revenues generated by providing engineering, scientific and medical/legal consulting services. Services are charged at an hourly rate and clients are charged and revenue is recognized monthly. | |
License Revenue - As part of the Company's business model and as a result of the company's on-going investment in research and development, the company plans to license and sell the rights to certain of its intellectual property (IP) including internally developed patents, trade secrets and technological know-how. The typical license will call for a non-refundable initiation fee, escalating minimum royalties to be paid before a given product is marketed, and continuing royalties based on gross sales once marketing has begun, confirmed by annual audits. The license will also include a set amount of time for consulting. Licensees will also be required to participate in patent maintenance and defense. | |
Certain transfers of IP to third parties may be licensing/royalty-based, transaction-based, or other forms of transfer. Licensing/royalty-based fees involve transfers in which the company earns the income over time, as a lump-sum payment or the amount of income is not fixed or determinable until the licensee sells future related products (i.e., variable royalty, based upon licensee's revenue). Accordingly, following delivery and or legal conveyance of rights to the aforementioned IP to the client, and following inception of the license term, revenue is recognized in a manner consistent with the nature of the transaction and the earnings process. | |
Combined License/Consulting Revenue - in certain circumstances the license agreement will also include consulting services to facilitate the use of the Company's IP, in which case the arrangement may include multiple deliverables. If the client is dependent on the consulting services of the Company to bring value to the license then the license and consulting services will be considered a single unit of accounting. If, however, the license has value to the client, independent of the consulting services provided by the Company, then each deliverable has value on a standalone basis. As such each delivered item or items shall be considered a separate unit of accounting (FASB ASC 605-25). | |
Alternatively, license terms may contain a citation of milestones of achievement by the licensee. Each milestone may be tied to an increase in the minimum royalty. For example, biomedical milestones may include completion of animal trials, submission and then approval of 510K applications or pre-market approval by the FDA. Each licensee pursuing a biomedical application will be expected to develop its own clinical data to secure such pre-market notification (510k) or approval. Under these circumstances, the deliverable, or unit of accounting, consideration may be contingent on the substantive achievement of one or more milestones. As such, revenue is recognized in its entirety in the period in which the milestone is achieved (FASB ASC 605-28). | |
During the Interim three month periods ended March 31, 2014 and the year ended December 31, 2013, the Company recognized no revenue. | |
PROPERTY, PLANT AND EQUIPMENT: Fixed Assets (land, buildings and equipment) are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable assets and is provided using the Modified Accelerated Cost Recovery System (MACRS) method. In the case of disposals, assets and related depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income. | |
INCOME TAXES: The Company takes an asset and liability approach to financial accounting and reporting for income taxes. The difference between the financial statement and tax basis of assets and liabilities is determined annually. Deferred income tax assets and liabilities are computed for those differences that have future tax consequences using the currently enacted tax laws and rates that apply to the periods in which they are expected to affect taxable income. Valuation allowances are established, if necessary, to reduce the deferred tax asset to the amount that will assure full realization (FASB ASC 740). As of December 31, 2012, the Company recorded a valuation allowance that reduced its deferred tax assets to zero. | |
CONCENTRATIONS OF CREDIT RISK: Financial instruments which potentially subject the Company to significant concentrations of credit risk consist primarily of investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities can occur in the near term and that each change could materially affect the amounts reported in the financial statement. | |
GOING CONCERN: The Company is currently conducting operations. However, it has not yet generated sufficient operating revenue to fund its development activities to date. As such, the Company has relied on funding by the Company's President and the sale of its common stock. There is a substantial doubt that the Company will generate sufficient revenues in future years to meet its operating cash requirements. Accordingly, the Company's ability to continue operations in the short-term depends on its success in obtaining equity or debt financing in an amount sufficient to support its operations. This could raise doubt as to its ability to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty. |
INTELLECTUAL_PROPERTY
INTELLECTUAL PROPERTY | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Intellectual Property [Abstract] | ' | ||||
INTELLECTUAL PROPERTY | ' | ||||
NOTE B - INTELLECTUAL PROPERTY | |||||
Intellectual property protection is being pursued for the specifically identifiable intellectual property (IP) termed Signal Advance technology. The following table lists the patent applications and issued patents and their respective status: | |||||
Patent or Appl. No. | Status | ||||
Patent Office | |||||
United States | 8452544 | Issued May 2013 | |||
China | ZL 200880015288.2 | Issued Nov. 2012 | |||
Europe | EP 08 75 4879.8 | Under examination | |||
Mexico | MX/A/2009/00921 | Claims Allowed | |||
India | 3465/KOLNP/2009 | Not yet examined | |||
Additional patent submissions related to specific applications, SA circuit configurations, and signal processing techniques are in preparation. | |||||
The IP derives from an assignment of the IP in the form of a patent application filed with the USPTO as well as any patents which issue as a result of U.S. and related international patent applications. | |||||
As ASSIGNEE, the Company is responsible for: | |||||
1) funding and executing activities required for any regulatory approval, development, implementation and commercialization; | |||||
2) introducing assigned products which incorporate the patent pending or patented technology to the commercial market; | |||||
3) make its best efforts to: | |||||
a) develop and market assigned products and services, and | |||||
b) increase and extend the commercialization of assigned products, and | |||||
4) commence the advertising and marketing assigned products not later than 24 months following the granting of the patent | |||||
The assignment was privately negotiated between the Company's President, Dr. Hymel (Assignor) and the remaining members of the board of directors for the Company (Assignee). Consideration to acquire the IP rights, in the form of equity (specifically 1,525,000 shares of SAI common stock, to date) was expensed as the assignment is considered a transaction between entities under common control (FASB ASC 805-50-30-5,6). The value of the common stock issued in exchange for the equity was based on the most recent private sales of stock (FASB ASC 505-50-30-6). In addition, royalties are payable to Assignor on net sales and/or license fees as follows: a) <$10M: 6%; b) $10-$25M: 8%, and c)>$25M: 10%. Assignor's remedy for non-payment is the termination of the assignment. | |||||
The costs incurred in acquiring the assignment of the Signal Advance IP as well as the pursuit of domestic and international patent and trademark protection are expensed (included as "Intellectual Property" under expenses on the Statements of Income and Retained Earnings (Accumulated Deficit)) for the the interim three month periods ended March 31, 2014, and 2013. These costs include expenses to prepare and prosecute patent applications and protect the IP, include filing and issuance fees, fees for consultants, experts, advisors, patent attorneys, including foreign associates, patent applications, claims and other amendments, responses to office actions, etc. Any patent infringement case may hinder the Company's ability to generate revenues. |
AVAILABLE_FOR_SALE_SECURITIES
AVAILABLE FOR SALE SECURITIES | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Available-for-sale Securities [Abstract] | ' | ||||||||||||
AVAILABLE FOR SALE SECURITIES | ' | ||||||||||||
NOTE C - AVAILABLE FOR SALE SECURITIES | |||||||||||||
Cost and fair value of available for sale securities (acquired Jan. 10, 2011) as of March 31, 2014 are as follows: | |||||||||||||
Cost Gross | Gain(Loss) | Fair Value | |||||||||||
Equity Securities Available for Sale | $ | 25,000 | (25,000 | ) | -0- |
EQUIPMENT
EQUIPMENT | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
EQUIPMENT | ' | ||||||||
NOTE D - EQUIPMENT | |||||||||
Property and equipment as of March 31, 2104 and December 31, 2013 are summarized as follows: | |||||||||
Mar. 31, 2014 | Dec. 31, 2013 | ||||||||
Cost / Basis | 126,467 | 125,807 | |||||||
Depreciation | (122,299 | ) | (121,884 | ) | |||||
Total Fixed Assets | 4,169 | 3,924 | |||||||
Depreciation expense during the interim periods ended March 31, 2014 and 2013 were $415 and $677, respectively. |
INCOME_TAXES
INCOME TAXES | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
INCOME TAXES | ' | ||||
NOTE E - INCOME TAXES | |||||
Operating Loss Carry-Forwards: As of December 31, 2013, the Company has a net operating tax loss carry-forward of $1,201,149. Other loss carry-forwards from previous periods may be offset against future federal income taxes. If not used, loss carry-forwards will expire as indicated in the following table: | |||||
Year | Operating Losses | Year | Operating Losses | ||
2022 | 108,119 | 2028 | 1,443,756 | ||
2023 | 104,123 | 2029 | 306,926 | ||
2024 | 114,901 | 2030 | 32,146 | ||
2025 | 52,988 | 2031 | 160,674 | ||
2026 | 218,176 | 2032 | 179,372 | ||
2027 | 256,471 | 2033 | 1,201,149 | ||
Deferred Tax Asset: A valuation allowance was not recognized for the full amount of the deferred tax asset because, based on the weight of available evidence, it is more likely than not that some portion or the entire deferred tax asset will not be realized. | |||||
Tax Depreciation: The Company uses the Modified Accelerated Cost Recovery System (MACRS) for depreciation of property for tax purposes. |
SHORT_TERM_LOAN
SHORT TERM LOAN | 3 Months Ended |
Mar. 31, 2014 | |
Debt Disclosure [Abstract] | ' |
SHORT TERM LOAN | ' |
Note F - SHORT TERM LOAN | |
The President has loaned funds to the Company under the terms of a Line of Credit Promissory Note negotiated with, and approved by, the Board of Directors. |
FACILITIES_LEASE
FACILITIES LEASE | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Leases [Abstract] | ' | ||||
FACILITIES LEASE | ' | ||||
NOTE G - FACILITIES LEASE | |||||
The Company currently leases office space, from its president, on a month to month basis at a rate of $700 per month. The following is a schedule of future minimum payments for 4 years under the above operating lease as of the year ended December 2013. | |||||
Year | Amount | ||||
2014 | $ | 8,400 | |||
2015 | 8,400 | ||||
2016 | 8,400 | ||||
2017 | 8,400 | ||||
Total: | $ | 33,600 | |||
Rental expense amounted to $2,100 for the interim three month periods ended March 31, 2014 and 2013. |
Schedules_of_General_Selling_a
Schedules of General, Selling and Administrative Expenses | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Selling, General and Administrative Expense [Abstract] | ' | ||||||||
Schedules of General, Selling and Administrative Expenses | ' | ||||||||
Schedules of General, Selling and Administrative Expenses | |||||||||
Interim Three Month Periods Ended March 31, 2014 and 2013 | |||||||||
(Unaudited) | |||||||||
Jan - Mar 14 | Jan - Mar 13 | ||||||||
Automobile Expense | 0 | 3,085 | |||||||
Bank Service Charges | 106 | 35 | |||||||
Employee Benefits | 1,641 | 0 | |||||||
Fees/Licenses | 300 | 0 | |||||||
Insurance | 215 | 300 | |||||||
Interest Expense | 898 | 2,343 | |||||||
Maintenance and Repairs | 94 | 39 | |||||||
Marketing/Advertising | 250 | 250 | |||||||
Meals/Entertainment | 381 | 111 | |||||||
Office Supplies | 47 | 401 | |||||||
Postage and Delivery | 128 | 79 | |||||||
Rent - Note G | 2,100 | 2,100 | |||||||
Telephone | 300 | 450 | |||||||
Travel | 1,219 | 3,280 | |||||||
Utilities | 962 | 1,316 | |||||||
Total Expense | 8,642 | 13,788 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
CASH AND CASH EQUIVALENTS | ' |
CASH AND CASH EQUIVALENTS: The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. | |
IMPAIRMENT | ' |
IMPAIRMENT: The Company anticipates amortizing intangible assets over their estimated useful lives unless such lives are deemed indefinite. Amortized intangible assets are tested for impairment based on undiscounted cash flows, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. Intangible assets with indefinite lives are tested annually for impairment and written down to fair value as required. No impairment of intangible assets has been identified during any of the periods presented (FASB ASC 350-30). | |
USE OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION | ' |
USE OF ESTIMATES IN FINANCIAL STATEMENT PREPARATION: The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, the 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. The Company's financial statements include amounts and all adjustments that, in the opinion of management and based on management's best estimates and judgments, are necessary to make the financial statement not misleading. Actual results could differ from those estimates. | |
AVAILABLE FOR SALE SECURITIES | ' |
AVAILABLE FOR SALE SECURITIES: The Company holds certain investments that are treated as available-for-sale securities (FASB ASC 320-10-25) and stated at their fair market values. All investments are available for current operations and are classified as other assets in the balance sheet. Unrealized holding gains and losses are included as a component of other comprehensive income (loss) until realized (FASB ASC 320-35-1). Realized gains and losses are determined by the specific identification method and are included in 'Other Income (Loss)' in the income statement. | |
RESEARCH AND DEVELOPMENT | ' |
RESEARCH AND DEVELOPMENT: Research and development costs are expensed as incurred until technological feasibility can be determined (FASB ASC 730-10-25). Upfront and milestone payments made to third parties in connection with research and development collaborations are expensed as incurred up to the point of regulatory approval, marketability, licensing, lease, or sale when the net present value and useful life is able to be determined. Payments made to third parties subsequent to the aforementioned events will be capitalized. Amounts capitalized for such payments will be included in other intangibles, less the net of the accumulated amortization, once their useful lives can be determined. | |
REVENUE RECOGNITION | ' |
REVENUE RECOGNITION: The Company revenues are generated by: 1) Providing consulting services; 2) Licensing intellectual property; and 3) Providing consulting services to licensees to facilitate implementation. | |
Revenue is not recognized until it is realized or realizable and earned (FASB Concepts Statement No. 5, Recognition and Measurement in Financial Statements of Business Enterprises, paragraphs 83-84). In accordance with ASC 605, 'Revenue Recognition,' the company recognizes as revenue the fees charged clients as referenced below because 1) persuasive evidence of an arrangement exists, 2) the fees charged as royalties and/or for services are substantially fixed or determinable during the period in which services are provided or royalties are collected, 3) the company and its clients understand the specific nature and terms of the agreed upon transactions, and 4) collectability is reasonable assured after services have been rendered, or according to a royalty payment schedule. | |
Consulting Revenue – For revenues generated by providing engineering, scientific and medical/legal consulting services. Services are charged at an hourly rate and clients are charged and revenue is recognized monthly. | |
License Revenue - As part of the Company's business model and as a result of the company's on-going investment in research and development, the company plans to license and sell the rights to certain of its intellectual property (IP) including internally developed patents, trade secrets and technological know-how. The typical license will call for a non-refundable initiation fee, escalating minimum royalties to be paid before a given product is marketed, and continuing royalties based on gross sales once marketing has begun, confirmed by annual audits. The license will also include a set amount of time for consulting. Licensees will also be required to participate in patent maintenance and defense. | |
Certain transfers of IP to third parties may be licensing/royalty-based, transaction-based, or other forms of transfer. Licensing/royalty-based fees involve transfers in which the company earns the income over time, as a lump-sum payment or the amount of income is not fixed or determinable until the licensee sells future related products (i.e., variable royalty, based upon licensee's revenue). Accordingly, following delivery and or legal conveyance of rights to the aforementioned IP to the client, and following inception of the license term, revenue is recognized in a manner consistent with the nature of the transaction and the earnings process. | |
Combined License/Consulting Revenue - in certain circumstances the license agreement will also include consulting services to facilitate the use of the Company's IP, in which case the arrangement may include multiple deliverables. If the client is dependent on the consulting services of the Company to bring value to the license then the license and consulting services will be considered a single unit of accounting. If, however, the license has value to the client, independent of the consulting services provided by the Company, then each deliverable has value on a standalone basis. As such each delivered item or items shall be considered a separate unit of accounting (FASB ASC 605-25). | |
Alternatively, license terms may contain a citation of milestones of achievement by the licensee. Each milestone may be tied to an increase in the minimum royalty. For example, biomedical milestones may include completion of animal trials, submission and then approval of 510K applications or pre-market approval by the FDA. Each licensee pursuing a biomedical application will be expected to develop its own clinical data to secure such pre-market notification (510k) or approval. Under these circumstances, the deliverable, or unit of accounting, consideration may be contingent on the substantive achievement of one or more milestones. As such, revenue is recognized in its entirety in the period in which the milestone is achieved (FASB ASC 605-28). | |
During the Interim three month periods ended March 31, 2014 and the year ended December 31, 2013, the Company recognized no revenue. | |
PROPERTY, PLANT AND EQUIPMENT | ' |
PROPERTY, PLANT AND EQUIPMENT: Fixed Assets (land, buildings and equipment) are carried at cost less accumulated depreciation. Depreciation is based on the estimated service lives of depreciable assets and is provided using the Modified Accelerated Cost Recovery System (MACRS) method. In the case of disposals, assets and related depreciation are removed from the accounts, and the net amounts, less proceeds from disposal, are included in income. | |
INCOME TAXES | ' |
INCOME TAXES: The Company takes an asset and liability approach to financial accounting and reporting for income taxes. The difference between the financial statement and tax basis of assets and liabilities is determined annually. Deferred income tax assets and liabilities are computed for those differences that have future tax consequences using the currently enacted tax laws and rates that apply to the periods in which they are expected to affect taxable income. Valuation allowances are established, if necessary, to reduce the deferred tax asset to the amount that will assure full realization (FASB ASC 740). As of December 31, 2012, the Company recorded a valuation allowance that reduced its deferred tax assets to zero. | |
CONCENTRATIONS OF CREDIT RISK | ' |
CONCENTRATIONS OF CREDIT RISK: Financial instruments which potentially subject the Company to significant concentrations of credit risk consist primarily of investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is reasonably possible that changes in the values of investment securities can occur in the near term and that each change could materially affect the amounts reported in the financial statement. | |
GOING CONCERN | ' |
GOING CONCERN: The Company is currently conducting operations. However, it has not yet generated sufficient operating revenue to fund its development activities to date. As such, the Company has relied on funding by the Company's President and the sale of its common stock. There is a substantial doubt that the Company will generate sufficient revenues in future years to meet its operating cash requirements. Accordingly, the Company's ability to continue operations in the short-term depends on its success in obtaining equity or debt financing in an amount sufficient to support its operations. This could raise doubt as to its ability to continue as a going concern. The financial statements do not include any adjustments that might result from this uncertainty. |
INTELLECTUAL_PROPERTY_Tables
INTELLECTUAL PROPERTY (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Intellectual Property [Abstract] | ' | ||||
Schedule of patent application issued | ' | ||||
Patent or Appl. No. | Status | ||||
Patent Office | |||||
United States | 8452544 | Issued May 2013 | |||
China | ZL 200880015288.2 | Issued Nov. 2012 | |||
Europe | EP 08 75 4879.8 | Under examination | |||
Mexico | MX/A/2009/00921 | Claims Allowed | |||
India | 3465/KOLNP/2009 | Not yet examined |
AVAILABLE_FOR_SALE_SECURITIES_
AVAILABLE FOR SALE SECURITIES (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Available-for-sale Securities [Abstract] | ' | ||||||||||||
Schedule of cost and fair value of available for sale securities | ' | ||||||||||||
Cost Gross | Gain(Loss) | Fair Value | |||||||||||
Equity Securities Available for Sale | $ | 25,000 | (25,000 | ) | -0- |
EQUIPMENT_Tables
EQUIPMENT (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Schedule of property and equipment | ' | ||||||||
Mar. 31, 2014 | Dec. 31, 2013 | ||||||||
Cost / Basis | 126,467 | 125,807 | |||||||
Depreciation | (122,299 | ) | (121,884 | ) | |||||
Total Fixed Assets | 4,169 | 3,924 |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Income Tax Disclosure [Abstract] | ' | ||||
Schedule of operating loss carry-forwards | ' | ||||
Year | Operating Losses | Year | Operating Losses | ||
2022 | 108,119 | 2028 | 1,443,756 | ||
2023 | 104,123 | 2029 | 306,926 | ||
2024 | 114,901 | 2030 | 32,146 | ||
2025 | 52,988 | 2031 | 160,674 | ||
2026 | 218,176 | 2032 | 179,372 | ||
2027 | 256,471 | 2033 | 1,201,149 |
FACILITIES_LEASE_Tables
FACILITIES LEASE (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Leases [Abstract] | ' | ||||
Schedule of future minimum payments under operating lease | ' | ||||
Year | Amount | ||||
2014 | $ | 8,400 | |||
2015 | 8,400 | ||||
2016 | 8,400 | ||||
2017 | 8,400 | ||||
Total: | $ | 33,600 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) (USD $) | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' |
Deferred tax assets | $0 |
INTELLECTUAL_PROPERTY_Details
INTELLECTUAL PROPERTY (Details) (Intellectual property) | 3 Months Ended |
Mar. 31, 2014 | |
United States | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Patent or Appl. No. | '8452544 |
Status | 'Issued May 2013 |
China | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Patent or Appl. No. | 'ZL 200880015288.2 |
Status | 'Issued Nov. 2012 |
Europe | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Patent or Appl. No. | 'EP 08 75 4879.8 |
Status | 'Under examination |
Mexico | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Patent or Appl. No. | 'MX/A/2009/00921 |
Status | 'Claims Allowed |
India | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Patent or Appl. No. | '3465/KOLNP/2009 |
Status | 'Not yet examined |
INTELLECTUAL_PROPERTY_Detail_T
INTELLECTUAL PROPERTY (Detail Textuals) | 3 Months Ended |
Mar. 31, 2014 | |
Intellectual Property [Abstract] | ' |
Number of shares issued as consideration to acquire intellectual property rights | 1,525,000 |
Conditions for royalty payments | 'Royalties are payable to Assignor on net sales and/or license fees as follows: a) $25M: 10%. |
AVAILABLE_FOR_SALE_SECURITIES_1
AVAILABLE FOR SALE SECURITIES (Details) (USD $) | Mar. 31, 2014 |
Available-for-sale Securities [Abstract] | ' |
Equity Securities Available for Sale, Cost Gross | $25,000 |
Equity Securities Available for Sale, Gain (Loss) | -25,000 |
Equity Securities Available for Sale, Fair Value | $0 |
EQUIPMENT_Details
EQUIPMENT (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Abstract] | ' | ' |
Cost / Basis | $126,467 | $125,807 |
Depreciation | -122,299 | -121,884 |
Total Fixed Assets | $4,169 | $3,924 |
EQUIPMENT_Detail_Textuals
EQUIPMENT (Detail Textuals) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Property, Plant and Equipment [Abstract] | ' | ' |
Depreciation expense | $415 | $677 |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 |
2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 | 2031 | 2032 | 2033 | ||
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating Losses | $1,201,149 | $108,119 | $104,123 | $114,901 | $52,988 | $218,176 | $256,471 | $1,443,756 | $306,926 | $32,146 | $160,674 | $179,372 | $1,201,149 |
INCOME_TAXES_Detail_Textuals
INCOME TAXES (Detail Textuals) (USD $) | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ' |
Operating tax loss carry-forward | $1,201,149 |
FACILITIES_LEASE_Details
FACILITIES LEASE (Details) (USD $) | Dec. 31, 2013 |
Leases [Abstract] | ' |
2014 | $8,400 |
2015 | 8,400 |
2016 | 8,400 |
2017 | 8,400 |
Total: | $33,600 |
FACILITIES_LEASE_Detail_Textua
FACILITIES LEASE (Detail Textuals) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Leases [Abstract] | ' | ' |
Operating leases, monthly rental payment | $700 | ' |
Operating lease period | '4 years | ' |
Rental expense | $2,100 | $2,100 |
Schedules_of_General_Selling_a1
Schedules of General, Selling and Administrative Expenses (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Selling, General and Administrative Expense [Abstract] | ' | ' |
Automobile Expense | $0 | $3,085 |
Bank Service Charges | 106 | 35 |
Employee Benefits | 1,641 | 0 |
Fees/Licenses | 300 | 0 |
Insurance | 215 | 300 |
Interest Expense | 898 | 2,343 |
Maintenance and Repairs | 94 | 39 |
Marketing/Advertising | 250 | 250 |
Meals/Entertainment | 381 | 111 |
Office Supplies | 47 | 401 |
Postage and Delivery | 128 | 79 |
Rent - Note G | 2,100 | 2,100 |
Telephone | 300 | 450 |
Travel | 1,219 | 3,280 |
Utilities | 962 | 1,316 |
Total Expense | $8,642 | $13,788 |