Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 11, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Signal Advance Inc | |
Entity Central Index Key | 1,545,061 | |
Trading Symbol | sigl | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 10,380,077 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 |
Balance Sheets (Unaudited)
Balance Sheets (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash or Cash Equivalent | $ 14,809 | $ 37,177 |
Total Current Assets | 14,809 | 37,177 |
Property and Equipment, net | 4,330 | 4,730 |
Total Property and Equipment, net | 4,330 | 4,730 |
Other Assets | ||
Long-Term Investments | 21,438 | |
Total Other Assets | 21,438 | |
TOTAL ASSETS | 19,139 | 63,345 |
Liabilities | ||
Line of Credit - Shareholder | 30,414 | 10,769 |
Total Liabilities | $ 30,414 | $ 10,769 |
Shareholders' deficit | ||
Common Stock - $0 par value 100,000,000 shares authorized - shares issued and outstanding 10,380,077, as of June 30, 2015 10,273,410, as of December 31, 2014 | ||
Additional paid-in capital | $ 5,265,335 | $ 5,130,335 |
Accumulated other comprehensive loss | (24,930) | (24,930) |
Accumulated deficit | (5,251,680) | (5,052,829) |
Total shareholders' equity (deficit) | (11,275) | 52,576 |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT) | $ 19,139 | $ 63,345 |
Balance Sheets (Unaudited) (Par
Balance Sheets (Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 10,380,077 | 10,273,410 |
Common stock, shares outstanding | 10,380,077 | 10,273,410 |
Statements of Operations (Unaud
Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Expense | ||||
General, Selling & Administrative | $ 8,804 | $ 7,664 | $ 17,372 | $ 16,306 |
Depreciation | 371 | 415 | 740 | 830 |
Impairment Expense | 21,438 | |||
Intellectual Property | 1,000 | 1,493 | 3,690 | 8,910 |
Professional Services | 59,945 | 146,231 | 131,361 | 162,917 |
Research and Development | 11,500 | 7,500 | 24,250 | 17,500 |
Total Expense | 81,620 | 163,303 | 198,851 | 206,463 |
Net loss | (81,620) | (163,303) | (198,851) | (206,463) |
Components of comprehensive loss: | ||||
Unrealized loss on available for sales securities | (13) | |||
Comprehensive loss | $ (81,620) | $ (163,303) | $ (198,851) | $ (206,476) |
Loss per share - basic and diluted (in dollars per share) | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.02) |
Weighted average shares outstanding - basic and diluted (in shares) | 10,349,799 | 9,780,046 | 10,318,392 | 9,676,083 |
Statements of Cash Flow (Unaudi
Statements of Cash Flow (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
OPERATING ACTIVITIES | ||
Net Loss | $ (198,851) | $ (206,463) |
Adjustments to reconcile Net loss to net cash provided by operations: | ||
Depreciation | 740 | 830 |
Impairment Expense | 21,438 | |
Stock compensation | 85,000 | 125,000 |
Net cash used in Operating Activities | (91,673) | (80,633) |
INVESTING ACTIVITIES | ||
Purchase of property and equipment | (340) | (660) |
Net cash used in Investing Activities | (340) | (660) |
FINANCING ACTIVITIES | ||
Common stock issued for cash | 52,000 | |
Line of credit - shareholder, net | 69,645 | 35,769 |
Net cash provided by Financing Activities | 69,645 | 87,769 |
Net cash (decrease) increase for period | (22,368) | 6,476 |
Cash at beginning of period | 37,177 | |
Cash at end of period | 14,809 | 17,973 |
Supplemental Disclosure | ||
Interest paid | 1,375 | 2,000 |
Non-Cash Transactions: | ||
Unrealized loss on available for sale securities | 13 | |
Repayment of line of credit - shareholder in common stock | $ 50,000 | $ 100,000 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF PRESENTATION: The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles 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. Operating results for the three and six month periods ended June 30, 2015, are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. The Company's 10-K for the year ended December 31, 2014 should be read in conjunction with this report. RECLASSIFICATIONS: For comparability, certain prior period amounts have been reclassified, where appropriate, to conform to the financial statement presentation used in 2015. NATURE OF OPERATIONS AND ORGANIZATION: Signal Advance, Inc. (the Company) was 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 and closed-loop control 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. INTANGIBLE ASSETS OR LONG LIVED ASSETS: 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. 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 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. Realized gains and losses are included in 'Other Income (Loss)' in the income statement. INVESTMENTS IN A LIMITED LIABILITY COMPANY: The Company held a minor investment (3%) in a Limited Liability Company (LLC). The equity method of accounting for investments in general partnerships is generally appropriate for accounting by limited partners for their investments in limited partnerships. The Company's interest is so minor as a limited partner that the Company has virtually no influence over the operating and financial policies of the LLC. As such, accounting for the investment using the cost method is appropriate. Under the cost method, income recognized by the investor is limited to distributions received, except that distributions that exceed the investor's share of earnings after the date of the investment are applied to reduce the carrying value of the investment. Adjustments are made for impairment annually based on an impairment analysis wherein the Company compares whether the fair value of the investment is less than its carrying amount which would result in impairment. The Company has recognized impairment as the LLC is dormant, currently having no commercial activity and no such activity is anticipated in the foreseeable future. As such, an adjustment for impairment was made during the six month period ended June 30, 2015 for the entire carrying value of $21,438. RESEARCH AND DEVELOPMENT: Research and development costs are expensed as incurred until technological feasibility can be determined. 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. 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. 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. During the six month periods ended June 30, 2015 and 2014, the Company recognized no revenue. PROPERTY 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 straight line 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 June 30, 2015, 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 | 6 Months Ended |
Jun. 30, 2015 | |
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 Office Patent or Appl. No. Status United States 8452544 Issued May 2013 China ZL 200880015288.2 Issued November 2012 Europe EP 08 75 4879.8 Under examination Mexico 325278 Issued April 2014 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. The value of the common stock issued in exchange for the equity was based on the most recent private sales of stock. 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 intellectual property assignments 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 Operations. 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 | 6 Months Ended |
Jun. 30, 2015 | |
Available-for-sale Securities [Abstract] | |
AVAILABLE FOR SALE SECURITIES | NOTE C - AVAILABLE FOR SALE SECURITIES Cost Gross Gain(Loss) Fair Value Equity Securities Available for Sale June 30, 2015 $ 25,000 $ (25,000 ) - Equity Securities Available for Sale December 31, 2014 $ 25,000 $ (25,000 ) - Approximate cost and fair value of available for sale securities (acquired January 10, 2011) as of June 30, 2015 and December 31, 2014 are as follows: |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | NOTE D - PROPERTY AND EQUIPMENT Property and equipment as of June 30, 2015 and December 31, 2014 are summarized as follows: June 30, 2015 December 31, 2014 Cost / Basis $ 128,815 $ 128,475 Accumulated depreciation (124,485 ) (123,745 ) Total property and equipment, net $ 4,330 $ 4,730 Depreciation expense during the six months ended June 30, 2015 and 2014 were $740 and $830, respectively. |
LINE OF CREDIT - SHAREHOLDER
LINE OF CREDIT - SHAREHOLDER | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
LINE OF CREDIT - SHAREHOLDER | Note E – LINE OF CREDIT - SHAREHOLDER 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. The line of credit is due on demand, unsecured, and bears interest at 2.5% per quarter. As of June 30, 2015, the remaining balance payable was $30,414 including accrued interest of $1,375. |
FACILITIES LEASE
FACILITIES LEASE | 6 Months Ended |
Jun. 30, 2015 | |
Leases [Abstract] | |
FACILITIES LEASE | NOTE F - FACILITIES LEASE The Company currently leases office space, from its president, on a month to month basis at a rate of $700 per month. Rental expense amounted to $4,200 for the six months ended June 30, 2015 and 2014. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
EQUITY | NOTE G – EQUITY During the six months ended June 30, 2015, the Company made the following Common Stock issuances: 1) 46,667 shares of common stock valued at $70,000 to consultants in exchange for services. 2) 10,000 shares of common stock valued at $15,000 to Officers and members of the Board of Directors in exchange for services. 3) 50,000 shares of common stock valued at $50,000 to partially repay line of credit-shareholder balance. |
SUMMARY OF SIGNIFICANT ACCOUN13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION: The accompanying unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles 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. Operating results for the three and six month periods ended June 30, 2015, are not necessarily indicative of the results that may be expected for the year ended December 31, 2015. The Company's 10-K for the year ended December 31, 2014 should be read in conjunction with this report. |
RECLASSIFICATIONS | RECLASSIFICATIONS: For comparability, certain prior period amounts have been reclassified, where appropriate, to conform to the financial statement presentation used in 2015. |
NATURE OF OPERATIONS AND ORGANIZATION | NATURE OF OPERATIONS AND ORGANIZATION: Signal Advance, Inc. (the Company) was 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 and closed-loop control 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 | 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. |
INTANGIBLE ASSETS OR LONG LIVED ASSETS | INTANGIBLE ASSETS OR LONG LIVED ASSETS: 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. |
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 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. Realized gains and losses are included in 'Other Income (Loss)' in the income statement. |
INVESTMENTS IN A LIMITED LIABILITY COMPANY | INVESTMENTS IN A LIMITED LIABILITY COMPANY: The Company held a minor investment (3%) in a Limited Liability Company (LLC). The equity method of accounting for investments in general partnerships is generally appropriate for accounting by limited partners for their investments in limited partnerships. The Company's interest is so minor as a limited partner that the Company has virtually no influence over the operating and financial policies of the LLC. As such, accounting for the investment using the cost method is appropriate. Under the cost method, income recognized by the investor is limited to distributions received, except that distributions that exceed the investor's share of earnings after the date of the investment are applied to reduce the carrying value of the investment. Adjustments are made for impairment annually based on an impairment analysis wherein the Company compares whether the fair value of the investment is less than its carrying amount which would result in impairment. The Company has recognized impairment as the LLC is dormant, currently having no commercial activity and no such activity is anticipated in the foreseeable future. As such, an adjustment for impairment was made during the six month period ended June 30, 2015 for the entire carrying value of $21,438. |
RESEARCH AND DEVELOPMENT | RESEARCH AND DEVELOPMENT: Research and development costs are expensed as incurred until technological feasibility can be determined. 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. 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. 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. During the six month periods ended June 30, 2015 and 2014, the Company recognized no revenue. |
PROPERTY AND EQUIPMENT | PROPERTY 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 straight line 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 June 30, 2015, 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) | 6 Months Ended |
Jun. 30, 2015 | |
Intellectual Property [Abstract] | |
Schedule of patent applications and issued patents | Patent Office Patent or Appl. No. Status United States 8452544 Issued May 2013 China ZL 200880015288.2 Issued November 2012 Europe EP 08 75 4879.8 Under examination Mexico 325278 Issued April 2014 India 3465/KOLNP/2009 Not yet examined |
AVAILABLE FOR SALE SECURITIES (
AVAILABLE FOR SALE SECURITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 June 30, 2015 $ 25,000 $ (25,000 ) - Equity Securities Available for Sale December 31, 2014 $ 25,000 $ (25,000 ) - |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | June 30, 2015 December 31, 2014 Cost / Basis $ 128,815 $ 128,475 Accumulated depreciation (124,485 ) (123,745 ) Total property and equipment, net $ 4,330 $ 4,730 |
SUMMARY OF SIGNIFICANT ACCOUN17
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - Jun. 30, 2015 - USD ($) | Total |
Accounting Policies [Abstract] | |
Percentage of minor investment in a Limited Liability Company (LLC) | 3.00% |
Adjustment for impairment | $ 21,438 |
Deferred tax assets | $ 0 |
INTELLECTUAL PROPERTY (Details)
INTELLECTUAL PROPERTY (Details) - Intellectual property (IP) | 6 Months Ended |
Jun. 30, 2015 | |
United States | |
Finite-Lived Intangible Assets [Line Items] | |
Patent or Appl. No. | 8,452,544 |
Status | Issued May 2013 |
China | |
Finite-Lived Intangible Assets [Line Items] | |
Patent or Appl. No. | ZL 200,880,015,288.2 |
Status | Issued November 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. | 325,278 |
Status | Issued April 2014 |
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) - 6 months ended Jun. 30, 2015 - shares | Total |
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) <$10M: 6%; b) $10-$25M: 8%, and c)>$25M: 10%. |
AVAILABLE FOR SALE SECURITIES20
AVAILABLE FOR SALE SECURITIES (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale Securities [Abstract] | ||
Equity Securities Available for Sale, Cost Gross | $ 25,000 | $ 25,000 |
Equity Securities Available for Sale, Gain (Loss) | $ (25,000) | $ (25,000) |
Equity Securities Available for Sale, Fair Value |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Property, Plant and Equipment [Abstract] | ||
Cost / Basis | $ 128,815 | $ 128,475 |
Accumulated depreciation | (124,485) | (123,745) |
Total property and equipment, net | $ 4,330 | $ 4,730 |
PROPERTY AND EQUIPMENT (Detail
PROPERTY AND EQUIPMENT (Detail Textuals) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 371 | $ 415 | $ 740 | $ 830 |
LINE OF CREDIT - SHAREHOLDER (D
LINE OF CREDIT - SHAREHOLDER (Detail Textuals) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Debt Disclosure [Abstract] | ||
Interest rate on line of credit, per quarter | 2.50% | |
Remaining balance payable | $ 30,414 | $ 10,769 |
Accrued interest | $ 1,375 |
FACILITIES LEASE (Detail Textua
FACILITIES LEASE (Detail Textuals) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Leases [Abstract] | ||
Operating leases, monthly rental payment | $ 700 | |
Rental expense | $ 4,200 | $ 4,200 |
EQUITY (Detail Textuals)
EQUITY (Detail Textuals) - 6 months ended Jun. 30, 2015 - USD ($) | Total |
Stockholders' Equity Note [Line Items] | |
Common stock issued to partially repay line of credit-shareholder balance (in shares) | 50,000 |
Value of common stock issued to partially repay line of credit-shareholder balance | $ 50,000 |
Consultant | |
Stockholders' Equity Note [Line Items] | |
Common stock issued for services (in shares) | 46,667 |
Value of common stock issued for services | $ 70,000 |
Officers and members of Board of Directors | |
Stockholders' Equity Note [Line Items] | |
Common stock issued for services (in shares) | 10,000 |
Value of common stock issued for services | $ 15,000 |