Notis Global (NGBL) 10-Q15 May 152015 Q1 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
Document and Entity Information	Mar. 31, 2015	13-May-15
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Trading Symbol	MDBX
Entity Registrant Name	Medbox, Inc.
Entity Central Index Key	1547996
Current Fiscal Year End Date	-19
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		35,543,259

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$92,490	$101,182
Marketable securities	37,340	94,776
Accounts receivable		8,774
Inventory	975,773	961,236
Deposits in escrow	320,400	400,476
Prepaid expenses and other current assets	56,909	66,220
Total current assets	1,482,912	1,632,664
Property and equipment, net of accumulated depreciation of $57,812 and $50,192, respectively	150,698	158,318
Assets held for resale	399,594	399,594
Intangible assets, net of accumulated amortization of $96,542 and $83,500 respectively	696,111	709,153
Goodwill	1,260,037	1,260,037
Deposits and other assets	74,727	104,726
Total assets	4,064,079	4,264,492
Current liabilities
Accounts payables	2,599,219	1,713,627
Accrued interest payable	171,716	372,937
Accrued expenses	175,081	610,497
Deferred revenue, current	201,303	204,091
Notes payable	254,011	261,434
Related party notes payable	633,877	678,877
Convertible notes payable, net of discount of $183,478 and $1,225,573, respectively	2,966,522	2,524,427
Convertible notes payable, related parties	150,000
Derivative liability	1,609,338	3,691,853
Customer deposits	1,518,808	1,525,808
Total current liabilities	10,279,875	11,583,551
Deferred revenue, less current portion	520,931	568,515
Deferred tax liability	160,000	160,000
Total liabilities	10,960,806	12,312,066
Stockholders' Deficit
Preferred stock, $0.001 par value: 10,000,000 authorized; 3,000,000 and 3,000,000 issued and outstanding as of March 31, 2015 and December 31, 2014, respectively	3,000	3,000
Common stock, $0.001 par value: 100,000,000 authorized, 32,668,421 and 30,496,909 issued and outstanding as of March 31, 2015 and December 31, 2014, respectively	32,668	30,497
Additional paid-in capital	20,954,900	15,315,110
Treasury stock	-1,209,600	-1,209,600
Accumulated deficit	-26,511,871	-22,078,193
Accumulated other comprehensive loss	-165,824	-108,388
Total stockholders' deficit	-6,896,727	-8,047,574
Total liabilities and stockholders' deficit	$4,064,079	$4,264,492

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Property and equipment, accumulated depreciation (in Dollars)	$57,812	$50,192
Intangible assets, accumulated amortization (in Dollars)	96,542	83,500
Convertible notes payable, discount	$183,478	$1,225,573
Preferred stock, par value (in Dollars per share)	$0.00	$0.00
Preferred stock, authorized	10,000,000	10,000,000
Preferred stock, issued	3,000,000	3,000,000
Preferred stock, outstanding	3,000,000	3,000,000
Common stock, par value (in Dollars per share)	$0.00	$0.00
Common stock, authorized	100,000,000	100,000,000
Common stock, issued	32,668,421	30,496,909
Common stock, outstanding	32,668,421	30,496,909

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Income Statement [Abstract]
Revenue	$41,747	$51,011
Revenue, related party	24,644
Less: allowances and refunds		-60,000
Net revenue	66,391	-8,989
Cost of revenues	329,296	949,874
Gross loss	-262,905	-958,863
Operating expenses
Selling and marketing	179,341	141,554
Research and development		8,000
General and administrative	3,870,602	563,370
Total operating expenses	4,049,943	712,924
Loss from operations	-4,312,848	-1,671,787
Other income (expense)
Interest income (expense), net	-5,802	13,652
Financing Costs	-524,882
Change in fair value of derivative liabilities	2,238,858
Amortization of debt discount	-1,819,662
Other income (expense)	-9,342
Total other income (expense)	-120,830	13,652
Loss before provision for income taxes	-4,433,678	-1,658,135
Provision for income taxes	0	0
Net loss	-4,433,678	-1,658,135
Loss per share attributable to common stockholders
Basic (in Dollars per share)	($0.14)	($0.05)
Diluted (in Dollars per share)	($0.14)	($0.05)
Weighted average shares outstanding
Basic (in Shares)	30,741,939	30,516,271
Diluted (in Shares)	30,741,939	30,516,271
Other Comprehensive loss
Net loss	-4,433,678	-1,658,135
Unrealized loss from marketable securities	-57,436
Comprehensive loss	($4,491,114)	($1,658,135)

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIT (Unaudited) (USD $)	Total	Preferred Stock [Member]	Common Stock [Member]	Treasury Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss [Member]
Balances at Dec. 31, 2014	($8,047,574)	$3,000	$30,497	($1,209,600)	$15,315,110	($22,078,193)	($108,388)
Balances (in Shares) at Dec. 31, 2014		3,000,000	30,496,909	-60,000
Stock-based compensation	2,511,542				2,511,542
Exercise of warrants			206		-206
Exercise of warrants (in shares)			206,480
Issuance of shares and warrants to settle accounts payable	413,521		46		413,475
Issuance of shares and warrants to settle accounts payable (in shares)	45,747		45,747
Conversions of convertible notes payable	1,964,336		1,919		1,962,417
Conversions of convertible notes payable (in shares)			1,919,285
Issuance of warrants in connection with convertible notes payable	752,562				752,562
Unrealized loss from marketable securities	-57,436						-57,436
Net loss	-4,433,678					-4,433,678
Balances at Mar. 31, 2015	($6,896,727)	$3,000	$32,668	($1,209,600)	$20,954,900	($26,511,871)	($165,824)
Balances (in Shares) at Mar. 31, 2015		3,000,000	32,668,421	-60,000

CONDENSED_CONSOLIDATED_STATEME2

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities
Net loss	($4,433,678)	($1,658,135)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	20,662	18,705
Provisions and allowances		60,000
Change in fair value of derivative liability	-2,238,858
Amortization of debt discount	1,819,662
Financing costs	524,882
Stock based compensation	2,511,542
Changes in operating assets and liabilities
Accounts receivable	8,774	227,118
Inventories	-14,537	258,252
Deposits in escrow	80,076
Prepaid expenses and other assets	39,310	-172,317
Accounts payables	1,299,113	-62,628
Accrued interest payable	-25,699
Accrued expenses	-440,145
Customer deposits	-7,000	334,021
Deferred revenue	-50,372	564,611
Net cash used in operating activities	-906,269	-430,373
Cash flows from investing activities
Issuance of note receivable		-15,000
Purchase of property and equipment, net		-64,954
Purchase of intangible assets, net		-74,794
Net cash used in investing activities		-154,748
Cash flows from financing activities
Payments on notes payable	-7,423	-75,000
Payments on related party notes payable	-45,000	-95,120
Proceeds from issuance of notes payable		122,135
Proceeds from issuance of common stock, net		2,442,859
Proceeds from issuance of convertible notes payable	800,000
Proceeds from issuance of convertible notes payable from related parties	150,000
Net cash provided by financing activities	897,577	2,394,874
Net increase/(decrease) in cash	-8,692	1,809,753
Cash, and cash equivalents, beginning of period	101,182	168,003
Cash, and cash equivalents, end of period	92,490	1,977,756
Supplemental disclosures of cash flow information:
Cash paid for interest	1,103	608
Cash paid for income tax	0	0
Non- cash investing and financing activities:
Marketable securities received for accounts receivable		258,104
Common stock issued upon debt conversion	1,964,336
Common stock issued for accounts payable	135,000
Stock Issued For Accounts Payable [Member]
Non- cash investing and financing activities:
Common stock issued for accounts payable	$413,521

BUSINESS_ORGANIZATION_NATURE_O

BUSINESS ORGANIZATION, NATURE OF OPERATIONS	3 Months Ended
BUSINESS ORGANIZATION, NATURE OF OPERATIONS	Mar. 31, 2015
Accounting Policies [Abstract]
BUSINESS ORGANIZATION, NATURE OF OPERATIONS	NOTE 1 – BUSINESS ORGANIZATION, NATURE OF OPERATIONS
BUSINESS ORGANIZATION, NATURE OF OPERATIONS	Medbox, Inc, which is incorporated in the state of Nevada (the “Company”), provides specialized consulting services to the marijuana industry and sells associated patented products, including its Medbox medical dispensing system and medical vaporization devices. The Company works with clients who seek to enter the medical and cultivation marijuana markets in those states where approved. Medbox offers turnkey solutions that assist with licensing and compliance, site selection, design and permitting, safety and security, along with full build-out and operational oversight. The Company’s consulting solutions and technology create structure and process for clients and their respective businesses in this rapidly emerging sector. In addition, through its wholly owned subsidiary, Vaporfection International, Inc. (“VII”), the Company sells a line of vaporizer and accessory products online and through distribution partners. The Company is headquartered in Los Angeles, California.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements include the accounts of Medbox, Inc. and its wholly owned subsidiaries:

•

Prescription Vending Machines, Inc., a California corporation, d/b/a Medicine Dispensing Systems in the State of California (“MDS”), which distributes our Medbox™ product and provides related consulting services described further below.

•

Vaporfection International, Inc., a Florida corporation through which we distribute our medical vaporizing products and accessories.

•

Medbox Property Investments, Inc., a California corporation specializing in real property acquisitions and leases for dispensaries and cultivation centers.

•

MJ Property Investments, Inc., a Washington corporation specializing in real property acquisitions and leases for dispensaries and cultivation centers in the state of Washington.

•

Medbox Management Services, Inc., a California corporation specializing in providing management oversight and compliance services to state-licensed dispensaries for cultivation, dispensing, and marijuana infused products (MIPS).

•

Medicine Dispensing Systems, Inc., an Arizona corporation, which distributes our Medbox dispensing system and provides related consulting services in the State of Arizona.

All intercompany transactions, amounts and balances have been eliminated.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent liabilities at the date of the condensed consolidated financial statements as well as the reported expenses during the reporting periods. The Company’s significant estimates and assumptions include the valuation of the Company’s common stock used in the valuation of goodwill, accounts receivable and note receivable collectability, inventory, advances on investments, the valuation of restricted stock and warrants received from customers, the amortization and recoverability of capitalized patent costs and useful lives of long-lived assets, the derivative liability, and income tax expense. Some of these judgments can be subjective and complex, and, consequently, actual results may differ from these estimates. Although the Company believes that its estimates and assumptions are reasonable, they are based upon information available at the time the estimates and assumptions were made. Actual results could differ from these estimates.

Basis of Presentation

The accompanying unaudited interim financial statements and related notes have been prepared in accordance with U.S. GAAP for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission for Interim Reporting. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The unaudited interim financial statements furnished reflect all adjustments (consisting of normal recurring accruals) which are, in the opinion of management, considered necessary for a fair presentation of the results for the interim periods presented. The results for the three months ended March 31, 2015 are not necessarily indicative of results to be expected for a full year, any other interim periods or any future year or period.

The accompanying unaudited interim financial statements and the information included under the heading “Management’s Discussion and Analysis or Plan of Operation” should be read in conjunction with our company’s audited financial statements and related notes included in our company’s Form 10-K for the fiscal year ended December 31, 2014, filed with the SEC on March 26, 2015.

The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited consolidated financial statements.

The Company has performed a review of all subsequent events through the date the unaudited interim financial statements were issued, and has determined that no additional disclosures are necessary.

Concentrations of Credit Risk

The Company maintains cash balances at several financial institutions in the Portland, Oregon, Los Angeles, California area and Florida. Accounts at each institution are insured by the Federal Deposit Insurance Corporation up to $250,000. At March 31, 2015 and December 31, 2014, the Company’s uninsured balances totaled $0 and $0, respectively. The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial institutions and has determined the credit exposure to be negligible.

Advertising and Marketing Costs

Advertising and marketing costs are expensed as incurred. The Company incurred advertising and marketing costs of $0 and $141,554 for the three months ended March 31, 2015 and 2014, respectively.

Fair Value of Financial Instruments

Pursuant to ASC No. 825, Financial Instruments, the Company is required to estimate the fair value of all financial instruments included on its balance sheets. The carrying value of cash, accounts receivable, other receivables, inventory, accounts payable and accrued expenses and notes payable, related party notes payable, customer deposits, provision for customer refunds and short term loans payable approximate their fair value due to the short period to maturity of these instruments. The Company’s marketable securities and related customer deposits require fair value measurement on a recurring basis as the Company has received advance payment of restricted stock in a publicly traded company for contracted services and received warrants for service provided to unrelated third party. The Company has no exposure to gain or loss on the increase or decrease in the value of the marketable securities received as a payment from customer as any shortfall in the ultimate liquidated value of the securities will be supplemented by additional restricted stock from the customer and any liquidation in excess above the Company’s billings will be returned to the customer. The securities received as a payment for services provided will be exposed to gains or losses following their initial evaluation as of the date the revenue was earned.

Warrants and other financial assets received as a payment for the services provided are recorded as “Marketable securities” under the current assets if they are expected to be realized within 12 months. The Company uses the Black-Scholes model to measure the value of the warrants. At each reporting date the Company will reevaluate the value of marketable securities and record any changes in value to other comprehensive income (loss) under “Unrealized gain or losses from marketable securities”.

Embedded derivative - The Company’s convertible notes payable include embedded features that require bifurcation and are accounted for as a separate embedded derivative (see Note 5). The Company has estimated the fair market value of the embedded derivative of the Notes based on a weighted probability model. The key valuation assumptions used consist of the price of the Company’s stock, a risk free interest rate based on the average yield of a one year Treasury note and expected volatility of the Company’s common stock all as of the measurement dates, and various estimated reset exercise prices allocated by probability. The Company considers these inputs Level 3 assumptions.

A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows:

Level 1

Quoted prices in active markets for identical assets or liabilities.

Level 2

Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable, either directly or indirectly.

Level 3

Significant unobservable inputs that cannot be corroborated by market data.

The assets or liability’s fair value measurement within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. The following table provides a summary of the liabilities that are measured at fair value on a recurring basis.

Total

Quoted Prices

Significant

in Active

for Similar

Unobservable

Markets for

Assets or

Inputs

Identical

Liabilities in

(Level 3)

Assets or

Active

Liabilities

Markets

(Level 1)

(Level 2)

31-Mar-15

Marketable securities

37,340

12,665

—

24,675

Derivative liability

1,609,338

—

1,609,338

Total

1,646,678

12,665

—

1,634,013

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis:

For the three months

ended

March 31, 2015

Total

Balance at January 1, 2015

3,691,853

Additions

695,157

Reclassified to equity upon conversion

(538,814

)

Change in fair value of conversion feature

(2,238,858

)

Ending balance

1,609,338

Revenue Recognition

Our current revenue model consists of the following income streams:

Consulting fee revenues. This revenue stream is a consistent component of our current and anticipated future revenues and is negotiated at the time we enter into a contract. In jurisdictions where there is intense competition for a limited number of dispensing or cultivating licenses, we believe the Medbox model, with its incorporated security measures, promotes a distinct advantage in the application selection process for such licenses, especially in the states where an applicant is graded on the ability to demonstrate compliance with applicable law.

Consulting fee revenue is only recognized when the following four criteria are met: 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or services have been rendered, 3) sales price is fixed and determinable and 4) collectability is reasonably assured. For multi-year contracts with upfront payments made by customers, the upfront payments are recognized over the longer of the contract period or the customer relationship. For contracts that include multiple deliverables such as the build out of customer facilities, the Company recognizes revenue when a milestone is reached in the contract such as securing the location, delivery of dispensing machines or completion of the facility.

Revenues on dispensary unit and vaporizer sales. Many consulting contracts bundle the sale of the dispensary units within the scope of deliverables to be provided that might also include location build out costs. Bundling through consulting packages is the most common way that we sell and distribute Medboxes. Medbox machines retail for approximately $50,000 for each machine set (including the POS system). Gross margins on our tabletop vaporizer sales and accessories are expected to initially average out to a net loss position due to initial higher manufacturing costs prior to implementation of the cost reduction process that we have undertaken. The introduction of our portable miVape product in the second quarter of 2015 is expected to provide a cost effective product with industry standard margins while providing significant value to the customer.

Revenue on dispensary unit sales is only recognized when the following four criteria are met: 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or services have been rendered, 3) sales price is fixed and determinable and 4) collectability is reasonable assured. For contracts that include multiple deliverables such as the build out of customer facilities, the Company recognizes revenue when a milestone is reached in the contract such as securing the location, delivery of dispensing machines or completion of the facility. The contract terms are broken down in specific milestones with specific attributable revenue to be earned upon successful completion of the milestone terms. (i.e. if a milestone is completing construction on a client dispensary, the condition for the revenue to be recorded is after issuance of a certificate of occupancy for the newly completed facility. The Company will record a specified amount of revenue attributable to this milestone based on the contract). Equipment sales not associated with a consulting contract are recognized as the product is shipped and title passes. Vaporizer sales are recognized as the product is shipped.

Other revenue includes sales of territory rights, sales/leases of management rights of newly awarded dispensary licenses, and sales/leases of management rights of newly acquired dispensary licenses and physical locations. We enter into transactions with clients who are interested in being granted the right to have us engage exclusively with them in certain territories (which we describe as territory rights), operating existing dispensary locations and buying previously issued dispensary licenses. Terms for each deal are varied and the sales arrangements typically include the delivery of our dispensing technology and dispensary location build-out. We will also seek to enter into contracts to assign exclusive management rights we have been granted by licensees under management rights agreements for retail, dispensary, or cultivation centers for which we have facilitated the granting of licenses.

Other revenue is only recognized when the following four criteria are met: 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or services have been rendered, 3) sales price is fixed and determinable and 4) collectability is reasonable assured. For multi-year contracts with upfront payments made by customers, the upfront payments are recognized over the longer of the contract period or the customer relationship. For contracts that include multiple deliverables such as the build out of customer facilities, the Company recognizes revenue when a milestone is reached in the contract such as securing the location, delivery of dispensing machines or completion of the facility. The contract terms are broken down in specific milestones with specific attributable revenue to be earned upon successful completion of the milestone terms. (i.e. if a milestone is completing construction on a client dispensary, the condition for the revenue to be recorded is after issuance of a certificate of occupancy for the newly completed facility). The Company will record a specified amount of revenue attributable to this milestone based on the contract. Advance payments from clients in advance of work performed are recorded as customer deposits on the balance sheet.

Revenue from referral fees and revenue sharing from real estate transactions with partners. The Company expects to generate revenue from matching its clients with a real estate financing partner to facilitate property purchases and subsequent leasebacks to our clients at a premium to market rates due to the sensitive nature of the use of the financing (in particular, marijuana retail (sale for recreational purposes), dispensary (sale for medical purposes) and cultivation (marijuana growth and production of marijuana edibles)).

Referral fee and revenue sharing revenue is only recognized when the following four criteria are met: 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or services have been rendered, 3) sales price is fixed and determinable and 4) collectability is reasonable assured. For multi-year contracts with upfront payments made by customers, the upfront payments are recognized over the longer of the contract period or the customer relationship. If all required deliverables are complete, the referral fee will be recognized when the customer closes on the subject transaction.

Revenue from providing monthly compliance and accountability support to dispensary operators. The Company expects to generate revenue from providing monthly compliance and accountability support to dispensary operators. Such services will entail bi-weekly onsite reviews of client dispensaries to ensure regulatory compliance, transaction and taxation reporting transparency, and adherence to state licensing guidelines for licensing renewal purposes. Fees will vary in each market area. The Company expects to provide such services based upon internal standards we have established which we believe, if properly followed, will greatly aid the location licensee in its compliance with state and local laws concerning operations of the location.

Monthly compliance and accountability support revenue is only recognized when the following four criteria are met: 1) persuasive evidence of an arrangement exists, 2) delivery has occurred or services have been rendered, 3) sales price is fixed and determinable and 4) collectability is reasonable assured. Revenue is recognized monthly as the services are delivered to clients.

Cost of Revenue

Cost of revenue consists primarily of expenses associated with the delivery and distribution of our products and services. These include expenses related to the manufacture of our dispensary units, construction expense related to the customer dispensary, site selection and establishment of licensing requirements, and consulting expense for the continued management of the dispensary unit build out, server and security equipment, rent expense, energy and bandwidth costs, and support and maintenance costs prior to when the client moves in. We only begin capitalizing costs when we have obtained a license and a site for operation of a customer dispensary or cultivation center. The previously capitalized costs are charged to cost of revenue in the same period that the associated revenue is earned. In the case where it is determined that previously inventoried costs are in excess of the projected net realizable value of the sale of the licenses then the excess cost above net realizable value is written off to cost of revenues. In addition, cost of revenue related to our vaporizer line of products consists of direct procurement cost of the products along with costs associated with order fulfilment, shipping, inventory storage and inventory management costs.

Inventory

Inventory is stated at the lower of cost or market value. Cost is determined on a cost basis that approximates the first-in, first-out (FIFO) method.

Work in process and related capitalized costs includes costs to build out a dispensary in Portland Oregon that opened in the second quarter of 2015. Costs include tenant improvements to the facility, furniture, fixtures and Medbox dispensary units to be used by the licensed operator.

Basic and Fully Diluted Net Income/Loss Per Share

Basic net income/loss per share is computed by dividing net loss available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per share include the effects of any outstanding options, warrants and other potentially dilutive securities. The Company did not consider any potential common shares in the computation of diluted loss per share for the three months ending March 31, 2015 and 2014, due to the net loss, as they would have an anti-dilutive effect on EPS.

As of March 31, 2015 and 2014, the Company has 3,000,000 shares of Series A preferred stock outstanding with par value of $0.001 that could be converted into 15,000,000 shares of the Company’s common stock. Additionally the Company has 337,946 warrants to purchase common stock outstanding as of March 31, 2015. The Company also has $3,300,000 in convertible debentures outstanding at March 31, 2015, whose underlying shares were not included as they are convertible at the holders’ option at a conversion price of the lower of $1.88 or 51% of the VWAP over the last 40 days prior to conversion (subject to reset upon a future dilutive financing; see Footnote 10 for a reset subsequent to the date of these condensed consolidated financial statements).

Income Taxes

The Company accounts for income taxes under the asset and liability method in accordance with ASC No. 740. The Company recognizes deferred tax liabilities and assets for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax liabilities and assets are determined based on the difference between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The components of the deferred tax assets and liabilities are classified as current and non-current based on their characteristics. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.

In addition, the Company’s management performs an evaluation of all uncertain income tax positions taken or expected to be taken in the course of preparing the Company’s income tax returns to determine whether the income tax positions meet a “more likely than not” standard of being sustained under examination by the applicable taxing authorizes. This evaluation is required to be performed for all open tax years, as defined by the various statutes of limitations, for federal and state purposes. An IRS audit is still open on the year ended December 31 2011, in which the Company received a notice of deficiency for the amount of approximately $60,000. The Company does not concur with the IRS findings and is in the process of challenging the determination

Commitments and Contingencies

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company’s management and its legal counsel assess such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company’s legal counsel evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, would be disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

Going Concern

The accompanying unaudited interim financial statements have been prepared in conformity with generally accepted accounting principles, which contemplate continuation of the Company as a going concern. The Company has an accumulated deficit of approximately $26,512,000 as of March 31, 2015. During the three months ended March 31, 2015, the Company had a net loss of approximately $4,434,000, negative cash flow from operations of approximately $906,000 and negative working capital of approximately $8,797,000. The Company will need to raise capital in order to fund its operations

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement a business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

As disclosed in our Form 8-K dated January 28, 2015, our lenders have committed to an additional $3.3 million when our Form S-1, which was filed with the SEC on April 9, 2015, is declared effective by the SEC. Due diligence is in process between an investor and our majority shareholder to sell his majority position which would also yield $5 million in new equity capital for the Company over the next 18 months (see Note 10). Management is committed to conducting a road show after the Form S-1 is declared effective to raise additional equity capital in 2015. The Company expects that these plans will provide it the necessary liquidity to continue operations for the next 12 months.

To address its financing requirements, the Company will seek financing through debt and equity financings. It is uncertain the Company can obtain financing to fund operating deficits until profitability is achieved. This need may be adversely impacted by: uncertain market conditions, approval of sites and licenses by regulatory bodies and adverse operating results. The outcome of these matters cannot be predicted at this time.

Recent Accounting Pronouncements

In August 2014, the FASB issued Accounting Standards Update No. 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entities Ability to Continue as a Going Concern (ASU 2014-15). The guidance in ASU 2014-15 sets forth management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing financial statements for interim and annual financial statements, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern for one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, as well as whether it is probable that management’s plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early application is permitted. The Company has elected to early adopt this guidance in the current interim period.

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, however, the FASB has proposed a one-year deferral, with early application not permitted. The new standard permits the use of either the retrospective or cumulative effect transition method. We are currently evaluating the effect that ASU 2014-09 will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

INVENTORIES

INVENTORIES	3 Months Ended
INVENTORIES	Mar. 31, 2015
Inventory Disclosure [Abstract]
INVENTORIES	NOTE 3 – INVENTORIES
	Inventories are stated at the lower of cost or market value. Cost is determined on a standard cost basis that approximates the first-in, first-out (FIFO) method.
	The consolidated inventories at March 31, 2015 and December 31, 2014 consist of the following:


		March 31, 2015		December 31, 2014
	Work in process and related capitalized costs	$	299,791	$	308,867
	Deposits on dispensing machines		325,973		325,973
	Vaporizers and accessories		178,543		154,930
	Dispensing machines		171,466		171,466

	Total inventory, net	$	975,773	$	961,236

	Work in process and related capitalized costs includes costs to build out a dispensary in Portland, Oregon that opened in the second quarter of 2015. Costs include tenant improvements to the facility, furniture, fixtures and Medbox dispensary units to be used by the licensed operator.

MARKETABLE_SECURITIES

MARKETABLE SECURITIES	3 Months Ended
MARKETABLE SECURITIES	Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 4 – MARKETABLE SECURITIES
	On May 19, 2014 the Company entered into a six month agreement with a publicly traded company that provides real estate financing and related solutions to licensed marijuana operators, under which the other entity issued approximately 200,000 warrants to the Company as consideration for referral fees. The Company exercised 33,333 warrants into 10,825 shares of common stock of the other entity, through the cashless exercise option, leaving the Company with 166,665 warrants. The warrants fair value of $ $24,675 as of March 31, 2015 was determined using the Black Scholes Merton model with the following assumptions: estimated term of one year, annual risk-free rate of .26%, and annualized expected volatility of 120%.
	The fair value of the shares as of March 31, 2015 was $ 12,665. The Company uses the published closing price of the stock to value the stock held by the Company.

CONVERTIBLE_NOTES_PAYABLE_AND_

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY	3 Months Ended
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY	Mar. 31, 2015
Debt Disclosure [Abstract]
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY	NOTE 5 – CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY
	On July 21, 2014, as amended on September 19, 2014 and October 20, 2014, the Company entered into a Securities Purchase Agreement whereby the Company agreed to issue convertible debentures (“July 2014 Debentures”) in the aggregate principal amount of $3,500,000, in five tranches. The initial closing in the aggregate principal amount of $1,000,000 occurred on July 21, 2014. The second closing in the amount of $1,000,000 occurred on August 26, 2014; the third of $500,000 on September 26, 2014. The fourth and fifth, each in the amount of $500,000, were to occur within 2 and 5 business days, respectively, of the effective date of the registration statement filed by the Company for the resale of the shares of common stock issuable upon conversion of the July 2014 Debentures. The Registration statement was withdrawn in December 2014, and was later refiled on April 9, 2015. The July 2014 Debentures bear interest at the rate of 10% per year. The debt is due July 21, 2015, with the original agreement calling for amortization payments, including accrued principal and accrued interest, beginning on the eleventh day of the fourth month after issuance and will continue on the eleventh day of each following eight successive months thereafter.
	Also on September 19, 2014, as amended on October 20, 2014, the Company entered into a securities purchase agreement pursuant to which it agreed to issue convertible debentures (“September 2014 Debentures”) in the aggregate principal amount of $2,500,000, in two tranches. The initial closing in the principal amount of $1,000,000 occurred on September 19, 2014. The second closing, of $1,500,000, is to occur within 2 days of the effective date of the registration statement filed by the Company for the resale of the shares of common stock issuable upon conversion of the September 2014 Debentures. The September 2014 Debentures bear interest at the rate of 5% per year. The debt is due September 19, 2015, and the original agreement called for amortization payments, including accrued principal and accrued interest, due in nine monthly installments, commencing the fourth month after issuance.
	Both the original July 2014 Purchase Agreement Debentures and September 2014 Debentures prior to subsequent amendment, share the following significant terms:
	All amounts are convertible at any time, in whole or in part, at the option of the holders into shares of the Company’s common stock at a conversion price. The Notes were initially convertible into shares of the Company’s common stock at the initial Fixed Conversion Price of $11.75 per share. The Fixed Conversion Price is subject to adjustment for stock splits, combinations or similar events. If the Company makes any subsequent equity sales (subject to certain exceptions), under which an effective price per share is lower than the Fixed Conversion Price, then the conversion price will be reduced to equal such price.
	The Company may make the amortization payments on the debt in cash, prompting a 30% premium or, subject to certain conditions, in shares of common stock valued at 70% of the lowest volume weighted average price of the common stock for the 20 prior trading days.
	In connection with each of the purchase agreements, the Company entered into a registration rights agreement with the respective investors, pursuant to which the Company agreed to file a registration statement for the resale of the shares of common stock issuable upon conversion of, or payable as principal and interest on, the respective debentures, within 45 days of the initial closing date under each agreement, and to have such registration statements declared effective within 120 days of the initial closing dates of each purchase agreement. Through subsequent modifications of the July 2014 Debentures and September 2014 Debentures, the required date to file the registration statement and the effective date of the registration statement have been changed, and as of March 31, 2015 are April 15, 2015 and July 15, 2015, respectively. The registration statement was filed on April 9, 2015.
	The conversion feature of the July 2014 Debenture and the September 2014 debenture meets the definition of a derivative and due to the reset provision to occur upon subsequent sales of securities at a price lower than the fixed conversion price, requires bifurcation and is accounted for as a derivative liability. The derivative was initially recognized at its estimated fair value of approximately $1,885,000 and created a discount on the Notes that will be amortized over the life of the Notes using the effective interest rate method. The fair value of the embedded derivative is measured and recognized at fair value each subsequent reporting period and the changes in fair value are recognized in the Statement of Operations as Change in fair value of derivative liability. For the three months ended March 31, 2015 the Company recognized a loss on the change in fair value of derivative liabilities of approximately $2,340,000 (including the change in fair value related to the new convertible debentures issued in the first quarter of 2015 discussed below). See Note 2 Fair value measure for additional information on the fair value and gains or losses on the embedded derivative.
	On January 30, 2015, the Company and the Investors entered into an Amendment, Modification and Supplement to the Purchase Agreement (the “Purchase Agreement Amendment” or the “Modification”) pursuant to which the Investors agreed to purchase an additional $1,800,000 in seven Modified Closings: (1) $200,000 was funded at the Closing of the Purchase Agreement Amendment; (2) $100,000 to be funded within thirty (30) days of the Closing; (3) $100,000 to be funded within two days following the filing of a registration statement with the SEC to register the shares underlying the Debentures (the “Registration Statement”) and of the Company having filed with the SEC a restatement of the Company’s consolidated financial statements as described in the Company’s Current Report on Form 8-K filed with the SEC on December 22, 2014; (4) $100,000 to be funded within two days of receipt of the first comment letter from the SEC with regard to the Registration Statement; (5) $500,000 to be funded within two days of the date that the Registration Statement is declared effective by the SEC; (6) $500,000 to be funded within five days of the date that the Registration Statement is declared effective by the SEC; and (7) $100,000 to be funded within each of 90, 120, 150, and 180 days from the Closing of the Purchase Agreement Amendment. The Modification also eliminated the amortization payments discussed above, and provided for accrued and unpaid interest to be payable upon conversion or maturity rather than on specified payment dates. The Company is also required to open a new dispensary in Portland, Oregon during the first calendar quarter of 2015(which was later modified to April 30, 2015). The Company must also file the Registration Statement by March 8, 2015 (later amended), and it must be declared effective by June 15, 2015 in order to avoid default and acceleration under the Amended and Restated Debenture. As noted above the Registration Statement was filed on April 9.2015.
	On March 13, 2015 the Company and the Investors entered into a further amendment (“March 2015 Amendment”) to the July 21, 2014, 10% Convertible debentures, as amended January 30, 2015, whereby the reset of the fixed conversion rate to $1.83 caused by recent dilutive issuances was reiterated for all previously issued notes. In addition, the March 2015 Amendment modified the opening date of the Portland, Oregon dispensary to be April 30, 2015. Neither of these modified terms had an impact on the accounting treatment of the Debentures.
	The July 2014 financing was further modified on March 23, 2015. The closing dates of the financing were again modified, investments by two members of the Board of Director’s (“Board”) was required, and the deadline for filing of the registration statement was changed to no later than April 15, 2015, and its effective date to no later than July 15, 2015. Neither of these modified terms had an impact on the accounting treatment of the Debentures.
	On January 28, 2015, the Company and the Investors entered into an Amendment, Modification and Supplement to the September 2014 Debenture, pursuant to which the remaining $1,500,000 will be funded in four Modified Closings as set forth in the agreement, and contains other modifications with the same terms as was contained in the January 30, 2015 Modification.
	The Company considered if the above modifications should be accounted for as an extinguishment or modification of the existing debt. The Company first evaluated if the modification of terms could be considered a troubled debt restructuring, but the modification did not meet the criteria as the Investors did not grant a concession to the Company for economic or legal reasons related to any financial difficulties of the Company. The majority of the modifications related to deadlines being extended for certain required events. The only financial modification was to revise the payment schedule on the Debentures to eliminate the amortization payments and instead require all to be due at maturity. The Company concluded this is not regarded as a concession as it is not the forgiveness of any interest payments, nor reduction of principal, nor change to the maturity date. Therefore, the modification of the terms was evaluated to determine if the changes in the Debentures’ future cash flows were in excess of 10% and considered substantial, which would require the Debentures to be accounted for as extinguished and replaced with new debt. As the modification resulted in a less than 10% estimated change in future cash flows, the Company concluded that the modification of the terms of the July 2014 and September 2014 Debentures was to be accounted for as a modification of the existing Debentures.
	As part of the January 30, 2015 Modification, the Parties entered into a Modified Debenture Agreement for the $200,000 that was funded at the Closing and agreed to use the same form of Modified Debenture for each of the other foregoing Modified Closings (collectively, the “Modified Debentures”). The fixed conversion price of the Modified Debenture was the lower of $5.00 or 51% of the lowest volume weighted average price for the 20 consecutive trading days prior to the applicable conversion date. This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the older fixed conversion price. As a result of the reset to the conversion price, at January 30, 2015, the derivative liability was remeasured to a fair value of approximately $2,690,000, using a weighted probability model as estimated by management. A change in fair value of the derivative liability of approximately $1,070,000 was recognized as a gain on the Statement of Operations in the three months ended March 31, 2015.
	The additional Modified Debentures under the July 2014 Debentures closed on February 27, 2015 in the amount of $100,000, March 13, 2015 in the amount of $50,000, March 16, 2015 in the amount of $25,000, March 20, 2015 in the amount of $75,000 and on March 26, 2015 in the amount of $150,000. All these Modified Debentures have a fixed conversion price of the lower of $1.83 or 51% of the VWAP for the last 20 days prior to the conversion. This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the previous $5 fixed conversion price. This reset resulted in the derivative liability being revalued at February 27, 2015, using a weighted probability model for a fair value of $2,720,000, for a change in fair value of approximately $334,000, recognized as a gain on the Statement of Operations.

	The additional Modified Debentures under the September 2014 Debentures closed on January 29, 2015 in the amount of $100,000 and February 24, 2015 in the amount of $100,000. These Modified Debentures have a fixed conversion price of the lower of $5.00 or 51% of the VWAP for the last 20 days prior to the conversion. This new fixed conversion price was a dilutive issuance to the outstanding July 2014 and September 2014 Debentures, thereby triggering a reset of the previous $5 fixed conversion price. The resulting reset and remeasurement of the fair value of the derivative liability is included in the amounts of the change to fair value discussed above.
	The Directors convertible debentures required under the March 23, 2015 Modification, issued in the first quarter of 2015, total $150,000, and have a three year term and an interest rate of 8% per annum. They are convertible at a fixed conversion price of the lower of $1.83 or 51% of the VWAP for the last 20 days prior to conversion. As with the Modified Debentures, the debentures included a reset provision, which resulted in the conversion feature being bifurcated and accounted for as a derivative liability, with an initial fair value of $132,175.
	The Modified Debentures also included a warrant instrument granting the Investor the right to purchase shares of common stock of the Company equal to the principal amount of the applicable Modified Debenture divided by a price equal to 120% of the last reported closing price of the Common stock on the applicable closing date of the Modified Debenture, with a three year term.
	The warrants issued in the first quarter of 2015 in connection with all the Modified Debentures are summarized below:


	Date issued	Number of		Exercise		Fair Value
	Date issued	warrants		price		Fair Value
	July 2014 Modified Debentures
	January 30, 2015		40,552	$	4.93	$	159,601
	February 26, 2015		45,537		2.2		79,904
	March 13, 2015		21,151		2.36		39,965
	March 16, 2015		10,575		2.36		19,981
	March 20, 2015		41,946		1.79		59,942
	March 27, 2015		75,758		1.98		119,888

	September 2014 Modified Debentures
	January 28, 2015		18,038		5.54		80,156
	February 13, 2015		57,870		1.73		96,689

	Directors
	January 5, 2015		6,173		8.1		39,901
	January 30, 2015		10,142		4.93		39,916
	February 2, 2015		10,204		4.9		16,619

	Total		337,946			$	752,562

	During the three months ended March 31, 2015, $900,000 principal of the July 2014 Debentures and $500,000 principal and approximately $25,000 accrued interest of the September 2014 Debentures were converted into 1,919,285 of the Company’s common shares at an average price of $0.74, based on 51% of the calculated VWAP. As a result of the conversions approximately $90,000 of the related debt discount was immediately amortized as Amortization of debt discount on the Statement of Comprehensive Loss. Upon conversion, the derivative fair value for the amounts converted were remeasured through the date of conversion, with the resulting change of fair value of approximately $160,000 recognized on the Statement of Consolidated Comprehensive Loss. At the same time, the fair value of the conversion feature derivative liability related to the amount converted was reclassified to equity.

RESTRICTED_STOCK_AND_RESTRICTE

RESTRICTED STOCK AND RESTRICTED STOCK UNITS ("RSUs")	3 Months Ended
RESTRICTED STOCK AND RESTRICTED STOCK UNITS ("RSUs")	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
RESTRICTED STOCK AND RESTRICTED STOCK UNITS ("RSUs")	NOTE 6 – RESTRICTED STOCK AND RESTRICTED STOCK UNITS (“RSUs”)
	On July 23, 2014, in connection with the election of a new Chairman, President and CEO, the Company entered into a two year employment contract with the new CEO. Under the employment contract, the CEO received an award of RSU’s, to be issued within 90 days of the effective date of the Employment Agreement, under the Equity Incentive Plan adopted by the Company, in the amount of the greater (by value) of 50,000 shares of common stock or $500,000 of common stock based on the volume weighted average price for the 30 day period prior to the date of the grant. The Company also agreed to make an equal stock award to the CEO on each anniversary date of the employment agreement. The RSU’s vest immediately during each year of the employment contract. The fair value of the awards, as determined on grant date, was $711,500 which is being amortized over the CEO’s one year service period.
	On August 21, 2014, the Compensation Committee of the granted Restricted Stock and RSU’s to two Board members who were elected to the Board on April 9, 2014. Under the award, the Directors received 346,875 shares of restricted stock and 121,875 RSU’s under which the holders have the right to receive 121,875 shares of common stock. The grant date fair value of the restricted stock was $3,607,500 and the grant date fair value of the RSU’s was $1,267,500. The restricted Stock and RSU’s vest over the remaining first year of the new Board members’ term ending on March 31, 2015. The fair value of the grant is being amortized over the period from the date of grant, August 21, 2014 to the end of the first year of the Board members’ term, March 31, 2015. Under the Board members’ contracts, additional grants will be made for the second year of the contract.
	During October 2014, the Compensation Committee of the Board granted 19,452 RSU’s to a new Board member who was elected to the Board on October 22, 2014. The Board member’s contract calls for grants of 100,000 RSU’s for each succeeding year of service beginning on April 1, 2015, which vest quarterly.
	On February 10, 2015, the Compensation Committee of the Board granted 100,174 RSU’s to certain officers and employees of the Company as for retention and bonuses. The grant date fair value of the RSU’s was approximately $114,000. The RSU’s vest every six months through December 31, 2016. The fair value of the grant is being amortized over the period from the date of grant, February 10, 2015 through the vesting dates in six month increments.
	On January 15, 2015, the Board granted 75,000 RSU’s to a consultant, which vest in 25,000 installments quarterly through July 15, 2015, beginning with 25,000 which vested immediately on the grant date. The grant date fair value of the RSU’s was approximately $450,000.
	A summary of the activity related to restricted stock and RSUs for the three months ended March 31, 2015 is presented below:


	Restricted stock	Total shares			Grant date fair
	Restricted stock	Total shares			value
	Restricted stock non-vested at January 1, 2015		168,750		$	10.4
	Restricted stock granted		—			—
	Restricted stock vested		(168,750	)		10.4
	Restricted stock forfeited		—			—

	Restricted stock non-vested at March 31, 2015		—		$	—


	Restricted stock units (RSU’s)	Total shares			Grant date fair
	Restricted stock units (RSU’s)	Total shares			value
	Restricted stock non-vested at January 1, 2015		199,584		$	10.7
	Restricted stock granted		177,633		$	1.88 - $6.70
	Restricted stock vested		(135,135	)	$	1.88 - $6.70
	Restricted stock forfeited					—

	Restricted stock non-vested at March 31, 2015		242,082		$	1.88 - 11.00


	A summary of the expense related to restricted stock and RSUs for the three months ended March 31, 2015 is presented below:


	Summary of the expense related to Restricted Stock and RSUs	Three months
		ended
		March 31, 2015
	Restricted Stock	$	1,055,600
	RSU’s		1,455,942

	Total stock based compensation expense	$	2,511,542

	The Company has approximately $750,000 in unrecognized stock based compensation, with an average vesting period of 6 months.

RELATED_PARTY_TRANSACTIONS

RELATED PARTY TRANSACTIONS	3 Months Ended
RELATED PARTY TRANSACTIONS	Mar. 31, 2015
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	NOTE 7 – RELATED PARTY TRANSACTIONS
	The aggregate amount of outstanding payables to related parties as of March 31, 2015 and December 31, 2014 was $633,877 and $678,877, respectively.
	During the year ended December 31, 2014, the Company issued four notes payable to PVM International Inc. (“PVMI”), a related party which is 100% owned by a co-founder of the Company, in the amounts of $250,000, $100,000, $500,000, and $375,000. These notes were subsequently partially repaid leaving $338,477 outstanding as of March 31, 2014. On October 17, 2014 the Company entered into an assignment agreement with PVMI through which PVMI assigned all rights and titles for any opened escrow on real estate purchase agreements in San Diego in exchange for a related party notes payable from the Company. As of the signing date the agreement was valued at $190,400 which represented the value of escrow deposits paid by PVMI for eight different real estate agreements.
	On March 28, 2014, the Company entered into an agreement with a related party for territory rights in Colorado for $500,000. The agreement has a term of five years and in accordance with the Company’s revenue policy, the revenue will be recognized over the five year term. Approximately $400,000 remains in deferred revenue as of March 31, 2015.
	During the third quarter of 2014, the Company created the following affiliated entities in connection with license applications: A. Hanna Growers, Inc., Herbal Choice of Illinois, Inc., Nature’s Treatment of Illinois, Inc., Green Blossom of Illinois, Inc., Midwestern Compassionate Care of Illinois, Inc., Midwestern Wellness Group of Illinois, Inc., Green Blossom, Inc., Nature’s Treatment, Inc. and Herbal Choice, Inc.

STOCKHOLDERS_EQUITY

STOCKHOLDER'S EQUITY	3 Months Ended
STOCKHOLDER'S EQUITY	Mar. 31, 2015
Equity [Abstract]
STOCKHOLDER'S EQUITY	NOTE 8 – STOCKHOLDER’S EQUITY
	Common Stock
	For common shares which were issued upon conversion of the convertible debentures during the quarter ended March 31, 2015 see Note 5.
	During the first quarter of 2015 the Company issued 45,747 shares of its common stock, valued at approximately $135,000 as based on the market price of the common stock on the date of settlement, as a payment of certain accounts payables.
	In addition, the Company issued 206,489 of their common stock upon exercise of the warrants held by various previous owners of VII.

COMMITMENTS_AND_CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 9 – COMMITMENTS AND CONTINGENCIES

The Company leases property for its day to day operations and has recently begun leasing facilities for possible retail dispensary locations and cultivation locations as part of the process of applying for retail dispensary and cultivation licenses.

Office Leases

On August 1, 2011, the Company entered into a lease agreement for office space located in West Hollywood, California through June 30, 2017 at a monthly rate of $14,397. Starting July 1, 2014, the monthly rent increased by 3% to $14,828 per month. The Company moved to new offices in Los Angeles, CA in April 2015. The sublease on the new office has a term of 18 months and with monthly rent of $7,486. The Company plans to sublease the office in West Hollywood, CA.

Total rent expense under operating leases for the three months ended March 31, 2015 and 2014 was $44,891 and $51,473, respectively.

Retail/Cultivation facility leases

The Company’s business model of acquiring retail dispensary and cultivation licenses has made it important to acquire real estate either through lease arrangements or through purchase agreements in order to secure a possible license. On May 8, 2014, the Company entered into a lease agreement for the Portland dispensary for five years with a monthly payment of $7,400 in order to apply for a license and build-out of a location for a client. Also, on July 22, 2014 one of the Company’s subsidiaries Medbox Property Investments, Inc., entered into a new lease for a facility which will be used in the application process for both a dispensary and cultivation facility. The Company paid an initial security deposit of $30,000 and the lease is payable monthly at a rate of $20,000 per month. The lease has a five year term, but is contingent upon license approval which allows for early termination of the lease after January 1, 2015 if the license is not granted. Due to the fact that the Company was unsuccessful in obtaining the license related to the mentioned facility the lease agreement was terminated in November 2014 and the Company forfeited the security deposit.

The following table is a summary of our material contractual lease commitments as of March 31, 2015:

Year Ending

Office Rent

Retail/Cultivation

Facility Lease

2015

200,826

66,600

2016

245,310

88,800

2017

88,968

88,800

2018

—

88,800

2019

—

29,600

Total

535,104

362,600

Real Estate Commitments

As part of the changes in the Company’s business model, the Company entered into various real estate purchase agreements at various times in order to allow the filing of retail dispensary or cultivation facility licenses in certain states and localities. These purchase agreements generally provide for a period of due diligence and a termination clause in the event that the Company is unable to obtain a license for its client. The agreements generally also provide for some monthly payment from escrow in order to compensate the real estate owner for the passage of time until the sale transaction is complete. Most of these payment releases from escrow are nonrefundable but applicable towards the purchase price if the Company decides to proceed with the purchase. Subject to approval of the license for a dispensary or cultivation center, the Company intends to close on the real estate where purchase agreements have been signed, or to seek partners to replace the Company on each property purchased.

Through December 31, 2014 the Company paid $930,000 either by deposit into twelve escrow accounts or direct payments to sellers, to secure the purchase and/or extend the closing dates on real estate to be used for future retail/cultivation facilities with an aggregate purchase price of $26,830,000. The real estate purchase agreements have closing dates varying between December 1, 2014 and February 10, 2015. No additional deposits were made during the first quarter of 2015 and one additional escrow was closed.

During the year 2014, the Company allowed the escrows to expire on three agreements with an aggregate purchase price of $3,195,000 and forfeited $140,000 in earnest money due to unfavorable terms demanded by the sellers to extend the escrow and closing date.

The Company was not successful in obtaining licenses for another ten locations with an aggregated sales price of $21,515,000 and deposits in escrow totaling $685,000. As a result all escrow accounts were closed with $235,757 forfeited and $419,167 refunded to the Company in 2014, and $80,076 refunded during the first quarter of 2015.

During the second quarter of 2014 one of the Company’s subsidiaries entered into a real estate purchase agreement in Washington state. The purchase transaction was closed during the third quarter for a total purchase price of $399,594 partially financed by a promissory note for $249,000.

A summary of open real estate purchase transactions as of March 31, 2015 is represented in the table below:

Property

Purchase price

Closing

Net escrow

Date

Additional

date

balance

escrow

rents/fees incurred

opened

to extend closing

date

820,000

3/31/15

55,000

6/28/14

17,308

—

265,400

7/21/14

—

Total

820,000

320,400

17,308

Line 2 represents the advance on July 21, 2014 of $75,000 to PVMI, a related party, as a partial payment for advances made by PVMI for escrow deposits used to secure properties for possible license acquisition in the San Diego market area and $190,400 from the assignment agreement.

Litigation

On May 22, 2013, Medbox initiated litigation in the United States District Court in the District of Arizona against three shareholders of MedVend Holdings LLC (“Medvend”) in connection with a contemplated transaction that Medbox entered into for the purchase of an approximate 50% ownership stake in Medvend for $4.1 million. The lawsuit alleges fraud and related claims arising out of the contemplated transaction during the quarter ended March 31, 2013. The litigation is pending and Medbox has sought cancellation due to a fraudulent sale of the stock because the selling shareholders lacked the power or authority to sell their ownership stake in MedVend, and their actions were a breach of representations made by them in the agreement. On November 19, 2013 the litigation was transferred to United States District Court for the Eastern District of Michigan. MedVend recently joined the suit pursuant to a consolidation order executed by a new judge assigned to the matter. In the litigation, the selling shareholder defendants seek alternatively to have the transaction performed, or to have it unwound and be awarded damages and allege breach of the agreement by Medbox and that $600,000 was wrongfully retained by the Company. Medbox has denied liability with respect to any and all such counterclaims. A new litigation schedule was recently issued setting trial for September 2015. On June 5, 2014, the Company entered into a purchase and sale agreement (the “Medvend PSA”) with PVM International, Inc. (“PVMI”) concerning this matter. Pursuant to the Medvend PSA, the Company sold to PVMI the Company’s rights and claims attributable to or controlled by the Company against those three certain stockholders of Medvend, known as Kaplan, Tartaglia and Kovan (the “Medvend Rights and Claims”), in exchange for the return by PVMI to the Company of 30,000 shares of the Company’s common stock. PVMI is owned by Vincent Mehdizadeh, the Company’s largest stockholder. The Company will have the right, under the Medvend PSA, to purchase from PVMI, at any time, the Medvend Rights and Claims, for the consideration provided by PVMI, plus the sum of any of PVMI’s reasonable expenditures incurred in pursuit of the Medvend Rights and Claims. The court has not yet ruled on the substitution of PVMI as plaintiff in this matter. If necessary, the Company plans to vigorously defend against this matter. The case is in the discovery stage, and, at this time, the Company cannot determine whether the likelihood of an unfavorable outcome of the dispute is probable or remote, nor can they reasonably estimate a range of potential loss, should the outcome be unfavorable.

On February 20, 2015 Michael A. Glinter, derivatively and on behalf of nominal defendants Medbox, Inc. the Board and certain executive officers (Pejman Medizadeh, Matthew Feinstein, Bruce Bedrick, Thomas Iwanskai, Guy Marsala, J. Mitchell Lowe, Ned Siegel, Jennifer Love, and C. Douglas Mitchell) filed a suit in the Superior Court of the State of California for the County of Los Angeles. The Company has not yet been served with this complaint. The suit alleges breach of fiduciary duties and abuse of control by the defendants. Relief is sought awarding damages resulting from breach of fiduciary duty and to direct the Company and the defendants to take all necessary actions to reform and improve its corporate governance and internal procedures to comply with applicable law. The Company intends to vigorously defend against this suit. Due to the early stages of this suit the Company is unable to determine whether the likelihood of an unfavorable outcome of the dispute is probable or remote, nor can it reasonably estimate a range of potential loss, should the outcome be unfavorable.

On January 21, 2015 Josh Crystal on behalf of himself and of all others similarly situated filed a class action lawsuit in the U.S. District Court for Central District of California against Medbox, Inc., and certain past and present members of the Board (Pejman Medizadeh, Bruce Bedrick, Thomas Iwanskai, Guy Marsala, and Douglas Mitchell). The suit alleges that the Company issued materially false and misleading statements regarding its financial results for the fiscal year ended December 31, 2013 and each of the interim financial periods that year. The plaintiff seeks relief of compensatory damages and reasonable costs and expenses or all damages sustained as a result of the wrongdoing. On April 23, 2015, the Court issued an Order consolidating the three related cases in this matter: Crystal v. Medbox, Inc., Gutierrez v. Medbox, Inc., and Donnino v. Medbox, Inc., and appointing a lead plaintiff. On May 6, 2015, the Court issued an Order directing Plaintiffs to file aconsolidated class action complaint in the matter by no later than May 27, 2015. The Order also requires that the Company file a responsive pleading by no later than June 22, 2015. The Company intends to vigorously defend against these suits. Due to the early stages of the suits the Company is unable to determine whether the likelihood of an unfavorable outcome of the dispute is probable or remote, nor can it reasonably estimate a range of potential loss, should the outcome be unfavorable.

On January 18, 2015, Ervin Gutierrez filed a class action lawsuit in the U.S. District Court for the Central District of California. The Company has not yet been served with this complaint. The suit alleges violations of federal securities laws through public announcements and filings that were materially false and misleading when made because they misrepresented and failed to disclose that the Company was recognizing revenue in a manner that violated US GAAP. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses or all damages sustained as a result of the wrongdoing. On April 23, 2015, the Court issued an Order consolidating the three related cases in this matter: Crystal v. Medbox, Inc., Gutierrez v. Medbox, Inc., and Donnino v. Medbox, Inc., and appointing a lead plaintiff. On May 6, 2015, the Court issued an Order directing Plaintiffs to file a consolidated class action complaint in the matter by no later than May 27, 2015. The Order also requires that the Company file a responsive pleading by no later than June 22, 2015. The Company intends to vigorously defend against this suit. Due to the early stages of the suit the Company is unable to determine whether the likelihood of an unfavorable outcome of the dispute is probable orremote, nor can it reasonably estimate a range of potential loss, should the outcome be unfavorable.

On January 29, 2015, Matthew Donnino filed a class action lawsuit in the U.S. District Court for Central District of California. The Company has not yet been served with this complaint. The suit alleges that the Company issued materially false and misleading statements regarding its financial results for the fiscal year ended December 31, 2013 and each of the interim financial periods that year. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses or all damages sustained as a result of the wrongdoing. On April 23, 2015, the Court issued an Order consolidating the three related cases in this matter: Crystal v. Medbox, Inc., Gutierrez v. Medbox, Inc., and Donnino v. Medbox, Inc., and appointing a lead plaintiff. On May 6, 2015, the Court issued an Order directing Plaintiffs to file a consolidated class action complaint in the matter by no later than May 27, 2015. The Order also requires that the Company file a responsive pleading by no later than June 22, 2015. The Company intends to vigorously defend against this suit. Due to the early stages of the suit the Company is unable to determine whether the likelihood of an unfavorable outcome of the dispute is probable or remote, nor can it reasonably estimate a range of potential loss, should the outcome be unfavorable.On February 12, 2015, Jennifer Scheffer, derivatively on behalf of Medbox, Guy Marsala, Ned Siegel, Mitchell Lowe and Douglas Mitchell filed a lawsuit in the Eighth Judicial District Court of Nevada seeking damages for breaches of fiduciary duty regarding the issuance and dissemination of false and misleading statements and regarding allegedly improper and unfair related party transactions, unjust enrichment and waste of corporate assets. On April 17, 2015, Ned Siegel and Mitchell Lowe filed a Motion to Dismiss. On April 20, 2015, the Company filed a Joinder in the Motion to Dismiss.The Company intends to vigorously defend against this suit. Due to the early stages of the suit the Company is unable to determine whether the likelihood of an unfavorable outcome of the dispute is probable or remote, nor can it reasonably estimate a range of potential loss, should the outcome be unfavorable.

On March 10, 2015 Robert J. Calabrese, derivatively and on behalf of nominal defendant Medbox, Inc., filed a suit in the United States District Court for the District of Nevada against certain Company officers and/or directors (Ned L. Siegel, Guy Marsala, J. Mitchell Lowe, Pejman Vincent Mehdizadeh, Bruce Bedrick, and Jennifer S. Love). The suit alleges breach of fiduciary duties and gross mismanagement by issuing materially false and misleading statements regarding the Company’s financial results for the fiscal year ended December 31, 2013 and each of the interim financial periods. Specifically the suit alleges that defendants caused the Company to overstate the Company’s revenues by recognizing revenue on customer contracts before it had been earned. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses for all damages sustained as a result of the alleged wrongdoing. The Company intends to vigorously defend against this suit. Due to the early stages of the suit the Company is unable to determine whether the likelihood of an unfavorable outcome of the dispute is probable or remote, nor can it reasonably estimate a range of potential loss, should the outcome be unfavorable.

On March 27, 2015 Tyler Gray, derivatively and on behalf of nominal defendant Medbox, Inc., filed a suit in the United States District Court for the District of Nevada against the Company’s Board of Directors and certain executive officers (Pejman Vincent Mehdizadeh, Matthew Feinstein, Bruce Bedrick, Thomas Iwanski, Guy Marsala, J. Mitchell Lowe, Ned Siegel, Jennifer S. Love, and C. Douglas Mitchell). The suit alleges breach of fiduciary duties and abuse of control. The plaintiff seeks relief for compensatory damages and reasonable costs and expenses for all damages sustained as a result of the alleged wrongdoing. Additionally the plaintiff seeks declaratory judgments that plaintiff may maintain the action on behalf of the Company, that the plaintiff is an adequate representative of the Company, and that the defendants have breached and/or aided and abetted the breach of their fiduciary duties to the Company. Lastly the plaintiff seeks that the Company be directed to take all necessary actions to reform and improve its corporate governance and internal procedures to comply with applicable law. The Company intends to vigorously defend against this suit. Due to the early stages of this suit the Company is unable to determine whether the likelihood of an unfavorable outcome of the dispute is probable or remote, nor can it reasonably estimate a range of potential loss, should the outcome be unfavorable.

The Company has accrued an additional $500,000 in legal fees to represent amounts they are expecting to pay in excess of the defense costs paid by their insurance Company.

On December 26, 2014, Medicine Dispensing Systems, a wholly-owned subsidiary of Medbox, filed a suit against Kind Meds, Inc. to collect fees of approximately $550,000 arising under a contract to establish a dispensary. Kind Meds, Inc. filed a cross complaint against Medicine Dispensing Systems for breach of contract and breach of implied covenant of good faith and fair dealing, claiming damages of not less than $500,000. We believe that the cross complaint is without merit. We will continue to pursue this Kind Meds for the amounts owed under the contract and will vigorously defend ourselves against the cross complaint. At this time the Company in unable to determine whether the likelihood of an unfavorable outcome of the dispute is probable or remote, nor can it reasonably estimate a range of potential loss, should the outcome be unfavorable.

The Company commenced arbitration proceedings against a former employee on June 13, 2013 related to employment claims asserted by the employee. Thereafter, the employee filed a suit in Los Angeles County Superior Court. The suit was stayed pending the outcome of the arbitration and thereafter dismissed without prejudice. The Company obtained a favorable arbitration award. The Company then filed an Application to Confirm the Arbitration Award in Arizona Superior Court, Maricopa County. After being unable to serve the employee, the Company performed service by publication and filed proofs of publication for service on the employee on February 27, 2015 and March 2, 2015. If the arbitration award is not enforced, the employee’s claim can be re-filed in California.

In October 2014, the Board of Directors of the Company appointed a special board committee (the “Special Committee”) to investigate a federal grand jury subpoena pertaining to the Company’s financial reporting which was served upon the Company’s accountants as well as certain alleged wrongdoing raised by a former employee of the Company. The Company was subsequently served with two SEC subpoenas in early November 2014. The Company is fully cooperating with the grand jury and the SEC. In connection with its investigation of these matters, the Special Committee in conjunction with the Audit Committee initiated an internal review by management and by an outside professional advisor of certain prior period financial reporting of the Company. The outside professional advisor reviewed the Company’s revenue recognition methodology for certain contracts for the third and fourth quarters of 2013. As a result of certain errors discovered in connection with the review by management and its professional advisor, the Audit Committee, upon management’s recommendation, concluded on December 24, 2014 that the consolidated financial statements for the year ended December 31, 2013 and for the third and fourth quarters therein, as well as for the quarters ended March 31, 2014, June 30, 2014 and September 30, 2014, should no longer be relied upon and would be restated to correct the errors. On March 6, 2015 the audit committee determined that the consolidated financial statements for the year ended December 31, 2012, together with all three, six and nine month financial information contained therein, and the quarterly information for the first two quarters of the 2013 fiscal year should also be restated. On March 11, 2015, the Company filed its restated Form 10 Registration Statement with the SEC with restated financial information for the years ended December 31, 2012 and December 31, 2013, and on March 16, 2015, the Company filed amended and restated quarterly reports on Form 10-Q, with restated financial information for the periods ended March 31, June 30 and September 30, 2014, respectively.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
SUBSEQUENT EVENTS	Mar. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	NOTE 10 – SUBSEQUENT EVENTS
	Subsequent to March 31, 2015, the Company has received an additional $780,000 in closings under the July 2014 convertible debenture and an additional $550,000 under the September 2014 convertible debentures, with the same terms as in the Modified Debentures (See Note 5).
	In connection with the additional closings subsequent to March 31, 2015, the Company issued approximately 512,000 warrants having three year terms and exercise prices from $1.10 - $1.66.
	On April 9, 2015, the Company and their investors entered into a Amendment, Modification and Supplement to the July 2014 convertible debenture, which amends the closings as set forth in the March 23, 2015 Modification, to increase the amounts due in the third tranche, due two days after the filing of the Registration Statement, to $450,000.
	Subsequent to March 31, 2015, there were conversions on the original July 2014 convertible debentures of $825,000 of the principal balance, with 1,682,787 of the Company’s common shares issued upon conversion, with an average conversion rate of $0.49, based on 51% of the calculated VWAP. On April 15, 2015, $500,000 of the principal balance of the original September 2014 convertible debenture was converted into 879,356 of the Company’s common shares, with an average conversion rate of $0.57, based on 51% of the calculated VWAP.

	Share purchase and transfer
	On March 5, 2015 Mr. Mehdizadeh announced that an agreement has been executed with Lizada Capital LLC, an investor in the field of legal cannabis products, that would result in the transfer of the majority of Mr. Mehdizadeh’s shares of the Company to that firm. As of March 31, 2015, due diligence is in process. Under the agreement, Lizada would purchase 22,160,000 shares, representing 2,000,000 preferred shares and 12,160,000 common shares of Medbox for consideration of approximately $15 million. A total of $5 million of the funds have been designated for purchase of restricted shares of the Company’s common stock, directly from the Company, at $2 per share in the name of Mr. Mehdizadeh’s holding company, PVM International, Inc.
	The transaction is expected to have six separate closings over the course of 18 months, with each of the first five closings being in the amount of $2 million dollars to be paid to Mehdizadeh’s holding company and Medbox equally, or $1 million to each party, to satisfy the $5 million dollar direct investment component of the transaction. The sixth and final closing has a performance contingency and is in the amount of $5 million dollars paid directly to Mehdizadeh’s holding company.
	A representative of Lizada will join the Company’s Board after the first closing occurs.
	Chief Operating Officer
	On April 22, 2015, the Board of Company appointed Jeffrey Goh as Chief Operating Officer, effective immediately. In connection with his appointment as Chief Operating Officer, Mr. Goh and the Company have agreed that Mr. Goh’s annual base salary will be $300,000, subject to annual increases of between 5% and 7% based upon performance goals and the Company’s financial results. Mr. Goh will be eligible to receive a cash bonus of up to a maximum of $150,000 per year (“Cash Bonus”), plus a bonus grant of restricted stock units convertible into Company common stock up to a maximum of $150,000 per year (“Equity Bonus”). Each of the Cash Bonus and Equity Bonus shall be determined based upon the achievement of performance goals to be mutually agreed upon amongst Mr. Goh and the Board of Directors for the given year. Mr. Goh shall also be entitled to receive an award of 100,000 restricted stock units convertible into Company common stock on each anniversary of the original date of his employment with the Company. In the event that Mr. Goh terminates his employment with or without cause or the Company terminates Mr. Goh’s employment without cause, Mr. Goh shall be entitled to receive a severance payment equivalent to 6, 12, or 18 months of base salary, based upon whether the length of Mr. Goh’s employment with the Company at the time of termination is less than 12 months, greater than 12 months but less than 24 months, or greater than 24 months, respectively.
	New Lease
	The Company entered into a new lease for new offices in Los Angeles, CA on April 7, 2015, which terminates on September 29, 2016. The sublease on the new office has a term of 18 months and with monthly rent of approximately $7,500. The Company plans to sublease the office in West Hollywood, CA.
	Bankruptcy filing of manufacturing partner
	On May 4, 2015, AVT, Inc., the manufacturing partner of the Company announced that they had commenced a voluntary filing for restructuring and court protection under Chapter 11 of the United States Bankruptcy Code. AVT expects that the court will authorize them to conduct business as usual while developing a reorganization plan and believes that the company’s core vending and automated retailing business remains strong, and that the filing is related to past attempts at diversification into unrelated businesses. The Company has evaluated the bankruptcy filing and concluded it should not have any material impact on the Company’s operations.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2015

Accounting Policies [Abstract]

Principles of Consolidation

The consolidated financial statements include the accounts of Medbox, Inc. and its wholly owned subsidiaries:

•

Vaporfection International, Inc., a Florida corporation through which we distribute our medical vaporizing products and accessories.

•

Medbox Property Investments, Inc., a California corporation specializing in real property acquisitions and leases for dispensaries and cultivation centers.

•

MJ Property Investments, Inc., a Washington corporation specializing in real property acquisitions and leases for dispensaries and cultivation centers in the state of Washington.

•

Medicine Dispensing Systems, Inc., an Arizona corporation, which distributes our Medbox dispensing system and provides related consulting services in the State of Arizona.

All intercompany transactions, amounts and balances have been eliminated.

Use of Estimates

Basis of Presentation

The condensed consolidated balance sheet data as of December 31, 2014 was derived from audited consolidated financial statements.

The Company has performed a review of all subsequent events through the date the unaudited interim financial statements were issued, and has determined that no additional disclosures are necessary.

Concentrations of Credit Risk

Advertising and Marketing Costs

Advertising and marketing costs are expensed as incurred. The Company incurred advertising and marketing costs of $0 and $141,554 for the three months ended March 31, 2015 and 2014, respectively.

Fair Value of Financial Instruments

A three-tier fair value hierarchy is used to prioritize the inputs in measuring fair value as follows:

Level 1

Quoted prices in active markets for identical assets or liabilities.

Level 2

Level 3

Significant unobservable inputs that cannot be corroborated by market data.

Total

Quoted Prices

Significant

in Active

for Similar

Unobservable

Markets for

Assets or

Inputs

Identical

Liabilities in

(Level 3)

Assets or

Active

Liabilities

Markets

(Level 1)

(Level 2)

31-Mar-15

Marketable securities

37,340

12,665

—

24,675

Derivative liability

1,609,338

—

1,609,338

Total

1,646,678

12,665

—

1,634,013

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis:

For the three months

ended

March 31, 2015

Total

Balance at January 1, 2015

3,691,853

Additions

695,157

Reclassified to equity upon conversion

(538,814

)

Change in fair value of conversion feature

(2,238,858

)

Ending balance

1,609,338

Revenue Recognition

Our current revenue model consists of the following income streams:

Cost of Revenue

Inventory

Inventory is stated at the lower of cost or market value. Cost is determined on a cost basis that approximates the first-in, first-out (FIFO) method.

Basic and Fully Diluted Net Income/Loss Per Share

Income Taxes

Commitments and Contingencies

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the nature of the guarantee would be disclosed.

Going Concern

Recent Accounting Pronouncements

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	Mar. 31, 2015
Accounting Policies [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	The assets or liability’s fair value measurement within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. The following table provides a summary of the liabilities that are measured at fair value on a recurring basis.


		Total			Quoted Prices		Quoted Prices		Significant
					in Active		for Similar		Unobservable
					Markets for		Assets or		Inputs
					Identical		Liabilities in		(Level 3)
					Assets or		Active
					Liabilities		Markets
					(Level 1)		(Level 2)
	31-Mar-15
	Marketable securities	$	37,340		$	12,665	$	—	$	24,675
	Derivative liability		1,609,338			—		—		1,609,338

	Total	$	1,646,678		$	12,665	$	—	$	1,634,013

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis:


		For the three months
		ended
		March 31, 2015
		Total
	Balance at January 1, 2015	$	3,691,853
	Additions		695,157
	Reclassified to equity upon conversion		(538,814	)
	Change in fair value of conversion feature		(2,238,858	)

	Ending balance	$	1,609,338

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
INVENTORIES (Tables)	Mar. 31, 2015
Inventory Disclosure [Abstract]
Schedule of Inventory, Current	The consolidated inventories at March 31, 2015 and December 31, 2014 consist of the following:


		March 31, 2015		December 31, 2014
	Work in process and related capitalized costs	$	299,791	$	308,867
	Deposits on dispensing machines		325,973		325,973
	Vaporizers and accessories		178,543		154,930
	Dispensing machines		171,466		171,466

	Total inventory, net	$	975,773	$	961,236

CONVERTIBLE_NOTES_PAYABLE_AND_1

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Tables)	3 Months Ended
CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Tables)	Mar. 31, 2015
Debt Disclosure [Abstract]
Summary of Warrants Issued in Connection with Modified Debentures	The warrants issued in the first quarter of 2015 in connection with all the Modified Debentures are summarized below:


	Date issued	Number of		Exercise		Fair Value
	Date issued	warrants		price		Fair Value
	July 2014 Modified Debentures
	January 30, 2015		40,552	$	4.93	$	159,601
	February 26, 2015		45,537		2.2		79,904
	March 13, 2015		21,151		2.36		39,965
	March 16, 2015		10,575		2.36		19,981
	March 20, 2015		41,946		1.79		59,942
	March 27, 2015		75,758		1.98		119,888

	September 2014 Modified Debentures
	January 28, 2015		18,038		5.54		80,156
	February 13, 2015		57,870		1.73		96,689

	Directors
	January 5, 2015		6,173		8.1		39,901
	January 30, 2015		10,142		4.93		39,916
	February 2, 2015		10,204		4.9		16,619

	Total		337,946			$	752,562

RESTRICTED_STOCK_AND_RESTRICTE1

RESTRICTED STOCK AND RESTRICTED STOCK UNITS ("RSUs") (Tables)	3 Months Ended
	Mar. 31, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity	A summary of the activity related to restricted stock and RSUs for the three months ended March 31, 2015 is presented below:


	Restricted stock	Total shares			Grant date fair
	Restricted stock	Total shares			value
	Restricted stock non-vested at January 1, 2015		168,750		$	10.4
	Restricted stock granted		—			—
	Restricted stock vested		(168,750	)		10.4
	Restricted stock forfeited		—			—

	Restricted stock non-vested at March 31, 2015		—		$	—


	Restricted stock units (RSU’s)	Total shares			Grant date fair
	Restricted stock units (RSU’s)	Total shares			value
	Restricted stock non-vested at January 1, 2015		199,584		$	10.7
	Restricted stock granted		177,633		$	1.88 - $6.70
	Restricted stock vested		(135,135	)	$	1.88 - $6.70
	Restricted stock forfeited					—

	Restricted stock non-vested at March 31, 2015		242,082		$	1.88 - 11.00

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	A summary of the expense related to restricted stock and RSUs for the three months ended March 31, 2015 is presented below:


	Summary of the expense related to Restricted Stock and RSUs	Three months
		ended
		March 31, 2015
	Restricted Stock	$	1,055,600
	RSU’s		1,455,942

	Total stock based compensation expense	$	2,511,542

COMMITMENTS_AND_CONTINGENCIES_

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
COMMITMENTS AND CONTINGENCIES (Tables)	Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Summary of Material Contractual Lease Commitments	The following table is a summary of our material contractual lease commitments as of March 31, 2015:


	Year Ending	Office Rent		Retail/Cultivation
	Year Ending	Office Rent		Facility Lease
	2015	$	200,826	$	66,600
	2016		245,310		88,800
	2017		88,968		88,800
	2018		—		88,800
	2019		—		29,600

	Total	$	535,104	$	362,600

Summary of Open Real Estate Purchase Transactions	A summary of open real estate purchase transactions as of March 31, 2015 is represented in the table below:


	Property	Purchase price		Closing		Net escrow		Date		Additional
				date		balance		escrow		rents/fees incurred
								opened		to extend closing
										date
	1	$	820,000		3/31/15		55,000		6/28/14	$	17,308
	2		—				265,400		7/21/14		—

	Total	$	820,000			$	320,400			$	17,308

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2014	Jan. 30, 2015	Jan. 28, 2015	Dec. 31, 2014	Sep. 30, 2014	Mar. 13, 2015	Sep. 19, 2014	Jul. 21, 2014
	Mar. 31, 2015	D	Mar. 31, 2014	Jan. 30, 2015	Jan. 28, 2015	Dec. 31, 2014	Sep. 30, 2014	Mar. 13, 2015	Sep. 19, 2014	Jul. 21, 2014
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Cash, FDIC Insured Amount	$250,000	$250,000
Cash, Uninsured Amount	0	0				0
Cash, Uninsured Amount Description	The Company has not experienced any losses in such accounts and periodically evaluates the credit worthiness of the financial institutions and has determined the credit exposure to be negligible.
Advertising Expense		0	141,554
Revenues		41,747	51,011
Preferred Stock, Shares Outstanding (in Shares)	3,000,000	3,000,000				3,000,000
Warrants to purchase common stock outstanding	337,946	337,946
Debt Instrument, Convertible, Conversion Price	$1.88	$1.88					$11.75
Conversion, percentage of weighted average price	51.00%	51.00%
Period of volume weighted average price calculation		40
Accumulated deficit	-26,511,871	-26,511,871				-22,078,193
Net loss		-4,433,678	-1,658,135
Net cash used in operating activities		-906,269	-430,373
Working capital	-8,797,000	-8,797,000
Dispensing Machines [Member]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Revenues		50,000
Convertible Debt [Member]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Debt Instrument, Face Amount	3,300,000	3,300,000			1,500,000				2,500,000	3,500,000
Debt Instrument, Convertible, Conversion Price	$1.83	$1.83		$5				$1.83
Conversion, percentage of weighted average price		51.00%		51.00%
Convertible Debt [Member] \| Expected to be raised over the next 18 months [Member]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Expected amount of new equity capital to be raised					5,000,000
Convertible Debt [Member] \| Lenders committed additional funds when Form S-1 filed with the SEC [Member]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Debt Instrument, Face Amount					3,300,000
Internal Revenue Service (IRS) [Member]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Tax deficiency amount		$60,000
Open tax year		2011
Series A Preferred Stock [Member]
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items]
Preferred Stock, Shares Outstanding (in Shares)	3,000,000	3,000,000	3,000,000
Preferred Stock, No Par Value (in Dollars per share)	$0.00	$0.00	$0.00
Convertible Preferred Stock, Shares Issued upon Conversion (in Shares)	15,000,000	15,000,000	15,000,000

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$37,340	$94,776
Derivative liability	1,609,338	3,691,853
Total	1,646,678
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	12,665
Derivative liability	0
Total	12,665
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0
Derivative liability	0
Total	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	24,675
Derivative liability	1,609,338
Total	$1,634,013

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract]
Beginning balance	$3,691,853
Additions	695,157
Reclassified to equity upon conversion	-538,814
Change in fair value of conversion feature	-2,238,858
Ending balance	$1,609,338

INVENTORIES_Schedule_of_Invent

INVENTORIES - Schedule of Inventory, Current (Detail) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Inventory [Line Items]
Work in process and related capitalized costs	$299,791	$308,867
Inventory	975,773	961,236
Deposits on Dispensing Machines [Member]
Inventory [Line Items]
Inventory	325,973	325,973
Vaporizers and Accessories [Member]
Inventory [Line Items]
Inventory	178,543	154,930
Dispensing Machines [Member]
Inventory [Line Items]
Inventory	$171,466	$171,466

MARKETABLE_SECURITIES_Addition

MARKETABLE SECURITIES - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended
	19-May-14	Mar. 31, 2015	19-May-14
Schedule of Trading Securities and Other Trading Assets [Line Items]
Class of warrant or rights, outstanding		337,946
Fair value of warrants		$752,562
Other Entity [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Class of warrant or right, issued	200,000
Investment, Term of Investment	6 months
Class of warrant or right, exercised	33,333
Shares of common stock issued on exercise of warrants	10,825		10,825
Class of warrant or rights, outstanding	166,665		166,665
Fair value of warrants		24,675
Expected term		1 year
Annual risk-free rate		0.26%
Annualized expected volatility		120.00%
Class of Warrant or Rights, Fair Value Granted		$12,665

CONVERTIBLE_NOTES_PAYABLE_AND_2

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY - Additional Information (Detail) (USD $)

0 Months Ended

3 Months Ended

0 Months Ended

Mar. 31, 2015

Feb. 27, 2015

Mar. 31, 2015

Apr. 15, 2015

Jan. 30, 2015

Sep. 19, 2014

Jul. 21, 2014

Aug. 26, 2014

Sep. 26, 2014

Apr. 11, 2015

Apr. 14, 2015

Sep. 30, 2014

Mar. 26, 2015

Mar. 20, 2015

Mar. 16, 2015

Mar. 13, 2015

Feb. 24, 2015

Jan. 29, 2015

Apr. 09, 2015

Jan. 28, 2015

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Proceeds from convertible debt

$800,000

Debt Instrument, Convertible, Conversion Price

$1.88

$11.75

Debt instrument, convertible, terms of conversion feature

The Company may make the amortization payments on the debt in cash, prompting a 30% premium or, subject to certain conditions, in shares of common stock valued at 70% of the lowest volume weighted average price of the common stock for the 20 prior trading days.

Change in fair value of derivative liabilities

2,238,858

Minimum percentage of change in present value of future cash flows

10.00%

Maximum estimated percentage of resulted change in present value of future cash flows

10.00%

Conversion, percentage of weighted average price

51.00%

Consecutive trading days

20 days

Weighted probability model for the fair value

2,720,000

Derivative gain recognized

334,000

Debt converted to common shares

1,919,285

Amortization of debt discount

90,000

Common Stock [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Convertible, Conversion Price

$0.74

July 2014 Convertible Debentures [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

900,000

Debt Instrument, Convertible, Conversion Price

$0.49

Debt redemption amount

100,000

150,000

75,000

25,000

50,000

Debt converted to common shares

1,682,787

September 2014 Convertible Debentures [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

500,000

Debt Instrument, Convertible, Conversion Price

Debt instrument, convertible, terms of conversion feature

Modified Debentures have a fixed conversion price of the lower of $5.00 or 51% of the VWAP for the last 20 days prior to the conversion.

Conversion, percentage of weighted average price

51.00%

Consecutive trading days

20 days

Debt redemption amount

100,000

Accrued interest of debt

25,000

September 2014 Convertible Debentures [Member] | Subsequent Event [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

500,000

Debt Instrument, Convertible, Conversion Price

$0.57

Debt converted to common shares

879,356

Debt Instrument, Tranche Three [Member] | Subsequent Event [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

450,000

July 2014 and September 2014 Convertible Debentures [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Convertible, Conversion Price

Convertible Debt [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Maturity Date

19-Sep-15

21-Jul-15

Debt Instrument, Face Amount

3,300,000

2,500,000

3,500,000

1,500,000

Proceeds from convertible debt

150,000

1,000,000

Convertible notes, interest rate

5.00%

10.00%

Debt Instrument, Payment Terms

The original agreement called for amortization payments, including accrued principal and accrued interest, due in nine monthly installments, commencing the fourth month after issuance.

The original agreement calling for amortization payments, including accrued principal and accrued interest, beginning on the eleventh day of the fourth month after issuance and will continue on the eleventh day of each following eight successive months thereafter.

Debt Instrument, Description

In connection with each of the purchase agreements, the Company entered into a registration rights agreement with the respective investors, pursuant to which the Company agreed to file a registration statement for the resale of the shares of common stock issuable upon conversion of, or payable as principal and interest on, the respective debentures, within 45 days of the initial closing date under each agreement, and to have such registration statements declared effective within 120 days of the initial closing dates of each purchase agreement. Through subsequent modifications of the July 2014 Debentures and September 2014 Debentures, the required date to file the registration statement and the effective date of the registration statement have been changed, and as of March 31, 2015 are April 15, 2015 and July 15, 2015, respectively. The registration statement was filed on April 9, 2015.

The second closing, of $1,500,000, is to occur within 2 days of the effective date of the registration statement filed by the Company for the resale of the shares of common stock issuable upon conversion of the September 2014 Debentures.

Debt Instrument, Convertible, Conversion Price

$1.83

Debt instrument, convertible, terms of conversion feature

They are convertible at a fixed conversion price of the lower of $1.83 or 51% of the VWAP for the last 20 days prior to conversion.

Derivative liability

132,175

2,690,000

1,885,000

Change in fair value of derivative liabilities

1,070,000

Conversion, percentage of weighted average price

51.00%

Consecutive trading days

20 days

Convertible debt instrument term

3 years

Debt instrument effective percentage

8.00%

Warrant instrument grant agreement, description

The Modified Debentures also included a warrant instrument granting the Investor the right to purchase shares of common stock of the Company equal to the principal amount of the applicable Modified Debenture divided by a price equal to 120% of the last reported closing price of the Common stock on the applicable closing date of the Modified Debenture, with a three year term.

Convertible Debt [Member] | Agreed Funding at the Closing of the Purchase Agreement Amendment [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

1,800,000

Convertible Debt [Member] | Funded at the Closing of the Purchase Agreement Amendment [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

200,000

Convertible Debt [Member] | Funded within thirty (30) days of the closing [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

100,000

Convertible Debt [Member] | Funded within two days following the filing of a registration statement with the SEC to register the shares underlying the debentures [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

100,000

Convertible Debt [Member] | Funded within two days of receipt of the first comment letter from the SEC with regard to the Registration Statement [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

100,000

Convertible Debt [Member] | Funded within two days of the date that the Registration Statement is declared effective by the SEC [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

500,000

Convertible Debt [Member] | Funded within five days of the date that the Registration Statement is declared effective by the SEC [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

500,000

Convertible Debt [Member] | Funded within each of 90, 120, 150, and 180 days from the Closing of the Purchase Agreement Amendment Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Debt Instrument, Face Amount

100,000

Convertible Debt [Member] | Debt Instrument, Tranche One [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Proceeds from convertible debt

1,000,000

Convertible Debt [Member] | Debt Instrument, Tranche Two [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Proceeds from convertible debt

1,000,000

Convertible Debt [Member] | Debt Instrument, Tranche Three [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Proceeds from convertible debt

500,000

Convertible Debt [Member] | Debt Instrument, Tranche Four [Member] | Subsequent Event [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Proceeds from convertible debt

500,000

Convertible Debt [Member] | Debt Instrument Tranche Five [Member] | Subsequent Event [Member]

NOTE 5 - CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Details) [Line Items]

Proceeds from convertible debt

$500,000

CONVERTIBLE_NOTES_PAYABLE_AND_3

CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY - Summary of Warrants Issued in Connection with Modified Debentures (Detail) (USD $)	Mar. 31, 2015
Class of Warrant or Right [Line Items]
Number of warrants	337,946
Fair Value	$752,562
Directors [Member] \| January 30, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	10,142
Exercise price	$4.93
Fair Value	39,916
Directors [Member] \| January 5, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	6,173
Exercise price	$8.10
Fair Value	39,901
Directors [Member] \| February 2, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	10,204
Exercise price	$4.90
Fair Value	16,619
July 2014 Modified Debentures [Member] \| January 30, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	40,552
Exercise price	$4.93
Fair Value	159,601
July 2014 Modified Debentures [Member] \| February 26, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	45,537
Exercise price	$2.20
Fair Value	79,904
July 2014 Modified Debentures [Member] \| March 13, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	21,151
Exercise price	$2.36
Fair Value	39,965
July 2014 Modified Debentures [Member] \| March 16, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	10,575
Exercise price	$2.36
Fair Value	19,981
July 2014 Modified Debentures [Member] \| March 20, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	41,946
Exercise price	$1.79
Fair Value	59,942
July 2014 Modified Debentures [Member] \| March 27, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	75,758
Exercise price	$1.98
Fair Value	119,888
September 2014 Modified Debentures [Member] \| January 28, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	18,038
Exercise price	$5.54
Fair Value	80,156
September 2014 Modified Debentures [Member] \| February 13, 2015 [Member]
Class of Warrant or Right [Line Items]
Number of warrants	57,870
Exercise price	$1.73
Fair Value	$96,689

RESTRICTED_STOCK_AND_RESTRICTE2

RESTRICTED STOCK AND RESTRICTED STOCK UNITS ("RSUs") - Additional Information (Detail) (USD $)	0 Months Ended		3 Months Ended	1 Months Ended	0 Months Ended
	Aug. 21, 2014	Jul. 23, 2014	Mar. 31, 2015	Oct. 31, 2014	Apr. 01, 2015	Feb. 10, 2015	Jan. 15, 2015
	Person	Jul. 23, 2014	Mar. 31, 2015	Oct. 31, 2014	Apr. 01, 2015	Feb. 10, 2015	Jan. 15, 2015
Restricted Stock And Restricted Stock Units RSUs [Line Items]
Employment Agreement, Term		2 years
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award			Under the Equity Incentive Plan adopted by the Company, in the amount of the greater (by value) of 50,000 shares of common stock or $500,000 of common stock based on the volume weighted average price for the 30 day period prior to the date of the grant.
Stock Issued During Period, Value, Restricted Stock Award, Gross		$711,500
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period		1 year
Number of Board Members	2
Unrecognized stock based compensation			750,000
Average vesting period			6 months
Restricted Stock [Member]
Restricted Stock And Restricted Stock Units RSUs [Line Items]
Stock Issued During Period, Value, Restricted Stock Award, Gross	3,607,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	346,875		0
Number of shares vested on grant date			168,750
Restricted Stock Units (RSUs) [Member]
Restricted Stock And Restricted Stock Units RSUs [Line Items]
Stock Issued During Period, Value, Restricted Stock Award, Gross	1,267,500
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period	121,875		177,633
Number of shares underlying restricted stock	121,875
Number of shares vested on grant date			135,135
Restricted Stock Units (RSUs) [Member] \| Board Of Directors [Member]
Restricted Stock And Restricted Stock Units RSUs [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period				19,452
Restricted Stock Units (RSUs) [Member] \| Board Of Directors [Member] \| Subsequent Event [Member]
Restricted Stock And Restricted Stock Units RSUs [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period					100,000
Restricted Stock Units (RSUs) [Member] \| Officers and Employees [Member]
Restricted Stock And Restricted Stock Units RSUs [Line Items]
Stock Issued During Period, Value, Restricted Stock Award, Gross						114,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period						100,174
Vesting period description			The RSU's vest every six months through December 31, 2016.
Restricted Stock Units (RSUs) [Member] \| Consultant [Member]
Restricted Stock And Restricted Stock Units RSUs [Line Items]
Stock Issued During Period, Value, Restricted Stock Award, Gross							$450,000
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period							75,000
Vesting period description			Vest in 25,000 installments quarterly through July 15, 2015, beginning with 25,000 which vested immediately on the grant date.
Number of shares vested on grant date							25,000

RESTRICTED_STOCK_AND_RESTRICTE3

RESTRICTED STOCK AND RESTRICTED STOCK UNITS ("RSUs") - Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity (Detail) (USD $)	0 Months Ended	3 Months Ended
	Aug. 21, 2014	Mar. 31, 2015
Restricted Stock [Member]
Schedule Of Share Based Compensation Restricted Stock And Restricted Stock Units Activity [Line Items]
Restricted stock non-vested at beginning of period		168,750
Restricted stock granted	346,875	0
Restricted stock vested		-168,750
Restricted stock forfeited		0
Restricted stock non-vested at end of period		0
Restricted stock non-vested at beginning of period		$10.40
Restricted stock granted		$0
Restricted stock vested		$10.40
Restricted stock forfeited		$0
Restricted stock non-vested at end of period		$0
Restricted Stock Units (RSUs) [Member]
Schedule Of Share Based Compensation Restricted Stock And Restricted Stock Units Activity [Line Items]
Restricted stock non-vested at beginning of period		199,584
Restricted stock granted	121,875	177,633
Restricted stock vested		-135,135
Restricted stock forfeited		0
Restricted stock non-vested at end of period		242,082
Restricted stock non-vested at beginning of period		$10.70
Restricted stock forfeited		$0
Restricted Stock Units (RSUs) [Member] \| Minimum [Member]
Schedule Of Share Based Compensation Restricted Stock And Restricted Stock Units Activity [Line Items]
Restricted stock granted		$1.88
Restricted stock vested		$1.88
Restricted stock non-vested at end of period		$1.88
Restricted Stock Units (RSUs) [Member] \| Maximum [Member]
Schedule Of Share Based Compensation Restricted Stock And Restricted Stock Units Activity [Line Items]
Restricted stock granted		$6.70
Restricted stock vested		$6.70
Restricted stock non-vested at end of period		$11

RESTRICTED_STOCK_AND_RESTRICTE4

RESTRICTED STOCK AND RESTRICTED STOCK UNITS ("RSUs") - Allocation of Recognized Period Costs (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation	$2,511,542
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation	1,055,600
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Share based compensation	$1,455,942

RELATED_PARTY_TRANSACTIONS_Add

RELATED PARTY TRANSACTIONS - Additional Information (Detail) (USD $)	0 Months Ended	12 Months Ended	3 Months Ended
	Oct. 17, 2014	Dec. 31, 2014	Mar. 31, 2015	Jul. 21, 2014	Mar. 31, 2014	Mar. 28, 2014
	Agreement	NotesPayable	Mar. 31, 2015	Jul. 21, 2014	Mar. 31, 2014	Mar. 28, 2014
Related Party Transaction [Line Items]
Notes Payable, Related Parties, Current		678,877	$633,877
Escrow Deposit		400,476	320,400
Deposits and other assets		104,726	74,727
Affiliated Entity [Member]
Related Party Transaction [Line Items]
Escrow Deposit	190,400			190,400
Affiliated Entity [Member] \| PVM International Inc. (PVMI) [Member]
Related Party Transaction [Line Items]
Due to Related Parties, Current					338,477
Number of Promissory Notes		4
Equity Method Investment, Ownership Percentage		100.00%
Number of real estate purchase agreements on which escrow deposits paid	8
Affiliated Entity [Member] \| PVM International Inc. (PVMI) [Member] \| Note Payable #1 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount		250,000
Affiliated Entity [Member] \| PVM International Inc. (PVMI) [Member] \| Note Payable #2 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount		100,000
Affiliated Entity [Member] \| PVM International Inc. (PVMI) [Member] \| Note Payable 3 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount		500,000
Affiliated Entity [Member] \| PVM International Inc. (PVMI) [Member] \| Note Payable #4 [Member]
Related Party Transaction [Line Items]
Debt Instrument, Face Amount		375,000
Related Party [Member] \| Territory Rights Agreement [Member]
Related Party Transaction [Line Items]
Deposits and other assets						500,000
Deferred revenue			$400,000
Agreement term			5 years
Revenue recognition period			5 years

STOCKHOLDERS_EQUITY_Additional

STOCKHOLDER'S EQUITY - Additional Information (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015
NOTE 8 - STOCKHOLDERS EQUITY (Details) [Line Items]
Stock Issued During Period, shares, as a payment of certain accounts payables	45,747
Stock Issued During Period, value, as a payment of certain accounts payables	$135,000
Vaporfection International Inc. [Member]
NOTE 8 - STOCKHOLDERS EQUITY (Details) [Line Items]
Issuance common stock upon exercise of the warrants held by various previous owners of VII	206,489

COMMITMENTS_AND_CONTINGENCIES_1

COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) (USD $)

3 Months Ended

0 Months Ended

3 Months Ended

0 Months Ended

1 Months Ended

12 Months Ended

Mar. 31, 2015

Mar. 31, 2014

Jul. 22, 2014

8-May-14

Sep. 30, 2014

Apr. 07, 2015

Jun. 05, 2014

Oct. 17, 2014

Jul. 21, 2014

Dec. 26, 2014

Jul. 01, 2014

Aug. 01, 2011

Apr. 30, 2015

Dec. 31, 2014

Nov. 19, 2013

22-May-13

Mar. 31, 2013

Agreement

Commitments And Contingencies [Line Items]

Operating Leases, Rent Expense

$44,891

$51,473

Real Estate, Purchase Price

820,000

Escrow Deposit

320,400

400,476

Amount retained by company

600,000

Land and Building [Member]

Commitments And Contingencies [Line Items]

Operating Leases, Rent Expense, Minimum Rentals

20,000

7,400

Lessee Leasing Arrangements, Operating Leases, Term of Contract

5 years

Security Deposit

30,000

Real Estate, Purchase Price

399,594

Notes Issued

249,000

Subsequent Event [Member]

Commitments And Contingencies [Line Items]

Operating Leases, Rent Expense

7,500

Lease Expiration Date

29-Sep-16

Sublease term

18 months

Affiliated Entity [Member]

Commitments And Contingencies [Line Items]

Escrow Deposit

190,400

Affiliated Entity [Member] | MedVend Holdings LLC [Member]

Commitments And Contingencies [Line Items]

Stock Repurchased During Period, Shares (in Shares)

30,000

Investment Owned, at Cost

4,100,000

Legal fees accrued

500,000

Affiliated Entity [Member] | MedVend Holdings LLC [Member] | Agreed Funding at the Closing of the Purchase Agreement Amendment [Member]

Commitments And Contingencies [Line Items]

Equity Method Investment, Ownership Percentage

50.00%

Affiliated Entity [Member] | PVM International Inc. (PVMI) [Member]

Commitments And Contingencies [Line Items]

Number of Real Estate Purchase Agreements

Repayments of Related Party Debt

75,000

Equity Method Investment, Ownership Percentage

100.00%

Kind Meds, Inc. [Member] | Medicine Dispensing Systems [Member]

Commitments And Contingencies [Line Items]

Plaintiff past due balance

550,000

Claims damages

500,000

Office Lease, West Hollywood, California [Member]

Commitments And Contingencies [Line Items]

Operating Lease, Rent Increase, Percent

3.00%

Operating Leases, Rent Expense

14,828

Lease Expiration Date

30-Jun-17

Operating Leases, Rent Expense, Minimum Rentals

14,397

Office Lease, Los Angeles, California [Member] | Subsequent Event [Member]

Commitments And Contingencies [Line Items]

Operating Leases, Rent Expense

7,486

Sublease term

18 months

Agreement One [Member] | Land and Building [Member]

Commitments And Contingencies [Line Items]

Escrow Deposits Related to Property Sales

930,000

Payments to Acquire Real Estate

26,830,000

Agreement One [Member] | Forfeiture Of Earnest Money On Potential Purchase Of Real Estate [Member] | Land and Building [Member]

Commitments And Contingencies [Line Items]

Number of Real Estate Purchase Agreements

Real Estate, Purchase Price

3,195,000

Earnest Money Forfeited

140,000

Agreement Two [Member] | Land and Building [Member]

Commitments And Contingencies [Line Items]

Escrow Deposits Related to Property Sales

685,000

Payments to Acquire Real Estate

21,515,000

Earnest Money Forfeited

235,757

Proceeds from Other Deposits

$80,076

$419,167

COMMITMENTS_AND_CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Rental Payments for Operating Leases (Detail) (USD $)	Mar. 31, 2015
Building [Member]
Property Subject to or Available for Operating Lease [Line Items]
2015	$200,826
2016	245,310
2017	88,968
2018	0
2019	0
Total	535,104
Land and Building [Member]
Property Subject to or Available for Operating Lease [Line Items]
2015	66,600
2016	88,800
2017	88,800
2018	88,800
2019	29,600
Total	$362,600

COMMITMENTS_AND_CONTINGENCIES_3

COMMITMENTS AND CONTINGENCIES - Schedule of Real Estate Properties (Detail) (USD $)	3 Months Ended
	Mar. 31, 2015
Real Estate Properties [Line Items]
Purchase price	$820,000
Net escrow balance	320,400
Additional rents/fees incurred to extend closing date	17,308
Property 1 [Member]
Real Estate Properties [Line Items]
Purchase price	820,000
Closing date	3/31/15
Net escrow balance	55,000
Date escrow opened	6/28/14
Additional rents/fees incurred to extend closing date	17,308
Property 2 [Member]
Real Estate Properties [Line Items]
Purchase price	0
Net escrow balance	265,400
Date escrow opened	7/21/14
Additional rents/fees incurred to extend closing date	$0

SUBSEQUENT_EVENTS_Additional_I

SUBSEQUENT EVENTS - Additional Information (Detail) (USD $)	0 Months Ended	3 Months Ended		0 Months Ended
	Mar. 31, 2015	Mar. 31, 2015	Mar. 31, 2014	Apr. 07, 2015	Apr. 15, 2015	Apr. 09, 2015	Apr. 22, 2015	Sep. 30, 2014
	Mar. 31, 2015	Closings	Mar. 31, 2014	Apr. 07, 2015	Apr. 15, 2015	Apr. 09, 2015	Apr. 22, 2015	Sep. 30, 2014
Subsequent Event [Line Items]
Proceeds from convertible debt		$800,000
Warrants issued		512,000
Warrants terms		3 years
Company's common shares issued upon conversion		1,919,285
Average conversion rate	$1.88	$1.88						$11.75
Sale of stock, shares to be issued	22,160,000
Sale of stock, consideration	15,000,000
Number of closings		6
Rent		44,891	51,473
Convertible Debentures One [Member]
Subsequent Event [Line Items]
Proceeds from convertible debt		780,000
September 2014 Convertible Debentures [Member]
Subsequent Event [Line Items]
Debt Instrument, Face Amount	500,000	500,000
Average conversion rate	$5	$5
September 2014 Convertible Debentures [Member] \| Convertible Debentures One [Member]
Subsequent Event [Line Items]
Proceeds from convertible debt		550,000
July 2014 Convertible Debentures [Member]
Subsequent Event [Line Items]
Debt Instrument, Face Amount	900,000	900,000
Company's common shares issued upon conversion		1,682,787
Average conversion rate	$0.49	$0.49
Calculated VWAP		51.00%
First Closing [Member] \| Option One [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		2,000,000
First Closing [Member] \| Option Two [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		1,000,000
Second Closing [Member] \| Option One [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		2,000,000
Second Closing [Member] \| Option Two [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		1,000,000
Third Closing [Member] \| Option One [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		2,000,000
Third Closing [Member] \| Option Two [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		1,000,000
Fourth Closing [Member] \| Option One [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		2,000,000
Fourth Closing [Member] \| Option Two [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		1,000,000
Fifth Closing [Member] \| Option One [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		2,000,000
Fifth Closing [Member] \| Option Two [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		1,000,000
Sixth Closing [Member]
Subsequent Event [Line Items]
Sale of stock, consideration		5,000,000
Restricted Stock [Member] \| PVM International Inc. (PVMI) [Member]
Subsequent Event [Line Items]
Sale of stock, consideration	5,000,000
Sale of stock, price per share received	$2	$2
Minimum [Member]
Subsequent Event [Line Items]
Warrant exercise price		$1.10
Maximum [Member]
Subsequent Event [Line Items]
Warrant exercise price		$1.66
Subsequent Event [Member]
Subsequent Event [Line Items]
Lease termination date				29-Sep-16
Sublease term				18 months
Rent				7,500
Subsequent Event [Member] \| September 2014 Convertible Debentures [Member]
Subsequent Event [Line Items]
Debt Instrument, Face Amount					500,000
Company's common shares issued upon conversion					879,356
Average conversion rate					$0.57
Calculated VWAP					51.00%
Subsequent Event [Member] \| Debt Instrument, Tranche Three [Member]
Subsequent Event [Line Items]
Debt Instrument, Face Amount						450,000
Debt Instrument, Due after filing						2 days
Subsequent Event [Member] \| Chief Operating Officer [Member]
Subsequent Event [Line Items]
Annual base salary							300,000
Restricted stock units convertible into company common stock							100,000
Severance payment term							Mr. Goh shall be entitled to receive a severance payment equivalent to 6, 12, or 18 months of base salary, based upon whether the length of Mr. Goh's employment with the Company at the time of termination is less than 12 months, greater than 12 months but less than 24 months, or greater than 24 months, respectively.
Subsequent Event [Member] \| Minimum [Member] \| Chief Operating Officer [Member]
Subsequent Event [Line Items]
Annual base salary increase, Percentage							5.00%
Subsequent Event [Member] \| Maximum [Member] \| Chief Operating Officer [Member]
Subsequent Event [Line Items]
Annual base salary increase, Percentage							7.00%
Cash bonus per year							150,000
Annual equity bonus							$150,000
Subsequent Event [Member] \| Employment Termination Less Than 12 Months [Member] \| Chief Operating Officer [Member]
Subsequent Event [Line Items]
Severance payment							6 months
Subsequent Event [Member] \| Employment Termination, Greater Than 12 Months But Less Than 24 Months [Member] \| Chief Operating Officer [Member]
Subsequent Event [Line Items]
Severance payment							12 months
Subsequent Event [Member] \| Employment Termination Greater Than 24 Months [Member] \| Chief Operating Officer [Member]
Subsequent Event [Line Items]
Severance payment							18 months
Preferred Stock [Member]
Subsequent Event [Line Items]
Sale of stock, shares to be issued	2,000,000
Common Stock [Member]
Subsequent Event [Line Items]
Average conversion rate	$0.74	$0.74
Sale of stock, shares to be issued	12,160,000