TOMI Environmental Solutions (TOMZ) 10-K 24 Mar 15 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Mar. 20, 2015	Jun. 30, 2014
Document And Entity Information
Entity Registrant Name	TOMI Environmental Solutions, Inc.
Entity Central Index Key	314227
Document Type	10-K
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	Yes
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		85,266,521
Entity Public Float			$14,121,109
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2014

CONSOLIDATED_BALANCE_SHEET

CONSOLIDATED BALANCE SHEET (USD $)	Dec. 31, 2014	Dec. 31, 2013
Current Assets:
Cash and Cash Equivalents	$160,560	$706,350
Cash - Restricted (Note 6)	105,776	70,124
Accounts Receivable, net	441,153	805,809
Inventories (Note 3)	772,833	407,549
Prepaid Expenses	35,404	7,980
Other Assets	36,644
Deferred Financing Costs - net (Note 6)	199,625
Total Current Assets	1,751,995	1,997,812
Property & Equipment - net (Note 4)	288,159	164,068
Other Assets:
Intangible Assets - net (Note 5)	2,657,056	3,026,564
Deferred Financing Costs - net (Note 6)		542,116
Security Deposits	6,552	2,543
Total Other Assets	2,663,608	3,571,223
TOTAL ASSETS	4,703,762	5,733,103
Current Liabilities:
Accounts Payable and Accrued Expenses	448,064	383,349
Accrued Interest on Convertible Notes (Note 6)	211,417	211,194
Accrued Officers Compensation (Note 9)	41,000	25,000
Common Stock to be Issued (Note 13)	35,925	150,871
Customer Deposits	19,716	14,105
Deferred Rent	15,236
Derivative Liability (Note 7)	1,728,883	7,665,502
Convertible Notes Payable, net of discount at December 31, 2014 of $3,996,033 (Note 6)	1,077,967
Total Current Liabilities	3,578,207	8,450,021
Convertible Notes Payable, net of discount at December 31, 2013 of $5,003,558 (Note 6)		70,442
Total Long-term Liabilities		70,442
Total Liabilities	3,578,207	8,520,463
Commitments and Contingencies
Stockholders' Equity ( Deficiency):
Cumulative Convertible Series A Preferred Stock; par value $0.01, 1,000,000 shares authorized; 510,000 shares issued and outstanding at December 31, 2014 and 2013	5,100	5,100
Cumulative Convertible Series B Preferred Stock; $1,000 stated value; 7.5% Cumulative dividend; 4,000 shares authorized; none issued and outstanding at December 31, 2014 and 2013
Common stock; par value $0.01, 200,000,000 shares authorized; 83,646,275 and 79,867,217 shares issued and outstanding at December 31, 2014 and December 31, 2013, respectively.	836,463	798,672
Additional Paid-in Capital	19,281,647	15,674,958
Accumulated Deficit	-18,997,655	-19,266,090
Total Stockholders' Equity (Deficiency)	1,125,555	-2,787,360
Total Liabilities and Stockholders' Equity (Deficiency)	$4,703,762	$5,733,103

CONSOLIDATED_BALANCE_SHEET_Par

CONSOLIDATED BALANCE SHEET (Parenthetical) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Stockholders' Equity ( Deficiency):
Cumulative Convertible Preferred Stock Series A, Par Value	$0.01	$0.01
Cumulative Convertible Preferred Stock Series A, Shares Authorized	1,000,000	1,000,000
Cumulative Convertible Preferred Stock Series A, Shares Issued	510,000	510,000
Cumulative Convertible Preferred Stock Series A, Shares Outstanding	510,000	510,000
Cumulative Convertible Preferred Stock Series B, Stated Value	$1,000	$1,000
Cumulative Convertible Preferred Stock Series B, Shares Authorized	4,000	4,000
Cumulative Convertible Preferred Stock Series B, Shares Issued	0	0
Cumulative Convertible Preferred Stock Series B, Shares Outstanding	0	0
Cumulative Convertible Preferred Stock Series B, Dividend Percentage	7.50%	7.50%
Common Stock; Par Value	$0.01	$0.01
Common Stock; Shares Authorized	200,000,000	200,000,000
Common Stock; Stock Issued	83,646,275	79,867,217
Common Stock; Stock Outstanding	83,646,275	79,867,217

CONSOLIDATED_STATEMENT_OF_OPER

CONSOLIDATED STATEMENT OF OPERATIONS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Income Statement [Abstract]
Sales, net	$2,248,341	$1,166,457
Cost of Sales	873,990	480,678
Gross Profit	1,374,350	685,779
Costs and Expenses:
Professional Fees	349,546	336,116
Depreciation and Amortization	470,327	318,265
Selling Expenses	380,303	225,954
Research and Development	155,984	127,547
Consulting fees (Note 9)	179,809	551,565
Equity Compensation Expense (Note 8)	2,564,707	148,794
General and Administrative	1,083,885	425,711
Total Costs and Expenses	5,184,561	2,133,952
Loss From Operations	-3,810,211	-1,448,173
Other Income (Expense):
Amortization of Deferred Financing Costs	-342,492	-234,370
Amortization of Debt Discounts	-1,007,525	-70,442
Fair Value Adjustment of Derivative Liability	5,936,619	-349,410
Financing Costs (Note 6)	0	-3,198,803
Interest expense	-507,956	-357,114
Total Other Income (Expense)	4,078,646	-4,210,139
Net Income (Loss)	$268,435	($5,658,312)
Income (Loss) Per Common Share
Basic	$0	($0.07)
Diluted	$0	($0.07)
Basic Weighted Average Common Shares Outstanding	81,281,030	77,474,329
Diluted Weighted Average Common Shares Outstanding	127,398,990	77,474,329

CONSOLIDATED_STATEMENTS_OF_STO

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY (DEFICIENCY) (USD $)	Series A Preferred	Common Stock	Additional Paid-In Capital	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2012	$5,100	$754,555	$12,956,535	($13,607,778)	$108,412
Beginning Balance, Shares at Dec. 31, 2012	510,000	75,455,585
Equity based compensation			148,794		148,794
Common stock issued for services provided, Shares		977,028
Common stock issued for services provided, Amount		9,770	470,984		480,754
Exercise of stock options as payment for legal services, Shares		20,000
Exercise of stock options as payment for legal services, Amount		200	-200
Private placements, net, Shares		3,414,604
Private placements, net, Amount		34,147	976,953		1,011,100
Warrants issued as part of debt private placement			956,711		956,711
Warrants issued as Deferred financing costs			165,181		165,181
Net Income (Loss)				-5,658,312	-5,658,312
Ending Balance, Amount at Dec. 31, 2013	5,100	798,672	15,674,958	-19,266,090	-2,787,360
Ending Balance, Shares at Dec. 31, 2013	510,000	79,867,217
Options and warrants issued to executives for services			2,564,707		2,564,707
Common stock issued for services provided, Shares		901,580
Common stock issued for services provided, Amount		9,016	340,827		349,843
Common stock issued for executive compensation, Shares		178,125
Common stock issued for executive compensation, Amount		1,781	52,219		54,000
Exercise of stock options as payment for legal services, Shares		20,000
Exercise of stock options as payment for legal services, Amount		200	-200
Proceeds from issuance of common stock, net, Shares		377,778
Proceeds from issuance of common stock, net, Amount		3,778	95,162		98,940
Proceeds from issuance of common stock and warrants, net, Shares		2,290,243
Proceeds from issuance of common stock and warrants, net, Amount		22,902	574,013		596,915
Issuance of common stock as finder's fee, Shares		11,332			11,332
Issuance of common stock as finder's fee, Amount		113	-113
Value of common stock to be issued as finder's fee			-19,925		-19,925
Net Income (Loss)				268,435	268,435
Ending Balance, Amount at Dec. 31, 2014	$5,100	$836,462	$19,281,647	($18,997,655)	$1,125,555
Ending Balance, Shares at Dec. 31, 2014	510,000	83,646,275

CONSOLIDATED_STATEMENT_OF_CASH

CONSOLIDATED STATEMENT OF CASH FLOWS (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cash Flow From Operating Activities:
Net Income (Loss)	$268,435	($5,658,312)
Adjustments to Reconcile Net Income (loss) to Net Cash Used In Operating Activities:
Depreciation and Amortization	470,328	318,264
Amortization of Deferred Financing Costs	342,492	234,371
Amortization of Debt Discount	1,007,525	70,442
Finance Charges in connection with Convertible Debt		3,198,804
Fair Value Adjustment of Derivative Liability	-5,936,619	349,410
Equity Based Compensation	2,564,707	148,794
Value of Equity Issued for Services	403,843	480,754
Reserve for Bad Debts	37,500
Decrease (increase) in:
Accounts Receivable	327,156	-590,152
Inventory	-508,200	-407,547
Prepaid Expenses	-27,424	-2,580
Other Assets	-36,644
Deposits	-4,010	-2,043
Increase (Decrease) in:
Accounts Payable and Accrued Expenses	61,655	157,861
Accrued Interest	222	211,194
Accrued Officers Compensation	16,000	20,000
Common Stock to be Issued	-134,872	150,871
Deferred Rent	15,236
Customer Deposits	5,611	14,105
Net Cash Used in Operating Activities	-1,127,059	-1,305,764
Cash Flow From Investing Activities:
Purchase of Intangibles		-3,288,300
Purchase of Property and Equipment	-81,994	-172,691
Net Cash Used in Investing Activities	-81,994	-3,460,991
Cash Flow From Financing Activities:
Proceeds from Convertible Notes Payable		5,074,000
Repayment of Loan Payable to Officer		-3,988
Deferred Debt Costs		-611,306
Proceeds From Issuance of Common Stock and Warrants	765,262	1,041,099
(Increase) in Bond Sinking Fund	-35,653	-70,124
Payment of Finder's Fee	-66,347	-30,000
Net Cash Provided by Financing Activities	663,262	5,399,681
Increase (Decrease) In Cash and Cash Equivalents	-545,792	632,926
Cash and Cash Equivalents - Beginning	706,350	73,424
Cash and Cash Equivalents - Ending	160,560	706,350
Supplemental Cash Flow Information:
Cash Paid For Interest	507,956	145,920
Cash Paid For Income Taxes		933
Non-Cash Investing and Finance Activities:
Reclassification of demo equipment from inventory to property and equipment	142,916	0
Discount on convertible debt		5,074,000
Common Stock Warrants Issued As Deferred Finance Costs		165,181
Cash Finder's Fee Accrual	3,060
Common Stock Finder's Fee Accrual	19,925
Establishment of derivative liability		$7,316,092

1_DESCRIPTION_OF_BUSINESS

1. DESCRIPTION OF BUSINESS	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 1. DESCRIPTION OF BUSINESS	TOMI Environmental Solutions, Inc. is a global decontamination and infectious disease control company, providing environmental solutions for indoor and outdoor surface decontamination through the sale of equipment, services and licensing of our SteraMistTM Binary Ionization Technology® (“BIT™”) hydrogen peroxide based mist and fogs.

2_SUMMARY_OF_SIGNIFICANT_ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Going Concern
	The Company incurred losses from operations of approximately $3,810,000 and $1,448,000 for the years ended December 31, 2014 and 2013, respectively. In addition, the Company had a working capital deficiency of approximately $1,826,000 at December 31, 2014. Cash and cash equivalents was approximately $161,000 as of December 31, 2014. In addition, the Company has not been able to generate positive cash from operations for the years ended December 31, 2014 and 2013. These factors raise substantial doubt about the Company's ability to continue as a going concern.
	The Company plans on funding operations and liquidity needs from the sales of its products and services, licensing arrangements, debt financing and/or sales of its common stock and notes convertible into common stock. There can be no assurance that additional funds required for continued operations during the next year or thereafter will be generated from our operations.
	Should the Company seek additional funds from external sources such as debt or additional equity financings or other potential sources, there can be no assurance that such funds will be available on terms acceptable to the Company or that they will not have a significant dilutive effect on the Company's existing stockholders. The inability to generate cash flow from operations or to raise sufficient capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business.
	During the year ended December 31, 2014 the Company raised gross proceeds of $765,262 through the sale of 2,668,021 shares of common stock and equity units (see note 8 for additional details).
	Accordingly, the Company's existence is dependent on management's ability to develop profitable operations and resolve its liquidity problems. The accompanying consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.
	Principles of Consolidation
	The accompanying consolidated financial statements include the accounts of TOMI Environmental Solutions, Inc. (a Florida Corporation) (TOMI-Florida), and its wholly-owned subsidiary, TOMI Environmental Solutions, Inc. (a Nevada Corporation) (TOMI-Nevada). The Company’s 55% owned subsidiary, TOMI Environmental-China (TOMI-China), has been dormant since its formation in April 2011. All significant intercompany accounts and transactions have been eliminated in consolidation.
	Use of Estimates
	The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the accompanying consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable, fair values of financial instruments, intangible assets, useful lives of intangible assets and property and equipment, fair values of stock-based awards, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of our assets and liabilities.
	Reclassification of Accounts
	Certain reclassifications have been made to prior-year comparative financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or financial position.
	Fair Value Measurements
	The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv)willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:
		Level 1:	Quoted prices in active markets for identical assets or liabilities.
		Level 2:	Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities.
		Level 3:	Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities.
	The Company’s financial instruments include cash and equivalents, accounts receivable, accounts payable and accrued expenses. All these items were determined to be Level 1 fair value measurements.
	The carrying amounts of cash and equivalents, accounts receivable, accounts payable and accrued expenses, approximated fair value because of the short maturity of these instruments. The recorded value of convertible debt approximates its fair value as the terms and rates approximate market rates (See also Note 6)
	Cash and Cash Equivalents
	For purposes of the statement of cash flows, cash and cash equivalents includes cash on hand held at financial institutions and other liquid investments with original maturities of three months or less.
	Inventories
	Inventories are valued at the lower of cost or market using the first-in, first-out (”FIFO”) method. Inventories consist primarily of raw materials and finished goods.
	Property and Equipment
	We account for property and equipment at cost less accumulated depreciation. We compute depreciation using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation for equipment, furniture and fixtures and vehicles commences once placed in service for its intended use. Leasehold improvements are amortized using the straight-line method over the lives of the respective leases or service lives of the improvements, whichever is shorter.
	Deferred Financing Costs
	The Company follows authoritative guidance for accounting for financing costs as it relates to convertible debt issuance cost. These costs are deferred and amortized over the term of the debt period or until redemption of the convertible debentures. Amortization of deferred financing costs amounted to approximately $342,000and $234,000 for the years ended December 31, 2014 and 2013, respectively.
	Income taxes
	Deferred income tax assets and liabilities are determined based on differences between the financial statement reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The measurement of deferred income tax assets is reduced, if necessary, by a valuation allowance for any tax benefits, which are, on a more likely than not basis, not expected to be realized; in accordance with ASC guidance for income taxes. Net deferred tax benefits have been fully reserved at December 31, 2014 and 2013. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted.
	Income (Loss) Per Share
	Basic income (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of common shares outstanding during the period presented. Diluted loss per share is based on the treasury stock method and includes the effect from potential issuance of common stock such as shares issuable pursuant to the exercise of warrants and conversions of debentures.
	Potentially dilutive securities as of December 31, 2014, consisted of 17,496,552 common shares from convertible debentures, 28,051,408 common shares from outstanding warrants (including 7,611,000 warrants issued in conjunction with the above convertible notes), 60,000 common shares from options and 510,000 common shares from convertible Series A preferred stock.
	Potentially dilutive securities as of December 31, 2013, consisted of 17,496,552 common shares from convertible debentures, 19,325,800 common shares from outstanding warrants (including 7,611,000 warrants issued in conjunction with the above convertible notes), 60,000 common shares from options and 510,000 common shares from convertible Series A preferred stock. Diluted and basic weighted average shares are the same, as potentially dilutive shares are anti-dilutive.
	The following provides a reconciliation of the shares used in calculating the per share amounts for the periods presented:
			For the years
			Ended December 31,
			2014		2013
	Numerator:
	Net Income (Loss)		$	268,435	$	-5,658,312
	Denominator:
	Basic weighted-average shares			81,281,030		77,474,329
	Effect of dilutive securities
	Warrants			28,051,408		-
	Convertible Debt			17,496,552		-
	Options			60,000		-
	Preferred Stock			510,000		-
	Diluted Weighted Average Shares			127,398,990		77,474,329
	Net Income (Loss)
	Basic		$	0	$	-0.07
	Diluted		$	0	$	-0.07
	Note: Warrants, Convertible Debt, Options, and Preferred Stock for the year ended December 31, 2013, are not included in the computation of diluted weighted average shares as such inclusion would be anti-dilutive.
	Loss from Operations Data:
	Loss from Operations		$(3,810,211)	($1,448,173)
	Basic and Diluted Weighted
	Average Shares		81,281,030	77,474,329
	Basic and Diluted Loss per Share		($0.05)	($0.02)
	Revenue Recognition
	For revenue from services and product sales, the Company recognized revenue in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition” (SAB No. 104), which superseded Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB No. 101). SAB No. 104 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) service has been rendered or delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgment regarding the fixed nature of the selling prices of the services rendered or products delivered and the collectability of those amounts. Provisions for discounts to customers, and allowance, and other adjustments will be provided for in the same period the related sales are recorded.
	Stock-Based Compensation
	The Company accounts for stock-based compensation in accordance with Financial Accounting Standards Board (“FASB”), ASC 718, Compensation- “Stock Compensation.” Under the provisions of FASB ASC 718, stock-based compensation cost is estimated at the grant date based on the award’s fair value and is recognized as expense over the requisite service period. The Company currently has one active stock-based compensation plan, TOMI Environmental Solutions, Inc. Stock Option and Restricted Stock Plan (the “Plan”). The Plan calls for the Company, through a committee of its Board of Directors, to issue up to 2,500,000 shares of restricted common stock or stock options. The Company generally issues grants to its employees, consultants, and board members. Stock options are granted with an exercise price equal to the closing price of its common stock on the date of the grant with a term no greater than 10 years. Generally, stock options vest over two to four years. Incentive stock options granted to shareholders who own 10% or more of the Company’s outstanding equity securities are granted at an exercise price that may not be less than 110% of the closing price of the Company’s common stock on the date of grant and have a term no greater than five years. On the date of a grant, the Company determines the fair value of the stock option award and recognizes compensation expense over the requisite service period, which is generally the vesting period of the award. The fair value of the stock option award is calculated using the Black-Scholes option-pricing model. As of December 31, 2014, the Company had 712,291 shares available to be issued under the Plan.
	On February 11, 2014, the Company’s Board of Directors adopted the 2014 Stock Option Plan (the “Plan”), subject to shareholder approval, intended to attract and retain individuals of experience and ability, to provide incentive to our employees, consultants, and non-employee directors, to encourage employee and director proprietary interests in us, and to encourage employees to remain in our employ. Each of the named executive officers is eligible for annual equity awards, which are granted pursuant to the Plan. The Plan authorizes the grant of non-qualified and incentive stock options, stock appreciation rights and restricted stock awards (each, an “Award”). A maximum of 5,000,000 shares of common stock are reserved for potential issuance pursuant to Awards under the Plan. As of December 31, 2014, no shares have been issued under the 2014 Stock Option Plan.
	Concentrations of Credit Risk
	Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company maintains cash balances at financial institutions which exceed the current Federal Deposit Insurance Corporation (“FDIC”) limit of $250,000 at times during the year.
	Long-Lived Assets Including Acquired Intangible Assets
The Company assesseslong-lived assets for potential impairments at the end of each year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. In evaluating long-lived assets for impairment, the Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If the Company’s long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. The Company bases its calculations of the estimated fair value of its long-lived assets on the income approach. For the income approach, The Company usesan internally developed discounted cash flow model that include, among others, the following assumptions: projections of revenues and expenses and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations.
We have had no long-lived asset impairment charges for the years ended December 31, 2014 and 2013. The Company’s most recent detailed test disclosed an estimated fair value of its patents and trademarks that exceeded its’ respective carrying amount based on our model and assumptions.
Advertising and Promotional Expenses
The Company expenses advertising costs in the period in which they are incurred. For the year ended December 31, 2014 and 2013, advertising and promotional expenses were approximately $11,000 and $6,000, respectively.
Recent Accounting Pronouncements
In May of 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflect the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements.

3_INVENTORIES

3. INVENTORIES	12 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
NOTE 3: INVENTORIES	Inventories consist of the following:
		December 31,		December 31,
		2014		2013
	Raw materials	$	159,807	$	1,500
	Finished goods	613,026		406,049
	Inventory, end of period	$	772,833	$	407,549

4_PROPERTY_AND_EQUIPMENT

4. PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 4. PROPERTY AND EQUIPMENT	Property and equipment consists of the following:
		December 31,	December 31,
		2014	2013
	Furniture and fixture	$                  69,555	$                   22,390
	Equipment	374,620	217,672
	Vehicles	44,344	44,344
	Software	12,167	-
	Leasehold Improvements	8,630	-
		509,316	284,406
	Less: Accumulated depreciation	221,157	120,338
		$                288,159	$                 164,068
	Depreciation was $100,819 and $56,529 for the years ended December 31, 2014 and 2013, respectively.

5_INTANGIBLE_ASSETS_AND_ASSET_

5. INTANGIBLE ASSETS AND ASSET ACQUISITION	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 5. INTANGIBLE ASSETS AND ASSET ACQUISITION	On April 15, 2013 the Company completed the acquisition of binary ionization technology and related patents and other assets consisting of personal property and inventory related to implementation of the Binary Ionization Technology related to these patents from L-3 Applied Technologies, Inc. ("L-3"). All of these assets are pledged as collateral for the convertible notes issued as described below in Note 6.
	The purchase price allocation was obtained from an independent valuation firm. The following sets forth the components of the final purchase price allocation:
	Purchase Price
	Cash payment	$	3,500,000
	Warranty expense		10,000
	Total purchase price	$	3,510,000
	Assets Purchased
	Inventory	$	71,700
	Fixed assets		150,000
	Patents		2,848,300
	Trademarks		440,000
	Total Assets Acquired	$	3,510,000
	The intangible assets purchased consist of Patents and Trademarks. The patents are being amortized over the estimated remaining lives of the related patents, which is 7.7 years. The trademarks have an indefinite life. Amortization expense was $369,508 and $261,736 for the years ended December 31, 2014 and 2013.
	Definite life intangible assets consist of the following:
			December 31,	December 31,
			2014	2013
	Intellectual property and patents		$      2,848,300	$      2,848,300
	Less: Accumulated Amortization	631,244	261,736
	Intangible Assets, net		$      2,217,056	$      2,586,564
	Indefinite life intangible assets consist of the following:
			December 31,	December 31,
			2014	2013
	Trademarks		$         440,000	$          440,000
			December 31,	December 31,
			2014	2013
	Total Intangible Assets		$         2,657,056	$          3,026,564
	Approximate amortization over the next five years is as follows:
	Year Ending December 31,		Amount
	2015		$370,000
	2016		370,000
	2017		370,000
	2018		370,000
	2019		370,000
	Thereafter		367,000
			$2,217,000

6_CONVERTIBLE_DEBT

6. CONVERTIBLE DEBT	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 6. CONVERTIBLE DEBT	In November 2012, the Company initiated a Private Placement offering a maximum of 240 Units of the Company’s securities at a price of $25,000 per Unit or $6,000,000. The initial closing of the offering occurred in April 2013 as the bulk of the net proceeds of the offering were to be allocated for the asset purchase from L-3 Applied Technologies, Inc., which agreement was not finalized until April 2013. Each Unit consists of $25,000 par amount of a 10% Senior Secured Callable Convertible Promissory Note due and payable on July 31, 2015 and 37,500 warrants each of which allows the investor to purchase one share of common stock and expires on July 31, 2018. Interest is payable on the Notes at a rate of 10% per annum, and payable on July 31st and January 31st.  The Notes are secured by the Company's intellectual property such as the Patents, royalties, receivables of the Company and all equipment except for the new equipment acquired with the proceeds from any future financing that is initially secured by this new equipment. The Notes call for the establishment of a sinking fund. Within 45 days of each calendar quarter 15% of the Company’s reported revenue will be deposited into the Company’s escrowed sinking fund account. During the fourth quarter and subsequent to December 31, 2014, the Company funded approximately $157,000 or 15% of the fourth quarter revenue into the sinking fund account.
	The Company sold 202.96 Units for gross proceeds of $5,074,000 and issued 7,611,000 warrants in connection with the Units. Net proceeds amounted to $4,462,693 after expenses of offering totaling $611,307. In addition, the placement agent received 1,014,800 warrants valued at $165,180.
	The convertible notes are convertible, at the option of the note holder, into shares of our common stock at an initial conversion price of $.29 (which conversion price is subject to adjustment upon the occurrence of events specified in the Convertible Notes, including stock dividends, stock splits, certain fundamental corporate transactions, and certain issuances of common stock by the Company).
	The Warrants are exercisable into shares of Common Stock (the "Warrant Shares") at an initial exercise price of $0.30 (which may be subject to certain adjustments as set forth in the Warrants).
	The Company evaluated the warrants under ASC 815-40-15 due to the exercise price being adjustable upon certain events occurring. The company determined that the warrants are considered indexed to the Company’s own stock and thus meet the scope exception under FASB ASC 815-10-15-74 and are therefore not considered a derivative. The estimated fair value of the warrants, which contain reset provisions, were calculated using the Monte Carlo valuation model. The Company recorded the warrant’s relative fair value of $956,712 as an increase to additional paid in capital and a discount against the related debt.
	The Convertible Notes contain a provision whereby the conversion price is adjustable upon the occurrence of certain events, including the issuance of common stock or common stock equivalents at a price which is lower than the current conversion price. Under FASB ASC 815-40-15-5, the embedded conversion feature is not considered indexed to the Company’s own stock and, therefore, does not meet the scope exception in FASB ASC 815-10-15 and thus needs to be accounted for as a derivative liability. The initial fair value of the embedded conversion feature was estimated at $7,316,092 and recorded as a derivative liability, resulting in an additional discount of $4,117,288 to the convertible notes and a finance charge of $3,198,804 included in the statement of operations for the year ended December 31, 2013. The fair value of the embedded conversion feature is estimated at the end of each quarterly reporting period using the Monte Carlo model.
	The debt discount is being amortized over the life of the convertible note using the effective interest method.
	Inherent in the Monte Carlo Valuation model are assumptions related to expected volatility, remaining life, risk-free rate and expected dividend yield. For the Convertible Notes using a Monte Carlo model, we estimate the probability and timing of potential future financing and fundamental transactions as applicable. The assumptions used by the Company are summarized below:
	Convertible Notes
			December 31,		December 31,
			2014		2013	Inception
	Closing stock price		$              0.27		$              0.42	0.13-0.55
	Conversion price		$              0.29		$              0.29	0.29
	Expected volatility		114%		175%	185%-190%
	Remaining term (years)		0.58		1.58	2.30-2.07
	Risk-free rate		0.13%		0.28%	.25%-.43%
	Expected dividend yield		0%		0%	0%
	Warrant
			Inception
	Closing stock price		0.13-0.55
	Conversion price		0.3
	Expected volatility		250%
	Remaining term (years)		5.30-5.09
	Risk-free rate		.76% - (1.61%)
	Expected dividend yield		0%
	Convertible notes consist of the following at December 31, 2014 and December 31, 2013:
			December 31,		31-Dec-13
			2014
	Convertible notes	$	5,074,000	$	5,074,000
	Initial Discount on convertible notes		-5,074,000		(5,074,000)
	Accumulated amortization of discount		1,077,967		70,442
	Total convertible notes, net	$	1,077,967	$	70,442

7_FAIR_VALUE

7. FAIR VALUE	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 7. FAIR VALUE	In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures”, the following table represents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014 and December 31, 2013:
	December 31, 2014:		Level 3		Total
	Derivative Instruments	$	1,728,883	$	1,728,883
	December 31, 2013:		Level 3		Total
	Derivative Instruments	$	7,665,502	$	7,665,502
	Level 3 financial instruments consist of certain embedded conversion features. The fair value of these embedded conversion features that have exercise reset features are estimated using a Monte Carlo valuation model. The Company adopted the disclosure requirements of ASU 2011-04, “Fair Value Measurements.”(See note 6) The unobservable input used by the Company was the estimation of the likelihood of a reset occurring on the embedded conversion feature of the Convertible Notes. These estimates of the likelihood of completing an equity raise that would meet the criteria to trigger the reset provisions are based on numerous factors, including the remaining term of the financial instruments and the Company’s overall financial condition.
	The following table summarizes the changes in fair value of the Company’s Level 3 financial instruments for the period ended December 31, 2014 and 2013.
			December 31,			December 31,
			2014			2013
	Beginning Balance	$	7,665,502		$	7,316,092
	Change in fair value	-5,936,619		349,410
	Ending Balance	$	1,728,883		$	7,665,502
	Changes in the unobservable input values would likely cause material changes in the fair value of the Company’s Level 3 financial instruments. The significant unobservable input used in the fair value measurement is the estimation of the likelihood of the occurrence of a change to the conversion price based on the contractual terms of the financial instruments. A significant increase (decrease) in this likelihood would result in a higher (lower) fair value measurement.

8_STOCKHOLDERS_EQUITY_DEFICIEN

8. STOCKHOLDERS' EQUITY (DEFICIENCY)	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 8. STOCKHOLDERS' EQUITY (DEFICIENCY)	The Company’s Board of Directors may, without further action by the Company’s stockholders, from time to time, direct the issuance of any authorized but unissued or unreserved shares of preferred stock in series and at the time of issuance, determine the rights, preferences and limitations of each series. The holders of such preferred stock may be entitled to receive a preference payment in the event of any liquidation, dissolution or winding-up of the Company before any payment is made to the holders of our common stock. Furthermore, the Board of Directors could issue preferred stock with voting and other rights that could adversely affect the voting power of the holders of our common stock.
	Convertible Series A Preferred Stock
	The Company has authorized 1,000,000 shares of Convertible Series A Preferred Stock, $0.01 par value. At December 31, 2014and 2013, there were 510,000 shares issued and outstanding, respectively. The Convertible Series A Preferred Stock is convertible at the rate of one share of common stock for one share of Convertible Series A Preferred Stock.
	Convertible Series B Preferred Stock
	The Company has authorized 4,000 shares of Convertible Series B Preferred Stock,$1,000 stated value,7.5% Cumulative dividend. At December 31, 2014 and 2013, there were no shares issued and outstanding, respectively.
	Common Stock
	During the year ended December 31, 2013, the Company issued 977,028 shares of common stock valued at $480,754 for services rendered and issued an aggregate of 3,414,604 shares of common stock for gross proceeds of $1,011,100.
	During the year ended December 31, 2014, the Company issued 326,035 shares of common stock valued at approximately $105,893 for professional services rendered.
	During the year ended December 31, 2014, the Company issued 44,319 shares of common stock valued at $15,000 to Harold Paul, Director, as payment for legal services rendered.
	During the year ended December 31, 2014, the Company issued 455,000 shares to the Rolyn Companies, Inc. (“Rolyn”) for labor and services support valued at $203,950 of which 230,000 shares valued at $128,800 were recorded as common stock to be issued at December 31, 2013. (See Note 9).
	In addition, the Company issued 76,226 shares valued at $25,000 to a consultant for services rendered for the year ended December 31, 2014.
	During the year ended December 31, 2014, the Company issued 78,125 shares as consideration for payment of accrued compensation to the CEO amounting to $25,000. The Company also issued 100,000 shares to the COO amounting to $29,000 as part of his employment agreement (see note 11).
	During the year ended December 31, 2014, the Company sold 377,778 shares of common stock at $.27 per share for gross proceeds of $102,000. In connection with the sale, the Company incurred a cash finder fee in the amount of $3,060 in addition to a finder’s fee paid in common stock of 11,332 shares valued at $3,060.
	During the year ended December 31, 2014, the Company sold 2,290,243 equity units. Each unit consisted of 1 share of common stock and 2.5 warrants. The warrants have an exercise price of $.29 per share and a term of five years. Gross proceeds to the Company amounted to $663,262. In connection with the sale, the Company incurred a cash finder’s fee in the amount of $66,347 in addition to a finder’s fee to be paid in common stock of 68,707 shares valued at $19,925.
	Stock Options
	The Company issued 20,000 options valued at $3,000 to a director in January 2013. The options have an exercise price of $0.15 per share. The options expire in January 2023. The options were valued using the Black-Scholes model using the following assumptions: volatility: 343%; dividend yield: 0%; zero coupon rate: 0.25%; and a life of 10 years.
	The Company issued 20,000 options valued at $8,723 to a director in January 2014. The options have an exercise price of $0.44 per share. The options expire in January 2024. The options were valued using the Black-Scholes model using the following assumptions: volatility: 233%; dividend yield: 0%; zero coupon rate: 1.72%; and a life of 10 years.
	The following table summarizes stock options outstanding as of December 31, 2014 and 2013:
			31-Dec-14				31-Dec-13
			Number of Warrants		Weighted Average Exercise Price		Number of Warrants	Weighted Average Exercise Price
	Outstanding, beginning of year		60,000		$1.42		60,000	$1.42
	Granted		20,000		0.44		20,000	0.15
	Exercised		-20,000		0.44		-20,000	0.15
	Outstanding, end of year		60,000		$1.42		60,000	$1.42
	Options outstanding and exercisable by price range as of December 31, 2014 were as follows:
								Average		Exercisable Options
								Weighted
	Range				Number			Remaining		Number		Weighted
								Contractual				Average
								Life in Years				Exercise Price
	$	2.1				40,000			5.01		40,000	$	2.1
	$	0.05				20,000			6.02		20,000	$	0.05
						60,000					60,000
	Stock Warrants
	The Company issued 250,000 warrants valued at $37,495 to a consultant in January 2013. The warrants have an exercise price of $0.15 and expire in January 2018. The warrants were valued using the Black-Scholes model with the following assumptions: volatility: 343%; dividend yield: 0%; zero coupon rate: 0.25%; and a life of 5 years.
	During the year ended December 31, 2013, the Company issued 7,611,000 warrants in connection with convertible debt units and 1,014,800 warrants to the placement agent (see Note 6). These warrants have an initial exercise price of $0.30 per share and expire July 31, 2018.
	In June 2013, the Company issued 100,000 warrants with an exercise price of $.261 per share to a consultant for services. The warrants were valued at $54,767 using the Black-Scholes model with the following assumptions: volatility, 245%; dividend yield, 0%; zero coupon rate, 0.25%; and a life of 5 years.
	On September 26, 2013, the Company’s Chief Financial Officer, Christopher Chipman, was granted 300,000 warrants. The warrants had a term of five years and vest 100,000 upon the grant date, 100,000 on September 26, 2014 and 100,000 on September 26, 2015. The exercise price of the warrant is $0.77 per share based on the volume weighted average price of the Company’s common stock for the five days prior to the grant date. If employment is terminated, the terms of any then outstanding warrant held by the holder shall extend for a period ending on the earlier of the date on which such warrant would otherwise expire or three months after such termination of employment and the warrant shall be exercisable to the extent it was exercisable as of the date of termination of employment. Any unvested warrants shall be deemed null and void. The Company utilized the Black-Scholes method to fair value the 300,000 warrants received by this individual totaling $208,022 with the following assumptions: volatility, 179%; expected dividend yield, 0%; risk free interest rate, 1.43%; and a life of 5 years. Effective July 18, 2014, Chris Chipman resigned from his position of Chief Financial Officer of the Company and accordingly, his unvested share of warrants were deemed to be null and void. The vested portion of the warrants expired prior to December 31, 2014. For the year ended December 31, 2014, the Company reversed out the equity based compensation attributable to the accrued but not vested portion of the warrants.
	On February 11, 2014, as part of the employment agreements entered into with its three executive officers (CEO, President and COO), the Board of Directors approved the grant of 3,000,000 stock warrants to each of them as executive compensation. The warrants have a term of five years and vest as follows: 1,000,000 warrants will vest upon issuance; 1,000,000 warrants will vest as of February 11, 2015, and 1,000,000 warrants will vest as of February 11, 2016. The exercise price of the warrants is $0.30 per share based on the closing price of the Company’s common stock on the grant date of $0.32.  If employment is terminated, the terms of any then outstanding warrant held by the holder shall extend for a period ending on the earlier of the date on which such warrant would otherwise expire or three months after such termination of employment and the warrant shall be exercisable to the extent it was exercisable as of the date of termination of employment. Any unvested warrants shall immediately vest on termination. The Company utilized the Black-Scholes method to fair value the 3,000,000 warrants received by these individuals totaling approximately $952,000 for each executive with the following assumptions: volatility, 233%; expected dividend yield, 0%; risk free interest rate, 1.54%; and a life of 5 years. The grant date fair value of each warrant was $0.32. Effective September 25, 2014, the President and COO resigned from their positions with the Company and accordingly, the remaining unvested warrants immediately vested. The Company recognized equity based compensation of approximately $1,904,000 in connection with the vested warrants for the President and COO for the year ended December 31, 2014. As of December 31, 2014, their warrants expired. In addition, the Company recognized equity based compensation for the CEO for approximately $596,000 on the vested warrants and accrual of unvested warrants.
	On February 11, 2014, the Company’s Board of Directors approved the granting of 300,000 stock warrants to its CFO as incentive compensation. The warrants have a term of five years and vest as follows: 100,000 warrants will vest upon issuance; 100,000 warrants will vest as of February 11, 2015, and 100,000 warrants will vest as of February 11, 2016. The exercise price of the warrants is $0.30 per share based on the closing price of the Company’s common stock on the grant date of $0.32.  If employment is terminated, the terms of any then outstanding warrant held by the holder shall extend for a period ending on the earlier of the date on which such warrant would otherwise expire or three months after such termination of employment and the warrant shall be exercisable to the extent it was exercisable as of the date of termination of employment. Any unvested warrants shall be deemed null and void. The Company utilized the Black-Scholes method to fair value the 300,000 warrants received by the Company’s executive totaling approximately $95,000 with the following assumptions: volatility, 233%; expected dividend yield, 0%; risk free interest rate, 1.54%; and a life of 5 years. The grant date fair value of each warrant was $0.32. Effective July 18, 2014, Chris Chipman resigned from his position of Chief Financial Officer of the Company and accordingly, his unvested share of warrants were deemed to be null and void. For the year ended December 31, 2014, the Company recognized approximately $32,000 in equity based compensation for the vested portion of the warrants.
	On October 1, 2014, the Company’s Board of Directors approved the granting of 300,000 stock warrants to its new CFO as incentive compensation. The warrants have a term of five years and vest as follows: 100,000 warrants will vest upon issuance; 100,000 warrants will vest as of October 1, 2015, and 100,000 warrants will vest as of October 1, 2016. The exercise price of the warrant is $0.30 per share based on the volume weighted average price of the Company’s common stock for the five days prior to the grant date. If employment is terminated, the terms of any then outstanding warrant held by the holder shall extend for a period ending on the earlier of the date on which such warrant would otherwise expire or three months after such termination of employment and the warrant shall be exercisable to the extent it was exercisable as of the date of termination of employment. Any unvested warrants shall be deemed null and void. The Company utilized the Black-Scholes method to fair value the 300,000 warrants received by the Company’s executive totaling approximately $89,000 with the following assumptions: volatility, 221%; expected dividend yield, 0%; risk free interest rate, 1.80%; and a life of 5 years. The grant date fair value of each warrant was $0.30. For the year ended December 31, 2014, the Company recognized approximately $37,000 in equity based compensation on the vested warrants and accrual of unvested warrants.
	The following table summarizes the outstanding common stock warrants as of December 31, 2014 and 2013:
			31-Dec-14				31-Dec-13
			Number of Warrants		Weighted Average Exercise Price		Number of Warrants	Weighted Average Exercise Price
	Outstanding, beginning of year		19,325,800		$0.21		10,050,000	$0.12
	Granted		15,325,608		0.3		9,275,800	0.31
	Expired		-300,000		0.77		-	-
	Expired		-6,300,000		0.3		-	-
	Exercised		-		-		-	-
	Outstanding, end of year		28,051,408		$0.23		19,325,800	$0.21
	Warrants outstanding and exercisable by price range as of December 31, 2014 were as follows:
	Outstanding Warrants			Exercisable Warrants
	Range	Number	Average	Number	Weighted
			Weighted		Average
			Remaining		Exercise Price
			Contractual
			Life in Years
	$0.01	1,575,000	2.53	1,575,000	$0.01
	$0.05	975,000	2.62	975,000	$0.05
	$0.15	7,750,000	2.8	7,750,000	$0.15
	$0.26	100,000	3.49	100,000	$0.26
	$0.29	5,725,608	4.67	5,725,608	$0.29
	$0.30	11,925,800	3.75	9,725,800	$0.30
		28,051,408		25,851,408
Unvested warrants outstanding as of December 31, 2014 were as follows:
Unvested Warrants
Weighted	Number	Average
Average		Weighted
Exercise Price		Remaining
		Contractual
		Life in Years
$0.30	2,200,000	4.2

9_RELATED_PARTY

9. RELATED PARTY	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 9. RELATED PARTY	Employment Agreement
	On February 11, 2014, the Company entered into an amended employment agreement with its CEO as well as new employment agreements with its President and COO that provide each with a base salary of $36,000 per year.  The agreements provided for an increase in the base salary to $120,000 if annual gross revenue exceeds five million and $175,000 if annual gross revenue were to exceed ten million on a calendar year basis.  Any bonuses awarded will be based upon the Company’s performance and be made at the discretion of the Board of Directors.  The CEO, President and COO will also have the right to receive expense reimbursements and certain employee benefits.  The terms of the employment agreements will be three years terminating on December 31, 2016. Effective September 24, 2014, the president and COO resigned from the Company and their employments contracts were terminated.
	The Company appointed Nick Jennings as its Principal Financial Officer effective September 25, 2014. Mr. Jennings employment with the Company commenced on October 1, 2014. The employment agreement between Mr. Jennings and the Company provides for an annual base salary of $60,000 to be paid in the form of cash and $24,000 to be paid in the form of the Company’s restricted stock. As part of Mr. Jennings’s agreement, 300,000 warrants were issued with a term of five years vesting 100,000 upon the grant date (October 1, 2014), 100,000 on October 1, 2015 and 100,000 on October 1, 2016. The exercise price of the warrant is $0.30 per share based on the volume weighted average price of the Company’s common stock for the five days prior to the grant date.
	Support and Service Agreement
	Effective April 1, 2013 the Company entered into a Support and Service Agreement (“the Agreement”) with Rolyn Companies, Inc. (“Rolyn”) under the terms of which Rolyn will provide labor and services support. The Agreement called for payment to Rolyn of 76,666 shares of the Company’s common stock per month as well as payment of out of pocket expenses. This agreement was amended, effective January 1, 2014, to reduce the payment to Rolyn to 25,000 shares of the Company’s common stock per month. All other terms and conditions of the agreement remained the same. Either party can terminate the Agreement within 30 days written notice. The Company has recorded approximately $75,000 and $203,000 support and service expense for the year ended December 31, 2014 and 2013, respectively. Certain officers of Rolyn were appointed officers of the Company in June and July 2013 and have since resigned. The service agreement was terminated effective October 7, 2014.
	Distribution and Licensing Agreement
	On March 21, 2014, the Company entered into a distribution and licensing agreement with Plascencia Universal, S. de R.L. de C.V. (“Plascencia Universal”), a Mexican company that will act as the exclusive distributor of TOMI’s products and services in Mexico. The principal of Plascencia Universal is also the broker for the Company’s insurance policies and was appointed a director of the Company. For the year ended December 31, 2014, revenues of approximately $301,000 were recognized with regards to Plascencia Universal. Included in the revenue was a license fee for approximately $26,000.

10_COMMITMENTS_AND_CONTINGENCI

10. COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 10. COMMITMENTS AND CONTINGENCIES	Lease Commitments
	The Company leased 1,611 square feet of office/warehouse space in San Diego, CA for research and development purposes. The lease payments amounted to approximately $2,000 per month. This lease expired in May of 2014 and the Company continued to rent the space on a month-to-month basis. The Company vacated the office/warehouse in July of 2014 and has moved the lab to its new facility in Fredrick, Maryland.
	In September of 2014 the Company entered into a lease agreement for office and warehouse space in Fredrick Maryland. As part of the lease agreement, the Company is to receive a rent holiday in the first 5 months of the lease. The lease also provides for an escalation clause where the Company will be subject to an annual rent increase of 3%, year over year. The lease expires on January 31, 2018. The Company accounts for the lease using the straight line method and recorded $15,236 in rent expense for the year ended December 31, 2014. Approximate minimum annual rents under lease are as follows:
	Year Ending December 31,	Amount
	2015	$42,000
	2016	52,000
	2017	53,000
	2018	4,000
		$151,000

11_CONTRACTS_AND_AGREEMENTS

11. CONTRACTS AND AGREEMENTS	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
11. CONTRACTS AND AGREEMENTS	In September 2014, the Company entered into a Sales and Distribution Agreement, superseding previous agreements, with TOMI Panama covering Panama, El Salvador, Guatemala, Nicaragua, Columbia, Honduras, Costa Rica and Ecuador.  TOMI Panama is its exclusive distributor of the Company’s products and services within the country of Panama.  For the year ended December 31, 2014, revenues of approximately $400,000 were recognized with regards to TOMI Panama.
	On September 25, 2014, the Company appointed Norris Gearhart as Principal Operating Officer of the Company and entered into an employment agreement with him.  The agreement provides for a base salary of $126,000 per year and bonus in the form of 100,000 shares of the Company’s restricted stock valued at $29,000.  The restricted shares were issued in October of 2014.
	On October 15, 2014, the Company entered into a manufacturing and development agreement with RG Group, Inc.  The agreement does not provide for any minimum purchase agreements and is for a term of 2 years. For the year ended December 31, 2014, RG Group, Inc. manufactured substantially all of the Company’s equipment.

12_INCOME_TAXES

12. INCOME TAXES	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
Note 12. INCOME TAXES	At December 31, 2014 the Company had available net-operating loss carryforwards for federal income tax purposes of approximately $7,516,000, which may be applied against future taxable income, if any, from 2015 through 2034. Certain significant changes in ownership of the Company may restrict the utilization of these tax loss carryforwards.
	At December 31, 2014 the Company had a deferred tax asset of approximately $3,042,000 representing the benefit of its net operating loss carryforwards. The Company has not recognized any tax benefit or tax asset from these loss carryforwards due to the fact that realization of the tax benefit is uncertain and therefore, a valuation allowance equal to 100% of the tax benefit has been applied against the value of any tax assets arising from these losses. The difference between the federal statutory tax rate of 34% and the Company’s effective tax rate of 0% is due to an increase in the valuation allowance and various permanent differences in the amount of approximately $855,000

13_COMMON_STOCK_TO_BE_ISSUED

13. COMMON STOCK TO BE ISSUED	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
13. COMMON STOCK TO BE ISSUED	As of December 31, 2014, the Company was obligated to issue 155,619 shares of common stock valued at approximately $36,000 primarily to certain vendors and consultants.
	As of December 31, 2013, the Company was obligated to issue 322,845 shares of common stock valued at approximately $151,000 primarily to certain vendors and consultants.

14_SUBSEQUENT_EVENTS

14. SUBSEQUENT EVENTS	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
NOTE 14. SUBSEQUENT EVENTS	The Company has evaluated subsequent events through the date the financial statements were issued and up to the time of filing of the financial statements with the Securities and Exchange Commission.
	In January 2015, as per the Company’s directors’ compensation plan adopted on September 18, 2009, the Company granted 40,000 stock options to two directors. The options have an exercise price of $0.27 per share and expire January 2, 2025.
	During the first quarter of 2015, the Company sold 1,500,002 equity units, each unit consisting of 1 share of common stock and 2.5 warrants for gross proceeds of $435,000.  Expenses in connection with the sale of these equity units was approximately $56,500.
	On January 31, 2015, the Company made its bi-annual interest payment in connection with the convertible notes in the amount of $253,700.

2_SUMMARY_OF_SIGNIFICANT_ACCOU1

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2014
Summary Of Significant Accounting Policies Policies
Going Concern	The Company incurred losses from operations of approximately $3,810,000 and $1,448,000 for the years ended December 31, 2014 and 2013, respectively. In addition, the Company had a working capital deficiency of approximately $1,826,000 at December 31, 2014. Cash and cash equivalents was approximately $161,000 as of December 31, 2014. In addition, the Company has not been able to generate positive cash from operations for the years ended December 31, 2014 and 2013. These factors raise substantial doubt about the Company's ability to continue as a going concern.
	The Company plans on funding operations and liquidity needs from the sales of its products and services, licensing arrangements, debt financing and/or sales of its common stock and notes convertible into common stock. There can be no assurance that additional funds required for continued operations during the next year or thereafter will be generated from our operations.
	Should the Company seek additional funds from external sources such as debt or additional equity financings or other potential sources, there can be no assurance that such funds will be available on terms acceptable to the Company or that they will not have a significant dilutive effect on the Company's existing stockholders. The inability to generate cash flow from operations or to raise sufficient capital from external sources would force the Company to substantially curtail or cease operations and would, therefore, have a material adverse effect on its business.
	During the year ended December 31, 2014 the Company raised gross proceeds of $765,262 through the sale of 2,668,021 shares of common stock and equity units (see note 8 for additional details).
	Accordingly, the Company's existence is dependent on management's ability to develop profitable operations and resolve its liquidity problems. The accompanying consolidated financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.
Principles of Consolidation	The accompanying consolidated financial statements include the accounts of TOMI Environmental Solutions, Inc. (a Florida Corporation) (TOMI-Florida), and its wholly-owned subsidiary, TOMI Environmental Solutions, Inc. (a Nevada Corporation) (TOMI-Nevada). The Company’s 55% owned subsidiary, TOMI Environmental-China (TOMI-China), has been dormant since its formation in April 2011. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of Estimates	The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the accompanying consolidated financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable, fair values of financial instruments, intangible assets, useful lives of intangible assets and property and equipment, fair values of stock-based awards, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of our assets and liabilities.
Reclassification of Accounts	Certain reclassifications have been made to prior-year comparative financial statements to conform to the current year presentation. These reclassifications had no effect on previously reported results of operations or financial position.
Fair Value Measurements	The authoritative guidance for fair value measurements defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or the most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv)willing to transact. The guidance describes a fair value hierarchy based on the levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:
		Level 1:	Quoted prices in active markets for identical assets or liabilities.
		Level 2:	Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or corroborated by observable market data or substantially the full term of the assets or liabilities.
		Level 3:	Unobservable inputs that are supported by little or no market activity and that are significant to the value of the assets or liabilities.
	The Company’s financial instruments include cash and equivalents, accounts receivable, accounts payable and accrued expenses. All these items were determined to be Level 1 fair value measurements.
	The carrying amounts of cash and equivalents, accounts receivable, accounts payable and accrued expenses, approximated fair value because of the short maturity of these instruments. The recorded value of convertible debt approximates its fair value as the terms and rates approximate market rates (See also Note 6)
Cash and Cash Equivalents	For purposes of the statement of cash flows, cash and cash equivalents includes cash on hand held at financial institutions and other liquid investments with original maturities of three months or less.
Inventories	Inventories are valued at the lower of cost or market using the first-in, first-out (”FIFO”) method. Inventories consist primarily of raw materials and finished goods.
Property and Equipment	We account for property and equipment at cost less accumulated depreciation. We compute depreciation using the straight-line method over the estimated useful lives of the assets, generally three to five years. Depreciation for equipment, furniture and fixtures and vehicles commences once placed in service for its intended use. Leasehold improvements are amortized using the straight-line method over the lives of the respective leases or service lives of the improvements, whichever is shorter.
Deferred Financing Costs	The Company follows authoritative guidance for accounting for financing costs as it relates to convertible debt issuance cost. These costs are deferred and amortized over the term of the debt period or until redemption of the convertible debentures. Amortization of deferred financing costs amounted to approximately $342,000 and $234,000 for the years ended December 31, 2014 and 2013, respectively.
Income taxes	Deferred income tax assets and liabilities are determined based on differences between the financial statement reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws in effect when the differences are expected to reverse. The measurement of deferred income tax assets is reduced, if necessary, by a valuation allowance for any tax benefits, which are, on a more likely than not basis, not expected to be realized; in accordance with ASC guidance for income taxes. Net deferred tax benefits have been fully reserved at December 31, 2014 and 2013. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in the period that such tax rate changes are enacted.
Income (Loss) Per Share	Basic income (loss) per share is computed by dividing the Company’s net income (loss) by the weighted average number of common shares outstanding during the period presented. Diluted loss per share is based on the treasury stock method and includes the effect from potential issuance of common stock such as shares issuable pursuant to the exercise of warrants and conversions of debentures.
	Potentially dilutive securities as of December 31, 2014, consisted of 17,496,552 common shares from convertible debentures, 28,051,408 common shares from outstanding warrants (including 7,611,000 warrants issued in conjunction with the above convertible notes), 60,000 common shares from options and 510,000 common shares from convertible Series A preferred stock.
	Potentially dilutive securities as of December 31, 2013, consisted of 17,496,552 common shares from convertible debentures, 19,325,800 common shares from outstanding warrants (including 7,611,000 warrants issued in conjunction with the above convertible notes), 60,000 common shares from options and 510,000 common shares from convertible Series A preferred stock. Diluted and basic weighted average shares are the same, as potentially dilutive shares are anti-dilutive.
	The following provides a reconciliation of the shares used in calculating the per share amounts for the periods presented:
			For the years
			Ended December 31,
			2014		2013
	Numerator:
	Net Income (Loss)		$	268,435	$	-5,658,312
	Denominator:
	Basic weighted-average shares			81,281,030		77,474,329
	Effect of dilutive securities
	Warrants			28,051,408		-
	Convertible Debt			17,496,552		-
	Options			60,000		-
	Preferred Stock			510,000		-
	Diluted Weighted Average Shares			127,398,990		77,474,329
	Net Income (Loss)
	Basic		$	0	$	-0.07
	Diluted		$	0	$	-0.07
	Note: Warrants, Convertible Debt, Options, and Preferred Stock for the year ended December 31, 2013, are not included in the computation of diluted weighted average shares as such inclusion would be anti-dilutive.
	Loss from Operations Data:
	Loss from Operations		$(3,810,211)	($1,448,173)
	Basic and Diluted Weighted
	Average Shares		81,281,030	77,474,329
	Basic and Diluted Loss per Share		($0.05)	($0.02)
Revenue Recognition	For revenue from services and product sales, the Company recognized revenue in accordance with Staff Accounting Bulletin No. 104, “Revenue Recognition” (SAB No. 104), which superseded Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements” (SAB No. 101). SAB No. 104 requires that four basic criteria must be met before revenue can be recognized: (1) persuasive evidence of an arrangement exists; (2) service has been rendered or delivery has occurred; (3) the selling price is fixed and determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgment regarding the fixed nature of the selling prices of the services rendered or products delivered and the collectability of those amounts. Provisions for discounts to customers, and allowance, and other adjustments will be provided for in the same period the related sales are recorded.
Stock-Based Compensation	The Company accounts for stock-based compensation in accordance with Financial Accounting Standards Board (“FASB”), ASC 718, Compensation- “Stock Compensation.” Under the provisions of FASB ASC 718, stock-based compensation cost is estimated at the grant date based on the award’s fair value and is recognized as expense over the requisite service period. The Company currently has one active stock-based compensation plan, TOMI Environmental Solutions, Inc. Stock Option and Restricted Stock Plan (the “Plan”). The Plan calls for the Company, through a committee of its Board of Directors, to issue up to 2,500,000 shares of restricted common stock or stock options. The Company generally issues grants to its employees, consultants, and board members. Stock options are granted with an exercise price equal to the closing price of its common stock on the date of the grant with a term no greater than 10 years. Generally, stock options vest over two to four years. Incentive stock options granted to shareholders who own 10% or more of the Company’s outstanding equity securities are granted at an exercise price that may not be less than 110% of the closing price of the Company’s common stock on the date of grant and have a term no greater than five years. On the date of a grant, the Company determines the fair value of the stock option award and recognizes compensation expense over the requisite service period, which is generally the vesting period of the award. The fair value of the stock option award is calculated using the Black-Scholes option-pricing model. As of December 31, 2014, the Company had 712,291 shares available to be issued under the Plan.
	On February 11, 2014, the Company’s Board of Directors adopted the 2014 Stock Option Plan (the “Plan”), subject to shareholder approval, intended to attract and retain individuals of experience and ability, to provide incentive to our employees, consultants, and non-employee directors, to encourage employee and director proprietary interests in us, and to encourage employees to remain in our employ. Each of the named executive officers is eligible for annual equity awards, which are granted pursuant to the Plan. The Plan authorizes the grant of non-qualified and incentive stock options, stock appreciation rights and restricted stock awards (each, an “Award”). A maximum of 5,000,000 shares of common stock are reserved for potential issuance pursuant to Awards under the Plan. As of December 31, 2014, no shares have been issued under the 2014 Stock Option Plan.
Concentrations of Credit Risk	Financial instruments that potentially subject the Company to significant concentrations of credit risk consist principally of cash and cash equivalents. The Company maintains cash balances at financial institutions which exceed the current Federal Deposit Insurance Corporation (“FDIC”) limit of $250,000 at times during the year.
Long-Lived Assets Including Acquired Intangible Assets	The Company assesseslong-lived assets for potential impairments at the end of each year, or during the year if an event or other circumstance indicates that we may not be able to recover the carrying amount of the asset. In evaluating long-lived assets for impairment, the Company measures recoverability of these assets by comparing the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If the Company’s long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value.The Company bases its calculations of the estimated fair value of its long-lived assets on the income approach. For the income approach, The Company usesan internally developed discounted cash flow model that include, among others, the following assumptions: projections of revenues and expenses and related cash flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount rates. We base these assumptions on our historical data and experience, industry projections, micro and macro general economic condition projections, and our expectations.
	We have had no long-lived asset impairment charges for the years ended December 31, 2014 and 2013. The Company’s most recent detailed test disclosed an estimated fair value of its patents and trademarks that exceeded its’ respective carrying amount based on our model and assumptions.
Advertising and Promotional Expenses	The Company expenses advertising costs in the period in which they are incurred. For the year ended December 31, 2014 and 2013, advertising and promotional expenses were approximately $11,000 and $6,000, respectively.
Recent Accounting Pronouncements	In May of 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) “Revenue from Contracts with Customers.” ASU 2014-09 supersedes the revenue recognition requirements in “Revenue Recognition (Topic 605)”, and requires entities to recognize revenue when it transfers promised goods or services to customers in an amount that reflect the consideration to which the entity expects to be entitled to in exchange for those goods or services. ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. We are currently in the process of evaluating the impact of the adoption of ASU 2014-09 on our consolidated financial statements.

2_SUMMARY_OF_SIGNIFICANT_ACCOU2

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2014
Summary Of Significant Accounting Policies Tables
Schedule of earning per share		For the years
		Ended December 31,
		2014		2013
	Numerator:
	Net Income (Loss)	$	268,435	$	-5,658,312
	Denominator:
	Basic weighted-average shares		81,281,030		77,474,329
	Effect of dilutive securities
	Warrants		28,051,408		-
	Convertible Debt		17,496,552		-
	Options		60,000		-
	Preferred Stock		510,000		-
	Diluted Weighted Average Shares		127,398,990		77,474,329
	Net Income (Loss)
	Basic	$	0	$	-0.07
	Diluted	$	0	$	-0.07
Schedule of weighted average shares	Loss from Operations Data:
	Loss from Operations	$(3,810,211)	($1,448,173)
	Basic and Diluted Weighted
	Average Shares	81,281,030	77,474,329
	Basic and Diluted Loss per Share	($0.05)	($0.02)

3_INVENTORIES_Tables

3. INVENTORIES (Tables)	12 Months Ended
	Dec. 31, 2014
Inventory Disclosure [Abstract]
INVENTORIES	Inventories consist of the following:
		December 31,		December 31,
		2014		2013
	Raw materials	$	159,807	$	1,500
	Finished goods	613,026		406,049
	Inventory, end of period	$	772,833	$	407,549

4_PROPERTY_AND_EQUIPMENT_Table

4. PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2014
Property And Equipment Tables
PROPERTY AND EQUIPMENT		December 31,	December 31,
		2014	2013
	Furniture and fixture	$                  69,555	$                   22,390
	Equipment	374,620	217,672
	Vehicles	44,344	44,344
	Software	12,167	-
	Leasehold Improvements	8,630	-
		509,316	284,406
	Less: Accumulated depreciation	221,157	120,338
		$                288,159	$                 164,068

5_INTANGIBLE_ASSETS_AND_ASSET_1

5. INTANGIBLE ASSETS AND ASSET ACQUISITION (Tables)	12 Months Ended
	Dec. 31, 2014
Intangible Assets And Asset Acquisition Tables
Final purchase price	Purchase Price
	Cash payment	$	3,500,000
	Warranty expense		10,000
	Total purchase price	$	3,510,000
	Assets Purchased
	Inventory	$	71,700
	Fixed assets		150,000
	Patents		2,848,300
	Trademarks		440,000
	Total Assets Acquired	$	3,510,000
Definite life intangible assets			December 31,	December 31,
			2014	2013
	Intellectual property and patents		$      2,848,300	$      2,848,300
	Less: Accumulated Amortization	631,244	261,736
	Intangible Assets, net		$      2,217,056	$      2,586,564
Indefinite life intangible assets			December 31,	December 31,
			2014	2013
	Trademarks		$         440,000	$          440,000
			December 31,	December 31,
			2014	2013
	Total Intangible Assets		$      2,657,056	$          3,026,564
Approximate amortization over the next five years	Approximate amortization over the next five years is as follows:
	Year Ending December 31,		Amount
	2015		$370,000
	2016		370,000
	2017		370,000
	2018		370,000
	2019		370,000
	Thereafter		367,000
			$2,217,000

6_CONVERTIBLE_DEBT_Tables

6. CONVERTIBLE DEBT (Tables)	12 Months Ended
	Dec. 31, 2014
Convertible Debt Tables
Convertible Notes and Warrants potential future financing and fundamental transactions			December 31,		December 31,
			2014		2013	Inception
	Closing stock price		$              0.27		$              0.42	0.13-0.55
	Conversion price		$              0.29		$              0.29	0.29
	Expected volatility		114%		175%	185%-190%
	Remaining term (years)		0.58		1.58	2.30-2.07
	Risk-free rate		0.13%		0.28%	.25%-.43%
	Expected dividend yield		0%		0%	0%
	Warrant
			Inception
	Closing stock price		0.13-0.55
	Conversion price		0.3
	Expected volatility		250%
	Remaining term (years)		5.30-5.09
	Risk-free rate		.76% - (1.61%)
	Expected dividend yield		0%
Convertible notes			December 31,		December 31,
			2014		2013
	Convertible notes	$	5,074,000	$	5,074,000
	Initial Discount on convertible notes		-5,074,000		(5,074,000)
	Accumulated amortization of discount		1,077,967		70,442
	Total convertible notes, net	$	1,077,967	$	70,442

7_FAIR_VALUE_Tables

7. FAIR VALUE (Tables)	12 Months Ended
	Dec. 31, 2014
Fair Value Tables
Fair Value Measurements and Disclosures	December 31, 2014:		Level 3		Total
	Derivative Instruments	$	1,728,883	$	1,728,883
	December 31, 2013:		Level 3		Total
	Derivative Instruments	$	7,665,502	$	7,665,502
Financial instruments			December 31,			December 31,
			2014			2013
	Beginning Balance	$	7,665,502		$	7,316,092
	Change in fair value	-5,936,619		349,410
	Ending Balance	$	1,728,883		$	7,665,502

8_STOCKHOLDERS_EQUITY_DEFICIEN1

8. STOCKHOLDERS' EQUITY (DEFICIENCY) (Tables)	12 Months Ended
	Dec. 31, 2014
Options [Member]
Options outstanding and exercisable by price range								Average		Exercisable Options
								Weighted
	Range				Number			Remaining		Number		Weighted
								Contractual				Average
								Life in Years				Exercise Price
	$	2.1				40,000			5.01		40,000	$	2.1
	$	0.05				20,000			6.02		20,000	$	0.05
						60,000					60,000
Warrant [Member]
Summary of stock options outstanding			31-Dec-14				31-Dec-13
			Number of Warrants		Weighted Average Exercise Price		Number of Warrants	Weighted Average Exercise Price
	Outstanding, beginning of year		60,000		$1.42		60,000	$1.42
	Granted		20,000		0.44		20,000	0.15
	Exercised		-20,000		0.44		-20,000	0.15
	Outstanding, end of year		60,000		$1.42		60,000	$1.42
Summary of outstanding common stock warrants			31-Dec-14				31-Dec-13
			Number of Warrants		Weighted Average Exercise Price		Number of Warrants	Weighted Average Exercise Price
	Outstanding, beginning of year		19,325,800		$0.21		10,050,000	$0.12
	Granted		15,325,608		0.3		9,275,800	0.31
	Expired		-300,000		0.77		-	-
	Expired		-6,300,000		0.3		-	-
	Exercised		-		-		-	-
	Outstanding, end of year		28,051,408		$0.23		19,325,800	$0.21
Warrants outstanding and exercisable by price range	Outstanding Warrants			Exercisable Warrants
	Range	Number	Average	Number	Weighted
			Weighted		Average
			Remaining		Exercise Price
			Contractual
			Life in Years
	$0.01	1,575,000	2.53	1,575,000	$0.01
	$0.05	975,000	2.62	975,000	$0.05
	$0.15	7,750,000	2.8	7,750,000	$0.15
	$0.26	100,000	3.49	100,000	$0.26
	$0.29	5,725,608	4.67	5,725,608	$0.29
	$0.30	11,925,800	3.75	9,725,800	$0.30
		28,051,408		25,851,408
Unvested warrants outstanding	Unvested Warrants
	Weighted	Number	Average
	Average		Weighted
	Exercise Price		Remaining
			Contractual
			Life in Years
	$0.30	2,200,000	4.2

10_COMMITMENTS_AND_CONTINGENCI1

10. COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2014
Notes to Financial Statements
Minimum annual rents	Year Ending December 31,	Amount
	2015	$42,000
	2016	52,000
	2017	53,000
	2018	4,000
		$151,000

2_SUMMARY_OF_SIGNIFICANT_ACCOU3

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Numerator:
Net Income (Loss)	$268,435	($5,658,312)
Denominator:
Basic weighted-average shares	81,281,030	77,474,329
Effect of dilutive securities
Warrants	28,051,408
Convertible Debt	17,496,552
Options	60,000
Preferred Stock	510,000
Diluted Weighted Average Shares	127,398,990	77,474,329
Net Income (Loss)
Basic	$0	($0.07)
Diluted	$0	($0.07)

2_SUMMARY_OF_SIGNIFICANT_ACCOU4

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Summary Of Significant Accounting Policies Details 1
Loss from Operations	($3,810,211)	($1,448,173)
Basic and Diluted Weighted Average Shares	81,281,030	77,474,329
Basic and Diluted Loss per Share	($0.05)	($0.02)

2_SUMMARY_OF_SIGNIFICANT_ACCOU5

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Summary Of Significant Accounting Policies Details Narrative
Loss from operation	($3,810,211)	($1,448,173)
Working capital deficiency	1,826,000
Cash and cash equivalents	160,560	706,350	73,424
Proceeds From Sale of Common Stock and equity units	765,262	1,041,099
Sale of Common Stock and equity units	2,668,021
Amortization of deferred financing cost	342,000	234,000
Advertising and promotional expenses	11,000	6,000
Potentially dilutive securities, convertible debentures	17,496,552	17,496,552
Potentially dilutive securities, outstanding warrants	28,051,408	19,325,800
Warrants issued in conjunction with the above convertible notes	7,611,000	7,611,000
Potentially dilutive securities, outstanding options	60,000	60,000
Potentially dilutive securities, convertible Series A preferred stock	510,000	510,000
Common shares available to be issued under the "Plan"	712,291
FDIC Expense	$250,000

3_INVENTORIES_Details

3. INVENTORIES (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Inventory Disclosure [Abstract]
Raw materials	$159,807	$1,500
Finished goods	613,026	406,049
Inventory, end of period	$772,833	$407,549

4_PROPERTY_AND_EQUIPMENT_Detai

4. PROPERTY AND EQUIPMENT (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Property And Equipment Details
Furniture and fixtures	$69,555	$22,390
Equipment	374,620	217,672
Vehicles	44,344	44,344
Software	12,167
Leasehold Improvements	8,630
Property and Equipment Gross	509,316	284,406
Less: Accumulated depreciation	221,157	120,338
Property and Equipment Net	$288,159	$164,068

4_PROPERTY_AND_EQUIPMENT_Detai1

4. PROPERTY AND EQUIPMENT (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Property And Equipment Details Narrative
Depreciation	$100,819	$56,529

5_INTANGIBLE_ASSETS_AND_ASSET_2

5. INTANGIBLE ASSETS AND ASSET ACQUISITION (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Purchase Price
Cash payment	$3,500,000
Warranty expense	10,000
Total purchase price	3,510,000
Assets Purchased
Inventory	71,700
Fixed assets	150,000
Patents	2,848,300
Trademarks	440,000	440,000
Total Assets Acquired	$3,510,000

5_INTANGIBLE_ASSETS_AND_ASSET_3

5. INTANGIBLE ASSETS AND ASSET ACQUISITION (Details 1) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Intangible Assets And Asset Acquisition Details 1
Intellectual property and patents	$2,848,300	$2,848,300
Less: Accumulated Amortization	631,244	261,736
Intangible Assets, net	$2,217,056	$2,586,564

5_INTANGIBLE_ASSETS_AND_ASSET_4

5. INTANGIBLE ASSETS AND ASSET ACQUISITION (Details 2) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Intangible Assets And Asset Acquisition Details 2
Trademarks	$440,000	$440,000
Total Intangible Assets	$2,657,056	$3,026,564

5_INTANGIBLE_ASSETS_AND_ASSET_5

5. INTANGIBLE ASSETS AND ASSET ACQUISITION (Details 3) (USD $)	Dec. 31, 2014
Intangible Assets And Asset Acquisition Details 3
2015	$370,000
2016	370,000
2017	370,000
2018	370,000
2019	370,000
Thereafter	367,000
Total	$2,217,000

5_INTANGIBLE_ASSETS_AND_ASSET_6

5. INTANGIBLE ASSETS AND ASSET ACQUISITION (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
INTANGIBLE ASSETS
Estimated useful lives of intangible assets	7 years 8 months 12 days
Amortization expense	$369,508	$261,736

6_CONVERTIBLE_DEBT_Details

6. CONVERTIBLE DEBT (Details) (USD $)	12 Months Ended		21 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2014	Apr. 12, 2013
Convertible Notes [Member]
Closing stock price	$0.27	$0.42	$0.27
Conversion price	$0.29	$0.29	$0.29	$0.29
Expected volatility	114.00%	175.00%	114.00%
Remaining term (years)	6 months 29 days	1 year 6 months 29 days
Risk-free rate	0.13%	0.28%	0.13%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Convertible Notes [Member] | Minimum [Member]
Closing stock price				$0.13
Expected volatility				185.00%
Remaining term (years)			2 years 3 months 18 days
Risk-free rate				0.25%
Convertible Notes [Member] | Maximum [Member]
Closing stock price				$0.55
Expected volatility				190.00%
Remaining term (years)			2 years 26 days
Risk-free rate				0.43%
Warrant 1 [Member]
Conversion price				$0.30
Expected volatility				250.00%
Expected dividend yield				0.00%
Warrant 1 [Member] | Minimum [Member]
Closing stock price				$0.13
Remaining term (years)			5 years 3 months 18 days
Risk-free rate				0.76%
Warrant 1 [Member] | Maximum [Member]
Closing stock price				$0.55
Remaining term (years)			5 years 1 month 2 days
Risk-free rate				-1.61%

6_CONVERTIBLE_DEBT_Details_1

6. CONVERTIBLE DEBT (Details 1) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Convertible Debt Details 1
Convertible notes	$5,074,000	$5,074,000
Initial discount on convertible notes	-5,074,000	-5,074,000
Accumulated amortization of discount	1,077,967	70,442
Total convertible notes	$1,077,967	$70,442

6_CONVERTIBLE_DEBT_Details_Nar

6. CONVERTIBLE DEBT (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Convertible Debt Details Narrative
Warrants issued	7,611,000
Proceeds with convertible debt	$5,074,000
Net proceeds amount of convertible debt	4,462,693
Total offering expenses	611,307
Agent received warrants	1,014,800
Agent received warrants value	165,180
Fair value of the embedded conversion feature derivative liability		7,316,092
Additional discount on convertible notes	956,712	4,117,288
Finance charge		$3,198,804

7_FAIR_VALUE_Details

7. FAIR VALUE (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Derivative Instruments	$1,728,883	$7,665,502
Level 3
Derivative Instruments	$1,728,883	$7,665,502

7_FAIR_VALUE_Details_1

7. FAIR VALUE (Details 1) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Fair Value Details 1
Beginning Balance	$7,665,502	$7,316,092
Change in fair value	-5,936,619	349,410
Ending Balance	$1,728,883	$7,665,502

8_STOCKHOLDERS_EQUITY_DEFICIEN2

8. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details) (Warrant [Member], USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Warrant [Member]
Number of Warrants
Outstanding, beginning of year	60,000	60,000
Granted	20,000	20,000
Exercised	-20,000	-20,000
Outstanding, end of year	60,000	60,000
Weighted Average Exercise Price
Outstanding, beginning of year	$1.42	$1.42
Granted	$0.44	$0.15
Exercised	$0.44	$0.15
Outstanding, end of year	$1.42	$1.42

8_STOCKHOLDERS_EQUITY_DEFICIEN3

8. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2014
2.10 Range [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Number	40,000
Average Weighted Remaining Contractual Life in Years	5 years 4 days
Exercisable Options, Number	40,000
Weighted Average Exercise Price, Exercisable Options	$2.10
0.05 Range [Member]
Schedule of Trading Securities and Other Trading Assets [Line Items]
Number	20,000
Average Weighted Remaining Contractual Life in Years	6 years 7 days
Exercisable Options, Number	20,000
Weighted Average Exercise Price, Exercisable Options	$0.05
Option Member
Schedule of Trading Securities and Other Trading Assets [Line Items]
Number	60,000
Exercisable Options, Number	60,000

8_STOCKHOLDERS_EQUITY_DEFICIEN4

8. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details 2) (Common Stock Warrant [Member], USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Common Stock Warrant [Member]
Number of Warrants
Outstanding, beginning of year	19,325,800	10,050,000
Granted	15,325,608	9,275,800
Expired	-300,000	0
Expired	-6,300,000	0
Exercised	0	0
Outstanding, end of year	28,051,408	19,325,800
Weighted Average Exercise Price
Outstanding, beginning of year	$0.21	$0.12
Granted	$0.30	$0.31
Expired	$0.77	$0
Expired	$0.30	$0
Exercised	$0	$0
Outstanding, end of year	$0.23	$0.21

8_STOCKHOLDERS_EQUITY_DEFICIEN5

8. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details 3) (USD $)	12 Months Ended
	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding warrants, Number	28,051,408
Exercisable Warrants, Number	25,851,408
0.01 Range [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding warrants, Number	1,575,000
Average Weighted Remaining Contractual Life in Years, Warrant	2 years 6 months 11 days
Exercisable Warrants, Number	1,575,000
Weighted Average Exercise Price, Exercisable Warrants	$0.01
0.05 Range [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding warrants, Number	975,000
Average Weighted Remaining Contractual Life in Years, Warrant	2 years 7 months 13 days
Exercisable Warrants, Number	975,000
Weighted Average Exercise Price, Exercisable Warrants	$0.05
0.15 Range [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding warrants, Number	7,750,000
Average Weighted Remaining Contractual Life in Years, Warrant	2 years 9 months 18 days
Exercisable Warrants, Number	7,750,000
Weighted Average Exercise Price, Exercisable Warrants	$0.15
0.261 Range [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding warrants, Number	100,000
Average Weighted Remaining Contractual Life in Years, Warrant	3 years 5 months 27 days
Exercisable Warrants, Number	100,000
Weighted Average Exercise Price, Exercisable Warrants	$0.26
0.29 Range [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding warrants, Number	5,725,608
Average Weighted Remaining Contractual Life in Years, Warrant	4 years 8 months 1 day
Exercisable Warrants, Number	5,725,608
Weighted Average Exercise Price, Exercisable Warrants	$0.29
0.30 Range [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding warrants, Number	11,925,800
Average Weighted Remaining Contractual Life in Years, Warrant	3 years 9 months
Exercisable Warrants, Number	9,725,800
Weighted Average Exercise Price, Exercisable Warrants	$0.30

8_STOCKHOLDERS_EQUITY_DEFICIEN6

8. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details 4) (Unvested Warrants [Member], USD $)	12 Months Ended
	Dec. 31, 2014
Unvested Warrants [Member]
Weighted Average Exercise Price, Unvested Warrants	$0.30
Unvested Warrants, Number	2,200,000
Average Weighted Remaining Contractual Life in Years, Unvested Warrants	4 years 2 months 12 days

8_STOCKHOLDERS_EQUITY_DEFICIEN7

8. STOCKHOLDERS' EQUITY (DEFICIENCY) (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Cumulative Convertible Preferred Stock Series A, Par Value	$0.01	$0.01
Cumulative Convertible Preferred Stock Series A, Shares Authorized	1,000,000	1,000,000
Cumulative Convertible Preferred Stock Series A, Shares Issued	510,000	510,000
Cumulative Convertible Preferred Stock Series A, Shares Outstanding	510,000	510,000
Convertible Preferred Stock Series B, Stated Value	$1,000	$1,000
Convertible Preferred Stock Series B, Shares Authorized	4,000	4,000
Convertible Preferred Stock Series B, Shares Issued	0	0
Convertible Preferred Stock Series B, Shares Outstanding	0	0
Convertible Preferred Stock, Dividend Percentage	7.50%	7.50%
Common stock issued, shares		977,028
Common stock issued, value		$480,754
Issuance of common stock as finder's fee, Shares	11,332
Cash Finder's Fee Accrual	3,060
Value of common stock to be issued as finder's fee	-19,925
Payments of Accrued Finder's Fee	66,347	30,000
Finder's fee to be paid in common stock, Shares	68,707
Warrants issued		7,611,000
Warrants to agent		1,014,800
Exercise price	$0.30
Common Stock Issuance for Services, Amount		3,414,604
Common Stock Issuance for Services, Shares		1,011,100
Common stock sold	377,778
Common stock sold, amount	102,000
Equity units sold	2,290,243
Exercise price of warrant	$0.29
Term of warrant	5 years
Gross proceeds net of expenses	663,262
Common stock issued for professional and other services, Shares	326,035
Common stock issued for professional and other services, Amount	105,893
Common stock issued for legal services, Shares	44,319
Common stock issued for legal services, Amount	15,000
Common Stock issued for legal services to Rolyn Companies, Inc., Shares	455,000	230,000
Common Stock issued for legal services to Rolyn Companies, Inc., Amount	203,950	128,800
Compensation expense related to consultant, Amount	25,000
Compensation expense related to consultant, Shares	76,226
Compensation expense related to CEO, Amount	25,000
Compensation expense related to CEO, Shares	78,125
Stock based compensation expense on the vested portion of the warrants	37,000
COO [Member]
Common stock issued, shares	100,000
Common stock issued, value	29,000
Board of Directors [Member]
Stock based compensation expense on the vested portion of the warrants	1,904,000
Stock based compensation expense on the uvested portion of the warrants	596,000
CFO [Member]
Stock based compensation expense on the vested portion of the warrants	$32,000

9_RELATED_PARTY_Details_Narrat

9. RELATED PARTY (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Support and service expense	$75,000	$203,000
Plascencia Universal [Member]
Revenues	301,000
License fees	$26,000

10_COMMITMENTS_AND_CONTINGENCI2

10. COMMITMENTS AND CONTINGENCIES (Details) (USD $)	Dec. 31, 2014
Notes to Financial Statements
2015	$42,000
2016	52,000
2017	53,000
2018	4,000
Total	$151,000

10_COMMITMENTS_AND_CONTINGENCI3

10. COMMITMENTS AND CONTINGENCIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014
Commitments And Contingencies Details Narrative
Rent expense	$15,236

12_INCOME_TAXES_Details_Narrat

12. INCOME TAXES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2014
Income Taxes Details Narrative
Net operating loss carryforwards	$7,516,000
Deferred tax asset	3,042,000
Valuation Allowance, Percentage	100.00%
Federal statutory tax rate	34.00%
Company's effective tax rate	0.00%
Increase in the valuation allowance and various permanent differences	$855,000

13_COMMON_STOCK_TO_BE_ISSUED_D

13. COMMON STOCK TO BE ISSUED (Details Narrative) (USD $)	Dec. 31, 2014	Dec. 31, 2013
Common Stock To Be Issued Details Narrative
Common stock shares issued	155,619	322,845
Common stock value	$36,000	$151,000