Sanara MedTech (SMTI) 10-Q 15 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	15-May-15
DocumentAndEntityInformationAbstract
Entity Registrant Name	WOUND MANAGEMENT TECHNOLOGIES, INC.
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Entity Central Index Key	714256
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding		106,250,829
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

Statement_CONSOLIDATED_BALANCE

Statement - CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
CURRENT ASSETS:
Cash	$341,644	$523,441
Accounts receivable, net of allowance for bad debt of $20,509 and $18,462	262,126	278,261
Inventory, net of allowance for obsolescence of $45,655 and $46,007	345,186	402,530
Royalty receivable	50,250	0
Prepaid and Other Assets	14,377	6,295
Total Current Assets	1,013,583	1,210,527
LONG-TERM ASSETS:
Property plant and equipment, net of accumulated depreciation of $24,607 and $22,477	44,005	45,428
Intangible assets, net of accumulated depreciation of $280,670 and $267,913	229,640	242,397
Total Long-Term Assets	273,645	287,825
TOTAL ASSETS	1,287,228	1,498,352
CURRENT LIABILITIES:
Accounts Payable	294,946	210,266
Accrued royalties and dividends	93,750	324,286
Capital lease obligation	4,504	4,504
Accrued Interest	219,114	181,431
Derivative Liabilities	1,399	1,708
Notes Payable	392,020	392,920
Convertible notes payable	1,200,000	1,200,000
Total Current Liabilities	2,205,733	2,315,115
LONG-TERM LIABILITIES
Capital lease obligation	7,508	8,633
Total Long-Term Liabilities	7,508	8,633
TOTAL LIABILITIES	2,213,241	2,323,748
STOCKHOLDERS' EQUITY (DEFICIT)
Series A Preferred Stock, $10 par value, 5,000,000 shares authorized; none issued and outstanding	0	0
Series B Convertible Preferred Stock, $10 par value, 7,500 shares authorized; none issued and outstanding	0	0
Series C Convertible Preferred Stock, $10 par value, 100,000 shares authorized; 70,054 issued and outstanding as of March 31, 2015 and 70,411 issued and outstanding as of December 31, 2014	700,540	704,110
Series D Convertible Preferred Stock, $10 par value, 25,000 shares authorized; none issued and outstanding	0	0
Series E Convertible Preferred Stock, $10 par value, 5,000 shares authorized; none issued and outstanding	0	0
Common Stock: $.001 par value; 250,000,000 shares authorized; 106,254,918 issued and 106,250,829 outstanding as of March 31, 2015 and 105,447,320 issued and 105,443,231 outstanding as of December 31, 2014	106,254	105,447
Additional Paid-in Capital	43,856,178	43,820,636
Treasury Stock	-12,039	-12,039
Accumulated Deficit	-45,576,946	-45,443,550
Total Stockholders' Deficit	-926,013	-825,396
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$1,287,228	$1,498,352

Statement_CONSOLIDATED_BALANCE1

Statement - CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Accounts receivable, net of allowance for bad debt	$20,509	$18,462
Inventory, net of allowance for obsolescence	45,655	46,007
Property plant and equipment accumulated amortization	24,607	22,477
Intangible asset accumulated amortization	$280,670	$267,913
Preferred Stock, par value	$10	$10
Common Stock, par value	$0.00	$0.00
Common Stock, shares authorized	250,000,000	250,000,000
Common Stock, shares issued	106,254,918	105,447,320
Common Stock, shares outstanding	106,250,829	105,443,231
Series A Preferred Stock [Member]
Preferred Stock, shares authorized	5,000,000	5,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Series B Preferred Stock [Member]
Preferred Stock, shares authorized	7,500	7,500
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Series C Preferred Stock [Member]
Preferred Stock, shares authorized	100,000	100,000
Preferred Stock, shares issued	70,054	70,411
Preferred Stock, shares outstanding	70,054	70,411
Series D Preferred Stock [Member]
Preferred Stock, shares authorized	25,000	25,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Series E Preferred Stock [Member]
Preferred Stock, shares authorized	5,000	5,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues [Abstract]
REVENUES	$1,013,987	$682,294
COST OF GOODS SOLD	217,086	168,723
GROSS PROFIT	796,901	513,571
OPERATING EXPENSES:
General and Administrative Expenses	878,043	913,234
Depreciation and amortization	14,889	13,975
LOSS FROM OPERATIONS	-96,031	-413,638
OTHER INCOME (EXPENSES):
Change in fair value of derivative liabilities	309	30,818
Other income	9	0
Interest Expense	-37,683	-163,143
NET LOSS	-133,396	-545,963
Series C preferred stock dividends	-63,478	-50,117
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS	($196,874)	($596,080)
Basic and diluted loss per share of common stock	$0	($0.01)
Weighted average number of common shares outstanding	105,651,948	86,486,298

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities:
Net loss	($133,396)	($545,963)
Adjustments to reconcile net loss to net cash used in Operating activities:
Depreciation and amortization	14,889	13,975
Amortization of discounts and deferred financing costs	0	127,135
Bad debt expense	2,047	10,970
Inventory obsolescence	132	188
Series D preferred shares issued for services	0	74,234
Common stock issued for services	32,779	129,443
(Gain) loss on fair market value of derivative liabilities	-309	-30,818
Changes in assets and liabilities:
(Increase) decrease in accounts receivable	-36,162	-31,979
(Increase) decrease in inventory	57,212	-76,276
(Increase) decrease in employee advances	0	1,980
(Increase) decrease in prepaids and other assets	-8,082	-275,067
Increase (decrease) in accrued royalties and dividends	-230,536	-281,250
Increase (decrease) in accounts payable	84,679	170,686
Increase (decrease) in accrued liabilities	0	926
Increase (decrease) in accrued interest payable	37,683	28,896
Net cash flows used in operating activities	-179,064	-682,920
Cash flows from investing activities:
Purchase of property and equipment	-708	-4,089
Net cash flows used in investing activities	-708	-4,089
Cash flows from financing activities:
Payments made on capital lease obligation	-1,125	0
Payments on debt	-900	-20,900
Payments on convertible debt	0	-44,900
Cash proceeds from sale of series C preferred stock	0	2,072,010
Net cash flows provided by financing activities	-2,025	2,006,210
Net increase (decrease) in cash	-181,797	1,319,201
Cash and cash equivalents, beginning of period	523,441	45,553
Cash and cash equivalents, end of period	341,644	1,364,754
Cash paid during the period for:
Interest	0	7,112
Income Taxes	0	0
Supplemental non-cash investing and financing activities:
Common stock issued for conversion of debt and interest	0	93,729
Common stock issued for Series C dividends	1,036	0
Common stock issued for conversion of Series C Preferred Stock	3,570	0
Issuance of vested common stock	333	0
Resolution of warrant derivative liabilities due to removal of convertible debt	0	918,580
Resolution of derivative liabilities due to removal of convertible debt	0	132,417
Debt discounts due to derivative liabilities	$0	$90,000

1_SUMMARY_OF_SIGNIFICANT_ACCOU

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Basis of Presentation
	The terms “WMT,” “we,” “the Company,” and “us” as used in this report refer to Wound Management Technologies, Inc.  The accompanying unaudited consolidated balance sheet as of March 31, 2015 and unaudited consolidated statements of operations for the three months ended March 31, 2015 and 2014 have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.  In the opinion of management of WMT, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the three month period ended March 31, 2015, are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or any other period.  These financial statements and notes should be read in conjunction with the financial statements for each of the two years ended December 31, 2014, and December 31, 2013, included in the Company’s Annual Report on Form 10-K.  The accompanying consolidated balance sheet as of December 31, 2014, has been derived from the audited financial statements filed in our Form 10-K and is included for comparison purposes in the accompanying balance sheet.  Certain prior year amounts have been reclassified to conform to current year presentation.
	Principles of Consolidation
	The accompanying consolidated financial statements include the accounts of WMT and its wholly-owned subsidiaries:  Wound Care Innovations, LLC a Nevada limited liability company (“WCI”); Resorbable Orthopedic Products, LLC, a Texas limited liability company (“Resorbable); and BioPharma Management Technologies, Inc., a Texas corporation (“BioPharma”). All intercompany accounts and transactions have been eliminated.
	Reclassification
	Certain prior period amounts have been reclassified to conform to current period presentation.
	Fair Value Measurements
	As defined in Accounting Standards Codification (“ASC”) Topic No. 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable.   ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). This fair value measurement framework applies at both initial and subsequent measurement.
	The three levels of the fair value hierarchy defined by ASC Topic No. 820 are as follows:
	Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.
	Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.
	Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.
	At March 31, 2015, the Company’s financial instruments consist of the derivative liabilities related to stock purchase warrants.  The derivative liability on stock purchase warrants was valued using the Black-Scholes Option Pricing Model, a Level 3 input.  The fair value of the conversion features associated with the convertible debt was estimated in accordance with ASC Topic No. 470-20-25-4. The change in fair value of the derivative liabilities is classified in other income (expense) in the statement of operations.
	assets have also been valued using the fair value accounting treatment and a description of the methodology used, including the valuation category, is described in the Company’s Annual Report on Form 10-K.

2_GOING_CONCERN

2. GOING CONCERN	3 Months Ended
	Mar. 31, 2015
Going Concern
GOING CONCERN	The Company has current liabilities in excess of current assets and has a stockholders’ deficiency. The Company has had limited operations and has not been able to develop an ongoing, reliable source of revenue to fund its existence.  The Company’s day-to-day expenses have been covered by proceeds obtained and services paid by the issuance of stock and notes payable.  The adverse effect on the Company’s results of operations due to its lack of capital resources can be expected to continue until such time as the Company is able to generate additional capital from other sources.  These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
	These unaudited interim consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result from the outcome of this uncertainty.  The continuation of the Company as a going concern is dependent upon the success of the Company in obtaining additional funding and the success of its future operations.   The ability of the Company to achieve these objectives cannot be determined at this time.

3_NOTES_PAYABLE

3. NOTES PAYABLE	3 Months Ended
	Mar. 31, 2015
NotePayableAbstract
NOTES PAYABLE	During the three months ended March 31, 2015, the Company paid a total of $900 to Quest Capital as part of the furniture purchase agreement in the original amount of $11,700.

4_STOCKHOLDERS_EQUITY

4. STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
STOCKHOLDERS' EQUITY	Preferred Stock
	There are currently 5,000,000 shares of Series A Preferred Stock authorized, with no shares of Series A Preferred Stock currently issued or outstanding.
	Effective June 24, 2010, the Company filed a Certificate of Designations, Number, Voting Power, Preferences and Rights of Series B Convertible Redeemable Preferred Stock (the “Certificate”) with the Texas Secretary of State, designating 7,500 shares of Series B Preferred Stock, par value $10.00 per share (the “Series B Shares”). The Series B Shares rank senior to shares of all other common and preferred stock with respect to dividends, distributions, and payments upon dissolution.  Each of the Series B Shares is convertible at the option of the holder into shares of common stock as provided in the Certificate.  There are currently no Series B Shares issued or outstanding.
	On October 11, 2013, the Company filed a Certificate of Designations, Number, Voting Power, Preferences and Rights of Series C Convertible Preferred Stock (the “Certificate of Designations”), under which it designated 100,000 shares of Series C Preferred Stock, par value $10.00.  The Series C Preferred Stock is entitled to accruing dividends (payable, at the Company’s options, in either cash or stock) of 5% per annum until October 10, 2016, and 3% per annum until October 10, 2018. The Series C Preferred Stock is senior to the Company’s common stock and any other currently issued series of the Company’s preferred stock upon liquidation, and is entitled to a liquidation preference per share equal to the original issuance price of such shares of Series C Preferred Stock together with the amount of all accrued but unpaid dividends thereon.  Each of the Series C Shares is convertible at the option of the holder into 1,000 shares of common stock as provided in the Certificate.  Additionally, each holder of Series C Preferred Stock shall be entitled to vote on all matters submitted for a vote of the holders of Common Stock a number of votes equal to the number of full shares of Common Stock into which such holder’s Series C shares could then be converted. As of March 31, 2015 and December 31, 2014, there were 70,054 and 70,411 shares of Series C Preferred Stock issued and outstanding, respectively.
	On November 13, 2013, the Company filed a Certificate of Designations, Number, Voting Power, Preferences and Rights of Series D Convertible Preferred Stock (the “Certificate of Designations”), under which it designated 25,000 shares of Series D Preferred Stock.  Shares of Series D Preferred Stock are not entitled to any preference with respect to dividend or upon liquidation, and will automatically convert (at a ratio of 1,000-to-1) into shares of the Company’s common stock, par value $0.001 upon approval of the Company’s stockholders (and filing of) and amendment to the Company’s Certificate of Incorporation increasing the number of authorized shares of Common Stock from 100,000,000 to 250,000,000. As of March 31, 2015 and December 31, 2014, there are no shares of Series D Preferred Stock issued and outstanding.
	On May 30, 2014, the Company filed a Certificate of Designations, Number, Voting Power, Preferences and Rights of Series E Convertible Preferred Stock (The “Certificate of Designations”), under which it designated 5,000 shares of Series E Preferred Stock.  Shares of Series E Preferred Stock are not entitled to any preference with respect to dividends or upon liquidation, and will automatically convert (at a ratio of 1,000 shares of Common Stock for every one share of Series E Preferred Stock) into shares of the Company’s common stock, $0.001 par value upon approval of the Company’s stockholders (and filing of) and amendment to the Company’s Certificate of Incorporation increasing the number of authorized shares of Common Stock from 100,000,000 to 250,000,000. As of March 31, 2015 and December 31, 2014, there are no shares of Series E Preferred Stock issued and outstanding.
	On March 10, 2015, the Company issued 374,264 shares of common stock for the conversion of 357 shares of Series C Preferred stock and $1,036 of related dividends.
	The Series C preferred stock earned dividends of $63,478 and $50,117 for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, no Series C preferred stock dividends have been declared.
	Common Stock
	On September 3, 2014, the Company held its annual meeting of stockholders.  The stockholders approved an amendment to the Company’s Articles of Incorporation to increase the authorized shares of common stock of the Company from 100,000,000 to 250,000,000.
	On March 5, 2015, the Company granted 100,000 shares of common stock which vested immediately valued at $5,970 according to the terms of a service agreement. Under the award, the nonemployee was also granted an aggregate of 800,000 additional shares which vest in tranches of 300,000, 250,000 and 250,000 upon the achievement of certain revenue targets. No expense was recognized for these additional shares during the three months ended March 31, 2015.
	On March 10, 2015, the Company issued 374,264 shares of common stock in conversion of 357 shares of Series C Preferred stock and $1,036 of related dividends.
	During three months ended March 31, 2015, the Company issued 333,334 shares of fully vested common stock under previously granted stock awards.
	During three months ended March 31, 2015, the Company recorded an aggregate of $26,809 of stock-based compensation related to the amortization of stock awards to employees and nonemployees. On March 5, 2015, the Company awarded 100,000 common to a nonemployee for services which vest after 90 days. $2,178 was expensed under this award during the three months ended March 31, 2015 which is included in the stock-based compensation of $26,809 for the period.
	Warrants
	A summary of the status of the warrants granted for the three months ended March 31, 2015, and changes during the period then ended is presented below:
	For the Three Months Ended March 31, 2015
			Shares				Weighted Average Exercise Price
	Outstanding at beginning of period			10,936,844			$	0.23
	Granted			-				-
	Exercised			-				-
	Forfeited			-				-
	Expired			-				-
	Outstanding at end of period			10,936,844			$	0.23
					As of March 31, 2015								As of March 31, 2015
					Warrants Outstanding								Warrants Exercisable
	Range of Exercise Prices				Number Outstanding				Weighted-Average Remaining Contract Life		Weighted- Average Exercise Price		Number Exercisable		Weighted-Average Exercise Price
	$	0.06				4,500,000				3.5	$	0.06		4,500,000	$	0.06
		0.08				550,000				2.9		0.08		550,000		0.08
		0.09				625,000				3		0.09		625,000		0.09
		0.15				1,571,300				2.4		0.15		1,571,300		0.15
		0.25				120,000				0.6		0.25		120,000		0.25
		0.4				300,000				0.3		0.4		300,000		0.4
		0.44				1,515,544				1.4		0.44		1,515,544		0.44
		0.5				370,000				1		0.5		370,000		0.5
		0.6				975,000				1.5		0.6		975,000		0.6
		0.75				120,000				0.6		0.75		120,000		0.75
		1				290,000				1.1		1		290,000		1
	$	0.06-1.00				10,936,844				2.5	$	0.23		10,936,844	$	0.23
	The aggregate intrinsic value of the exercisable warrants as of March 31, 2015 was $9,000.
	Stock Options
	A summary of the status of the stock options granted for the three month period ended March 31, 2015, and changes during the period then ended is presented below:
	For the Three Months Ended March 31, 2015
			Options				Weighted Average Exercise Price
	Outstanding at beginning of period			3,943,500			$	0.15
	Granted			150,000			(a)
	Exercised			-				-
	Forfeited			-				-
	Expired			-				-
	Outstanding at end of Period			4,093,500			$	0.15
					As of March 31, 2015								As of March 31, 2015
					Stock Options Outstanding								Stock Options Exercisable
	Exercise Price				Number Outstanding				Weighted-Average Remaining Contract Life		Weighted- Average Exercise Price		Number Exercisable		Weighted-Average Exercise Price
	$	0.15				3,943,500				2.39		0.15		3,826,833	$	0.15
	(a)					150,000				-		-		-		-
	$	0.15				4,093,500				2.39		0.15		3,826,833	$	0.15
	(a)	On January 1, 2015, the company granted three tranches of options, 25,000, 25,000, and 100,000 which vest upon meeting specific performance measures agreed upon. The measures include achieving three specific sales targets per month for 3 consecutive months. The exercise price and expiration date of each tranche will be set upon achieving the targets. As of the date of this filing the performance measures have not been met.  As a result the exercise price is undetermined and these options are excluded from the calculation of weighted average remaining life.
	The aggregate intrinsic value of the exercisable options as of March 31, 2015 was $0.

5_DERIVATIVE_LIABILITIES

5. DERIVATIVE LIABILITIES	3 Months Ended
	Mar. 31, 2015
DerivativeInstrumentsAndHedgingActivitiesAbstract
DERIVATIVE LIABILITIES	As of December 31, 2013, the Company did not have a sufficient number of common shares authorized to fulfill the possible exercise of all outstanding warrants and the conversion of all convertible notes payable. As a result, the Company determined that the warrants and the embedded conversion features of the outstanding debt instruments did not qualify for equity classification.  Accordingly, the warrants and conversion features were treated as derivative liabilities and were carried at fair value. During the year ended December 31, 2014, all of the outstanding convertible notes that qualified as derivative liabilities were paid in full or converted to common stock.  As of March 31, 2015, only 910,000 warrants remained as derivative liabilities due to the existence of reset provisions that qualify the instruments as derivative liabilities under FASB ASC 815.
	The following table sets forth the fair value hierarchy within our financial assets and liabilities by level that they were accounted for at fair value on a recurring basis as of March 31, 2015 and December 31, 2014.
					Fair Value Measurement at March 31, 2015
	Liabilities:	Carrying Value at March 31, 2015			Level 1		Level 2		Level 3
	Warrant derivative liabilities	$	1,399		$	-	$	-	$	1,399
	Total	$	1,399		$	-	$	-	$	1,399
					Fair Value Measurement at December 31, 2014
	Liabilities:	Carrying Value at December 31, 2014			Level 1		Level 2		Level 3
	Warrant derivative liabilities	$	1,708		$	-	$	-	$	1,708
	Total	$	1,708		$	-	$	-	$	1,708
	The Company estimates the fair value of the derivative warrant liabilities by using the Black-Scholes Option Pricing Model and the derivative liabilities related to the conversion features in the outstanding convertible notes using the lack-Scholes Option Pricing Model assuming maximum value, Level 3 inputs, with the following assumptions used:
	Dividend yield:	0%
	Expected volatility	78% to 237%
	Risk free interest rate	0.13% to 1.07%
	Expected life (years)	0.58 to 2.32
	The following table sets forth the changes in the fair value of derivative liabilities for the three months ended March 31, 2015:
	Balance, December 31, 2014	$	(1,708	)
	Gain on change in fair value of derivative liabilities		309
	Balance, March 31, 2015	$	(1,399	)
	The aggregate gain on derivative liabilities for the three months ended March 31, 2015 was $309.

6_RELATED_PARTY_TRANSACTIONS

6. RELATED PARTY TRANSACTIONS	3 Months Ended
	Mar. 31, 2015
Related Party Transactions
RELATED PARTY TRANSACTIONS	On October 10, 2013 and October 15, 2013, the Company borrowed $1 million and $200,000 under convertible notes bearing interest at 8% per annum from Brookhaven Medical, Inc (“BMI”) where the CEO of BMI is a board member of the Company. The notes may be converted, at the option of BMI, into shares of the Company’s Series C Preferred Stock at a conversion price of $70 per share. The Company’s obligations under the first BMI Note are secured by all the assets of the Company and its subsidiaries. The notes are due on April 15, 2015. As of March 31, 2015 and December 31, 2014, the outstanding balance under the convertible notes to related party was $1,200,000.
	On September 29, 2009, the Company entered into an Asset Purchase Agreement (the “Asset Purchase Agreement”), by and among the Company, RSI-ACQ, LLC, a wholly-owned subsidiary of the Company (RSI), Resorbable Orthopedic Products, LLC (“Resorbable”) and Resorbable’s members, pursuant to which, RSI acquired substantially all of Resorbable’s assets, in exchange for (i) 500,000 shares of the Company’s common stock, and (ii) a royalty equal to eight percent (8%) of the net revenues generated from products sold by the Company or any of its affiliates, which products are developed from or otherwise utilize any of the patented technology acquired from Resorbable.  The royalty is paid to Dr. Barry Constantine whom is an employee and hold the positon of Director of R&D.

7_CAPITAL_LEASE_OBLIGATION

7. CAPITAL LEASE OBLIGATION	3 Months Ended
	Mar. 31, 2015
Capital Lease Obligation
Capital lease obligation	In December 2014, the Company entered into a Capital Lease agreement for the purchase of a phone system. The agreement required a down payment of $2,105 and 36 monthly payments of $375.  The Company recorded an asset of $13,512 and a capital lease obligation of $13,512.  Aggregate payments under the lease were $1,125 for the three months ended March 31, 2015. At March 31, 2015 a total lease liability of $12,012 remained.  Of that, $4,504 will be due in the next 12 months.

8_SUBSEQUENT_EVENTS

8. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	On April 17, 2015, the Company paid $48,000 of accrued interest related to the BMI Convertible notes in the combined principal amount of $1,200,000.

1_SUMMARY_OF_SIGNIFICANT_ACCOU1

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
Accounting Policies [Abstract]
Basis of Presentation	The terms “WMT,” “we,” “the Company,” and “us” as used in this report refer to Wound Management Technologies, Inc.  The accompanying unaudited consolidated balance sheet as of March 31, 2015 and unaudited consolidated statements of operations for the three months ended March 31, 2015 and 2014 have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.  In the opinion of management of WMT, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the three month period ended March 31, 2015, are not necessarily indicative of the results that may be expected for the year ending December 31, 2015, or any other period.  These financial statements and notes should be read in conjunction with the financial statements for each of the two years ended December 31, 2014, and December 31, 2013, included in the Company’s Annual Report on Form 10-K.  The accompanying consolidated balance sheet as of December 31, 2014, has been derived from the audited financial statements filed in our Form 10-K and is included for comparison purposes in the accompanying balance sheet.  Certain prior year amounts have been reclassified to conform to current year presentation.
Principles of Consolidation	The accompanying consolidated financial statements include the accounts of WMT and its wholly-owned subsidiaries:  Wound Care Innovations, LLC a Nevada limited liability company (“WCI”); Resorbable Orthopedic Products, LLC, a Texas limited liability company (“Resorbable); and BioPharma Management Technologies, Inc., a Texas corporation (“BioPharma”). All intercompany accounts and transactions have been eliminated.
Reclassification	Certain prior period amounts have been reclassified to conform to current period presentation.
Fair Value Measurements	As defined in Accounting Standards Codification (“ASC”) Topic No. 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market corroborated, or generally unobservable.   ASC 820 establishes a fair value hierarchy that prioritizes the inputs used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurement). This fair value measurement framework applies at both initial and subsequent measurement.
	The three levels of the fair value hierarchy defined by ASC Topic No. 820 are as follows:
	Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reporting date. Active markets are those in which transactions for the asset or liability occur in sufficient frequency and volume to provide pricing information on an ongoing basis. Level 1 primarily consists of financial instruments such as exchange-traded derivatives, marketable securities and listed equities.
	Level 2 – Pricing inputs are other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reported date. Level 2 includes those financial instruments that are valued using models or other valuation methodologies. These models are primarily industry-standard models that consider various assumptions, including quoted forward prices for commodities, time value, volatility factors, and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. Instruments in this category generally include non-exchange-traded derivatives such as commodity swaps, interest rate swaps, options and collars.
	Level 3 – Pricing inputs include significant inputs that are generally less observable from objective sources. These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.
	At March 31, 2015, the Company’s financial instruments consist of the derivative liabilities related to stock purchase warrants.  The derivative liability on stock purchase warrants was valued using the Black-Scholes Option Pricing Model, a Level 3 input.  The fair value of the conversion features associated with the convertible debt was estimated in accordance with ASC Topic No. 470-20-25-4. The change in fair value of the derivative liabilities is classified in other income (expense) in the statement of operations.
	assets have also been valued using the fair value accounting treatment and a description of the methodology used, including the valuation category, is described in the Company’s Annual Report on Form 10-K.

4_STOCKHOLDERS_EQUITY_Tables

4. STOCKHOLDERS EQUITY (Tables)	3 Months Ended
	Mar. 31, 2015
STOCKHOLDERS' EQUITY (DEFICIT)
A Summary Of The Status Of The Warrants Granted	For the Three Months Ended March 31, 2015
			Shares				Weighted Average Exercise Price
	Outstanding at beginning of period			10,936,844			$	0.23
	Granted			-				-
	Exercised			-				-
	Forfeited			-				-
	Expired			-				-
	Outstanding at end of period			10,936,844			$	0.23
Schedule of warrants by warrant price range					As of March 31, 2015								As of March 31, 2015
					Warrants Outstanding								Warrants Exercisable
	Range of Exercise Prices				Number Outstanding				Weighted-Average Remaining Contract Life		Weighted- Average Exercise Price		Number Exercisable		Weighted-Average Exercise Price
	$	0.06				4,500,000				3.5	$	0.06		4,500,000	$	0.06
		0.08				550,000				2.9		0.08		550,000		0.08
		0.09				625,000				3		0.09		625,000		0.09
		0.15				1,571,300				2.4		0.15		1,571,300		0.15
		0.25				120,000				0.6		0.25		120,000		0.25
		0.4				300,000				0.3		0.4		300,000		0.4
		0.44				1,515,544				1.4		0.44		1,515,544		0.44
		0.5				370,000				1		0.5		370,000		0.5
		0.6				975,000				1.5		0.6		975,000		0.6
		0.75				120,000				0.6		0.75		120,000		0.75
		1				290,000				1.1		1		290,000		1
	$	0.06-1.00				10,936,844				2.5	$	0.23		10,936,844	$	0.23
Schedule of option activity	For the Three Months Ended March 31, 2015
			Options				Weighted Average Exercise Price
	Outstanding at beginning of period			3,943,500			$	0.15
	Granted			150,000			(a)
	Exercised			-				-
	Forfeited			-				-
	Expired			-				-
	Outstanding at end of Period			4,093,500			$	0.15
Schedule of options by option price range					As of March 31, 2015								As of March 31, 2015
					Stock Options Outstanding								Stock Options Exercisable
	Exercise Price				Number Outstanding				Weighted-Average Remaining Contract Life		Weighted- Average Exercise Price		Number Exercisable		Weighted-Average Exercise Price
	$	0.15				3,943,500				2.39		0.15		3,826,833	$	0.15
	(a)					150,000				-		-		-		-
	$	0.15				4,093,500				2.39		0.15		3,826,833	$	0.15

5_DERIVATIVE_LIABILITIESTables

5. DERIVATIVE LIABILITIES(Tables)	3 Months Ended
	Mar. 31, 2015
Re-acquisition of distributorship
Schedule of financial assets and liabilities by level					Fair Value Measurement at March 31, 2015
	Liabilities:	Carrying Value at March 31, 2015			Level 1		Level 2		Level 3
	Warrant derivative liabilities	$	1,399		$	-	$	-	$	1,399
	Total	$	1,399		$	-	$	-	$	1,399
					Fair Value Measurement at December 31, 2014
	Liabilities:	Carrying Value at December 31, 2014			Level 1		Level 2		Level 3
	Warrant derivative liabilities	$	1,708		$	-	$	-	$	1,708
	Total	$	1,708		$	-	$	-	$	1,708
Fair Value Of Derivative Warrant Liabilities Using American Option Binomial Model	Dividend yield:	0%
	Expected volatility	78% to 237%
	Risk free interest rate	0.13% to 1.07%
	Expected life (years)	0.58 to 2.32
The Following Table Sets Forth The Changes In Derivative Liabilities	Balance, December 31, 2014	$	(1,708	)
	Gain on change in fair value of derivative liabilities		309
	Balance, March 31, 2015	$	(1,399	)

3_NOTES_PAYABLE_Details_Narrat

3. NOTES PAYABLE (Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015
Notes Payable Details Narrative
Furniture purchase agreement note Paid	$900
Furniture purchase agreement note Original Amount	$11,700

4_STOCKHOLDERS_EQUITY_Details

4. STOCKHOLDERS EQUITY (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Number Outstanding, Beginning	3,943,500
Number of Warrants Granted	150,000
Number Outstanding, Ending	4,093,500
Weighted Average Exercise Price Outstanding, Beginning	$0.15
Weighted Average Exercise Price Outstanding, Ending	$0.15
Warrant
Number Outstanding, Beginning		10,936,844
Number Outstanding, Ending	10,936,844	10,936,844
Weighted Average Exercise Price Outstanding, Beginning		$0.23
Weighted Average Exercise Price Outstanding, Ending	$0.23	$0.23

4_STOCKHOLDERS_EQUITY_Details_

4. STOCKHOLDERS EQUITY (Details 1) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Number Outstanding, Ending	4,093,500	3,943,500
Weighted Average Exercise Price	$0.15	$0.15
Number Exercisable	3,826,833
Exercisable Weighted Average Exercise Price	$0.15
0.06
Number Outstanding, Ending	4,500,000
Weighted Average Remaining Contract Life	3 years 6 months
Weighted Average Exercise Price	$0.06
Number Exercisable	4,500,000
Exercisable Weighted Average Exercise Price	$0.06
0.08
Number Outstanding, Ending	550,000
Weighted Average Remaining Contract Life	2 years 10 months 24 days
Weighted Average Exercise Price	$0.08
Number Exercisable	550,000
Exercisable Weighted Average Exercise Price	$0.08
0.09
Number Outstanding, Ending	625,000
Weighted Average Remaining Contract Life	3 years
Weighted Average Exercise Price	$0.09
Number Exercisable	625,000
Exercisable Weighted Average Exercise Price	$0.09
0.15
Number Outstanding, Ending	1,571,300
Weighted Average Remaining Contract Life	2 years 4 months 24 days
Weighted Average Exercise Price	$0.15
Number Exercisable	1,571,300
Exercisable Weighted Average Exercise Price	$0.15
0.25
Number Outstanding, Ending	120,000
Weighted Average Remaining Contract Life	0 years 7 months 6 days
Weighted Average Exercise Price	$0.25
Number Exercisable	120,000
Exercisable Weighted Average Exercise Price	$0.25
0.4
Number Outstanding, Ending	300,000
Weighted Average Remaining Contract Life	0 years 3 months 11 days
Weighted Average Exercise Price	$0.40
Number Exercisable	300,000
Exercisable Weighted Average Exercise Price	$0.40
0.44
Number Outstanding, Ending	1,515,544
Weighted Average Remaining Contract Life	1 year 4 months 24 days
Weighted Average Exercise Price	$0.44
Number Exercisable	1,515,544
Exercisable Weighted Average Exercise Price	$0.44
0.5
Number Outstanding, Ending	370,000
Weighted Average Remaining Contract Life	1 year
Weighted Average Exercise Price	$0.50
Number Exercisable	370,000
Exercisable Weighted Average Exercise Price	$0.50
0.6
Number Outstanding, Ending	975,000
Weighted Average Remaining Contract Life	1 year 6 months
Weighted Average Exercise Price	$0.60
Number Exercisable	975,000
Exercisable Weighted Average Exercise Price	$0.60
0.75
Number Outstanding, Ending	120,000
Weighted Average Remaining Contract Life	0 years 7 months 6 days
Weighted Average Exercise Price	$0.75
Number Exercisable	120,000
Exercisable Weighted Average Exercise Price	$0.75
1
Number Outstanding, Ending	290,000
Weighted Average Remaining Contract Life	1 year 1 month 6 days
Weighted Average Exercise Price	$1
Number Exercisable	290,000
Exercisable Weighted Average Exercise Price	$1
0.06-1.00
Number Outstanding, Ending	10,936,844
Weighted Average Remaining Contract Life	2 years 6 months
Weighted Average Exercise Price	$0.23
Number Exercisable	10,936,844
Exercisable Weighted Average Exercise Price	$0.23

4_STOCKHOLDERS_EQUITY_Details_1

4. STOCKHOLDERS' EQUITY (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2015
Stockholders Equity Details 2
Number Outstanding, Beginning	3,943,500
Number of Options Granted	150,000
Number Outstanding, Ending	4,093,500
Weighted Average Exercise Price Outstanding, Beginning	$0.15
Weighted Average Exercise Price Outstanding, Ending	$0.15

4_STOCKHOLDERS_EQUITY_Details_2

4. STOCKHOLDERS' EQUITY (Details 3) (USD $)	3 Months Ended
	Mar. 31, 2015	Dec. 31, 2014
Number Outstanding, Ending	4,093,500	3,943,500
Weighted average remaining contract life	2 years 4 months 20 days
Weighted Average Exercise Price Outstanding, Ending	$0.15	$0.15
Number Options Exercisable	3,826,833
Weighted-Average Exercise Price Options Exercisable	$0.15
Stock Options
Number Outstanding, Ending	3,943,500
Weighted Average Exercise Price Outstanding, Ending	$0.15
Number Options Exercisable	3,826,833
Weighted-Average Exercise Price Options Exercisable	$0.15
January 1, 2015 Grants
Number Outstanding, Ending	150,000

4_STOCKHOLDERS_EQUITY_Details_3

4. STOCKHOLDERS EQUITY (Details Narrative)	Mar. 31, 2015	Dec. 31, 2014
Series C Preferred Stock [Member]
Preferred Stock, shares issued	70,054	70,411
Preferred Stock, shares outstanding	70,054	70,411
Series D Preferred Stock [Member]
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0

5_DERIVATIVE_LIABILITIES_Detai

5. DERIVATIVE LIABILITIES (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Derivative Liability	$1,399	$1,708
Warrant
Derivative Liability	1,399	1,708
Level 3
Derivative Liability	1,399	1,708
Level 3 | Warrant
Derivative Liability	$1,399	$1,708

5_DERIVATIVE_LIABILITIESDetail

5. DERIVATIVE LIABILITIES(Details 1)	3 Months Ended
	Mar. 31, 2015
Derivative Liabilitiesdetails 1
Dividends	0.00%
Expected volatility, min	78.00%
Expected volatility, max	237.00%
Risk free interest rate, min	0.13%
Risk free interest rate, max	1.07%
Expected life (years), min	0 years 6 months 29 days
Expected life (years), max	2 years 3 months 25 days

5_DERIVATIVE_LIABILITIESDetail1

5. DERIVATIVE LIABILITIES(Details 2) (USD $)	3 Months Ended
	Mar. 31, 2015
Derivative Liabilitiesdetails 2
Beginning Balance	($1,708)
Gain on change in fair value of derivative liabilities	309
Ending Balance	($1,399)

5_DERIVATIVE_LIABILITIESDetail2

5. DERIVATIVE LIABILITIES(Details Narrative) (USD $)	3 Months Ended
	Mar. 31, 2015
Derivative Liabilitiesdetails Narrative
Warrants remained as derivative liabilities	910,000
Aggregate gain on derivative liabilities	$309

6_RELATED_PARTY_TRANSACTIONS_D

6. RELATED PARTY TRANSACTIONS (Details Narrative) (USD $)	Mar. 31, 2015
Related Party Transactions Details Narrative
Principal owed to related party	$1,000,000
Accrued interest to related parties	$200,000