Applied Minerals (AMNL) 10-Q 14 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 14, 2017
Document Information [Line Items]
Entity Registrant Name	Applied Minerals, Inc.
Entity Central Index Key	8,328
Trading Symbol	amnl
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		137,638,549
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 270,896	$ 1,049,880
Accounts receivable	60,528	364,952
Deposits and prepaid expenses	58,909	371,206
Other current receivables	0	16,801
Total Current Assets	390,333	1,802,839
Property and Equipment, net	3,129,806	4,075,176
Other Assets
Deposits	216,724	200,524
Assets Held for Sale	0	1,000
Total Other Assets	216,724	201,524
TOTAL ASSETS	3,736,863	6,079,539
Current Liabilities
Accounts payable and accrued liabilities	687,557	622,331
Accrued PIK note interest	1,277,900	961,395
Current portion of notes payable	15,553	234,149
Total Current Liabilities	1,981,010	1,817,875
Long-Term Liabilities
Long-term portion of notes payable	1,333	13,073
PIK Notes payable, net of $11,358,212 and $15,143,123 debt discount at September 30, 2017 and December 31, 2016, respectively	29,535,466	23,040,093
PIK Note derivative	1,142,174	2,176,552
Total Long-Term Liabilities	30,678,973	25,229,718
Total Liabilities	32,659,983	27,047,593
Commitments and Contingencies (Note 8)	0	0
Stockholders’ Deficit
Preferred stock, $0.001 par value, 10,000,000 shares authorized, none issued and outstanding	0	0
Common stock, $0.001 par value, 200,000,000 shares authorized, 133,888,549 and 108,613,549 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	133,888	108,614
Additional paid-in capital	69,537,143	68,506,530
Accumulated deficit prior to the exploration stage	(20,009,496)	(20,009,496)
Accumulated deficit during the exploration stage	(78,584,655)	(69,573,702)
Total Stockholders’ Deficit	(28,923,120)	(20,968,054)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$ 3,736,863	$ 6,079,539

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
PIK Notes payable, debt discount	$ 11,358,212	$ 15,143,123
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	133,888,549	108,613,549
Common stock, shares outstanding (in shares)	133,888,549	108,613,549

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
REVENUES	$ 148,303	$ 975,328	$ 2,300,998	$ 3,089,422
OPERATING EXPENSES:
Production costs	412,713	539,951	2,125,007	1,572,795
Exploration costs	47,172	270,700	304,631	821,814
General and administrative	664,217	977,716	2,137,655	3,227,852
Depreciation expense	329,357	340,165	989,123	1,014,585
Total Operating Expenses	1,453,459	2,128,532	5,556,415	6,637,046
Operating Loss	(1,305,156)	(1,153,204)	(3,255,417)	(3,547,624)
OTHER INCOME (EXPENSE):
Interest expense, net, including amortization of deferred financing cost and debt discount	(2,527,374)	(1,792,412)	(6,843,524)	(4,521,672)
Other income (expense)	(4,064)	1,042	21,620	106,021
Total Other Income (Expense)	(3,101,911)	(657,221)	(5,755,536)	(1,990,096)
Net (Loss) Income	$ (4,407,067)	$ (1,810,425)	$ (9,010,953)	$ (5,537,720)
Net (Loss)Income Per Share (Basic and Diluted) (in dollars per share)	$ (0.04)	$ (0.02)	$ (0.08)	$ (0.05)
Weighted Average Shares Outstanding (Basic and Diluted) (in shares)	118,862,734	108,482,042	112,094,593	101,231,559
PIK Note Derivative Liability [Member]
OTHER INCOME (EXPENSE):
Gain (Loss) on revaluation of PIK Note derivative	$ (570,473)	$ 1,134,149	$ 1,066,368	$ 2,425,555

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows from Operating Activities:
Net loss	$ (9,010,953)	$ (5,537,720)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	989,123	1,014,585
Amortization of discount - PIK Notes	3,784,911	1,824,715
Amortization of deferred financing costs	5,625	5,625
Issuance of PIK Notes in payment of interest	2,704,837	2,402,340
Stock issued for director fees and other services	0	53,914
Stock-based compensation expense	145,887	558,055
(Gain) loss on revaluation of PIK Note derivative	(1,066,368)	(2,425,555)
Gain on sale of property	0	(108,764)
Other	1,000	0
Change in operating assets and liabilities:
Accounts receivable	304,424	(222,522)
Other current receivables	16,802	94,647
Deposits and prepaids	296,097	251,901
Accounts payable and accrued liabilities	413,720	80,536
Net cash used in operating activities	(1,414,895)	(1,950,495)
Cash Flows From Investing Activities:
Sale of property	0	552,944
Purchases of property and equipment	(43,753)	(190,019)
Net cash provided by (used) in investing activities	(43,753)	362,925
Cash Flows From Financing Activities:
Payments on notes payable	(230,336)	(204,924)
Proceeds from sale of common stock and warrants	910,000	1,640,000
Net cash provided by financing activities	679,664	1,435,076
Net change in cash and cash equivalents	(778,984)	(152,494)
Cash and cash equivalents at beginning of period	1,049,880	1,803,131
Cash and cash equivalents at end of period	270,896	1,650,637
Supplemental disclosure of cash flow information:
Cash paid for interest	5,301	4,647
Supplemental disclosure of noncash financing activity:
Accrued PIK interest paid through issuance of PIK Notes	2,704,837	2,402,340
Employees [Member]
Adjustments to reconcile net loss to net cash used in operating activities
Stock issued for employee compensation	$ 0	$ 57,748

Note 1 - Organization and Descr

Note 1 - Organization and Description of Business	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS Applied Minerals is the owner of the Dragon Mine located in the Tintic Mining District of the State of Utah from where it produces halloysite clay and iron oxide. Since December, 2015, ’s revenue has been related to an 18 Ap plied Minerals is a publicly traded company incorporated in the state of Delaware. The common stock trades on the OTC Bulletin Board under the symbol AMNL. Between December, 2015 June 2017 $5.0 o a customer as required by the terms of an exclusive, take-or-pay supply agreement entered into by the Company. The exclusivity of the agreement applied to the sale of AMIRON for a specific oilfield application. The customer may $5.0 five December 2020) ten nine September 30, 2017, 57.8% September 30, 2017, $0. nine September 30, 2017,

Note 2 - Liquidity and Basis of

Note 2 - Liquidity and Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Liquidity [Text Block]	NOTE 2 – LIQUIDITY AND BASIS OF PRESENTATION The accompanying financial statements have been prepared on a going concern basis. The Company has a history of recurring losses from operations and use of cash in operating activities. For the nine September 30, 2017, was $9,010,953 $1,414,895. September 30, 2017, $112,857 $1,277,900 $189,920 $112,000 August 2017, Management believes that in order for the Company to meet its obligations arising from normal business operations through November 2018 Based on the Company ’s current cash usage expectations, management believes it will not November 2018.

Note 3 - Basis of Reporting and

Note 3 - Basis of Reporting and Significant Accounting Policies	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Basis of Presentation and Significant Accounting Policies [Text Block]	NOTE 3 – BASIS OF REPORTING AND SIGNIFICANT ACCOUNTING POLICIES The accompanying unaudited consolidated financial statements of Applied Minerals, Inc. have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, they do not complete financial statements. In the opinion of management, these interim unaudited condensed consolidated financial statements contain all of the adjustments of a normal and recurring nature which are considered necessary for a fair presentation of the financial position of the Company and the results of its operations and cash flows for the periods presented. The results of operations for the nine September 30, 2017 not December 31, 2016, 10 March 31, 2017. The accompanying interim unaudited condensed consolidated financial statements reflect the application of certain significant accounting policies as described below and elsewhere in these notes. As of September 30, 2017, 10 December 31, 2016. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Applied Minerals, Inc. and its inactive subsidiary in northern Idaho. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. In these condensed consolidated financial statements, the PIK Note derivative liability, stock compensation and the assessment of the possible impairment of long-lived assets involve extensive reliance on management’s estimates. Actual results could differ from those estimates. Fair Value ASC Topic 820, Fair Value Measurement and Disclosures three Level 1 – Quoted prices in active markets for identical assets and liabilities; Level 2 – Inputs other than level one Level 3 – Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Liabilities measured at fair value on a recurring basis are summarized as follows: Fair value measurement using inputs Carrying amount Level 1 Level 2 Level 3 September 30, 2017 December 31, 2016 Financial instruments: Series 2023 PIK Note Derivative $ -0- $ -0- $ 68,041 $ 68,041 $ 142,909 Series A PIK Note Derivative $ -0- $ -0- $ 1,074,133 $ 1,074,133 $ 2,033,643 The following table summarizes the activity for financial instruments at fair value using Level 3 Balance at December 31, 2016 $ 2,176,552 Additions related to the i ssuance of PIK Notes 31,990 Net unrealized gains included in net (loss) (1,066,368 ) Balance at September 30, 2017 $ 1,142,174 The recorded value of certain financial assets and liabilities, which consist primarily of cash and cash equivalents, receivables, other current assets, and accounts payable and accrued expenses approximates the fair value at September 30, 2017 er 31, 2016 $31,809,504 $23,361,553, September 30, 2017 December 31, 2016. For the Company's PIK Note derivative liabilities, Level 3 Series 2023 PIK Note derivative liability Fair Value Measurements Using Inputs September 30, 2017 December 31, 2016 Market price and estimated fair value of stock $ 0.04 $ 0.12 Exercise price $ 1.14 $ 1.28 Term (years) 5.83 6.58 Dividend yield $ -0- $ -0- Expected volatility 107.7 % 86.2 % Risk-free interest rate 2.02 % 2.18 % Series A PIK Note derivative liability Fair Value Measurements Using Inputs September 30, 2017 December 31, 2016 Market price and estimated fair value of stock $ 0.04 $ 0.12 Exercise price $ 0.66 $ 0.83 Term (years) 5.83 6.58 Dividend yield $ -0- $ -0- Expected volatility 107.7 % 86.2 % Risk-free interest rate 2.02 % 2.18 % Per share data Loss per share for the three September 30, 2017 2016, 118,862,734 108,482,042 Loss per share for the nine September 30, 2017 2016, 112,094,593 101,231,559 At September 30, 2017 2016, anding options and warrants to purchase 31,898,352 25,314,940 52,075,593 38,676,232 none Recent Accounting Pronouncements Recently Adopted In November 2015, 2015 17, 740 2015 17 2015 17 December 15, 2016, March 31, 2017 no In March 2016, 2016 09, December 15, 2016, March 31, 2017 no 2016 09, Not In May 2014, January 1, 2018. first 2018. The Company will finalize its assessment in the fourth 2017. In February 2016, 2016 02 842” one not December 15, 2018, The Company is currently evaluating the effect this ASU will have on its consolidated financial statement and disclosures. In June 2016, 2016 13, 326 December 15, 2020,

Note 4 - Income Tax

Note 4 - Income Tax	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Income Tax Disclosure [Text Block]	NOTE 4 - INCOME TAX Income tax provisions or benefits for interim periods are computed based on the Company's estimated annual effective tax rate. Based on the Company's historical losses and its expectation of the continuation of losses for the foreseeable future, the Company has determined that it is more likely than not not September 30, 2017 December 31, 2016.

Note 5 - Convertible Debt (PIK

Note 5 - Convertible Debt (PIK Notes)	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Convertible Debt [Text Block]	NOTE 5 – CONVERTIBLE DEBT (PIK NOTES) As of September 30, 2017, Series 2023 Notes Series A Notes Total PIK Note Payable, Gross $ 15,513,290 $ 25,388,513 $ 40,901,803 Less: Discount (1,598,654 ) (9,759,558 ) (11,358,212 ) Less: Deferred Financing Cost (2,992 ) (5,133 ) (8,125 ) PIK Note Payable, Net $ 13,911,644 $ 15,623,822 $ 29,535,466 PIK Note Derivative Liability $ 68,041 $ 1,074,133 $ 1,142,174 As of December 31, 2016, Series 2023 Notes Series A Notes Total PIK Note Payable, Gross $ 14,071,008 $ 24,125,958 $ 38,196,966 Less: Discount (1,721,898 ) (13,421,225 ) (15,143,123 ) Less: Deferred Financing Cost (5,064 ) (8,686 ) (13,750 ) PIK Note Payable, Net $ 12,344,046 $ 10,696,047 $ 23,040,093 PIK Note Derivative Liability $ 142,909 $ 2,033,643 $ 2,176,552 As of September 30, 2017, 2023 $1.14 $0.66. 2023 the Company’s capital raise closed on August 29, 2017.

Note 6 - Stockholders' Equity

Note 6 - Stockholders' Equity	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	NOTE 6 During the nine September 30, 2017, 250,000 $10,050 During the nine September 30, 2017, 22,750,000 $910,000 August 2017 2,275,000 $91,000 August 2017 In connection with the August 2017 he purchasers. The Company has an option to acquire the warrants; provided 20 $0.20

Note 7 - Options and Warrants t

Note 7 - Options and Warrants to Purchase Common Stock	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Options And Warrants To Purchase Common Stock [Text Block]	NOTE 7 - OPTIONS AND WARRANTS TO PURCHASE COMMON STOCK Outstanding Stock Warrants A summary of the status of the warrants outstanding and exercisable at September 30, 2017 Warrants Outstanding and Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price $0.04 6,256,250 4.92 $ 0.04 $0.25 3,283,283 3.75 $ 0.25 $1.15 461,340 3.58 $ 1.15 10,000,873 4.48 $ 0.36 Between January 1, 2017 September 30, 2017, 6,256,250 22,750,000 one 1 of a share of common stock. The intrinsic value of the outstanding warrants was $0 September 30, 2017. Outstanding Stock Options A summary of the status and changes of the options granted under stock option plans and other agreements for the nine September 30, 2017 Weighted Weighted Average Average Remaining Shares Exercise Price Contractual Life * Outstanding at beginning of period 21,277,479 $ 0.87 4.00 Issued 650,000 0.25 4.75 Exercised - 0 - - 0 - - 0 - Forfeited (30,000) 1.55 - 0 - Outstanding at end of period 21,897,479 $ 0.85 3.72 Exercisable at end of period 21,277,479 $ 0.87 4.19 * Measured in years During the nine September 30, 2017, 650,000 $0.25. $0.02. Compensation expense of $23,077 $145,832 three September 30, 2017 2016, $145,887 $510,877 nine September 30, 2017 2016, e aggregate intrinsic value of the outstanding and exercisable options at September 30, 2017 $0 $0, September 30, 2017, $35,099 0.33

Note 8 - Commitments and Contin

Note 8 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	NOTE 8 - COMMITMENTS AND CONTINGENCIES Office Lease During 2016, $16,700 $201,000 December 31, 2016. January 1, 2017, $6,000 th. The temporary office rental was pending completion of the Company’s permanent office location in the same Brooklyn, NY building. On May 16, 2017, five $9,000 May 16, 2017 March 31, 2022. The following table summarizes the Company ’s contractual obligations under the lease agreement referred above: Payment Due By Year 2017 2018 2019 2020 2021 2022 Total Rent Obligations $ 26,100 $ 107,010 $ 110,222 $ 113,530 $ 116,934 $ 24.480 $ 498,285 Contingencies In accordance with ASC Topic 450, may could have a material adverse effect on our financial condition, cash flows or results of operations.

Note 9 - Subsequent Events

Note 9 - Subsequent Events	9 Months Ended
	Sep. 30, 2017
Notes to Financial Statements
Subsequent Events [Text Block]	NOTE 9 - SUBSEQUENT EVENTS On October 4, 2017 $150,000 3,750,000 August 2017 one one five 0.25 tock. Four ( 4 one $0.04. In October, 2017 o-brand and market halloysite-clay based products to markets that include paints and coatings, inks, rubber, adhesives, paper and ceramic honeycomb catalytic substrates. Both parties to the agreement will share profits.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2017
Accounting Policies [Abstract]
Consolidation, Policy [Policy Text Block]	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Applied Minerals, Inc. and its inactive subsidiary in northern Idaho.
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. In these condensed consolidated financial statements, the PIK Note derivative liability, stock compensation and the assessment of the possible impairment of long-lived assets involve extensive reliance on management’s estimates. Actual results could differ from those estimates.
Fair Value Measurement, Policy [Policy Text Block]	Fair Value ASC Topic 820, Fair Value Measurement and Disclosures three Level 1 – Quoted prices in active markets for identical assets and liabilities; Level 2 – Inputs other than level one Level 3 – Unobservable inputs developed using estimates and assumptions, which are developed by the reporting entity and reflect those assumptions that a market participant would use. Liabilities measured at fair value on a recurring basis are summarized as follows: Fair value measurement using inputs Carrying amount Level 1 Level 2 Level 3 September 30, 2017 December 31, 2016 Financial instruments: Series 2023 PIK Note Derivative $ -0- $ -0- $ 68,041 $ 68,041 $ 142,909 Series A PIK Note Derivative $ -0- $ -0- $ 1,074,133 $ 1,074,133 $ 2,033,643 The following table summarizes the activity for financial instruments at fair value using Level 3 Balance at December 31, 2016 $ 2,176,552 Additions related to the i ssuance of PIK Notes 31,990 Net unrealized gains included in net (loss) (1,066,368 ) Balance at September 30, 2017 $ 1,142,174 The recorded value of certain financial assets and liabilities, which consist primarily of cash and cash equivalents, receivables, other current assets, and accounts payable and accrued expenses approximates the fair value at September 30, 2017 er 31, 2016 $31,809,504 $23,361,553, September 30, 2017 December 31, 2016. For the Company's PIK Note derivative liabilities, Level 3 Series 2023 PIK Note derivative liability Fair Value Measurements Using Inputs September 30, 2017 December 31, 2016 Market price and estimated fair value of stock $ 0.04 $ 0.12 Exercise price $ 1.14 $ 1.28 Term (years) 5.83 6.58 Dividend yield $ -0- $ -0- Expected volatility 107.7 % 86.2 % Risk-free interest rate 2.02 % 2.18 % Series A PIK Note derivative liability Fair Value Measurements Using Inputs September 30, 2017 December 31, 2016 Market price and estimated fair value of stock $ 0.04 $ 0.12 Exercise price $ 0.66 $ 0.83 Term (years) 5.83 6.58 Dividend yield $ -0- $ -0- Expected volatility 107.7 % 86.2 % Risk-free interest rate 2.02 % 2.18 %
Earnings Per Share, Policy [Policy Text Block]	Per share data Loss per share for the three September 30, 2017 2016, 118,862,734 108,482,042 Loss per share for the nine September 30, 2017 2016, 112,094,593 101,231,559 At September 30, 2017 2016, anding options and warrants to purchase 31,898,352 25,314,940 52,075,593 38,676,232 none
New Accounting Pronouncements, Policy [Policy Text Block]	Recent Accounting Pronouncements Recently Adopted In November 2015, 2015 17, 740 2015 17 2015 17 December 15, 2016, March 31, 2017 no In March 2016, 2016 09, December 15, 2016, March 31, 2017 no 2016 09, Not In May 2014, January 1, 2018. first 2018. The Company will finalize its assessment in the fourth 2017. In February 2016, 2016 02 842” one not December 15, 2018, The Company is currently evaluating the effect this ASU will have on its consolidated financial statement and disclosures. In June 2016, 2016 13, 326 December 15, 2020,

Note 3 - Basis of Reporting a16

Note 3 - Basis of Reporting and Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Fair Value, Liabilities Measured on Recurring Basis [Table Text Block]	Fair value measurement using inputs Carrying amount Level 1 Level 2 Level 3 September 30, 2017 December 31, 2016 Financial instruments: Series 2023 PIK Note Derivative $ -0- $ -0- $ 68,041 $ 68,041 $ 142,909 Series A PIK Note Derivative $ -0- $ -0- $ 1,074,133 $ 1,074,133 $ 2,033,643
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]	Balance at December 31, 2016 $ 2,176,552 Additions related to the i ssuance of PIK Notes 31,990 Net unrealized gains included in net (loss) (1,066,368 ) Balance at September 30, 2017 $ 1,142,174
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]	Series 2023 PIK Note derivative liability Fair Value Measurements Using Inputs September 30, 2017 December 31, 2016 Market price and estimated fair value of stock $ 0.04 $ 0.12 Exercise price $ 1.14 $ 1.28 Term (years) 5.83 6.58 Dividend yield $ -0- $ -0- Expected volatility 107.7 % 86.2 % Risk-free interest rate 2.02 % 2.18 % Series A PIK Note derivative liability Fair Value Measurements Using Inputs September 30, 2017 December 31, 2016 Market price and estimated fair value of stock $ 0.04 $ 0.12 Exercise price $ 0.66 $ 0.83 Term (years) 5.83 6.58 Dividend yield $ -0- $ -0- Expected volatility 107.7 % 86.2 % Risk-free interest rate 2.02 % 2.18 %

Note 5 - Convertible Debt (PI17

Note 5 - Convertible Debt (PIK Notes) (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Convertible Debt [Table Text Block]	Series 2023 Notes Series A Notes Total PIK Note Payable, Gross $ 15,513,290 $ 25,388,513 $ 40,901,803 Less: Discount (1,598,654 ) (9,759,558 ) (11,358,212 ) Less: Deferred Financing Cost (2,992 ) (5,133 ) (8,125 ) PIK Note Payable, Net $ 13,911,644 $ 15,623,822 $ 29,535,466 PIK Note Derivative Liability $ 68,041 $ 1,074,133 $ 1,142,174 Series 2023 Notes Series A Notes Total PIK Note Payable, Gross $ 14,071,008 $ 24,125,958 $ 38,196,966 Less: Discount (1,721,898 ) (13,421,225 ) (15,143,123 ) Less: Deferred Financing Cost (5,064 ) (8,686 ) (13,750 ) PIK Note Payable, Net $ 12,344,046 $ 10,696,047 $ 23,040,093 PIK Note Derivative Liability $ 142,909 $ 2,033,643 $ 2,176,552

Note 7 - Options and Warrants18

Note 7 - Options and Warrants to Purchase Common Stock (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]	Warrants Outstanding and Exercisable Exercise Price Number Outstanding Weighted Average Remaining Contractual Life (years) Weighted Average Exercise Price $0.04 6,256,250 4.92 $ 0.04 $0.25 3,283,283 3.75 $ 0.25 $1.15 461,340 3.58 $ 1.15 10,000,873 4.48 $ 0.36
Share-based Compensation, Stock Options, Activity [Table Text Block]	Weighted Weighted Average Average Remaining Shares Exercise Price Contractual Life * Outstanding at beginning of period 21,277,479 $ 0.87 4.00 Issued 650,000 0.25 4.75 Exercised - 0 - - 0 - - 0 - Forfeited (30,000) 1.55 - 0 - Outstanding at end of period 21,897,479 $ 0.85 3.72 Exercisable at end of period 21,277,479 $ 0.87 4.19

Note 8 - Commitments and Cont19

Note 8 - Commitments and Contingencies (Tables)	9 Months Ended
	Sep. 30, 2017
Notes Tables
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block]	Payment Due By Year 2017 2018 2019 2020 2021 2022 Total Rent Obligations $ 26,100 $ 107,010 $ 110,222 $ 113,530 $ 116,934 $ 24.480 $ 498,285

Note 1 - Organization and Des20

Note 1 - Organization and Description of Business (Details Textual) - One Customer [Member] - USD ($)	9 Months Ended	19 Months Ended
	Sep. 30, 2017	Jun. 30, 2017
Sales Revenue, Net [Member] | Customer Concentration Risk [Member]
Concentration Risk, Percentage	57.80%
AMIRON Products [Member]
Revenue, Net		$ 5,000,000
Supply Commitment, Additional Amount the Customer May Elect Upon Extension	$ 5,000,000
Supply Commitment, Agreement Period	5 years
Supply Commitment, Agreement Period After Extension	10 years
Accounts Receivable, Net	$ 0

Note 2 - Liquidity and Basis 21

Note 2 - Liquidity and Basis of Presentation (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Net Income (Loss) Attributable to Parent	$ (4,407,067)	$ (1,810,425)	$ (9,010,953)	$ (5,537,720)
Net Cash Provided by (Used in) Operating Activities			(1,414,895)	$ (1,950,495)
Working Capital	(112,857)		(112,857)
Satisfaction of Payables with DRAGONITE [Member]
Accounts Payable	112,000		112,000
Current Liabilities [Member]
Disputed Accrued Expenses	189,920		189,920
Payment in Kind (PIK) Note [Member]
Interest Payable	$ 1,277,900		$ 1,277,900

Note 3 - Basis of Reporting a22

Note 3 - Basis of Reporting and Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Weighted Average Number of Shares Outstanding, Basic and Diluted	118,862,734	108,482,042	112,094,593	101,231,559
Outstanding Options and Warrants to Purchase Common Stock Not Included in Diluted Computation	31,898,352	25,314,940	31,898,352	25,314,940
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount			52,075,593	38,676,232
Payment in Kind (PIK) Note [Member]
Convertible Debt, Fair Value Disclosures	$ 31,809,504		$ 31,809,504		$ 23,361,553

Note 3 - Basis of Reporting a23

Note 3 - Basis of Reporting and Significant Accounting Policies - Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Series 2023 PIK Note Derivative Liability [Member]
Derivative liability	$ 68,041	$ 142,909
Series 2023 PIK Note Derivative Liability [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative liability	0
Series 2023 PIK Note Derivative Liability [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative liability	0
Series 2023 PIK Note Derivative Liability [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative liability	68,041
Series A PIK Note Derivative Liability [Member]
Derivative liability	1,074,133	$ 2,033,643
Series A PIK Note Derivative Liability [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative liability	0
Series A PIK Note Derivative Liability [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative liability	0
Series A PIK Note Derivative Liability [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative liability	$ 1,074,133

Note 3 - Basis of Presentation

Note 3 - Basis of Presentation and Significant Accounting Policies - Derivatives Measured at Fair Value (Details) - Fair Value, Inputs, Level 3 [Member]	9 Months Ended
	Sep. 30, 2017USD ($)
Balance at beginning of year	$ 2,176,552
Additions related to the issuance of PIK Notes	31,990
Net unrealized gains included in net (loss)	(1,066,368)
Balance at end of year	$ 1,142,174

Note 3 - Basis of Presentatio25

Note 3 - Basis of Presentation and Significant Accounting Policies - Valuation Assumptions (Details) - Fair Value, Inputs, Level 3 [Member] - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Series 2023 PIK Note Derivative Liability [Member]
Market price and estimated fair value of stock (in dollars per share)	$ 0.04	$ 0.12
Exercise price (in dollars per share)	$ 1.14	$ 1.28
Term (years) (Year)	5 years 302 days	6 years 211 days
Dividend yield	0.00%	0.00%
Expected volatility	107.70%	86.20%
Risk-free interest rate	2.02%	2.18%
Series A PIK Note Derivative Liability [Member]
Market price and estimated fair value of stock (in dollars per share)	$ 0.04	$ 0.12
Exercise price (in dollars per share)	$ 0.66	$ 0.83
Term (years) (Year)	5 years 302 days	6 years 211 days
Expected volatility	107.70%	86.20%
Risk-free interest rate	2.02%	2.18%

Note 5 - Convertible Debt (PI26

Note 5 - Convertible Debt (PIK Notes) (Details Textual) - Payment in Kind (PIK) Note [Member]	Sep. 30, 2017$ / shares
Series 2023 Notes [Member]
Debt Instrument, Convertible, Conversion Price	$ 1.14
Series A Notes [Member]
Debt Instrument, Convertible, Conversion Price	$ 0.66

Note 5 - Convertible Debt (PI27

Note 5 - Convertible Debt (PIK Notes) - Convertible Debt PIK Notes (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Less: Discount	$ (11,358,212)	$ (15,143,123)
Payment in Kind (PIK) Note [Member]
PIK Note Payable, Gross	40,901,803	38,196,966
Less: Discount	(11,358,212)	(15,143,123)
Less: Deferred Financing Cost	(8,125)	(13,750)
PIK Note Payable, Net	29,535,466	23,040,093
PIK Note Derivative Liability	1,142,174	2,176,552
Payment in Kind (PIK) Note [Member] | Series 2023 Notes [Member]
PIK Note Payable, Gross	15,513,290	14,071,008
Less: Discount	(1,598,654)	(1,721,898)
Less: Deferred Financing Cost	(2,992)	(5,064)
PIK Note Payable, Net	13,911,644	12,344,046
PIK Note Derivative Liability	68,041	142,909
Payment in Kind (PIK) Note [Member] | Series A Notes [Member]
PIK Note Payable, Gross	25,388,513	24,125,958
Less: Discount	(9,759,558)	(13,421,225)
Less: Deferred Financing Cost	(5,133)	(8,686)
PIK Note Payable, Net	15,623,822	10,696,047
PIK Note Derivative Liability	$ 1,074,133	$ 2,033,643

Note 6 - Stockholders' Equity (

Note 6 - Stockholders' Equity (Details Textual) - USD ($)	1 Months Ended	9 Months Ended
	Aug. 31, 2017	Sep. 30, 2017
Stock Issued During Period, Shares, New Issues		22,750,000
Stock Issued During Period, Shares, in Lieu of Payment for Fees Associated with Private Placement		2,275,000
Stock Issued During Period, Value, in Lieu of Payment for Fees Associated with Private Placement		$ 91,000
Private Placement [Member]
Stock Issued During Period, Shares, New Issues		22,750,000
Stock Issued During Period, Value, New Issues		$ 910,000
Option to Acquire Warrants, Prerequisite, Minimum Average VWAP	$ 0.20
Directors and Consultants [Member]
Stock Issued During Period, Shares, Issued for Services		250,000
Stock Issued During Period, Value, Issued for Services		$ 10,050

Note 7 - Options and Warrants29

Note 7 - Options and Warrants to Purchase Common Stock (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Warrants Issued			6,256,250
Stock Issued During Period, Shares, New Issues			22,750,000
Intrinsic Value of Outstanding Warrants	$ 0		$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross			650,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price			$ 0.25
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 0.02
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value	0		$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value	0		0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options	$ 35,099		$ 35,099
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	0.25		0.25
Employee Stock Option [Member]
Allocated Share-based Compensation Expense	$ 23,077	$ 145,832	$ 145,887	$ 510,877
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition			120 days

Note 7 - Options and Warrants30

Note 7 - Options and Warrants to Purchase Common Stock - Summary of the Status of the Warrants Outstanding (Details)	9 Months Ended
	Sep. 30, 2017$ / sharesshares
Warrants Outstanding and Exercisable Number Outstanding (in shares) | shares	10,000,873
Warrants Outstanding and Exercisable Weighted Average Remaining Contractual Life (Year)	4 years 175 days
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares	$ 0.36
Exercise Price 1 [Member]
Warrants Outstanding and Exercisable Number Outstanding (in shares) | shares	6,256,250
Warrants Outstanding and Exercisable Weighted Average Remaining Contractual Life (Year)	4 years 335 days
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares	$ 0.04
Exercise Price 2 [Member]
Warrants Outstanding and Exercisable Number Outstanding (in shares) | shares	3,283,283
Warrants Outstanding and Exercisable Weighted Average Remaining Contractual Life (Year)	3 years 273 days
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares	$ 0.25
Exercise Price 3 [Member]
Warrants Outstanding and Exercisable Number Outstanding (in shares) | shares	461,340
Warrants Outstanding and Exercisable Weighted Average Remaining Contractual Life (Year)	3 years 211 days
Class of Warrant or Right, Exercise Price of Warrants or Rights (in dollars per share) | $ / shares	$ 1.15

Note 7 - Options and Warrants31

Note 7 - Options and Warrants to Purchase Common Stock - Summary of the Status and Changes of the Options Granted Under the Stock Option Plans and Other Agreements (Details) - $ / shares		9 Months Ended	12 Months Ended
		Sep. 30, 2017	Dec. 31, 2016
Outstanding, shares (in shares)		21,277,479
Outstanding, weighted average exercise price (in dollars per share)		$ 0.87
Outstanding, weighted average remaining contractual life (Year)	[1]	3 years 262 days	4 years
Issued (in shares)		650,000
Issued, weighted average exercise price (in dollars per share)		$ 0.25
Issued, weighted average remaining contractual life (Year)	[1]	4 years 273 days
Exercised (in shares)		0
Exercised (in dollars per share)		$ 0
Forfeited (in shares)		(30,000)
Forfeited (in dollars per share)		$ 1.55
Outstanding, shares (in shares)		21,897,479	21,277,479
Outstanding, weighted average exercise price (in dollars per share)		$ 0.85	$ 0.87
Exercisable, shares (in shares)		21,277,479
Exercisable, weighted average exercise price (in dollars per share)		$ 0.87
Exercisable, weighted average remaining contractual life (Year)	[1]	4 years 69 days
[1]	Measured in years

Note 8 - Commitments and Cont32

Note 8 - Commitments and Contingencies (Details Textual) - USD ($)	May 16, 2017	Dec. 31, 2016	Sep. 30, 2017
New York, NY [Member]
Operating Leases Monthly Rent		$ 16,700
Operating Leases, Rent Expense, Net		$ 201,000
Brooklyn, NY [Member] | Temporary Location Lease [Member]
Operating Leases Monthly Rent			$ 6,000
Brooklyn, NY [Member] | Permanent Location Lease [Member]
Operating Leases Monthly Rent	$ 9,000
Lessee, Operating Lease, Term of Contract	5 years

Note 8 - Commitments and Cont33

Note 8 - Commitments and Contingencies - Contractual Obligations (Details)	Sep. 30, 2017USD ($)
Rent Obligations, remainder of year	$ 26,100
Rent Obligations, year two	107,010
Rent Obligations, year three	110,222
Rent obligations, year four	113,530
Rent obligations, year five	116,934
Rent obligations, greater than 5 years	24.48
Rent obligations	$ 498,285

Note 9 - Subsequent Events (Det

Note 9 - Subsequent Events (Details Textual) - USD ($)	Oct. 04, 2017	Sep. 30, 2017
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right		0.25
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 0.36
Subsequent Event [Member]
Unit Issued During Period, Value, New Issues	$ 150,000
Unit Issued During Period, Shares, New Issues	3,750,000
Number of Securities Called by Each Unit	1
Warrant Term	5 years
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right	0.25
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.04