BioLife Solutions (BLFS) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 01, 2013
Document And Entity Information	'	'
Entity Registrant Name	'BIOLIFE SOLUTIONS INC	'
Entity Central Index Key	'0000834365	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	70,414,877
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Current assets	'	'
Cash and cash equivalents	$79,287	$196,478
Accounts receivable, trade, net of allowance for doubtful accounts of $1,100 at September 30, 2013 and December 31, 2012	1,026,858	600,153
Inventories	409,195	656,397
Prepaid expenses and other current assets	140,077	174,731
Total current assets	1,655,417	1,627,759
Property and equipment	'	'
Leasehold improvements	1,121,362	919,035
Furniture and computer equipment	300,143	288,725
Manufacturing and other equipment	763,135	741,771
Subtotal	2,184,640	1,949,531
Less: Accumulated depreciation	-798,335	-615,085
Net property and equipment	1,386,305	1,334,446
Long term deposits	36,166	36,166
Deferred financing costs, net	129,136	171,458
Total assets	3,207,024	3,169,829
Current liabilities	'	'
Accounts payable	840,498	862,492
Accrued expenses and other current liabilities	52,532	8,495
Accrued compensation	224,625	363,101
Deferred rent	111,250	111,250
Deferred revenue	'	20,000
Total current liabilities	1,228,905	1,365,338
Long term liabilities	'	'
Promissory notes payable, related parties	10,603,127	10,603,127
Accrued interest, related parties	3,316,055	2,759,391
Deferred rent, long term	918,307	838,829
Deferred revenue, long term	'	89,167
Total liabilities	16,066,394	15,655,852
Shareholders' equity (deficiency)	'	'
Common stock, $0.001 par value; 150,000,000 shares authorized, 70,414,877 and 69,679,854 shares issued and outstanding at September 30, 2013 and December 31, 2012, respectively	70,415	69,680
Additional paid-in capital	43,480,884	43,255,374
Accumulated deficit	-56,410,669	-55,811,077
Total shareholders' equity (deficiency)	-12,859,370	-12,486,023
Total liabilities and shareholders' equity (deficiency)	$3,207,024	$3,169,829

Balance_Sheets_Parenthetical

Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Assets	'	'
Accounts receivable allowances	$1,100	$1,100
Stockholders Equity	'	'
Common stock, par value	$0.00	$0.00
Common stock, authorized	150,000,000	150,000,000
Common stock, issued	70,414,877	69,679,854
Common stock, outstanding	70,414,877	69,679,854

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Revenue	'	'	'	'
Product sales	$2,170,491	$1,676,480	$6,051,354	$3,599,770
Licensing revenue	'	5,000	609,167	15,000
Total revenue	2,170,491	1,681,480	6,660,521	3,614,770
Cost of product sales	1,281,634	1,086,031	3,817,737	2,073,909
Gross profit	888,857	595,449	2,842,784	1,540,861
Operating expenses	'	'	'	'
Research and development	160,528	110,689	361,404	353,837
Sales and marketing	208,080	145,735	625,600	379,774
General and administrative	630,342	487,733	1,856,386	1,441,852
Total operating expenses	998,950	744,157	2,843,390	2,175,463
Operating loss	-110,093	-148,708	-606	-634,602
Other income (expenses)	'	'	'	'
Other income	'	'	'	94,253
Interest expense	-185,554	-185,554	-556,664	-547,875
Gain on disposal of property and equipment	'	431	'	368
Amortization of deferred financing costs	-14,263	-18,397	-42,322	-60,142
Total other income (expenses)	-199,817	-203,520	-598,986	-513,396
Net Loss	($309,910)	($352,228)	($599,592)	($1,147,998)
Basic and diluted net loss per common share	$0	($0.01)	($0.01)	($0.02)
Basic and diluted weighted average common shares used to calculate net loss per common share	70,106,312	69,679,854	70,005,207	69,679,854

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities	'	'
Net loss	($599,592)	($1,147,998)
Adjustments to reconcile net loss to net cash used in operating activities	'	'
Depreciation	183,250	110,018
Gain on disposal of property and equipment	'	-368
Stock-based compensation expense	175,787	154,747
Amortization of deferred financing costs	42,322	60,142
Lease incentives received from landlord, net of amortization of deferred rent related to lease incentives	88,258	766,082
Change in operating assets and liabilities	'	'
(Increase) Decrease in Accounts receivable, trade	-426,705	-250,800
Inventories	247,202	-343,255
Prepaid expenses and other current assets	34,654	-32,470
Increase (Decrease) in	'	'
Accounts payable	-21,994	661,180
Accrued compensation and other current liabilities	-94,439	129,786
Accrued interest, related parties	556,664	547,875
Deferred rent	-8,780	46,189
Deferred revenue	-109,167	-15,000
Net cash used in operating activities	67,460	686,128
Cash flows from investing activities	'	'
Cash received from sale of property and equipment	'	1,400
Purchase of property and equipment	-235,109	-1,171,863
Net cash used in investing activities	-235,109	-1,170,463
Proceeds from exercise of common stock options and warrants	50,458	'
Proceeds from notes payable	'	475,000
Net cash provided by financing activity	50,458	475,000
Net decrease in cash and cash equivalents	-117,191	-9,335
Cash and cash equivalents - beginning of period	196,478	16,864
Cash and cash equivalents - end of period	79,287	7,529
Non-cash financing activities	'	'
Deferred financing costs from issuance of warrants (See Note 7)	'	$137,955

1_Business

1. Business	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 1 - Business	'
	BioLife Solutions, Inc. ("BioLife,” “us,” “we,” “our,” or the “Company”) develops, manufactures and markets patented hypothermic storage and cryopreservation solutions for cells and tissues.  The Company’s proprietary HypoThermosol® and CryoStor® platform of solutions are marketed to academic and commercial organizations involved in the biobanking, drug discovery, and regenerative medicine markets. BioLife’s products are serum-free and protein-free, fully defined, and are formulated to reduce preservation-induced, delayed-onset cell damage and death.  BioLife’s enabling technology provides academic and clinical researchers significant improvements in post-thaw cell, tissue, and organ viability and function.  Additionally, for our direct, distributor, and contract customers, we perform custom formulation, fill, and finish services.

2_Liquidity

2. Liquidity	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 2 - Liquidity	'
	We have incurred annual operating losses since inception, and may continue to incur operating losses. As of September 30, 2013, our accumulated deficit was $56.4 million. We may not be able to successfully achieve or sustain profitability. Successful transition to profitable operations is dependent upon achieving a level of revenues adequate to support our cost structure.

3_Summary_of_Significant_Accou

3. Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 3 - Summary of Significant Accounting Policies	'
	Basis of Presentation
	We have prepared the accompanying unaudited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Pursuant to these rules and regulations, we have condensed or omitted certain information and footnote disclosures we normally include in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In management’s opinion, we have made all adjustments (consisting only of normal, recurring adjustments) necessary to fairly present our financial position, results of operations and cash flows. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full year. These financial statements and accompanying notes should be read in conjunction with the financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2012 on file with the SEC.
	There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in the financial statements in our Annual Report on Form 10-K for the year ended December 31, 2012.
	Fair value of financial instruments
	The carrying value of cash and cash equivalents approximate their fair value (determined based on level 1 inputs in the fair value hierarchy) based on the short-term nature of these financial instruments. The carrying values of notes payable and accrued interest approximate their fair value (determined based on level 3 inputs in the fair value hierarchy) because interest rates of notes payable approximate market interest rates.
	Revenue recognition – license revenue
	Revenue related to licensing agreement activity is recognized over the estimated term of the service period or when no further performance obligations exist. Payments received in advance of the related licensing agreement period are recorded as deferred revenue and recognized when earned. During the first quarter of 2013, we negotiated a new intellectual property license agreement that provides one customer with limited access to our intellectual property under certain conditions. This customer paid upfront fees for the specific rights and there are no future performance obligations. The upfront fee of $500,000 was recognized as revenue during the quarter and $109,167 in deferred revenue associated with this customer was recognized as all future performance obligations associated with the previous license agreements were cancelled with the agreement signed in the first quarter of 2013.
	Concentrations of credit risk and business risk
	In the three and nine months ended September 30, 2013, we derived approximately 54% and 50%, respectively, of our product revenue from our relationship with one contract manufacturing customer. No other customer accounted for more than 10% of revenue in the three or nine months ended September 30, 2013. At September 30, 2013, one contract manufacturing customer accounted for 39% of gross accounts receivable and no other customer accounted for more than 10% of gross accounts receivable. In the three and nine months ended September 30, 2012, we derived approximately 60% and 38%, respectively, of our product revenue from our relationship with one contract manufacturing customer, which we commenced deliveries to in the second quarter of 2012. At December 31, 2012, one contract manufacturing customer accounted for 36% of gross accounts receivable and one other customer accounted for 11% of gross accounts receivable. All license revenue recognized in the nine months ended September 30, 2013 and 2012 was derived from one customer.
	Recent Accounting Pronouncements
	There have been no new accounting pronouncements during the nine month period ended September 30, 2013, as compared to our Annual Report on Form 10-K for the year ended December 31, 2012, that are of significance, or potential significance, to us.
	Stock-based compensation
	The value, at the date of grant, of stock awarded under restricted stock unit grants is amortized as compensation expense over the vesting period.

4_Inventories

4. Inventories	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 4 - Inventories	'
	Inventory consists of the following at September 30, 2013 and December 31, 2012:
		September 30,		December 31,
		2013		2012
	Raw materials	$	192,096	$	398,510
	Work in progress		150,784		116,319
	Finished goods		66,315		141,568
	Total	$	409,195	$	656,397
	During the nine months ended September 30, 2012, the Company recorded a nonreciprocal, non-monetary receipt of inventory in the amount of $87,215. This amount was also recorded as Other Income in the Statement of Operations during the nine month period ended September 30, 2012. The transaction was accounted for at fair value on the date the inventory was received.

5_Deferred_Rent

5. Deferred Rent	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 5 - Deferred Rent	'
	Deferred rent consists of the following at September 30, 2013 and December 31, 2012:
		September 30,			December 31,
		2013			2012
	Landlord-funded leasehold improvements	$	1,059,186		$	900,989
	Less accumulated amortization		(109,127	)		(39,187	)
	Total (current portion $111,250)		950,059			861,802
	Straight line rent adjustment		79,498			88,277
	Total deferred rent	$	1,029,557		$	950,079
	During the nine month period ended September 30, 2013, the Company recorded an additional $191,583 in deferred rent relating to leasehold improvements funded by the Company’s landlord as incentives under the facility lease, offset by payments to the landlord of $33,386.  During the three and nine month periods ended September 30, 2013, the Company recorded $23,925 and $69,940, respectively, in deferred rent amortization of these landlord funded leasehold improvements.
	Straight line rent adjustment represents the difference between cash rent payments and the recognition of rent expense on a straight-line basis over the terms of the lease.

6_Sharebased_Compensation

6. Share-based Compensation	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 6 - Share-based Compensation	'
	Stock Options
	The fair value of share-based payments made with stock options to employees and non-employee directors was estimated on the measurement date using the Black-Scholes model using the following weighted average assumptions.
		Three Month Period Ended					Nine Month Period Ended
		September 30,					September 30,
		2013			2012		2013		2012
	Risk free interest rate		2.25%			0.71%		2.25%		0.78%
	Dividend yield		0.00%			0.00%		0.00%		0.00%
	Expected term (in years)		7			7		7		6.6
	Volatility		105.20%			101.57%		105.20%		102.76%
	We recorded stock compensation expense for the three and nine month periods ended September 30, 2013 and 2012, as follows:
		Three Month Period Ended					Nine Month Period Ended
		September 30,					September 30,
		2013			2012		2013		2012
	Research and development costs	$	5,893		$	6,954	$	19,801	$	20,441
	Sales and marketing costs		1,265			630		2,525		840
	General and administrative costs		71,294			42,720		120,608		118,542
	Cost of product sales		9,782			6,830		32,853		14,924
	Total	$	88,234		$	57,134	$	175,787	$	154,747
	Management applies an estimated forfeiture rate that is derived from historical employee termination data.  The estimated forfeiture rate applied for the three and nine month periods ended September 30, 2013 and 2012 was approximately 7%.
	The following is a summary of stock option activity for the nine month period ended September 30, 2013, and the status of stock options outstanding at September 30, 2013:
		Nine Month Period Ended
		30-Sep-13
					Wtd. Avg.
					Exercise
		Shares			Price
	Outstanding at beginning of year		20,329,602		$	0.09
	Granted		175,000			0.75
	Exercised		(355,855	)		0.07
	Unvested Shares Forfeited		(380,000	)		0.12
	Expired		(25,000	)		0.08
	Outstanding at September 30, 2013		19,743,747		$	0.09
	Stock options exercisable at September 30, 2013		16,261,588		$	0.08
	Fair value of options granted during the three and nine months ended September 30, 2013 was approximately $0.63. Weighted average fair value of options granted was $0.11 and $0.08 per share for the three and nine month periods ended September 30, 2012, respectively
	As of September 30, 2013, there was $13,838,469 of aggregate intrinsic value of outstanding stock options, including $11,565,711 of aggregate intrinsic value of exercisable stock options.  Intrinsic value is the total pretax intrinsic value for all “in-the-money” options (i.e., the difference between the Company’s closing stock price on the last trading day of the quarter and the exercise price, multiplied by the number of shares) that would have been received by the option holders had all option holders exercised their options on September 30, 2013.  This amount will change based on the fair market value of the Company’s stock.
	As of September 30, 2013, we had approximately $342,383 of unrecognized compensation expense related to unvested stock options.  We expect to recognize this compensation expense over a weighted average period of approximately 2.1 years.
	Restricted Stock
	During the three months ended September 30, 2013, the Company granted 66,667 restricted stock units to a Director under the 2013 Performance Incentive Plan, which was approved on June 20, 2013. The stock units were granted at the price of $0.75 per share, which was the fair value of the stock on the grant date. The Company recognized $50,000 in stock compensation related to this grant in the third quarter of 2013, which is included in General and Administrative Expenses. This grant was converted to Common Stock upon grant, as it was fully vested on the date of the grant. At September 30, 2013, there were no unvested restricted stock units outstanding.

7_Warrants

7. Warrants	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 7 - Warrants	'
	At September 30, 2013, we had 7,406,250 warrants outstanding and exercisable with a weighted average exercise price of $0.07. There were no warrants issued, forfeited or expired in the nine month period ended September 30, 2013. During the nine months ended September 30, 2013, 312,500 warrants were exercised with a value of $0.08 per share, for proceeds of $25,000. The outstanding warrants have expiration dates between November 2013 and May 2017.
	During the quarter ended June 30, 2012, the Company issued a total of 2,000,000 warrants to the current note holders as consideration for restructuring of their existing promissory notes.  The warrants were valued using the Black-Scholes option pricing model resulting in a total value of $137,995 which was recorded as Deferred Financing Costs on the Balance Sheet and is being amortized to expense over the revised term of the notes.
	During the three and nine month periods ended September 30, 2013, the Company recorded $14,263 and $42,322, respectively, in amortization of deferred financing costs. During the three and nine month periods ended September 30, 2012, the Company recorded $18,397 and $60,142, respectively, in amortization of deferred financing costs.

8_Net_Loss_per_Common_Share

8. Net Loss per Common Share	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 8 - Net Loss per Common Share	'
	Basic net loss per common share is calculated by dividing the net loss by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the weighted average number of common shares outstanding plus dilutive common stock equivalents outstanding during the period. Common stock equivalents are excluded for the three and nine month periods ended September 30, 2013 and 2012, respectively, since the effect is anti-dilutive due to the Company’s net losses. Common stock equivalents include stock options and warrants.
	Basic weighted average common shares outstanding, and the potentially dilutive securities excluded from loss per share computations because they are anti-dilutive, are as follows as of September 30, 2013 and 2012, respectively:
		Three Month Period Ended				Nine Month Period Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Basic and diluted weighted average common stock shares outstanding		70,106,312		69,679,854		70,005,207		69,679,854
	Potentially dilutive securities excluded from loss per share computations:
	Common stock options		19,743,747		20,248,227		19,743,747		20,248,227
	Common stock purchase warrants		7,406,250		7,718,750		7,406,250		7,718,750

9_Commitments_Contingencies

9. Commitments & Contingencies	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
NOTE 9 - Commitments & Contingencies	'
	Legal Proceedings
	We are a party in a number of legal matters filed in the state of New York by the Company or John G. Baust, the Company’s former Chief Executive Officer, and members of his extended family, that are described more fully in the Company’s Annual Report on Form 10-K for the year ended December 31, 2012.  During the nine months ended September 30, 2013, there were no significant developments related to these complaints.  We have not made any accrual related to future litigation outcomes as of September 30, 2013 and December 31, 2012.
	Leases
	In November of 2012 we signed an amended lease agreement, which expanded the premises leased by us from the landlord to approximately 26,000 rentable square feet. The term of the lease was extended to July 31, 2021. The amendment includes two (2) options to extend the term of the lease, each option is for an additional period of five (5) years, with the first extension term commencing, if at all, on August 1, 2021, and the second extension term commencing, if at all, immediately following the expiration of the first extension term. In accordance with the amended lease agreement, our monthly base rent increased to approximately $46,000 effective August 1, 2013, with scheduled annual increases each August. We will be required to pay an amount equal to our proportionate share of certain taxes and operating expenses.

3_Summary_of_Significant_Accou1

3. Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Basis of Presentation	'
	We have prepared the accompanying unaudited financial statements pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Pursuant to these rules and regulations, we have condensed or omitted certain information and footnote disclosures we normally include in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). In management’s opinion, we have made all adjustments (consisting only of normal, recurring adjustments) necessary to fairly present our financial position, results of operations and cash flows. Our interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full year. These financial statements and accompanying notes should be read in conjunction with the financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2012 on file with the SEC.
	There have been no material changes to our significant accounting policies as compared to the significant accounting policies described in the financial statements in our Annual Report on Form 10-K for the year ended December 31, 2012.
Fair value of financial instruments	'
	The carrying value of cash and cash equivalents approximate their fair value (determined based on level 1 inputs in the fair value hierarchy) based on the short-term nature of these financial instruments. The carrying values of notes payable and accrued interest approximate their fair value (determined based on level 3 inputs in the fair value hierarchy) because interest rates of notes payable approximate market interest rates.
Revenue recognition - license revenue	'
	Revenue related to licensing agreement activity is recognized over the estimated term of the service period or when no further performance obligations exist. Payments received in advance of the related licensing agreement period are recorded as deferred revenue and recognized when earned. During the first quarter of 2013, we negotiated a new intellectual property license agreement that provides one customer with limited access to our intellectual property under certain conditions. This customer paid upfront fees for the specific rights and there are no future performance obligations. The upfront fee of $500,000 was recognized as revenue during the quarter and $109,167 in deferred revenue associated with this customer was recognized as all future performance obligations associated with the previous license agreements were cancelled with the agreement signed in the first quarter of 2013.
Concentration of Credit Risk and Business Risk	'
	In the three and nine months ended September 30, 2013, we derived approximately 54% and 50%, respectively, of our product revenue from our relationship with one contract manufacturing customer. No other customer accounted for more than 10% of revenue in the three or nine months ended September 30, 2013. At September 30, 2013, one contract manufacturing customer accounted for 39% of gross accounts receivable and no other customer accounted for more than 10% of gross accounts receivable. In the three and nine months ended September 30, 2012, we derived approximately 60% and 38%, respectively, of our product revenue from our relationship with one contract manufacturing customer, which we commenced deliveries to in the second quarter of 2012. At December 31, 2012, one contract manufacturing customer accounted for 36% of gross accounts receivable and one other customer accounted for 11% of gross accounts receivable. All license revenue recognized in the nine months ended September 30, 2013 and 2012 was derived from one customer.
Recent Accounting Pronouncements	'
	There have been no new accounting pronouncements during the nine month period ended September 30, 2013, as compared to our Annual Report on Form 10-K for the year ended December 31, 2012, that are of significance, or potential significance, to us.
Stock-based compensation	'
	The value, at the date of grant, of stock awarded under restricted stock unit grants is amortized as compensation expense over the vesting period.

4_Inventories_Tables

4. Inventories (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Inventories	'
		September 30,		December 31,
		2013		2012
	Raw materials	$	192,096	$	398,510
	Work in progress		150,784		116,319
	Finished goods		66,315		141,568
	Total	$	409,195	$	656,397

5_Deferred_Rent_Tables

5. Deferred Rent (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Deferred rent	'
		September 30,			December 31,
		2013			2012
	Landlord-funded leasehold improvements	$	1,059,186		$	900,989
	Less accumulated amortization		(109,127	)		(39,187	)
	Total (current portion $111,250)		950,059			861,802
	Straight line rent adjustment		79,498			88,277
	Total deferred rent	$	1,029,557		$	950,079

6_Sharebased_Compensation_Tabl

6. Share-based Compensation (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Weighted average assumptions of share based payment	'
		Three Month Period Ended					Nine Month Period Ended
		September 30,					September 30,
		2013			2012		2013		2012
	Risk free interest rate		2.25%			0.71%		2.25%		0.78%
	Dividend yield		0.00%			0.00%		0.00%		0.00%
	Expected term (in years)		7			7		7		6.6
	Volatility		105.20%			101.57%		105.20%		102.76%
Stock compensation expense	'
		Three Month Period Ended					Nine Month Period Ended
		September 30,					September 30,
		2013			2012		2013		2012
	Research and development costs	$	5,893		$	6,954	$	19,801	$	20,441
	Sales and marketing costs		1,265			630		2,525		840
	General and administrative costs		71,294			42,720		120,608		118,542
	Cost of product sales		9,782			6,830		32,853		14,924
	Total	$	88,234		$	57,134	$	175,787	$	154,747
Summary of stock option activity	'
		Nine Month Period Ended
		30-Sep-13
					Wtd. Avg.
					Exercise
		Shares			Price
	Outstanding at beginning of year		20,329,602		$	0.09
	Granted		175,000			0.75
	Exercised		(355,855	)		0.07
	Unvested Shares Forfeited		(380,000	)		0.12
	Expired		(25,000	)		0.08
	Outstanding at September 30, 2013		19,743,747		$	0.09
	Stock options exercisable at September 30, 2013		16,261,588		$	0.08

8_Net_Loss_per_Common_Share_Ta

8. Net Loss per Common Share (Tables)	9 Months Ended
	Sep. 30, 2013
Notes to Financial Statements	'
Loss Per share computation	'
		Three Month Period Ended				Nine Month Period Ended
		September 30,				September 30,
		2013		2012		2013		2012
	Basic and diluted weighted average common stock shares outstanding		70,106,312		69,679,854		70,005,207		69,679,854
	Potentially dilutive securities excluded from loss per share computations:
	Common stock options		19,743,747		20,248,227		19,743,747		20,248,227
	Common stock purchase warrants		7,406,250		7,718,750		7,406,250		7,718,750

2_Liquidity_Details_Narrative

2. Liquidity (Details Narrative) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Notes to Financial Statements	'	'
Accumulated deficit	$56,410,669	$55,811,077

4_Inventories_Details

4. Inventories (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Inventories Details	'	'
Raw materials	$192,096	$398,510
Work in progress	150,784	116,319
Finished goods	66,315	141,568
Total	$409,195	$656,397

4_Inventories_Details_Narrativ

4. Inventories (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Inventories Details Narrative	'
Nonreciprocal, non-monetary receipt of inventory	$87,215

5_Deferred_Rent_Details

5. Deferred Rent (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Deferred Rent Details	'	'
Landlord-funded leasehold improvements	$1,059,186	$900,989
Less accumulated amortization	-109,127	-39,187
Total (current portion $111,250)	950,059	861,802
Straight line rent adjustment	79,498	88,277
Total deferred rent	$1,029,557	$950,079

5_Deferred_Rent_Details_Narrat

5. Deferred Rent (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Deferred rent	($8,780)	$46,189
Landlord Funded Leasehold Improvements [Member]	'	'
Deferred rent	191,583	'
Payment offset to landlord	33,386	'
Deferred rent amortization	$69,940	'

6_Sharebased_Compensation_Deta

6. Share-based Compensation (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Share-Based Compensation Details	'	'	'	'
Risk free interest rate	2.25%	0.71%	2.25%	0.78%
Dividend yield	0.00%	0.00%	0.00%	0.00%
Expected term (in years)	'7 years	'7 years	'7 years	'6 years 7 months 6 days
Volatility	105.20%	101.57%	105.20%	102.76%

6_Sharebased_Compensation_Deta1

6. Share-based Compensation (Details 1) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share based compensation	$88,234	$57,134	$175,787	$154,747
ResearchAndDevelopmentExpenseMember	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share based compensation	5,893	6,954	19,801	20,441
SellingAndMarketingExpenseMember	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share based compensation	1,265	630	2,525	840
GeneralAndAdministrativeExpenseMember	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share based compensation	71,294	42,720	120,608	118,542
CostofProductSalesMember	'	'	'	'
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]	'	'	'	'
Share based compensation	$9,782	$6,830	$32,853	$14,924

6_Sharebased_Compensation_Deta2

6. Share-based Compensation (Details 2) (USD $)	9 Months Ended
	Sep. 30, 2013
Number of Shares	'
Outstanding at beginning of year, Shares	20,329,602
Granted, Shares	175,000
Exercised, Shares	-355,855
Forfeited, Shares	-380,000
Expired, Shares	($25,000)
Outstanding at September 30, 2013, Shares	19,743,747
Stock options exercisable at September 30, Shares	16,261,588
Wtd. Avg Exercise Price	'
Outstanding at beginning of year, Wtd. Avg. Shares Exercise Price	$0.09
Granted, Wtd. Avg. Shares Exercise Price	$0.75
Exercised, Wtd. Avg. Shares Exercise Price	$0.07
Forfeited, Wtd. Avg. Shares Exercise Price	$0.12
Expired, Wtd. Avg. Shares Exercise Price	$0.08
Outstanding at September 30, Wtd. Avg. Shares Exercise Price	$0.09
Stock options exercisable at September 30, Wtd. Avg. Shares Exercise Price	$0.08

7_Warrants_Details_Narrative

7. Warrants (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Warrants Details Narrative	'
Warrants outstanding and exercisable	$7,406,250
Outstanding warrants expiration dates	'November 2013 and May 2017

8_Net_Loss_per_Common_Share_De

8. Net Loss per Common Share (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Net Loss Per Common Share Details	'	'	'	'
Basic and diluted weighted average common stock shares outstanding	70,106,312	69,679,854	70,005,207	69,679,854
Potentially dilutive securities excluded from loss per share computations:	'B	'B	'B	'B
Common stock options	19,743,747	20,248,227	19,743,747	20,248,227
Common stock purchase warrants	$7,406,250	$7,718,750	$7,406,250	$7,718,750

9_Related_Party_Transactions_D

9. Related Party Transactions (Details Narrative) (USD $)	9 Months Ended
	Sep. 30, 2013
Related Party Transactions Details Narrative	'
Legal fees, incurred	$0