Applied Energetics (AERG) 10-Q 15 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 12, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	APPLIED ENERGETICS, INC.
Entity Central Index Key	879,911
Trading Symbol	aerg
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		157,285,520
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets
Cash and cash equivalents	$ 29,571	$ 680
Other assets	312	312
Total current assets	29,883	992
TOTAL ASSETS	29,883	992
Current liabilities
Accounts payable	68,415	66,986
Accrued expenses - current	307,959	233,833
Accrued dividends	48,079	48,080
Total current liabilities	424,453	348,899
Total liabilities	424,453	348,899
Commitments and contingencies
Stockholders' (deficit) equity
Series A Convertible Preferred Stock, $.001 par value, 2,000,000 shares authorized;13,602 shares issued and outstanding at March 31, 2017 and at December 31, 2016	14	14
Common stock, $.001 par value, 500,000,000 shares authorized; 154,285,520 and 91,785,520 shares issued and outstanding at March 31, 2017 and at December 31, 2016, respectively	157,285	154,785
Additional paid-in capital	79,247,333	79,179,432
Accumulated deficit	(79,799,202)	(79,682,138)
Total stockholders' (deficit) equity	(394,570)	(347,907)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY	$ 29,883	$ 992

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Stockholders' (deficit) equity
Series A convertible preferred stock, par value (in Dollars per Share)	$ .001	$ 0.001
Series A convertible preferred stock, shares authorized (in Shares)	2,000,000	2,000,000
Series A convertible preferred stock, shares issued (in Shares)	13,602	13,602
Series A convertible preferred stock, shares outstanding (in Shares)	13,602	13,602
Common stock, par value (in Dollars per Share)	$ .001	$ 0.001
Common stock, shares authorized (in Shares)	500,000,000	500,000,000
Common stock, shares issued (in Shares)	157,285,520	91,785,520
Common stock, shares outstanding (in Shares)	157,285,520	91,785,520

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Revenue	$ 0	$ 0
Cost of revenue	0	0
Gross profit	0	0
Operating expenses
General and administrative	117,064	150,744
Total operating expenses	117,064	150,744
Operating loss	(117,064)	(150,744)
Other income
Other income	0	2,543
Interest income	0	19
Total other income	0	2,562
Net loss	(117,064)	(148,182)
Preferred stock dividends	(8,501)	(8,501)
Net loss attributable to common stockholders	$ (125,565)	$ (156,683)
Net loss per common share - basic and diluted	$ (0.01)	$ (0.01)
Weighted average number of shares outstanding, basic and diluted (in Shares)	154,812,993	97,488,816

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (117,064)	$ (148,182)
Adjustments to reconcile net loss to net cash used in operating activities:
Non-cash stock based compensation expense	7,901	58,833
Changes in assets and liabilities:
Prepaid expenses, deposits and other assets	0	(12,593)
Accounts payable	1,429	12,257
Accrued expenses and deposits	74,125	29,271
Net cash used in operating activities	(33,609)	(60,414)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash provided by investing activities	0	0
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of common stock	62,500	0
Net cash provided by financing activities	62,500	0
Net decrease in cash and cash equivalents	28,891	(60,414)
Cash and cash equivalents, beginning of period	680	136,840
Cash and cash equivalents, end of period	29,571	76,426
Supplemental Cash Flow Information
Cash paid for interest and taxes	$ 0	$ 0

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2017
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The accompanying interim unaudited condensed consolidated financial statements include the accounts of Applied Energetics, Inc. and its wholly owned subsidiary North Star Power Engineering, Inc. as of March 31, 2017 (collectively, “company,” “Applied Energetics,” “we,” “our” or “us”). All intercompany balances and transactions have been eliminated. In the opinion of management, all adjustments (which include normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented have been made. The results for the three-month periods ended March 31, 2017, may not be indicative of the results for the entire year. The interim unaudited condensed consolidated financial statements should be read in conjunction with the company’s audited consolidated financial statements contained in our Annual Report on Form 10-K. LIQUIDITY AND MANAGEMENT’S PLAN The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the three months ended March 31, 2017, the company incurred a net loss of approximately $117,000, had negative cash flows from operations of approximately $34,000 and expects to incur additional future losses due to the reactivation of its business activities. These matters raise substantial doubt as to the company’s ability to continue as a going concern unless the company is able to obtain additional financing for its continuing operations. The financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should the company be unable to continue as a going concern. As of March 31, 2017, the company had approximately $30,000 in cash and cash equivalents. USE OF ESTIMATES The preparation of consolidated financial statements in conformity with United States Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its assumptions on historical experiences and on various other estimates that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In addition, management considers the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Such estimates and assumptions could change in the future, as more information becomes known which could materially impact the amounts reported and disclosed herein. Significant estimates include measurements of income tax assets and liabilities. RECENT ACCOUNTING PRONOUNCEMENTS The company has reviewed issued accounting pronouncements and plans to adopt those that are applicable to it. The company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position.

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
SHARE BASED COMPENSATION [Abstract]
Disclosure of Compensation Related Costs Share Based Payments [Text Block]	2. SHARE-BASED COMPENSATION Share-Based Compensation – Contractors For the three months ended March 31, 2017 and 2016, share-based compensation expense totaled approximately $8,000 and $59,000, respectively. There was no related income tax benefit recognized because our deferred tax assets are fully offset by a valuation allowance. We determine the fair value of option grant share-based awards at their grant date, using a Black-Scholes-Merton Option-Pricing Model applying the assumptions in the following table: Three months Ended March 31, 2017 2016 Expected life (years) 5 - Dividend yield 0 % - Expected volatility 80 % - Risk free interest rates 1.97 % - Weighted average fair value of options at grant date $ 0.02980 - During the three months ended March 31, 2017 the company granted each member of the Scientific Advisory Board options to purchase 2 million shares of $.001 par value common stock at a price of $0.05 per share. These options have a five year term and vest to the extent of 500,000 shares on the first anniversary of the grant and to the extent of 62,500 options per month during the 24 months following the initial vesting date. During the three months ended March 31, 2017 the company also granted each member of the Scientific Advisory Board performance options to purchase 1.5 million shares of $0.001 par value common stock at a price of $0.25 per share. These options have a five year term and vest on the date the company has cumulative revenues of $5 million. For the three months ended March 31, 2017, 14,000,000 options to purchase stock were granted, additionally, no options to purchase stock were exercised, expired or forfeited; no restricted stock units were granted, vested or forfeited; and no restricted stock awards were granted, vested or forfeited. At March 31, 2017, options to purchase 14,000,000 shares of common stock were outstanding with a weighted average exercise price of $0.136 with a weighted average remaining contract term of 4.9 years with an aggregate intrinsic value of $-0-. At March 31, 2017 no options were exercisable. As of March 31, 2017, there was approximately $168,000 of unrecognized compensation cost related to unvested stock options granted and outstanding, net of estimated forfeitures. The cost is expected to be recognized on a weighted average basis over a period of approximately five years.

NET LOSS PER SHARE

NET LOSS PER SHARE	3 Months Ended
	Mar. 31, 2017
NET LOSS PER SHARE [Abstract]
NET LOSS PER SHARE	3. NET LOSS PER SHARE Basic net loss per common share is computed by dividing net loss available to common shareholders by the weighted average number of common shares outstanding during the period before giving effect to stock options, stock warrants, restricted stock units and convertible securities outstanding, which are considered to be dilutive common stock equivalents. Diluted net loss per common share is calculated based on the weighted average number of common and potentially dilutive shares outstanding during the period after giving effect to convertible preferred stock, stock options, warrants and restricted stock units. Contingently issuable shares are included in the computation of basic loss per share when issuance of the shares is no longer contingent. Due to the losses from continuing operations for the three months ended March 31, 2017 and 2016, basic and diluted loss per common share were the same, as the effect of potentially dilutive securities would have been anti-dilutive. Potentially dilutive securities not included in the diluted loss per share calculation, due to net losses from continuing operations, were as follows: Three months ended March 31, 2017 2016 Options to purchase common shares 14,000,000 32,000 Convertible preferred stock 38,965 35,422 Total potentially dilutive securities 14,038,965 37,548

DIVIDENDS

DIVIDENDS	3 Months Ended
	Mar. 31, 2017
DIVIDENDS [Abstract]
DIVIDENDS	4. DIVIDENDS Dividends on Preferred Stock are accrued when the amount and kind of the dividend is determined and are payable quarterly on the first day of February, May, August and November, in cash or shares of common stock. The holders of shares of Series A Convertible Preferred Stock are entitled to receive dividends at the initial rate of 6.5% of the liquidation preference per share (the “Initial Dividend Rate”), payable, at the option of the corporation, in cash or shares of common stock or a combination of cash and common stock. Upon the occurrence of the company’s failure to pay dividends in the five business days following a dividend payment date (a “Payment Default”), the dividend rate shall immediately and automatically increase to 7.5% of the liquidation preference per share for as long as such Payment Default continues (or return to the Initial Dividend Rate at such time as such Payment Default no longer continues), and if a Payment Default shall occur on two consecutive Dividend Payment Dates, the dividend rate shall immediately and automatically increase to 10% of the Liquidation Preference for as long as such Payment Default continues and shall immediately and automatically return to the Initial Dividend Rate at such time as the Payment Default is no longer continuing. As of March 31, 2017, we had 13,602 shares of our 6.5% Series A Convertible Preferred Stock outstanding. The company has not paid the dividends commencing with the quarterly dividend due August 1, 2013. Dividend arrearages as of March 31, 2017 was approximately $128,000. Our Board of Directors suspended the declaration of the dividend, commencing with the dividend payable as of February 1, 2015 since we did not have a surplus (as such term is defined in the Delaware general corporation Law) as of December 31, 2014, until such time as we have a surplus or net profits for a fiscal year. Our Series A Preferred Stock has a liquidation preference of $25.00 per Share. The Series A Preferred Stock bears dividends at the rate of 6.5% of the liquidation preference per share per annum, which accrues from the date of issuance, and is payable quarterly. Dividends may be paid in: (i) cash, (ii) shares of our common stock (valued for such purpose at 95% of the weighted average of the last sales prices of our common stock for each of the trading days in the ten trading day period ending on the third trading day prior to the applicable dividend payment date), provided that the issuance and/or resale of all such shares of our common stock are then covered by an effective registration statement or (iii) any combination of the foregoing. If the Company fails to make a dividend payment within five business days following a dividend payment date, the dividend rate shall immediately and automatically increase by 1% from 6.5% of the liquidation preference per offered share of Series A preferred stock to 7.5% of such liquidation preference. If a payment default shall occur on two consecutive dividend payment dates, the dividend rate shall immediately and automatically increase to 10% of the liquidation preference for as long as such payment default continues and shall immediately and automatically return to the Initial dividend rate at such time as the payment default is no longer continuing.

EQUITY

EQUITY	3 Months Ended
	Mar. 31, 2017
EQUITY [Abstract]
EQUITY	5. EQUITY During the three months ended March 31, 2017 the company issued 2,500,00 shares of its common stock for $62,500, or $0.025 per share through subscription agreements with three investors.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS	3 Months Ended
	Mar. 31, 2017
LEGAL PROCEEDINGS [Abstract]
LEGAL PROCEEDINGS	6. LEGAL PROCEEDINGS Three of the Company’s shareholders commenced an action entitled Superius Securities Group, Inc.et. al. vs George Farley, et.al. (CA No. 2017-0024-VCMR) in the Court of Chancery of the state of Delaware (the “Action”), The complaint asserts that in March 2016, George Farley (‘Farley”), Chairman of the Board of Directors, Farley, as sole director of Applied Energetics, Inc. (“AERG” or the “Company”), acted without proper shareholder approval to amend AERG’s certificate of incorporation to increase the number of its authorized shares of stock from 125 million to 500 million. However, the Complaint acknowledges that the amendment was approved by a majority of AERG’s shareholders in an April 10, 2012 proxy vote. The Complaint makes no allegations that there was any defect in that vote. The proxy for the amendment expressly permitted such an increase in the number of AERG’s authorized shares “for any proper corporate purpose, including, without limitation, in connection with stock splits, stock dividends, sale of our Common Stock, employee stock incentive plan, other stock ownership plans, acquisitions and to engage in other types of capital raises or strategic transactions.” The Complaint asserts that Farley breached his fiduciary duties of “loyalty, honesty and due care by issuing shares of stock to himself and the Company’s legal counsel at below fair market value, and failing to pursue corporate opportunities allegedly in the best interests of the Company and its stockholders. The Complaint was amended on May 5, 2017 dismissing one defendant and adding no new claims against the remaining defendant. The Company believes that the shareholder’s compliant is not meritorious and has filed a memorandum of law in support of a motion to dismiss the shareholder’s complaint in the Chancery Court of the State of Delaware. We may from time to time be involved in legal proceedings arising from the normal course of business.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Mar. 31, 2017
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENT	7. SUBSEQUENT EVENT The company’s management has evaluated subsequent events occurring after March 31, 2017, the date of our most recent balance sheet, through the date our financial statements were issued. Where applicable, all material subsequent events have been disclosed in their respective footnotes.

BASIS OF PRESENTATION (Policies

BASIS OF PRESENTATION (Policies)	3 Months Ended
	Mar. 31, 2017
BASIS OF PRESENTATION [Abstract]
LIQUIDITY AND MANAGEMENT'S PLAN, Policy	LIQUIDITY AND MANAGEMENT’S PLAN The accompanying unaudited financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. For the three months ended March 31, 2017, the company incurred a net loss of approximately $117,000, had negative cash flows from operations of approximately $34,000 and expects to incur additional future losses due to the reactivation of its business activities. These matters raise substantial doubt as to the company’s ability to continue as a going concern unless the company is able to obtain additional financing for its continuing operations. The financial statements do not include any adjustments relating to the recoverability of assets and the amount or classification of liabilities that might be necessary should the company be unable to continue as a going concern. As of March 31, 2017, the company had approximately $30,000 in cash and cash equivalents.
USE OF ESTIMATES, Policy	USE OF ESTIMATES The preparation of consolidated financial statements in conformity with United States Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported in the financial statements and accompanying notes. Management bases its assumptions on historical experiences and on various other estimates that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In addition, management considers the basis and methodology used in developing and selecting these estimates, the trends in and amounts of these estimates, specific matters affecting the amount of and changes in these estimates, and any other relevant matters related to these estimates, including significant issues concerning accounting principles and financial statement presentation. Such estimates and assumptions could change in the future, as more information becomes known which could materially impact the amounts reported and disclosed herein. Significant estimates include measurements of income tax assets and liabilities.
RECENT ACCOUNTING PRONOUNCEMENTS, Policy	RECENT ACCOUNTING PRONOUNCEMENTS The company has reviewed issued accounting pronouncements and plans to adopt those that are applicable to it. The company does not expect the adoption of any other pronouncements to have an impact on its results of operations or financial position.

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
SHARE BASED COMPENSATION [Abstract]
Schedule of Fair Value of Option Awards	We determine the fair value of option grant share-based awards at their grant date, using a Black-Scholes-Merton Option-Pricing Model applying the assumptions in the following table: Three months Ended March 31, 2017 2016 Expected life (years) 5 - Dividend yield 0 % - Expected volatility 80 % - Risk free interest rates 1.97 % - Weighted average fair value of options at grant date $ 0.02980 -

NET LOSS PER SHARE (Tables)

NET LOSS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2017
NET LOSS PER SHARE [Abstract]
Schedule of Potentially Dilutive Securities not Included in the Diluted Loss Per Share Calculation	Potentially dilutive securities not included in the diluted loss per share calculation, due to net losses from continuing operations, were as follows: Three months ended March 31, 2017 2016 Options to purchase common shares 14,000,000 32,000 Convertible preferred stock 38,965 35,422 Total potentially dilutive securities 14,038,965 37,548

BASIS OF PRESENTATION (Narrativ

BASIS OF PRESENTATION (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
BASIS OF PRESENTATION [Abstract]
Net loss	$ (117,064)	$ (148,182)
Cash flows from operations	(33,609)	(60,414)
Cash and cash equivalents	$ 29,571	$ 76,426	$ 680	$ 136,840

SHARE BASED COMPENSATION (Narra

SHARE BASED COMPENSATION (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
SHARE BASED COMPENSATION [Abstract]
Share-based compensation expense	$ 7,901	$ 58,833
Income tax benefit related to share based compensation	0	$ 0
Unrecognized compensation costs related to unvested equity awards, net of estimated forfeitures	168,000
Options outstanding aggregate intrinsic value	$ 0
Options exercisable (in Shares)	0
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, par value (in Dollars per Share)	$ .001		$ 0.001
Employee Stock Option [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, option awards, granted (in Shares)	14,000,000
Share-based compensation, options exercised (in Shares)	0
Share-based compensation, options forfeited (in Shares)	0
Share-based compensation, options expired (in Shares)	0
Share-based compensation, options outstanding (in Shares)	14,000,000
Share-based compensation, options outstanding, weighted average exercise price (in Dollars per Share)	$ .136
Share-based compensation, options outstanding, weighted average remaining contractual term (in Duration)	4 years 10 months 24 days
Employee Stock Option [Member] | Scientific Advisory Board Members [Member] | $.05 per Share Price [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, option awards, granted (in Shares)	2,000,000
Common stock, par value (in Dollars per Share)	$ .001
Exercise price of options granted (In Dollars per Share)	$ .05
Number of options vesting on first anniversary from grant date (in Shares)	500,000
Number of options vesting monthly for 24 months from grant date (in Shares)	62,500
Number of months from grant date over which 62,500 options will vest monthly (in Duration)	24 months
Term of options (in Duration)	5 years
Employee Stock Option [Member] | Scientific Advisory Board Members [Member] | $.25 per Share Price [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, option awards, granted (in Shares)	1,500,000
Common stock, par value (in Dollars per Share)	$ .001
Exercise price of options granted (In Dollars per Share)	$ .25
Term of options (in Duration)	5 years
Cumulative revenue target, at which options will vest	$ 5,000,000
Restricted Stock Units (RSUs) [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, non-option instruments granted (in Shares)	0
Share-based compensation, non-option instruments vested (in Shares)	0
Share-based compensation, non-option instruments forfeited (in Shares)	0
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation, non-option instruments granted (in Shares)	0
Share-based compensation, non-option instruments vested (in Shares)	0
Share-based compensation, non-option instruments forfeited (in Shares)	0

SHARE-BASED COMPENSATION VAL;UA

SHARE-BASED COMPENSATION VAL;UATION SCHEDULE (Table) (Details) - $ / shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
SHARE BASED COMPENSATION [Abstract]
Expected life of share-based awards (in Duration)	5 years
Expected dividend yield of share-based awards (in Duration)	0.00%
Expected volatility of share-based awards (in Percent)	80.00%
Risk free interest rates of share-based awards, maximum (in Percent)	1.97%
Weighted average fair value of options at grant date (in Dollars per Share)	$ .02980

NET LOSS PER SHARE (Schedule of

NET LOSS PER SHARE (Schedule of Potentially Dilutive Securities not Included in Diluted Loss Per Share Calculation) (Details) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive securities (in Shares)	14,038,965	37,548
Options to purchase common shares [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive securities (in Shares)	14,000,000	32,000
Convertible preferred stock [Member]
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Total potentially dilutive securities (in Shares)	38,965	35,422

DIVIDENDS (Narrative) (Details)

DIVIDENDS (Narrative) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Stockholders Equity Note Abstract
Series A convertible preferred stock, dividend rate (in Percent)	6.50%
Series A convertible preferred stock, increased dividend rate, if company fails to pay dividends within five days of dividend payment date (in Percent)	7.50%
Series A convertible preferred stock, dividend rate increased, if company fails to pay dividends on two consecutive dividend payment dates (in Percent)	10.00%
Series A convertible preferred stock, shares outstanding (in Shares)	13,602	13,602
Preferred stock, amount of preferred dividends in arrears	$ 128,000
Series A covertible preferred stock, liquidation preference (in Dollars per Share)	$ 25
Valuation of dividends payable in shares, percent of the weighted average of common stock sales price on the last ten trading days ending on the third trading day prior to applicable dividend payment date (in Percent)	95.00%
Amount of dividend rate increase if distribution not made within five business days following dividend payment date (in Percent)	1.00%

EQUITY (Narrative) (Details)

EQUITY (Narrative) (Details)	3 Months Ended
	Mar. 31, 2017USD ($)$ / sharesshares
EQUITY [Abstract]
Shares issued through subscription agreements with three investors (in Shares) | shares	2,500,000
Number of investors to whom shares were issued (in Integer)	3
Proceeds from stock subscription agreements with three investors | $	$ 62,500
Share price of stock issued through subscription agreements with three investors (in Dollars per Share)	$ .025