Guided Therapeutics (GTHP) 10-K 26 Mar 14 2013 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2013	Mar. 20, 2014	Jun. 28, 2013
Document And Entity Information	'	'	'
Entity Registrant Name	'GUIDED THERAPEUTICS INC	'	'
Entity Central Index Key	'0000924515	'	'
Document Type	'10-K	'	'
Document Period End Date	31-Dec-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 Public Float	'	'	$34,738,166
Entity Common Stock, Shares Outstanding	'	71,723,963	'
Document Fiscal Period Focus	'FY	'	'
Document Fiscal Year Focus	'2013	'	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
ASSETS	'	'
Cash and cash equivalents	$613	$1,044
Accounts receivable, net of allowance for doubtful accounts of $18 and $12 at December 31, 2013 and 2012, respectively	133	107
Inventory, net of reserves of $184 and $52 at December 31, 2013 and 2012, respectively	1,193	524
Other current assets	101	198
Total current assets	2,040	1,873
Property and equipment, net	920	1,274
Other assets	356	331
Total noncurrent assets	1,276	1,605
TOTAL ASSETS	3,316	3,478
LIABILITIES AND STOCKHOLDERS' EQUITY	'	'
Short-term notes payable	35	79
Current portion of long-term debt	109	4
Notes payable - past due	'	419
Accounts payable	891	765
Accrued liabilities	723	1,038
Deferred revenue	14	40
Total current liabilities	1,772	2,345
Warrants, at fair value	1,548	'
Long-term debt, net	103	'
Total long-term liabilities	1,651	'
TOTAL LIABILITIES	3,423	2,345
STOCKHOLDERS' EQUITY :	'	'
Series B convertible preferred stock, $.001 par value; 3 shares authorized, 2 and zero shares issued and outstanding as of December 31, 2013 and 2012, respectively (liquidation preference of $ 2.1 million and 0 at December 31, 2013 and 2012, respectively)	1,139	'
Common stock, $.001 par value; 145,000 shares authorized, 70,479 and 62,282 shares issued and outstanding as of December 31, 2013 and 2012, respectively	71	62
Additional paid-in capital	101,840	93,273
Treasury stock, at cost	-132	-104
Accumulated deficit	-103,025	-92,098
TOTAL GUIDED THERAPEUTICS STOCKHOLDERS' EQUITY	-107	1,133
TOTAL STOCKHOLDERS’ (DEFICIT) EQUITY	-107	1,133
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$3,316	$3,478

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, except Share data, unless otherwise specified
CURRENT ASSETS	'	'
Accounts receivable, net of allowance	$18	$12
Inventory, net of reserves	$184	$52
STOCKHOLDERS' EQUITY :	'	'
Series B convertible preferred stock, par value	$0.00	$0.00
Series B convertible preferred stock, authorized	3	3
Series B convertible preferred stock, issued	2	0
Series B convertible preferred stock, outstanding	2	0
Common stock, par value	$0.00	$0.00
Common stock, Authorized	145,000	145,000
Common stock, Issued	70,479	62,282
Common stock, outstanding	70,479	62,282

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	12 Months Ended
In Thousands, except Share data, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
REVENUE:	'	'
Contract and grant revenue	$820	$3,338
Sales - devices and disposables	359	72
Cost of goods sold	611	117
Gross Loss	-252	-45
OPERATING EXPENSES:	'	'
Research and development	2,742	3,227
Sales and marketing	901	424
General and administrative	3,533	3,923
Total operating expenses	7,174	7,574
Operating loss	-6,606	-4,281
OTHER INCOME	110	'
INTEREST EXPENSE	-45	-72
Change in fair value of warrants	-674	'
Total other income	-609	-72
LOSS  FROM OPERATIONS	-7,215	-4,353
PROVISION FOR INCOME TAXES	'	'
NET LOSS	-7,215	-4,353
PREFERRED STOCK DIVIDENDS	-3,175	'
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	($10,390)	($4,353)
BASIC AND DILUTED NET LOSS PER SHARE	($0.16)	($0.08)
WEIGHTED AVERAGE SHARES OUTSTANDING	65,884	57,429

CONSOLIDATED_STATEMENTS_OF_CHA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY (USD $)	Preferred Stock Series B	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Noncontrolling Interest	Total
In Thousands, except Share data
Beginning Balance, Amount at Dec. 31, 2011	'	$52	$86,614	($104)	($85,089)	$104	$1,577
Beginning Balance, Shares at Dec. 31, 2011	'	52,211	'	'	'	'	'
Issuance of common stock, Amount	'	'	162	'	'	'	162
Issuance of common stock, Shares	'	195	'	'	'	'	'
Exercise of warrants/options, Amount	'	10	3,092	'	'	'	3,102
Exercise of warrants/options, Shares	'	9,876	'	'	'	'	'
Stock-based compensation expense	'	'	645	'	'	'	645
Deemed dividends	'	'	2,656	'	-2,656	'	'
Acquisition of minority interest	'	'	104	'	'	-104	'
Net Loss	'	'	'	'	-4,353	'	-4,353
Ending Balance, Amount at Dec. 31, 2012	'	62	93,273	-104	-92,098	'	1,133
Ending Balance, Shares at Dec. 31, 2012	'	62,282	'	'	'	'	'
Issuance of Series B preferred stock, Amount	1,341	'	'	'	'	'	1,341
Issuance of Series B preferred stock, Shares	3	'	'	'	'	'	'
Deemed dividends on beneficial conversion feature of preferred stock	'	'	3,148	'	-3,148	'	'
Preferred dividends	'	'	'	'	-27	'	-27
Conversion of preferred stock, Amount	-202	1	201	'	'	'	'
Conversion of preferred stock, Shares	-1	878	'	'	'	'	'
Issuance of common stock, Amount	'	1	462	'	'	'	463
Issuance of common stock, Shares	'	670	'	'	'	'	'
Issuance of stock options	'	'	126	'	'	'	126
Exercise of warrants/options, Amount	'	7	3,269	'	'	'	3,276
Exercise of warrants/options, Shares	'	6,649	'	'	'	'	'
Stock-based compensation expense	'	'	'	'	'	'	824
Stock-based compensation expense, Amount	'	'	824	'	'	'	824
Deemed dividends	'	'	537	'	-537	'	'
Acquisition of minority interest	'	'	'	-28	'	'	-28
Net Loss	'	'	'	'	-7,215	'	-7,215
Ending Balance, Amount at Dec. 31, 2013	$1,139	$71	$101,840	($132)	($103,025)	'	($107)
Ending Balance, Shares at Dec. 31, 2013	2	70,479	'	'	'	'	'

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'
Net loss	($7,215)	($4,353)
Adjustments to reconcile net loss to net cash used in operating activities	'	'
Bad debt (recovery) expense	7	-3
Depreciation	461	361
Stock based compensation	824	645
Change in fair value of warrants	674	'
Changes in operating assets and liabilities:	'	'
Accounts receivable	-33	13
Inventory	-669	-4
Other current assets	97	-144
Other assets	-25	55
Accounts payable	126	-337
Deferred revenue	-26	-413
Accrued liabilities	223	513
Total adjustments	1,659	299
Net cash used in operating activities	-5,556	-3,666
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'
Additions to fixed assets	-107	-552
Net cash used in investing activities	-107	-552
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'
Net proceeds from issuance of preferred stock and warrants	2,214	'
Proceeds from debt financing	115	86
Payments made on notes payables	-374	-125
Proceeds from options and warrants exercised	3,276	3,102
Net cash provided by financing activities	5,231	3,063
NET CHANGE IN CASH AND CASH EQUIVALENTS	-432	-1,155
CASH AND CASH EQUIVALENTS, beginning of year	1,044	2,200
CASH AND CASH EQUIVALENTS, end of period	613	1,045
SUPPLEMENTAL SCHEDULE OF:	'	'
Cash paid for Interest	31	48
NONCASH INVESTING AND FINANCING ACTIVITIES:	'	'
Acquisition of minority interest	'	104
Conversion of accrued expenses into common stock	126	162
Purchase of fixed assets by issuing notes payable	'	50
Issuance of common stock as board compensation	463	'
Deemed dividends in the form of warrants to purchase common stock.	537	2,656
Deemed dividends on preferred stock	$3,148	'

1_Organization_Background_and_

1. Organization, Background, and Basis of Presentation	12 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
1. Organization, Background, and Basis of Presentation	'
	Guided Therapeutics, Inc. (formerly SpectRx, Inc.), together with its wholly owned subsidiary, InterScan, Inc. (formerly Guided Therapeutics, Inc.), collectively referred to herein as the “Company”, is a medical technology company focused on developing innovative medical devices that have the potential to improve healthcare. The Company’s primary focus is the development of its LuViva™ non-invasive cervical cancer detection device and extension of its cancer detection technology into other cancers, including esophageal. The Company’s technology, including products in research and development, primarily relates to biophotonics technology for the non-invasive detection of cancers.
	Basis of Presentation
	All information and footnote disclosures included in the consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States.
	The Company’s prospects must be considered in light of the substantial risks, expenses and difficulties encountered by entrants into the medical device industry. This industry is characterized by an increasing number of participants, intense competition and a high failure rate. The Company has experienced net losses since its inception and, as of December 31, 2013, it had an accumulated deficit of approximately $103.0 million. Through December 31, 2013, the Company has devoted substantial resources to research and development efforts. The Company first generated revenue from product sales in 1998, but does not have significant experience in manufacturing, marketing or selling its products. The Company’s development efforts may not result in commercially viable products and it may not be successful in introducing its products. Moreover, required regulatory clearances or approvals may not be obtained. The Company’s products may not ever gain market acceptance and the Company may not ever achieve levels of revenue to sustain further development costs and support ongoing operations or achieve profitability. The development and commercialization of the Company’s products will require substantial development, regulatory, sales and marketing, manufacturing and other expenditures. The Company expects operating losses to continue through the foreseeable future as it continues to expend substantial resources to complete development of its products, obtain regulatory clearances or approvals and conduct further research and development.
	Going Concern
	The Company’s consolidated financial statements have been prepared and presented on a basis assuming it will continue as a going concern.  The factors below raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty. Notwithstanding the foregoing, the Company believes it has made progress in recent years in stabilizing its financial situation by execution of multiyear contracts from Konica Minolta Opto, Inc., a subsidiary of Konica Minolta, Inc., a Japanese corporation based in Tokyo (“Konica Minolta”) and grants from the National Cancer Institute (“NCI”), while at the same time simplifying its capital structure and significantly reducing debt. However, the Company has replaced its prior agreements with Konica Minolta with a new licensing agreement, and therefore will no longer receive direct payments from Konica Minolta, and will have to pay a royalty to Konica Minolta should the Company sell any products licensed from Konica Minolta.
	At December 31, 2013, the Company had working capital of approximately $268,000, accumulated deficit of $103.0 million, and incurred a net loss of $7.2 million for the year then ended. Stockholders’ deficit totaled approximately $107,000 at December 31, 2013, primarily due to recurring net losses from operations, deemed dividends on warrants and preferred stock, offset by proceeds from the exercise of options and warrants and proceeds from sales of stock.
	The Company’s capital-raising efforts are ongoing. If sufficient capital cannot be raised by the end of the second quarter of 2014, the Company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support and additional NCI, NHI or other grant funding. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection.
	The Company had warrants exercisable for approximately 11.3 million shares of its common stock outstanding at December 31, 2013, with exercise prices of $0.40, $0.80 and $1.08 per share. Exercises of these warrants would generate a total of approximately $7.6 million in cash, assuming full exercise, although the Company cannot be assured that holders will exercise any warrants. Management may obtain additional funds through the private sale of preferred stock or debt securities, public and private sales of common stock, and grants, if available.
	Assuming the Company receives FDA approval for its LuViva cervical cancer detection device in 2014, the Company currently anticipates an early 2015 product launch in the United States. Product launch outside the United States began in the second half of 2013.

2_SIGNIFICANT_ACCOUNTING_POLIC

2. SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
2. SIGNIFICANT ACCOUNTING POLICIES	'
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant areas where estimates are used include the allowance for doubtful accounts, inventory valuation and input variables for Black-Scholes calculations.
	Principles of Consolidation
	The accompanying consolidated financial statements include the accounts of Guided Therapeutics, Inc. and its wholly owned subsidiary. As disclosed in Note 4, the Company purchased the remaining 49% interest in its subsidiary during December 2012.
	Cash Equivalents
	The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be a cash equivalent.
	Concentrations of Credit Risk
	The Company, from time to time during the years covered by these consolidated financial statements, may have bank balances in excess of its insured limits. Management has deemed this a normal business risk.
	Inventory Valuation
	All inventories are stated at lower of cost or market, with cost determined substantially on a “first-in, first-out” basis.  Selling, general, and administrative expenses are not inventoried, but are charged to expense when purchased. At December 31, 2013 and December 31, 2012, our inventories were as follows (in thousands):
		December 31,			December 31,
		2013			2012
	Raw materials	$	1,013		$	518
	Work in process		268			21
	Finished goods		96			37
	Inventory reserve		(184	)		(52	)
	Total	$	1,193		$	524
	Property and Equipment
	Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years. Leasehold improvements are depreciated at the shorter of the useful life of the asset or the remaining lease term. Depreciation expense is included in general and administrative expense on the statement of operations. Expenditures for repairs and maintenance are expensed as incurred. Property and equipment are summarized as follows at December 31, 2013 and 2012 (in thousands):
		Year Ended
		December 31,
		2013			2012
	Equipment	$	1,277		$	1,196
	Software		737			730
	Furniture and fixtures		124			124
	Leasehold Improvement		189			170
			2,327			2,220
	Less accumulated depreciation		(1,407	)		(946	)
	Total	$	920		$	1,274
	Patent Costs (Principally Legal Fees)
	Costs incurred in filing, prosecuting, and maintaining patents are recurring, and expensed as incurred. Maintaining patents are expensed as incurred as the Company has not yet received FDA approval and recovery of these costs is uncertain. Such costs aggregated approximately $75,000 and $46,000 in 2013 and 2012, respectively.
	Accounts Receivable
	The Company performs periodic credit evaluations of its customers’ financial conditions and generally does not require collateral. The Company reviews all outstanding accounts receivable for collectability on a quarterly basis. An allowance for doubtful accounts is recorded for any amounts deemed uncollectable. The Company does not accrue interest receivable on past due accounts receivable.
	Capitalized Costs of Internally Developed Software
	Costs of producing product masters incurred subsequent to establishing technological feasibility are capitalized. Those costs include coding and testing performed subsequent to establishing technological feasibility.
	Software production costs for computer software that is to be used as an integral part of a product or process are not capitalized until technological feasibility has been established for the software and all research and development activities for the other components of the product have been completed.
	Capitalization of computer software costs ceases when the product is available for general release to customers. Costs of maintenance and customer support are charged to expense when related revenue is recognized or when those costs are incurred, whichever occurs first.
	Costs of internally developed software are capitalized during the development stage of the software. The cost will be transferred to property and equipment and will be depreciated over the expected life of the software, which is estimated to be three years once the software becomes functional.
	Other Assets
	Other assets primarily consist of long-term deposits for various tooling projects that are being constructed for the Company. At December 31, 2013 and 2012, such balances were approximately $326,000 and $283,000, respectively.
	Accrued Liabilities
	Accrued liabilities are summarized as follows at December 31, 2013 and 2012 (in thousands):
		As of
		December 31,
		2013			2012
	Accrued compensation	$	426		$	706
	Accrued professional fees		116			191
	Deferred rent		68			77
	Other accrued expenses		113			64
	Total	$	723		$	1,038
	Revenue Recognition
	Revenue from the sale of the Company’s products is recognized upon shipment of such products to its customers. The Company recognizes revenue from contracts on a straight line basis, over the terms of the contracts. The Company recognizes revenue from grants based on the grant agreements, at the time the expenses are incurred.
	Significant Customers
	In 2013 and 2012, the majority of the Company’s revenues were from three and two customers, respectively. Revenue from these customers totaled approximately $653,000 or 65% and approximately $2.9 million or 85% of total revenue for the year ended December 31, 2013 and 2012, respectively. Accounts receivable due from the customers represents 27% and 48% as of December 31, 2013 and 2012, respectively.
	Deferred Revenue
	The Company defers payments received as revenue until earned based on the related contracts on a straight line basis, over the terms of the contract.
	Research and Development
	Research and development expenses consist of expenditures for research conducted by the Company and payments made under contracts with consultants or other outside parties and costs associated with internal and contracted clinical trials. All research and development costs are expensed as incurred.
	Income Taxes
	The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Management provides valuation allowances against the deferred tax assets for amounts that are not considered more likely than not to be realized.
	Uncertain Tax Positions
	Effective January 1, 2007 the Company adopted ASC guidance regarding accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the financial statements and applies to all income tax positions.  Each income tax position is assessed using a two-step process.  A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities.  If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.  At December 31, 2013 and 2012, there were no uncertain tax positions.
	The Company is current with its federal and applicable state tax returns filings. Although we have been experiencing recurring losses, we are obligated to file tax returns for compliance with Internal Revenue Service (“IRS”) regulations and that of applicable state jurisdictions. As of December 31, 2013, the Company has approximately $59.8 million of net operating loss eligible to be carried forward for tax purposes at federal and applicable states level.
None of the Company’s federal or state income tax returns are currently under examination by the IRS or state authorities.  However, fiscal years 2010 and later remain subject to examination by the IRS and applicable states.
Warrants
The Company has issued warrants, which allow the warrant holder to purchase one share of stock at a specified price for a specified period of time. The Company records equity instruments including warrants issued to non-employees based on the fair value at the date of issue. The fair value of warrants classified as equity instruments at the date of issuance is estimated using the Black-Scholes Model. The fair value of warrants classified as liabilities at the date of issuance is estimated using the Monte Carlo Simulation model.
Stock Based Compensation
The Company records compensation expense related to options granted to non-employees based on the fair value of the award.
Compensation cost is recorded as earned for all unvested stock options outstanding at the beginning of the first year based upon the grant date fair value estimates, and for compensation cost for all share-based payments granted or modified subsequently based on fair value estimates.
For the years ended December 31, 2013 and 2012, share-based compensation for options attributable to employees and officers were approximately $824,000 and $645,000, respectively. These amounts have been included in the Company’s statements of operations. Compensation costs for stock options which vest over time are recognized over the vesting period. As of December 31, 2013, the Company had approximately $865,000 of unrecognized compensation costs related to granted stock options to be recognized over the remaining vesting period of approximately three years.

3_Fair_Value_of_Financial_Inst

3. Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2013

Fair Value Disclosures [Abstract]

'

3. Fair Value of Financial Instruments

'

The guidance for fair value measurements, ASC820, Fair Value Measurements and Disclosures, establishes the authoritative definition of fair value, sets out a framework for measuring fair value, and outlines the required disclosures regarding fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The Company uses a three-tier fair value hierarchy based upon observable and non-observable inputs as follow:

·

Level 1 – Quoted market prices in active markets for identical assets and liabilities;

·

Level 2 – Inputs, other than level 1 inputs, either directly or indirectly observable; and

·

Level 3 – Unobservable inputs developed using internal estimates and assumptions (there is little or no market date) which reflect those that market participants would use.

The Company records its derivative activities at fair value, which consisted of warrants as of December 31, 2013. The fair value of the warrants was estimated using the Monte Carlo Simulation model. Gains and losses from derivative contracts are included in net gain (loss) from derivative contracts in the statement of operations. The fair value of the Company’s derivative warrants is classified as a Level 3 measurement, since unobservable inputs are used in the valuation.

The following table presents the fair value for those liabilities measured on a recurring basis as of December 31, 2013:

FAIR VALUE MEASUREMENTS ( In Thousands)

Description

Level 1

Level 2

Level 3

Total

Asset/(Liability)

Total

Warrants

$

—

$

—

$

(1,548

)

$

(1,548

)

$

(1,548

)

There were neither derivatives liabilities nor valuations of financial liabilities at December 31, 2012.

4_Stockholders_Equity

4. Stockholders Equity	12 Months Ended
	Dec. 31, 2013
Equity [Abstract]	'
4. Stockholders’ Equity	'
	Common Stock
	The Company has authorized 145 million shares of common stock with $0.001 par value, of which 70.5 million were issued and outstanding as of December 31, 2013. For the year ended December 31, 2012, there were 145 million authorized shares of common stock, of which 62.3 million were issued and outstanding.
	In December 2012, the Company entered into an agreement to purchase the remaining 49% interest in InterScan, Inc. In exchange, the Company agreed to issue to the seller warrants equal to 49% of the fair value of InterScan, Inc., as determined by a third party. The agreement established a minimum value purchase price of $147,000, or approximately 198,000 warrants, based upon the closing stock price at the date of the agreement, and a maximum purchase price of 2,500,000 warrants. The agreement required the seller to exercise one quarter of his outstanding warrants, subject to a minimum of $450,000 in warrant exercise payments, prior to March 1, 2013. The seller exercised all required warrants in accordance with the agreement. The Company issued 439,883 warrants to purchase the Company’s common stock at $0.68 per share to the seller, which will expire on March 31, 2016.
	Preferred Stock; Series B Convertible Preferred Stock
	The Company has authorized 5,000,000 shares of preferred stock with a $.001 par value. The board of directors has the authority to issue these shares and to set dividends, voting and conversion rights, redemption provisions, liquidation preferences, and other rights and restrictions. The board of directors designated 525,000 shares of preferred stock as redeemable convertible preferred stock, none of which remain outstanding, and 3,000 shares of preferred stock as Series B Preferred Stock, of which 2,147 shares were issued and outstanding as of December 31, 2013.
	Pursuant to the terms of the Series B Preferred Stock set forth in the Certificate of Designations, Preferences and Rights designating the Preferred Stock (the “Preferred Stock Designation”), shares of Series B Preferred Stock are convertible into common stock by their holder at any time, and will be mandatorily convertible upon the achievement of certain conditions, including the receipt of certain approvals from the U.S. Food and Drug Administration and the achievement by the Company of specified average trading prices and volumes for the common stock. The original conversion price was $0.68 per share, such that each share of Preferred Stock would convert into 1,471 shares of common stock, subject to customary adjustments, including any accrued but unpaid dividends and pursuant to certain anti-dilution provisions, as set forth in the Preferred Stock Designation. As a result of anti-dilution provisions, the current conversion price is set at $0.40 per share, such that each share of Preferred Stock would convert into 2,500 shares of common stock.
	Holders of the Series B Preferred Stock are entitled to quarterly dividends at an annual rate of 5.0%, for the quarter ended December 31, 2013, and at an annual rate of 10% thereafter, in each case, payable in cash or, subject to certain conditions, common stock, at the Company’s option. Accrued dividends totaled approximately $27,000 at December 31, 2013. Each share of Series B Preferred Stock is entitled to a number of votes equal to the number of shares of common stock into which the Series B Preferred Stock is convertible. As long as shares of the Series B Preferred Stock are outstanding, and until the receipt of certain approvals from the U.S. Food and Drug Administration and the achievement by the Company of specified average trading prices and volumes for the common stock, the Company may not incur indebtedness for borrowed money secured by the Company’s intellectual property or in excess of $2.0 million without the prior consent of the holders of two-thirds of the outstanding shares of Series B Preferred Stock. The Company may redeem the Series B Preferred Stock after the second anniversary of issuance, subject to certain conditions. Upon the Company’s liquidation or sale to or merger with another corporation, each share of Series B Preferred Stock will be entitled to a liquidation preference of $1,000 per share, plus any accrued but unpaid dividends.
	The Series B Preferred Stock was issued with Tranche A warrants to purchase 1,858,089 shares of common stock and Tranche B warrants purchasing 1,858,088 shares of common stock, both at an exercise price of $1.08 per share. Pursuant to the terms of the Tranche B warrants, their exercise price will be reduced, and the number of shares of common stock into which those warrants are exercisable will be increased, if the Company issues shares at a price below the then-current exercise price. The exercise price of Tranche B warrants is currently $0.40 per share, convertible into 5,016,840 shares of common stock. As a result of these provisions, the Company is required to account for the warrants as a liability recorded at fair value each period. The Company values the warrants using a Monte Carlo Simulation model. Of the $2.6 million in proceeds from issuance of the Series B Preferred Stock, the Company originally allocated $873,000 to the fair value of the warrants. At December 31, 2013, the fair value of these warrants was approximately $1.5 million.
	Stock Options
	Under the Company’s 1995 Stock Plan (the “Plan”), a total of 6,724,027 shares remained available at December 31, 2013 and 6,531,192 shares were subject to stock options outstanding as of that date, bringing the total number of shares subject to stock options outstanding and those remaining available for issue to 13,255,219 shares of common stock as of December 31, 2013. The Plan allows the issuance of incentive stock options, nonqualified stock options, and stock purchase rights. The exercise price of options is determined by the Company’s board of directors, but incentive stock options must be granted at an exercise price equal to the fair market value of the Company’s common stock as of the grant date. Options historically granted have generally become exercisable over four years and expire ten years from the date of grant.
	The fair value of stock options granted in 2013 and 2012 were estimated using the Black-Scholes option pricing model. A summary of the assumptions used in determining the fair value of options follows:
			2013			2012
	Expected volatility			174	%		141	%
	Expected option life in years			10			10
	Expected dividend yield			0	%		0	%
	Risk-free interest rate			1.87	%		1.84	%
	Weighted average fair value per option at grant date		$	0.69		$	0.76
	33
	Application of the Black-Scholes option pricing model involves assumptions that are judgmental and affect compensation expense. Historical information is the primary basis for the selection of expected volatility, expected option life and expected dividend yield. Expected volatility is based on the most recent historical period equal to the expected life of the option. The risk-free interest rate is based on yields of U.S. Treasury zero-coupon issues with a term equal to the expected life of the option on the date the stock options were granted.
	Stock option activity for each of the two years ended December 31 is as follows:
			2013						2012
						Weighted						Weighted
						Average						Average
						Exercise						Exercise
			Shares			Price			Shares			Price
	Outstanding at beginning of year			6,463,206		$	0.67			6,862,167		$	0.7
	Options granted			977,276		$	0.5			96,500		$	0.79
	Options exercised			(580,540	)	$	0.31			(326,461	)	$	0.28
	Options expired/forfeited			(328,750	)	$	1.15			(169,000	)	$	2.6
	Outstanding at end of year			6,531,192		$	0.66			6,463,206		$	0.67
	Options vested and exercisable at year-end			5,463,963		$	0.58			4,373,807		$	0.5
	Options available for grant at year-end			6,724,027						6,792,013
	Aggregate intrinsic value – options exercised		$	236,059					$	93,088
	Aggregate intrinsic value – options outstanding		$	625,412					$	1,332,965
	Aggregate intrinsic value – options vested and exercisable		$	612,946					$	1,208,831
	Options unvested, balance at beginning of year (1)			1,819,087		$	1.18			—			—
	Options granted (1)			977,276		$	0.5			—			—
	Vested (1)			(1,582,034	)	$	0.8			—			—
	Cancelled/Forfeited			(147,100		$	1.22			—			—
	Balance, end of period (1)			1,067,229		$	1.12			—			—
	-1	Includes awards not captured in valuation fragments
	The Company estimates the fair value of stock options using a Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options include the expected term, expected volatility of the Company’s common stock, the risk free interest rate, option forfeiture rates, and dividends, if any. The expected term of the options is based upon the historical term until exercise or expiration of all granted options. The expected volatility is derived from the historical volatility of the Company’s stock on the OTCBB market for a period that matches the expected term of the option. The risk-free interest rate is the constant maturity rate published by the U.S. Federal Reserve Board that corresponds to the expected term of the option.
	Warrants
	In July 2012, the Company completed a warrant exchange program, pursuant to which it exchanged warrants exercisable for a total of 15,941,640 shares of common stock, or 56.29% of the warrants eligible to participate, for three classes of new warrants. These exchanges resulted in a deemed dividend of approximately $2.66 million, reflected as a non-cash disclosure in this financial statement of cash flows. The first class of new warrants expired on September 17, 2012 and carried an exercise price of $0.40, $0.45 or $0.50, depending on the date exercised. The second class of new warrants carries a one-year extension from the original expiration date and is exercisable at $0.65. The third class of new warrants carries a two-year extension from the original expiration date and is exercisable at $0.80.
	In November 2013, the Company completed a warrant exchange program, pursuant to which it exchanged warrants exercisable for a total of 3,560,869 shares of common stock, or 99% of the warrants eligible to participate. These exchanges resulted in a deemed dividend of approximately $537,000, reflected as a non-cash disclosure in this financial statement of cash flows.
	The following table summarizes transactions involving the Company’s outstanding warrants to purchase common stock for the year ended December 31, 2013:
			Warrants (Underlying Shares)
	Outstanding, January 1, 2013			20,801,512
	Issuances			6,874,929
	Canceled / Expired			(10,349,659	)
	Exercised			(6,067,843	)
	Outstanding, December 31, 2013			11,258,939
	The Company had the following shares reserved for the warrants as of December 31, 2013:
	Warrants		Exercise Price		Expiration Date
	(Underlying Shares)
	29,656	-1	$0.65 per share		1-Mar-14
	471,856	-1	$0.80 per share		26-Jul-14
	3,590,522	-1	$0.80 per share		1-Mar-15
	6,790	-2	$1.01 per share		10-Sep-15
	439,883	-3	$0.68 per share		31-Mar-16
	285,186	-4	$1.05 per share		20-Nov-16
	1,858,089	-5	$1.08 per share		23-May-18
	5,016,840	-6	$0.40 per share		23-May-18
__________
(1)     Consists of outstanding warrants issued in connection with a warrant exchange program in June 2012.
	-2	Consists of outstanding warrants issued in conjunction with a private placement on September 10, 2010.
	-3	Consists of outstanding warrants issued in conjunction with a buy back of our minority interest in December 2012, which were issued in February 2014.
	-4	Consists of outstanding warrants issued in conjunction with a private placement on November 21, 2011.
	-5	Consists of outstanding warrants issued in conjunction with a private placement on May 24, 2013.
	-6	Consists of outstanding warrants issued in conjunction with a private placement on May 24, 2013. Underlying shares increased from 1,858,089 to 5,016,840, and exercise price decreased from $1.08 per share to $0.40 per share, pursuant to the terms of the warrants, as a result of the 2013 warrant exchange program.

5_Income_Taxes

5. Income Taxes	12 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
5. Income Taxes	'
	The Company has incurred net operating losses (“NOLs”) since inception. As of December 31, 2013, the Company had NOL carryforwards available through 2033 of approximately $59.8 million to offset its future income tax liability. The NOL carryforwards began to expire in 2008. The Company has recorded a valuation allowance for all deferred tax assets related to the NOLs. Utilization of existing NOL carry forwards may be limited in future years based on significant ownership changes. The Company is in the process of analyzing its NOLs and has not determined if it is subject to any restrictions in the Internal Revenue Code that could limit the future use of NOL.
	Components of deferred taxes are as follows at December 31 (in thousands):
		2013			2012
	Deferred tax assets:	$	287		$	277
	Net operating loss carry forwards		22,737			23,474
	Deferred tax liabilities:
	Intangible assets and other		—			—
			23,025			23,751
	Valuation allowance		(23,025	)		(23,751	)
		$	0		$	0
	The following is a summary of the items that caused recorded income taxes to differ from taxes computed using the statutory federal income tax rate for the years ended December 31:
		2013			2012
	Statutory federal tax rate		34	%		34	%
	State taxes, net of federal benefit		4			4
	Nondeductible expenses		—			—
	Valuation allowance		(38	)		(38	)
			0	%		0	%

6_Commitments_and_Contingencie

6. Commitments and Contingencies	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
6. Commitments and Contingencies	'
	Operating Leases
	In December 2009, the Company moved its offices, which comprise its administrative, research and development, marketing and production facilities to 5835 Peachtree Corners East, Suite D, Norcross, Georgia 30092. The Company leases approximately 23,000 square feet under a lease that expires in June 2017. The fixed monthly lease expense is approximately $15,000 plus common charges. The Company also leases office and automotive equipment under operating lease agreements with monthly payments ranging from $275 to $1,960.  These leases expire at various dates through April 2016.  Future minimum rental payments at December 31, 2013 under non-cancellable operating leases for office space and equipment are as follows (in thousands):
		Year		Amount
				(,000)
		2014	$	207
		2015		211
		2016		201
		2017		98
		Total	$	717
	Rental expense was approximately $170,000 in 2013 and 2012.
	Litigation and Claims
	For the years ended December 31, 2013 and 2012, there was no accrual needed for any potential losses related to pending litigation.
	Contracts
	Under the Company’s prior collaboration agreements with Konica Minolta related to the development of lung and esophageal cancer detection products, the Company received approximately $400,000 and $1.3 million, respectively, in 2012. In February 2013, the Company replaced its existing agreements with Konica Minolta with a new agreement, pursuant to which, subject to the payment of a nominal license fee due upon FDA approval, Konica Minolta has granted the Company a five-year, world-wide, non-transferable and non-exclusive right and license to manufacture and to develop a non-invasive esophageal cancer detection product from Konica Minolta and based on the Company’s biophotonic technology platform. The license permits the Company to use certain related intellectual property of Konica Minolta. In return for the license, the Company has agreed to pay Konica Minolta a royalty for each licensed product the Company sells.

7_License_and_Technology_Agree

7. License and Technology Agreements	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
7. License and Technology Agreements	'
	As part of the Company’s efforts to conduct research and development activities and to commercialize potential products, the Company, from time to time, enters into agreements with certain organizations and individuals that further those efforts but also obligate the Company to make future minimum payments or to remit royalties ranging from 1% to 3% of revenue from the sale of commercial products developed from the research. The Company generally is required to make minimum royalty payments for the exclusive license to develop certain technology.

8_NOTES_PAYABLE

8. NOTES PAYABLE	12 Months Ended
	Dec. 31, 2013
Debt Disclosure [Abstract]	'
8. NOTES PAYABLE	'
	Short Term Notes Payable
	At December 31, 2012, the Company maintained a note payable to IQMS, an enterprise resources planning software provider, of approximately $34,000, as well as a note to Premium Assignment Corporation, an insurance premium financing company, of approximately $33,000. These notes were 8 and 12 month, straight-line amortizing loans dated June 29, 2012 and July 4, 2012, respectively, with monthly principal and interest payments of approximately $4,300 and $11,000 per month, respectively. The notes carried annual interest rates ranging between 5-6%. The Premium Assignment Corporate note was paid in full during the quarter ended March 31, 2013. The IQMS note was paid in full during the quarter ended September 30, 2013.
	At December 31, 2013, the Company maintained an additional note payable to Premium Assignment Corporation of approximately $35,000. This note is an 8 month, straight-line amortizing loan dated July 4, 2013 with monthly principal and interest payments of approximately $12,000 per month. The note carries an annual interest rate of 5.34%.
	Notes Payable
	At December 31, 2012, the Company was past due on two short-term notes totaling approximately $419,000 of principal and accrued interest. Interest charged on these notes prior to amendment ranged between 15-18%. On February 27, 2013, the Company renegotiated one of the two past due notes. The new note accrued interest at 6% and was paid in full during the quarter ended June 30, 2013. On April 16, 2013, the Company renegotiated the other note. The renegotiated note accrues interest at 9.0%, requires monthly payments of $10,000, including interest, and matures November 2015. The balance due on this note was approximately $208,000 at December 31, 2013, of which $103,000 is payable during the year ending December 31, 2014 and $105,000 is payable during the year ending December 31, 2015.

9_Related_Party_Transactions

9. Related Party Transactions	12 Months Ended
	Dec. 31, 2013
Related Party Transactions [Abstract]	'
9. Related Party Transactions	'
	None

10_Valuation_and_Qualifying_Ac

10. Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2013
Valuation and Qualifying Accounts [Abstract]	'
10. Valuation and Qualifying Accounts	'
	Allowance for Doubtful Accounts
	The Company has the following allowances for doubtful accounts (in thousands):
		Year Ended
		December 31,
		2013		2012
	Beginning balance	$	12	$	20
	Additions / (Adjustments)		6		(8	)
	Balance	$	18	$	12
	Inventory Reserves
	The Company has the following reserves for inventory balance (in thousands):
		Year Ended
		December 31,
		2013		2012
	Beginning balance	$	52	$	64
	Additions / (Adjustments)		132		(12	)
	Balance	$	184	$	52

11_LOSS_PER_COMMON_SHARE

11. LOSS PER COMMON SHARE	12 Months Ended
	Dec. 31, 2013
Earnings Per Share [Abstract]	'
11. LOSS PER COMMON SHARE	'
	Basic net loss per share attributable to common stockholders amounts are computed by dividing the net loss plus preferred stock dividends and deemed dividends on preferred stock by the weighted average number of shares outstanding during the period.
	On December 17, 2012, the Company entered into a buy-back agreement with the holder of a 51 percent interest in the Company’s subsidiary, InterScan, Inc., pursuant to which the original agreement, dated February 28, 2011, was canceled and ownership of InterScan reverted back to the Company. InterScan is a non-active subsidiary of the Company.

12_Subsequent_Events

12. Subsequent Events	12 Months Ended
	Dec. 31, 2013
Notes to Financial Statements	'
12. Subsequent Events	'
	On January 7, 2014 the Company announced the appointment of Gene Cartwright, 59, as Chief Executive Officer, effective January 6, 2014. Dr. Cartwright replaced Mark L. Faupel, who has transitioned to the role of Chief Scientific Officer. In accordance with Dr. Faupel’s employment agreement, all outstanding unvested stock options became fully vested on January 6, 2014, resulting in compensation expense of approximately $111,000. The Company also owes Dr. Faupel additional compensation payable of $40,000, as a result of the Company’s employment agreement with Dr. Cartwright.
	Effective January 31, 2014, Ronald W. Allen resigned from the Board of Directors of the Company.
	Between February 1 and March 25, 2014, the Company received cash advances from certain affiliates totaling about $175,000.

2_SIGNIFICANT_ACCOUNTING_POLIC1

2. SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2013
Accounting Policies [Abstract]	'
Use of Estimates	'
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant areas where estimates are used include the allowance for doubtful accounts, inventory valuation and input variables for Black-Scholes calculations.
Principles of Consolidation	'
	The accompanying consolidated financial statements include the accounts of Guided Therapeutics, Inc. and its wholly owned subsidiary. As disclosed in Note 4, the Company purchased the remaining 49% interest in its subsidiary during December 2012.
Cash Equivalents	'
	The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be a cash equivalent.
Concentration of Credit Risk	'
	The Company, from time to time during the years covered by these consolidated financial statements, may have bank balances in excess of its insured limits. Management has deemed this a normal business risk.
Inventory Valuation	'
	All inventories are stated at lower of cost or market, with cost determined substantially on a “first-in, first-out” basis.  Selling, general, and administrative expenses are not inventoried, but are charged to expense when purchased. At December 31, 2013 and December 31, 2012, our inventories were as follows (in thousands):
		December 31,			December 31,
		2013			2012
	Raw materials	$	1,013		$	518
	Work in process		268			21
	Finished goods		96			37
	Inventory reserve		(184	)		(52	)
	Total	$	1,193		$	524
Property and equipment	'
	Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years. Leasehold improvements are depreciated at the shorter of the useful life of the asset or the remaining lease term. Depreciation expense is included in general and administrative expense on the statement of operations. Expenditures for repairs and maintenance are expensed as incurred. Property and equipment are summarized as follows at December 31, 2013 and 2012 (in thousands):
		Year Ended
		December 31,
		2013			2012
	Equipment	$	1,277		$	1,196
	Software		737			730
	Furniture and fixtures		124			124
	Leasehold Improvement		189			170
			2,327			2,220
	Less accumulated depreciation		(1,407	)		(946	)
	Total	$	920		$	1,274
Patent Costs (Principally Legal Fees)	'
	Costs incurred in filing, prosecuting, and maintaining patents are recurring, and expensed as incurred. Maintaining patents are expensed as incurred as the Company has not yet received FDA approval and recovery of these costs is uncertain. Such costs aggregated approximately $75,000 and $46,000 in 2013 and 2012, respectively.
Accounts Receivable	'
	The Company performs periodic credit evaluations of its customers’ financial conditions and generally does not require collateral. The Company reviews all outstanding accounts receivable for collectability on a quarterly basis. An allowance for doubtful accounts is recorded for any amounts deemed uncollectable. The Company does not accrue interest receivable on past due accounts receivable.
Capitalized Costs of Internally Developed Software (FASB 985):	'
	Costs of producing product masters incurred subsequent to establishing technological feasibility are capitalized. Those costs include coding and testing performed subsequent to establishing technological feasibility.
	Software production costs for computer software that is to be used as an integral part of a product or process are not capitalized until technological feasibility has been established for the software and all research and development activities for the other components of the product have been completed.
	Capitalization of computer software costs ceases when the product is available for general release to customers. Costs of maintenance and customer support are charged to expense when related revenue is recognized or when those costs are incurred, whichever occurs first.
	Costs of internally developed software are capitalized during the development stage of the software. The cost will be transferred to property and equipment and will be depreciated over the expected life of the software, which is estimated to be three years once the software becomes functional.
Other Assets	'
	Other assets primarily consist of long-term deposits for various tooling projects that are being constructed for the Company. At December 31, 2013 and 2012, such balances were approximately $326,000 and $283,000, respectively.
Accrued Liabilities	'
	Accrued liabilities are summarized as follows at December 31, 2013 and 2012 (in thousands):
		As of
		December 31,
		2013			2012
	Accrued compensation	$	426		$	706
	Accrued professional fees		116			191
	Deferred rent		68			77
	Other accrued expenses		113			64
	Total	$	723		$	1,038
Revenue Recognition	'
	Revenue from the sale of the Company’s products is recognized upon shipment of such products to its customers. The Company recognizes revenue from contracts on a straight line basis, over the terms of the contracts. The Company recognizes revenue from grants based on the grant agreements, at the time the expenses are incurred.
Significant Customers	'
	In 2013 and 2012, the majority of the Company’s revenues were from three and two customers, respectively. Revenue from these customers totaled approximately $653,000 or 65% and approximately $2.9 million or 85% of total revenue for the year ended December 31, 2013 and 2012, respectively. Accounts receivable due from the customers represents 27% and 48% as of December 31, 2013 and 2012, respectively.
Deferred Revenue	'
	The Company defers payments received as revenue until earned based on the related contracts on a straight line basis, over the terms of the contract.
Research and Development	'
	Research and development expenses consist of expenditures for research conducted by the Company and payments made under contracts with consultants or other outside parties and costs associated with internal and contracted clinical trials. All research and development costs are expensed as incurred.
Income Taxes	'
	The Company uses the liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. Management provides valuation allowances against the deferred tax assets for amounts that are not considered more likely than not to be realized.
Uncertain Tax Positions	'
	Effective January 1, 2007 the Company adopted ASC guidance regarding accounting for uncertainty in income taxes. This guidance clarifies the accounting for income taxes by prescribing the minimum recognition threshold an income tax position is required to meet before being recognized in the financial statements and applies to all income tax positions.  Each income tax position is assessed using a two-step process.  A determination is first made as to whether it is more likely than not that the income tax position will be sustained, based upon technical merits, upon examination by the taxing authorities.  If the income tax position is expected to meet the more likely than not criteria, the benefit recorded in the financial statements equals the largest amount that is greater than 50% likely to be realized upon its ultimate settlement.  At December 31, 2013 and 2012, there were no uncertain tax positions.
	The Company is current with its federal and applicable state tax returns filings. Although we have been experiencing recurring losses, we are obligated to file tax returns for compliance with Internal Revenue Service (“IRS”) regulations and that of applicable state jurisdictions. As of December 31, 2013, the Company has approximately $59.8 million of net operating loss eligible to be carried forward for tax purposes at federal and applicable states level.
	None of the Company’s federal or state income tax returns are currently under examination by the IRS or state authorities.  However, fiscal years 2010 and later remain subject to examination by the IRS and applicable states.
Warrants	'
	The Company has issued warrants, which allow the warrant holder to purchase one share of stock at a specified price for a specified period of time. The Company records equity instruments including warrants issued to non-employees based on the fair value at the date of issue. The fair value of warrants classified as equity instruments at the date of issuance is estimated using the Black-Scholes Model. The fair value of warrants classified as liabilities at the date of issuance is estimated using the Monte Carlo Simulation model.
Stock Based Compensation	'
	The Company records compensation expense related to options granted to non-employees based on the fair value of the award.
	Compensation cost is recorded as earned for all unvested stock options outstanding at the beginning of the first year based upon the grant date fair value estimates, and for compensation cost for all share-based payments granted or modified subsequently based on fair value estimates.
	For the years ended December 31, 2013 and 2012, share-based compensation for options attributable to employees and officers were approximately $824,000 and $645,000, respectively. These amounts have been included in the Company’s statements of operations. Compensation costs for stock options which vest over time are recognized over the vesting period. As of December 31, 2013, the Company had approximately $865,000 of unrecognized compensation costs related to granted stock options to be recognized over the remaining vesting period of approximately three years.

2_SIGNIFICANT_ACCOUNTING_POLIC2

2. SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Inventory Valuation	'
		December 31,			December 31,
		2013			2012
	Raw materials	$	1,013		$	518
	Work in process		268			21
	Finished goods		96			37
	Inventory reserve		(184	)		(52	)
	Total	$	1,193		$	524
Property and Equipment	'
		Year Ended
		December 31,
		2013			2012
	Equipment	$	1,277		$	1,196
	Software		737			730
	Furniture and fixtures		124			124
	Leasehold Improvement		189			170
			2,327			2,220
	Less accumulated depreciation		(1,407	)		(946	)
	Total	$	920		$	1,274
Accrued Liabilities	'
		As of
		December 31,
		2013			2012
	Accrued compensation	$	426		$	706
	Accrued professional fees		116			191
	Deferred rent		68			77
	Other accrued expenses		113			64
	Total	$	723		$	1,038

3_Fair_Value_of_Financial_Inst1

3. Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2013
Fair Value Of Financial Instruments Tables	'
Schedule of fair value measurements	'
		Description		Level 1		Level 2		Level 3			Total			Asset/(Liability)
														Total
		Warrants	$	—	$	—	$	(1,548	)	$	(1,548	)	$	(1,548	)

4_Stockholders_Equity_Tables

4. Stockholders Equity (Tables)	12 Months Ended
	Dec. 31, 2013
Equity [Abstract]	'
Schedule of assumptions used to determine fair value of stock options	'
			2013			2012
	Expected volatility			174	%		141	%
	Expected option life in years			10			10
	Expected dividend yield			0	%		0	%
	Risk-free interest rate			1.87	%		1.84	%
	Weighted average fair value per option at grant date		$	0.69		$	0.76
Stock option activity	'
			2013						2012
						Weighted						Weighted
						Average						Average
						Exercise						Exercise
			Shares			Price			Shares			Price
	Outstanding at beginning of year			6,463,206		$	0.67			6,862,167		$	0.7
	Options granted			977,276		$	0.5			96,500		$	0.79
	Options exercised			(580,540	)	$	0.31			(326,461	)	$	0.28
	Options expired/forfeited			(328,750	)	$	1.15			(169,000	)	$	2.6
	Outstanding at end of year			6,531,192		$	0.66			6,463,206		$	0.67
	Options vested and exercisable at year-end			5,463,963		$	0.58			4,373,807		$	0.5
	Options available for grant at year-end			6,724,027						6,792,013
	Aggregate intrinsic value – options exercised		$	236,059					$	93,088
	Aggregate intrinsic value – options outstanding		$	625,412					$	1,332,965
	Aggregate intrinsic value – options vested and exercisable		$	612,946					$	1,208,831
	Options unvested, balance at beginning of year (1)			1,819,087		$	1.18			—			—
	Options granted (1)			977,276		$	0.5			—			—
	Vested (1)			(1,582,034	)	$	0.8			—			—
	Cancelled/Forfeited			(147,100		$	1.22			—			—
	Balance, end of period (1)			1,067,229		$	1.12			—			—
Company’s outstanding warrants to purchase common stock	'
			Warrants (Underlying Shares)
	Outstanding, January 1, 2013			20,801,512
	Issuances			6,874,929
	Canceled / Expired			(10,349,659	)
	Exercised			(6,067,843	)
	Outstanding, December 31, 2013			11,258,939
Schedule of shares reserved for warrants	'
	Warrants		Exercise Price		Expiration Date
	(Underlying Shares)
	29,656	-1	$0.65 per share		1-Mar-14
	471,856	-1	$0.80 per share		26-Jul-14
	3,590,522	-1	$0.80 per share		1-Mar-15
	6,790	-2	$1.01 per share		10-Sep-15
	439,883	-3	$0.68 per share		31-Mar-16
	285,186	-4	$1.05 per share		20-Nov-16
	1,858,089	-5	$1.08 per share		23-May-18
	5,016,840	-6	$0.40 per share		23-May-18

5_Income_Taxes_Tables

5. Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2013
Income Tax Disclosure [Abstract]	'
Components of deferred taxes	'
		2013			2012
	Deferred tax assets:	$	287		$	277
	Net operating loss carry forwards		22,737			23,474
	Deferred tax liabilities:
	Intangible assets and other		—			—
			23,025			23,751
	Valuation allowance		(23,025	)		(23,751	)
		$	0		$	0
Income taxes	'
		2013			2012
	Statutory federal tax rate		34	%		34	%
	State taxes, net of federal benefit		4			4
	Nondeductible expenses		—			—
	Valuation allowance		(38	)		(38	)
			0	%		0	%

6_Commitments_and_Contingencie1

6. Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Schedule of operating leases	'
		Year		Amount
				(,000)
		2014	$	207
		2015		211
		2016		201
		2017		98
		Total	$	717

10_Valuation_and_Qualifying_Ac1

10. Valuation and Qualifying Accounts (Tables)	12 Months Ended
	Dec. 31, 2013
Valuation and Qualifying Accounts [Abstract]	'
Schedule of Allowance for Doubtful Accounts	'
		Year Ended
		December 31,
		2013		2012
	Beginning balance	$	12	$	20
	Additions / (Adjustments)		6		(8	)
	Balance	$	18	$	12
Schedule of Inventory Reserves	'
		Year Ended
		December 31,
		2013		2012
	Beginning balance	$	52	$	64
	Additions / (Adjustments)		132		(12	)
	Balance	$	184	$	52

1_BASIS_OF_PRESENTATION_Detail

1. BASIS OF PRESENTATION (Details Narrative) (USD $)	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'
Accumulated deficit	$103,000,000
Working capital	$268,000

2_SIGNIFICANT_ACCOUNTING_POLIC3

2. SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Accounting Policies [Abstract]	'	'
Raw materials	$1,013	$518
Work in process	268	21
Finished goods	96	37
Inventory reserve	-52	'
Total	$1,193	$524

2_Summary_of_Significant_Accou

2. Summary of Significant Accounting Policies (Details 1) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Gross Value of property plant and equipment	$2,327	$2,220
Less: accumulated depreciation and amortization	-1,407	-946
Total property and equipment, net	920	1,274
Equipment	'	'
Gross Value of property plant and equipment	1,277	1,196
Software	'	'
Gross Value of property plant and equipment	737	730
Furniture and fixtures	'	'
Gross Value of property plant and equipment	124	124
Leasehold improvements	'	'
Gross Value of property plant and equipment	$189	$170

2_SIGNIFICANT_ACCOUNTING_POLIC4

2. SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Organization, Consolidation and Presentation of Financial Statements [Abstract]	'	'
Accrued compensation	$426	$706
Accrued professional fees	116	191
Deferred rent	68	77
Other accrued expenses	113	64
Total	$723	$1,038

2_SIGNIFICANT_ACCOUNTING_POLIC5

2. SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Accounting Policies [Abstract]	'	'
Patent Costs	$75,000	$75,000
Other assets	326,000	283,000
Revenue from two entities	$653,000	$2,900,000
Percentage of revenue from two entities	65.00%	85.00%
Receivables From Customer	27.00%	48.00%

3_Fair_Value_of_Financial_Inst2

3. Fair Value of Financial Instruments (Details)	Dec. 31, 2013
Warrants	-1,548
Level 1	'
Warrants	'
Level 2	'
Warrants	'
Level 3	'
Warrants	-1,548

3_Stockholders_Equity_Details

3. Stockholders’ Equity (Details) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Equity [Abstract]	'	'
Expected volatility	174.00%	141.00%
Expected option life in years	'10 years	'10 years
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	1.87%	1.84%
Weighted average fair value per option at grant date	$0.69	$0.76

3_STOCKHOLDERS_EQUITY_Details_

3. STOCKHOLDERS' EQUITY (Details 1) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Number of stock options	'	'
Outstanding beginning balance, Shares	6,463,206	6,862,167
Granted, Shares	977,276	96,500
Expired/Forfeited, Shares	-328,750	-169,000
Outstanding ending balance, Shares	6,531,192	6,463,206
Vested and exercisable ending balance	5,463,963	4,373,807
Options available for grant at year-end	6,724,027	6,792,013
Aggregate intrinsic value – options exercised	$236,059	$93,088
Aggregate intrinsic value – options outstanding	625,412	1,332,965
Aggregate intrinsic value – options vested and Exercisable	612,946	1,208,831
Weighted average exercise price	'	'
Outstanding beginning balance, Weighted average exercise price	$0.67	$0.70
Granted, Weighted average exercise price	$0.50	$0.79
Exercised, Weighted average exercise price	'	$0.28
Expired, Weighted average exercise price	$1.22	$2.60
Outstanding ending balance, Weighted average exercise price	$1.12	$0.67
Vested and exercisable ending balance	$0.80	$0.50
Options Unvested	'	'
Options unvested, beginning balance	1,819,087	'
Options granted	977,276	'
Options Vested	-1,582,034	'
Options Cancelled/Forfeited	($147,100)	'
Balance, end of period	1,067,229	'

3_STOCKHOLDERS_EQUITY_Details_1

3. STOCKHOLDERS' EQUITY (Details 2) (Warrant [Member])	12 Months Ended
	Dec. 31, 2013
Warrant [Member]	'
Outstanding beginning balance	20,801,512
Issuances	6,874,929
Canceled / Expired	-10,349,659
Exercised	-6,067,843
Outstanding ending balance	11,258,939

3_STOCKHOLDERS_EQUITY_Details_2

3. STOCKHOLDERS' EQUITY (Details 3) (USD $)	Dec. 31, 2013
Warrants 1	'
Warrants	$29,656
Exercise Price	$0.65
Expiration Date	'March 1, 2014
Warrants 2	'
Warrants	471,856
Exercise Price	$0.80
Expiration Date	'July 26, 2014
Warrants 3	'
Warrants	3,590,522
Exercise Price	$0.80
Expiration Date	'March 1, 2015
Warrants 4	'
Warrants	6,790
Exercise Price	$1.01
Expiration Date	'September 10, 2015
Warrants 5	'
Warrants	439,883
Exercise Price	$0.68
Expiration Date	'March 31, 2016
Warrants 6	'
Warrants	285,186
Exercise Price	$1.05
Expiration Date	'November 20, 2016
Warrants 7	'
Warrants	1,858,089
Exercise Price	$1.08
Expiration Date	'May 23, 2018
Warrants 8	'
Warrants	$5,016,840
Exercise Price	$0.40
Expiration Date	'May 23, 2018

3_STOCKHOLDERS_EQUITY_Details_3

3. STOCKHOLDERS' EQUITY (Details Narrative) (USD $)	Dec. 31, 2013	Dec. 31, 2012
Stockholders Equity Details Narrative	'	'
Par value	$0.00	$0.00
Authorized preferred stock	3	3
Preferred stock par value	$0.00	$0.00
Shares Available under the plan	6,724,027	6,792,013
Share of common stock issued	70,479	62,282

4_Income_Taxes_Details

4. Income Taxes (Details) (USD $)	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Deferred tax assets:	'	'
Deferred tax assets	$287	$277
Net operating loss carryforwards	22,737	23,474
Deferred tax liabilities:	'	'
Intangible assets and other	'	'
Gross	23,025	23,751
Valuation allowance	-23,025	-23,751
Net	$0	$0

4_Income_taxes_Details_1

4. Income taxes (Details 1)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Tax Disclosure [Abstract]	'	'
Statutory federal tax rate	34.00%	34.00%
State taxes, net of federal benefit	4.00%	4.00%
Nondeductible expenses	'	'
Valuation allowance	-38.00%	-38.00%
Effective rate	0.00%	0.00%

4_Income_Taxes_Details_Narrati

4. Income Taxes (Details Narrative) (USD $)	12 Months Ended
	Dec. 31, 2013	Dec. 31, 2012
Income Taxes Details Narrative	'	'
NOL carryforwards	'	$59,800,000
NOL carryforwards available through	'2008-2033	'

5_Commitments_and_Contingencie

5. Commitments and Contingencies (Details) (USD $)	Dec. 31, 2013
In Thousands, unless otherwise specified
Commitments and Contingencies Disclosure [Abstract]	'
2014	$207
2015	211
2016	201
2017	98
Total	$717

9_Valuation_and_Qualifying_Acc

9. Valuation and Qualifying Accounts (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Valuation and Qualifying Accounts [Abstract]	'	'
Beginning balance	$12	$20
Additions / (Adjustments)	6	-8
Balance	$18	$12

9_Valuation_and_Qualifying_Acc1

9. Valuation and Qualifying Accounts (Details 1) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2013	Dec. 31, 2012
Valuation and Qualifying Accounts [Abstract]	'	'
Beginning balance	$52	$64
Additions / (Adjustments)	132	-12
Balance	$184	$52