Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Jun. 30, 2014 | |
Document And Entity Information | ' |
Entity Registrant Name | 'GUIDED THERAPEUTICS INC |
Entity Central Index Key | '0000924515 |
Document Type | 'S-1 |
Document Period End Date | 30-Jun-14 |
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 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
CURRENT ASSETS | ' | ' | ' |
Cash and cash equivalents | $485 | $613 | $1,044 |
Accounts receivable, net of allowance for doubtful accounts of $25 and $18 at June 30, 2014 and December 31, 2013 and December 31, 2012, respectively | 233 | 133 | 107 |
Inventory, net of reserves of $ 119 and $184 and $52, at June 30, 2014 and December 31, 2013 and December 31.2012, respectively. | 1,119 | 1,193 | 524 |
Other current assets | 13 | 101 | 198 |
Total current assets | 1,850 | 2,040 | 1,873 |
Property and equipment, net | 804 | 920 | 1,274 |
Other assets | 343 | 356 | 331 |
Debt issuance cost, net | 825 | 0 | ' |
Total noncurrent assets | 1,972 | 1,276 | 1,605 |
TOTAL ASSETS | 3,822 | 3,316 | 3,478 |
CURRENT LIABILITIES: | ' | ' | ' |
Short-term notes payable | 282 | 35 | 79 |
Current portion of long-term note payable | 160 | 109 | 4 |
Notes payable - past due | ' | ' | 419 |
Accounts payable | 1,063 | 891 | 765 |
Accrued liabilities | 980 | 723 | 1,038 |
Deferred revenue | 28 | 14 | 40 |
Total current liabilities | 2,513 | 1,772 | 2,345 |
LONG-TERM LIABILITIES: | ' | ' | ' |
Warrants, at fair value | 1,052 | 1,548 | 0 |
Long-term debt payable, less current portion | 4 | 103 | ' |
Convertible Debt, net of discount | 2,747 | 0 | ' |
Total long-term liabilities | 3,803 | 1,651 | 0 |
TOTAL LIABILITIES | 6,316 | 3,423 | 2,345 |
STOCKHOLDERS' EQUITY : | ' | ' | ' |
Series B convertible preferred stock, $.001 par value; 3,000 shares authorized, 1,532 and 1,737 and zero shares issued and outstanding as of June 30, 2014 and December 31, 2013 and December 31, 2012, respectively (liquidation preference of $1.5 million and $2.1 million and 0 as of June 30, 2014 and December 31, 2013 and 2012, respectively). | 813 | 1,139 | 0 |
Common stock, $.001 Par value; 145,000,000 shares authorized, 75,495,469 and 70,478,961 and 62,282 shares issued and outstanding as of June 30, 2014 and December 31, 2013 and December 31, 2012, respectively. | 75 | 71 | 62 |
Additional paid-in capital | 103,577 | 101,840 | 93,273 |
Treasury stock, at cost | -132 | -132 | -104 |
Accumulated deficit | -106,827 | -103,025 | -92,098 |
TOTAL GUIDED THERAPEUTICS STOCKHOLDERS' EQUITY | ' | -107 | 1,133 |
TOTAL STOCKHOLDERS' EQUITY | -2,494 | -107 | 1,133 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $3,822 | $3,316 | $3,478 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | |||
CURRENT ASSETS | ' | ' | ' |
Accounts receivable, net of allowance | $25 | $18 | $12 |
Inventory, net of reserves | $119 | $184 | $52 |
STOCKHOLDERS' EQUITY : | ' | ' | ' |
Series B convertible preferred stock par value | $0.00 | $0.00 | $0.00 |
Series B convertible preferred stock shares authorized | 3,000 | 3,000 | 3,000 |
Series B convertible preferred stock, Issued | 1,532 | 1,737 | 0 |
Series B convertible preferred stock, Outstanding | 1,532 | 1,737 | 0 |
Common stock, par value | $0.00 | $0.00 | $0.00 |
Common stock, Authorized | 145,000,000 | 145,000,000 | 145,000 |
Common stock, Issued | 75,495,469 | 70,478,961 | 62,282 |
Common stock, outstanding | 75,495,469 | 70,478,961 | 62,282 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUE: | ' | ' | ' | ' | ' | ' |
Contract and grant revenue | $11 | $222 | $30 | $389 | $820 | $3,338 |
Sales - devices and disposables | 201 | 116 | 323 | 248 | 359 | 72 |
Cost of goods sold | 271 | 119 | 463 | 277 | 611 | 117 |
Gross Loss | -70 | -3 | -140 | -29 | -252 | -45 |
COSTS AND EXPENSES: | ' | ' | ' | ' | ' | ' |
Research and development | 624 | 834 | 1,231 | 1,647 | 2,742 | 3,227 |
Sales and marketing | 345 | 195 | 628 | 359 | 901 | 424 |
General and administrative | 999 | 931 | 2,137 | 1,970 | 3,533 | 3,923 |
Total | 1,968 | 1,960 | 3,996 | 3,976 | 7,174 | 7,574 |
Operating loss | -2,027 | -1,741 | -4,106 | -3,616 | -6,606 | -4,281 |
OTHER INCOME | 3 | 0 | 5 | 75 | 110 | 0 |
CHANGES IN FAIR VALUE OF WARRANTS | -81 | 0 | 461 | 0 | -674 | 0 |
INTEREST EXPENSE | -47 | -9 | -74 | -24 | -45 | -72 |
Total other income | ' | ' | ' | ' | -609 | -72 |
LOSS BEFORE INCOME TAXES | -2,152 | -1,750 | -3,714 | -3,565 | -7,215 | -4,353 |
PROVISION FOR INCOME TAXES | 0 | 0 | 0 | 0 | 0 | 0 |
NET LOSS | -2,152 | -1,750 | -3,714 | -3,565 | -7,215 | -4,353 |
PREFERRED STOCK DIVIDENDS | -41 | -1,171 | -89 | -1,171 | -3,175 | 0 |
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS | ($2,193) | ($2,921) | ($3,803) | ($4,736) | ($10,390) | ($4,353) |
BASIC AND DILUTED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS | ($0.03) | ($0.04) | ($0.05) | ($0.07) | ($0.16) | ($0.08) |
WEIGHTED AVERAGE SHARES OUTSTANDING | 72,986 | 65,675 | 72,223 | 64,678 | 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 (Unaudited) (USD $) | 6 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | ' | ' |
Net loss | ($3,714) | ($3,565) | ($7,215) | ($4,353) |
Adjustments to reconcile net loss to net cash used in operating activities | ' | ' | ' | ' |
Bad debt expense (recovery) | 22 | 7 | 7 | -3 |
Depreciation and amortization | 300 | 227 | 461 | 361 |
Stock based compensation | 546 | 569 | 824 | 645 |
Change in fair value of warrants | -496 | 0 | 674 | 0 |
Changes in operating assets and liabilities: | ' | ' | ' | ' |
Inventory | 74 | -94 | -669 | -4 |
Accounts receivable | -100 | -76 | -33 | 13 |
Other current assets | 88 | 83 | 97 | -144 |
Accounts payable | 172 | 221 | 126 | -337 |
Deferred revenue | 14 | -36 | -26 | -413 |
Accrued liabilities | 257 | -59 | 223 | 513 |
Other assets | 13 | -50 | -25 | 55 |
Total adjustments | 890 | 792 | 1,659 | 299 |
Net cash used in operating activities | -2,824 | -2,773 | -5,556 | -3,666 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | ' | ' |
Additions to fixed assets | -119 | -101 | -107 | -552 |
Net cash used in investing activities | -119 | -101 | -107 | -552 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | ' | ' |
Proceed from debt financing, net of issuance costs | 3,194 | 0 | 115 | 86 |
Net proceeds from issuance of preferred stock and warrants | 0 | 2,214 | 2,214 | 0 |
Proceeds from options and warrants exercised | 67 | 1,833 | 3,276 | 3,102 |
Payments on notes and loan payables | -446 | -237 | ' | ' |
Payments made on notes payables | ' | ' | -374 | -125 |
Net cash provided by financing activities | 2,815 | 3,810 | 5,231 | 3,063 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | -128 | 936 | -432 | -1,155 |
CASH AND CASH EQUIVALENTS, beginning of year | 613 | 1,044 | 1,044 | 2,200 |
CASH AND CASH EQUIVALENTS, end of period | 485 | 1,980 | 613 | 1,044 |
SUPPLEMENTAL SCHEDULE OF: | ' | ' | ' | ' |
Cash paid for Interest | 20 | 9 | 31 | 48 |
NONCASH INVESTING AND FINANCING ACTIVITIES: | ' | ' | ' | ' |
Acquisition of minority interest | ' | ' | 0 | 104 |
Conversion of accrued expenses into common stock / options | 66 | 0 | 126 | 162 |
Deemed dividends on preferred stock | 89 | 1,171 | 3,148 | 0 |
Purchase of fixed assets by issuing notes payable | ' | ' | 0 | 50 |
Issuance of common stock as board compensation | 0 | 463 | 463 | 0 |
Deemed dividends in the form of warrants to purchase common stock. | ' | ' | $537 | $2,656 |
1_BASIS_OF_PRESENTATION
1. BASIS OF PRESENTATION | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
1. BASIS OF PRESENTATION | ' | ' |
The accompanying unaudited condensed consolidated financial statements included herein have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim financial reporting and with the instructions to Form 10-Q and Article 10 of Regulation S-X by Guided Therapeutics, Inc. (formerly SpectRx, Inc.), together with its wholly owned subsidiary InterScan, Inc., (“InterScan”) (formerly Guided Therapeutics, Inc.), collectively referred to herein as the “Company”. Accordingly, they do not include all information and footnotes required by GAAP for complete financial statements. These statements reflect adjustments, all of which are of a normal, recurring nature, and which are, in the opinion of management, necessary to present fairly the Company’s financial position as of June 30, 2014, results of operations for the three and six months ended June 30, 2014 and 2013, and cash flows for the six months ended June 30, 2014 and 2013. The results of operations for the three and six months ended June 30, 2014 are not necessarily indicative of the results for a full fiscal year. Preparing financial statements requires the Company’s management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and disclosure of contingent assets and liabilities. Actual results could differ from those estimates. These financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2013. | ||
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 June 30, 2014, it had an accumulated deficit of approximately $106.8 million. Through June 30, 2014, the Company has devoted substantial resources to research and development efforts. The Company 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. | 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. | |
Going Concern | Basis of Presentation | |
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. | 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. | |
At June 30, 2014, the Company had negative working capital of approximately $618,000 and the stockholders’ deficit was approximately $2.5 million, 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. | 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. | |
The Company’s capital-raising efforts are ongoing. If sufficient capital cannot be raised by the third 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. | Going Concern | |
The Company had warrants exercisable for approximately 13.0 million shares of its common stock outstanding at June 30, 2014, with exercise prices of $0.3596 to $1.08 per share. Exercises of these warrants would generate a total of approximately $8.2 million in cash, assuming full exercise, although the Company cannot be assured that holders will exercise any warrants. | 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. | ||
Management may obtain additional funds through the public or private sale of debt or equity and through grants, if available. | ||
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. | ||
Assuming the Company receives U.S. Food and Drug Administration (the “FDA”) approval for its LuViva cervical cancer detection device in 2014, the Company currently anticipates an early 2015 product launch in the United States. However, the Company cannot be assured it will be able to launch on this timetable, or at all. Product launch outside the United States began in the second half of 2013. | ||
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 | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||
Accounting Policies [Abstract] | ' | ' | |||||||||||||||||
2. SIGNIFICANT ACCOUNTING POLICIES | ' | ' | |||||||||||||||||
The Company’s significant accounting policies were set forth in the audited financial statements and notes thereto for the year ended December 31, 2013 included in its annual report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”). | |||||||||||||||||||
Use of Estimates | |||||||||||||||||||
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. | |||||||||||||||||||
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, Monte Carlo simulations and Lattice Model calculations. | |||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||
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. | |||||||||||||||||||
The accompanying consolidated financial statements, as of and for the quarters ended June 30, 2014 and 2013, includes the accounts of Guided Therapeutics, Inc. and its wholly owned subsidiary. | |||||||||||||||||||
Cash Equivalents | |||||||||||||||||||
Accounting Standards Updates | |||||||||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be a cash equivalent. | |||||||||||||||||||
Newly effective accounting standards updates and those not effective until after June 30, 2014, are not expected to have a significant effect on the Company’s financial position or results of operations. | |||||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||||
Cash Equivalents | |||||||||||||||||||
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. | |||||||||||||||||||
The Company considers all highly liquid investments with an original maturity of three months or less when purchased to be a cash equivalent. | |||||||||||||||||||
Inventory Valuation | |||||||||||||||||||
Concentration of Credit Risk | |||||||||||||||||||
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): | |||||||||||||||||||
The Company, from time to time during the periods covered by these consolidated financial statements, may have bank balances in excess of its insured limits. Management has deemed this a normal business risk. | |||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||
Inventory Valuation | 2013 | 2012 | |||||||||||||||||
Raw materials | $ | 1,013 | $ | 518 | |||||||||||||||
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 June 30, 2014 and December 31, 2013 our inventories were as follows (in thousands): | Work in process | 268 | 21 | ||||||||||||||||
Finished goods | 96 | 37 | |||||||||||||||||
June 30, | December | Inventory reserve | (184 | ) | (52 | ) | |||||||||||||
2014 | 31, 2013 | Total | $ | 1,193 | $ | 524 | |||||||||||||
Raw materials | $ | 971 | $ | 1,013 | |||||||||||||||
Work in process | 233 | 268 | Property and Equipment | ||||||||||||||||
Finished goods | 34 | 96 | |||||||||||||||||
Inventory reserve | (119 | ) | (184 | ) | 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): | ||||||||||||||
Total | $ | 1,119 | $ | 1,193 | |||||||||||||||
Year Ended | |||||||||||||||||||
Debt Issuance Costs | December 31, | ||||||||||||||||||
2013 | 2012 | ||||||||||||||||||
Debt issuance costs incurred in securing the Company’s financing arrangements are capitalized and amortized over the term of the debt. Deferred financing costs are included in other long term assets. | Equipment | $ | 1,277 | $ | 1,196 | ||||||||||||||
Software | 737 | 730 | |||||||||||||||||
Property and equipment | Furniture and fixtures | 124 | 124 | ||||||||||||||||
Leasehold Improvement | 189 | 170 | |||||||||||||||||
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. | 2,327 | 2,220 | |||||||||||||||||
Less accumulated depreciation | (1,407 | ) | (946 | ) | |||||||||||||||
Revenues | Total | $ | 920 | $ | 1,274 | ||||||||||||||
The majority of the Company’s revenues were from product sales of approximately $323,000, grants with NIH totaling approximately $30,000, as well as other income from royalties of approximately $5,000, for the three months ended June 30, 2014. Revenue for the same period in 2013, was from product sales of approximately $248,000, grants with NIH and NCI totaling approximately $389,000, as well as other income from royalty and miscellaneous receipts of approximately $75,000 for the three months ended June 30, 2013. | Patent Costs (Principally Legal Fees) | ||||||||||||||||||
Accounts Receivable | 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. | ||||||||||||||||||
The Company performs periodic credit evaluations of its customers’ financial condition 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. | Accounts Receivable | ||||||||||||||||||
Revenue Recognition | 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. | ||||||||||||||||||
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 contract. The Company recognizes revenue from grants based on the grant agreement, at the time the expenses are incurred. | Capitalized Costs of Internally Developed Software | ||||||||||||||||||
Deferred Revenue | 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. | ||||||||||||||||||
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. | |||||||||||||||||||
Income Taxes | 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. | ||||||||||||||||||
The Company accounts for income taxes in accordance with the liability method. Under the liability method, the Company recognizes deferred assets and liabilities based upon anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be utilized against future taxable income. As of December 31, 2013, the Company had approximately $59.8 million of net operating loss (“NOL”) carry forward. There was no provision for income taxes at June 30, 2014. A full valuation allowance has been recorded related to any deferred tax assets created from the NOL. | 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. | ||||||||||||||||||
Stock Option Plan | |||||||||||||||||||
The Company measures the cost of employees services received in exchange for equity awards, including stock options, based on the grant date fair value of the awards. The cost will be recognized as compensation expense over the vesting period of the awards. | 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. | ||||||||||||||||||
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 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. | 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 | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [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: | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 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 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||
· | 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 June 30, 2014. 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 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 June 30, 2014 and December 31, 2013: | |||||||||||||||||||||||||||||||||||||||||||||||||||
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) | |||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS ( In Thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | Asset/(Liability) | Date | |||||||||||||||||||||||||||||||||||||||||||||
Total | Description | Level 1 | Level 2 | Level 3 | Total | Asset/(Liability) | |||||||||||||||||||||||||||||||||||||||||||||
Warrants | $ | — | $ | — | $ | (1,548 | ) | $ | (1,548 | ) | $ | (1,548 | ) | 31-Dec-13 | Total | ||||||||||||||||||||||||||||||||||||
Warrants | $ | — | $ | — | $ | (1,052 | ) | $ | (1,052 | ) | $ | (1,052 | ) | 30-Jun-14 | |||||||||||||||||||||||||||||||||||||
Warrants | $ | — | $ | — | $ | (1,548 | ) | $ | (1,548 | ) | $ | (1,548 | ) | ||||||||||||||||||||||||||||||||||||||
There were neither derivatives liabilities nor valuations of financial liabilities at December 31, 2012. | |||||||||||||||||||||||||||||||||||||||||||||||||||
4_STOCK_OPTIONS
4. STOCK OPTIONS | 6 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
4. STOCK OPTIONS | ' | ||||||||||||||||
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 three and six months ended June 30, 2014 , stock-based compensation for options attributable to employees, officers and directors was approximately $167,000 and $514,000, respectively. Compensation costs for stock options, which vest over time, are recognized over the vesting period. As of June 30, 2014, the Company had approximately $578,000 of unrecognized compensation cost related to granted stock options, to be recognized over the remaining vesting period of approximately three years. | |||||||||||||||||
The Company has a 1995 stock option plan (the “Plan”) approved by its stockholders for officers, directors and key employees of the Company and consultants to the Company. Participants are eligible to receive incentive and/or nonqualified stock options. The aggregate number of shares that may be granted under the Plan is 13,255,219 shares. The Plan is administered by the compensation committee of the board of directors. The selection of participants, grant of options, determination of price and other conditions relating to the exercise of options are determined by the compensation committee of the board of directors and administered in accordance with the Plan. | |||||||||||||||||
Both incentive stock options and non-qualified options granted to employees, officers and directors under the Plan are exercisable for a period of up to 10 years from the date of grant, at an exercise price that is not less than the fair market value of the common stock on the date of the grant. The options typically vest in installments of 1/48 of the options outstanding every month. Options granted to management vest based upon certain market and performance conditions. | |||||||||||||||||
A summary of the Company’s activity under the Plan as of June 30, 2014 and changes during the three months then ended is as follows: | |||||||||||||||||
Shares | Weighted | Weighted | Aggregate | ||||||||||||||
average | average | intrinsic | |||||||||||||||
exercise | remaining | value | |||||||||||||||
price | contractual | (thousands) | |||||||||||||||
(years) | |||||||||||||||||
Outstanding, January 1, 2014 | 6,531,192 | $ | 0.66 | 6.97 | $ | 625,412 | |||||||||||
Granted | 491,761 | 0.5 | |||||||||||||||
Exercised / Expired | (242,439 | ) | 0.27 | ||||||||||||||
Outstanding, June 30, 2014 | 6,780,514 | $ | 0.66 | 6.85 | $ | 629,402 | |||||||||||
Vested and exercisable, June 30, 2014 | 5,823,112 | $ | 0.62 | 5.62 | $ | 629,402 | |||||||||||
The Company estimates the fair value of stock options using a Black-Scholes and Lattice valuation models. Key input assumptions used to estimate the fair value of stock options include the expected term, expected volatility of the Company’s 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. | |||||||||||||||||
5_LITIGATION_AND_CLAIMS
5. LITIGATION AND CLAIMS | 6 Months Ended |
Jun. 30, 2014 | |
Notes to Financial Statements | ' |
5. LITIGATION AND CLAIMS | ' |
From time to time, the Company may be involved in various legal proceedings and claims arising in the ordinary course of business. Management believes that the dispositions of these matters, individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial condition. However, depending on the amount and timing of such disposition, an unfavorable resolution of some or all of these matters could materially affect the future results of operations or cash flows in a particular period. | |
As of June 30, 2014 and December 31, 2013, there was no accrual recorded for any potential losses related to pending litigation. |
5A_INCOME_TAXES
5A. INCOME TAXES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||
5A. 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_CONVERTIBLE_DEBT
6. CONVERTIBLE DEBT | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
6. CONVERTIBLE DEBT | ' | ' |
Short Term Notes Payable | ||
Short Term Notes Payable | ||
At June 30, 2014, the Company maintained notes payable and accrued interest to related parties totaling $282,000. These notes are short term, straight-line amortizing notes. The notes carry an annual interest rate of 10%. | ||
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. | ||
Notes Payable | ||
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%. | ||
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%, with a 16.0% default rate, requires monthly payments of $10,000, including interest, and matures November 2015. The balance due on this note was approximately $158,000 and $208,000 at June 30, 2014 and December 31, 2013, respectively. As of June 30, 2014, the note is accruing interest at the default rate, of which $60,000 is payable during the year ending December 31, 2014 and $105,000 is payable during the year ending December 31, 2015. | ||
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. | ||
6A_COMMITMENTS_AND_CONTINGENCI
6A. COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
6A. 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_STOCKHOLDERS_DEFICIT
7. STOCKHOLDERS' DEFICIT | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||
Equity [Abstract] | ' | ' | ||||||||||||||||||||
7. STOCKHOLDERS' DEFICIT | ' | ' | ||||||||||||||||||||
Common Stock | Common Stock | |||||||||||||||||||||
The Company has authorized 145 million shares of common stock with $0.001 par value, 75,495,469 of which were outstanding as of June 30, 2014. During the six months ended June 30, 2014, the Company issued 242,440 shares in connection with the exercise of outstanding options. | 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. | |||||||||||||||||||||
For the six months ended June 30, 2014, the Company issued 1,560,142 shares of common stock in connection with conversions of outstanding shares of Series B preferred stock, as well as 140,676 shares of common stock as payment of accrued dividends on the Series B preferred stock. | 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 | 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 1,532 and 2,147 shares were issued and outstanding as of June 30, 2014 and December 31, 2013, respectively. | 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. | ||||||||||||||||||||||
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 conversion price as of June 30, 2014 was $0.3596 per share, such that each share of Preferred Stock would convert into 2,781 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. | |||||||||||||||||||||
Holders of the Series B Preferred Stock are entitled to quarterly dividends at an annual rate of 10.0%, payable in cash or, subject to certain conditions, common stock, at the Company’s option. Accrued dividends, for the three months ended totaled approximately $41,000 at June 30, 2014. 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. | |||||||||||||||||||||
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 at June 30, 2014 was $0.3596, and on that date, the Tranche B warrants were convertible into 5,580,469 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 June 30, 2014 and December 31, 2013, the fair value of these warrants was approximately $1.1 million and $1.5 million, respectively. | Stock Options | |||||||||||||||||||||
Warrants | 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. | |||||||||||||||||||||
We have issued warrants to purchase our common stock from time to time in connection with certain financing arrangements. | 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: | |||||||||||||||||||||
The Company had the following shares reserved for the warrants as of June 30, 2014: | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Warrants | Exercise Price | Expiration Date | Expected volatility | 174 | % | 141 | % | |||||||||||||||
(Underlying Shares) | Expected option life in years | 10 | 10 | |||||||||||||||||||
471,856 | -1 | $0.80 per share | 26-Jul-14 | Expected dividend yield | 0 | % | 0 | % | ||||||||||||||
3,590,522 | -1 | $0.80 per share | 1-Mar-15 | Risk-free interest rate | 1.87 | % | 1.84 | % | ||||||||||||||
6,790 | -2 | $1.01 per share | 10-Sep-15 | Weighted average fair value per option at grant date | $ | 0.69 | $ | 0.76 | ||||||||||||||
439,883 | -3 | $0.68 per share | 31-Mar-16 | |||||||||||||||||||
285,186 | -4 | $1.05 per share | 20-Nov-16 | 33 | ||||||||||||||||||
1,858,089 | -5 | $1.08 per share | 23-May-18 | |||||||||||||||||||
5,580,467 | -6 | $0.359 per share | 23-May-18 | 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. | ||||||||||||||||||
200,000 | -7 | $0.50 per share | 23-Apr-19 | |||||||||||||||||||
561,798 | -7 | $0.45 per share | 22-May-19 | Stock option activity for each of the two years ended December 31 is as follows: | ||||||||||||||||||
__________ | ||||||||||||||||||||||
(1) Consists of outstanding warrants issued in connection with a warrant exchange program in June 2012. | 2013 | 2012 | ||||||||||||||||||||
-2 | Consists of outstanding warrants issued in conjunction with a private placement on September 10, 2010. | Weighted | Weighted | |||||||||||||||||||
Average | Average | |||||||||||||||||||||
-3 | Consists of outstanding warrants issued in conjunction with a buy back of our minority interest in our subsidiary in December 2012, which were issued in February 2014. | Exercise | Exercise | |||||||||||||||||||
Shares | Price | Shares | Price | |||||||||||||||||||
-4 | Consists of outstanding warrants issued in conjunction with a private placement on November 21, 2011. | 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 | ||||||||||||||||
-5 | Consists of outstanding warrants issued in conjunction with a private placement on May 24, 2013. | Options exercised | (580,540 | ) | $ | 0.31 | (326,461 | ) | $ | 0.28 | ||||||||||||
Options expired/forfeited | (328,750 | ) | $ | 1.15 | (169,000 | ) | $ | 2.6 | ||||||||||||||
-6 | Consists of outstanding warrants issued in conjunction with a private placement on May 24, 2013. Underlying shares increased from 1,858,089 to 5,580,467, and exercise price decreased from $1.08 per share to $0.3596 per share, pursuant to the terms of the warrants, as a result of certain conversions of Convertible Notes. | 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 | ||||||||||||||||
-7 | Consists of outstanding warrants issued to a placement agent in conjunction with an April 23, 2014 sale of Convertible Notes. | 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. | |||||||||||||||||||||
7A_License_and_Technology_Agre
7A. License and Technology Agreements | 12 Months Ended |
Dec. 31, 2013 | |
Notes to Financial Statements | ' |
7A. 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_LOSS_PER_COMMON_SHARE
8. LOSS PER COMMON SHARE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
8. 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 common shares outstanding during the period. | 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. |
9_NOTES_PAYABLE
9. NOTES PAYABLE | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' | ' |
9. NOTES PAYABLE | ' | ' |
Short Term Notes Payable | ||
Short Term Notes Payable | ||
At June 30, 2014, the Company maintained notes payable and accrued interest to related parties totaling $282,000. These notes are short term, straight-line amortizing notes. The notes carry an annual interest rate of 10%. | ||
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. | ||
Notes Payable | ||
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%. | ||
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%, with a 16.0% default rate, requires monthly payments of $10,000, including interest, and matures November 2015. The balance due on this note was approximately $158,000 and $208,000 at June 30, 2014 and December 31, 2013, respectively. As of June 30, 2014, the note is accruing interest at the default rate, of which $60,000 is payable during the year ending December 31, 2014 and $105,000 is payable during the year ending December 31, 2015. | ||
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. | ||
9A_Related_Party_Transactions
9A. Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
9A. Related Party Transactions | ' |
None |
9B_Valuation_and_Qualifying_Ac
9B. Valuation and Qualifying Accounts | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||
9B. 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 |
10_SUBSEQUENT_EVENTS
10. SUBSEQUENT EVENTS | 6 Months Ended | 12 Months Ended |
Jun. 30, 2014 | Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' | ' |
10. SUBSEQUENT EVENTS | ' | ' |
On August 4, 2014, the Company’s President and CEO, Gene Cartwright, advanced the Company $200,000 for a 6% simple interest note. | 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. | |
On July 25, 2014, the Company announced that it had filed an amendment to its premarket approval (PMA) application with the FDA for the LuViva Advanced Cervical Scan. The filing followed the face-to-face meeting the Company had with the FDA in May 2014 and addressed questions raised in a September 6, 2013 not-approvable letter that the Company received from the agency. The FDA has 180 days to respond to the amendment. | Effective January 31, 2014, Ronald W. Allen resigned from the Board of Directors of the Company. | |
On July 17, 2014, the Company announced that the U.S. Patent and Trademark Office granted a new patent with 22 claims that support the technology behind the LuViva Advanced Cervical Scan. | Between February 1 and March 25, 2014, the Company received cash advances from certain affiliates totaling about $175,000. | |
On July 10, 2014, the Company announced that the LuViva Advanced Cervical Scan was approved for sale in Mexico by the Federal Commission for Protection Against Health Risks. | ||
2_SIGNIFICANT_ACCOUNTING_POLIC1
2. SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2014 | 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, Monte Carlo simulations and Lattice Model calculations. | 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, as of and for the quarters ended June 30, 2014 and 2013, includes the accounts of Guided Therapeutics, Inc. and its wholly owned subsidiary. | 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. | ||||||||||||||||||
Accounting Standards Updates | ' | ' | |||||||||||||||||
Newly effective accounting standards updates and those not effective until after June 30, 2014, are not expected to have a significant effect on the Company’s financial position or results of operations. | |||||||||||||||||||
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. | 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 periods covered by these consolidated financial statements, may have bank balances in excess of its insured limits. Management has deemed this a normal business 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 June 30, 2014 and December 31, 2013 our inventories were as follows (in thousands): | 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): | ||||||||||||||||||
June 30, | December | December 31, | December 31, | ||||||||||||||||
2014 | 31, 2013 | 2013 | 2012 | ||||||||||||||||
Raw materials | $ | 971 | $ | 1,013 | Raw materials | $ | 1,013 | $ | 518 | ||||||||||
Work in process | 233 | 268 | Work in process | 268 | 21 | ||||||||||||||
Finished goods | 34 | 96 | Finished goods | 96 | 37 | ||||||||||||||
Inventory reserve | (119 | ) | (184 | ) | Inventory reserve | (184 | ) | (52 | ) | ||||||||||
Total | $ | 1,119 | $ | 1,193 | Total | $ | 1,193 | $ | 524 | ||||||||||
Debt Issuance Costs | ' | ' | |||||||||||||||||
Debt issuance costs incurred in securing the Company’s financing arrangements are capitalized and amortized over the term of the debt. Deferred financing costs are included in other long term assets. | |||||||||||||||||||
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 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 | |||||||||||||||
Revenues | ' | ' | |||||||||||||||||
The majority of the Company’s revenues were from product sales of approximately $323,000, grants with NIH totaling approximately $30,000, as well as other income from royalties of approximately $5,000, for the three months ended June 30, 2014. Revenue for the same period in 2013, was from product sales of approximately $248,000, grants with NIH and NCI totaling approximately $389,000, as well as other income from royalty and miscellaneous receipts of approximately $75,000 for the three months ended June 30, 2013. | |||||||||||||||||||
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 condition 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. | 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 contract. The Company recognizes revenue from grants based on the grant agreement, at the time the expenses are incurred. | 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. | 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 accounts for income taxes in accordance with the liability method. Under the liability method, the Company recognizes deferred assets and liabilities based upon anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. The Company establishes a valuation allowance to the extent that it is more likely than not that deferred tax assets will not be utilized against future taxable income. As of December 31, 2013, the Company had approximately $59.8 million of net operating loss (“NOL”) carry forward. There was no provision for income taxes at June 30, 2014. A full valuation allowance has been recorded related to any deferred tax assets created from the NOL. | 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. | ||||||||||||||||||
Stock Option Plan | ' | ' | |||||||||||||||||
The Company measures the cost of employees services received in exchange for equity awards, including stock options, based on the grant date fair value of the awards. The cost will be recognized as compensation expense over the vesting period of the awards. | |||||||||||||||||||
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 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. | 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) | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | |||||||||||||||||
Inventory Valuation | ' | ' | |||||||||||||||||
June 30, | December | December 31, | December 31, | ||||||||||||||||
2014 | 31, 2013 | 2013 | 2012 | ||||||||||||||||
Raw materials | $ | 971 | $ | 1,013 | Raw materials | $ | 1,013 | $ | 518 | ||||||||||
Work in process | 233 | 268 | Work in process | 268 | 21 | ||||||||||||||
Finished goods | 34 | 96 | Finished goods | 96 | 37 | ||||||||||||||
Inventory reserve | (119 | ) | (184 | ) | Inventory reserve | (184 | ) | (52 | ) | ||||||||||
Total | $ | 1,119 | $ | 1,193 | 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) | 6 Months Ended | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule fo fair value for liabilities measured on a recurring basis | ' | ' | |||||||||||||||||||||||||||||||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | Asset/(Liability) | Date | Description | Level 1 | Level 2 | Level 3 | Total | Asset/(Liability) | |||||||||||||||||||||||||||||||||||||||
Total | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants | $ | — | $ | — | $ | (1,548 | ) | $ | (1,548 | ) | $ | (1,548 | ) | 31-Dec-13 | |||||||||||||||||||||||||||||||||||||
Warrants | $ | — | $ | — | $ | (1,052 | ) | $ | (1,052 | ) | $ | (1,052 | ) | 30-Jun-14 | Warrants | $ | — | $ | — | $ | (1,548 | ) | $ | (1,548 | ) | $ | (1,548 | ) |
4_STOCK_OPTIONS_Tables
4. STOCK OPTIONS (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Stock Options Tables | ' | ' | ||||||||||||||||||||||||||||||||
Stock Options activity | ' | ' | ||||||||||||||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||||||||||||||||||||
average | average | intrinsic | ||||||||||||||||||||||||||||||||
exercise | remaining | value | 2013 | 2012 | ||||||||||||||||||||||||||||||
price | contractual | (thousands) | Weighted | Weighted | ||||||||||||||||||||||||||||||
(years) | Average | Average | ||||||||||||||||||||||||||||||||
Outstanding, January 1, 2014 | 6,531,192 | $ | 0.66 | 6.97 | $ | 625,412 | Exercise | Exercise | ||||||||||||||||||||||||||
Granted | 491,761 | 0.5 | Shares | Price | Shares | Price | ||||||||||||||||||||||||||||
Exercised / Expired | (242,439 | ) | 0.27 | Outstanding at beginning of year | 6,463,206 | $ | 0.67 | 6,862,167 | $ | 0.7 | ||||||||||||||||||||||||
Outstanding, June 30, 2014 | 6,780,514 | $ | 0.66 | 6.85 | $ | 629,402 | Options granted | 977,276 | $ | 0.5 | 96,500 | $ | 0.79 | |||||||||||||||||||||
Options exercised | (580,540 | ) | $ | 0.31 | (326,461 | ) | $ | 0.28 | ||||||||||||||||||||||||||
Vested and exercisable, June 30, 2014 | 5,823,112 | $ | 0.62 | 5.62 | $ | 629,402 | 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 | — | — |
5A_Income_Taxes_Tables
5A. 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 | % |
Recovered_Sheet1
6A. 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 |
7_STOCKHOLDERS_DEFICIT_Tables
7. STOCKHOLDERS' DEFICIT (Tables) | 6 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||
Jun. 30, 2014 | Dec. 31, 2013 | |||||||||||||||||||||||||||||||||
Equity [Abstract] | ' | ' | ||||||||||||||||||||||||||||||||
Outstanding warrants | ' | ' | ||||||||||||||||||||||||||||||||
Warrants | Exercise Price | Expiration Date | Warrants (Underlying Shares) | |||||||||||||||||||||||||||||||
(Underlying Shares) | Outstanding, January 1, 2013 | 20,801,512 | ||||||||||||||||||||||||||||||||
471,856 | -1 | $0.80 per share | 26-Jul-14 | Issuances | 6,874,929 | |||||||||||||||||||||||||||||
3,590,522 | -1 | $0.80 per share | 1-Mar-15 | Canceled / Expired | (10,349,659 | ) | ||||||||||||||||||||||||||||
6,790 | -2 | $1.01 per share | 10-Sep-15 | Exercised | (6,067,843 | ) | ||||||||||||||||||||||||||||
439,883 | -3 | $0.68 per share | 31-Mar-16 | Outstanding, December 31, 2013 | 11,258,939 | |||||||||||||||||||||||||||||
285,186 | -4 | $1.05 per share | 20-Nov-16 | |||||||||||||||||||||||||||||||
1,858,089 | -5 | $1.08 per share | 23-May-18 | |||||||||||||||||||||||||||||||
5,580,467 | -6 | $0.359 per share | 23-May-18 | |||||||||||||||||||||||||||||||
200,000 | -7 | $0.50 per share | 23-Apr-19 | |||||||||||||||||||||||||||||||
561,798 | -7 | $0.45 per share | 22-May-19 | |||||||||||||||||||||||||||||||
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 | ' | ' | ||||||||||||||||||||||||||||||||
Shares | Weighted | Weighted | Aggregate | |||||||||||||||||||||||||||||||
average | average | intrinsic | ||||||||||||||||||||||||||||||||
exercise | remaining | value | 2013 | 2012 | ||||||||||||||||||||||||||||||
price | contractual | (thousands) | Weighted | Weighted | ||||||||||||||||||||||||||||||
(years) | Average | Average | ||||||||||||||||||||||||||||||||
Outstanding, January 1, 2014 | 6,531,192 | $ | 0.66 | 6.97 | $ | 625,412 | Exercise | Exercise | ||||||||||||||||||||||||||
Granted | 491,761 | 0.5 | Shares | Price | Shares | Price | ||||||||||||||||||||||||||||
Exercised / Expired | (242,439 | ) | 0.27 | Outstanding at beginning of year | 6,463,206 | $ | 0.67 | 6,862,167 | $ | 0.7 | ||||||||||||||||||||||||
Outstanding, June 30, 2014 | 6,780,514 | $ | 0.66 | 6.85 | $ | 629,402 | Options granted | 977,276 | $ | 0.5 | 96,500 | $ | 0.79 | |||||||||||||||||||||
Options exercised | (580,540 | ) | $ | 0.31 | (326,461 | ) | $ | 0.28 | ||||||||||||||||||||||||||
Vested and exercisable, June 30, 2014 | 5,823,112 | $ | 0.62 | 5.62 | $ | 629,402 | 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 | — | — | |||||||||||||||||||||||||||||
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 |
9B_Valuation_and_Qualifying_Ac1
9B. 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 |
In Thousands, unless otherwise specified | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Accumulated deficit | $103,000 |
Working capital | $268 |
2_SIGNIFICANT_ACCOUNTING_POLIC3
2. SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accounting Policies [Abstract] | ' | ' | ' |
Raw materials | $971 | $1,013 | $518 |
Work in process | 233 | 268 | 21 |
Finished goods | 34 | 96 | 37 |
Inventory reserve | -119 | -184 | -52 |
Total | $1,119 | $1,193 | $524 |
2_Summary_of_Significant_Accou
2. Summary of Significant Accounting Policies (Details 1) (USD $) | Jun. 30, 2014 | 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 | 804 | 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 $) | Jun. 30, 2014 | 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 | $980 | $723 | $1,038 |
2_SIGNIFICANT_ACCOUNTING_POLIC5
2. SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | ' | ' |
Patent Costs | $75 | $75 |
Other assets | 326 | 283 |
Revenue from two entities | $653 | $2,900 |
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) | Jun. 30, 2014 | Dec. 31, 2013 |
Warrants | -1,052 | -1,548 |
Level 1 | ' | ' |
Warrants | 0 | 0 |
Level 2 | ' | ' |
Warrants | 0 | 0 |
Level 3 | ' | ' |
Warrants | -1,052 | -1,548 |
4_STOCK_OPTIONS_Details_Narrat
4. STOCK OPTIONS (Details Narrative) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Notes to Financial Statements | ' | ' |
Stock based compensation | $167 | $514 |
Unrecognized compensation cost | $578 | ' |
4_STOCK_OPTIONS_Details
4. STOCK OPTIONS (Details) (USD $) | 12 Months Ended | 6 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 30, 2014 |
Stock options | |||
Outstanding beginning balance, Shares | 6,463,206 | 6,862,167 | 6,531,192 |
Granted, Shares | 977,276 | 96,500 | 491,761 |
Exercised, Shares | ' | ' | -242,439 |
Expired, Shares | -328,750 | -169,000 | 0 |
Outstanding ending balance, Shares | ' | 6,463,206 | 6,780,514 |
Vested and exercisable ending balance | 5,463,963 | 4,373,807 | 5,823,112 |
Outstanding beginning balance, Weighted average exercise price | $0.67 | $0.70 | $0.66 |
Granted, Weighted average exercise price | $0.50 | $0.79 | $0.50 |
Exercised, Weighted average exercise price | ' | $0.28 | $0.27 |
Expired, Weighted average exercise price | $1.22 | $2.60 | $0 |
Outstanding ending balance, Weighted average exercise price | $1.12 | $0.67 | $0.66 |
Vested and exercisable ending balance | $0.80 | $0.50 | $0.62 |
Weighted Average Remaining Contractual Life (in years) Outstanding | ' | ' | '6 years 11 months 19 days |
Weighted Average Remaining Contractual Life (in years) Exercisable | ' | ' | '6 years 10 months 6 days |
Aggregate Intrinsic Value Outstanding, Beginning | ' | ' | $625,412 |
Aggregate Intrinsic Value Granted | ' | ' | $0 |
Aggregate Intrinsic Value Exercised | ' | ' | 0 |
Aggregate Intrinsic Value Forfeited/canceled | ' | ' | $0 |
Aggregate Intrinsic Value Outstanding, Ending | ' | ' | 629,402 |
Aggregate Intrinsic Value Exercisable | ' | ' | $629,402 |
5A_Income_Taxes_Details
5A. 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 |
5A_Income_taxes_Details_1
5A. 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 | 0.00% | 0.00% |
Valuation allowance | -38.00% | -38.00% |
Effective rate | 0.00% | 0.00% |
5A_Income_Taxes_Details_Narrat
5A. Income Taxes (Details Narrative) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Taxes Details Narrative | ' | ' | |
NOL carryforwards | ' | $59,800 | |
NOL carryforwards available through | 1-Jan-08 | [1] | ' |
[1] | Through 2033 |
6A_Commitments_and_Contingenci1
6A. 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 |
7_STOCKHOLDERS_DEFICIT_Details
7. STOCKHOLDERS' DEFICIT (Details ) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 |
Warrant1Member | Warrant 2 [Member] | Warrant 3 [Member] | Warrant 4 [Member] | Warrant 5 [Member] | Warrant 6 [Member] | Warrant 7 [Member] | Warrant 8 [Member] | Warrant 9 [Member] | ||||
Warrants outstanding | ' | 6,463,206 | 6,862,167 | 471,856 | 3,590,522 | 6,790 | 439,883 | 285,186 | 1,858,089 | 5,580,467 | 200,000 | 561,798 |
Warrants exercise price | $1.12 | $0.67 | $0.70 | $0.80 | $0.80 | $1.01 | $0.68 | $1.05 | $1.08 | $0.39 | $0.50 | $0.45 |
Expiration date | ' | ' | ' | '2014-07-26 | '2015-03-01 | '2015-09-10 | '2016-03-31 | '2016-11-20 | '2018-05-23 | '2018-05-23 | '2019-04-23 | '2019-05-22 |
7_Stockholders_Equity_Assumpti
7. Stockholdersb Equity - Assumptions (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 |
7_STOCKHOLDERS_EQUITY_Details_
7. STOCKHOLDERS' EQUITY (Details 1) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | 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 | ' | 6,463,206 |
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 b options exercised | $236,059 | $93,088 |
Aggregate intrinsic value b options outstanding | 625,412 | 1,332,965 |
Aggregate intrinsic value b 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 | ' |
7_STOCKHOLDERS_EQUITY_Details_1
7. 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 |
7_STOCKHOLDERS_EQUITY_Details_2
7. STOCKHOLDERS' EQUITY (Details 3) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Warrants 1 | ' | ' |
Warrants | ' | 29,656 |
Exercise Price | ' | $0.65 |
Expiration Date | '2014-03-01T00:00:00 | ' |
Warrants 2 | ' | ' |
Warrants | ' | 471,856 |
Exercise Price | ' | $0.80 |
Expiration Date | '2014-07-26T00:00:00 | ' |
Warrants 3 | ' | ' |
Warrants | ' | 3,590,522 |
Exercise Price | ' | $0.80 |
Expiration Date | '2015-03-01T00:00:00 | ' |
Warrants 4 | ' | ' |
Warrants | ' | 6,790 |
Exercise Price | ' | $1.01 |
Expiration Date | '2015-09-10T00:00:00 | ' |
Warrants 5 | ' | ' |
Warrants | ' | 439,883 |
Exercise Price | ' | $0.68 |
Expiration Date | '2016-03-31T00:00:00 | ' |
Warrants 6 | ' | ' |
Warrants | ' | 285,186 |
Exercise Price | ' | $1.05 |
Expiration Date | '2016-11-20T00:00:00 | ' |
Warrants 7 | ' | ' |
Warrants | ' | 1,858,089 |
Exercise Price | ' | $1.08 |
Expiration Date | '2018-05-23T00:00:00 | ' |
Warrants 8 | ' | ' |
Warrants | ' | 5,016,840 |
Exercise Price | ' | $0.40 |
Expiration Date | '2018-05-23T00:00:00 | ' |
7_STOCKHOLDERS_EQUITY_Details_3
7. STOCKHOLDERS' EQUITY (Details Narrative) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders Equity Details Narrative | ' | ' | ' |
Par value | $0.00 | $0.00 | $0.00 |
Authorized preferred stock | 3,000 | 3,000 | 3,000 |
Preferred stock par value | $0.00 | $0.00 | $0.00 |
Shares Available under the plan | ' | 6,724,027 | 6,792,013 |
Share of common stock issued | 75,495,469 | 70,478,961 | 62,282 |
9_NOTES_PAYABLE_Details_Narrat
9. NOTES PAYABLE (Details Narrative) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
Notes payble | $282 |
Interest rate | 10.00% |
9B_Valuation_and_Qualifying_Ac2
9B. 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 |
9B_Valuation_and_Qualifying_Ac3
9B. 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 |