Guided Therapeutics (GTHP) 10-Q 13 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	8-May-15
Document And Entity Information
Entity Registrant Name	GUIDED THERAPEUTICS INC
Entity Central Index Key	924515
Document Type	10-Q
Document Period End Date	31-Mar-15
Amendment Flag	FALSE
Current Fiscal Year End Date	-19
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		106,825,246
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
CURRENT ASSETS
Cash and cash equivalents	$18	$162
Accounts receivable, net of allowance for doubtful accounts of $76 at March 31, 2015 and December 31, 2014	358	338
Inventory, net of reserves of $133 and $144, at March 31, 2015 and December 31, 2014, respectively	1,149	1,180
Other current assets	52	99
Total current assets	1,577	1,779
Property and equipment, net	515	587
Other assets	93	101
Debt issuance cost	375	564
Total noncurrent assets	983	1,252
TOTAL ASSETS	2,560	3,031
CURRENT LIABILITIES:
Short-term notes payable	648	646
Current portion of long-term note payable	168	123
Short-term notes payable, net of discount	1,239	1,062
Accounts payable	1,563	1,733
Accrued liabilities	1,523	1,015
Deferred revenue	24	24
Total current liabilities	5,165	4,603
LONG-TERM LIABILITIES:
Warrants, at fair value	1,356	2,070
Long-term debt, net		40
Convertible Debt, net of discount	795	783
Other long-term liabilities	262
Total long-term liabilities	2,413	2,893
TOTAL LIABILITIES	7,578	7,496
STOCKHOLDERS' EQUITY :
Series B convertible preferred stock, $.001 par value; 3 shares authorized, 1.2 shares issued and outstanding as of March 31, 2015 and December 31, 2014, (Liquidation preference of $1,200 at March 31, 2015 and December 31, 2014)	678	678
Common stock, $.001 Par value; 195,000 shares authorized, 100,055 and 96,889 shares issued and outstanding as of March, 31 2015 and December 31, 2014	99	97
Additional paid-in capital	108,673	107,952
Treasury stock, at cost	-132	-132
Accumulated deficit	-114,336	-113,060
TOTAL STOCKHOLDERS' EQUITY	-5,018	-4,465
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$2,560	$3,031

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
CURRENT ASSETS
Accounts receivable, net of allowance	$76	$76
Inventory, net of reserves	$133	$144
STOCKHOLDERS' EQUITY :
Series B convertible preferred stock par value	$0.00	$0.00
Series B convertible preferred stock shares authorized	3	3
Series B convertible preferred stock, Issued	1.2	1.2
Series B convertible preferred stock, Outstanding	1.2	1.2
Common stock, par value	$0.00	$0.00
Common stock, Authorized	195,000	195,000
Common stock, Issued	100,055	100,055
Common stock, outstanding	96,889	96,889

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
REVENUE:
Sales - devices and disposables	$127	$122
Cost of goods sold	107	192
Gross Loss	20	-70
Contract and grant revenue	15	19
COSTS AND EXPENSES:
Research and development	373	607
Sales and marketing	172	283
General and administrative	963	1,138
Total	1,508	2,028
Operating loss	-1,473	-2,079
OTHER INCOME	6	2
INTEREST EXPENSE	-492	-27
CHANGES IN FAIR VALUE OF WARRANTS	714	542
TOTAL OTHER INCOME	228	517
LOSS BEFORE INCOME TAXES	-1,245	-1,562
PROVISION FOR INCOME TAXES
NET LOSS	-1,245	-1,562
PREFERRED STOCK DIVIDENDS	-31	-48
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	($1,276)	($1,610)
BASIC AND DILUTED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS	($0.01)	($0.02)
WEIGHTED AVERAGE SHARES OUTSTANDING	97,324	71,451

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2015	Mar. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	($1,245)	($1,562)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation	72	117
Amortization	402
Stock based compensation	192	359
Change in fair value of warrants	-714	-541
Changes in operating assets and liabilities:
Inventory	-20	-61
Accounts receivable	31	11
Other current assets	47	53
Other assets	8	41
Accounts payable	-169	377
Deferred revenue		-8
Accrued liabilities	508	255
Other long-term liabilities	262
Total adjustments	619	603
Net cash used in operating activities	-626	-959
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to fixed assets		-4
Net cash used in investing activities		-4
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of preferred stock and warrants	451
Proceeds from debt financing	62	378
Payments on notes and loan payables	-31	-45
Proceeds from options and warrants exercised		67
Net cash provided by financing activities	482	400
NET CHANGE IN CASH AND CASH EQUIVALENTS	-144	-563
CASH AND CASH EQUIVALENTS, beginning of year	162	613
CASH AND CASH EQUIVALENTS, end of period	18	50
SUPPLEMENTAL SCHEDULE OF:
Cash paid for Interest	22	8
NONCASH INVESTING AND FINANCING ACTIVITIES:
Conversion of accrued expenses into common stock / options		22
Issuance of common stock as board compensation	31
Dividends on preferred stock	$50

1_BASIS_OF_PRESENTATION

1. BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2015
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 March 31, 2015, results of operations for the three months ended March 31, 2015 and 2014, and cash flows for the three months ended March 31, 2015 and 2014. The results of operations for the three months ended March 31, 2015 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, 2014.
	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 March 31, 2015, it had an accumulated deficit of approximately $114.3 million. Through March 31, 2015, 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.
	Going Concern
	The Company’s consolidated financial statements have been prepared and presented on a basis assuming it will continue as a going concern.  The factors below raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary from the outcome of this uncertainty. Notwithstanding the foregoing, the Company believes it has made progress in recent years in stabilizing its financial situation by execution of multiyear contracts from Konica Minolta Opto, Inc., a subsidiary of Konica Minolta, Inc., a Japanese corporation based in Tokyo (“Konica Minolta”) and grants from the National Cancer Institute (“NCI”), while at the same time simplifying its capital structure and significantly reducing debt. However, the Company has replaced its prior agreements with Konica Minolta with a new licensing agreement, and therefore will no longer receive direct payments from Konica Minolta, and will have to pay a royalty to Konica Minolta should the Company sell any products licensed from Konica Minolta.
	At March 31, 2015, the Company had negative working capital of approximately $3.6 million and the stockholders’ deficit was approximately $5.0 million, primarily due to recurring net losses from operations and deemed dividends on warrants and preferred stock, offset by proceeds from the exercise of options and warrants and proceeds from the sales of stock.
	The Company’s capital-raising efforts are ongoing. If sufficient capital cannot be raised by the end of second quarter of 2015, the Company has plans to curtail operations by reducing discretionary spending and staffing levels, and attempting to operate by only pursuing activities for which it has external financial support and additional NCI, NHI or other grant funding. However, there can be no assurance that such external financial support will be sufficient to maintain even limited operations or that the Company will be able to raise additional funds on acceptable terms, or at all. In such a case, the Company might be required to enter into unfavorable agreements or, if that is not possible, be unable to continue operations, and to the extent practicable, liquidate and/or file for bankruptcy protection.
	The Company had warrants exercisable for approximately 28.4 million shares of its common stock outstanding at March 31, 2015, with exercise prices of $0.1394 to $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 2015, the Company currently anticipates an early 2016 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	3 Months Ended
	Mar. 31, 2015
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, 2014 included in its annual report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”).
	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.
	Principles of Consolidation
	The accompanying consolidated financial statements include the accounts of Guided Therapeutics, Inc. and its wholly owned subsidiary.
	Accounting Standard Updates
	Newly effective accounting standards updates and those not effective until after March 31, 2015, 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.
	Accounts Receivable
	The Company performs periodic credit evaluations of its customers’ financial conditions and generally does not require collateral. The Company reviews all outstanding accounts receivable for collectability on a quarterly basis. An allowance for doubtful accounts is recorded for any amounts deemed uncollectable. The Company does not accrue interest receivable on past due accounts receivable.
	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.
	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.
	Concentrations of Credit Risk
	The Company, from time to time during the years covered by these consolidated financial statements, may have bank balances in excess of its insured limits. Management has deemed this a normal business risk.
	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, 2014, the Company had approximately $68.4 million of net operating loss (“NOL”) carry forward. There was no provision for income taxes at March 31, 2015. A full valuation allowance has been recorded related to any deferred tax assets created from the NOL.
	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.
	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 March 31, 2015 and December 31, 2014, our inventories were as follows (in thousands):
		March 31,			December 31,
		2015			2014
	Raw materials	$	696		$	884
	Work in process		335			304
	Finished goods		251			136
	Inventory reserve		(133	)		(144	)
	Total	$	1,149		$	1,180
	Property and Equipment
	Property and equipment are recorded at cost. Depreciation is computed using the straight-line method over estimated useful lives of three to seven years. Leasehold improvements are depreciated at the shorter of the useful life of the asset or the remaining lease term. Depreciation expense is included in general and administrative expense on the statement of operations. Expenditures for repairs and maintenance are expensed as incurred. Property and equipment are summarized as follows at March 31, 2015 and December 31, 2014 (in thousands):
		March 31,			December 31,
		2015			2014
	Equipment	$	1,391		$	1,391
	Software		737			737
	Furniture and fixtures		124			124
	Leasehold Improvement		180			180
			2,432			2,432
	Less accumulated depreciation		(1,917	)		(1,845	)
	Total	$	515		$	587
	Other Assets
	Other assets primarily consist of long-term deposits for various tooling projects that are being constructed for the Company. At March 31, 2015 and December 31, 2014, such balances were approximately $72,000.
	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.
	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.

3_FAIR_VALUE_OF_FINANCIAL_INST

3. FAIR VALUE OF FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2015
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:
		·	Level 1 – Quoted market prices in active markets for identical assets and liabilities;
		·	Level 2 – Inputs, other than level 1 inputs, either directly or indirectly observable; and
		·	Level 3 – Unobservable inputs developed using internal estimates and assumptions (there is little or no market date) which reflect those that market participants would use.
	The Company records its derivative activities at fair value, which consisted of warrants as of March 31, 2015. 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 March 31, 2015 and December 31, 2014:
	FAIR VALUE MEASUREMENTS ( In Thousands)
	The following is summary of items that the Company measures at fair value on a recurring basis:
			Fair Value at March 31, 2015
				Level 1		Level 2		Level 3			Total
	Public offering warrants		$	—	$	—	$	(365	)	$	(365	)
	Series B warrants			—		—		(991	)		(991	)
	Total long-term liabilities at fair value		$	—	$	—	$	(1,356	)	$	(1,356	)
			Fair Value at December 31, 2014
				Level 1		Level 2		Level 3			Total
	Public offering warrants		$	—	$	—	$	(587	)	$	(587	)
	Series B warrants			—		—		(1,483	)		(1,483	)
	Total long-term liabilities at fair value		$	—	$	—	$	(2,070	)	$	(2,070	)
	As of March 31, 2015, the fair value of warrants we approximately $1.4 million. A net change of approximately $714,000 has been recorded to the accompanying statement of operations for the three months ended.

4_STOCKHOLDERS_DEFICIT

4. STOCKHOLDERS' DEFICIT	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
4. STOCKHOLDERS' DEFICIT	Common Stock
	The Company has authorized 195 million shares of common stock with $0.001 par value, of which 100.1 million were issued and outstanding as of March 31, 2015. For the year ended December 31, 2014, there were 195 million authorized shares of common stock, of which 96.9 million were issued and outstanding.
	For the three months ended March 31, 2015, the Company issued 3,165,978 shares of common stock as listed below:
	New Issuance - For Cash		2,499,999
	Series B Dividends		138,805
	Option Exercised		168,558
	Repayment of Loan		358,616
	Total		3,165,978
	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 1,277 shares were issued and outstanding at both March 31, 2015 and December 31, 2014.
	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 Series B 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 the operation of anti-dilution provisions, as of March 31, 2015 the conversion price was $0.1394 per share, such that each share of Series B Preferred Stock would convert into 7,747 shares of common stock.
	Holders of the Series B Preferred Stock were entitled to quarterly dividends at an annual rate of 5.0% through the quarter ended December 31, 2013, and are entitled to quarterly dividends at an annual rate of 10.0% thereafter, in each case, payable in cash or, subject to certain conditions, common stock, at the Company’s option. Accrued dividends totaled approximately $32,500 at March 31, 2015. 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. At March 31, 2015, the exercise price of Tranche B warrants was $0.1394 per share, convertible into 14,195,525 shares of common stock. As a result of the anti-dilution 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, 2014, the fair value of these warrants was approximately $1.5 million. As of March 31, 2015, the fair value of these warrants was estimated at approximately $991,000.
	Warrants
	The following table summarizes transactions involving the Company’s outstanding warrants to purchase common stock for the quarter ended March 31, 2015:
		Warrants
		(Underlying Shares)
	Outstanding, January 1, 2015		29,796,154
	Issuances		2,249,422
	Canceled / Expired		(3,590,522	)
	Exercised		—
	Outstanding, March 31, 2015		28,455,054
	The Company had the following shares reserved for the warrants as of March 31, 2015:
	Warrants		Exercise Price	Expiration Date
	(Underlying Shares)
	6,790	-1	$1.0100 per share	10-Sep-15
	439,883	-2	$0.6800 per share	31-Mar-16
	285,186	-3	$1.0500 per share	20-Nov-16
	1,858,089	-4	$1.0800 per share	23-May-18
	14,195,525	(4)(5)	$0.1394 per share	23-May-18
	200,000	-6	$0.5000 per share	23-Apr-19
	561,798	-6	$0.4500 per share	22-May-19
	184,211	-7	$0.3800 per share	10-Sep-19
	325,521	-8	$0.4601 per share	27-Sep-19
	8,392,707	-9	$0.2250 per share	2-Dec-19
	755,344	-10	$0.2812 per share	2-Dec-19
	1,250,000	-11	$0.2550 per share	30-Mar-18
	________________________
	-1	Consists of outstanding warrants issued in conjunction with a September 2010 private placement.
	-2	Consists of outstanding warrants issued in conjunction with a buy-back of a minority interest in the Company’s subsidiary in December 2012, which were issued in February 2014.
	-3	Consists of outstanding warrants issued in conjunction with a November 2011 private placement.
	-4	Consists of outstanding warrants issued in conjunction with a May 2013 private placement.
	-5	Underlying shares increased from 1,858,089 to 14,395,522, and per share exercise price decreased from $1.08 to $0.1394, pursuant to the anti-dilution provisions in the warrants, as a result of the operation of anti-dilution provisions.
	-6	Consists of warrants issued to a placement agent in connection with a senior convertible notes offering.
	-7	Consists of outstanding warrants issued to a placement agent in conjunction with a secured note offering.
	-8	Consists of outstanding warrants issued in conjunction with a Regulation S offering.
	-9	Consists of outstanding warrants issued in conjunction with a 2014 public offering.
	-10	Consists of outstanding warrants issued to a placement agent in conjunction with a 2014 public offering.
	-11	Consists of outstanding warrants issued in conjunction with a March 2015 private placement.

5_STOCK_OPTIONS

5. STOCK OPTIONS	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
5. STOCKHOLDERSb DEFICIT	Under the Company’s 1995 Stock Plan (the “Plan”), a total of 6,509,411 shares remained available at March 31, 2015 6,745,808 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 March 31, 2015. 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.
	A summary of the Company’s activity under the Plan as of March 31, 2015 and changes during the three months then ended is as follows:
							Weighted
					Weighted		average		Aggregate
					average		remaining		intrinsic
					exercise		contractual		value
		Shares			price		(years)		(thousands)
	Outstanding, January 1, 2015		6,940,395		$	0.66		6.97	$	625,412
	Granted		1,000			0.19
	Exercised / Expired		(195,587	)		0.49
	Outstanding, March 31, 2015		6,745,808		$	0.66		5.34	$	56,830
	Vested and exercisable, March 31, 2015		5,929,916		$	0.67		4.92	$	56,830
	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.

6_LITIGATION_AND_CLAIMS

6. LITIGATION AND CLAIMS	3 Months Ended
	Mar. 31, 2015
Notes to Financial Statements
6. 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 March 31, 2015 and December 31, 2014, there was no accrual recorded for any potential losses related to pending litigation.

7_NOTES_PAYABLE

7. NOTES PAYABLE	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Debt Disclosure [Abstract]
7. NOTES PAYABLE	Short Term Notes Payable	On April 23, 2014, the Company entered into a securities purchase agreement with Magna Equities II, LLC (formerly Hanover Holdings I, LLC), an affiliate of Magna Group (“Magna”), pursuant to which the Company sold Magna a 6% senior convertible note with an initial principal amount of $1.5 million and an 18-month term, for a purchase price of $1.0 million (an approximately 33.3% original issue discount). Additionally, pursuant to the purchase agreement, on May 23, 2014 Magna purchased an additional senior convertible note with an initial principal amount of $2.0 million and an 18-month term, for a fixed purchase price of $2.0 million.
	At March 31, 2015 and December 31, 2014, the Company maintained notes payable and accrued interest to related parties totaling $638,000 and $609,000, respectively. These notes are short term, straight-line amortizing notes. The notes carry an annual interest rate of between 5% and 10%.	Subject to certain limitations, the remaining convertible note is convertible at any time, in whole or in part, at Magna’s option, into shares of the Company’s common stock, at a conversion price equal to the lesser of $0.55 per share and a 25% discount from the lowest daily volume-weighted average price of the Company’s common stock in the five trading days prior to conversion. At no time will Magna be entitled to convert any portion of the convertible note to the extent that after such conversion, Magna (together with its affiliates) would beneficially own more than 9.99% of the outstanding shares of the Company’s common stock as of such date. As long as Magna or its affiliates beneficially own any of the shares issued upon conversion, they may not engage in any “short sale” transactions in the Company’s common stock and may not sell more than the greater of $15,000 or 15% of the trading volume of the common stock in any single trading day. As of March 31, 2015 and December 31, 2014, the outstanding balance was $785,000 and $783,000, respectively.
	At March 31, 2015, the Company maintained a note payable to Premium Assignment Corporation, an insurance premium financing company, of approximately $100,000. This note is 10 month straight-line amortizing loan dated June 24, 2014. The note carries annual interest of 4.6%. The balance due to on the Premium Assignment note was approximately $9,500 and $37,000 at March 31, 2015 and December 31, 2014, respectively.	The convertible note includes customary event of default provisions and a default interest rate of 16%. Upon the occurrence of an event of default, Magna may require the Company to pay in cash the “Event of Default Redemption Price,” which is defined as the greater of (i) the product of (A) the amount to be redeemed multiplied by (B) 135% (or 100% if an insolvency related event of default) and (ii) the product of (X) the conversion price in effect at that time multiplied by (Y) the product of (1) 135% (or 100% if an insolvency related event of default) multiplied by (2) the greatest closing sale price of the common stock on any trading day during the period commencing on the date immediately preceding such event of default and ending on the date the Company makes the entire payment required to be made under this provision.
	On September 10, 2014, the Company sold a secured promissory note to Tonaquint, Inc., with an initial principal amount of $1,275,000, for a purchase price of $700,000 (an original issue discount of $560,000). The Company may prepay the note at any time. The note is secured by the Company’s current and future accounts receivable and inventory, pursuant to a security agreement entered into in connection with the sale. On March 10, 2015, the Company amended the terms of the note to extend the maturity until May 10, 2015. During the extension, interest accrues on the note at a rate of the lesser of 18% per year or the maximum rate permitted by applicable law. Pursuant to the terms of the amended note, on March 19, 2015, Tonaquint converted $50,000 of the outstanding balance into 358,680 shares of common stock. On April 10, 2015, Tonaquint elected to convert an additional $50,000 of the outstanding balance into shares of common stock, but the Company exercised its right to deliver cash in lieu of shares. On April 22, 2015, Tonaquint converted an additional $50,000 of the outstanding balance into 478,240 shares of common stock. On May 4, 2015, the Company further amended the terms to extend the maturity until July 10, 2015 and, as a result, Tonaquint has the right to convert an additional $150,000 of the outstanding balance into shares of common stock. See Note 10, Subsequent Events. In connection with the offering, the Company issued its placement agent warrants exercisable for 184,211 shares at $0.38 per share, with an expiration date of September 10, 2019.	The Company paid to Magna a commitment fee for entering into the purchase agreement in the form of 321,820 shares of common stock. The Company also paid $50,000 of attorneys’ fees and expenses incurred by Magna in connection with the transaction. Total debt issuance costs incurred on the Senior Convertible Note was approximately $844,000. This amount is being amortized over 18 months. Total amortization expense for the period ended was approximately $141,000.
	Total debt issuance cost capitalized was approximately $130,000. This amount was being amortized over six months and is fully amortized as of March 31, 2015. Total amortized expense for the three months ended March 31, 2015 was approximately $49,000. For the three months ended March 31, 2015, the Company recorded amortization of approximately $213,000 on the discount.  The original issue discount of $560,000 is fully amortized as of March 31, 2015.	In connection with the sale of the convertible notes, the Company issued its placement agent warrants exercisable for 200,000 shares of common stock at $0.50 per share with an expiration date of April 23, 2019, and warrants exercisable for 561,798 shares of common stock at $0.45 per share with an expiration date of May 22, 2019.
	Notes Payable	As of March 31, 2015, the Company had issued a total of 2,783,959 shares of common stock in conjunction with conversions of the convertible notes. Subsequent to March 31, 2015, the Company issued 4,720,883 additional shares of common stock, in conjunction with conversions of the convertible notes (See Note 10 – Subsequent Events).
	At March 31, 2015, the Company maintained notes payable and accrued interest to related parties totaling approximately $414,000. Those notes are short-term, straight line amortizing notes. The notes carry interest rates between 5% and 10%.
	At March 31, 2015, the Company maintained a note payable totaling approximately $165,000 of principal and accrued interest. The note accrues interest at 9% with a 16% default rate, requires monthly payments of $10,000, and matures November 2015. As of March 31, 2015 the note is accruing interest at the default rate.

8_CONVERTIBLE_DEBT

8. CONVERTIBLE DEBT	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Convertible Debt
8. CONVERTIBLE DEBT	Short Term Notes Payable	On April 23, 2014, the Company entered into a securities purchase agreement with Magna Equities II, LLC (formerly Hanover Holdings I, LLC), an affiliate of Magna Group (“Magna”), pursuant to which the Company sold Magna a 6% senior convertible note with an initial principal amount of $1.5 million and an 18-month term, for a purchase price of $1.0 million (an approximately 33.3% original issue discount). Additionally, pursuant to the purchase agreement, on May 23, 2014 Magna purchased an additional senior convertible note with an initial principal amount of $2.0 million and an 18-month term, for a fixed purchase price of $2.0 million.
	At March 31, 2015 and December 31, 2014, the Company maintained notes payable and accrued interest to related parties totaling $638,000 and $609,000, respectively. These notes are short term, straight-line amortizing notes. The notes carry an annual interest rate of between 5% and 10%.	Subject to certain limitations, the remaining convertible note is convertible at any time, in whole or in part, at Magna’s option, into shares of the Company’s common stock, at a conversion price equal to the lesser of $0.55 per share and a 25% discount from the lowest daily volume-weighted average price of the Company’s common stock in the five trading days prior to conversion. At no time will Magna be entitled to convert any portion of the convertible note to the extent that after such conversion, Magna (together with its affiliates) would beneficially own more than 9.99% of the outstanding shares of the Company’s common stock as of such date. As long as Magna or its affiliates beneficially own any of the shares issued upon conversion, they may not engage in any “short sale” transactions in the Company’s common stock and may not sell more than the greater of $15,000 or 15% of the trading volume of the common stock in any single trading day. As of March 31, 2015 and December 31, 2014, the outstanding balance was $785,000 and $783,000, respectively.
	At March 31, 2015, the Company maintained a note payable to Premium Assignment Corporation, an insurance premium financing company, of approximately $100,000. This note is 10 month straight-line amortizing loan dated June 24, 2014. The note carries annual interest of 4.6%. The balance due to on the Premium Assignment note was approximately $9,500 and $37,000 at March 31, 2015 and December 31, 2014, respectively.	The convertible note includes customary event of default provisions and a default interest rate of 16%. Upon the occurrence of an event of default, Magna may require the Company to pay in cash the “Event of Default Redemption Price,” which is defined as the greater of (i) the product of (A) the amount to be redeemed multiplied by (B) 135% (or 100% if an insolvency related event of default) and (ii) the product of (X) the conversion price in effect at that time multiplied by (Y) the product of (1) 135% (or 100% if an insolvency related event of default) multiplied by (2) the greatest closing sale price of the common stock on any trading day during the period commencing on the date immediately preceding such event of default and ending on the date the Company makes the entire payment required to be made under this provision.
	On September 10, 2014, the Company sold a secured promissory note to Tonaquint, Inc., with an initial principal amount of $1,275,000, for a purchase price of $700,000 (an original issue discount of $560,000). The Company may prepay the note at any time. The note is secured by the Company’s current and future accounts receivable and inventory, pursuant to a security agreement entered into in connection with the sale. On March 10, 2015, the Company amended the terms of the note to extend the maturity until May 10, 2015. During the extension, interest accrues on the note at a rate of the lesser of 18% per year or the maximum rate permitted by applicable law. Pursuant to the terms of the amended note, on March 19, 2015, Tonaquint converted $50,000 of the outstanding balance into 358,680 shares of common stock. On April 10, 2015, Tonaquint elected to convert an additional $50,000 of the outstanding balance into shares of common stock, but the Company exercised its right to deliver cash in lieu of shares. On April 22, 2015, Tonaquint converted an additional $50,000 of the outstanding balance into 478,240 shares of common stock. On May 4, 2015, the Company further amended the terms to extend the maturity until July 10, 2015 and, as a result, Tonaquint has the right to convert an additional $150,000 of the outstanding balance into shares of common stock. See Note 10, Subsequent Events. In connection with the offering, the Company issued its placement agent warrants exercisable for 184,211 shares at $0.38 per share, with an expiration date of September 10, 2019.	The Company paid to Magna a commitment fee for entering into the purchase agreement in the form of 321,820 shares of common stock. The Company also paid $50,000 of attorneys’ fees and expenses incurred by Magna in connection with the transaction. Total debt issuance costs incurred on the Senior Convertible Note was approximately $844,000. This amount is being amortized over 18 months. Total amortization expense for the period ended was approximately $141,000.
	Total debt issuance cost capitalized was approximately $130,000. This amount was being amortized over six months and is fully amortized as of March 31, 2015. Total amortized expense for the three months ended March 31, 2015 was approximately $49,000. For the three months ended March 31, 2015, the Company recorded amortization of approximately $213,000 on the discount.  The original issue discount of $560,000 is fully amortized as of March 31, 2015.	In connection with the sale of the convertible notes, the Company issued its placement agent warrants exercisable for 200,000 shares of common stock at $0.50 per share with an expiration date of April 23, 2019, and warrants exercisable for 561,798 shares of common stock at $0.45 per share with an expiration date of May 22, 2019.
	Notes Payable	As of March 31, 2015, the Company had issued a total of 2,783,959 shares of common stock in conjunction with conversions of the convertible notes. Subsequent to March 31, 2015, the Company issued 4,720,883 additional shares of common stock, in conjunction with conversions of the convertible notes (See Note 10 – Subsequent Events).
	At March 31, 2015, the Company maintained notes payable and accrued interest to related parties totaling approximately $414,000. Those notes are short-term, straight line amortizing notes. The notes carry interest rates between 5% and 10%.
	At March 31, 2015, the Company maintained a note payable totaling approximately $165,000 of principal and accrued interest. The note accrues interest at 9% with a 16% default rate, requires monthly payments of $10,000, and matures November 2015. As of March 31, 2015 the note is accruing interest at the default rate.

9_LOSS_PER_COMMON_SHARE

9. LOSS PER COMMON SHARE	3 Months Ended
	Mar. 31, 2015
Earnings Per Share [Abstract]
9. LOSS PER COMMON SHARE	On April 23, 2014, the Company entered into a securities purchase agreement with Magna Equities II, LLC (formerly Hanover Holdings I, LLC), an affiliate of Magna Group (“Magna”), pursuant to which the Company sold Magna a 6% senior convertible note with an initial principal amount of $1.5 million and an 18-month term, for a purchase price of $1.0 million (an approximately 33.3% original issue discount). Additionally, pursuant to the purchase agreement, on May 23, 2014 Magna purchased an additional senior convertible note with an initial principal amount of $2.0 million and an 18-month term, for a fixed purchase price of $2.0 million.
	Subject to certain limitations, the remaining convertible note is convertible at any time, in whole or in part, at Magna’s option, into shares of the Company’s common stock, at a conversion price equal to the lesser of $0.55 per share and a 25% discount from the lowest daily volume-weighted average price of the Company’s common stock in the five trading days prior to conversion. At no time will Magna be entitled to convert any portion of the convertible note to the extent that after such conversion, Magna (together with its affiliates) would beneficially own more than 9.99% of the outstanding shares of the Company’s common stock as of such date. As long as Magna or its affiliates beneficially own any of the shares issued upon conversion, they may not engage in any “short sale” transactions in the Company’s common stock and may not sell more than the greater of $15,000 or 15% of the trading volume of the common stock in any single trading day. As of March 31, 2015 and December 31, 2014, the outstanding balance was $785,000 and $783,000, respectively.
	The convertible note includes customary event of default provisions and a default interest rate of 16%. Upon the occurrence of an event of default, Magna may require the Company to pay in cash the “Event of Default Redemption Price,” which is defined as the greater of (i) the product of (A) the amount to be redeemed multiplied by (B) 135% (or 100% if an insolvency related event of default) and (ii) the product of (X) the conversion price in effect at that time multiplied by (Y) the product of (1) 135% (or 100% if an insolvency related event of default) multiplied by (2) the greatest closing sale price of the common stock on any trading day during the period commencing on the date immediately preceding such event of default and ending on the date the Company makes the entire payment required to be made under this provision.
	The Company paid to Magna a commitment fee for entering into the purchase agreement in the form of 321,820 shares of common stock. The Company also paid $50,000 of attorneys’ fees and expenses incurred by Magna in connection with the transaction. Total debt issuance costs incurred on the Senior Convertible Note was approximately $844,000. This amount is being amortized over 18 months. Total amortization expense for the period ended was approximately $141,000.
	In connection with the sale of the convertible notes, the Company issued its placement agent warrants exercisable for 200,000 shares of common stock at $0.50 per share with an expiration date of April 23, 2019, and warrants exercisable for 561,798 shares of common stock at $0.45 per share with an expiration date of May 22, 2019.
	As of March 31, 2015, the Company had issued a total of 2,783,959 shares of common stock in conjunction with conversions of the convertible notes. Subsequent to March 31, 2015, the Company issued 4,720,883 additional shares of common stock, in conjunction with conversions of the convertible notes (See Note 10 – Subsequent Events).

10_SUBSEQUENT_EVENTS

10. SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
Subsequent Events [Abstract]
10. SUBSEQUENT EVENTS	During the quarter ended March 31, 2015, we had a subscription agreement to sell an aggregate of 4.0 million shares of our common stock and warrants to purchase an additional 2.0 million shares, for an aggregate purchase price of $720,000 in a private placement. For the quarter ended, we consummated the sale of 2.5 million shares of common stock and warrants to purchase an additional 1.25 million shares, for a total of $450,000. In April, 2015, the remainder of the subscription agreement was consummated and a total of 1.5 million shares of our common stock and warrants to purchase an additional 750,000 shares, for an aggregate purchase price of $270,000.
	On April 10, 2015, Tonaquint elected to convert an additional $50,000 of the outstanding balance of the Company’s secured note into shares of common stock, but the Company exercised its right to deliver cash in lieu of shares. On April 22, 2015, Tonaquint converted an additional $50,000 of the outstanding balance into 478,240 shares of common stock. On May 4, 2015, the Company further amended the terms to extend the maturity until July 10, 2015 and, as a result, Tonaquint has the right to convert an additional $150,000 of the outstanding balance into shares of common stock.
	On April 21, 2015, the Company issued 4,720,883 shares of common stock, in conjunction with conversion of approximately $493,356 in outstanding principal and accrued interest on the senior convertible note held by Magna, leaving a principal balance of approximately $304,000.
	Between April 1, 2015 and May 8, 2015, the Company issued 1,250,000 shares of its common stock upon exercise of outstanding warrants at $0.10455 per share, for cash proceeds of approximately $131,000.

2_SIGNIFICANT_ACCOUNTING_POLIC1

2. SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
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.
Principles of Consolidation	The accompanying consolidated financial statements include the accounts of Guided Therapeutics, Inc. and its wholly owned subsidiary.
Accounting Standards Updates	Newly effective accounting standards updates and those not effective until after March 31, 2015, 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.
Concentration of Credit Risk	The Company, from time to time during the years covered by these consolidated financial statements, may have bank balances in excess of its insured limits. Management has deemed this a normal business risk.
Inventory Valuation	All inventories are stated at lower of cost or market, with cost determined substantially on a “first-in, first-out” basis.  Selling, general, and administrative expenses are not inventoried, but are charged to expense when purchased. At March 31, 2015 and December 31, 2014, our inventories were as follows (in thousands):
		March 31,			December 31,
		2015			2014
	Raw materials	$	696		$	884
	Work in process		335			304
	Finished goods		251			136
	Inventory reserve		(133	)		(144	)
	Total	$	1,149		$	1,180
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 summarized as follows at March 31, 2015 and December 31, 2014 (in thousands):
		March 31,			December 31,
		2015			2014
	Equipment	$	1,391		$	1,391
	Software		737			737
	Furniture and fixtures		124			124
	Leasehold Improvement		180			180
			2,432			2,432
	Less accumulated depreciation		(1,917	)		(1,845	)
	Total	$	515		$	587
Other Assets	Other assets primarily consist of long-term deposits for various tooling projects that are being constructed for the Company. At March 31, 2015 and December 31, 2014, such balances were approximately $72,000.
Accounts Receivable	The Company performs periodic credit evaluations of its customers’ financial conditions and generally does not require collateral. The Company reviews all outstanding accounts receivable for collectability on a quarterly basis. An allowance for doubtful accounts is recorded for any amounts deemed uncollectable. The Company does not accrue interest receivable on past due accounts receivable.
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.
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.
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, 2014, the Company had approximately $68.4 million of net operating loss (“NOL”) carry forward. There was no provision for income taxes at March 31, 2015. A full valuation allowance has been recorded related to any deferred tax assets created from the NOL.
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.
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.

2_SIGNIFICANT_ACCOUNTING_POLIC2

2. SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventory Valuation		March 31,			December 31,
		2015			2014
	Raw materials	$	696		$	884
	Work in process		335			304
	Finished goods		251			136
	Inventory reserve		(133	)		(144	)
	Total	$	1,149		$	1,180
Property and Equipment		March 31,			December 31,
		2015			2014
	Equipment	$	1,391		$	1,391
	Software		737			737
	Furniture and fixtures		124			124
	Leasehold Improvement		180			180
			2,432			2,432
	Less accumulated depreciation		(1,917	)		(1,845	)
	Total	$	515		$	587

3_FAIR_VALUE_OF_FINANCIAL_INST1

3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Mar. 31, 2015
Investments, All Other Investments [Abstract]
Schedule fo fair value for liabilities measured on a recurring basis		Fair Value at March 31, 2015
			Level 1		Level 2		Level 3			Total
	Public offering warrants	$	—	$	—	$	(365	)	$	(365	)
	Series B warrants		—		—		(991	)		(991	)
	Total long-term liabilities at fair value	$	—	$	—	$	(1,356	)	$	(1,356	)
		Fair Value at December 31, 2014
			Level 1		Level 2		Level 3			Total
	Public offering warrants	$	—	$	—	$	(587	)	$	(587	)
	Series B warrants		—		—		(1,483	)		(1,483	)
	Total long-term liabilities at fair value	$	—	$	—	$	(2,070	)	$	(2,070	)

4_STOCKHOLDERS_DEFICIT_Tables

4. STOCKHOLDERS' DEFICIT (Tables)	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
Common stock issued	New Issuance - For Cash		2,499,999
	Series B Dividends		138,805
	Option Exercised		168,558
	Repayment of Loan		358,616
	Total		3,165,978
Outstanding warrants		Warrants
		(Underlying Shares)
	Outstanding, January 1, 2015		29,796,154
	Issuances		2,249,422
	Canceled / Expired		(3,590,522	)
	Exercised		—
	Outstanding, March 31, 2015		28,455,054
Shares reserved for warrants	Warrants		Exercise Price	Expiration Date
	(Underlying Shares)
	6,790	-1	$1.0100 per share	10-Sep-15
	439,883	-2	$0.6800 per share	31-Mar-16
	285,186	-3	$1.0500 per share	20-Nov-16
	1,858,089	-4	$1.0800 per share	23-May-18
	14,195,525	(4)(5)	$0.1394 per share	23-May-18
	200,000	-6	$0.5000 per share	23-Apr-19
	561,798	-6	$0.4500 per share	22-May-19
	184,211	-7	$0.3800 per share	10-Sep-19
	325,521	-8	$0.4601 per share	27-Sep-19
	8,392,707	-9	$0.2250 per share	2-Dec-19
	755,344	-10	$0.2812 per share	2-Dec-19
	1,250,000	-11	$0.2550 per share	30-Mar-18

5_STOCK_OPTIONS_Tables

5. STOCK OPTIONS (Tables)	3 Months Ended
	Mar. 31, 2015
Stock Options Tables
Stock Options activity							Weighted
					Weighted		average		Aggregate
					average		remaining		intrinsic
					exercise		contractual		value
		Shares			price		(years)		(thousands)
	Outstanding, January 1, 2015		6,940,395		$	0.66		6.97	$	625,412
	Granted		1,000			0.19
	Exercised / Expired		(195,587	)		0.49
	Outstanding, March 31, 2015		6,745,808		$	0.66		5.34	$	56,830
	Vested and exercisable, March 31, 2015		5,929,916		$	0.67		4.92	$	56,830

2_SIGNIFICANT_ACCOUNTING_POLIC3

2. SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Accounting Policies [Abstract]
Raw materials	$696	$884
Work in process	335	304
Finished goods	251	136
Inventory reserve	-133	-144
Total	$1,149	$1,180

2_SIGNIFICANT_ACCOUNTING_POLIC4

2. SIGNIFICANT ACCOUNTING POLICIES (Details 1) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, unless otherwise specified
Less accumulated depreciation	($1,917)	($1,845)
Total	515	587
Equipment
Property and equipment	1,391	1,391
Software
Property and equipment	737	737
Furniture and fixtures
Property and equipment	124	124
Leasehold Improvement
Property and equipment	$180	$180

3_FAIR_VALUE_OF_FINANCIAL_INST2

3. FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $)	Mar. 31, 2015	Dec. 31, 2014
In Thousands, except Share data, unless otherwise specified
Public offering warrants	-365	-587
Series B warrants	($991)	($1,483)
Total long-term liabilities at fair value	-1,356	-2,070
Level 1
Public offering warrants	0	0
Series B warrants	0	0
Total long-term liabilities at fair value	0	0
Level 2
Public offering warrants	0	0
Series B warrants	0	0
Total long-term liabilities at fair value	0	0
Level 3
Public offering warrants	-365	-587
Series B warrants	-991	-1,483
Total long-term liabilities at fair value	($1,356)	($2,070)

4_STOCKHOLDERS_DEFICIT_Details

4. STOCKHOLDERS' DEFICIT (Details ) (USD $)	Mar. 31, 2015	Dec. 31, 2014
Warrants outstanding	6,745,808	6,940,395
Warrants exercise price	$0.66	$0.66

4_STOCKHOLDERS_DEFICIT_Details1

4. STOCKHOLDERS' DEFICIT (Details 1)	3 Months Ended
	Mar. 31, 2015
Equity [Abstract]
New Issuance - For Cash	2,499,999
Series B Dividends	138,805
Option Exercised	168,558
Repayment of Loan	358,616
Total	3,165,978

4_STOCKHOLDERS_DEFICIT_Details2

4. STOCKHOLDERS' DEFICIT (Details 2) (Warrants)	3 Months Ended
	Mar. 31, 2015
Warrants
Outstanding, January 1, 2015	29,796,154
Issuances	2,249,422
Canceled / Expired	-3,590,522
Exercised	0
Outstanding, March 31, 2015	28,455,054

5_STOCK_OPTIONS_Details

5. STOCK OPTIONS (Details) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2015
Equity [Abstract]
Outstanding beginning balance, Shares	6,940,395
Granted, Shares	1,000
Exercised, Shares	195,587
Expired, Shares	195,587
Outstanding ending balance, Shares	6,745,808
Vested and exercisable ending balance	5,929,916
Outstanding beginning balance, Weighted average exercise price	$0.66
Granted, Weighted average exercise price	$0.19
Exercised, Weighted average exercise price	$0.49
Expired, Weighted average exercise price	$0.49
Outstanding ending balance, Weighted average exercise price	$0.66
Vested and exercisable ending balance	$0.67
Weighted Average Remaining Contractual Life (in years) Outstanding	5 years 4 months 2 days
Weighted Average Remaining Contractual Life (in years) Exercisable	4 years 11 months 19 days
Aggregate Intrinsic Value Outstanding, Beginning	$625,412
Aggregate Intrinsic Value Granted
Aggregate Intrinsic Value Exercised
Aggregate Intrinsic Value Outstanding, Ending	56,830
Aggregate Intrinsic Value Exercisable	$56,830

7_NOTES_PAYABLE_Details_Narrat

7 NOTES PAYABLE (Details Narrative) (USD $)	Mar. 31, 2015
In Thousands, unless otherwise specified
Debt Disclosure [Abstract]
Notes payble	$165
Interest rate	9.00%
Related party notes and accrued interest	$414