Guided Therapeutics (GTHP) S-1 24 Mar 16 IPO registration Financial data

Document and Entity Information

Document and Entity Information	12 Months Ended
	Dec. 31, 2015
Document And Entity Information
Entity Registrant Name	GUIDED THERAPEUTICS INC
Entity Central Index Key	924,515
Document Type	S1
Document Period End Date	Dec. 31, 2015
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 - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 35	$ 162
Accounts receivable, net of allowance for doubtful accounts of $95 and $76 at December 31, 2015 and 2014, respectively	190	338
Inventory, net of reserves of $118 and $144 at December 31, 2015 and 2014, respectively	1,119	1,180
Other current assets	780	99
Total current assets	2,124	1,779
Property and equipment, net	318	587
Debt issuance costs	48	564
Other assets	73	101
Total noncurrent assets	806	1,252
TOTAL ASSETS	2,563	3,031
CURRENT LIABILITIES:
Short-term notes payable, including related parties current portion of long term debt	752	646
Note payable, in default	133	123
Short-term convertible notes payable, net of discount	686	1,062
Accounts payable	1,824	1,733
Accrued liabilities	1,907	1,015
Deferred revenue	217	24
Total current liabilities	5,519	4,603
Warrants, at fair value	2,606	2,070
Long-term debt, net	0	40
Convertible note, net of discount	0	783
Total long-term liabilities	2,606	2,893
TOTAL LIABILITIES	8,125	7,496
STOCKHOLDERS' EQUITY :
Series B convertible preferred stock, $.001 par value; 3 shares authorized, zero and 1.2 shares issued and outstanding as of December 31, 2015 and 2014, respectively (liquidation preference of none in December 31, 2015 and $1,200 at December 31, 2014, respectively)	0	678
Series C convertible preferred stock, $.001 par value; 9.0 shares authorized, 5.6 shares issued and outstanding as of December 31, 2015 and none authorized or issued and outstanding at December 31, 2014. (Liquidation preference of $5,555 at December 31, 2015 and none at December 31, 2014).	2,052	0
Common stock, $.001 par value; 1,000,000 and 195,000 shares authorized, 2,371 and 969 shares issued and outstanding as of December 31, 2015 and 2014, respectively	236	97
Additional paid-in capital	114,845	107,952
Treasury stock, at cost	(132)	(132)
Accumulated deficit	(122,563)	(113,060)
TOTAL GUIDED THERAPEUTICS STOCKHOLDERS' DEFICIT	(5,562)	(4,465)
TOTAL STOCKHOLDERS’ DEFICIT	(5,562)	(4,465)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$ 2,563	$ 3,031

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
CURRENT ASSETS
Accounts receivable, net of allowance	$ 95	$ 76
Inventory, net of reserves	$ 118	$ 144
STOCKHOLDERS' EQUITY :
Series B convertible preferred stock, par value	$ 0.001	$ 0.001
Series B convertible preferred stock, authorized	3	3
Series B convertible preferred stock, issued	0	1.2
Series B convertible preferred stock, outstanding	0	1.2
Series B convertible preferred stock, liquidation preference	$ 0	$ 1,200
Series C convertible preferred stock, par value	$ .001	$ .001
Series C convertible preferred stock, authorized	9	9
Series C convertible preferred stock, issued	5.6	0
Series C convertible preferred stock, outstanding	5.6	0
Series C convertible preferred stock, liquidation preference	$ 5,555	$ 0
Common stock, par value	$ 0.001	$ 0.001
Common stock, Authorized	195,000	195,000
Common stock, Issued	2,371,017	96,889
Common stock, outstanding		96,889

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
REVENUE:
Sales - devices and disposables	$ 564	$ 758
Cost of goods sold	537	891
Gross Profit (loss)	27	(133)
Contract and grant revenue	42	65
OPERATING EXPENSES:
Research and development	1,477	2,788
Sales and marketing	718	1,164
General and administrative	4,101	4,649
Total operating expenses	6,296	8,601
Operating loss	(6,227)	(8,669)
OTHER INCOME (EXPENSES)
Other income	74	25
Interest expense	(1,317)	(979)
Loss on extinguishment of debt	0	(325)
Change in fair value of warrants	568	65
Total other expenses	(675)	(1,214)
LOSS  FROM OPERATIONS	(6,902)	(9,883)
PROVISION FOR INCOME TAXES	0	0
NET LOSS	(6,902)	(9,883)
DEEMED DIVIDENDS	(1,263)	0
PREFERRED STOCK DIVIDENDS	(1,338)	(152)
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS	$ (9,503)	$ (10,035)
BASIC AND DILUTED NET LOSS PER SHARE ATTRIBUTABLE TO COMMON STOCKHOLDERS (post 1:100 reverse stock split)	$ (7.42)	$ (13.02)
WEIGHTED AVERAGE SHARES OUTSTANDING	1,280	771

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS EQUITY - USD ($) $ in Thousands	Preferred Stock Series B	Preferred Stock Series C	Common Stock	Additional Paid-In Capital	Treasury Stock	Accumulated Deficit	Total
Beginning Balance, Amount at Dec. 31, 2013	$ 1,139	$ 0	$ 0	$ 101,840	$ (132)	$ (103,025)	$ (107)
Beginning Balance, Shares at Dec. 31, 2013	2	0	705
Preferred dividends						(152)	(152)
Conversion of preferred stock, Amount	$ (461)		$ 2	459			0
Conversion of preferred stock, Shares	(1)		23
Issuance of common stock and warrants, Amount				433			433
Issuance of stock options				61			61
Exercise of warrants and options into common stock, Amount			$ 0	96			96
Exercise of warrants and options into common stock, Shares			4
Stock-based compensation expense				886			886
Conversion of debts into common stock, Amount			$ 3	890			893
Conversion of debts into common stock, Shares			28
Net Loss						(9,883)	(9,883)
Ending Balance, Amount at Dec. 31, 2014	$ 678	$ 0	$ 97	107,952	(132)	(113,060)	(4,465)
Ending Balance, Shares at Dec. 31, 2014	1	0	969
Preferred dividends						(352)	(352)
Issuance of common stock and warrants, Amount			$ 11	1,327			1,338
Issuance of common stock and warrants, Shares			106
Conversion of Series C preferred stock to common stock, Amount		$ (840)	$ 99	1,727		(986)	0
Conversion of Series C preferred stock to common stock, Shares		(2)	990
Exercise of warrants and options into common stock, Amount			$ 11	132			143
Exercise of warrants and options into common stock, Shares			111
Stock-based compensation expense				1,008			1,008
Conversion of debts into common stock, Amount			$ 15	999			1,014
Conversion of debts into common stock, Shares			168
December 2014 public offering warrants exchange and common shares issuance, Amount			$ 3	1,368		(1,049)	322
December 2014 public offering warrants exchange and common shares issuance, Shares			27
Series B, Tranche A, warrant price adjustment				64		(64)	0
Series C preferred stock and warrant issuance, Amount	$ (678)	$ 2,892		268		(150)	2,332
Series C preferred stock and warrant issuance, Shares	(1)	8
Net Loss						(6,902)	(6,902)
Ending Balance, Amount at Dec. 31, 2015	$ 0	$ 2,052	$ 236	$ 114,845	$ (132)	$ (122,563)	$ (5,562)
Ending Balance, Shares at Dec. 31, 2015	0	6	2,371

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (6,902)	$ (9,883)
Adjustments to reconcile net loss to net cash used in operating activities
Bad debt expense	19	63
Depreciation and Amortization	1,054	1,240
Stock based compensation	1,008	886
Non-employee stock based compensation	400	0
Change in fair value of warrants	(568)	(65)
Changes in operating assets and liabilities:
Accounts receivable	129	(267)
Inventory	61	14
Other current assets	(681)	2
Other assets	28	254
Accounts payable	91	842
Deferred revenue	193	10
Accrued liabilities	1,125	296
Total adjustments	2,859	3,600
Net cash used in operating activities	(4,043)	(6,283)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to fixed assets	(8)	(150)
Net cash used in investing activities	(8)	(150)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from issuance of preferred stock and warrants, net	3,698	0
Net proceeds from issuance of common stock and warrants, net	720	1,730
Proceeds from debt financing, net of discount	425	5,263
Payment for debt issuance costs	(48)	(452)
Payments on notes	(1,014)	(656)
Proceeds from options and warrants exercised	143	97
Net cash provided by financing activities	3,924	5,982
NET CHANGE IN CASH AND CASH EQUIVALENTS	(127)	(451)
CASH AND CASH EQUIVALENTS, beginning of year	162	613
CASH AND CASH EQUIVALENTS, end of year	35	162
SUPPLEMENTAL SCHEDULE OF:
Cash paid for Interest	76	33
NONCASH INVESTING AND FINANCING ACTIVITIES:
Deemed dividend on beneficial conversion features of Series C Preferred stock	150	0
Deemed dividend on price changes for Series B preferred stock warrants	64	0
Deemed dividend on December 2014 public offering warrants	1,049	0
Term changes on Series B preferred stock and December 2014 public offering warrant resulting in transfer to equity	324	0
Issuance of common stock as debt repayment	1,014	0
Repayment of deferred compensation via issuance of preferred stock	100	0
Dividends on preferred stock	1,338	152
Conversion of accrued expenses into common stock	0	207
Payment of debt issuance costs via warrants and common stock	0	522
Conversion of convertible debt into common stock	0	893
Repayment of debt via issuance of common stock and warrants	0	1,697
Issuance of common stock as board compensation	$ 0	$ 355

1. Organization, Background, an

1. Organization, Background, and Basis of Presentation	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
1. Organization, Background, and Basis of Presentation	Guided Therapeutics, Inc. (formerly SpectRx, Inc.), together with its wholly owned subsidiary, InterScan, Inc. (formerly Guided Therapeutics, Inc.), collectively referred to herein as the “Company”, is a medical technology company focused on developing innovative medical devices that have the potential to improve healthcare. The Company’s primary focus is the continued commercialization of its LuViva non-invasive cervical cancer detection device and extension of its cancer detection technology into other cancers, including esophageal. The Company’s technology, including products in research and development, primarily relates to biophotonics technology for the non-invasive detection of cancers. Basis of Presentation All information and footnote disclosures included in the consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States. The Company’s prospects must be considered in light of the substantial risks, expenses and difficulties encountered by entrants into the medical device industry. This industry is characterized by an increasing number of participants, intense competition and a high failure rate. The Company has experienced net losses since its inception and, as of December 31, 2015, it had an accumulated deficit of approximately $122.6 million. Through December 31, 2015, 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 growing sales for 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 continued 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. On February 24, 2016, the Company implemented a 1:100 reverse stock split of its issued and outstanding common stock. The reverse stock split decreased the Company’s issued and outstanding shares of common stock from 237,101,702 shares of Common Stock to 2,371,007 shares as of that date. See Note 12, Subsequent Events. Unless otherwise specified, all per share amounts are reported on a post-stock split basis, as of December 31, 2015. 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. At December 31, 2015, the Company had a negative working capital of approximately $3.4 million, accumulated deficit of $122.6 million, and incurred a net loss of $6.9 million for the year then ended. Stockholders’ deficit totaled approximately $5.6 million at December 31, 2015, primarily due to recurring net losses from operations, deemed dividends on warrants and preferred stock, offset by proceeds from the exercise of options and warrants and proceeds from sales of stock. The Company’s capital-raising efforts are ongoing. If sufficient capital cannot be raised during the second quarter of 2016, 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. 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 2.8 million shares of its common stock outstanding at December 31, 2015, with exercise prices ranging between $1.03 and $105 per share. Exercises of these warrants would generate a total of approximately $6.7 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 public or private sale of debt or equity, and grants, if available.

2. SUMMARY OF SIGNIFICANT ACCOU

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
Accounting Policies [Abstract]
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant areas where estimates are used include the allowance for doubtful accounts, inventory valuation and input variables for Black-Scholes, Monte Carlo simulations and binomial calculations. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Guided Therapeutics, Inc. and its wholly owned subsidiary. Accounting Standard Updates In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for reporting periods beginning January 2018 with early adoption permitted in the first quarter of fiscal year 2017. The Company is evaluating the impact that adoption of this guidance will have on the determination or reporting of its financial results. In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period,” (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. ASU 2014-12 is effective for the reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company is evaluating the impact that adoption of this guidance will have on the determination or reporting of its financial results. In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern for a one year period subsequent to the date of the financial statements, as entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for all entities for the first annual period ending after December 15, 2016 and interim periods thereafter, with early adoption permitted. The Company is evaluating the impact that adoption of this guidance will have on the determination or reporting of its financial results. In April 2015, the FASB issued ASU 2015-03, “Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs,” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance is effective for reporting periods beginning after December 15, 2015 and interim periods within those fiscal years with early adoption permitted. ASU 2015-03 should be applied on a retrospective basis, wherein the balance sheet of each period presented should be adjusted to reflect the effects of adoption. The Company is evaluating the impact that adoption of this guidance will have on the determination or reporting of its financial results. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” (“ASU 2015-11”). ASU 2015-11 requires inventory be measured at the lower of cost and net realizable value and options that currently exist for market value be eliminated. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for reporting periods beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. ASU 2015-11 should be applied prospectively. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which amends ASC 835-30, “Interest - Imputation of Interest”. The ASU clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be presented as an asset and amortized rateably over the term of the line of credit arrangement, regardless of whether there are outstanding borrowings on the arrangement. The effective date will be the first quarter of fiscal year 2016 and will be applied retrospectively. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments.” This ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effective date will be the first quarter of fiscal year 2016. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes.” The amendments in ASU 2015-17 seek to simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early application permitted for all entities as of the beginning of an interim or annual reporting period. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in ASU 2016-01, among other things, require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requires public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost. The effective date will be the first quarter of fiscal year 2018. The Company is evaluating the impact the adoption of this new standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”that requires lessees to recognize on the balance sheet the assets and liabilities associated with the rights and obligations created by those leases. The guidance for lessors is largely unchanged from current U.S. GAAP. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current U.S. GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as finance or operating lease. The update is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. Except as noted above, the guidance issued by the FASB during the current year is not expected to have a material effect on the Company’s consolidated financial statements. 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. 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. 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. Inventory Valuation All inventories are stated at lower of cost or market, with cost determined substantially on a “first-in, first-out” basis. Selling, general, and administrative expenses are not inventoried, but are charged to expense when purchased. At December 31, 2015 and December 31, 2014, our inventories were as follows (in thousands): Year Ended December 31, 2015 2014 Raw materials $ 686 $ 884 Work in process 186 304 Finished goods 365 136 Inventory reserve (118 ) (144 ) Total $ 1,119 $ 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 December 31, 2015 and 2014 (in thousands): Year Ended December 31, 2015 2014 Equipment $ 1,377 $ 1,391 Software 740 737 Furniture and fixtures 124 124 Leasehold Improvement 199 180 2,440 2,432 Less accumulated depreciation (2,122 ) (1,845 ) Total $ 318 $ 587 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. Other Assets Other assets primarily consist of short and long-term deposits for various tooling inventory that are being constructed for the Company. At December 31, 2015 and 2014, such balances were approximately $413,000 and $72,000, respectively. 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 $47,000 and $50,000 in 2015 and 2014, respectively. Accrued Liabilities Accrued liabilities are summarized as follows at December 31, 2015 and 2014 (in thousands): As of December 31, 2015 2014 Accrued compensation $ 1,235 $ 447 Accrued professional fees 154 203 Deferred rent 36 54 Accrued warranty 82 119 Accrued vacation 177 144 Other accrued expenses 223 48 Total $ 1,907 $ 1,015 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 2015 and 2014, the majority of the Company’s revenues were from four and two customers, respectively. Revenue from these customers totaled approximately $280,000 or 73% and approximately $414,000 or 50% of total revenue for the year ended December 31, 2015 and 2014, respectively. Accounts receivable due from those customers represents 62% and 17% as of December 31, 2015 and 2014, 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, 2015 and 2014, 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, 2015, the Company has approximately $27.8 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. 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 or Binomial 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, 2015 and 2014, share-based compensation for options attributable to employees, officers and Board members were approximately $1,008,000 and $886,000, 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, 2015, the Company had no unrecognized compensation costs related to granted stock options to be recognized over the remaining vesting period of approximately three years.

3. Fair Value of Financial Inst

3. Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
3. Fair Value of Financial Instruments	The guidance for fair value measurements, ASC820, Fair Value Measurements and Disclosures · Level 1 – Quoted market prices in active markets for identical assets and liabilities; · Level 2 – Inputs, other than level 1 inputs, either directly or indirectly observable; and · Level 3 – Unobservable inputs developed using internal estimates and assumptions (there is little or no market date) which reflect those that market participants would use. The Company records its derivative activities at fair value, which consisted of warrants as of December 31, 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 December 31, 2015 and 2014: FAIR VALUE MEASUREMENTS ( In Thousands) Description Level 1 Level 2 Level 3 Total Date Warrants issued in connection with the issuance of Series C preferred stock $ — $ — $ (1,145 ) $ (1,145 ) December 31, 2015 Warrants issued in connection with the issuance of Series B preferred stock $ (1,461 ) $ (1,461 ) December 31, 2015 Total long-term $ — $ — $ (2,606 ) $ (2,606 ) Description Level 1 Level 2 Level 3 Total Date Warrants issued in connection with the December 2014 public offering of common stock $ — $ — $ (587 ) $ (587 ) December 31, 2014 Warrants issued in connection with the issuance of Series B preferred stock $ — $ — $ (1,483 ) $ (1,483 ) December 31, 2014 Total long-term liabilities at fair value $ — $ — $ (2,070 ) $ (2,070 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 2014 Public Offering Exchanged Warrants Series B Warrants Series C Warrants Total Balance, December 31, 2014 $ (587 ) $ (1,483 ) $ — $ (2,070 ) Warrants issued during the period — — (1,428 ) (1,428 ) Change in fair value during the period 263 22 283 568 Transfer to equity as a result of changes 324 — — 324 Balance, December 31, 2015 $ — $ (1,461 ) $ (1,145 ) $ (2,606 )

4. Stockholders Equity

4. Stockholders Equity	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
4. Stockholders’ Equity	Common Stock The Company has authorized 1,000,000,000 shares of common stock with $0.001 par value, of which 2,371,017 were issued and outstanding as of December 31, 2015. For the year ended December 31, 2014, there were 195,000,000 authorized shares of common stock, of which 96,889 were issued and outstanding. For the year ended December 31, 2015, the Company issued 1,402,128 shares of common stock as listed below: Sales of unregistered securities - Issuance - For Cash 40,000 Issuance - For Debt Repayment 152,117 Series C Conversion 1,006,777 Series C Dividends 18,562 Series B Dividends 11,086 Option Exercised 1,786 Warrant Exercised - Cashless 95,413 Warrant Exercised – For Cash 13,500 Issued for December 2014 public offering warrant exchange 26,190 Issued for Consulting Services 36,697 Total 1,402,128 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; 3,000 shares of preferred stock as Series B Convertible Preferred Stock, of which none and 1,277 shares were issued and outstanding at December 31, 2015 and December 31, 2014, respectively; and 9,000 shares of preferred stock as Series C Convertible Preferred Stock, of which 5,555 and 0 shares were issued and outstanding at December 31, 2015 and December 31, 2014, respectively. Series B Convertible Preferred Stock Pursuant to the terms of the Series B Preferred Stock set forth in the Series B designations, shares of Series B Preferred Stock were convertible into common stock by their holder at any time, and were 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. Holders of the Series B Preferred Stock were 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. Preferred dividends totaled approximately $352,000 and $152,000 for 2015 and 2014, respectively. Dividends were paid via issuance of common stock. The Series B Preferred Stock was originally issued with Tranche A warrants to purchase 18,581 shares of common stock and Tranche B warrants purchasing 18,581 shares of common stock, both at an exercise price of $108.00 per share. On June 30, 2015, as consideration for obtaining consents to an amendment to the Series B designations, the Company reduced the exercise price of the Tranche A warrants from $108.00 to $10.455 per share, and the exercise price of the Tranche B warrants from $10.455 to $9.00 per share. The change in exercise price of these warrants resulted in a deemed dividend totaling $64,000 that has been recorded as an increase to additional paid-in capital with an offsetting charge to retained earnings. The deemed dividend has been subtracted from income (added to the loss) in computing loss per common stockholder. At December 31, 2015, as a result of the operation of certain anti-dilution provisions, the Tranche B warrants were convertible into 1,292,819 shares of common stock. These warrants are re-measured based upon their fair value each reporting period and classified as a liability on the Balance Sheet. Series C Convertible Preferred Stock On June 29, 2015, the Company entered into a securities purchase agreement with certain accredited investors for the issuance and sale of an aggregate of 6,737 shares of Series C convertible preferred stock, at a purchase price of $750 per share and a stated value of $1,000 per share. On September 3, 2015 the Company entered into an interim agreement amending the securities purchase agreement to provide for certain of the investors to purchase an additional aggregate of 1,166 shares. Total cash and non-cash expenses were valued at $853,000, resulting in net proceeds of $3,698,000. In connection with the transaction, the Company issued five-year warrants exercisable for an aggregate of 1,247,737 shares of common stock at an exercise price of $9.50 per share. Pursuant to the Series C certificate of designations, shares of Series C preferred stock are convertible into common stock by their holder at any time, and may be mandatorily convertible upon the achievement of specified average trading prices for the Company’s common stock. At December 31, 2015, there were 5,555 shares outstanding with a conversion price of $1.03 per share, such that each share of Series C preferred stock would convert into approximately 97,324 shares of the Company’s common stock, subject to customary adjustments, including for any accrued but unpaid dividends and pursuant to certain anti-dilution provisions, as set forth in the Series C certificate of designations. The conversion price will automatically adjust downward to 80% of the then-current market price of the Company’s common stock 15 trading days after any reverse stock split of the Company’s common stock, and 5 trading days after any conversions of the Company’s outstanding convertible debt. Holders of the Series C preferred stock are entitled to quarterly cumulative dividends at an annual rate of 12.0% until 42 months after the original issuance date (the “Dividend End Date”), payable in cash or, subject to certain conditions, the Company’s common stock. In addition, upon conversion of the Series C Preferred Stock prior to the Dividend End Date, the Company will also pay to the converting holder a “make-whole payment” equal to the amount of unpaid dividends through the Dividend End Date on the converted shares. The Series C preferred stock generally has no voting rights except as required by Delaware law. Upon the Company’s liquidation or sale to or merger with another corporation, each share will be entitled to a liquidation preference of $1,000, plus any accrued but unpaid dividends. The Company has provisionally allocated net proceeds totaling $935,200 to the fair value of the Series C preferred stock. The effective conversion price of $935,000 allocated to the Series C preferred stock resulted in an associated beneficial conversion feature totaling $148,000 that has been recorded as an increase to additional paid-in capital with an offsetting charge to retained earnings representing a deemed dividend. The deemed dividend has been subtracted from income (added to the loss) in computing loss per common stockholder. In addition, the purchasers of the Series C preferred stock received, on a pro rata basis, warrants exercisable to purchase an aggregate of approximately 106.4 million shares of Company’s common stock. The warrants contain anti-dilution adjustments in the event that the Company issues shares of common stock, or securities exercisable for or convertible into shares of common stock, at prices below the exercise price of such warrants. As a result of the anti-dilution protection, the Company is required to account for the warrants as a liability recorded at fair value each reporting period. The Company has valued the warrants using a Binomial model and allocated $1,349,000 to the fair value of the warrants. At December 31, 2015, the exercise price per share was $1.03. Stock Options Under the Company’s 1995 Stock Plan (the “Plan”), a total of 26,616 shares remained available at December 31, 2015 and 105,936 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 132,552 shares of common stock as of December 31, 2014. The Plan allows the issuance of incentive stock options, nonqualified stock options, and stock purchase rights. The exercise price of options is determined by the Company’s board of directors, but incentive stock options must be granted at an exercise price equal to the fair market value of the Company’s common stock as of the grant date. Options historically granted have generally become exercisable over four years and expire ten years from the date of grant. The fair value of stock options granted in 2015 and 2014 were estimated using the Black-Scholes option pricing model. A summary of the assumptions used in determining the fair value of options follows: 2015 2014 Expected volatility 152.32 % 157.70 % Expected option life in years 9.98 9.98 Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 1.33 % 2.55 % Weighted average fair value per option at grant date $ 0.49 $ 0.40 Application of the Black-Scholes option pricing model involves assumptions that are judgmental and affect compensation expense. Historical information is the primary basis for the selection of expected volatility, expected option life and expected dividend yield. Expected volatility is based on the most recent historical period equal to the expected life of the option. The risk-free interest rate is based on yields of U.S. Treasury zero-coupon issues with a term equal to the expected life of the option on the date the stock options were granted. Stock option activity for each of the two years ended December 31, 2015 as follows: 2015 2014 Weighted Average Exercise Weighted Average Exercise Shares Price Shares Price Outstanding at beginning of year 69,404 $ 66.00 65,312 $ 68.00 Options granted 42,140 $ 12.00 7,548 $ 40.00 Options exercised (1,786 ) $ 48.00 (2,424 ) $ 32.00 Options expired/forfeited (3,822 ) $ 43.00 (1,031 ) $ 68.00 Outstanding at end of year 105,936 $ 45.00 69,404 $ 66.00 Options vested and exercisable at year-end 90,411 $ 49.00 59,881 $ 66.00 Options available for grant at year-end 26,616 63,148 Aggregate intrinsic value – options exercised $ — $ 497 Aggregate intrinsic value – options outstanding $ — $ 4,941 Aggregate intrinsic value – options vested and exercisable $ — $ 6,129 Options unvested, balance at beginning of year (1) 9,523 10,672 $ 112.00 Options granted (1) 42,140 $ 40.00 7,548 $ 40.00 Vested (1) (34,383 ) $ 66.00 (7,666 ) $ 66.00 Cancelled/Forfeited (2,455 ) $ 68.00 (1,031 $ 68.00 Balance, end of period (1) 14,825 9,523 — __________________ (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 The following table summarizes transactions involving the Company’s outstanding warrants to purchase common stock for the year ended December 31, 2015: Warrants (Underlying Shares) Outstanding, January 1, 2015 297,961 Issuances 2,751,872 Canceled / Expired (35,973 ) Exercised (211,476 ) Outstanding, December 31, 2015 2,802,384 The Company had the following shares reserved for the warrants as of December 31, 2015: Warrants (Underlying Shares) Exercise Price Per Share Expiration Date 4,399 (1) $68.00 March 31, 2016 2,852 (2) $105.00 November 20, 2016 18,581 (3) $10.46 May 23, 2018 1,292,820 (3) $1.03 May 23, 2018 2,000 (4) $50.00 April 23, 2019 5,618 (4) $45.00 May 22, 2019 1,842 (5) 38.00 September 10, 2019 3,255 (6) $46.08 September 27, 2019 7,553 (7) $28.13 December 2, 2019 83,927 (8) $9.00 December 2, 2020 83,927 (8) $11.00 December 2, 2020 20,000 (9) $25.50 March 30, 2018 17,547 (10) $11.88 June 29, 2020 526,421 (11) $1.03 June 29, 2020 273,684 (12) $1.03 September 4, 2020 289,737 (13) $1.03 September 21, 2020 5,163 (14) $11.88 September 4,2020 157,895 (15) $1.03 October 23, 2020 5,163 (16) $11.88 October 23,2020 2,802,384 (1) Issued in February 2014 as part of a buy-back of a minority interest in Interscan in December 2012. (2) Issued as part of a November 2011 private placement. (3) Issued in June 2015 in exchange for warrants originally issued as part of a May 2013 private placement. (4) Issued to a placement agent in conjunction with an April 2014 private placement. (5) Issued to a placement agent in conjunction with a September 2014 private placement. (6) Issued as part of a September 2014 Regulation S offering. (7) Issued to a placement agent in conjunction with a 2014 public offering. (8) Issued in June 2015 in exchange for warrants originally issued as part of a 2014 public offering. (9) Issued as part of a March 2015 private placement. (10) Issued to a placement agent in conjunction with a June 2015 private placement. (11) Issued as part of a June 2015 private placement. (12) Issued as part of a June 2015 private placement. (13) Issued as part of a June 2015 private placement. (14) Issued to a placement agent in conjunction with a June 2015 private placement. (15) Issued as part of a June 2015 private placement. (16) Issued to a placement agent in conjunction with a June 2015 private placement.

5. Income Taxes

5. Income Taxes	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
5. Income Taxes	The Company has incurred net operating losses (“NOLs”) since inception. As of December 31, 2015, the Company had NOL carryforwards available through 2034 of approximately $73.0 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): 2015 2014 Deferred tax assets: $ 626 $ 466 Net operating loss carry forwards Deferred tax liabilities: Intangible assets and other 27,770 25,994 28,396 26,460 Valuation allowance (28,396 ) (26,460 ) $ 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: 2015 2014 Statutory federal tax rate 34 % 34 % State taxes, net of federal benefit 4 4 Nondeductible expenses — — Valuation allowance (38 ) (38 ) 0 % 0 %

6. Commitments and Contingencie

6. Commitments and Contingencies	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
6. Commitments and Contingencies	Operating Leases In December 2009, the Company moved its offices, which comprise its administrative, research and development, marketing and production facilities to 5835 Peachtree Corners East, Suite D, Norcross, Georgia 30092. The Company leases approximately 23,000 square feet under a lease that expires in June 2017. The fixed monthly lease expense is approximately $15,000 plus common charges. The Company also leases office and equipment under operating lease agreements with monthly payments of approximately $2,000. These leases expire at various dates through April 2016. Future minimum rental payments at December 31, 2015 under non-cancellable operating leases for office space and equipment are as follows (in thousands): Year Amount 2016 $ 201 2017 98 Total $ 299 Rental expense was approximately $170, 000 in 2015 and 2014. 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 December 31, 2015 and December 31, 2014, there was no accrual recorded for any potential losses related to pending litigation. Contracts At December 31, 2015 and 2014, the Company had a royalty agreement with Freedom Meditech, entered into on August 26, 2008, in which the Company receives quarterly royalty payments on Freedom Meditech’ s sales of products using technology licensed from the Company. The royalty payment equals 3% of net sales of licensed products covered by a valid claim. The aggregate royalties payable are capped at $4,000,000. Freedom Meditech’ s obligation to pay royalties with respect to sales in a particular country until the earlier of the date of expiration of the last valid claim in such country or the aggregate royalty cap is reached. For the years ended December 31, 2015 and 2014, the Company received approximately $36,000 and 40,000 in royalties, respectively.

7. License and Technology Agree

7. License and Technology Agreements	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
7. License and Technology Agreements	As part of the Company’s efforts to conduct research and development activities and to commercialize potential products, the Company, from time to time, enters into agreements with certain organizations and individuals that further those efforts but also obligate the Company to make future minimum payments or to remit royalties ranging from 1% to 3% of revenue from the sale of commercial products developed from the research. The Company generally is required to make minimum royalty payments for the exclusive license to develop certain technology.

8. NOTES PAYABLE

8. NOTES PAYABLE	12 Months Ended
	Dec. 31, 2015
Debt Disclosure [Abstract]
8. NOTES PAYABLE	Short Term Notes Payable At December 31, 2015 and 2014, the Company maintained notes payable to Premium Assignment Corporation, an insurance premium financing company, of approximately $172,000 and $100,000, respectively. These notes are 10 month straight-line amortizing loan dated June 24, 2015 and June 24, 2014. The notes carry annual interest of 5.2% and 4.6%, respectively. The balance due to on the Premium Assignment note was approximately $70,000 and $37,000 at December 31, 2015 and 2014, respectively. Note Payable in Default At December 31, 2015, the Company maintained a note payable totaling approximately $133,000 of principal and accrued interest. The note accrues interest at 9% with a 16% default rate and requires monthly payments of $10,000. As of December 31, 2015 the note is accruing interest at the default rate and is past due. As of December 31, 2014, the balance was $163,000 and was not in default. Short Term Convertible Note Payable On September 10, 2014, the Company sold a secured promissory note an accredited investor 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, May 4, 2015, June 1, 2015, June 16, 2015, June 29, 2015, January 21, January 29 and February 12, 2016 the Company amended the terms of the note to extend the maturity ultimately until August 31, 2016. 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, the holder may convert the outstanding balance into shares of common stock at a conversion price per share equal to the lower of (1) $25.0 or (2) 75% of the lowest daily volume weighted average price of the common stock during the five days prior to conversion. If the conversion price at the time of any conversion is lower than $15.00, the Company has the option of delivering the conversion amount in cash in lieu of shares of common stock. As of December 31, 2015, the holder had converted $5,395 in outstanding principal and accrued interest into 90,240 shares of common stock. The Company paid a total of $65,000 in loan modification fees. At December 31, 2015 and 2014, the balance on the note was approximately $686,000 and $1,062,000, respectively. The original issue discount of $560,000 was fully amortized as of June 30, 2015. Convertible Debt On April 23, 2014, the Company entered into a securities purchase agreement with an accredited investor, pursuant to which the Company sold 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 the investor 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. As of July 1, 2015, the notes were repaid in full. The balance at December 31, 2014 was $783,000. The Company paid the investor a commitment fee for entering into the purchase agreement in the form of 3,218 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 was fully amortized at December 31, 2015. Total amortization expense for the year ended December 31, 2015 and 2014 was $516,000 and $328,000, respectively. In connection with the sale of the convertible notes, the Company issued its placement agent warrants exercisable for 2,000 shares of common stock at $50.00 per share with an expiration date of April 23, 2019, and warrants exercisable for 5,618 shares of common stock at $45.00 per share with an expiration date of May 22, 2019. Prior to repayment in full, the Company had issued a total of 252,804 shares of common stock in conjunction with conversions of the senior convertible notes. Loss on Extinguishment of Debt As part of the Company’s December 2014 public offering of common stock, the Company repaid approximately $1.4 million of debt via the issuance of 77,005 shares of common stock and five-year warrants to purchase an additional 3,850,252 shares at an exercise price of $22.50 per share. Pursuant to the senior convertible note purchase agreement, the Company had to pay a prepayment penalty of 25% of the amount prepaid. The penalty on the transaction was approximately $325,000 and was charged to loss on extinguishment of debt on the statement of operations for the year ended December 31, 2014. There was no loss on extinguishment of debt in the year ended December 31, 2015.

9. Related Party Transactions

9. Related Party Transactions	12 Months Ended
	Dec. 31, 2015
Related Party Transactions [Abstract]
9. Related Party Transactions	As of December 31, 2015 and 2014, the Company maintained notes payable and accrued interest to related parties totaling approximately $682,000 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%. Included in the short-term notes payable, related parties, on the accompanying Balance Sheet. Certain of the Company’s directors and officers invested a total of $182,603 in the December 2014 public offering and received 8,116 shares of common stock, as well as five-year warrants to purchase an additional 4,058 shares at $22.50 per share. Directors and Officers holding the Company’s Series B preferred stock participated in the issuance of the Company’s Series C preferred stock in the second half of 2015 by exchanging a total of $525,000 in liquidation value of Series B preferred stock and $400,000 in cash, and received 1,233 shares of Series C preferred stock and five-year warrants to purchase an additional 131,526 shares.

10. Valuation and Qualifying Ac

10. Valuation and Qualifying Accounts	12 Months Ended
	Dec. 31, 2015
Valuation and Qualifying Accounts [Abstract]
10. Valuation and Qualifying Accounts	Allowance for Doubtful Accounts The Company has the following allowances for doubtful accounts (in thousands): Year Ended December 31, 2015 2014 Beginning balance $ 76 $ 18 Additions / (Adjustments) 19 58 Balance $ 95 $ 76 Inventory Reserves The Company has the following reserves for inventory balance (in thousands): Year Ended December 31, 2015 2014 Beginning balance $ 144 $ 184 Additions / (Adjustments) (26 ) (40 ) Balance $ 118 $ 144

11. LOSS PER COMMON SHARE

11. LOSS PER COMMON SHARE	12 Months Ended
	Dec. 31, 2015
Earnings Per Share [Abstract]
11. LOSS PER COMMON SHARE	Basic net loss per share attributable to common stockholders amounts are computed by dividing the net loss plus preferred stock dividends and deemed dividends on preferred stock by the weighted average number of shares outstanding during the period.

12. Subsequent Events

12. Subsequent Events	12 Months Ended
	Dec. 31, 2015
Notes to Financial Statements
12. Subsequent Events	On February 11, 2016, the Company entered into a securities purchase agreement with an accredited investor for the issuance and sale on February 12, 2016 of $1.4375 million in aggregate principal amount of a senior secured convertible note for an aggregate purchase price of $1.15 million (a 20% original issue discount). In addition, the investor received a warrant exercisable to purchase an aggregate of approximately 179.7 million shares of the Company’s common stock. The convertible note matures on the second anniversary of issuance and, in addition to the 20% original issue discount, accrues interest at a rate of 17% per year. The Company will pay monthly interest coupons and, beginning six months after issuance, will pay amortized quarterly principal payments. If the Company does not receive, on or before the first anniversary after issuance, an aggregate of at least $3.0 million from future equity or debt financings or non-dilutive grants, then the holder will have the option of accelerating the maturity date to the first anniversary of issuance. The Company may prepay the convertible note, in whole or in part, without penalty, upon 20 days’ prior written notice. Subject to resale restrictions under Federal securities laws and the availability of sufficient authorized but unissued shares of the Company’s common stock, the convertible note is convertible at any time, in whole or in part, at the holder’s option, into shares of the Company’s common stock, at a conversion price equal to the lesser of $0.008 per share (pre-stock split) or 70% of the average closing price per share for the five trading days prior to issuance, subject to certain customary adjustments and anti-dilution provisions contained in the convertible note. The convertible note includes customary event of default provisions and a default interest rate of the lesser of 19% or the maximum amount permitted by law. Upon the occurrence of an event of default, the holder may require the Company to redeem the convertible note at 120% of the outstanding principal balance. The convertible note is secured by a lien on all of the Company’s assets, including its intellectual property, pursuant to a security agreement entered into by the Company and GPB in connection with the transaction. The warrant is exercisable at any time, pending availability of sufficient authorized but unissued shares of the Company’s common stock, at an exercise price per share equal to the conversion price of the convertible note, subject to certain customary adjustments and anti-dilution provisions contained in the warrant. The warrant has a five-year term. The Company used a placement agent in connection with the transaction. For its services, the placement agent received a cash placement fee equal to 4% of the aggregate gross proceeds from the transaction and a warrant to purchase shares of common stock equal to an aggregate of 6% of the total number of shares underlying the securities sold in the transaction, at an exercise price equal to, and terms otherwise identical to, the warrant issued to the investor. Finally, the Company agreed to reimburse the placement agent for its reasonable out-of-pocket expenses. In connection with the transaction, on February 12, 2016, the Company and the investor entered into a four-year consulting agreement, pursuant to which the investor will provide management consulting services to the Company in exchange for a royalty payment, payable quarterly, equal to 3.5% of the Company’s revenues from the sale of products. On February 24, 2016, the Company implemented a 1:100 reverse stock split of all of its issued and outstanding common stock. As a result of the reverse stock split, every 100 shares of issued and outstanding common stock of the Company were converted into 1 share. All fractional shares created by the reverse stock split were rounded to the nearest whole share. The reverse stock split decreased the Company’s issued and outstanding shares of common stock from 287,729,113 shares to 2,877,291 shares. The number of the authorized shares did not change.

2. SIGNIFICANT ACCOUNTING POLIC

2. SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 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 binomial calculations.
Principles of Consolidation	The accompanying consolidated financial statements include the accounts of Guided Therapeutics, Inc. and its wholly owned subsidiary.
Accounting Standards Updates	In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” (“ASU 2014-09”). ASU 2014-09 outlines a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five step analysis in determining when and how revenue is recognized. The new model will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. ASU 2014-09 is effective for reporting periods beginning January 2018 with early adoption permitted in the first quarter of fiscal year 2017. The Company is evaluating the impact that adoption of this guidance will have on the determination or reporting of its financial results. In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide that a Performance Target Could be Achieved after the Requisite Service Period,” (“ASU 2014-12”). ASU 2014-12 requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. ASU 2014-12 is effective for the reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company is evaluating the impact that adoption of this guidance will have on the determination or reporting of its financial results. In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern,” (“ASU 2014-15”). ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern for a one year period subsequent to the date of the financial statements, as entity must provide certain disclosures if conditions or events raise substantial doubt about the entity’s ability to continue as a going concern. The guidance is effective for all entities for the first annual period ending after December 15, 2016 and interim periods thereafter, with early adoption permitted. The Company is evaluating the impact that adoption of this guidance will have on the determination or reporting of its financial results. In April 2015, the FASB issued ASU 2015-03, “Imputation of Interest: Simplifying the Presentation of Debt Issuance Costs,” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance is effective for reporting periods beginning after December 15, 2015 and interim periods within those fiscal years with early adoption permitted. ASU 2015-03 should be applied on a retrospective basis, wherein the balance sheet of each period presented should be adjusted to reflect the effects of adoption. The Company is evaluating the impact that adoption of this guidance will have on the determination or reporting of its financial results. In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory,” (“ASU 2015-11”). ASU 2015-11 requires inventory be measured at the lower of cost and net realizable value and options that currently exist for market value be eliminated. ASU 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for reporting periods beginning after December 15, 2016 and interim periods within those fiscal years with early adoption permitted. ASU 2015-11 should be applied prospectively. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. In August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements,” which amends ASC 835-30, “Interest - Imputation of Interest”. The ASU clarifies the presentation and subsequent measurement of debt issuance costs associated with lines of credit. These costs may be presented as an asset and amortized rateably over the term of the line of credit arrangement, regardless of whether there are outstanding borrowings on the arrangement. The effective date will be the first quarter of fiscal year 2016 and will be applied retrospectively. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments.” This ASU requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The effective date will be the first quarter of fiscal year 2016. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. In November 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740) Balance Sheet Classification of Deferred Taxes.” The amendments in ASU 2015-17 seek to simplify the presentation of deferred income taxes and require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early application permitted for all entities as of the beginning of an interim or annual reporting period. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. In January 2016, the FASB issued ASU 2016-01, "Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in ASU 2016-01, among other things, require equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; requires public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables); and eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate fair value that is required to be disclosed for financial instruments measured at amortized cost. The effective date will be the first quarter of fiscal year 2018. The Company is evaluating the impact the adoption of this new standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)”that requires lessees to recognize on the balance sheet the assets and liabilities associated with the rights and obligations created by those leases. The guidance for lessors is largely unchanged from current U.S. GAAP. Under the new guidance, a lessee will be required to recognize assets and liabilities for leases with lease terms of more than 12 months. Consistent with current U.S. GAAP, the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as finance or operating lease. The update is effective for reporting periods beginning after December 15, 2018. Early adoption is permitted. The Company is evaluating the impact adoption of this guidance will have on determination or reporting of its financial results. Except as noted above, the guidance issued by the FASB during the current year is not expected to have a material effect on the Company’s consolidated financial statements.
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.
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. 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.
Inventory Valuation	All inventories are stated at lower of cost or market, with cost determined substantially on a “first-in, first-out” basis. Selling, general, and administrative expenses are not inventoried, but are charged to expense when purchased. At December 31, 2015 and December 31, 2014, our inventories were as follows (in thousands): Year Ended December 31, 2015 2014 Raw materials $ 686 $ 884 Work in process 186 304 Finished goods 365 136 Inventory reserve (118 ) (144 ) Total $ 1,119 $ 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 December 31, 2015 and 2014 (in thousands): Year Ended December 31, 2015 2014 Equipment $ 1,377 $ 1,391 Software 740 737 Furniture and fixtures 124 124 Leasehold Improvement 199 180 2,440 2,432 Less accumulated depreciation (2,122 ) (1,845 ) Total $ 318 $ 587
Debt issuance cost	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.
Other Assets	Other assets primarily consist of short and long-term deposits for various tooling inventory that are being constructed for the Company. At December 31, 2015 and 2014, such balances were approximately $413,000 and $72,000, respectively.
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 $47,000 and $50,000 in 2015 and 2014, respectively.
Accrued Liabilities	Accrued liabilities are summarized as follows at December 31, 2015 and 2014 (in thousands): As of December 31, 2015 2014 Accrued compensation $ 1,235 $ 447 Accrued professional fees 154 203 Deferred rent 36 54 Accrued warranty 82 119 Accrued vacation 177 144 Other accrued expenses 223 48 Total $ 1,907 $ 1,015
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 2015 and 2014, the majority of the Company’s revenues were from four and two customers, respectively. Revenue from these customers totaled approximately $280,000 or 73% and approximately $414,000 or 50% of total revenue for the year ended December 31, 2015 and 2014, respectively. Accounts receivable due from those customers represents 62% and 17% as of December 31, 2015 and 2014, 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, 2015 and 2014, 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, 2015, the Company has approximately $27.8 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.
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 or Binomial 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, 2015 and 2014, share-based compensation for options attributable to employees, officers and Board members were approximately $1,008,000 and $886,000, 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, 2015, the Company had no unrecognized compensation costs related to granted stock options to be recognized over the remaining vesting period of approximately three years.

2. SIGNIFICANT ACCOUNTING POL20

2. SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventory Valuation	Year Ended December 31, 2015 2014 Raw materials $ 686 $ 884 Work in process 186 304 Finished goods 365 136 Inventory reserve (118 ) (144 ) Total $ 1,119 $ 1,180
Property and Equipment	Year Ended December 31, 2015 2014 Equipment $ 1,377 $ 1,391 Software 740 737 Furniture and fixtures 124 124 Leasehold Improvement 199 180 2,440 2,432 Less accumulated depreciation (2,122 ) (1,845 ) Total $ 318 $ 587
Accrued Liabilities	As of December 31, 2015 2014 Accrued compensation $ 1,235 $ 447 Accrued professional fees 154 203 Deferred rent 36 54 Accrued warranty 82 119 Accrued vacation 177 144 Other accrued expenses 223 48 Total $ 1,907 $ 1,015

3. Fair Value of Financial In21

3. Fair Value of Financial Instruments (Tables)	12 Months Ended
	Dec. 31, 2015
Fair Value Of Financial Instruments Tables
Schedule of fair value measurements	FAIR VALUE MEASUREMENTS ( In Thousands) Description Level 1 Level 2 Level 3 Total Date Warrants issued in connection with the issuance of Series C preferred stock $ — $ — $ (1,145 ) $ (1,145 ) December 31, 2015 Warrants issued in connection with the issuance of Series B preferred stock $ (1,461 ) $ (1,461 ) December 31, 2015 Total long-term $ — $ — $ (2,606 ) $ (2,606 ) Description Level 1 Level 2 Level 3 Total Date Warrants issued in connection with the December 2014 public offering of common stock $ — $ — $ (587 ) $ (587 ) December 31, 2014 Warrants issued in connection with the issuance of Series B preferred stock $ — $ — $ (1,483 ) $ (1,483 ) December 31, 2014 Total long-term liabilities at fair value $ — $ — $ (2,070 ) $ (2,070 ) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) December 2014 Public Offering Exchanged Warrants Series B Warrants Series C Warrants Total Balance, December 31, 2014 $ (587 ) $ (1,483 ) $ — $ (2,070 ) Warrants issued during the period — — (1,428 ) (1,428 ) Change in fair value during the period 263 22 283 568 Transfer to equity as a result of changes 324 — — 324 Balance, December 31, 2015 $ — $ (1,461 ) $ (1,145 ) $ (2,606 )

4. Stockholders Equity (Tables)

4. Stockholders Equity (Tables)	12 Months Ended
	Dec. 31, 2015
Equity [Abstract]
Common stock activity	Sales of unregistered securities - Issuance - For Cash 40,000 Issuance - For Debt Repayment 152,117 Series C Conversion 1,006,777 Series C Dividends 18,562 Series B Dividends 11,086 Option Exercised 1,786 Warrant Exercised - Cashless 95,413 Warrant Exercised – For Cash 13,500 Issued for December 2014 public offering warrant exchange 26,190 Issued for Consulting Services 36,697 Total 1,402,128
Schedule of assumptions used to determine fair value of stock options	2015 2014 Expected volatility 152.32 % 157.70 % Expected option life in years 9.98 9.98 Expected dividend yield 0.00 % 0.00 % Risk-free interest rate 1.33 % 2.55 % Weighted average fair value per option at grant date $ 0.49 $ 0.40
Stock option activity	2015 2014 Weighted Average Exercise Weighted Average Exercise Shares Price Shares Price Outstanding at beginning of year 69,404 $ 66.00 65,312 $ 68.00 Options granted 42,140 $ 12.00 7,548 $ 40.00 Options exercised (1,786 ) $ 48.00 (2,424 ) $ 32.00 Options expired/forfeited (3,822 ) $ 43.00 (1,031 ) $ 68.00 Outstanding at end of year 105,936 $ 45.00 69,404 $ 66.00 Options vested and exercisable at year-end 90,411 $ 49.00 59,881 $ 66.00 Options available for grant at year-end 26,616 63,148 Aggregate intrinsic value – options exercised $ — $ 497 Aggregate intrinsic value – options outstanding $ — $ 4,941 Aggregate intrinsic value – options vested and exercisable $ — $ 6,129 Options unvested, balance at beginning of year (1) 9,523 10,672 $ 112.00 Options granted (1) 42,140 $ 40.00 7,548 $ 40.00 Vested (1) (34,383 ) $ 66.00 (7,666 ) $ 66.00 Cancelled/Forfeited (2,455 ) $ 68.00 (1,031 $ 68.00 Balance, end of period (1) 14,825 9,523 — __________________ (1) Includes awards not captured in valuation fragments
Company’s outstanding warrants to purchase common stock	Warrants (Underlying Shares) Outstanding, January 1, 2015 297,961 Issuances 2,751,872 Canceled / Expired (35,973 ) Exercised (211,476 ) Outstanding, December 31, 2015 2,802,384
Schedule of shares reserved for warrants	Warrants (Underlying Shares) Exercise Price Per Share Expiration Date 4,399 (1) $68.00 March 31, 2016 2,852 (2) $105.00 November 20, 2016 18,581 (3) $10.46 May 23, 2018 1,292,820 (3) $1.03 May 23, 2018 2,000 (4) $50.00 April 23, 2019 5,618 (4) $45.00 May 22, 2019 1,842 (5) 38.00 September 10, 2019 3,255 (6) $46.08 September 27, 2019 7,553 (7) $28.13 December 2, 2019 83,927 (8) $9.00 December 2, 2020 83,927 (8) $11.00 December 2, 2020 20,000 (9) $25.50 March 30, 2018 17,547 (10) $11.88 June 29, 2020 526,421 (11) $1.03 June 29, 2020 273,684 (12) $1.03 September 4, 2020 289,737 (13) $1.03 September 21, 2020 5,163 (14) $11.88 September 4,2020 157,895 (15) $1.03 October 23, 2020 5,163 (16) $11.88 October 23,2020 2,802,384 (1) Issued in February 2014 as part of a buy-back of a minority interest in Interscan in December 2012. (2) Issued as part of a November 2011 private placement. (3) Issued in June 2015 in exchange for warrants originally issued as part of a May 2013 private placement. (4) Issued to a placement agent in conjunction with an April 2014 private placement. (5) Issued to a placement agent in conjunction with a September 2014 private placement. (6) Issued as part of a September 2014 Regulation S offering. (7) Issued to a placement agent in conjunction with a 2014 public offering. (8) Issued in June 2015 in exchange for warrants originally issued as part of a 2014 public offering. (9) Issued as part of a March 2015 private placement. (10) Issued to a placement agent in conjunction with a June 2015 private placement. (11) Issued as part of a June 2015 private placement. (12) Issued as part of a June 2015 private placement. (13) Issued as part of a June 2015 private placement. (14) Issued to a placement agent in conjunction with a June 2015 private placement. (15) Issued as part of a June 2015 private placement. (16) Issued to a placement agent in conjunction with a June 2015 private placement.

5. Income Taxes (Tables)

5. Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Components of deferred taxes	2015 2014 Deferred tax assets: $ 626 $ 466 Net operating loss carry forwards Deferred tax liabilities: Intangible assets and other 27,770 25,994 28,396 26,460 Valuation allowance (28,396 ) (26,460 ) $ 0 $ 0
Income taxes	2015 2014 Statutory federal tax rate 34 % 34 % State taxes, net of federal benefit 4 4 Nondeductible expenses — — Valuation allowance (38 ) (38 ) 0 % 0 %

6. Commitments and Contingenc24

6. Commitments and Contingencies (Tables)	12 Months Ended
	Dec. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of operating leases	Year Amount 2016 $ 201 2017 98 Total $ 299

10. Valuation and Qualifying 25

10. Valuation and Qualifying Accounts (Tables)	12 Months Ended
	Dec. 31, 2015
Valuation and Qualifying Accounts [Abstract]
Schedule of Allowance for Doubtful Accounts	Year Ended December 31, 2015 2014 Beginning balance $ 76 $ 18 Additions / (Adjustments) 19 58 Balance $ 95 $ 76
Schedule of Inventory Reserves	Year Ended December 31, 2015 2014 Beginning balance $ 144 $ 184 Additions / (Adjustments) (26 ) (40 ) Balance $ 118 $ 144

1. BASIS OF PRESENTATION (Detai

1. BASIS OF PRESENTATION (Details Narrative) $ in Thousands	Dec. 31, 2015USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accumulated deficit	$ 122,600
Working capital	$ 3,400

2. SIGNIFICANT ACCOUNTING POL27

2. SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Raw materials	$ 686	$ 884
Work in process	186	304
Finished goods	365	136
Inventory reserve	(118)	(144)
Total	$ 1,119	$ 1,180

2. Summary of Significant Acc28

2. Summary of Significant Accounting Policies (Details 1) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Gross Value of property plant and equipment	$ 2,440	$ 2,432
Less: accumulated depreciation and amortization	(2,122)	(1,845)
Total property and equipment, net	318	587
Equipment
Gross Value of property plant and equipment	1,377	1,391
Software
Gross Value of property plant and equipment	740	737
Furniture and fixtures
Gross Value of property plant and equipment	124	124
Leasehold improvements
Gross Value of property plant and equipment	$ 199	$ 180

2. SIGNIFICANT ACCOUNTING POL29

2. SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Accrued compensation	$ 1,235	$ 447
Accrued professional fees	154	203
Deferred rent	36	54
Accrued warranty	82	119
Accrued vacation	177	144
Other accrued expenses	223	48
Total	$ 1,907	$ 1,015

2. SIGNIFICANT ACCOUNTING POL30

2. SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Patent Costs	$ 47,000	$ 50,000
Other assets	413,000	$ 72,000
Net Operating loss carry forward	$ 73,000,000

3. Fair Value of Financial In31

3. Fair Value of Financial Instruments (Details) - shares	Dec. 31, 2015	Dec. 31, 2014
Warrants	(2,606)	(2,070)
Level 1
Warrants	0	0
Level 1 | Series C Warrants
Warrants	0
Level 1 | Series B Warrants
Warrants	0	0
Level 1 | Public Offering Warrants
Warrants		0
Level 2
Warrants	0	0
Level 2 | Series C Warrants
Warrants	0
Level 2 | Series B Warrants
Warrants	0	0
Level 2 | Public Offering Warrants
Warrants		0
Level 3
Warrants	(2,606)	(2,070)
Level 3 | Series C Warrants
Warrants	(1,145)
Level 3 | Series B Warrants
Warrants	(1,461)	(1,483)
Level 3 | Public Offering Warrants
Warrants	0	(587)
Series C Warrants
Warrants	(1,145)
Series B Warrants
Warrants	(1,461)	(1,483)
Public Offering Warrants
Warrants		(587)

3. Fair Value of Financial In32

3. Fair Value of Financial Instruments (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Ending Balance	(2,606)	(2,070)
Level 3
Beginning Balance	$ (2,070)
Warrants issued during the period	(1,428)
Change in fair value during the period	568
Transfer to equity as a result of changes to provisions	$ 324
Ending Balance	(2,606)	(2,070)
Level 3 | Public Offering Warrants
Beginning Balance	$ (587)
Warrants issued during the period	0
Change in fair value during the period	263
Transfer to equity as a result of changes to provisions	$ 324
Ending Balance	0	(587)
Level 3 | Series B Warrants
Beginning Balance	$ (1,483)
Warrants issued during the period	0
Change in fair value during the period	22
Transfer to equity as a result of changes to provisions	$ 0
Ending Balance	(1,461)	(1,483)
Level 3 | Series C Warrants
Beginning Balance	$ 0
Warrants issued during the period	(1,428)
Change in fair value during the period	283
Transfer to equity as a result of changes to provisions	$ 0
Ending Balance	(1,145)

4. Stockholders_ Equity (Detail

4. Stockholders’ Equity (Details 0) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Stockholders Equity Details 0
Sales of unregistered securities - Issuance - For Cash	40,000
Issuance - For Debt Repayment	152,117
Series B Conversion	1,006,777
Series C Dividends	18,562
Series B Dividends	11,086
Option Exercised	1,786	2,424
Warrant Exercised - Cashless	95,413
Warrant Exercised - For Cash	13,500
Issued for December 2014 public offering warrant exchange	26,190
Issued for Consulting Services	36,697
Total	1,402,128

4. Stockholders_ Equity (Deta34

4. Stockholders’ Equity (Details) - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Equity [Abstract]
Expected volatility	152.32%	157.70%
Expected option life in years	9 years 11 months 23 days	9 years 11 months 23 days
Expected dividend yield	0.00%	0.00%
Risk-free interest rate	1.33%	2.55%
Weighted average fair value per option at grant date	$ .49	$ .40

4. STOCKHOLDERS' EQUITY (Detail

4. STOCKHOLDERS' EQUITY (Details 1) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
		Dec. 31, 2015	Dec. 31, 2014
Number of stock options
Outstanding beginning balance, Shares		69,404	65,312
Granted, Shares		42,140	7,548
Exercised, Shares		(1,786)	(2,424)
Expired/Forfeited, Shares		(3,822)	(1,031)
Outstanding ending balance, Shares		105,936	69,404
Vested and exercisable ending balance		90,411	59,881
Options available for grant at year-end		26,616	63,148
Aggregate intrinsic value – options exercised		$ 0	$ 497
Aggregate intrinsic value – options outstanding		0	4,941
Aggregate intrinsic value – options vested and Exercisable		$ 0	$ 6,129
Weighted average exercise price
Outstanding beginning balance, Weighted average exercise price		$ 66	$ 68
Granted, Weighted average exercise price		12	40
Exercised, Weighted average exercise price		48	32
Expired, Weighted average exercise price		43	68
Outstanding ending balance, Weighted average exercise price		45	66
Vested and exercisable ending balance		$ 49	$ 66
Options Unvested
Options unvested, beginning balance	[1]	$ 9,523	$ 10,672
Options granted	[1]	42,140	7,548
Options Vested	[1]	(34,383)	(7,666)
Options Cancelled/Forfeited	[1]	$ (2,455)	$ (1,031)
Balance, end of period	[1]	14,825	9,523
Options unvested, beginning balance, weighted average exercise price	[1]	$ 0	$ 112
Options granted, weighted average exercise price	[1]	40	40
Options Vested, weighted average exercise price	[1]	66	66
Options Cancelled/Forfeited, weighted average exercise price	[1]	68	68
Balance, end of period	[1]	$ 0	$ 0
[1]	Includes awards not captured in valuation fragments

4. STOCKHOLDERS' EQUITY (Deta36

4. STOCKHOLDERS' EQUITY (Details 2) - shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Issuances	40,000
Exercised	(1,786)	(2,424)
Warrant [Member]
Outstanding beginning balance	297,961
Issuances	2,751,872
Canceled / Expired	(35,973)
Exercised	(211,476)
Outstanding ending balance	2,802,384

4. STOCKHOLDERS' EQUITY (Deta37

4. STOCKHOLDERS' EQUITY (Details 3) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)$ / shares
Warrants	$ 2,802,384
Warrants 1
Warrants	$ 4,399	[1]
Exercise Price | $ / shares	$ 68
Expiration Date	31-Mar-16
Warrants 2
Warrants	$ 2,852	[2]
Exercise Price | $ / shares	$ 105
Expiration Date	20-Nov-16
Warrants 3
Warrants	$ 18,581	[3]
Exercise Price | $ / shares	$ 10.46
Expiration Date	23-May-18
Warrants 4
Warrants	$ 1,292,820	[3]
Exercise Price | $ / shares	$ 1.03
Expiration Date	23-May-18
Warrants 5
Warrants	$ 2,000	[4]
Exercise Price | $ / shares	$ 50
Expiration Date	23-Apr-19
Warrants 6
Warrants	$ 5,618	[4]
Exercise Price | $ / shares	$ 45
Expiration Date	22-May-19
Warrants 7
Warrants	$ 1,842	[5]
Exercise Price | $ / shares	$ 38
Expiration Date	10-Sep-19
Warrants 8
Warrants	$ 3,255	[6]
Exercise Price | $ / shares	$ 46.08
Expiration Date	27-Sep-19
Warrant 9
Warrants	$ 7,553	[7]
Exercise Price | $ / shares	$ 28.13
Expiration Date	2-Dec-19
Warrant 10
Warrants	$ 83,927	[8]
Exercise Price | $ / shares	$ 9
Expiration Date	2-Dec-20
Warrant 11
Warrants	$ 83,927	[8]
Exercise Price | $ / shares	$ 11
Expiration Date	2-Dec-20
Warrants 12
Warrants	$ 20,000	[9]
Exercise Price | $ / shares	$ 25.50
Expiration Date	30-Mar-18
Warrants 13
Warrants	$ 17,547	[10]
Exercise Price | $ / shares	$ 11.88
Expiration Date	29-Jun-20
Warrants 14
Warrants	$ 526,421	[11]
Exercise Price | $ / shares	$ 1.03
Expiration Date	29-Jun-20
Warrants 15
Warrants	$ 273,684	[11]
Exercise Price | $ / shares	$ 1.03
Expiration Date	4-Sep-20
Warrants 16
Warrants	$ 289,737	[11]
Exercise Price | $ / shares	$ 1.03
Expiration Date	21-Sep-20
Warrants 17
Warrants	$ 5,163	[10]
Exercise Price | $ / shares	$ 11.88
Expiration Date	4-Sep-20
Warrants 18
Warrants	$ 157,895	[11]
Exercise Price | $ / shares	$ 1.03
Expiration Date	23-Oct-20
Warrants 19
Warrants	$ 5,163	[10]
Exercise Price | $ / shares	$ 11.88
Expiration Date	23-Oct-20
[1]	Issued in February 2014 as part of a buy-back of a minority interest in Interscan in December 2012.
[2]	Issued as part of a November 2011 private placement.
[3]	Issued in June 2015 in exchange for warrants originally issued as part of a May 2013 private placement.
[4]	Issued to a placement agent in conjunction with an April 2014 private placement.
[5]	Issued to a placement agent in conjunction with a September 2014 private placement.
[6]	Issued as part of a September 2014 Regulation S offering.
[7]	Issued to a placement agent in conjunction with a 2014 public offering.
[8]	Issued in June 2015 in exchange for warrants originally issued as part of a 2014 public offering.
[9]	Issued as part of a March 2015 private placement.
[10]	Issued to a placement agent in conjunction with a June 2015 private placement.
[11]	Issued as part of a June 2015 private placement.

4. STOCKHOLDERS' EQUITY (Deta38

4. STOCKHOLDERS' EQUITY (Details Narrative) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Stockholders Equity Details Narrative
Par value	$ 0.001	$ 0.001
Authorized preferred stock	3	3
Preferred stock par value	$ 0.001	$ 0.001
Shares Available under the plan	26,616	63,148
Share of common stock issued	2,371,017	96,889

5. Income Taxes (Details)

5. Income Taxes (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Deferred tax assets	$ 626	$ 466
Deferred tax liabilities:
Intangible assets and other	27,770	25,994
Gross	28,396	26,460
Valuation allowance	(28,396)	(26,460)
Net	$ 0	$ 0

5. Income taxes (Details 1)

5. Income taxes (Details 1)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
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%

5. Income Taxes (Details Narrat

5. Income Taxes (Details Narrative) $ in Thousands	12 Months Ended
	Dec. 31, 2015USD ($)
Income Taxes Details Narrative
NOL carryforwards	$ 73,000,000
NOL carryforwards available through	2,034

6. Commitments and Contingenc42

6. Commitments and Contingencies (Details) $ in Thousands	Dec. 31, 2015USD ($)
Commitments and Contingencies Disclosure [Abstract]
2,016	$ 201
2,017	98
Total	$ 299

10. Valuation and Qualifying 43

10. Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Valuation and Qualifying Accounts [Abstract]
Beginning balance	$ 76	$ 18
Additions / (Adjustments)	19	58
Balance	$ 95	$ 76

10. Valuation and Qualifying 44

10. Valuation and Qualifying Accounts (Details 1) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Valuation and Qualifying Accounts [Abstract]
Beginning balance	$ 144	$ 184
Additions / (Adjustments)	(26)	(40)
Balance	$ 118	$ 144