Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 16, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Entity Registrant Name | FLEXPOINT SENSOR SYSTEMS INC | |
Entity Central Index Key | 925,660 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 71,627,114 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 32,779 | $ 22,706 |
Accounts receivable, net of allowance for bad debts of $7,140 and $7,140 | 111,027 | 98,557 |
Notes receivable | 88,721 | 86,806 |
Deposits and prepaid expenses | 9,312 | 11,949 |
Total Current Assets | 241,839 | 220,018 |
Long-Term Deposits | $ 6,550 | $ 6,550 |
Property and Equipment, net of accumulated depreciation of $586,394 and $586,394 | ||
Patents and Proprietary Technology, net of accumulated amortization of $816,844 and $793,103 | $ 155,551 | $ 179,292 |
Goodwill | 4,896,917 | 4,896,917 |
Total Assets | 5,300,857 | 5,302,777 |
Current Liabilities | ||
Accounts payable | 168,429 | 160,437 |
Accounts payable - related party | 3,035 | 322 |
Accrued liabilities | 474,318 | 375,244 |
Convertible notes payable, net of discount of $616,077 and $763,352 | 342,380 | 45,105 |
Convertible notes payable - related party | 40,000 | 40,000 |
Total Liabilities | $ 1,028,162 | $ 621,108 |
Stockholders' Equity | ||
Preferred stock - $0.001 par value; 1,000,000 shares authorized; no shares issued or outstanding | ||
Common stock - $0.001 par value; 100,000,000 shares authorized; 71,627,114 shares and 71,627,114 shares issued and outstanding | $ 71,627 | $ 71,627 |
Stock subscription payable | 10,958 | 9,958 |
Additional paid-in capital | 28,629,112 | 28,569,711 |
Accumulated deficit | (24,439,002) | (23,969,627) |
Total Stockholders' Equity | 4,272,695 | 4,681,669 |
Total Liabilities and Stockholders' Equity | $ 5,300,857 | $ 5,302,777 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
CONDENSED CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Accounts receivable, allowance for bad debts | $ 7,140 | $ 7,140 |
Property and Equipment, accumulated depreciation | 586,394 | 586,394 |
Patents and Proprietary Technology, accumulated amortization | 816,844 | 793,103 |
Convertible notes payable, discount | $ 616,077 | $ 763,352 |
Preferred stock, par value per share | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value per share | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 71,627,114 | 71,627,114 |
Common stock, shares outstanding | 71,627,114 | 71,627,114 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ||
Design, Contract and Testing Revenue | $ 35,165 | $ 32,000 |
Operating Costs and Expenses | ||
Amortization of patents and proprietary technology | 23,741 | 25,585 |
Cost of revenue | 1,344 | 2,827 |
Administrative and marketing expense | 177,420 | 161,707 |
Research and development expense | 80,059 | 66,420 |
Total Operating Costs and Expenses | 282,564 | 256,539 |
Other Income and Expenses | ||
Interest expense | (223,891) | (141,538) |
Interest income | $ 1,915 | 15 |
Gain on conversion of notes | 55,661 | |
Loss on extinguishment of debt | (168,286) | |
Net Other Income (Expense) | $ (221,976) | (254,148) |
Net Loss | $ (469,375) | $ (478,687) |
Basic and Diluted Loss per Common Share | $ (0.01) | $ (0.01) |
Basic and Diluted Weighted Average Common Shares Outstanding | 71,627,114 | 57,864,114 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (469,375) | $ (478,687) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock subscription for compensation | 1,000 | |
Stock-based compensation expense | 8,401 | |
Amortization of patents and proprietary technology | 23,741 | $ 25,585 |
Amortization of discount on note payable | $ 198,275 | 110,872 |
Loss on extinguishment of debt | 168,286 | |
(Gain)/loss on conversion of notes payable to common stock | (55,661) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | $ (12,470) | 21,120 |
Deposits and prepaid expenses | 2,637 | (15) |
Accounts payable | 7,992 | (5,876) |
Accounts payable - related parties | 2,713 | 1,561 |
Accrued liabilities | 99,074 | 83,409 |
Net Cash Used in Operating Activities | (138,012) | $ (129,406) |
Cash Flows from Investing Activities: | ||
Note receivable interest income | (1,915) | |
Net Cash Used in Investing Activities | (1,915) | |
Cash Flows from Financing Activities: | ||
Proceeds from borrowings under convertible note payable | 150,000 | $ 120,000 |
Net Cash Provided by Financing Activities | 150,000 | 120,000 |
Net Change in Cash and Cash Equivalents | 10,073 | (9,406) |
Cash and Cash Equivalents at Beginning of Period | 22,706 | 18,307 |
Cash and Cash Equivalents at End of Period | $ 32,779 | $ 8,901 |
Supplemental Cash Flow Information: | ||
Cash paid for income taxes | ||
Cash paid for interest | ||
Supplemental Disclosure on Noncash Investing and Financing Activities | ||
Common stock issued for debt conversion | $ 305,073 | |
Convertible notes issued and debt discount relieved in debt extinguishment | 1,079,453 | |
Subscription payable to employee | 9,958 | |
Recognition of discounts on convertible notes payable | $ 51,000 | $ 1,009,048 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Condensed Consolidated Interim Financial Statements Nature of Operations ® 469,375 478,687 138,012 129,406 24,439,002 Cash and Cash Equivalents 32,779 22,706 Fair Value of Financial Instruments Accounts Receivable Most contracts associated with design and development engineering require a deposit of up to 50% of the quoted price of the initial phase of such contracts prior to the commencement of work. As the Company completes each phase or milestone of such a contract additional funding is normally required from the customer. These deposits are considered deferred income until each phase or milestone is completed and accepted by the customer, at which time the agreed upon price for that particular phase of the contract is billed to the customer and the deposit applied. Inventories Property and Equipment Valuation of Long-lived Assets Intangible Assets 5 15 Research and Development Goodwill Revenue Recognition customer. Revenue from contracts to license technology to others is deferred until all conditions under the contracts are met and then recognized as licensing royalty revenue over the remaining term of the contracts. Stock-Based Compensation Basic and Diluted Earnings (loss) Per Share 21,720,103 Concentrations and Credit Risk - 28 84 100 Recent Accounting Pronouncements eases. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. |
NOTES RECEIVABLE
NOTES RECEIVABLE | 3 Months Ended |
Mar. 31, 2016 | |
NOTES RECEIVABLE [Abstract] | |
NOTES RECEIVABLE. | NOTE 2 NOTES RECEIVABLE On June 23, 2010, the Company, along with David B. Beck, the Company's Director of Engineering, filed a complaint against R&D Products, LLC, Persimmon Investments, Inc. and Jules A. deGreef, the managing member of R&D Products, LLC. The complaint alleged that all of the intellectual properties owned by R&D Products and Mr. deGreef, specifically patented applications using Bend Sensor ® ® On April 9, 2013, the parties of the above referenced litigation reached a favorable universal settlement agreement that reinforces the Company's rights to the intellectual properties and their related products, including the medical bed. In order to secure the Company had exclusive rights to all patents and intellectual properties associated with this litigation the Company advanced to Mr. deGreef $ 25,000 10 On April 1, 2015 51,157 Concentrations and Credit Risk interest at the rate of 10 5 |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 3 Months Ended |
Mar. 31, 2016 | |
CONVERTIBLE NOTES PAYABLE [Abstract] | |
CONVERTIBLE NOTES PAYABLE | NOTE 3 CONVERTIBLE NOTES PAYABLE Convertible Notes Payable During 2015, the Company secured additional financing to cover its ongoing operations in the amount of $ 590,000 10 15 0.025 0.07 51,000 10 15 51,157 684,660 123,797 0.05 10 15 On January 2 0 , 2016, the Company entered into a promissory convertible note with Capital Communications LLC for up to $ 300,000 be fund ed in tranches of $ 50,000 for each of the six months thereafter. Accordingly, on January 26, 2016, February 26, 2016 and March 31 , 201 6 , the Company received proceeds for an aggregate total of $ 1 5 0,000 from Capital Communications LLC. The note has an annual interest rate of 10 al amount of the note, and all accrued interest is due and payable on or before December 31, 2016 and each note has a conversion feature for restricted common s hares at $ 0.06 per share . At March 31, 2016 , the Convertible Notes Payable principal is $ 998,457 , the unamortized discount is $ 6 16 , 077 and interest accrued and unpaid is $ 4 9 , 217 . The Company recorded interest expense of $ 198 , 275 during the three months ended March 31, 2016 as it amortized the discount charges generated by the issuance of convertible notes payable . Convertible Note Payable Related Party On August 8, 2011 , the Company entered into a convertible note payable with a Company Director for $ 40 ,000 . This note is due on December 31, 2015, bears an annual interest rate of 10 15 and is secured by business equipment. |
STOCK OPTION PLANS
STOCK OPTION PLANS | 3 Months Ended |
Mar. 31, 2016 | |
STOCK OPTION PLANS [Abstract] | |
STOCK OPTION PLANS | NOTE 4 STOCK OPTION PLANS On August 25, 2005, the Board of Directors of the Company approved and adopted the 2005 Stock Incentive Plan (the Plan). The Plan became effective upon its adoption by the Board and will continue in effect for ten 2,500,000 On August 24, 2015, the Board of Directors approved the issuance of options to purchase 2,185,000 1,960,000 225,000 640,000 0.14 900,000 0.15 595,000 0.20 50,000 0.25 Projected data related to the expected volatility and expected life of stock options is based upon historical and other information, and notably, the Company's common stock has limited trading history. Changes in these subjective assumptions can materially affect the fair value of the estimate, and therefore, the existing valuation models do not provide a precise measure of the fair value of the Company's employee stock options. Between August 25, 2005 and December 31, 2015, the Company granted options to employees to purchase an aggregate 3,096,000 0.14 2.07 three 10 Market value at the time of issuance Range of $ 0.14 2.07 Expected term Range of 3.7 10.0 Risk-free interest rate Range of 1.60 4.93 Dividend yield 0 Expected volatility 200 424 Weighted-average fair value - $ 0.16 2.07 As of the three months ended March 31, 2016 and the years ended December 31, 2005 through 2015, the Company recognized a total of $ 2,398,185 37,698 2,185,000 2,185,000 A summary of all employee options outstanding and exercisable under the plan as of March 31, 2016, and changes during the three months then ended is set forth below: Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at the beginning of period 2,185,000 $ 0.16 9.66 $ - Granted - - - - Expired - - - - Forfeited - - - - Outstanding at the end of Period 2,185,000 $ 0.16 9.41 $ - Exercisable at the end of Period 1,755,000 $ 0.15 9.41 $ - |
CAPITAL STOCK
CAPITAL STOCK | 3 Months Ended |
Mar. 31, 2016 | |
CAPITAL STOCK [Abstract] | |
CAPITAL STOCK | NOTE 5 CAPITAL STOCK Preferred Stock There are 1,000,000 0.001 March 31, 201 6 and December 31, 201 5 , there were no shares of preferred stock issued or outstanding. Common Stock There are 100,000,000 0.001 No shares of stock were issued during the three months ended March 31, 2016. On January 12, 2015 165,000 $ 33,023 2,800,000 0.07 On January 20, 2015 135,000 $ 23,760 2,650,000 0.06 In October 2015, the Board of Directors approved the issuance of 3,400,000 330,000 0.084 In November and December 2015, the Board of Directors approved the conversion of $ 470,000 9,400,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 6 - COMMITMENTS AND CONTINGENCIES The Company currently occupies a manufacturing facility in Draper, Utah. The lease on the facility expired on December 31, 2014, at which time the Company entered into a three year extension which will expire on December 31, 2017 8,950 9,300 9,600 In September 2005 the Company entered into a manufacturing agreement with R&D Products, LLC, a Utah limited liability company, doing business in Midvale, Utah. For the purpose of this contract, management considers R&D Products to be a related party because a controlling member of R&D Products, LLC is also a non-controlling shareholder of Flexpoint Sensor Systems, Inc. R&D Products has developed a mattress with multiple air chambers that uses the Company's Bend Sensors ® and the Company has entered into an agreement to manufacture the Bend Sensors ® for R&D's specific mattress use. The initial order is for 30,000 Bend Sensors ® to be used to begin manufacture of 1,000 mattresses. During 2007 and 2008 R&D Products deposited with Flexpoint the sum of $ 100,000 On September 11, 2008 R&D Products, LLC entered into a long-term Licensing Agreement for their bed technology with a major medical solutions provider (Licensee). The Agreement provides the Licensee the exclusive worldwide rights to R&D's patented medical bed technology. On that same day the Company, R&D Products and the Licensee entered into a long-term joint manufacturing agreement for R&D's medical bed technology and related products. The manufacturing agreement allows for the Company to manufacture sensors for the bed technology and related medical products through 2018 with an option to renew each year thereafter. Production schedules with specific quantities and deadlines are still being outlined . (See Note 2). At this time management is unsure the effect their litigation with R&D will have on this agreement with R&D or its Licensee. The Company is currently evaluating actions it should take relative to the notes receivable referenced in Note 2, which are in default. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2016 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7 RELATED PARTY TRANSACTIONS At March 31, 2016 and December 31, 2015, the Company had accounts payable of $ 3 ,035 and $ 322 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2016 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 8 - SUBSEQUENT EVENTS On April 29, 2016 the Company drew $ 50,000 a convertible promissory note for up to $ 300,000 from a third party, the proceeds of which will be used to fund operating expenses . The note has an annual interest rate of 10 Company's equipment. The note has a conversion feature for restricted common shares at $ .0 6 per share and a maturity date of December 31 , 201 6 . |
SUMMARY OF SIGNIFICANT ACCOUN14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 3 Months Ended |
Mar. 31, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Condensed Consolidated Interim Financial Statements | Condensed Consolidated Interim Financial Statements |
Nature of Operations | Nature of Operations ® 469,375 478,687 138,012 129,406 24,439,002 |
Cash and Cash Equivalents. | Cash and Cash Equivalents 32,779 22,706 |
Fair Value of Financial Instruments | Fair Value of Financial Instruments |
Accounts Receivable | Accounts Receivable Most contracts associated with design and development engineering require a deposit of up to 50% of the quoted price of the initial phase of such contracts prior to the commencement of work. As the Company completes each phase or milestone of such a contract additional funding is normally required from the customer. These deposits are considered deferred income until each phase or milestone is completed and accepted by the customer, at which time the agreed upon price for that particular phase of the contract is billed to the customer and the deposit applied. |
Inventories | Inventories |
Property and Equipment. | Property and Equipment |
Valuation of Long-lived Assets | Valuation of Long-lived Assets |
Intangible Assets | Intangible Assets 5 15 |
Research and Development | Research and Development |
Goodwill | Goodwill |
Revenue Recognition | Revenue Recognition customer. Revenue from contracts to license technology to others is deferred until all conditions under the contracts are met and then recognized as licensing royalty revenue over the remaining term of the contracts. |
Stock-Based Compensation | Stock-Based Compensation |
Basic and Diluted Earnings (loss) Per Share | Basic and Diluted Earnings (loss) Per Share 21,720,103 |
Concentrations and Credit Risk | Concentrations and Credit Risk - 28 84 100 |
Recent Accounting Pronouncements | Recent Accounting Pronouncements eases. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its consolidated results of operation, financial position and cash flows. Based on that review, the Company believes that none of these pronouncements will have a significant effect on its current or future earnings or operations. |
STOCK OPTION PLANS (Tables)
STOCK OPTION PLANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
STOCK OPTION PLANS [Abstract] | |
Schedule of Stock Option Activity | Options Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at the beginning of period 2,185,000 $ 0.16 9.66 $ - Granted - - - - Expired - - - - Forfeited - - - - Outstanding at the end of Period 2,185,000 $ 0.16 9.41 $ - Exercisable at the end of Period 1,755,000 $ 0.15 9.41 $ - |
SUMMARY OF SIGNIFICANT ACCOUN16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Nature Of Business [Line Items] | ||||
Net loss | $ 469,375 | $ 478,687 | ||
Cash used in operating activities | 138,012 | 129,406 | ||
Accumulated deficit | 24,439,002 | $ 23,969,627 | ||
Cash and cash equivalents | 32,779 | $ 8,901 | $ 22,706 | $ 18,307 |
Goodwill impairment charge | $ 0 | |||
Anti-dilutive securities excluded from computation of earnings per share amount | 21,720,103 | |||
Minimum [Member] | ||||
Nature Of Business [Line Items] | ||||
Intangible assets, useful lives | 5 years | |||
Maximum [Member] | ||||
Nature Of Business [Line Items] | ||||
Intangible assets, useful lives | 15 years | |||
Sales [Member] | Customer One [Member] | ||||
Nature Of Business [Line Items] | ||||
Risk percentage | 28.00% | |||
Accounts Receivable [Member] | Customer One [Member] | ||||
Nature Of Business [Line Items] | ||||
Risk percentage | 84.00% | |||
Notes Receivable [Member] | Customer One [Member] | ||||
Nature Of Business [Line Items] | ||||
Risk percentage | 100.00% |
NOTES RECEIVABLE (Details)
NOTES RECEIVABLE (Details) - USD ($) | Apr. 09, 2013 | Mar. 31, 2016 |
Legal Proceedings [Line Items] | ||
Payment for note receivable | $ 51,157 | |
Interest rate | 10.00% | |
Maturity date | Apr. 1, 2015 | |
Conversion right, ownership percentage | 5.00% | |
Notes Receivable One [Member] | Settled Litigation [Member] | R&D Products, LLC [Member] | ||
Legal Proceedings [Line Items] | ||
Interest rate | 10.00% | |
Notes receivable | $ 25,000 |
CONVERTIBLE NOTES PAYABLE (Deta
CONVERTIBLE NOTES PAYABLE (Details) - USD ($) | Jan. 20, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
Proceeds from borrowings under convertible note payable | $ 150,000 | $ 120,000 | ||
Convertible notes payable, principal amount outstanding | 998,457 | |||
Accrued interest | 49,217 | |||
Interest expense | 198,275 | |||
Discount balance | 616,077 | $ 763,352 | ||
2015 Various Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 590,000 | |||
Debt instrument, interest rate | 10.00% | |||
Debt instrument, default rate | 15.00% | |||
2015 Various Convertible Notes [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, conversion price | $ 0.025 | |||
2015 Various Convertible Notes [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, conversion price | $ 0.07 | |||
Notes Payable Third Parties [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 51,000 | |||
Debt instrument, issuance date | Apr. 1, 2015 | |||
Debt instrument, interest rate | 10.00% | |||
Debt instrument, default rate | 15.00% | |||
Debt instrument, collateral amount | $ 51,157 | |||
New Convertible Notes Payable One [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 684,660 | |||
Debt instrument, conversion price | $ 0.05 | |||
Debt instrument, maturity date | Dec. 31, 2016 | |||
Debt instrument, interest rate | 10.00% | |||
Debt instrument, default rate | 15.00% | |||
New Convertible Notes Payable Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 123,797 | |||
Debt instrument, conversion price | $ 0.05 | |||
Debt instrument, maturity date | Nov. 30, 2016 | |||
Debt instrument, interest rate | 10.00% | |||
Debt instrument, default rate | 15.00% | |||
The 2016 Capital Communication Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 300,000 | |||
Debt instrument, conversion price | $ 0.06 | |||
Debt instrument, issuance date | Jan. 20, 2016 | |||
Debt instrument, maturity date | Dec. 31, 2016 | |||
Debt instrument, interest rate | 10.00% | |||
Proceeds from borrowings under convertible note payable | 150,000 | |||
The 2016 Capital Communication Notes [Member] | Debt Issuance, Each of Six Months After Issuance [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 50,000 | |||
Convertible Notes Payable to Related Party [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 40,000 | |||
Debt instrument, issuance date | Aug. 8, 2011 | |||
Debt instrument, maturity date | Dec. 31, 2015 | |||
Debt instrument, interest rate | 10.00% | |||
Debt instrument, default rate | 15.00% |
STOCK OPTION PLANS (Narrative)
STOCK OPTION PLANS (Narrative) (Details) - USD ($) | Aug. 24, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted during period | ||||
Option pricing assumptions | ||||
Weighted-average fair value of options granted | ||||
Stock-based compensation expense. | $ 2,398,185 | |||
Options outstanding | 2,185,000 | 2,185,000 | 2,185,000 | |
Unrecognized compensation cost related to employee stock options | $ 37,698 | $ 37,698 | ||
2005 Stock Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Effective term | 10 years | |||
Shares authorized | 2,500,000 | |||
2005 Stock Incentive Plan [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of options for purchase of common shares | 2,185,000 | |||
Options granted during period | 3,096,000 | |||
Exercise price of stock options granted, minimum | $ 0.14 | |||
Exercise price of stock options granted, maximum | $ 2.07 | |||
Option vesting period | 3 years | |||
Option expiration period | 10 years | |||
Option pricing assumptions | ||||
Dividend yield | 0.00% | |||
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Minimum [Member] | ||||
Option pricing assumptions | ||||
Market value per share at time of issuance | $ 0.14 | $ 0.14 | ||
Expected term | 3 years 8 months 12 days | |||
Risk-free interest rate | 1.60% | |||
Expected volatility | 200.00% | |||
Weighted-average fair value of options granted | $ 0.16 | |||
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Maximum [Member] | ||||
Option pricing assumptions | ||||
Market value per share at time of issuance | $ 2.07 | $ 2.07 | ||
Expected term | 10 years | |||
Risk-free interest rate | 4.93% | |||
Expected volatility | 424.00% | |||
Weighted-average fair value of options granted | $ 2.07 | |||
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Exercise Price Range One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of options for purchase of common shares | 640,000 | |||
Exercise price of stock options granted | $ 0.14 | |||
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Exercise Price Range Two [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of options for purchase of common shares | 900,000 | |||
Exercise price of stock options granted | $ 0.15 | |||
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Exercise Price Range Three [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of options for purchase of common shares | 595,000 | |||
Exercise price of stock options granted | $ 0.20 | |||
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Exercise Price Range Four [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of options for purchase of common shares | 50,000 | |||
Exercise price of stock options granted | $ 0.25 | |||
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of options for purchase of common shares | 225,000 | |||
2005 Stock Incentive Plan [Member] | Stock Options [Member] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of options for purchase of common shares | 1,960,000 |
STOCK OPTION PLANS (Schedule of
STOCK OPTION PLANS (Schedule of Stock Option Activity) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Shares | ||
Outstanding at the beginning of period | 2,185,000 | |
Granted | ||
Expired | ||
Forfeited | ||
Outstanding at the end of Period | 2,185,000 | 2,185,000 |
Exercisable at the end of the Period, shares | 1,755,000 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning of period | $ 0.16 | |
Granted | ||
Expired | ||
Forfeited | ||
Outstanding at the end of Period | $ 0.16 | $ 0.16 |
Exercisable at the end of Period, weighted average exercise price | $ 0.15 | |
Weighted Average Remaining Contractual Life (Years) | ||
Outstanding at the beginning of period | 9 years 4 months 28 days | 9 years 7 months 28 days |
Granted | ||
Expired | ||
Forfeited | ||
Outstanding at the end of Period | 9 years 4 months 28 days | 9 years 7 months 28 days |
Exercisable at the end of Period, weighted average remaining contractual life (years) | 9 years 4 months 28 days | |
Aggregate Intrinsic Value | ||
Outstanding at the beginning of period | ||
Granted | ||
Expired | ||
Forfeited | ||
Outstanding at the end of Period | ||
Exercisable at the end of the Period, aggregate intrinsic value |
CAPITAL STOCK (Details)
CAPITAL STOCK (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended |
Oct. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | |
Debt Conversion [Line Items] | |||
Preferred stock, shares authorized | 1,000,000 | 1,000,000 | |
Preferred stock, par value per share | $ 0.001 | $ 0.001 | |
Preferred stock, shares issued | 0 | 0 | |
Preferred stock, shares outstanding | 0 | 0 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, par value per share | $ 0.001 | $ 0.001 | |
Total common shares issued during period | 0 | ||
Restricted Stock [Member] | |||
Debt Conversion [Line Items] | |||
Conversion of convertible notes, amount | $ 470,000 | ||
Conversion of convertible notes, shares issued | 9,400,000 | ||
Average conversion price for converted debt instruments | $ 0.084 | ||
Shares issued in settlement of accrued liabilities, shares | 3,400,000 | ||
Accrued liabilities extinguished from issuance of restricted common stock | $ 330,000 | ||
The $1,125,000 [Member] | Debt Conversion, January 20, 2015 [Member] | |||
Debt Conversion [Line Items] | |||
Debt conversion, date | Jan. 20, 2015 | ||
Conversion of convertible notes, amount | $ 135,000 | ||
Conversion of convertible notes, interest accrued and unpaid, amount | $ 23,760 | ||
Conversion of convertible notes, shares issued | 2,650,000 | ||
Average conversion price for converted debt instruments | $ 0.06 | ||
The $1,125,000 [Member] | Debt Conversion, January 12, 2015 [Member] | |||
Debt Conversion [Line Items] | |||
Debt conversion, date | Jan. 12, 2015 | ||
Conversion of convertible notes, amount | $ 165,000 | ||
Conversion of convertible notes, interest accrued and unpaid, amount | $ 33,023 | ||
Conversion of convertible notes, shares issued | 2,800,000 | ||
Average conversion price for converted debt instruments | $ 0.07 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Operating lease expiration period | Dec. 31, 2017 |
Lease, monthly payment in 2015 | $ 8,950 |
Lease, monthly payment in 2016 | 9,300 |
Lease, monthly payment in 2017 | 9,600 |
Rand DProducts Llc [Member] | |
Deposit received from related party for commercial beds | $ 100,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Accounts payable - related party | $ 3,035 | $ 322 |
Chief Executive Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable - related party | $ 3,035 | $ 322 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - Convertible Promissory Note [Member] | Apr. 29, 2016USD ($)$ / shares |
Subsequent Event [Line Items] | |
Debt instrument, issuance date | Apr. 29, 2016 |
Debt instrument, face amount | $ 50,000 |
Maximum borrowing capacity | $ 300,000 |
Debt instrument, interest rate | 10.00% |
Debt instrument, conversion price | $ / shares | $ 0.06 |
Debt instrument, maturity date | Dec. 31, 2016 |