Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Aug. 15, 2016 | |
Document And Entity Information | ||
Entity Registrant Name | FLEXPOINT SENSOR SYSTEMS INC | |
Entity Central Index Key | 925,660 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 71,627,114 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,016 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 2,772 | $ 22,706 |
Accounts receivable, net of allowance for bad debts of $7,140 and $7,140 | 184,084 | 98,557 |
Notes receivable | 90,613 | 86,806 |
Deposits and prepaid expenses | 9,324 | 11,949 |
Total Current Assets | 286,793 | 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 $839,190 and $793,103 | 133,205 | 179,292 |
Goodwill | 4,896,917 | 4,896,917 |
Total Assets | 5,323,465 | 5,302,777 |
Current Liabilities | ||
Accounts payable | 168,382 | 160,437 |
Accounts payable - related party | 838 | 322 |
Accrued liabilities | 598,004 | 375,244 |
Convertible notes payable, net of discount of $414,581 and $763,352 | 643,876 | 45,105 |
Convertible notes payable - related party | 40,000 | 40,000 |
Total Liabilities | 1,451,100 | 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 | 28,643,263 | 28,569,711 |
Accumulated deficit | (24,853,483) | (23,969,627) |
Total Stockholders' Equity | 3,872,365 | 4,681,669 |
Total Liabilities and Stockholders' Equity | $ 5,323,465 | $ 5,302,777 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [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 | 839,190 | 793,103 |
Convertible notes payable, discount | $ 414,581 | $ 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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Statement [Abstract] | ||||
Design, Contract and Testing Revenue | $ 93,039 | $ 48,469 | $ 128,205 | $ 80,469 |
Operating Costs and Expenses | ||||
Amortization of patents and proprietary technology | 22,346 | 24,634 | 46,087 | 50,219 |
Cost of revenue | 1,166 | 1,191 | 2,510 | 4,018 |
Administrative and marketing expense | 175,935 | 151,969 | 353,356 | 313,678 |
Research and development expense | 79,281 | 66,222 | 159,340 | 132,642 |
Total Operating Costs and Expenses | 278,728 | 244,016 | 561,293 | 500,557 |
Net Operating Loss | (185,689) | (195,547) | (433,088) | (420,088) |
Other Income and Expenses | ||||
Interest expense | (230,707) | (252,836) | (454,598) | (394,374) |
Interest income | 1,915 | 2,543 | 3,830 | 2,558 |
Loss on extinguishment of debt | (168,286) | |||
Gain on stock debt exchange | 55,661 | |||
Net Other Income (Expense) | (228,792) | (250,293) | (450,768) | (504,441) |
Net Loss | $ (414,481) | $ (445,840) | $ (883,856) | $ (924,529) |
Basic and Diluted Loss per Common Share | $ (0.01) | $ (0.01) | $ (0.01) | $ (0.02) |
Basic and Diluted Weighted-Average Common Shares Outstanding | 71,627,114 | 58,827,114 | 71,627,114 | 58,348,661 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash Flows from Operating Activities: | ||
Net loss | $ (883,856) | $ (924,529) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Stock subscription for compensation | 1,000 | |
Stock-based compensation expense | 16,802 | |
Amortization of patents and proprietary technology | 46,087 | 50,219 |
Amortization of discount on note payable | 405,521 | 337,209 |
Loss on extinguishment of debt | 168,286 | |
Gain on conversion of notes payable to common stock | (55,661) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (85,527) | (10,245) |
Deposits and prepaid expenses | 2,625 | (29) |
Accounts payable | 7,943 | (9,051) |
Accounts payable - related parties | 516 | 3,783 |
Accrued liabilities | 186,892 | 172,082 |
Net Cash Used in Operating Activities | (301,997) | (267,936) |
Cash Flows from Investing Activities: | ||
Note receivable interest income | (3,807) | (2,528) |
Payment for note receivable | (51,157) | |
Payments for patents | (2,181) | |
Net Cash Used in Investing Activities | (3,807) | (55,866) |
Cash Flows from Financing Activities: | ||
Proceeds from bank overdrafts | 35,870 | |
Proceeds from borrowings under note payable | 51,000 | |
Proceeds from borrowings under convertible note payable | 250,000 | 260,000 |
Net Cash Provided by Financing Activities | 285,870 | 311,000 |
Net Change in Cash and Cash Equivalents | (19,934) | (12,802) |
Cash and Cash Equivalents at Beginning of Period | 22,706 | 18,307 |
Cash and Cash Equivalents at End of Period | 2,772 | 5,505 |
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 | |
Recognition of discounts on convertible notes payable | $ 56,750 | $ 1,149,048 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 Condensed Consolidated Interim Financial Statements Nature of Operations ® Cash and Cash Equivalents 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 Research and Development Goodwill Revenue Recognition Stock-Based Compensation Basic and Diluted Loss Per Share Concentrations and Credit Risk - The Company has a strong relationship with this customer and does not believe this concentration poses a significant risk, as their products are based entirely on the Companys technologies. The Company has the option, under one of the notes receivable, to convert the principal and interest into equity of the customer. 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 | 6 Months Ended |
Jun. 30, 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 to bring current all of the filing and maintenance fees for the patents detailed in the law suit. The advance is secured by a promissory note with an annual interest rate of 10% to be paid no later than December 31, 2015. The Company is currently evaluating actions it should take relative to this note receivable which is in default. On April 1, 2015, the Company paid $51,157 for the assumption and assignment of a convertible promissory note receivable issued by Bend Tech, LLC (Bend Tech; one of the Companys customers see also Note 1, (Concentrations and Credit Risk |
CONVERTIBLE NOTES PAYABLE
CONVERTIBLE NOTES PAYABLE | 6 Months Ended |
Jun. 30, 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 by issuing various convertible notes bearing 10% annual interest (15% default interest), secured by business assets and carrying exercise prices ranging between $0.025 and $0.07 per share. Additionally during 2015, the Company issued $51,000 for a non-convertible note payable bearing 10% annual interest (15% default interest) and secured by the $51,157 note receivable held by the Company (see Note 2). During 2015, all of these notes (both convertible and non-convertible issued in 2014 and 2015) and accrued interest were either converted into common stock or extinguished and consolidated into two remaining convertible notes payable to two investors in principal amounts of $684,660 and $123,797 (with respective maturity dates of December 31, 2016 and November 30, 2016). Both notes are convertible at $0.05 per share, bear 10% annual interest rates (15% default interest) and are secured by business assets. On January 20, 2016, the Company entered into a promissory convertible note with Capital Communications LLC for up to $300,000 which is expected to be funded in tranches of $50,000 for each of the six months thereafter. Accordingly, on January 26, 2016, February 26, 2016, March 31, 2016, April 29, 2016 and June 10, 2016, the Company received proceeds for an aggregate total of $250,000 from Capital Communications LLC. The note has an annual interest rate of 10% and is secured by the Company's business equipment. The principal 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 shares at $0.06 per share. The fair value of the common stock at the date of the January 26, 2016 advance was $70,000, which created a Beneficial Conversion Feature (BCF) of $20,000. The BCF was recorded as a debt discount and is being amortized over the life of the note. The debt discount remaining as of June 30, 2016 was $10,909. The fair value of the common stock at the date of the February 26, 2016 advance was $90,000, which created a BCF of $40,000. The BCF was recorded as a debt discount and is being amortized over the life of the note. The debt discount remaining as of June 30, 2016 was $24,000. The fair value of the common stock at the date of the March 31, 2016 advance was $60,000, which created a BCF of $10,000. The BCF was recorded as a debt discount and is being amortized over the life of the note. The debt discount remaining as of June 30, 2016 was $6,667. No BCF was created relative to the advance on April 29, 2016. The fair value of the common stock at the date of the June 20, 2016 advance was $60,000, which created a BCF of $10,000. The BCF was recorded as a debt discount and is being amortized over the life of the note. The debt discount remaining as of June 30, 2016 was $8,501. At June 30, 2016, the Convertible Notes Payable principal is $1,098,457, the unamortized discount is $414,581 and interest accrued and unpaid is $72,351. The Company recorded interest expense of $405,521 during the six months ended June 30, 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% annual interest (15% default interest) and is secured by business equipment. |
STOCK OPTION PLANS
STOCK OPTION PLANS | 6 Months Ended |
Jun. 30, 2016 | |
STOCK OPTION PLANS [Abstract] | |
STOCK OPTION PLANS | NOTE 4 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 years, unless terminated. This plan was approved by the stockholders of the Company at their annual meeting of shareholders on November 22, 2005. Under the Plan, the exercise price for all options issued will not be less than the average quoted closing market price of the Companys trading common stock for the thirty day period immediately preceding the grant date plus a premium of ten percent. The maximum aggregate number of shares that may be awarded under the plan is 2,500,000 shares. On August 24, 2015, the Board of Directors approved the issuance of options to purchase 2,185,000 shares of the Companys common stock. Of the total issued, 1,960,000 options were issued to replace options held by directors and employees which were to expire and 225,000 options were issued to new employees. Of the options issued, 640,000 have an option price of $0.14 per share, 900,000 have an option price of $0.15 per share, 595,000 have an option price of $0.20 per share, and 50,000 have an option price of $0.25 per share. Options issued as replacement shall have immediate vesting terms. Options which are not replacements shall vest over a two year four month period in equal installments on the last day of 2015, 2016 and 2017, respectively. We relied on an exemption from the registration requirements provided by Section 4(a)(2) of the Securities Act. 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 shares of common stock at exercise prices ranging from $0.14 to $2.07 per share. The options vest over three years and expire 10 years from the date of grant. The Company used the following assumptions in estimating the fair value of the options granted: · Market value at the time of issuance Range of $0.14 to 2.07 · Expected term Range of 3.7 years to 10.0 years · Risk-free interest rate Range of 1.60% to 4.93% · Dividend yield 0% · Expected volatility 200% to 424% · Weighted-average fair value - $0.16 to $2.07 As of the six months ended June 30, 2016 and the year ended December 31, 2005, the Company recognized a total of $2,406,586 of stock-based compensation expense, leaving $29,296 in unrecognized expense as of June 30, 2016. There were 2,185,000 and 2,185,000 employee stock options outstanding at June 30, 2016 and December 31, 2015, respectively. A summary of all employee options outstanding and exercisable under the plan as of June 30, 2016, and changes during the six 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 9.16 $ -- Exercisable at the end of Period 1,755,000 $ 0.15 9.16 $ -- |
CAPITAL STOCK
CAPITAL STOCK | 6 Months Ended |
Jun. 30, 2016 | |
CAPITAL STOCK [Abstract] | |
CAPITAL STOCK | NOTE 5 CAPITAL STOCK Preferred Stock There are 1,000,000 shares of preferred stock with a par value of $0.001 per share authorized. At June 30, 2016 and December 31, 2015, there were no shares of preferred stock issued or outstanding. Common Stock There are 100,000,000 shares of common stock with a par value of $0.001 per share authorized. No shares of stock were issued during the six months ended June 30, 2016. On January 12, 2015, the Board of Directors approved the conversion of $165,000 in convertible notes held by Capital Communications LLC, plus $33,023 in interest accrued and unpaid, to 2,800,000 shares of restricted common stock at an average conversion price of $0.07 per share On January 20, 2015, the Board of Directors approved the conversion of $135,000 in convertible notes held by Empire Fund Managers, plus $23,760 in interest accrued and unpaid, to 2,650,000 shares of restricted common stock at an average conversion price of $0.06 per share. In October 2015, the Board of Directors approved the issuance of 3,400,000 shares of restricted common stock to extinguish $330,000 in accrued liabilities arising from investor relations services, at an average price of $0.084 per share. In November and December 2015, the Board of Directors approved the conversion of $470,000 in convertible notes to 9,400,000 shares of restricted common stock. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 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. Either party may terminate the lease upon 90 day written notice. Under the terms of the lease the Company paid $8,950 per month in 2015 (the same rate as in 2014), and will pay $9,300 per month in 2016 and $9,600 per month in 2017. 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 Companys Bend Sensors ® ® ® 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&Ds 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&Ds 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 | 6 Months Ended |
Jun. 30, 2016 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 7 RELATED PARTY TRANSACTIONS At June 30, 2016 and December 31, 2015, the Company had accounts payable of $838 and $322 to its Chief Executive Office for reimbursement of various operating expenses paid by him in the course of business. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2016 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 8 - SUBSEQUENT EVENTS On July 1, 2016 the Company drew $50,000 against 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% and is secured by the Companys equipment. The note has a conversion feature for restricted common shares at $0.06 per share and a maturity date of December 31, 2016. The Company entered into a new convertible promissory note for up to $300,000 from a third party on July 1, 2016. The note has an annual interest rate of 10% and is secured by the Companys equipment. The note has a conversion feature for restricted common shares at $0.07 per share and a maturity date of December 31, 2016. On August 11, 2016 the Company drew $40,000 against that note. Also on July 1, 2016 the Company issued a promissory note for $10,000 to an officer. The note bears interest at the rate of 10%, has a conversion feature for restricted common shares at $0.06 per share and a maturity date of December 31, 2016. |
SUMMARY OF SIGNIFICANT ACCOUN14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2016 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Condensed Consolidated Interim Financial Statements | Condensed Consolidated Interim Financial Statements |
Nature of Operations | Nature of Operations ® |
Cash and Cash Equivalents. | Cash and Cash Equivalents |
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 |
Research and Development | Research and Development |
Goodwill | Goodwill |
Revenue Recognition | Revenue Recognition |
Stock-Based Compensation | Stock-Based Compensation |
Basic and Diluted Loss Per Share | Basic and Diluted Loss Per Share |
Concentrations and Credit Risk | Concentrations and Credit Risk - The Company has a strong relationship with this customer and does not believe this concentration poses a significant risk, as their products are based entirely on the Companys technologies. The Company has the option, under one of the notes receivable, to convert the principal and interest into equity of the customer. |
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) | 6 Months Ended |
Jun. 30, 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 9.16 $ -- Exercisable at the end of Period 1,755,000 $ 0.15 9.16 $ -- |
SUMMARY OF SIGNIFICANT ACCOUN16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Nature Of Business [Line Items] | ||||||
Net loss | $ 414,481 | $ 445,840 | $ 883,856 | $ 924,529 | ||
Cash used in operating activities | 301,997 | 267,936 | ||||
Accumulated deficit | 24,853,483 | 24,853,483 | $ 23,969,627 | |||
Cash and cash equivalents | $ 2,772 | $ 5,505 | 2,772 | $ 5,505 | $ 22,706 | $ 18,307 |
Goodwill impairment charge | $ 0 | |||||
Anti-dilutive securities excluded from computation of earnings per share amount | 21,648,704 | |||||
Sales [Member] | Customer One [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Risk percentage | 13.00% | |||||
Accounts Receivable [Member] | Customer One [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Risk percentage | 55.00% | |||||
Notes Receivable [Member] | Customer One [Member] | ||||||
Nature Of Business [Line Items] | ||||||
Risk percentage | 100.00% | |||||
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 |
NOTES RECEIVABLE (Details)
NOTES RECEIVABLE (Details) - USD ($) | Apr. 09, 2013 | Jun. 30, 2016 |
Legal Proceedings [Line Items] | ||
Payment for note receivable | $ 51,157 | |
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 | Jun. 20, 2016 | Apr. 29, 2016 | Mar. 31, 2016 | Feb. 26, 2016 | Jan. 26, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||||||||
Proceeds from borrowings under convertible note payable | $ 250,000 | $ 260,000 | |||||||
Convertible notes payable, principal amount outstanding | 1,098,457 | ||||||||
Accrued interest | 72,351 | ||||||||
Interest expense | 405,521 | ||||||||
Discount balance | 414,581 | $ 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 | 250,000 | ||||||||
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% | ||||||||
January 26 Advance [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value of common stock advance | $ 70,000 | ||||||||
Discount balance | $ 10,909 | ||||||||
Beneficial conversion feature | $ 20,000 | ||||||||
February 29 Advance [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value of common stock advance | $ 90,000 | ||||||||
Discount balance | 24,000 | ||||||||
Beneficial conversion feature | $ 40,000 | ||||||||
March 31 Advance [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value of common stock advance | $ 60,000 | ||||||||
Discount balance | 6,667 | ||||||||
Beneficial conversion feature | $ 10,000 | ||||||||
April 29 Advance [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Discount balance | $ 8,501 | ||||||||
Beneficial conversion feature | $ 10,000 | ||||||||
June 20 Advance [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Fair value of common stock advance | $ 60,000 |
STOCK OPTION PLANS (Narrative)
STOCK OPTION PLANS (Narrative) (Details) - USD ($) | Aug. 24, 2015 | Jun. 30, 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. | $ 2,406,586 | |||
Options outstanding | 2,185,000 | 2,185,000 | 2,185,000 | |
Unrecognized compensation cost related to employee stock options | $ 29,296 | $ 29,296 | ||
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] | Director [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Issuance of options for purchase of common shares | 1,960,000 | |||
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] | 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] | 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 |
STOCK OPTION PLANS (Schedule of
STOCK OPTION PLANS (Schedule of Stock Option Activity) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 1 month 28 days | 9 years 7 months 28 days |
Outstanding at the end of Period | 9 years 1 month 28 days | 9 years 7 months 28 days |
Exercisable at the end of Period, weighted average remaining contractual life (years) | 9 years 1 month 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 | 6 Months Ended |
Oct. 31, 2015 | Dec. 31, 2015 | Jun. 30, 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 | ||
The $1,125,000 Notes [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 Notes [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 | ||
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 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 6 Months Ended |
Jun. 30, 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 | 9,300 |
R&D Products, LLC [Member] | |
Deposit received from related party for commercial beds | $ 100,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) | Jun. 30, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | ||
Accounts payable - related party | $ 838 | $ 322 |
Chief Executive Officer [Member] | ||
Related Party Transaction [Line Items] | ||
Accounts payable - related party | $ 838 | $ 322 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Jul. 01, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Aug. 11, 2016 |
Promissory note issued | $ 1,079,453 | |||
Subsequent Event [Member] | Promissory Note To Officer [Member] | Officer [Member] | ||||
Maximum borrowing capacity | $ 10,000 | |||
Annual interest rate | 10.00% | |||
Conversion price | $ 0.06 | |||
Maturity date | Dec. 31, 2016 | |||
Subsequent Event [Member] | Third Party [Member] | Third Party Note One [Member] | ||||
Maximum borrowing capacity | $ 300,000 | |||
Amount drawn against note | $ 50,000 | |||
Annual interest rate | 10.00% | |||
Conversion price | $ 0.06 | |||
Maturity date | Dec. 31, 2016 | |||
Subsequent Event [Member] | Third Party [Member] | Third Party Note Two [Member] | ||||
Maximum borrowing capacity | $ 300,000 | |||
Amount drawn against note | $ 40,000 | |||
Annual interest rate | 10.00% | |||
Conversion price | $ 0.07 | |||
Maturity date | Dec. 31, 2016 |