GeneLink (GNLKQ) Inactive 10-Q14 Nov 132013 Q3 Quarterly reportFinancial data

Company Profile

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
Document and Entity Information	Sep. 30, 2013	Nov. 08, 2013
Document and Entity Information [Abstract]	'	'
Entity Registrant Name	'GENELINK INC	'
Entity Central Index Key	'0000941020	'
Current Fiscal Year End Date	'--12-31	'
Entity Well-known Seasoned Issuer	'No	'
Entity Voluntary Filers	'No	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	265,018,689
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	30-Sep-13	'

CONDENSED_CONSOLIDATED_BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Sep. 30, 2013	Dec. 31, 2012
CURRENT ASSETS	'	'
Cash and Cash Equivalents	$127,559	$158,468
Accounts Receivable	146,350	77,966
Inventory	337,582	393,588
Prepaid Expenses	68,191	50,258
Current portion of Prepaid Sales Incentive	92,000	92,000
TOTAL CURRENT ASSETS	771,682	772,280
Property, plant and equipment	203,439	257,769
Prepaid Sales Incentives	222,327	291,330
Intangible Assets	45,530	54,905
Loan Costs, net of accumulated amortization of $191,113 and $154,100	21,690	58,703
Other Assets	19,814	19,814
TOTAL ASSETS	1,284,482	1,454,801
CURRENT LIABILITIES	'	'
Accounts payable	1,313,014	1,019,372
Accrued interest	580,003	463,815
Accrued compensation	13,494	34,698
Other accrued expenses	154,627	139,827
Deferred revenue	21,855	21,352
Current portion of deferred revenue-license fees	150,000	150,000
Due to shareholder	10,000	10,000
TOTAL CURRENT LIABILITIES	2,242,993	1,839,064
Non-refundable advance deposit	704,195	725,043
Deferred revenue - license fees	350,000	462,500
Convertible notes payable, net of discounts	1,190,730	1,089,547
TOTAL LIABILITIES	4,487,918	4,116,154
STOCKHOLDERS' DEFICIT	'	'
Common Stock, par value $0.01 per share; authorized 500,000,000 shares; issued: 269,377,848 and 257,711,181 shares; outstanding 265,018,689 and 253,352,022 shares.	2,693,779	2,577,112
Additional Paid in capital	23,485,281	22,925,832
Accumulated deficit	-28,830,261	-27,612,062
Treasury stock, 4,359,159 shares, at cost	-552,235	-552,235
TOTAL STOCKHOLDERS' DEFICIT	-3,203,436	-2,661,353
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$1,284,482	$1,454,801

CONDENSED_CONSOLIDATED_BALANCE1

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) [Abstract]	'	'
Accumulated amortization, loan costs	$191,113	$154,100
Common stock, par value (in dollars per share)	$0.01	$0.01
Common stock, shares authorized (in shares)	500,000,000	500,000,000
Common stock, shares issued (in shares)	269,377,848	257,711,181
Common stock, shares outstanding (in shares)	265,018,689	253,352,022
Treasury stock, shares (in shares)	4,359,159	4,359,159

CONDENSED_CONSOLIDATED_STATEME

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) [Abstract]	'	'	'	'
REVENUES	$294,739	$425,073	$1,166,557	$1,723,660
COST OF GOODS SOLD	222,233	514,822	842,706	1,241,528
GROSS PROFIT	72,506	-89,749	323,851	482,132
EXPENSES	'	'	'	'
Selling, general and administrative	635,527	723,698	1,567,537	2,725,494
Research and development	27,444	72,237	66,682	150,162
Amortization and depreciation	12,852	6,356	40,630	52,717
TOTAL OPERATING EXPENSES	675,823	802,291	1,674,849	2,928,373
OPERATING LOSS	-603,317	-892,040	-1,350,998	-2,446,241
OTHER INCOME (EXPENSE)	'	'	'	'
Interest expense	-86,008	-82,437	-254,813	-247,545
Interest income	33	91	112	1,212
(Loss)/Gain on sale of subsidiary	150,000	0	300,000	669,054
Gain on settlement	0	0	87,500	0
Loss on disposal of assets	0	0	0	-19,168
TOTAL OTHER INCOME	64,025	-82,346	132,799	403,552
NET LOSS	($539,292)	($974,386)	($1,218,199)	($2,042,689)
NET LOSS PER SHARE, BASIC AND DILUTED (in dollars per share)	$0	$0	$0	($0.01)
Weighted average shares outstanding: basic and diluted (in shares)	263,352,022	207,721,823	258,166,837	202,766,054

CONDENSED_CONSOLIDATED_STATEME1

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES	'	'
Net loss	($1,218,199)	($2,042,689)
Adjustments to reconcile net loss to net cash used in operating activities:	'	'
Depreciation and amortization	40,630	52,717
Depreciation included in cost of goods sold	23,075	21,589
Amortization of debt discounts	138,196	126,093
Common stock issued for services	0	74,862
Stock-based compensation	340,116	248,150
Amortization of fees and incentives	-64,345	-64,798
Gain on sale of subsidiary	0	-669,054
Loss on disposal of fixed asset	0	19,168
Changes in assets and liabilities:	'	'
Accounts receivable	-68,384	-145,026
Inventory	56,006	137,658
Prepaid expenses	-17,933	23,141
Other assets	0	9,529
Accounts payable and accrued expenses	424,630	126,008
Accrued compensation	-21,204	-21,394
Deferred revenue	503	-15,078
Deferred revenues - license fees	0	500,000
NET CASH USED IN OPERATING ACTIVITIES	-366,909	-1,619,124
CASH FLOWS FROM INVESTING ACTIVITIES	'	'
Capital expenditures	0	-237,461
Proceeds from sale of subsidiary	0	539,272
Long-term receivable related to sale of subsidiary	0	-164,358
Collections on receivable from sale of subsidiary	0	164,358
NET CASH PROVIDED BY INVESTING ACTIVITIES	0	301,811
CASH FLOWS FROM FINANCING ACTIVITIES	'	'
Proceeds from issuance of common stock and warrants, net	336,000	304,000
Proceeds from common stock subscriptions, pending acceptance	0	1,250,000
NET CASH PROVIDED BY FINANCING ACTIVITIES	336,000	1,554,000
NET DECREASE IN CASH AND CASH EQUIVALENTS	-30,909	236,687
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	158,468	740,769
CASH AND CASH EQUIVALENTS, END OF PERIOD	127,559	977,456
SUPPLEMENTARY DISCLOSURES OF CASH FLOW INFORMATION	'	'
Cash payments for interest	$430	$909

ORGANIZATION

ORGANIZATION	9 Months Ended
ORGANIZATION	Sep. 30, 2013
ORGANIZATION [Abstract]	'
ORGANIZATION	'
	NOTE 1 – ORGANIZATION
	The Company is a Pennsylvania corporation that became a publicly traded company in 1999. It is listed on the OTC Exchange under the symbol "GNLK." With corporate offices and manufacturing facilities located in Orlando, Florida, the Company is a leader in personalized, genetics-based health and wellness. The Company has developed targeted DNA assessments that measure some of an individual's DNA variations. Certain gene variants, called SNP's ("snips"), cause a gene to function differently from the norm by affecting biochemical pathways or altering the production of key proteins that regulate the way other processes in our bodies work. These SNPs may have a significant impact on overall wellness of an individual client or customer. The Company's scientists use the information from the Company's DNA assessments on each client to formulate customized products to address key areas of their health based on their individual DNA.

SUMMARY_OF_SIGNIFICANT_ACCOUNT

SUMMARY OF SIGNIFICANT ACCOUNT POLICIES	9 Months Ended
	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNT POLICIES [Abstract]	'
SUMMARY OF SIGNIFICANT ACCOUNT POLICIES	'
	NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNT POLICIES
	Principles of consolidation:
	The condensed consolidated financial statements include the accounts of the Company and its wholly-owned Subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
	Use of estimates:
	The preparation of financial statements in conformity with generally accepted accounting principles 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
	Cash and cash equivalents:
	Highly liquid instruments, purchased with a maturity of three months or less, are considered to be cash equivalents. At times, cash and cash equivalents may exceed federally insured limits. The Company has not experienced any losses on such accounts. All non-interest bearing cash balances were fully insured at September 30, 2013.
	Accounts receivable:
	Accounts receivable includes amounts due from the Company's market partners, foru and geneME.
	Inventory:
	Inventory consists primarily of raw materials for the custom nutritional and skincare products sold by the Company. Inventory is valued at the lower of cost (using the first-in, first-out method).
	Property and equipment:
	Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged against operations. Renewals and betterments that materially extend the life of the assets are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of 3 to 5 years of the related assets or the lesser of the expected life or term of the lease as to leasehold improvements.
	Intangible assets:
	Intangible assets include costs incurred to apply and obtain patents for its products. Patents are amortized over the estimated useful life of the asset, on a straight-line basis.
	Deferred loan costs:
	Loan acquisition costs are amortized over the term of the debt using the effective interest method.
	Long lived assets:
	The Company reviews its long-lived assets and certain identifiable intangibles for impairment whenever events or changes indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of an asset and its eventual disposition is less than its carrying amount. The Company has not identified an impairment of any such assets for the nine months ended September 30, 2013 or the nine months ended September 30, 2012.
	Revenue recognition:
	The Company recognizes revenues in the following methods:
		For product sales, revenue is recognized upon shipment of those products.
		Licenses fees are recognized as earned and recorded based upon the terms of the underlying licensing agreements. Sales discounts are recognized and recorded based upon the terms of the underlying licensing agreements.
	Research and Development:
	Research and development costs are expensed as incurred.
	Advertising:
	The Company expenses advertising when incurred.
	Stock-Based Compensation:
	Stock-based compensation is recorded for recognition of the cost of employee or director services received in exchange for an award of equity instruments in the financial statements and is measured based on the grant date fair value of the award. The stock-based compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award (typically, the vesting period).
	The Company estimates the fair value of each option award issued under its stock option plans on the date of grant using a Black-Scholes valuation model that uses the assumptions noted below. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock for a period commensurate with the expected life. These historical periods may exclude portions of time when unusual transactions occurred. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules and post-vesting forfeitures. For shares that vest contingent upon achievement of certain performance criteria, an estimate of the probability of achievement is applied in the estimate of fair value. If the goals are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. The Company has never paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. In addition, the Company separates the grants into homogeneous groups by grant date and analyzes the assumptions for each group and computes the expense for each group utilizing these assumptions.
			Assumptions for Awards Granted for the Nine Months Ended September 30,
			2013	2012
	Expected volatility		205%	180%
	Risk-free interest rate		2.50%	4.50%
	Expected dividend yield		0%	0%

	On July 1, 2013, the company issued a total of 2,600,000 stock options. Of those options issued, 1,250,000 options vested immediately. Such options were valued at $0.01 cents per option using a Black Scholes valuation model and the following assumptions, a risk free rate of 2.5%, a dividend rate of zero, annualized volatility of 205%, exercise price of $0.03, market price of $0.01 and an expected term of five years. The total expense associated with this option issuance was $9,886.


	Earnings per share
	Basic loss per share is calculated using the weighted average number of common shares outstanding for the period and diluted is computed using the weighted average number of common shares and dilutive common equivalent shares outstanding. Given that the Company is in a net loss position, there is no difference between basic and diluted weighted average shares since the common stock equivalents would be antidilutive.
	The following common stock equivalents are excluded from the loss per share calculation as their effect would have been antidilutive:
			September 30,
			2013	2012

	Options		24,580,833	20,255,833
	Warrants		24,998,042	22,577,458
	Debt conversion warrants		1,875,000	1,875,000

	Income taxes:
	The Company has not recorded current income tax expense or benefit due to the generation of net operating losses and the consideration that the benefits of assets may not be realized. Deferred income taxes are accounted for using the balance sheet approach which requires recognition of deferred tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting basis and the tax basis of assets and liabilities. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized.
	The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company's remaining open tax years subject to examination by the Internal Revenue Service include the years ended December 31, 2009 through December 31, 2012.
	Derivative Financial Instruments:
	The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risk. Terms of convertible debt and equity instruments are reviewed to determine whether or not they contain embedded derivative instruments that are required to be accounted for separately from the host contract, and recorded on the balance sheet at fair value. The fair value of derivative liabilities, if any, is required to be revalued at each reporting date, with corresponding changes in fair value recorded in current period operating results. An evaluation of specifically identified conditions is made to determine whether the fair value of warrants issued is required to be classified as equity or as a derivative liability.
	Beneficial Conversion and Warrant Valuation:
	The Company recorded a beneficial conversion feature ("BCF") related to the issuance of convertible debt instruments that have conversion features at fixed rates that were in-the-money when issued. The Company also records the fair value of warrants issued in connection with debt instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to warrants, based on their relative fair value, and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion feature. The discounts recorded in connection with the BCF and warrant valuation are recognized for convertible debt as interest expense over the term of the debt using the effective interest method.
	Fair Value of Financial Instruments:
	The Company's financial instruments are recorded at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value:
	• Level 1 – Valuation based on quoted market prices in active markets for identical assets and liabilities.
	• Level 2 – Valuation based on quoted market prices for similar assets and liabilities in active markets.
	•	Level 3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management's best estimate of what market participants would use as fair value.
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2013. The Company uses the market approach to measure fair value of its Level 1 financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical assets or liabilities.
	The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash, accounts receivable, accounts payable, and accrued expenses. The fair value of the Company's convertible notes payable approximate their carrying value based upon current rates available to the Company.
During 2012, the Company issued warrants in connection with a license and distribution agreement (see Note 3) and engaged a third party to complete a valuation of those warrants which were recorded as Prepaid Sales Incentive on the accompanying balance sheet. The valuation was completed using Level 2 inputs.

SALE_OF_SUBSIDIARY_AND_LICENSI

SALE OF SUBSIDIARY AND LICENSING AGREEMENTS	9 Months Ended
	Sep. 30, 2013
SALE OF SUBSIDIARY AND LICENSING AGREEMENTS [Abstract]	'
SALE OF SUBSIDIARY AND LICENSING AGREEMENTS	'
	NOTE 3 – SALE OF SUBSIDIARY AND LICENSING AGREEMENTS

	On October 13, 2011, the Company entered into a Stock Purchase Agreement (the "Stock Purchase Agreement") with Capsalus Corp. ("Capsalus"), pursuant to which the Company agreed to sell 100% of the stock of its wholly-owned subsidiary, GeneWize Life Sciences, Inc. ("GeneWize"). The Stock Purchase Agreement provided for a purchase price of $500,000 payable at the closing, plus an earn-out of between $1.5 million and $4.5 million, subject to the performance of GeneWize after the closing. The earn-out amount is calculated as the greater of $25,000 per month or 10% to 15% of GeneWize monthly gross revenues, payable monthly through April, 2017. The effective date of the closing was February 10, 2012 which was the date final documents were completed following approval of the transaction by the shareholders of the Company. Due to continuing involvement with GeneWize subsequent to the sale, this transaction was not accounted for as a discontinued operation.

	The Company recorded a gain on sale of subsidiary as of February 10, 2012. Consideration for the sale included the $500,000 cash received from Capsalus and an additional $39,272 for working capital. Additional consideration included the earn-out amount which was valued at $164,358, the Company's estimate of net present value of probable cash collections under the agreement. The total consideration of $703,630 was offset by net liabilities and related costs of sale resulting in a gain on sale of $669,054.

	The Company, GeneWize and Capsalus also entered into an Interim Management Agreement dated October 13, 2011, pursuant to which Capsalus managed the operation of GeneWize until the closing date of February 10, 2012.
	Pursuant to the Interim Management Agreement, Capsalus was responsible for all expenses and received all revenues of GeneWize from October 1, 2011 through the date of closing. Capsalus advanced $204,500 to GeneWize prior to December 31, 2011 to fund operations which was recorded as "Advances from Purchaser" on the accompanying balance sheet at December 31, 2011 and an additional $75,000 was advanced to GeneWize by Capsalus prior to the closing of the sale of GeneWize. This amount was assumed by GeneWize in February 2012 upon the closing of the sale of GeneWize.

	On October 13, 2011, the Company entered into a License and Distribution Agreement (the "LDA") with Gene Elite LLC ("Gene Elite") which expires in 2017 with successive five-year renewal options provided Gene Elite meets sales and performance criteria. Pursuant to the LDA, the Company granted Gene Elite the exclusive right to sell certain skin care and nutrition products in the direct sales, multi- level marketing (MLM) and athletic formula channels. Pursuant to the LDA, the Company received $1,500,000 in license fees, of which $1,000,000 (the "Up-front fee") was received during 2011 and $500,000 was received on February 10, 2012, the closing date of the sale of GeneWize. The LDA provides for $750,000 of the Up-front fee as a Nonrefundable Advance Deposit which accrues interest at 4% per year and will be paid through product credits or issuance of common stock at market price, at the discretion of Gene Elite. The remaining $750,000 of the license fees was recorded as "Deferred Revenue - License Fees" on the accompanying balance sheet, which will be recognized over the term of the LDA beginning on February 10, 2012. As of September 30, 2013 the remaining balance in deferred revenue was $500,000 and $37,500 of the deferred revenue has been amortized into revenue during the third quarter of 2013.

	In connection with the LDA, the Company and Gene Elite entered into a Warrant Purchase Agreement dated October 13, 2011 pursuant to which the Company granted Gene Elite warrants to purchase (i) 6,000,000 shares of common stock of the Company at an exercise price of $0.10 per share and (ii) 2,000,000 shares of common stock of the Company at an exercise price of $0.45 per share (collectively, the "non-performance warrants"). In addition, and, subject to certain performance requirements being satisfied, Gene Elite was granted warrants to purchase 6,000,000 shares of common stock of the Company at an exercise price of $0.20 per share (the "performance warrants"). The 8,000,000 shares underlying the non-performance warrants, valued at $460,000 at issue date, are accounted for as "Prepaid Sales Incentives" on the accompanying balance sheet and will be amortized over the life of the licensing agreement. As of September 30, 2013, $314,327 of the prepaid sales incentive remained on the balance sheet as an asset and $23,001 was amortized into expense during the third quarter of 2013.

	The non-performance warrants were valued using a Binomial Lattice Option Valuation Technique ("Binomial") and the following assumptions:

	Fair market value of asset	$0.06
	Exercise price	$0.10 - .0.45
	Expected life	5.0 Years
	Equivalent volatility	164%
	Expected dividend yield	0%
	Risk-free rate	4.50%

	The issuance date of the performance warrants was the date of closing, February 10, 2012, and management currently does not expect the performance warrants to be earned.

	On February 10, 2012, the Company, Gene Elite and GeneWize entered into a sub-licensing and distribution agreement (SLDA) which grants GeneWize the exclusive rights contained in the LDA to market and sell certain skin care and nutrition products in the direct sales, multi- level marketing (MLM) and athletic formula channels. The term of the SLDA is concurrent with the term of the LDA including the successive renewal options granted under the LDA.

	During 2012, the Company received $165,000 of earn-out payments related to the sale of the GeneWize subsidiary. Due to our evaluation of Capsalus' ability to pay additional earn-out amount in the future. During the quarter ended September 30, 2013, the Company received an additional $150,000 of earn-out payment which was recorded in the gain on sale of subsidiary in other income in the periods received as the amount is deemed to be additional purchase price consideration. Additionally, earn-out of $150,000 for the quarter ended June 30, 2013 was reported in revenue for the second quarter but has since been reclassified and recorded in gain on sale of subsidiary in other income for the nine month period ending September 30, 2013, consistent with the third quarter presentation and bringing the total earn-out paid year-to-date September 30, 2013 to $300,000.

RELATED_PARTIES

RELATED PARTIES	9 Months Ended
RELATED PARTIES	Sep. 30, 2013
RELATED PARTIES [Abstract]	'
RELATED PARTIES	'
	NOTE 4 – RELATED PARTIES

	Consulting Fees:

	The Company has a consulting agreement with a shareholder, director, and officer of the Company for scientific advisory services. The agreement provides for annual payments of $36,000, payable $3,000 per month plus expenses. As of September 30, 2013 amounts owed to the shareholder were $26,090 and were included in accounts payable.

	The Company has a consulting agreement with a shareholder and officer of the Company for medical advisory services. The agreement provides for annual payments of $24,000, payable $2,000 per month plus expenses. As of September 30, 2013, amounts owed to the shareholder were $18,000 and were included in accounts payable.

	The Company also has a consulting agreement with a shareholder to provide strategic and business development assistance. In months where services are provided, the fee is $5,000 per month plus expenses for such services. At September 30, 2013, amounts owed to the shareholder for consulting fees were $78,196 and were included in accounts payable. In connection with the stock offerings during the nine months ended September 30, 2013, the Company also issued warrants to acquire 750,000 shares of Common Stock at an exercise price of $0.03 per share to First Equity Capital Securities, Inc. ("First Equity"), as placement agent. Such warrants were valued at $0.009 cents per warrant using a Black Scholes valuation model and the following assumptions, a risk free rate of 2%, a dividend rate of zero, annualized volatility of 221%, exercise price of $0.03, market price of $0.01 and an expected term of three years. The total expense associated with the transaction was $6,320

	Due to Shareholder:

	A shareholder had previously advanced the Company $10,000. Such advance does not bear interest and is due upon demand.

CONTINGENCIES

CONTINGENCIES	9 Months Ended
CONTINGENCIES	Sep. 30, 2013
CONTINGENCIES [Abstract]	'
CONTINGENCIES	'
	NOTE 5 - CONTINGENCIES

	On October 26, 2012, the Company entered into a proposed consent order with the staff of the Federal Trade Commission with regard to the previously reported investigation of certain advertising and sales practices. On May 22, 2013 and again on August 7, 2013, the Commission orally informed counsel for the Company that the Commission desired to modify certain provisions of the proposed agreement. After review of the proposed modified provisions, the Company signed modified Agreements Containing Consent Order on June 7, 2013 and again on August 8, 2013. The pending consent order does not include any fine and/or economic redress. The proposed agreement is subject to approval by the full Commission.

	In 2012, we switched our provider of genetic testing laboratory services. Our former provider of genetic testing laboratory services claims that we owe it approximately $150,000 under our arrangement with such company due to the failure to meet certain minimum volume requirements. Although we believe that we have valid defenses to these claims and do not owe our former laboratory any amounts, there is no assurance that we will be able to resolve such a dispute amicably or on terms that are acceptable to us.
	Previously, the Company reported on a claim pending in the Circuit Court of the 11^th Judicial Circuit in and for Miami – Dade County, Florida by a former consultant, alleging breach of contract and unjust enrichment. On October 31, 2013, the court denied our Motion to Dismiss their Second Amended Complaint (our third motion to dismiss). The court announced that we had 20 days to file our answer and affirmative defenses. Currently, the parties are participating in the discovery phase of the litigation. Although we believe that the amount in dispute is likely to be less than $25,000, we are unable at this time to determine the amount alleged to be owed by us to the former consultant.

GOING_CONCERN_AND_MANAGEMENTS_

GOING CONCERN AND MANAGEMENT'S PLANS	9 Months Ended
GOING CONCERN AND MANAGEMENT'S PLANS	Sep. 30, 2013
GOING CONCERN AND MANAGEMENT'S PLANS [Abstract]	'
GOING CONCERN AND MANAGEMENT'S PLANS	'
	NOTE 6 – GOING CONCERN AND MANAGEMENT'S PLANS

	The opinions of the Company's independent registered public accounting firm on the audited financial statements as of and for the years ended December 31, 2012 and 2011 contain an explanatory paragraph regarding substantial doubt about the Company's ability to continue as a going concern.

	The Company has a working capital deficit of $1,471,311 as of September 30, 2013. Although the Company continues to work on reducing a deficit, the Company also understands that there is still a deficit and many variables contribute to that deficit. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

	The Company also has a concern about the ability of the purchaser and operator of GeneWize to pay the earn-out related to the purchase. As of the date of this document, it is estimated that GeneLink is owed over $500,000 in earn out.

	To execute the Company's growth plans, it may need to seek additional funding through public or private financings, including debt or equity financings, and through other means, including collaborations and license agreements. Additional financing may not be available when needed, or, if available, the Company may not be able to obtain financing on favorable terms. The Company's ability to continue as a going concern is dependent upon the achievement of its marketing plans to enhance sales and its ability to raise capital. Management continues to work with existing market partners as well as pursuing additional distribution opportunities. Management also believes it has the opportunities before it to increase sales which will provide a foundation for raising additional capital. The Company's financial statements have been prepared on the basis that it is a going concern, which assumes continuity of operations and the realization of assets and satisfaction of liabilities in the ordinary course of business. The financial statements do not include any adjustments that might result if the Company was forced to discontinue its operations.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
SUBSEQUENT EVENTS	Sep. 30, 2013
SUBSEQUENT EVENTS [Abstract]	'
SUBSEQUENT EVENTS	'
	NOTE 7 – SUBSEQUENT EVENTS

	Effective November 12, 2013, the Board of Directors of the Company appointed Michael G. Smith the Chief Operating Officer and Interim Chief Financial Officer. Prior to that, Michael G. Smith held the title of Sr. Vice President of Operations for the Company since September 1, 2012.

SUMMARY_OF_SIGNIFICANT_ACCOUNT1

SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Policies)	9 Months Ended
	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNT POLICIES [Abstract]	'
Principles of consolidation	'
	Principles of consolidation:
	The condensed consolidated financial statements include the accounts of the Company and its wholly-owned Subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
Use of estimates	'
	Use of estimates:
	The preparation of financial statements in conformity with generally accepted accounting principles 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and cash equivalents	'
	Cash and cash equivalents:
	Highly liquid instruments, purchased with a maturity of three months or less, are considered to be cash equivalents. At times, cash and cash equivalents may exceed federally insured limits. The Company has not experienced any losses on such accounts. All non-interest bearing cash balances were fully insured at September 30, 2013.
Accounts receivable	'
	Accounts receivable:
	Accounts receivable includes amounts due from the Company's market partners, foru and geneME.
Inventory	'
	Inventory:
	Inventory consists primarily of raw materials for the custom nutritional and skincare products sold by the Company. Inventory is valued at the lower of cost (using the first-in, first-out method).
Property and equipment	'
	Property and equipment:
	Property and equipment are stated at cost. Expenditures for maintenance and repairs are charged against operations. Renewals and betterments that materially extend the life of the assets are capitalized. Depreciation is computed using the straight-line method over the estimated useful lives of 3 to 5 years of the related assets or the lesser of the expected life or term of the lease as to leasehold improvements.
Intangible assets	'
	Intangible assets:
	Intangible assets include costs incurred to apply and obtain patents for its products. Patents are amortized over the estimated useful life of the asset, on a straight-line basis.
Deferred loan costs	'
	Deferred loan costs:
	Loan acquisition costs are amortized over the term of the debt using the effective interest method.
Long lived assets	'
	Long lived assets:
	The Company reviews its long-lived assets and certain identifiable intangibles for impairment whenever events or changes indicate that the carrying amount of an asset may not be recoverable. An impairment loss would be recognized when estimated future cash flows expected to result from the use of an asset and its eventual disposition is less than its carrying amount. The Company has not identified an impairment of any such assets for the nine months ended September 30, 2013 or the nine months ended September 30, 2012.
Revenue recognition	'
	Revenue recognition:
	The Company recognizes revenues in the following methods:
		For product sales, revenue is recognized upon shipment of those products.
		Licenses fees are recognized as earned and recorded based upon the terms of the underlying licensing agreements. Sales discounts are recognized and recorded based upon the terms of the underlying licensing agreements.
Research and Development	'
	Research and Development:
	Research and development costs are expensed as incurred.
Advertising	'
	Advertising:
	The Company expenses advertising when incurred.
Stock-Based Compensation	'
	Stock-Based Compensation:
	Stock-based compensation is recorded for recognition of the cost of employee or director services received in exchange for an award of equity instruments in the financial statements and is measured based on the grant date fair value of the award. The stock-based compensation expense is recognized over the period during which an employee is required to provide service in exchange for the award (typically, the vesting period).
	The Company estimates the fair value of each option award issued under its stock option plans on the date of grant using a Black-Scholes valuation model that uses the assumptions noted below. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock for a period commensurate with the expected life. These historical periods may exclude portions of time when unusual transactions occurred. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules and post-vesting forfeitures. For shares that vest contingent upon achievement of certain performance criteria, an estimate of the probability of achievement is applied in the estimate of fair value. If the goals are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. The Company has never paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. In addition, the Company separates the grants into homogeneous groups by grant date and analyzes the assumptions for each group and computes the expense for each group utilizing these assumptions.
			Assumptions for Awards Granted for the Nine Months Ended September 30,
			2013	2012
	Expected volatility		205%	180%
	Risk-free interest rate		2.50%	4.50%
	Expected dividend yield		0%	0%

	On July 1, 2013, the company issued a total of 2,600,000 stock options. Of those options issued, 1,250,000 options vested immediately. Such options were valued at $0.01 cents per option using a Black Scholes valuation model and the following assumptions, a risk free rate of 2.5%, a dividend rate of zero, annualized volatility of 205%, exercise price of $0.03, market price of $0.01 and an expected term of five years. The total expense associated with this option issuance was $9,886.

Earnings per share	'
	Earnings per share
	Basic loss per share is calculated using the weighted average number of common shares outstanding for the period and diluted is computed using the weighted average number of common shares and dilutive common equivalent shares outstanding. Given that the Company is in a net loss position, there is no difference between basic and diluted weighted average shares since the common stock equivalents would be antidilutive.
	The following common stock equivalents are excluded from the loss per share calculation as their effect would have been antidilutive:
			September 30,
			2013	2012

	Options		24,580,833	20,255,833
	Warrants		24,998,042	22,577,458
	Debt conversion warrants		1,875,000	1,875,000

Income taxes	'
	Income taxes:
	The Company has not recorded current income tax expense or benefit due to the generation of net operating losses and the consideration that the benefits of assets may not be realized. Deferred income taxes are accounted for using the balance sheet approach which requires recognition of deferred tax assets and liabilities for the expected future consequences of temporary differences between the financial reporting basis and the tax basis of assets and liabilities. A valuation allowance is provided when it is more likely than not that a deferred tax asset will not be realized.
	The Company identifies and evaluates uncertain tax positions, if any, and recognizes the impact of uncertain tax positions for which there is a less than more-likely-than-not probability of the position being upheld when reviewed by the relevant taxing authority. Such positions are deemed to be unrecognized tax benefits and a corresponding liability is established on the balance sheet. The Company has not recognized a liability for uncertain tax positions. If there were an unrecognized tax benefit, the Company would recognize interest accrued related to unrecognized tax benefits in interest expense and penalties in operating expenses. The Company's remaining open tax years subject to examination by the Internal Revenue Service include the years ended December 31, 2009 through December 31, 2012.
Derivative Financial Instruments	'
	Derivative Financial Instruments:
	The Company does not use derivative instruments to hedge exposures to cash flow, market or foreign currency risk. Terms of convertible debt and equity instruments are reviewed to determine whether or not they contain embedded derivative instruments that are required to be accounted for separately from the host contract, and recorded on the balance sheet at fair value. The fair value of derivative liabilities, if any, is required to be revalued at each reporting date, with corresponding changes in fair value recorded in current period operating results. An evaluation of specifically identified conditions is made to determine whether the fair value of warrants issued is required to be classified as equity or as a derivative liability.
Beneficial Conversion and Warrant Valuation	'
	Beneficial Conversion and Warrant Valuation:
	The Company recorded a beneficial conversion feature ("BCF") related to the issuance of convertible debt instruments that have conversion features at fixed rates that were in-the-money when issued. The Company also records the fair value of warrants issued in connection with debt instruments. The BCF for the convertible instruments is recognized and measured by allocating a portion of the proceeds to warrants, based on their relative fair value, and as a reduction to the carrying amount of the convertible instrument equal to the intrinsic value of the conversion feature. The discounts recorded in connection with the BCF and warrant valuation are recognized for convertible debt as interest expense over the term of the debt using the effective interest method.
Fair Value of Financial Instruments	'
	Fair Value of Financial Instruments:
	The Company's financial instruments are recorded at fair value. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair value:
	• Level 1 – Valuation based on quoted market prices in active markets for identical assets and liabilities.
	• Level 2 – Valuation based on quoted market prices for similar assets and liabilities in active markets.
	•	Level 3 – Valuation based on unobservable inputs that are supported by little or no market activity, therefore requiring management's best estimate of what market participants would use as fair value.
	Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of September 30, 2013. The Company uses the market approach to measure fair value of its Level 1 financial assets. The market approach uses prices and other relevant information generated by market transactions involving identical assets or liabilities.
	The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include cash, accounts receivable, accounts payable, and accrued expenses. The fair value of the Company's convertible notes payable approximate their carrying value based upon current rates available to the Company.
	During 2012, the Company issued warrants in connection with a license and distribution agreement (see Note 3) and engaged a third party to complete a valuation of those warrants which were recorded as Prepaid Sales Incentive on the accompanying balance sheet. The valuation was completed using Level 2 inputs.

SUMMARY_OF_SIGNIFICANT_ACCOUNT2

SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)	9 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Tables)	Sep. 30, 2013
SUMMARY OF SIGNIFICANT ACCOUNT POLICIES [Abstract]	'
Assumptions for Stock-Based Compensation Awards Granted	'
	The Company estimates the fair value of each option award issued under its stock option plans on the date of grant using a Black-Scholes valuation model that uses the assumptions noted below. The Company estimates the volatility of its common stock at the date of grant based on the historical volatility of its common stock for a period commensurate with the expected life. These historical periods may exclude portions of time when unusual transactions occurred. The Company determines the expected life based on historical experience with similar awards, giving consideration to the contractual terms, vesting schedules and post-vesting forfeitures. For shares that vest contingent upon achievement of certain performance criteria, an estimate of the probability of achievement is applied in the estimate of fair value. If the goals are not met, no compensation cost is recognized and any previously recognized compensation cost is reversed. The Company has never paid any cash dividends on its common stock and does not anticipate paying any cash dividends in the foreseeable future. In addition, the Company separates the grants into homogeneous groups by grant date and analyzes the assumptions for each group and computes the expense for each group utilizing these assumptions.
		Assumptions for Awards Granted for the Nine Months Ended September 30,
		2013	2012
	Expected volatility	205%	180%
	Risk-free interest rate	2.50%	4.50%
	Expected dividend yield	0%	0%
Common Stock Equivalents Excluded from Loss per Share Calculation	'
	The following common stock equivalents are excluded from the loss per share calculation as their effect would have been antidilutive:
		September 30,
		2013	2012

	Options	24,580,833	20,255,833
	Warrants	24,998,042	22,577,458
	Debt conversion warrants	1,875,000	1,875,000

SALE_OF_SUBSIDIARY_AND_LICENSI1

SALE OF SUBSIDIARY AND LICENSING AGREEMENTS (Tables)	9 Months Ended
SALE OF SUBSIDIARY AND LICENSING AGREEMENTS (Tables)	Sep. 30, 2013
SALE OF SUBSIDIARY AND LICENSING AGREEMENTS [Abstract]	'
Non Performance Warrants Valuation Assumptions	'
	The non-performance warrants were valued using a Binomial Lattice Option Valuation Technique ("Binomial") and the following assumptions:

	Fair market value of asset	$0.06
	Exercise price	$0.10 - .0.45
	Expected life	5.0 Years
	Equivalent volatility	164%
	Expected dividend yield	0%
	Risk-free rate	4.50%

SUMMARY_OF_SIGNIFICANT_ACCOUNT3

SUMMARY OF SIGNIFICANT ACCOUNT POLICIES (Details) (USD $)	9 Months Ended		3 Months Ended	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Sep. 30, 2013
	Sep. 30, 2013	Sep. 30, 2012	Stock Options [Member]	Minimum [Member]	Maximum [Member]
Property, Plant and Equipment [Line Items]	'	'	'	'	'
Property, plant and equipment, estimated useful lives	'	'	'	'3 years	'5 years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'	'	'	'	'
Stock options issued (in shares)	'	'	2,600,000	'	'
Stock options vested (in shares)	'	'	1,250,000	'	'
Stock options value (in dollars per share)	'	'	$0.01	'	'
Risk free rate (in hundredths)	'	'	2.50%	'	'
Dividend rate (in hundredths)	0.00%	0.00%	0.00%	'	'
Annualized volatility (in hundredths)	-205.00%	180.00%	205.00%	'	'
Market price (in dollars per share)	'	'	$0.01	'	'
Expected term	'	'	'5 years	'	'
Share-based compensation expense	$340,116	$248,150	$9,886	'	'

SUMMARY_OF_SIGNIFICANT_ACCOUNT4

SUMMARY OF SIGNIFICANT ACCOUNT POLICIES, Valuation Assumptions (Details)	9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
SUMMARY OF SIGNIFICANT ACCOUNT POLICIES [Abstract]	'	'
Expected volatility (in hundredths)	-205.00%	180.00%
Risk-free interest rate (in hundredths)	-2.50%	4.50%
Expected dividend yield (in hundredths)	0.00%	0.00%

SUMMARY_OF_SIGNIFICANT_ACCOUNT5

SUMMARY OF SIGNIFICANT ACCOUNT POLICIES, Common Stock Equivalents (Details)	3 Months Ended
	Sep. 30, 2013	Sep. 30, 2012
Options [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Common stock equivalents are excluded from computation of loss per share (in shares)	24,580,833	20,255,833
Warrants [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Common stock equivalents are excluded from computation of loss per share (in shares)	24,998,042	22,577,458
Debt Conversion Warrants [Member]	'	'
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]	'	'
Common stock equivalents are excluded from computation of loss per share (in shares)	1,875,000	1,875,000

SALE_OF_SUBSIDIARY_AND_LICENSI2

SALE OF SUBSIDIARY AND LICENSING AGREEMENTS (Details) (USD $)

3 Months Ended

9 Months Ended

12 Months Ended

3 Months Ended

9 Months Ended

12 Months Ended

Sep. 30, 2013

Sep. 30, 2012

Sep. 30, 2013

Sep. 30, 2012

Dec. 31, 2012

Dec. 31, 2011

Feb. 10, 2012

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2012

Dec. 31, 2011

Dec. 31, 2012

Sep. 30, 2013

Jun. 30, 2013

Sep. 30, 2013

Dec. 31, 2012

Dec. 31, 2011

Cash [Member]

Working Capital [Member]

Up Front Fee [Member]

Earn Out [Member]

Gene Elite [Member]

GeneWize [Member]

Capsalus [Member]

Minimum [Member]

Maximum [Member]

Warrant Issued One [Member]

Warrant Issued Two [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Percentage of subsidiary owned (in hundredths)

100.00%

Purchase price paid

$500,000

Earn out amount per month, minimum

25,000

Earn out amount of earnings per month (in hundredths)

10.00%

15.00%

Earnings based on performance

1,500,000

4,500,000

Deferred revenue total

500,000

Deferred revenue recognized

37,500

Prepaid sales incentives

314,327

Amortization of deferred sales commissions

23,001

Gain (Loss) on sale of stock in subsidiary

669,054

150,000

Earn out amount

150,000

300,000

669,054

165,000

150,000

300,000

Sale of subsidiary consideration

703,630

500,000

39,272

164,358

Period of renewal option

'5 years

License and services revenue

500,000

1,500,000

1,000,000

Advances from purchaser

75,000

204,500

Non-refundable advance deposit

704,195

725,043

750,000

Interest rate on nonrefundable advance deposit (in hundredths)

4.00%

Common stock purchased from warrants granted (in shares)

6,000,000

Investment warrants, exercise price (in dollars per share)

$0.10

Non performance warrants number (in shares)

8,000,000

2,000,000

Non performance warrants value

$460,000

Common stock purchased from non performance warrants granted (in shares)

6,000,000

Non performance warrants exercise price (in dollars per share)

$0.20

$0.45

SALE_OF_SUBSIDIARY_AND_LICENSI3

SALE OF SUBSIDIARY AND LICENSING AGREEMENTS, Non-performance Warrants (Details) (USD $)	9 Months Ended
	Sep. 30, 2013
Class of Warrant or Right [Line Items]	'
Fair market value of asset (in dollars per share)	$0.06
Expected life	'5 years
Equivalent volatility (in hundredths)	164.00%
Expected dividend yield (in hundredths)	0.00%
Risk-free rate (in hundredths)	4.50%
Minimum [Member]	'
Class of Warrant or Right [Line Items]	'
Exercise price (in dollars per share)	$0.10
Maximum [Member]	'
Class of Warrant or Right [Line Items]	'
Exercise price (in dollars per share)	$0.45

RELATED_PARTIES_Details

RELATED PARTIES (Details) (USD $)	9 Months Ended
RELATED PARTIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
Related Party Transaction [Line Items]	'	'
Due to shareholder	$10,000	$10,000
Fair Value, Option, Quantitative Disclosures [Line Items]	'	'
Risk-free rate (in hundredths)	4.50%	'
Expected dividend rate (in hundredths)	0.00%	'
Annualized volatility (in hundredths)	164.00%	'
Expected term	'5 years	'
Warrant [Member]	'	'
Fair Value, Option, Quantitative Disclosures [Line Items]	'	'
Warrants to purchase common stock (in shares)	750,000	'
Exercise price (in dollars per share)	$0.03	'
Warrants value (in dollars per share)	$0.01	'
Risk-free rate (in hundredths)	2.00%	'
Expected dividend rate (in hundredths)	0.00%	'
Annualized volatility (in hundredths)	221.00%	'
Market price (in dollars per share)	$0.01	'
Expected term	'3 years	'
Warrant expense	6,320	'
Scientific Advisory Services [Member]	'	'
Related Party Transaction [Line Items]	'	'
Annual payment of consulting fees	36,000	'
Consulting fees payable monthly	3,000	'
Due to shareholder	26,090	'
Strategic and Business Development Assistance [Member]	'	'
Related Party Transaction [Line Items]	'	'
Consulting fees payable monthly	5,000	'
Due to shareholder	78,196	'
Medical Advisory Services [Member]	'	'
Related Party Transaction [Line Items]	'	'
Annual payment of consulting fees	24,000	'
Consulting fees payable monthly	2,000	'
Due to shareholder	$18,000	'

CONTINGENCIES_Details

CONTINGENCIES (Details) (USD $)	9 Months Ended	12 Months Ended
CONTINGENCIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012
CONTINGENCIES [Abstract]	'	'
Loss contingency, damages sought, value	'	$150,000
Number of days to file amended complaint	'20 days	'
Loss contingency range of possible loss maximum	$25,000	'

GOING_CONCERN_AND_MANAGEMENTS_1

GOING CONCERN AND MANAGEMENT'S PLANS (Details) (USD $)	Sep. 30, 2013
GOING CONCERN AND MANAGEMENT'S PLANS [Abstract]	'
Working capital deficit	$1,471,311
Earn-out receivable	$500,000