Coates International 10-Q 10 Nov 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Nov. 08, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	COATES INTERNATIONAL LTD \DE\
Entity Central Index Key	948,426
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		3,060,518,968

Balance Sheets

Balance Sheets - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Current Assets
Cash	$ 11,411	$ 29,207
Inventory, net	246,545	218,018
Other current assets	6,133	9,117
Total Current Assets	264,089	256,342
Property, plant and equipment, net	2,087,573	2,108,990
Deferred licensing costs, net	39,236	42,449
Total Assets	2,390,898	2,407,781
Current Liabilities
Accounts payable and accrued liabilities	2,076,605	2,022,568
Promissory Notes to related parties	1,446,482	1,455,882
Deferred Compensation Payable	1,155,102	922,144
Convertible Promissory Notes, net of unamortized discount	61,831	408,110
Derivative liability related to convertible promissory notes	158,196	632,927
Unearned Revenue	150,595	150,595
Current portion of license deposits	60,725	60,725
Current portion of mortgage loan payable	60,000	60,000
Current portion of finance lease obligation, net of unamortized discount		19,349
Total Current Liabilities	5,169,536	5,732,300
Non-current portion of mortgage loan payable	1,283,158	1,328,159
Non-current portion of license deposits	631,975	646,375
Total Liabilities	7,084,669	7,706,834
Commitments and Contingencies
Stockholders' Deficiency
Preferred stock, $0.001 par value, 100,000,000 shares authorized: Series A Preferred Stock, 1,000,000 shares designated, 50,000 shares issued and outstanding at September 30, 2016 and December 31, 2015	50	50
Series B Convertible Preferred Stock, 25,000,000 and 5,000,000 shares designated, 16,092,505 and 3,492,749 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively	16,093	3,493
Common Stock, $0.0001 par value, 12,000,000,000 shares authorized, 2,959,323,883 shares issued and outstanding at September 30, 2016 and 2,000,000,000 shares authorized, 1,036,791,116 shares issued and outstanding at December 31, 2015	295,932	103,679
Additional paid-in capital	59,816,516	51,564,723
Accumulated deficit	(64,822,362)	(56,970,998)
Total Stockholders' Deficiency	(4,693,771)	(5,299,053)
Total Liabilities and Stockholders' Deficiency	$ 2,390,898	$ 2,407,781

Balance Sheets (Parenthetical)

Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2016	Dec. 31, 2015
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, authorized shares	100,000,000	100,000,000
Common stock, par value	$ 0.0001	$ 0.0001
Common stock, authorized shares	12,000,000,000	2,000,000,000
Common stock, issued shares	2,959,323,883	1,036,791,116
Common stock, outstanding shares	2,959,323,883	1,036,791,116
Series A Preferred Stock [Member]
Series A preferred stock, designated shares	1,000,000	1,000,000
Series A Preferred stock, issued shares	50,000	50,000
Series A Preferred stock, outstanding shares	50,000	50,000
Series B Convertible Preferred Stock [Member]
Series B convertible preferred stock, designated shares	25,000,000	5,000,000
Series B Preferred stock, issued shares	16,092,505	3,492,749
Series B Preferred stock, outstanding shares	16,092,505	3,492,749

Statements of Operations (Unaud

Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Statements of Operations [Abstract]
Sublicensing fee revenue	$ 4,800	$ 4,800	$ 14,400	$ 14,400
Total Revenues	4,800	4,800	14,400	14,400
Expenses:
Research and development costs	1,250	93,198	189,773	282,942
Compensation and benefits	4,212,206	1,490,842	7,070,179	7,276,854
General and administrative expenses	109,842	179,425	333,397	456,721
Depreciation and amortization	12,249	12,619	36,122	40,378
Total Operating Expenses	4,335,547	1,776,084	7,629,471	8,056,895
Loss from Operations	(4,330,747)	(1,771,284)	(7,615,071)	(8,042,495)
Other Income (Expense):
Decrease (increase) in estimated fair value of embedded derivative liabilities	56,950	(467,639)	474,731	(395,744)
Loss on conversion of convertible notes	(54,932)	(18,257)	(124,962)	(256,327)
Interest expense, net	(110,641)	(187,038)	(586,063)	(588,556)
Total Other Income (Expense)	(108,623)	(672,934)	(236,294)	(1,240,627)
Loss Before Income Taxes	(4,439,370)	(2,444,218)	(7,851,365)	(9,283,122)
Provision for income taxes
Net Loss	$ (4,439,370)	$ (2,444,218)	$ (7,851,365)	$ (9,283,122)
Basic net loss per share	$ 0	$ 0	$ 0	$ (0.01)
Basic weighted average shares outstanding	2,508,814,075	944,977,964	1,723,247,751	731,942,336
Diluted net loss per share	$ 0	$ 0	$ 0	$ (0.01)
Diluted weighted average shares outstanding	2,508,814,075	944,977,964	1,723,247,751	731,942,336

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Statement of Cash Flows [Abstract]
Net Cash Used in Operating Activities	$ (449,121)	$ (806,599)
Cash Used in Investing Activities:
Acquisition of property, plant and equipment	(11,493)	(37,090)
Total Cash Used in Investing Activities	(11,493)	(37,090)
Cash Flows Provided by (Used in) Financing Activities:
Issuance of common stock under equity purchase agreements	150,000	258,060
Issuance of promissory notes to related parties	162,443	60,000
Issuance of convertible promissory notes	154,000	653,000
Issuance of common stock and warrants to related party	45,000
Repayment of mortgage loan	(45,000)	(45,125)
Repayment of promissory notes to related parties	(15,000)	(166,000)
Finance Lease Obligation Payments	(8,625)	(51,089)
Repayment of convertible promissory notes		(52,750)
Net Cash Provided by Financing Activities	442,818	656,096
Net Decrease in Cash	(17,796)	(187,594)
Cash, beginning of period	29,207	263,526
Cash, end of period	11,411	75,933
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for interest	80,022	140,897
Supplemental Disclosure of Non-cash Financing Activities:
Conversion of convertible promissory notes	$ 639,700	$ 748,093

The Company and Basis of Presen

The Company and Basis of Presentation	9 Months Ended
	Sep. 30, 2016
The Company and Basis of Presentation [Abstract]
THE COMPANY AND BASIS OF PRESENTATION	1. THE COMPANY AND BASIS OF PRESENTATION Nature of Organization Coates International, Ltd. (the “Company” or “CIL”) has acquired the exclusive licensing rights to the patented Coates spherical rotary valve (“CSRV ® ® ® ® ® Management believes that the CSRV ® ● Improved fuel efficiency ● Lower levels of harmful emissions ● Adaptability to numerous types of engine fuels ● Longer engine life ● Longer intervals between engine servicing The CSRV ® ® ® ® ® ® ® Basis of Presentation The accompanying condensed financial statements include the accounts of the Company. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed financial statements have been reclassified to conform to the current period’s presentation. These condensed financial statements and accompanying notes should be read in conjunction with the Company’s annual financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2015 and the Company’s quarterly financial statements and the notes thereto included in its Quarterly Reports on Form 10-Q for the six months ended June 30, 2016 and for the three months ended March 31, 2016. Since the Company’s inception, the Company has been responsible for the development costs of the CSRV ® ® ® As shown in the accompanying financial statements, the Company has incurred recurring losses from operations and, as of September 30, 2016, had a stockholders’ deficiency of ($4,694,000). In addition, the current economic environment, which is characterized by tight credit markets, investor uncertainty about how to safely invest their funds and low investor confidence, has introduced additional risk and difficulty to the Company’s challenge to secure needed additional working capital. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management has instituted a cost control program intended to restrict variable costs to only those expenses that are necessary to complete its activities related to entering the production phase of operations, develop additional commercially feasible applications of the CSRV ® The Company continues to actively seek out new sources of working capital; however, there can be no assurance that it will be successful in these efforts. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These significant estimates include determining the fair value of convertible promissory notes containing embedded derivatives and variable conversion rates, determining a value for shares of Series A Preferred Stock and Series B Convertible Preferred Stock issued, assigning useful lives to the Company’s property, plant and equipment, determining an appropriate amount to reserve for obsolete and slow moving inventory, estimating a valuation allowance for deferred tax assets, assigning expected lives to, and estimating the rate of forfeitures of, stock options granted and selecting a trading price volatility factor for the Company’s common stock in order to estimate the fair value of the Company’s stock options on the date of grant or other appropriate measurement date. Actual results could differ from those estimates.

Concentrations of Credit and Bu

Concentrations of Credit and Business Risk	9 Months Ended
	Sep. 30, 2016
Concentrations of Credit and Business Risk [Abstract]
CONCENTRATIONS OF CREDIT AND BUSINESS RISK	2. CONCENTRATIONS OF CREDIT AND BUSINESS RISK The Company maintains a cash balance with one financial institution. Monies on deposit are fully insured by the Federal Deposit Insurance Corporation. The Company’s operations are devoted to the development, application and marketing of the CSRV ® ®

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2016
Fair Value of Financial Instruments [Abstract]
FAIR VALUE OF FINANCIAL INSTRUMENTS	3. FAIR VALUE OF FINANCIAL INSTRUMENTS Cash, Other Assets, Accounts Payable and Accrued Liabilities and Other Liabilities With the exception of convertible promissory notes, the carrying amount of these items approximates their fair value because of the short term maturity of these instruments. The convertible promissory notes are reported at their estimated fair value, determined as described in more detail in Note 14. Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Licensing Agreement and Deferre

Licensing Agreement and Deferred Licensing Costs	9 Months Ended
	Sep. 30, 2016
Licensing Agreement and Deferred Licensing Costs [Abstract]
LICENSING AGREEMENT AND DEFERRED LICENSING COSTS	4. LICENSING AGREEMENT AND DEFERRED LICENSING COSTS The Company holds a manufacturing, use, lease and sale license from George J. Coates and Gregory G. Coates for the CSRV ® ® ® ® ® Under the License Agreement, George J. Coates and Gregory G. Coates agreed that they will not grant any Western Hemisphere licenses to any other party with respect to the CSRV ® At September 30, 2016, and December 31, 2015, deferred licensing costs, comprised of expenditures for patent costs incurred pursuant to the CSRV ®

Agreements Assigned to Almont E

Agreements Assigned to Almont Energy, Inc.	9 Months Ended
	Sep. 30, 2016
Agreements Assigned to Almont Energy, Inc. [Abstract]
AGREEMENTS ASSIGNED TO ALMONT ENERGY, INC.	5. AGREEMENTS ASSIGNED TO ALMONT ENERGY, INC. Almont Energy Inc. (“Almont”), a privately held, independent third-party entity based in Alberta, Canada is the assignee of a sublicense which provides for a $5,000,000 license fee to be paid to the Company and covers the use of the CSRV ® Almont is also the assignee of an escrow agreement (the “Escrow Agreement”) that provides conditional rights to a second sublicense agreement from the Company for the territory of the United States (the “US License”). The US License has been deposited into an escrow account and the grant of the license will not become effective until the conditions for release from escrow are satisfied. The US License provides for a license fee of $50 million. The Escrow Agreement requires that Almont, as the assignee, make a payment (“Release Payment”) to the Company equal to the then remaining unpaid balance of the Canadian License licensing fee, the R&D Agreement fee and the down payment of $1,000,000 required under the US License. It is not likely that Almont will be able to make additional payments of the Release Payment until the Company can raise sufficient new working capital to commence production and ship Gen Sets to Almont. At September 30, 2016, the remaining balance of the Release Payment due to the Company was $5,847,000.

Non-Exclusive Distribution Subl

Non-Exclusive Distribution Sublicense with Renown Power Development, Ltd.	9 Months Ended
	Sep. 30, 2016
Non-Exclusive Distribution Sublicense with Renown Power Development, Ltd. [Abstract]
NON-EXCLUSIVE DISTRIBUTION SUBLICENSE WITH RENOWN POWER DEVELOPMENT, LTD.	6. NON-EXCLUSIVE DISTRIBUTION SUBLICENSE WITH RENOWN POWER DEVELOPMENT, LTD. In February 2015, the Company granted a non-exclusive distribution sublicense to Renown Power Development, Ltd., a China-based sales and distribution company (“Renown”) covering the territory defined as the Western Hemisphere. Under this sublicense, Renown will be permitted to sell, lease and distribute CSRV ® As collateral for payment of the sublicensing fee, Coates Power, Ltd. an independent China-based manufacturing company that will produce CSRV ® Coates Power has agreed to initially source its production parts and components from the Company. In February 2015, the Company received an order from Coates Power for approximately $131,000 of production parts and components, at cost, in connection with its plans to manufacture two initial Gen Sets. In June, 2015, by mutual consent of the parties, it was agreed that the Company would assemble two completed Gen Sets for shipment to Coates Power in China in lieu of shipping the parts and components. This amount is included in deposits in the accompanying balance sheet at September 30, 2016.

Inventory

Inventory	9 Months Ended
	Sep. 30, 2016
Inventory [Abstract]
INVENTORY	7. INVENTORY Inventory consisted of the following: September 30, 2016 December 31, 2015 Raw materials $ 559,000 $ 554,000 Work-in-process 75,000 51,000 Less: Reserve for obsolescence (387,000 ) (387,000 ) Total $ 247,000 $ 218,000

License Deposits

License Deposits	9 Months Ended
	Sep. 30, 2016
License Deposits [Abstract]
LICENSE DEPOSITS	8. LICENSE DEPOSITS License deposits consist of monies received as deposits on sublicense agreements, primarily comprised of deposits from Renown in the amount of $498,000 and from Almont in the amount of $300,000. These deposits are to be recognized as income on a straight-line basis over the remaining period until expiration of the last remaining CSRV ® Sublicensing fee revenue for the three months ended September 30, 2016 and 2015 amounted to $5,000 and $5,000, respectively. Sublicensing fee revenue for the nine months ended September 30, 2016 and 2015 amounted to $14,000 and $14,000, respectively.

Property, Plant and Equipment

Property, Plant and Equipment	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
PROPERTY, PLANT AND EQUIPMENT	9. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment at cost, less accumulated depreciation, consist of the following: September 30, 2016 December 31, 2015 Land $ 1,235,000 $ 1,235,000 Building 964,000 964,000 Building improvements 83,000 83,000 Machinery and equipment 689,000 689,000 Furniture and fixtures 57,000 46,000 3,028,000 3.017,000 Less: Accumulated depreciation (940,000 ) (908,000 ) Total $ 2,088,000 $ 2,109,000 Depreciation expense amounted to $11,000 and $12,000 for the three months ended September 30, 2016 and 2015, respectively. Depreciation expense amounted to $33,000 and $37,000 for the nine months ended September 30, 2016 and 2015, respectively.

Mortgage Loan Payable

Mortgage Loan Payable	9 Months Ended
	Sep. 30, 2016
Mortgage Loan Payable [Abstract]
MORTGAGE LOAN PAYABLE	10. MORTGAGE LOAN PAYABLE The Company has a mortgage loan on the land and building that serves as its headquarters and research and development facility which bears interest at the rate of 7.5% per annum and matures in July 2018. Interest expense for the three months ended September 30, 2016 and 2015 amounted to $26,000 and $28,000, respectively. Interest expense for the nine months ended September 30, 2016 and 2015 amounted to $78,000 and $73,000, respectively. The loan requires monthly payments of interest, plus $5,000 which is being applied to the principal balance. The remaining principal balance at September 30, 2016 and December 31, 2015 was $1,343,000 and $1,388,000, respectively. The mortgage loan may be prepaid in whole, or, in part, at any time without penalty. The loan is collateralized by a security interest in all of the Company’s assets, the pledge of five million shares of common stock of the Company owned by George J. Coates, which were deposited into escrow for the benefit of the lender and the personal guarantee of George J. Coates. The Company is not permitted to create or permit any secondary mortgage or similar liens on the property or improvements thereon without prior consent of the lender.

Finance Lease Obligation

Finance Lease Obligation	9 Months Ended
	Sep. 30, 2016
Finance Lease Obligation [Abstract]
FINANCE LEASE OBLIGATION	11. FINANCE LEASE OBLIGATION In August 2013, the Company entered into a sale/leaseback financing arrangement pursuant to which it sold its research and development and manufacturing equipment in consideration for net cash proceeds of $133,000. This lease terminated in February 2016, upon which the Company reacquired title to the equipment. The effective interest rate on this lease was 36.6%. In accordance with GAAP, this sale/leaseback was required to be accounted for as a financing lease. Under this accounting method, the equipment and accumulated depreciation remained on the Company’s books and records as if the Company still owned the equipment. For the three months ended September 30, 2016 and 2015, interest expense amounted to $-0- and $7,000, respectively. For the nine months ended September 30, 2016 and 2015, interest expense amounted to $2,000 and $26,000, respectively. These amounts are included in interest expense in the accompanying statements of operations.

Accounts Payable and Accrued Li

Accounts Payable and Accrued Liabilities	9 Months Ended
	Sep. 30, 2016
Accounts Payable and Accrued Liabilities [Abstract]
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES	12. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities are as follows: September 30, 2016 December 31, 2015 Legal and professional fees $ 1,446,000 $ 1,368,000 General and administrative expenses 350,000 163,000 Accrued interest expense 166,000 376,000 Research and development costs 115,000 115,000 Total $ 2,077,000 $ 2,022,000

Promissory Notes to Related Par

Promissory Notes to Related Parties	9 Months Ended
	Sep. 30, 2016
Promissory Notes to Related Parties [Abstract]
PROMISSORY NOTES TO RELATED PARTIES	13. PROMISSORY NOTES TO RELATED PARTIES Promissory Notes Issued to George J. Coates During the nine months ended September 30, 2016 and 2015, the Company issued, in a series of transactions, promissory notes to George J. Coates and received cash proceeds of $162,000 and $60,000, respectively, repaid promissory notes to George J. Coates in the aggregate principal amount of $15,000 and $120,000, respectively, and also paid him $43,000 of accrued interest in 2015. In May 2016, by mutual consent, Mr. Coates converted $100,000 of principal and interest into 90,909,091 restricted shares of common stock at the closing trading price of the stock on the date of conversion of $0.0011 per share. In July 2016, by mutual consent, George J. Coates converted $120,000 of principal and interest into 200,000,000 restricted shares of common stock at the closing trading price of the stock on the date of conversion of $0.0006 per share. In August 2016, by mutual consent, George J. Coates converted $252,000 of principal and interest into 279,549,056 restricted shares of common stock at the closing trading price of the stock on the date of conversion of $0.0009 per share. The promissory notes are payable on demand and provide for interest at the rate of 17% per annum, compounded monthly. At September 30, 2016, the outstanding balance was $1,000, including accrued interest thereon. Promissory Note Issued to Gregory G. Coates The Company has a non-interest bearing promissory note due to Gregory G. Coates which is payable on demand. Interest is being imputed on this promissory note at the rate of 10% per annum. Interest expense for the three months ended September 30, 2016 and 2015 amounted to $36,000 and $36,000, respectively. Interest expense for the nine months ended September 30, 2016 and 2015 amounted to $108,000 and $108,000, respectively. During the nine months ended September 30, 2015, the Company repaid promissory notes to Gregory G. Coates in the aggregate principal amount of $15,000. At September 30, 2016, the outstanding principal balance was $1,438,000. Promissory Notes Issued to Bernadette Coates During the nine months ended September 30, 2016 and 2015, the Company repaid promissory notes to Bernadette Coates, spouse of George J. Coates, in the aggregate principal amount of $-0- and $31,000, respectively. The promissory notes are payable on demand and provide for interest at the rate of 17% per annum, compounded monthly. Interest expense for the three months ended September 30, 2016 and 2015 amounted to $3,000 and $3,000, respectively. Interest expense for the nine months ended September 30, 2016 and 2015 amounted to $10,000 and $11,000, respectively. At September 30, 2016, the outstanding balance amounted to $80,000, including accrued interest thereon. Unpaid accrued interest on these promissory notes amounting to $75,000 is included in accounts payable and accrued liabilities in the accompanying balance sheet at September 30, 2016.

Convertible Promissory Notes an

Convertible Promissory Notes and Embedded Derivative Liability	9 Months Ended
	Sep. 30, 2016
Convertible Promissory Notes and Embedded Derivative Liability [Abstract]
CONVERTIBLE PROMISSORY NOTES AND EMBEDDED DERIVATIVE LIABILITY	14. CONVERTIBLE PROMISSORY NOTES AND EMBEDDED DERIVATIVE LIABILITY From time to time, the Company issues convertible promissory notes, the proceeds of which are used for general working capital purposes. At September 30, 2016, there was $124,000 principal amount of convertible promissory notes outstanding. During the nine months ended September 30, 2016 and 2015, $165,000 and $676,000 of convertible promissory notes were issued, respectively. Outstanding notes may be converted into unregistered shares of the Company’s common stock at a discount ranging from 30% to 38% of the defined trading price of the common stock on the date of conversion. The defined trading prices are based on the trading price of the stock during a defined period ranging from fifteen to twenty-five trading days immediately preceding the date of conversion. The conversion rate discount establishes a beneficial conversion feature (“BCF”) or unamortized discount, which is required to be valued and accreted to interest expense over the six-month period until the conversion of the notes into restricted shares of common stock is permitted. In addition, the conversion formula meets the conditions that require accounting for convertible notes as derivative liability instruments. The effective interest rate on the outstanding convertible notes at September 30, 2016 ranged from 147% to 183%. The unamortized discount on the outstanding convertible notes at September 30, 2016 and December 31, 2015 amounted to $62,000 and $150,000, respectively. The convertible notes generally become convertible, in whole, or in part, beginning on the six month anniversary of the issuance date and may be prepaid at the option of the Company, generally with a prepayment penalty equal to 50% of the principal amount of the convertible note at any time prior to becoming eligible for conversion. One convertible promissory note with a balance of $50,000 is convertible in monthly installments in an amount determined by the noteholder of up to $50,000, plus accrued interest. The Company may elect, at its option to repay each monthly installment in whole, or in part, in cash, without penalty. The amount of each installment not paid in cash is converted into shares of the Company’s common stock. This convertible note also requires that the conversion price be re-measured 23 trading days after the conversion shares are originally delivered. If the re-measured conversion price is lower, then the Company is required to issue additional conversion shares to the noteholder. In accordance with GAAP, the estimated fair value of the embedded derivative liability related to the convertible notes is required to be remeasured at each balance sheet date. The fair value measurement accounting standard establishes a valuation hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used, when available. Observable inputs are inputs market participants would use in valuing the asset or liability developed based on independent market data sources. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability developed based upon the best information available. The valuation hierarchy is composed of three categories, which are as follows: ● Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. ● Level 2 – Inputs include quoted prices in active markets for similar assets or liabilities, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. ● Level 3 – Inputs to the fair value measurement are unobservable inputs or valuation techniques. The estimated fair value of the embedded derivative liabilities related to promissory notes outstanding was measured as the aggregate estimated fair value, based on Level 2 inputs, which included the average of the quoted daily yield curve rates on six-month and one-year treasury securities and, because the actual volatility rate on the Company’s common stock is not available, a conservative estimated volatility rate of 200%. The embedded derivative liability arises because, based on historical trading patterns of the Company’s stock, the formula for determining the Conversion Rate is expected to result in a different Conversion Rate than the closing price of the stock on the actual date of conversion (hereinafter referred to as the “Variable Conversion Rate Differential”). The estimated fair values of the derivative liabilities have been calculated based on a Black-Scholes option pricing model. The following table presents the Company's fair value hierarchy of financial assets and liabilities measured at fair value at: September 30, 2016 December 31, 2015 Level 1 Inputs $ - $ - Level 2 Inputs 158,000 633,000 Level 3 Inputs - - Total $ 158,000 $ 633,000 In a series of transactions, during the nine months ended September 30, 2016, convertible promissory notes with an aggregate principal balance of $665,000, including accrued interest thereon were converted into 1,209,182,017 unregistered shares of common stock. The Company incurred a loss on these conversions amounting to $125,000 for the nine months ended September 30, 2016. In a series of transactions, during the nine months ended September 30, 2015, convertible promissory notes with an aggregate principal balance of $790,000, including accrued interest thereon were converted into 459,875,350 unregistered shares of common stock. The Company incurred a loss on these conversions amounting to $256,000 for the nine months ended September 30, 2015. In two transactions, during the nine months ended September 30, 2015, the Company also repaid $55,000 of a convertible promissory note, including accrued interest thereon without penalty. At September 30, 2016, the Company had reserved 904,147,000 shares of its unissued common stock for conversion of convertible promissory notes. The Company made the private placement of these securities in reliance upon Section 4(2) of the Securities Act of 1933, as amended (the “Act”), Rule 506 of Regulation D, and the rules and regulations promulgated thereunder, and/or upon any other exemption from the registration requirements of the Act, as applicable.

Capital Stock

Capital Stock	9 Months Ended
	Sep. 30, 2016
Capital Stock/Stock Options [Abstract]
CAPITAL STOCK	15. CAPITAL STOCK Common Stock The Company’s common stock is traded on OTC Pink Sheets. Investors can find stock quotes and market information for the Company at www.otcmarkets.com The following common stock transactions occurred during the nine months ended September 30, 2016: ● In a series of transactions during the nine months ended September 30, 2016, convertible promissory notes with an aggregate principal balance of $665,000, including accrued interest thereon were converted into 1,209,182,017 unregistered shares of common stock. ● In a series of transactions during the nine months ended September 30, 2016, the Company issued 87,892,603 registered shares of its common stock to Southridge Partners II LP (“Southridge”) under the 2015 EP Agreement, as discussed in Note 20, in consideration for $150,000. The proceeds were used for general working capital. The Company is required to deliver shares of its common stock to Southridge with each Put Notice based on the dollar amount of the Put Notice and the trading price of the common stock. At September 30, 2016, there were 24,539,007 shares of common stock previously delivered and held by Southridge which had not been sold. These shares may be held by Southridge until sold under future Put Notices or until the Company requests that they be returned. ● During the nine months ended September 30, 2016, the Company made private sales, pursuant to stock purchase agreements, of 55,000,000 unregistered shares of its common stock and 55,000,000 common stock warrants to purchase one unregistered share of its common stock at exercise prices ranging from $0.005 to $0.001 per share, in consideration for $45,000. ● During the nine months ended September 30, 2016, in a series of transactions by mutual consent between the Company and George J. Coates, $472,000 principal amount of promissory notes, including accrued interest, were converted into 570,458,147 restricted, unregistered shares of the Company’s common stock at conversion rates ranging from $0.0006 to $0.0011 per share, which was the closing trading price of the stock on the respective dates of conversion. The following common stock transactions occurred during the nine months ended September 30, 2015: ● In a series of transactions during the nine months ended September 30, 2015, convertible promissory notes with an aggregate principal balance of $790,000, including accrued interest thereon were converted into 459,875,350 unregistered shares of common stock. ● In a series of transactions during the nine months ended September 30, 2015, the Company issued 45,910,165 registered shares of its common stock to Southridge Partners II LP (“Southridge”) under equity purchase agreements in consideration for $258,000. The proceeds were used for general working capital. The Company is required to deliver shares of its common stock to Southridge with each Put Notice based on the dollar amount of the Put Notice and the trading price of the common stock. At September 30, 2016, on a pro forma basis, the approximate number of shares of common stock that would be issued if all of the Company’s outstanding convertible notes eligible for conversion, had been converted was 100,531,899. None of the outstanding stock options and warrants were assumed to be exercised since the trading price of the stock on September 30, 2016 was below the exercise price of such instruments. Preferred Stock and anti-dilution rights The Company is authorized to issue 100,000,000 shares of preferred stock, par value, $0.001 per share (the “Preferred Stock”). The Company may issue any class of the Preferred Stock in any series. The board is authorized to establish and designate series, and to fix the number of shares included in each such series and the relative rights, preferences and limitations as between series, provided that, if the stated dividends and amounts payable on liquidation are not paid in full, the shares of all series of the same class shall share ratably in the payment of dividends including accumulations, if any, in accordance with the sums which would be payable on such shares if all dividends were declared and paid in full and in any distribution of assets other than by way of dividends in accordance with the sums which would be payable on such distribution if all sums payable were discharged in full. Shares of each such series when issued, shall be designated to distinguish the shares of each series from shares of all other series. There are two series of Preferred Stock that have been designated to date from the total 100,000,000 authorized shares of Preferred Stock. These are as follows: ● Series A Preferred Stock, par value $0.001 per share (“Series A”), 1,000,000 shares designated, 50,000 and 50,000 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively. Shares of Series A entitle the holder to 10,000 votes per share on all matters brought before the shareholders for a vote. These shares are not entitled to receive dividends or share in distributions of capital and have no liquidation preference. All outstanding shares of Series A are owned by George J. Coates. ● Series B Convertible Preferred Stock, par value $0.001 per share, 25,000,000 and 5,000,000 shares designated, 16,092,505 and 3,492,749 shares issued and outstanding as of September 30, 2016 and December 31, 2015, respectively. Shares of Series B do not earn any dividends and may be converted at the option of the holder at any time beginning on the second annual anniversary date after the date of issuance into 1,000 unregistered shares of the Company’s common stock. Holders of Series B are entitled to one thousand votes per share held, on all matters brought before the shareholders for a vote. In the event that either (i) the Company enters into an underwriting agreement for a secondary public offering of securities, or (ii) a change in control of the Company is consummated representing 50% more of the then outstanding shares of Company’s common stock, plus the number of shares of common stock into which any convertible preferred stock is convertible, regardless of whether or not such shares are otherwise eligible for conversion, then the Series B may be immediately converted at the option of the holder into restricted shares of the Company’s common stock. The Company has anti-dilution provisions in place for key executives which are triggered upon the issuance of new shares of its common stock to individuals that are not direct Coates family members or entities that are not controlled by Coates family members. These anti-dilution provisions do not apply to new shares of common stock issued in connection with exercises of employee stock options, a secondary public offering of the Company’s securities or a merger or acquisition. These provisions are as follows: ● For each such new share of common stock issued, shares of Series B will be issued to Mr. Coates equal to that number of shares of Series B required to maintain his ownership percentage of shares of common stock outstanding on a pro forma basis, at 78%, which was his ownership percentage as of December 31, 2002. As a result of the conversions of Mr. Coates’ promissory notes into 570,458,147 shares of common stock, as discussed in Note 13, his ownership percentage to be maintained through anti-dilution increased to 83.5%. ● For each such new share of common stock issued, shares of Series B will be issued to Gregory G. Coates in order to maintain his ownership percentage of common stock at 5.31% of the pro forma number of shares of common stock outstanding, assuming all shares of Series B were converted into common stock. This was his percentage ownership of common stock at December 31, 2002. ● For each such new share of common stock issued, shares of Series B will be issued to Barry C. Kaye in order to maintain his ownership percentage of common stock at a calculated percentage of the pro forma number of shares of common stock outstanding, assuming all shares of Series B were converted into common stock. This calculated percentage, which was 0.04157% at September 30, 2016, is equal to the weighted average percentage ownership of common stock he purchased, based on the number of shares of common stock outstanding on each date he acquired shares of common stock. This percentage is subject to adjustment if he acquires or disposes of shares of the Company’s common stock in the future. The following presents by year, the number of shares of Series B held and the year that they become eligible for conversion into shares of common stock. Total 2016 2017 2018 George J. Coates 15,016,987 541,933 2,708,430 11,766,624 Gregory G. Coates 997,620 40,593 184,382 772,645 Barry C. Kaye 77,898 2,976 14,435 60,487 Total 16,092,505 585,502 2,907,247 12,599,756 For the nine months ended September 30, 2016, 11,766,624, 772,645 and 60,487 shares of Series B were issued to George J. Coates, Gregory G. Coates and Barry C. Kaye, respectively, having an estimated fair value of $6,749,000, $447,000 and $35,000, respectively. These amounts were included in stock-based compensation expense in the accompanying statement of operations for the nine months ended September 30, 2016. For the nine months ended September 30, 2015, 2,463,772, 167,726 and 13,131 shares of Series B were issued to George J. Coates, Gregory G. Coates and Barry C. Kaye, respectively, having an estimated fair value of $6,874,000, $468,000 and $37,000, respectively. These amounts were included in stock-based compensation expense in the accompanying statement of operations for the nine months ended September 30, 2015. In the event that all of the 16,092,505 shares of Series B outstanding at September 30, 2016 were converted, once the conversion restrictions lapse, an additional 16,092,505,000 new restricted shares of common stock would be issued. On a pro forma basis, based on the number of shares of common stock outstanding at September 30, 2016, this would dilute the ownership percentage of non-affiliated stockholders from 71.3% to 8.5%. To the extent that additional shares of Series B are issued under the anti-dilution plan, the non-affiliated stockholders’ percentage ownership of the Company would be further diluted.

Unearned Revenue

Unearned Revenue	9 Months Ended
	Sep. 30, 2016
Unearned Revenue [Abstract]
UNEARNED REVENUE	16. UNEARNED REVENUE Unearned revenue at September 30, 2016, consisted of the following: ● A deposit received with an order for two CSRV® Gen Sets from Coates Power, Ltd., a China-based unaffiliated manufacturing company in the amount of $132,000. ● A $19,000 non-refundable deposit from Almont in connection with its order for a natural gas fueled electric power CSRV® engine generator.

Sublicensing Fee Revenue

Sublicensing Fee Revenue	9 Months Ended
	Sep. 30, 2016
Sublicensing Fee Revenue [Abstract]
SUBLICENSING FEE REVENUE	17. SUBLICENSING FEE REVENUE Sublicensing fee revenue for the three months ended September 30, 2016 and 2015 amounted to $5,000 and $5,000, respectively. Sublicensing fee revenue for the nine months ended September 30, 2016 and 2015 amounted to $14,000 and $14,000, respectively. The Company is recognizing the license deposit of $300,000 on the Canadian License as revenue on a straight-line basis over the approximate remaining life until 2027 of the last CSRV ®

Loss Per Share

Loss Per Share	9 Months Ended
	Sep. 30, 2016
Loss Per Share [Abstract]
LOSS PER SHARE	18. LOSS PER SHARE At September 30, 2016, there were stock warrants outstanding to purchase 90,344,911 shares of common stock at exercise prices ranging from $0.0005 to $0.12 per share, vested stock options outstanding to acquire 12,470,000 shares of common stock at exercise prices ranging from $0.028 to $0.44 per share and $50,000 of convertible promissory notes eligible for conversion, which on a pro forma basis, assuming they would have been converted on September 30, 2016, would have been convertible into 100,531,899 shares of common stock. At September 30, 2015, there were stock warrants outstanding to purchase 35,344,911 shares of common stock at exercise prices ranging from $0.02 to $0.35 per share and vested stock options outstanding to acquire 12,500,000 shares of common stock at exercise prices ranging from $0.028 to $1.00 per share and $79,000 of convertible promissory notes eligible for conversion. For the nine months ended September 30, 2016 and 2015, none of the potentially issuable shares of common stock were assumed to be converted because the Company incurred a net loss in those periods and the effect of including them in the calculation of earnings per share would have been anti-dilutive.

Stock Options

Stock Options	9 Months Ended
	Sep. 30, 2016
Capital Stock/Stock Options [Abstract]
STOCK OPTIONS	19. STOCK OPTIONS The Company’s 2006 Stock Option and Incentive Plan (the “Stock Plan”) was adopted by the Company’s board in October 2006. In September 2007, the Stock Plan, by consent of George J. Coates, majority shareholder, was adopted by our shareholders. The Stock Plan provides for the grant of stock-based awards to employees, officers and directors of, and consultants or advisors to, the Company and its subsidiaries, if any. Under the Stock Plan, the Company may grant options that are intended to qualify as incentive stock options within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended (“ISO’s”), options not intended to qualify as incentive stock options (“non-statutory options”), restricted stock and other stock-based awards. ISO’s may be granted only to employees of the Company. All of the shares of common stock authorized under the Stock Plan have been granted and no further grants may be awarded thereunder. The Company established a 2014 Stock Option and Incentive Plan (the “2014 Stock Plan”) which was adopted by the Company’s board on May 30, 2014. On March 2, 2015, the 2014 Stock Plan, by consent of George J. Coates, majority shareholder, was adopted by our shareholders. The 2014 Stock Plan provides for the grant of stock-based awards to employees, officers and directors of, and consultants or advisors to, the Company and its subsidiaries, if any. Under the 2014 Stock Plan, the Company may grant ISO’s, non-statutory options, restricted stock and other stock-based awards. ISO’s may be granted only to employees of the Company. A total of 50,000,000 shares of common stock may be issued upon the exercise of options or other awards granted under the 2014 Stock Plan. The maximum number of shares with respect to which awards may be granted during any one year to any employee under the 2014 Stock Plan shall not exceed 25% of the 50,000,000 shares of common stock covered by the 2014 Stock Plan. At September 30, 2016, none of the shares of common stock authorized under the 2014 Stock Plan had been granted as stock options or awards. The Stock Plan and the 2014 Stock Plan (the “Stock Plans”) are administered by the board and the Compensation Committee. Subject to the provisions of the Stock Plans, the board and the Compensation Committee each has the authority to select the persons to whom awards are granted and determine the terms of each award, including the number of shares of common stock subject to the award. Payment of the exercise price of an award may be made in cash, in a “cashless exercise” through a broker, or if the applicable stock option agreement permits, shares of common stock, or by any other method approved by the board or Compensation Committee. Unless otherwise permitted by the Company, awards are not assignable or transferable except by will or the laws of descent and distribution. Upon the consummation of an acquisition of the business of the Company, by merger or otherwise, the board shall, as to outstanding awards (on the same basis or on different bases as the board shall specify), make appropriate provision for the continuation of such awards by the Company or the assumption of such awards by the surviving or acquiring entity and by substituting on an equitable basis for the shares then subject to such awards either (a) the consideration payable with respect to the outstanding shares of common stock in connection with the acquisition, (b) shares of stock of the surviving or acquiring corporation, or (c) such other securities or other consideration as the board deems appropriate, the fair market value of which (as determined by the board in its sole discretion) shall not materially differ from the fair market value of the shares of common stock subject to such awards immediately preceding the acquisition. In addition to, or in lieu of the foregoing, with respect to outstanding stock options, the board may, on the same basis or on different bases as the board shall specify, upon written notice to the affected optionees, provide that one or more options then outstanding must be exercised, in whole or in part, within a specified number of days of the date of such notice, at the end of which period such options shall terminate, or provide that one or more options then outstanding, in whole or in part, shall be terminated in exchange for a cash payment equal to the excess of the fair market value (as determined by the board in its sole discretion) for the shares subject to such stock options over the exercise price thereof. Unless otherwise determined by the board (on the same basis or on different bases as the board shall specify), any repurchase rights or other rights of the Company that relate to a stock option or other award shall continue to apply to consideration, including cash, that has been substituted, assumed or amended for a stock option or other award pursuant to these provisions. The Company may hold in escrow all or any portion of any such consideration in order to effectuate any continuing restrictions. The board may at any time provide that any stock options shall become immediately exercisable in full or in part, that any restricted stock awards shall be free of some or all restrictions, or that any other stock-based awards may become exercisable in full or in part or free of some or all restrictions or conditions, or otherwise realizable in full or in part, as the case may be. The board or Compensation Committee may, in its sole discretion, amend, modify or terminate any award granted or made under the Stock Plan, so long as such amendment, modification or termination would not materially and adversely affect the participant. During the nine months ended September 30, 2016 no stock options were granted. During the nine months ended September 30, 2015, no stock options were granted and 703,000 stock options with an exercise price of $0.028 per share became vested. There were no unvested stock options outstanding at September 30, 2016. During the three months ended September 30, 2016 and 2015, the Company did not incur any stock-based compensation expense related to employee stock options. During the nine months ended September 30, 2016 and 2015, the Company recorded non-cash stock-based compensation expense related to employee stock options amounting to $-0- and $7,000, respectively. At September 30, 2016, all stock-based compensation expense related to outstanding stock options had been fully recognized. Details of the stock options outstanding under the Company’s Stock Option Plans are as follows: Exercise Price Per Share Number Outstanding Weighted Average Remaining Contractual Life Number Exercisable Weighted Average Exercise Price Weighted Average Fair Value Per Stock Option at Date of Grant Balance, 9/30/16 $ 0.028 – $0.44 12,470,000 10 12,470,000 $ 0.182 $ 0.169 No stock options were exercised, forfeited or expired during the nine months ended September 30, 2016 and 2015. The weighted average fair value of the Company's stock options was estimated using the Black-Scholes option pricing model which requires highly subjective assumptions including the expected stock price volatility. These assumptions were as follows: ● Historical stock price volatility 139% - 325% ● Risk-free interest rate 0.21% - 4.64% ● Expected life (in years) 4 ● Dividend yield 0.00 The valuation assumptions were determined as follows: ● Historical stock price volatility: The Company utilized the volatility in the trading of its common stock computed for the 12 months of trading immediately preceding the date of grant. ● Risk-free interest rate: The Company bases the risk-free interest rate on the interest rate payable on U.S. Treasury securities in effect at the time of the grant for a period that is commensurate with the assumed expected option life. ● Expected life: The expected life of the options represents the period of time options are expected to be outstanding. The Company has very limited historical data on which to base this estimate. Accordingly, the Company estimated the expected life based on its assumption that the executives will be subject to frequent blackout periods during the time that the stock options will be exercisable and based on the Company’s expectation that it will complete its research and development phase and commence its initial production phase. The vesting period of these options was also considered in the determination of the expected life of each stock option grant. ● No expected dividends.

Equity Purchase and Registratio

Equity Purchase and Registration Rights Agreements	9 Months Ended
	Sep. 30, 2016
Equity Purchase and Registration Rights Agreements [Abstract]
EQUITY PURCHASE AND REGISTRATION RIGHTS AGREEMENTS	20. EQUITY PURCHASE AND REGISTRATION RIGHTS AGREEMENTS Southridge Partners II LP In July 2014, the Company entered into a 3-year equity purchase agreement (the “2014 EP Agreement”) with Southridge Partners II LP, a Delaware limited partnership (“Southridge”). Pursuant to the terms of the 2014 EP Agreement, Southridge committed to purchase up to 40,000,000 shares of the Company’s common stock, in exchange for consideration not to exceed Ten Million ($10,000,000) Dollars. In June 2015, the 2014 Agreement automatically terminated because Southridge had purchased all 40,000,000 shares of common stock permitted under thereunder. Accordingly, on July 29, 2015, the Company entered into a new 3-year equity purchase agreement (the “2015 EP Agreement”) with Southridge. Pursuant to the terms of the 2015 EP Agreement, Southridge committed to purchase up to 205,000,000 shares of the Company’s common stock in exchange for consideration not to exceed Twenty Million ($20,000,000) Dollars on the same terms and conditions as the 2014 EP Agreement. The terms of the 2014 and 2015 EP Agreements provided that the purchase price for the shares of common stock shall be equal to 94% of the lowest closing price of the common stock during the ten trading days that comprise the defined pricing period. The Company is entitled to exercise a Put to Southridge by delivering a Put Notice, which requires Southridge to remit the dollar amount stated in the Put Notice at the end of the pricing period, provided, however, that for each day during the pricing period, if any, that the daily closing price of the Company’s common stock is (i) 25% or more below the Floor Price, as defined, or (ii) below the Floor Price, if any, stipulated in the Put Notice issued by the Company, then the dollar amount of the Put shall be reduced by 10% for each such day. The Company may stipulate a Floor Price below which, no shares of common stock may be sold by Southridge, however, the Floor price shall not be lower than the lowest daily volume weighted average price of the common stock during the ten trading days preceding the date of the Put Notice. The Company also entered into a registration rights agreement (the “Registration Rights Agreement”) with Southridge. Pursuant to the terms of the Registration Rights Agreement, on July 30, 2015, the Company filed a registration statement with the SEC covering 205,000,000 shares of common stock underlying the 2015 EP Agreement, which was declared effective August 5, 2015. During the nine months ended September 30, 2016, the Company sold 87,892,603 registered shares of common stock to Southridge and received proceeds of $150,000 under the 2015 EP Agreement. During the nine months ended September 30, 2015, the Company (i) sold all of the 40,000,000 registered shares of common stock to Southridge and received proceeds of $207,000, thereby resulting in the termination of this 2014 EP Agreement, and (ii) sold 5,910,165 registered shares of common stock to Southridge and received proceeds of $51,000 under the 2015 EP Agreement.

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Taxes [Abstract]
INCOME TAXES	21. INCOME TAXES Deferred income taxes are determined using the liability method for the temporary differences between the financial reporting basis and income tax basis of the Company’s assets and liabilities. Deferred income taxes are measured based on the tax rates expected to be in effect when the temporary differences are included in the Company’s tax return. Deferred tax assets and liabilities are recognized based on anticipated future tax consequences attributable to differences between financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets increased by $1,750,000 and $589,000 for the three months ended September 30, 2016 and 2015, respectively. Deferred tax assets increased by $3,145,000 and $3,473,000 for the nine months ended September 30, 2016 and 2015, respectively. These amounts were fully offset by a corresponding increase in the tax valuation allowance resulting in no net change in deferred tax assets, respectively, during these periods. No liability for unrecognized tax benefits was required to be reported at September 30, 2016 and December 31, 2015. Based on the Company's evaluation, it has concluded that there are no significant uncertain tax positions requiring recognition in the Company's financial statements. The Company's evaluation was performed for tax years ended 2013 through 2015, the only periods subject to examination. The Company believes that its income tax positions and deductions will be sustained on audit and does not anticipate that adjustments, if any, will result in a material change to its financial position. For the nine months ended September 30, 2016 and 2015, there were no penalties or interest related to the Company’s income tax returns. At September 30, 2016, the Company had available, $20,069,000 of net operating loss carryforwards which may be used to reduce future federal taxable income, expiring between 2018 and 2036 and $9,767,000 of net operating loss carryforwards which may be used to reduce future state taxable income, expiring between 2029 and 2036.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
RELATED PARTY TRANSACTIONS	22. RELATED PARTY TRANSACTIONS Issuances and Repayments of Promissory Notes to Related Parties Issuances and repayments of promissory notes to related parties during the nine months ended September 30, 2016 and 2015, are discussed in detail in Note 13. Issuances of Preferred Stock Shares of Series B Convertible Preferred Stock awarded to George J. Coates, Gregory G. Coates and Barry C. Kaye during the nine months ended September 30, 2016 and 2015 are discussed in detail in Note 15. Personal Guaranty and Stock Pledge In connection with the Company’s mortgage loan, George J. Coates has pledged certain of his shares of common stock of the Company to the extent required by the lender and provided a personal guaranty as additional collateral for a mortgage loan on the Company’s headquarters facility. Compensation and Benefits Paid The approximate amount of compensation and benefits, all of which were approved by the board, paid to George J. Coates, Gregory G. Coates and Bernadette Coates, exclusive of stock-based compensation for unregistered, restricted shares of Preferred Stock awarded to George J. Coates and Gregory G. Coates and non-cash, stock-based compensation for employee stock options granted to Gregory G. Coates is summarized as follows: For the nine months ended September 30, 2016 2015 George J. Coates (a) (b) $ 17,000 $ 13,000 Gregory G. Coates (c) 131,000 137,000 Bernadette Coates (d) 3,000 4,000 (a) For the nine months ended September 30, 2016 and 2015, George J. Coates earned additional base compensation of $183,000 and $188,000, respectively, payment of which is being deferred until the Company has sufficient working capital. These amounts are included in deferred compensation in the accompanying balance sheets at September 30, 2016 and 2015. (b) During the nine months ended September 30, 2016 and 2015, George J. Coates was awarded 11,766,624 and 2,463,772 shares of Series B Convertible Preferred Stock, respectively, with an estimated fair value of $6,749,000 and $6,875,000, respectively, for anti-dilution. (c) During the nine months ended September 30, 2016 and 2015, Gregory G. Coates was awarded 772,645 and 167,726 shares of Series B Convertible Preferred Stock, respectively, with an estimated fair value of $447,000 and $468,000, respectively, for anti-dilution. (d) For the nine months ended September 30, 2016 and 2015, Bernadette Coates earned additional base compensation of $50,000 and $50,000, respectively, payment of which is being deferred until the Company has sufficient working capital. These amounts are included in deferred compensation in the accompanying balance sheets at September 30, 2016 and 2015. During the nine months ended September 30, 2016 and 2015, Barry C. Kaye, Treasurer and Chief Financial Officer was paid compensation of $1,000 and $73,000, respectively. For the three months ended September 30, 2016 and 2015, Mr. Kaye earned compensation of $25,000 and $26,000, respectively, which was not paid and is being deferred until the Company has sufficient working capital to remit payment to him. For the nine months ended September 30, 2016 and 2015, Mr. Kaye earned compensation of $74,000 and $87,000, respectively, which was not paid and is being deferred until the Company has sufficient working capital to remit payment to him. During the nine months ended September 30, 2016, the Company agreed to pay Mr. Kaye interest on the balance of his deferred compensation retroactive to when it began being deferred in May 2012 and, accordingly, recorded interest expense of $90,000. This amount is reflected in interest expense in the accompanying statements of operations for the three and nine months ended September 30, 2016. Interest continues to be accrued on the unpaid balance thereafter. At September 30, 2016, the total amount of Mr. Kaye’s unpaid, deferred compensation, including accrued interest thereon, was $270,000. This amount is included in accounts payable and accrued liabilities in the accompanying balance sheet at September 30, 2016. During the nine months ended September 30, 2016 and 2015, Barry C. Kaye was awarded 60,487 and 13,131 shares of Series B Convertible Preferred Stock, respectively, with an estimated fair value of $35,000 and $37,000, respectively, for anti-dilution.

Contractual Obligations and Com

Contractual Obligations and Commitments	9 Months Ended
	Sep. 30, 2016
Contractual Obligations and Commitments / Litigation and Contingencies [Abstract]
CONTRACTUAL OBLIGATIONS AND COMMITMENTS	23. CONTRACTUAL OBLIGATIONS AND COMMITMENTS The following table summarizes the Company’s contractual obligations and commitments at September 30, 2016: Total 2016 2017 2018 Promissory notes to related parties $ 1,447,000 $ 1,447,000 $ - $ - Mortgage loan payable 1,343,000 60,000 60,000 1,223,000 Deferred compensation 1,155,000 1,155,000 - - Convertible promissory notes 124,000 50,000 74,000 - Total $ 4,069,000 $ 2,712,000 $ 134,000 $ 1,223,000

Litigation and Contingencies

Litigation and Contingencies	9 Months Ended
	Sep. 30, 2016
Contractual Obligations and Commitments / Litigation and Contingencies [Abstract]
LITIGATION AND CONTINGENCIES	24. LITIGATION AND CONTINGENCIES The Company is not a party to any litigation that is material to its business.

Recently Issued Accounting Stan

Recently Issued Accounting Standards	9 Months Ended
	Sep. 30, 2016
Recently Issued Accounting Standards [Abstract]
RECENTLY ISSUED ACCOUNTING STANDARDS	25. RECENTLY ISSUED ACCOUNTING STANDARDS Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amends the existing accounting standards for revenue recognition. ASU 2014-09 is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled to when products are transferred to customers. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606) – Deferral of the Effective Date, which defers the effective date of ASU 2014-09 for one year and permits early adoption. Accordingly, the Company may adopt the standard in either its first quarter of 2018 or 2019. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606) – Identifying Performance Obligations and Licensing (“ASU 2016-10”), which amends the guidance in ASU 2014-09 related to identifying performance obligations and accounting for licenses of intellectual property. The Company will adopt ASU 2016-10 with ASU 2014-09. The Company is currently evaluating the impact of adopting the new revenue recognition standard, as amended, but does not expect it to have a material impact on its financial statements. Stock Compensation In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718), which simplified certain aspects of the accounting for share-based payment transactions, including income taxes, classification of awards and classification in the statement of cash flows. ASU 2016-09 will be effective for the Company beginning in its first quarter of 2018. The Company is currently evaluating the impact of adopting the new stock compensation standard, but does not expect it to have a material impact on its financial statements. Financial Instruments In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments – Overall (Subtopic 825-10) (“ASU 2016-01”), which updates certain aspects of recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 will be effective for the Company beginning in its first quarter of 2019. The Company does not believe the adoption of the new financial instruments standard will have a material impact on its financial statements. Inventory Measurement In July 2015, the FASB issued ASU No. 2015-11, “Inventory – Simplifying the Measurement of Inventory (Topic 330)”. This update requires that inventory value be measured at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. Currently, generally accepted accounting principles require that inventory be valued at the lower of cost or market price to replace the inventory. This update is to become effective for annual and interim financial statements for fiscal years ending after December 15, 2016. Earlier application is permitted. This update is required to be applied prospectively. The Company is currently evaluating the impact of this update; however, at this time it does not expect it will have a material impact on its financial statements.

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	26. SUBSEQUENT EVENTS Conversion of Convertible Promissory Notes In October 2016, $30,000 principal amount of convertible promissory notes, including accrued interest, was converted into 71,428,571 unregistered, restricted shares of the Company’s common stock. Issuance of Anti-dilution shares In October 2016, the Company issued 756,165, 48,290 and 3,781 shares of Series B Convertible Preferred Stock to George J. Coates, Gregory G. Coates and Barry C. Kaye, respectively, representing anti-dilution shares related to newly issued shares of common stock. The estimated fair value of these shares was $295,000, $19,000 and $1,000, respectively. Issuances of Promissory Notes to Related Parties In October and November 2016, the Company issued promissory notes to George J. Coates and received cash proceeds of $3,000 and repaid promissory notes to George J. Coates amounting to $1,000. The promissory notes are payable on demand and provide for interest at the rate of 17% per annum, compounded monthly. Deferred Compensation As of November 10, 2016, George J. Coates, Barry C. Kaye and Bernadette Coates agreed to additional deferral of their compensation amounting to $29,000, $14,000 and $8,000, respectively, bringing their total aggregate deferred compensation to $942,000, $194,000 and $250,000, respectively. Sale of Common Stock and Warrants In October 2016, the Company made a private sale, pursuant to a stock purchase agreement, of 20,000,000 unregistered shares of its common stock and 20,000,000 common stock warrants to purchase one unregistered share of its common stock at an exercise price of $0.0005 per share, in consideration for $10,000.

The Company and Basis of Pres32

The Company and Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2016
The Company and Basis of Presentation [Abstract]
Nature of Organization	Nature of Organization Coates International, Ltd. (the “Company” or “CIL”) has acquired the exclusive licensing rights to the patented Coates spherical rotary valve (“CSRV ® ® ® ® ® Management believes that the CSRV ® ● Improved fuel efficiency ● Lower levels of harmful emissions ● Adaptability to numerous types of engine fuels ● Longer engine life ● Longer intervals between engine servicing The CSRV ® ® ® ® ® ® ®
Basis of Presentation	Basis of Presentation The accompanying condensed financial statements include the accounts of the Company. In the opinion of the Company’s management, the condensed consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these condensed consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. Certain prior period amounts in the condensed financial statements have been reclassified to conform to the current period’s presentation. These condensed financial statements and accompanying notes should be read in conjunction with the Company’s annual financial statements and the notes thereto included in its Annual Report on Form 10-K for the year ended December 31, 2015 and the Company’s quarterly financial statements and the notes thereto included in its Quarterly Reports on Form 10-Q for the six months ended June 30, 2016 and for the three months ended March 31, 2016. Since the Company’s inception, the Company has been responsible for the development costs of the CSRV ® ® ® As shown in the accompanying financial statements, the Company has incurred recurring losses from operations and, as of September 30, 2016, had a stockholders’ deficiency of ($4,694,000). In addition, the current economic environment, which is characterized by tight credit markets, investor uncertainty about how to safely invest their funds and low investor confidence, has introduced additional risk and difficulty to the Company’s challenge to secure needed additional working capital. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management has instituted a cost control program intended to restrict variable costs to only those expenses that are necessary to complete its activities related to entering the production phase of operations, develop additional commercially feasible applications of the CSRV ® The Company continues to actively seek out new sources of working capital; however, there can be no assurance that it will be successful in these efforts. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Use of Estimates	Use of Estimates The preparation of the Company’s financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These significant estimates include determining the fair value of convertible promissory notes containing embedded derivatives and variable conversion rates, determining a value for shares of Series A Preferred Stock and Series B Convertible Preferred Stock issued, assigning useful lives to the Company’s property, plant and equipment, determining an appropriate amount to reserve for obsolete and slow moving inventory, estimating a valuation allowance for deferred tax assets, assigning expected lives to, and estimating the rate of forfeitures of, stock options granted and selecting a trading price volatility factor for the Company’s common stock in order to estimate the fair value of the Company’s stock options on the date of grant or other appropriate measurement date. Actual results could differ from those estimates.

Inventory (Tables)

Inventory (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory [Abstract]
Summary of inventory	September 30, 2016 December 31, 2015 Raw materials $ 559,000 $ 554,000 Work-in-process 75,000 51,000 Less: Reserve for obsolescence (387,000 ) (387,000 ) Total $ 247,000 $ 218,000

Property, Plant and Equipment (

Property, Plant and Equipment (Tables)	9 Months Ended
	Sep. 30, 2016
Property, Plant and Equipment [Abstract]
Summary of property, plant and equipment	September 30, 2016 December 31, 2015 Land $ 1,235,000 $ 1,235,000 Building 964,000 964,000 Building improvements 83,000 83,000 Machinery and equipment 689,000 689,000 Furniture and fixtures 57,000 46,000 3,028,000 3.017,000 Less: Accumulated depreciation (940,000 ) (908,000 ) Total $ 2,088,000 $ 2,109,000

Accounts Payable and Accrued 35

Accounts Payable and Accrued Liabilities (Tables)	9 Months Ended
	Sep. 30, 2016
Accounts Payable and Accrued Liabilities [Abstract]
Summary of accounts payable and accrued liabilities	September 30, 2016 December 31, 2015 Legal and professional fees $ 1,446,000 $ 1,368,000 General and administrative expenses 350,000 163,000 Accrued interest expense 166,000 376,000 Research and development costs 115,000 115,000 Total $ 2,077,000 $ 2,022,000

Convertible Promissory Notes 36

Convertible Promissory Notes and Embedded Derivative Liability (Tables)	9 Months Ended
	Sep. 30, 2016
Convertible Promissory Notes and Embedded Derivative Liability [Abstract]
Schedule fair value hierarchy of financial assets and liabilities measured at fair value	September 30, 2016 December 31, 2015 Level 1 Inputs $ - $ - Level 2 Inputs 158,000 633,000 Level 3 Inputs - - Total $ 158,000 $ 633,000

Capital Stock (Tables)

Capital Stock (Tables)	9 Months Ended
	Sep. 30, 2016
Capital Stock/Stock Options [Abstract]
Schedule of conversion to shares of common stock	Total 2016 2017 2018 George J. Coates 15,016,987 541,933 2,708,430 11,766,624 Gregory G. Coates 997,620 40,593 184,382 772,645 Barry C. Kaye 77,898 2,976 14,435 60,487 Total 16,092,505 585,502 2,907,247 12,599,756

Stock Options (Tables)

Stock Options (Tables)	9 Months Ended
	Sep. 30, 2016
Capital Stock/Stock Options [Abstract]
Summary of stock options outstanding under the company's stock option plans	Exercise Price Per Share Number Outstanding Weighted Average Remaining Contractual Life Number Exercisable Weighted Average Exercise Price Weighted Average Fair Value Per Stock Option at Date of Grant Balance, 9/30/16 $ 0.028 – $0.44 12,470,000 10 12,470,000 $ 0.182 $ 0.169
Summary of assumptions used to determine weighted average fair value	● Historical stock price volatility 139% - 325% ● Risk-free interest rate 0.21% - 4.64% ● Expected life (in years) 4 ● Dividend yield 0.00

Related Party Transactions (Tab

Related Party Transactions (Tables)	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Summary of approximate amount of base compensation and benefits	For the nine months ended September 30, 2016 2015 George J. Coates (a) (b) $ 17,000 $ 13,000 Gregory G. Coates (c) 131,000 137,000 Bernadette Coates (d) 3,000 4,000 (a) For the nine months ended September 30, 2016 and 2015, George J. Coates earned additional base compensation of $183,000 and $188,000, respectively, payment of which is being deferred until the Company has sufficient working capital. These amounts are included in deferred compensation in the accompanying balance sheets at September 30, 2016 and 2015. (b) During the nine months ended September 30, 2016 and 2015, George J. Coates was awarded 11,766,624 and 2,463,772 shares of Series B Convertible Preferred Stock, respectively, with an estimated fair value of $6,749,000 and $6,875,000, respectively, for anti-dilution. (c) During the nine months ended September 30, 2016 and 2015, Gregory G. Coates was awarded 772,645 and 167,726 shares of Series B Convertible Preferred Stock, respectively, with an estimated fair value of $447,000 and $468,000, respectively, for anti-dilution. (d) For the nine months ended September 30, 2016 and 2015, Bernadette Coates earned additional base compensation of $50,000 and $50,000, respectively, payment of which is being deferred until the Company has sufficient working capital. These amounts are included in deferred compensation in the accompanying balance sheets at September 30, 2016 and 2015.

Contractual Obligations and C40

Contractual Obligations and Commitments (Tables)	9 Months Ended
	Sep. 30, 2016
Contractual Obligations and Commitments / Litigation and Contingencies [Abstract]
Summary of contractual obligations and commitments	Total 2016 2017 2018 Promissory notes to related parties $ 1,447,000 $ 1,447,000 $ - $ - Mortgage loan payable 1,343,000 60,000 60,000 1,223,000 Deferred compensation 1,155,000 1,155,000 - - Convertible promissory notes 124,000 50,000 74,000 - Total $ 4,069,000 $ 2,712,000 $ 134,000 $ 1,223,000

The Company and Basis of Pres41

The Company and Basis of Presentation (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
The Company and Basis of Presentation (Textual)
Stockholder's deficiency	$ (4,693,771)	$ (5,299,053)
Negative working capital	$ (4,905,000)	$ (5,476,000)

Licensing Agreement and Defer42

Licensing Agreement and Deferred Licensing Costs (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Licensing Agreement and Deferred Licensing Costs (Textual)
Deferred licensing costs	$ 39,000		$ 39,000		$ 42,000
Amortization expense	$ 1,000	$ 1,000	$ 3,000	$ 3,000

Agreements Assigned to Almont43

Agreements Assigned to Almont Energy, Inc. (Details)	9 Months Ended
	Sep. 30, 2016USD ($)
Canadian License [Member]
Agreements Assigned to Almont Energy, Inc. (Textual)
License fee amount	$ 5,000,000
Additional fee under R&D Agreement	5,000,000
US License [Member]
Agreements Assigned to Almont Energy, Inc. (Textual)
License fee amount	50,000,000
Down payment receivable under Escrow Agreement	1,000,000
Remaining balance of release payment	$ 5,847,000

Non-Exclusive Distribution Su44

Non-Exclusive Distribution Sublicense with Renown Power Development, Ltd. (Details)	1 Months Ended
	Feb. 28, 2015USD ($)
Renown Power Development, Ltd. [Member]
Non-Exclusive Distribution Sublicense with Renown Power Development, Ltd. (Textual)
Licensing fee	$ 100,000,000
Non-refundable deposit	$ 498,000
Sublicense fee payment terms	In addition, after Renown receives aggregate cash flow of US$10,000,000, it is required to pay the Company 25% of all funds it receives from any and all sources until the entire balance of US$100 million licensing fee is paid in full.
Amount of monies required to be received before sublicense fee payments commence	$ 10,000,000
Aggregate amount of capital raises to trigger full payment of balance of licensing fee	$ 300,000,000
Coates Power [Member]
Non-Exclusive Distribution Sublicense with Renown Power Development, Ltd. (Textual)
Ownership interest	25.00%
Escrow account description	These shares of stock will be released from escrow and revert back to Coates Power and Renown only after the US$100 million sublicensing fee is paid in full.
Deposit on order for two completed Gen Sets	$ 131,000

Inventory (Details)

Inventory (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Summary of inventory
Raw materials	$ 559,000	$ 554,000
Work-in-process	75,000	51,000
Less: Reserve for obsolescence	(387,000)	(387,000)
Total	$ 247,000	$ 218,000

License Deposits (Details)

License Deposits (Details) - License Deposits [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
License Deposits (Textual)
Term of sublicense deposit			Straight-line basis over the remaining period until expiration of the last remaining CSRV® patent in force in 2027.
Sublicensing fee revenue	$ 5,000	$ 5,000	$ 14,000	$ 14,000
License deposit from Renown			498,000
License deposit from Almont	$ 300,000		300,000
Aggregate of all revenue recognized related to license deposit from Almont since received			$ 106,000

Property, Plant and Equipment47

Property, Plant and Equipment (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Summary of Property, plant and equipment
Property, plant and equipment, Gross	$ 3,028,000	$ 3,017,000
Less: Accumulated depreciation	(940,000)	(908,000)
Total	2,088,000	2,109,000
Land [Member]
Summary of Property, plant and equipment
Property, plant and equipment, Gross	1,235,000	1,235,000
Building [Member]
Summary of Property, plant and equipment
Property, plant and equipment, Gross	964,000	964,000
Building improvements [Member]
Summary of Property, plant and equipment
Property, plant and equipment, Gross	83,000	83,000
Machinery and equipment [Member]
Summary of Property, plant and equipment
Property, plant and equipment, Gross	689,000	689,000
Furniture and fixtures [Member]
Summary of Property, plant and equipment
Property, plant and equipment, Gross	$ 57,000	$ 46,000

Property, Plant and Equipment48

Property, Plant and Equipment (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment (Textual)
Depreciation expense	$ 11,000	$ 12,000	$ 33,000	$ 37,000

Mortgage Loan Payable (Details)

Mortgage Loan Payable (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Mortgage Loan Payable (Textual)
Maturity date			Jul. 1, 2018
Mortgage loan payable, interest rate	7.50%		7.50%
Interest expense	$ 26,000	$ 28,000	$ 78,000	$ 73,000
Mortgage loan payment terms			Monthly payments of interest, plus $5,000 which is being applied to the principal balance.
Periodic payment of principal			$ 5,000
Principal balance of mortgage loan due	$ 1,343,000		$ 1,343,000		$ 1,388,000
Number of shares pledged as collateral			Five million

Finance Lease Obligation (Detai

Finance Lease Obligation (Details) - Finance Lease Obligation [Member] - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Aug. 31, 2013	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Finance Lease Obligation (Textual)
Cash proceeds for research and development and manufacturing equipment	$ 133,000
Effective Interest rate on lease	36.60%
Financial lease, interest expense		$ 0	$ 7,000	$ 2,000	$ 26,000

Accounts Payable and Accrued 51

Accounts Payable and Accrued Liabilities (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Summary of accounts payable and accrued liabilities
Legal and professional fees	$ 1,446,000	$ 1,368,000
General and administrative expenses	350,000	163,000
Accrued interest expense	166,000	376,000
Research and development costs	115,000	115,000
Total	$ 2,077,000	$ 2,022,000

Promissory Notes to Related P52

Promissory Notes to Related Parties (Details) - USD ($)	1 Months Ended			3 Months Ended		9 Months Ended
	Aug. 31, 2016	Jul. 31, 2016	May 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Promissory Notes to Related Parties (Textual)
Promissory notes unpaid accrued interest				$ 75,000		$ 75,000
George J. Coates [Member]
Promissory Notes to Related Parties (Textual)
Cash proceeds from related party promissory notes						162,000	$ 60,000
Repaid promissory notes principal amount						$ 15,000	120,000
Promissory note interest rate				17.00%		17.00%
Outstanding balance, including accrued interest				$ 1,000		$ 1,000
Accrued interest expense paid							43,000
Conversion of convertible promissory notes	$ 252,000	$ 120,000	$ 100,000			$ 472,000
Debt conversion, converted to restricted shares	279,549,056	200,000,000	90,909,091			570,458,147
Conversion price per share of debt converted	$ 0.0009	$ 0.0006	$ 0.0011
Gregory G. Coates [Member]
Promissory Notes to Related Parties (Textual)
Repaid promissory notes principal amount							15,000
Promissory notes interest expense				36,000	$ 36,000	$ 108,000	108,000
Imputed interest rate on promissory note						10.00%
Outstanding principal balance				$ 1,438,000		$ 1,438,000
Bernadette Coates [Member]
Promissory Notes to Related Parties (Textual)
Repaid promissory notes principal amount						$ 0	31,000
Promissory note interest rate				17.00%		17.00%
Outstanding balance, including accrued interest				$ 80,000		$ 80,000
Promissory notes interest expense				$ 3,000	$ 3,000	$ 10,000	$ 11,000

Convertible Promissory Notes 53

Convertible Promissory Notes and Embedded Derivative Liability (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Financial assets and liabilities measured at fair value
Total	$ 158,000	$ 633,000
Level 1 Inputs [Member]
Financial assets and liabilities measured at fair value
Total
Level 2 Inputs [Member]
Financial assets and liabilities measured at fair value
Total	158,000	633,000
Level 3 Inputs [Member]
Financial assets and liabilities measured at fair value
Total

Convertible Promissory Notes 54

Convertible Promissory Notes and Embedded Derivative Liability (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Convertible Promissory Notes and Embedded Derivative Liability (Textual)
Volatility rate	200.00%
Convertible promissory notes [Member]
Convertible Promissory Notes and Embedded Derivative Liability (Textual)
Principal amount	$ 124,000
Principal amount of convertible notes issued	$ 165,000	$ 676,000
Conversion price, description for convertible note payable	Outstanding notes may be converted into unregistered shares of the Company’s common stock at a discount ranging from 30% to 38% of the defined trading price of the common stock on the date of conversion.
Unamortized discount	$ 62,000		$ 150,000
Principal amount of debt, including accrued interest converted into shares of common stock	665,000	790,000
Loss on conversion of convertible notes	$ 125,000	256,000
Amount of convertible promissory notes repaid in cash		$ 55,000
Common shares issued upon conversion of convertible notes	1,209,182,017	459,875,350
Prepayment option, description	The convertible notes generally become convertible, in whole, or in part, beginning on the six month anniversary of the issuance date and may be prepaid at the option of the Company, generally with a prepayment penalty equal to 50% of the principal amount of the convertible note at any time prior to becoming eligible for conversion.
Common stock reserved for conversion of convertible notes	904,147,000
Convertible promissory notes [Member] | Maximum [Member]
Convertible Promissory Notes and Embedded Derivative Liability (Textual)
Effective interest rate	183.00%
Conversion price discount from defined trading price	38.00%
Convertible promissory notes [Member] | Minimum [Member]
Convertible Promissory Notes and Embedded Derivative Liability (Textual)
Effective interest rate	147.00%
Conversion price discount from defined trading price	30.00%
Convertible promissory note one [Member]
Convertible Promissory Notes and Embedded Derivative Liability (Textual)
Principal amount payable in monthly installments	$ 50,000
Conversion price, description for convertible note payable in monthly installments	This convertible note also requires that the conversion price be re-measured 23 trading days after the conversion shares are originally delivered. If the re-measured conversion price is lower, then the Company is required to issue additional conversion shares to the noteholder.
Maximum monthly amount that can be converted for convertible note payable in monthly installments	$ 50,000

Capital Stock (Details)

Capital Stock (Details) - Series B [Member]	9 Months Ended
	Sep. 30, 2016shares
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	16,092,505
2016 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	585,502
2017 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	2,907,247
2018 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	12,599,756
George J. Coates [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	15,016,987
George J. Coates [Member] | 2016 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	541,933
George J. Coates [Member] | 2017 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	2,708,430
George J. Coates [Member] | 2018 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	11,766,624
Gregory G. Coates [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	997,620
Gregory G. Coates [Member] | 2016 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	40,593
Gregory G. Coates [Member] | 2017 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	184,382
Gregory G. Coates [Member] | 2018 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	772,645
Barry C. Kaye [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	77,898
Barry C. Kaye [Member] | 2016 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	2,976
Barry C. Kaye [Member] | 2017 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	14,435
Barry C. Kaye [Member] | 2018 [Member]
Number of shares of stock becoming eligible for conversion to shares of common stock by year [Line Items]
Total	60,487

Capital Stock (Details Textual)

Capital Stock (Details Textual) - USD ($)	1 Months Ended			9 Months Ended		12 Months Ended
	Aug. 31, 2016	Jul. 31, 2016	May 31, 2016	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2002
Capital Stock (Textual)
Common stock, authorized shares				12,000,000,000		2,000,000,000
Common stock , par value				$ 0.0001		$ 0.0001
Unregistered shares of common stock issued				55,000,000
Unregistered shares of common stock issued, value				$ 45,000
Warrants sold to purchase one share of common stock				55,000,000
Exercise price of common stock warrants sold.				$ 0.005
Preferred stock, authorized shares				100,000,000		100,000,000
Preferred stock, par value				$ 0.001		$ 0.001
Minimum [Member]
Capital Stock (Textual)
Common stock , par value				$ 0.001
Convertible promissory notes one [Member]
Capital Stock (Textual)
Pro forma number of shares of common stock potentially issuable upon assumed conversion of convertible promisory notes eligible for conversion				100,531,899
Series A Preferred Stock [Member]
Capital Stock (Textual)
Series A preferred stock, designated shares				1,000,000		1,000,000
Series A convertible preferred stock, issued shares				50,000		50,000
Series A Convertible preferred stock, outstanding shares				50,000		50,000
Description of preferred stock voting rights				Shares of Series A entitle the holder to 10,000 votes per share on all matters brought before the shareholders for a vote.		Shares of Series A entitle the holder to 10,000 votes per share on all matters brought before the shareholders for a vote.
Series B Convertible Preferred Stock [Member]
Capital Stock (Textual)
Total number of shares of common stock underlying the outstanding shares of Series B Convertible Preferred Stock, if converted				16,092,505,000
Preferred stock, par value				$ 0.001		$ 0.001
Series B convertible preferred stock, designated shares				25,000,000		5,000,000
Series B Convertible preferred stock, issued shares				16,092,505		3,492,749
Series B Convertible preferred stock, outstanding shares				16,092,505		3,492,749
Number shares of Common Stock into which each share of Series B Convertible Preferred Stock can be converted				1,000
Description of preferred stock voting rights				Holders of Series B are entitled to one thousand votes per share held, on all matters brought before the shareholders for a vote.		Holders of Series B are entitled to one thousand votes per share held, on all matters brought before the shareholders for a vote.
Percentage of non - affiliate shareholder ownership before assumed conversion				71.30%
Percentage of non - affiliate shareholder ownership after assumed conversion				8.50%
Convertible promissory note [Member]
Capital Stock (Textual)
Common shares issued upon conversion of convertible promissory notes				1,209,182,017	459,875,350
Principal amount of debt, including accrued interest converted into shares of common stock				$ 665,000	$ 790,000
George J. Coates [Member]
Capital Stock (Textual)
Conversion of convertible promissory notes	$ 252,000	$ 120,000	$ 100,000	$ 472,000
Debt conversion, converted to restricted shares	279,549,056	200,000,000	90,909,091	570,458,147
George J. Coates [Member] | Maximum [Member]
Capital Stock (Textual)
Conversion price per share of promissory notes to related parties converted to common stock				$ 0.0011
George J. Coates [Member] | Minimum [Member]
Capital Stock (Textual)
Conversion price per share of promissory notes to related parties converted to common stock				$ 0.0006
George J. Coates [Member] | Series B Convertible Preferred Stock [Member]
Capital Stock (Textual)
Series B convertible preferred stock, issued shares				11,766,624	2,463,772
Estimated fair value of Series B convertible preferred stock granted				$ 6,749,000	$ 6,874,000
Gregory G. Coates [Member] | Series B Convertible Preferred Stock [Member]
Capital Stock (Textual)
Series B convertible preferred stock, issued shares				772,645	167,726
Ownership percentage							5.31%
Estimated fair value of Series B convertible preferred stock granted				$ 447,000	$ 468,000
Barry C. Kaye [Member]
Capital Stock (Textual)
Ownership percentage				0.04157%
Barry C. Kaye [Member] | Series B Convertible Preferred Stock [Member]
Capital Stock (Textual)
Series B convertible preferred stock, issued shares				60,487	13,131
Estimated fair value of Series B convertible preferred stock granted				$ 35,000	$ 37,000
Southridge Partners II LP [Member]
Capital Stock (Textual)
Registered shares of common stock issued, but not sold				24,539,007
Registered shares of common stock sold, shares				87,892,603	45,910,165
Registered shares of common stock sold, value				$ 150,000	$ 258,000
Mr. Coates [Member] | Series B Convertible Preferred Stock [Member]
Capital Stock (Textual)
Ownership percentage							83.50%
Ownership percentage, description				As a result of the conversions of Mr. Coates' promissory notes into 570,458,147 shares of common stock, as discussed in Note 13, his ownership percentage to be maintained through anti-dilution increased to 83.5%.

Unearned Revenue (Details)

Unearned Revenue (Details)	Sep. 30, 2016USD ($)
Unearned Revenue (Textual)
Deposit received for sale	$ 132,000
Non-refundable deposit	$ 19,000

Sublicensing Fee Revenue (Detai

Sublicensing Fee Revenue (Details) - Sublicensing Fee Revenue [Member] - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Sublicensing Fee Revenue [Line Items]
Sublicensing fee revenue	$ 5,000	$ 5,000	$ 14,000	$ 14,000
License deposits	$ 300,000		$ 300,000
Amortization method, description			Straight-line basis over the approximate remaining life until 2027

Loss Per Share (Details)

Loss Per Share (Details) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Loss Per Share (Textual)
Warrants outstanding to purchase common stock	90,344,911	35,344,911
Vested stock options outstanding	12,470,000	12,500,000
Convertible promissory notes [Member]
Loss Per Share (Textual)
Convertible promissory notes outstanding, eligible for conversion	$ 50,000	$ 79,000
Pro forma number of common shares issuable upon assumed conversion of promissory notes	100,531,899
Maximum [Member]
Loss Per Share (Textual)
Warrant exercise price	$ 0.12	$ 0.35
Stock option exercise price	0.44	1
Minimum [Member]
Loss Per Share (Textual)
Warrant exercise price	0.0005	0.02
Stock option exercise price	$ 0.028	$ 0.028

Stock Options (Details)

Stock Options (Details) - Stock Option [Member]	9 Months Ended
	Sep. 30, 2016$ / sharesshares
Stock options outstanding under stock option plan
Number Outstanding | shares	12,470,000
Weighted Average Remaining Contractual Life	10 years
Number Exercisable | shares	12,470,000
Weighted Average Exercise Price	$ 0.182
Weighted Average Fair Value Per Stock Option at Date of Grant	0.169
Maximum [Member]
Stock options outstanding under stock option plan
Exercise Price Per Share	0.44
Minimum [Member]
Stock options outstanding under stock option plan
Exercise Price Per Share	$ 0.028

Stock Options (Details 1)

Stock Options (Details 1)	9 Months Ended
	Sep. 30, 2016
Summary of assumptions used to determine weighted average fair value
Historical stock price volatility, minimum	139.00%
Historical stock price volatility, maximum	325.00%
Risk-free interest rate, minimum	0.21%
Risk-free interest rate, maximum	4.64%
Expected life (in years)	4 years
Dividend yield	0.00%

Stock Options (Details Textual)

Stock Options (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Stock Options (Textual)
Vested stock options	703,000
Vested stock options, exercise price	$ 0.028
Non-cash stock-based compensation expense related to employee stock options	$ 0	$ 7,000
Historical stock price volatility description	The Company utilized the volatility in the trading of its common stock computed for the 12 months of trading immediately preceding the date of grant.
2014 Stock Option and Incentive Plan [Member]
Stock Options (Textual)
Common stock available for stock options or awards under the Stock Plan	50,000,000
Maximum percentage of shares issuable in one year to one employee	25.00%
Maximum number of shares of common stock authorized for issue under plan	50,000,000

Equity Purchase and Registrat63

Equity Purchase and Registration Rights Agreements (Details) - Southridge Partners II LP [Member] - USD ($)	1 Months Ended			9 Months Ended
	Jul. 29, 2015	Jun. 30, 2015	Jul. 31, 2014	Sep. 30, 2016	Sep. 30, 2015
2014 Equity Purchase Agreements [Member]
Equity Purchase and Registration Rights Agreements (Textual)
Purchase agreement term			3 years
Number of shares of common stock sold					40,000,000
Purchase of common stock shares		40,000,000
2014 equity purchase agreement description			Pursuant to the terms of the 2014 EP Agreement, Southridge committed to purchase up to 40,000,000 shares of the Company's common stock, in exchange for consideration not to exceed Ten Million ($10,000,000) Dollars.
Proceeds from issuance of common stock under equity line of credit					$ 207,000
2015 Equity Purchase Agreements [Member]
Equity Purchase and Registration Rights Agreements (Textual)
Purchase agreement term	3 years
Number of shares of common stock sold				87,892,603	5,910,165
Number of shares of common stock registered	205,000,000
Proceeds from issuance of common stock under equity line of credit				$ 150,000	$ 51,000
2015 equity purchase agreement description	Pursuant to the terms of the 2015 EP Agreement, Southridge committed to purchase up to 205,000,000 shares of the Company's common stock in exchange for consideration not to exceed Twenty Million ($20,000,000) Dollars.
Equity Purchase Agreement [Member]
Equity Purchase and Registration Rights Agreements (Textual)
Daily conditions for reducing put option amount by 10% description				The purchase price for the shares of common stock shall be equal to 94% of the lowest closing price of the common stock during the ten trading days that comprise the defined pricing period. The Company is entitled to exercise a Put to Southridge by delivering a Put Notice, which requires Southridge to remit the dollar amount stated in the Put Notice at the end of the pricing period, provided, however, that for each day during the pricing period, if any, that the daily closing price of the Company's common stock is (i) 25% or more below the Floor Price, as defined, or (ii) below the Floor Price, if any, stipulated in the Put Notice issued by the Company, then the dollar amount of the Put shall be reduced by 10% for each such day.

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015
Income Taxes (Textual)
Increase in deferred tax assets	$ 1,750,000	$ 589,000	$ 3,145,000	$ 3,473,000
Unrecognized tax benefits liability
Open income tax years, Description			2013 through 2015.
Penalties or interest related to income tax returns
Federal [Member]
Income Taxes (Textual)
Operating loss carryforwards	20,069,000		$ 20,069,000
Operating loss carryforwards expiration date description			Expiring between 2018 and 2036.
State [Member]
Income Taxes (Textual)
Operating loss carryforwards	$ 9,767,000		$ 9,767,000
Operating loss carryforwards expiration date description			Expiring between 2029 and 2036.

Related Party Transactions (Det

Related Party Transactions (Details) - USD ($)		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015
George J. Coates [Member]
Summary of approximate amount of base compensation and benefits
Base compensation and benefits paid	[1],[2]	$ 17,000	$ 13,000
Gregory G. Coates [Member]
Summary of approximate amount of base compensation and benefits
Base compensation and benefits paid	[3]	131,000	137,000
Bernadette Coates [Member]
Summary of approximate amount of base compensation and benefits
Base compensation and benefits paid	[4]	$ 3,000	$ 4,000
[1]	During the nine months ended September 30, 2016 and 2015, George J. Coates was awarded 11,766,624 and 2,463,772 shares of Series B Convertible Preferred Stock, respectively, with an estimated fair value of $6,749,000 and $6,875,000, respectively, for anti-dilution.
[2]	For the nine months ended September 30, 2016 and 2015, George J. Coates earned additional base compensation of $183,000 and $188,000, respectively, payment of which is being deferred until the Company has sufficient working capital. These amounts are included in deferred compensation in the accompanying balance sheets at September 30, 2016 and 2015.
[3]	During the nine months ended September 30, 2016 and 2015, Gregory G. Coates was awarded 772,645 and 167,726 shares of Series B Convertible Preferred Stock, respectively, with an estimated fair value of $447,000 and $468,000, respectively, for anti-dilution.
[4]	For the nine months ended September 30, 2016 and 2015, Bernadette Coates earned additional base compensation of $50,000 and $50,000, respectively, payment of which is being deferred until the Company has sufficient working capital. These amounts are included in deferred compensation in the accompanying balance sheets at September 30, 2016 and 2015.

Related Party Transactions (D66

Related Party Transactions (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
George J. Coates [Member]
Related Party Transactions (Textual)
Amount of compensation deferred			$ 183,000	$ 188,000
George J. Coates [Member] | Series B Convertible Preferred Stock [Member]
Related Party Transactions (Textual)
Issuance of anti-dilution shares of Series B convertible preferred stock to related parties, shares			11,766,624	2,463,772
Estimated fair value of Series B convertible preferred stock			$ 6,749,000	$ 6,875,000
Gregory G. Coates [Member] | Series B Convertible Preferred Stock [Member]
Related Party Transactions (Textual)
Issuance of anti-dilution shares of Series B convertible preferred stock to related parties, shares			772,645	167,726
Estimated fair value of Series B convertible preferred stock			$ 447,000	$ 468,000
Bernadette Coates [Member]
Related Party Transactions (Textual)
Amount of compensation deferred			50,000	50,000
Barry C. Kaye [Member]
Related Party Transactions (Textual)
Amount of compensation paid Treasurer and Chief Financial Officer			$ 1,000	$ 73,000
Issuance of anti-dilution shares of Series B convertible preferred stock to related parties, shares			60,487	13,131
Value of anti-dilution shares of series B convertible preferred stock issued to related parties			$ 35,000	$ 37,000
Compensation earned by Barry C. Kaye, but not paid	$ 25,000	$ 26,000	74,000	$ 87,000
Total amount of unpaid, deferred compensation			270,000
Interest expense related party			$ 90,000

Contractual Obligations and C67

Contractual Obligations and Commitments (Details)	Sep. 30, 2016USD ($)
Summary of Company's contractual obligations
2,016	$ 2,712,000
2,017	134,000
2,018	1,223,000
Total	4,069,000
Promissory notes to related parties [Member]
Summary of Company's contractual obligations
2,016	1,447,000
2,017
2,018
Total	1,447,000
Mortgage loan payable [Member]
Summary of Company's contractual obligations
2,016	60,000
2,017	60,000
2,018	1,223,000
Total	1,343,000
Deferred compensation [Member]
Summary of Company's contractual obligations
2,016	1,155,000
2,017
2,018
Total	1,155,000
Convertible promissory notes [Member]
Summary of Company's contractual obligations
2,016	50,000
2,017	74,000
2,018
Total	$ 124,000

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event [Member] - USD ($)	Nov. 10, 2016	Nov. 30, 2016	Oct. 31, 2016
George J. Coates [Member]
Subsequent Event [Line Items]
Total aggregate deferred compensation	$ 942,000
Additional deferred compensation	29,000
Barry C. Kaye [Member]
Subsequent Event [Line Items]
Total aggregate deferred compensation	194,000
Additional deferred compensation	14,000
Bernadette Coates [Member]
Subsequent Event [Line Items]
Total aggregate deferred compensation	250,000
Additional deferred compensation	$ 8,000
Sale of Common Stock and Warrants [Member]
Subsequent Event [Line Items]
Unregistered shares of common stock issued upon conversion			20,000,000
Number of common stock warrants to purchase one unregistered share			20,000,000
Warrant exercise price			$ 0.0005
Proceeds from sale of common stock and warrants			$ 10,000
Convertible Promissory Note [Member]
Subsequent Event [Line Items]
Unregistered shares of common stock issued upon conversion			71,428,571
Total amount of convertible notes converted to common stock			$ 30,000
Promissory Note [Member] | George J. Coates [Member]
Subsequent Event [Line Items]
Interest rate		17.00%	17.00%
Total amount of convertible notes issued		$ 3,000	$ 3,000
Repaid promissory notes		$ 1,000	$ 1,000
Series B Convertible Preferred Stock [Member] | George J. Coates [Member]
Subsequent Event [Line Items]
Shares of Series B Preferred Stock issued			756,165
Fair value of Series B Preferred Stock issued			$ 295,000
Series B Convertible Preferred Stock [Member] | Gregory G. Coates [Member]
Subsequent Event [Line Items]
Shares of Series B Preferred Stock issued			48,290
Fair value of Series B Preferred Stock issued			$ 19,000
Series B Convertible Preferred Stock [Member] | Barry C. Kaye [Member]
Subsequent Event [Line Items]
Shares of Series B Preferred Stock issued			3,781
Fair value of Series B Preferred Stock issued			$ 1,000