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Statements of Operations (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2015
Sep. 30, 2014
Sep. 30, 2015
Sep. 30, 2014
NET REVENUES        
Sales $ 138,475 $ 53,260 $ 200,600 $ 118,408
Royalties 4,167   16,667  
TOTAL NET REVENUE 142,642 53,260 217,267 118,408
COST OF SALES 28,689 50,160 64,768 104,600
GROSS PROFIT 113,953 3,100 152,499 13,808
OPERATING EXPENSES        
General and administrative 215,787 180,626 379,817 420,937
Legal and accounting 170,506 50,714 398,941 341,912
Payroll expenses [1] 747,333 230,399 1,037,472 1,743,572
Research and development [2] 58,415 106,674 2,194,801 1,055,290
Sales and marketing [3] 37,189 40,656 60,316 166,475
Total operating expenses 1,229,230 609,069 4,071,347 3,728,186
LOSS BEFORE OTHER INCOME (1,115,277) (605,969) (3,918,848) (3,714,378)
OTHER INCOME (EXPENSE)        
Interest expense (4,284) (83,663) (59,438) (107,691)
Gain (loss) on extinguishment of debt (19,395)   332,523 (82,000)
Change in fair value of warrants 1,355,293 (824,283) 2,642,138 2,012,289
Change in fair value of embedded derivative liability   (200,000)   400,000
TOTAL OTHER INCOME (EXPENSE) 1,331,614 (1,107,946) 2,915,223 2,222,598
NET INCOME (LOSS) $ 216,337 $ (1,713,915) $ (1,003,625) $ (1,491,780)
EARNINGS (LOSS) PER SHARE        
BASIC $ 0.04 $ (0.47) $ (0.22) $ (0.42)
DILUTED $ 0.03 $ (0.47) $ (0.22) $ (0.42)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING        
BASIC 5,859,187 3,618,566 4,474,383 3,559,528
DILUTED 7,462,128 3,618,566 4,474,383 3,559,528
[1] Includes share based compensation of $550,837 and $591,129 for the three and nine months ended September 30, 2015, and $40,326 and $842,592 for the three and nine months ended September 30, 2014.
[2] Includes share based compensation of $0 and $2,000,000 for the three and nine months ended September 30, 2015, and $0 and $400,000 for the three and nine months ended September 30, 2014, related to licensing agreements.
[3] Includes share based compensation of $12,500 for the three and nine months ended September 30, 2015, and $0 for the three and nine months ended September 30, 2014.