10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2014

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File No. 333-190456

AKERS BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

New Jersey	22-2983783
(State or other jurisdiction of incorporation)	(IRS Employer Identification No.)

201 Grove Road

Thorofare, NJ 08086

(Address of principal executive offices)

(856) 848-2116

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months, and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Sec.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files. Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

As of May 13, 2014, there were 4,894,837 shares outstanding of the registrant’s common stock.

TABLE OF CONTENTS

PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements.	2
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations.	22
Item 3.	Quantitative and Qualitative Disclosures About Market Risk.	30
Item 4.	Controls and Procedures.	30
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings.	31
Item 1A.	Risk Factors.	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds.	31
Item 3.	Defaults Upon Senior Securities.	31
Item 4.	Mine Safety Disclosures.	31
Item 5.	Other Information.	31
Item 6.	Exhibits.	32
Signatures		33

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements.

AKERS BIOSCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

March 31, 2014 and December 31, 2013

	2014			2013
	(unaudited)			(audited)
ASSETS
Current Assets
Cash	$	305,809		$	103,634
Marketable Securities		12,498,110			-
Trade Receivables (net)		138,601			118,404
Trade Receivables - Related Party		1,475,767			1,209,388
Other Receivables		34,635			748,962
Inventories (net)		665,108			1,025,104
Other Current Assets		45,192			163,890
Total Current Assets		15,163,222			3,369,382
Non-Current Assets
Property, plant and equipment, net		245,140			267,321
Intangible assets, net		2,369,993			2,434,637
Other Assets		4,282			4,282
Total Non-Current Assets		2,619,415			2,706,240
Total Assets	$	17,782,637		$	6,075,622
LIABILITIES
Current Liabilities
Trade and Other Payables	$	609,985		$	1,000,413
Trade and Other Payables - Related Party		-			6,586
Short-Term Notes Payable - Related Party		-			307,500
Deferred Revenue - Related Party		333,333			333,333
Total Current Liabilities		943,318			1,647,832
Non-Current Liabilities
Deferred Revenue - Related Party		222,223			305,556
Total Non-Current Liabilities		222,223			305,556
Total Liabilities		1,165,541			1,953,388
EQUITY
Convertible Preferred Stock, No par value,
50,000,000 shares authorized, no shares issued
and outstanding as of March 31, 2014 and
December 31, 2013		-			-
Common Stock, No par value, 500,000,000
shares authorized, 4,894,837 and 2,167,837
issued and outstanding as of March 31, 2014
and December 31, 2013		98,944,696			85,843,360
Accumulated Deficit		(82,316,726	)		(81,721,126	)
Accumulated Comprehensive Losses		(10,874	)		-
Total Equity		16,617,096			4,122,234
Total Liabilities and Equity	$	17,782,637		$	6,075,622

See accompanying notes to these condensed consolidated financial statements.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss)

For three months ended March 31, 2014 and 2013

(unaudited)

	2014			2013
Revenues:
Product Revenue	$	324,207		$	382,148
Product Revenue - Related party		766,379			919,822
License Revenue		-			200,000
License Revenue - Related party		83,333			83,333
Total Revenue		1,173,919			1,585,303
Cost of Sales:
Product Cost of Sales		(604,323	)		(776,245	)
Gross Profit		569,596			809,058
Administrative Expenses		458,680			210,927
Administrative Expenses - Related parties		195,002			83,751
Sales and Marketing Expenses		211,098			233,906
Research and Development Expenses		253,538			247,716
Amortization of Non-Current Assets		64,643			64,643
Loss from Operations		(613,365	)		(31,885	)
Other (Income)/Expenses
Foreign Currency Transaction (Income)/Expense		(2,399	)		87
Gain from demutualization of insurance carrier		(4,669	)		(91,286	)
Interest and Dividend Income		(10,697	)		(1,054	)
Total Other Income		(17,765	)		(92,253	)
Income/(Loss) Before Income Taxes		(595,600	)		60,368
Income Tax Benefit		-			-
Net Income/(Loss)	$	(595,600	)	$	60,368
Other Comprehensive Loss
Unrealized Losses on Marketable Securities		(10,874	)		-
Total Other Comprehensive Loss	$	(10,874	)	$	-
Comprehensive Income/(Loss)	$	(606,474	)	$	60,368
Basic & diluted earnings/(loss) per common share	$	(0.14	)	$	0.05
Weighted average basic & diluted common
shares outstanding		4,197,937			1,278,948

See accompanying notes to these condensed consolidated financial statements.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Statement of Changes in Stockholder's Equity

For three months ended March 31, 2014

	Shares							Accumulated
	Issued and		Common		Accumulated			Comprehensive			Total
	Outstanding		Stock		Deficit			Losses			Equity
Balance at December 31, 2013 (Audited)		2,167,837	$	85,843,360	$	(81,721,126	)	$	-		$	4,122,234
Net loss for the quarter				-		(595,600	)		-			(595,600	)
Unrealized loss on marketable securities				-		-			(10,874	)		(10,874	)
Initial public offering, net of offering costs
of $1,897,164		2,727,000		13,101,336		-			-			13,101,336
Balance at March 31, 2014 (Unaudited)		4,894,837	$	98,944,696	$	(82,316,726	)	$	(10,874	)	$	16,617,096

See accompanying notes to these condensed consolidated financial statements.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES

Condensed Consolidated Cash Flow Statements

For three months ended March 31, 2014 and 2013

(unaudited)

	2014			2013
Cash flows from operating activities
Net income/(loss) for the period	$	(595,600	)	$	60,368
Adjustments to reconcile net income/(loss) to net cash used by
operating activities:
Provisions for bad debts		-			-
Depreciation and amortization		86,825			88,144
Gain from demutualization of insurer		(4,669	)		(91,286	)
Changes in assets and liabilities
(Increase)/decrease in trade receivables		(20,197	)		4,427
Increase in trade receivables - related party		(266,379	)		(908,176	)
Increase in other receivables		(30,697	)		(21,916	)
Decrease in license fees receivable - related party		-			450,000
Decrease in inventories		359,996			74,464
Decrease in other assets		118,698			15,588
Increase/(decrease) in trade and other payables		(390,428	)		72,876
Decrease in other payables - related party		(6,586	)		(32,293	)
Decrease in legal settlement liabilities		-			(48,943	)
Decrease in deferred revenue - related party		(83,333	)		(83,333	)
Net cash used in operating activities		(832,370	)		(420,080	)
Cash flows from investing activities
Purchases of property, plant and equipment		-			(7,726	)
Purchases of makertable securities		(12,508,984	)		-
Proceeds from demutualization of insurance carrier		4,669			91,286
Net cash provided by/(used in) investing activities		(12,504,315	)		83,560
Cash flows from financing activities
Proceeds from note receivable - related party for Series A
Convertible Preferred Stock		-			225,000
Payment of short-term note payable - related party		(307,500	)		-
Proceeds from other receivable for London Private Placement		745,024			-
Net proceeds from issuance of common stock in initial public
offering		13,101,336			-
Net cash provided by financing activities		13,538,860			225,000
Net increase/(decrease) in cash and cash equivalents		202,175			(111,520	)
Cash and cash equivalents at beginning of period		103,634			633,022
Cash and cash equivalents at end of period	$	305,809		$	521,502
Supplemental Sechedule of Non-Cash Financing and Investing
Activities
Unrealized losses on marketable securities	$	(10,874	)	$	-

See accompanying notes to these condensed consolidated financial statements.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

Note 1 – Nature of Business

(a) Reporting Entity

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2013 included in Form 10-K of Akers Biosciences, Inc. (“the Company”).

The consolidated financial statements include two dormant subsidiaries, Akers Acquisition Sub, Inc. and Bout Time Marketing Corporation. All material intercompany transactions have been eliminated upon consolidation.

(b) Nature of Business

The Company commenced research and development operations in September 1989, and until 2005 had devoted substantially all its efforts to establishing the new business.

The Company’s primary focus is the development and sale of disposable diagnostic testing devices that can be performed in minutes, to facilitate time sensitive therapeutic decisions. The Company’s main products are a disposable breathalyzer test that measures the blood alcohol content of the user, a rapid test detecting the antibody causing an allergic reaction to Heparin and a disposable breathalyzer test that measures Free Radical activity in the human body. When the Company enters into an agreement with a new distributor it requires an upfront licensing fee to be paid for the right to sell the Company’s products in specific markets.

Note 2 - Basis of Presentation and Significant Accounting Policies

(a) Basis of Presentation

The consolidated financial statements of the Company are prepared in U.S. Dollars and in accordance with accounting principles generally accepted in the United States of America (US GAAP).

The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act enacted on April 5, 2012 and has elected to comply with certain reduced public company reporting requirements.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

(b) Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes for revenue recognition, preferred stock, allowances for doubtful accounts, inventory write-downs, impairment of intangible assets and valuation of share based payments.

(c) Foreign Currency

These consolidated financial statements are presented in U.S. Dollars, which is the Company’s functional currency. All financial information presented in U.S. Dollars has been rounded to the nearest dollar. Foreign Currency Transaction Gains or Losses, resulting from loans and cash balances denominated in Foreign Currencies, are recorded in the statement of operations.

(d) Comprehensive Income/(Loss)

The Company follows Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 220 in reporting comprehensive income (loss). Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income.

(e) Cash and Cash Equivalents

Cash and cash equivalents comprise cash balances. The Company considers all highly liquid investments, which include short-term bank deposits (up to 3 months from date of deposit) that are not restricted as to withdrawal date or use, to be cash equivalents. Bank overdrafts are shown as part of trade and other payables in the balance sheet.

(f) Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, receivables and trade and other payables. The carrying value of cash and cash equivalents, trade receivables and trade and other payables approximate their fair value because of their short maturities. The Company believes the carrying amount of its note receivable and notes payable approximates their fair value based on rates and other terms.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

(g) Fair Value Measurement

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

The Company’s valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities. The valuation techniques used to measure the fair value of all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data.

In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments.

(h) Trade Receivables, Trade Receivables – Related Party and Allowance for Doubtful Accounts

The carrying amounts of current trade receivables is stated at cost, net of allowance for doubtful accounts and approximate their fair value given their short term nature.

The normal credit terms extended to customers ranges between 30 and 90 days. The Company reviews all receivables that exceed terms and establishes an allowance for doubtful accounts based on management’s assessment of the collectability of trade and other receivables. A considerable amount of judgment is required in assessing the amount of allowance. The Company considers the historical level of credit losses, makes judgments about the credit worthiness of each customer based on ongoing credit evaluations and monitors current economic trends that might impact the level of credit losses in the future.

As of March 31, 2014 and December 31, 2013, allowances for doubtful accounts were $- and $-. Allowances charged for doubtful accounts amounted to $- for the three months ended March 31, 2014 and 2013.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

(i) Concentration of Credit Risk

The Company is exposed to credit risk in the normal course of business primarily related to trade receivables and cash and cash equivalents.

Substantially all of the Company’s cash are maintained with Fulton Bank of New Jersey and Bank of America. The funds are insured by the Federal Deposit Insurance Corporation up to a maximum of $250,000 per account or instrument, but are otherwise unprotected. The Company placed $266,845 with Fulton Bank of New Jersey and $34,748 with Bank of America as of March 31, 2014. The Company placed $99,418 with Bank of America as of December 31, 2013.

Concentration of credit risk with respect to trade receivables exists as approximately 92% and 85% of its revenue was generated by three customers for the three months ended March 31, 2014 and the year ended December 31, 2013, respectively. These customers accounted for 98% and 97% of trade receivables as of March 31, 2014 and December 31, 2013. In order to limit such risks, the Company performs ongoing credit evaluations of its customers’ financial condition.

(j) Inventories

Inventories are measured at the lower of cost or market. The cost of inventories is based on the weighted-average principle, and includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, costs include an appropriate share of production overheads based on normal operating capacity.

(k) Property, Plant and Equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Costs include expenditures that are directly attributable to the acquisition of the asset.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized within “other income” in the statement of operations.

Depreciation is recognized in the statement of operations on the accelerated basis over the estimated useful lives of the property, plant and equipment. Leased assets are depreciated over the shorter of the lease term or their useful lives.

The estimated useful lives for the current and comparative periods are as follows:

	Useful Life
	(in years)
Plant and equipment	5-12
Furniture and fixtures	5-10
Computer equipment & software	3-5

Depreciation methods, useful lives and residual values are reviewed at each reporting date.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

(l) Intangible Assets

(i) Patents and Trade Secrets

The Company has developed or acquired several diagnostic tests that can detect the presence of various substances in a person’s breath, blood, urine and saliva. Propriety protection for the Company’s products, technology and process is important to its competitive position. As of March 31, 2014, the Company has eleven patents from the United States Patent Office in effect (7,896,167, 8,097,171, 7,285,246, 7,837,936, 8,003,061, 8,425,859, 5,565,366, 5,827,749, D691,056, D691,057 and D691,058). Other patents are in effect in Australia through the Design Registry (348,310, 348,311 and 348,312), the Community Trade Mark in the European Union ((OHIM) 002216895-0001, 002216895-0002 and 002216895-0003) and in Japan (4,885,134 and 4,931,821). Patents are in the national phase of prosecution in many Patent Cooperation Treaty participating countries. Additional proprietary technology consists of numerous different inventions. The Company intends to file additional patent applications, where appropriate, relating to new products, technologies and their use in the U.S., European and Asian markets. Management intends to protect all other intellectual property (e.g. copyrights, trademarks and trade secrets) using all legal remedies available to the Company.

(ii) Patent Costs

Costs associated with applying for patents are capitalized as patent costs. Once the patents are approved, the respective costs are amortized over their estimated useful lives (maximum of 17 years) on a straight-line basis. Patent pending costs for patents that are not approved are charged to operations the year the patent is rejected.

(iii) In addition, patents may be purchased from third parties. The costs of acquiring the patent are capitalized as patent costs if it represents a future economic benefit to the Company. Once a patent is acquired it is amortized over its remaining useful life.

(iv) Other Intangible Assets

Other intangible assets that are acquired by the Company, which have definite useful lives, are measured at cost less accumulated amortization and accumulated impairment losses.

(v) Amortization

Amortization is recognized on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows: 

	Useful Life
	(in years)
Patents and trademarks	12-17
Customer lists	5

(m) Recoverability of Long-lived Assets

In accordance with FASB ASC 360-10-35 “Impairment or Disposal of Long-lived Assets”, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful lives of those assets are no longer appropriate. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. No such events and circumstances have occurred during the three months ended March 31, 2014 and 2013.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted and without interest charges) and comparing such amount to the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived assets to their estimated salvage value in connection with the decision to dispose of such assets.

(n) Revenue Recognition

In accordance with FASB ASC 605, the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) the collectability of the revenue is reasonably assured. Subject to these criteria, the Company recognizes revenue from product sales when title passes to the customer based on shipping terms. The Company typically does not accept returns nor offer charge backs or rebates except for certain distributors. Revenue recorded is net of any discount, rebate or sales return. No accrual for estimated sales returns and rebate incentives are necessary as of March 31, 2014 and December 31, 2013.

License fee revenue is recognized on a straight-line basis over the term of the license agreement.

When the Company enters into arrangements that contain more than one deliverable, the Company allocates revenue to the separate elements under the arrangement based on their relative selling prices in accordance with FASB ASC 605-25.

(o) Income Taxes

The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes.  Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.  Income tax expense or benefit is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.  

(p) Shipping and Handling Fees and Costs

The Company charges actual shipping plus a handling fee to customers, which amounted to $8,238 and $10,398 for the three months ended March 31, 2014 and 2013. These fees are classified as part of product revenue in the statement of operations. Shipping and other related delivery costs, including those for incoming raw materials are classified as part of the cost of net revenue, which amounted to $11,037 and $35,003 for the three months ended March 31, 2014 and 2013.

(q) Research and Development Costs

In accordance with FASB ASC 730, research and development costs are expensed when incurred.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

(r) Stock-based Payments

The Company accounts for stock-based compensation under the provisions of FASB ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model.  The value of the portion of the award that is ultimately expected to vest is recognized as expense over shorter of the period over which services are to be received or the vesting period.

The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC 505-50, Equity-Based Payments to Non-Employees. Under FASB ASC 505-50, the Company determines the fair value of the stock warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.

All issuances of stock warrants or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the period which services are to be received.

(s) Basic and Diluted Earnings per Share of Common Stock

Basic earnings per common share are based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share are computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. Potential common shares that would have the effect of increasing diluted earnings per share are considered anti-dilutive, i.e. the exercise prices of the outstanding stock options were greater than the market price of the common stock.

(t) Recently Adopted Accounting Pronouncements

As of March 31, 2014 and for the three months then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements.

(u) Recently Issued Accounting Pronouncements not Yet Adopted

As of March 31, 2014, there are no recently issued standards not yet adopted which would have a material effect on the Company’s financial statements.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

Note 3 – Marketable Securities

The following table shows the Company’s available-for-sale securities cost, accrued income, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as marketable securities as of March 31, 2014. The Company had no marketable securities as of December 31, 2013.

	2014
			Accrued		Unrealized		Unrealized			Fair
	Cost		Income		Gains		Losses			Value
Level 1:
Money market funds	$	107,258	$	2	$	-	$	-		$	107,260
Mutual funds		748,088		461		258		-			748,807
US agency securities		300,000		494		-		(378	)		300,116
Certificates of deposits		5,145,000		3,739		-		(8,168	)		5,140,571
Corporate securities		600,000		422		-		(2,862	)		597,560
Municipal securities		5,600,145		3,375		276		-			5,603,796
Total Level 1:		12,500,491		8,493		534		(11,408	)		12,498,110
Total:	$	12,500,491	$	8,493	$	534	$	(11,408	)	$	12,498,110

The net realized losses are primarily related to long-term marketable securities. The Company may sell certain of its securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. During the three months ended March 31, 2014 the net realized gains recognized by the Company were not significant. The maturities of the Company’s long-term marketable securities generally range from one to three years.

As of March 31, 2014, the Company considered the declines in market value of its marketable securities investment portfolio to be temporary in nature and did not consider any of its investments other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. During the three months ended March 31, 2014 the Company did not recognize any significant impairment charges.

Note 4 - Note Receivable – Related Parties

The note of $225,000 was issued to the Company in connection with the subscription of 10,000,000 series A convertible preferred stock entered into on September 14, 2012. It is due September 14, 2027 and has an interest rate of 3% per annum. For the three months ended March 31, 2013, interest income of $1,054 was recorded. The note was fully settled in cash on February 26, 2013.

Note 5 - License Fee Receivable – Related Party

On June 19, 2012, the Company entered into a 3-year exclusive License & Supply Agreement with Chubeworkx Guernsey Limited (as a successor to SONO International Limited) (“Chubeworkx”) for the purchase and distribution of the Company’s proprietary breathalyzers outside North America (Note 15). Chubeworkx agreed to pay a licensing fee of $1,000,000. The final payment of $450,000 was received on March 6, 2013.

On June 12, 2013, Chubeworkx became a shareholder of the Company (Note 12)

~ 13 ~

AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

Note 6 - Inventories

Inventories at March 31, 2014 and December 31, 2013 consists of the following categories:

	2014			2013
Raw Materials	$	320,820		$	299,464
Sub-Assemblies		326,084			335,229
Finished Goods		50,204			422,411
Reserve for Obsolescence		(32,000	)		(32,000	)
	$	665,108		$	1,025,104

 For the three months ended March 31, 2014 and 2013, no charges were made to cost of goods sold for obsolete inventory.

Note 7 - Property, Plant and Equipment

Property, plant and equipment as of March 31, 2014 and December 31, 2013 are as follows:

	2014		2013
Computer Equipment	$	100,405	$	100,405
Computer Software		22,930		22,930
Office Equipment		50,049		50,049
Furniture & Fixtures		29,939		29,939
Machinery & Equipment		1,098,503		1,098,503
Molds & Dies		649,647		649,647
Leasehold Improvements		222,594		222,594
		2,174,067		2,174,067
Less
Accumulated Depreciation		1,928,927		1,906,746
	$	245,140	$	267,321

During the three months ended March 31, 2014 and 2013 depreciation expense was $22,181 and $23,500.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

Note 8 - Intangible Assets

Intangible assets as of March 31, 2014 and December 31, 2013 and the movements for the three months then ended are as follows: 

			Distributor &
	Patents &		Customer
	Trademarks		Relationships		Totals
Cost or Deemed Cost
At December 31, 2013		3,851,494		1,270,639		5,122,133
Additions		-		-		-
Disposals		-		-		-
At March 31, 2014		3,851,494		1,270,639		5,122,133
Accumulated Amortization
At December 31, 2013		1,416,857		1,270,639		2,687,496
Amortization Charge		64,644		-		64,644
Disposals		-		-		-
At March 31, 2014		1,481,501		1,270,639		2,752,140
Net Book Value
At December 31, 2013		2,434,637		-		2,434,637
At March 31, 2014	$	2,369,993	$	-	$	2,369,993

During the three months ended March 31, 2014 and 2013 amortization expense was $64,644 and $64,644.

Note 9 - Trade and Other Payables

Trade and other payables as of March 31, 2014 and December 31, 2013 are as follows:

	2014		2013
Trade Payables	$	148,206	$	623,157
Other Payables		461,779		377,256
	$	609,985	$	1,000,413

Trade and other payables are non-interest bearing and are normally settled on 30 – 60 day terms

Note 10 - Deferred Revenue – Related Party

Deferred revenue represents the unearned revenue from the 3-year exclusive License and Supply Agreement with Chubeworkx Guernsey Limited (Note 15) for the purchase and distribution of the Company’s proprietary breathalyzer that was signed in June 2012. The first order for the proprietary breathalyzers was received in December 2012 for 3,500,000 units and additional orders were received in 2013 totaling 4,620,000 units. As of March 31, 2014, 8,120,000 units have been shipped. The license revenue is being recognized monthly on a straight line basis over the 3-year term of the agreement.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

Note 11 - Share-based Payments

(a) Stock Warrants

The Company has issued warrants to various employees, consultants and members of the Board of Directors of the Company for their services either in connection with the Company’s ongoing efforts to raise capital or the development of the Company’s products. In addition, the Company has granted warrants to lenders in connection with the issuance of debt. Each warrant granted may be exchanged for a prescribed number of shares of common stock. The warrants expire March 18, 2015.

	2014				2013
			Weighted				Weighted
			Average				Average
	Warrants		Exercise Price		Warrants		Exercise Price
Outstanding at January 1		1,989	$	71.76		47,211	$	48.54
Cancelled during year		-		-		-		-
Expired during year		-		-		-		-
Outstanding at March 31		1,989	$	71.76		47,211	$	48.54

On January 23, 2014, upon effectiveness of the registration statement filed with the SEC, the Company adopted the 2013 Stock Incentive Plan (the “Plan”) which will provide for the issuance of up to 400,000 shares. The purpose of the Plan is to provide additional incentive to those officers, employees, consultants and non-employee directors of the Company and its parents, subsidiaries and affiliates whose contributions are essential to the growth and success of the Company’s business.

The 2013 Plan may be administered by the board or a board-appointed committee. Eligible recipients of option awards are employees, officers, consultants or directors (including non-employee directors) of the Company or of any parent, subsidiary or affiliate of the Company. The board has the authority to grant to any eligible recipient any options, restricted stock or other awards valued in whole or in part by reference to, or otherwise based on, our common stock.

(b) Stock options

Qualified option holders may exercise their options at their discretion. Each option granted may be exchanged for a prescribed number of shares of common stock.

Employee's Plan	2014				2013
			Weighted				Weighted
			Average				Average
	Options		Exercise Price		Options		Exercise Price
Outstanding at January 1		-	$	-		1,579	$	42.12
Forfeited during year		-		-		-		-
Expired during year		-		-		-		-
Outstanding at March 31		-	$	-		1,579	$	42.12

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

Director's Plan	2014				2013
			Weighted				Weighted
			Average				Average
	Options		Exercise Price		Options		Exercise Price
Outstanding at January 1		-	$	-		352	$	312.00
Cancelled during year		-		-		-		-
Expired during year		-		-		-		-
Outstanding at March 31		-	$	-		352	$	312.00

The options and warrants issued under the above three plans were valued using a Black Scholes option pricing model on the date of measurement. There were no options or warrants granted for the three months ended March 31, 2014 and 2013.

A summary of warrants and stock options outstanding and exercisable as of March 31, 2014 follows:

							Outstanding				Excercisable
							Wgtd Avg		Wgtd Avg				Wtgt Avg
							Life		Exercise				Exercise
	Low		High		Shares		Remaining		Price		Shares		Price
Warrants	$	71.76	$	71.76		1,989		0.98	$	71.76		1,989	$	71.76

Note 12 - Equity

The holders of common shares are entitled to one vote per share at meetings of the Company. Holders of Series A convertible preferred shares are entitled to five votes per share at meetings of the Company.

At March 31, 2014 and December 31, 2013, the Company has an undeclared dividend due to Series A Convertible Preferred shareholders in the amount of $15,793.

On June 12, 2013 the Company, in a private placement to ChubeWorkx, issued 512,820 common shares for $1,600,000.

On August 8, 2013, the Company filed a registration statement with the Security and Exchange Commission seeking authority to begin trading the Company’s common shares on the NASDAQ Stock Exchange (“NASDAQ”).

On November 6, 2013, the Company approved a 156-to-1 reverse stock split of the Company’s common shares to raise the price per share to $10.11 as calculated using the November 6, 2013 closing AIM London Stock Exchange (“LSE”) market price of £0.0405 or $0.0648 per share to facilitate the initial public offering on NASDAQ. All shares and per share amounts in the consolidated financial statements have been adjusted to give retroactive effect to the 156-1 reverse stock split.

On November 15, 2013, Mr. Thomas Knox executed the conversion of 10,000,000 shares of Series A convertible preferred stock to 320,512 shares of common stock (50,000,000 pre-split shares) and entered into a promissory note of $500,000 as a basis to provide the required onetime payment due upon conversion as set forth in the subscription agreement dated September 14, 2012. The promissory note requires payment of the principal in full prior to maturity date of November 15, 2014 (the “Maturity Date”) with interest on the unpaid principal balance at the rate of the thirty day average LIBOR per annum commencing on November 15, 2013. The interest is to be paid in one lump sum on or before December 31 of each calendar year. The 320,512 shares of common stock will be held by the Company as collateral until all amounts owing under this note are paid.   In the event that Mr. Knox does not pay in full all amounts due and owing under the note within 15 business days of the Maturity Date the Company has the right to cancel the 320,512 shares of common stock; provided however, the Company provides Mr. Knox no less than thirty (30) day written notice prior to cancelling the common stock. Mr. Knox shall have no less than sixty (60) days from the date the notice is received to pay all amount due and owing under the note.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

On December 3, 2013, the note receivable received for the conversion of the Series A convertible preferred stock was cancelled in exchange of 58,515 shares of common stock at the AIM:LSE market closing price of £5.2250 using the exchange rate of $1.6355 or $8.5455 per share. The Company has recorded the receipt of the 58,515 shares as a reduction of the issued and outstanding common stock, as the shares were retired upon receipt.

On December 23 2013, the Company issued 114,072 common shares in a private placement offering. The transaction was recorded at the value of the net proceeds. The proceeds were recorded in Other Receivables at December 31, 2013. The cash proceeds from the sale were received on January 2, 2014. The expenses related to this private placement are detailed below:

	$		$
Gross Proceeds:			800,732
Broker Commission		40,037
Legal Fees		15,672
Total Expenses			55,708
Net Proceeds:			745,024

On January 23, 2014, the Company issued 2,727,000 common shares in an initial public offering on the NASDAQ stock exchange. The transaction was recorded at the value of the net proceeds. The expenses related to this public offering are as follows:

	$		$
Gross Proceeds:			14,998,500
Underwriter/Aegis Expenses
Underwriter Commission		1,049,895
Underwriter Expenses		149,985
Aegis Legal Fees		80,000
Aegis Registration Expenses		7,500
Aegis Miscellaneous Expenses		36,675
Aegis Road Show Expenses		20,000
Total			1,344,055
Akers Biosciences Expenses
Legal & Accounting Expenses		393,298
Printing & Document Prep		62,101
Registration Expenses		55,946
Road Show Expenses		41,764
Total			553,109
Net Procceds:			13,101,336

As of March 31, 2014 and December 31, 2013 the Company has reserved shares of its common stock for 1,989 warrants.

Note 13 – Earnings/(Loss) per share

The calculation of basic and diluted earnings/(loss) per share for the three months ended March 31, 2014 and 2013 was based on a loss of $595,600 and income of $60,368 attributable to common shareholders, respectively.

Diluted earnings/(loss) per share is computed using the weighted average number of common and dilutive potential common shares outstanding during the period. The basic and diluted weighted average number of common shares outstanding for the three months ended March 31, 2014 and 2013 was 4,197,937 and 1,278,948.

Potential common shares consist of options and warrants. Diluted net loss per common share was the same as basic loss per common share for the three months ended March 31, 2014 since the effect of options and warrants would be anti-dilutive due to the net loss attributable to the common shareholders for the period. Instruments excluded from dilutive earnings per share, because their inclusion would be anti-dilutive, were 1,989 units of warrants. Diluted earnings per common share was the same as basic earnings per common share for the three months ended March 31, 2013 as the average market price of the common share during this period is lower than the exercise price of the potential common shares.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

Note 14 - Income Tax Expense

There is no income tax benefit for the losses for the three months ended March 31, 2014 and 2013 since management has determined that the realization of the net deferred tax asset is not assured and has created a valuation allowance for the entire amount of such benefits.

The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of January 1, 2014, the Company had no unrecognized tax benefits, or any tax related interest or penalties. There were no changes in the Company’s unrecognized tax benefits during the three months ended March 31, 2014 related to unrecognized tax benefits. With few exceptions, the U.S. and state income tax returns filed for the tax years ending on December 31, 2010 and thereafter are subject to examination by the relevant taxing authorities.

Note 15 - Related Party Transactions

On January 12, 2011, the Company entered into a consulting agreement with Nicolette Consulting Group Limited (NCG) for a period of three years under which the Company must pay NCG $27,917 per month in fees and up to $10,000 in reimbursement for monthly expenses ($30,000 and $30,000 for three months ended March 31, 2014 and 2013) for the services of Mr. Thomas A. Nicolette as President and Chief Executive Officer of the Company. The consulting agreement was extended through February 11, 2014 on December 23, 2013 and extended through March 31, 2014 on March 15, 2014. Mr. Nicolette has decided to step down from the Board and resigned from the Company effective March 28, 2014. There are no fees owing to NCG as of March 31, 2014 and December 31, 2013.

On March 17, 2010, in exchange for an exclusive licensing agreement, ABI received a 20 percent equity stake in BreathScan International Ltd (BIL). During 2012, BreathScan International Limited changed its name to en(10) Guernsey Limited (“en(10)”). Mr. Nicolette, the then President and Chief Executive Officer of the Company, was also appointed to en(10)’s Board of Directors. The equity stake is accounted for using the equity method of accounting in accordance with the Financial Accounting Standards Board Accounting Standards Codification. The equity investment was initially recorded at cost, which was nil. During the three months ended March 31, 2013 no profit or loss is recorded for en(10)’s results as en(10) recorded a net loss and the Company is not required to equity account any losses in excess of its carrying value on the books. On June 13, 2013 the Company sold its interest in en(10) to ChubeWorkx for $100,000 and Mr. Nicolette resigned from en(10)’s Board of Directors.

On June 19, 2012, the Company entered into a 3 year exclusive License & Supply Agreement with Chubeworkx Guernsey Limited (as successor to SONO International Limited) (“Chubeworkx”) for the purchase and distribution of ABI’s proprietary breathalyzers outside North America. Chubeworkx paid a licensing fee of $1,000,000, of which $83,333 was recognized as income for the three months ended March 31, 2014 and 2013, with the deferral to be recognized over the remaining term of the agreement (Note 5).

On June 13, 2013, the Company announced an expansion of the License and Supply Agreement with Chubeworkx to include worldwide marketing and distribution of the “Be CHUBE” program using the Company’s breathalyzer.

On June 14, 2013, the Company announced that Chubeworkx has agreed to subscribe for 512,820 new common shares in the Company for a total price of $1,600,000. The proceeds were received by the Company on June 14, 2013.

In accordance with FASB ASC 605-25, Revenue Recognition, Multiple-Element Arrangements, since the Amended License and Supply Agreement with Chubeworks was entered into simultaneously with the sale of the Company’s 20% interest in en(10) to Chubeworks and Chubeworks purchase of 512,820 shares of the Company’s common stock, the Company evaluated the separate agreements as a single arrangement with multiple deliverables in considering whether there were one or more units of accounting. The three arrangements were considered to be separate units of accounting since the three transactions have value to Chubeworks on a stand-alone basis and the transactions were consummated with no right of return. The entire consideration of the three arrangements was allocated at the inception of the arrangements on the basis of their relative selling price. The proceeds of $1,600,000 were allocated to the sale of the 80 million shares of the Company’s common stock based on third party selling price. The third party selling price was based on the selling price of the stock on the AIM Market of the London Stock Exchange on date of the arrangement. The Amended License and Supply agreement was allocated zero value based on the Company’s best estimate of the selling price for that deliverable. This best estimate was based on the fact that the Company and Chubeworks are in the process of developing an appropriate marketing plan for the region and that there is no current active market for the Company’s CHUBE products in the expanded region. $100,000 of the proceeds were allocated to the sale of the Company’s 20% interest in en(10) based on the Company’s best estimate of the selling price for this deliverable. This best estimate was based on the negotiation of the sale with Chubeworks.

~ 19 ~

AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

On August 5, 2013, the Board of Directors appointed Gary M Rauch, the principle of DataSys Solutions, LLC (DS), as the Corporate Treasurer. The Company entered into a consulting agreement with DS on January 1, 2011, with a term of three years, under which the Company agreed to pay $5,625 per month for Mr. Rauch’s services as Controller of the Company. The total amount of fees accrued for DS as of March 31, 2014 and December 31, 2013 was $- and $6,586 and is shown as Trade and Other Payables – Related Party in the Consolidated Balance Sheet. On March 18, 2014, the Board of Directors approved the appointment of Mr. Rauch as Vice President of Finance, retroactive to February 2, 2014, and he became an employee of the Company.

On December 23, 2013, the Company entered into a short-term bridge loan with Nicolette Consulting Group for $307,500, payable on January 15, 2014 with a 5% per annum interest rate. The transaction was recorded as a Short-Term Notes Payable – Related Party. The loan, with interest amounting to $969, was paid in full on January 15, 2014.

Trade receivables – related party as of March 31, 2014 and December 31, 2013 were amounts due from Chubeworkx Guernsey Limited, a major shareholder of the Company, of $1,475,767 and $1,209,388. The amount due is non-interest bearing, unsecured and has a term of 90 days generally.

Product revenue – related parties for the three months ended March 31, 2014 and 2013 were $766,369 and $919,822 from Chubeworkx Guernsey Limited, a major shareholder of the Company.

Administrative expenses – related parties for the three months ended March 31, 2014 and 2013 were $183,752 and $83,751 for Nicolette Consulting Group and $11,250 and $- for DataSys Solutions.

Note 16 - Commitments

The Company leases its facility in West Deptford, New Jersey under an operating lease with annual rentals of $130,200 plus common area maintenance (CAM) charges. The lease, which took effect on January 1, 2008, reduced the CAM charges allowing the Company to reach their own agreements with utilities and other maintenance providers.

On January 7, 2013, the Company extended its lease agreement for a term of 7 years, expiring December 31, 2019. Under the terms of the lease, The Company will pay $132,000 per year.

	$
Next 12 Months		132,000
Next 13-24 Months		132,000
Next 25-36 Months		132,000
Next 37-48 Months		132,000
Next 49-60 Months		132,000
Thereafter		99,000

Rent expense, including related CAM charges, for the three months ended March 31, 2014 and 2013 was $40,375 and $37,878.

Note 17 – Major Customers

For the three months ended March 31, 2014, two customers each generated more than 10% of the Company’s revenue. In aggregate, sales to these customers accounted for 86% of the Company’s revenue. As of March 31, 2014, the amount due from these two customers was $1,546,548. This concentration makes the Company vulnerable to a near-term severe impact should the relationships be terminated.

For the three months ended March 31, 2013, two customers each generated more than 10% of the Company’s revenue. Sales to these customers accounted for 86% of the Company’s revenue. As of March 31, 2013, the amount due from these customers was $963,867.

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AKERS BIOSCIENCES, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements

Note 18 – Major Suppliers

For the three months ended March 31, 2014, three suppliers each accounted for more than 10% of the Company’s purchases. In aggregate, these suppliers accounted for 58% of the Company’s total purchases. As of March 31, 2014, the amount due to these three suppliers was $31,408. This makes the Company vulnerable to a near-term severe impact should the relationships be terminated.

For the three months ended March 31, 2013, two suppliers each accounted for more than 10% of the Company’s purchases. These suppliers accounted for 62% of the Company’s total purchases. As of March 31, 2013, the amount due to the suppliers was $110,196.

Note 19 – Contingencies

On November 7, 2013, the Company received a letter from the counsel of Rapid Breath Diagnostics, LLC (“RBD”) alleging, among other things, the Company entered into a purported Authorized Distributor and License Agreement with RBD which was materially altered without RBD’s consent. Additionally, RBD claims that the Company has violated certain intellectual property rights of RBD with respect to its Ketone Check and Metron products.  RBD is alleging that it has suffered $250,000 in damages and that it has development and ownership of the market use of Ketone Check for the management of neurological diseases as well as intellectual property rights to the name Metron. The Company informed RBD that the alleged agreement was not fully executed, and that the Company’s offer to enter into the agreement was void.

On January 9, 2014, the Company commenced a lawsuit in the United States Federal Court, District of New Jersey, against Rapid Breath Diagnostics, LLC and David A. Urman (collectively, “the RBD Parties”).  The Complaint requests that the Court declare the rights of the parties with respect to an alleged Distributor and License Agreement and to preliminary enjoin the RBD Parties from continuing to prosecute an arbitration filed with the American Arbitration Association with respect to the same subject matter (“the Arbitration”). Pursuant to stipulation of the parties, the Arbitration has since been discontinued in anticipation of the RBD Parties’ agreement to litigate the dispute in the court action. The Company is not able to assess its position in the court action in terms of favorable or unfavorable position and intends to vigorously defend against any counterclaims, if asserted

Note 20 - Subsequent events

On April 23, 2014, the Company agreed to settle the lawsuit filed by RBD (Note 19) for a one-time payment of $25,000, due within 10 business days of the final execution of the settlement documents. As of May 13, 2014, final execution of the settlement agreement has not occurred.

On April 24, 2014, the Company agreed to settle a lawsuit filed by David Kolasinski alleging a violation of a Service Agreement between the parties for a one-time payment of $10,000, due within 30 days of the final execution of the settlement documents and an ongoing commission payment of 2% of gross sales, less shipping, taxes and returns, beginning April 24, 2014 and ending December 10, 2018 that the Company makes to Novotek Theraputics, Inc. up to a maximum commission payment of $50,000, paid quarterly. As of May 13, 2014, final execution of the settlement agreement has not occurred.

~ 21 ~

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

This quarterly report on Form 10-Q and other reports filed by Akers Biosciences, Inc. (the “Company”) from time to time with the SEC (collectively, the “Filings”) contain or may contain forward-looking statements and information that are based upon beliefs of, and information currently available to, the Company’s management as well as estimates and assumptions made by Company’s management. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. When used in the Filings, the words “anticipate,” “believe,” “estimate,” “expect,” “future,” “intend,” “plan,” or the negative of these terms and similar expressions as they relate to the Company or the Company’s management identify forward-looking statements. Such statements reflect the current view of the Company with respect to future events and are subject to risks, uncertainties, assumptions, and other factors, including the risks relating to the Company’s business, industry, and the Company’s operations and results of operations. Should one or more of these risks or uncertainties materialize, or should the underlying assumptions prove incorrect, actual results may differ significantly from those anticipated, believed, estimated, expected, intended, or planned.

Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, the Company cannot guarantee future results, levels of activity, performance, or achievements. Except as required by applicable law, including the securities laws of the United States, the Company does not intend to update any of the forward-looking statements to conform these statements to actual results.

Our financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). These accounting principles require us to make certain estimates, judgments and assumptions. We believe that the estimates, judgments and assumptions upon which we rely are reasonable based upon information available to us at the time that these estimates, judgments and assumptions are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities as of the date of the financial statements as well as the reported amounts of revenues and expenses during the periods presented. Our financial statements would be affected to the extent there are material differences between these estimates and actual results. In many cases, the accounting treatment of a particular transaction is specifically dictated by GAAP and does not require management’s judgment in its application. There are also areas in which management’s judgment in selecting any available alternative would not produce a materially different result. The following discussion should be read in conjunction with our financial statements and notes thereto appearing elsewhere in this report.

Overview

Akers Biosciences, Inc. (“ABI,” “we” or the “Company”) develops, manufactures, and supplies rapid, point-of-care screening and testing products designed to bring health-related information directly to the patient or clinician in a time- and cost-efficient manner. ABI believes it has advanced the science of diagnostics through the development of several proprietary platform technologies that provide product development flexibility.

All of ABI’s rapid, single-use tests are performed in vitro (outside the body) and are designed to enhance patient well-being and reduce total outcome costs of healthcare. The Company’s current product offerings and pipeline products focus on delivering diagnostic assistance in a wide variety of healthcare fields/specialties, including cardiology/emergency medicine, metabolism/nutrition, neuropsychiatry, oncology and infectious diseases detection, as well as for on- and off-the-job alcohol safety initiatives.

ABI believes that low-cost, unit-use testing not only saves time and money, but allows for more frequent, near-patient testing which may save lives. We believe that ABI’s FDA-cleared rapid diagnostic tests help facilitate targeted diagnoses and real-time treatment. We also believe that ABI’s rapid diagnostic tests surpass most other current diagnostic products with their flexibility, speed, ease-of-use, readability, low cost and accuracy. In minutes, detection of disease states and medical conditions can be performed on single-patient specimens, without sacrificing accuracy.

~ 22 ~

We believe the use of rapid tests, which can be performed at the point-of-care when and where the patient is being consulted, can result in immediate diagnostic decisions and subsequent treatment regimens and is an important development in the practice of medicine. Point-of-care testing addresses today’s challenges in the healthcare industry, such as:

• cost pressures/efficiency of healthcare delivery;

• need for affordable mass screening tests for key infectious diseases, cardiac conditions, and metabolic markers;

• need for easy to use, accurate at-home tests for individuals to monitor their personal health and wellness;

• need for tools for pharmaceutical companies to monitor side effects of medicines/new agents in development; and

• public health needs in developing countries lacking basic health infrastructure.

Management’s Plans and Basis of Presentation

To date, the Company has in large part relied on equity financing to fund its operations, raising $676,068 in private placements in 2012, $2,345,024 in private placements in 2013 and $13,101,336, net of expenses, in an initial public offering on the NASDAQ Stock Exchange in 2014. Historically, the Company has experienced recurring losses and negative cash flows from operations which continued into the three months ending March 31, 2014. Management’s strategic plans include the following:

• continuing to advance the development and commercialization of the Company’s products, especially those that utilize MPC Biosensor, PIFA and seraSTAT technologies;

• continuing to strengthen and forge domestic and international relationships with well-established sales organizations with strong distribution channels in specific target markets for both our currently marketed and emerging products;

• establishing clinical protocols that support regulatory submissions and publication of data within peer-reviewed journals; and

• continuing to monitor and implement cost control initiatives to conserve cash.

Despite our plans, the Company expects to continue to incur losses from operations for the near-term and these losses could be significant for the following reasons:

• some of ABI’s distribution partnerships have been recently established or are in the process of being initiated and, therefore, consistent and historical ordering patterns have not been instituted;

• the Company continues to incur expenses related to the initial commercialization and marketing activities for METRON and VIVO, and product development (research, clinical trials, regulatory tasks) costs for its emerging products, Breath PulmoHealth “Check” rapid assays and PIFA PLUSS® Infectious Disease point-of-care tests); and

• to expand the use of its clinical laboratory products, the Company may need to invest in additional marketing support programs to increase brand awareness.

At March 31, 2014, ABI had cash of $305,809 working capital of $14,219,904, stockholders’ equity of $16,617,096 and an accumulated deficit of $82,316,726. The Company believes that its current working capital position will be sufficient to meet its estimated cash needs for at least the next 36 months. The Company closely monitors its cash balances, cash needs and expense levels.

Revenue

ABI’s total revenue for the three months ended March 31, 2014, totaled $1,173,919, a 26% decrease from the same period in 2013. The majority of the revenue decline was due to MPC products, which decreased by 20% and a decrease in licensing fee revenue. In the three months ended March 31, 2013, the Company received a one-time restricted licensing fee of $200,000 from a customer while they performed a product evaluation, otherwise the Company’s license fee revenue remained unchanged for the period ending March 31, 2014.

~ 23 ~

The decrease in MPC product revenues are primarily attributable to a decline in orders from our world-wide distributor, ChubeWorkx Guernsey Limited. During the three months ended March 31, 2014, ChubeWorkx accounted for $766,379 (2013: $919,822) of our MPC product revenue.

Domestic sales of the Company’s PIFA Heparin/PF4 Rapid Assay products were essentially flat given the restructuring of the Company’s selling resources initiated at the beginning of 2013. The Company’s dedicated technical sales account executives have moved away from a direct selling model to one that works in tandem with over 300 sales representatives of ABI’s US distribution partners, Cardinal Health (“Cardinal”) and Fisher HealthCare (“Fisher”). This reorganization and need to dedicate time and resources to building relationships with distributor representatives hampered 2013 domestic sales growth but has set the stage for an enhanced selling effort in 2014. In addition, the Company began shipping its PIFA PLUSS PF4 product line extension to Cardinal in late 2012, but the assay was just added to Fisher’s distribution agreement in January of 2014; this expansion and relationship-building initiative have already delivered a measureable increase in product trials and adoptions in the current fiscal year.

Cost of sales for the three months ended March 31, 2014 decreased by 22% compared to the same period in 2013 to $604,324 from $776,245 in 2013. Direct cost of sales remained steady at 43% of product revenue while indirect cost of sales declined to 12% for the three months ended March 31, 2014 as compared to 17% for the same period in 2013. Overall, cost of sales, as a percentage of product revenue, was 55% and 60% for the three month periods ended March 31, 2014 and 2013.

The decrease in indirect cost of sales is attributed to the significant decreases in shipping expenses, repairs and maintenance of equipment, and manufacturing supplies due to the reduced levels of production in the three months ended March 31, 2014.

ABI’s gross profit margin, as a percentage of product revenue, continued to improve, increasing to 45% for the three months ended March 31, 2014 as compared to 40% in 2013. The improvement in gross profit margin was derived from an increase in the average selling price of products in the three months ended March 31, 2014.

General and Administrative Expenses

General and administrative expenses for the three months ended March 31, 2014, totaled $653,682, which was a 122% increase as compared to $294,678 for the three months ended March 31, 2013. Our initial public offering on the NASDAQ Stock Market and the related regulatory requirements lead to significant increases in expenses for professional services, stock market and investor relations activities, staffing and management fees. These services totaled $555,739 for the period compared to $214,432 for the three months ended March 31, 2013.

Sales and Marketing Expenses

Sales and marketing expenses for the three months ended March 31, 2014 totaled $211,098, which was a 10% decrease as compared to $233,906 for the three months ended March 31, 2013. The decrease was the result of significant declines in royalties and external sales commissions that were somewhat offset by increases in internal sales commissions and consulting fees for the exploration of additional markets for our products.

Research and Development

Research and development expenses for the three months ended March 31, 2014 totaled $253,538, which was a 2% increase as compared to $247,716 for the three months ended March 31, 2013.

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The following table  illustrates research and development costs by project for the three months ended March 31, 2014 and 2013, respectively. 

	2014		2013
Asthma/pH	$	3,119	$	-
BreathScan Pro		13,716		2,254
CHUBE		1,851		2,254
H/PF4		38,893		90,070
HIV		5,451		-
Ketone/Metron		37,321		72,061
Lyophilization		54,840		6,763
Malaria		3,220		-
Malondialdehyde		-		27,026
PF4 PLUSS		786		22,517
VIVO/FReD		94,341		24,772
Total R&D Expenses:	$	253,538	$	247,716

Other Income and Expense

Other income declined for the three months ended March 31, 2014 to $17,765 from $92,253 for the same period in 2013. During the three months ended March 31, 2013, the Company recognized $91,286 in other income from the net proceeds gained from ABI’s insurer demutualizing upon receiving a payment of such amount representing our share of the demutualization as determined by the insurer. In 2014, the Company received an additional distribution of $4,669 representing its final share of the demutualization. Gains from foreign currency transactions generated $2,399 (2013: loss of $87) and interest and dividends from investments amounted to $10,697 (2013: $1,054).

Income Taxes

As of March 31, 2014, the Company does not believe any uncertain tax positions exist that would result in the Company having a liability to the taxing authorities. The Company’s policy is to classify interest and penalties related to unrecognized tax benefits, if and when required, as part of interest expense and general and administrative expense, respectively in the consolidated statement of operations.

Liquidity and Capital Resources

For the three months ended March 31, 2014 and 2013, the Company generated a net loss of $595,600 and net profit of $60,368, respectively. As of March 31, 2014 and December 31, 2013, the Company has an accumulated deficit of $82,316,726 and $81,721,126 and had cash totaling $305,809 and $103,634, respectively.

Currently, our primary focus is to expand the domestic and international distribution of our PIFA Heparin/PF4 rapid assays and support Chubeworkx international distribution of its CHUBE private-labeled breath alcohol detectors. The Company continues initial commercialization tasks for METRON and VIVO, as well as development activities for its PIFA PLUSS® Infectious Disease single-use assays, Breath Ketone “Check”, and Breath PulmoHealth “Check” products, including advancement of the steps required for FDA clearance or CE marking in the EU where necessary.

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We expect to continue to incur losses from operations for the near-term and these losses could be significant as we incur product development, clinical and regulatory activities, contract consulting and other product development and commercialization related expenses. We believe that our current working capital position will be sufficient to meet our estimated cash needs for at least 36 months following the consummation of this offering. We are closely monitoring our cash balances, cash needs and expense levels. The accompanying financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that might result in the possible inability of the Company to continue as a going concern.

We expect that our primary expenditures will be to continue development of PIFA PLUSS® Infectious Disease single-use assays, Breath Ketone “Check” and Breath PulmoHealth “Check” products and enroll patients in clinical trials to support performance claims, generate studies in peer-reviewed journals to support product marketing, and provide data for the FDA 510(k) clearance/CE certifications processes when required. We will also continue to support commercialization and marketing activities of in-line products (PIFA Heparin/PF4 rapid assays, PIFA PLUSS® PF4, breath alcohol detectors, METRON and VIVO)) in the US and internationally. Based upon our experience, clinical trial and related regulatory expenses can be significant costs. Steps to achieve commercialization of emerging products will be an ongoing and evolving process with expected improvements and possible subsequent generations being evaluated for commercialized and emerging tests. Should we be unable to achieve FDA clearance for products that require such regulatory “approval”, develop performance characteristics for rapid tests that satisfy market needs, or generate sufficient revenue from commercialized products, we would need to rely on other business or product opportunities to generate revenue and costs that we have incurred for the patents may be deemed impaired.

The Company is currently pursuing ISO certification of it quality management system which would allow the Company to meet the regulatory requirements for product sales in large, international markets (e.g. India). We may also consider acquisitions of development technologies or products, if opportunities arise that we believe fit our business strategy and would be appropriate from a capital standpoint.

Capital expenditures, primarily for production, laboratory and facility improvement costs for the year ending December 31, 2014 are anticipated to total approximately $250,000. As per the Company’s lease agreement, the owner of the facility will be handling the majority of facility upgrades, and we anticipate financing any production and laboratory capital expenditures through working capital.

The Company may enter into generally short-term consulting and development agreements primarily for testing services and in connection with clinical trials conducted as part of the Company’s development process which may include activities related to the development of technical files for FDA 510(k) clearance submissions. Such commitments at any point in time may be significant but the agreements typically contain cancellation provisions.

We lease our manufacturing facility which also contains our administrative offices. Our current lease was executed January 1, 2013 and is effective through December 31, 2019. The Company has leased this property from the current owner since 1997.

Due to recent market events that have adversely affected all industries and the economy as a whole, management has placed increased emphasis on monitoring the risks associated with the current environment, particularly the recoverability of current assets, the fair value of assets, and the Company’s liquidity. At this point in time, there has not been a material impact on the Company’s assets and liquidity. Management will continue to monitor the risks associated with the current environment and their impact on the Company’s results.

Operating Activities

ABI’s net cash consumed by operating activities totaled $832,370 during the three months ended March 31, 2014. Cash was consumed by the loss of $595,600 less non-operating gains of $4,669 plus a non-cash adjustment of $86,825 for depreciation and amortization of non-current assets. For the three months ended March 31, 2014, decreases in inventory and other assets of $478,694 provided cash, primarily related to routine changes in operating activities. A net increase in trade receivables, trade receivables – related parties and other receivables of $317,273 and a decreases in trade and other payables, trade and other payables – related parties and deferred revenue – related party of $480,347 consumed cash from operating activities.

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ABI’s net cash consumed by operating activities was $420,820 during the three months ended March 31, 2013. Cash was provided by the profit of $60,368, less non-operating gains of $91,286 plus a non-cash adjustment of $88,144 for depreciation and amortization of non-current assets. For the three months ended March 31, 2013, decreases in trade and other receivables, license fees receivable – related party, inventory, other assets and an increase in trade and other payables generated cash of $617,355. Increases in trade receivables – related party and other receivables and decreases in other payables – related party, legal settlements and deferred revenue – related party of $1,094,661 consumed cash from operating activities.

Critical Accounting Policies

We intend to utilize the extended transition period provided in Securities Act Section 7(a)(2)(B) as allowed by Section 107(b)(1) of the JOBS Act for the adoption of new or revised accounting standards as applicable to emerging growth companies. Under the JOBS Act, emerging growth companies may delay adopting new or revised accounting standards that have different effective dates for public and private companies until such time as those standards apply to private companies. We have elected to use the extended transition period for complying with these new or revised accounting standards. Since we will not be required to comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies, our financial statements may not be comparable to the financial statements of companies that comply with public company effective dates. If we were to elect to comply with these public company effective dates, such election would be irrevocable pursuant to Section 107 of the JOBS Act.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (US GAAP) requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements. The most significant accounting estimates inherent in the preparation of our financial statements include estimates associated with revenue recognition, impairment analysis of intangibles, allowances for doubtful accounts, inventory obsolescence and stock-based compensation.

The Company’s financial position, results of operations and cash flows are impacted by the accounting policies the Company has adopted. In order to get a full understanding of the Company’s financial statements, one must have a clear understanding of the accounting policies employed. A summary of the Company’s critical accounting policies follows:

Marketable Securities

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

· Level 1 – Quoted prices in active markets for identical assets or liabilities.

· Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

· Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

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The Company’s valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities. The valuation techniques used to measure the fair value of all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data.

In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments.

Trade Receivables, Trade Receivables – Related Party and Allowance for Doubtful Accounts

The carrying amounts of current trade receivables is stated at cost, net of allowance for doubtful accounts and approximate their fair value given their short term nature.

The normal credit terms extended to customers ranges between 30 and 90 days. The Company reviews all receivables that exceed terms and establishes an allowance for doubtful accounts based on management’s assessment of the collectability of trade and other receivables. A considerable amount of judgment is required in assessing the amount of allowance. The Company considers the historical level of credit losses, makes judgments about the credit worthiness of each customer based on ongoing credit evaluations and monitors current economic trends that might impact the level of credit losses in the future.

Intangible Assets

Intangible assets primarily represent legal and filing costs associated with obtaining patents on the Company’s new discoveries or acquiring patents for diagnostic technologies or tests that will enhance the Company’s product portfolio. The Company has developed or acquired several diagnostic tests that can detect the presence of various substances in a person’s breath, blood, urine and saliva. Propriety protection for the Company’s products, technology and process is important to its competitive position. To date, the Company has eleven patents from the United States Patent Office in effect (7,896,167, 8,097,171, 7,285,246, 7,837,936, 8,003,061, 8,425,859, 5,565,366, 5,827,749, D691,056, D691,057 and D691,058). Other patents are in effect in Australia through the Design Registry (348,310, 348,311 and 348,312), the Community Trade Mark in the European Union ((OHIM) 002216895-0001, 002216895-0002 and 002216895-0003) and in Japan (4,885,134 and 4,931,821). Patents are in the national phase of prosecution in many PCT participating countries. Additional proprietary technology consists of numerous different inventions. The Company intends to file additional patent applications, where appropriate, relating to new products, technologies and their use in the U.S., European and Asian markets. Management intends to protect all other intellectual property (e.g. copyrights, trademarks and trade secrets) using all legal remedies available to the Company.

Costs associated with applying for patents are capitalized as patent costs. Once the patents are approved, the respective costs are amortized over a period of twelve to seventeen years on a straight-line basis. Patent pending costs for patents that are not approved are charged to operations the year the patent is rejected.

In addition, patents may be purchased from third parties. The costs of acquiring the patent are capitalized as patent costs if it represents a future economic benefit to the Company. Once a patent is acquired it is amortized over its remaining life. The Company amortizes these costs over the shorter of the legal life of the patent or its estimated economic life using the straight-line method.

Property, Plant and Equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment. Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized net within “other income” in profit or loss.

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Recoverability of Long-lived Assets

In accordance with FASB ASC 360-10-35 “Impairment or Disposal of Long-lived Assets”, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful lives of those assets are no longer appropriate. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. No such events and circumstances have occurred during the three months ended March 31, 2014 and 2013.

The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted and without interest charges) and comparing such amount to the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived assets to their estimated salvage value in connection with the decision to dispose of such assets.

Revenue Recognition

In accordance with FASB ASC 605, the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) the collectability of the revenue is reasonably assured. Subject to these criteria, the Company recognizes revenue from product sales when title passes to the customer based on shipping terms. The Company typically does not accept returns nor offer charge backs or rebates except for certain distributors. Revenue recorded is net of any discount, rebate or sales return.

License fee revenue is recognized on a straight-line basis over the term of the license agreement.

When the Company enters into arrangements that contain more than one deliverable, the Company allocates revenue to the separate elements under the arrangement based on their relative selling prices in accordance with FASB ASC 605-25.

Stock-based Compensation

FASB ASC 718, Share-Based Payment, defines the fair-value-based method of accounting for stock-based employee compensation plans and transactions used by the Company to account for its issuances of equity instruments to record compensation cost for stock-based employee compensation plans at fair value as well as to acquire goods or services from non-employees. Transactions in which the Company issues stock-based compensation to employees, directors and consultants and for goods or services received from non-employees are accounted for based on the fair value of the equity instruments issued. The Company utilizes pricing models in determining the fair values of options and warrants issued as stock-based compensation. The Black-Scholes model is utilized to calculate the fair value of equity instruments.

Recently Issued and Adopted Accounting Pronouncements

The Company has evaluated all recently issued and adopted accounting pronouncements and believes such pronouncements do not have a material effect on the Company’s financial statements.

~ 29 ~

Quantitative and Qualitative Disclosure About Market Risk

We have limited exposure to market risks from instruments that may impact the Balance Sheets, Statements of Operations, and Statements of Cash Flows. Such exposure is due primarily to changing interest rates.

Interest Rates

The primary objective for our investment activities is to preserve principal while maximizing yields without significantly increasing risk. This is accomplished by investing excess cash in highly liquid debt and equity investments of highly rated entities which are classified as trading securities.

Off-Balance Sheet Arrangements

We have no significant known off balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

We do not hold any derivative instruments and do not engage in any hedging activities.

Item 4. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures.

Pursuant to Rule 13a- 15(b) under the Exchange Act, the Company carried out an evaluation, with the participation of the Company’s management, including the Company’s Principal Executive Officer (“PEO”) and Principal Financial Officer (“PFO”), of the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report.

As of March 31, 2014 and based upon that evaluation, because of the identification of a control deficiency described below, the Company’s PEO and PFO concluded that the Company’s disclosure controls and procedures were not effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s PEO and PFO, as appropriate, to allow timely decisions regarding required disclosure.

Management determined that the existing controls were out-of-date and primarily structured to support reporting under the International Financial Reporting Standards (“IFRS”), which the Company utilized until June 30, 2013, rather than the US Generally Accepted Accounting Procedures (“US GAAP”) required for SEC reporting. As a result, we are hiring an accounting firm to review and update our controls to meet the requirements of the SEC rules and regulations. This project will commence in the second quarter and is scheduled to be fully implemented by the end of the current fiscal year.

(b) Changes in Internal Control over Financial Reporting.

There were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we are a party to litigation and subject to claims incident to the ordinary course of business. Future litigation may be necessary to defend ourselves and our customers by determining the scope, enforceability and validity of third party proprietary rights or to establish our proprietary rights.

On November 7, 2013, the Company received a letter from counsel to Rapid Breath Diagnostics, LLC, among others (collectively, “RBD”) alleging, among other things, the violation of certain rights purported to have been granted with respect to a purported Distributor and License Agreement. Additionally, RBD claims that the Company has violated certain rights of RBD with respect to the Company’s Ketone Check and Metron products. RBD is alleging that it has suffered $250,000 in damages and that it has development and ownership of the market use of Ketone Check for the management of neurological diseases as well as rights to the name “Metron”. Notwithstanding the allegations set forth by RBD, the purported Distributor and License Agreement was never fully executed by the parties and thus is not in effect.

The Company is in settlement discussions with RBD and anticipates an expeditious resolution to this matter.

With the exception of the foregoing dispute, the Company is not involved in any disputes and does not have any litigation matters pending.

Item 1A. Risk Factors.

We believe there are no changes that constitute material changes from the risk factors previously disclosed in our Annual Report on Form 10-K, filed with the SEC on March 28, 2014.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

There were no unregistered sales of the Company’s equity securities during the quarter ended March 31, 2014, other than those previously reported in a Current Report on Form 8-K.

Item 3. Defaults Upon Senior Securities.

There has been no default in the payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company.

Item 4. Mine Safety Disclosures.

Not applicable.

Item 5. Other Information.

There is no other information required to be disclosed under this item which was not previously disclosed.

~ 31 ~

Item 6. Exhibits.

31.1	Certification by the Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)). *
31.2	Certification by the Principal Financial Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a)). *
32.1	Certification by the Principal Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
32.2	Certification by the Principal Financial Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. *
101.INS	XBRL Instance Document **
101.SCH	XBRL Taxonomy Extension Schema **
101.CAL	XBRL Taxonomy Extension Calculation Linkbase **
101.DEF	XBRL Taxonomy Extension Definition Linkbase **
101.LAB	XBRL Taxonomy Extension Label Linkbase **
101.PRE	XBRL Taxonomy Extension Presentation Linkbase **

* Filed herewith

~ 32 ~

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AKERS BIOSCIENCES, INC.
Date: May 14, 2014	By:	/s/ Raymond Akers Jr. Phd
		Name: Raymond Akers Jr. Phd
		Title: Executive Chairman (Principal Executive Officer) (Principal Financial Officer) (Principal Accounting Officer)

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EX-31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Raymond Akers Jr Phd, certify that:

1.	I have reviewed this Form 10-Q of Akers Biosciences, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 14, 2014	By:	/s/  Raymond Akers Jr. Phd
		Raymond Akers Jr. Phd
		Principal Executive Officer
		Akers Biosciences, Inc.

EX-31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 302 OF

THE SARBANES-OXLEY ACT OF 2002

I, Raymond Akers Jr Phd, certify that:

1.	I have reviewed this Form 10-Q of Akers Biosciences, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:
	a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
	b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
	c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
	d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.	The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
	a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
	b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 14, 2014	By:	/s/ Raymond Akers Jr. Phd
		Raymond Akers Jr. Pdh
		Principal Financial Officer
		Akers Biosciences, Inc.

EX-32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of Akers Biosciences, Inc. (the “Company”), on Form 10-Q for the period ended March 31, 2014, as filed with the U.S. Securities and Exchange Commission on the date hereof, I, Raymond Akers Jr, Principal Executive Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) Such Quarterly Report on Form 10-Q for the period ended March 31, 2014, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in such Quarterly Report on Form 10-Q for the period ended March 31, 2014, fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 14, 2014	By:	/s/ Raymond Akers Jr. Phd
		Raymond Akers Jr. Phd
		Principal Executive Officer Akers Biosciences, Inc.

EX-32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF

THE SARBANES-OXLEY ACT OF 2002

In connection with this Quarterly Report of Akers Biosciences, Inc. (the “Company”), on Form 10-Q for the period ended March 31, 2014, as filed with the U.S. Securities and Exchange Commission on the date hereof, I, Raymond Akers Jr, Principal Financial Officer of the Company, certify to the best of my knowledge, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that:

(1) Such Quarterly Report on Form 10-Q for the period ended March 31, 2014, fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in such Quarterly Report on Form 10-Q for the period ended March 31, 2014, fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: May 14, 2014	By:	/s/ Raymond Akers Jr. Phd
		Raymond Akers Jr. Phd
		Principal Financial Officer Akers Biosciences, Inc.

XML

Basis of Presentation and Significant Accounting Policies (Details 1)	3 Months Ended
	Mar. 31, 2014
Patents and Trademarks [Member] | Minimum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	12 years
Patents and Trademarks [Member] | Maximum [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	17 years
Customer Lists [Member]
Finite-Lived Intangible Assets [Line Items]
Finite-Lived Intangible Asset, Useful Life	5 years

XML

Share-based Payments (Details Textual) (Stock Incentive Plan [Member])	Jan. 23, 2014
Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	400,000

XML

Intangible Assets (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Amortization of Intangible Assets	$ 64,644	$ 64,644

XML

Equity (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Gross Proceeds:	$ 800,732
Broker Commission	40,037
Legal Fees	15,672
Total Expenses	55,708
Net Proceeds:	$ 745,024	$ 0

XML

Property, Plant and Equipment (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Property, Plant and Equipment [Line Items]
Depreciation	$ 22,181	$ 23,500

XML

Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Finite-Lived Intangible Assets

Intangible assets as of March 31, 2014 and December 31, 2013 and the movements for the three months then ended are as follows: 

			Distributor &
	Patents &		Customer
	Trademarks		Relationships		Totals
Cost or Deemed Cost
At December 31, 2013		3,851,494		1,270,639		5,122,133
Additions		-		-		-
Disposals		-		-		-
At March 31, 2014		3,851,494		1,270,639		5,122,133
Accumulated Amortization
At December 31, 2013		1,416,857		1,270,639		2,687,496
Amortization Charge		64,644		-		64,644
Disposals		-		-		-
At March 31, 2014		1,481,501		1,270,639		2,752,140
Net Book Value
At December 31, 2013		2,434,637		-		2,434,637
At March 31, 2014	$	2,369,993	$	-	$	2,369,993

XML

Equity (Details Textual)	0 Months Ended					3 Months Ended		1 Months Ended	0 Months Ended	1 Months Ended
	Dec. 03, 2013 USD ($)	Dec. 03, 2013 EUR (€)	Nov. 06, 2013 USD ($)	Nov. 06, 2013 EUR (€)	Nov. 15, 2013 USD ($)	Mar. 31, 2014 USD ($)	Dec. 31, 2013	Dec. 23, 2013 Private Placement [Member]	Jun. 12, 2013 Private Placement [Member] USD ($)	Jan. 23, 2014 IPO [Member]	Mar. 31, 2014 Series A Convertible Preferred Stock [Member] USD ($)	Dec. 31, 2013 Series A Convertible Preferred Stock [Member] USD ($)
Dividends Payable											$ 15,793	$ 15,793
Stock Issued During Period, Shares, New Issues								114,072	512,820	2,727,000
Stock Issued During Period, Value, New Issues						13,101,336			1,600,000
Stockholders Equity, Reverse Stock Split			156-to-1	156-to-1
Development Stage Entities, Equity Issuance, Per Share Amount			$ 10.11
Market Price Per Share			$ 0.0648	€ 0.0405
Convertible Preferred Stock, Shares Issued upon Conversion					10,000,000
Common Stock From Convertible Preferred Stock					320,512
Common Stock Pre Split Shares					50,000,000
Convertible Preferred Stock Converted to Other Securities					$ 500,000
Right To Cancel Common Stock By Parent					320,512
Convertible Preferred Stock Cancelled In Exchange Of Common Stock	58,515	58,515
Market Closing Price Per Share In Exchange Of Common Stock		€ 5.2250
Exchange Rate Per Share In Exchange Of Common Stock1	$ 1.6355
Exchange Rate Per Share In Exchange Of Common Stock2	8.5455	8.5455
Decrease In Issued And Outstanding Of Common Stock	58,515	58,515
Common Stock Reserved For Warrants						1,989	1,989

XML

Major Suppliers

3 Months Ended

Mar. 31, 2014

Major Suppliers [Abstract]

Major Suppliers

Note 18 – Major Suppliers

For the three months ended March 31, 2014, three suppliers each accounted for more than 10% of the Company’s purchases. In aggregate, these suppliers accounted for 58% of the Company’s total purchases. As of March 31, 2014, the amount due to these three suppliers was $31,408. This makes the Company vulnerable to a near-term severe impact should the relationships be terminated.

For the three months ended March 31, 2013, two suppliers each accounted for more than 10% of the Company’s purchases. These suppliers accounted for 62% of the Company’s total purchases. As of March 31, 2013, the amount due to the suppliers was $110,196.

XML

Deferred Revenue - Related Party (Details Textual)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
Number of Breathalyzers	8,120,000	4,620,000	3,500,000
Revenue Recognition Period	3 years

XML

Note Receivable - Related Parties (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Proceeds from Issuance of Convertible Preferred Stock	$ 0	$ 225,000
Preferred Stock, Shares Subscribed but Unissued		10,000,000
Related Party Notes Receivable Interest Rate		3.00%
Interest Income, Related Party		$ 1,054
Related Party Notes Receivable Maturity Date		Feb. 26, 2013

XML

Commitments (Tables)

3 Months Ended

Mar. 31, 2014

Commitments Disclosures [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases

	$
Next 12 Months	132,000
Next 13-24 Months	132,000
Next 25-36 Months	132,000
Next 37-48 Months	132,000
Next 49-60 Months	132,000
Thereafter	99,000

XML

Share-based Payments (Details1) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Employees Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Options Begnining Balance	0	1,579
Forfeited/Cancellled , Options	0	0
Expired, Options	0	0
Outstanding, Options Ending Balance	0	1,579
Outstanding, weighted Average Begnining Balance	$ 0	$ 42.12
Forfeited/Cancelled, weighted Average	$ 0	$ 0
Expired, weighted Average	$ 0	$ 0
Outstanding, weighted Average Ending Balance	$ 0	$ 42.12
Directors Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Outstanding, Options Begnining Balance	0	352
Forfeited/Cancellled , Options	0	0
Expired, Options	0	0
Outstanding, Options Ending Balance	0	352
Outstanding, weighted Average Begnining Balance	$ 0	$ 312.00
Forfeited/Cancelled, weighted Average	$ 0	$ 0
Expired, weighted Average	$ 0	$ 0
Outstanding, weighted Average Ending Balance	$ 0	$ 312.00

XML

Commitments (Details Textual) (USD $)	1 Months Ended	3 Months Ended
	Jan. 07, 2013	Mar. 31, 2014	Mar. 31, 2013
Operating Leases, Rent Expense, Net, Total		$ 130,200
Lease Agreement Term	7 years
Lease Expiration Date		Dec. 31, 2019
Operating Leases, Rent Expense		$ 40,375	$ 37,878

XML

Intangible Assets (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cost or Deemed Cost
Beginning Balance	$ 5,122,133
Additions	0
Disposals	0
Ending Balance	5,122,133
Accumulated Amortization
Beginning Balance	2,687,496
Amortization Charge	64,644	64,644
Disposals	0
Ending Balance	2,752,140
Net Book Value
Beginning Balance	2,434,637
Ending Balance	2,369,993
Patents & Trademarks [Member]
Cost or Deemed Cost
Beginning Balance	3,851,494
Additions	0
Disposals	0
Ending Balance	3,851,494
Accumulated Amortization
Beginning Balance	1,416,857
Amortization Charge	64,644
Disposals	0
Ending Balance	1,481,501
Net Book Value
Beginning Balance	2,434,637
Ending Balance	2,369,993
Distributor & Customer Relationships [Member]
Cost or Deemed Cost
Beginning Balance	1,270,639
Additions	0
Disposals	0
Ending Balance	1,270,639
Accumulated Amortization
Beginning Balance	1,270,639
Amortization Charge	0
Disposals	0
Ending Balance	1,270,639
Net Book Value
Beginning Balance	0
Ending Balance	$ 0

XML

Basis of Presentation and Significant Accounting Policies

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Note 2 - Basis of Presentation and Significant Accounting Policies

(a) Basis of Presentation

The consolidated financial statements of the Company are prepared in U.S. Dollars and in accordance with accounting principles generally accepted in the United States of America (US GAAP).

The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act enacted on April 5, 2012 and has elected to comply with certain reduced public company reporting requirements.

(b) Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes for revenue recognition, preferred stock, allowances for doubtful accounts, inventory write-downs, impairment of intangible assets and valuation of share based payments.

(c) Foreign Currency

These consolidated financial statements are presented in U.S. Dollars, which is the Company’s functional currency. All financial information presented in U.S. Dollars has been rounded to the nearest dollar. Foreign Currency Transaction Gains or Losses, resulting from loans and cash balances denominated in Foreign Currencies, are recorded in the statement of operations.

(d) Comprehensive Income/(Loss)

The Company follows Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 220 in reporting comprehensive income (loss). Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income.

(e) Cash and Cash Equivalents

Cash and cash equivalents comprise cash balances. The Company considers all highly liquid investments, which include short-term bank deposits (up to 3 months from date of deposit) that are not restricted as to withdrawal date or use, to be cash equivalents. Bank overdrafts are shown as part of trade and other payables in the balance sheet.

(f) Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, receivables and trade and other payables. The carrying value of cash and cash equivalents, trade receivables and trade and other payables approximate their fair value because of their short maturities. The Company believes the carrying amount of its note receivable and notes payable approximates their fair value based on rates and other terms.

(g) Fair Value Measurement

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

The Company’s valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities. The valuation techniques used to measure the fair value of all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data.

In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments.

(h) Trade Receivables, Trade Receivables – Related Party and Allowance for Doubtful Accounts

The carrying amounts of current trade receivables is stated at cost, net of allowance for doubtful accounts and approximate their fair value given their short term nature.

The normal credit terms extended to customers ranges between 30 and 90 days. The Company reviews all receivables that exceed terms and establishes an allowance for doubtful accounts based on management’s assessment of the collectability of trade and other receivables. A considerable amount of judgment is required in assessing the amount of allowance. The Company considers the historical level of credit losses, makes judgments about the credit worthiness of each customer based on ongoing credit evaluations and monitors current economic trends that might impact the level of credit losses in the future.

As of March 31, 2014 and December 31, 2013, allowances for doubtful accounts were $- and $-. Allowances charged for doubtful accounts amounted to $- for the three months ended March 31, 2014 and 2013.

(i) Concentration of Credit Risk

The Company is exposed to credit risk in the normal course of business primarily related to trade receivables and cash and cash equivalents.

Substantially all of the Company’s cash are maintained with Fulton Bank of New Jersey and Bank of America. The funds are insured by the Federal Deposit Insurance Corporation up to a maximum of $250,000 per account or instrument, but are otherwise unprotected. The Company placed $266,845 with Fulton Bank of New Jersey and $34,748 with Bank of America as of March 31, 2014. The Company placed $99,418 with Bank of America as of December 31, 2013.

Concentration of credit risk with respect to trade receivables exists as approximately 92% and 85% of its revenue was generated by three customers for the three months ended March 31, 2014 and the year ended December 31, 2013, respectively. These customers accounted for 98% and 97% of trade receivables as of March 31, 2014 and December 31, 2013. In order to limit such risks, the Company performs ongoing credit evaluations of its customers’ financial condition.

(j) Inventories

Inventories are measured at the lower of cost or market. The cost of inventories is based on the weighted-average principle, and includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, costs include an appropriate share of production overheads based on normal operating capacity.

(k) Property, Plant and Equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Costs include expenditures that are directly attributable to the acquisition of the asset.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized within “other income” in the statement of operations.

Depreciation is recognized in the statement of operations on the accelerated basis over the estimated useful lives of the property, plant and equipment. Leased assets are depreciated over the shorter of the lease term or their useful lives.

The estimated useful lives for the current and comparative periods are as follows:

	Useful Life
	(in years)
Plant and equipment	5-12
Furniture and fixtures	5-10
Computer equipment & software	3-5

Depreciation methods, useful lives and residual values are reviewed at each reporting date.

(l) Intangible Assets

(i) Patents and Trade Secrets

The Company has developed or acquired several diagnostic tests that can detect the presence of various substances in a person’s breath, blood, urine and saliva. Propriety protection for the Company’s products, technology and process is important to its competitive position. As of March 31, 2014, the Company has eleven patents from the United States Patent Office in effect (7,896,167, 8,097,171, 7,285,246, 7,837,936, 8,003,061, 8,425,859, 5,565,366, 5,827,749, D691,056, D691,057 and D691,058). Other patents are in effect in Australia through the Design Registry (348,310, 348,311 and 348,312), the Community Trade Mark in the European Union ((OHIM) 002216895-0001, 002216895-0002 and 002216895-0003) and in Japan (4,885,134 and 4,931,821). Patents are in the national phase of prosecution in many Patent Cooperation Treaty participating countries. Additional proprietary technology consists of numerous different inventions. The Company intends to file additional patent applications, where appropriate, relating to new products, technologies and their use in the U.S., European and Asian markets. Management intends to protect all other intellectual property (e.g. copyrights, trademarks and trade secrets) using all legal remedies available to the Company.

(ii) Patent Costs

Costs associated with applying for patents are capitalized as patent costs. Once the patents are approved, the respective costs are amortized over their estimated useful lives (maximum of 17 years) on a straight-line basis. Patent pending costs for patents that are not approved are charged to operations the year the patent is rejected.

(iii) In addition, patents may be purchased from third parties. The costs of acquiring the patent are capitalized as patent costs if it represents a future economic benefit to the Company. Once a patent is acquired it is amortized over its remaining useful life.

(iv) Other Intangible Assets

Other intangible assets that are acquired by the Company, which have definite useful lives, are measured at cost less accumulated amortization and accumulated impairment losses.

(v) Amortization

Amortization is recognized on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows: 

	Useful Life
	(in years)
Patents and trademarks	12-17
Customer lists	5

(m) Recoverability of Long-lived Assets

In accordance with FASB ASC 360-10-35 “Impairment or Disposal of Long-lived Assets”, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful lives of those assets are no longer appropriate. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. No such events and circumstances have occurred during the three months ended March 31, 2014 and 2013.

The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted and without interest charges) and comparing such amount to the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived assets to their estimated salvage value in connection with the decision to dispose of such assets.

(n) Revenue Recognition

In accordance with FASB ASC 605, the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) the collectability of the revenue is reasonably assured. Subject to these criteria, the Company recognizes revenue from product sales when title passes to the customer based on shipping terms. The Company typically does not accept returns nor offer charge backs or rebates except for certain distributors. Revenue recorded is net of any discount, rebate or sales return. No accrual for estimated sales returns and rebate incentives are necessary as of March 31, 2014 and December 31, 2013.

License fee revenue is recognized on a straight-line basis over the term of the license agreement.

When the Company enters into arrangements that contain more than one deliverable, the Company allocates revenue to the separate elements under the arrangement based on their relative selling prices in accordance with FASB ASC 605-25.

(o) Income Taxes

The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes.  Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.  Income tax expense or benefit is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.  

(p) Shipping and Handling Fees and Costs

The Company charges actual shipping plus a handling fee to customers, which amounted to $8,238 and $10,398 for the three months ended March 31, 2014 and 2013. These fees are classified as part of product revenue in the statement of operations. Shipping and other related delivery costs, including those for incoming raw materials are classified as part of the cost of net revenue, which amounted to $11,037 and $35,003 for the three months ended March 31, 2014 and 2013.

(q) Research and Development Costs

In accordance with FASB ASC 730, research and development costs are expensed when incurred.

(r) Stock-based Payments

The Company accounts for stock-based compensation under the provisions of FASB ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model.  The value of the portion of the award that is ultimately expected to vest is recognized as expense over shorter of the period over which services are to be received or the vesting period.

The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC 505-50, Equity-Based Payments to Non-Employees. Under FASB ASC 505-50, the Company determines the fair value of the stock warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.

All issuances of stock warrants or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the period which services are to be received.

(s) Basic and Diluted Earnings per Share of Common Stock

Basic earnings per common share are based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share are computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. Potential common shares that would have the effect of increasing diluted earnings per share are considered anti-dilutive, i.e. the exercise prices of the outstanding stock options were greater than the market price of the common stock.

(t) Recently Adopted Accounting Pronouncements

As of March 31, 2014 and for the three months then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements.

(u) Recently Issued Accounting Pronouncements not Yet Adopted

As of March 31, 2014, there are no recently issued standards not yet adopted which would have a material effect on the Company’s financial statements.

XML

Major Customers (Details Textual) (Two Customers [Member], USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Due From Customers	$ 1,546,548	$ 963,867
Sales [Member]
Concentration Risk, Percentage	86.00%	86.00%

XML

License Fee Receivable - Related Party (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2014
License Agreement Useful Life	3 years
Payment received from license fee	$ 450,000
Chubeworkx [Member]
License Costs	$ 1,000,000

XML

Basis of Presentation and Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Property, Plant and Equipment Useful Life

The estimated useful lives for the current and comparative periods are as follows:

	Useful Life
	(in years)
Plant and equipment	5-12
Furniture and fixtures	5-10
Computer equipment & software	3-5

Schedule of Finite-Lived Intangible Assets Useful Life

Amortization is recognized on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows: 

	Useful Life
	(in years)
Patents and trademarks	12-17
Customer lists	5

XML

Basis of Presentation and Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

(a) Basis of Presentation

The consolidated financial statements of the Company are prepared in U.S. Dollars and in accordance with accounting principles generally accepted in the United States of America (US GAAP).

The Company is an emerging growth company as the term is used in The Jumpstart Our Business Startups Act enacted on April 5, 2012 and has elected to comply with certain reduced public company reporting requirements.

Use of Estimates

(b) Use of Estimates

The preparation of financial statements in conformity with US GAAP requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation, uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in the following notes for revenue recognition, preferred stock, allowances for doubtful accounts, inventory write-downs, impairment of intangible assets and valuation of share based payments.

Foreign Currency

(c) Foreign Currency

These consolidated financial statements are presented in U.S. Dollars, which is the Company’s functional currency. All financial information presented in U.S. Dollars has been rounded to the nearest dollar. Foreign Currency Transaction Gains or Losses, resulting from loans and cash balances denominated in Foreign Currencies, are recorded in the statement of operations.

Comprehensive Income/(Loss)

(d) Comprehensive Income/(Loss)

The Company follows Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 220 in reporting comprehensive income (loss). Comprehensive income is a more inclusive financial reporting methodology that includes disclosure of certain financial information that historically has not been recognized in the calculation of net income.

Cash and Cash Equivalents

(e) Cash and Cash Equivalents

Cash and cash equivalents comprise cash balances. The Company considers all highly liquid investments, which include short-term bank deposits (up to 3 months from date of deposit) that are not restricted as to withdrawal date or use, to be cash equivalents. Bank overdrafts are shown as part of trade and other payables in the balance sheet.

Fair Value of Financial Instruments

(f) Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, receivables and trade and other payables. The carrying value of cash and cash equivalents, trade receivables and trade and other payables approximate their fair value because of their short maturities. The Company believes the carrying amount of its note receivable and notes payable approximates their fair value based on rates and other terms.

Fair Value Measurement

(g) Fair Value Measurement

The Company applies fair value accounting for all financial assets and liabilities and non-financial assets and liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, which are required to be recorded at fair value, the Company considers the principal or most advantageous market in which the Company would transact and the market-based risk measurements or assumptions that market participants would use in pricing the asset or liability, such as risks inherent in valuation techniques, transfer restrictions and credit risk. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.

The Company’s valuation techniques used to measure the fair value of money market funds and certain marketable equity securities were derived from quoted prices in active markets for identical assets or liabilities. The valuation techniques used to measure the fair value of all other financial instruments, all of which have counterparties with high credit ratings, were valued based on quoted market prices or model driven valuations using significant inputs derived from or corroborated by observable market data.

In accordance with the fair value accounting requirements, companies may choose to measure eligible financial instruments and certain other items at fair value. The Company has not elected the fair value option for any eligible financial instruments.

Trade Receivables, Trade Receivables - Related Party and Allowance for Doubtful Accounts

(h) Trade Receivables, Trade Receivables – Related Party and Allowance for Doubtful Accounts

The carrying amounts of current trade receivables is stated at cost, net of allowance for doubtful accounts and approximate their fair value given their short term nature.

The normal credit terms extended to customers ranges between 30 and 90 days. The Company reviews all receivables that exceed terms and establishes an allowance for doubtful accounts based on management’s assessment of the collectability of trade and other receivables. A considerable amount of judgment is required in assessing the amount of allowance. The Company considers the historical level of credit losses, makes judgments about the credit worthiness of each customer based on ongoing credit evaluations and monitors current economic trends that might impact the level of credit losses in the future.

As of March 31, 2014 and December 31, 2013, allowances for doubtful accounts were $- and $-. Allowances charged for doubtful accounts amounted to $- for the three months ended March 31, 2014 and 2013.

Concentration of Credit Risk

(i) Concentration of Credit Risk

The Company is exposed to credit risk in the normal course of business primarily related to trade receivables and cash and cash equivalents.

Substantially all of the Company’s cash are maintained with Fulton Bank of New Jersey and Bank of America. The funds are insured by the Federal Deposit Insurance Corporation up to a maximum of $250,000 per account or instrument, but are otherwise unprotected. The Company placed $266,845 with Fulton Bank of New Jersey and $34,748 with Bank of America as of March 31, 2014. The Company placed $99,418 with Bank of America as of December 31, 2013.

Concentration of credit risk with respect to trade receivables exists as approximately 92% and 85% of its revenue was generated by three customers for the three months ended March 31, 2014 and the year ended December 31, 2013, respectively. These customers accounted for 98% and 97% of trade receivables as of March 31, 2014 and December 31, 2013. In order to limit such risks, the Company performs ongoing credit evaluations of its customers’ financial condition.

Inventories

(j) Inventories

Inventories are measured at the lower of cost or market. The cost of inventories is based on the weighted-average principle, and includes expenditures incurred in acquiring the inventories, production or conversion costs and other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories and work in progress, costs include an appropriate share of production overheads based on normal operating capacity.

Property, Plant and Equipment

(k) Property, Plant and Equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated impairment losses. Costs include expenditures that are directly attributable to the acquisition of the asset.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment and are recognized within “other income” in the statement of operations.

Depreciation is recognized in the statement of operations on the accelerated basis over the estimated useful lives of the property, plant and equipment. Leased assets are depreciated over the shorter of the lease term or their useful lives.

The estimated useful lives for the current and comparative periods are as follows:

	Useful Life
	(in years)
Plant and equipment	5-12
Furniture and fixtures	5-10
Computer equipment & software	3-5

Depreciation methods, useful lives and residual values are reviewed at each reporting date.

Intangible Assets

(l) Intangible Assets

(i) Patents and Trade Secrets

The Company has developed or acquired several diagnostic tests that can detect the presence of various substances in a person’s breath, blood, urine and saliva. Propriety protection for the Company’s products, technology and process is important to its competitive position. As of March 31, 2014, the Company has eleven patents from the United States Patent Office in effect (7,896,167, 8,097,171, 7,285,246, 7,837,936, 8,003,061, 8,425,859, 5,565,366, 5,827,749, D691,056, D691,057 and D691,058). Other patents are in effect in Australia through the Design Registry (348,310, 348,311 and 348,312), the Community Trade Mark in the European Union ((OHIM) 002216895-0001, 002216895-0002 and 002216895-0003) and in Japan (4,885,134 and 4,931,821). Patents are in the national phase of prosecution in many Patent Cooperation Treaty participating countries. Additional proprietary technology consists of numerous different inventions. The Company intends to file additional patent applications, where appropriate, relating to new products, technologies and their use in the U.S., European and Asian markets. Management intends to protect all other intellectual property (e.g. copyrights, trademarks and trade secrets) using all legal remedies available to the Company.

(ii) Patent Costs

Costs associated with applying for patents are capitalized as patent costs. Once the patents are approved, the respective costs are amortized over their estimated useful lives (maximum of 17 years) on a straight-line basis. Patent pending costs for patents that are not approved are charged to operations the year the patent is rejected.

(iii) In addition, patents may be purchased from third parties. The costs of acquiring the patent are capitalized as patent costs if it represents a future economic benefit to the Company. Once a patent is acquired it is amortized over its remaining useful life.

(iv) Other Intangible Assets

Other intangible assets that are acquired by the Company, which have definite useful lives, are measured at cost less accumulated amortization and accumulated impairment losses.

(v) Amortization

Amortization is recognized on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use. The estimated useful lives for the current and comparative periods are as follows: 

	Useful Life
	(in years)
Patents and trademarks	12-17
Customer lists	5

Recoverability of Long-lived Assets

(m) Recoverability of Long-lived Assets

In accordance with FASB ASC 360-10-35 “Impairment or Disposal of Long-lived Assets”, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable or that the useful lives of those assets are no longer appropriate. The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. No such events and circumstances have occurred during the three months ended March 31, 2014 and 2013.

The Company determines the existence of such impairment by measuring the expected future cash flows (undiscounted and without interest charges) and comparing such amount to the carrying amount of the assets. An impairment loss, if one exists, is then measured as the amount by which the carrying amount of the asset exceeds the discounted estimated future cash flows. Assets to be disposed of are reported at the lower of the carrying amount or fair value of such assets less costs to sell. Asset impairment charges are recorded to reduce the carrying amount of the long-lived asset that will be sold or disposed of to their estimated fair values. Charges for the asset impairment reduce the carrying amount of the long-lived assets to their estimated salvage value in connection with the decision to dispose of such assets.

Revenue Recognition

(n) Revenue Recognition

In accordance with FASB ASC 605, the Company recognizes revenue when (i) persuasive evidence of a customer or distributor arrangement exists, (ii) a retailer, distributor or wholesaler receives the goods and acceptance occurs, (iii) the price is fixed or determinable, and (iv) the collectability of the revenue is reasonably assured. Subject to these criteria, the Company recognizes revenue from product sales when title passes to the customer based on shipping terms. The Company typically does not accept returns nor offer charge backs or rebates except for certain distributors. Revenue recorded is net of any discount, rebate or sales return. No accrual for estimated sales returns and rebate incentives are necessary as of March 31, 2014 and December 31, 2013.

License fee revenue is recognized on a straight-line basis over the term of the license agreement.

When the Company enters into arrangements that contain more than one deliverable, the Company allocates revenue to the separate elements under the arrangement based on their relative selling prices in accordance with FASB ASC 605-25.

Income Taxes

(o) Income Taxes

The Company follows FASB ASC 740 when accounting for income taxes, which requires an asset and liability approach to financial accounting and reporting for income taxes.  Deferred income tax assets and liabilities are computed annually for temporary differences between the financial statements and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.  Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.  Income tax expense or benefit is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.  

Shipping and Handling Fees and Costs

(p) Shipping and Handling Fees and Costs

The Company charges actual shipping plus a handling fee to customers, which amounted to $8,238 and $10,398 for the three months ended March 31, 2014 and 2013. These fees are classified as part of product revenue in the statement of operations. Shipping and other related delivery costs, including those for incoming raw materials are classified as part of the cost of net revenue, which amounted to $11,037 and $35,003 for the three months ended March 31, 2014 and 2013.

Research and Development Costs

(q) Research and Development Costs

In accordance with FASB ASC 730, research and development costs are expensed when incurred.

Stock-based Payments

(r) Stock-based Payments

The Company accounts for stock-based compensation under the provisions of FASB ASC 718, Compensation—Stock Compensation, which requires the measurement and recognition of compensation expense for all stock-based awards made to employees and directors based on estimated fair values on the grant date. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model.  The value of the portion of the award that is ultimately expected to vest is recognized as expense over shorter of the period over which services are to be received or the vesting period.

The Company accounts for stock-based compensation awards to non-employees in accordance with FASB ASC 505-50, Equity-Based Payments to Non-Employees. Under FASB ASC 505-50, the Company determines the fair value of the stock warrants or stock-based compensation awards granted as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable.

All issuances of stock warrants or other equity instruments to non-employees as consideration for goods or services received by the Company are accounted for based on the fair value of the equity instruments issued. The Company estimates the fair value of stock-based awards on the date of grant using the Black-Scholes model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the period which services are to be received.

Basic and Diluted Earnings per Share of Common Stock

(s) Basic and Diluted Earnings per Share of Common Stock

Basic earnings per common share are based on the weighted average number of shares outstanding during the periods presented. Diluted earnings per share are computed using the weighted average number of common shares plus dilutive common share equivalents outstanding during the period. Potential common shares that would have the effect of increasing diluted earnings per share are considered anti-dilutive, i.e. the exercise prices of the outstanding stock options were greater than the market price of the common stock.

Recently Adopted Accounting Pronouncements

(t) Recently Adopted Accounting Pronouncements

As of March 31, 2014 and for the three months then ended, there were no recently adopted accounting pronouncements that had a material effect on the Company’s financial statements.

Recently Issued Accounting Pronouncements not Yet Adopted

(u) Recently Issued Accounting Pronouncements not Yet Adopted

As of March 31, 2014, there are no recently issued standards not yet adopted which would have a material effect on the Company’s financial statements.

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Equity (Details 1) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Gross Proceeds From Issuance Initial Public Offering	$ 14,998,500
Payments of Stock Issuance Costs	1,897,164
Proceeds from Issuance Initial Public Offering	13,101,336	0
Legal Accounting Expenses [Member]
Payments of Stock Issuance Costs	393,298
Printing Document Prep [Member]
Payments of Stock Issuance Costs	62,101
Registration Expenses [Member]
Payments of Stock Issuance Costs	55,946
Road Show Expenses [Member]
Payments of Stock Issuance Costs	41,764
Underwriter Commission [Member]
Payments of Stock Issuance Costs	1,049,895
Underwriter Expenses [Member]
Payments of Stock Issuance Costs	149,985
Aegis Legal Fees [Member]
Payments of Stock Issuance Costs	80,000
Aegis Registration Expenses [Member]
Payments of Stock Issuance Costs	7,500
Aegis Miscellaneous Expenses [Member]
Payments of Stock Issuance Costs	36,675
Aegis Road Show Expenses [Member]
Payments of Stock Issuance Costs	20,000
Underwriter And Aegis Expenses [Member]
Payments of Stock Issuance Costs	1,344,055
Akers Biosciences Expenses [Member]
Payments of Stock Issuance Costs	$ 553,109

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Inventories (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Raw Materials	$ 320,820	$ 299,464
Sub-Assemblies	326,084	335,229
Finished Goods	50,204	422,411
Reserve for Obsolescence	(32,000)	(32,000)
Inventory, Net, Total	$ 665,108	$ 1,025,104

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Marketable Securities (Tables)

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Marketable Securities

The Company had no marketable securities as of December 31, 2013.

	2014
			Accrued		Unrealized		Unrealized		Fair
	Cost		Income		Gains		Losses		Value
Level 1:
Money market funds	$	107,258	$	2	$	-	$	-	$	107,260
Mutual funds		748,088		461		258		-		748,807
US agency securities		300,000		494		-		(378)		300,116
Certificates of deposits		5,145,000		3,739		-		(8,168)		5,140,571
Corporate securities		600,000		422		-		(2,862)		597,560
Municipal securities		5,600,145		3,375		276		-		5,603,796
Total Level 1:		12,500,491		8,493		534		(11,408)		12,498,110
Total:	$	12,500,491	$	8,493	$	534	$	(11,408)	$	12,498,110

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Inventories (Tables)

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Schedule of Inventory, Current

Inventories at March 31, 2014 and December 31, 2013 consists of the following categories:

	2014		2013
Raw Materials	$	320,820	$	299,464
Sub-Assemblies		326,084		335,229
Finished Goods		50,204		422,411
Reserve for Obsolescence		(32,000)		(32,000)
	$	665,108	$	1,025,104

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Nature of Business

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business

Note 1 – Nature of Business

(a) Reporting Entity

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all the information and disclosures required by GAAP for complete financial statements. Operating results for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for the year ending December 31, 2014. In the opinion of management, the unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring adjustments, considered necessary for a fair presentation. These unaudited condensed consolidated financial statements and related notes should be read in conjunction with the consolidated financial statements and notes for the year ended December 31, 2013 included in Form 10-K of Akers Biosciences, Inc. (“the Company”).

The consolidated financial statements include two dormant subsidiaries, Akers Acquisition Sub, Inc. and Bout Time Marketing Corporation. All material intercompany transactions have been eliminated upon consolidation.

(b) Nature of Business

The Company commenced research and development operations in September 1989, and until 2005 had devoted substantially all its efforts to establishing the new business.

The Company’s primary focus is the development and sale of disposable diagnostic testing devices that can be performed in minutes, to facilitate time sensitive therapeutic decisions. The Company’s main products are a disposable breathalyzer test that measures the blood alcohol content of the user, a rapid test detecting the antibody causing an allergic reaction to Heparin and a disposable breathalyzer test that measures Free Radical activity in the human body. When the Company enters into an agreement with a new distributor it requires an upfront licensing fee to be paid for the right to sell the Company’s products in specific markets.

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Property, Plant and Equipment (Tables)

3 Months Ended

Mar. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Property, plant and equipment as of March 31, 2014 and December 31, 2013 are as follows:

	2014		2013
Computer Equipment	$	100,405	$	100,405
Computer Software		22,930		22,930
Office Equipment		50,049		50,049
Furniture & Fixtures		29,939		29,939
Machinery & Equipment		1,098,503		1,098,503
Molds & Dies		649,647		649,647
Leasehold Improvements		222,594		222,594
		2,174,067		2,174,067
Less
Accumulated Depreciation		1,928,927		1,906,746
	$	245,140	$	267,321

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Basis of Presentation and Significant Accounting Policies (Details Textual) (USD $)	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Allowance for Doubtful Accounts Receivable	$ 0	$ 0
Allowance for Doubtful Accounts Receivable, Write-offs	0	0
Shipping, Handling and Transportation Costs	8,238	10,398
Cost of Sales [Member]
Shipping, Handling and Transportation Costs	11,037	35,003
Customer Concentration Risk [Member]
Concentration Risk, Percentage	98.00%	97.00%
Accounts Receivable [Member]
Concentration Risk, Percentage	92.00%	85.00%
Fulton Bank [Member]
Cash	266,845
Bank of America [Member]
Cash	34,748	99,418
Maximum [Member]
Cash, FDIC Insured Amount	$ 250,000

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Share-based Payments (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options And Warrants Outstanding	1,989
Warrants Outstanding weighted average life remaining	29 days
Warrants Outstanding weighted average Exercise Price	$ 71.76
Stock Options And Warrants Outstanding Exercisable	1,989
Exercisable Weighted Average Exercise Price	$ 71.76
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options And Warrants Price Per Share	$ 71.76
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Options And Warrants Price Per Share	$ 71.76

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Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013
Current Assets
Cash	$ 305,809	$ 103,634
Marketable Securities	12,498,110	0
Trade Receivables (net)	138,601	118,404
Trade Receivables - Related Party	1,475,767	1,209,388
Other Receivables	34,635	748,962
Inventories (net)	665,108	1,025,104
Other Current Assets	45,192	163,890
Total Current Assets	15,163,222	3,369,382
Non-Current Assets
Property, plant and equipment, net	245,140	267,321
Intangible assets, net	2,369,993	2,434,637
Other Assets	4,282	4,282
Total Non-Current Assets	2,619,415	2,706,240
Total Assets	17,782,637	6,075,622
Current Liabilities
Trade and Other Payables	609,985	1,000,413
Trade and Other Payables - Related Party	0	6,586
Short-Term Notes Payable - Related Party	0	307,500
Deferred Revenue - Related Party	333,333	333,333
Total Current Liabilities	943,318	1,647,832
Non-Current Liabilities
Deferred Revenue - Related Party	222,223	305,556
Total Non-Current Liabilities	222,223	305,556
Total Liabilities	1,165,541	1,953,388
EQUITY
Convertible Preferred Stock, No par value, 50,000,000 shares authorized, no shares issued and outstanding as of March 31, 2014 and December 31, 2013	0	0
Common Stock, No par value, 500,000,000 shares authorized, 4,894,837 and 2,167,837 issued and outstanding as of March 31, 2014 and December 31, 2013	98,944,696	85,843,360
Accumulated Deficit	(82,316,726)	(81,721,126)
Accumulated Comprehensive Losses	(10,874)	0
Total Equity	16,617,096	4,122,234
Total Liabilities and Equity	$ 17,782,637	$ 6,075,622

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Property, Plant and Equipment (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	$ 2,174,067	$ 2,174,067
Accumulated Depreciation	1,928,927	1,906,746
Property, Plant and Equipment, Net	245,140	267,321
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	100,405	100,405
Computer Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	22,930	22,930
Office Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	50,049	50,049
Furniture & Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	29,939	29,939
Machinery & Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	1,098,503	1,098,503
Molds & Dies [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	649,647	649,647
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment	$ 222,594	$ 222,594

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Condensed Consolidated Statement of Changes in Stockholder's Equity (Prenthetical) (USD $)	3 Months Ended
	Mar. 31, 2014
Offering costs	$ 1,897,164

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Related Party Transactions (Details Textual) (USD $)	0 Months Ended			1 Months Ended	3 Months Ended		12 Months Ended		0 Months Ended		3 Months Ended		1 Months Ended	0 Months Ended	3 Months Ended		0 Months Ended	3 Months Ended
	Jan. 15, 2014	Jun. 13, 2013	Jun. 14, 2013	Jun. 19, 2012	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Dec. 23, 2013	Jun. 14, 2013 Third Party Selling Price [Member]	Jan. 12, 2011 Nicolette Consulting Group Limited [Member]	Mar. 31, 2014 Nicolette Consulting Group Limited [Member]	Mar. 31, 2013 Nicolette Consulting Group Limited [Member]	Mar. 17, 2010 BreathScan International Ltd [Member]	Jun. 14, 2013 Chubeworkx [Member]	Mar. 31, 2014 Chubeworkx [Member]	Mar. 31, 2013 Chubeworkx [Member]	Aug. 05, 2013 Mr. Rauch's [Member]	Mar. 31, 2014 DataSys Solutions, LLC [Member]	Mar. 31, 2013 DataSys Solutions, LLC [Member]	Dec. 31, 2013 DataSys Solutions, LLC [Member]
Related Party Transaction [Line Items]
Consulting Fees Per Month										$ 27,917							$ 5,625
Maximum Reimbursement For Monthly Expenses										10,000
Reimbursement Expenses In Consulting Agreement											30,000	30,000
Percentage Of Equity Stake													20.00%
Sale Of Equity Interest		100,000
Exclusive License And Supply Agreement Term				3 years
License Fees Received					1,000,000
License and Services Revenue					0	200,000									83,333	83,333
Stock Issued During Period, Shares, New Issues									80,000,000					512,820
Stock Issued During Period, Value, New Issues					13,101,336									1,600,000
Percentage of Sale Of Equity Interest														20.00%
Allocated To Sale Of Equity Interest			100,000
Proceeds from Issuance of Common Stock									1,600,000
Due to Related Parties, Current																		0		6,586
Short-term Debt, Total								307,500
Debt Instrument, Interest Rate, Stated Percentage								5.00%
Interest Expense, Debt	969
Accounts Receivable, Related Parties, Current					1,475,767		1,209,388
Unsecured Loan Term					90 days		90 days
Revenue from Related Parties					766,379	919,822
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party					$ 195,002	$ 83,751					$ 183,752	$ 83,751						$ 11,250	$ 0

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Share-based Payments (Tables)

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Warrants, Activity

The warrants expire March 18, 2015.

	2014				2013
			Weighted				Weighted
			Average				Average
	Warrants		Exercise Price		Warrants		Exercise Price
Outstanding at January 1		1,989	$	71.76		47,211	$	48.54
Cancelled during year		-		-		-		-
Expired during year		-		-		-		-
Outstanding at March 31		1,989	$	71.76		47,211	$	48.54

Schedule of Share-based Compensation, Stock Options, Activity

Qualified option holders may exercise their options at their discretion. Each option granted may be exchanged for a prescribed number of shares of common stock.

Employee's Plan	2014				2013
			Weighted				Weighted
			Average				Average
	Options		Exercise Price		Options		Exercise Price
Outstanding at January 1		-	$	-		1,579	$	42.12
Forfeited during year		-		-		-		-
Expired during year		-		-		-		-
Outstanding at March 31		-	$	-		1,579	$	42.12

Director's Plan	2014				2013
			Weighted				Weighted
			Average				Average
	Options		Exercise Price		Options		Exercise Price
Outstanding at January 1		-	$	-		352	$	312.00
Cancelled during year		-		-		-		-
Expired during year		-		-		-		-
Outstanding at March 31		-	$	-		352	$	312.00

Summary of Warrants and Stock Options Outstanding and Exercisable

A summary of warrants and stock options outstanding and exercisable as of March 31, 2014 follows:

							Outstanding				Excercisable
							Wgtd Avg		Wgtd Avg				Wtgt Avg
							Life		Exercise				Exercise
	Low		High		Shares		Remaining		Price		Shares		Price
Warrants	$	71.76	$	71.76		1,989		0.98	$	71.76		1,989	$	71.76

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Subsequent events (Details Textual) (Subsequent Event [Member], USD $)	1 Months Ended
	Apr. 23, 2014	Apr. 24, 2013	Apr. 24, 2014
Subsequent Event [Member]
Subsequent Event [Line Items]
Litigation Settlement, Amount	$ 25,000	$ 10,000
Percentage Of Commission Payment		2.00%
Payment Of Commission			$ 50,000

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Related Party Transactions

3 Months Ended

Mar. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

Note 15 - Related Party Transactions

On January 12, 2011, the Company entered into a consulting agreement with Nicolette Consulting Group Limited (NCG) for a period of three years under which the Company must pay NCG $27,917 per month in fees and up to $10,000 in reimbursement for monthly expenses ($30,000 and $30,000 for three months ended March 31, 2014 and 2013) for the services of Mr. Thomas A. Nicolette as President and Chief Executive Officer of the Company. The consulting agreement was extended through February 11, 2014 on December 23, 2013 and extended through March 31, 2014 on March 15, 2014. Mr. Nicolette has decided to step down from the Board and resigned from the Company effective March 28, 2014. There are no fees owing to NCG as of March 31, 2014 and December 31, 2013.

On March 17, 2010, in exchange for an exclusive licensing agreement, ABI received a 20 percent equity stake in BreathScan International Ltd (BIL). During 2012, BreathScan International Limited changed its name to en(10) Guernsey Limited (“en(10)”). Mr. Nicolette, the then President and Chief Executive Officer of the Company, was also appointed to en(10)’s Board of Directors. The equity stake is accounted for using the equity method of accounting in accordance with the Financial Accounting Standards Board Accounting Standards Codification. The equity investment was initially recorded at cost, which was nil. During the three months ended March 31, 2013 no profit or loss is recorded for en(10)’s results as en(10) recorded a net loss and the Company is not required to equity account any losses in excess of its carrying value on the books. On June 13, 2013 the Company sold its interest in en(10) to ChubeWorkx for $100,000 and Mr. Nicolette resigned from en(10)’s Board of Directors.

On June 19, 2012, the Company entered into a 3 year exclusive License & Supply Agreement with Chubeworkx Guernsey Limited (as successor to SONO International Limited) (“Chubeworkx”) for the purchase and distribution of ABI’s proprietary breathalyzers outside North America. Chubeworkx paid a licensing fee of $1,000,000, of which $83,333 was recognized as income for the three months ended March 31, 2014 and 2013, with the deferral to be recognized over the remaining term of the agreement (Note 5).

On June 13, 2013, the Company announced an expansion of the License and Supply Agreement with Chubeworkx to include worldwide marketing and distribution of the “Be CHUBE” program using the Company’s breathalyzer.

On June 14, 2013, the Company announced that Chubeworkx has agreed to subscribe for 512,820 new common shares in the Company for a total price of $1,600,000. The proceeds were received by the Company on June 14, 2013.

In accordance with FASB ASC 605-25, Revenue Recognition, Multiple-Element Arrangements, since the Amended License and Supply Agreement with Chubeworks was entered into simultaneously with the sale of the Company’s 20% interest in en(10) to Chubeworks and Chubeworks purchase of 512,820 shares of the Company’s common stock, the Company evaluated the separate agreements as a single arrangement with multiple deliverables in considering whether there were one or more units of accounting. The three arrangements were considered to be separate units of accounting since the three transactions have value to Chubeworks on a stand-alone basis and the transactions were consummated with no right of return. The entire consideration of the three arrangements was allocated at the inception of the arrangements on the basis of their relative selling price. The proceeds of $1,600,000 were allocated to the sale of the 80 million shares of the Company’s common stock based on third party selling price. The third party selling price was based on the selling price of the stock on the AIM Market of the London Stock Exchange on date of the arrangement. The Amended License and Supply agreement was allocated zero value based on the Company’s best estimate of the selling price for that deliverable. This best estimate was based on the fact that the Company and Chubeworks are in the process of developing an appropriate marketing plan for the region and that there is no current active market for the Company’s CHUBE products in the expanded region. $100,000 of the proceeds were allocated to the sale of the Company’s 20% interest in en(10) based on the Company’s best estimate of the selling price for this deliverable. This best estimate was based on the negotiation of the sale with Chubeworks.

On August 5, 2013, the Board of Directors appointed Gary M Rauch, the principle of DataSys Solutions, LLC (DS), as the Corporate Treasurer. The Company entered into a consulting agreement with DS on January 1, 2011, with a term of three years, under which the Company agreed to pay $5,625 per month for Mr. Rauch’s services as Controller of the Company. The total amount of fees accrued for DS as of March 31, 2014 and December 31, 2013 was $- and $6,586 and is shown as Trade and Other Payables – Related Party in the Consolidated Balance Sheet. On March 18, 2014, the Board of Directors approved the appointment of Mr. Rauch as Vice President of Finance, retroactive to February 2, 2014, and he became an employee of the Company.

On December 23, 2013, the Company entered into a short-term bridge loan with Nicolette Consulting Group for $307,500, payable on January 15, 2014 with a 5% per annum interest rate. The transaction was recorded as a Short-Term Notes Payable – Related Party. The loan, with interest amounting to $969, was paid in full on January 15, 2014.

Trade receivables – related party as of March 31, 2014 and December 31, 2013 were amounts due from Chubeworkx Guernsey Limited, a major shareholder of the Company, of $1,475,767 and $1,209,388. The amount due is non-interest bearing, unsecured and has a term of 90 days generally.

Product revenue – related parties for the three months ended March 31, 2014 and 2013 were $766,369 and $919,822 from Chubeworkx Guernsey Limited, a major shareholder of the Company.

Administrative expenses – related parties for the three months ended March 31, 2014 and 2013 were $183,752 and $83,751 for Nicolette Consulting Group and $11,250 and $- for DataSys Solutions.

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Equity (Tables)

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Schedule Of Proceeds From Issuance Of Private Placement [Table Text Block]

The expenses related to this private placement are detailed below:

	$	$
Gross Proceeds:		800,732
Broker Commission	40,037
Legal Fees	15,672
Total Expenses		55,708
Net Proceeds:		745,024

Schedule Of Proceeds From Initial Public Offering [Table Text Block]

The expenses related to this public offering are as follows:

	$	$
Gross Proceeds:		14,998,500
Underwriter/Aegis Expenses
Underwriter Commission	1,049,895
Underwriter Expenses	149,985
Aegis Legal Fees	80,000
Aegis Registration Expenses	7,500
Aegis Miscellaneous Expenses	36,675
Aegis Road Show Expenses	20,000
Total		1,344,055
Akers Biosciences Expenses
Legal & Accounting Expenses	393,298
Printing & Document Prep	62,101
Registration Expenses	55,946
Road Show Expenses	41,764
Total		553,109
Net Procceds:		13,101,336

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Major Customers

3 Months Ended

Mar. 31, 2014

Major Customers [Abstract]

Major Customers

Note 17 – Major Customers

For the three months ended March 31, 2014, two customers each generated more than 10% of the Company’s revenue. In aggregate, sales to these customers accounted for 86% of the Company’s revenue. As of March 31, 2014, the amount due from these two customers was $1,546,548. This concentration makes the Company vulnerable to a near-term severe impact should the relationships be terminated.

For the three months ended March 31, 2013, two customers each generated more than 10% of the Company’s revenue. Sales to these customers accounted for 86% of the Company’s revenue. As of March 31, 2013, the amount due from these customers was $963,867.

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Condensed Consolidated Cash Flow Statements (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities
Net income/(loss) for the period	$ (595,600)	$ 60,368
Adjustments to reconcile net income/(loss) to net cash used by operating activities:
Provisions for bad debts	0	0
Depreciation and amortization	86,825	88,144
Gain from demutualization of insurer	(4,669)	(91,286)
Changes in assets and liabilities
(Increase)/decrease in trade receivables	(20,197)	4,427
Increase in trade receivables - related party	(266,379)	(908,176)
Increase in other receivables	(30,697)	(21,916)
Decrease in license fees receivable - related party	0	450,000
Decrease in inventories	359,996	74,464
Decrease in other assets	118,698	15,588
Increase/(decrease) in trade and other payables	(390,428)	72,876
Decrease in other payables - related party	(6,586)	(32,293)
Decrease in legal settlement liabilities	0	(48,943)
Decrease in deferred revenue - related party	(83,333)	(83,333)
Net cash used in operating activities	(832,370)	(420,080)
Cash flows from investing activities
Purchases of property, plant and equipment	0	(7,726)
Purchases of makertable securities	(12,508,984)	0
Proceeds from demutualization of insurance carrier	4,669	91,286
Net cash provided by/(used in) investing activities	(12,504,315)	83,560
Cash flows from financing activities
Proceeds from note receivable - related party for Series A Convertible Preferred Stock	0	225,000
Payment of short-term note payable - related party	(307,500)	0
Proceeds from other receivable for London Private Placement	745,024	0
Net proceeds from issuance of common stock in initial public offering	13,101,336	0
Net cash provided by financing activities	13,538,860	225,000
Net increase/(decrease) in cash and cash equivalents	202,175	(111,520)
Cash and cash equivalents at beginning of period	103,634	633,022
Cash and cash equivalents at end of period	305,809	521,502
Supplemental Sechedule of Non-Cash Financing and Investing Activities
Unrealized losses on marketable securities	$ (10,874)	$ 0

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Condensed Consolidated Balance Sheets (Prenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Preferred Stock, No Par Value	$ 0	$ 0
Preferred Stock, Shares Authorized	50,000,000	50,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Common Stock, No Par Value	$ 0	$ 0
Common Stock, Shares Authorized	500,000,000	500,000,000
Common Stock, Shares, Issued	4,894,837	2,167,837
Common Stock, Shares, Outstanding	4,894,837	2,167,837

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Deferred Revenue - Related Party

3 Months Ended

Mar. 31, 2014

Deferred Revenue Disclosure [Abstract]

Deferred Revenue - Related Party

Note 10 - Deferred Revenue – Related Party

Deferred revenue represents the unearned revenue from the 3-year exclusive License and Supply Agreement with Chubeworkx Guernsey Limited (Note 15) for the purchase and distribution of the Company’s proprietary breathalyzer that was signed in June 2012. The first order for the proprietary breathalyzers was received in December 2012 for 3,500,000 units and additional orders were received in 2013 totaling 4,620,000 units. As of March 31, 2014, 8,120,000 units have been shipped. The license revenue is being recognized monthly on a straight line basis over the 3-year term of the agreement.

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Document And Entity Information	3 Months Ended
	Mar. 31, 2014	May 13, 2014
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Trading Symbol	AKER
Entity Common Stock, Shares Outstanding		4,894,837
Entity Registrant Name	Akers Biosciences Inc
Entity Central Index Key	0001321834
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company

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Share-based Payments

3 Months Ended

Mar. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Payments

Note 11 - Share-based Payments

(a) Stock Warrants

The Company has issued warrants to various employees, consultants and members of the Board of Directors of the Company for their services either in connection with the Company’s ongoing efforts to raise capital or the development of the Company’s products. In addition, the Company has granted warrants to lenders in connection with the issuance of debt. Each warrant granted may be exchanged for a prescribed number of shares of common stock. The warrants expire March 18, 2015.

	2014				2013
			Weighted				Weighted
			Average				Average
	Warrants		Exercise Price		Warrants		Exercise Price
Outstanding at January 1		1,989	$	71.76		47,211	$	48.54
Cancelled during year		-		-		-		-
Expired during year		-		-		-		-
Outstanding at March 31		1,989	$	71.76		47,211	$	48.54

On January 23, 2014, upon effectiveness of the registration statement filed with the SEC, the Company adopted the 2013 Stock Incentive Plan (the “Plan”) which will provide for the issuance of up to 400,000 shares. The purpose of the Plan is to provide additional incentive to those officers, employees, consultants and non-employee directors of the Company and its parents, subsidiaries and affiliates whose contributions are essential to the growth and success of the Company’s business.

The 2013 Plan may be administered by the board or a board-appointed committee. Eligible recipients of option awards are employees, officers, consultants or directors (including non-employee directors) of the Company or of any parent, subsidiary or affiliate of the Company. The board has the authority to grant to any eligible recipient any options, restricted stock or other awards valued in whole or in part by reference to, or otherwise based on, our common stock.

(b) Stock options

Qualified option holders may exercise their options at their discretion. Each option granted may be exchanged for a prescribed number of shares of common stock.

Employee's Plan	2014				2013
			Weighted				Weighted
			Average				Average
	Options		Exercise Price		Options		Exercise Price
Outstanding at January 1		-	$	-		1,579	$	42.12
Forfeited during year		-		-		-		-
Expired during year		-		-		-		-
Outstanding at March 31		-	$	-		1,579	$	42.12

Director's Plan	2014				2013
			Weighted				Weighted
			Average				Average
	Options		Exercise Price		Options		Exercise Price
Outstanding at January 1		-	$	-		352	$	312.00
Cancelled during year		-		-		-		-
Expired during year		-		-		-		-
Outstanding at March 31		-	$	-		352	$	312.00

The options and warrants issued under the above three plans were valued using a Black Scholes option pricing model on the date of measurement. There were no options or warrants granted for the three months ended March 31, 2014 and 2013.

A summary of warrants and stock options outstanding and exercisable as of March 31, 2014 follows:

							Outstanding				Excercisable
							Wgtd Avg		Wgtd Avg				Wtgt Avg
							Life		Exercise				Exercise
	Low		High		Shares		Remaining		Price		Shares		Price
Warrants	$	71.76	$	71.76		1,989		0.98	$	71.76		1,989	$	71.76

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Condensed Consolidated Statements of Operations and Comprehensive Income/(Loss) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Revenues:
Product Revenue	$ 324,207	$ 382,148
Product Revenue - Related party	766,379	919,822
License Revenue	0	200,000
License Revenue - Related party	83,333	83,333
Total Revenue	1,173,919	1,585,303
Cost of Sales:
Product Cost of Sales	(604,323)	(776,245)
Gross Profit	569,596	809,058
Administrative Expenses	458,680	210,927
Administrative Expenses - Related parties	195,002	83,751
Sales and Marketing Expenses	211,098	233,906
Research and Development Expenses	253,538	247,716
Amortization of Non-Current Assets	64,643	64,643
Loss from Operations	(613,365)	(31,885)
Other (Income)/Expenses
Foreign Currency Transaction (Income)/Expense	(2,399)	87
Gain from demutualization of insurance carrier	(4,669)	(91,286)
Interest and Dividend Income	(10,697)	(1,054)
Total Other Income	(17,765)	(92,253)
Income/(Loss) Before Income Taxes	(595,600)	60,368
Income Tax Benefit	0	0
Net Income/(Loss)	(595,600)	60,368
Other Comprehensive Loss
Unrealized Losses on Marketable Securities	(10,874)	0
Total Other Comprehensive Loss	(10,874)	0
Comprehensive Income/(Loss)	$ (606,474)	$ 60,368
Basic & diluted earnings/(loss) per common share	$ (0.14)	$ 0.05
Weighted average basic & diluted common shares outstanding	4,197,937	1,278,948

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License Fee Receivable - Related Party

3 Months Ended

Mar. 31, 2014

License Fee Receivable Related Party [Abstract]

License Fee Receivable Related Party

Note 5 - License Fee Receivable – Related Party

On June 19, 2012, the Company entered into a 3-year exclusive License & Supply Agreement with Chubeworkx Guernsey Limited (as a successor to SONO International Limited) (“Chubeworkx”) for the purchase and distribution of the Company’s proprietary breathalyzers outside North America (Note 15). Chubeworkx agreed to pay a licensing fee of $1,000,000. The final payment of $450,000 was received on March 6, 2013.

On June 12, 2013, Chubeworkx became a shareholder of the Company (Note 12)

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Note Receivable - Related Parties

3 Months Ended

Mar. 31, 2014

Note Receivable Related Parties Abstract [Abstract]

Note Receivable Related Parties

Note 4 - Note Receivable – Related Parties

The note of $225,000 was issued to the Company in connection with the subscription of 10,000,000 series A convertible preferred stock entered into on September 14, 2012. It is due September 14, 2027 and has an interest rate of 3% per annum. For the three months ended March 31, 2013, interest income of $1,054 was recorded. The note was fully settled in cash on February 26, 2013.

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Commitments

3 Months Ended

Mar. 31, 2014

Commitments Disclosures [Abstract]

Commitments

Note 16 - Commitments

The Company leases its facility in West Deptford, New Jersey under an operating lease with annual rentals of $130,200 plus common area maintenance (CAM) charges. The lease, which took effect on January 1, 2008, reduced the CAM charges allowing the Company to reach their own agreements with utilities and other maintenance providers.

On January 7, 2013, the Company extended its lease agreement for a term of 7 years, expiring December 31, 2019. Under the terms of the lease, The Company will pay $132,000 per year.

	$
Next 12 Months	132,000
Next 13-24 Months	132,000
Next 25-36 Months	132,000
Next 37-48 Months	132,000
Next 49-60 Months	132,000
Thereafter	99,000

Rent expense, including related CAM charges, for the three months ended March 31, 2014 and 2013 was $40,375 and $37,878.

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Equity

3 Months Ended

Mar. 31, 2014

Equity [Abstract]

Equity

Note 12 - Equity

The holders of common shares are entitled to one vote per share at meetings of the Company. Holders of Series A convertible preferred shares are entitled to five votes per share at meetings of the Company.

At March 31, 2014 and December 31, 2013, the Company has an undeclared dividend due to Series A Convertible Preferred shareholders in the amount of $15,793.

On June 12, 2013 the Company, in a private placement to ChubeWorkx, issued 512,820 common shares for $1,600,000.

On August 8, 2013, the Company filed a registration statement with the Security and Exchange Commission seeking authority to begin trading the Company’s common shares on the NASDAQ Stock Exchange (“NASDAQ”).

On November 6, 2013, the Company approved a 156-to-1 reverse stock split of the Company’s common shares to raise the price per share to $10.11 as calculated using the November 6, 2013 closing AIM London Stock Exchange (“LSE”) market price of £0.0405 or $0.0648 per share to facilitate the initial public offering on NASDAQ. All shares and per share amounts in the consolidated financial statements have been adjusted to give retroactive effect to the 156-1 reverse stock split.

On November 15, 2013, Mr. Thomas Knox executed the conversion of 10,000,000 shares of Series A convertible preferred stock to 320,512 shares of common stock (50,000,000 pre-split shares) and entered into a promissory note of $500,000 as a basis to provide the required onetime payment due upon conversion as set forth in the subscription agreement dated September 14, 2012. The promissory note requires payment of the principal in full prior to maturity date of November 15, 2014 (the “Maturity Date”) with interest on the unpaid principal balance at the rate of the thirty day average LIBOR per annum commencing on November 15, 2013. The interest is to be paid in one lump sum on or before December 31 of each calendar year. The 320,512 shares of common stock will be held by the Company as collateral until all amounts owing under this note are paid.   In the event that Mr. Knox does not pay in full all amounts due and owing under the note within 15 business days of the Maturity Date the Company has the right to cancel the 320,512 shares of common stock; provided however, the Company provides Mr. Knox no less than thirty (30) day written notice prior to cancelling the common stock. Mr. Knox shall have no less than sixty (60) days from the date the notice is received to pay all amount due and owing under the note.

On December 3, 2013, the note receivable received for the conversion of the Series A convertible preferred stock was cancelled in exchange of 58,515 shares of common stock at the AIM:LSE market closing price of £5.2250 using the exchange rate of $1.6355 or $8.5455 per share. The Company has recorded the receipt of the 58,515 shares as a reduction of the issued and outstanding common stock, as the shares were retired upon receipt.

On December 23 2013, the Company issued 114,072 common shares in a private placement offering. The transaction was recorded at the value of the net proceeds. The proceeds were recorded in Other Receivables at December 31, 2013. The cash proceeds from the sale were received on January 2, 2014. The expenses related to this private placement are detailed below:

	$	$
Gross Proceeds:		800,732
Broker Commission	40,037
Legal Fees	15,672
Total Expenses		55,708
Net Proceeds:		745,024

On January 23, 2014, the Company issued 2,727,000 common shares in an initial public offering on the NASDAQ stock exchange. The transaction was recorded at the value of the net proceeds. The expenses related to this public offering are as follows:

	$	$
Gross Proceeds:		14,998,500
Underwriter/Aegis Expenses
Underwriter Commission	1,049,895
Underwriter Expenses	149,985
Aegis Legal Fees	80,000
Aegis Registration Expenses	7,500
Aegis Miscellaneous Expenses	36,675
Aegis Road Show Expenses	20,000
Total		1,344,055
Akers Biosciences Expenses
Legal & Accounting Expenses	393,298
Printing & Document Prep	62,101
Registration Expenses	55,946
Road Show Expenses	41,764
Total		553,109
Net Procceds:		13,101,336

As of March 31, 2014 and December 31, 2013 the Company has reserved shares of its common stock for 1,989 warrants.

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Intangible Assets

3 Months Ended

Mar. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 8 - Intangible Assets

Intangible assets as of March 31, 2014 and December 31, 2013 and the movements for the three months then ended are as follows: 

			Distributor &
	Patents &		Customer
	Trademarks		Relationships		Totals
Cost or Deemed Cost
At December 31, 2013		3,851,494		1,270,639		5,122,133
Additions		-		-		-
Disposals		-		-		-
At March 31, 2014		3,851,494		1,270,639		5,122,133
Accumulated Amortization
At December 31, 2013		1,416,857		1,270,639		2,687,496
Amortization Charge		64,644		-		64,644
Disposals		-		-		-
At March 31, 2014		1,481,501		1,270,639		2,752,140
Net Book Value
At December 31, 2013		2,434,637		-		2,434,637
At March 31, 2014	$	2,369,993	$	-	$	2,369,993

During the three months ended March 31, 2014 and 2013 amortization expense was $64,644 and $64,644.

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Commitments (Details) (USD $)	Mar. 31, 2014
Next 12 Months	$ 132,000
Next 13-24 Months	132,000
Next 25-36 Months	132,000
Next 37-48 Months	132,000
Next 49-60 Months	132,000
Thereafter	$ 99,000

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Inventories

3 Months Ended

Mar. 31, 2014

Inventory Disclosure [Abstract]

Inventories

Note 6 - Inventories

Inventories at March 31, 2014 and December 31, 2013 consists of the following categories:

	2014		2013
Raw Materials	$	320,820	$	299,464
Sub-Assemblies		326,084		335,229
Finished Goods		50,204		422,411
Reserve for Obsolescence		(32,000)		(32,000)
	$	665,108	$	1,025,104

 For the three months ended March 31, 2014 and 2013, no charges were made to cost of goods sold for obsolete inventory.

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Property, Plant and Equipment

3 Months Ended

Mar. 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Note 7 - Property, Plant and Equipment

Property, plant and equipment as of March 31, 2014 and December 31, 2013 are as follows:

	2014		2013
Computer Equipment	$	100,405	$	100,405
Computer Software		22,930		22,930
Office Equipment		50,049		50,049
Furniture & Fixtures		29,939		29,939
Machinery & Equipment		1,098,503		1,098,503
Molds & Dies		649,647		649,647
Leasehold Improvements		222,594		222,594
		2,174,067		2,174,067
Less
Accumulated Depreciation		1,928,927		1,906,746
	$	245,140	$	267,321

During the three months ended March 31, 2014 and 2013 depreciation expense was $22,181 and $23,500.

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Trade and Other Payables

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Trade and Other Payables

Note 9 - Trade and Other Payables

Trade and other payables as of March 31, 2014 and December 31, 2013 are as follows:

	2014		2013
Trade Payables	$	148,206	$	623,157
Other Payables		461,779		377,256
	$	609,985	$	1,000,413

Trade and other payables are non-interest bearing and are normally settled on 30 – 60 day terms

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Contingencies (Details Textual) (USD $)	0 Months Ended
	Nov. 07, 2013
Loss Contingency, Damages Sought, Value	$ 250,000

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Major Suppliers (Details Textual) (Three Suppliers [Member], USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Goods and Nonemployee Services Transaction [Line Items]
Due To Suppliers	$ 31,408	$ 110,196
Purchases [Member]
Share-based Goods and Nonemployee Services Transaction [Line Items]
Concentration Risk, Percentage	58.00%	62.00%

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Trade and Other Payables (Tables)

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

Trade and Other Payables

Trade and other payables as of March 31, 2014 and December 31, 2013 are as follows:

	2014		2013
Trade Payables	$	148,206	$	623,157
Other Payables		461,779		377,256
	$	609,985	$	1,000,413

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Share-based Payments (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Warrants Outstanding Beginning	1,989	47,211
Cancelled during year	0	0
Expired during year	0	0
Stock Warrants Outstanding Ending	1,989	47,211
Stock Warrants Weighted Average Exercise Price Beginning	$ 71.76	$ 48.54
Stock Warrants Cancelled Weighted Average Exercise Price	$ 0	$ 0
Stock Warrants Expired Weighted Average Exercise Price	$ 0	$ 0
Stock Warrants Weighted Average Exercise Price Ending	$ 71.76	$ 48.54

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Income Tax Expense

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Expense

Note 14 - Income Tax Expense

There is no income tax benefit for the losses for the three months ended March 31, 2014 and 2013 since management has determined that the realization of the net deferred tax asset is not assured and has created a valuation allowance for the entire amount of such benefits.

The Company’s policy is to record interest and penalties associated with unrecognized tax benefits as additional income taxes in the statement of operations. As of January 1, 2014, the Company had no unrecognized tax benefits, or any tax related interest or penalties. There were no changes in the Company’s unrecognized tax benefits during the three months ended March 31, 2014 related to unrecognized tax benefits. With few exceptions, the U.S. and state income tax returns filed for the tax years ending on December 31, 2010 and thereafter are subject to examination by the relevant taxing authorities.

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Contingencies

3 Months Ended

Mar. 31, 2014

Contingencies Disclosure [Abstract]

Contingencies

Note 19 – Contingencies

On November 7, 2013, the Company received a letter from the counsel of Rapid Breath Diagnostics, LLC (“RBD”) alleging, among other things, the Company entered into a purported Authorized Distributor and License Agreement with RBD which was materially altered without RBD’s consent. Additionally, RBD claims that the Company has violated certain intellectual property rights of RBD with respect to its Ketone Check and Metron products.  RBD is alleging that it has suffered $250,000 in damages and that it has development and ownership of the market use of Ketone Check for the management of neurological diseases as well as intellectual property rights to the name Metron. The Company informed RBD that the alleged agreement was not fully executed, and that the Company’s offer to enter into the agreement was void.

On January 9, 2014, the Company commenced a lawsuit in the United States Federal Court, District of New Jersey, against Rapid Breath Diagnostics, LLC and David A. Urman (collectively, “the RBD Parties”).  The Complaint requests that the Court declare the rights of the parties with respect to an alleged Distributor and License Agreement and to preliminary enjoin the RBD Parties from continuing to prosecute an arbitration filed with the American Arbitration Association with respect to the same subject matter (“the Arbitration”). Pursuant to stipulation of the parties, the Arbitration has since been discontinued in anticipation of the RBD Parties’ agreement to litigate the dispute in the court action. The Company is not able to assess its position in the court action in terms of favorable or unfavorable position and intends to vigorously defend against any counterclaims, if asserted

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Trade and Other Payables (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Trade Payables	$ 148,206	$ 623,157
Other Payables	461,779	377,256
Accounts Payable and Other Accrued Liabilities	$ 609,985	$ 1,000,413

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Marketable Securities (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Schedule of Available-for-sale Securities [Line Items]
Cost	$ 12,500,491
Accrued Income	8,493
Unrealized Gains	534
Unrealized Losses	(11,408)
Fair Value	12,498,110
Fair Value, Inputs, Level 1 [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	12,500,491
Accrued Income	8,493
Unrealized Gains	534
Unrealized Losses	(11,408)
Fair Value	12,498,110
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	107,258
Accrued Income	2
Unrealized Gains	0
Unrealized Losses	0
Fair Value	107,260
Fair Value, Inputs, Level 1 [Member] | Mutual Fund [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	748,088
Accrued Income	461
Unrealized Gains	258
Unrealized Losses	0
Fair Value	748,807
Fair Value, Inputs, Level 1 [Member] | US Agency Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	300,000
Accrued Income	494
Unrealized Gains	0
Unrealized Losses	(378)
Fair Value	300,116
Fair Value, Inputs, Level 1 [Member] | Certificates of Deposit [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	5,145,000
Accrued Income	3,739
Unrealized Gains	0
Unrealized Losses	(8,168)
Fair Value	5,140,571
Fair Value, Inputs, Level 1 [Member] | Corporate Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	600,000
Accrued Income	422
Unrealized Gains	0
Unrealized Losses	(2,862)
Fair Value	597,560
Fair Value, Inputs, Level 1 [Member] | Municipal Notes [Member]
Schedule of Available-for-sale Securities [Line Items]
Cost	5,600,145
Accrued Income	3,375
Unrealized Gains	276
Unrealized Losses	0
Fair Value	$ 5,603,796

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Condensed Consolidated Statement of Changes in Stockholder's Equity (USD $)	Total	Common Stock [Member]	Accumulated Deficit during Development Stage [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Balance Begnning at Dec. 31, 2013	$ 4,122,234	$ 85,843,360	$ (81,721,126)	$ 0
Balance Begnning (shares) at Dec. 31, 2013		2,167,837
Net loss for the quarter	(595,600)	0	(595,600)	0
Unrealized loss on marketable securities	(10,874)	0	0	(10,874)
Initial public offering, net of offering costs of $1,897,164	13,101,336	13,101,336	0	0
Initial public offering, net of offering costs of $1,897,164 (shares)		2,727,000
Balance Ending at Mar. 31, 2014	$ 16,617,096	$ 98,944,696	$ (82,316,726)	$ (10,874)
Balance Ending (shares) at Mar. 31, 2014		4,894,837

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Marketable Securities

3 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Cost and Equity Method Investments

Note 3 – Marketable Securities

The following table shows the Company’s available-for-sale securities cost, accrued income, gross unrealized gains, gross unrealized losses and fair value by significant investment category recorded as marketable securities as of March 31, 2014. The Company had no marketable securities as of December 31, 2013.

	2014
			Accrued		Unrealized		Unrealized		Fair
	Cost		Income		Gains		Losses		Value
Level 1:
Money market funds	$	107,258	$	2	$	-	$	-	$	107,260
Mutual funds		748,088		461		258		-		748,807
US agency securities		300,000		494		-		(378)		300,116
Certificates of deposits		5,145,000		3,739		-		(8,168)		5,140,571
Corporate securities		600,000		422		-		(2,862)		597,560
Municipal securities		5,600,145		3,375		276		-		5,603,796
Total Level 1:		12,500,491		8,493		534		(11,408)		12,498,110
Total:	$	12,500,491	$	8,493	$	534	$	(11,408)	$	12,498,110

The net realized losses are primarily related to long-term marketable securities. The Company may sell certain of its securities prior to their stated maturities for strategic reasons including, but not limited to, anticipation of credit deterioration and duration management. During the three months ended March 31, 2014 the net realized gains recognized by the Company were not significant. The maturities of the Company’s long-term marketable securities generally range from one to three years.

As of March 31, 2014, the Company considered the declines in market value of its marketable securities investment portfolio to be temporary in nature and did not consider any of its investments other-than-temporarily impaired. The Company typically invests in highly-rated securities, and its investment policy generally limits the amount of credit exposure to any one issuer. The policy requires investments generally to be investment grade, with the primary objective of minimizing the potential risk of principal loss. Fair values were determined for each individual security in the investment portfolio. When evaluating an investment for other-than-temporary impairment, the Company reviews factors such as the length of time and extent to which fair value has been below its cost basis, the financial condition of the issuer and any changes thereto, changes in market interest rates, and the Company’s intent to sell, or whether it is more likely than not it will be required to sell, the investment before recovery of the investment’s cost basis. During the three months ended March 31, 2014 the Company did not recognize any significant impairment charges.

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Earnings/(Loss) Per Share (Details Textual) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Net Income (Loss) Attributable to Parent, Total	$ (595,600)	$ 60,368
Weighted Average Number of Shares Outstanding, Basic and Diluted	4,197,937	1,278,948
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,989

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Subsequent events

3 Months Ended

Mar. 31, 2014

Subsequent Events [Abstract]

Subsequent Events

Note 20 - Subsequent events

On April 23, 2014, the Company agreed to settle the lawsuit filed by RBD (Note 19) for a one-time payment of $25,000, due within 10 business days of the final execution of the settlement documents. As of May 13, 2014, final execution of the settlement agreement has not occurred.

On April 24, 2014, the Company agreed to settle a lawsuit filed by David Kolasinski alleging a violation of a Service Agreement between the parties for a one-time payment of $10,000, due within 30 days of the final execution of the settlement documents and an ongoing commission payment of 2% of gross sales, less shipping, taxes and returns, beginning April 24, 2014 and ending December 10, 2018 that the Company makes to Novotek Theraputics, Inc. up to a maximum commission payment of $50,000, paid quarterly. As of May 13, 2014, final execution of the settlement agreement has not occurred.

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Basis of Presentation and Significant Accounting Policies (Details)	3 Months Ended
	Mar. 31, 2014
Plant and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	12 years
Plant and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Furniture and Fixtures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Furniture and Fixtures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Computer Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	5 years
Computer Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Useful Life	3 years

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Earnings/(Loss) Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings/(Loss) Per Share

Note 13 – Earnings/(Loss) per share

The calculation of basic and diluted earnings/(loss) per share for the three months ended March 31, 2014 and 2013 was based on a loss of $595,600 and income of $60,368 attributable to common shareholders, respectively.

Diluted earnings/(loss) per share is computed using the weighted average number of common and dilutive potential common shares outstanding during the period. The basic and diluted weighted average number of common shares outstanding for the three months ended March 31, 2014 and 2013 was 4,197,937 and 1,278,948.

Potential common shares consist of options and warrants. Diluted net loss per common share was the same as basic loss per common share for the three months ended March 31, 2014 since the effect of options and warrants would be anti-dilutive due to the net loss attributable to the common shareholders for the period. Instruments excluded from dilutive earnings per share, because their inclusion would be anti-dilutive, were 1,989 units of warrants. Diluted earnings per common share was the same as basic earnings per common share for the three months ended March 31, 2013 as the average market price of the common share during this period is lower than the exercise price of the potential common shares.