INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

INCOME TAXES [Abstract]

Schedule of Provision (Benefit) for Income Taxes

	2012			2011
Current:
Federal	$	-		$	-
State		-			-
Total current		-
Deferred:
Federal		(1,370,382	)		(1,284,145	)
State		(308,039	)		(288,654	)
Total deferred		(1,678,421	)		(1,572,799	)
Change in valuation allowance		1,678,421			1,572,799
	$	-		$	-

Schedule of Reconciliation of Income Taxes

	2012			2011
Statutory federal rate		(34.0	)%		(34.0	)%
Permanent items		2.0			0.2
Change in tax status		0.0			(20.8	)
Derivative liability		10.1			(6.1	)
State tax provision, net of federal benefit		(3.0	)		(4.7	)
Valuation allowance		24.9			65.4
Effective tax rate (benefit) provision		0.0	%		0.0	%

Schedule of Deferred Tax Assets and Liabilities

Deferred tax assets:
Net operating loss carryforwards		3,684,817		$	2,033,122
Derivative liability		21,725			212,773
Inventory reserve		69,120			0
Other		967			0
		3,776,629			2,245,895
Deferred tax liabilities:
Prepaid expenses		0			(6,838	)
Fixed assets		(2,333	)		0
Patents and trademarks		(490,882	)		(180,795	)
Stock-based compensation		(28,300	)		(81,265	)
Beneficial conversion feature of convertible debt		(27,277	)		(404,198	)
		(548,792	)		(673,096	)
Valuation allowance		(3,227,837	)		(1,572,799	)
Net deferred taxes	$	-		$	-