INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Provision (Benefit) for Income Taxes

The provision (benefit) for income taxes consists of the following:

		2013		2012
Current:
Federal	$	-	$	-
State		-		-
Total current		-		-
Deferred:
Federal		829,306		(1,370,382)
State		186,414		(308,039)
Total deferred		1,015,720		(1,678,421)
Change in valuation allowance		(1,015,720)		1,678,421
	$	-	$	-

Schedule of Reconciliation of Income Taxes

The provision (benefit) for income tax varies from that which would be expected based on applying the statutory federal rate to pre-tax accounting loss as follows:

	2013		2012
Statutory federal rate	(34.0)	%	(34.0)	%
Permanent items	1.8		2.0
Derivative liability	35.5		10.1
State tax provision, net of federal benefit	0.5		(3.0)
Valuation allowance	(3.9)		24.9
Effective tax rate (benefit) provision	0.0	%	0.0	%

Schedule of Deferred Tax Assets and Liabilities

Individual components of deferred taxes consist of the following:

		2013		2012
Deferred tax assets:
Net operating loss carry-forward	$	2,616,624	$	3,694,817
Derivative liability		21,725		21,725
Inventory reserve		19,584		69,120
Stock-based compensation		131,450		-
Other		1,292		967
		2,790,675		3,776,629
Deferred tax liabilities:
Inventory		(52,445)		-
Fixed assets		(2,956)		(2,333)
Patents and trademarks		(523,157)		(490,882)
Stock-based compensation		-		(28,300)
Beneficial conversion feature of convertible debt		-		(27,277)
		(578,558)		(548,792)
Valuation allowance		(2,212,117)		(3,227,837)
Net deferred taxes	$	-	$	-