GOING CONCERN	6 Months Ended
Jun. 30, 2015
GOING CONCERN
GOING CONCERN	NOTE 2: GOING CONCERN The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which contemplates the continuation of the Company as a going concern. For the three and six months ended June 30, 2015, the Company recorded net losses of $2,859,953 and $5,881,759, respectively. As of June 30, 2015, the Company had $1,349,934 of current assets and $608,463 of current liabilities, netting to a working capital of $741,471. During 2014, the Company focused on continuing development of its products, expanding its operations to meet expected sales, and generating new revenues primarily through the licensing of its technology. The impact of that strategy was a significant increase in the Company’s operating expenses while its revenues lagged due to the length of the sales cycle for its product. During 2015, the Company shifted strategy to focus more heavily on generating cash sales of its product and reducing expenses. The impact of the expense reductions can be seen in both cost of revenues and total operating expenses. Cost of revenues in the first quarter of 2015 was $462,131 while cost of revenue in the second quarter of 2015 was $394,502, a reduction of 15%. Total operating expenses, exclusive of stock, option and warrant expense in the three months ended June 30, 2015 declined to $1,629,554 from $2,104,027 during the three months ended March 31, 2015, a reduction of 23%. As these expense reductions occurred primarily during the three months ended June 30, 2015, the run rate impact on the Company is much greater. Also, the 2015 operating expenses included one time costs associated with the restatement of previously filed financial statements as well as the exit costs of the previous Executive Chairman and Chief Financial Officer. However, even with the greater focus on cash revenue generation and the ongoing cost reductions, the conditions described in the first paragraph, above, raise substantial doubt about the Company’s ability to continue as a going concern. While the Company has been successful in raising capital in the past, there is no assurance that it will be successful at raising additional capital in the future. Additionally, if the Company’s plans are not achieved and/or if significant unanticipated events occur, the Company may have to further modify its business plan.

NOTE 2: GOING CONCERN

The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which contemplates the continuation of the Company as a going concern. For the three and six months ended June 30, 2015, the Company recorded net losses of $2,859,953 and $5,881,759, respectively. As of June 30, 2015, the Company had $1,349,934 of current assets and $608,463 of current liabilities, netting to a working capital of $741,471.

During 2014, the Company focused on continuing development of its products, expanding its operations to meet expected sales, and generating new revenues primarily through the licensing of its technology. The impact of that strategy was a significant increase in the Company’s operating expenses while its revenues lagged due to the length of the sales cycle for its product. During 2015, the Company shifted strategy to focus more heavily on generating cash sales of its product and reducing expenses. The impact of the expense reductions can be seen in both cost of revenues and total operating expenses. Cost of revenues in the first quarter of 2015 was $462,131 while cost of revenue in the second quarter of 2015 was $394,502, a reduction of 15%. Total operating expenses, exclusive of stock, option and warrant expense in the three months ended June 30, 2015 declined to $1,629,554 from $2,104,027 during the three months ended March 31, 2015, a reduction of 23%. As these expense reductions occurred primarily during the three months ended June 30, 2015, the run rate impact on the Company is much greater. Also, the 2015 operating expenses included one time costs associated with the restatement of previously filed financial statements as well as the exit costs of the previous Executive Chairman and Chief Financial Officer.

However, even with the greater focus on cash revenue generation and the ongoing cost reductions, the conditions described in the first paragraph, above, raise substantial doubt about the Company’s ability to continue as a going concern. While the Company has been successful in raising capital in the past, there is no assurance that it will be successful at raising additional capital in the future. Additionally, if the Company’s plans are not achieved and/or if significant unanticipated events occur, the Company may have to further modify its business plan.