10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2015

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 Number 0-21615

PRESSURE BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

Massachusetts	04-2652826
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
14 Norfolk Avenue
South Easton, Massachusetts	02375
(Address of principal executive offices )	(Zip Code)

(508) 230-1828

(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 preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[X] Yes [  ] 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 (§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).

[X] Yes [  ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, 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. (Check one):

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 Exchange Act Rule 12b-2 of the Exchange Act.

[  ] Yes [X] No

The number of shares outstanding of the Issuer’s common stock as of August 13, 2015 was 21,165,654.

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements	3
Condensed Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014 (Unaudited)	3
Condensed Consolidated Statements of Operations for the Three Months and Six Months Ended June 30, 2015 and 2014 (Unaudited)	4
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2015 and 2014 (Unaudited)	5
Notes to Condensed Consolidated Financial Statements (Unaudited)	6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3. Quantitative and Qualitative Disclosure About Market Risk	28
Item 4. Controls and Procedures	28
PART II - OTHER INFORMATION
Item 1. Legal Proceedings	29
Item 1A. Risk Factors	29
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3. Defaults Upon Senior Securities	29
Item 4. Mine Safety Disclosures	29
Item 5. Other Information	29
Item 6. Exhibits	30
SIGNATURES	31

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	June 30, 2015			December 31, 2014
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	38,175		$	473,948
Accounts receivable		349,958			272,022
Inventories, net of $50,000 reserve at June 30, 2015 and December 31, 2014		783,891			850,552
Prepaid income taxes		7,381			7,381
Prepaid expenses and other current assets		151,481			104,204
Total current assets		1,330,886			1,708,107
Property and equipment, net		30,500			36,025
TOTAL ASSETS	$	1,361,386		$	1,744,132
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Accounts payable	$	979,479		$	1,035,781
Accrued employee compensation		153,269			157,347
Accrued professional fees and other		803,789			719,432
Deferred revenue		73,364			27,117
Convertible debt, net of debt discount of $1,176,668 and $328,681, respectively		1,083,353			1,004,513
Other debt		740,839			80,480
Warrant derivative liability		124,643			159,875
Conversion option liability		1,731,650			590,341
Total current liabilities		5,690,386			3,774,886
LONG TERM LIABILITIES
Deferred revenue		-			28,977
TOTAL LIABILITIES		5,690,386			3,803,863
COMMITMENTS AND CONTINGENCIES (Note 4)
STOCKHOLDERS’ DEFICIT
Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on June 30, 2015 and December 31, 2014 (Liquidation value of $300,000)		3			3
Series G Convertible Preferred Stock, $.01 par value; 240,000 shares authorized; 86,570 shares issued and outstanding on June 30, 2015 and December 31, 2014		866			866
Series H Convertible Preferred Stock, $.01 par value; 10,000 shares authorized; 10,000 shares issued and outstanding on June 30, 2015 and December 31, 2014		100			100
Series H2 Convertible Preferred Stock, $.01 par value; 21 shares authorized; 21 shares issued and outstanding on June 30, 2015 and December 31, 2014		-			-
Series J Convertible Preferred Stock, $.01 par value; 6,250 shares authorized; 3,546 shares issued and outstanding on June 30, 2015 and December 31, 2014		36			36
Series K Convertible Preferred Stock, $.01 par value; 15,000 shares authorized; 11,416 shares issued and outstanding on June 30, 2015 and December 31, 2014		114			114
Common stock, $.01 par value; 65,000,000 shares authorized; 19,939,131 and 18,673,390 shares issued and outstanding on June 30, 2015 and December 31, 2014, respectively		199,391			186,734
Warrants to acquire common stock		5,347,054			5,253,566
Additional paid-in capital		25,037,861			24,617,564
Accumulated deficit		(34,914,425	)		(32,118,714	)
Total stockholders’ deficit		(4,329,000	)		(2,059,731	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	1,361,386		$	1,744,132

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements

3

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2015			2014			2015			2014
Revenue:
Products, services, other	$	333,575		$	307,464		$	692,939		$	711,611
Grant revenue		79,529			-			160,299			-
Total revenue		413,104			307,464			853,238			711,611
Costs and expenses:
Cost of products and services		175,193			134,453			365,976			312,059
Research and development		291,402			253,238			523,325			484,326
Selling and marketing		200,178			196,074			366,401			367,414
General and administrative		810,220			570,456			1,536,244			1,176,935
Total operating costs and expenses		1,476,993			1,154,221			2,791,946			2,340,734
Operating loss		(1,063,889	)		(846,757	)		(1,938,708	)		(1,629,123	)
Other (expense) income:
Interest expense		(640,691	)		(341,649	)		(1,246,276	)		(478,313	)
Other expense		(168,111	)		-			(513,352	)		-
Gain on extinguishment of embedded derivative liabilities		186,609			-			848,073			-
Change in fair value of derivative liabilities		299,841			585,219			78,031			(255,406	)
Total other (expense) income		(322,352	)		243,570			(833,524	)		(733,719	)
Net loss		(1,386,241	)		(603,187	)		(2,772,232	)		(2,362,842	)
Accrued dividends on convertible preferred stock		(6,811	)		(9,606	)		(23,479	)		(54,593	)
Deemed dividends on convertible preferred stock		-			(107,996	)		-			(1,388,062	)
Net loss applicable to common shareholders	$	(1,393,052	)	$	(720,789	)	$	(2,795,711	)	$	(3,805,497	)
Net loss per share attributable to common stockholders - basic and diluted	$	(0.07	)	$	(0.05	)	$	(0.14	)	$	(0.30	)
Weighted average common stock shares outstanding used in the basic and diluted net loss per share calculation		19,682,632			13,567,472			19,247,895			12,848,751

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements

4

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Six Months Ended
	June 30,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,772,232	)	$	(2,362,842	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		12,187			39,731
Accretion of interest and amortization of debt discount		1,047,864			393,845
Debt conversion option value in excess of debt		476,442			-
Stock-based compensation expense		110,506			40,384
Amortization of third party fees paid in common stock		167,936			159,482
Gain on extinguishment of embedded derivative liabilities		(848,073	)		-
Change in fair value of derivative liabilities		(78,031	)		255,406
Changes in operating assets and liabilities:
Accounts receivable		(77,936	)		(43,090	)
Inventories		66,661			(116,543	)
Prepaid expenses and other current assets		16,723			(40,909	)
Accounts payable		(56,302	)		59,309
Accrued employee compensation		(4,078	)		(28,987	)
Deferred revenue and other accrued expenses		87,548			(112,262	)
Net cash used in operating activities		(1,850,785	)		(1,756,476	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property plant and equipment		(6,662	)		(7,139	)
Net cash used in investing activities		(6,662	)		(7,139	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from related party debt		6,300			-
Payment of related party debt		(12,300	)		(25,182	)
Net proceeds from convertible debt		1,609,437			420,434
Payments on convertible debt		(667,450	)		(303,100	)
Net proceeds from non-convertible debt		992,128			196,250
Payments on non-convertible debt		(333,641	)		(172,360	)
Payment of prepayment penalty		(172,800	)		-
Net proceeds from the issuance of common stock		-			149,165
Net proceeds from the issuance of convertible preferred stock		-			1,476,360
Net cash provided by financing activities		1,421,674			1,741,567
NET DECREASE IN CASH		(435,773	)		(22,048	)
CASH AT BEGINNING OF YEAR		473,948			31,417
CASH AT END OF PERIOD	$	38,175		$	9,369
SUPPLEMENTAL INFORMATION
Interest paid in cash	$	203,311		$	33,445
Income taxes paid in cash		-			-
NON CASH TRANSACTIONS:
Convertible debt exchanged for convertible preferred stock		-			270,000
Accrued dividends on preferred stock		23,479			54,593
Issuance of convertible preferred stock for interest		-			30,000
Issuance of convertible preferred stock for board of director and other fees		-			92,750
Deemed dividend on convertible preferred stock		-			1,388,062
Convertible debt exchanged for common stock		248,000			87,500
Debt discount from derivative liability		1,555,739			-
Extension fees added to principal		54,000			-
Prepayment penalty and accrued interest enrolled into debt principal		48,950			-
Common stock issued for preferred dividends		-			58,268

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements

5

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2015

(UNAUDITED)

1) Business Overview, Liquidity and Management Plans

Pressure BioSciences, Inc. (“we”, “our”, “the Company”) is focused on solving the challenging problems inherent in biological sample preparation, a crucial laboratory step performed by scientists worldwide working in biological life sciences research. Sample preparation is a term that refers to a wide range of activities that precede most forms of scientific analysis. Sample preparation is often complex, time-consuming and, in our belief, one of the most error-prone steps of scientific research. It is a widely-used laboratory undertaking – the requirements of which drive what we believe is a large and growing worldwide market. We have developed and patented a novel, enabling technology platform that can control the sample preparation process. It is based on harnessing the unique properties of high hydrostatic pressure. This process, called pressure cycling technology, or PCT, uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels i.e., 35,000 pounds per square inch (“psi”) or greater to safely, conveniently and reproducibly control the actions of molecules in biological samples, such as cells and tissues from human, animal, plant and microbial sources.

Our pressure cycling technology uses internally developed instrumentation that is capable of cycling pressure between ambient and ultra-high levels at controlled temperatures and specific time intervals, to rapidly and repeatedly control the interactions of bio-molecules, such as deoxyribonucleic acid (“DNA”), ribonucleic acid (“RNA”), proteins, lipids and small molecules. Our laboratory instrument, the Barocycler^®, and our internally developed consumables product line, which include our Pressure Used to Lyse Samples for Extraction (“PULSE”) tubes, and other processing tubes, and application specific kits such as consumable products and reagents, together make up our PCT Sample Preparation System (“PCT SPS”).

2) Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. However, we have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2015, we do not have adequate working capital resources to satisfy our current liabilities and as a result, there is substantial doubt regarding our ability to continue as a going concern. We have been successful in raising cash through debt and equity offerings in the past and as described in Note 6, completed debt financing subsequent to June 30, 2015. We have financing efforts in place to continue to raise cash through debt and equity offerings.

Management has developed a plan to continue operations. This plan includes obtaining equity or debt financing. During the six months ended June 30, 2015 we received $2,601,565 net proceeds, in additional convertible and non-convertible debt. Although we have successfully completed financings and reduced expenses in the past, we cannot assure you that our plans to address these matters in the future will be successful.

We need substantial additional capital to fund normal operations in future periods. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects. These financial statements do not include any adjustments that might result from this uncertainty.

3) Interim Financial Reporting

The accompanying unaudited condensed consolidated financial statements of Pressure BioSciences, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all material adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the fiscal year ended December 31, 2014 as filed with the Securities and Exchange Commission on March 31, 2015.

6

4) Summary of Significant Accounting Policies

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Pressure BioSciences, Inc., and its wholly-owned subsidiary PBI BioSeq, Inc. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

To prepare our condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we are required to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in projecting future cash flows to quantify deferred tax assets, the costs associated with fulfilling our warranty obligations for the instruments that we sell, and the estimates employed in our calculation of fair value of stock options awarded and warrant derivative liability. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from the estimates and assumptions used.

Concentrations

Credit Risk

Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, and trade receivables. We have cash investment policies which, among other things, limit investments to investment-grade securities. We perform ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the fact that many of our customers are government institutions, large pharmaceutical and biotechnology companies, and academic laboratories.

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2015 and 2014.

	For the Three Months Ended
	June 30,
	2015			2014
Top Five Customers		65	%		64	%
Federal Agencies		27	%		3	%

	For the Six Months Ended
	June 30,
		2015		2014
Top Five Customers		49	%	42	%
Federal Agencies		22	%	2	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2015 and December 31, 2014:

	June 30, 2015			December 31, 2014
Top Five Customers		70	%		86	%
Federal Agencies		1	%		9	%

Product Supply

BIT Group, Inc. has been our sole contract manufacturer for our PCT NEP3229 and NEP2320 instrumentation.

7

Computation of Loss per Share

Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For purposes of this calculation, convertible preferred stock, common stock dividends, and warrants and options to acquire common stock, are all considered common stock equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive to our net loss.

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2015 and 2014:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Numerator:
Net loss	$	(1,386,241	)	$	(603,187	)	$	(2,772,232	)	$	(2,362,842	)
Accrued dividend for Preferred Stock		(6,811	)		(9,606	)		(23,479	)		(54,593	)
Deemed dividend on Series K Convertible Preferred Stock		-			(107,996	)		-			(1,388,062	)
Net loss applicable to common shareholders	$	(1,393,052	)	$	(720,789	)	$	(2,795,711	)	$	(3,805,497	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		19,682,632			13,567,472			19,247,895			12,848,751
Loss per common share - basic and diluted	$	(0.07	)	$	(0.05	)	$	(0.14	)	$	(0.30	)

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series G Convertible Preferred Stock, Series H Convertible Preferred Stock, Series J Convertible Preferred Stock and Series K Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

	For the Six Months Ended
	June 30,
	2015		2014
Stock options		3,251,250		1,585,750
Convertible debt		14,420,144		917,860
Common stock warrants		19,182,201		17,757,044
Convertible preferred stock:
Series D Convertible Preferred Stock		750,000		750,000
Series G Convertible Preferred Stock		865,700		865,700
Series H Convertible Preferred Stock		1,000,000		1,000,000
Series H2 Convertible Preferred Stock		2,100,000		-
Series J Convertible Preferred Stock		3,546,000		4,995,000
Series K Convertible Preferred Stock		11,416,000		11,463,000
		56,531,295		39,334,354

Accounting for Stock-Based Compensation Expense

We maintain equity compensation plans under which incentive stock options and non-qualified stock options are granted to employees, independent members of our Board of Directors and outside consultants. We recognize stock-based compensation expense over the requisite service period using the Black-Scholes formula to estimate the fair value of the stock options on the date of grant.

8

Determining Fair Value of Stock Option Grants

Valuation and Amortization Method - The fair value of each option award is estimated on the date of grant using the Black-Scholes pricing model based on certain assumptions. The estimated fair value of employee stock options is amortized to expense using the straight-line method over the vesting period.

Expected Term - The Company uses the simplified calculation of expected life, as the Company does not currently have sufficient historical exercise data on which to base an estimate of expected term. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted.

Expected Volatility - Expected volatility is based on the Company’s historical stock volatility data over the expected term of the award.

Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes valuation method on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

Forfeitures - The Company records stock-based compensation expense only for those awards that are expected to vest. The Company estimated a forfeiture rate of 5% for awards granted based on historical experience and future expectations of options vesting. The Company used this historical rate as our assumption in calculating future stock-based compensation expense.

The Company recognized stock-based compensation expense of $55,616 and $21,488 for the three months ended June 30, 2015 and 2014, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Condensed Consolidated Statements of Operations:

	For the Three Months Ended June 30,
	2015		2014
Research and development	$	11,523	$	10,301
Selling and marketing		7,099		5,914
General and administrative		36,994		5,273
Total stock-based compensation expense	$	55,616	$	21,488

We recognized stock-based compensation expense of $110,506 and $40,384 for the six months ended June 30, 2015 and 2014, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Condensed Consolidated Statements of Operations:

	For the Six Months Ended June 30,
	2015		2014
Research and development	$	22,865	$	17,854
Selling and marketing		14,075		11,905
General and administrative		73,566		10,625
Total stock-based compensation expense	$	110,506	$	40,384

Fair Value of Financial Instruments

Due to their short maturities, the carrying amounts for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair value. Long-term liabilities are primarily related to liabilities transferred under contractual arrangements with carrying values that approximate fair value.

Fair Value Measurements

The Company follows the guidance of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) as it related to all financial assets and financial liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

The Company generally defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions.

9

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that it does not have any financial assets measured at fair value and that its financial liabilities are currently all classified within Level 3 in the fair value hierarchy. The development of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management.

The following tables set forth the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of June 30, 2015.

			Fair value measurements at June 30, 2015 using:
	June 30, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	124,643		-		-	$	124,643
Conversion Option Liabilities		1,731,650		-		-		1,731,650
Total Derivatives	$	1,856,293		-		-	$	1,856,293

	January 1, 2015		Issuance fair value		Change in fair value			Gain on extinguishment of embedded derivative liabilities			June 30, 2015
Series D Preferred Stock Purchase Warrants	$159,875		-		$	(35,232	)	-			$124,643
Conversion Option Liabilities		590,341		2,032,181		(42,799	)		(848,073	)		1,731,650
Total Derivatives	$	750,216	$	2,032,181	$	(78,031	)	$	(848,073	)	$	1,856,293

The assumptions for the binomial pricing model are represented in the table below for the warrants issued in the Series D private placement reflected on a per share common stock equivalent basis.

Assumptions	November 10, 2011			Warrants revalued at December 31, 2014			Warrants revalued at June 30, 2015
Expected life (in months)		60.0			22.0			16.0
Expected volatility		104.5	%		116.0	%		116.1	%
Risk-free interest rate		0.875	%		0.58	%		0.48	%
Exercise price	$	0.81		$	0.25		$	0.25
Fair value per warrant	$	0.54		$	0.15		$	0.12

The assumptions for the binomial pricing model are represented in the table below for the conversion options reflected on a per share common stock equivalent basis.

Assumptions	At Issuance fair value	At Settlement fair value	Conversion options revalued at June 30, 2015
Expected life (in months)	6-24	0-6	2-21
Expected volatility	104.2-153.8%	0.8-142.2%	88.6-130.6%
Risk-free interest rate	0.05-0.99%	0.01-0.18%	0.01-0.54%
Exercise price	$0.10-$0.35	$0.10-$0.16	$0.11-$0.25
Fair value per conversion option	$0.09-$0.28	$0.10-$0.26	$0.08-$0.16

10

5) Commitments and Contingencies

Operating Leases

Our corporate offices are currently located at 14 Norfolk Avenue, South Easton, Massachusetts 02375. In November 2007, we signed a lease agreement commencing in February 2008 pursuant to which we lease approximately 5,500 square feet of office space. We extended the lease term until December 31, 2015 with a monthly payment of $4,800.

In September 2014 we moved to approximately 855 square feet of lab space in Medford, MA with a monthly payment of $3,094. The lease term runs until December 31, 2017.

Rental costs are expensed as incurred. During the six months ended June 30, 2015 and 2014 we incurred $50,406 and $61,800 in rent expense, respectively for the use of our corporate office and research and development facilities.

Government Grants

We have received a $1 million NIH SBIR Phase II Grant. Under the grant, the NIH has committed to pay the company to develop a high-throughput, high pressure-based DNA Shearing System for Next Generation Sequencing applications.

6) Convertible Debt and Other Debt

On February 2, 2015, we signed a convertible debenture in the amount of $100,000. The lender paid an initial payment of $95,000 net of fees of $5,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest closing prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 3,000,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $75,525 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on February 2, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $62,219 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $67,219 which will be amortized to interest expense over the expected twelve month life of the debt.

On July 31, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $100,000 convertible note in its entirety.

On February 2, 2015, we signed a convertible debenture in the amount of $120,000. The lender paid an initial payment of $115,000 net of fees of $5,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest closing prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 2,886,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $90,630 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

11

The proceeds from the convertible debt issued on February 2, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $74,663 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $120,000 is offset by a debt discount of $79,663 which will be amortized to interest expense over the expected twelve month life of the debt.

On July 31, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $120,000 convertible note in its entirety.

On February 22, 2015, we signed a convertible debenture in the amount of $100,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the volume weighted average price (“VWAP”) of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least three times the number of shares of common stock for full conversion of this debenture. The maturity date is six months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $79,335 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on February 22, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $61,597 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $61,597 which will be amortized to interest expense over the expected twelve month life of the debt.

On July 31, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $100,000 convertible note in its entirety.

On February 25, 2015, we signed a convertible debenture in the amount of $112,500. The Company received $108,500 net of $4,000 in fees. An interest charge of 8% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest closing prices of the Company’s shares during the 30 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least six times the number of shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $127,192 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on February 25, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $312,847 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $112,500 is offset by a debt discount of $112,500 which will be amortized to interest expense over the expected nine month life of the debt. The residual amount of debt discount of $204,347 in excess of the principal of $112,500 is charged to other expense on the condensed consolidated statement of operations.

On March 4, 2015, we signed a convertible debenture in the amount of $52,500. The Company received $50,000 net of $2,500 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest closing prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 38% of the principal balance. The Company is required to reserve at least 873,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $42,386 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

12

The proceeds from the convertible debt issued on March 4, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $53,213 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $52,500 is offset by a debt discount of $52,500 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $3,213 in excess of the principal of $52,500 is charged to other expense on the condensed consolidated statement of operations.

On March 6, 2015, we signed a convertible debenture in the amount of $236,250. The company received $211,800 net of $24,450 in fees including $9,450 of restricted stock. An interest charge of 2% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the volume weighted average price (“VWAP”) of the Company’s shares during the 3 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 35% of the principal balance. The Company is required to reserve at least 3,000,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $145,216 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 6, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $212,918 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $236,250 is offset by a debt discount of $236,250 which will be amortized to interest expense over the expected six month life of the debt.

On March 17, 2015, we signed a convertible debenture in the amount of $50,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the lowest volume weighted average price (“VWAP”) of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 1,000,000 shares of common stock for full conversion of this debenture. The maturity date is twenty-four months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $53,686 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 17, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $64,382 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $50,000 is offset by a debt discount of $50,000 which will be amortized to interest expense over the expected twenty-four month life of the debt. The residual amount of debt discount of $14,382 in excess of the principal of $50,000 is charged to other expense on the condensed consolidated statement of operations.

On March 20, 2015, we signed a convertible debenture in the amount of $25,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the volume weighted average price (“VWAP”) of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least three times the number of shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $20,483 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

13

The proceeds from the convertible debt issued on March 20, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $25,077 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $25,000 is offset by a debt discount of $25,000 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $77 in excess of the principal of $25,000 is charged to other expense on the condensed consolidated statement of operations.

On March 26, 2015, we signed a convertible debenture in the amount of $150,000. The Company received $148,000 net of $2,000 in fees. An interest charge of 6% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 37.5% of the principal balance. The Company is required to reserve at least 3,336,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $160,227 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 26, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $164,501 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $150,000 is offset by a debt discount of $150,000 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $16,501 in excess of the principal of $150,000 is charged to other expense on the condensed consolidated statement of operations.

On March 27, 2015, we signed a convertible debenture in the amount of $52,500. The Company received $50,000 net of $2,500 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 38% of the principal balance. The Company is required to reserve at least 873,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $49,203 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 27, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $57,502 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $52,500 is offset by a debt discount of $52,500 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $7,502 in excess of the principal of $52,500 is charged to other expense on the condensed consolidated statement of operations.

On March 27, 2015, we signed a convertible debenture in the amount of $100,000. The Company received $92,000 net of $8,000 in fees. An interest charge of 8% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest prices of the Company’s shares during the 20 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 38% of the principal balance. The Company is required to reserve at least 5,000,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $100,292 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

14

The proceeds from the convertible debt issued on March 27, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $154,359 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $100,000 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $62,359 in excess of the principal of $100,000 is charged to other expense on the condensed consolidated statement of operations.

On July 24, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $100,000 convertible note in its entirety.

On April 1, 2015, we signed a convertible debenture in the amount of $100,000. An interest charge of 8% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 60% of the average of the three lowest prices of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 25% to 35% of the principal balance. The Company is required to reserve five times the shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $126,037 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on April 1, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $155,793 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $100,000 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $55,793 in excess of the principal of $100,000 is charged to other expense on the condensed consolidated statement of operations.

On April 20, 2015, we signed a convertible debenture in the amount of $81,250. The Company received $74,687 net of $6,563 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest prices of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties of 20% of the principal balance. The Company is required to reserve at least 1,500,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $102,350 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on April 20, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $117,679 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $81,250 is offset by a debt discount of $81,250 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $42,992 in excess of the principal of $81,250 is charged to other expense on the condensed consolidated statement of operations.

15

On July 24, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $81,250 convertible note in its entirety.

On April 28, 2015, we signed a convertible debenture in the amount of $54,050. The Company received $50,000 net of $4,050 in fees. An interest charge of 9% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of $0.25 subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. The Company is required to reserve at least 650,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $17,022 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on April 28, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $35,143 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $54,050 is offset by a debt discount of $39,193 which will be amortized to interest expense over the expected eight month life of the debt.

On May 12, 2015, we signed a convertible debenture in the amount of $107,763. The Company received $100,000 net of $7,763 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest prices of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties of 20% of the principal balance. The Company is required to reserve at least 1,500,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $136,302 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on May 12, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $145,527 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $107,763 is offset by a debt discount of $107,763 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $45,527 in excess of the principal of $107,763 is charged to other expense on the condensed consolidated statement of operations.

On May 20, 2015, we signed a convertible debenture in the amount of $100,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the VWAP of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 9.5 % to 33% of the principal balance. The Company is required to reserve three times the number of shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $84,145 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on May 20, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $92,715 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $92,715 which will be amortized to interest expense over the expected twelve month life of the debt.

16

On May 26, 2015, we signed a convertible debenture in the amount of $63,500. The Company received $60,000 net of $3,500 in fees. An interest charge of 8% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest prices of the Company’s shares during the 30 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 10% to 35% of the principal balance. The Company is required to reserve six times the number of shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $80,392 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on May 26, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $79,287 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $63,500 is offset by a debt discount of $63,500 which will be amortized to interest expense over the twelve month life of the debt. The residual amount of debt discount of $19,287 in excess of the principal of $63,500 is charged to other expense on the condensed consolidated statement of operations.

On July 24, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $63,500 convertible note in its entirety.

On June 23, 2015, we signed a convertible debenture in the amount of $126,000. The Company received $120,000 net of $6,000 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 3,101,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $110,261 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on June 23, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $108,297 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $126,000 is offset by a debt discount of $114,297 which will be amortized to interest expense over the expected twelve month life of the debt.

On June 24, 2015, we signed a convertible debenture in the amount of $50,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the lowest VWAP of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 1,000,000 shares of common stock for full conversion of this debenture. The maturity date is twenty-four months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $55,936 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

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The proceeds from the convertible debt issued on June 24, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $54,511 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $50,000 is offset by a debt discount of $50,000 which will be amortized to interest expense over the expected twenty-four month life of the debt. The residual amount of debt discount of $4,511 in excess of the principal of $50,000 is charged to other expense on the condensed consolidated statement of operations.

During the six month period ended June 30, 2015 the company paid off seven convertible notes. As a result of the settlement of the notes, the fair value of conversion options embedded in these notes was measured on the date they were paid off and the remaining aggregate value of $848,073 was recognized as a gain on the extinguishment of embedded derivative liabilities in the consolidated statement of operations. In connection with the payoff of the convertible notes, the Company paid pre-payment penalties totaling $172,800.

Other Notes

On January 15, 2015 we signed a Merchant Agreement with a lender. Under the agreement we received $150,000 in exchange for rights to all customer receipts until the lender is paid $187,500, to be collected at the rate of $744 per business day. The payments are secured by essentially all tangible assets of the Company. $67,925 of the proceeds were used to pay off the outstanding balance of a previous loan from this lender. The Company paid $1,875 in fees in connection with this loan. The outstanding balance was recorded as other debt on the balance sheet.

On January 29, 2015 we signed a Merchant Agreement with a lender. Under the agreement we received $200,000 in exchange for rights to all customer receipts until the lender is paid $278,000, to be collected at the rate of $1,985 per business day. The payments are secured by essentially all tangible assets of the Company. The Company paid $999 in fees in connection with this loan. The outstanding balance is recorded as other debt on the balance sheet.

On March 17, 2015 we signed a Merchant Agreement with a lender. Under the agreement we received $50,000 in exchange for rights to all customer receipts until the lender is paid $67,450, to be collected at the rate of $559 per business day. The payments are secured by essentially all tangible assets of the Company. The Company paid $999 in fees in connection with this loan. The outstanding balance is recorded as other debt on the balance sheet.

On May 29, 2015 we signed a Merchant Agreement with a lender. Under the agreement we received $100,000 in exchange for rights to all customer receipts until the lender is paid $132,000, to be collected at the rate of $1,098 per business day. The payments are secured by essentially all tangible assets of the Company. The Company paid $3,999 in fees in connection with this loan. The outstanding balance is recorded as other debt on the balance sheet.

During the quarter ended June 30, 2015 we signed two ninety day notes with an investor. Under the terms of the notes, the company received a total of $500,000. The investor may choose to receive warrants or may choose to convert these loans in future company offerings at favorable terms.

During the six months ended June 30, 2015, the Company made payments of $333,641 in total on the non-convertible debt from non-related parties. As of June 30, 2015, the outstanding balance is $740,839 for other debt.

7) Stockholders’ Deficit

Preferred Stock

We are authorized to issue 1,000,000 shares of preferred stock with a par value of $0.01. Of the 1,000,000 shares of preferred stock:

1)	20,000 shares have been designated as Series A Junior Participating Preferred Stock (“Junior A”)
2)	313,960 shares have been designated as Series A Convertible Preferred Stock (“Series A”)
3)	279,256 shares have been designated as Series B Convertible Preferred Stock (“Series B”)
4)	88,098 shares have been designated as Series C Convertible Preferred Stock (“Series C”)
5)	850 shares have been designated as Series D Convertible Preferred Stock (“Series D”)
6)	500 shares have been designated as Series E Convertible Preferred Stock (“Series E”)
7)	240,000 shares have been designated as Series G Convertible Preferred Stock (“Series G”)
8)	10,000 shares have been designated as Series H Convertible Preferred Stock (“Series H”)
9)	21 shares have been designated as Series H2 Convertible Preferred Stock (“Series H2”)
10)	6,250 shares have been designated as Series J Convertible Preferred Stock (“Series J”)
11)	15,000 shares have been designated as Series K Convertible Preferred Stock (“Series K”)

As of June 30, 2015, there were no shares of Junior A, and Series A, B, C and E issued and outstanding. See our Annual Report on Form 10-K for the year ended December 31, 2014 for the pertinent disclosures of preferred stock.

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Stock Options and Warrants

Our stockholders approved our amended 2005 Equity Incentive Plan (the “Plan”) pursuant to which an aggregate of 1,800,000 shares of our common stock were reserved for issuance upon exercise of stock options or other equity awards made under the Plan. Under the Plan, we may award stock options, shares of common stock, and other equity interests in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2015, options to acquire 1,720,750 shares were outstanding under the Plan with 79,250 shares available for future grant under the Plan.

As of June 30, 2015, options to acquire 10,000 shares are outstanding under the 1999 Non-qualified Stock Option Plan. No additional options may be granted under the 1999 Non-qualified Stock Option Plan.

On December 12, 2013 at the Company’s special meeting the shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”) pursuant to which 3,000,000 shares of our common stock were reserved for issuance upon exercise of stock options or other equity awards under the 2013 Plan. Under the Plan, we may award stock options, shares of common stock, and other equity interests in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2015 1,675,500 options have been granted under the 2013 Plan.

The following tables summarize information concerning options and warrants outstanding and exercisable:

	Stock Options					Warrants
				Weighted					Weighted
				Average price					Average price		Total
	Shares			per share		Shares			per share		Shares			Exercisable
Balance outstanding, January 1, 2014		1,771,708		$	0.71		15,012,327		$	0.57		16,784,035			16,611,528
Granted		1,675,500			0.30		8,903,000			0.38		10,578,500
Exercised		-			-		(4,208,658	)		0.25		(4,208,658	)
Expired		(10,000	)		1.00		(524,468	)		0.74		(534,468	)
Forfeited		(30,958	)		0.71		-			-		(30,958
Balance outstanding, December 31, 2014		3,406,250		$	0.51		19,182,201		$	0.49		22,588,451			20,858,111
Granted		-			-		-			-		-
Exercised		-			-		-			-		-
Expired		(155,000	)		1.00		-			-		-
Forfeited		-			-		-			-		-
Balance outstanding, June 30, 2015		3,251,250		$	0.49		19,182,201		$	0.49		22,588,451			21,315,198

	Options Outstanding						Options Exercisable
	Weighted Average						Weighted Average
Range of Exercise Prices	Number of Options		Remaining Contractual Life (Years)		Exercise Price		Number of Options		Remaining Contractual Life (Years)		Exercise Price
$0.30  - $0.39		1,675,500		9.2	$	0.30		666,161		9.2	$	0.30
0.40 - 0.49		311,000		7.9		0.40		311,000		7.9		0.40
0.50 - 0.59		251,250		7.1		0.50		251,250		7.1		0.50
0.60  - 0.69		467,500		4.5		0.60		445,471		4.4		0.60
1.00 - 1.25		546,000		2.3		1.00		539,127		2.2		1.00
$0.30 - $1.25		3,251,250		7.1	$	0.49		2,213,009		6.1	$	0.57

As of June 30, 2015, the total estimated fair value of unvested stock options to be amortized over their remaining vesting period was $168,931. The non-cash, stock-based compensation expense associated with the vesting of these options is expected to be $26,247 for the remainder of 2015, $83,440 in 2016 and $59,244 in 2017.

Common Stock Issuances

With respect to the convertible debenture for $223,000 signed by the Company on December 4, 2013, a lender, with the prior approval of the Company, chose to convert a portion of the outstanding note balance into shares of the Company’s common stock, and to extend the note for approximately 45 days after each conversion, as follows:

On January 14, 2015 $25,000 was converted into 100,000 shares of the Company’s common stock.

On February 25, 2015 $38,000 was converted into 140,741 shares of the Company’s common stock.

On April 10, 2015 $35,000 was converted into 140,000 shares of the Company’s common stock.

On May 29, 2015 $35,000 was converted into 140,000 shares of the Company’s common stock.

For each extension, the Company paid a fee of $13,000, $13,000, $10,000, and $8,000, respectively.

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With respect to the convertible debenture for $150,000 signed by the Company on June 4, 2014, a lender, with prior approval of the Company, chose to convert a portion of the outstanding note balance into shares of the Company’s common stock, and to extend the note for approximately 30 days after each conversion, as follows:

On February 18, 2015 $25,000 was converted into 100,000 shares of the Company’s common stock.

On March 18, 2015 $22,500 was converted into 90,000 shares of the Company’s common stock.

On March 31, 2015 $27,500 was converted into 110,000 shares of the Company’s common stock.

On April 17, 2015 $30,000 was converted into 120,000 shares of the Company’s common stock.

For each extension, the Company paid a fee of $10,000, $0, $0, and $0. This note was paid off in its entirety on July 14, 2015.

 With respect to the convertible debenture for $75,000 signed by the Company on November 10, 2014, a lender, upon the request of the Company, on June 8, 2015 agreed to extend the conversion date of the note until July 20, 2015. The lender received 40,000 shares of the Company’s common stock in exchange for the extension. The Company recorded $10,000 to interest expense for this transaction. This note was paid off in its entirety on July 24, 2015.

8) Subsequent Events

● On July 2, 2015 the Company received a total of $100,000 from two convertible notes.

● On July 2 and 14, 2015, we paid off the $150,000 convertible note from June 2014.

● On July 14, 2015 the Company issued 80,000 shares of common stock to a lender in exchange for the conversion of $20,000 of convertible debt.

● On July 22, 2015, (the “Issuance Date”) Pressure BioSciences Inc. (the “Company”) entered into a Subscription Agreement (the “Subscription Agreement”) with various individuals (each, a “Purchaser”), pursuant to which the Company sold Senior Secured Convertible Debentures (the “Debentures”) and warrants to purchase shares of common stock equal to 50% of the number of shares issuable pursuant to the subscription amount (the “Warrants”) for an aggregate purchase price of $2,180,000 (the “Purchase Price”). The total amount of the offering could be up to a potential amount of $5,000,000 with an over-allotment of $1,875,000 (the “Private Placement”). One or more additional closings may occur on or before September 7, 2015 (“Final Closing”). The Purchase Price consisted of $1,520,000 in cash from various subscribers and $660,000 from the conversion of principal and interest on outstanding promissory notes. For more detailed information about the Private Placement, please see the Form 8-K filed by the Company on July 28, 2015. The warrants include anti-dilution price protection for subsequent equity sales below the exercise price, and thus will be accounted for as derivative instruments.

● On July 23, 2015, the Company filed an Amendment to the Certificate of Incorporation in the Commonwealth of Massachusetts increasing the number of authorized common shares from 65,000,000 to 100,000,000 shares.

● On July 24, 2015, we paid off the $63,500 convertible note from May 26, 2015.

● On July 24, 2015, we paid off the $81,250 convertible note from April 20, 2015.

● On July 24, 2015, we paid off the $100,000 convertible note from March 27, 2015.

● On July 24, 2015, we paid off the $75,000 convertible note from November 10, 2014.

● On July 31, 2015, we paid off the $100,000 convertible note from February 22, 2015.

● On July 31, 2015, we paid off the $100,000 convertible note from February 2, 2015.

● On July 31, 2015, we paid off the $120,000 convertible note from February 2, 2015.

● On August 11, 2015, the Company issued 160,000 shares of common stock to a lender for the conversion of $40,000 of convertible debt.

● On August 11, 2015, the Company closed a Securities Exchange Agreement with Everest Investments Holdings of Warsaw, Poland under which Everest purchased 1,000,000 shares of the Company’s restricted Common Stock at a purchase price of $0.50/share. In exchange, the Company received 601,500 shares of Everest Investments (“Everest”), a publicly-traded company on the Main Market of the Warsaw Stock Exchange. The shares of Everest were valued at approximately $460,000 as of the closing date.

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

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, forward-looking statements are identified by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” and similar expressions intended to identify forward-looking statements. Such statements include, without limitation, statements regarding:

● our need for, and our ability to raise, additional equity or debt financing on acceptable terms, if at all;

● our need to take additional cost reduction measures, cease operations or sell our operating assets, if we are unable to obtain sufficient additional financing;

● our belief that we have sufficient liquidity to finance normal operations;

● the options we may pursue in light of our financial condition;

● the amount of cash necessary to operate our business;

● the anticipated uses of grant revenue and the potential for increased grant revenue in future periods;

● our plans and expectations with respect to our continued operations;

● our belief that PCT has achieved initial market acceptance in the mass spectrometry and other markets;

● the expected increase in the number of pressure cycling technology (“PCT”)and constant pressure (“CP”) based units installed and the increase in revenues from the sale of consumable products and extended service contracts;

● the expected development and success of new instrument and consumables product offerings;

● the potential applications for our instrument and consumables product offerings;

● the expected expenses of, and benefits and results from, our research and development efforts;

● the expected benefits and results from our collaboration programs, strategic alliances and joint ventures;

● our expectation of obtaining additional research grants from the government in the future;

● our expectations of the results of our development activities funded by government research grants;

● the potential size of the market for biological sample preparation;

● general economic conditions;

● the anticipated future financial performance and business operations of our company;

● our reasons for focusing our resources in the market for genomic, proteomic, lipidomic and small molecule sample preparation;

● the importance of mass spectrometry as a laboratory tool;

● the advantages of PCT over other current technologies as a method of biological sample preparation in biomarker discovery, forensics, and histology and for other applications;

● the capabilities and benefits of our PCT sample preparation system, consumables and other products;

● our belief that laboratory scientists will achieve results comparable with those reported to date by certain research scientists who have published or presented publicly on PCT and our other products;

● our ability to retain our core group of scientific, administrative and sales personnel; and

● our ability to expand our customer base in sample preparation and for other applications of PCT and our other products.

These forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements, expressed or implied, by such forward-looking statements. Also, these forward-looking statements represent our estimates and assumptions only as of the date of this Quarterly Report on Form 10-Q. Except as otherwise required by law, we expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this Quarterly Report on Form 10-Q to reflect any change in our expectations or any change in events, conditions or circumstances on which any of our forward-looking statements are based. Factors that could cause or contribute to differences in our future financial and other results include those discussed in the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014. We qualify all of our forward-looking statements by these cautionary statements.

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OVERVIEW

We are focused on solving the challenging problems inherent in biological sample preparation, a crucial laboratory step performed by scientists worldwide working in biological life sciences research. Sample preparation is a term that refers to a wide range of activities that precede most forms of scientific analysis. Sample preparation is often complex, time-consuming and, in our belief, one of the most error-prone steps of scientific research. It is a widely-used laboratory undertaking – the requirements of which drive what we believe is a large and growing worldwide market. We have developed and patented a novel, enabling technology platform that can control the sample preparation process. It is based on harnessing the unique properties of high hydrostatic pressure. This process, called pressure cycling technology, or PCT, uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels i.e., 35,000 pounds per square inch (“psi”) or greater to safely, conveniently and reproducibly control the actions of molecules in biological samples, such as cells and tissues from human, animal, plant and microbial sources.

Our pressure cycling technology uses internally developed instrumentation that is capable of cycling pressure between ambient and ultra-high levels at controlled temperatures and specific time intervals, to rapidly and repeatedly control the interactions of bio-molecules, such as deoxyribonucleic acid (“DNA”), ribonucleic acid (“RNA”), proteins, lipids and small molecules. Our laboratory instrument, the Barocycler^®, and our internally developed consumables product line, which include our Pressure Used to Lyse Samples for Extraction (“PULSE”) tubes, and other processing tubes, and application specific kits such as consumable products and reagents, together make up our PCT Sample Preparation System (“PCT SPS”).

We have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2015, we did not have adequate working capital resources to satisfy our current liabilities and as a result we have substantial doubt about our ability to continue as a going concern. Based on our current projections, including equity financing subsequent to June 30, 2015, we believe we will have the cash resources that will enable us to continue to fund normal operations into the foreseeable future. Please see Note 8, Subsequent Events.

We need substantial additional capital to fund normal operations in future periods. If we are able to obtain additional capital or otherwise increase our revenues, we may increase spending in specific research and development applications and engineering projects and may hire additional sales personnel or invest in targeted marketing programs. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects.

We hold 14 United States and 10 foreign patents covering multiple applications of PCT in the life sciences field. Our pressure cycling technology employs a unique approach that we believe has the potential for broad use in a number of established and emerging life sciences areas, including;

● sample preparation for genomic, proteomic, and small molecule studies;

● pathogen inactivation;

● protein purification;

● control of chemical (particularly enzymatic) reactions; and

● immunodiagnostics (clinical laboratory testing).

We reported a number of accomplishments in the first seven months of 2015:

● August 11, the Company sold 1,000,000 shares of restricted Common Stock to Everest Investments Holdings at a purchase price of $0.50 per share. In return, in lieu of cash, the Company received 601,500 shares of Everest Investments, a publicly-traded company on the Main Market of the Warsaw Stock Exchange, The Everest Investments shares were valued at approximately $460,000 as of the closing date.

● July 23, Pressure BioSciences, Inc. announced the close of a $2,180,000 initial tranche of a $5 Million Private Placement

● July 15, the Company announced that PCT was a key workflow component in a study to discover potential biomarkers and underlying pathways in the emergence and progression of COPD-associated lung cancer.

● July 13, PBI reported that Chinese and Swiss researchers suggested a workflow that included the PCT platform that they believed could potentially accelerate the discovery of new biomarkers for the early diagnosis and prediction of complications in diabetes.

● July 7, the Company announced promising results when its PCT Platform was incorporated in a new method for improving the extraction of DNA from rape kits and other forensic samples.

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● June 29, the Company announced that scientists from the Institute of Molecular Systems Biology in Zurich, Switzerland presented data on an improved method for the proteomic profiling and classification of prostate cancer tissue biopsy samples at an important international scientific conference.

● May 4, PBI announced the publication of three scientific articles that show the key advantages of the PCT platform in drug discovery & design, cancer detection, and in the analysis of microbial communities in soil.

● April 30, the Company announced that scientists from Northwestern University had successfully extracted cotinine (metabolite of nicotine) from dried blood spots and theorized that the Company’s new Barozyme High-throughput system might also improve the extraction of other chemical toxins and carcinogens as well.

● April 14, the Company announced a collaboration agreement with Southern University at New Orleans for improving and extending applications of the PCT platform for DNA detection in forensic samples.

● March 31, the Company announced FY 2014 financial results, including an almost 30% increase in products and services revenue compared to FY 2013.

● February 19, the Company announced the award of a $1 million NIH SBIR Phase II Grant to develop a high-throughput, high pressure-based DNA Shearing System for Next Generation Sequencing (“NGS”) applications.

● February 10, the Company received the first Purchase Order for its Barozyme HT48 High-Throughput System.

● January 21, the Company announced it had received over $1.16 million during the past two months from equity investments, and that it planned to expand its marketing, sales, and operations capabilities.

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Results of Operations

Comparison for the three months ended June 30, 2015 and 2014

Revenue

We recognized total revenue of $413,104 for the three months ended June 30, 2015 as compared to $307,464 during the three months ended June 30, 2014, an increase of $105,640 or 34%. This increase is attributable to increases in both grant revenue and products and services revenue as detailed below.

Products, Services, Other. Revenue from the sale of products and services increased 9% to $333,575 for the three months ended June 30, 2015 as compared to $307,464 during the three months ended June 30, 2014. Sales of consumables for the three months ended June 30, 2015 were $56,513 compared to $48,417 during the same period in the prior year an increase of approximately 16%.

Grant Revenue. During the three months ended June 30, 2015, we recorded grant revenue of $79,529 compared to no grant revenue in the comparable period in 2014. Our previous grants were completed in September of 2013 and we did not receive a new grant until December of 2014. The new grant is for approximately $1,000,000 and is paid over a period of two years.

Cost of Products and Services

The cost of products and services was $175,193 for the three months ended June 30, 2015 compared to $134,453 for the comparable period in 2014. Our gross profit margin on products and services was 47% for the three months ended June 30, 2015, as compared to 56% for the prior period. The lower gross margin in 2015 was attributable to two significant sales made through our key distributor who receives a discount from list price to represent us throughout Europe and Asia.

Research and Development

Research and development expenditures were $291,402 during the three months ended June 30, 2015 as compared to $253,238 in the same period in 2014. Our work on research and development projects remained steady during both periods while we continued to control spending without sacrificing output.

Research and development expense recognized in the three months ended June 30, 2015 and 2014 included $11,523 and $10,301 of non-cash, stock-based compensation expense, respectively.

Selling and Marketing

Selling and marketing expenses increased to $200,178 for the three months ended June 30, 2015 from $196,074 for the comparable period in 2014, an increase of $4,104 or 2%. This increase is primarily attributed to expenses incurred to attend the annual meeting of the American Society for Mass Spectrometry trade show, where we introduced new and upgraded products.

During the three months ended June 30, 2015 and 2014, selling and marketing expense included $7,099 and $5,914 of non-cash, stock-based compensation expense, respectively.

General and Administrative

General and administrative costs totaled $810,220 for the three months ended June 30, 2015 as compared to $570,456 for the comparable period in 2014, an increase of $239,764 or 42%. The increase is primarily related to increases in investor relations, patent and trademark, outside technical services, and consulting expenses.

During the three months ended June 30, 2015 and 2014, general and administrative expense included $36,994 and $5,273 of non-cash, stock-based compensation expense, respectively.

Operating Loss

Our operating loss was $1,063,889 for the three months ended June 30, 2015 as compared to $846,757 for the comparable period in 2014, an increase of $217,132 or 26%. Although our overall revenue was up from the same quarter in the previous year we were not able to offset the lower margin in products revenue from distributor sales and the increased general and administrative costs as previously described.

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Other Income (Expense), Net

Interest (Expense) Income

Interest expense totaled $640,691 for the three months ended June 30, 2015 as compared to interest expense of $341,649 for the three months ended June 30, 2014. We recorded $391,105 of amortized debt discount and $129,700 of prepayment penalties for the three months ended June 30, 2015 related to a series of convertible and other notes.

Change in fair value of warrant derivative liability

During the three months ended June 30, 2015, we recorded non-cash income of $86,263 for warrant revaluation in our consolidated statements of operations due to a decrease in the fair value of the warrant liability related to warrants issued in our Series D private placement. This decrease in fair value was primarily due to the decrease in price of the Company’s common stock at June 30, 2015 as compared to the price on March 31, 2015. For the three months ended June 30, 2014 we recorded non-cash income of $188,898 for warrant revaluation. The components for determining the fair value of the warrants are contained in the table in Note 4 of the accompanying condensed consolidated financial statements.

Change in fair value of conversion option liability

During the three months ended June 30, 2015, we recorded non-cash income of $213,578 for conversion option revaluation expense in our condensed consolidated statements of operations due to a decrease in the fair value of the conversion option liability related to convertible debt. This decrease in fair value was primarily due to the decrease in price of the Company’s common stock on June 30, 2015 as compared to the price on March 31, 2015 or the date the debt was incurred during the quarter and the shorter time to maturity of the debt. For the three months ended June 30, 2014 we recorded non-cash income $396,321 for conversion option liability revaluation. The components for determining the fair value of the conversion option liabilities are contained in the table in Note 4 of the accompanying condensed consolidated financial statements.

Gain on extinguishment of embedded derivative liabilities

$186,609 of the conversion option liability was recognized as a gain on extinguishment of embedded derivative liabilities when the underlying convertible debt was paid off and thus also extinguished the corresponding derivative liability. The components for determining the fair value of the conversion option liabilities are contained in the table in Note 4 of the accompanying condensed consolidated financial statements.

Other Expense

During the three months ended June 30, 2015 we also recorded a non-cash expense of $168,111 upon issuance of convertible debt to account for the excess of fair value of the conversion option liability embedded in the debt instruments over the amount of the debt incurred. The components for determining the fair value of the conversion option liability and can be found in Note 4 of these condensed consolidated financial statements.

Net Loss Applicable to Common Shareholders

During the three months ended June 30, 2015, we recorded a net loss to common shareholders of $1,393,052 or $(0.07) per share, as compared to a net loss to common shareholders of $720,789 or $(0.05) per share in the three months ended June 30, 2014. Net loss per share increased by $0.02 due to the increased net loss to common shareholders as detailed above. The weighted average common shares outstanding for the period increased primarily because of the issuance of shares of common stock upon conversion of Convertible Preferred Stock subsequent to June 30, 2014 and common stock issued in our warrant reset transaction in December 2014. See Note 3 of the Notes to Consolidated Condensed Financial Statements under the “Computation of Loss per Share” heading.

Comparison for the six months ended June 30, 2015 and 2014

Revenue

We recognized total revenue of $853,238 for the six months ended June 30, 2015 as compared to $711,611 during the six months ended June 30, 2014, an increase of $141,627 or 20%. This increase is attributable to an increase in grant revenue in 2015 partially offset by a slight decrease in products and services revenue as detailed below.

Products, Services, Other. Revenue from the sale of products and services was $692,939 for the six months ended June 30, 2015 as compared to $711,611 during the six months ended June 30, 2014, a decrease of $18,672 or 3%. Revenue included sales of both PBI and Constant Systems products. Sales of consumables decreased by $6,681 or 6% to $96,348 compared to $103,029 for the prior year period.

Grant Revenue. During the six months ended June 30, 2015, we recorded $160,299 of grant revenue while we did not have any grant revenue activity in the six months ended June 30, 2014.

25

Cost of Products and Services

The cost of products and services was $365,976 for the six months ended June 30, 2015 compared to $312,059 for the comparable period in 2014. Our gross profit margin on products and services was 47% and 56% for the six months ended June 30, 2015 and June 30, 2014 respectively.

Research and Development

Research and development expenditures were $523,325 for the six months ended June 30, 2015 as compared to $484,326 in the same period in 2014, an increase of $38,999 or 8%.

Research and development expense recognized in the six months ended June 30, 2015 and 2014 included $22,865 and $17,854 of non-cash, stock-based compensation expense, respectively.

Selling and Marketing

Selling and marketing expenses stayed steady at $366,401 for the six months ended June 30, 2015 compared to $367,414 for the comparable period in 2014.

During the six months ended June 30, 2015 and 2014, selling and marketing expense included $14,075 and $11,905 of non-cash, stock-based compensation expense, respectively.

General and Administrative

General and administrative costs totaled $1,536,244 for the six months ended June 30, 2015 as compared to $1,176,935 for the comparable period in 2014, an increase of $359,309 or 31%. The increase is primarily related to increases in investor relations, patent and trademark, outside technical services, and consulting expenses.

During the six months ended June 30, 2015 and 2014, general and administrative expense included $73,566 and $10,625 of non-cash, stock-based compensation expense, respectively.

Operating Loss

Our operating loss was $1,938,708 for the six months ended June 30, 2015 as compared to $1,629,123 for the comparable period in 2014, an increase of $309,585 or 19%. Although our overall revenue increased from the six-month period in the previous year, we were not able to offset the lower margin in products revenue from distributor sales and the increased general and administrative costs as previously described.

Other Income (Expense), Net

Interest Expense

Interest expense totaled $1,246,276 for the six months ended June 30, 2015 as compared to interest expense of $478,313 for the six months ended June 30, 2014. For the six month period in 2015 we amortized approximately $1,085,416 of imputed interest against the debt discount on these loans relating to conversion options liabilities, fees incurred in conjunction with these loans and prepayment penalties.

Change in fair value of warrant derivative liabilities

During the six months ended June 30, 2015, we recorded non-cash income of $35,232 for warrant revaluation income in our consolidated statements of operations due to a decrease in the fair value of the warrant liability related to warrants issued in our Series D private placement. This decrease in fair value was primarily due to the decrease in price of the Company’s common stock at June 30, 2015 as compared to the price on December 31, 2014. The components for determining the fair value of the warrants are contained in the table in Note 4 of the accompanying condensed consolidated financial statements.

26

Change in fair value of conversion option liability

During the six months ended June 30, 2015, we recorded a non-cash income of $42,799 for conversion option revaluation income in our condensed consolidated statements of operations due to a decrease in the fair value of the conversion option liability related to convertible debt. This decrease in fair value was primarily due to the decrease in price of the Company’s common stock on June 30, 2015 as compared to the price on December 31, 2014.The components for determining the fair value of the conversion option liabilities are contained in the table in Note 4 of the accompanying condensed consolidated financial statements.

Gain on extinguishment of embedded derivative liabilities

$848,073 of the conversion option liability was recognized as a gain on extinguishment of embedded derivative liabilities when the underlying convertible debt was paid off and thus also extinguished the corresponding derivative liability. The components for determining the fair value of the conversion option liabilities are contained in the table in Note 4 of the accompanying condensed consolidated financial statements.

Other Expense

During the six months ended June 30, 2014 we also recorded a non-cash expense of $513,352 most of which incurred upon issuance of convertible debt to account for the fair value of the conversion option liability embedded in the debt instruments over the amount of the debt incurred. The components for determining the fair value of the conversion option liability can be found in Note 4 of these condensed consolidated financial statements.

Net Loss Applicable to Common Shareholders

During the six months ended June 30, 2015, we recorded a net loss to common shareholders of $2,795,711 or $(0.14) per share, as compared to a net loss to common shareholders of $3,805,497 or $(0.30) per share in the six months ended June 30, 2014. The decrease in loss per share is primarily attributable to the increase in weighted average shares of common stock outstanding in 2015. The weighted average common shares outstanding for the period increased primarily because of the issuance of shares of common stock upon conversion of Convertible Preferred Stock subsequent to June 30, 2014 and common stock issued in our warrant reset transaction in December 2014. See Note 4 of the Notes to Consolidated Condensed Financial Statements under the “Computation of Loss per Share” heading.

Liquidity and Financial Condition

We have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2015, we did not have adequate working capital resources to satisfy our current liabilities and as a result, we have substantial doubt regarding our ability to continue as a going concern. We have been successful in raising cash through debt and equity offerings in the past and as described in Note 8, we completed the initial subscriptions of a $5 million PIPE subsequent to June 30, 2015. We have efforts in place to continue to raise cash through debt and equity offerings.

We will need substantial additional capital to fund our operations in future periods. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects.

Net cash used in operations for the six months ended June 30, 2015 was $1,850,785 as compared to $1,756,476 for the six months ended June 30, 2014. The cash used in operations in 2015 and 2014 is principally due to the loss from operations and for 2015 a decrease in accounts payable.

Cash used in investing activities for the six months ended June 30, 2015 and 2014 was not significant.

Net cash provided by financing activities for the six months ended June 30, 2015 was $1,421,674 as compared to $1,741,567 for the same period in the prior year. The cash from financing activities in the period ending June 30, 2015 includes $1,609,437 from convertible debt, net of fees and original note discounts, less convertible debt payments of $667,450. We also received $992,128 from non-convertible debt, net of fees, less payment on non-convertible debt of $333,641. In the prior year we received $420,434 from convertible debt and $1,476,360 in proceeds from our Series K Convertible Preferred Stock offering.

27

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This Item 3 is not applicable to us as a smaller reporting company and has been omitted.

ITEM 4. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange Act of 1934 filings are 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 our management, including our President and Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and management was necessarily required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of June 30, 2015, we carried out an evaluation, under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934. Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were not effective.

Our conclusion that our disclosure controls and procedures were not effective as of June 30, 2015 is due to the continued presence of the material weaknesses in our internal control over financial reporting identified in our Annual Report on Form 10-K for the year ended December 31, 2014. These material weaknesses are the following:

● A lack of sufficient segregation of duties. Specifically, this material weakness is such that the design over these areas relies primarily on detective controls and could be strengthened by adding preventative controls to properly safeguard company assets.

● A lack of sufficient personnel in the accounting function due to our limited resources with appropriate skills, training and experience to perform the review processes to ensure the complete and proper application of generally accepted accounting principles, particularly as it relates to valuation of warrants and other complex debt /equity transactions. Specifically, this material weakness led to segregation of duties issues and resulted in audit adjustments to the annual consolidated financial statements and revisions to related disclosures, valuation of warrants and other equity transactions.

We continue to plan to remediate those material weaknesses as follows:

● Improve the effectiveness of the accounting group by continuing to augment our existing resources with additional consultants or employees to improve segregation procedures and to assist in the analysis and recording of complex accounting transactions. We plan to hire additional senior accounting personnel or additional independent consultants once we generate significantly more revenue or raise significant additional working capital.

● Improve segregation procedures by strengthening cross approval of various functions including quarterly internal audit procedures where appropriate.

During the period covered by this Report, we implemented and performed additional substantive procedures, such as supervisory review of work papers and consistent use of financial models used in equity valuations, to ensure our condensed consolidated financial statements as of and for the three month and six month period ended June 30, 2015, are fairly stated in all material respects in accordance with GAAP. We have not, however, been able to fully remediate the material weaknesses due to our limited financial resources. Our remediation efforts are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

Except as described above, there have been no changes in our internal controls over financial reporting that occurred during the period ended June 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

28

PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Item 1A. Risk Factors

Factors that could cause or contribute to differences in our future financial and operating results include those discussed in the risk factors set forth in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2014. The risks described in our Form 10-K and this Report are not the only risks that we face. Additional risks not presently known to us or that we do not currently consider significant may also have an adverse effect on us. If any of the risks actually occur, our business, results of operations, cash flows or financial condition could suffer.

There have been no material changes to the risk factors set forth in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2014.

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

Please refer to Note 6, Convertible Debt and Other Debt, for a discussion of the sale of unregistered securities that took place for the quarter ended June 30, 2015.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

29

Item 6. Exhibits

Exhibits
31.1	Principal Executive Officer Certification Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Principal Financial Officer Certification Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Principal Executive Officer Certification Pursuant to Item 601(b)(32) of Regulation S-K, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Principal Financial Officer Certification Pursuant to Item 601(b)(32) of Regulation S-K, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document †
101.SCH	XBRL Taxonomy Extension Schema Document †
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document †
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document †
101.LAB	XBRL Taxonomy Extension Label Linkbase Document †
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document †

* In accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are furnished and not filed.

† Furnished herewith. XBRL (eXtensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

30

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PRESSURE BIOSCIENCES, INC.
Date: August 14, 2015	By:	/s/ Richard T. Schumacher
		Richard T. Schumacher
		President & Chief Executive Officer
		(Principal Executive Officer)

31

SIGNATURES

Pursuant to the requirements 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.

	PRESSURE BIOSCIENCES, INC.
Date: August 14, 2015	By:	/s/ Richard P. Thomley
		Richard P. Thomley
		Chief Financial Officer
		(Principal Financial Officer)

32

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard T. Schumacher, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Pressure 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 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 Rule 13a-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 subsidiary, 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 controls over financial reporting, or caused such internal controls 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 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.

Dated: August 14, 2015

/s/ Richard T. Schumacher

Richard T. Schumacher

President & Chief Executive Officer

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard P. Thomley, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Pressure 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 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 Rule 13a-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 subsidiary, 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 controls over financial reporting, or caused such internal controls 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 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.

Dated: August 14, 2015

/s/ Richard P. Thomley

Richard P. Thomley

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

In connection with the Quarterly Report on Form 10-Q of Pressure BioSciences, Inc., a Massachusetts corporation (the “Company”) for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard T. Schumacher, President and Chief Executive Officer of the Company, do hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) that:

(1) The Report of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2015	By:	/s/ Richard T. Schumacher
		Richard T. Schumacher
		President & Chief Executive Officer
		(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Pressure BioSciences, Inc. and will be retained by Pressure BioSciences, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

In connection with the Quarterly Report on Form 10-Q of Pressure BioSciences, Inc., a Massachusetts corporation (the “Company”) for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard P. Thomley, Chief Financial Officer of the Company, do hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) that:

(1) The Report of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2015	By:	/s/ Richard P. Thomley
		Richard P. Thomley
		Chief Financial Officer
		(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to Pressure BioSciences, Inc. and will be retained by Pressure BioSciences, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Summary of Significant Accounting Policies - Schedule of Fair Value Assumptions (Details) - $ / shares				6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014	Nov. 10, 2011	Jun. 30, 2015	Jun. 30, 2014
Expected life (in months)			60 months
Expected volatility			104.50%
Risk-free interest rate			0.875%
Exercise price			$ 0.81
Fair value per share			$ 0.54
Warrants Revalued at December 31, 2014 [Member]
Expected life (in months)		22 months
Expected volatility		116.00%
Risk-free interest rate		0.58%
Exercise price		$ 0.25
Fair value per share		$ 0.15
Warrants Revalued at June 30, 2015 [Member]
Expected life (in months)	16 months
Expected volatility	116.10%
Risk-free interest rate	0.48%
Exercise price	$ 0.25			$ 0.25
Fair value per share	.12			$ .12
Issuance Fair Value [Member] | Minimum [Member]
Expected life (in months)				6 months
Expected volatility				104.20%
Risk-free interest rate				0.05%
Exercise price					$ .10
Fair value per share					.09
Issuance Fair Value [Member] | Maximum [Member]
Expected life (in months)				24 months
Expected volatility				153.80%
Risk-free interest rate				0.99%
Exercise price					.35
Fair value per share					$ .28
Settlement Fair Value [Member] | Minimum [Member]
Expected life (in months)
Expected volatility				0.80%
Risk-free interest rate				0.01%
Exercise price	.10			$ .10
Fair value per share	0.10			$ 0.10
Settlement Fair Value [Member] | Maximum [Member]
Expected life (in months)				6 months
Expected volatility				142.20%
Risk-free interest rate				0.18%
Exercise price	.16			$ .16
Fair value per share	.26			$ .26
Conversion options revalued at June 30, 2015 [Member] | Minimum [Member]
Expected life (in months)				2 months
Expected volatility				88.60%
Risk-free interest rate				0.01%
Exercise price	.11			$ .11
Fair value per share	.08			$ .08
Conversion options revalued at June 30, 2015 [Member] | Maximum [Member]
Expected life (in months)				21 months
Expected volatility				130.60%
Risk-free interest rate				0.54%
Exercise price	.25			$ .25
Fair value per share	$ .16			$ .16

XML

Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

4) Summary of Significant Accounting Policies

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Pressure BioSciences, Inc., and its wholly-owned subsidiary PBI BioSeq, Inc. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

To prepare our condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we are required to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in projecting future cash flows to quantify deferred tax assets, the costs associated with fulfilling our warranty obligations for the instruments that we sell, and the estimates employed in our calculation of fair value of stock options awarded and warrant derivative liability. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from the estimates and assumptions used.

Concentrations

Credit Risk

Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, and trade receivables. We have cash investment policies which, among other things, limit investments to investment-grade securities. We perform ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the fact that many of our customers are government institutions, large pharmaceutical and biotechnology companies, and academic laboratories.

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2015 and 2014.

	For the Three Months Ended
	June 30,
	2015			2014
Top Five Customers		65	%		64	%
Federal Agencies		27	%		3	%

	For the Six Months Ended
	June 30,
		2015		2014
Top Five Customers		49	%	42	%
Federal Agencies		22	%	2	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2015 and December 31, 2014:

	June 30, 2015			December 31, 2014
Top Five Customers		70	%		86	%
Federal Agencies		1	%		9	%

Product Supply

BIT Group, Inc. has been our sole contract manufacturer for our PCT NEP3229 and NEP2320 instrumentation.

Computation of Loss per Share

Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For purposes of this calculation, convertible preferred stock, common stock dividends, and warrants and options to acquire common stock, are all considered common stock equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive to our net loss.

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2015 and 2014:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Numerator:
Net loss	$	(1,386,241	)	$	(603,187	)	$	(2,772,232	)	$	(2,362,842	)
Accrued dividend for Preferred Stock		(6,811	)		(9,606	)		(23,479	)		(54,593	)
Deemed dividend on Series K Convertible Preferred Stock		-			(107,996	)		-			(1,388,062	)
Net loss applicable to common shareholders	$	(1,393,052	)	$	(720,789	)	$	(2,795,711	)	$	(3,805,497	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		19,682,632			13,567,472			19,247,895			12,848,751
Loss per common share - basic and diluted	$	(0.07	)	$	(0.05	)	$	(0.14	)	$	(0.30	)

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series G Convertible Preferred Stock, Series H Convertible Preferred Stock, Series J Convertible Preferred Stock and Series K Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

	For the Six Months Ended
	June 30,
	2015		2014
Stock options		3,251,250		1,585,750
Convertible debt		14,420,144		917,860
Common stock warrants		19,182,201		17,757,044
Convertible preferred stock:
Series D Convertible Preferred Stock		750,000		750,000
Series G Convertible Preferred Stock		865,700		865,700
Series H Convertible Preferred Stock		1,000,000		1,000,000
Series H2 Convertible Preferred Stock		2,100,000		-
Series J Convertible Preferred Stock		3,546,000		4,995,000
Series K Convertible Preferred Stock		11,416,000		11,463,000
		56,531,295		39,334,354

Accounting for Stock-Based Compensation Expense

We maintain equity compensation plans under which incentive stock options and non-qualified stock options are granted to employees, independent members of our Board of Directors and outside consultants. We recognize stock-based compensation expense over the requisite service period using the Black-Scholes formula to estimate the fair value of the stock options on the date of grant.

Determining Fair Value of Stock Option Grants

Valuation and Amortization Method - The fair value of each option award is estimated on the date of grant using the Black-Scholes pricing model based on certain assumptions. The estimated fair value of employee stock options is amortized to expense using the straight-line method over the vesting period.

Expected Term - The Company uses the simplified calculation of expected life, as the Company does not currently have sufficient historical exercise data on which to base an estimate of expected term. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted.

Expected Volatility - Expected volatility is based on the Company’s historical stock volatility data over the expected term of the award.

Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes valuation method on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

Forfeitures - The Company records stock-based compensation expense only for those awards that are expected to vest. The Company estimated a forfeiture rate of 5% for awards granted based on historical experience and future expectations of options vesting. The Company used this historical rate as our assumption in calculating future stock-based compensation expense.

The Company recognized stock-based compensation expense of $55,616 and $21,488 for the three months ended June 30, 2015 and 2014, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Condensed Consolidated Statements of Operations:

	For the Three Months Ended June 30,
	2015		2014
Research and development	$	11,523	$	10,301
Selling and marketing		7,099		5,914
General and administrative		36,994		5,273
Total stock-based compensation expense	$	55,616	$	21,488

We recognized stock-based compensation expense of $110,506 and $40,384 for the six months ended June 30, 2015 and 2014, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Condensed Consolidated Statements of Operations:

	For the Six Months Ended June 30,
	2015		2014
Research and development	$	22,865	$	17,854
Selling and marketing		14,075		11,905
General and administrative		73,566		10,625
Total stock-based compensation expense	$	110,506	$	40,384

Fair Value of Financial Instruments

Due to their short maturities, the carrying amounts for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair value. Long-term liabilities are primarily related to liabilities transferred under contractual arrangements with carrying values that approximate fair value.

Fair Value Measurements

The Company follows the guidance of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) as it related to all financial assets and financial liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

The Company generally defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that it does not have any financial assets measured at fair value and that its financial liabilities are currently all classified within Level 3 in the fair value hierarchy. The development of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management.

The following tables set forth the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of June 30, 2015.

			Fair value measurements at June 30, 2015 using:
	June 30, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	124,643		-		-	$	124,643
Conversion Option Liabilities		1,731,650		-		-		1,731,650
Total Derivatives	$	1,856,293		-		-	$	1,856,293

	January 1, 2015		Issuance fair value		Change in fair value			Gain on extinguishment of embedded derivative liabilities			June 30, 2015
Series D Preferred Stock Purchase Warrants	$159,875		-		$	(35,232	)	-			$124,643
Conversion Option Liabilities		590,341		2,032,181		(42,799	)		(848,073	)		1,731,650
Total Derivatives	$	750,216	$	2,032,181	$	(78,031	)	$	(848,073	)	$	1,856,293

The assumptions for the binomial pricing model are represented in the table below for the warrants issued in the Series D private placement reflected on a per share common stock equivalent basis.

Assumptions	November 10, 2011			Warrants revalued at December 31, 2014			Warrants revalued at June 30, 2015
Expected life (in months)		60.0			22.0			16.0
Expected volatility		104.5	%		116.0	%		116.1	%
Risk-free interest rate		0.875	%		0.58	%		0.48	%
Exercise price	$	0.81		$	0.25		$	0.25
Fair value per warrant	$	0.54		$	0.15		$	0.12

The assumptions for the binomial pricing model are represented in the table below for the conversion options reflected on a per share common stock equivalent basis.

Assumptions	At Issuance fair value	At Settlement fair value	Conversion options revalued at June 30, 2015
Expected life (in months)	6-24	0-6	2-21
Expected volatility	104.2-153.8%	0.8-142.2%	88.6-130.6%
Risk-free interest rate	0.05-0.99%	0.01-0.18%	0.01-0.54%
Exercise price	$0.10-$0.35	$0.10-$0.16	$0.11-$0.25
Fair value per conversion option	$0.09-$0.28	$0.10-$0.26	$0.08-$0.16

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Stockholders' Deficit - Schedule of Concerning Options and Warrants Outstanding and Exercisable (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Shares, Beginning balance	22,588,451	16,784,035
Shares, granted		10,578,500
Shares, exercised		(4,208,658)
Shares, expired		(534,468)
Shares, forfeited		(30,958)
Shares, Ending balance	22,588,451	22,588,451
Exercisable, Beginning balance	20,858,111	16,611,528
Exercisable, Ending balance	21,315,198	20,858,111
Stock Options [Member]
Shares, Beginning balance	3,406,250	1,771,708
Shares, granted		1,675,500
Shares, exercised
Shares, expired	(155,000)	(10,000)
Shares, forfeited		(30,958)
Shares, Ending balance	3,251,250	3,406,250
Weighted average price per share, Beginning balance	$ 0.51	$ 0.71
Weighted average price per share, granted		$ 0.30
Weighted average price per share, exercised
Weighted average price per share, expired	$ 1.00	$ 1.00
Weighted average price per share, forfeited		0.71
Weighted average price per share, Ending balance	$ .49	$ 0.51
Warrants [Member]
Shares, Beginning balance	19,182,201	15,012,327
Shares, granted		8,903,000
Shares, exercised		(4,208,658)
Shares, expired		(524,468)
Shares, forfeited
Shares, Ending balance	19,182,201	19,182,201
Weighted average price per share, Beginning balance	$ 0.49	$ 0.57
Weighted average price per share, granted		0.38
Weighted average price per share, exercised		0.25
Weighted average price per share, expired		$ .74
Weighted average price per share, forfeited
Weighted average price per share, Ending balance	$ 0.49	$ 0.49

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Stockholders' Deficit (Details Narrative) - USD ($)										3 Months Ended		6 Months Ended
	Jun. 24, 2015	May. 29, 2015	Apr. 17, 2015	Apr. 10, 2015	Mar. 31, 2015	Mar. 18, 2015	Feb. 25, 2015	Feb. 18, 2015	Jan. 14, 2015	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014	Nov. 10, 2014	Jun. 04, 2014	Dec. 31, 2013	Dec. 12, 2013	Dec. 04, 2013
Convertible preferred stock, authorized										1,000,000		1,000,000
Convertible preferred stock, par value										$ 0.01		$ 0.01
Convertible preferred stock, shares issued										1,000,000		1,000,000
Common stock, shares outstanding under the plan										22,588,451		22,588,451		22,588,451			16,784,035
Estimated fair value of unvested stock options												$ 168,931
Convertible debt amount										$ 14,420,144	$ 917,860	14,420,144	$ 917,860		$ 75,000	$ 150,000			$ 223,000
Stock based compensation expences										55,616	21,488	110,506	40,384
Conversion of covertible debt		$ 35,000	$ 30,000	$ 35,000	$ 27,500	$ 22,500	$ 38,000	$ 25,000	$ 25,000
Conversion of covertible debt, shares	40,000	140,000	120,000	140,000	110,000	90,000	140,741	100,000	100,000
Debenture fee		$ 8,000	$ 0	$ 10,000	$ 0	$ 0	$ 13,000	$ 10,000	$ 13,000
Interest expense	$ 10,000									$ 640,691	$ 341,649	1,246,276	$ 478,313
Remainder of 2015 [Member]
Stock based compensation expences												26,247
2016 [Member]
Stock based compensation expences												83,440
2017 [Member]
Stock based compensation expences												$ 59,244
Stock Options [Member]
Common stock recerved for stock option plan										1,800,000		1,800,000
Common stock, shares outstanding under the plan										1,720,750		1,720,750
Common stock, shares available for future grant										79,250		79,250
1999 Non-qualified Stock Option Plan [Member]
Common stock, shares outstanding under the plan										10,000		10,000
2013 Equity Incentive Plan [Member]
Common stock recerved for stock option plan																		3,000,000
Common stock, shares available for future grant																		1,675,500
Series A Junior Participating Preferred Stock [Member]
Convertible preferred stock, authorized										20,000		20,000
Series A Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										313,960		313,960
Series B Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										279,256		279,256
Series C Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										88,098		88,098
Series D Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										850		850		850
Convertible preferred stock, par value										$ 0.01		$ 0.01		$ 0.01
Convertible preferred stock, shares issued										300		300		300
Convertible preferred stock, shares outstanding										300		300		300
Series E Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										500		500
Series G Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										240,000		240,000		240,000
Convertible preferred stock, par value										$ 0.01		$ 0.01		$ 0.01
Convertible preferred stock, shares issued										86,570		86,570		86,570
Convertible preferred stock, shares outstanding										86,570		86,570		86,570
Series H Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										10,000		10,000		10,000
Convertible preferred stock, par value										$ 0.01		$ 0.01		$ 0.01
Convertible preferred stock, shares issued										10,000		10,000		10,000
Convertible preferred stock, shares outstanding										10,000		10,000		10,000
Series H2 Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										21		21		21
Convertible preferred stock, par value										$ 0.01		$ 0.01		$ 0.01
Convertible preferred stock, shares issued										21		21		21
Convertible preferred stock, shares outstanding										21		21		21
Series J Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										6,250		6,250		6,250
Convertible preferred stock, par value										$ 0.01		$ 0.01		$ 0.01
Convertible preferred stock, shares issued										3,546		3,546		3,546
Convertible preferred stock, shares outstanding										3,546		3,546		3,546
Series K Convertible Preferred Stock [Member]
Convertible preferred stock, authorized										15,000		15,000		15,000
Convertible preferred stock, par value										$ 0.01		$ 0.01		$ 0.01
Convertible preferred stock, shares issued										11,416		11,416		11,416
Convertible preferred stock, shares outstanding										11,416		11,416		11,416

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Stockholders' Deficit - Schedule of Share-based Compensation Stock Option Plans by Exercise Price Range (Details) - Jun. 30, 2015 - $ / shares	Total
Exercise Price 1 [Member]
Exercise price range, lower range limit	$ 0.30
Exercise price range, upper range limit	$ 0.39
Options outstanding, number of options	1,675,500
Options outstanding, weigthed average remainning contractual life	9 years 2 months 12 days
Options outstanding, weighted average exercise price	$ 0.30
Options exercisable, number of options	666,161
Options exercisable, weigthed average remainning contractual life	9 years 2 months 12 days
Options exercisable, weighted average exercise price	$ 0.30
Exercise Price 2 [Member]
Exercise price range, lower range limit	0.40
Exercise price range, upper range limit	$ 0.49
Options outstanding, number of options	311,000
Options outstanding, weigthed average remainning contractual life	7 years 10 months 24 days
Options outstanding, weighted average exercise price	$ 0.40
Options exercisable, number of options	311,000
Options exercisable, weigthed average remainning contractual life	7 years 10 months 24 days
Options exercisable, weighted average exercise price	$ 0.40
Exercise Price 3 [Member]
Exercise price range, lower range limit	0.50
Exercise price range, upper range limit	$ 0.59
Options outstanding, number of options	251,250
Options outstanding, weigthed average remainning contractual life	7 years 1 month 6 days
Options outstanding, weighted average exercise price	$ 0.50
Options exercisable, number of options	251,250
Options exercisable, weigthed average remainning contractual life	7 years 1 month 6 days
Options exercisable, weighted average exercise price	$ 0.50
Exercise Price 4 [Member]
Exercise price range, lower range limit	0.60
Exercise price range, upper range limit	$ 0.69
Options outstanding, number of options	467,500
Options outstanding, weigthed average remainning contractual life	4 years 6 months
Options outstanding, weighted average exercise price	$ 0.60
Options exercisable, number of options	445,471
Options exercisable, weigthed average remainning contractual life	4 years 4 months 24 days
Options exercisable, weighted average exercise price	$ 0.60
Exercise Price 5 [Member]
Exercise price range, lower range limit	1.00
Exercise price range, upper range limit	$ 1.25
Options outstanding, number of options	546,000
Options outstanding, weigthed average remainning contractual life	2 years 3 months 18 days
Options outstanding, weighted average exercise price	$ 1.00
Options exercisable, number of options	539,127
Options exercisable, weigthed average remainning contractual life	2 years 2 months 12 days
Options exercisable, weighted average exercise price	$ 1.00
Exercise Price 6 [Member]
Exercise price range, lower range limit	0.30
Exercise price range, upper range limit	$ 1.25
Options outstanding, number of options	3,251,250
Options outstanding, weigthed average remainning contractual life	7 years 1 month 6 days
Options outstanding, weighted average exercise price	$ 0.49
Options exercisable, number of options	2,213,009
Options exercisable, weigthed average remainning contractual life	6 years 1 month 6 days
Options exercisable, weighted average exercise price	$ .57

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Subsequent Events (Details Narrative) - USD ($)																6 Months Ended
	Aug. 12, 2015	Aug. 11, 2015	Jul. 24, 2015	Jul. 22, 2015	Jul. 14, 2015	Jul. 02, 2015	Jun. 24, 2015	May. 29, 2015	Apr. 17, 2015	Apr. 10, 2015	Mar. 31, 2015	Mar. 18, 2015	Feb. 25, 2015	Feb. 18, 2015	Jan. 14, 2015	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Received form two convertible notes																$ 1,609,437	$ 420,434
Conversion of convertible debt								$ 35,000	$ 30,000	$ 35,000	$ 27,500	$ 22,500	$ 38,000	$ 25,000	$ 25,000
Conversion of convertible debt, shares							40,000	140,000	120,000	140,000	110,000	90,000	140,741	100,000	100,000
Common stock, shares authorized																65,000,000		65,000,000
Subsequent Event [Member]
Percentage of debt and warrants to purchase share of common stock equal				50.00%
Aggregate of warrant purchase price				$ 2,180,000
Offering potential amount				5,000,000
Allotment of private placement				1,875,000
Purchase price consisted of cash from various subscribers				1,520,000
Conversion of outstanding promissory notes				$ 660,000
Subsequent Event [Member] | EverestInvestmentsHolding [Member]
Number of restricted common stock issued	1,000,000
Share issued per share	$ 0.50
Number of shares received for exchange	601,500
Value of shares received for exchange	$ 460,000
Subsequent Event [Member] | Tranche Two [Member]
Received form two convertible notes
Subsequent Event [Member] | Minimum [Member]
Common stock, shares authorized			65,000,000
Subsequent Event [Member] | Maximum [Member]
Common stock, shares authorized			100,000,000
Subsequent Event [Member] | Convertible Note [Member]
Received form two convertible notes						$ 100,000
Paid off convertible note					$ 150,000	$ 150,000
Conversion of convertible debt		$ 40,000			$ 20,000
Conversion of convertible debt, shares		160,000			80,000
Subsequent Event [Member] | Convertible Note [Member] | May 26, 2015 [Member]
Paid off convertible note			$ 63,500
Subsequent Event [Member] | Convertible Note [Member] | April 20, 2015 [Member]
Paid off convertible note			81,250
Subsequent Event [Member] | Convertible Note [Member] | March 27, 2015 [Member]
Paid off convertible note			100,000
Subsequent Event [Member] | Convertible Note [Member] | November 3, 2015 [Member]
Paid off convertible note			75,000
Subsequent Event [Member] | Convertible Note [Member] | February 22, 2015 [Member]
Paid off convertible note			100,000
Subsequent Event [Member] | Convertible Note [Member] | February 2, 2015 [Member]
Paid off convertible note			100,000
Subsequent Event [Member] | Convertible Note [Member] | February 2, 2015 A [Member]
Paid off convertible note			$ 120,000

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Interim Financial Reporting

6 Months Ended

Jun. 30, 2015

Quarterly Financial Information Disclosure [Abstract]

Interim Financial Reporting

3) Interim Financial Reporting

The accompanying unaudited condensed consolidated financial statements of Pressure BioSciences, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all material adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months and six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the fiscal year ended December 31, 2014 as filed with the Securities and Exchange Commission on March 31, 2015.

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Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 38,175	$ 473,948
Accounts receivable	349,958	272,022
Inventories, net of $50,000 reserve at June 30, 2015 and December 31, 2014	783,891	850,552
Prepaid income taxes	7,381	7,381
Prepaid expenses and other current assets	151,481	104,204
Total current assets	1,330,886	1,708,107
Property and equipment, net	30,500	36,025
TOTAL ASSETS	1,361,386	1,744,132
CURRENT LIABILITIES
Accounts payable	979,479	1,035,781
Accrued employee compensation	153,269	157,347
Accrued professional fees and other	803,789	719,432
Deferred revenue	73,364	27,117
Convertible debt, net of debt discount of $1,176,668 and $328,681, respectively	1,083,353	1,004,513
Other debt	740,839	80,480
Warrant derivative liability	124,643	159,875
Conversion option liability	1,731,650	590,341
Total current liabilities	$ 5,690,386	3,774,886
LONG TERM LIABILITIES
Deferred revenue		28,977
TOTAL LIABILITIES	$ 5,690,386	$ 3,803,863
COMMITMENTS AND CONTINGENCIES (Note 4)
STOCKHOLDERS' DEFICIT
Common stock, $.01 par value; 65,000,000 shares authorized; 19,939,131 and 18,673,390 shares issued and outstanding on June 30, 2015 and December 31, 2014, respectively	$ 199,391	$ 186,734
Warrants to acquire common stock	5,347,054	5,253,566
Additional paid-in capital	25,037,861	24,617,564
Accumulated deficit	(34,914,425)	(32,118,714)
Total stockholders' deficit	(4,329,000)	(2,059,731)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	1,361,386	1,744,132
Series D Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock, value	3	3
Series G Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock, value	866	866
Series H Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock, value	$ 100	$ 100
Series H2 Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock, value
Series J Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock, value	$ 36	$ 36
Series K Convertible Preferred Stock [Member]
STOCKHOLDERS' DEFICIT
Convertible Preferred Stock, value	$ 114	$ 114

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Business Overview, Liquidity and Management Plans

6 Months Ended

Jun. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Overview, Liquidity and Management Plans

1) Business Overview, Liquidity and Management Plans

Pressure BioSciences, Inc. (“we”, “our”, “the Company”) is focused on solving the challenging problems inherent in biological sample preparation, a crucial laboratory step performed by scientists worldwide working in biological life sciences research. Sample preparation is a term that refers to a wide range of activities that precede most forms of scientific analysis. Sample preparation is often complex, time-consuming and, in our belief, one of the most error-prone steps of scientific research. It is a widely-used laboratory undertaking – the requirements of which drive what we believe is a large and growing worldwide market. We have developed and patented a novel, enabling technology platform that can control the sample preparation process. It is based on harnessing the unique properties of high hydrostatic pressure. This process, called pressure cycling technology, or PCT, uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels i.e., 35,000 pounds per square inch (“psi”) or greater to safely, conveniently and reproducibly control the actions of molecules in biological samples, such as cells and tissues from human, animal, plant and microbial sources.

Our pressure cycling technology uses internally developed instrumentation that is capable of cycling pressure between ambient and ultra-high levels at controlled temperatures and specific time intervals, to rapidly and repeatedly control the interactions of bio-molecules, such as deoxyribonucleic acid (“DNA”), ribonucleic acid (“RNA”), proteins, lipids and small molecules. Our laboratory instrument, the Barocycler^®, and our internally developed consumables product line, which include our Pressure Used to Lyse Samples for Extraction (“PULSE”) tubes, and other processing tubes, and application specific kits such as consumable products and reagents, together make up our PCT Sample Preparation System (“PCT SPS”).

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Summary of Significant Accounting Policies - Summary of Anti-dilutive Securities Excluded from Computation of Earnings per Share (Details) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Nov. 10, 2014	Jun. 04, 2014	Dec. 04, 2013
Stock options	3,251,250	1,585,750
Convertible debt	$ 14,420,144	$ 917,860	$ 75,000	$ 150,000	$ 223,000
Common stock warrants	19,182,201	17,757,044
Total potentially dilutive shares	56,531,295	39,334,354
Series D Convertible Preferred Stock [Member]
Convertible preferred stock	750,000	750,000
Series G Convertible Preferred Stock [Member]
Convertible preferred stock	865,700	865,700
Series H Convertible Preferred Stock [Member]
Convertible preferred stock	1,000,000	1,000,000
Series H2 Convertible Preferred Stock [Member]
Convertible preferred stock	2,100,000
Series J Convertible Preferred Stock [Member]
Convertible preferred stock	3,546,000	4,995,000
Series K Convertible Preferred Stock [Member]
Convertible preferred stock	11,416,000	11,463,000

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Summary of Significant Accounting Policies - Schedule of Liabilities Measured at Fair Value on Recurring Basis (Details) - Jun. 30, 2015 - USD ($)	Total
Fair value of derivative liability	$ 1,856,293
Balance	750,216
Issuance fair value	2,032,181
Change in Fair Value	(78,031)
Reclassified to Equity	(848,073)
Balance	$ 1,856,293
Quoted Prices in Active Markets [Member]
Fair value of derivative liability
Significant Other Observable Inputs [Member]
Fair value of derivative liability
Significant Unobservable Inputs [Member]
Fair value of derivative liability	$ 1,856,293
Series D Preferred Stock Purchase Warrants [Member]
Fair value of derivative liability	124,643
Balance	$ 159,875
Issuance fair value
Change in Fair Value	$ (35,232)
Reclassified to Equity
Balance	$ 124,643
Series D Preferred Stock Purchase Warrants [Member] | Quoted Prices in Active Markets [Member]
Fair value of derivative liability
Series D Preferred Stock Purchase Warrants [Member] | Significant Other Observable Inputs [Member]
Fair value of derivative liability
Series D Preferred Stock Purchase Warrants [Member] | Significant Unobservable Inputs [Member]
Fair value of derivative liability	$ 124,643
Conversion Option Liabilities [Member]
Fair value of derivative liability	17,321,650
Balance	590,341
Issuance fair value	2,032,181
Change in Fair Value	(42,799)
Reclassified to Equity	(848,073)
Balance	$ 1,731,650
Conversion Option Liabilities [Member] | Quoted Prices in Active Markets [Member]
Fair value of derivative liability
Conversion Option Liabilities [Member] | Significant Other Observable Inputs [Member]
Fair value of derivative liability
Conversion Option Liabilities [Member] | Significant Unobservable Inputs [Member]
Fair value of derivative liability	$ 17,321,650

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Going Concern

6 Months Ended

Jun. 30, 2015

Going Concern

Going Concern

2) Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. However, we have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2015, we do not have adequate working capital resources to satisfy our current liabilities and as a result, there is substantial doubt regarding our ability to continue as a going concern. We have been successful in raising cash through debt and equity offerings in the past and as described in Note 6, completed debt financing subsequent to June 30, 2015. We have financing efforts in place to continue to raise cash through debt and equity offerings.

Management has developed a plan to continue operations. This plan includes obtaining equity or debt financing. During the six months ended June 30, 2015 we received $2,601,565 net proceeds, in additional convertible and non-convertible debt. Although we have successfully completed financings and reduced expenses in the past, we cannot assure you that our plans to address these matters in the future will be successful.

We need substantial additional capital to fund normal operations in future periods. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects. These financial statements do not include any adjustments that might result from this uncertainty.

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2015	Dec. 31, 2014
Inventories reserve	$ 50,000	$ 50,000
Debt discount	$ 1,176,668	$ 328,681
Convertible preferred stock, par value	$ 0.01
Convertible preferred stock, authorized	1,000,000
Convertible preferred stock, shares issued	1,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	65,000,000	65,000,000
Common stock, shares issued	19,939,131	18,673,390
Common stock, shares outstanding	19,939,131	18,673,390
Series D Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	850	850
Convertible preferred stock, shares issued	300	300
Convertible preferred stock, shares outstanding	300	300
Convertible preferred stock, liquidation value	$ 300,000	$ 300,000
Series G Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	240,000	240,000
Convertible preferred stock, shares issued	86,570	86,570
Convertible preferred stock, shares outstanding	86,570	86,570
Series H Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	10,000	10,000
Convertible preferred stock, shares issued	10,000	10,000
Convertible preferred stock, shares outstanding	10,000	10,000
Series H2 Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	21	21
Convertible preferred stock, shares issued	21	21
Convertible preferred stock, shares outstanding	21	21
Series J Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	6,250	6,250
Convertible preferred stock, shares issued	3,546	3,546
Convertible preferred stock, shares outstanding	3,546	3,546
Series K Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	15,000	15,000
Convertible preferred stock, shares issued	11,416	11,416
Convertible preferred stock, shares outstanding	11,416	11,416

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Business Overview, Liquidity and Management Plans (Details Narrative)	6 Months Ended
	Jun. 30, 2015 Pounds
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Pounds per square inch	35,000

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2015	Aug. 13, 2015
Document And Entity Information
Entity Registrant Name	PRESSURE BIOSCIENCES INC
Entity Central Index Key	0000830656
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		21,165,654
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2015
Trading Symbol	PBIO

XML

Going Concern (Details Narrative)	6 Months Ended
	Jun. 30, 2015 USD ($)
Going Concern
Net proceeds additional converitble and non convertible debt	$ 2,601,565

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Revenue:
Products, services, other	$ 333,575	$ 307,464	$ 692,939	$ 711,611
Grant revenue	79,529		160,299
Total revenue	413,104	$ 307,464	853,238	$ 711,611
Costs and expenses:
Cost of products and services	175,193	134,453	365,976	312,059
Research and development	291,402	253,238	523,325	484,326
Selling and marketing	200,178	196,074	366,401	367,414
General and administrative	810,220	570,456	1,536,244	1,176,935
Total operating costs and expenses	1,476,993	1,154,221	2,791,946	2,340,734
Operating loss	(1,063,889)	(846,757)	(1,938,708)	(1,629,123)
Other (expense) income:
Interest expense	(640,691)	$ (341,649)	(1,246,276)	$ (478,313)
Other expense	(168,111)		(513,352)
Gain on extinguishment of embedded derivative liabilities	186,609		848,073
Change in fair value of derivative liabilities	299,841	$ 585,219	78,031	$ (255,406)
Total other (expense) income	(322,352)	243,570	(833,524)	(733,719)
Net loss	(1,386,241)	(603,187)	(2,772,232)	(2,362,842)
Accrued dividends on convertible preferred stock	$ (6,811)	(9,606)	$ (23,479)	(54,593)
Deemed dividends on convertible preferred stock		(107,996)		(1,388,062)
Net loss applicable to common shareholders	$ (1,393,052)	$ (720,789)	$ (2,795,711)	$ (3,805,497)
Net loss per share attributable to common stockholders - basic and diluted	$ (0.07)	$ (0.05)	$ (0.14)	$ (0.30)
Weighted average common stock shares outstanding used in the basic and diluted net loss per share calculation	19,682,632	13,567,472	19,247,895	12,848,751

XML

Stockholders' Deficit

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Deficit

7) Stockholders’ Deficit

Preferred Stock

We are authorized to issue 1,000,000 shares of preferred stock with a par value of $0.01. Of the 1,000,000 shares of preferred stock:

1)	20,000 shares have been designated as Series A Junior Participating Preferred Stock (“Junior A”)
2)	313,960 shares have been designated as Series A Convertible Preferred Stock (“Series A”)
3)	279,256 shares have been designated as Series B Convertible Preferred Stock (“Series B”)
4)	88,098 shares have been designated as Series C Convertible Preferred Stock (“Series C”)
5)	850 shares have been designated as Series D Convertible Preferred Stock (“Series D”)
6)	500 shares have been designated as Series E Convertible Preferred Stock (“Series E”)
7)	240,000 shares have been designated as Series G Convertible Preferred Stock (“Series G”)
8)	10,000 shares have been designated as Series H Convertible Preferred Stock (“Series H”)
9)	21 shares have been designated as Series H2 Convertible Preferred Stock (“Series H2”)
10)	6,250 shares have been designated as Series J Convertible Preferred Stock (“Series J”)
11)	15,000 shares have been designated as Series K Convertible Preferred Stock (“Series K”)

As of June 30, 2015, there were no shares of Junior A, and Series A, B, C and E issued and outstanding. See our Annual Report on Form 10-K for the year ended December 31, 2014 for the pertinent disclosures of preferred stock. 

Stock Options and Warrants

Our stockholders approved our amended 2005 Equity Incentive Plan (the “Plan”) pursuant to which an aggregate of 1,800,000 shares of our common stock were reserved for issuance upon exercise of stock options or other equity awards made under the Plan. Under the Plan, we may award stock options, shares of common stock, and other equity interests in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2015, options to acquire 1,720,750 shares were outstanding under the Plan with 79,250 shares available for future grant under the Plan.

As of June 30, 2015, options to acquire 10,000 shares are outstanding under the 1999 Non-qualified Stock Option Plan. No additional options may be granted under the 1999 Non-qualified Stock Option Plan.

On December 12, 2013 at the Company’s special meeting the shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”) pursuant to which 3,000,000 shares of our common stock were reserved for issuance upon exercise of stock options or other equity awards under the 2013 Plan. Under the Plan, we may award stock options, shares of common stock, and other equity interests in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2015 1,675,500 options have been granted under the 2013 Plan.

The following tables summarize information concerning options and warrants outstanding and exercisable:

	Stock Options					Warrants
				Weighted					Weighted
				Average price					Average price		Total
	Shares			per share		Shares			per share		Shares			Exercisable
Balance outstanding, January 1, 2014		1,771,708		$	0.71		15,012,327		$	0.57		16,784,035			16,611,528
Granted		1,675,500			0.30		8,903,000			0.38		10,578,500
Exercised		-			-		(4,208,658	)		0.25		(4,208,658	)
Expired		(10,000	)		1.00		(524,468	)		0.74		(534,468	)
Forfeited		(30,958	)		0.71		-			-		(30,958
Balance outstanding, December 31, 2014		3,406,250		$	0.51		19,182,201		$	0.49		22,588,451			20,858,111
Granted		-			-		-			-		-
Exercised		-			-		-			-		-
Expired		(155,000	)		1.00		-			-		-
Forfeited		-			-		-			-		-
Balance outstanding, June 30, 2015		3,251,250		$	0.49		19,182,201		$	0.49		22,588,451			21,315,198

	Options Outstanding						Options Exercisable
	Weighted Average						Weighted Average
Range of Exercise Prices	Number of Options		Remaining Contractual Life (Years)		Exercise Price		Number of Options		Remaining Contractual Life (Years)		Exercise Price
$0.30  - $0.39		1,675,500		9.2	$	0.30		666,161		9.2	$	0.30
0.40 - 0.49		311,000		7.9		0.40		311,000		7.9		0.40
0.50 - 0.59		251,250		7.1		0.50		251,250		7.1		0.50
0.60  - 0.69		467,500		4.5		0.60		445,471		4.4		0.60
1.00 - 1.25		546,000		2.3		1.00		539,127		2.2		1.00
$0.30 - $1.25		3,251,250		7.1	$	0.49		2,213,009		6.1	$	0.57

As of June 30, 2015, the total estimated fair value of unvested stock options to be amortized over their remaining vesting period was $168,931. The non-cash, stock-based compensation expense associated with the vesting of these options is expected to be $26,247 for the remainder of 2015, $83,440 in 2016 and $59,244 in 2017.

Common Stock Issuances

With respect to the convertible debenture for $223,000 signed by the Company on December 4, 2013, a lender, with the prior approval of the Company, chose to convert a portion of the outstanding note balance into shares of the Company’s common stock, and to extend the note for approximately 45 days after each conversion, as follows:

On January 14, 2015 $25,000 was converted into 100,000 shares of the Company’s common stock.

On February 25, 2015 $38,000 was converted into 140,741 shares of the Company’s common stock.

On April 10, 2015 $35,000 was converted into 140,000 shares of the Company’s common stock.

On May 29, 2015 $35,000 was converted into 140,000 shares of the Company’s common stock.

For each extension, the Company paid a fee of $13,000, $13,000, $10,000, and $8,000, respectively.

With respect to the convertible debenture for $150,000 signed by the Company on June 4, 2014, a lender, with prior approval of the Company, chose to convert a portion of the outstanding note balance into shares of the Company’s common stock, and to extend the note for approximately 30 days after each conversion, as follows:

On February 18, 2015 $25,000 was converted into 100,000 shares of the Company’s common stock.

On March 18, 2015 $22,500 was converted into 90,000 shares of the Company’s common stock.

On March 31, 2015 $27,500 was converted into 110,000 shares of the Company’s common stock.

On April 17, 2015 $30,000 was converted into 120,000 shares of the Company’s common stock.

For each extension, the Company paid a fee of $10,000, $0, $0, and $0. This note was paid off in its entirety on July 14, 2015.

 With respect to the convertible debenture for $75,000 signed by the Company on November 10, 2014, a lender, upon the request of the Company, on June 8, 2015 agreed to extend the conversion date of the note until July 20, 2015. The lender received 40,000 shares of the Company’s common stock in exchange for the extension. The Company recorded $10,000 to interest expense for this transaction. This note was paid off in its entirety on July 24, 2015.

XML

Convertible Debt and Other Debt

6 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

Convertible Debt and Other Debt

6) Convertible Debt and Other Debt

On February 2, 2015, we signed a convertible debenture in the amount of $100,000. The lender paid an initial payment of $95,000 net of fees of $5,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest closing prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 3,000,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $75,525 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on February 2, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $62,219 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $67,219 which will be amortized to interest expense over the expected twelve month life of the debt.

On July 31, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $100,000 convertible note in its entirety.

On February 2, 2015, we signed a convertible debenture in the amount of $120,000. The lender paid an initial payment of $115,000 net of fees of $5,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest closing prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 2,886,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $90,630 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on February 2, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $74,663 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $120,000 is offset by a debt discount of $79,663 which will be amortized to interest expense over the expected twelve month life of the debt.

On July 31, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $120,000 convertible note in its entirety.

On February 22, 2015, we signed a convertible debenture in the amount of $100,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the volume weighted average price (“VWAP”) of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least three times the number of shares of common stock for full conversion of this debenture. The maturity date is six months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $79,335 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on February 22, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $61,597 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $61,597 which will be amortized to interest expense over the expected twelve month life of the debt.

On July 31, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $100,000 convertible note in its entirety.

On February 25, 2015, we signed a convertible debenture in the amount of $112,500. The Company received $108,500 net of $4,000 in fees. An interest charge of 8% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest closing prices of the Company’s shares during the 30 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least six times the number of shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $127,192 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on February 25, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $312,847 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $112,500 is offset by a debt discount of $112,500 which will be amortized to interest expense over the expected nine month life of the debt. The residual amount of debt discount of $204,347 in excess of the principal of $112,500 is charged to other expense on the condensed consolidated statement of operations.

On March 4, 2015, we signed a convertible debenture in the amount of $52,500. The Company received $50,000 net of $2,500 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest closing prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 38% of the principal balance. The Company is required to reserve at least 873,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $42,386 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 4, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $53,213 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $52,500 is offset by a debt discount of $52,500 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $3,213 in excess of the principal of $52,500 is charged to other expense on the condensed consolidated statement of operations.

On March 6, 2015, we signed a convertible debenture in the amount of $236,250. The company received $211,800 net of $24,450 in fees including $9,450 of restricted stock. An interest charge of 2% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the volume weighted average price (“VWAP”) of the Company’s shares during the 3 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 35% of the principal balance. The Company is required to reserve at least 3,000,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $145,216 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 6, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $212,918 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $236,250 is offset by a debt discount of $236,250 which will be amortized to interest expense over the expected six month life of the debt.

On March 17, 2015, we signed a convertible debenture in the amount of $50,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the lowest volume weighted average price (“VWAP”) of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 1,000,000 shares of common stock for full conversion of this debenture. The maturity date is twenty-four months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $53,686 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 17, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $64,382 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $50,000 is offset by a debt discount of $50,000 which will be amortized to interest expense over the expected twenty-four month life of the debt. The residual amount of debt discount of $14,382 in excess of the principal of $50,000 is charged to other expense on the condensed consolidated statement of operations.

On March 20, 2015, we signed a convertible debenture in the amount of $25,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the volume weighted average price (“VWAP”) of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least three times the number of shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $20,483 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 20, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $25,077 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $25,000 is offset by a debt discount of $25,000 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $77 in excess of the principal of $25,000 is charged to other expense on the condensed consolidated statement of operations.

On March 26, 2015, we signed a convertible debenture in the amount of $150,000. The Company received $148,000 net of $2,000 in fees. An interest charge of 6% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 37.5% of the principal balance. The Company is required to reserve at least 3,336,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $160,227 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 26, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $164,501 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $150,000 is offset by a debt discount of $150,000 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $16,501 in excess of the principal of $150,000 is charged to other expense on the condensed consolidated statement of operations.

On March 27, 2015, we signed a convertible debenture in the amount of $52,500. The Company received $50,000 net of $2,500 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 38% of the principal balance. The Company is required to reserve at least 873,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $49,203 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 27, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $57,502 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $52,500 is offset by a debt discount of $52,500 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $7,502 in excess of the principal of $52,500 is charged to other expense on the condensed consolidated statement of operations.

On March 27, 2015, we signed a convertible debenture in the amount of $100,000. The Company received $92,000 net of $8,000 in fees. An interest charge of 8% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest prices of the Company’s shares during the 20 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 38% of the principal balance. The Company is required to reserve at least 5,000,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $100,292 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on March 27, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $154,359 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $100,000 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $62,359 in excess of the principal of $100,000 is charged to other expense on the condensed consolidated statement of operations.

On July 24, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $100,000 convertible note in its entirety.

On April 1, 2015, we signed a convertible debenture in the amount of $100,000. An interest charge of 8% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 60% of the average of the three lowest prices of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 25% to 35% of the principal balance. The Company is required to reserve five times the shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $126,037 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on April 1, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $155,793 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $100,000 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $55,793 in excess of the principal of $100,000 is charged to other expense on the condensed consolidated statement of operations.

On April 20, 2015, we signed a convertible debenture in the amount of $81,250. The Company received $74,687 net of $6,563 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest prices of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties of 20% of the principal balance. The Company is required to reserve at least 1,500,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $102,350 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on April 20, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $117,679 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $81,250 is offset by a debt discount of $81,250 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $42,992 in excess of the principal of $81,250 is charged to other expense on the condensed consolidated statement of operations.

On July 24, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $81,250 convertible note in its entirety.

On April 28, 2015, we signed a convertible debenture in the amount of $54,050. The Company received $50,000 net of $4,050 in fees. An interest charge of 9% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of $0.25 subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. The Company is required to reserve at least 650,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $17,022 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on April 28, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $35,143 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $54,050 is offset by a debt discount of $39,193 which will be amortized to interest expense over the expected eight month life of the debt.

On May 12, 2015, we signed a convertible debenture in the amount of $107,763. The Company received $100,000 net of $7,763 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest prices of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties of 20% of the principal balance. The Company is required to reserve at least 1,500,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $136,302 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on May 12, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $145,527 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $107,763 is offset by a debt discount of $107,763 which will be amortized to interest expense over the expected twelve month life of the debt. The residual amount of debt discount of $45,527 in excess of the principal of $107,763 is charged to other expense on the condensed consolidated statement of operations.

On May 20, 2015, we signed a convertible debenture in the amount of $100,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the VWAP of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 9.5 % to 33% of the principal balance. The Company is required to reserve three times the number of shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $84,145 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on May 20, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $92,715 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $100,000 is offset by a debt discount of $92,715 which will be amortized to interest expense over the expected twelve month life of the debt.

On May 26, 2015, we signed a convertible debenture in the amount of $63,500. The Company received $60,000 net of $3,500 in fees. An interest charge of 8% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 55% of the average of the three lowest prices of the Company’s shares during the 30 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 10% to 35% of the principal balance. The Company is required to reserve six times the number of shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $80,392 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on May 26, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $79,287 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $63,500 is offset by a debt discount of $63,500 which will be amortized to interest expense over the twelve month life of the debt. The residual amount of debt discount of $19,287 in excess of the principal of $63,500 is charged to other expense on the condensed consolidated statement of operations.

On July 24, 2015, subsequent to the end of the June 30, 2015 reporting period, we paid off this $63,500 convertible note in its entirety.

On June 23, 2015, we signed a convertible debenture in the amount of $126,000. The Company received $120,000 net of $6,000 in fees. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the average of the three lowest prices of the Company’s shares during the 15 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 3,101,000 shares of common stock for full conversion of this debenture. The maturity date is twelve months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $110,261 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on June 23, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $108,297 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $126,000 is offset by a debt discount of $114,297 which will be amortized to interest expense over the expected twelve month life of the debt.

On June 24, 2015, we signed a convertible debenture in the amount of $50,000. An interest charge of 4% per annum will be applied to the principal balance. The lender has the right, at any time after 180 days from the issue date to convert any or part of the outstanding and unpaid principal and interest into shares of the Company’s common stock at a price of 65% of the lowest VWAP of the Company’s shares during the 10 day period prior to conversion subject to adjustments for stock splits, stock dividends or rights offerings. The Company shall have the right to prepay the debenture for a payment of the outstanding principal plus unpaid interest at any time on or before six months after the effective date. If the Company chooses to prepay it will incur pre-payment penalties ranging from 19% to 33% of the principal balance. The Company is required to reserve at least 1,000,000 shares of common stock for full conversion of this debenture. The maturity date is twenty-four months after the effective date of the payment. The Company determined that the conversion feature met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature and account for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and will be amortized to interest expense over the life of the loan. The fair value of the conversion feature was $55,936 at June 30, 2015 and reflected in the conversion option liability line in the condensed consolidated balance sheet.

The proceeds from the convertible debt issued on June 24, 2015 were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in an allocation of $54,511 to the convertible option and accounted for as a liability in the Company’s condensed consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds of $50,000 is offset by a debt discount of $50,000 which will be amortized to interest expense over the expected twenty-four month life of the debt. The residual amount of debt discount of $4,511 in excess of the principal of $50,000 is charged to other expense on the condensed consolidated statement of operations.

During the six month period ended June 30, 2015 the company paid off seven convertible notes. As a result of the settlement of the notes, the fair value of conversion options embedded in these notes was measured on the date they were paid off and the remaining aggregate value of $848,073 was recognized as a gain on the extinguishment of embedded derivative liabilities in the consolidated statement of operations. In connection with the payoff of the convertible notes, the Company paid pre-payment penalties totaling $172,800.

Other Notes

On January 15, 2015 we signed a Merchant Agreement with a lender. Under the agreement we received $150,000 in exchange for rights to all customer receipts until the lender is paid $187,500, to be collected at the rate of $744 per business day. The payments are secured by essentially all tangible assets of the Company. $67,925 of the proceeds were used to pay off the outstanding balance of a previous loan from this lender. The Company paid $1,875 in fees in connection with this loan. The outstanding balance was recorded as other debt on the balance sheet.

On January 29, 2015 we signed a Merchant Agreement with a lender. Under the agreement we received $200,000 in exchange for rights to all customer receipts until the lender is paid $278,000, to be collected at the rate of $1,985 per business day. The payments are secured by essentially all tangible assets of the Company. The Company paid $999 in fees in connection with this loan. The outstanding balance is recorded as other debt on the balance sheet.

On March 17, 2015 we signed a Merchant Agreement with a lender. Under the agreement we received $50,000 in exchange for rights to all customer receipts until the lender is paid $67,450, to be collected at the rate of $559 per business day. The payments are secured by essentially all tangible assets of the Company. The Company paid $999 in fees in connection with this loan. The outstanding balance is recorded as other debt on the balance sheet.

On May 29, 2015 we signed a Merchant Agreement with a lender. Under the agreement we received $100,000 in exchange for rights to all customer receipts until the lender is paid $132,000, to be collected at the rate of $1,098 per business day. The payments are secured by essentially all tangible assets of the Company. The Company paid $3,999 in fees in connection with this loan. The outstanding balance is recorded as other debt on the balance sheet.

During the quarter ended June 30, 2015 we signed two ninety day notes with an investor. Under the terms of the notes, the company received a total of $500,000. The investor may choose to receive warrants or may choose to convert these loans in future company offerings at favorable terms.

During the six months ended June 30, 2015, the Company made payments of $333,641 in total on the non-convertible debt from non-related parties. As of June 30, 2015, the outstanding balance is $740,839 for other debt.

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Summary of Significant Accounting Policies - Summary of Stock Based Compensation Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Stock-based compensation expense	$ 55,616	$ 21,488	$ 110,506	$ 40,384
Research and Development
Stock-based compensation expense	11,523	10,301	22,865	17,854
Selling and Marketing
Stock-based compensation expense	7,099	5,914	14,075	11,905
General and Administrative
Stock-based compensation expense	$ 36,994	$ 5,273	$ 73,566	$ 10,625

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Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Forfeiture rate percentage			5.00%
Stock-based compensation expense	$ 55,616	$ 21,488	$ 110,506	$ 40,384

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Summary of Customer Concentration Risk Percentage

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2015 and 2014.

	For the Three Months Ended
	June 30,
	2015			2014
Top Five Customers		65	%		64	%
Federal Agencies		27	%		3	%

	For the Six Months Ended
	June 30,
		2015		2014
Top Five Customers		49	%	42	%
Federal Agencies		22	%	2	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2015 and December 31, 2014:

	June 30, 2015			December 31, 2014
Top Five Customers		70	%		86	%
Federal Agencies		1	%		9	%

Summary of Computation of Loss per Share

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2015 and 2014:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Numerator:
Net loss	$	(1,386,241	)	$	(603,187	)	$	(2,772,232	)	$	(2,362,842	)
Accrued dividend for Preferred Stock		(6,811	)		(9,606	)		(23,479	)		(54,593	)
Deemed dividend on Series K Convertible Preferred Stock		-			(107,996	)		-			(1,388,062	)
Net loss applicable to common shareholders	$	(1,393,052	)	$	(720,789	)	$	(2,795,711	)	$	(3,805,497	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		19,682,632			13,567,472			19,247,895			12,848,751
Loss per common share - basic and diluted	$	(0.07	)	$	(0.05	)	$	(0.14	)	$	(0.30	)

Summary of Anti-dilutive Securities Excluded from Computation of Earnings per Share

	For the Six Months Ended
	June 30,
	2015		2014
Stock options		3,251,250		1,585,750
Convertible debt		14,420,144		917,860
Common stock warrants		19,182,201		17,757,044
Convertible preferred stock:
Series D Convertible Preferred Stock		750,000		750,000
Series G Convertible Preferred Stock		865,700		865,700
Series H Convertible Preferred Stock		1,000,000		1,000,000
Series H2 Convertible Preferred Stock		2,100,000		-
Series J Convertible Preferred Stock		3,546,000		4,995,000
Series K Convertible Preferred Stock		11,416,000		11,463,000
		56,531,295		39,334,354

Summary of Stock Based Compensation Expense

The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Condensed Consolidated Statements of Operations:

	For the Three Months Ended June 30,
	2015		2014
Research and development	$	11,523	$	10,301
Selling and marketing		7,099		5,914
General and administrative		36,994		5,273
Total stock-based compensation expense	$	55,616	$	21,488

	For the Six Months Ended June 30,
	2015		2014
Research and development	$	22,865	$	17,854
Selling and marketing		14,075		11,905
General and administrative		73,566		10,625
Total stock-based compensation expense	$	110,506	$	40,384

Schedule of Liabilities Measured at Fair Value on Recurring Basis

The following tables set forth the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of June 30, 2015.

			Fair value measurements at June 30, 2015 using:
	June 30, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	124,643		-		-	$	124,643
Conversion Option Liabilities		1,731,650		-		-		1,731,650
Total Derivatives	$	1,856,293		-		-	$	1,856,293

	January 1, 2015		Issuance fair value		Change in fair value			Gain on extinguishment of embedded derivative liabilities			June 30, 2015
Series D Preferred Stock Purchase Warrants	$159,875		-		$	(35,232	)	-			$124,643
Conversion Option Liabilities		590,341		2,032,181		(42,799	)		(848,073	)		1,731,650
Total Derivatives	$	750,216	$	2,032,181	$	(78,031	)	$	(848,073	)	$	1,856,293

Schedule of Fair Value Assumptions

The assumptions for the binomial pricing model are represented in the table below for the warrants issued in the Series D private placement reflected on a per share common stock equivalent basis.

Assumptions	November 10, 2011			Warrants revalued at December 31, 2014			Warrants revalued at June 30, 2015
Expected life (in months)		60.0			22.0			16.0
Expected volatility		104.5	%		116.0	%		116.1	%
Risk-free interest rate		0.875	%		0.58	%		0.48	%
Exercise price	$	0.81		$	0.25		$	0.25
Fair value per warrant	$	0.54		$	0.15		$	0.12

The assumptions for the binomial pricing model are represented in the table below for the conversion options reflected on a per share common stock equivalent basis.

Assumptions	At Issuance fair value	At Settlement fair value	Conversion options revalued at June 30, 2015
Expected life (in months)	6-24	0-6	2-21
Expected volatility	104.2-153.8%	0.8-142.2%	88.6-130.6%
Risk-free interest rate	0.05-0.99%	0.01-0.18%	0.01-0.54%
Exercise price	$0.10-$0.35	$0.10-$0.16	$0.11-$0.25
Fair value per conversion option	$0.09-$0.28	$0.10-$0.26	$0.08-$0.16

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Subsequent Events

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

8) Subsequent Events

● On July 2, 2015 the Company received a total of $100,000 from two convertible notes.

● On July 2 and 14, 2015, we paid off the $150,000 convertible note from June 2014.

● On July 14, 2015 the Company issued 80,000 shares of common stock to a lender in exchange for the conversion of $20,000 of convertible debt.

● On July 22, 2015, (the “Issuance Date”) Pressure BioSciences Inc. (the “Company”) entered into a Subscription Agreement (the “Subscription Agreement”) with various individuals (each, a “Purchaser”), pursuant to which the Company sold Senior Secured Convertible Debentures (the “Debentures”) and warrants to purchase shares of common stock equal to 50% of the number of shares issuable pursuant to the subscription amount (the “Warrants”) for an aggregate purchase price of $2,180,000 (the “Purchase Price”). The total amount of the offering could be up to a potential amount of $5,000,000 with an over-allotment of $1,875,000 (the “Private Placement”). One or more additional closings may occur on or before September 7, 2015 (“Final Closing”). The Purchase Price consisted of $1,520,000 in cash from various subscribers and $660,000 from the conversion of principal and interest on outstanding promissory notes. For more detailed information about the Private Placement, please see the Form 8-K filed by the Company on July 28, 2015. The warrants include anti-dilution price protection for subsequent equity sales below the exercise price, and thus will be accounted for as derivative instruments.

● On July 23, 2015, the Company filed an Amendment to the Certificate of Incorporation in the Commonwealth of Massachusetts increasing the number of authorized common shares from 65,000,000 to 100,000,000 shares.

● On July 24, 2015, we paid off the $63,500 convertible note from May 26, 2015.

● On July 24, 2015, we paid off the $81,250 convertible note from April 20, 2015.

● On July 24, 2015, we paid off the $100,000 convertible note from March 27, 2015.

● On July 24, 2015, we paid off the $75,000 convertible note from November 3, 2014.

● On July 31, 2015, we paid off the $100,000 convertible note from February 22, 2015.

● On July 31, 2015, we paid off the $100,000 convertible note from February 2, 2015.

● On July 31, 2015, we paid off the $120,000 convertible note from February 2, 2015.

● On August 11, 2015, the Company issued 160,000 shares of common stock to a lender for the conversion of $40,000 of convertible debt.

● On August 11, 2015, the Company closed a Securities Exchange Agreement with Everest Investments Holdings of Warsaw, Poland under which Everest purchased 1,000,000 shares of the Company’s restricted Common Stock at a purchase price of $0.50/share. In exchange, the Company received 601,500 shares of Everest Investments (“Everest”), a publicly-traded company on the Main Market of the Warsaw Stock Exchange. The shares of Everest were valued at approximately $460,000 as of the closing date.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2015

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The condensed consolidated financial statements include the accounts of Pressure BioSciences, Inc., and its wholly-owned subsidiary PBI BioSeq, Inc. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

Use of Estimates

To prepare our condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we are required to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in projecting future cash flows to quantify deferred tax assets, the costs associated with fulfilling our warranty obligations for the instruments that we sell, and the estimates employed in our calculation of fair value of stock options awarded and warrant derivative liability. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from the estimates and assumptions used.

Concentrations

Concentrations

Credit Risk

Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, and trade receivables. We have cash investment policies which, among other things, limit investments to investment-grade securities. We perform ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the fact that many of our customers are government institutions, large pharmaceutical and biotechnology companies, and academic laboratories.

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2015 and 2014.

	For the Three Months Ended
	June 30,
	2015			2014
Top Five Customers		65	%		64	%
Federal Agencies		27	%		3	%

	For the Six Months Ended
	June 30,
		2015		2014
Top Five Customers		49	%	42	%
Federal Agencies		22	%	2	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2015 and December 31, 2014:

	June 30, 2015			December 31, 2014
Top Five Customers		70	%		86	%
Federal Agencies		1	%		9	%

Product Supply

BIT Group, Inc. has been our sole contract manufacturer for our PCT NEP3229 and NEP2320 instrumentation.

Computation of Loss per Share

Computation of Loss per Share

Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For purposes of this calculation, convertible preferred stock, common stock dividends, and warrants and options to acquire common stock, are all considered common stock equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive to our net loss.

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2015 and 2014:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2015			2014			2015			2014
Numerator:
Net loss	$	(1,572,850	)	$	(603,187	)	$	(3,620,305	)	$	(2,362,842	)
Accrued dividend for Preferred Stock		(6,811	)		(9,606	)		(23,479	)		(54,593	)
Deemed dividend on Series K Convertible Preferred Stock		-			(107,996	)		-			(1,388,062	)
Net loss applicable to common shareholders	$	(1,579,661	)	$	(720,789	)	$	(3,643,784	)	$	(3,805,497	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		19,682,632			13,567,472			19,247,895			12,848,751
Loss per common share - basic and diluted	$	(0.08	)	$	(0.05	)	$	(0.19	)	$	(0.30	)

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series G Convertible Preferred Stock, Series H Convertible Preferred Stock, Series J Convertible Preferred Stock and Series K Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

	For the Six Months Ended
	June 30,
	2015		2014
Stock options		3,251,250		1,585,750
Convertible debt		14,420,144		917,860
Common stock warrants		19,182,201		17,757,044
Convertible preferred stock:
Series D Convertible Preferred Stock		750,000		750,000
Series G Convertible Preferred Stock		865,700		865,700
Series H Convertible Preferred Stock		1,000,000		1,000,000
Series H2 Convertible Preferred Stock		2,100,000		-
Series J Convertible Preferred Stock		3,546,000		4,995,000
Series K Convertible Preferred Stock		11,416,000		11,463,000
		56,531,295		39,334,354

Accounting for Stock-Based Compensation Expense

We maintain equity compensation plans under which incentive stock options and non-qualified stock options are granted to employees, independent members of our Board of Directors and outside consultants. We recognize stock-based compensation expense over the requisite service period using the Black-Scholes formula to estimate the fair value of the stock options on the date of grant.

Accounting for Stock-Based Compensation Expense

Accounting for Stock-Based Compensation Expense

We maintain equity compensation plans under which incentive stock options and non-qualified stock options are granted to employees, independent members of our Board of Directors and outside consultants. We recognize stock-based compensation expense over the requisite service period using the Black-Scholes formula to estimate the fair value of the stock options on the date of grant.

Determining Fair Value of Stock Option Grants

Determining Fair Value of Stock Option Grants

Valuation and Amortization Method - The fair value of each option award is estimated on the date of grant using the Black-Scholes pricing model based on certain assumptions. The estimated fair value of employee stock options is amortized to expense using the straight-line method over the vesting period.

Expected Term - The Company uses the simplified calculation of expected life, as the Company does not currently have sufficient historical exercise data on which to base an estimate of expected term. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted.

Expected Volatility - Expected volatility is based on the Company’s historical stock volatility data over the expected term of the award.

Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes valuation method on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

Forfeitures - The Company records stock-based compensation expense only for those awards that are expected to vest. The Company estimated a forfeiture rate of 5% for awards granted based on historical experience and future expectations of options vesting. The Company used this historical rate as our assumption in calculating future stock-based compensation expense.

The Company recognized stock-based compensation expense of $55,616 and $21,488 for the three months ended June 30, 2015 and 2014, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Condensed Consolidated Statements of Operations:

	For the Three Months Ended June 30,
	2015		2014
Research and development	$	11,523	$	10,301
Selling and marketing		7,099		5,914
General and administrative		36,994		5,273
Total stock-based compensation expense	$	55,616	$	21,488

We recognized stock-based compensation expense of $110,506 and $40,384 for the six months ended June 30, 2015 and 2014, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Condensed Consolidated Statements of Operations:

	For the Six Months Ended June 30,
	2015		2014
Research and development	$	22,865	$	17,854
Selling and marketing		14,075		11,905
General and administrative		73,566		10,625
Total stock-based compensation expense	$	110,506	$	40,384

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Due to their short maturities, the carrying amounts for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair value. Long-term liabilities are primarily related to liabilities transferred under contractual arrangements with carrying values that approximate fair value.

Fair Value Measurements

Fair Value Measurements

The Company follows the guidance of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) as it related to all financial assets and financial liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

The Company generally defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that it does not have any financial assets measured at fair value and that its financial liabilities are currently all classified within Level 3 in the fair value hierarchy. The development of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management.

The following tables set forth the Company’s financial liabilities that were accounted for at fair value on a recurring basis as of June 30, 2015.

			Fair value measurements at June 30, 2015 using:
	June 30, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	124,643		-		-	$	124,643
Conversion Option Liabilities		1,731,650		-		-		1,731,650
Total Derivatives	$	1,856,293		-		-	$	1,856,293

	January 1, 2015		Issuance fair value		Change in fair value			Reclassified to equity			June 30, 2015
Series D Preferred Stock Purchase Warrants	$159,875		-		$(35,232)			-			$124,643
Conversion Option Liabilities		590,341		2,032,181		(42,799	)		(848,073	)		1,731,650
Total Derivatives	$	750,216	$	2,032,181	$	(78,031	)	$	(848,073	)	$	1,856,293

The assumptions for the binomial pricing model are represented in the table below for the warrants issued in the Series D private placement reflected on a per share common stock equivalent basis.

Assumptions	November 10, 2011			Warrants revalued at December 31, 2014			Warrants revalued at June 30, 2015
Expected life (in months)		60.0			22.0			16.0
Expected volatility		104.5	%		116.0	%		116.1	%
Risk-free interest rate		0.875	%		0.58	%		0.48	%
Exercise price	$	0.81		$	0.25		$	0.25
Fair value per warrant	$	0.54		$	0.15		$	0.12

The assumptions for the binomial pricing model are represented in the table below for the conversion options reflected on a per share common stock equivalent basis.

Assumptions	At Issuance fair value	At Settlement fair value	Conversion options revalued at June 30, 2015
Expected life (in months)	6-24	0-6	2-21
Expected volatility	104.2-153.8%	0.8-142.2	88.6-130.6%
Risk-free interest rate	0.05-0.99%	0.01-0.18	0.01-0.54%
Exercise price	$0.10-$0.35	$0.10-$0.16	$0.11-$0.25
Fair value per conversion option	$0.09-$0.28	$0.10-$0.26	$0.08-$0.16

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Stockholders' Deficit (Tables)

6 Months Ended

Jun. 30, 2015

Stockholders' Equity Note [Abstract]

Schedule of Concerning Options and Warrants Outstanding and Exercisable

The following tables summarize information concerning options and warrants outstanding and exercisable:

	Stock Options					Warrants
				Weighted					Weighted
				Average price					Average price		Total
	Shares			per share		Shares			per share		Shares			Exercisable
Balance outstanding, January 1, 2014		1,771,708		$	0.71		15,012,327		$	0.57		16,784,035			16,611,528
Granted		1,675,500			0.30		8,903,000			0.38		10,578,500
Exercised		-			-		(4,208,658	)		0.25		(4,208,658	)
Expired		(10,000	)		1.00		(524,468	)		0.74		(534,468	)
Forfeited		(30,958	)		0.71		-			-		(30,958
Balance outstanding, December 31, 2014		3,406,250		$	0.51		19,182,201		$	0.49		22,588,451			20,858,111
Granted		-			-		-			-		-
Exercised		-			-		-			-		-
Expired		(155,000	)		1.00		-			-		-
Forfeited		-			-		-			-		-
Balance outstanding, June 30, 2015		3,251,250		$	0.49		19,182,201		$	0.49		22,588,451			21,315,198

Schedule of Share-based Compensation Stock Option Plans by Exercise Price Range

	Options Outstanding						Options Exercisable
	Weighted Average						Weighted Average
Range of Exercise Prices	Number of Options		Remaining Contractual Life (Years)		Exercise Price		Number of Options		Remaining Contractual Life (Years)		Exercise Price
$0.30  - $0.39		1,675,500		9.2	$	0.30		666,161		9.2	$	0.30
0.40 - 0.49		311,000		7.9		0.40		311,000		7.9		0.40
0.50 - 0.59		251,250		7.1		0.50		251,250		7.1		0.50
0.60  - 0.69		467,500		4.5		0.60		445,471		4.4		0.60
1.00 - 1.25		546,000		2.3		1.00		539,127		2.2		1.00
$0.30 - $1.25		3,251,250		7.1	$	0.49		2,213,009		6.1	$	0.57

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Summary of Significant Accounting Policies - Summary of Computation of Loss per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Accounting Policies [Abstract]
Net loss	$ (1,386,241)	$ (603,187)	$ (2,772,232)	$ (2,362,842)
Accrued dividend for Preferred Stock	$ (6,811)	(9,606)	$ (23,479)	(54,593)
Deemed dividend on Series K convertible preferred stock		(107,996)		(1,388,062)
Net loss applicable to common shareholders	$ (1,393,052)	$ (720,789)	$ (2,795,711)	$ (3,805,497)
Weighted average common stock shares outstanding	19,682,632	13,567,472	19,247,895	12,848,751
Loss per common share - basic and diluted	$ (0.07)	$ (0.05)	$ (0.14)	$ (0.30)

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Commitments and Contingencies (Details)	1 Months Ended		6 Months Ended
	Sep. 30, 2014 USD ($) ft²	Nov. 30, 2007 USD ($) ft²	Jun. 30, 2015 USD ($)	Jun. 30, 2014 USD ($)
Commitments And Contingencies Details
Lease agreement description		In November 2007, we signed a lease agreement commencing in February 2008 pursuant to which we lease approximately 5,500 square feet of office space. We extended the lease term until December 31, 2015 with a monthly payment of $4,800.
Area of lease | ft²	855	5,500
Extended lease term	Dec. 31, 2017	Dec. 31, 2015
Rental expenses	$ 3,094	$ 4,800	$ 50,406	$ 61,800
Grand received			$ 1,000,000

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (2,772,232)	$ (2,362,842)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	12,187	39,731
Accretion of interest and amortization of debt discount	1,047,864	$ 393,845
Debt conversion option value in excess of debt	476,442
Stock-based compensation expense	110,506	$ 40,384
Amortization of third party fees paid in common stock	167,936	$ 159,482
Gain on extinguishment of embedded derivative liabilities	(848,073)
Change in fair value of derivative liabilities	(78,031)	$ 255,406
Changes in operating assets and liabilities:
Accounts receivable	(77,936)	(43,090)
Inventories	66,661	(116,543)
Prepaid expenses and other current assets	16,723	(40,909)
Accounts payable	(56,302)	59,309
Accrued employee compensation	(4,078)	(28,987)
Deferred revenue and other accrued expenses	87,548	(112,262)
Net cash used in operating activities	(1,850,785)	(1,756,476)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property plant and equipment	(6,662)	(7,139)
Net cash used in investing activities	(6,662)	$ (7,139)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from related party debt	6,300
Payment of related party debt	(12,300)	$ (25,182)
Net proceeds from convertible debt	1,609,437	420,434
Payments on convertible debt	(667,450)	(303,100)
Net proceeds from non-convertible debt	992,128	196,250
Payments on non-convertible debt	(333,641)	$ (172,360)
Payment of prepayment penalty	$ (172,800)
Net proceeds from the issuance of common stock		$ 149,165
Net proceeds from the issuance of convertible preferred stock		1,476,360
Net cash provided by financing activities	$ 1,421,674	1,741,567
NET DECREASE IN CASH	(435,773)	(22,048)
CASH AT BEGINNING OF YEAR	473,948	31,417
CASH AT END OF PERIOD	38,175	9,369
SUPPLEMENTAL INFORMATION:
Interest paid in cash	$ 203,311	$ 33,445
Income taxes paid in cash
NON CASH FINANCING ACTIVITY:
Convertible debt exchanged for convertible preferred stock		$ 270,000
Accrued dividends on preferred stock	$ 23,479	54,593
Issuance of convertible preferred stock for interest		30,000
Issuance of convertible preferred stock for board of director and other fees		92,750
Deemed dividend on convertible preferred stock		1,388,062
Convertible debt exchanged for common stock	$ 248,000	$ 87,500
Debt discount from derivative liability	1,555,739
Extension fees added to principal	54,000
Prepayment penalty and accrued interest enrolled into debt principal	$ 48,950
Common stock issued for preferred dividends		$ 58,268

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

5) Commitments and Contingencies

Operating Leases

Our corporate offices are currently located at 14 Norfolk Avenue, South Easton, Massachusetts 02375. In November 2007, we signed a lease agreement commencing in February 2008 pursuant to which we lease approximately 5,500 square feet of office space. We extended the lease term until December 31, 2015 with a monthly payment of $4,800.

In September 2014 we moved to approximately 855 square feet of lab space in Medford, MA with a monthly payment of $3,094. The lease term runs until December 31, 2017.

Rental costs are expensed as incurred. During the six months ended June 30, 2015 and 2014 we incurred $50,406 and $61,800 in rent expense, respectively for the use of our corporate office and research and development facilities.

Government Grants

We have received a $1 million NIH SBIR Phase II Grant. Under the grant, the NIH has committed to pay the company to develop a high-throughput, high pressure-based DNA Shearing System for Next Generation Sequencing applications.

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Convertible Debt and Other Debt (Details Narrative) - USD ($)																						6 Months Ended
	Jun. 24, 2015	Jun. 23, 2015	May. 29, 2015	May. 26, 2015	May. 20, 2015	May. 12, 2015	Apr. 28, 2015	Apr. 20, 2015	Apr. 02, 2015	Mar. 27, 2015	Mar. 26, 2015	Mar. 26, 2015	Mar. 20, 2015	Mar. 17, 2015	Mar. 06, 2015	Mar. 04, 2015	Feb. 25, 2015	Feb. 22, 2015	Feb. 02, 2015	Jan. 29, 2015	Jan. 15, 2015	Jun. 30, 2015	Jun. 30, 2014	Apr. 17, 2015	Apr. 10, 2015	Mar. 31, 2015	Mar. 18, 2015	Feb. 18, 2015	Jan. 14, 2015	Dec. 31, 2014
Initial payment by lender as per the agreement																						$ 500,000
Debenture fee			$ 8,000														$ 13,000							$ 0	$ 10,000	$ 0	$ 0	$ 10,000	$ 13,000
Estimated fair value of convertible option accounted as liability																						2,032,181
Debt discount amortized																						1,047,864	$ 393,845
Residual value of debt discount																						1,176,668								$ 328,681
Fixed assets used to secure notes																						30,500								$ 36,025
Conversion of option liabilities into equity value																						848,073
Paid pre-payment penalties																						172,800
Payments on non-convertible debt																						(333,641)	$ (172,360)
Outstanding balance for other debt																						740,839
Convertible Debt One [Member]
Convertible debenture face amount										$ 52,500									$ 100,000
Initial payment by lender as per the agreement										50,000									95,000
Debenture fee										$ 2,500									$ 5,000
Convertible debt interest rate										4.00%									4.00%
Debenture conversion term										180 days									180 days
Debt conversion, common stock price percentage										65.00%									65.00%
Debt conversion threshold number of trading days										15 days									15 days
Minimum number of common stock kept as reserve for conversion										873,000									3,000,000
Fair value of conversion future																						75,525
Estimated fair value of convertible option accounted as liability										$ 57,502									$ 62,219
Gross proceeds from derivative hedging activity										52,500									100,000
Debt discount amortized										52,500									$ 67,219
Residual value of debt discount										7,502
Other expenses										$ 52,500
Convertible Debt One [Member] | July 31, 2015 [Member]
Paid off convertible note																						100,000
Convertible Debt One [Member] | Minimum [Member]
Debt prepayment penalties percentage										19.00%									19.00%
Convertible Debt One [Member] | Maximum [Member]
Debt prepayment penalties percentage										38.00%									33.00%
Convertible Debt Two [Member]
Convertible debenture face amount										$ 100,000									$ 120,000
Initial payment by lender as per the agreement										92,000									115,000
Debenture fee										$ 8,000									$ 5,000
Convertible debt interest rate										8.00%									4.00%
Debenture conversion term										180 days									180 days
Debt conversion, common stock price percentage										55.00%									65.00%
Debt conversion threshold number of trading days										20 days									15 days
Minimum number of common stock kept as reserve for conversion										5,000,000									2,886,000
Fair value of conversion future																						90,630
Estimated fair value of convertible option accounted as liability										$ 154,359									$ 74,663
Gross proceeds from derivative hedging activity										100,000									120,000
Debt discount amortized										100,000									$ 79,663
Residual value of debt discount										62,359
Other expenses										$ 100,000
Convertible Debt Two [Member] | July 31, 2015 [Member]
Paid off convertible note																						$ 100,000
Convertible Debt Two [Member] | July 24, 2015 [Member]
Minimum number of common stock kept as reserve for conversion																						100,000
Convertible Debt Two [Member] | Minimum [Member]
Debt prepayment penalties percentage										19.00%
Convertible Debt Two [Member] | Maximum [Member]
Debt prepayment penalties percentage										38.00%
Convertible Note 2 [Member] | July 31, 2015 [Member]
Paid off convertible note																						$ 120,000
Convertible Debenture [Member]
Convertible debenture face amount								$ 81,250	$ 100,000									$ 100,000
Initial payment by lender as per the agreement								74,687
Debenture fee								$ 6,563
Convertible debt interest rate								4.00%	8.00%									4.00%
Debenture conversion term								180 days	180 days									180 days
Debt conversion, common stock price percentage								55.00%	60.00%									65.00%
Debt conversion threshold number of trading days								20 days	20 days									10 days
Fair value of conversion future																						79,335
Estimated fair value of convertible option accounted as liability								$ 1,500,000	$ 155,793
Gross proceeds from derivative hedging activity								117,679	100,000									$ 100,000
Debt discount amortized								81,250	100,000									$ 61,567
Paid off convertible note								81,250
Residual value of debt discount								42,992	55,793
Other expenses								$ 81,250	$ 100,000
Convertible Debenture [Member] | Minimum [Member]
Debt prepayment penalties percentage									25.00%									19.00%
Convertible Debenture [Member] | Maximum [Member]
Debt prepayment penalties percentage									35.00%									33.00%
Convertible Debt Feb 25, 2015 [Member]
Convertible debenture face amount																	112,500
Initial payment by lender as per the agreement																	108,500
Debenture fee																	$ 4,000
Convertible debt interest rate																	8.00%
Debenture conversion term																	180 days
Debt conversion, common stock price percentage																	55.00%
Debt conversion threshold number of trading days																	30 days
Fair value of conversion future																						127,192
Estimated fair value of convertible option accounted as liability																	$ 312,847
Gross proceeds from derivative hedging activity																	112,500
Debt discount amortized																	112,500
Residual value of debt discount																	204,347
Other expenses																	$ 112,500
Convertible Debt Feb 25, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage																	19.00%
Convertible Debt Feb 25, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage																	33.00%
Convertible Debt Mar 4, 2015 [Member]
Convertible debenture face amount																$ 52,500
Initial payment by lender as per the agreement																50,000
Debenture fee																$ 2,500
Convertible debt interest rate																4.00%
Debenture conversion term																180 days
Debt conversion, common stock price percentage																65.00%
Debt conversion threshold number of trading days																15 days
Minimum number of common stock kept as reserve for conversion																873,000
Fair value of conversion future																						42,386
Estimated fair value of convertible option accounted as liability																$ 53,213
Gross proceeds from derivative hedging activity																52,500
Debt discount amortized																52,500
Residual value of debt discount																3,213
Other expenses																$ 52,500
Convertible Debt Mar 4, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage																19.00%
Convertible Debt Mar 4, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage																33.00%
Convertible Debt Mar 6, 2015 [Member]
Convertible debenture face amount															$ 236,250
Initial payment by lender as per the agreement															211,800
Debenture fee															24,450
Restricted stock value															$ 9,450
Convertible debt interest rate															2.00%
Debenture conversion term															180 days
Debt conversion, common stock price percentage															65.00%
Debt conversion threshold number of trading days															3 days
Minimum number of common stock kept as reserve for conversion															3,000,000
Fair value of conversion future																						145,216
Estimated fair value of convertible option accounted as liability															$ 212,918
Gross proceeds from derivative hedging activity															236,250
Debt discount amortized															$ 236,250
Convertible Debt Mar 6, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage															19.00%
Convertible Debt Mar 6, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage															33.00%
Convertible Debt On March 17, 2015 [Member]
Convertible debenture face amount														$ 50,000
Convertible debt interest rate														4.00%
Debenture conversion term														180 days
Debt conversion, common stock price percentage														65.00%
Debt conversion threshold number of trading days														10 days
Minimum number of common stock kept as reserve for conversion														1,000,000
Fair value of conversion future																						53,686
Estimated fair value of convertible option accounted as liability														$ 64,382
Gross proceeds from derivative hedging activity														50,000
Debt discount amortized														50,000
Residual value of debt discount														14,382
Other expenses														$ 50,000
Convertible Debt On March 17, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage														19.00%
Convertible Debt On March 17, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage														33.00%
Convertible Debt Mar 20, 2015 [Member]
Convertible debenture face amount													$ 25,000
Convertible debt interest rate													4.00%
Debenture conversion term													180 days
Debt conversion, common stock price percentage													65.00%
Debt conversion threshold number of trading days													10 days
Fair value of conversion future																						20,483
Estimated fair value of convertible option accounted as liability													$ 25,077
Gross proceeds from derivative hedging activity													25,000
Debt discount amortized													25,000
Residual value of debt discount													77
Other expenses													$ 25,000
Convertible Debt Mar 20, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage													19.00%
Convertible Debt Mar 20, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage													33.00%
Convertible Debt Mar 26, 2015 [Member]
Convertible debenture face amount											$ 150,000	$ 150,000
Initial payment by lender as per the agreement											148,000	148,000
Debenture fee											$ 2,000	$ 2,000
Convertible debt interest rate											6.00%	6.00%
Debenture conversion term											180 days
Debt conversion, common stock price percentage											65.00%
Debt conversion threshold number of trading days											15 days
Minimum number of common stock kept as reserve for conversion											3,336,000
Fair value of conversion future																						160,227
Estimated fair value of convertible option accounted as liability											$ 164,501
Gross proceeds from derivative hedging activity											150,000
Debt discount amortized											150,000
Residual value of debt discount											16,501	$ 16,501
Other expenses											$ 150,000
Convertible Debt Mar 26, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage												19.00%
Convertible Debt Mar 26, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage												37.50%
Convertible Debt Mar 27, 2015 [Member] | Convertible Debenture [Member]
Fair value of conversion future																						49,203
Convertible Debt Mar 27, 2015 [Member] | Convertible Debt [Member]
Fair value of conversion future																						100,292
Convertible Debt April 1, 2015 [Member]
Convertible debenture face amount					$ 100,000
Debenture conversion term					180 days
Debt conversion, common stock price percentage					65.00%
Debt conversion threshold number of trading days					10 days
Fair value of conversion future					$ 84,145																	126,037
Estimated fair value of convertible option accounted as liability					92,715
Gross proceeds from derivative hedging activity					100,000
Debt discount amortized					$ 92,715
Convertible Debt April 1, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage					9.50%
Convertible Debt April 1, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage					33.00%
Convertible Debt April 20, 2015 [Member]
Convertible debenture face amount				$ 63,500
Initial payment by lender as per the agreement				60,000
Debenture fee				$ 35,000
Convertible debt interest rate				8.00%
Debenture conversion term				180 days
Debt conversion, common stock price percentage				55.00%
Debt conversion threshold number of trading days				30 days
Fair value of conversion future				$ 80,392																		102,350
Estimated fair value of convertible option accounted as liability				79,287
Gross proceeds from derivative hedging activity				63,500
Debt discount amortized				63,500
Residual value of debt discount				19,287
Other expenses				$ 63,500
Convertible Debt April 20, 2015 [Member] | July 24, 2015 [Member]
Paid off convertible note																						63,500
Convertible Debt April 20, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage				10.00%
Convertible Debt April 20, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage				35.00%
Convertible Debt April 28, 2015 [Member]
Convertible debenture face amount							$ 54,050
Initial payment by lender as per the agreement							50,000
Debenture fee							$ 4,050
Convertible debt interest rate							9.00%
Debenture conversion term							180 days
Minimum number of common stock kept as reserve for conversion							650,000
Fair value of conversion future																						$ 17,022
Estimated fair value of convertible option accounted as liability							$ 35,143
Gross proceeds from derivative hedging activity							54,050
Debt discount amortized							$ 39,193
Price per share							$ .25
Convertible Debt May 12, 2015 [Member]
Convertible debenture face amount						$ 107,763
Initial payment by lender as per the agreement						100,000
Debenture fee						$ 7,763
Convertible debt interest rate						4.00%
Debenture conversion term						180 days
Debt conversion, common stock price percentage						55.00%
Debt conversion threshold number of trading days						10 days
Debt prepayment penalties percentage						20.00%
Minimum number of common stock kept as reserve for conversion						1,500,000
Estimated fair value of convertible option accounted as liability						$ 145,527
Gross proceeds from derivative hedging activity						107,763
Debt discount amortized						107,763
Residual value of debt discount						45,527
Other expenses						$ 107,763
Other Notes May 29, 2015 [Member]
Convertible debenture face amount			100,000
Initial payment by lender as per the agreement			132,000
Debenture fee			3,999
Fair value of conversion future			136,302
Debt payment per business day			$ 1,098
Convertible Debt June 23, 2015 [Member]
Convertible debenture face amount		$ 126,000
Initial payment by lender as per the agreement		120,000
Debenture fee		$ 6,000
Convertible debt interest rate		4.00%
Debenture conversion term		180 days
Debt conversion, common stock price percentage		65.00%
Debt conversion threshold number of trading days		15 days
Minimum number of common stock kept as reserve for conversion		3,101,000
Fair value of conversion future		$ 110,261
Estimated fair value of convertible option accounted as liability		108,297
Gross proceeds from derivative hedging activity		126,000
Debt discount amortized		$ 114,297
Convertible Debt June 23, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage		19.00%
Convertible Debt June 23, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage		33.00%
Convertible Debt June 24, 2015 [Member]
Convertible debenture face amount	$ 50,000
Convertible debt interest rate	4.00%
Debenture conversion term	180 days
Debt conversion, common stock price percentage	65.00%
Debt conversion threshold number of trading days	10 days
Minimum number of common stock kept as reserve for conversion	1,000,000
Fair value of conversion future	$ 55,936
Estimated fair value of convertible option accounted as liability	54,511
Gross proceeds from derivative hedging activity	50,000
Debt discount amortized	50,000
Residual value of debt discount	4,511
Other expenses	$ 50,000
Convertible Debt June 24, 2015 [Member] | Minimum [Member]
Debt prepayment penalties percentage	19.00%
Convertible Debt June 24, 2015 [Member] | Maximum [Member]
Debt prepayment penalties percentage	33.00%
Other Notes Jan 15, 2015 [Member]
Convertible debenture face amount																					$ 150,000
Initial payment by lender as per the agreement																					187,500
Debenture fee																					1,875
Debt payment per business day																					744
Fixed assets used to secure notes																					$ 67,925
Other Notes Jan 29, 2015 [Member]
Convertible debenture face amount																				$ 200,000
Initial payment by lender as per the agreement																				278,000
Debenture fee																				999
Debt payment per business day																				$ 1,985
Other Notes Mar 17, 2015 [Member]
Convertible debenture face amount										$ 50,000
Initial payment by lender as per the agreement										67,450
Debenture fee										$ 999
Debt payment per business day														$ 559

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Summary of Significant Accounting Policies - Summary of Customer Concentration Risk Percentage (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Top Five Customers [Member] | Sales Revenue, Net [Member]
Concentration as a percentage	65.00%	64.00%	49.00%	42.00%
Top Five Customers [Member] | Accounts Receivable [Member]
Concentration as a percentage			70.00%		86.00%
Federal Agencies [Member] | Sales Revenue, Net [Member]
Concentration as a percentage	27.00%	3.00%	22.00%	2.00%
Federal Agencies [Member] | Accounts Receivable [Member]
Concentration as a percentage			1.00%		9.00%