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 March 31, 2016

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 May 13, 2016 was 27,649,437.

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements	3
Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015 (Unaudited)	3
Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2016 and 2015 (Unaudited)	4
Condensed Consolidated Statements of Comprehensive Loss for the Three Months Ended March 31, 2016 and 2015 (Unaudited)	5
Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2016 and 2015 (Unaudited)	6
Notes to Condensed Consolidated Financial Statements (Unaudited)	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3. Quantitative and Qualitative Disclosure About Market Risk	26
Item 4. Controls and Procedures	26
PART II - OTHER INFORMATION	27
Item 1. Legal Proceedings	27
Item 1A. Risk Factors	27
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	27
Item 3. Defaults Upon Senior Securities	27
Item 4. Mine Safety Disclosures	27
Item 5. Other Information	27
Item 6. Exhibits	28
SIGNATURES	29

2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	March 31, 2016			December 31, 2015
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	93,387		$	116,783
Accounts receivable		393,911			113,256
Inventories, net of $50,000 reserve at March 31, 2016 and December 31, 2015		966,549			1,038,371
Prepaid income taxes		7,381			7,381
Prepaid expenses and other current assets		337,505			213,926
Total current assets		1,798,733			1,489,717
Investment in available-for-sale equity securities		154,824			294,522
Property and equipment, net		13,951			20,149
TOTAL ASSETS	$	1,967,508		$	1,804,388
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Accounts payable	$	780,136		$	941,389
Accrued employee compensation		214,119			176,009
Accrued professional fees and other		645,003			821,088
Deferred revenue		207,129			140,878
Convertible debt, net of debt discount of $0 at March 31, 2016 and December 31, 2015		100,000			100,000
Other debt, net of discount of $2,499 and $3,041, respectively		238,979			151,628
Warrant derivative liability		5,571,000			3,295,976
Conversion option liability		7,028,206			3,940,791
Total current liabilities		14,784,572			9,567,759
LONG TERM LIABILITIES
Related party convertible debt, net of debt discount of $288,930 and $0, respectively		2,074			-
Convertible debt, net of debt discount of $5,655,498 and $5,223,658, respectively		1,005,002			177,342
Deferred revenue		36,935			36,935
TOTAL LIABILITIES		15,828,583			9,782,036
COMMITMENTS AND CONTINGENCIES (Note 5)
STOCKHOLDERS’ DEFICIT
Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively (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 March 31, 2016 and December 31, 2015, respectively		866			866
Series H Convertible Preferred Stock, $.01 par value; 10,000 shares authorized; 10,000 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively		100			100
Series H2 Convertible Preferred Stock, $.01 par value; 21 shares authorized; 21 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively		-			-
Series J Convertible Preferred Stock, $.01 par value; 6,250 shares authorized; 3,546 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively		36			36
Series K Convertible Preferred Stock, $.01 par value; 15,000 shares authorized; 11,416 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively		114			114
Common stock, $.01 par value; 100,000,000 shares authorized; 23,309,898 and 23,004,898 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively		233,100			230,050
Warrants to acquire common stock		5,416,681			5,416,681
Additional paid-in capital		26,240,345			26,036,733
Accumulated other comprehensive income		(244,723	)		(105,025	)
Accumulated deficit		(45,507,597	)		(39,557,206	)
Total stockholders’ deficit		(13,861,075	)		(7,977,648	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	1,967,508		$	1,804,388

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 March 31,
	2016			2015
Revenue:
Products, services, other	$	454,350		$	359,364
Grant revenue		56,128			80,770
Total revenue		510,478			440,134
Costs and expenses:
Cost of products and services		221,699			190,783
Research and development		335,270			231,923
Selling and marketing		191,236			166,223
General and administrative		808,218			726,024
Total operating costs and expenses		1,556,423			1,314,953
Operating loss		(1,045,945	)		(874,819	)
Other (expense) income:
Interest expense, net		(835,144	)		(605,585	)
Other expense		(912	)		(36,913	)
Change in fair value of derivative liabilities		(4,068,390	)		(530,138	)
Total other (expense) income		(4,904,446	)		(1,172,636	)
Net loss		(5,950,391	)		(2,047,455	)
Accrued dividends on convertible preferred stock		-			(16,668	)
Net loss applicable to common shareholders	$	(5,950,391	)	$	(2,064,123	)
Net loss per share attributable to common stockholders - basic and diluted	$	(0.26	)	$	(0.11	)
Weighted average common stock shares outstanding used in the basic and diluted net loss per share calculation		23,198,360			18,840,390

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

4

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

	For the Three Months Ended
	March 31,
	2016			2015
Comprehensive Loss
Net loss	$	(5,950,391	)	$	(2,047,455	)
Other comprehensive loss
Unrealized loss on marketable securities		(139,698	)		-
Comprehensive loss	$	(6,090,089	)	$	(2,047,455	)

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

5

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Three Months Ended
	March 31,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(5,950,391	)	$	(2,047,455	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		6,198			6,919
Accretion of interest and amortization of debt discount		839,234			425,226
Gain on settlement of debt		(5,044	)		-
Stock-based compensation expense		101,462			54,890
Amortization of third party fees paid in common stock and warrants		105,200			46,744
Change in fair value of derivative liabilities		4,068,390			530,138
Changes in operating assets and liabilities:
Accounts receivable		(280,655	)		(51,391	)
Inventories		71,822			51,557
Prepaid expenses and other assets		43,303			(22,836	)
Accounts payable		(161,253	)		(115,670	)
Accrued employee compensation		38,110			(16	)
Deferred revenue and other accrued expenses		(109,834	)		71,412
Net cash used in operating activities		(1,233,458	)		(1,050,482	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property plant and equipment		-			-
Net cash used in investing activities		-			-
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from related party convertible debt		96,667			6,300
Payment of related party debt		-			(12,300	)
Net proceeds from convertible debt		1,025,500			1,054,750
Payments on convertible debt		-			(500,500	)
Net proceeds from non-convertible debt		256,660			396,127
Payments on non-convertible debt		(168,765	)		(147,533	)
Net cash provided by financing activities		1,210,062			796,844
NET DECREASE IN CASH		(23,396	)		(253,638	)
CASH AT BEGINNING OF YEAR		116,783			473,948
CASH AT END OF PERIOD	$	93,387		$	220,310
SUPPLEMENTAL INFORMATION
Interest paid in cash	$	1,154		$	203,311
Income taxes paid in cash		-			-
NON CASH TRANSACTIONS:
Convertible debt exchanged for common stock		-			138,000
Reclassification of conversion option liabilities into equity		-			661,464
Accrued dividends on preferred stock		-			16,668
Unrealized loss from available-for-sale equity securities		139,698			-
Debt discount from derivative liability		1,294,049			-
Convertible debt held in escrow		166,882			-

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

6

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2016

(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”).

In 2015, together with an investment bank, we formed a subsidiary called Pressure BioSciences Europe (“PBI Europe”) in Poland. We have 49% ownership interest with the investment bank retaining 51%. As of now, PBI Europe does not have any operating activities but is expected to commence operations in 2016. Therefore, we don’t have control of the subsidiary and did not consolidate in our financial statements.

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 March 31, 2016, 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, we completed an over-subscribed $5.0 million debt financing on March 31, 2016 with a total amount raised of $6.3 million. 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 three months ended March 31, 2016 we received $1,684,549 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.

7

3) Interim Financial Reporting

The accompanying unaudited condensed consolidated balance sheet as of December 31, 2015, which was derived from audited financial statements, and the unaudited interim 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 ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015 as filed with the Securities and Exchange Commission on April 5, 2016.

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 ended March 31, 2016 and 2015.

	For the Three Months Ended
	March 31,
	2016			2015
Top Five Customers		46	%		64	%
Federal Agencies		11	%		26	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of March 31, 2016 and December 31, 2015:

	March 31, 2016			December, 31, 2015
Top Five Customers		55	%		93	%
Federal Agencies		0	%		1	%

Product Supply

BIT Group, Inc. of California has been our sole contract manufacturer for our PCT NEP3229 and NEP2320 instrumentation. However, the Company has reached agreement for a Massachusetts-based contract manufacturer to assemble its future instrumentation builds starting with the new NEP2320 Extreme Barocycler instrument, effective in May 2016.

8

Investment in Available-For-Sale Equity Securities

As of March 31, 2016, we held 601,500 shares of common stock of Everest Investments Holdings S.A. (“Everest”), a Polish publicly traded company listed on the Warsaw Stock Exchange. We account for this investment in accordance with ASC 320 “Investments — Debt and Equity Securities” as securities available for sale. On March 31, 2016, our balance sheet reflected the fair value of our investment in Everest to be $154,824, based on the closing price of Everest shares of $0.26 per share on that day. The carrying value of our investment in Everest common stock held will change from period to period based on the closing price of the common stock of Everest as of the balance sheet date. This change in market value will be recorded by us on a quarterly basis as an unrealized gain or loss in Comprehensive Income or Loss.

Debt Issuance Costs

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted ASU 2015-03 as of the end of its Fiscal 2015, and applied its provisions retrospectively.

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 ended March 31, 2016 and 2015:

	For the Three Months Ended
	March 31,
	2016			2015
Numerator:
Net loss	$	(5,950,391	)	$	(2,047,455	)
Preferred dividends accrued		-			(16,668	)
Net loss applicable to common shareholders	$	(5,950,391	)	$	(2,064,123	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		23,198,360			18,840,390
Loss per common share - basic and diluted	$	(0.26	)	$	(0.11	)

9

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 Three Months Ended
	March 31,
	2016		2015
Stock options		5,460,250		3,406,250
Convertible debt		25,226,800		8,555,938
Common stock warrants		26,998,401		19,182,201
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		2,100,000
Series J Convertible Preferred Stock		3,546,000		3,546,000
Series K Convertible Preferred Stock		11,416,000		11,416,000
		77,363,151		50,822,089

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.

10

The Company recognized stock-based compensation expense of $101,462 and $54,890 for the three months ended March 31, 2016 and 2015, 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 March 31,
	2016		2015
Research and development	$	20,381	$	11,343
Selling and marketing		12,690		6,975
General and administrative		68,391		36,572
Total stock-based compensation expense	$	101,462	$	54,890

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 convertible debentures and deferred revenue 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.

11

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 its financial assets are classified within Level 1 and its financial liabilities are currently 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 assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2016:

			Fair value measurements at March 31, 2016 using:
	March 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		154,824		154,824		-		-
Total Financial Assets	$	154,824	$	154,824	$	-	$	-

	March 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	256,420		-		-	$	256,420
Warrants Issued with Convertible Debt		5,314,580		-		-		5,314,580
Conversion Option Derivative Liabilities		7,028,206		-		-		7,028,206
Total Derivatives	$	12,599,206	$	-	$	-	$	12,599,206

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2016:

	December 31, 2015		Issuance fair value		Change in fair value		March 31, 2016
Series D Preferred Stock Purchase Warrants	$	173,526	$	-	$	82,894	$	256,420
Warrants Issued with Convertible Debt		3,122,450		1,087,254		1,104,876		5,314,580
Conversion Option Derivative Liabilities		3,940,791		1,535,290		1,552,125		7,028,206
Total Derivatives	$	7,236,767	$	2,622,544	$	2,739,895	$	12,599,206

The amounts above valued at issuance includes $1,328,495 that was charged directly to “change in fair value of derivative liabilities” at issuance.

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2015:

			Fair value measurements at December 31, 2015 using:
	December 31, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		294,522		294,522		-		-
Total Financial Assets	$	294,522	$	294,522	$	-	$	-
	December 31, 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	$	173,526		-		-	$	173,526
Warrants Issued with Convertible Debt		3,122,450		-		-		3,122,450
Conversion Option Derivative Liabilities		3,940,791		-		-		3,940,791
Total Derivatives	$	7,236,767	$	-	$	-	$	7,236,767

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2015:

	January 1, 2015		Change in Fair Value		Reclassified to Equity		March 31, 2015
Series D Preferred Stock Purchase Warrants	$	159,875	$	51,031		-	$	210,906

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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, 2015			Warrants revalued at March 31, 2016
Expected life (in months)		60.0			11.0			7.0
Expected volatility		104.5	%		104.9	%		103.6	%
Risk-free interest rate		0.875	%		0.65	%		0.39	%
Exercise price	$	0.81		$	0.25		$	0.25
Fair value per warrant	$	0.54		$	0.16		$	0.24

The assumptions for the binomial pricing model are represented in the table below for the warrants issued with the Convertible Debt throughout the period reflected on a per share common stock equivalent basis.

Assumptions	At Issuance Fair value			Warrants revalued at December 31, 2015			Warrants revalued at March 31, 2016
Expected life (in months)		60.0			55.0-60.0			48.0-60.0
Expected volatility		118.3 - 138.3	%		136.3-141.6	%		138.3 -142.2	%
Risk-free interest rate		1.23-1.69	%		1.29-1.76	%		1.21	%
Exercise price	$	0.40			0.40		$	0.40
Fair value per warrant		$ 0.19-$.40			0.30		$	0.40

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			Conversion options revalued at December 31, 2015			Conversion options revalued at March 31, 2016
Expected life (in months)		6-24			18-24			12-24
Expected volatility		104.2-153.8	%		112.2-114.7	%		112.03-113.67	%
Risk-free interest rate		0.05-0.99	%		1.06	%		0.59-0.73	%
Exercise price		$0.28-$0.35		$	0.28		$	0.28
Fair value per conversion option		$0.09-$0.30			$0.14-$0.33			$0.27-$0.30

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5) Commitments and Contingencies

Operating Leases

Our corporate offices are currently located at 14 Norfolk Avenue, South Easton, Massachusetts 02375. We are currently paying $4,800 per month, on a lease extension, signed on December 29, 2015, that expires December 31, 2016, for our corporate office.

On November 1, 2014 we signed a lease for lab space in Medford, MA. We subsequently expanded our space in Medford. The lease expires December 30, 2017 and requires monthly payments of $5,385 subject to annual cost of living increases.

Rental costs are expensed as incurred. During the three months ended March 31, 2016 and 2015 we incurred $33,877 and $22,722 in rent expense, respectively for the use of our corporate office and research and development facilities.

Government Grants

We have received a $1.05 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 and other genomic applications.

6) Convertible Debt and Other Debt

We entered into Subscription Agreements (the “Subscription Agreement”) with various individuals (each, a “Purchaser”) between July 23, 2015 and March 31, 2016, 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 $6,319,549 (the “Purchase Price”).

The Company issued a principal aggregate amount of $6,951,504 in Debentures which includes a 10% original issue discount on the Purchase Price. The Debenture does not accrue any additional interest during the first year it is outstanding but accrues interest at a rate equal to 10% per annum for the second year it is outstanding. The Debenture has a maturity date of two years from issuance. The Debenture is convertible any time after its issuance date. The Purchaser has the right to convert the Debenture into shares of the Company’s common stock at a fixed conversion price equal to $0.28 per share, subject to applicable adjustments. In the second year that the Debenture is outstanding, any interest accrued shall be payable quarterly in either cash or common stock, at the Company’s discretion.

At any time after the Issuance Date, the Company has the option, subject to certain conditions, to redeem some or all of the then outstanding principal amount of the Debenture for cash in an amount equal to the sum of (i) 120% of the then outstanding principal amount of the Debenture, (ii) accrued but unpaid interest and (iii) any liquidated damages and other amounts due in respect of the Debenture.

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Warrants

The Company issued warrants exercisable into a total of 11,284,909 shares of our common stock. The Warrants issued in this transaction are immediately exercisable at an exercise price of $0.40 per share, subject to applicable adjustments including full ratchet anti-dilution in the event that we issue any securities at a price lower than the exercise price then in effect. The Warrants have an expiration period of five years from the original issue date. The Warrants are subject to adjustment for stock splits, stock dividends or recapitalizations and also include anti-dilution price protection for subsequent equity sales below the exercise price.

Subject to the terms and conditions of the Warrants, at any time commencing six months from the Final Closing, the Company has the right to call the Warrants for cancellation if the volume weighted average price of its Common Stock on the OTC QB Market (or other primary trading market or exchange on which the Common Stock is then traded) equals or exceeds three times the per share exercise price of the Warrants for 15 out of 20 consecutive trading days.

Security Agreement

In connection with the Subscription Agreement and Debenture, the Company entered into Security Agreements with the Purchasers whereby the Company agreed to grant to Purchasers an unconditional and continuing, first priority security interest in all of the assets and property of the Company to secure the prompt payment, performance and discharge in full of all of Company’s obligations under the Debentures, Warrants and the other Transaction Documents.

The Company determined that the conversion feature of the Debentures met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature on each debt agreement and accounted for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and are amortized to interest expense over the life of the loan. The fair value of the conversion feature was reflected in the conversion option liability line in the condensed consolidated balance sheets.

The proceeds from these convertible debts 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 allocations 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 are offset by debt discounts, which are amortized to interest expense over the expected life of the debt.

ASC 470-20 states that the proceeds from the issuance of debt with detachable stock warrants should be allocated between the debt and warrants on the basis of their relative fair market values. The debt discount will be amortized to interest expense over the two year term of these loans. We amortized $839,234 of the debt discount to interest expense in 2016. The warrants issued in connection with the convertible debentures are classified as warrant derivative liabilities because the warrants are entitled to certain rights in subsequent financings and the warrants contain “down-round protection” and therefore, do not meet the scope exception for treatment as a derivative under ASC 815, Derivatives and Hedging, (“ASC 815”). Since “down-round protection” is not an input into the calculation of the fair value of the warrants, the warrants cannot be considered indexed to the Company’s own stock which is a requirement for the scope exception as outlined under ASC 815. The estimated fair value of the warrants was determined using the binomial model, resulting in an allocation of $2,840,446 to the total warrants out of the gross proceeds of $6,319,549. The fair value will be affected by changes in inputs to that model including our stock price, expected stock price volatility, the contractual term, and the risk-free interest rate. We will continue to classify the fair value of the warrants as a liability until the warrants are exercised, expire or are amended in a way that would no longer require these warrants to be classified as a liability, whichever comes first.

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The specific terms of the convertible debts and outstanding balances as of March 31, 2016 are listed in the table below.

Fixed Rate Convertible Notes
Inception Date	Term		Loan Amount		Outstanding Balance		Original Issue Discount			Interest Rate				Deferred Finance Fees		Discount related to Fair value of conversion feature and warrants
July 22, 2015		24 months	$	2,180,000	$	2,180,000	$	218,000	1		10	%	2	$	388,532	$	2,163,074
September 25, 2015		24 months		1,100,000		1,100,000		110,000	1		10	%	2		185,956		1,022,052
October 2, 2015		24 months		150,000		150,000		15,000	1		10	%	2		26,345		140,832
October 6, 2015		24 months		30,000		30,000		3,000	1		10	%	2		5,168		26,721
October 14, 2015		24 months		50,000		50,000		5,000	1		10	%	2		8,954		49,377
November 2, 2015		24 months		250,000		250,000		25,000	1		10	%	2		43,079		222,723
November 10, 2015		24 months		50,000		50,000		5,000	1		10	%	2		8,790		46,984
November 12, 2015		24 months		215,000		215,000		21,500	1		10	%	2		38,518		212,399
November 20, 2015		24 months		200,000		200,000		20,000	1		10	%	2		37,185		200,000
December 4, 2015		24 months		170,000		170,000		17,000	1		10	%	2		37,352		170,000
December 11, 2015		24 months		360,000		360,000		36,000	1		10	%	2		75,449		360,000
December 18, 2015		24 months		55,000		55,000		5,500	1		10	%	2		11,714		55,000
December 31, 2015		24 months		100,000		100,000		10,000	1		10	%	2		20,634		100,000
January 11, 2016		24 months		100,000		100,000		10,000	1		10	%	2		24,966		80,034
January 20, 2016		24 months		50,000		50,000		5,000	1		10	%	2		9,812		40,188
January 29, 2016		24 months		300,000		300,000		30,000	1		10	%	2		60,887		239,113
February 26, 2016		24 months		200,000		200,000		20,000	1		10	%	2		43,952		156,048
March 10, 2016		24 months		125,000		125,000		12,500	1		10	%	2		18,260		106,740
March 18, 2016		24 months		360,000		360,000		36,000	1		10	%	2		94,992		265,008
March 24, 2016		24 months		106,667		106,667		10,667	1		10	%	2		15,427		91,240
March 31, 2016		24 months		167,882		167,882		16,788	1		10	%	2		2,436		165,446
			$	6,319,549	$	6,319,549	$	631,955						$	1,158,408	$	5,912,979

1 The original issue discount is reflected in the first year.

2 The annual interest starts accruing in the second year.

The closings above on March 10, 24, and 31, 2016 included $264,667 of proceeds received from related parties.

At any time after six months from the Inception Date, the Company has the right to prepay the above Debentures in cash for 120% of the principal amount outstanding and any accrued interest. As of March 31, 2016, a total of approximately $291,000 convertible debentures were issued to related parties.

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The following table provides a summary of the changes in convertible debt, net of unamortized discount, during 2016:

	2016
Balance at January 1,	$	277,342
Issuance of convertible debt, face value		1,550,504
Original issue discount		(140,955	)
Debt discount from derivative liabilities (embedded conversion option and warrants)		(1,143,817	)
Deferred financing fees		(275,232	)
Accretion of interest and amortization of debt discount to interest expense through March 31,		839,234
Balance at March 31,		1,107,076
Less: current portion		100,000
Convertible debt, long-term portion	$	1,007,076

Other Notes

On January 6, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $250,000 in exchange for rights to all customer receipts until the lender is paid $322,500, which is collected at the rate of $1,280 per business day. The payments were secured by second position rights to all customer receipts until the loan has been paid in full. $138,840 of the proceeds were used to pay off the outstanding balance of a previous loan from another lender. The Company recognized a gain on the settlement of the previous loan of $5,044 which was credited to interest expense. The Company paid $2,500 in fees in connection with this loan. The note was still outstanding as of March 31, 2016 with a balance of $175,774.

On January 20, 2016, we borrowed $50,000 from an individual with no interest or fees. We paid back the loan in March 2016.

On February 8, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $100,000 in exchange for third position rights to all customer receipts until the lender is paid $129,900, which is collected at the rate of $927 per business day. The Company paid $2,000 in fees in connection with this loan. The note was still outstanding as of March 31, 2016 with a balance of $65,704.

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 March 31, 2016, 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, 2015 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 March 31, 2016, options to acquire 1,720,750 shares were outstanding under the Plan with 79,250 shares available for future grant under the 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, 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 March 31, 2016 1,675,500 options have been granted under the 2013 Plan.

On November 29, 2015 the Company’s Board of Directors adopted the 2015 Nonqualified Stock Option Plan (the “2015 Plan”) pursuant to which 5,000,000 shares of our common stock were reserved for issuance upon exercise of non-qualified stock options. Under the 2015 Plan, we may award non-qualified stock options in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of March 31, 2016, non-qualified options to acquire 2,068,000 shares were outstanding under the Plan with 2,932,000 shares available for future grants under the 2015 Plan.

All of the outstanding non-qualified options had an exercise price that was at or above the Company’s common stock share price on March 31, 2016.

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

	Stock Options					Warrants
	Weighted					Weighted
	Average					Average								Total
	Shares			Price per share		Shares			Price per share		Shares			Exercisable
Balance outstanding, 01/01/15		3,406,250		$	0.51		19,182,201		$	0.49		22,588,451			16,611,528
Granted		2,500,000			0.40		10,901,426			0.40		13,401,426
Exercised		-					-			-		-
Expired		(205,000	)		1.00		(791,678	)		0.31		(996,678	)
Forfeited		(130,000	)		0.70		-			-		(130,000	)
Balance outstanding, 12/31/15		5,571,250		$	0.44		29,291,949		$	0.49		34,863,199			31,664,469
Granted		-			-		2,929,552			0.40		2,929,552
Exercised		-					-			-		-
Expired		(111,000	)		1.00		(5,223,100	)		0.40		(5,334,100	)
Forfeited		-			-		-			-		-
Balance outstanding, 3/31/2016		5,460,250		$	0.43		26,998,401		$	0.45		32,458,651			29,658,673

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	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		8.5	$	0.30		1,085,024		8.5	$	0.30
0.40 - 0.49		2,811,000		9.5		0.40		601,498		8.4		0.40
0.50 - 0.59		226,250		6.4		0.50		226,250		6.4		0.50
0.60 - 0.69		402,500		3.9		0.60		402,500		3.9		0.60
1.00 - 1.25		345,000		2.5		1.00		345,000		2.5		1.00
$0.30 - $1.25		5,460,250		8.2	$	0.43		2,660,272		6.8	$	0.48

As of March 31, 2016, the total estimated fair value of unvested stock options to be amortized over their remaining vesting period was $647,398. The non-cash, stock-based compensation expense associated with the vesting of these options is expected to be $273,013 for the remainder of 2016, $217,137 in 2017 and $157,248 in 2018.

Common Stock Issuances

On various dates from January to March 2016 the Company issued 305,000 shares of restricted common stock to investor relations firms for services rendered.

8) Subsequent Events

On May 9, 2016, the Company received a $200,000, three-month, non-convertible loan from an investor. Loan terms include 12% annualized interest and the award of a three-year warrant to purchase 100,000 shares of the Company’s common stock at an exercise price set at $0.55.

On May 6, 2016, all remaining Series K preferred shareholders except one converted their preferred stock into approximately 4.3 million shares of the Company’s common stock.

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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;

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● 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, 2015. 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 March 31, 2016, 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 March 31, 2016, we believe we will have the cash resources that will enable us to continue to fund normal operations into the foreseeable future.

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).

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We reported a number of accomplishments in the first four months of 2016:

On January 12, 2016 SCIEX, a global leader in life science analytical technologies (Framingham, MA) and a wholly-owned subsidiary of Danaher Corporation (NYSE: DHR), announced an exclusive co-marketing agreement with PBI to improve protein quantification in complex samples.

On January 28, 2016 in a report focused on the exclusive co-marketing agreement between SCIEX and PBI, Emerging Growth LLC indicated the combination of the two company’s technologies could result in superior biological insights and discoveries and in rapid and dramatic revenue growth for PBI.

On February 3, 2016 SCIEX and Children’s Medical Research Institute (Sydney, Australia) announced they had joined forces to advance the promise of precision medicine. The partners stated they would benefit from SCIEX’s exclusive collaborators, including Pressure BioSciences, and PBI’s PCT platform for increased protein quantitation and reproducibility.

On March 14, 2016 the Company announced that it would participate in a SCIEX workshop on new innovations towards industrialized proteomics at the US HUPO scientific conference in Boston.

On April 12, 2016, the Company announced it had been added to the high-performing Richmond Club Index. The Richmond Index has outperformed the S&P 500 Index by an average of 11% each year for the past ten years.

Results of Operations

Comparison for the three months ended March 31, 2016 and 2015

Revenue

We recognized total revenue of $510,478 for the three months ended March 31, 2016 as compared to $440,134 during the three months ended March 31, 2015, an increase of $70,344 or 16%. This increase is attributable to increases in the sales of our products and services as detailed below.

Products, Services, Other. Revenue from the sale of products and services increased 26% to $454,350 for the three months ended March 31, 2016 as compared to $359,364 during the three months ended March 31, 2015. This increase was primarily attributable to an increase in the sale of pressure-based instrument systems. Sales of consumables also increased for the three months ended March 31, 2016 to $44,234 compared to $39,835 during the same period in the prior year, an increase of 11%.

Grant Revenue. During the three months ended March 31, 2016, we recorded grant revenue of $56,128 compared to grant revenue of $80,770 in the comparable period in 2015. Work on the $1.05 million NIH grant decreased during the first quarter as we needed to wait for certain significant parts to be manufactured. These parts are expected to be received during the second quarter of 2016, which should result in an increase in grant work beginning in the third quarter of the 2016 calendar year.

Cost of Products and Services

The cost of products and services was $221,699 for the three months ended March 31, 2016 compared to $190,783 for the comparable period in 2015. The cost of products and services increased with the concomitant increase in the sales of instrument systems and consumables. Gross profit margin on products and services was 51% for the three months ended March 31, 2016, as compared to 47% for the prior period.

Research and Development

Research and development expenditures were $335,270 during the three months ended March 31, 2016 as compared to $231,923 in the same period in 2015, an increase of $103,347 or 45%. This increase resulted primarily from: (i) the addition of a full-time, Ph.D. level electrical engineer, a key contributor to the development of our new Barocycler NEP2320 Extreme, initially required for the SCIEX co-marketing deal, (ii) our support of Dr. Bruce McCord and Team who are developing an enhanced rape kit test, based on the PCT Platform, (iii) rent increase related to the additional R&D space necessary for growth, and (iv) additional travel, lab supplies, and unused PTO (“paid time off”).

Research and development expense recognized in the three months ended March 31, 2016 and 2015 included $20,381 and $11,343 of non-cash, stock-based compensation expense, respectively.

Selling and Marketing

Selling and marketing expenses increased to $191,236 for the three months ended March 31, 2016 from $166,223 for the comparable period in 2015, an increase of $25,013 or 15%. This increase is primarily attributed to expenses incurred to attend additional tradeshows, more active marketing, and to the generation of data by our collaborative partners that can be used to introduce new and upgraded products and services.

During the three months ended March 31, 2016 and 2015, selling and marketing expense included $12,690 and $6,975 of non-cash, stock-based compensation expense, respectively.

General and Administrative

General and administrative costs totaled $808,218 for the three months ended March 31, 2016 as compared to $726,024 for the comparable period in 2015, an increase of $82,194 or 11%. We increased spending on patent/trademark activities, as well as investor and public relations, in outside consulting services, and in other activities that we believed would augment and support our successful 2015/2016 fund raising efforts.

During the three months ended March 31, 2016 and 2015, general and administrative expense included $68,391 and $36,572 of non-cash, stock-based compensation expense, respectively.

23

Operating Loss

Our operating loss was $1,045,945 for the three months ended March 31, 2016 as compared to $874,819 for the comparable period in 2015, an increase of $171,126 or 20%. This increase was primarily due to increases in expenditures in R&D and in G&A, as described above.

Other Income (Expense), Net

Interest (Expense) Income

Interest expense was $835,144 for the three months ended March 31, 2016 as compared to interest expense of $605,585 for the three months ended March 31, 2015. We amortized $839,234 of debt discounts in the three months ended March 31, 2016. We recorded $70,560 of amortized debt discount and $130,760 of prepayment penalties for the three months ended March 31, 2015 related primarily to the sale of senior secured convertible debentures.

Change in fair value of warrant derivative liability

During the three months ended March 31, 2016, we recorded non-cash expense of $1,217,722 for warrant revaluation in our consolidated statements of operations due to an increase in the fair value of the warrant liability related to warrants issued in our private placement offerings. We recorded $51,031 non-cash income in the prior comparable period. This increase in fair value was primarily due to the increase in price of the Company’s common stock at March 31, 2016 as compared to the price on March 31, 2015. 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 March 31, 2016, we recorded non-cash income of $2,850,668 for conversion option revaluation expense in our condensed consolidated statements of operations due to an increase in the fair value of the conversion option liability related to convertible debt. This increase in fair value was primarily due to the increase in price of the Company’s common stock on March 31, 2016 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 March 31, 2015 we recorded non-cash income $354,666 for conversion option liability revaluation. For the three months ended March 31, 2016 and 2015, we recorded a non-cash expense of $1,298,544 and $124,441, respectively 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 and the change in fair value during the period. 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

Other Expense totaled $912 for the three months ended March 31, 2016 as compared to $36,913 for the comparable period in 2015.

Net Loss Applicable to Common Shareholders

During the three months ended March 31, 2016, we recorded a net loss to common shareholders of $5,950,391 or $(0.26) per share, as compared to a net loss to common shareholders of $2,064,123 or $(0.11) per share in the three months ended March 31, 2015. Net loss per share increased by $0.15 due to the increased net loss to common shareholders as detailed above. The weighted average common shares outstanding for the period increased because of the issuance of shares of common stock to investor relations firms for services rendered.

24

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 March 31, 2016, 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 6, we completed an over-subscribed $5 million PIPE through March 31, 2016, raising a total of $6.3 million between July 2015 and March 2016. 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 three months ended March 31, 2016 was $1,233,458 as compared to $1,050,482 for the three months ended March 31, 2015. The increase in cash used in operations in 2016 is principally due to the increase in loss from operations.

Cash used in investing activities for the three months ended March 31, 2016 and 2015 was not significant.

Net cash provided by financing activities for the three months ended March 31, 2016 was $1,210,062 as compared to $796,844 for the same period in the prior year. The cash from financing activities in the period ending March 31, 2016 included $1,122,167 from senior secured convertible debt. We also received $256,600 from non-convertible debt, net of fees, less payment on non-convertible debt of $168,765. In the prior year we received $1,054,750 from convertible debt and $396,127 in proceeds from non-convertible debt.

25

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 March 31, 2016, 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 March 31, 2016 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, 2015. These material weaknesses are the following:

	●	We identified 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.
	●	Management has identified 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 resulted in audit adjustments to the annual consolidated financial statements and revisions to related disclosures, valuation of warrants and other equity transactions.
	●	Limited policies and procedures that cover recording and reporting of financial transactions.
We continue to plan to remediate those material weaknesses as follows:
	●	Improve the effectiveness of the accounting group by augmenting our existing resources with additional consultants or employees to assist in the analysis and recording of complex accounting transactions, and to simultaneously achieve desired organizational structuring for improved segregation of duties. We plan to mitigate this identified deficiency by hiring an independent consultant once we generate significantly more revenue or raise significant additional working capital.
	●	Improve expert review and achieve desired 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 period ended March 31, 2016, 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 March 31, 2016 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

26

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, 2015. 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 the Company. 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, 2015.

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 March 31, 2016.

In addition, on various dates from January to March 2016 the Company issued 305,000 shares of restricted common stock to investor relations firms for services rendered.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

27

Item 6. Exhibits

Exhibits
31.1	Principal Executive Officer and 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.

28

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: May 16, 2016	By:	/s/ Richard T. Schumacher
		Richard T. Schumacher
		President & Chief Executive Officer
		(Principal Executive Officer and Principal Financial Officer)

29

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: May 16, 2016

/s/ Richard T. Schumacher

Richard T. Schumacher

President & Chief Executive Officer

(Principal Executive Officer and 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 March 31, 2016 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: May 16, 2016	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 March 31, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard T. Schumacher, Principal 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: May 16, 2016	By:	/s/ Richard T. Schumacher
		Richard T. Schumacher
		President & Chief Executive 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

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 13, 2016
Document And Entity Information
Entity Registrant Name	PRESSURE BIOSCIENCES INC
Entity Central Index Key	0000830656
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		27,649,437
Trading Symbol	PBIO
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2016

XML

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 93,387	$ 116,783
Accounts receivable	393,911	113,256
Inventories, net of $50,000 reserve at March 31, 2016 and December 31, 2015	966,549	1,038,371
Prepaid income taxes	7,381	7,381
Prepaid expenses and other current assets	337,505	213,926
Total current assets	1,798,733	1,489,717
Investment in available-for-sale equity securities	154,824	294,522
Property and equipment, net	13,951	20,149
TOTAL ASSETS	1,967,508	1,804,388
CURRENT LIABILITIES
Accounts payable	780,136	941,389
Accrued employee compensation	214,119	176,009
Accrued professional fees and other	645,003	821,088
Deferred revenue	207,129	140,878
Convertible debt, net of debt discount of $0 at March 31, 2016 and December 31, 2015	100,000	100,000
Other debt, net of discount of $2,499 and $3,041, respectively	238,979	151,628
Warrant derivative liability	5,571,000	3,295,976
Conversion option liability	7,028,206	3,940,791
Total current liabilities	14,784,572	$ 9,567,759
LONG TERM LIABILITIES
Related party convertible debt, net of debt discount of $288,930 and $0, respectively	2,074
Convertible debt, net of debt discount of $5,655,498 and $5,223,658, respectively	1,005,002	$ 177,342
Deferred revenue	36,935	36,935
TOTAL LIABILITIES	15,828,583	9,782,036
STOCKHOLDERS’ DEFICIT
Common stock, $.01 par value; 100,000,000 shares authorized; 23,309,898 and 23,004,898 shares issued and outstanding on March 31, 2016 and December 31, 2015, respectively	233,100	230,050
Warrants to acquire common stock	5,416,681	5,416,681
Additional paid-in capital	26,240,345	26,036,733
Accumulated other comprehensive income	(244,723)	(105,025)
Accumulated deficit	(45,507,597)	(39,557,206)
Total stockholders’ deficit	(13,861,075)	(7,977,648)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	1,967,508	1,804,388
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

XML

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Inventories reserve	$ 50,000	$ 50,000
Convertible debt, current unamortized discounts	0	0
Other debt, unamortized discounts	2,499	3,041
Convertible debt related party debt discount net	288,930	0
Convertible debt, non current unamortized discounts	$ 5,655,498	$ 5,223,658
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	100,000,000	100,000,000
Common stock, shares issued	23,309,898	23,004,898
Common stock, shares outstanding	23,309,898	23,004,898
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

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenue:
Products, services, other	$ 454,350	$ 359,364
Grant revenue	56,128	80,770
Total revenue	510,478	440,134
Costs and expenses:
Cost of products and services	221,699	190,783
Research and development	335,270	231,923
Selling and marketing	191,236	166,223
General and administrative	808,218	726,024
Total operating costs and expenses	1,556,423	1,314,953
Operating loss	(1,045,945)	(874,819)
Other (expense) income:
Interest expense, net	(835,144)	(605,585)
Other expense	(912)	(36,913)
Change in fair value of derivative liabilities	(4,068,390)	(530,138)
Total other (expense) income	(4,904,446)	(1,172,636)
Net loss	$ (5,950,391)	(2,047,455)
Accrued dividends on convertible preferred stock		(16,668)
Net loss applicable to common shareholders	$ (5,950,391)	$ (2,064,123)
Net loss per share attributable to common stockholders - basic and diluted	$ (0.26)	$ (0.11)
Weighted average common stock shares outstanding used in the basic and diluted net loss per share calculation	23,198,360	18,840,390

XML

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Comprehensive Loss
Net loss	$ (5,950,391)	$ (2,047,455)
Other comprehensive loss
Unrealized loss on marketable securities	(139,698)
Comprehensive loss	$ (6,090,089)	$ (2,047,455)

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (5,950,391)	$ (2,047,455)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	6,198	6,919
Accretion of interest and amortization of debt discount	839,234	$ 425,226
Gain on settlement of debt	(5,044)
Stock-based compensation expense	101,462	$ 54,890
Amortization of third party fees paid in common stock and warrants	105,200	46,744
Change in fair value of derivative liabilities	4,068,390	530,138
Changes in operating assets and liabilities:
Accounts receivable	(280,655)	(51,391)
Inventories	71,822	51,557
Prepaid expenses and other assets	43,303	(22,836)
Accounts payable	(161,253)	(115,670)
Accrued employee compensation	38,110	(16)
Deferred revenue and other accrued expenses	(109,834)	71,412
Net cash used in operating activities	$ (1,233,458)	$ (1,050,482)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property plant and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from related party convertible debt	$ 96,667	$ 6,300
Payment of related party debt		(12,300)
Net proceeds from convertible debt	$ 1,025,500	1,054,750
Payments on convertible debt		(500,500)
Net proceeds from non-convertible debt	$ 256,660	396,127
Payments on non-convertible debt	(168,765)	(147,533)
Net cash provided by financing activities	1,210,062	796,844
NET DECREASE IN CASH	(23,396)	(253,638)
CASH AT BEGINNING OF YEAR	116,783	473,948
CASH AT END OF PERIOD	93,387	220,310
SUPPLEMENTAL INFORMATION
Interest paid in cash	$ 1,154	$ 203,311
Income taxes paid in cash
NON CASH TRANSACTIONS:
Convertible debt exchanged for common stock		$ 138,000
Reclassification of conversion option liabilities into equity		661,464
Accrued dividends on preferred stock		$ 16,668
Unrealized loss from available-for-sale equity securities	$ 139,698
Debt discount from derivative liability	1,294,049
Convertible debt held in escrow	$ 166,882

XML

Business Overview, Liquidity and Management Plans

3 Months Ended

Mar. 31, 2016

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”).

In 2015, together with an investment bank, we formed a subsidiary called Pressure BioSciences Europe (“PBI Europe”) in Poland. We have 49% ownership interest with the investment bank retaining 51%. As of now, PBI Europe does not have any operating activities but is expected to commence operations in 2016. Therefore, we don’t have control of the subsidiary and did not consolidate in our financial statements.

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Going Concern

3 Months Ended

Mar. 31, 2016

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 March 31, 2016, 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, we completed an over-subscribed $5.0 million debt financing on March 31, 2016 with a total amount raised of $6.3 million. 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 three months ended March 31, 2016 we received $1,684,549 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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Interim Financial Reporting

3 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Interim Financial Reporting

3) Interim Financial Reporting

The accompanying unaudited condensed consolidated balance sheet as of December 31, 2015, which was derived from audited financial statements, and the unaudited interim 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 ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. 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, 2015 as filed with the Securities and Exchange Commission on April 5, 2016.

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Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2016

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 ended March 31, 2016 and 2015.

	For the Three Months Ended
	March 31,
	2016			2015
Top Five Customers		46	%		64	%
Federal Agencies		11	%		26	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of March 31, 2016 and December 31, 2015:

	March 31, 2016			December, 31, 2015
Top Five Customers		55	%		93	%
Federal Agencies		0	%		1	%

Product Supply

BIT Group, Inc. of California has been our sole contract manufacturer for our PCT NEP3229 and NEP2320 instrumentation. However, the Company has reached agreement for a Massachusetts-based contract manufacturer to assemble its future instrumentation builds starting with the new NEP2320 Extreme Barocycler instrument, effective in May 2016.

Investment in Available-For-Sale Equity Securities

As of March 31, 2016, we held 601,500 shares of common stock of Everest Investments Holdings S.A. (“Everest”), a Polish publicly traded company listed on the Warsaw Stock Exchange. We account for this investment in accordance with ASC 320 “Investments — Debt and Equity Securities” as securities available for sale. On March 31, 2016, our balance sheet reflected the fair value of our investment in Everest to be $154,824, based on the closing price of Everest shares of $0.26 per share on that day. The carrying value of our investment in Everest common stock held will change from period to period based on the closing price of the common stock of Everest as of the balance sheet date. This change in market value will be recorded by us on a quarterly basis as an unrealized gain or loss in Comprehensive Income or Loss.

Debt Issuance Costs

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted ASU 2015-03 as of the end of its Fiscal 2015, and applied its provisions retrospectively.

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 ended March 31, 2016 and 2015:

	For the Three Months Ended
	March 31,
	2016			2015
Numerator:
Net loss	$	(5,950,391	)	$	(2,047,455	)
Preferred dividends accrued		-			(16,668	)
Net loss applicable to common shareholders	$	(5,950,391	)	$	(2,064,123	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		23,198,360			18,840,390
Loss per common share - basic and diluted	$	(0.26	)	$	(0.11	)

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 Three Months Ended
	March 31,
	2016		2015
Stock options		5,460,250		3,406,250
Convertible debt		25,226,800		8,555,938
Common stock warrants		26,998,401		19,182,201
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		2,100,000
Series J Convertible Preferred Stock		3,546,000		3,546,000
Series K Convertible Preferred Stock		11,416,000		11,416,000
		77,363,151		50,822,089

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 $101,462 and $54,890 for the three months ended March 31, 2016 and 2015, 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 March 31,
	2016		2015
Research and development	$	20,381	$	11,343
Selling and marketing		12,690		6,975
General and administrative		68,391		36,572
Total stock-based compensation expense	$	101,462	$	54,890

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 convertible debentures and deferred revenue 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 its financial assets are classified within Level 1 and its financial liabilities are currently 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 assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2016:

			Fair value measurements at March 31, 2016 using:
	March 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		154,824		154,824		-		-
Total Financial Assets	$	154,824	$	154,824	$	-	$	-

	March 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	256,420		-		-	$	256,420
Warrants Issued with Convertible Debt		5,314,580		-		-		5,314,580
Conversion Option Derivative Liabilities		7,028,206		-		-		7,028,206
Total Derivatives	$	12,599,206	$	-	$	-	$	12,599,206

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2016:

	December 31, 2015		Issuance fair value		Change in fair value		March 31, 2016
Series D Preferred Stock Purchase Warrants	$	173,526	$	-	$	82,894	$	256,420
Warrants Issued with Convertible Debt		3,122,450		1,087,254		1,104,876		5,314,580
Conversion Option Derivative Liabilities		3,940,791		1,535,290		1,552,125		7,028,206
Total Derivatives	$	7,236,767	$	2,622,544	$	2,739,895	$	12,599,206

The amounts above valued at issuance includes $1,328,495 that was charged directly to “change in fair value of derivative liabilities” at issuance.

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2015:

			Fair value measurements at December 31, 2015 using:
	December 31, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		294,522		294,522		-		-
Total Financial Assets	$	294,522	$	294,522	$	-	$	-
	December 31, 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	$	173,526		-		-	$	173,526
Warrants Issued with Convertible Debt		3,122,450		-		-		3,122,450
Conversion Option Derivative Liabilities		3,940,791		-		-		3,940,791
Total Derivatives	$	7,236,767	$	-	$	-	$	7,236,767

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2015:

	January 1, 2015		Change in Fair Value		Reclassified to Equity		March 31, 2015
Series D Preferred Stock Purchase Warrants	$	159,875	$	51,031		-	$	210,906

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, 2015			Warrants revalued at March 31, 2016
Expected life (in months)		60.0			11.0			7.0
Expected volatility		104.5	%		104.9	%		103.6	%
Risk-free interest rate		0.875	%		0.65	%		0.39	%
Exercise price	$	0.81		$	0.25		$	0.25
Fair value per warrant	$	0.54		$	0.16		$	0.24

The assumptions for the binomial pricing model are represented in the table below for the warrants issued with the Convertible Debt throughout the period reflected on a per share common stock equivalent basis.

Assumptions	At Issuance Fair value			Warrants revalued at December 31, 2015			Warrants revalued at March 31, 2016
Expected life (in months)		60.0			55.0-60.0			48.0-60.0
Expected volatility		118.3 - 138.3	%		136.3-141.6	%		138.3 -142.2	%
Risk-free interest rate		1.23-1.69	%		1.29-1.76	%		1.21	%
Exercise price	$	0.40			0.40		$	0.40
Fair value per warrant		$ 0.19-$.40			0.30		$	0.40

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			Conversion options revalued at December 31, 2015			Conversion options revalued at March 31, 2016
Expected life (in months)		6-24			18-24			12-24
Expected volatility		104.2-153.8	%		112.2-114.7	%		112.03-113.67	%
Risk-free interest rate		0.05-0.99	%		1.06	%		0.59-0.73	%
Exercise price		$0.28-$0.35		$	0.28		$	0.28
Fair value per conversion option		$0.09-$0.30			$0.14-$0.33			$0.27-$0.30

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Commitments and Contingencies

3 Months Ended

Mar. 31, 2016

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. We are currently paying $4,800 per month, on a lease extension, signed on December 29, 2015, that expires December 31, 2016, for our corporate office.

On November 1, 2014 we signed a lease for lab space in Medford, MA. We subsequently expanded our space in Medford. The lease expires December 30, 2017 and requires monthly payments of $5,385 subject to annual cost of living increases.

Rental costs are expensed as incurred. During the three months ended March 31, 2016 and 2015 we incurred $33,877 and $22,722 in rent expense, respectively for the use of our corporate office and research and development facilities.

Government Grants

We have received a $1.05 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 and other genomic applications.

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Convertible Debt and Other Debt

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Convertible Debt and Other Debt

6) Convertible Debt and Other Debt

We entered into Subscription Agreements (the “Subscription Agreement”) with various individuals (each, a “Purchaser”) between July 23, 2015 and March 31, 2016, 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 $6,319,549 (the “Purchase Price”).

The Company issued a principal aggregate amount of $6,951,504 in Debentures which includes a 10% original issue discount on the Purchase Price. The Debenture does not accrue any additional interest during the first year it is outstanding but accrues interest at a rate equal to 10% per annum for the second year it is outstanding. The Debenture has a maturity date of two years from issuance. The Debenture is convertible any time after its issuance date. The Purchaser has the right to convert the Debenture into shares of the Company’s common stock at a fixed conversion price equal to $0.28 per share, subject to applicable adjustments. In the second year that the Debenture is outstanding, any interest accrued shall be payable quarterly in either cash or common stock, at the Company’s discretion.

At any time after the Issuance Date, the Company has the option, subject to certain conditions, to redeem some or all of the then outstanding principal amount of the Debenture for cash in an amount equal to the sum of (i) 120% of the then outstanding principal amount of the Debenture, (ii) accrued but unpaid interest and (iii) any liquidated damages and other amounts due in respect of the Debenture.

Warrants

The Company issued warrants exercisable into a total of 11,284,909 shares of our common stock. The Warrants issued in this transaction are immediately exercisable at an exercise price of $0.40 per share, subject to applicable adjustments including full ratchet anti-dilution in the event that we issue any securities at a price lower than the exercise price then in effect. The Warrants have an expiration period of five years from the original issue date. The Warrants are subject to adjustment for stock splits, stock dividends or recapitalizations and also include anti-dilution price protection for subsequent equity sales below the exercise price.

Subject to the terms and conditions of the Warrants, at any time commencing six months from the Final Closing, the Company has the right to call the Warrants for cancellation if the volume weighted average price of its Common Stock on the OTC QB Market (or other primary trading market or exchange on which the Common Stock is then traded) equals or exceeds three times the per share exercise price of the Warrants for 15 out of 20 consecutive trading days.

Security Agreement

In connection with the Subscription Agreement and Debenture, the Company entered into Security Agreements with the Purchasers whereby the Company agreed to grant to Purchasers an unconditional and continuing, first priority security interest in all of the assets and property of the Company to secure the prompt payment, performance and discharge in full of all of Company’s obligations under the Debentures, Warrants and the other Transaction Documents.

The Company determined that the conversion feature of the Debentures met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature on each debt agreement and accounted for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and are amortized to interest expense over the life of the loan. The fair value of the conversion feature was reflected in the conversion option liability line in the condensed consolidated balance sheets.

The proceeds from these convertible debts 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 allocations 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 are offset by debt discounts, which are amortized to interest expense over the expected life of the debt.

ASC 470-20 states that the proceeds from the issuance of debt with detachable stock warrants should be allocated between the debt and warrants on the basis of their relative fair market values. The debt discount will be amortized to interest expense over the two year term of these loans. We amortized $839,234 of the debt discount to interest expense in 2016. The warrants issued in connection with the convertible debentures are classified as warrant derivative liabilities because the warrants are entitled to certain rights in subsequent financings and the warrants contain “down-round protection” and therefore, do not meet the scope exception for treatment as a derivative under ASC 815, Derivatives and Hedging, (“ASC 815”). Since “down-round protection” is not an input into the calculation of the fair value of the warrants, the warrants cannot be considered indexed to the Company’s own stock which is a requirement for the scope exception as outlined under ASC 815. The estimated fair value of the warrants was determined using the binomial model, resulting in an allocation of $2,840,446 to the total warrants out of the gross proceeds of $6,319,549. The fair value will be affected by changes in inputs to that model including our stock price, expected stock price volatility, the contractual term, and the risk-free interest rate. We will continue to classify the fair value of the warrants as a liability until the warrants are exercised, expire or are amended in a way that would no longer require these warrants to be classified as a liability, whichever comes first.

The specific terms of the convertible debts and outstanding balances as of March 31, 2016 are listed in the table below.

Fixed Rate Convertible Notes
Inception Date	Term		Loan Amount		Outstanding Balance		Original Issue Discount			Interest Rate				Deferred Finance Fees		Discount related to Fair value of conversion feature and warrants
July 22, 2015		24 months	$	2,180,000	$	2,180,000	$	218,000	1		10	%	2	$	388,532	$	2,163,074
September 25, 2015		24 months		1,100,000		1,100,000		110,000	1		10	%	2		185,956		1,022,052
October 2, 2015		24 months		150,000		150,000		15,000	1		10	%	2		26,345		140,832
October 6, 2015		24 months		30,000		30,000		3,000	1		10	%	2		5,168		26,721
October 14, 2015		24 months		50,000		50,000		5,000	1		10	%	2		8,954		49,377
November 2, 2015		24 months		250,000		250,000		25,000	1		10	%	2		43,079		222,723
November 10, 2015		24 months		50,000		50,000		5,000	1		10	%	2		8,790		46,984
November 12, 2015		24 months		215,000		215,000		21,500	1		10	%	2		38,518		212,399
November 20, 2015		24 months		200,000		200,000		20,000	1		10	%	2		37,185		200,000
December 4, 2015		24 months		170,000		170,000		17,000	1		10	%	2		37,352		170,000
December 11, 2015		24 months		360,000		360,000		36,000	1		10	%	2		75,449		360,000
December 18, 2015		24 months		55,000		55,000		5,500	1		10	%	2		11,714		55,000
December 31, 2015		24 months		100,000		100,000		10,000	1		10	%	2		20,634		100,000
January 11, 2016		24 months		100,000		100,000		10,000	1		10	%	2		24,966		80,034
January 20, 2016		24 months		50,000		50,000		5,000	1		10	%	2		9,812		40,188
January 29, 2016		24 months		300,000		300,000		30,000	1		10	%	2		60,887		239,113
February 26, 2016		24 months		200,000		200,000		20,000	1		10	%	2		43,952		156,048
March 10, 2016		24 months		125,000		125,000		12,500	1		10	%	2		18,260		106,740
March 18, 2016		24 months		360,000		360,000		36,000	1		10	%	2		94,992		265,008
March 24, 2016		24 months		106,667		106,667		10,667	1		10	%	2		15,427		91,240
March 31, 2016		24 months		167,882		167,882		16,788	1		10	%	2		2,436		165,446
			$	6,319,549	$	6,319,549	$	631,955						$	1,158,408	$	5,912,979

1 The original issue discount is reflected in the first year.

2 The annual interest starts accruing in the second year.

The closings above on March 10, 24, and 31, 2016 included $264,667 of proceeds received from related parties.

At any time after six months from the Inception Date, the Company has the right to prepay the above Debentures in cash for 120% of the principal amount outstanding and any accrued interest. As of March 31, 2016, a total of approximately $291,000 convertible debentures were issued to related parties.

The following table provides a summary of the changes in convertible debt, net of unamortized discount, during 2016:

	2016
Balance at January 1,	$	277,342
Issuance of convertible debt, face value		1,550,504
Original issue discount		(140,955	)
Debt discount from derivative liabilities (embedded conversion option and warrants)		(1,143,817	)
Deferred financing fees		(275,232	)
Accretion of interest and amortization of debt discount to interest expense through March 31,		839,234
Balance at March 31,		1,107,076
Less: current portion		100,000
Convertible debt, long-term portion	$	1,007,076

Other Notes

On January 6, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $250,000 in exchange for rights to all customer receipts until the lender is paid $322,500, which is collected at the rate of $1,280 per business day. The payments were secured by second position rights to all customer receipts until the loan has been paid in full. $138,840 of the proceeds were used to pay off the outstanding balance of a previous loan from another lender. The Company recognized a gain on the settlement of the previous loan of $5,044 which was credited to interest expense. The Company paid $2,500 in fees in connection with this loan. The note was still outstanding as of March 31, 2016 with a balance of $175,774.

On January 20, 2016, we borrowed $50,000 from an individual with no interest or fees. We paid back the loan in March 2016.

On February 8, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $100,000 in exchange for third position rights to all customer receipts until the lender is paid $129,900, which is collected at the rate of $927 per business day. The Company paid $2,000 in fees in connection with this loan. The note was still outstanding as of March 31, 2016 with a balance of $65,704.

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Stockholders' Deficit

3 Months Ended

Mar. 31, 2016

Equity [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 March 31, 2016, 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, 2015 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 March 31, 2016, options to acquire 1,720,750 shares were outstanding under the Plan with 79,250 shares available for future grant under the 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, 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 March 31, 2016 1,675,500 options have been granted under the 2013 Plan.

On November 29, 2015 the Company’s Board of Directors adopted the 2015 Nonqualified Stock Option Plan (the “2015 Plan”) pursuant to which 5,000,000 shares of our common stock were reserved for issuance upon exercise of non-qualified stock options. Under the 2015 Plan, we may award non-qualified stock options in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of March 31, 2016, non-qualified options to acquire 2,068,000 shares were outstanding under the Plan with 2,932,000 shares available for future grants under the 2015 Plan.

All of the outstanding non-qualified options had an exercise price that was at or above the Company’s common stock share price on March 31, 2016.

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

	Stock Options					Warrants
	Weighted					Weighted
	Average					Average								Total
	Shares			Price per share		Shares			Price per share		Shares			Exercisable
Balance outstanding, 01/01/15		3,406,250		$	0.51		19,182,201		$	0.49		22,588,451			16,611,528
Granted		2,500,000			0.40		10,901,426			0.40		13,401,426
Exercised		-					-			-		-
Expired		(205,000	)		1.00		(791,678	)		0.31		(996,678	)
Forfeited		(130,000	)		0.70		-			-		(130,000	)
Balance outstanding, 12/31/15		5,571,250		$	0.44		29,291,949		$	0.49		34,863,199			31,664,469
Granted		-			-		2,929,552			0.40		2,929,552
Exercised		-					-			-		-
Expired		(111,000	)		1.00		(5,223,100	)		0.40		(5,334,100	)
Forfeited		-			-		-			-		-
Balance outstanding, 3/31/2016		5,460,250		$	0.43		26,998,401		$	0.45		32,458,651			29,658,673

	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		8.5	$	0.30		1,085,024		8.5	$	0.30
0.40 - 0.49		2,811,000		9.5		0.40		601,498		8.4		0.40
0.50 - 0.59		226,250		6.4		0.50		226,250		6.4		0.50
0.60 - 0.69		402,500		3.9		0.60		402,500		3.9		0.60
1.00 - 1.25		345,000		2.5		1.00		345,000		2.5		1.00
$0.30 - $1.25		5,460,250		8.2	$	0.43		2,660,272		6.8	$	0.48

As of March 31, 2016, the total estimated fair value of unvested stock options to be amortized over their remaining vesting period was $647,398. The non-cash, stock-based compensation expense associated with the vesting of these options is expected to be $273,013 for the remainder of 2016, $217,137 in 2017 and $157,248 in 2018.

Common Stock Issuances

On various dates from January to March 2016 the Company issued 305,000 shares of restricted common stock to investor relations firms for services rendered.

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Subsequent Events

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

Subsequent Events

8) Subsequent Events

On May 9, 2016, the Company received a $200,000, three-month, non-convertible loan from an investor. Loan terms include 12% annualized interest and the award of a three-year warrant to purchase 100,000 shares of the Company’s common stock at an exercise price set at $0.55.

On May 6, 2016, all remaining Series K preferred shareholders except one converted their preferred stock into approximately 4.3 million shares of the Company’s common stock.

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Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2016

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 ended March 31, 2016 and 2015.

	For the Three Months Ended
	March 31,
	2016			2015
Top Five Customers		46	%		64	%
Federal Agencies		11	%		26	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of March 31, 2016 and December 31, 2015:

	March 31, 2016			December, 31, 2015
Top Five Customers		55	%		93	%
Federal Agencies		0	%		1	%

Product Supply

Product Supply

BIT Group, Inc. of California has been our sole contract manufacturer for our PCT NEP3229 and NEP2320 instrumentation. However, the Company has reached agreement for a Massachusetts-based contract manufacturer to assemble its future instrumentation builds starting with the new NEP2320 Extreme Barocycler instrument, effective in May 2016.

Investment in Available-For-Sale Equity Securities

Investment in Available-For-Sale Equity Securities

As of March 31, 2016, we held 601,500 shares of common stock of Everest Investments Holdings S.A. (“Everest”), a Polish publicly traded company listed on the Warsaw Stock Exchange. We account for this investment in accordance with ASC 320 “Investments — Debt and Equity Securities” as securities available for sale. On March 31, 2016, our balance sheet reflected the fair value of our investment in Everest to be $154,824, based on the closing price of Everest shares of $0.26 per share on that day. The carrying value of our investment in Everest common stock held will change from period to period based on the closing price of the common stock of Everest as of the balance sheet date. This change in market value will be recorded by us on a quarterly basis as an unrealized gain or loss in Comprehensive Income or Loss.

Debt Issuance Costs

Debt Issuance Costs

In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (“ASU 2015-03”). ASU 2015-03 requires that debt issuance costs be presented as a direct deduction from the carrying amount of the related debt liability, consistent with the presentation of debt discounts. Prior to the issuance of ASU 2015-03, debt issuance costs were required to be presented as deferred charge assets, separate from the related debt liability. ASU 2015-03 does not change the recognition and measurement requirements for debt issuance costs. The Company early-adopted ASU 2015-03 as of the end of its Fiscal 2015, and applied its provisions retrospectively.

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 ended March 31, 2016 and 2015:

	For the Three Months Ended
	March 31,
	2016			2015
Numerator:
Net loss	$	(5,950,391	)	$	(2,047,455	)
Preferred dividends accrued		-			(16,668	)
Net loss applicable to common shareholders	$	(5,950,391	)	$	(2,064,123	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		23,198,360			18,840,390
Loss per common share - basic and diluted	$	(0.26	)	$	(0.11	)

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 Three Months Ended
	March 31,
	2016		2015
Stock options		5,460,250		3,406,250
Convertible debt		25,226,800		8,555,938
Common stock warrants		26,998,401		19,182,201
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		2,100,000
Series J Convertible Preferred Stock		3,546,000		3,546,000
Series K Convertible Preferred Stock		11,416,000		11,416,000
		77,363,151		50,822,089

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 $101,462 and $54,890 for the three months ended March 31, 2016 and 2015, 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 March 31,
	2016		2015
Research and development	$	20,381	$	11,343
Selling and marketing		12,690		6,975
General and administrative		68,391		36,572
Total stock-based compensation expense	$	101,462	$	54,890

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 convertible debentures and deferred revenue 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 its financial assets are classified within Level 1 and its financial liabilities are currently 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 assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2016:

			Fair value measurements at March 31, 2016 using:
	March 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		154,824		154,824		-		-
Total Financial Assets	$	154,824	$	154,824	$	-	$	-

	March 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	256,420		-		-	$	256,420
Warrants Issued with Convertible Debt		5,314,580		-		-		5,314,580
Conversion Option Derivative Liabilities		7,028,206		-		-		7,028,206
Total Derivatives	$	12,599,206	$	-	$	-	$	12,599,206

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2016:

	December 31, 2015		Issuance fair value		Change in fair value		March 31, 2016
Series D Preferred Stock Purchase Warrants	$	173,526	$	-	$	82,894	$	256,420
Warrants Issued with Convertible Debt		3,122,450		1,087,254		1,104,876		5,314,580
Conversion Option Derivative Liabilities		3,940,791		1,535,290		1,552,125		7,028,206
Total Derivatives	$	7,236,767	$	2,622,544	$	2,739,895	$	12,599,206

The amounts above valued at issuance includes $1,328,495 that was charged directly to “change in fair value of derivative liabilities” at issuance.

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2015:

			Fair value measurements at December 31, 2015 using:
	December 31, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		294,522		294,522		-		-
Total Financial Assets	$	294,522	$	294,522	$	-	$	-
	December 31, 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	$	173,526		-		-	$	173,526
Warrants Issued with Convertible Debt		3,122,450		-		-		3,122,450
Conversion Option Derivative Liabilities		3,940,791		-		-		3,940,791
Total Derivatives	$	7,236,767	$	-	$	-	$	7,236,767

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2015:

	January 1, 2015		Change in Fair Value		Reclassified to Equity		March 31, 2015
Series D Preferred Stock Purchase Warrants	$	159,875	$	51,031		-	$	210,906

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, 2015			Warrants revalued at March 31, 2016
Expected life (in months)		60.0			11.0			7.0
Expected volatility		104.5	%		104.9	%		103.6	%
Risk-free interest rate		0.875	%		0.65	%		0.39	%
Exercise price	$	0.81		$	0.25		$	0.25
Fair value per warrant	$	0.54		$	0.16		$	0.24

The assumptions for the binomial pricing model are represented in the table below for the warrants issued with the Convertible Debt throughout the period reflected on a per share common stock equivalent basis.

Assumptions	At Issuance Fair value			Warrants revalued at December 31, 2015			Warrants revalued at March 31, 2016
Expected life (in months)		60.0			55.0-60.0			48.0-60.0
Expected volatility		118.3 - 138.3	%		136.3-141.6	%		138.3 -142.2	%
Risk-free interest rate		1.23-1.69	%		1.29-1.76	%		1.21	%
Exercise price	$	0.40			0.40		$	0.40
Fair value per warrant		$ 0.19-$.40			0.30		$	0.40

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			Conversion options revalued at December 31, 2015			Conversion options revalued at March 31, 2016
Expected life (in months)		6-24			18-24			12-24
Expected volatility		104.2-153.8	%		112.2-114.7	%		112.03-113.67	%
Risk-free interest rate		0.05-0.99	%		1.06	%		0.59-0.73	%
Exercise price		$0.28-$0.35		$	0.28		$	0.28
Fair value per conversion option		$0.09-$0.30			$0.14-$0.33			$0.27-$0.30

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Summary of Significant Accounting Policies (Tables)

3 Months Ended

Mar. 31, 2016

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 ended March 31, 2016 and 2015.

	For the Three Months Ended
	March 31,
	2016			2015
Top Five Customers		46	%		64	%
Federal Agencies		11	%		26	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of March 31, 2016 and December 31, 2015:

	March 31, 2016			December, 31, 2015
Top Five Customers		55	%		93	%
Federal Agencies		0	%		1	%

Summary of Computation of Loss per Share

The following table illustrates our computation of loss per share for the three months ended March 31, 2016 and 2015:

	For the Three Months Ended
	March 31,
	2016			2015
Numerator:
Net loss	$	(5,950,391	)	$	(2,047,455	)
Preferred dividends accrued		-			(16,668	)
Net loss applicable to common shareholders	$	(5,950,391	)	$	(2,064,123	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		23,198,360			18,840,390
Loss per common share - basic and diluted	$	(0.26	)	$	(0.11	)

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

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 Three Months Ended
	March 31,
	2016		2015
Stock options		5,460,250		3,406,250
Convertible debt		25,226,800		8,555,938
Common stock warrants		26,998,401		19,182,201
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		2,100,000
Series J Convertible Preferred Stock		3,546,000		3,546,000
Series K Convertible Preferred Stock		11,416,000		11,416,000
		77,363,151		50,822,089

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 March 31,
	2016		2015
Research and development	$	20,381	$	11,343
Selling and marketing		12,690		6,975
General and administrative		68,391		36,572
Total stock-based compensation expense	$	101,462	$	54,890

Schedule of Liabilities Measured at Fair Value on Recurring Basis

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2016:

			Fair value measurements at March 31, 2016 using:
	March 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		154,824		154,824		-		-
Total Financial Assets	$	154,824	$	154,824	$	-	$	-

	March 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	256,420		-		-	$	256,420
Warrants Issued with Convertible Debt		5,314,580		-		-		5,314,580
Conversion Option Derivative Liabilities		7,028,206		-		-		7,028,206
Total Derivatives	$	12,599,206	$	-	$	-	$	12,599,206

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2016:

	December 31, 2015		Issuance fair value		Change in fair value		March 31, 2016
Series D Preferred Stock Purchase Warrants	$	173,526	$	-	$	82,894	$	256,420
Warrants Issued with Convertible Debt		3,122,450		1,087,254		1,104,876		5,314,580
Conversion Option Derivative Liabilities		3,940,791		1,535,290		1,552,125		7,028,206
Total Derivatives	$	7,236,767	$	2,622,544	$	2,739,895	$	12,599,206

The amounts above valued at issuance includes $1,328,495 that was charged directly to “change in fair value of derivative liabilities” at issuance.

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2015:

			Fair value measurements at December 31, 2015 using:
	December 31, 2015		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		294,522		294,522		-		-
Total Financial Assets	$	294,522	$	294,522	$	-	$	-
	December 31, 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	$	173,526		-		-	$	173,526
Warrants Issued with Convertible Debt		3,122,450		-		-		3,122,450
Conversion Option Derivative Liabilities		3,940,791		-		-		3,940,791
Total Derivatives	$	7,236,767	$	-	$	-	$	7,236,767

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the three months ended March 31, 2015:

	January 1, 2015		Change in Fair Value		Reclassified to Equity		March 31, 2015
Series D Preferred Stock Purchase Warrants	$	159,875	$	51,031		-	$	210,906

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, 2015			Warrants revalued at March 31, 2016
Expected life (in months)		60.0			11.0			7.0
Expected volatility		104.5	%		104.9	%		103.6	%
Risk-free interest rate		0.875	%		0.65	%		0.39	%
Exercise price	$	0.81		$	0.25		$	0.25
Fair value per warrant	$	0.54		$	0.16		$	0.24

The assumptions for the binomial pricing model are represented in the table below for the warrants issued with the Convertible Debt throughout the period reflected on a per share common stock equivalent basis.

Assumptions	At Issuance Fair value			Warrants revalued at December 31, 2015			Warrants revalued at March 31, 2016
Expected life (in months)		60.0			55.0-60.0			48.0-60.0
Expected volatility		118.3 - 138.3	%		136.3-141.6	%		138.3 -142.2	%
Risk-free interest rate		1.23-1.69	%		1.29-1.76	%		1.21	%
Exercise price	$	0.40			0.40		$	0.40
Fair value per warrant		$ 0.19-$.40			0.30		$	0.40

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			Conversion options revalued at December 31, 2015			Conversion options revalued at March 31, 2016
Expected life (in months)		6-24			18-24			12-24
Expected volatility		104.2-153.8	%		112.2-114.7	%		112.03-113.67	%
Risk-free interest rate		0.05-0.99	%		1.06	%		0.59-0.73	%
Exercise price		$0.28-$0.35		$	0.28		$	0.28
Fair value per conversion option		$0.09-$0.30			$0.14-$0.33			$0.27-$0.30

XML

Convertible Debt and Other Debt (Tables)

3 Months Ended

Mar. 31, 2016

Debt Disclosure [Abstract]

Schedule of Convertible Debts and Outstanding Balances

The specific terms of the convertible debts and outstanding balances as of March 31, 2016 are listed in the table below.

Fixed Rate Convertible Notes
Inception Date	Term		Loan Amount		Outstanding Balance		Original Issue Discount			Interest Rate				Deferred Finance Fees		Discount related to Fair value of conversion feature and warrants
July 22, 2015		24 months	$	2,180,000	$	2,180,000	$	218,000	1		10	%	2	$	388,532	$	2,163,074
September 25, 2015		24 months		1,100,000		1,100,000		110,000	1		10	%	2		185,956		1,022,052
October 2, 2015		24 months		150,000		150,000		15,000	1		10	%	2		26,345		140,832
October 6, 2015		24 months		30,000		30,000		3,000	1		10	%	2		5,168		26,721
October 14, 2015		24 months		50,000		50,000		5,000	1		10	%	2		8,954		49,377
November 2, 2015		24 months		250,000		250,000		25,000	1		10	%	2		43,079		222,723
November 10, 2015		24 months		50,000		50,000		5,000	1		10	%	2		8,790		46,984
November 12, 2015		24 months		215,000		215,000		21,500	1		10	%	2		38,518		212,399
November 20, 2015		24 months		200,000		200,000		20,000	1		10	%	2		37,185		200,000
December 4, 2015		24 months		170,000		170,000		17,000	1		10	%	2		37,352		170,000
December 11, 2015		24 months		360,000		360,000		36,000	1		10	%	2		75,449		360,000
December 18, 2015		24 months		55,000		55,000		5,500	1		10	%	2		11,714		55,000
December 31, 2015		24 months		100,000		100,000		10,000	1		10	%	2		20,634		100,000
January 11, 2016		24 months		100,000		100,000		10,000	1		10	%	2		24,966		80,034
January 20, 2016		24 months		50,000		50,000		5,000	1		10	%	2		9,812		40,188
January 29, 2016		24 months		300,000		300,000		30,000	1		10	%	2		60,887		239,113
February 26, 2016		24 months		200,000		200,000		20,000	1		10	%	2		43,952		156,048
March 10, 2016		24 months		125,000		125,000		12,500	1		10	%	2		18,260		106,740
March 18, 2016		24 months		360,000		360,000		36,000	1		10	%	2		94,992		265,008
March 24, 2016		24 months		106,667		106,667		10,667	1		10	%	2		15,427		91,240
March 31, 2016		24 months		167,882		167,882		16,788	1		10	%	2		2,436		165,446
			$	6,319,549	$	6,319,549	$	631,955						$	1,158,408	$	5,912,979

Summary of Changes in Convertible Debt, Net of Unamortized Discount

The following table provides a summary of the changes in convertible debt, net of unamortized discount, during 2016:

	2016
Balance at January 1,	$	277,342
Issuance of convertible debt, face value		1,550,504
Original issue discount		(140,955	)
Debt discount from derivative liabilities (embedded conversion option and warrants)		(1,143,817	)
Deferred financing fees		(275,232	)
Accretion of interest and amortization of debt discount to interest expense through March 31,		839,234
Balance at March 31,		1,107,076
Less: current portion		100,000
Convertible debt, long-term portion	$	1,007,076

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Stockholders' Deficit (Tables)

3 Months Ended

Mar. 31, 2016

Equity [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					Average								Total
	Shares			Price per share		Shares			Price per share		Shares			Exercisable
Balance outstanding, 01/01/15		3,406,250		$	0.51		19,182,201		$	0.49		22,588,451			16,611,528
Granted		2,500,000			0.40		10,901,426			0.40		13,401,426
Exercised		-					-			-		-
Expired		(205,000	)		1.00		(791,678	)		0.31		(996,678	)
Forfeited		(130,000	)		0.70		-			-		(130,000	)
Balance outstanding, 12/31/15		5,571,250		$	0.44		29,291,949		$	0.49		34,863,199			31,664,469
Granted		-			-		2,929,552			0.40		2,929,552
Exercised		-					-			-		-
Expired		(111,000	)		1.00		(5,223,100	)		0.40		(5,334,100	)
Forfeited		-			-		-			-		-
Balance outstanding, 3/31/2016		5,460,250		$	0.43		26,998,401		$	0.45		32,458,651			29,658,673

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		8.5	$	0.30		1,085,024		8.5	$	0.30
0.40 - 0.49		2,811,000		9.5		0.40		601,498		8.4		0.40
0.50 - 0.59		226,250		6.4		0.50		226,250		6.4		0.50
0.60 - 0.69		402,500		3.9		0.60		402,500		3.9		0.60
1.00 - 1.25		345,000		2.5		1.00		345,000		2.5		1.00
$0.30 - $1.25		5,460,250		8.2	$	0.43		2,660,272		6.8	$	0.48

XML

Business Overview, Liquidity and Management Plans (Details Narrative)	3 Months Ended
	Mar. 31, 2016 lb
Pounds per square inch	35,000
PBI Europe [Member]
Percentage of ownership interest	49.00%
Investment Bank [Member]
Percentage of ownership interest	51.00%

XML

Going Concern (Details Narrative)	3 Months Ended
	Mar. 31, 2016 USD ($)
Going Concern
Over subscribed on debt financing	$ 5,000,000
Debt financing	6,300,000
Net proceeds from additional convertible and non-convertible debt	$ 1,684,549

XML

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Forfeiture rate percentage	5.00%
Stock-based compensation expense	$ 101,462	$ 54,890
Change in fair value of derivative liabilities	$ 1,328,495
Everest Investments Holding [Member]
Sale of stock number of shares recevied	601,500
Fair value of investment	$ 154,824
Shares closing price per share	$ 0.26

XML

Summary of Significant Accounting Policies - Summary of Customer Concentration Risk Percentage (Details)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Top Five Customers [Member] | Revenue [Member]
Concentration as a percentage	46.00%	64.00%
Top Five Customers [Member] | Accounts Receivable [Member]
Concentration as a percentage	55.00%		93.00%
Federal Agencies [Member] | Revenue [Member]
Concentration as a percentage	11.00%	26.00%
Federal Agencies [Member] | Accounts Receivable [Member]
Concentration as a percentage	0.00%		1.00%

XML

Summary of Significant Accounting Policies - Summary of Computation of Loss per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accounting Policies [Abstract]
Net loss	$ (5,950,391)	$ (2,047,455)
Preferred dividends accrued		(16,668)
Net loss applicable to common shareholders	$ (5,950,391)	$ (2,064,123)
Weighted average common stock shares outstanding	23,198,360	18,840,390
Loss per common share - basic and diluted	$ (0.26)	$ (0.11)

XML

Summary of Significant Accounting Policies - Summary of Anti-dilutive Securities Excluded from Computation of Earnings per Share (Details) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Total potentially dilutive shares	77,363,151	50,822,089
Stock Options [Member]
Total potentially dilutive shares	5,460,250	3,406,250
Convertible Debt [Member]
Total potentially dilutive shares	25,226,800	8,555,938
Common Stock Warrants [Member]
Total potentially dilutive shares	26,998,401	19,182,201
Series D Convertible Preferred Stock [Member]
Total potentially dilutive shares	750,000	750,000
Series G Convertible Preferred Stock [Member]
Total potentially dilutive shares	865,700	865,700
Series H Convertible Preferred Stock [Member]
Total potentially dilutive shares	1,000,000	1,000,000
Series H2 Convertible Preferred Stock [Member]
Total potentially dilutive shares	2,100,000	2,100,000
Series J Convertible Preferred Stock [Member]
Total potentially dilutive shares	3,546,000	3,546,000
Series K Convertible Preferred Stock [Member]
Total potentially dilutive shares	11,416,000	11,416,000

XML

Summary of Significant Accounting Policies - Summary of Stock Based Compensation Expense (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Total stock-based compensation expense	$ 101,462	$ 54,890
Research and Development [Member]
Total stock-based compensation expense	20,381	11,343
Selling and Marketing [Member]
Total stock-based compensation expense	12,690	6,975
General and Administrative [Member]
Total stock-based compensation expense	$ 68,391	$ 36,572

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Summary of Significant Accounting Policies - Schedule of Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Total Financial Assets		$ 7,236,767
Fair value of derivative liability	$ 12,599,206
Balance	7,236,767
Issuance fair value	2,622,544
Change in Fair Value	2,739,895
Balance	$ 12,599,206
Quoted Prices in Active Markets (Level 1) [Member]
Total Financial Assets
Fair value of derivative liability
Significant Other Observable Inputs (Level 2) [Member]
Total Financial Assets
Fair value of derivative liability
Significant Unobservable Inputs [Member]
Total Financial Assets		$ 7,236,767
Fair value of derivative liability	$ 12,599,206
Available-For-Sale Equity Securities [Member]
Total Financial Assets	154,824	294,522
Available-For-Sale Equity Securities [Member] | Quoted Prices in Active Markets (Level 1) [Member]
Total Financial Assets	$ 154,824	$ 294,522
Available-For-Sale Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Total Financial Assets
Available-For-Sale Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Total Financial Assets
Series D Preferred Stock Purchase Warrants [Member]
Total Financial Assets		$ 173,526
Fair value of derivative liability	$ 256,420
Balance	$ 173,526
Issuance fair value
Change in Fair Value	$ 82,894
Balance	$ 256,420
Series D Preferred Stock Purchase Warrants [Member] | Quoted Prices in Active Markets (Level 1) [Member]
Total Financial Assets
Fair value of derivative liability
Series D Preferred Stock Purchase Warrants [Member] | Significant Other Observable Inputs (Level 2) [Member]
Total Financial Assets
Fair value of derivative liability
Series D Preferred Stock Purchase Warrants [Member] | Significant Unobservable Inputs (Level 3) [Member]
Total Financial Assets		$ 173,526
Fair value of derivative liability	$ 256,420
Warrants Issued with Convertible Debt [Member]
Total Financial Assets		$ 3,122,450
Fair value of derivative liability	5,314,580
Balance	3,122,450
Issuance fair value	1,087,254
Change in Fair Value	1,104,876
Balance	$ 5,314,580
Warrants Issued with Convertible Debt [Member] | Quoted Prices in Active Markets (Level 1) [Member]
Total Financial Assets
Fair value of derivative liability
Warrants Issued with Convertible Debt [Member] | Significant Other Observable Inputs (Level 2) [Member]
Total Financial Assets
Fair value of derivative liability
Warrants Issued with Convertible Debt [Member] | Significant Unobservable Inputs (Level 3) [Member]
Total Financial Assets		$ 3,122,450
Fair value of derivative liability	$ 5,314,580
Conversion Option Derivative Liabilities [Member]
Total Financial Assets		$ 3,940,791
Fair value of derivative liability	7,028,206
Balance	3,940,791
Issuance fair value	1,535,290
Change in Fair Value	1,552,125
Balance	$ 7,028,206
Conversion Option Derivative Liabilities [Member] | Quoted Prices in Active Markets (Level 1) [Member]
Total Financial Assets
Fair value of derivative liability
Conversion Option Derivative Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Total Financial Assets
Fair value of derivative liability
Conversion Option Derivative Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Total Financial Assets		$ 3,940,791
Fair value of derivative liability	$ 7,028,206

XML

Summary of Significant Accounting Policies - Schedule of Fair Value Assumptions (Details) - $ / shares		3 Months Ended	12 Months Ended
	Nov. 10, 2011	Mar. 31, 2016	Dec. 31, 2015
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, 2015 [Member]
Exercise price			$ 0.40
Fair value per share			$ 0.30
Warrants Revalued at December 31, 2015 [Member]
Expected life (in months)			11 months
Expected volatility			104.90%
Risk-free interest rate			0.65%
Exercise price			$ .25
Fair value per share			$ 0.16
Warrants Revalued at December 31, 2015 [Member] | Warrants Issued with Convertible Debt [Member] | Minimum [Member]
Expected life (in months)			55 months
Expected volatility			136.30%
Risk-free interest rate			1.29%
Warrants Revalued at December 31, 2015 [Member] | Warrants Issued with Convertible Debt [Member] | Maximum [Member]
Expected life (in months)			60 months
Expected volatility			141.60%
Risk-free interest rate			1.76%
Warrants Revalued at March 31, 2016 [Member]
Expected life (in months)		7 years
Expected volatility		103.60%
Risk-free interest rate		0.39%
Exercise price		$ 0.25
Fair value per share		$ 0.24
Warrants Revalued at March 31, 2016 [Member] | Warrants Issued with Convertible Debt [Member]
Risk-free interest rate		1.21%
Exercise price		$ 0.40
Fair value per share		$ 0.40
Warrants Revalued at March 31, 2016 [Member] | Warrants Issued with Convertible Debt [Member] | Minimum [Member]
Expected life (in months)		48 months
Expected volatility		138.30%
Warrants Revalued at March 31, 2016 [Member] | Warrants Issued with Convertible Debt [Member] | Maximum [Member]
Expected life (in months)		60 months
Expected volatility		142.20%
Issuance Fair Value [Member]
Expected life (in months)		24 months
Issuance Fair Value [Member] | Minimum [Member]
Expected volatility		104.20%
Risk-free interest rate		0.05%
Exercise price		$ 0.28
Fair value per share		$ 0.09
Issuance Fair Value [Member] | Maximum [Member]
Expected volatility		153.80%
Risk-free interest rate		0.99%
Exercise price		$ 0.35
Fair value per share		$ 0.30
Issuance Fair Value [Member] | Warrants Issued with Convertible Debt [Member]
Expected life (in months)		60 months
Exercise price		$ 0.40
Issuance Fair Value [Member] | Warrants Issued with Convertible Debt [Member] | Minimum [Member]
Expected volatility		118.30%
Risk-free interest rate		1.23%
Fair value per share		$ 0.19
Issuance Fair Value [Member] | Warrants Issued with Convertible Debt [Member] | Maximum [Member]
Expected volatility		138.30%
Risk-free interest rate		1.69%
Fair value per share		$ 0.40
Conversion Options Revalued at December 31, 2015 [Member]
Risk-free interest rate			1.06%
Exercise price			$ 0.28
Conversion Options Revalued at December 31, 2015 [Member] | Minimum [Member]
Expected life (in months)			18 months
Expected volatility			112.20%
Fair value per share			$ 0.14
Conversion Options Revalued at December 31, 2015 [Member] | Maximum [Member]
Expected life (in months)			24 months
Expected volatility			114.70%
Fair value per share			$ 0.33
Conversion Options Revalued at March 31, 2016 [Member]
Exercise price		$ 0.28
Conversion Options Revalued at March 31, 2016 [Member] | Minimum [Member]
Expected life (in months)		12 months
Expected volatility		112.03%
Risk-free interest rate		0.59%
Fair value per share		$ 0.27
Conversion Options Revalued at March 31, 2016 [Member] | Maximum [Member]
Expected life (in months)		24 months
Expected volatility		113.67%
Risk-free interest rate		0.73%
Fair value per share		$ 0.30

XML

Commitments and Contingencies (Details Narrative) - USD ($)		3 Months Ended
	Nov. 01, 2014	Mar. 31, 2016	Mar. 31, 2015
Rental expenses	$ 5,385	$ 33,877	$ 22,722
Extended lease term	Dec. 30, 2017
Grand received		1,050,000
Corporate Office [Member]
Rental expenses		$ 4,800
Extended lease term		Dec. 31, 2016

XML

Convertible Debt and Other Debt (Details Narrative) - USD ($)				3 Months Ended
	Feb. 08, 2016	Jan. 20, 2016	Jun. 06, 2014	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Jan. 06, 2014
Warrants purchase price				$ 5,416,681		$ 5,416,681
Debt principal amount				$ 1,550,504
Percentage of outstanding principal amount of debenture				120.00%
Issuance of warrants to purchase of common stock shares				11,284,909
Warrant exercise price per share				$ 0.40
Warrants expiration period				5 years
Warrants rights description				Subject to the terms and conditions of the Warrants, at any time commencing six months from the Final Closing, the Company has the right to call the Warrants for cancellation if the volume weighted average price of its Common Stock on the OTC QB Market (or other primary trading market or exchange on which the Common Stock is then traded) equals or exceeds three times the per share exercise price of the Warrants for 15 out of 20 consecutive trading days.
Amortized of debt discount				$ 839,234
Fair value of warrant				2,840,446
Gross proceeds from warrants				6,319,549
Proceeds from pay off outstanding balance of previous loan				264,667
Borrowed from related parties				96,667	$ 6,300
Gain on settlement of previous loan				5,044
Individuals [Member]
Borrowed from related parties		$ 50,000
Loan paid back date		Mar. 31, 2016
Lender [Member] | Merchant Agreement [Member]
Debt principal amount	$ 100,000
Payment of other notes	129,900
Collected rate business day	927
Debenture fee	$ 2,000
Other note outstanding balance				65,704
Lender [Member] | Merchant Agreement [Member] | Other Notes [Member]
Debt principal amount							$ 250,000
Payment of other notes			$ 322,500
Collected rate business day			1,280
Proceeds from pay off outstanding balance of previous loan			$ 138,840
Debenture fee							2,500
Other note outstanding balance				$ 175,774
Convertible debentures issued to related parties							$ 291,000
Subscription Agreement [Member] | Individuals [Member] | July 23, 2015 and March 31, 2016 [Member]
Percentage of warrants to purchase shares of common stock				50.00%
Warrants purchase price				$ 6,319,549
Debt principal amount				$ 6,951,504
Percentage of debt original issue discount on purchase price				10.00%
Percentage of annual interest rates				10.00%
Convertible debentures term				2 years
Debt conversion price per share				$ 0.28
Percentage of outstanding principal amount of debenture				120.00%

XML

Convertible Debt and Other Debt - Schedule of Convertible Debts and Outstanding Balances (Details)	3 Months Ended
	Mar. 31, 2016 USD ($)
Loan Amount	$ 1,550,504
Fixed Rate Convertible Notes [Member]
Loan Amount	6,319,549
Outstanding Balance	6,319,549
Original Issue Discount	631,955
Deferred Finance Fees	1,158,408
Discount related to Fair value of conversion feature and warrants	$ 5,912,979
Fixed Rate Convertible Notes [Member] | Convertible Debt [Member]
Inception Date	Jul. 22, 2015
Term	24 months
Loan Amount	$ 2,180,000
Outstanding Balance	2,180,000
Original Issue Discount	$ 218,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 388,532
Discount related to Fair value of conversion feature and warrants	$ 2,163,074
Fixed Rate Convertible Notes [Member] | Convertible Debt Two [Member]
Inception Date	Sep. 25, 2015
Term	24 months
Loan Amount	$ 1,100,000
Outstanding Balance	1,100,000
Original Issue Discount	$ 110,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 185,956
Discount related to Fair value of conversion feature and warrants	$ 1,022,052
Fixed Rate Convertible Notes [Member] | Convertible Debt Three [Member]
Inception Date	Oct. 02, 2015
Term	24 months
Loan Amount	$ 150,000
Outstanding Balance	150,000
Original Issue Discount	$ 15,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 26,345
Discount related to Fair value of conversion feature and warrants	$ 140,832
Fixed Rate Convertible Notes [Member] | Convertible Debt Four [Member]
Inception Date	Oct. 06, 2015
Term	24 months
Loan Amount	$ 30,000
Outstanding Balance	30,000
Original Issue Discount	$ 3,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 5,168
Discount related to Fair value of conversion feature and warrants	$ 26,721
Fixed Rate Convertible Notes [Member] | Convertible Debt Five [Member]
Inception Date	Oct. 14, 2015
Term	24 months
Loan Amount	$ 50,000
Outstanding Balance	50,000
Original Issue Discount	$ 5,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 8,954
Discount related to Fair value of conversion feature and warrants	$ 49,377
Fixed Rate Convertible Notes [Member] | Convertible Debt Six [Member]
Inception Date	Nov. 02, 2015
Term	24 months
Loan Amount	$ 250,000
Outstanding Balance	250,000
Original Issue Discount	$ 25,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 43,079
Discount related to Fair value of conversion feature and warrants	$ 222,723
Fixed Rate Convertible Notes [Member] | Convertible Debt Seven [Member]
Inception Date	Nov. 10, 2015
Term	24 months
Loan Amount	$ 50,000
Outstanding Balance	50,000
Original Issue Discount	$ 5,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 8,790
Discount related to Fair value of conversion feature and warrants	$ 46,984
Fixed Rate Convertible Notes [Member] | Convertible Debt Eight [Member]
Inception Date	Nov. 12, 2015
Term	24 months
Loan Amount	$ 215,000
Outstanding Balance	215,000
Original Issue Discount	$ 21,500	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 38,518
Discount related to Fair value of conversion feature and warrants	$ 212,399
Fixed Rate Convertible Notes [Member] | Convertible Debt Nine [Member]
Inception Date	Nov. 20, 2015
Term	24 months
Loan Amount	$ 200,000
Outstanding Balance	200,000
Original Issue Discount	$ 20,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 37,185
Discount related to Fair value of conversion feature and warrants	$ 200,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Ten [Member]
Inception Date	Dec. 04, 2015
Term	24 months
Loan Amount	$ 170,000
Outstanding Balance	170,000
Original Issue Discount	$ 17,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 37,352
Discount related to Fair value of conversion feature and warrants	$ 170,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Eleven [Member]
Inception Date	Dec. 11, 2015
Term	24 months
Loan Amount	$ 360,000
Outstanding Balance	360,000
Original Issue Discount	$ 36,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 75,449
Discount related to Fair value of conversion feature and warrants	$ 360,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Tweleve [Member]
Inception Date	Dec. 18, 2015
Term	24 months
Loan Amount	$ 55,000
Outstanding Balance	55,000
Original Issue Discount	$ 5,500	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 11,714
Discount related to Fair value of conversion feature and warrants	$ 55,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Thirteen [Member]
Inception Date	Dec. 31, 2015
Term	24 months
Loan Amount	$ 100,000
Outstanding Balance	100,000
Original Issue Discount	$ 10,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 20,634
Discount related to Fair value of conversion feature and warrants	$ 100,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Fourteen [Member]
Inception Date	Jan. 11, 2016
Term	24 months
Loan Amount	$ 100,000
Outstanding Balance	100,000
Original Issue Discount	$ 10,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 24,966
Discount related to Fair value of conversion feature and warrants	$ 80,034
Fixed Rate Convertible Notes [Member] | Convertible Debt Fifteen [Member]
Inception Date	Jan. 20, 2016
Term	24 months
Loan Amount	$ 50,000
Outstanding Balance	50,000
Original Issue Discount	$ 5,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 9,812
Discount related to Fair value of conversion feature and warrants	$ 40,188
Fixed Rate Convertible Notes [Member] | Convertible Debt Sixteen [Member]
Inception Date	Jan. 29, 2016
Term	24 months
Loan Amount	$ 300,000
Outstanding Balance	300,000
Original Issue Discount	$ 30,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 60,887
Discount related to Fair value of conversion feature and warrants	$ 239,113
Fixed Rate Convertible Notes [Member] | Convertible Debt Seventeen [Member]
Inception Date	Feb. 26, 2016
Term	24 months
Loan Amount	$ 200,000
Outstanding Balance	200,000
Original Issue Discount	$ 20,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 18,260
Discount related to Fair value of conversion feature and warrants	$ 156,048
Fixed Rate Convertible Notes [Member] | Convertible Debt Eighteen [Member]
Inception Date	Mar. 10, 2016
Term	24 months
Loan Amount	$ 125,000
Outstanding Balance	125,000
Original Issue Discount	$ 12,500	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 23,260
Discount related to Fair value of conversion feature and warrants	$ 106,740
Fixed Rate Convertible Notes [Member] | Convertible Debt Nineteen [Member]
Inception Date	Mar. 18, 2016
Term	24 months
Loan Amount	$ 360,000
Outstanding Balance	360,000
Original Issue Discount	$ 36,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 94,992
Discount related to Fair value of conversion feature and warrants	$ 265,008
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty [Member]
Inception Date	Mar. 24, 2016
Term	24 months
Loan Amount	$ 106,667
Outstanding Balance	106,667
Original Issue Discount	$ 10,667	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 15,427
Discount related to Fair value of conversion feature and warrants	$ 91,240
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty One [Member]
Inception Date	Mar. 31, 2016
Term	24 months
Loan Amount	$ 167,882
Outstanding Balance	167,882
Original Issue Discount	$ 16,788	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 2,436
Discount related to Fair value of conversion feature and warrants	$ 165,446

[1] The original issue discount is reflected in the first year.

[2] The annual interest starts accruing in the second year.

XML

Convertible Debt and Other Debt - Summary of Changes in Convertible Debt, Net of Unamortized Discount (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Debt Disclosure [Abstract]
Balance at January 1, 2016	$ 277,342
Issuance of convertible debt, face value	1,550,504
Original issued discount	(140,955)
Debt discount from derivative liabilities (embedded conversion option and warrants)	(1,143,817)
Deferred financing fees	(275,232)
Accretion of interest and amortization of debt discount to interest expense through March 31,	839,234
Balance at March 31, 2016	1,107,076
Less: current portion	100,000	$ 100,000
Convertible debt, long-term portion	$ 1,005,002	$ 177,342

XML

Stockholders' Deficit (Details Narrative) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Convertible preferred stock, authorized	1,000,000
Convertible preferred stock, par value	$ 0.01
Convertible preferred stock, shares issued	1,000,000
Common stock, shares outstanding under the plan	32,458,651		34,863,199	22,588,451
Estimated fair value of unvested stock options	$ 647,398
Stock-based compensation expense	101,462	$ 54,890
Remainder of 2016 [Member]
Stock-based compensation expense	273,013
2017 [Member]
Stock-based compensation expense	217,137
2018 [Member]
Stock-based compensation expense	$ 157,248
2015 Equity Incentive Plan [Member]
Common stock reserved for stock option plan	1,800,000
Common stock, shares outstanding under the plan	1,720,750
Common stock, shares available for future grant	79,250
2013 Equity Incentive Plan [Member]
Common stock reserved for stock option plan	3,000,000
Common stock, shares available for future grant	1,675,500
2015 Nonqualified Stock Option Plan [Member]
Common stock reserved for stock option plan	5,000,000
Common stock, shares outstanding under the plan	2,068,000
Common stock, shares available for future grant	2,932,000
Restricted Stock [Member] | Investor Relations Firms [Member]
Number of common stock shares issued for services	305,000
Series A Junior Participating Preferred Stock [Member]
Number of stock designated	20,000
Series A Convertible Preferred Stock [Member]
Number of stock designated	313,960
Series B Convertible Preferred Stock [Member]
Number of stock designated	279,256
Series C Convertible Preferred Stock [Member]
Number of stock designated	88,098
Series D Convertible Preferred Stock [Member]
Convertible preferred stock, authorized	850		850
Convertible preferred stock, par value	$ 0.01		$ 0.01
Convertible preferred stock, shares issued	300		300
Number of stock designated	850
Series E Convertible Preferred Stock [Member]
Number of stock designated	500
Series G Convertible Preferred Stock [Member]
Convertible preferred stock, authorized	240,000		240,000
Convertible preferred stock, par value	$ 0.01		$ 0.01
Convertible preferred stock, shares issued	86,570		86,570
Number of stock designated	240,000
Series H Convertible Preferred Stock [Member]
Convertible preferred stock, authorized	10,000		10,000
Convertible preferred stock, par value	$ 0.01		$ 0.01
Convertible preferred stock, shares issued	10,000		10,000
Number of stock designated	10,000
Series H2 Convertible Preferred Stock [Member]
Convertible preferred stock, authorized	21		21
Convertible preferred stock, par value	$ 0.01		$ 0.01
Convertible preferred stock, shares issued	21		21
Number of stock designated	21
Series J Convertible Preferred Stock [Member]
Convertible preferred stock, authorized	6,250		6,250
Convertible preferred stock, par value	$ 0.01		$ 0.01
Convertible preferred stock, shares issued	3,546		3,546
Number of stock designated	6,250
Series K Convertible Preferred Stock [Member]
Convertible preferred stock, authorized	15,000		15,000
Convertible preferred stock, par value	$ 0.01		$ 0.01
Convertible preferred stock, shares issued	11,416		11,416
Number of stock designated	15,000

XML

Stockholders' Deficit - Schedule of Concerning Options and Warrants Outstanding and Exercisable (Details) - $ / shares	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Shares, Beginning balance	34,863,199	22,588,451
Shares, Granted	2,929,552	13,401,426
Shares, Exercised
Shares, Expired	(5,334,100)	(996,678)
Shares, Forfeited		130,000
Shares, Ending balance	32,458,651	34,863,199
Exercisable, Beginning balance	31,664,469	16,611,528
Exercisable, Ending balance	29,658,673	31,664,469
Stock Option [Member]
Shares, Beginning balance	5,571,250	3,406,250
Shares, Granted		2,500,000
Shares, Exercised
Shares, Expired	(111,000)	(205,000)
Shares, Forfeited		(130,000)
Shares, Ending balance	5,460,250	5,571,250
Weighted average price per share, Beginning balance	$ 0.44	$ 0.51
Weighted average price per share, Granted		$ 0.40
Weighted average price per share, Exercised
Weighted average price per share, Expired	$ 1.00	$ 1.00
Weighted average price per share, Forfeited		0.70
Weighted average price per share, Ending balance	$ 0.43	$ 0.44
Warrants [Member]
Shares, Beginning balance	29,291,949	19,182,201
Shares, Granted	2,929,552	10,901,426
Shares, Exercised
Shares, Expired	(5,223,100)	(791,678)
Shares, Forfeited
Shares, Ending balance	26,998,401	29,291,949
Weighted average price per share, Beginning balance	$ 0.49	$ 0.49
Weighted average price per share, Granted	$ 0.40	$ 0.40
Weighted average price per share, Exercised
Weighted average price per share, Expired	$ 0.40	$ 0.31
Weighted average price per share, Forfeited
Weighted average price per share, Ending balance	$ 0.45	$ 0.49

XML

Stockholders' Deficit - Schedule of Share-based Compensation Stock Option Plans by Exercise Price Range (Details)	3 Months Ended
	Mar. 31, 2016 $ / shares shares
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 | shares	1,675,500
Options outstanding, weighted average remaining contractual life	8 years 6 months
Options outstanding, weighted average exercise price	$ 0.30
Options exercisable, number of options | shares	1,085,024
Options exercisable, weighted average remaining contractual life	8 years 6 months
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 | shares	2,811,000
Options outstanding, weighted average remaining contractual life	9 years 6 months
Options outstanding, weighted average exercise price	$ 0.40
Options exercisable, number of options | shares	601,498
Options exercisable, weighted average remaining contractual life	8 years 4 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 | shares	226,250
Options outstanding, weighted average remaining contractual life	6 years 4 months 24 days
Options outstanding, weighted average exercise price	$ 0.50
Options exercisable, number of options | shares	226,250
Options exercisable, weighted average remaining contractual life	6 years 4 months 24 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 | shares	402,500
Options outstanding, weighted average remaining contractual life	3 years 10 months 24 days
Options outstanding, weighted average exercise price	$ 0.60
Options exercisable, number of options | shares	402,500
Options exercisable, weighted average remaining contractual life	3 years 10 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 | shares	345,000
Options outstanding, weighted average remaining contractual life	2 years 6 months
Options outstanding, weighted average exercise price	$ 1.00
Options exercisable, number of options | shares	345,000
Options exercisable, weighted average remaining contractual life	2 years 6 months
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 | shares	5,460,250
Options outstanding, weighted average remaining contractual life	8 years 2 months 12 days
Options outstanding, weighted average exercise price	$ 0.43
Options exercisable, number of options | shares	2,660,272
Options exercisable, weighted average remaining contractual life	6 years 9 months 18 days
Options exercisable, weighted average exercise price	$ 0.48

XML

Subsequent Events (Details Narrative) - USD ($)	May. 09, 2016	May. 06, 2016	Mar. 31, 2016
Warrants exercise price per share			$ 0.40
Subsequent Event [Member] | Series K Preferred Shareholders [Member]
Number of preferred stock shares issued for common stock shares		4,300,000
Subsequent Event [Member] | Investor [Member]
Proceeds from non-convertible loan	$ 200,000
Loan annualized interest rate	12.00%
Warrants term	5 years
Warrants to purchase of common stock shares	100,000
Warrants exercise price per share	$ 0.55