10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Amendment No. 1

FORM 10-Q/A

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934   For the quarterly period ended :                                    June 30, 2012

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:                                               000-49901                                                            

NATURALNANO, INC.

(Exact name of registrant as specified in its charter)

Nevada	87-0646435
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
11 Schoen Place, Pittsford NY	14534
(Address of principal executive offices)	(Zip Code)

585-267-4848

(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.  Yes x   No ¨

Indicate by checkmark if the registrant has submitted electronically and posted on its Website, if any, every Interactive Date 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).  Yes x   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.

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 Rule 12b-2 of the Exchange Act). Yes ¨   No x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

54,633,539 as of August 17, 2012

EXPLANATORY NOTE

This Amendment No. 1 to the Quarterly Report on Form 10-Q is being filed solely to furnish the Interactive Data files as Exhibit 101, in accordance with Rule 405 of Regulation S-T. No other changes have been made to the Form 10-Q, as originally filed on August 20, 2012.

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Item 6. Exhibits.  

Exhibit No.	Description	Location
101	Interactive data files formatted in XBRL (eXtensible Business Reporting Language):  (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statement of Stockholders Deficiency (iv) the Consolidated Statements of Cash Flows, and (v) the Notes to the Consolidated Financial Statements.	**
	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
**	Filed herewith

3

SIGNATURES

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

		NaturalNano, Inc.
Date:	September 10, 2012	/s/ James Wemett
		James Wemett
		President and Director
		(Principal Executive, Financial and Accounting Officer)

4

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CONTINGENCIES (Details Textual) (Deferred Compensation, Severance and Vacation Benefits [Member], USD $)	3 Months Ended
	Sep. 30, 2010	May 24, 2009
Deferred Compensation, Severance and Vacation Benefits [Member]
Loss Contingency, Estimate of Possible Loss		$ 331,265
Stock Issued During Period Shares For Deferred Compensation	$ 54,691

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SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Segment profit (loss) from operations	$ (88,272)	$ (43,729)	$ (187,158)	$ (129,019)
Revenues from external customers	26,900	127,527	70,423	203,815
Significant non-cash items:
Loss on modification of debt	(235,000)	38,950	(310,000)	8,950
Nanotechnology [Member]
Segment profit (loss) from operations	(92,712)	(61,938)	(198,178)	(170,302)
Revenues from external customers	17,275	68,301	48,548	69,460
Revenues from intersegment sales	0	6,540	0	12,180
Interest expense and amortization of debt discount	110,153	92,175	208,501	184,686
Depreciation and amortization	13,033	24,654	34,053	52,553
Significant non-cash items:
Equity based payments	0	13,600	10,800	37,163
Loss on modification of debt	235,000	0	310,000	0
Medical Boards [Member]
Segment profit (loss) from operations	4,441	18,209	11,020	41,283
Revenues from external customers	9,625	59,226	21,875	134,355
Revenues from intersegment sales	0	0	0	0
Interest expense and amortization of debt discount	0	0	0	0
Depreciation and amortization	0	240	0	480
Significant non-cash items:
Equity based payments	0	0	0	0
Loss on modification of debt	0	0	0	0
Consolidated [Member]
Segment profit (loss) from operations	(88,271)	(43,729)	(187,158)	(129,019)
Revenues from external customers	26,900	127,527	70,423	203,815
Revenues from intersegment sales	0	6,540	0	12,180
Interest expense and amortization of debt discount	110,153	92,175	208,501	184,686
Depreciation and amortization	13,033	24,894	34,053	53,033
Significant non-cash items:
Equity based payments	0	13,600	10,800	37,163
Loss on modification of debt	$ 235,000	$ 0	$ 310,000	$ 0

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DEBT AGREEMENTS

6 Months Ended

Jun. 30, 2012

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

2.  DEBT AGREEMENTS

As of June 30, 2012, the Company had $3,580,972 in principal that was outstanding and past due under the terms of the Senior Secured Convertible Notes and Promissory Notes with Platinum Partners Long Term Growth IV (“Platinum”), Platinum Advisors and Longview Special Financing, Inc. (“Longview”). The Company entered into various Senior Secured Convertible Notes and Promissory Note obligations during the period from 2007 through 2012 with Platinum, Platinum Advisors and Longview, the holders of the Company’s primary debt obligations since 2007. The outstanding principal and all accrued and unpaid interest on these obligations was due and payable in full on various dates beginning March 6, 2009. Platinum and Platinum Advisors have granted waivers of default, extended the due dates of all the outstanding principal balances to September 30, 2012, and waived the application of the 16% default interest rate. In consideration for their forbearance effective April 16, 2012, Platinum Advisors will be paid $125,000 which was added to the principle balance of the note. This forbearance was considered and accounted for as a modification of debt and a loss of $125,000 for the three months ending June 30, 2012 and reported in the statement of operations. By way of two separate forbearance agreements dated January 1, 2012 and April 16, 2012, Longview has granted waivers of default, extended the due dates of all the outstanding principal balances to July 1, 2012, and waived the application of the 16% default interest rate. Additionally, Longview waived the automatic adjustment of the conversion rate for past and future S-8 stock issuances made for compensation and payments of services. In consideration for their forbearance, Longview will be paid $50,000 each for the forbearance which was added to the principle balance of the note. These forbearance amounts were considered and accounted for as a modification of debt and a loss of $50,000 for the three months ending March 31, 2012 and June 30, 2012 respectively and reported in the statement of operations. By way of a third forbearance agreement dated June 15, 2012, Longview has granted waivers of default, extended the due dates of all the outstanding principal balances to September 30, 2012, and waived the application of the 16% default interest rate. In consideration for their forbearance, Longview will be paid $30,000 for the forbearance which was added to the principle balance of the note. This forbearance amount was considered and accounted for as a modification of debt and recorded as a loss of $30,000 for the three months ending June 30, 2012 in the statement of operations.

The Convertible Notes discussed above mature and all outstanding principal is due and payable on September 30, 2012, as amended.

On February 10, 2012, the Company borrowed $25,000 from Platinum. This promissory note is pursuant to the terms of the Senior Secured Promissory Note. The note bears interest at the rate of 8% per annum and is due and payable on September 30, 2012 with the forbearance agreement extension.

On March 5, 2012, the Company borrowed $12,000 from Platinum. This promissory note is pursuant to the terms of the Senior Secured Promissory Note. The note bears interest at the rate of 8% per annum and is due and payable on September 30, 2012 with the forbearance agreement extension.

On April 16, 2012, the Company borrowed $15,000 from Platinum. This promissory note is pursuant to the terms of the Senior Secured Promissory Note. The note bears interest at the rate of 8% per annum and is due and payable on September 1, 2012.

On May 11, 2012, the Company borrowed $20,000 from Platinum. This promissory note is pursuant to the terms of the Senior Secured Promissory Note. The note bears interest at the rate of 8% per annum and is due and payable on September 1, 2012.

During the first six months of 2012, until the Reverse Stock Split (see Note 9), the Company issued 1,729,412 and 11,053,941 split adjusted shares of common stock to Platinum in payment of $147,000 of interest expense obligations and $939,585 of principal obligations, respectively, on the Senior Secured Convertible Notes. In accordance with the debt agreement, these shares were issued to Platinum using a split adjusted conversion price of $0.085 per common share. Subsequent to the Reverse Stock Split, the Company issued 3,967,626 shares of common stock to Platinum in payment of $25,393 of interest expense obligations on the Senior Secured Convertible Notes. These shares were issued to Platinum using a conversion price of $0.0064 per common share. The issuance of shares in excess of the conversion rate in place at the time of $0.085 were considered an inducement to convert and resulted in an expense of $24,221 based on the market value at the time the excess shares were issued. This expense is included in interest expense for the three months ended June 30, 2012.

The anti-dilution provisions of the above instruments would be triggered as a result of this inducement, as well as the preferred share inducement disclosed in Note 6. The holders of these notes have agreed to waive their rights to adjustment of the conversion rate of the debt and exercise price of their warrants as a result of these transactions.

As of March 1, 2011 the Company had $225,000 in principal that was outstanding and due under the terms of the 10% Subordinated Secured Convertible Promissory Agreement (the “Convertible Note”) with Cape One Financial LP (“Cape One”). On March 15, 2011 the Company and Cape One entered into a forbearance agreement which altered the due date of the Convertible Note from March 1, 2011 to June 30, 2011.  As consideration for this forbearance, Cape One will be paid $30,000 which was added to the principal balance of the note.  In addition, the interest rate on the outstanding amount during the forbearance period will be adjusted from 10% to 18%. The forbearance agreement was considered and accounted for as a modification of debt and resulted in a loss of $30,000 for the three months ended March 31, 2011 reported in the statement of operations. Effective June 30, 2011, the Company and Cape One entered into a forbearance agreement which altered the due date of the Convertible Note from June 30, 2011 to October 1, 2011. Effective September 30, 2011, the Company and Cape One entered into another forbearance agreement which altered the due date of the Convertible note from October 1, 2011 to November 22, 2011. As consideration for this forbearance, Cape One will be paid $30,000 which will be added to the principal balance of the note. This forbearance agreement was considered and accounted for as a modification of debt and resulted in a loss of $30,000 for the three months ended September 30, 2011 reported in the statement of operations. Effective January 17, 2012, the Company entered into a forbearance agreement which extends the due date of all the outstanding principal and interest balances to April 16, 2012.  As consideration for this forbearance, Cape One will be paid $25,000 which will be added to the principal balance of the note. The forbearance agreement was considered and accounted for as modification of debt and a loss of $25,000 for the three months ending March 31, 2012 and reported in the statement of operations. Effective April 16, 2012, the Company entered into a forbearance agreement which extends the due date of all the outstanding principal and interest balances to July 01, 2012. Effective June 30, 2012, the Company entered into a forbearance agreement which extends the due date of all the outstanding principal and interest balances to September 30, 2012.  As consideration for this forbearance, Cape One will be paid $30,000 which will be added to the principle balance of the note. The forbearance agreement was considered and accounted for as modification of debt and a loss of $30,000 for the three months ending June 30, 2012 and reported in the statement of operations.

During the first six months of 2012, the Company issued 524,118 and 352,941 shares of common stock to Cape One in payment of $30,000 of principal obligations and $44,550 of interest expense obligations, respectively, on the 10% Convertible Note. In accordance with the debt agreement, these shares were issued to Cape One using a split adjusted conversion price of $0.085 per common share.

  Registration Rights Agreement

On March 7, 2007, the Company entered into a Registration Rights Agreement with the Agent and the other investors, pursuant to which the Company agreed to prepare and file within 60 days of the March 7, 2007 agreement, a registration statement for resale under the Securities Act of 1933, the common stock issuable upon the exercise of the Warrants, in payment of interest on, or upon conversion of, the Notes. The Company further agreed to use its best efforts to cause the Registration Statement to be declared effective 120 days following the March 7, 2007 agreement date, or within 150 days if the Company receives a comment letter from the SEC, and to maintain such Registration Statement for the two year period following this date. This agreement allows for liquidated damages based on a daily amount of 0.0333% of the principal amount of the notes relating to the common stock issuable upon conversion of the Notes included in the Registration Statement.

As of June 30, 2012, the registration statement had not been updated with the requisite SEC filings and as such, the Company was in default of this provision of the Registration Rights Agreement. The lenders have provided the Company with a forbearance agreement related to this default through September 30, 2012. The Company recorded a total of $146,028 in such liquidated damages as of December 17, 2007, the date the registration statement was declared effective. As of December 31, 2007, $63,539 of this obligation was paid in cash and $82,489 was recorded as an accrued liability. The lender has the option to settle the liquidated damages in common stock valued at the average price for the five days prior to the end of a payment period. At June 30, 2012 and December 31, 2011 the outstanding balance for this obligation was $82,489.

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DERIVATIVE LIABILITY (Details Textual)		12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011 10% Subordinated Secured Convertible Note	Nov. 30, 2009 10% Subordinated Secured Convertible Note
Class of Warrant or Right, Outstanding	4,247,059
Class of Warrant or Right, Exercise Price of Warrants or Rights		0.0425
Debt Conversion, Converted Instrument, Warrants or Options Issued		2,647,059
Debt Instrument, Interest Rate, Stated Percentage			10.00%

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DERIVATIVE LIABILITY (Details 1) (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Fair value beginning	$ 21,658	$ 76,667
Loss (gain) recognized in Q1	0	67,914
Loss (gain) recognized in Q2	0	(29,662)
Fair value ending	$ 21,658	$ 114,919

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STOCKHOLDERS EQUITY (Details Textual) (USD $)	3 Months Ended		6 Months Ended				3 Months Ended	6 Months Ended	1 Months Ended	0 Months Ended		1 Months Ended	0 Months Ended	6 Months Ended			1 Months Ended	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Apr. 30, 2012	Jan. 03, 2011	Jun. 30, 2012 Platinum Partners Long Term Growth I V [Member] Senior Secured Convertible Notes [Member]	Jun. 30, 2012 Platinum Partners Long Term Growth I V [Member] Senior Secured Convertible Notes [Member]	Jun. 18, 2012 Alpha Capital Partners [Member]	May 08, 2012 Alpha Capital Partners [Member]	Mar. 16, 2012 Alpha Capital Partners [Member]	Mar. 22, 2012 Alpha Capital Partners [Member]	Feb. 15, 2012 Alpha Capital Partners [Member]	Jun. 30, 2012 Cape One Financial L P [Member]	Jun. 30, 2012 Cape One Financial L P [Member] Interest Expense [Member]	Jun. 30, 2012 Cape One Financial L P [Member] Convertible Notes [Member]	Jan. 31, 2011 Jim Wemett [Member]	Mar. 31, 2011 Jim Wemett [Member]	Jun. 30, 2012 Jim Wemett [Member]	Jan. 03, 2011 Jim Wemett [Member]
Class of Warrant or Right, Outstanding	4,247,059		4,247,059																	882,353
Class of Warrant or Right, Exercise Price of Warrants or Rights																				$ 0.17
Class Of Warrants Or Rights Vesting Period																				3 years
Class Of Warrants Or Rights Expiration Date																			Jan. 03, 2016
Fair Value Of Warrants Or Rights On The Date Of Grant																				$ 34,879
Fair Value Assumptions Expected Volatility Rate																	150.00%	3.36%
Market Price Of Common Stock						$ 0.0476
Fair Value Assumptions, Expected Term																		5 years
Fair Value Of Warrants Recording Period																				36 months
Long-term Debt, Gross	25,393		25,393				939,585	939,585
Issuance of warrants for services			5,813	5,813
Stock Issued During Period Shares New Issues For Interest Expense Debt							3,967,626	1,729,412
Stock Issued During Period, Shares, Reverse Stock Splits	5,000,000,000		11,053,941					11,053,941
Debt Instrument, Convertible, Interest Expense							25,393	147,000
Debt Instrument, Convertible, Conversion Price	$ 0.0064		$ 0.0064				$ 0.0064	$ 0.0064								$ 85
Excess Of Debt Instrument Conversion Rate	$ 0.085		$ 0.085				$ 0.085	$ 0.085
Interest Expense, Debt	24,221						24,221
Convertible Preferred Stock, Nonredeemable or Redeemable, Issuer Option, Value									12,500	200,000	62,500	125,000	62,500
Stock Issued During Period, Shares, Conversion Of Convertible Securities									2,000,000	1,882,353	588,235	1,176,471	588,235
Stock Issued During Period Conversion Price Per Share	$ 9.41		$ 9.41
Preferred Stock Conversions, Inducements	12,235	0	12,235	0
Stock Issued During Period, Shares, New Issues			1,227,738,642											877,059
Stock Issued During Period, Value, New Issues															44,500	30,000
Stock Issued During Period, Shares, Issued for Services			1,764,706
Stock Issued During Period, Value, Issued for Services	$ 10,800
Class Of Warrant Or Right Expired Unexercised					14,162

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INCENTIVE STOCK PLANS (Details) (USD $)	6 Months Ended	12 Months Ended
	Jun. 30, 2012	Dec. 31, 2011
Options outstanding, shares	741,373
Granted/Exercises/Cancelled/Forfeited, shares	0
Options outstanding, shares	741,373	741,373
Options exercisable, shares	741,373
Options outstanding, weighted average exercise price	$ 3.52
Options outstanding, weighted average exercise price	$ 3.52	$ 3.52
Options exercisable, weighted average exercise price	$ 3.52
Options outstanding, weighted average remaining life-years	3 years 6 months	4 years
Options exercisable, weighted average remaining life-years	3 years 6 months

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PRINCIPAL BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2012

Principal Business Activity and Significant Accounting Policies [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

1.   PRINCIPAL BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES

Interim Financial Statements

The consolidated financial statements as of June 30, 2012 and for the three and six months ended June 30, 2012 and 2011 are unaudited. However, in the opinion of management of the Company, these financial statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary to present fairly the financial position and results of operations for such interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results to be obtained for a full year. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X for smaller reporting companies.  Accordingly, these financial statements do not include all of the information required by U.S. generally accepted accounting principles for complete financial statements.  These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. Certain prior period amounts have been adjusted to reflect the Company’s 1-for-17 reverse stock split (see Note 9 Reverse Stock Split, for further details).

Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate such estimates. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Fair Value of Financial Instruments

Financial instruments include cash and cash equivalents, accounts payable and accrued expenses, notes payable, capital leases and derivative liabilities. Fair values for all instruments except for derivative liabilities were assumed to approximate carrying values for these financial instruments since they are short-term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand. The fair value of the Company’s convertible notes payable is estimated based upon the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. The carrying value approximates the fair value of these debt instruments as of June 30, 2012 and December 31, 2011 based on rates charges being consistent with current market rates available to the Company.

Basis of Consolidation

The consolidated financial statements include the accounts of NaturalNano, Inc. (“NaturalNano” or the “Company”), a Nevada corporation, and its wholly owned subsidiary NaturalNano Research, Inc. (“NN Research”) a Delaware corporation. As of April 20, 2010 the consolidated financial statements reflect the acquisition of a 51% controlling interest in Combotexs, LLC, (“Combotexs”), a privately held New York limited liability company, pursuant to the terms of the Equity Purchase Agreement executed with Worldwide Medical Solutions LLC (“WMS”) (Refer to Note 3). All significant inter-company accounts and transactions have been eliminated in consolidation.

Description of the Business

NaturalNano (the “Company”), located in Pittsford, New York, is engaged in the development and commercialization of material science technologies with an emphasis on additives to polymers and other industrial and consumer products by taking advantage of technology advances developed in-house. The Company’s current activities are directed toward research, development, production and marketing of its proprietary technologies relating to the treatment and separation of nanotubes from halloysite clay and the development of related commercial applications for:

• cosmetics, health and beauty products

• polymers, plastics and composites

Combotexs was a technology company organized on October 28, 2009 that marketed Error Prevention/Safety Checklist Boards and Safety Training to hospitals and other industries such as healthcare, petrochemical and mining.  Combotexs also had certain marketing and distribution agreements for various household products.  The Company acknowledges the acquisition of Combotexs as a short term source for revenue, cash flow and a method of incorporating nanotubes found in halloysite clay into Combotexs products.

During the fourth quarter of 2011, the Company determined that the relationship with Combotexs was not operating in the manner it was intended. The sales were not to the volume expected and the continued operations, as structured, were not sustainable. During the month of December, the board of directors authorized the Company CEO to wind down the operations of Combotexs resulting in a write down of assets and the inventory revalued and assumed by NaturalNano. No further activity will occur with Combotexs beyond December 31, 2011 and the entity is expected to be legally dissolved in 2012.

During the fourth quarter of 2011, the Company entered into a supply agreement with another company, which is 50% owned by NaturalNano’s CEO, to manufacture and sell Error Prevention/Safety Checklist Boards which the related party will then market to the end user. NaturalNano will continue to outsource the manufacture of the boards to a third-party and then re-sell them to the new company. Accordingly, the Company will still have continuing cash flows from the business in 2012 and beyond.

NaturalNano is domiciled in the state of Nevada as a result of the merger with Cementitious Materials, Inc., (“CMI”), which was completed on November 29, 2005.

Liquidity and Going Concern

Going Concern – The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company incurred a net loss for the six months ended June 30, 2012 of $705,659 and had negative working capital of $5,651,449 and a stockholders’ deficiency of $5,672,051 at June 30, 2012. Since inception the Company’s growth has been funded through a combination of convertible debt from private investors and from cash advances from its former parent and majority shareholder Technology Innovations, LLC. These factors, among others, may indicate that the Company will be unable to continue as a going concern for a reasonable period of time. The Company's continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations, to obtain additional financing, renegotiate the terms of existing financing obligations and ultimately to attain successful operations. The ability to successfully achieve those items is uncertain.

As of June 30, 2012, the Company continued to require waivers for debt covenant violations and extensions of maturity dates. Refer to Note 2 for lenders waivers and maturity extensions received from the lenders.

QETC rebate for fiscal year ended December 31, 2009

The QETC tax rebate for 2009 had been in audit since its filing in September of 2010. The Company received notice in March 2011 that the audit was complete and that the rebate for 2009 would be for $60,073. NaturalNano received the first payment of $43,615 in March of 2011 and that amount was reflected in the financial statements for the first quarter of 2011. The Company received the final payment of $16,458 on April 14, 2011 and that amount is reflected in the financial for the second quarter of 2011. These amounts are presented as a reduction of general and administrative expenses.

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

Loss Per Share

Basic loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted loss per common share gives effect to dilutive convertible preferred stock, convertible debt, options and warrants outstanding during the period. Shares to be issued upon the exercise of these instruments have not been included in the computation of diluted loss per share as their effect is anti-dilutive based on the net loss incurred. See Note 9 regarding the reverse split of the Company’s common stock which occurred on June 14, 2012.

As of June 30, 2012, there are 107,820,194 shares underlying preferred stock, convertible debt, outstanding options and warrants that could potentially dilute future earnings. These potentially dilutive shares have been limited by certain debt and equity agreements with Platinum, Platinum Advisors, Longview and Technology Innovations LLC (“TI”). These agreements provide limitations on the conversion of the dilutive instruments such that the number of shares of Common Stock that may be acquired by the holder upon conversion of such instruments shall be limited to ensure that following such conversion the total number of shares of Common Stock then beneficially owned by the holder does not exceed 4.99% of the total number of issued and outstanding shares of Common Stock.

As a result of the forbearance agreements signed subsequent to June 30, 2012, the potentially issuable shares based on the Company’s stock price as of June 30, 2012, has increased to, 1,227,738,642. As a result of this change, there is not an adequate number common shares of stock authorized.

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INCENTIVE STOCK PLANS (Details Textual)	Jun. 30, 2012
2005 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	823,530
2007 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,000,000
2008 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	47,058,824
2009 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,176,471
2011 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,470,589
2012 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	1,764,706

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CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2012	Dec. 31, 2011
Assets
Cash	$ 0	$ 1,732
Accounts receivable	8,350	11,536
Inventory	22,996	20,593
Prepaid expenses and other current assets	12,544	10,033
Total current assets	43,890	43,984
Property and equipment, net	10,398	44,451
Total non-current assets	10,398	44,451
Total Assets	54,288	88,345
Liabilities and Stockholders' Deficiency
Senior secured convertible notes	3,134,415	3,819,000
Senior secured promissory notes	446,557	374,557
Subordinated secured convertible note, net of discount of $0 and $1,799, respectively	265,000	240,000
Accounts payable	509,590	498,080
Accrued expenses	82,850	98,851
Accrued interest	274,623	307,283
Accrued payroll	808,157	736,181
Deferred revenue	70,000	70,000
Registration rights liability	82,489	82,489
Derivative liability	21,658	21,658
Total current liabilities	5,695,339	6,248,099
Other long term liabilities	31,000	34,000
Total Liabilities	5,726,339	6,282,099
Stockholders' Deficiency
Common Stock - $.001 par value 294,117,647 authorized, issued and outstanding 49,031,708 and 23,403,670, respectively	49,032	23,403
Additional paid in capital	21,179,526	19,977,330
Noncontrolling interest in subsidiary	14,264	14,264
Accumulated deficit	(26,919,308)	(26,213,649)
Total stockholders' deficiency	(5,672,051)	(6,193,754)
Total liabilities and stockholders' deficiency	54,288	88,345
Series B Preferred Stock [Member]
Stockholders' Deficiency
Preferred Stock - $.001 par value, 10 million shares authorized	185	648
Series C Preferred Stock [Member]
Stockholders' Deficiency
Preferred Stock - $.001 par value, 10 million shares authorized	$ 4,250	$ 4,250

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CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY (DEFICIENCY) [PARENTHETICAL]	6 Months Ended
	Jun. 30, 2012
Range of Per share value of Common stock granted for services	0.005 to $.007

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SUBSEQUENT EVENTS (Details Textual) (USD $)	0 Months Ended	1 Months Ended				1 Months Ended	0 Months Ended		1 Months Ended	0 Months Ended		6 Months Ended									1 Months Ended
	Jul. 16, 2012	Jul. 25, 2012	Jun. 30, 2012	Dec. 31, 2011	Jul. 16, 2012 Platinum Partners Long Term Growth I V [Member]	Jun. 18, 2012 Alpha Capital Partners [Member]	May 08, 2012 Alpha Capital Partners [Member]	Mar. 16, 2012 Alpha Capital Partners [Member]	Mar. 22, 2012 Alpha Capital Partners [Member]	Feb. 15, 2012 Alpha Capital Partners [Member]	Jul. 16, 2012 Senior Secured Promissory Note [Member]	Jun. 30, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Jul. 19, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Jul. 16, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	May 11, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Apr. 16, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Mar. 05, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Feb. 10, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Jul. 19, 2012 Senior Secured Promissory Note [Member] Longview Special Financing,Inc. [Member]	Jun. 30, 2012 Senior Secured Convertible Notes [Member] Platinum Partners Long Term Growth I V [Member]	Jul. 26, 2012 Series B Preferred Stock [Member] Alpha Capital Partners [Member]	Jul. 26, 2012 Series C Preferred Stock [Member] Senior Secured Convertible Notes [Member] Platinum Partners Long Term Growth I V [Member]
Debt Instrument, Interest Rate, Stated Percentage					75.00%						8.00%		8.00%	8.00%	8.00%	8.00%	8.00%	8.00%	8.00%
Forbearance Agreement Conversion Prices Terms	75% of the lowest average VWAP (as defined in such notes) for the one business day, five business day or ten business day period immediately preceding the date of the conversion request, such period to be selected by the lender	75% of the lowest average VWAP (as defined in such notes) for the one business day, five business day or ten business day period immediately preceding the date of the conversion request, such period to be selected by the lender
Conversion Price For Convertible Notes	$ 0.01	$ 0.01
Convertible Preferred Stock, Nonredeemable or Redeemable, Issuer Option, Value						$ 12,500	$ 200,000	$ 62,500	$ 125,000	$ 62,500		$ 4,250,000
Debt Instrument, Convertible, Conversion Price			$ 0.0064									$ 9.41								$ 0.0064
Shares issued on debt conversion (in shares)						2,000,000	1,882,353	588,235	1,176,471	588,235		160
Long-term Debt, Gross			25,393										7,000						24,000	939,585
Common Stock, shares issued			49,031,708	23,403,670																	2,000,000	3,601,831
Conversion of Stock, Shares Converted																					12,500	22,511
Conversion Rate Of Shares																					$ 160	$ 160

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PRINCIPAL BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) (USD $)	3 Months Ended			6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Mar. 31, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Apr. 20, 2010
Business Acquisition, Percentage of Voting Interests Acquired							51.00%
Net Income (Loss) Attributable To Parent	$ (433,425)	$ (41,428)		$ (705,659)	$ (320,529)
Working Capitail Deficit	5,651,449			5,651,449
Stockholders Equity, Including Portion Attributable To Noncontrolling Interest	(5,672,051)			(5,672,051)		(6,193,754)
Weighted Average Number of Shares Outstanding, Diluted				107,820,194
Qetc Tax Rebate			$ 43,615	$ 60,073	$ 16,458
Stock Issued During Period, Shares, New Issues				1,227,738,642
Chief Executive Officer [Member]
Percentage Of Interest On Supply Agreement						50.00%

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51% ACQUISITION of COMBOTEXS, LLC (Details Textual) (USD $)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011	Dec. 31, 2011	Apr. 20, 2010
Cost of goods sold	$ 6,237	$ 35,996	$ 13,986	$ 57,953	$ 36,875
Goodwill					0
Goodwill, Impairment Loss					$ 80,332
Business Acquisition, Percentage Of Voting Interests Acquired						51.00%
Chief Executive Officer [Member]
Percentage Of Interest On Supply Agreement					50.00%

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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011
Cash flows from operating activities:
Net loss attributable to controlling interest	$ (705,659)	$ (320,529)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	34,053	53,033
Amortization of discount on convertible notes	0	1,799
Amortization of deferred financing costs	0	3,815
Fair value adjustment of derivative liabilities	0	38,252
Non cash gain on forgiveness of debt	0	(38,950)
Issuance of stock for services	10,800	31,350
Inducement to convert interest	24,221	147,587
Issuance of warrants for services	5,813	5,813
Loss on modification of debt	310,000	30,000
Income from non-controlling interest in subsidiary	0	9,111
Changes in operating assets and liabilities:
(Increase) decrease in inventory	(2,403)	(35,817)
Increase in accounts receivable	3,186	(25,976)
Decrease in other current assets	(2,511)	800
Decrease in accounts payable, accrued payroll and accrued expenses	251,768	59,924
(Decrease) increase in deferred revenue	0	(2,270)
Decrease in other liability	(3,000)	(3,000)
Net cash used in operating activities	(73,732)	(45,058)
Cash flows from financing activities:
Proceeds from 10% senior secured promissory notes	72,000	65,000
Proceeds from unsecured promissory note	0	3,000
Net cash provided by financing activities	72,000	68,000
Increase (decrease) in cash	(1,732)	22,942
Cash at beginning of period	1,732	6,861
Cash at end of period	0	29,803
Supplemental disclosure of cash flow information:
Cash paid for interest during the period	0	5,671
Schedule of non-cash investing and financing activities:
Common stock issued for convertible notes	969,585	80,000
Common stock issued for accrued interest	216,943	0
Conversion of preferred shares into common shares	$ 6,236	$ 8,200

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CONSOLIDATED BALANCE SHEETS [PARENTHETICAL] (USD $)	Jun. 30, 2012	Dec. 31, 2011
Discount on subordinated secured convertible note, current	$ 0	$ 1,799
Preferred Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred Stock, shares authorized	10,000,000	10,000,000
Common Stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common Stock, shares authorized	294,117,647	294,117,647
Common Stock, shares issued	49,031,708	23,403,670
Common Stock, shares outstanding	49,031,708	23,403,670
Series B Preferred Stock [Member]
Preferred Stock, aggregate liquidation preference	370	1,295
Preferred Stock, shares issued	185,000	647,500
Preferred Stock, shares outstanding	185,000	647,500
Series C Preferred Stock [Member]
Preferred Stock, aggregate liquidation preference	$ 8,500	$ 8,500
Preferred Stock, shares issued	4,250,000	4,250,000
Preferred Stock, shares outstanding	4,250,000	4,250,000

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2012

Subsequent Events [Abstract]

Subsequent Events [Text Block]

10. SUBSEQUENT EVENTS

Subsequent to June 30, 2012 and prior to the filing of this report, the following items occurred:

Promissory Notes

· On July 16, 2012, the Company and Platinum Long Term Growth IV entered into a forbearance agreement which altered the due date of the 8% Senior Secured Promissory Note from July 1, 2012 to September 30, 2012 This forbearance agreement also alters the conversion prices for the convertible notes held by Platinum Long Term Growth IV to the lowest of (a) 75% of the lowest average VWAP (as defined in such notes) for the one business day, five business day or ten business day period immediately preceding the date of the conversion request, such period to be selected by the lender or (b) $0.01 per share. Additionally, this forbearance agreement alters the conversion rate of the 4,250,000 shares of preferred stock held by platinum from a post-split adjusted rate of 9.41 shares of common stock per share of preferred to 160 shares of common stock per share of preferred.

· On July 19, 2012, the Company borrowed $7,000 from Platinum Long Term Growth IV, LLC pursuant to the terms of a Senior Secured Promissory Note.  The note bears interest at the rate of 8% per annum and is due and payable on September 30, 2012.

· On July 19, 2012, the Company borrowed $24,000 from Longview Special Finance pursuant to the terms of a Senior Secured Promissory Note.  The note bears interest at the rate of 8% per annum and is due and payable on September 30, 2012.

· On July 25, 2012, the Company and Platinum Advisors entered into a forbearance agreement which altered the due date of the Senior Secured Promissory Note from July 1, 2012 to September 30, 2012. This forbearance agreement also alters the conversion prices for the convertible notes held by Platinum Adviors to the lowest of (a) 75% of the lowest average VWAP (as defined in such notes) for the one business day, five business day or ten business day period immediately preceding the date of the conversion request, such period to be selected by the lender or (b) $0.01 per share.

· On July 26, 2012, the Company issued 2,000,000 shares of common stock to Alpha Capital who elected to convert 12,500 shares of Series B preferred shares owned by Longview at a conversion rate of 160 common shares per each Series B share.

· On July 26, 2012, the Company issued 3,601,831 shares of common stock to Platinum Long Term Growth IV, LLC who elected to convert 22,511 shares of Series C preferred shares at the conversion rate of 160 common shares per each Series C share.

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DOCUMENT AND ENTITY INFORMATION	6 Months Ended
	Jun. 30, 2012	Aug. 17, 2012
Entity Registrant Name	NaturalNano, Inc.
Entity Central Index Key	0000863895
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	nnan
Entity Common Stock, Shares Outstanding		54,633,539
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2012
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2012

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PRINCIPAL BUSINESS ACTIVITY AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Jun. 30, 2012

Principal Business Activity and Significant Accounting Policies [Abstract]

Interim Financial Statements [Policy Text Block]

Interim Financial Statements

The consolidated financial statements as of June 30, 2012 and for the three and six months ended June 30, 2012 and 2011 are unaudited. However, in the opinion of management of the Company, these financial statements reflect all adjustments, consisting solely of normal recurring adjustments, necessary to present fairly the financial position and results of operations for such interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results to be obtained for a full year. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 8-03 of Regulation S-X for smaller reporting companies.  Accordingly, these financial statements do not include all of the information required by U.S. generally accepted accounting principles for complete financial statements.  These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011. Certain prior period amounts have been adjusted to reflect the Company’s 1-for-17 reverse stock split (see Note 9 Reverse Stock Split, for further details).

Use of Estimates, Policy [Policy Text Block]

Estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate such estimates. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments

Financial instruments include cash and cash equivalents, accounts payable and accrued expenses, notes payable, capital leases and derivative liabilities. Fair values for all instruments except for derivative liabilities were assumed to approximate carrying values for these financial instruments since they are short-term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand. The fair value of the Company’s convertible notes payable is estimated based upon the quoted market prices for the same or similar issues or on the current rates offered to the Company for debt of the same remaining maturities. The carrying value approximates the fair value of these debt instruments as of June 30, 2012 and December 31, 2011 based on rates charges being consistent with current market rates available to the Company.

Consolidation, Policy [Policy Text Block]

Basis of Consolidation

The consolidated financial statements include the accounts of NaturalNano, Inc. (“NaturalNano” or the “Company”), a Nevada corporation, and its wholly owned subsidiary NaturalNano Research, Inc. (“NN Research”) a Delaware corporation. As of April 20, 2010 the consolidated financial statements reflect the acquisition of a 51% controlling interest in Combotexs, LLC, (“Combotexs”), a privately held New York limited liability company, pursuant to the terms of the Equity Purchase Agreement executed with Worldwide Medical Solutions LLC (“WMS”) (Refer to Note 3). All significant inter-company accounts and transactions have been eliminated in consolidation.

Business Description [Policy Text Block]

Description of the Business

NaturalNano (the “Company”), located in Pittsford, New York, is engaged in the development and commercialization of material science technologies with an emphasis on additives to polymers and other industrial and consumer products by taking advantage of technology advances developed in-house. The Company’s current activities are directed toward research, development, production and marketing of its proprietary technologies relating to the treatment and separation of nanotubes from halloysite clay and the development of related commercial applications for:

• cosmetics, health and beauty products

• polymers, plastics and composites

Combotexs was a technology company organized on October 28, 2009 that marketed Error Prevention/Safety Checklist Boards and Safety Training to hospitals and other industries such as healthcare, petrochemical and mining.  Combotexs also had certain marketing and distribution agreements for various household products.  The Company acknowledges the acquisition of Combotexs as a short term source for revenue, cash flow and a method of incorporating nanotubes found in halloysite clay into Combotexs products.

During the fourth quarter of 2011, the Company determined that the relationship with Combotexs was not operating in the manner it was intended. The sales were not to the volume expected and the continued operations, as structured, were not sustainable. During the month of December, the board of directors authorized the Company CEO to wind down the operations of Combotexs resulting in a write down of assets and the inventory revalued and assumed by NaturalNano. No further activity will occur with Combotexs beyond December 31, 2011 and the entity is expected to be legally dissolved in 2012.

During the fourth quarter of 2011, the Company entered into a supply agreement with another company, which is 50% owned by NaturalNano’s CEO, to manufacture and sell Error Prevention/Safety Checklist Boards which the related party will then market to the end user. NaturalNano will continue to outsource the manufacture of the boards to a third-party and then re-sell them to the new company. Accordingly, the Company will still have continuing cash flows from the business in 2012 and beyond.

NaturalNano is domiciled in the state of Nevada as a result of the merger with Cementitious Materials, Inc., (“CMI”), which was completed on November 29, 2005.

Liquidity Disclosure [Policy Text Block]

Liquidity and Going Concern

Going Concern – The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statements, the Company incurred a net loss for the six months ended June 30, 2012 of $705,659 and had negative working capital of $5,651,449 and a stockholders’ deficiency of $5,672,051 at June 30, 2012. Since inception the Company’s growth has been funded through a combination of convertible debt from private investors and from cash advances from its former parent and majority shareholder Technology Innovations, LLC. These factors, among others, may indicate that the Company will be unable to continue as a going concern for a reasonable period of time. The Company's continuation as a going concern is dependent upon its ability to generate sufficient cash flow to meet its obligations, to obtain additional financing, renegotiate the terms of existing financing obligations and ultimately to attain successful operations. The ability to successfully achieve those items is uncertain.

As of June 30, 2012, the Company continued to require waivers for debt covenant violations and extensions of maturity dates. Refer to Note 2 for lenders waivers and maturity extensions received from the lenders.

Qetc Rebate [Policy Text Block]

QETC rebate for fiscal year ended December 31, 2009

The QETC tax rebate for 2009 had been in audit since its filing in September of 2010. The Company received notice in March 2011 that the audit was complete and that the rebate for 2009 would be for $60,073. NaturalNano received the first payment of $43,615 in March of 2011 and that amount was reflected in the financial statements for the first quarter of 2011. The Company received the final payment of $16,458 on April 14, 2011 and that amount is reflected in the financial for the second quarter of 2011. These amounts are presented as a reduction of general and administrative expenses.

Prior Period Reclassification Adjustment, Description

Reclassifications

Certain prior year amounts have been reclassified to conform to the current year presentation.

Earnings Per Share, Policy [Policy Text Block]

Loss Per Share

Basic loss per common share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted loss per common share gives effect to dilutive convertible preferred stock, convertible debt, options and warrants outstanding during the period. Shares to be issued upon the exercise of these instruments have not been included in the computation of diluted loss per share as their effect is anti-dilutive based on the net loss incurred. See Note 9 regarding the reverse split of the Company’s common stock which occurred on June 14, 2012.

As of June 30, 2012, there are 107,820,194 shares underlying preferred stock, convertible debt, outstanding options and warrants that could potentially dilute future earnings. These potentially dilutive shares have been limited by certain debt and equity agreements with Platinum, Platinum Advisors, Longview and Technology Innovations LLC (“TI”). These agreements provide limitations on the conversion of the dilutive instruments such that the number of shares of Common Stock that may be acquired by the holder upon conversion of such instruments shall be limited to ensure that following such conversion the total number of shares of Common Stock then beneficially owned by the holder does not exceed 4.99% of the total number of issued and outstanding shares of Common Stock.

As a result of the forbearance agreements signed subsequent to June 30, 2012, the potentially issuable shares based on the Company’s stock price as of June 30, 2012, has increased to, 1,227,738,642. As a result of this change, there is not an adequate number common shares of stock authorized.

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2012	Jun. 30, 2011	Jun. 30, 2012	Jun. 30, 2011
Income:
Revenue	$ 26,900	$ 127,527	$ 70,423	$ 203,815
Cost of goods sold	6,237	35,996	13,986	57,953
Gross profit	20,663	91,531	56,437	145,862
Operating expenses:
Research and development	29,322	38,903	68,707	83,184
General and administrative	79,613	96,357	174,888	191,697
Operating Expenses, Total	108,935	135,260	243,595	274,881
Loss from Operations	(88,272)	(43,729)	(187,158)	(129,019)
Other income (expense):
Interest expense, net	(110,153)	(92,175)	(208,501)	(184,686)
Net gain (loss) on derivative liability	0	29,662	0	(38,252)
Net gain (loss) on forgiveness/modification of debt	(235,000)	38,950	(310,000)	8,950
Gain on insurance settlement	0	31,589	0	31,589
Nonoperating Income (Expense), Total	(345,153)	8,026	(518,501)	(182,399)
Consolidated net loss	(433,425)	(35,703)	(705,659)	(311,418)
Less: Consolidated net income attributable to noncontrolling interest in subsidiary	0	(5,725)	0	(9,111)
Consolidated net loss attributable to the controlling interest	(433,425)	(41,428)	(705,659)	(320,529)
Less: Preferred stock conversion inducement	(12,235)	0	(12,235)	0
Consolidated net loss attributable to common stockholders	$ (445,660)	$ (41,428)	$ (717,894)	$ (320,529)
Loss per common share - basic and diluted (in dollars per share)	$ (0.01)	$ 0	$ (0.02)	$ (0.02)
Weighted average shares outstanding (in shares)	40,969,987	15,057,705	35,357,306	13,986,839

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DERIVATIVE LIABILITY

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

5.  DERIVATIVE LIABILITY

The Company’s derivative liabilities as of June 30, 2012 and December 31, 2011 are as follows:

· The debt conversion feature embedded in the Senior Secured Convertible Notes entered into in March 2007, August 2008, September 2008 and October 2008 which contains anti-dilution provisions that would be triggered if the Company issued instruments with rights to the Company’s common stock at prices below this exercise price.

· The debt conversion feature and the 2,647,059 warrants exercisable at $0.0425 per share (split adjusted) granted in connection with the 10% Subordinated Secured Convertible Note entered into in November 2009.  These agreements contain anti-dilution provisions that would be triggered if the Company issued instruments with rights to the Company’s common stock at prices below the exercise price.

· The 882,353 warrant shares granted to the CEO of the Company at a split adjusted exercise price of $0.17 per share on January 2011 which vest over three years.

The fair value of the derivatives is as follows:  

Derivative Liability	June 30, 2012		December 31, 2011
8% Notes conversion feature		20,531		20,531
10% Notes conversion feature and warrants		1,127		1,127
CEO Warrants		-		-
Total	$	21,658	$	21,658

 Fair Value Valuation Hierarchy Measurement

ASC 820 establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows:

· Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

· Level 2 inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument.

· Level 3 inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value.

A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The derivative liabilities are measured at fair value using certain estimated factors such as volatility and probability and are classified within Level 3 of the valuation hierarchy. The following table provides a roll forward of the liabilities carried at fair value measured using significant unobservable inputs (level 3). Management has determined that the value has not changed materially during the six months ended June 30, 2012.

	For the six months ended
	June 30,
	2012		2011
Fair value – beginning	$	21,658	$	76,667
Loss (gain) recognized in Q1		-		67,914
Loss (gain) recognized in Q2		-		(29,662	)
Fair value – ending	$	21,658	$	114,919

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SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

4. SEGMENT INFORMATION

The Company's reportable segments are strategic business units that offer different products and services. The Company’s reportable segments are organized, managed and internally reported separately because each business requires different technology and marketing strategies. The Company currently has two operating segments, Nanotechnology and Medical Boards.  A summary of the two segments is as follows:

Nanotechnology	Research, development, production and marketing of its proprietary technologies relating to the treatment and separation of nanotubes from halloysite clay and the development of related commercial applications for cosmetics, health and beauty products and polymers, plastics and composites.
Medical Boards	Production of Error Prevention/Safety Checklist Boards for sale to a related party.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies of the Company.  The Company accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current market prices. The Company relies on intersegment cooperation and management does not represent that these segments, if operated independently, would report the results contained herein.  For purposes of determining segment loss, corporate overhead is primarily included in NaturalNano, other than direct expense of Combotexs.  Approximate information concerning the Company’s operations by reportable segment as of and for the three and six months ended June 30, 2011 and June 30, 2012 is as follows:

	Nanotechnology						Medical Boards				Consolidated
	For the three months ended						For the three months ended				For the three months ended
	June 30,						June 30,				June 30,
	2012			2011			2012		2011		2012			2011
Segment profit (loss) from operations	$	(92,712	)	$	(61,938	)	$	4,441	$	18,209	$	(88,271	)	$	(43,729	)
Revenues from external customers	$	17,275		$	68,301		$	9,625	$	59,226	$	26,900		$	127,527
Revenues from intersegment sales	$	-		$	6,540		$	-	$	-	$	-		$	6,540
Interest expense and amortization of debt discount	$	110,153		$	92,175		$	-	$	-	$	110,153		$	92,175
Depreciation and amortization	$	13,033		$	24,654		$	-	$	240	$	13,033		$	24,894
Significant non-cash items:
Equity based payments	$	-		$	13,600		$	-	$	-	$	-		$	13,600
Loss on modification of debt	$	235,000		$	-		$	-	$	-	$	235,000		$	-

	Nanotechnology						Medical Boards				Consolidated
	For the six months ended						For the six months ended				For the six months ended
	June 30,						June 30,				June 30,
	2012			2011			2012		2011		2012			2011
Segment profit (loss) from operations	$	(198,178	)	$	(170,302	)	$	11,020	$	41,283	$	(187,158	)	$	(129,019	)
Revenues from external customers	$	48,548		$	69,460		$	21,875	$	134,355	$	70,423		$	203,815
Revenues from intersegment sales	$	-		$	12,180		$	-	$	-	$	-		$	12,180
Interest expense and amortization of debt discount	$	208,501		$	184,686		$	-	$	-	$	208,501		$	184,686
Depreciation and amortization	$	34,053		$	52,553		$	-	$	480	$	34,053		$	53,033
Significant non-cash items:
Equity based payments	$	10,800		$	37,163		$	-	$	-	$	10,800		$	37,163
Loss on modification of debt	$	310,000		$	-		$	-	$	-	$	310,000		$	-

Geographic Areas - The Company had no revenue and no long-lived assets in any country other than the United States for any period presented.

Major Customers - During the three months and six months ended June 30, 2012, the Company derived 57% and 62%, respectively of its revenue from one customer, which is included in the Nanotechnology operating segment.

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DEBT AGREEMENTS (Details Textual) (USD $)	1 Months Ended			3 Months Ended				6 Months Ended			3 Months Ended	6 Months Ended		3 Months Ended	6 Months Ended		1 Months Ended	0 Months Ended		1 Months Ended	0 Months Ended		3 Months Ended		6 Months Ended	1 Months Ended				6 Months Ended			3 Months Ended	6 Months Ended		3 Months Ended						6 Months Ended
	Dec. 17, 2007	Sep. 30, 2012	Dec. 31, 2007	Jun. 30, 2012	Mar. 31, 2012	Sep. 30, 2011	Mar. 31, 2011	Jun. 30, 2012	Apr. 16, 2012	Dec. 31, 2011	Jun. 30, 2012 Platinum Partners Long Term Growth I V and Platinum Advisors [Member]	Jun. 30, 2012 Platinum Partners Long Term Growth I V and Platinum Advisors [Member]	Apr. 16, 2012 Platinum Partners Long Term Growth I V and Platinum Advisors [Member]	Jun. 30, 2012 Longview Special Financing Inc [Member]	Jun. 30, 2012 Longview Special Financing Inc [Member]	Jul. 16, 2012 Platinum Partners Long Term Growth I V [Member]	Jun. 18, 2012 Alpha Capital Partners [Member]	May 08, 2012 Alpha Capital Partners [Member]	Mar. 16, 2012 Alpha Capital Partners [Member]	Mar. 22, 2012 Alpha Capital Partners [Member]	Feb. 15, 2012 Alpha Capital Partners [Member]	Jul. 16, 2012 Senior Secured Promissory Note [Member]	Jun. 30, 2012 Senior Secured Promissory Note [Member] Longview Special Financing Inc [Member]	Mar. 31, 2012 Senior Secured Promissory Note [Member] Longview Special Financing Inc [Member]	Jun. 30, 2012 Senior Secured Promissory Note [Member] Longview Special Financing Inc [Member]	May 11, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Apr. 16, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Mar. 05, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Feb. 10, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Jun. 30, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Jul. 19, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Jul. 16, 2012 Senior Secured Promissory Note [Member] Platinum Partners Long Term Growth I V [Member]	Jun. 30, 2012 Senior Secured Convertible Notes [Member] Platinum Partners Long Term Growth I V [Member]	Jun. 30, 2012 Senior Secured Convertible Notes [Member] Platinum Partners Long Term Growth I V [Member]	Jun. 30, 2012 Senior Secured Convertible Notes and Promissory Notes [Member]	Jun. 30, 2012 10% Subordinated Secured Convertible Promissory Agreement [Member]	Mar. 31, 2012 10% Subordinated Secured Convertible Promissory Agreement [Member]	Sep. 30, 2011 10% Subordinated Secured Convertible Promissory Agreement [Member]	Jun. 30, 2011 10% Subordinated Secured Convertible Promissory Agreement [Member]	Mar. 31, 2011 10% Subordinated Secured Convertible Promissory Agreement [Member]	Mar. 11, 2011 10% Subordinated Secured Convertible Promissory Agreement [Member] Cape One Financial L P [Member]	Jun. 30, 2012 10% Convertible Notes [Member] Cape One Financial L P [Member]
Long-term Debt, Gross				$ 25,393				$ 25,393																							$ 7,000		$ 939,585	$ 939,585	$ 3,580,972						$ 225,000	$ 30,000
Debt Instrument Maturity Date Range Start 1								Mar. 06, 2009
Debt Instrument Extended Maturity Date		Jun. 15, 2012						Sep. 30, 2012																	Sep. 30, 2012													Nov. 22, 2011	Oct. 01, 2011	Jun. 30, 2011
Debt Intrument Default Interest Rate Waived Off								16.00%				16.00%			16.00%
Debt Instrument Additions To Carrying Amount				30,000				30,000	25,000				125,000	30,000	30,000								50,000		50,000	20,000	15,000	12,000	25,000							30,000	25,000	30,000		30,000
Gains Losses On Modification Of Debt				30,000	50,000	30,000	25,000				125,000			30,000									50,000	50,000												30,000	25,000	30,000		30,000
Debt Instrument, Interest Rate, Stated Percentage																75.00%						8.00%				8.00%	8.00%	8.00%	8.00%		8.00%	8.00%									10.00%
Debt Instrument, Maturity Date																										Sep. 01, 2012	Sep. 01, 2012	Sep. 30, 2012	Sep. 30, 2012											Mar. 01, 2012
Stock Issued During Period Shares New Issues For Interest Expense Debt																																	3,967,626	1,729,412								352,941
Stock Issued During Period, Shares, Reverse Stock Splits				5,000,000,000				11,053,941																										11,053,941
Debt Instrument, Convertible, Interest Expense																																	25,393	147,000								44,550
Debt Instrument, Convertible, Conversion Price				$ 0.0064				$ 0.0064			$ 0.0064	$ 0.0064																		$ 9.41			$ 0.0064	$ 0.0064								$ 0.085
Shares issued on debt conversion (in shares)																	2,000,000	1,882,353	588,235	1,176,471	588,235									160												524,118
Debt Instrument ForBearance Interest Rate Percentage																																								18.00%
Liquidation Damages Calculation Terms								This agreement allows for liquidated damages based on a daily amount of 0.0333% of the principal amount of the notes relating to the common stock issuable upon conversion of the Notes included in the Registration Statement.
Liquidated Damages Amount	146,028
Liquidated Damages Cash Paid			63,539
Accrued Liquidated Damages			82,489	82,489				82,489		82,489
Interest Expense, Debt				$ 24,221																													$ 24,221
Excess Of Debt Instrument Conversion Rate				$ 0.085				$ 0.085																									$ 0.085	$ 0.085

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SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Approximate information concerning the Company’s operations by reportable segment as of and for the three and six months ended June 30, 2011 and June 30, 2012 is as follows:

	Nanotechnology						Medical Boards				Consolidated
	For the three months ended						For the three months ended				For the three months ended
	June 30,						June 30,				June 30,
	2012			2011			2012		2011		2012			2011
Segment profit (loss) from operations	$	(92,712	)	$	(61,938	)	$	4,441	$	18,209	$	(88,271	)	$	(43,729	)
Revenues from external customers	$	17,275		$	68,301		$	9,625	$	59,226	$	26,900		$	127,527
Revenues from intersegment sales	$	-		$	6,540		$	-	$	-	$	-		$	6,540
Interest expense and amortization of debt discount	$	110,153		$	92,175		$	-	$	-	$	110,153		$	92,175
Depreciation and amortization	$	13,033		$	24,654		$	-	$	240	$	13,033		$	24,894
Significant non-cash items:
Equity based payments	$	-		$	13,600		$	-	$	-	$	-		$	13,600
Loss on modification of debt	$	235,000		$	-		$	-	$	-	$	235,000		$	-

	Nanotechnology						Medical Boards				Consolidated
	For the six months ended						For the six months ended				For the six months ended
	June 30,						June 30,				June 30,
	2012			2011			2012		2011		2012			2011
Segment profit (loss) from operations	$	(198,178	)	$	(170,302	)	$	11,020	$	41,283	$	(187,158	)	$	(129,019	)
Revenues from external customers	$	48,548		$	69,460		$	21,875	$	134,355	$	70,423		$	203,815
Revenues from intersegment sales	$	-		$	12,180		$	-	$	-	$	-		$	12,180
Interest expense and amortization of debt discount	$	208,501		$	184,686		$	-	$	-	$	208,501		$	184,686
Depreciation and amortization	$	34,053		$	52,553		$	-	$	480	$	34,053		$	53,033
Significant non-cash items:
Equity based payments	$	10,800		$	37,163		$	-	$	-	$	10,800		$	37,163
Loss on modification of debt	$	310,000		$	-		$	-	$	-	$	310,000		$	-

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CONTINGENCIES

6 Months Ended

Jun. 30, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

8.  CONTINGENCIES

Legal Proceedings

On March 24, 2009 the Company received a demand notice from an attorney representing a group of certain former employees of the Company, including but not limited to the Company’s former President and Chief Financial Officer, demanding immediate payment of $331,265 for certain deferred compensation, severance and vacation benefits. Each of the former employees cited in the demand notice, as well as other former employees, had executed written agreements during 2008 that allowed the Company to defer certain of these compensation payments. The Company has accrued for earned and unused vacation benefits and deferred payroll costs for amounts electively deferred by these and other former employees as of December 31, 2009. The Company has retained counsel in connection with this demand and continues to evaluate this demand notice and has responded to this demand. No actions or probable settlement discussions between the parties have developed since the filing of this demand. Due to the Company’s current cash and liquidity position discussed above and the current evaluation of the items in the demand notice the timing of future payment of these outstanding amounts is uncertain. No further communication has been had regarding this notice. 

During the third quarter ending September 30, 2010, two former employees, one involved in the March 24, 2009 demand, agreed to forgive the Company’s liability to them of $54,691 related to deferred compensation in exchange for shares of common stock.

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STOCKHOLDERS EQUITY

6 Months Ended

Jun. 30, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

6.  STOCKHOLDERS EQUITY

On January 3, 2011, Mr. Jim Wemett was awarded 882,353 warrant shares, each warrant share grants the right to purchase one share of common stock, at an exercise price of $0.17 per warrant share, vesting over three years. The warrants expire January 3, 2016 and contain a cashless exercise provision. The fair value of the warrant on the date of grant was determined using the Black-Scholes model and was measured on the date of grant at $34,879. An expected volatility assumption of 150% has been used based on the volatility of the Company’s stock price utilizing a look-back basis and the risk-free interest rate of 3.36% has been derived from the U.S. treasury yield. The market price of the Company’s common stock on January 3, 2011 was $0.0476 per share. The expiration date used in the valuation model aligns with the warrant life of five years. The dividend yield was assumed to be zero. The fair value of the warrant will be recorded monthly over the 36 month life of the warrant. During the six months ended June 30, 2011 and 2012, the Company recorded $5,813 and $5,813, respectively of expense for the vested portion of the warrant.

During the first six months of 2012, until the Reverse Stock Split (see Note 9), the Company issued 1,729,412 and 11,053,941 split adjusted shares of common stock to Platinum in payment of $147,000 of interest expense obligations and $939,585 of principal obligations, respectively, on the Senior Secured Convertible Notes. In accordance with the debt agreement, these shares were issued to Platinum using a split adjusted conversion price of $0.085 per common share. Subsequent to the Reverse Stock Split, the Company issued 3,967,626 shares of common stock to Platinum in payment of $25,393 of interest expense obligations on the Senior Secured Convertible Notes. These shares were issued to Platinum using a conversion price of $0.0064 per common share. The issuance of shares in excess of the conversion rate in place at the time of $0.085 were considered an inducement to convert and resulted in an expense of $24,221 based on the market value at the time the excess shares were issued. This expense s included in interest expense for the three months ending June 30, 2012.

Prior to the Reverse Stock Split (see Note 9), on February 15, 2012, March 16, 2012, March 22, 2012 and May 8, 2012 Alpha Capital Anstalt converted 62,500, 62,500, 125,000 and 200,000 and preferred shares held by Longview Special Finance into 588,235, 588,235, 1,176,471 and 1,882,353 common shares respectively. Subsequent to the Reverse Stock split, on June 18, 2012 Alpha Capital Anstalt converted 12,500 preferred shares held by Longview Special Finance into 2,000,000 common shares. As the post-split conversion rate for the shares held by Longview Special Finance was 9.41 common shares per 1 share of preferred stock, the excess shares were recorded as an expense attributable to common stockholders in the statement of operations for the three months ended June 30, 2012 at their conversion date market value of $12,235.

During the first six months of 2012, the Company issued 877,059 shares of common stock to Cape One in payment of $44,500 of interest expense obligations and $30,000 of principal obligations on the Convertible Notes. In accordance with the debt agreement, these shares were issued to Cape One using a conversion price of $0.085 per common share.

During the first six months of 2012, the Company issued an aggregate of 1,764,706 shares of common stock to various individuals or entities in connection with professional consulting provided to the Company in an aggregate amount of $10,800.  

The Company has issued warrants to purchase shares of its common stock to certain consultants and debt holders. As of June 30, 2012, there were common stock warrants outstanding to purchase an aggregate 4,247,059 shares of common stock pursuant to various warrant grant agreements. In April of 2012, 14,162 warrants originally issued to a consultant in April of 2007 expired unexercised.

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INCENTIVE STOCK PLANS

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7.  INCENTIVE STOCK PLANS

Under the Company’s 2005 Incentive Stock Plan (the “2005 Plan”), the Amended and Restated 2007 Incentive Stock Plan (the “2007 Plan”), the 2008 Incentive Stock Plan (the “2008 Plan”), the 2009 Incentive Stock Plan (the “2009 Plan”), the 2011 Stock Incentive Plan (the “2011 Plan”), and the 2012 Stock Incentive Plan (the “2012 Plan”), officers, employees, directors and consultants may be granted options to purchase the Company’s common stock at fair market value as of the date of grant. Options become exercisable over varying vesting periods commencing from the date of grant and have terms of five to ten years. The plan also provides for the granting of performance-based and restricted stock awards.  The shares of common stock underlying the plans are reserved by the Company from its authorized, but not issued common stock. Such shares are issued by the Company upon exercise by any option holder pursuant to any grant of such shares.  

The Plans are authorized to grant awards as follows: the 2005 Plan is authorized to grant up to 823,530 share unit awards, the 2007 Plan is authorized to grant up to 1,000,000 share unit awards, the 2008 Plan is authorized to grant up to 47,058,824 unit share awards, the 2009 Plan is authorized to grant up to 1,176,471 unit share awards, the 2011 Plan is authorized to grant up to 1,470,589 unit share awards and the 2012 Plan is authorized to grant up to 1,764,706 unit share awards.

A summary of the option activity for the six months ended June 30, 2012 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Life-years
Outstanding at January 1, 2012		741,373	$	3.52		4.00
Granted/Exercises/Cancelled/Forfeited		0
Options outstanding at June 30, 2012		741,373	$	3.52		3.50
Options exercisable at June 30, 2012		741,373	$	3.52		3.50

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REVERSE STOCK SPLIT

6 Months Ended

Jun. 30, 2012

Reverse Stock Split [Abstract]

Reverse Stock Split [Text Block]

9. REVERSE STOCK SPLIT

On June 14, 2012, the Company filed a Certificate of Amendment to its Restated Certificate of Incorporation, as amended, with the Secretary of State of the State of Nevada, to effect a 1-for-17 reverse stock split of its common stock, or the Reverse Stock Split. This action had previously been approved by the Company’s Board of Directors on March 23, 2012. As a result of the Reverse Stock Split, every seventeen shares of the Company’s pre-reverse split common stock were combined and reclassified into one share of its common stock. No fractional shares were issued in connections with the Reverse Stock Split. Stockholders who would have been entitled to receive a fractional share in connection with the Reverse Stock Split received one whole share. The par value and other terms of the common stock were not affected by the Reverse Stock Split.

The Company’s authorized shares immediately prior to the Reverse Stock Split totaled 5,000,000,000. These were adjusted to 294,117,647. The Company’s shares outstanding immediately prior to the Reverse Stock Split totaled 732,073,557. These were adjusted to 43,063,150 shares outstanding as a result of the Reverse Stock Split. The Company’s common stock began trading at its post-Reverse Stock Split price at the beginning of trading on June 14, 2012. Share, per share, and stock option amounts for all periods presented within this quarterly report on Form 10-Q and the December 31, 2011 Balance Sheet amounts for common stock and additional paid-in-capital have been retroactively adjusted to reflect the Reverse Stock Split.

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REVERSE STOCK SPLIT (Details Textual)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012	Dec. 31, 2011
Stock Issued During Period, Shares, Reverse Stock Splits	5,000,000,000	11,053,941
Common Stock, shares authorized	294,117,647	294,117,647	294,117,647
Common Stock, shares outstanding	49,031,708	49,031,708	23,403,670
Numerator [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio		1
Denominator [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio		17
Prior To Reverse Stock Split [Member]
Common Stock, shares outstanding	732,073,557	732,073,557
After Reverse Stock Split [Member]
Common Stock, shares outstanding	43,063,150	43,063,150

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INCENTIVE STOCK PLANS (Tables)

6 Months Ended

Jun. 30, 2012

Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of the option activity for the six months ended June 30, 2012 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Life-years
Outstanding at January 1, 2012		741,373	$	3.52		4.00
Granted/Exercises/Cancelled/Forfeited		0
Options outstanding at June 30, 2012		741,373	$	3.52		3.50
Options exercisable at June 30, 2012		741,373	$	3.52		3.50

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SEGMENT INFORMATION (Details Textual)	3 Months Ended	6 Months Ended
	Jun. 30, 2012	Jun. 30, 2012
Percentage Of Revenue From Customers	57.00%	62.00%

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CONSOLIDATED STATEMENT OF STOCKHOLDERSEQUITY (DEFICIENCY) (USD $)	Common Stock [Member]	Preferred Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest [Member]	Total
Balance at Dec. 31, 2011	$ 23,403	$ 4,898	$ 19,977,330	$ (26,213,649)	$ 14,264	$ (6,193,754)
Balance (in shares) at Dec. 31, 2011	23,403,671	4,897,500
Grant of common stock for services @: $0.005 to $.007 per share	1,765		9,035			10,800
Grant of common stock for services @ $0.001 to $.003 per share (in shares)	1,764,706
Issuance of common stock as interest payment	6,221		234,943			241,164
Issuance of common stock as interest payment (in shares)	6,221,156
Warrant issued for services			5,813			5,813
Shares issued on debt conversion	11,407		958,178			969,585
Shares issued on debt conversion (in shares)	11,406,881
Series B preferred shares converted to common shares	6,235	(463)	(5,773)			0
Series B preferred shares converted to common shares (in shares)	6,235,294	(462,500)
Net income (loss) for the six months ended 06/30/12				(705,659)		(705,659)
Balance at Jun. 30, 2012	$ 49,032	$ 4,435	$ 21,179,526	$ (26,919,308)	$ 14,264	$ (5,672,051)
Balance (in shares) at Jun. 30, 2012	4,435,000	4,435,000

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51% ACQUISITION of COMBOTEXS, LLC

6 Months Ended

Jun. 30, 2012

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

3.  51% ACQUISITION of COMBOTEXS, LLC

On April 20, 2010 the Company acquired a 51% interest in Combotexs, LLC, (“Combotexs”), a privately held   New York   limited liability company, pursuant to the terms of an Equity Purchase Agreement executed with Worldwide Medical Solutions LLC (“WMS”) the sole member of Combotexs. Combotexs is a technology company that has had minimal revenue since its inception in October 2009 and markets Error Prevention/Safety Checklist Boards and Safety Training to hospitals and other industries such as healthcare, petrochemical and mining. The Company acknowledges the acquisition of Combotexs as a short term source for revenue, cash flow and a method of incorporating nanotubes found in halloysite clay into Combotexs products.

As a result of the changes in the relationship with Combotexs, the carrying values of the related assets as of December 31, 2011 were evaluated. Certain inventory was sold to the related party, certain demonstration inventory was written off resulting in a $36,875 charge to cost of goods sold, and future cash flows were determined to be inestimable and as a result, the Goodwill was impaired to $0 value resulting in an impairment loss of $80,332 during the year ended December 31, 2011.

During the fourth quarter of 2011, the Company entered into a supply agreement with another company, which is 50% owned by NaturalNano’s CEO, to manufacture and sell Error Prevention/Safety Checklist Boards which the related party will then market to the end user. NaturalNano will continue to outsource the manufacture of the boards to a third-party and then re-sell them to the new company. Accordingly, the Company will still have continuing cash flows from the business in 2012 and beyond..

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DERIVATIVE LIABILITY (Details) (USD $)	Jun. 30, 2012	Dec. 31, 2011	Jun. 30, 2011	Dec. 31, 2010
Derivative Liability, Fair Value, Net	$ 21,658	$ 21,658	$ 114,919	$ 76,667
8% Notes conversion feature [Member]
Derivative Liability, Fair Value, Net	20,531	20,531
10% Notes conversion feature and warrants [Member]
Derivative Liability, Fair Value, Net	1,127	1,127
CEO Warrants [Member]
Derivative Liability, Fair Value, Net	$ 0	$ 0

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DERIVATIVE LIABILITY (Tables)

6 Months Ended

Jun. 30, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Liabilities at Fair Value [Table Text Block]

The fair value of the derivatives is as follows:  

Derivative Liability	June 30, 2012		December 31, 2011
8% Notes conversion feature		20,531		20,531
10% Notes conversion feature and warrants		1,127		1,127
CEO Warrants		-		-
Total	$	21,658	$	21,658

Schedule Of Liabilities Carried At Fair Value Measured Using Significant Unobservable Inputs Table Text Block

The following table provides a roll forward of the liabilities carried at fair value measured using significant unobservable inputs (level 3). Management has determined that the value has not changed materially during the six months ended June 30, 2012.

	For the six months ended
	June 30,
	2012		2011
Fair value – beginning	$	21,658	$	76,667
Loss (gain) recognized in Q1		-		67,914
Loss (gain) recognized in Q2		-		(29,662	)
Fair value – ending	$	21,658	$	114,919