Accounting Policies, by Policy (Policies)

12 Months Ended

Dec. 31, 2013

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The consolidated financial statements include the accounts of PLC and its two wholly owned subsidiaries, PLC Medical Systems, Inc. and PLC Systemas Medicos Internacionais (Deutschland) GmbH. All intercompany accounts and transactions have been eliminated.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in accordance with generally accepted accounting principles requires the Company to make 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. Significant estimates include revenue recognition, warranty, inventory valuation, accounts receivable, and convertible notes and warrant liabilities. Actual results could differ from those estimates.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash at December 31, 2013 and 2012, respectively, consisted of deposits held in bank checking accounts.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentration of credit risk include cash, cash equivalents and accounts receivable. At times, the Company possesses cash balances above federally-insured limits. The Company believes it minimizes its exposure to potential concentrations of credit risk by placing its cash equivalents in high-quality financial institutions. At December 31, 2013 and 2012, the majority of the cash and cash equivalents balance was invested with a single financial institution.

Artech, the Company’s distributor in Italy, accounted for 68% and 35% of the Company’s revenues for the years ended December 31, 2013 and 2012, respectively. ACIST, the Company’s distributor in France and Germany, accounted for 11% and 9% of the Company’s revenues for the year ended December 31, 2013 and 2012, respectively. Discomed, the Company’s distributor in Brazil, accounted for 8% and 29% of the Company’s revenues for the years ended December 31, 2013 and 2012, respectively. At December 31, 2013, Artech, Discomed and ACIST accounted for 83%, 0% and 3%, respectively of gross accounts receivable.

Concentration Risk Revenues [Policy Text Block]

Concentration of Revenues

All of the Company’s revenues for the years ended December 31, 2013 and 2012, respectively, were derived from the sales of RenalGuard.

Net sales to unaffiliated customers (by origin) are summarized below (in thousands):

	South America		North America		Europe		Other		Total
2013
Net sales	$	96	$	31	$	1,040	$	107	$	1,274
2012
Net sales	$	312	$	35	$	588	$	145	$	1,080

Trade and Other Accounts Receivable, Policy [Policy Text Block]

Accounts Receivable

Accounts receivable is stated at the amount the Company expects to collect from the outstanding balances. The Company continuously monitors collections from customers and maintains a provision for estimated credit losses based upon historical experience and any specific customer collection issues that the Company has identified. Historically, the Company has not experienced significant losses related to its accounts receivable. Collateral is generally not required. If the financial condition of its customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances could be required.

Inventory, Policy [Policy Text Block]

Inventories

Inventories are stated at average cost (computed on a first-in, first-out method) and include allocations of labor and overhead. The Company regularly reviews slow-moving and excess inventories, and writes down inventories to net realizable value if the ultimate expected proceeds from the disposals of excess inventory are less than the carrying cost of the inventory.

Property, Plant and Equipment, Policy [Policy Text Block]

Equipment, Furniture, Leasehold Improvements and Long-Lived Assets

Equipment, furniture and leasehold improvements are stated on the basis of cost. Depreciation is computed principally on the straight-line method for financial reporting purposes.

Depreciation and amortization are based on the following useful lives:

Equipment (in years)	2	-	5
Office furniture and fixtures (in years)		5
Leasehold improvements	Shorter of life of lease or useful life

The carrying amount of long-lived assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. When required, recoverability of these assets is measured by comparing the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. During the years ended December 31, 2013 and 2012, the Company did not recognize any asset impairment charges.

Standard Product Warranty, Policy [Policy Text Block]

Warranty and Preventative Maintenance Costs

The Company evaluates the estimated future unrecoverable costs of warranty and preventative maintenance services for its installed base products on a quarterly basis and adjusts its warranty reserve accordingly. The Company considers all available evidence, including historical experience and information obtained from supplier audits. There was no reserve for warranty and preventative maintenance costs recorded at December 31, 2013 and 2012.

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

Valuation of Convertible Notes and Warrant Liabilities

The valuation of our convertible notes and our warrant liabilities as derivative instruments utilizes certain estimates and judgments that affect the fair value of the instruments. Fair values are estimated by utilizing valuation models that consider current and expected stock prices, volatility, dividends, forward yield curves and discount rates. Such amounts and the recognition of such amounts are subject to significant estimates that may change in the future.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The Company recognizes revenue when the following basic revenue recognition criteria have been met:
(1) persuasive evidence of an arrangement exists; (2) delivery has occurred or services rendered; (3) the price to the buyer is fixed or determinable; and (4) collectability is reasonably assured. Determination of criteria (3) and (4) are based on management’s judgments regarding the fixed nature of the price to the buyer charged for products delivered or services rendered and collectability of the sales price. The Company assesses credit worthiness of customers based upon prior history with the customer and assessment of financial condition. The Company’s shipping terms are customarily Free On Board (“FOB”) shipping point.

The Company typically records all product revenue at the time of shipment if all other revenue recognition criteria are met. As of December 31, 2012, the Company had a deferred revenue balance of $317,000, related to shipments to its distributor in Italy, Artech, because not all revenue recognition criteria were met. During the years ended December 31, 2013 and 2012, the Company recognized $317,000, and $381,000, respectively, in revenue of previously deferred revenue upon the receipt of cash. The Company had deferred cost of goods sold of $85,000 as of December 31, 2012, which was classified as prepaid expenses and other current assets on the Consolidated Balance Sheets due to Artech revenue recognition criteria not being met. This amount was recorded as cost of revenues for the year ended December 31, 2013.

Foreign Currency Transactions and Translations Policy [Policy Text Block]

Foreign Currency Translation

Assets and liabilities of the Company’s foreign subsidiary are translated into U.S. dollars at end-of-period exchange rates, while income and expense items are translated at average rates of exchange prevailing during the year. Exchange gains and losses arising from translation are accumulated as a separate component of stockholders’ equity. The Company records the impact from foreign currency transactions as a component of other income (expense).

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company uses an asset and liability based approach in accounting for income taxes. Deferred income tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement and tax basis of existing assets and liabilities using enacted rates applicable to the periods in which the differences are expected to affect taxable income. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount estimated by us to be realizable.

Research and Development Expense, Policy [Policy Text Block]

Research and Development

Research and development costs are expensed as incurred.

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

The Company measures and reports fair value in accordance with Accounting Standards Codifications (“ASC”) 820 – Fair Value Measurements and Disclosures (ASC 820). ASC 820 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

Fair value is 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. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

Level 1

Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities;

Level 2

Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3

Unobservable inputs for the asset or liability that are supported by little or no market activity and that are significant to the fair values.

Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

The Company’s assets and liabilities measure at fair value on a recurring basis include convertible notes, warrants and certain options to purchase common stock. See Note 10 for related fair value disclosures.

Earnings Per Share, Policy [Policy Text Block]

Earnings Per Share

Basic earnings per share is calculated using the Company’s weighted-average outstanding common shares. Diluted earnings per share is calculated using: the weighted-average outstanding common shares; the dilutive effect of applying the “if converted method” to convertible notes and investor warrants with cashless exercise provisions; and the dilutive effect of applying the treasury stock method to stock options and warrants. In applying the if-converted method to convertible notes and investor warrants with cashless exercise provision, the Company has adjusted net income (loss) to exclude the impact of fair value changes and interest expense associated with these instruments for the purpose of calculating diluted earnings per share. The following table reconciles net income (loss) and weighted average shares outstanding used in computing basic and diluted earnings per share:

	For the Year Ended December 31,
	2013		2012
Net income (loss)	$	3,499	$	(8,387	)
Change in fair value of warrants		--		--
Change in fair value of convertible notes		--		--
Interest Expense on convertible notes		--		--
Net income (loss) available to common stockholders, plus assumed conversions		3,499		(8,387	)
Basic weighted-average shares outstanding		77,061		31,139
Effect of dilutive securities:
Convertible notes		--		--
Right to shares		35,667		--
Warrants		--		--
Stock Options		--		--
Weighted-average shares-diluted		112,728		31,139
Net income per share-basic	$	0.05	$	(0.27	)
Net income per share-diluted	$	0.03	$	--

For the year ended December 31, 2012, 47,096,000 shares attributable to outstanding convertible notes, options and warrants were excluded from the calculation of diluted earnings per share as their effect would have been antidilutive. For the year ended December 31, 2013, outstanding convertible notes, options and warrants to purchase 248,336,287 shares of common stock, respectively, were excluded from the calculations of diluted earnings per share as their effect would have been anti-dilutive.

During the year ended December 31, 2013, options and warrants to purchase 40,711,000 shares of common stock, were excluded from the calculations of diluted earnings per share as their effect would have been anti-dilutive. In addition, when applying the “if converted” method to the convertible debt and warrants with cashless exercise provisions, the net impact of eliminating the fair value changes of the convertible debt and warrants would result in a net loss for the twelve months ended December 31, 2013. Accordingly, these instruments were excluded from the calculations of diluted earnings per share for the twelve months ended December 31, 2013 as their effect would have been antidilutive.