PREFERRED STOCK	12 Months Ended
Dec. 31, 2013
PREFERRED STOCK [Abstract]
PREFERRED STOCK	NOTE 9 - PREFERRED STOCK During 2012, the Company entered into an agreement with its largest stockholder, Brightline Ventures I, LLC (“Brightline Ventures I”), pursuant to which Brightline Ventures I agreed to convert $3,326,697 (exclusive of dividends) worth of Series II Preferred Stock into 3,326,697 shares of the Company’s common stock at the earlier of either the maturity date of the security or the closing of any approved transaction with Maxim Group LLC. In consideration for the foregoing conversion of Series II Preferred Stock by Brightline Ventures I on or before their respective maturity dates, the Company modified the following warrants held by Brightline Ventures I to provide them with the ability to exercise such warrants on a cashless basis: (i) warrants to purchase an aggregate of 11,582,983 shares of common stock with an exercise price of $1.50 per share, which were issued to Brightline Ventures I in transactions where Brightline Ventures I acquired shares of the Company’s Series I and II Preferred Stock; and (ii) warrants to purchase an aggregate of 2,859,375 shares of common stock with an exercise price of $1.50 per share, which equaled one half of the outstanding and unexercised warrants issued to Brightline Ventures I in other transactions where Brightline Ventures I provided financing to the Company at that time (see Note 12 for a discussion of matters related to these warrants that occurring during 2013). As a result of this modification, the Series II Convertible, Redeemable Preferred Stock was reclassified on the balance sheet as permanent Stockholders’ Equity and identified as Series II Convertible Preferred Stock at December 31, 2012. The value reclassified to permanent equity was equal to the carrying value of the shares on the date the agreement was modified. This value was $2,157,238 based on a gross value of $3,326,697 and a remaining discount of $1,169,459. Furthermore, the accrued dividends relating to the Series II Convertible Preferred Stock were also reclassified to Stockholders’ Equity as of December 31, 2012. These reclassifications were necessary based on the preferred shares no longer being subject to potential cash redemption. On March 18, 2013, Brightline Ventures I converted the Series II Convertible Preferred Stock of $3,326,697 together with $533,000 of accrued dividends thereon into 3,859,697 shares of the Company’s Common Stock. As of March 31, 2013 there was no Series II Convertible Preferred Stock outstanding. The value of the Series II Preferred Stock and dividends converted was equal to the total value recorded to common stock and additional paid in capital with no gain or loss recorded as the conversion was consistent with the original agreement. As a result of the preferred stock conversion, $2,690,239 was recorded to common stock and additional paid-in capital. Accrued dividends were $476,857 as of December 31, 2012. As of December 31, 2013, no shares of Series II Preferred Stock remained outstanding. Preferred Stock converted into Common Stock in 2012 On August 15, 2012, Brightline Ventures I converted $907,120 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 907,120 shares of the Company’s Common Stock. In conjunction with this conversion, Morris Garfinkle, a Director of the Company, also converted $34,800 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 34,800 shares of the Company’s Common Stock. On September 7, 2012, Brightline Ventures I converted $727,280 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 727,280 shares of the Company’s Common Stock. On December 7, 2012, Brightline Ventures I converted $2,559,752 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 2,559,752 shares of the Company’s Common Stock. Again on December 29, 2012, Brightline Ventures I converted $905,348 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 905,348 shares of the Company’s Common Stock. On December 11, 2012, the Company’s external Directors, Mark Hershhorn, Morris Garfinkle, Brian Israel and Edward Smith each agreed to convert $17,403 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 17,403 shares of the Company’s Common Stock prior to its maturity. The aggregate conversion by the directors was $69,612. As a result of this early conversion the Company recorded a loss of $728 for the twelve months ended December 31, 2012. On December 15, 2012, an Investor converted $290,000 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 290,000 shares of the Company’s Common Stock. On August 13, 2012, the Company entered into an agreement with Brightline Ventures I pursuant to which Brightline agreed to convert $7,721,988 (exclusive of dividends) worth of Series I and II Preferred Stock into 7,721,988 shares of the Company’s Common Stock at the earlier of either the maturity date of the security or the closing of any approved transaction with Maxim Group, LLC. In consideration for the foregoing conversion of Preferred Stock by Brightline Ventures I on or before their respective maturity dates, the Company modified the following warrants held by Brightline Ventures I to provide them with the ability to exercise such warrants on a cashless basis: (i) warrants to purchase an aggregate of 11,582,983 shares of Common Stock with an exercise price of $1.50 per share, which were issued to Brightline Ventures I in transactions where Brightline Ventures I acquired shares of the Company’s Series I and II Preferred Stock; and (ii) warrants to purchase an aggregate of 2,859,375 shares of Common Stock with an exercise price of $1.50 per share, which equals one half of the outstanding and unexercised warrants issued to Brightline Ventures I in other transactions where Brightline Ventures I provided financing to the Company. Prior to December 31, 2012, all Series I Preferred shares held by Brightline Ventures I were converted to common shares consistent with the amendment. The remaining Series II Preferred shares held of 665,339 shares and $3,326,697 was reclassified to permanent equity based on the removal of the redemption feature associated with the preferred stock. The value reclassified was equal to the carrying value of the shares on the date the agreement was modified. This value was $2,157,238 based on a gross value of $3,326,697 and a remaining discount of $1,169,459. Furthermore, the accrued dividends relating to the Series II Convertible Preferred Stock have also been reclassified to Stockholders’ Equity. These reclassifications were necessary based on the preferred shares no longer being subject to potential cash redemption. At December 31, 2012, the Company has no outstanding Series I Convertible, Redeemable Preferred Stock. All of the shares of Series II Convertible Preferred Stock outstanding as of December 31, 2012 were owned by related parties.

NOTE 9 - PREFERRED STOCK

During 2012, the Company entered into an agreement with its largest stockholder, Brightline Ventures I, LLC (“Brightline Ventures I”), pursuant to which Brightline Ventures I agreed to convert $3,326,697 (exclusive of dividends) worth of Series II Preferred Stock into 3,326,697 shares of the Company’s common stock at the earlier of either the maturity date of the security or the closing of any approved transaction with Maxim Group LLC. In consideration for the foregoing conversion of Series II Preferred Stock by Brightline Ventures I on or before their respective maturity dates, the Company modified the following warrants held by Brightline Ventures I to provide them with the ability to exercise such warrants on a cashless basis: (i) warrants to purchase an aggregate of 11,582,983 shares of common stock with an exercise price of $1.50 per share, which were issued to Brightline Ventures I in transactions where Brightline Ventures I acquired shares of the Company’s Series I and II Preferred Stock; and (ii) warrants to purchase an aggregate of 2,859,375 shares of common stock with an exercise price of $1.50 per share, which equaled one half of the outstanding and unexercised warrants issued to Brightline Ventures I in other transactions where Brightline Ventures I provided financing to the Company at that time (see Note 12 for a discussion of matters related to these warrants that occurring during 2013). As a result of this modification, the Series II Convertible, Redeemable Preferred Stock was reclassified on the balance sheet as permanent Stockholders’ Equity and identified as Series II Convertible Preferred Stock at December 31, 2012. The value reclassified to permanent equity was equal to the carrying value of the shares on the date the agreement was modified. This value was $2,157,238 based on a gross value of $3,326,697 and a remaining discount of $1,169,459. Furthermore, the accrued dividends relating to the Series II Convertible Preferred Stock were also reclassified to Stockholders’ Equity as of December 31, 2012. These reclassifications were necessary based on the preferred shares no longer being subject to potential cash redemption.

On March 18, 2013, Brightline Ventures I converted the Series II Convertible Preferred Stock of $3,326,697 together with $533,000 of accrued dividends thereon into 3,859,697 shares of the Company’s Common Stock. As of March 31, 2013 there was no Series II Convertible Preferred Stock outstanding. The value of the Series II Preferred Stock and dividends converted was equal to the total value recorded to common stock and additional paid in capital with no gain or loss recorded as the conversion was consistent with the original agreement. As a result of the preferred stock conversion, $2,690,239 was recorded to common stock and additional paid-in capital. Accrued dividends were $476,857 as of December 31, 2012.

As of December 31, 2013, no shares of Series II Preferred Stock remained outstanding.

Preferred Stock converted into Common Stock in 2012

On August 15, 2012, Brightline Ventures I converted $907,120 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 907,120 shares of the Company’s Common Stock. In conjunction with this conversion, Morris Garfinkle, a Director of the Company, also converted $34,800 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 34,800 shares of the Company’s Common Stock.

On September 7, 2012, Brightline Ventures I converted $727,280 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 727,280 shares of the Company’s Common Stock.

On December 7, 2012, Brightline Ventures I converted $2,559,752 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 2,559,752 shares of the Company’s Common Stock. Again on December 29, 2012, Brightline Ventures I converted $905,348 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 905,348 shares of the Company’s Common Stock.

On December 11, 2012, the Company’s external Directors, Mark Hershhorn, Morris Garfinkle, Brian Israel and Edward Smith each agreed to convert $17,403 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 17,403 shares of the Company’s Common Stock prior to its maturity. The aggregate conversion by the directors was $69,612. As a result of this early conversion the Company recorded a loss of $728 for the twelve months ended December 31, 2012.

On December 15, 2012, an Investor converted $290,000 (including accrued dividends) of Series I Convertible, Redeemable Preferred Stock into 290,000 shares of the Company’s Common Stock.

On August 13, 2012, the Company entered into an agreement with Brightline Ventures I pursuant to which Brightline agreed to convert $7,721,988 (exclusive of dividends) worth of Series I and II Preferred Stock into 7,721,988 shares of the Company’s Common Stock at the earlier of either the maturity date of the security or the closing of any approved transaction with Maxim Group, LLC. In consideration for the foregoing conversion of Preferred Stock by Brightline Ventures I on or before their respective maturity dates, the Company modified the following warrants held by Brightline Ventures I to provide them with the ability to exercise such warrants on a cashless basis: (i) warrants to purchase an aggregate of 11,582,983 shares of Common Stock with an exercise price of $1.50 per share, which were issued to Brightline Ventures I in transactions where Brightline Ventures I acquired shares of the Company’s Series I and II Preferred Stock; and (ii) warrants to purchase an aggregate of 2,859,375 shares of Common Stock with an exercise price of $1.50 per share, which equals one half of the outstanding and unexercised warrants issued to Brightline Ventures I in other transactions where Brightline Ventures I provided financing to the Company. Prior to December 31, 2012, all Series I Preferred shares held by Brightline Ventures I were converted to common shares consistent with the amendment. The remaining Series II Preferred shares held of 665,339 shares and $3,326,697 was reclassified to permanent equity based on the removal of the redemption feature associated with the preferred stock. The value reclassified was equal to the carrying value of the shares on the date the agreement was modified. This value was $2,157,238 based on a gross value of $3,326,697 and a remaining discount of $1,169,459. Furthermore, the accrued dividends relating to the Series II Convertible Preferred Stock have also been reclassified to Stockholders’ Equity. These reclassifications were necessary based on the preferred shares no longer being subject to potential cash redemption.

At December 31, 2012, the Company has no outstanding Series I Convertible, Redeemable Preferred Stock. All of the shares of Series II Convertible Preferred Stock outstanding as of December 31, 2012 were owned by related parties.