10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2018

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 000-55473

BIOSIG TECHNOLOGIES, INC.

(Exact name of registrant as specified in its charter)

Delaware	26-4333375
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

12424 Wilshire Blvd, Suite 745

Los Angeles, CA 90025

(Address of principal executive offices) (zip code)

(512) 329-2643

(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 ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐   No ☒

As of July 27, 2018, there were 37,344,892 shares of registrant’s common stock outstanding.  

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION
	ITEM 1.	Financial Statements
		Condensed balance sheets as of June 30, 2018 (unaudited) and December 31, 2017	3
		Condensed statements of operations for the three and six months ended June 30, 2018 and 2017 (unaudited)	4
		Condensed statement of stockholders’ equity (deficit) for the six months ended June 30, 2018 (unaudited)	5
		Condensed statements of cash flows for the six months ended June 30, 2018 and 2017 (unaudited)	6
		Notes to condensed financial statements (unaudited)	7-21
	ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operation	22-30
	ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	30
	ITEM 4.	Controls and Procedures	30
PART II.	OTHER INFORMATION
	ITEM 1.	Legal Proceedings	31
	ITEM 1A.	Risk Factors	31
	ITEM 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
	ITEM 3.	Defaults Upon Senior Securities	31
	ITEM 4.	Mine Safety Disclosures	31
	ITEM 5.	Other Information	31
	ITEM 6.	Exhibits	32
	SIGNATURES		33

PART 1 – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

BIOSIG TECHNOLOGIES, INC.
CONDENSED BALANCE SHEETS
	June 30,			December 31,
	2018			2017
	(unaudited)
ASSETS
Current assets:
Cash	$	3,673,137		$	1,547,579
Prepaid expenses		166,112			116,938
Total current assets		3,839,249			1,664,517
Property and equipment, net		21,098			18,716
Other assets:
Patents, net		258,233			-
Deposits		59,208			17,084
Total assets	$	4,177,788		$	1,700,317
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued expenses, including $12,648 and $27,375 to related parties as of June 30, 2018 and December 31, 2017, respectively	$	219,495		$	473,098
Dividends payable		305,737			447,901
Warrant liability		-			2,358,240
Derivative liability		-			685,922
Total current  liabilities		525,232			3,965,161
Series C Preferred Stock, 575 and 985 shares issued and outstanding; liquidation preference of $575,000 and $985,000 as of June 30, 2018 and December 31, 2017, respectively		575,000			985,000
Stockholders’ equity (deficit)
Preferred stock, $0.001 par value, authorized 1,000,000 shares, designated 200 shares of Series A, 600 shares of Series B, 4,200 shares of Series C, 1,400 shares of Series D, 1,000 shares of Series E Preferred Stock
Series D Preferred Stock, $0.001 par value, 0 and 1,334 shares issued and outstanding; liquidation preference of $0 and $2,001,000 as of June 30, 2018 and December 31, 2017, respectively		-			1
Series E Preferred Stock, $0.001 par value, 1,000 and 0 shares issued and outstanding; liquidation preference of $1,500,000 and $0 as of June 30, 2018 and December 31, 2017, respectively		1			-
Common stock, $0.001 par value, authorized 200,000,000 shares, 36,709,302 and 29,321,204 issued and outstanding as of June 30, 2018 and December 31, 2017, respectively		36,709			29,321
Additional paid in capital		64,925,227			53,215,635
Common stock subscription		-			29,985
Accumulated deficit		(61,884,381	)		(56,524,786	)
Total stockholders’ equity (deficit)		3,077,556			(3,249,844	)
Total liabilities and stockholders’ equity (deficit)	$	4,177,788		$	1,700,317
See the accompanying notes to the unaudited condensed financial statements

3

BIOSIG TECHNOLOGIES, INC.
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
Operating expenses:
Research and development	$	1,449,508		$	1,339,039		$	2,311,928		$	2,677,643
General and administrative		4,314,552			1,676,336			6,086,348			3,233,677
Depreciation		2,926			2,997			5,829			6,066
Total operating expenses		5,766,986			3,018,372			8,404,105			5,917,386
Loss from operations		(5,766,986	)		(3,018,372	)		(8,404,105	)		(5,917,386	)
Other income (expense):
Loss on change in fair value of derivatives		-			(60,244	)		-			(433,855	)
Interest income		263			54			348			54
Loss before income taxes		(5,766,723	)		(3,078,562	)		(8,403,757	)		(6,351,187	)
Income taxes (benefit)		-			-			-			-
Net loss		(5,766,723	)		(3,078,562	)		(8,403,757	)		(6,351,187	)
Preferred stock dividend		(280,867	)		(22,863	)		(585,913	)		(46,608	)
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS	$	(6,047,590	)	$	(3,101,425	)	$	(8,989,670	)	$	(6,397,795	)
Net loss per common share, basic and diluted	$	(0.18	)	$	(0.12	)	$	(0.28	)	$	(0.27	)
Weighted average number of common shares outstanding, basic and diluted		34,518,208			25,131,486			32,243,961			24,097,424
See the accompanying notes to the unaudited condensed financial statements

4

BIOSIG TECHNOLOGIES, INC.
CONDENSED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)
SIX MONTHS ENDED JUNE 30, 2018
															Additional
	Series D Preferred stock						Series E Preferred stock				Common stock				Paid in			Common stock			Accumulated
	Shares			Amount			Shares		Amount		Shares		Amount		Capital			Subscription			Deficit			Total
Balance, December 31, 2017		1,334		$	1			-	$	-		29,321,204	$	29,321	$	53,215,635		$	29,985		$	(56,524,786	)	$	(3,249,844	)
Reclassify fair value of derivative and warrant liabilities to equity upon adoption of ASU 2017-11		-			-			-		-		-		-		-			-			3,044,162			3,044,162
Common stock issued for services		-			-			-		-		1,450,000		1,450		2,530,050			-			-			2,531,500
Sale of common stock		-			-			-		-		3,533,004		3,533		5,294,897			(29,985	)		-			5,268,445
Common stock issued upon exercise of warrants at $1.50 per share		-			-			-		-		285,264		285		427,611			-			-			427,896
Common stock issued upon conversion of Series C Preferred Stock at $1.50 per share		-			-			-		-		273,338		273		409,727			-			-			410,000
Common stock issued settlement of Series C Preferred Stock accrued dividends at $1.61 per share		-			-			-		-		116,580		117		187,689			-			-			187,806
Common stock issued upon conversion of Series D Preferred Stock at $1.50 per share		(1,334	)		(1	)		-		-		1,334,000		1,334		(1,333	)		-			-			-
Common stock issued settlement of Series D Preferred Stock accrued dividends at $1.36 per share		-			-			-		-		395,912		396		539,875			-			-			540,271
Sale of Series E Preferred stock		-			-			1,000		1		-		-		1,492,968			-			-			1,492,969
Stock based compensation		-			-			-		-		-		-		1,414,021			-			-			1,414,021
Preferred stock dividend		-			-			-		-		-		-		(585,913	)		-			-			(585,913	)
Net loss		-			-			-		-		-		-		-			-			(8,403,757	)		(8,403,757	)
Balance, June 30, 2018 (unaudited)		-		$	-			1,000	$	1		36,709,302	$	36,709	$	64,925,227		$	-		$	(61,884,381	)	$	3,077,556
See the accompanying notes to the unaudited condensed financial statements

5

BIOSIG TECHNOLOGIES, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
	Six months ended June 30,
	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(8,403,757	)	$	(6,351,187	)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation		5,829			6,066
Equipment distribution as officer compensation					3,210
Change in derivative liabilities		-			433,855
Equity based compensation		3,945,521			1,082,858
Fair value of issued warrant to acquire research and development		-			543,927
Changes in operating assets and liabilities:
Prepaid expenses		(49,174	)		(40,759	)
Security deposit		(42,124	)		-
Accounts payable and accrued expenses		(254,457	)		870,186
Deferred rent payable		854			(1,114	)
Net cash used in operating activities		(4,797,308	)		(3,452,958	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments of patent costs		(258,233	)		-
Purchase of property and equipment		(8,211	)		(1,620	)
Net cash used in investing activity		(266,444	)		(1,620	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock		5,268,445			3,039,372
Proceeds from sale of Series E preferred stock		1,492,969			-
Proceeds from exercise of warrants at $1.50 per share		427,896			-
Proceeds from common stock subscription		-			239,970
Net cash provided by financing activities		7,189,310			3,279,342
Net increase (decrease) in cash and cash equivalents		2,125,558			(175,236	)
Cash and cash equivalents, beginning of the period		1,547,579			1,055,895
Cash and cash equivalents, end of the period	$	3,673,137		$	880,659
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	$	-		$	-
Cash paid during the period for income taxes	$	-		$	-
Non cash investing and financing activities:
Common stock issued upon conversion of Series C Preferred Stock and accrued dividends	$	597,806		$	88,991
Reclassify fair value of derivative liability to equity	$	-		$	15,676
Common stock issued upon conversion of Series D Preferred Stock and accrued dividends	$	540,271		$	-
Reclassify fair value of derivative and warrant liabilities to equity upon adoption of ASU 2017-11	$	3,044,162		$	-
See the accompanying notes to the unaudited condensed financial statements

6

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

BioSig Technologies Inc. (the “Company”) was initially incorporated on February 24, 2009 under the laws of the State of Nevada and subsequently re-incorporated in the state of Delaware in 2011. The Company is principally devoted to improving the quality of cardiac recordings obtained during EP studies and catheter ablation procedures. The Company has not generated any revenue to date and consequently its operations are subject to all risks inherent in the establishment of a new business enterprise.

The unaudited condensed interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The condensed balance sheet as of December 31, 2017 has been derived from audited financial statements.

Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of results that may be expected for the year ending December 31, 2018. These condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2017 filed with the Company’s Form 10-K/A with the Securities and Exchange Commission on March 26, 2018.

NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

As of June 30, 2018, the Company had cash of $3,673,137 and working capital of $3,314,017. The Company raised approximately $1,500,000 through the sale of Series E preferred stock and warrants, $5,300,000 through the sale of common stock and warrants and $428,000 from the exercise of previously issued warrants during the six months ended June 30, 2018 and approximately $900,000 subsequent to June 30, 2018 (See Note 13). During the six months ended June 30, 2018, the Company used net cash in operating activities of $4,797,308.  These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company has sufficient funds to meet its research and development and other funding requirements for at least the next 6 months.

The Company’s primary source of operating funds since inception has been cash proceeds from private placements of common and preferred stock. The Company has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue for the foreseeable future. The Company will require additional financing to fund future operations. Further, the Company does not have any commercial products available for sale and there is no assurance that if approval of their products is received that the Company will be able to generate cash flow to fund operations. In addition, there can be no assurance that the Company’s research and development will be successfully completed or that any product will be approved or commercially viable.

Accordingly, the accompanying financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The condensed financial statements do not include any adjustment that might result from the outcome of this uncertainty.

7

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

NOTE 3 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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 the recoverability and useful lives of long-lived assets, the fair value of the Company’s stock, stock-based compensation and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.

Fair Value of Financial Instruments

Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”) requires disclosure of the fair value of certain financial instruments. The carrying value of cash and cash equivalents, accounts payable and accrued liabilities as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

The Company follows Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) and Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”), which permits entities to choose to measure many financial instruments and certain other items at fair value.

Derivative Instrument Liability

The Company accounts for derivative instruments in accordance with ASC 815, which establishes accounting and reporting standards for derivative instruments and hedging activities, including certain derivative instruments embedded in other financial instruments or contracts and requires recognition of all derivatives on the balance sheet at fair value, regardless of hedging relationship designation. Accounting for changes in fair value of the derivative instruments depends on whether the derivatives qualify as hedge relationships and the types of relationships designated are based on the exposures hedged. At June 30, 2018 and December 31, 2017, the Company did not have any derivative instruments that were designated as hedges.

At June 30, 2018 and December 31, 2017, the Company had outstanding preferred stock and warrants that contained embedded derivatives. These embedded derivatives include certain conversion features and reset provisions (See Note 6 and Note 7).

Research and development costs

The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $1,449,508 and $2,311,928 for the three and six months ended June 30, 2018; and $1,339,039 and $2,677,643 for the three and six months ended June 30, 2017, respectively.

8

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

Net Income (loss) Per Common Share

The Company computes earnings (loss) per share under Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”). Net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year.  Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable.

The computation of basic and diluted loss per share as of June 30, 2018 and 2017 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.

Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share are as follows:

	June 30, 2018		June 30, 2017
Series C convertible preferred stock		383,333		670,000
Series E convertible preferred stock		1,000,000		-
Options to purchase common stock		8,745,319		8,245,190
Warrants to purchase common stock		13,546,521		11,019,913
Totals		23,675,173		19,935,103

Stock Based Compensation

The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period.

As of June 30, 2018, the Company had 8,745,319 options outstanding to purchase shares of common stock, of which 8,004,153 were vested.

As of December 31, 2017, there were outstanding stock options to purchase 8,510,319 shares of common stock, 7,347,486 shares of which were vested.

Income Taxes

The Company follows Accounting Standards Codification subtopic 740-10, Income Taxes (“ASC 740-10”) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability during each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods.

Deferred taxes are classified as non-current.

9

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

Patents, net

The Company capitalizes certain initial asset costs in connection with patent applications including registration, documentation and other professional fees associated with the application. Patent costs incurred prior to the Company’s U.S. Food and Drug Administration (“FDA”) 510 (k) application on March 28, 2018 were charged to research and development expense as incurred. Commencing upon patent approval, capitalized costs will be amortized to expense using the straight-line method over the lesser of the legal patent term or the estimated life of the product.

Registration Rights

On February 16, 2018, in connection with the Company’s private placement of Series E Preferred Stock and warrants, the Company also entered into a registration rights agreement (the “Registration Rights Agreement”) whereby the Company agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) within 90 days of the closing of the transactions contemplated by the Purchase Agreement (the “Filing Date”) covering the resale of (a) all shares of Common Stock Issuable upon conversion of the Preferred Shares, (b) all shares of Common Stock issuable upon exercise of the Warrants, (c) all other shares of Common Stock issued pursuant to any transaction documents which have been, or which may, from time to time be issued or become issuable to the Investors under the Transaction Documents (without regard to any limitation or restriction on purchases), and (d) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event (“Registrable Securities”), not then registered.  The Company will use its reasonable best efforts to keep the registrations statement effective pursuant to Rule 415 under the Securities Act until the earlier of (i) the date on which the Investors shall have sold all the Registrable Securities covered thereby and (ii) that date that all Registrable Securities may be sold pursuant to Rule 144 without any public information requirement or volume or manner of sale limitations. The Company has estimated the liability under the registration rights agreement at $-0- as of June 30, 2018.

Adoption of Accounting Standards

In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features.

When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception.

10

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.

On January 1, 2018, the Company adopted ASU 2017-11 and according reclassified the fair value of the reset provisions embedded in previously issued Series C Preferred stock, Series D Preferred stock and certain warrants with embedded anti-dilutive provisions from liability to equity in aggregate of $3,044,162.

Recent Accounting Pronouncements

There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s financial position, results of operations or cash flows.

Subsequent Events

The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued.  Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed financial statements, except as disclosed.

NOTE 4 – PROPERTY AND EQUIPMENT

Property and equipment as of June 30, 2018 and December 31, 2017 is summarized as follows:

	June 30, 2018			December 31, 2017
Computer equipment	$	91,518		$	87,059
Furniture and fixtures		16,726			12,975
Subtotal		108,244			100,034
Less accumulated depreciation		(87,146	)		(81,318	)
Property and equipment, net	$	21,098		$	18,716

Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives of 3 to 5 years. When retired or otherwise disposed, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition, is reflected in earnings.

Depreciation expense was $2,926 and $5,829 for the three and six months ended June 30, 2018; and $2,997 and $6,066 for the three and six months ended June 30, 2017, respectively.

11

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

NOTE 5 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses at June 30, 2018 and December 31, 2017 consist of the following:

	June 30, 2018		December 31, 2017
Accrued accounting and legal	$	40,775	$	93,595
Accrued reimbursements		9,767		2,600
Accrued consulting		49,035		109,059
Accrued research and development expenses		89,918		246,030
Accrued office and other		15,243		7,912
Deferred rent		1,424		569
Accrued settlement related to arbitration		13,333		13,333
	$	219,495	$	473,098

NOTE 6 – SERIES C 9% CONVERTIBLE PREFERRED STOCK

On January 9, 2013, the Board of Directors authorized the issuance of up to 4,200 shares of 9% Series C Convertible Preferred Stock (the “Series C Preferred Stock”).

The Series C Preferred Stock is entitled to preference over holders of junior stock upon liquidation in the amount of $1,000 plus any accrued and unpaid dividends; entitled to dividends as a preference to holders of junior stock at a rate of 9% per annum of the stated value of $1,000 per share, payable quarterly beginning on September 30, 2013 and are cumulative.  The holders of the Series C Preferred Stock vote together with the holders of our common stock on an as-converted basis, but may not vote the Series C Preferred Stock in excess of the beneficial ownership limitation of the Series C Preferred Stock.  The beneficial ownership limitation is 4.99% of our then outstanding shares of common stock following such conversion or exercise, which may be increased to up to 9.99% of our then outstanding shares of common stock following such conversion or exercise upon the request of an individual holder.  The beneficial ownership limitation is determined on an individual holder basis, such that the as-converted number of shares of one holder is not included in the shares outstanding when calculating the limitation for a different holder.

In connection with the sale of the Series C preferred stock, the Company issued an aggregate of 1,330,627 warrants to purchase the Company’s common stock at $2.61 per share expiring five years from the initial exercise date.  The warrants contain full ratchet anti-dilution price protection upon the issuance of equity or equity-linked securities at an effective common stock purchase price of less than $2.61 per share as well as other customary anti-dilution protection. The warrants are exercisable for cash; or if at any time after six months from the issuance date, there is no effective registration statement registering the resale, or no current prospectus available for the resale, of the shares of common stock underlying the warrants, the warrants may be exercised by means of a “cashless exercise”. 

As a result of an amendment to the conversion price of our Series C Preferred Stock, the full-ratchet anti-dilution protection provision of the warrants decreased the exercise price of the warrants from $2.61 per share to $1.50 per share and increased the aggregate number of shares issuable under the warrants to 2,315,301.

In February 2018, the Company issued 9,919 shares of its common stock in exchange for 10 shares of the Company’s Series C Preferred Stock and accrued dividends.

12

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

In March 2018, the Company issued 10,010 shares of its common stock in exchange for 10 shares of the Company’s Series C Preferred Stock and accrued dividends.

In April 2018, the Company issued 351,021 shares of its common stock in exchange for 370 shares of the Company’s Series C Preferred Stock and accrued dividends.

In June 2018, the Company issued 18,968 shares of its common stock in exchange for 20 shares of the Company’s Series C Preferred Stock and accrued dividends.

Series C Preferred Stock issued and outstanding totaled 575 and 985 as of June 30, 2018 and December 31, 2017, respectively.  As of June 30, 2018 and December 31, 2017, the Company has accrued $267,189 and $419,283 dividends payable on the Series C Preferred Stock.

NOTE 7 – WARRANT AND DERIVATIVE LIABILITIES

Series C 9% Convertible Preferred Stock and related warrants

At the time of issuance and until March 31, 2015, the Company determined that the anti-dilutive provisions embedded in the Series C Preferred Stock and related warrants (see Note 6) did not meet the defined criteria of a derivative in such that the net settlement requirement of delivery of common shares does not meet the “readily convertible to cash” as described in Accounting Standards Codification 815 and therefore bifurcation was not required.  There was no established market for the Company’s common stock.   As of March 31, 2015, the Company determined a market had been established for the Company’s common stock and accordingly, reclassified from equity to liability treatment the fair value of the embedded reset provisions of the Series C Preferred Stock and warrants of $1,242,590 and $4,097,444, respectively.

The Company valued the reset provisions of the Series C Preferred Stock and warrants in accordance with ASC 470-20 using the Multinomial Lattice pricing model and the following assumptions: estimated contractual terms, a risk free interest rate of 0.56% to 0.89%, a dividend yield of 0%, and volatility of 141%.

Series D Convertible Preferred Stock and related warrants

At issuance, the Company determined that certain anti-dilutive provisions embedded in the Series D Preferred Stock and related warrants (see Note 8) met the defined criteria of a derivative and accordingly, reclassified from equity to liability the determined fair value of the embedded reset provisions of the Series D Preferred Stock and warrants of $397,162 and $652,054, respectively.

The Company valued the reset provisions of the Series D Preferred Stock and warrants in accordance with ASC 470-20 using the Multinomial Lattice pricing model and the following assumptions: estimated contractual terms, a risk free interest rate of 1.74%, a dividend yield of 0%, and volatility of 130%.

At December 31, 2017, the Company marked to market the fair value of the reset provisions of the Preferred Stock and warrants and determined fair values of $685,922 and $2,358,240, respectively. The fair values of the embedded derivatives were determined using the Multinomial Lattice pricing model and the following assumptions: estimated contractual term of 1.43 to 3.36 years, a risk free interest rate of 1.39% to 1.89%, a dividend yield of 0%, and volatility of 131%.

On January 1, 2018, the Company adopted ASU 2017-11 and according reclassified the fair value of the reset provisions embedded in previously issued Series C Preferred stock, Series D Preferred stock and certain warrants with embedded anti-dilutive provisions from liability to equity in aggregate of $3,044,162.

13

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

NOTE 8 – STOCKHOLDER EQUITY

Preferred stock

The Company is authorized to issue 1,000,000 shares of $0.001 par value preferred stock. As of June 30, 2018 and December 31, 2017, the Company has authorized 200 shares of Series A preferred stock, 600 shares of Series B preferred stock, 4,200 shares of Series C Preferred Stock, 1,400 shares of Series D Preferred Stock and (2018) 1,000 shares of Series E Preferred Stock. As of June 30, 2018 and December 31, 2017, there were no outstanding shares of Series A and Series B preferred stock.

Series C Preferred Stock

In February 2018, the Company issued 9,919 shares of its common stock in exchange for 10 shares of the Company’s Series C Preferred Stock and accrued dividends.

In March 2018, the Company issued 10,010 shares of its common stock in exchange for 10 shares of the Company’s Series C Preferred Stock and accrued dividends.

In April 2018, the Company issued 351,021 shares of its common stock in exchange for 370 shares of the Company’s Series C Preferred Stock and accrued dividends.

In June 2018, the Company issued 18,968 shares of its common stock in exchange for 20 shares of the Company’s Series C Preferred Stock and accrued dividends.

Series D Preferred Stock

In January 2018, the Company issued an aggregate of 235,911 shares of its common stock in exchange for 180 shares of the Company’s Series D Preferred Stock and accrued dividends.

In February 2018, the Company issued an aggregate of 131,432 shares of its common stock in exchange for 100 shares of the Company’s Series D Preferred Stock and accrued dividends.

In March 2018, the Company issued an aggregate of 489,231 shares of its common stock in exchange for 367 shares of the Company’s Series D Preferred Stock and accrued dividends.

In April 2018, the Company issued an aggregate of 577,339 shares of its common stock in exchange for 454 shares of the Company’s Series D Preferred Stock and accrued dividends.

In May 2018, the Company issued an aggregate of 261,709 shares of its common stock in exchange for 206 shares of the Company’s Series D Preferred Stock and accrued dividends.

In June 2018, the Company issued an aggregate of 34,290 shares of its common stock in exchange for 27 shares of the Company’s Series D Preferred Stock and accrued dividends.

Series E Preferred Stock

On February 16, 2018, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional accredited investors (the “Investors”), pursuant to which the Company sold to the Investors an aggregate of 1,000 shares (the “Preferred Shares”) of its Series E Preferred Stock, par value $0.001 per share, and warrants to purchase an aggregate of 500,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at an exercise price of $1.75 per share (the “Warrants”), in exchange for aggregate consideration of $1,492,969, net of transaction expenses of $7,031 (the “Transaction”).

14

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

The Purchase Agreement contains representations and warranties of the Company and the Investors that are typical for transactions of this type.  The Purchase Agreement also contains covenants on the part of the Company that are typical for transactions of this type. For a period of twelve months after the closing date of Transaction, the Investors are entitled to a right of first refusal (the “ROFR”) with respect to subsequent sales of securities by the Company (other than with respect to issuances of Excluded Securities (as defined in the Purchase Agreement))  Pursuant to the ROFR, each Investor will have the opportunity to elect to purchase its pro rata portion of thirty percent (30%) of any securities being offered by the Company in the subsequent offering.

In connection with the entry into the Purchase Agreement, the Investors and the Company also entered into a registration rights agreement (the “Registration Rights Agreement”) whereby the Company agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) within 90 days of the closing of the transactions contemplated by the Purchase Agreement (the “Filing Date”) covering the resale of (a) all shares of Common Stock Issuable upon conversion of the Preferred Shares, (b) all shares of Common Stock issuable upon exercise of the Warrants, (c) all other shares of Common Stock issued pursuant to any transaction documents which have been, or which may, from time to time be issued or become issuable to the Investors under the Transaction Documents (without regard to any limitation or restriction on purchases), and (d) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event (“Registrable Securities”), not then registered.  The Company will use its reasonable best efforts to keep the registrations statement effective pursuant to Rule 415 under the Securities Act until the earlier of (i) the date on which the Investors shall have sold all the Registrable Securities covered thereby and (ii) that date that all Registrable Securities may be sold pursuant to Rule 144 without any public information requirement or volume or manner of sale limitations.

The Warrants are exercisable immediately and expire on August 16, 2021, and have an exercise price of $1.75 per share.  The Warrants include a “full ratchet” anti-dilution adjustment in the event that the Company issues any common stock or common stock equivalent at a per share price lower than the applicable exercise price then in effect.

As a result of sale of the Company’s common stock in April 2018, the full-ratchet anti-dilution protection provision of the warrants decreased the exercise price of the warrants from $1.75 per share to $1.50 per share and increased the aggregate number of shares issuable under the warrants from 500,000 to 583,334.

In connection with its entry into the Purchase Agreement, on February 14, 2018, the Company entered into a consent agreement (the “Consent”) with the holders of the Company’s Series D Convertible Preferred Stock (the “Series D Holders”).  Pursuant to the Consent, the Series D Holders consented to the Transaction and are entitled at any time on or before April 17, 2018, to elect to receive the more favorable terms of the Transaction.  In consideration for their entry into the Consent, the Company issued to the Series D Holders warrants to purchase up to an aggregate of 100,000 shares of Common Stock (the “Consent Warrants”).  The Consent Warrants are exercisable immediately and expire on February 14, 2021, and have an exercise price of $1.50 per share.  The Consent Warrants include a “full ratchet” anti-dilution adjustment in the event that the Company issues any common stock or common stock equivalent at a per share price lower than the applicable exercise price then in effect. 

Common stock

The Company is authorized to issue 200,000,000 shares of $0.001 par value common stock. As of June 30, 2018 and December 31, 2017, the Company had 36,709,302 and 29,321,204 shares issued and outstanding, respectively.

During the six months ended June 30, 2018, the Company issued 1,450,000 shares of its common stock for services totaling $2,531,500 ($1.75 per share).

15

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

During the six months ended June 30, 2018, the Company entered into securities purchase agreements with investors pursuant to which the Company issued 3,513,004 shares of common stock and 1,756,506 warrants for aggregate proceeds of $5,268,445.

During the six months ended June 30, 2018, the Company issued 20,000 shares of common stock and 10,000 warrants for a previously received common stock subscription of $29,985.

During the six months ended June 30, 2018, the Company issued 285,264 shares of common stock in exchange for proceeds of $427,896 from the exercise of warrants.

NOTE 9 – OPTIONS AND WARRANTS

Options

On October 19, 2012, the Company’s Board of Directors approved the 2012 Equity Incentive Plan (“the “Plan) and terminated the Long-Term Incentive Plan (the “2011 Plan”). The Plan provides for the issuance of options to purchase up to 15,186,123 (as amended) shares of the Company’s common stock to officers, directors, employees and consultants of the Company (as amended). Under the terms of the Plan the Company may issue Incentive Stock Options as defined by the Internal Revenue Code to employees of the Company only and nonstatutory options. The Board of Directors of the Company or a committee thereof administers the Plan and determines the exercise price, vesting and expiration period of the grants under the Plan.

However, the exercise price of an Incentive Stock Option should not be less than 110% of fair value of the common stock at the date of the grant for a 10% or more stockholder and 100% of fair value for a grantee who is not 10% stockholder. The fair value of the common stock is determined based on the quoted market price or in absence of such quoted market price, by the administrator in good faith.

Additionally, the vesting period of the grants under the Plan will be determined by the administrator, in its sole discretion, with an expiration period of not more than ten years.

The following table presents information related to stock options at June 30, 2018:

Options Outstanding						Options Exercisable
				Weighted
				Average		Exercisable
Exercise		Number of		Remaining Life		Number of
Price		Options		In Years		Options
$	1.01-2.00		4,060,540		7.0		3,319,374
	2.01-3.00		4,384,779		3.2		4,384,779
	3.01-4.00		300,000		6.8		300,000
			8,745,319		5.1		8,004,153

16

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

A summary of the stock option activity and related information for the 2012 Plan for the six months ended June 30, 2018 is as follows:

						Weighted-Average
				Weighted-Average		Remaining		Aggregate
	Shares			Exercise Price		Contractual Term		Intrinsic Value
Outstanding at December 31, 2017		8,510,319		$	2.11		5.2	$	27,045
Grants		865,000		$	1.75		10.0	$	-
Exercised		-
Canceled		(630,000	)		1.56
Outstanding at June 30, 2018		8,745,319		$	2.11		5.1	$	3,190,390
Exercisable at June 30, 2018		8,004,153		$	2.16		4.8	$	2,648,701

The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $2.37 of June 30, 2018, which would have been received by the option holders had those option holders exercised their options as of that date.

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure using the Company’s own historical stock prices. The Company accounts for the expected life of options based on the contractual life of options for non-employees.

For employees, the Company accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla” options, as defined in the accounting standards codification. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.  The fair value of stock-based payment awards during the six months ended June 30, 2018 and 2017 was estimated using the Black-Scholes pricing model.

On February 15, 2018, the Company granted 50,000 options to purchase the Company stock in connection with the services rendered at the exercise price of $1.42 per share for a term of ten years with vesting immediately.

On May 4, 2018, the Company granted 565,000 options to purchase the Company stock in connection with the services rendered at the exercise price of $1.77 per share for a term of ten years with vesting immediately.

On May 14, 2018, the Company granted 250,000 options to purchase the Company stock in connection with the services rendered at the exercise price of $1.77 per share for a term of ten years with vesting immediately.

The following assumptions were used in determining the fair value of employee options for the six months ended June 30, 2018:

Risk-free interest rate		2.65% to 2.85		%
Dividend yield			0	%
Stock price volatility		92.65% to 94.10		%
Expected life	5			years
Weighted average grant date fair value		$	1.28

The fair value of all options vesting during the three and six months ended June 30, 2018 of $1,167,313 and $1,414,021 and for the three and six months ended June 30, 2017 of $54,243 and $97,227, respectively, was charged to current period operations.  Unrecognized compensation expense of $387,971 and $979,812 at June 30, 2018 and December 31, 2017, respectively, will be expensed in future periods.

17

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

Warrants

The following table summarizes information with respect to outstanding warrants to purchase common stock of the Company at June 30, 2018: 

Exercise		Number		Expiration
Price		Outstanding		Date
$	0.001		383,320	January 2020
$	1.50		7,758,369	July 2018 to August 2021
$	1.75		1,666,506	May 2021
$	1.84		35,076	January 2020
$	1.95		1,689,026	October 2018 to September 2019
$	2.00		100,000	August 2018
$	2.02		30,755	January 2020
$	2.50		100,000	August 2018
$	2.75		228,720	August 2019 to September 2019
$	3.67		214,193	December 2018 to January 2019
$	3.75		1,340,556	April 2019 to March 2020
			13,546,521

On January 5, 2018, the Company issued 100,000 warrants to purchase the Company’s common stock at $1.50 per share, expiring on January 5, 2021, in connection with the sale of the Company’s common stock.

On February 14, 2018, the Company entered into a consent agreement with the holders of the Company’s Series D Convertible Preferred Stock.  Pursuant to the consent, the Series D Holders consented to the Series E Preferred Stock transaction and are entitled at any time on or before April 17, 2018, to elect to receive the more favorable terms of the transaction.  In consideration for their entry into the consent, the Company issued to the Series D Holders warrants to purchase up to an aggregate of 100,000 shares of common stock.  The consent warrants are exercisable immediately and expire on February 14, 2021, and have an exercise price of $1.50 per share. The warrants contain certain anti-dilutive provisions (see Note 8).

On February 16, 2018, the Company issued an aggregate of 500,000 warrants to purchase the Company’s common stock at $1.75 per share, expiring on August 16, 2021, in connection with the sale of the Company’s Series E preferred stock.  The warrants contain certain anti-dilutive provisions. On April 30, 2018, the exercise prices of the previously issued 500,000 warrants were reset to $1.50 and an additional 83,334 warrants were issued at $1.50 per share due to reset provisions (see Note 8).

On April 30, 2018, the Company issued 1,596,506 warrants to purchase the Company’s common stock at $1.75 per share, expiring on April 30, 2021, in connection with the sale of the Company’s common stock.

On May 11, 2018, the Company issued 70,000 warrants to purchase the Company’s common stock at $1.75 per share, expiring on May 11, 2021, in connection with the sale of the Company’s common stock.

18

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

A summary of the warrant activity for the six months ended June 30, 2018 is as follows:

						Weighted-Average
				Weighted-Average		Remaining		Aggregate
	Shares			Exercise Price		Contractual Term		Intrinsic Value
Outstanding at December 31, 2017		12,789,086		$	1.82		1.7	$	551,636
Grants		2,449,840		$	1.67		3.0		-
Exercised		(285,264	)	$	1.50
Expired		(1,407,141	)	$	1.50		-		-
Outstanding at June 30, 2018		13,546,521		$	1.84		1.7	$	9,466,845
Vested and expected to vest at June 30, 2018		13,546,521		$	1.84		1.7	$	9,466,845
Exercisable at June 30, 2018		13,546,521		$	1.84		1.7	$	9,466,845

The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $2.37 of June 30, 2018, which would have been received by the option holders had those option holders exercised their options as of that date.

NOTE 10 – RELATED PARTY TRANSACTIONS

The Company’s President and shareholders have advanced funds to the Company for working capital purposes since the Company’s inception in February 2009.  No formal repayment terms or arrangements exist and the Company is not accruing interest on these advances. The net amount of outstanding advances at June 30, 2018 and December 31, 2017 was $-0-.

At June 30, 2018 and December 31, 2017, the Company had reimbursable travel and other related expenses due related parties of $12,648 and $27,375, respectively.

On November 1, 2017, in connection with Mr. Filler joining the Company’s Board of Directors,  the Company entered into a Master Services Agreement (the “Agreement”) with 3LP Advisors LLC (d/b/a Sherpa Technology Group) (“Sherpa”) and an initial statement of work (the “SOW”), pursuant to which Sherpa will develop, execute and expand the Company’s intellectual property strategy over the course of the next approximately 18 months by evaluating the business and technology landscape in which the Company operates, and charting and executing a strategy of patent filing and licensing. In connection with the SOW, the Company will pay Sherpa fee of (i) $200,000 in cash, of which $25,000 will be paid on January 1, 2018, with the remainder to be paid upon completion of certain objectives, and (ii) a ten-year option to purchase up to 300,000 of the Company’s common stock at an exercise of $1.50 per share of common stock, of which 150,000 options vest immediately and 150,000 options are performance conditioned.  Mr. Filler is the general counsel and partner of Sherpa. 

During the three months and six months ended June 30, 2018 and 2017, the Company paid $102,219 and $277,219 as patent costs, consulting fees and expense reimbursements. As of June 30, 2018 and December 31, 2017, there was an unpaid balance of $0.

19

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

NOTE 11 – COMMITMENTS AND CONTINGENCIES

Operating leases

On May 22, 2018, the Company entered into a fifth lease amendment agreement, whereby the Company agreed to extend the lease for the original office space and expand with additional space in Los Angeles, California, commencing June 14, 2018 and expiring on June 30, 2021.  In connection with the lease, the Company is obligated to lease parking spaces at an aggregate approximate cost of $1,017 per month.  In addition, the Company entered into a lease for storage space with the Los Angeles, California building commencing on December 1, 2017 and expiring on August 31, 2019.

Future minimum lease payments under these three agreements are as follows:

Year Ending December 31,
2018	$	100,465
2019		198,239
2020		201,993
2021		102,623
	$	603,320

NOTE 12 – FAIR VALUE MEASUREMENT

The Company adopted the provisions of Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”). ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 establishes three levels of inputs that may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

All items required to be recorded or measured on a recurring basis are based upon level 3 inputs.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement.

Upon adoption of ASC 825-10, there was no cumulative effect adjustment to beginning retained earnings and no impact on the financial statements.

20

BIOSIG TECHNOLOGIES, INC.

NOTES TO THE CONDENSED FINANCIAL STATEMENTS

JUNE 30, 2018

(unaudited)

The carrying value of the Company’s cash and cash equivalents, accounts payable and other current assets and liabilities approximate fair value because of their short-term maturity.

As of June 30, 2018 and December 31, 2017, the Company did not have any items that would be classified as level 1 or 2 disclosures.

As of June 30, 2018 and December 31, 2017, the Company did not have any derivative instruments that were designated as hedges.

The following table provides a summary of changes in fair value of the Company’s level 3 financial liabilities as of June 30, 2018:

	Warrant Liability			Derivative
Balance, December 31, 2017	$	2,358,240		$	685,922
Total (gains) losses
Transfers out due to the adoption of ASU 2017-11 effective January 1, 2018		(2,358,240	)		(685,922	)
Balance, June 30, 2018	$	-		$	-

NOTE 13 – SUBSEQUENT EVENTS

In July 2018, the Company issued an aggregate of 90,087 shares of common stock in exchange for 100 shares of our Series C 9% Convertible Preferred Stock and accrued dividends.

On July 11, 2018, the Company issued an aggregate of 101,000 shares of its common stock to consultants for services rendered with a fair value of $237,300.

In July 2018, the Company issued an aggregate of 379,897 shares of its common stock in exchange for warrants exercised at $1.50 per share for aggregate proceeds of $569,846.

In July  2018 the Company entered into a unit purchase agreement with certain accredited investors pursuant to which the Company received subscriptions for 209,655 shares of our common stock and 52,416 “Series A” warrants to purchase our common stock, exercisable at a price of $1.50 per share and expiring nine months from issuance, and 52,416 “Series B” warrants to purchase our common stock, exercisable at a price of $2.74 per share expiring three years from issuance in exchange for aggregate consideration of $477,801, net of expenses of $210.

On July 24, 2018 the Company issued 50,000 shares of common stock in exchange for 50,000 options exercised at $1.74 per share for proceeds of $87,000.​

On July 25, 2018 the Company issued 14,606 shares of common stock in exchange for 100,000 warrants at a strike price of $2.00 exercised cashless at $2.3421 per share.​

21

ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This Management’s Discussion and Analysis of Financial Condition and Results of Operations includes a number of forward-looking statements that reflect Management’s current views with respect to future events and financial performance. You can identify these statements by forward-looking words such as “may,” “will,” “expect,” “anticipate,” “believe,” “estimate” and “continue,” or similar words. Those statements include statements regarding the intent, belief or current expectations of us and members of our management team as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements.

Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the Securities and Exchange Commission. Important factors currently known to Management could cause actual results to differ materially from those in forward-looking statements. We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes in the future operating results over time. We believe that our assumptions are based upon reasonable data derived from and known about our business and operations. No assurances are made that actual results of operations or the results of our future activities will not differ materially from our assumptions. Factors that could cause differences include, but are not limited to, expected market demand for our products, fluctuations in pricing for materials, and competition.

Business Overview

We are a development stage medical device company developing a proprietary biomedical signal processing technology platform to extract information from physiologic signals. Our initial emphasis is on providing intracardiac signal information to electrophysiologists during EP studies and catheter ablation of AF and VT. Our first product is the PURE (Precise Uninterrupted Real-time evaluation of Electrograms) EP™ System, a surface electrocardiogram and intracardiac multichannel recording and analysis system that acquires, processes and displays electrocardiograms and electrograms required during electrophysiology studies and catheter ablation procedures.

The PURE EP System is designed to assist electrophysiologists in making clinical decisions in real-time by providing information that, we believe, is not always easily obtained, if at all, from any other equipment presently used in electrophysiology labs.  The PURE EP System’s ability to minimize noise and artifacts and acquire high fidelity cardiac signals will potentially increase these signals’ diagnostic value, and therefore offer improved accuracy and efficiency of the EP studies and related procedures.  We are developing signal processing tools within the PURE EP System. We believe that these will assist electrophysiologists in further differentiating true signals from noise and will provide guidance in identifying ablation targets.

Catheter ablation for many arrhythmias have high success rates; however, more complex or long-standing examples of the disease often require multiple procedures (each typically lasting from 3-6 hours), evidencing the need for additional research and technology to diagnose and treat these cases. Consequently, ablating AF and VT has been regarded as being extremely difficult. Therefore, access to these procedures has traditionally been limited to being performed by only the most well-trained cardiologists; however, advancements in new technologies and techniques show a strong growth rate for these procedures.

Our overall goal is to establish our proprietary biomedical signal processing technology as a new platform in the electrophysiology market that will have the following advantages over the electrophysiology recording systems currently available on the market:

● Precise, uninterrupted, real-time evaluations of electrograms (PURE EP™);

● Higher quality cardiac signal acquisition for accurate and more efficient electrophysiology studies and catheter ablation procedures to help reduce costs and length of procedures;

22

● Reliable display of information to better determine precise ablation targets, strategy and end point of procedures with the objective of reducing the need for multiple procedures;

● A device that can be fully integrated into existing electrophysiology lab environments.

If we are able to develop our product as designed, we believe that the PURE EP System and its signal processing tools will contribute to an increase in the number of procedures performed in each electrophysiology lab and possibly improved patient outcomes.

Our significant recent achievements to date include:

● On January 9, 2018, we announced that we have partnered with Charles Austin and JK Advisors in preparation of the commercial launch of our PURE EP System.

● On January 10, 2018, Dr. Asirvatham and his team performed our eleventh pre-clinical study at Mayo Clinic in Rochester, Minnesota.

● On February 22, 2018, we announced that we have partnered with Focus Marketing to assist our commercial team in preparation of our launch of our PURE EP System.

● On March 20, 2018, we announced that we have formed an Advisory Board to advise the leadership of BioSig on a range of subjects, including strategy, marketing, government affairs, partnerships, mergers and acquisitions, intellectual property, and capital markets.

● On March 28, 2018, we announced that we have filed our 510(k) application to the U.S. Food and Drug Administration (FDA) for our first product, PURE EP™ System.

● On May 9, 2018, we filed one “omnibus” hardware and software patent application with multiple claim sets, and a multiple feature-set graphical user interface (“GUI”) design patent, with detailed technical descriptions across multiple BioSig elements of novelty.

● On June 14, 2018, Dr. Asirvatham and his team performed our twelfth pre-clinical study at Mayo Clinic in Rochester, Minnesota.

We have conducted a total of thirteen pre-clinical studies to date with the PURE EP™ System prototype. We conducted our first three pre-clinical studies in 2015 at Mayo Clinic in Rochester, Minnesota.  We have continued additional pre-clinical studies as part of an advanced research program since June 2016 at Mayo Clinic in Rochester, Minnesota. We also conducted one pre-clinical study at the Mount Sinai Hospital in New York, NY with emphasis on the VT model.

In the third quarter of 2017, in collaboration with Health Research International, we conducted a detailed survey of U.S. electrophysiologists to gather opinions on the main features of the PURE EP System.

We intend to continue further pre-clinical studies at Mayo Clinic and we intend to conduct a pre-clinical study at the Cardiac Arrhythmia Center at the University of California at Los Angeles.  We intend to conduct further pre-clinical studies, and research studies. The main objective of these studies is to evaluate various findings and to  demonstrate the preclinical potential of the PURE EP System.

We have initiated technology development with Minnetronix, a medical technology and innovation company, and engaged Quintain Project Solutions LLC as the manufacturing project management leader for the PURE EP System – implementing steps for obtaining 510(k) clearance from the U.S. Food and Drug Administration for the PURE EP System.

23

We believe that by the conclusion of 2018, we will have obtained 510(k) marketing clearance from the FDA and will be able to commence marketing and commercialization of the PURE EP System. Our ability to achieve the aforementioned milestones will be principally determined by our ability to obtain necessary financing and regulatory approvals, among other factors.

We have chosen and are working with the National Standards Authority of Ireland (NSAI) as our Notified Body to obtain the CE Mark. CE marking is a mandatory approval for medical devices sold in Europe and Canada.  We plan on submitting for CE Mark in 2019.

Because we are a development stage company, with our initial product under development, we currently do not have any customers. We anticipate that our initial customers will be hospitals and other health care facilities that operate electrophysiology labs.

Results of Operations

We anticipate that our results of operations will fluctuate for the foreseeable future due to several factors, such as the progress of our research and development efforts and the timing and outcome of regulatory submissions. Due to these uncertainties, accurate predictions of future operations are difficult or impossible to make.

Three Months Ended June 30, 2018 Compared to Three Months Ended June 30, 2017

Revenues and Cost of Goods Sold. We had no revenues or cost of goods sold during the three months ended June, 2018 and 2017.

Research and Development Expenses. Research and development expenses for the three months ended June 30, 2018 were $1,449,508, an increase of $110,469, or 8.2%, from $1,339,039 for the three months ended June 30, 2017. This increase is primarily due to additional personnel, consulting work and stock based compensation during the current quarter as compared to the three months ended June 30, 2017, net with reduction in design work. Research and development expenses were comprised of the following:

Three months ended:

	June 30, 2018		June 30, 2017
Salaries and equity compensation	$	1,007,072	$	291,320
Consulting expenses		270,209		157,140
Clinical studies and design work		126,480		845,294
Travel, supplies, other		45,747		45,285
Total	$	1,449,508	$	1,339,039

Stock based compensation for research and development personnel was $493,352 and $8,020 for the three months ended June 30, 2018 and 2017, respectively.

General and Administrative Expenses. General and administrative expenses for the three months ended June 30, 2018 were $4,314,552, an increase of $2,638,216, or 157.4%, from $1,676,336 incurred in the three months ended June 30, 2017. This increase is primarily due to an increase in employees in the current period as compared to the same period in the prior year and additional service provider fees paid.

Payroll related expenses increased to $654,841 in the current period from $465,012 for the three months ended June 30, 2017, an increase of $189,829.  The increase was due to added staff in 2018 for commercialization, support personnel and a full time Chief Financial Officer in 2018.  We incurred $2,797,961 in stock based compensation in connection with the vesting of stock and stock options issued to board members, officers, employees and consultants for the three months ended June 30, 2018 as compared to $514,093 in stock based compensation for the same period in 2017.

24

Professional services for the three months ended June 30, 2018 totaled $27,068, a decrease of $120,731, or 81.7%, over the $147,799 recognized for the three months ended June 30, 2017. Of professional services, legal fees totaled $4,918 for the three months ended June 30, 2018, a decrease of $128,131, or 96.3, from $133,049 incurred for the three months ended June 30, 2017.  The primary decrease was due to reduction in previous years incurred legal fees cancelled and less legal assistance in 2018.  Accounting fees incurred in the three months ended June 30, 2018 amounted to $22,150, an increase of $7,400, or 50.7%, from $14,750 incurred in same period last year.  The increase in accounting fees was primarily due registration statements in 2018. 

Consulting, public and investor relations fees for the three months ended June 30, 2018 were $289,846 as compared to $364,144 incurred for the three months ended June 30, 2017. The decrease in consulting and investor relations fees during the three months ended June 30, 2018 relate to our internal continued efforts to develop our recognition throughout the medical industry in an effective manner.

Travel, meals and entertainment costs for the three months ended June 30, 2018 were $128,881, an increase of $28,241, or 28.1%, from $100,640 incurred in the three months ended June 30, 2017. Travel, meals and entertainment costs include travel related to business development and financing. Rent for the three months ended June 30, 2018 totaled $42,216, an increase of $10,457 or 32.9%, from $31,759 incurred in three months ended June 30, 2017. The increase in 2018 as compared to 2017 is due primarily expanding our Los Angeles office and adding an administrative center in Austin, Texas.  

Depreciation Expense. Depreciation expense for the three months ended June 30, 2018 totaled $2,926 a decrease of $71, or 2.4%, over the expense of $2,997 incurred in the three months ended June 30 2017, as a result of the  aging of office computers and other equipment.

Loss on change in fair values of derivatives.  Beginning in March 2015, we were required to estimate the fair value of the embedded beneficial conversion features of our issued Series C and Series D Preferred Stock and certain warrants with reset (anti-dilution) provisions.  During the three months ended June 30, 2017, we incurred a loss on change in fair values of these derivatives of $60,244. On January 1, 2018, we adopted ASU 2017-11 and according reclassified the fair value of the reset provisions embedded in previously issued Series C Preferred stock, Series D Preferred stock and certain warrants with embedded anti-dilutive provisions from liability to equity in aggregate of $3,044,162 and are no longer required to treat certain embedded beneficial conversion features or reset (anti-dilution) provisions as liabilities.

Preferred Stock Dividend. Preferred stock dividend for the three months ended June 30, 2018 totaled $280,867, an increase of $258,004, or 1,128.5% from $22,863 incurred during the three months ended June 30, 2017. Preferred stock dividends are primarily related to the issuance of our Series C, D and E Preferred Stock from 2013 through 2018.  The significant increase in 2018 as compared to 2017 is the result of conversions of the Series D Preferred Stock and the payment, upon conversion, of a required minimum dividend of $405 per share of Series D Preferred Stock for the first three years of issuance.  

Net Loss available to common shareholders. As a result of the foregoing, net loss available to common shareholders for the three months ended June 30, 2018 was $6,047,590 compared to a net loss of $3,101,425 for the three months ended June 30, 2017.

Six Months Ended June 30, 2018 Compared to Six Months Ended June 30, 2017

Revenues and Cost of Goods Sold. We had no revenues or cost of goods sold during the six months ended June 30, 2018 and 2017.

Research and Development Expenses. Research and development expenses for the six months ended June 30, 2018 were $2,311,928, a decrease of $365,715, or 13.7%, from $2,677,643 for the six months ended June 30, 2017. This decrease is primarily due acquired research and development as we develop our proprietary technology platform in 2017 of $543,927 and reduction in outside design work, net with additional personnel and consulting costs. Research and development expenses were comprised of the following:

25

Six months ended:

	June 30, 2018		June 30, 2017
Salaries and equity compensation	$	1,294,921	$	552,042
Consulting expenses		401,810		248,685
Clinical studies and design work		545,805		1,241,595
Acquired research and development		-		543,927
Travel, supplies, other		69,392		91,394
Total	$	2,311,928	$	2,677,643

Stock based compensation for research and development personnel was $857,440 and $21,124 for the six months ended June 30, 2018 and 2017, respectively.

General and Administrative Expenses. General and administrative expenses for the six months ended June 30, 2018 were $6,086,348, an increase of $2,852,671, or 88.2%, from $3,233,677 incurred in the six months ended June 30, 2017. This increase is primarily due to an increase in employees in the current period as compared to the same period in the prior year and additional service provider fees paid.

Payroll related expenses increased to $1,189,468 in the current period from $744,592 for the six months ended June 30, 2017, an increase of $444,876.  The increase was due to added staff in 2018 for commercialization, support personnel and a full time Chief Financial Officer in 2018.  We incurred $3,088,082 in stock based compensation in connection with the vesting of stock and stock options issued to board members, officers, employees and consultants for the six months ended June 30, 2018 as compared to $1,061,735 in stock based compensation for the same period in 2017.

Professional services for the six months ended June 30, 2018 totaled $235,990, an increase of $5,640, or 2.4%, over the $230,350 recognized for the six months ended June 30, 2017. Of professional services, legal fees totaled $166,840 for the six months ended June 30, 2018, a decrease of $8,760, or 5.0%, from $175,600 incurred for the six months ended June 30, 2017.  Accounting fees incurred in the six months ended June 30, 2018 amounted to $69,150, an increase of $14,400, or 26.3%, from $54,750 incurred in same period last year.  The increase in accounting fees was primarily due registration statements costs in 2018. 

Consulting, public and investor relations fees for the six months ended June 30, 2018 were $821,896 as compared to $857,810 incurred for the six months ended June 30, 2017. The decrease in consulting and investor relations fees during the six months ended June 30, 2018 relate to our internal continued efforts to develop our recognition throughout the medical industry in an effective manner.

Travel, meals and entertainment costs for the six months ended June 30, 2018 were $219,802, an increase of $54,902, or 33.3%, from $164,900 incurred in the six months ended June 30, 2017. Travel, meals and entertainment costs include travel related to business development and financing. Rent for the six months ended June 30, 2018 totaled $77,069, an increase of $13,660 or 21.5%, from $63,409 incurred in six months ended June 30, 2017.  The increase in 2018 as compared to 2017 is due primarily expanding our Los Angeles office and adding an administrative center in Austin, Texas.  

Depreciation Expense. Depreciation expense for the six months ended June 30, 2018 totaled $5,829 a decrease of $237, or 3.9%, over the expense of $6,066 incurred in the six months ended June 30, 2017, as a result of the  aging of office computers and other equipment.

26

Loss on change in fair values of derivatives.  Beginning in March 2015, we were required to estimate the fair value of the embedded beneficial conversion features of our issued Series C and Series D Preferred Stock and certain warrants with reset (anti-dilution) provisions.  During the six months ended June 30, 2017, we incurred a loss on change in fair values of these derivatives of $433,855. On January 1, 2018, we adopted ASU 2017-11 and according reclassified the fair value of the reset provisions embedded in previously issued Series C Preferred stock, Series D Preferred stock and certain warrants with embedded anti-dilutive provisions from liability to equity in aggregate of $3,044,162 and are no longer required to treat certain embedded beneficial conversion features or reset (anti-dilution) provisions as liabilities.

Preferred Stock Dividend. Preferred stock dividend for the six months ended June 30, 2018 totaled $585,913, an increase of $539,305, or 1,157.1% from $46,608 incurred during the six months ended June 30, 2017. Preferred stock dividends are primarily related to the issuance of our Series C, D and E Preferred Stock from 2013 through 2018.  The significant increase in 2018 as compared to 2017 is the result of conversions of the Series D Preferred Stock and the payment, upon conversion, of a required minimum dividend of $405 per share of Series D Preferred Stock for the first three years of issuance.  

Net Loss available to common shareholders. As a result of the foregoing, net loss available to common shareholders for the six months ended June 30, 2018 was $8,989,670 compared to a net loss of $6,397,795 for the six months ended June 30, 2017.

Liquidity and Capital Resources

Six Months Ended June 30, 2018 Compared to six Months Ended June 30, 2017

As of June 30, 2018, we had a working capital of $3,314,017, comprised of cash of $3,673,137 and prepaid expenses of $166,112, which was offset by $219,495 of accounts payable and accrued expenses and accrued dividends on preferred stock issuances of $305,737.  For the six months ended June 30, 2018, we used $4,797,308 of cash in operating activities and $266,444 of cash in investing activities.

Cash provided by financing activities totaled $7,189,310, comprised of proceeds from the sale of our common stock of $5,268,445, the sale of our Series E preferred stock of $1,492,969 and proceeds from exercise of warrants of $427,896. In the comparable period in 2017, our aggregate cash provided by financing activities totaled $3,279,342 comprised proceeds from the sale of our common stock and common stock subscriptions. At June 30, 2018, we had cash of $3,673,137 compared to $1,547,579 at December 31, 2017. Our cash is held in bank deposit accounts. At June 30, 2018 and December 31, 2017, we had no convertible debentures outstanding.

Cash used in operations for the six months ended June 30, 2018 and 2017 was $4,797,308 and $3,452,958, respectively, which represent cash outlays for research and development and general and administrative expenses in such periods. The increase in cash outlays principally resulted from additional in operating costs and general and administrative expenses and a decrease of our outstanding accounts payable by $285,082.

We used $266,444 cash for investing activities for the six months ended June 30, 2018, compared to $1,620 for the six months ended June 30, 2017.  For the current period, we purchased computer and other equipment of $8,211 and paid $258,233 in patent costs as compared to $1,620 in 2017 to purchase computer and other equipment.

In their report dated February 27, 2018, our independent registered public accounting firm stated at December 31, 2017, there is substantial doubt about our ability to continue as a going concern. Our ability to continue as a going concern is an issue raised due to our net losses and negative cash flows from operations since inception and our expectation that these conditions will continue for the foreseeable future. In addition, we will require additional financing to fund future operations.

27

Further, we do not have any commercial products available for sale and have not generated revenues to date, and there is no assurance that, if approval of our products is received, we will be able to generate cash flow to fund operations. In addition, there can be no assurance that our research and development will be successfully completed or that any product will be approved or commercially viable. Our ability to continue as a going concern is subject to our ability to obtain necessary funding from outside sources, including obtaining additional funding from the sale of our securities, obtaining loans from various financial institutions or being awarded grants from government agencies, where possible. Our continued net operating losses increase the difficulty in meeting such goals and there can be no assurances that such methods will prove successful.

We expect to incur losses from operations for the near future. We expect to incur increasing research and development expenses, including expenses related to clinical trials. We expect that our general and administrative expenses will increase in the future as we expand our business development, add infrastructure and incur additional costs related to being a public company, including incremental audit fees, investor relations programs and increased professional services.

Our future capital requirements will depend on a number of factors, including the progress of our research and development of product candidates, the timing and outcome of regulatory approvals, the costs involved in preparing, filing, prosecuting, maintaining, defending and enforcing patent claims and other intellectual property rights, the status of competitive products, the availability of financing and our success in developing markets for our product candidates. We believe our existing cash will not be sufficient to fund our operating expenses and capital equipment requirements. We anticipate we will need approximately $8 million in addition to our current cash on hand to fund our operating expenses and capital equipment requirements for the next 12 months.

We will have to raise additional funds to continue our operations and, while we have been successful in doing so in the past, there can be no assurance that we will be able to do so in the future. Our continuation as a going concern is dependent upon our ability to obtain necessary additional funds to continue operations and the attainment of profitable operations.

Future financing may include the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. Even if we are able to raise the funds required, it is possible that we could incur unexpected costs and expenses or experience unexpected cash requirements that would force us to seek alternative financing. Furthermore, if we issue additional equity or debt securities, existing holders of our securities may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of our securities.

If additional financing is not available or is not available on acceptable terms, we may be required to delay, reduce the scope of or eliminate our research and development programs, reduce our commercialization efforts or obtain funds through arrangements with collaborative partners or others that may require us to relinquish rights to certain product candidates that we might otherwise seek to develop or commercialize independently.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Transactions with Related Parties

The Company’s President and shareholders have advanced funds to the Company for working capital purposes since the Company’s inception in February 2009.  No formal repayment terms or arrangements exist and the Company is not accruing interest on these advances. The net amount of outstanding advances at June 30, 2018 and December 31, 2017 was $-0-.

At June 30, 2018 and December 31, 2017, the Company had reimbursable travel and other related expenses due related parties of $12,648 and $27,375, respectively.

28

On November 1, 2017, in connection with Mr. Filler joining the Company’s Board of Directors,  the Company entered into a Master Services Agreement (the “Agreement”) with 3LP Advisors LLC (d/b/a Sherpa Technology Group) (“Sherpa”) and an initial statement of work (the “SOW”), pursuant to which Sherpa will develop, execute and expand the Company’s intellectual property strategy over the course of the next approximately 18 months by evaluating the business and technology landscape in which the Company operates, and charting and executing a strategy of patent filing and licensing. In connection with the SOW, the Company will pay Sherpa fee of (i) $200,000 in cash, of which $25,000 will be paid on January 1, 2018, with the remainder to be paid upon completion of certain objectives, and (ii) a ten-year option to purchase up to 300,000 of the Company’s common stock at an exercise of $1.50 per share of common stock, of which 150,000 options vest immediately and 150,000 options are performance conditioned.  Mr. Filler is the general counsel and partner of Sherpa. 

During the three months and six months ended June 30, 2018 and 2017, the Company paid $102,219 and $277,219 as patent costs, consulting fees and expense reimbursements. As of June 30, 2018 and December 31, 2017, there was an unpaid balance of $0.

Critical Accounting Policies and Estimates

Our discussion and analysis of our financial condition and results of operations are based on our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities and expenses. We evaluate our estimates and judgments on an ongoing basis. We base our estimates on historical experience and on assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our financial statements.

Research and Development.

We account for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred.

Stock Based Compensation.

All stock-based payments to employees and to nonemployee directors for their services as directors consisted of grants of restricted stock and stock options, which are measured at fair value on the grant date and recognized in the statements of operations as compensation expense over the relevant vesting period. Restricted stock payments and stock-based payments to nonemployees are recognized as an expense over the period of performance.

Such payments are measured at fair value at the earlier of the date a performance commitment is reached or the date performance is completed. In addition, for awards that vest immediately and are non-forfeitable, the measurement date is the date the award is issued.

On October 29, 2014, our common stock commenced trading on OTCQB under the symbol “BSGM.”  Fair value is typically determined by the closing price of our common stock on the date of the award.

29

Income Taxes.

Deferred income tax assets and liabilities are determined based on the estimated future tax effects of net operating loss and credit carryforwards and temporary differences between the tax basis of assets and liabilities and their respective financial reporting amounts measured at the current enacted tax rates. We record an estimated valuation allowance on our deferred income tax assets if it is not more likely than not that these deferred income tax assets will be realized. We recognize a tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not required under Regulation S-K for “smaller reporting companies.”

ITEM 4.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As required under Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2018. Based upon that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures as of June 30, 2018 were not effective, for the same reasons as previously disclosed under Item 9A. “Controls and Procedures” in our Annual Report on Form 10-K for our fiscal year ended December 31, 2017. 

Changes in Internal Controls over Financial Reporting

There have been no changes in our internal controls over financial reporting (as defined in Rule 13a-15(f) and 15d-(f) of the Exchange Act) that occurred during the last fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

30

PART II – OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

None.

ITEM 1A.  RISK FACTORS

Not required under Regulation S-K for “smaller reporting companies.”

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

On April 30, 2018, we entered into a Unit Purchase Agreement (the “Purchase Agreement”) with certain accredited investors (the “Investors”), pursuant to which the Company sold to the Investors an aggregate of 3,193,004 shares of  the Company’s common stock  and warrants to purchase an aggregate of 1,596,506 shares of the Company’s common stock, at an exercise price of $1.75 per share, in exchange for aggregate consideration of $4,788,460, net of transaction expenses of $1,046 (the “April 2018 private placement”). The securities sold in this offering were not registered under the Securities Act of 1933, as amended, or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act of 1933, as amended, provided by Section 4(2) and Regulation D (Rule 506) under the Securities Act of 1933, as amended.

On May 11, 2018, we entered into a Unit Purchase Agreement (the “Purchase Agreement”) with an accredited investor (the “Investor”), pursuant to which the Company sold to the Investor 140,000 shares of  the Company’s common stock  and warrants to purchase an aggregate of 70,000 shares of the Company’s common stock, at an exercise price of $1.75 per share, in exchange for aggregate consideration of $209,985, net of transaction expenses of $15 (the “April 2018 private placement”). The securities sold in this offering were not registered under the Securities Act of 1933, as amended, or the securities laws of any state, and were offered and sold in reliance on the exemption from registration under the Securities Act of 1933, as amended, provided by Section 4(2) and Regulation D (Rule 506) under the Securities Act of 1933, as amended.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  MINE SAFETY DISCLOSURES

None.

ITEM 5.  OTHER INFORMATION

None.

31

ITEM 6.  EXHIBITS

31.01	Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.02	Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.01	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101 INS	XBRL Instance Document
101 SCH	XBRL Taxonomy Extension Schema Document
101 CAL	XBRL Taxonomy Calculation Linkbase Document
101 DEF	XBRL Taxonomy Extension Definition Linkbase Document
101 LAB	XBRL Taxonomy Labels Linkbase Document
101 PRE	XBRL Taxonomy Presentation Linkbase Document

32

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.

	BIOSIG TECHNOLOGIES, INC.
Date: July 27, 2018	By:	/s/ KENNETH L. LONDONER
		Kenneth L. Londoner
		Chairman & Chief Executive Officer (Principal Executive Officer)
Date: July 27, 2018	By:	/s/ STEVEN CHAUSSY
		Steven Chaussy
		Chief Financial Officer (Principal Accounting Officer)

33

EX-31.01

EXHIBIT 31.01

CERTIFICATION

I, Kenneth L. Londoner, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of BioSig Technologies, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: July 27, 2018

/s/ KENNETH L. LONDONERKenneth L. Londoner Chairman & Chief Executive Officer (Principal Executive Officer)

EX-31.02

EXHIBIT 31.02

CERTIFICATION

I, Steven Chaussy, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of BioSig Technologies, Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

Date: July 27, 2018

/s/ STEVEN CHAUSSYSteven Chaussy Chief Financial Officer (Principal Accounting Officer)

EX-32.01

Exhibit 32.01

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Kenneth L. Londoner, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of BioSig Technologies, Inc. on Form 10-Q for the fiscal quarter ended June 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in this Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of BioSig Technologies, Inc.

	By:	/s/ KENNETH L. LONDONER
Date: July 27, 2018	Name:	Kenneth L. Londoner
	Title:	Executive Chairman (Principal Executive Officer)

I, Steven Chaussy, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of BioSig Technologies, Inc. on Form 10-Q for the fiscal quarter ended June 30, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in this Quarterly Report on Form 10-Q fairly presents in all material respects the financial condition and results of operations of BioSig Technologies, Inc.

	By:	/s/ STEVEN CHAUSSY
Date: July 27, 2018	Name:	Steven Chaussy
	Title:	Chief Financial Officer (Principal Accounting Officer)

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
Document and Entity Information [Abstract]
Entity Registrant Name	BIOSIG TECHNOLOGIES, INC.
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		37,344,892
Amendment Flag	false
Entity Central Index Key	0001530766
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Smaller Reporting Company
Entity Well-known Seasoned Issuer	No
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2

XML

CONDENSED BALANCE SHEETS - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Current assets:
Cash	$ 3,673,137	$ 1,547,579
Prepaid expenses	166,112	116,938
Total current assets	3,839,249	1,664,517
Property and equipment, net	21,098	18,716
Patents, net	258,233	0
Deposits	59,208	17,084
Total assets	4,177,788	1,700,317
Current liabilities:
Accounts payable and accrued expenses, including $27,375 and $15,755 to related parties as of December 31, 2017 and 2016, respectively	219,495	473,098
Dividends payable	305,737	447,901
Warrant liability	0	2,358,240
Derivative liability	0	685,922
Total current liabilities	525,232	3,965,161
Convertible Preferred Stock	575,000	985,000
Stockholders’ equity (deficit)
Preferred stock
Common stock, $0.001 par value, authorized 200,000,000 shares, 29,321,204 and 22,588,184 issued and outstanding as of December 31, 2017 and 2016, respectively	36,709	29,321
Additional paid in capital	64,925,227	53,215,635
Commitments and contingencies	0	29,985
Accumulated deficit	(61,884,381)	(56,524,786)
Total stockholders’ deficit	3,077,556	(3,249,844)
Total liabilities and stockholders’ deficit	4,177,788	1,700,317
Series D Preferred Stock [Member]
Stockholders’ equity (deficit)
Preferred stock	0	1
Series E Preferred Stock [Member]
Stockholders’ equity (deficit)
Preferred stock	$ 1	$ 0

XML

CONDENSED BALANCE SHEETS (Parentheticals) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Accounts payable and accrued expenses, related parties (in Dollars)	$ 12,648	$ 27,375
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000,000	1,000,000
Common stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	36,709,302	29,321,204
Common stock, shares outstanding	36,709,302	29,321,204
Series C Preferred Stock [Member]
Preferred stock, shares issued	575	985
Preferred stock, shares outstanding	575	985
Preferred stock, liquidation preference (in Dollars)	$ 575,000	$ 985,000
Preferred stock, shares authorized	4,200	4,200
Series A Preferred Stock [Member]
Preferred stock, shares authorized	200	200
Series B Preferred Stock [Member]
Preferred stock, shares authorized	600	600
Series D Preferred Stock [Member]
Preferred stock, liquidation preference (in Dollars)	$ 0	$ 2,001,000
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,400	1,400
Preferred Stock, shares issued	0	1,334
Preferred Stock, shares outstanding	0	1,334
Series E Preferred Stock [Member]
Preferred stock, liquidation preference (in Dollars)	$ 1,500,000	$ 0
Preferred stock, par value (in Dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	1,000	1,000
Preferred Stock, shares issued	1,000	0
Preferred Stock, shares outstanding	1,000	0

XML

CONDENSED STATEMENTS OF OPERATIONS (unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Operating expenses:
Research and development	$ 1,449,508	$ 1,339,039	$ 2,311,928	$ 2,677,643
General and administrative	4,314,552	1,676,336	6,086,348	3,233,677
Depreciation	2,926	2,997	5,829	6,066
Total operating expenses	5,766,986	3,018,372	8,404,105	5,917,386
Loss from operations	(5,766,986)	(3,018,372)	(8,404,105)	(5,917,386)
Other income (expense):
Loss on change in fair value of derivatives	0	(60,244)	0	(433,855)
Interest income	263	54	348	54
Loss before income taxes	(5,766,723)	(3,078,562)	(8,403,757)	(6,351,187)
Income taxes (benefit)	0	0	0	0
Net loss	(5,766,723)	(3,078,562)	(8,403,757)	(6,351,187)
Preferred stock dividend	(280,867)	(22,863)	(585,913)	(46,608)
NET LOSS AVAILABLE TO COMMON STOCKHOLDERS	$ (6,047,590)	$ (3,101,425)	$ (8,989,670)	$ (6,397,795)
Net loss per common share, basic and diluted (in Dollars per share)	$ (0.18)	$ (0.12)	$ (0.28)	$ (0.27)
Weighted average number of common shares outstanding, basic and diluted (in Shares)	34,518,208	25,131,486	32,243,961	24,097,424

XML

CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) - 6 months ended Jun. 30, 2018 - USD ($)	Exercise of Warrants [Member] Preferred Stock [Member] Series D Preferred Stock [Member]	Exercise of Warrants [Member] Preferred Stock [Member] Series E Preferred Stock [Member]	Exercise of Warrants [Member] Common Stock [Member]	Exercise of Warrants [Member] Additional Paid-in Capital [Member]	Exercise of Warrants [Member] Common Stock Subscription [Member]	Exercise of Warrants [Member] Retained Earnings [Member]	Exercise of Warrants [Member]	Series C Preferred Stock [Member] Preferred Stock [Member] Series D Preferred Stock [Member]	Series C Preferred Stock [Member] Preferred Stock [Member] Series E Preferred Stock [Member]	Series C Preferred Stock [Member] Common Stock [Member]	Series C Preferred Stock [Member] Additional Paid-in Capital [Member]	Series C Preferred Stock [Member] Common Stock Subscription [Member]	Series C Preferred Stock [Member] Retained Earnings [Member]	Series C Preferred Stock [Member]	Settlement of Preferred Stock [Member] Preferred Stock [Member] Series D Preferred Stock [Member]	Settlement of Preferred Stock [Member] Preferred Stock [Member] Series E Preferred Stock [Member]	Settlement of Preferred Stock [Member] Common Stock [Member] Series D Preferred Stock [Member]	Settlement of Preferred Stock [Member] Common Stock [Member] Series C Preferred Stock [Member]	Settlement of Preferred Stock [Member] Additional Paid-in Capital [Member] Series D Preferred Stock [Member]	Settlement of Preferred Stock [Member] Additional Paid-in Capital [Member] Series C Preferred Stock [Member]	Settlement of Preferred Stock [Member] Common Stock Subscription [Member] Series D Preferred Stock [Member]	Settlement of Preferred Stock [Member] Common Stock Subscription [Member] Series C Preferred Stock [Member]	Settlement of Preferred Stock [Member] Retained Earnings [Member] Series D Preferred Stock [Member]	Settlement of Preferred Stock [Member] Retained Earnings [Member] Series C Preferred Stock [Member]	Settlement of Preferred Stock [Member] Series D Preferred Stock [Member]	Settlement of Preferred Stock [Member] Series C Preferred Stock [Member]	Series D Preferred Stock [Member] Preferred Stock [Member] Series D Preferred Stock [Member]	Series D Preferred Stock [Member] Preferred Stock [Member] Series E Preferred Stock [Member]	Series D Preferred Stock [Member] Common Stock [Member]	Series D Preferred Stock [Member] Additional Paid-in Capital [Member]	Series D Preferred Stock [Member] Common Stock Subscription [Member]	Series D Preferred Stock [Member] Retained Earnings [Member]	Series D Preferred Stock [Member]	Preferred Stock [Member] Series D Preferred Stock [Member]	Preferred Stock [Member] Series E Preferred Stock [Member]	Common Stock [Member]	Additional Paid-in Capital [Member]	Common Stock Subscription [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2017																																		$ 1		$ 29,321	$ 53,215,635	$ 29,985	$ (56,524,786)	$ (3,249,844)
Balance (in Shares) at Dec. 31, 2017																																		1,334	0	29,321,204				29,321,204
Fair value of warrant issued to acquire research and development																																		$ 0	$ 0	$ 0	0	0	3,044,162	$ 3,044,162
Common stock issued for services																																		$ 0	$ 0	$ 1,450	2,530,050	0	0	2,531,500
Common stock issued for services (in Shares)																																		0	0	1,450,000
Sale of common stock																																		$ 0	$ 0	$ 3,533	5,294,897	(29,985)	0	5,268,445
Sale of common stock (in Shares)																																		0	0	3,533,004
Common stock issued upon exercise of warrants, conversion of preferred stock and accrued dividends	$ 0	$ 0	$ 285	$ 427,611	$ 0	$ 0	$ 427,896	$ 0	$ 0	$ 273	$ 409,727	$ 0	$ 0	$ 410,000	$ 0	$ 0	$ 396	$ 117	$ 539,875	$ 187,689	$ 0	$ 0	$ 0	$ 0	$ 540,271	$ 187,806	$ (1)	$ 0	$ 1,334	$ (1,333)	$ 0	$ 0	$ 0
Common stock issued upon exercise of warrants, conversion of preferred stock and accrued dividends (in Shares)		0	285,264					0	0	273,338					0	0	395,912	116,580									(1,334)	0	1,334,000
Sale of Series D preferred stock																																		$ 0	$ 1	$ 0	1,492,968	0	0	1,492,969
Sale of Series D preferred stock (in Shares)																																		0	1,000	0
Stock based compensation																																		$ 0	$ 0	$ 0	1,414,021	0	0	1,414,021
Preferred Stock dividend																																		0	0	0	(585,913)	0	0	(585,913)
Net loss																																		$ 0	0	0	0	0	(8,403,757)	(8,403,757)
Balance at Jun. 30, 2018																																			$ 1	$ 36,709	$ 64,925,227	$ 0	$ (61,884,381)	$ 3,077,556
Balance (in Shares) at Jun. 30, 2018																																			1,000	36,709,302				36,709,302

XML

CONDENSED STATEMENT OF STOCKHOLDERS' EQUITY (DEFICIT) (Parentheticals)	Jun. 30, 2018 $ / shares
Common Stock [Member] | Series D Preferred Stock [Member]
Conversion of preferred stock	$ 1.36
Exercise of Warrants [Member] | Preferred Stock [Member] | Series D Preferred Stock [Member]
Conversion of preferred stock	1.50
Series C Preferred Stock [Member] | Common Stock [Member]
Common stock issued	1.50
Settlement of Preferred Stock [Member] | Common Stock [Member] | Series C Preferred Stock [Member]
Conversion of preferred stock	1.61
Series D Preferred Stock [Member] | Preferred Stock [Member] | Series D Preferred Stock [Member]
Common stock issued	$ 1.50

XML

CONDENSED STATEMENTS OF CASH FLOWS (unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (8,403,757)	$ (6,351,187)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation	5,829	6,066
Equipment distribution as officer compensation	0	3,210
Change in derivative liabilities	0	433,855
Equity based compensation	3,945,521	1,082,858
Fair value of issued warrant to acquire research and development	0	543,927
Changes in operating assets and liabilities:
Prepaid expenses	(49,174)	(40,759)
Payment of long term deposit	(42,124)	0
Accounts payable	(254,457)	870,186
Deferred rent payable	854	(1,114)
Net cash used in operating activities	(4,797,308)	(3,452,958)
CASH FLOWS FROM INVESTING ACTIVITIES:
Payments of patent costs	(258,233)	0
Purchase of property and equipment	(8,211)	(1,620)
Net cash used in investing activity	(266,444)	(1,620)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from sale of common stock	5,268,445	3,039,372
Proceeds from sale of Series E preferred stock	1,492,969	0
Proceeds from exercise of warrants at $1.50 per share	427,896	0
Proceeds from common stock subscription	0	239,970
Net cash provided by financing activities	7,189,310	3,279,342
Net increase in cash and cash equivalents	2,125,558	(175,236)
Cash and cash equivalents, beginning of the period	1,547,579	1,055,895
Cash and cash equivalents, end of the period	3,673,137	880,659
Cash paid during the period for interest	0	0
Cash paid during the period for income taxes	0	0
Series C Preferred Stock [Member]
Non cash investing and financing activities:
Common stock issued upon conversion preferred stock and accrued dividends	597,806	88,991
Series D Preferred Stock [Member]
Non cash investing and financing activities:
Common stock issued upon conversion preferred stock and accrued dividends	540,271	0
Embedded Derivative Financial Instruments [Member]
Non cash investing and financing activities:
Reclassify of derivative liability to equity	0	15,676
Upon Adoption of ASU 2017-11 [Member]
Non cash investing and financing activities:
Reclassify of derivative liability to equity	$ 3,044,162	$ 0

XML

CONDENSED STATEMENTS OF CASH FLOWS (unaudited) (Parentheticals) - $ / shares	Jun. 30, 2018	May 01, 2018	Jun. 30, 2017
Exercise of warrants, per share	$ 1.50	$ 1.50	$ 1.50

XML

NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2018

Disclosure Text Block [Abstract]

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

NOTE 1 – NATURE OF OPERATIONS AND BASIS OF PRESENTATION

BioSig Technologies Inc. (the “Company”) was initially incorporated on February 24, 2009 under the laws of the State of Nevada and subsequently re-incorporated in the state of Delaware in 2011. The Company is principally devoted to improving the quality of cardiac recordings obtained during EP studies and catheter ablation procedures. The Company has not generated any revenue to date and consequently its operations are subject to all risks inherent in the establishment of a new business enterprise.

The unaudited condensed interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the instructions to Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.

The condensed balance sheet as of December 31, 2017 has been derived from audited financial statements.

Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of results that may be expected for the year ending December 31, 2018. These condensed financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2017 filed with the Company’s Form 10-K/A with the Securities and Exchange Commission on March 26, 2018.

XML

NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS

6 Months Ended

Jun. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Substantial Doubt about Going Concern [Text Block]

NOTE 2 – GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

As of June 30, 2018, the Company had cash of $3,673,137 and working capital of $3,314,017. The Company raised approximately $1,500,000 through the sale of Series E preferred stock and warrants, $5,300,000 through the sale of common stock and warrants and $428,000 from the exercise of previously issued warrants during the six months ended June 30, 2018 and approximately $900,000 subsequent to June 30, 2018 (See Note 13). During the six months ended June 30, 2018, the Company used net cash in operating activities of $4,797,308.  These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management believes that the Company has sufficient funds to meet its research and development and other funding requirements for at least the next 6 months.

The Company’s primary source of operating funds since inception has been cash proceeds from private placements of common and preferred stock. The Company has experienced net losses and negative cash flows from operations since inception and expects these conditions to continue for the foreseeable future. The Company will require additional financing to fund future operations. Further, the Company does not have any commercial products available for sale and there is no assurance that if approval of their products is received that the Company will be able to generate cash flow to fund operations. In addition, there can be no assurance that the Company’s research and development will be successfully completed or that any product will be approved or commercially viable.

Accordingly, the accompanying financial statements have been prepared in conformity with U.S. GAAP, which contemplates continuation of the Company as a going concern and the realization of assets and satisfaction of liabilities in the normal course of business. The carrying amounts of assets and liabilities presented in the financial statements do not necessarily purport to represent realizable or settlement values. The condensed financial statements do not include any adjustment that might result from the outcome of this uncertainty.

XML

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 3 –SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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 the recoverability and useful lives of long-lived assets, the fair value of the Company’s stock, stock-based compensation and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.

Fair Value of Financial Instruments

Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”) requires disclosure of the fair value of certain financial instruments. The carrying value of cash and cash equivalents, accounts payable and accrued liabilities as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

The Company follows Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) and Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”), which permits entities to choose to measure many financial instruments and certain other items at fair value.

Derivative Instrument Liability

The Company accounts for derivative instruments in accordance with ASC 815, which establishes accounting and reporting standards for derivative instruments and hedging activities, including certain derivative instruments embedded in other financial instruments or contracts and requires recognition of all derivatives on the balance sheet at fair value, regardless of hedging relationship designation. Accounting for changes in fair value of the derivative instruments depends on whether the derivatives qualify as hedge relationships and the types of relationships designated are based on the exposures hedged. At June 30, 2018 and December 31, 2017, the Company did not have any derivative instruments that were designated as hedges.

At June 30, 2018 and December 31, 2017, the Company had outstanding preferred stock and warrants that contained embedded derivatives. These embedded derivatives include certain conversion features and reset provisions (See Note 6 and Note 7).

Research and development costs

The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $1,449,508 and $2,311,928 for the three and six months ended June 30, 2018; and $1,339,039 and $2,677,643 for the three and six months ended June 30, 2017, respectively.

Net Income (loss) Per Common Share

The Company computes earnings (loss) per share under Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”). Net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year.  Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable.

The computation of basic and diluted loss per share as of June 30, 2018 and 2017 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.

Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share are as follows:

	June 30, 2018		June 30, 2017
Series C convertible preferred stock		383,333		670,000
Series E convertible preferred stock		1,000,000		-
Options to purchase common stock		8,745,319		8,245,190
Warrants to purchase common stock		13,546,521		11,019,913
Totals		23,675,173		19,935,103

Stock Based Compensation

The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period.

As of June 30, 2018, the Company had 8,745,319 options outstanding to purchase shares of common stock, of which 8,004,153 were vested.

As of December 31, 2017, there were outstanding stock options to purchase 8,510,319 shares of common stock, 7,347,486 shares of which were vested.

Income Taxes

The Company follows Accounting Standards Codification subtopic 740-10, Income Taxes (“ASC 740-10”) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability during each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods.

Deferred taxes are classified as non-current.

Patents, net

The Company capitalizes certain initial asset costs in connection with patent applications including registration, documentation and other professional fees associated with the application. Patent costs incurred prior to the Company’s U.S. Food and Drug Administration (“FDA”) 510 (k) application on March 28, 2018 were charged to research and development expense as incurred. Commencing upon patent approval, capitalized costs will be amortized to expense using the straight-line method over the lesser of the legal patent term or the estimated life of the product.

Registration Rights

On February 16, 2018, in connection with the Company’s private placement of Series E Preferred Stock and warrants, the Company also entered into a registration rights agreement (the “Registration Rights Agreement”) whereby the Company agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) within 90 days of the closing of the transactions contemplated by the Purchase Agreement (the “Filing Date”) covering the resale of (a) all shares of Common Stock Issuable upon conversion of the Preferred Shares, (b) all shares of Common Stock issuable upon exercise of the Warrants, (c) all other shares of Common Stock issued pursuant to any transaction documents which have been, or which may, from time to time be issued or become issuable to the Investors under the Transaction Documents (without regard to any limitation or restriction on purchases), and (d) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event (“Registrable Securities”), not then registered.  The Company will use its reasonable best efforts to keep the registrations statement effective pursuant to Rule 415 under the Securities Act until the earlier of (i) the date on which the Investors shall have sold all the Registrable Securities covered thereby and (ii) that date that all Registrable Securities may be sold pursuant to Rule 144 without any public information requirement or volume or manner of sale limitations. The Company has estimated the liability under the registration rights agreement at $-0- as of June 30, 2018.

Adoption of Accounting Standards

In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features.

When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception.

Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.

On January 1, 2018, the Company adopted ASU 2017-11 and according reclassified the fair value of the reset provisions embedded in previously issued Series C Preferred stock, Series D Preferred stock and certain warrants with embedded anti-dilutive provisions from liability to equity in aggregate of $3,044,162.

Recent Accounting Pronouncements

There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s financial position, results of operations or cash flows.

Subsequent Events

The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued.  Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed financial statements, except as disclosed.

XML

NOTE 4 - PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 4 – PROPERTY AND EQUIPMENT

Property and equipment as of June 30, 2018 and December 31, 2017 is summarized as follows:

	June 30, 2018			December 31, 2017
Computer equipment	$	91,518		$	87,059
Furniture and fixtures		16,726			12,975
Subtotal		108,244			100,034
Less accumulated depreciation		(87,146	)		(81,318	)
Property and equipment, net	$	21,098		$	18,716

Property and equipment are stated at cost and depreciated using the straight-line method over their estimated useful lives of 3 to 5 years. When retired or otherwise disposed, the related carrying value and accumulated depreciation are removed from the respective accounts and the net difference less any amount realized from disposition, is reflected in earnings.

Depreciation expense was $2,926 and $5,829 for the three and six months ended June 30, 2018; and $2,997 and $6,066 for the three and six months ended June 30, 2017, respectively.

XML

NOTE 5 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 5 – ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses at June 30, 2018 and December 31, 2017 consist of the following:

	June 30, 2018		December 31, 2017
Accrued accounting and legal	$	40,775	$	93,595
Accrued reimbursements		9,767		2,600
Accrued consulting		49,035		109,059
Accrued research and development expenses		89,918		246,030
Accrued office and other		15,243		7,912
Deferred rent		1,424		569
Accrued settlement related to arbitration		13,333		13,333
	$	219,495	$	473,098

XML

NOTE 6 - SERIES C 9% CONVERTIBLE PREFERRED STOCK

6 Months Ended

Jun. 30, 2018

Disclosure Text Block Supplement [Abstract]

Preferred Stock [Text Block]

NOTE 6 – SERIES C 9% CONVERTIBLE PREFERRED STOCK

On January 9, 2013, the Board of Directors authorized the issuance of up to 4,200 shares of 9% Series C Convertible Preferred Stock (the “Series C Preferred Stock”).

The Series C Preferred Stock is entitled to preference over holders of junior stock upon liquidation in the amount of $1,000 plus any accrued and unpaid dividends; entitled to dividends as a preference to holders of junior stock at a rate of 9% per annum of the stated value of $1,000 per share, payable quarterly beginning on September 30, 2013 and are cumulative.  The holders of the Series C Preferred Stock vote together with the holders of our common stock on an as-converted basis, but may not vote the Series C Preferred Stock in excess of the beneficial ownership limitation of the Series C Preferred Stock.  The beneficial ownership limitation is 4.99% of our then outstanding shares of common stock following such conversion or exercise, which may be increased to up to 9.99% of our then outstanding shares of common stock following such conversion or exercise upon the request of an individual holder.  The beneficial ownership limitation is determined on an individual holder basis, such that the as-converted number of shares of one holder is not included in the shares outstanding when calculating the limitation for a different holder.

In connection with the sale of the Series C preferred stock, the Company issued an aggregate of 1,330,627 warrants to purchase the Company’s common stock at $2.61 per share expiring five years from the initial exercise date.  The warrants contain full ratchet anti-dilution price protection upon the issuance of equity or equity-linked securities at an effective common stock purchase price of less than $2.61 per share as well as other customary anti-dilution protection. The warrants are exercisable for cash; or if at any time after six months from the issuance date, there is no effective registration statement registering the resale, or no current prospectus available for the resale, of the shares of common stock underlying the warrants, the warrants may be exercised by means of a “cashless exercise”. 

As a result of an amendment to the conversion price of our Series C Preferred Stock, the full-ratchet anti-dilution protection provision of the warrants decreased the exercise price of the warrants from $2.61 per share to $1.50 per share and increased the aggregate number of shares issuable under the warrants to 2,315,301.

In February 2018, the Company issued 9,919 shares of its common stock in exchange for 10 shares of the Company’s Series C Preferred Stock and accrued dividends.

In March 2018, the Company issued 10,010 shares of its common stock in exchange for 10 shares of the Company’s Series C Preferred Stock and accrued dividends.

In April 2018, the Company issued 351,021 shares of its common stock in exchange for 370 shares of the Company’s Series C Preferred Stock and accrued dividends.

In June 2018, the Company issued 18,968 shares of its common stock in exchange for 20 shares of the Company’s Series C Preferred Stock and accrued dividends.

Series C Preferred Stock issued and outstanding totaled 575 and 985 as of June 30, 2018 and December 31, 2017, respectively.  As of June 30, 2018 and December 31, 2017, the Company has accrued $267,189 and $419,283 dividends payable on the Series C Preferred Stock.

XML

NOTE 7 - WARRANT AND DERIVATIVE LIABILITIES

6 Months Ended

Jun. 30, 2018

Disclosure Text Block [Abstract]

Derivatives and Fair Value [Text Block]

NOTE 7 – WARRANT AND DERIVATIVE LIABILITIES

Series C 9% Convertible Preferred Stock and related warrants

At the time of issuance and until March 31, 2015, the Company determined that the anti-dilutive provisions embedded in the Series C Preferred Stock and related warrants (see Note 6) did not meet the defined criteria of a derivative in such that the net settlement requirement of delivery of common shares does not meet the “readily convertible to cash” as described in Accounting Standards Codification 815 and therefore bifurcation was not required.  There was no established market for the Company’s common stock.   As of March 31, 2015, the Company determined a market had been established for the Company’s common stock and accordingly, reclassified from equity to liability treatment the fair value of the embedded reset provisions of the Series C Preferred Stock and warrants of $1,242,590 and $4,097,444, respectively.

The Company valued the reset provisions of the Series C Preferred Stock and warrants in accordance with ASC 470-20 using the Multinomial Lattice pricing model and the following assumptions: estimated contractual terms, a risk free interest rate of 0.56% to 0.89%, a dividend yield of 0%, and volatility of 141%.

Series D Convertible Preferred Stock and related warrants

At issuance, the Company determined that certain anti-dilutive provisions embedded in the Series D Preferred Stock and related warrants (see Note 8) met the defined criteria of a derivative and accordingly, reclassified from equity to liability the determined fair value of the embedded reset provisions of the Series D Preferred Stock and warrants of $397,162 and $652,054, respectively.

The Company valued the reset provisions of the Series D Preferred Stock and warrants in accordance with ASC 470-20 using the Multinomial Lattice pricing model and the following assumptions: estimated contractual terms, a risk free interest rate of 1.74%, a dividend yield of 0%, and volatility of 130%.

At December 31, 2017, the Company marked to market the fair value of the reset provisions of the Preferred Stock and warrants and determined fair values of $685,922 and $2,358,240, respectively. The fair values of the embedded derivatives were determined using the Multinomial Lattice pricing model and the following assumptions: estimated contractual term of 1.43 to 3.36 years, a risk free interest rate of 1.39% to 1.89%, a dividend yield of 0%, and volatility of 131%.

On January 1, 2018, the Company adopted ASU 2017-11 and according reclassified the fair value of the reset provisions embedded in previously issued Series C Preferred stock, Series D Preferred stock and certain warrants with embedded anti-dilutive provisions from liability to equity in aggregate of $3,044,162.

XML

NOTE 8 - STOCKHOLDER EQUITY

6 Months Ended

Jun. 30, 2018

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 8 – STOCKHOLDER EQUITY

Preferred stock

The Company is authorized to issue 1,000,000 shares of $0.001 par value preferred stock. As of June 30, 2018 and December 31, 2017, the Company has authorized 200 shares of Series A preferred stock, 600 shares of Series B preferred stock, 4,200 shares of Series C Preferred Stock, 1,400 shares of Series D Preferred Stock and (2018) 1,000 shares of Series E Preferred Stock. As of June 30, 2018 and December 31, 2017, there were no outstanding shares of Series A and Series B preferred stock.

Series C Preferred Stock

In February 2018, the Company issued 9,919 shares of its common stock in exchange for 10 shares of the Company’s Series C Preferred Stock and accrued dividends.

In March 2018, the Company issued 10,010 shares of its common stock in exchange for 10 shares of the Company’s Series C Preferred Stock and accrued dividends.

In April 2018, the Company issued 351,021 shares of its common stock in exchange for 370 shares of the Company’s Series C Preferred Stock and accrued dividends.

In June 2018, the Company issued 18,968 shares of its common stock in exchange for 20 shares of the Company’s Series C Preferred Stock and accrued dividends.

Series D Preferred Stock

In January 2018, the Company issued an aggregate of 235,911 shares of its common stock in exchange for 180 shares of the Company’s Series D Preferred Stock and accrued dividends.

In February 2018, the Company issued an aggregate of 131,432 shares of its common stock in exchange for 100 shares of the Company’s Series D Preferred Stock and accrued dividends.

In March 2018, the Company issued an aggregate of 489,231 shares of its common stock in exchange for 367 shares of the Company’s Series D Preferred Stock and accrued dividends.

In April 2018, the Company issued an aggregate of 577,339 shares of its common stock in exchange for 454 shares of the Company’s Series D Preferred Stock and accrued dividends.

In May 2018, the Company issued an aggregate of 261,709 shares of its common stock in exchange for 206 shares of the Company’s Series D Preferred Stock and accrued dividends.

In June 2018, the Company issued an aggregate of 34,290 shares of its common stock in exchange for 27 shares of the Company’s Series D Preferred Stock and accrued dividends.

Series E Preferred Stock

On February 16, 2018, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional accredited investors (the “Investors”), pursuant to which the Company sold to the Investors an aggregate of 1,000 shares (the “Preferred Shares”) of its Series E Preferred Stock, par value $0.001 per share, and warrants to purchase an aggregate of 500,000 shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”), at an exercise price of $1.75 per share (the “Warrants”), in exchange for aggregate consideration of $1,492,969, net of transaction expenses of $7,031 (the “Transaction”).

The Purchase Agreement contains representations and warranties of the Company and the Investors that are typical for transactions of this type.  The Purchase Agreement also contains covenants on the part of the Company that are typical for transactions of this type. For a period of twelve months after the closing date of Transaction, the Investors are entitled to a right of first refusal (the “ROFR”) with respect to subsequent sales of securities by the Company (other than with respect to issuances of Excluded Securities (as defined in the Purchase Agreement))  Pursuant to the ROFR, each Investor will have the opportunity to elect to purchase its pro rata portion of thirty percent (30%) of any securities being offered by the Company in the subsequent offering.

In connection with the entry into the Purchase Agreement, the Investors and the Company also entered into a registration rights agreement (the “Registration Rights Agreement”) whereby the Company agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) within 90 days of the closing of the transactions contemplated by the Purchase Agreement (the “Filing Date”) covering the resale of (a) all shares of Common Stock Issuable upon conversion of the Preferred Shares, (b) all shares of Common Stock issuable upon exercise of the Warrants, (c) all other shares of Common Stock issued pursuant to any transaction documents which have been, or which may, from time to time be issued or become issuable to the Investors under the Transaction Documents (without regard to any limitation or restriction on purchases), and (d) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event (“Registrable Securities”), not then registered.  The Company will use its reasonable best efforts to keep the registrations statement effective pursuant to Rule 415 under the Securities Act until the earlier of (i) the date on which the Investors shall have sold all the Registrable Securities covered thereby and (ii) that date that all Registrable Securities may be sold pursuant to Rule 144 without any public information requirement or volume or manner of sale limitations.

The Warrants are exercisable immediately and expire on August 16, 2021, and have an exercise price of $1.75 per share.  The Warrants include a “full ratchet” anti-dilution adjustment in the event that the Company issues any common stock or common stock equivalent at a per share price lower than the applicable exercise price then in effect.

As a result of sale of the Company’s common stock in April 2018, the full-ratchet anti-dilution protection provision of the warrants decreased the exercise price of the warrants from $1.75 per share to $1.50 per share and increased the aggregate number of shares issuable under the warrants from 500,000 to 583,334.

In connection with its entry into the Purchase Agreement, on February 14, 2018, the Company entered into a consent agreement (the “Consent”) with the holders of the Company’s Series D Convertible Preferred Stock (the “Series D Holders”).  Pursuant to the Consent, the Series D Holders consented to the Transaction and are entitled at any time on or before April 17, 2018, to elect to receive the more favorable terms of the Transaction.  In consideration for their entry into the Consent, the Company issued to the Series D Holders warrants to purchase up to an aggregate of 100,000 shares of Common Stock (the “Consent Warrants”).  The Consent Warrants are exercisable immediately and expire on February 14, 2021, and have an exercise price of $1.50 per share.  The Consent Warrants include a “full ratchet” anti-dilution adjustment in the event that the Company issues any common stock or common stock equivalent at a per share price lower than the applicable exercise price then in effect. 

Common stock

The Company is authorized to issue 200,000,000 shares of $0.001 par value common stock. As of June 30, 2018 and December 31, 2017, the Company had 36,709,302 and 29,321,204 shares issued and outstanding, respectively.

During the six months ended June 30, 2018, the Company issued 1,450,000 shares of its common stock for services totaling $2,531,500 ($1.75 per share).

During the six months ended June 30, 2018, the Company entered into securities purchase agreements with investors pursuant to which the Company issued 3,513,004 shares of common stock and 1,756,506 warrants for aggregate proceeds of $5,268,445.

During the six months ended June 30, 2018, the Company issued 20,000 shares of common stock and 10,000 warrants for a previously received common stock subscription of $29,985.

During the six months ended June 30, 2018, the Company issued 285,264 shares of common stock in exchange for proceeds of $427,896 from the exercise of warrants.

XML

NOTE 9 - OPTIONS AND WARRANTS

6 Months Ended

Jun. 30, 2018

Disclosure Text Block Supplement [Abstract]

Shareholders' Equity and Share-based Payments [Text Block]

NOTE 9 – OPTIONS AND WARRANTS

Options

On October 19, 2012, the Company’s Board of Directors approved the 2012 Equity Incentive Plan (“the “Plan) and terminated the Long-Term Incentive Plan (the “2011 Plan”). The Plan provides for the issuance of options to purchase up to 15,186,123 (as amended) shares of the Company’s common stock to officers, directors, employees and consultants of the Company (as amended). Under the terms of the Plan the Company may issue Incentive Stock Options as defined by the Internal Revenue Code to employees of the Company only and nonstatutory options. The Board of Directors of the Company or a committee thereof administers the Plan and determines the exercise price, vesting and expiration period of the grants under the Plan.

However, the exercise price of an Incentive Stock Option should not be less than 110% of fair value of the common stock at the date of the grant for a 10% or more stockholder and 100% of fair value for a grantee who is not 10% stockholder. The fair value of the common stock is determined based on the quoted market price or in absence of such quoted market price, by the administrator in good faith.

Additionally, the vesting period of the grants under the Plan will be determined by the administrator, in its sole discretion, with an expiration period of not more than ten years.

The following table presents information related to stock options at June 30, 2018:

Options Outstanding						Options Exercisable
				Weighted
				Average		Exercisable
Exercise		Number of		Remaining Life		Number of
Price		Options		In Years		Options
$	1.01-2.00		4,060,540		7.0		3,319,374
	2.01-3.00		4,384,779		3.2		4,384,779
	3.01-4.00		300,000		6.8		300,000
			8,745,319		5.1		8,004,153

A summary of the stock option activity and related information for the 2012 Plan for the six months ended June 30, 2018 is as follows:

						Weighted-Average
				Weighted-Average		Remaining		Aggregate
	Shares			Exercise Price		Contractual Term		Intrinsic Value
Outstanding at December 31, 2017		8,510,319		$	2.11		5.2	$	27,045
Grants		865,000		$	1.75		10.0	$	-
Exercised		-
Canceled		(630,000	)		1.56
Outstanding at June 30, 2018		8,745,319		$	2.11		5.1	$	3,190,390
Exercisable at June 30, 2018		8,004,153		$	2.16		4.8	$	2,648,701

The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $2.37 of June 30, 2018, which would have been received by the option holders had those option holders exercised their options as of that date.

Option valuation models require the input of highly subjective assumptions. The fair value of stock-based payment awards was estimated using the Black-Scholes option model with a volatility figure using the Company’s own historical stock prices. The Company accounts for the expected life of options based on the contractual life of options for non-employees.

For employees, the Company accounts for the expected life of options in accordance with the “simplified” method, which is used for “plain-vanilla” options, as defined in the accounting standards codification. The risk-free interest rate was determined from the implied yields of U.S. Treasury zero-coupon bonds with a remaining life consistent with the expected term of the options.  The fair value of stock-based payment awards during the six months ended June 30, 2018 and 2017 was estimated using the Black-Scholes pricing model.

On February 15, 2018, the Company granted 50,000 options to purchase the Company stock in connection with the services rendered at the exercise price of $1.42 per share for a term of ten years with vesting immediately.

On May 4, 2018, the Company granted 565,000 options to purchase the Company stock in connection with the services rendered at the exercise price of $1.77 per share for a term of ten years with vesting immediately.

On May 14, 2018, the Company granted 250,000 options to purchase the Company stock in connection with the services rendered at the exercise price of $1.77 per share for a term of ten years with vesting immediately.

The following assumptions were used in determining the fair value of employee options for the six months ended June 30, 2018:

Risk-free interest rate		2.65% to 2.85		%
Dividend yield			0	%
Stock price volatility		92.65% to 94.10		%
Expected life	5			years
Weighted average grant date fair value		$	1.28

The fair value of all options vesting during the three and six months ended June 30, 2018 of $1,167,313 and $1,414,021 and for the three and six months ended June 30, 2017 of $54,243 and $97,227, respectively, was charged to current period operations.  Unrecognized compensation expense of $387,971 and $979,812 at June 30, 2018 and December 31, 2017, respectively, will be expensed in future periods.

Warrants

The following table summarizes information with respect to outstanding warrants to purchase common stock of the Company at June 30, 2018: 

Exercise		Number		Expiration
Price		Outstanding		Date
$	0.001		383,320	January 2020
$	1.50		7,758,369	July 2018 to August 2021
$	1.75		1,666,506	May 2021
$	1.84		35,076	January 2020
$	1.95		1,689,026	October 2018 to September 2019
$	2.00		100,000	August 2018
$	2.02		30,755	January 2020
$	2.50		100,000	August 2018
$	2.75		228,720	August 2019 to September 2019
$	3.67		214,193	December 2018 to January 2019
$	3.75		1,340,556	April 2019 to March 2020
			13,546,521

On January 5, 2018, the Company issued 100,000 warrants to purchase the Company’s common stock at $1.50 per share, expiring on January 5, 2021, in connection with the sale of the Company’s common stock.

On February 14, 2018, the Company entered into a consent agreement with the holders of the Company’s Series D Convertible Preferred Stock.  Pursuant to the consent, the Series D Holders consented to the Series E Preferred Stock transaction and are entitled at any time on or before April 17, 2018, to elect to receive the more favorable terms of the transaction.  In consideration for their entry into the consent, the Company issued to the Series D Holders warrants to purchase up to an aggregate of 100,000 shares of common stock.  The consent warrants are exercisable immediately and expire on February 14, 2021, and have an exercise price of $1.50 per share. The warrants contain certain anti-dilutive provisions (see Note 8).

On February 16, 2018, the Company issued an aggregate of 500,000 warrants to purchase the Company’s common stock at $1.75 per share, expiring on August 16, 2021, in connection with the sale of the Company’s Series E preferred stock.  The warrants contain certain anti-dilutive provisions. On April 30, 2018, the exercise prices of the previously issued 500,000 warrants were reset to $1.50 and an additional 83,334 warrants were issued at $1.50 per share due to reset provisions (see Note 8).

On April 30, 2018, the Company issued 1,596,506 warrants to purchase the Company’s common stock at $1.75 per share, expiring on April 30, 2021, in connection with the sale of the Company’s common stock.

On May 11, 2018, the Company issued 70,000 warrants to purchase the Company’s common stock at $1.75 per share, expiring on May 11, 2021, in connection with the sale of the Company’s common stock.

A summary of the warrant activity for the six months ended June 30, 2018 is as follows:

						Weighted-Average
				Weighted-Average		Remaining		Aggregate
	Shares			Exercise Price		Contractual Term		Intrinsic Value
Outstanding at December 31, 2017		12,789,086		$	1.82		1.7	$	551,636
Grants		2,449,840		$	1.67		3.0		-
Exercised		(285,264	)	$	1.50
Expired		(1,407,141	)	$	1.50		-		-
Outstanding at June 30, 2018		13,546,521		$	1.84		1.7	$	9,466,845
Vested and expected to vest at June 30, 2018		13,546,521		$	1.84		1.7	$	9,466,845
Exercisable at June 30, 2018		13,546,521		$	1.84		1.7	$	9,466,845

The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $2.37 of June 30, 2018, which would have been received by the option holders had those option holders exercised their options as of that date.

XML

NOTE 10 - RELATED PARTY TRANSACTIONS

6 Months Ended

Jun. 30, 2018

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 10 – RELATED PARTY TRANSACTIONS

The Company’s President and shareholders have advanced funds to the Company for working capital purposes since the Company’s inception in February 2009.  No formal repayment terms or arrangements exist and the Company is not accruing interest on these advances. The net amount of outstanding advances at June 30, 2018 and December 31, 2017 was $-0-.

At June 30, 2018 and December 31, 2017, the Company had reimbursable travel and other related expenses due related parties of $12,648 and $27,375, respectively.

On November 1, 2017, in connection with Mr. Filler joining the Company’s Board of Directors,  the Company entered into a Master Services Agreement (the “Agreement”) with 3LP Advisors LLC (d/b/a Sherpa Technology Group) (“Sherpa”) and an initial statement of work (the “SOW”), pursuant to which Sherpa will develop, execute and expand the Company’s intellectual property strategy over the course of the next approximately 18 months by evaluating the business and technology landscape in which the Company operates, and charting and executing a strategy of patent filing and licensing. In connection with the SOW, the Company will pay Sherpa fee of (i) $200,000 in cash, of which $25,000 will be paid on January 1, 2018, with the remainder to be paid upon completion of certain objectives, and (ii) a ten-year option to purchase up to 300,000 of the Company’s common stock at an exercise of $1.50 per share of common stock, of which 150,000 options vest immediately and 150,000 options are performance conditioned.  Mr. Filler is the general counsel and partner of Sherpa. 

During the three months and six months ended June 30, 2018 and 2017, the Company paid $102,219 and $277,219 as patent costs, consulting fees and expense reimbursements. As of June 30, 2018 and December 31, 2017, there was an unpaid balance of $0.

XML

NOTE 11 - COMMITMENTS AND CONTINGENCIES

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 11 – COMMITMENTS AND CONTINGENCIES

Operating leases

On May 22, 2018, the Company entered into a fifth lease amendment agreement, whereby the Company agreed to extend the lease for the original office space and expand with additional space in Los Angeles, California, commencing June 14, 2018 and expiring on June 30, 2021.  In connection with the lease, the Company is obligated to lease parking spaces at an aggregate approximate cost of $1,017 per month.  In addition, the Company entered into a lease for storage space with the Los Angeles, California building commencing on December 1, 2017 and expiring on August 31, 2019.

Future minimum lease payments under these three agreements are as follows:

Year Ending December 31,
2018	$	100,465
2019		198,239
2020		201,993
2021		102,623
	$	603,320

XML

NOTE 12 - FAIR VALUE MEASUREMENT

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

NOTE 12 – FAIR VALUE MEASUREMENT

The Company adopted the provisions of Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”). ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 establishes three levels of inputs that may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.

All items required to be recorded or measured on a recurring basis are based upon level 3 inputs.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed and is determined based on the lowest level input that is significant to the fair value measurement.

Upon adoption of ASC 825-10, there was no cumulative effect adjustment to beginning retained earnings and no impact on the financial statements.

The carrying value of the Company’s cash and cash equivalents, accounts payable and other current assets and liabilities approximate fair value because of their short-term maturity.

As of June 30, 2018 and December 31, 2017, the Company did not have any items that would be classified as level 1 or 2 disclosures.

As of June 30, 2018 and December 31, 2017, the Company did not have any derivative instruments that were designated as hedges.

The following table provides a summary of changes in fair value of the Company’s level 3 financial liabilities as of June 30, 2018:

	Warrant Liability			Derivative
Balance, December 31, 2017	$	2,358,240		$	685,922
Total (gains) losses
Transfers out due to the adoption of ASU 2017-11 effective January 1, 2018		(2,358,240	)		(685,922	)
Balance, June 30, 2018	$	-		$	-

XML

NOTE 13 - SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 13 – SUBSEQUENT EVENTS

In July 2018, the Company issued an aggregate of 90,087 shares of common stock in exchange for 100 shares of our Series C 9% Convertible Preferred Stock and accrued dividends.

On July 11, 2018, the Company issued an aggregate of 101,000 shares of its common stock to consultants for services rendered with a fair value of $237,300.

In July 2018, the Company issued an aggregate of 379,897 shares of its common stock in exchange for warrants exercised at $1.50 per share for aggregate proceeds of $569,846.

In July  2018 the Company entered into a unit purchase agreement with certain accredited investors pursuant to which the Company received subscriptions for 209,655 shares of our common stock and 52,416 “Series A” warrants to purchase our common stock, exercisable at a price of $1.50 per share and expiring nine months from issuance, and 52,416 “Series B” warrants to purchase our common stock, exercisable at a price of $2.74 per share expiring three years from issuance in exchange for aggregate consideration of $477,801, net of expenses of $210.

On July 24, 2018 the Company issued 50,000 shares of common stock in exchange for 50,000 options exercised at $1.74 per share for proceeds of $87,000.​

On July 25, 2018 the Company issued 14,606 shares of common stock in exchange for 100,000 warrants at a strike price of $2.00 exercised cashless at $2.3421 per share.​

XML

Accounting Policies, by Policy (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Use of Estimates, Policy [Policy Text Block]

Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, 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 the recoverability and useful lives of long-lived assets, the fair value of the Company’s stock, stock-based compensation and the valuation allowance related to deferred tax assets. Actual results may differ from these estimates.

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

Fair Value of Financial Instruments

Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”) requires disclosure of the fair value of certain financial instruments. The carrying value of cash and cash equivalents, accounts payable and accrued liabilities as reflected in the balance sheets, approximate fair value because of the short-term maturity of these instruments. All other significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practicable the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.

The Company follows Accounting Standards Codification subtopic 820-10, Fair Value Measurements and Disclosures (“ASC 820-10”) and Accounting Standards Codification subtopic 825-10, Financial Instruments (“ASC 825-10”), which permits entities to choose to measure many financial instruments and certain other items at fair value.

Derivatives, Policy [Policy Text Block]

Derivative Instrument Liability

The Company accounts for derivative instruments in accordance with ASC 815, which establishes accounting and reporting standards for derivative instruments and hedging activities, including certain derivative instruments embedded in other financial instruments or contracts and requires recognition of all derivatives on the balance sheet at fair value, regardless of hedging relationship designation. Accounting for changes in fair value of the derivative instruments depends on whether the derivatives qualify as hedge relationships and the types of relationships designated are based on the exposures hedged. At June 30, 2018 and December 31, 2017, the Company did not have any derivative instruments that were designated as hedges.

At June 30, 2018 and December 31, 2017, the Company had outstanding preferred stock and warrants that contained embedded derivatives. These embedded derivatives include certain conversion features and reset provisions (See Note 6 and Note 7).

Research and Development Expense, Policy [Policy Text Block]

Research and development costs

The Company accounts for research and development costs in accordance with the Accounting Standards Codification subtopic 730-10, Research and Development (“ASC 730-10”). Under ASC 730-10, all research and development costs must be charged to expense as incurred. Accordingly, internal research and development costs are expensed as incurred. Third-party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. Company-sponsored research and development costs related to both present and future products are expensed in the period incurred. The Company incurred research and development expenses of $1,449,508 and $2,311,928 for the three and six months ended June 30, 2018; and $1,339,039 and $2,677,643 for the three and six months ended June 30, 2017, respectively.

Earnings Per Share, Policy [Policy Text Block]

Net Income (loss) Per Common Share

The Company computes earnings (loss) per share under Accounting Standards Codification subtopic 260-10, Earnings Per Share (“ASC 260-10”). Net loss per common share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the year.  Diluted earnings per share, if presented, would include the dilution that would occur upon the exercise or conversion of all potentially dilutive securities into common stock using the “treasury stock” and/or “if converted” methods as applicable.

The computation of basic and diluted loss per share as of June 30, 2018 and 2017 excludes potentially dilutive securities when their inclusion would be anti-dilutive, or if their exercise prices were greater than the average market price of the common stock during the period.

Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share are as follows:

	June 30, 2018		June 30, 2017
Series C convertible preferred stock		383,333		670,000
Series E convertible preferred stock		1,000,000		-
Options to purchase common stock		8,745,319		8,245,190
Warrants to purchase common stock		13,546,521		11,019,913
Totals		23,675,173		19,935,103

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock Based Compensation

The Company measures the cost of services received in exchange for an award of equity instruments based on the fair value of the award. For employees and directors, the fair value of the award is measured on the grant date and for non-employees, the fair value of the award is generally re-measured on vesting dates and interim financial reporting dates until the service period is complete. The fair value amount is then recognized over the period during which services are required to be provided in exchange for the award, usually the vesting period.

As of June 30, 2018, the Company had 8,745,319 options outstanding to purchase shares of common stock, of which 8,004,153 were vested.

As of December 31, 2017, there were outstanding stock options to purchase 8,510,319 shares of common stock, 7,347,486 shares of which were vested.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company follows Accounting Standards Codification subtopic 740-10, Income Taxes (“ASC 740-10”) for recording the provision for income taxes. Deferred tax assets and liabilities are computed based upon the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate applicable when the related asset or liability is expected to be realized or settled. Deferred income tax expenses or benefits are based on the changes in the asset or liability during each period. If available evidence suggests that it is more likely than not that some portion or all of the deferred tax assets will not be realized, a valuation allowance is required to reduce the deferred tax assets to the amount that is more likely than not to be realized. Future changes in such valuation allowance are included in the provision for deferred income taxes in the period of change. Deferred income taxes may arise from temporary differences resulting from income and expense items reported for financial accounting and tax purposes in different periods.

Deferred taxes are classified as non-current.

Registration Rights Policy [Policy Text Block]

Registration Rights

On February 16, 2018, in connection with the Company’s private placement of Series E Preferred Stock and warrants, the Company also entered into a registration rights agreement (the “Registration Rights Agreement”) whereby the Company agreed to file a registration statement with the Securities and Exchange Commission (the “SEC”) within 90 days of the closing of the transactions contemplated by the Purchase Agreement (the “Filing Date”) covering the resale of (a) all shares of Common Stock Issuable upon conversion of the Preferred Shares, (b) all shares of Common Stock issuable upon exercise of the Warrants, (c) all other shares of Common Stock issued pursuant to any transaction documents which have been, or which may, from time to time be issued or become issuable to the Investors under the Transaction Documents (without regard to any limitation or restriction on purchases), and (d) any securities issued or then issuable upon any stock split, dividend or other distribution, recapitalization or similar event (“Registrable Securities”), not then registered.  The Company will use its reasonable best efforts to keep the registrations statement effective pursuant to Rule 415 under the Securities Act until the earlier of (i) the date on which the Investors shall have sold all the Registrable Securities covered thereby and (ii) that date that all Registrable Securities may be sold pursuant to Rule 144 without any public information requirement or volume or manner of sale limitations. The Company has estimated the liability under the registration rights agreement at $-0- as of June 30, 2018.

New Accounting Pronouncements, Policy [Policy Text Block]

Adoption of Accounting Standards

In July 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), Derivatives and Hedging (Topic 815). The amendments in Part I of this Update change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features.

When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. The amendments also clarify existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, the amendments require entities that present earnings per share (EPS) in accordance with Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. Convertible instruments with embedded conversion options that have down round features are now subject to the specialized guidance for contingent beneficial conversion features (in Subtopic 470-20, Debt—Debt with Conversion and Other Options), including related EPS guidance (in Topic 260). The amendments in Part II of this Update recharacterize the indefinite deferral of certain provisions of Topic 480 that now are presented as pending content in the Codification, to a scope exception.

Those amendments do not have an accounting effect. For public business entities, the amendments in Part I of this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted for all entities, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period.

On January 1, 2018, the Company adopted ASU 2017-11 and according reclassified the fair value of the reset provisions embedded in previously issued Series C Preferred stock, Series D Preferred stock and certain warrants with embedded anti-dilutive provisions from liability to equity in aggregate of $3,044,162.

Recent Accounting Pronouncements

There are various updates recently issued, most of which represented technical corrections to the accounting literature or application to specific industries and are not expected to a have a material impact on the Company’s financial position, results of operations or cash flows.

Subsequent Events, Policy [Policy Text Block]

Subsequent Events

The Company evaluates events that have occurred after the balance sheet date but before the financial statements are issued.  Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the condensed financial statements, except as disclosed.

XML

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

Potentially dilutive securities excluded from the computation of basic and diluted net income (loss) per share are as follows:

	June 30, 2018		June 30, 2017
Series C convertible preferred stock		383,333		670,000
Series E convertible preferred stock		1,000,000		-
Options to purchase common stock		8,745,319		8,245,190
Warrants to purchase common stock		13,546,521		11,019,913
Totals		23,675,173		19,935,103

XML

NOTE 4 - PROPERTY AND EQUIPMENT (Tables)

6 Months Ended

Jun. 30, 2018

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property and equipment as of June 30, 2018 and December 31, 2017 is summarized as follows:

	June 30, 2018			December 31, 2017
Computer equipment	$	91,518		$	87,059
Furniture and fixtures		16,726			12,975
Subtotal		108,244			100,034
Less accumulated depreciation		(87,146	)		(81,318	)
Property and equipment, net	$	21,098		$	18,716

XML

NOTE 5 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)

6 Months Ended

Jun. 30, 2018

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Accrued Liabilities [Table Text Block]

Accounts payable and accrued expenses at June 30, 2018 and December 31, 2017 consist of the following:

	June 30, 2018		December 31, 2017
Accrued accounting and legal	$	40,775	$	93,595
Accrued reimbursements		9,767		2,600
Accrued consulting		49,035		109,059
Accrued research and development expenses		89,918		246,030
Accrued office and other		15,243		7,912
Deferred rent		1,424		569
Accrued settlement related to arbitration		13,333		13,333
	$	219,495	$	473,098

XML

NOTE 9 - OPTIONS AND WARRANTS (Tables)

6 Months Ended

Jun. 30, 2018

Disclosure Text Block Supplement [Abstract]

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

The following table presents information related to stock options at June 30, 2018:

Options Outstanding						Options Exercisable
				Weighted
				Average		Exercisable
Exercise		Number of		Remaining Life		Number of
Price		Options		In Years		Options
$	1.01-2.00		4,060,540		7.0		3,319,374
	2.01-3.00		4,384,779		3.2		4,384,779
	3.01-4.00		300,000		6.8		300,000
			8,745,319		5.1		8,004,153

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

A summary of the stock option activity and related information for the 2012 Plan for the six months ended June 30, 2018 is as follows:

						Weighted-Average
				Weighted-Average		Remaining		Aggregate
	Shares			Exercise Price		Contractual Term		Intrinsic Value
Outstanding at December 31, 2017		8,510,319		$	2.11		5.2	$	27,045
Grants		865,000		$	1.75		10.0	$	-
Exercised		-
Canceled		(630,000	)		1.56
Outstanding at June 30, 2018		8,745,319		$	2.11		5.1	$	3,190,390
Exercisable at June 30, 2018		8,004,153		$	2.16		4.8	$	2,648,701

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block]

The following assumptions were used in determining the fair value of employee options for the six months ended June 30, 2018:

Risk-free interest rate		2.65% to 2.85		%
Dividend yield			0	%
Stock price volatility		92.65% to 94.10		%
Expected life	5			years
Weighted average grant date fair value		$	1.28

Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Table Text Block]

The following table summarizes information with respect to outstanding warrants to purchase common stock of the Company at June 30, 2018:

Exercise		Number		Expiration
Price		Outstanding		Date
$	0.001		383,320	January 2020
$	1.50		7,758,369	July 2018 to August 2021
$	1.75		1,666,506	May 2021
$	1.84		35,076	January 2020
$	1.95		1,689,026	October 2018 to September 2019
$	2.00		100,000	August 2018
$	2.02		30,755	January 2020
$	2.50		100,000	August 2018
$	2.75		228,720	August 2019 to September 2019
$	3.67		214,193	December 2018 to January 2019
$	3.75		1,340,556	April 2019 to March 2020
			13,546,521

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

A summary of the warrant activity for the six months ended June 30, 2018 is as follows:

						Weighted-Average
				Weighted-Average		Remaining		Aggregate
	Shares			Exercise Price		Contractual Term		Intrinsic Value
Outstanding at December 31, 2017		12,789,086		$	1.82		1.7	$	551,636
Grants		2,449,840		$	1.67		3.0		-
Exercised		(285,264	)	$	1.50
Expired		(1,407,141	)	$	1.50		-		-
Outstanding at June 30, 2018		13,546,521		$	1.84		1.7	$	9,466,845
Vested and expected to vest at June 30, 2018		13,546,521		$	1.84		1.7	$	9,466,845
Exercisable at June 30, 2018		13,546,521		$	1.84		1.7	$	9,466,845

XML

NOTE 11 - COMMITMENTS AND CONTINGENCIES (Tables)

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block]

Future minimum lease payments under these three agreements are as follows:

Year Ending December 31,
2018	$	100,465
2019		198,239
2020		201,993
2021		102,623
	$	603,320

XML

NOTE 12 - FAIR VALUE MEASUREMENT (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

The following table provides a summary of changes in fair value of the Company’s level 3 financial liabilities as of June 30, 2018:

	Warrant Liability			Derivative
Balance, December 31, 2017	$	2,358,240		$	685,922
Total (gains) losses
Transfers out due to the adoption of ASU 2017-11 effective January 1, 2018		(2,358,240	)		(685,922	)
Balance, June 30, 2018	$	-		$	-

XML

NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) - USD ($)		6 Months Ended
	Feb. 16, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) [Line Items]
Cash and Cash Equivalents, at Carrying Value		$ 3,673,137	$ 880,659	$ 1,547,579	$ 1,055,895
Working Capital (Deficit)		(3,314,017)
Proceeds from Warrant Exercises		427,896	0
Net Cash Provided by (Used in) Operating Activities		(4,797,308)	$ (3,452,958)
Series E Preferred Stock [Member]
NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) [Line Items]
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants	$ 1,492,969	1,500,000
Common Stock and Warrant [Member]
NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) [Line Items]
Proceeds from Issuance or Sale of Equity		5,300,000
Series C and D Preferred Stock [Member]
NOTE 2 - GOING CONCERN AND MANAGEMENT'S LIQUIDITY PLANS (Details) [Line Items]
Proceeds from Issuance or Sale of Equity		$ 900,000

XML

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)		3 Months Ended		6 Months Ended
	Jan. 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Accounting Policies [Abstract]
Research and Development Expense		$ 1,449,508	$ 1,339,039	$ 2,311,928	$ 2,677,643
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number (in Shares)		8,745,319		8,745,319		8,510,319
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number (in Shares)		8,004,153		8,004,153		7,347,486
Registration Payment Arrangement, Accrual Carrying Value		$ 0		$ 0
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity	$ 3,044,162

XML

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share - shares	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities	19,935,103	23,675,173
Series C Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities	670,000	383,333
Series E Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities	0	1,000,000
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities	8,245,190	8,745,319
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities	11,019,913	13,546,521

XML

NOTE 4 - PROPERTY AND EQUIPMENT (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
NOTE 4 - PROPERTY AND EQUIPMENT (Details) [Line Items]
Depreciation	$ 2,926	$ 2,997	$ 5,829	$ 6,066
Minimum [Member]
NOTE 4 - PROPERTY AND EQUIPMENT (Details) [Line Items]
Property, Plant and Equipment, Useful Life	3 years
Maximum [Member]
NOTE 4 - PROPERTY AND EQUIPMENT (Details) [Line Items]
Property, Plant and Equipment, Useful Life	5 years

XML

NOTE 4 - PROPERTY AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 108,244	$ 100,034
Less accumulated depreciation	(87,146)	(81,318)
Property and equipment, net	21,098	18,716
Computer Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	91,518	87,059
Furniture and Fixtures [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 16,726	$ 12,975

XML

NOTE 5 - ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Details) - Schedule of Accounts Payable and Accrued Liabilities - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Schedule of Accounts Payable and Accrued Liabilities [Abstract]
Accrued accounting and legal	$ 40,775	$ 93,595
Accrued reimbursements	9,767	2,600
Accrued consulting	49,035	109,059
Accrued research and development expenses	89,918	246,030
Accrued office and other	15,243	7,912
Deferred rent	1,424	569
Accrued settlement related to arbitration	13,333	13,333
	$ 219,495	$ 473,098

XML

NOTE 6 - SERIES C 9% CONVERTIBLE PREFERRED STOCK (Details) - USD ($)		1 Months Ended				6 Months Ended
	Jan. 09, 2013	Jun. 30, 2018	Apr. 30, 2018	Mar. 31, 2018	Feb. 28, 2018	Jun. 30, 2018	May 01, 2018	Dec. 31, 2017	Jun. 30, 2017
NOTE 6 - SERIES C 9% CONVERTIBLE PREFERRED STOCK (Details) [Line Items]
Class of Warrant or Rights, Granted						2,449,840
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ 1.50				$ 1.50	$ 1.50		$ 1.50
Warrant, Description of Warrant	after six months from the issuance date, there is no effective registration statement registering the resale, or no current prospectus available for the resale, of the shares of common stock underlying the warrants, the warrants may be exercised by means of a “cashless exercise”.
Class of Warrant or Right, Outstanding		13,546,521				13,546,521		12,789,086
Conversion of Stock, Shares Issued		18,968	351,021	10,010	9,919
Series C Preferred Stock [Member]
NOTE 6 - SERIES C 9% CONVERTIBLE PREFERRED STOCK (Details) [Line Items]
Temporary Equity, Shares Authorized	4,200
Preferred Stock, Liquidation Preference, Value (in Dollars)	$ 1,000
Preferred Stock, Dividend Rate, Percentage	9.00%
Temporary Equity, Par Value (in Dollars)	$ 1,000
Preferred Stock, Dividend Payment Terms	payable quarterly
Preferred Stock, Voting Rights	The holders of the Series C Preferred Stock vote together with the holders of our common stock on an as-converted basis, but may not vote the Series C Preferred Stock in excess of the beneficial ownership limitation of the Series C Preferred Stock.  The beneficial ownership limitation is 4.99% of our then outstanding shares of common stock following such conversion or exercise, which may be increased to up to 9.99% of our then outstanding shares of common stock following such conversion or exercise upon the request of an individual holder.
Preferred Stock, Beneficial Ownership Limitation and Covenant, Description	The beneficial ownership limitation is determined on an individual holder basis, such that the as-converted number of shares of one holder is not included in the shares outstanding when calculating the limitation for a different holder.
Conversion of Stock, Shares Issued		18,968	351,021	10,010	9,919
Conversion of Stock, Shares Converted		20	370	10	10
Temporary Equity, Shares Outstanding		575				575		985
Dividends Payable (in Dollars)		$ 267,189				$ 267,189		$ 419,283
Warrants at $2.61 [Member]
NOTE 6 - SERIES C 9% CONVERTIBLE PREFERRED STOCK (Details) [Line Items]
Class of Warrant or Rights, Granted	1,330,627
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)	$ 2.61
Warrants, Term of Warrants	5 years
Full-Ratchet Anti-Dilution Protection Provision [Member] | Series C Preferred Stock [Member]
NOTE 6 - SERIES C 9% CONVERTIBLE PREFERRED STOCK (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)	$ 1.50
Class of Warrant or Right, Outstanding	2,315,301

XML

NOTE 7 - WARRANT AND DERIVATIVE LIABILITIES (Details) - USD ($)			3 Months Ended	6 Months Ended		12 Months Ended
	Jan. 01, 2018	Nov. 03, 2017	Mar. 31, 2015	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
NOTE 7 - WARRANT AND DERIVATIVE LIABILITIES (Details) [Line Items]
Embedded Derivative, Fair Value of Embedded Derivative Liability (in Dollars)		$ 397,162	$ 1,242,590	$ 0		$ 685,922
Derivative Liability, Current (in Dollars)		$ 652,054	$ 4,097,444	0		$ 2,358,240
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity (in Dollars)	$ 3,044,162
Embedded Derivative Financial Instruments [Member]
NOTE 7 - WARRANT AND DERIVATIVE LIABILITIES (Details) [Line Items]
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Risk Free Interest Rate		1.74%
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Dividend Rate		0.00%	0.00%
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Volatility Rate		130.00%	141.00%			131.00%
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term						0 years
Embedded Derivative, No Longer Bifurcated, Amount Reclassified to Stockholders' Equity (in Dollars)				$ 0	$ 15,676
Embedded Derivative Financial Instruments [Member] | Minimum [Member]
NOTE 7 - WARRANT AND DERIVATIVE LIABILITIES (Details) [Line Items]
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Risk Free Interest Rate			0.56%			1.39%
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term						1 year 156 days
Embedded Derivative Financial Instruments [Member] | Maximum [Member]
NOTE 7 - WARRANT AND DERIVATIVE LIABILITIES (Details) [Line Items]
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Risk Free Interest Rate			0.89%			1.89%
Share-based Goods and Nonemployee Services Transaction, Valuation Method, Expected Term						3 years 131 days

XML

NOTE 8 - STOCKHOLDER EQUITY (Details) - USD ($)		1 Months Ended						6 Months Ended
	Feb. 16, 2018	Jun. 30, 2018	May 31, 2018	Apr. 30, 2018	Mar. 31, 2018	Feb. 28, 2018	Jan. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	May 01, 2018	Dec. 31, 2017
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Preferred Stock, Shares Authorized		1,000,000						1,000,000			1,000,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)		$ 0.001						$ 0.001			$ 0.001
Conversion of Stock, Shares Issued		18,968		351,021	10,010	9,919
Class of Warrant or Rights, Granted								2,449,840
Common Stock, Par or Stated Value Per Share (in Dollars per share)		$ 0.001						$ 0.001			$ 0.001
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)		$ 1.50						$ 1.50	$ 1.50	$ 1.50
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				500,000						583,334
Common Stock, Shares Authorized		200,000,000						200,000,000			200,000,000
Common Stock, Shares, Issued		36,709,302						36,709,302			29,321,204
Common Stock, Shares, Outstanding		36,709,302						36,709,302			29,321,204
Stock Issued During Period, Value, Issued for Services (in Dollars)								$ 2,531,500
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable (in Dollars)		$ 29,985						29,985
Proceeds from Warrant Exercises (in Dollars)								$ 427,896	$ 0
Series A Preferred Stock [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Preferred Stock, Shares Authorized		200						200			200
Series B Preferred Stock [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Preferred Stock, Shares Authorized		600						600			600
Series C Preferred Stock [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Preferred Stock, Shares Authorized		4,200						4,200			4,200
Conversion of Stock, Shares Issued		18,968		351,021	10,010	9,919
Conversion of Stock, Shares Converted		20		370	10	10
Series D Preferred Stock [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Preferred Stock, Shares Authorized		1,400						1,400			1,400
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)		$ 0.001						$ 0.001			$ 0.001
Conversion of Stock, Shares Issued		34,290	261,709	577,339	489,231	131,432	235,911
Conversion of Stock, Shares Converted		27	206	454	367	100	180
Series E Preferred Stock [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Preferred Stock, Shares Authorized		1,000						1,000			1,000
Preferred Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.001	$ 0.001						$ 0.001			$ 0.001
Stock Issued During Period, Shares, New Issues	1,000
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants (in Dollars)	$ 1,492,969							$ 1,500,000
Payments of Stock Issuance Costs (in Dollars)	$ 7,031
2012 Equity Incentive Plan [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)				$ 1.75
Sale of Warrants in Connection With Series E Preferred Stock[Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Class of Warrant or Rights, Granted	500,000
Common Stock, Par or Stated Value Per Share (in Dollars per share)	$ 0.001
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)	$ 1.75
Consent Agreement, Series D Holders [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Class of Warrant or Rights, Granted	100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)	$ 1.50
Services Provided [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services								1,450,000
Stock Issued During Period, Value, Issued for Services (in Dollars)								$ 2,531,500
Shares Issued, Price Per Share (in Dollars per share)		$ 1.75						$ 1.75
Securities Purchase Agreements [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Stock Issued During Period, Shares, New Issues								3,513,004
Class of Warrant or Rights, Granted								1,756,506
Proceeds from Issuance of Preferred Stock, Preference Stock, and Warrants (in Dollars)								$ 5,268,445
Common Stock Subscription [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Stock Issued During Period, Shares, New Issues								20,000
Class of Warrant or Rights, Granted								10,000
Stock in Exchange for Proceeds of Exercise of Warrants [Member]
NOTE 8 - STOCKHOLDER EQUITY (Details) [Line Items]
Stock Issued During Period, Shares, New Issues								285,264
Proceeds from Warrant Exercises (in Dollars)								$ 427,896

XML

NOTE 9 - OPTIONS AND WARRANTS (Details) - USD ($)												3 Months Ended		6 Months Ended
	May 14, 2018	May 11, 2018	May 04, 2018	May 01, 2018	Apr. 30, 2018	Feb. 16, 2018	Feb. 15, 2018	Feb. 14, 2018	Jan. 05, 2018	Feb. 08, 2017	Oct. 19, 2012	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)														865,000
Share-based Compensation (in Dollars)														$ 3,945,521	$ 1,082,858
Class of Warrant or Rights, Granted (in Shares)														2,449,840
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 1.50								$ 1.50	$ 1.50	$ 1.50	$ 1.50
Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation (in Dollars)												$ 1,167,313	$ 54,243	$ 1,414,021	$ 97,227
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)												$ 387,971		$ 387,971			$ 979,812
Warrants at $1.50 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights												$ 1.50		$ 1.50
Warrants at $1.75 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights												1.75		1.75
2012 Equity Incentive Plan [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 1.75
2012 Equity Incentive Plan [Member] | Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in Shares)											15,186,123
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award											the exercise price of an Incentive Stock Option should not be less than 110% of fair value of the common stock at the date of the grant for a 10% or more stockholder and 100% of fair value for a grantee who is not 10% stockholder.
Share Price												$ 2.37		$ 2.37		$ 2.37
2012 Equity Incentive Plan [Member] | Maximum [Member] | Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period											10 years
2012 Equity Incentive Plan [Member] | Warrants at $1.50 [Member] | Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted (in Shares)				83,334					100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights				$ 1.50					$ 1.50
Warrant, Expriation Date									Jan. 05, 2021
2012 Equity Incentive Plan [Member] | Warrants at $1.75 [Member] | Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted (in Shares)		70,000			1,596,506
Class of Warrant or Right, Exercise Price of Warrants or Rights		$ 1.75			$ 1.75
2012 Equity Incentive Plan [Member] | Warrants at $1.75 [Member] | Series E Preferred Stock [Member] | Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted (in Shares)						500,000
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 1.75
2012 Equity Incentive Plan [Member] | Warrants Reset from $1.7 to $1.50 [Member] | Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted (in Shares)					500,000
Class of Warrant or Right, Exercise Price of Warrants or Rights					$ 1.50
2012 Equity Incentive Plan [Member] | Options at $1.42 [Member] | Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)							50,000
Share-based Compensation Arrangement by Share-basd Payment Award, Options, Exercise Price							$ 1.42
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period										10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights							vesting immediately
2012 Equity Incentive Plan [Member] | Warrants at $1.77 [Member] | Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross (in Shares)	250,000		565,000
Share-based Compensation Arrangement by Share-basd Payment Award, Options, Exercise Price	$ 1.77		$ 1.77
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period	10 years		10 years
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights	vesting immediately		vesting immediately
Consent Agreement, Series D Holders [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted (in Shares)						100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights						$ 1.50
Consent Agreement, Series D Holders [Member] | 2012 Equity Incentive Plan [Member] | Employee Stock Option [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) [Line Items]
Class of Warrant or Rights, Granted (in Shares)								100,000
Class of Warrant or Right, Exercise Price of Warrants or Rights								$ 1.50

XML

NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Number of Options	8,745,319	8,510,319
Options Outstanding, Weighted Average Remaining Life	5 years 36 days	5 years 73 days
Options Exercisable, Number of Options	8,004,153
Options at $1.01-$2.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price, Lower Range Limit (in Dollars per share)	$ 1.01
Options Outstanding, Exercise Price, Upper Range Limit (in Dollars per share)	$ 2.00
Options Outstanding, Number of Options	4,060,540
Options Outstanding, Weighted Average Remaining Life	7 years
Options Exercisable, Number of Options	3,319,374
Options at $2.01-$3.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price, Lower Range Limit (in Dollars per share)	$ 2.01
Options Outstanding, Exercise Price, Upper Range Limit (in Dollars per share)	$ 3.00
Options Outstanding, Number of Options	4,384,779
Options Outstanding, Weighted Average Remaining Life	3 years 73 days
Options Exercisable, Number of Options	4,384,779
Options at $3.01-$4.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding, Exercise Price, Lower Range Limit (in Dollars per share)	$ 3.01
Options Outstanding, Exercise Price, Upper Range Limit (in Dollars per share)	$ 4.00
Options Outstanding, Number of Options	300,000
Options Outstanding, Weighted Average Remaining Life	6 years 292 days
Options Exercisable, Number of Options	300,000

XML

NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Share-based Compensation, Stock Options, Activity - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Schedule of Share-based Compensation, Stock Options, Activity [Abstract]
Options Outstanding, Shares	8,745,319	8,510,319
Options Outstanding, Weighted-Average Exercise Price (in Dollars per share)	$ 2.11	$ 2.11
Options Outstanding, Weighted-Average Remaining Contractual Term	5 years 36 days	5 years 73 days
Options Outstanding, Aggregate Intrinsic Value (in Dollars)	$ 3,190,390	$ 27,045
Options Exercisable, Shares	8,004,153	7,347,486
Options Exercisable, Weighted-Average Exercise Price (in Dollars per share)	$ 2.16
Options Exercisable, Weighted-Average Remaining Contractual Term	4 years 292 days
Options Exercisable, Aggregate Intrinsic Value (in Dollars)	$ 2,648,701
Options Granted, Shares	865,000
Options Granted, Weighted-Average Exercise Price (in Dollars per share)	$ 1.75
Options Granted, Weighted-Average Remaining Contractual Term	10 years
Options Exercised, Shares	0
Options Canceled, Shares	(630,000)
Options Canceled, Weighted-Average Exercise Price (in Dollars per share)	$ 1.56

XML

NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions	6 Months Ended
	Jun. 30, 2018 $ / shares
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items]
Dividend yield	0.00%
Expected life	5 years
Weighted average grant date fair value (in Dollars per share)	$ 1.28
Minimum [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items]
Risk-free interest rate	2.65%
Stock price volatility	92.65%
Maximum [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Line Items]
Risk-free interest rate	2.85%
Stock price volatility	94.10%

XML

NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range - $ / shares	6 Months Ended
	Jun. 30, 2018	May 01, 2018	Dec. 31, 2017	Jun. 30, 2017
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 1.50	$ 1.50		$ 1.50
Number of Warrants Outstanding	13,546,521		12,789,086
Warrants at $0.001 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 0.001
Number of Warrants Outstanding	383,320
Expiration Date, Warrants	January 2020
Warrants at $1.50 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 1.50
Number of Warrants Outstanding	7,758,369
Expiration Date, Warrants	July 2018 to August 2021
Warrants at $1.75 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 1.75
Number of Warrants Outstanding	1,666,506
Expiration Date, Warrants	May 2021
Warrants at $1.84 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 1.84
Number of Warrants Outstanding	35,076
Expiration Date, Warrants	January 2020
Warrants at $1.95 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 1.95
Number of Warrants Outstanding	1,689,026
Expiration Date, Warrants	October 2018 to September 2019
Warrants at $2.00 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 2.00
Number of Warrants Outstanding	100,000
Expiration Date, Warrants	August 2018
Warrants at $2.02 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 2.02
Number of Warrants Outstanding	30,755
Expiration Date, Warrants	January 2020
Warrants at $2.50 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 2.50
Number of Warrants Outstanding	100,000
Expiration Date, Warrants	August 2018
Warrants at $2.75 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 2.75
Number of Warrants Outstanding	228,720
Expiration Date, Warrants	August 2019 to September 2019
Warrants at $3.67 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 3.67
Number of Warrants Outstanding	214,193
Expiration Date, Warrants	December 2018 to January 2019
Warrants at $3.75 [Member]
NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Warrants or Rights, Shares Authorized, by Exercise Price Range [Line Items]
Exercise Price, Warrants (in Dollars per share)	$ 3.75
Number of Warrants Outstanding	1,340,556
Expiration Date, Warrants	April 2019 to March 2020

XML

NOTE 9 - OPTIONS AND WARRANTS (Details) - Schedule of Stockholders' Equity Note, Warrants or Rights - USD ($)	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Schedule of Stockholders' Equity Note, Warrants or Rights [Abstract]
Warrants Outstanding, Shares	13,546,521	12,789,086
Warrants Outstanding, Weighted-Average Exercise Price	$ 1.84	$ 1.82
Warrants Outstanding, Weighted-Average Remaining Contractual Term	1 year 255 days	1 year 255 days
Warrants Outstanding, Aggregate Intrinsic Value	$ 9,466,845	$ 551,636
Warrants Vested and expected to vest, Shares	13,546,521
Warrants Vested and expected to vest, Weighted-Average Exercise Price	$ 1.84
Warrants Vested and expected to vest, Weighted-Average Remaining Contractual Term	1 year 255 days
Warrants Vested and expected to vest, Aggregate Intrinsic Value	$ 9,466,845
Warrants Exercisable, Shares	13,546,521
Warrants Exercisable, Weighted-Average Exercise Price	$ 1.84
Warrants Exercisable, Weighted-Average Remaining Contractual Term	1 year 255 days
Warrants Exercisable, Aggregate Intrinsic Value	$ 9,466,845
Warrants Granted, Shares	2,449,840
Warrants Granted, Weighted-Average Exercise Price	$ 1.67
Warrants Granted, Weighted-Average Remaining Contractual Term	3 years
Warrants Exercised, Shares	(285,264)
Warrants Exercised, Weighted-Average Exercise Price	$ 1.50
Warrants Canceled, Shares	(1,407,141)
Warrants Canceled, Weighted-Average Exercise Price	$ 1.50

XML

NOTE 10 - RELATED PARTY TRANSACTIONS (Details) - USD ($)		3 Months Ended		6 Months Ended
	Nov. 01, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Payments for Patent Costs, Consulting Fees and Expense Reimbursements		$ 102,219	$ 277,219	$ 102,219	$ 277,219
Affiliated Entity [Member]
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Related Party Transaction, Description of Transaction	Company will pay Sherpa fee of (i) $200,000 in cash, of which $25,000 will be paid on January 1, 2018, with the remainder to be paid upon completion of certain objectives, and (ii) a ten-year option to purchase up to 300,000 of the Company’s common stock at an exercise of $1.50 per share of common stock, of which 150,000 options vest immediately and 150,000 options are performance conditioned
Reimbursable Travel and Other Related Expenses [Member]
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Due to Related Parties		12,648		12,648		$ 27,375
Patent Costs, Consulting Fees and Expense Reimbursements [Member]
NOTE 10 - RELATED PARTY TRANSACTIONS (Details) [Line Items]
Accrued Liabilities		$ 0		$ 0		$ 0

XML

NOTE 11 - COMMITMENTS AND CONTINGENCIES (Details)	6 Months Ended
	Jun. 30, 2018 USD ($)
Parking Space Leases [Member]
NOTE 11 - COMMITMENTS AND CONTINGENCIES (Details) [Line Items]
Operating Leases, Rent Expense, Minimum Rentals	$ 1,017

XML

NOTE 11 - COMMITMENTS AND CONTINGENCIES (Details) - Schedule of Future Minimum Rental Payments for Operating Leases	Jun. 30, 2018 USD ($)
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract]
2018	$ 100,465
2019	198,239
2020	201,993
2021	102,623
	$ 603,320

XML

NOTE 12 - FAIR VALUE MEASUREMENT (Details) - Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	6 Months Ended
	Jun. 30, 2018 USD ($)
Warrant [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance	$ 2,358,240
Transfers out	(2,358,240)
Balance	0
Embedded Derivative Financial Instruments [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Balance	685,922
Transfers out	(685,922)
Balance	$ 0

XML

NOTE 13 - SUBSEQUENT EVENTS (Details) - USD ($)				1 Months Ended					6 Months Ended
	Jul. 25, 2018	Jul. 24, 2018	Jul. 11, 2018	Jul. 31, 2018	Jun. 30, 2018	Apr. 30, 2018	Mar. 31, 2018	Feb. 28, 2018	Jun. 30, 2018	Jun. 30, 2017	May 01, 2018
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items]
Conversion of Stock, Shares Issued					18,968	351,021	10,010	9,919
Stock Issued During Period, Value, Issued for Services (in Dollars)									$ 2,531,500
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)					$ 1.50				$ 1.50	$ 1.50	$ 1.50
Proceeds from Warrant Exercises (in Dollars)									$ 427,896	$ 0
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable (in Dollars)					$ 29,985				$ 29,985
Class of Warrant or Rights, Granted									2,449,840
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period									0
Class of Warrant or Rights, Exercised									285,264
Subsequent Event [Member]
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items]
Stock Issued During Period, Shares, Issued for Services			101,000
Stock Issued During Period, Value, Issued for Services (in Dollars)			$ 237,300
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)	$ 2.00
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period		50,000
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price (in Dollars per share)		$ 1.74
Proceeds from Stock Options Exercised (in Dollars)		$ 87,000
Stock Issued During Period, Shares, Conversion of Convertible Securities	14,606
Class of Warrant or Rights, Exercised	100,000
Shares Issued, Price Per Share (in Dollars per share)	$ 2.3421
Series C Preferred Stock [Member]
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items]
Conversion of Stock, Shares Issued					18,968	351,021	10,010	9,919
Conversion of Stock, Shares Converted					20	370	10	10
Series C Preferred Stock [Member] | Subsequent Event [Member]
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items]
Conversion of Stock, Shares Issued				90,087
Conversion of Stock, Shares Converted				100
Warrants at $1.50 [Member] | Subsequent Event [Member]
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items]
Stock Issued During Period, Shares, New Issues				379,897
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)				$ 1.50
Proceeds from Warrant Exercises (in Dollars)				$ 569,846
Unit Purchase Agreements [Member | Subsequent Event [Member]
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items]
Common Stock, Share Subscribed but Unissued, Subscriptions Receivable (in Dollars)				209,655
Proceeds from Issuance or Sale of Equity (in Dollars)				477,801
Payments of Stock Issuance Costs (in Dollars)				$ 210
Unit Purchase Agreements [Member | Subsequent Event [Member] | Series A Warrants [Member]
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)				$ 1.50
Class of Warrant or Rights, Granted				52,416
Warrants and Rights Outstanding, Term				9 years
Unit Purchase Agreements [Member | Subsequent Event [Member] | Series B Warrants [Member]
NOTE 13 - SUBSEQUENT EVENTS (Details) [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights (in Dollars per share)				$ 2.74
Class of Warrant or Rights, Granted				52,416
Warrants and Rights Outstanding, Term				3 years