View Filing Data

DOCUMENT AND ENTITY INFORMATION	9 Months Ended
DOCUMENT AND ENTITY INFORMATION	Sep. 30, 2012
Document Type	S-1
Amendment Flag	true
Document Period End Date	Sep. 30, 2012
Entity Registrant Name	ATOSSA GENETICS INC
Entity Central Index Key	0001488039
Entity Filer Category	Smaller Reporting Company
Amendment Description	This Amendment No. 1 on Form S-1/A amends the Registration Statement on Form S-1, No. 333-186248, of Atossa Genetics Inc., originally filed with the Securities and Exchange Commission on January 28, 2013. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files attached as Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those Sections.

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Assets
Cash and cash equivalents	$ 418,570	$ 1,910,821	$ 10,253
Restricted cash	250,000	1,000,000	0
Accounts receivable	175,408	1,224	0
Prepaid expense	39,975	31,184	0
Rental deposit	1,500	2,200	0
Total Current Assets	885,453	2,945,429	10,253
Fixed Assets
Furniture and Equipment, net	67,497	80,467	0
Total Fixed Assets	67,497	80,467	0
Other Assets
Security deposit	36,446	5,157	4,757
Intangible assets, net	4,703,078	40,841	0
Total Other Assets	4,739,524	45,998	4,757
Total Assets	5,692,474	3,071,894	15,010
Liabilities and Stockholders' Equity (Deficit)
Line of Credit	250,000	1,000,000	0
Accounts payable	72,100	64,766	0
Accrued payroll		0	278,571
Accrued expenses	1,888,344	442,329	399,289
Note payable - related party	80,453	5,078	189,000
Total Current Liabilities	2,290,897	1,512,173	866,861
Stockholders' Equity
Preferred stock - $.001 par value; 10,000,000 shares authorized, 0 shares issued and outstanding	0	0	0
Common stock - $.001 par value; 75,000,000 shares authorized, 12,119,367, 11,256,867 and 6,000,067 shares issued and outstanding, respectively	12,119	11,257	6,000
Additional paid-in capital	11,415,761	6,200,520	351,936
Accumulated deficit	(8,026,303)	(4,652,056)	(1,209,787)
Total Stockholders' Equity (Deficit)	3,401,577	1,559,721	(851,851)
Total Liabilities and Stockholders' Equity (Deficit)	$ 5,692,474	$ 3,071,894	$ 15,010

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000	10,000,000
Preferred stock, shares issued	0	0	0
Preferred stock, shares outstanding	0	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001	$ 0.001
Common stock, shares authorized	75,000,000	75,000,000	75,000,000
Common stock, shares issued	12,119,367	11,256,867	6,000,067
Common stock, shares outstanding	12,119,367	11,256,867	6,000,067

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended		32 Months Ended	41 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Sep. 30, 2012
Revenue
Diagnostic Testing Service	$ 104,011	$ 0	$ 376,696	$ 0				$ 376,696
Product Sales	1,565	0	6,690	0				8,190
Total Revenue	105,576	0	383,386	0	$ 1,500	$ 0	$ 1,500	384,886
Cost of Revenue
Diagnostic Testing Service	(9,000)	0	(29,985)	0				(29,985)
Product Sales	0	0	0	0				(5,164)
Total Cost Of Revenue	(9,000)	0	(29,985)	0	(5,164)	0	(5,164)	(35,149)
Loss on Reduction of Inventory to LCM	(6,077)	0	(29,884)	0	(92,026)	0	(92,026)	(121,910)
Gross Profit	90,499	0	323,517	0	(95,690)	0	(95,690)	227,827
Selling expenses	(87,704)	0	(281,971)	0	(160,851)	(12,204)	(173,055)	(455,026)
General and Administrative expenses	(1,138,467)	(1,274,189)	(3,405,198)	(2,231,906)	(3,172,649)	(1,065,792)	(4,361,299)	(7,766,497)
Total operating expenses	(1,226,171)	(1,274,189)	(3,687,169)	(2,231,906)	(3,333,500)	(1,077,996)	(4,534,353)	(8,221,523)
Operating Loss	(1,135,672)	(1,274,189)	(3,363,652)	(2,231,906)	(3,429,190)	(1,077,996)	(4,630,043)	(7,993,694)
Interest Income	46	2,267	1,219	3,428	4,914	455	5,369	6,588
Interest Expense	(7,756)	(758)	(11,816)	(8,388)	(17,992)	(9,139)	(27,131)	(38,947)
Net Loss before Income Taxes	(1,143,382)	(1,272,680)	(3,374,249)	(2,236,866)	(3,442,269)	(1,086,680)	(4,651,806)	(8,026,053)
Income Taxes	0	0	0	0	0	250	250	250
Net Loss	$ (1,143,382)	$ (1,272,680)	$ (3,374,249)	$ (2,236,866)	$ (3,442,269)	$ (1,086,930)	$ (4,652,056)	$ (8,026,303)
Loss per common share - basic (in dollars per share)					$ (0.38)	$ (0.18)	$ (0.70)
Loss per common share - diluted (in dollars per share)					$ (0.38)	$ (0.18)	$ (0.70)
Loss per common share - basic and diluted (in dollars per share)	$ (0.10)	$ (0.11)	$ (0.30)	$ (0.27)				$ (1.05)
Weighted average shares outstanding, basic (in shares)					9,117,746	5,935,897	6,645,834
Weighted average shares outstanding, diluted (in shares)					9,117,746	6,004,721	6,645,834
Weighted average shares outstanding, basic & diluted (in shares)	11,256,867	11,256,867	11,256,867	8,394,219				7,657,400

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended		12 Months Ended		32 Months Ended	41 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (3,374,249)	$ (2,236,866)	$ (3,442,269)	$ (1,086,930)	$ (4,652,056)	$ (8,026,303)
Common shares issued for services	0	0	0	71,000	71,000	71,000
Compensation cost for stock options granted	96,251	111,288	140,056	30,396	170,452	266,703
Loss on reduction of inventory to LCM	29,884	0	92,026	0	92,026	121,910
Loan initiation fee accrued for notes payable	0	0	0	2,000	2,000	2,000
Depreciation and amortization	25,586	6,420	15,623	0	15,623	41,208
Adjustments to reconcile net loss to net cash provided by operating activities:
Increase in accounts receivable	(174,183)	0	(1,224)	0	(1,224)	(175,407)
Increase in inventory	(29,884)	0	(92,026)	0	(92,026)	(121,910)
Increase in prepaid expenses	(8,791)	(41,946)	(31,184)	0	(31,184)	(39,975)
Increase in security deposits	(30,589)	(2,200)	(2,600)	(3,657)	(7,357)	(37,946)
Increase (decrease) in accounts payable	7,335	(1,500)	64,765	0	64,766	72,101
Increase (decrease) in accrued payroll	0	(278,571)	(278,571)	278,571	0	0
Increase (decrease) in accrued expenses	1,491,014	(10,392)	43,040	363,008	442,329	1,933,342
Increase (Decrease) in royalty payable - related party			0	(12,500)	0
Net cash used in operating activities	(1,967,626)	(2,453,767)	(3,492,364)	(358,111)	(3,925,651)	(5,893,277)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of furniture & fixtures	0	(35,776)	(86,465)	0	(86,465)	(86,465)
Purchase of software	0	(49,500)	(50,466)	0	(50,466)	(50,466)
Net cash used in investing activities	0	(85,276)	(136,931)	0	(136,931)	(136,931)
CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from issuance of common stocks and warrants	400,000	5,713,785	5,713,785	102,000	5,970,325	6,370,325
(Repayments of) Proceeds from bank line of credit	(750,000)	1,000,000	1,000,000	0	1,000,000	250,000
Proceeds from (repayments of) loans from related parties	75,375	(179,000)	(183,922)	182,000	3,078	78,453
Cash released from (restricted for) commercial line of credit	750,000	(1,000,000)	(1,000,000)	0	(1,000,000)	(250,000)
Net cash provided by financing activities	475,375	5,534,785	5,529,863	284,000	5,973,403	6,448,778
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS	(1,492,251)	2,995,742	1,900,568	(74,111)	1,910,821	418,570
CASH & CASH EQUIVALENTS, BEGINNING BALANCE	1,910,821	10,253	10,253	84,364		0
CASH & CASH EQUIVALENTS, ENDING BALANCE	418,570	3,005,994	1,910,821	10,253	1,910,821	418,570
SUPPLEMENTAL DISCLOSURES:
Interest paid	13,892	5,389	17,992	0	17,992	19,281
Income taxes paid	0	0	$ 0	$ 250	$ 250	250
NONCASH INVESTING AND FINANCING ACTIVITIES:
Common stock and warrants issued for assets purchase	4,674,853	0				0
Options issued for previously accrued director compensation	$ 45,000	$ 0				$ 0

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Total
Balance at Apr. 30, 2009	$ 0	$ 0	$ 0	$ 0
Balance (in shares) at Apr. 30, 2009	0
Issuance of shares for cash one	$ 3,976	50,024	0	54,000
Issuance of shares for cash one (in shares)	3,976,465
Issuance of shares for cash two	$ 40	500	0	540
Issuance of shares for cash two (in shares)	39,765
Issuance of shares for cash three	$ 884	99,116	0	100,000
Issuance of shares for cash three (in shares)	883,658
Net loss	$ 0	0	(122,857)	(122,857)
Balance at Dec. 31, 2009	$ 4,900	149,640	(122,857)	31,683
Balance (in shares) at Dec. 31, 2009	4,899,888
Balance at Apr. 30, 2009	$ 0	0	0	0
Balance (in shares) at Apr. 30, 2009	0
Net loss				(4,652,056)
Balance at Dec. 31, 2011	$ 11,257	6,200,520	(4,652,056)	$ 1,559,721
Balance (in shares) at Dec. 31, 2011	11,256,867			11,256,867
Balance at Dec. 31, 2009	$ 4,900	149,640	(122,857)	$ 31,683
Balance (in shares) at Dec. 31, 2009	4,899,888
Issuance of shares for cash one	$ 866	97,134	0	98,000
Issuance of shares for cash one (in shares)	866,007
Issuance of shares for cash two	$ 35	3,965	0	4,000
Issuance of shares for cash two (in shares)	35,347
Issuance of common shares for services at $0.11 per share, January 21, 2010	$ 186	20,814	0	21,000
Issuance of common shares for services at $0.11 per share, January 21, 2010 (in shares)	185,569
Issuance of common shares on April 27, 2010 for services for $50,000 or 13,256 shares (30,000 shares post-split) as agreed upon in December 2009	$ 13	49,987	0	50,000
Issuance of common shares on April 27, 2010 for services for $50,000 or 13,256 shares (30,000 shares post-split) as agreed upon in December 2009 (in shares)	13,256
Compensation cost for stock options to executives, directors and employees	$ 0	30,396	0	30,396
Net loss	0	0	(1,086,930)	(1,086,930)
Balance at Dec. 31, 2010	$ 6,000	351,936	(1,209,787)	$ (851,851)
Balance (in shares) at Dec. 31, 2010	6,000,067			6,000,067
Issuance of common shares and warrants for cash at $1.25 per share, April 29, 2011	$ 1,612	1,748,438	0	$ 1,750,050
Issuance of common shares and warrants for cash at $1.25 per share, April 29, 2011 (in shares)	1,612,000
Issuance of common shares and warrants for cash at $1.25 per share, June 1, 2011	$ 1,376	1,495,024	0	1,496,400
Issuance of common shares and warrants for cash at $1.25 per share, June 1, 2011 (in shares)	1,376,000
Issuance of common shares and warrants for cash at $1.25 per share, June 10, 2011	$ 682	741,008	0	741,690
Issuance of common shares and warrants for cash at $1.25 per share, June 10, 2011 (in shares)	682,000
Issuance of common shares and warrants for cash at $1.25 per share, June 24, 2011	$ 1,587	1,724,058	0	1,725,645
Issuance of common shares and warrants for cash at $1.25 per share, June 24, 2011 (in shares)	1,586,800
Compensation cost for stock options to executives, directors and employees	$ 0	140,056	0	140,056
Net loss	0	0	(3,442,269)	(3,442,269)
Balance at Dec. 31, 2011	$ 11,257	$ 6,200,520	$ (4,652,056)	$ 1,559,721
Balance (in shares) at Dec. 31, 2011	11,256,867			11,256,867
Net loss				$ (3,374,249)
Balance at Sep. 30, 2012				$ 3,401,577
Balance (in shares) at Sep. 30, 2012				12,119,367

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	8 Months Ended	12 Months Ended
	Dec. 31, 2009	Dec. 31, 2011	Dec. 31, 2010
Common Stock Par Value Per Share One	$ 0.014		$ 0.11
Common Stock Par Value Per Share Two	0.014		0.11
Common Stock Par Value Per Share Three	$ 0.11		$ 0.11
Stock Issued During Period, Shares, Stock Splits			13,256
Number Of Shares For Post Split			30,000
Common Stock and Warrants Par Value Per Share One		$ 1.25
Common Stock and Warrants Par Value Per Share Two		1.25
Common Stock and Warrants Par Value Per Share Three		1.25
Common Stock and Warrants Par Value Per Share Four		$ 1.25

NATURE OF OPERATIONS

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Organization, Consolidation and Presentation Of Financial Statements [Abstract]

Nature of Operations [Text Block]

NOTE 1: NATURE OF OPERATIONS

The Company’s operations began in December 2008 with the negotiations for the acquisition of the Mammary Aspirate Specimen Cytology Test System, or the MASCT System, patent rights and assignments and the FDA clearance for marketing, which acquisition was completed in January 2009. Atossa Genetics Inc. (the “Company”) was incorporated on April 30, 2009 in the State of Delaware. The Company was formed to develop and market the MASCT System, a cellular and molecular diagnostic risk assessment product for the detection of pre-cancerous changes that could lead to breast cancer. The Company’s fiscal year ends on December 31st.

In December 2011 the Company established the National Reference Laboratory for Breast Health, or NRLBH, as a wholly-owned subsidiary. NRLBH is the Company’s CLIA-certified laboratory where the ForeCYTE and ArgusCYTE test specimens are examined for the presence of normal, pre-malignant, or malignant changes as determined by cytopathology and biomarkers that distinguish “usual” ductal hyperplasia, a benign condition, from atypical ductal hyperplasia, which may lead to cancer. These cytopathological results provide patients and physicians with information about the care path that should be followed, depending on the individual risk of future cancer as determined by the results.

In September 2012 the Company acquired the assets of Acueity Healthcare, Inc. (“Acueity”). The assets included six 510(k)-cleared medical devices, 35 issued patents (18 issued in the U.S. and 17 issued in foreign countries) and 41 patent applications (32 in the U.S. and 9 in foreign countries). The FDA-cleared, patented medical devices consist of microendoscopes, light sources, and biopsy tools. The microendoscopes are less than 0.9 mm outside diameter and can be inserted into a milk duct. This permits a physician to pass a microendoscope into the milk duct system of the breast and view the duct system via fiberoptic video images. Abnormalities that are visualized can then be biopsied from inside the duct with the biopsy tools that are inserted adjacent to the microendoscope. The patents relate to intraductal diagnostic and therapeutic devices and methods of use. The Company did not, however, acquire an inventory of these diagnostic tools, manufacturing capabilities or any personnel to market and sell the tools. The Company cannot provide any assurance that it will be successful commercializing these tools.

Development Stage Risk

From April 30, 2009 (inception) through September 30, 2012, the Company earned $384,886 in revenue from the sale of its MASCT System and laboratory services. The Company’s activities have been accounted for as those of a “Development Stage Enterprise” as set forth in Accounting Standards Codification (“ASC”) 915 “Development Stage Entities”, which was previously Statement of Financial Accounting Standards No. 7 (“SFAS 7”). Among the disclosures required by ASC 915 are that the Company’s financial statements be identified as those of a development stage company, and that the statements of operations, stockholders’ equity and cash flows disclose activity since the date of the Company’s inception.

Since its inception, the Company has been dependent upon the receipt of capital investment to fund its continuing activities. In addition to the normal risks associated with a new business venture, there can be no assurance that the Company’s business plan will be successfully executed. The Company’s ability to execute its business plan will depend on its ability to obtain additional financing and achieve a profitable level of operations. There can be no assurance that sufficient financing will be obtained. Further, the Company cannot give any assurance that it will generate substantial revenue or that its business operations will prove to be profitable.

NOTE 1: NATURE OF OPERATIONS

In December 2011 the Company established the National Reference Laboratory for Breast Health, or NRLBH, as a wholly-owned subsidiary. NRLBH is the Company’s CLIA-certified laboratory where the ForeCYTE and ArgusCYTE test samples are screened for the presence of normal, pre-malignant, or malignant changes as determined by cytopathology and biomarkers that distinguish “usual” ductal hyperplasia, a benign condition, from atypical ductal hyperplasia, which may lead to cancer. These screening results provide patients and physicians with information about the care path that should be followed, depending on the individual risk of future cancer as determined by the results.

Development Stage Risk

To date, the Company has earned $1,500 in revenue from the sale of its MASCT System. Accordingly, the Company’s activities have been accounted for as those of a “Development Stage Enterprise” as set forth in Accounting Standards Codification (“ASC”) 915 “Development Stage Entities”, which was previously Statement of Financial Accounting Standards No. 7 (“SFAS 7”). Among the disclosures required by ASC 915 are that the Company’s financial statements be identified as those of a development stage company, and that the statements of operations, stockholders’ equity and cash flows disclose activity since the date of the Company’s inception.

GOING CONCERN

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Going Concern Disclosure [Abstract]

Going Concern Disclosure [Text Block]

NOTE 2: GOING CONCERN

The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenue sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management’s Plan to Continue as a Going Concern

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations.

NOTE 2: GOING CONCERN

Management’s Plan to Continue as a Going Concern

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its securities, (2) sales of the MASCT System and laboratory service revenue, and (3) short-term borrowings from stockholders or other related party(ies) when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually to secure other sources of financing and attain profitable operations.

SUMMARY OF ACCOUNTING POLICIES

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

NOTE 3: SUMMARY OF ACCOUNTING POLICIES

The unaudited consolidated financial statements of Atossa Genetics Inc. have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. However, the information included in these interim consolidated financial statements reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the consolidated financial position and the results of operations. Results shown for interim periods are not necessarily indicative of the results to be obtained for a full year. The consolidated balance sheet information as of December 31, 2011 was derived from the Company’s audited consolidated financial statements. These interim consolidated financial statements should be read in conjunction with that report. Certain comparative amounts have been reclassified to conform to the current period's presentation.

Basis of Presentation:

The accompanying consolidated financial statements include the financial statements of Atossa Genetics Inc. and its wholly-owned subsidiary NRLBH. All significant intercompany account balances and transactions have been eliminated in consolidation. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America.

Recently Issued Accounting Pronouncements:

The Company has adopted all recently issued accounting pronouncements that management believes to be applicable to the Company. The adoption of these accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.

Revenue Recognition:

Overview

The Company recognizes product and service revenue in accordance with GAAP when the following overall fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or the service has been performed, (iii) the Company’s price to the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured.

Product Revenue

The Company recognizes revenue for sales of the MASCT kits and devices upon receipt of cash as the company has an insufficient sales history on which to determine the collectability. Shipping documents and the completion of any customer acceptance requirements, when applicable, will be used to verify product delivery. The Company will assess whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Once a history of sales and collectability has been established, the company will recognize revenue on an accrual basis with an offsetting reserve for doubtful accounts based on the history during the initial sales period.

Service Revenue

The Company records revenue for diagnostic testing on an accrual basis at the Medicare allowed and invoiced amount. Amounts invoiced above the Medicare amount, namely non-Medicare, are not recognized on an accrual basis and instead are recognized on a cash basis as received. Diagnostic testing revenue at the Medicare rate is recognized upon completion of the test, communication of results to the patient’s physician, and when collectability is reasonably assured. Customer purchase orders and/or contracts will generally be used to determine the existence of an arrangement. Once the Company has historical sales and can determine the proper amount to recognize as uncollectible, it will then begin to recognize the entire amount, both Medicare and non-Medicare billing on an accrual basis, with an offsetting allowance for doubtful accounts recorded based on history. The Company estimates it will utilize the diagnostic testing revenue history once it reaches 12 months of collection data to determine a proper allowance for doubtful accounts.

Cash and Cash Equivalents:

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

As of September 30, 2012 and December 31, 2011, $250,000 and $1,000,000 of cash was restricted as collateral for a commercial line of credit obtained from JPMorgan Chase Bank in September 2011 (see Note 8). These amounts were designated as restricted cash under current assets on our consolidated balance sheets.

Use of Estimates:

The preparation of consolidated financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Accordingly, actual results could differ from those estimates.

Accounts Receivable:

Accounts receivable are recorded at net realizable value consisting of the carrying amount less allowance for doubtful accounts, as needed. We assess the collectability of accounts receivable based primarily upon the creditworthiness of the customer as determined by credit checks and analysis, as well as the customer’s payment history. Management reviews the composition of accounts receivable and analyzes historical bad debts, customer concentrations, customer credit worthiness, current economic trends, and changes in customer payment patterns to evaluate the adequacy of these reserves.

Inventories:

The Company’s inventories are stated at lower of cost or market. Cost is determined on a moving-average basis. Costs of inventories include purchase and related costs incurred in delivering the products to their present location and condition. Market value is determined by reference to selling prices after the balance sheet date or to management’s estimates based on prevailing market conditions. Inherent in the lower of cost or market calculation are several significant judgments based on a review of the aging of the inventory, inventory movement of products, economic conditions, and replacement costs. Because the sales price of the MASCT System was substantially lower than its cost for the nine months ended September 30, 2012 and for the year ended December 31, 2011, resulting in the net realizable value of the MASCT System being determined at zero as of the balance sheet dates through taking the average sales price subtracted by selling expenses per unit, a $29,884 and $92,026 loss on reduction of inventory to the lower of cost or market was assessed and recorded as of and for the period and for the year then ended, respectively. Additionally, management periodically evaluates the composition of its inventories at least quarterly to identify slow-moving and obsolete inventories to determine if any valuation allowance is required. As of September 30, 2012 and December 31, 2011, management had identified no slow moving or obsolete inventory.

The Company provides ForeCYTE testing specimen collection kits to doctors with our MASCT System for doctors to collect specimens that are returned to the Company for diagnostic analysis. These collection kits are considered part of the MASCT System. During the initial marketing phase, the Company has decided to distribute the kits to customers at no cost and bundle them with the MASCT System, and has not intended to deem the kits as a primary product line due to their nominal cost and value per unit. As a result, the kits are immediately expensed and recorded as selling expense upon purchasing of the kits. For the nine months ended September 30, 2012 and for the year ended December 31, 2011, selling expense of $36,741 and $0 was recorded related to the ForeCYTE kits, respectively.

Property, plant, and equipment:

Property, plant and equipment are stated at cost less accumulated depreciation. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When property, plant and equipment are retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations.

Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

		Useful Life
		(in years)
Machinery and equipment		5

Intangible assets:

For intangible assets subject to amortization, an impairment loss is recognized if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets as of September 30, 2012 and December 31, 2011 were mainly software acquired for the purpose of managing laboratory results and patents acquired (see Note 7).

Research and Development Expenses:

Research and development costs are generally expensed as incurred. The Company’s research and development expenses consist of costs incurred for internal and external research and development.

Share Based Payments:

In December 2004, the Financial Accounting Standards Board, or the FASB, issued the Statement of Financial Accounting Standards, or SFAS, No. 123(R), “Share-Based Payment”, which replaces SFAS No. 123 and supersedes APB Opinion No. 25. SFAS No. 123(R) is now included in the FASB’s ASC Topic 718, “Compensation – Stock Compensation.” Under SFAS No. 123(R), companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees or independent contractors are required to provide services. Share-based compensation arrangements include stock options and warrants, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. In March 2005, the SEC issued Staff Accounting Bulletin No. 107, or SAB 107, which expresses views of the staff regarding the interaction between SFAS No. 123(R) and certain SEC rules and regulations and provides the staff’s views regarding the valuation of share-based payment arrangements for public companies. SFAS No. 123(R) permits public companies to adopt its requirements using one of two methods. On April 14, 2005, the SEC adopted a new rule amending the compliance dates for SFAS No. 123(R). Companies may elect to apply this statement either prospectively, or on a modified version of retrospective application under which financial statements for prior periods are adjusted on a basis consistent with the pro forma disclosures required for those periods under SFAS No. 123.

The Company has fully adopted the provisions of FASB ASC 718 and related interpretations as provided by SAB 107. As such, compensation cost is measured on the date of grant as the fair value of the share-based payments. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant.

NOTE 3: SUMMARY OF ACCOUNTING POLICIES

Basis of Presentation:

Revenue Recognition:

Overview

The Company will recognize product and service revenue in accordance with GAAP when the following overall fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or the service has been performed, (iii) the Company’s price to the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured.

Product Revenue

The Company will recognize revenue for sales of the MASCT kits and devices upon receipt of cash during the initial three to six month period as the company has no sales history on which to determine the collectability. Shipping documents and the completion of any customer acceptance requirements, when applicable, will be used to verify product delivery. The Company will assess whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. Once a history of sales and collectability has been established, the company will recognize revenue on an accrual basis with an offsetting reserve for doubtful accounts based on the history during the initial sales period.

Service Revenue

The Company will record revenue for diagnostic testing on an accrual basis at the Medicare allowed and invoiced amount. Amounts invoiced above the Medicare amount, namely non-Medicare, are not recognized on an accrual basis and instead are recognized on a cash basis as received. Diagnostic testing revenue at the Medicare rate is recognized upon completion of the test, communication of results to the patient’s physician, and when collectability is reasonably assured. Customer purchase orders and/or contracts will generally be used to determine the existence of an arrangement. Once the Company has historical sales and can determine the proper amount to recognize as uncollectible, it will then begin to recognize the entire amount, both Medicare and non-Medicare billing on an accrual basis, with an offsetting allowance for doubtful accounts recorded based on history. The Company estimates it will take between 3 to 6 months of sales history to determine a proper allowance.

Cash and Cash Equivalents:

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

As of December 31, 2011, $1,000,000 of cash was restricted as collateral for $1,000,000 of a commercial line of credit obtained from JPMorgan Chase Bank in September 2011 (see Note 8). This amount is designated as restricted cash under current assets on our consolidated balance sheet.

Use of Estimates:

Accounts Receivable:

Inventories:

The Company’s inventories are stated at lower of cost or market. Cost is determined on a moving-average basis. Costs of inventories include purchase and related costs incurred in delivering the products to their present location and condition. Market value is determined by reference to selling prices after the balance sheet date or to management’s estimates based on prevailing market conditions. Inherent in the lower of cost or market calculation are several significant judgments based on a review of the aging of the inventory, inventory movement of products, economic conditions, and replacement costs. Because the sales price of the MASCT System was substantially lower than its cost for the year ended December 31, 2011, resulting in the net realizable value of the MASCT System being determined at zero as of the balance sheet date through taking the average sales price subtracted by selling expenses per unit, a $92,026 loss on reduction of inventory to the lower of cost or market was assessed and recorded as of and for the year then ended. Additionally, management periodically evaluates the composition of its inventories at least quarterly to identify slow-moving and obsolete inventories to determine if valuation allowance is required. As of December 31, 2011 and 2010, management had identified no slow moving or obsolete inventory.

The Company provides ForeCYTE testing specimen collection kits to doctors with our MASCT System for doctors to collect specimens that are returned to the Company for diagnostic analysis. These collection kits are considered part of the MASCT System. During the initial marketing phase, the Company has decided to distribute the kits to customers at no cost and bundle them with the MASCT System, and has not intended to deem the kits as a primary product line due to their nominal cost and value per unit. As a result, the kits are immediately expensed and recorded as selling expense upon purchasing of the kits. For the year ended December 31, 2011, selling expense of $0 was recorded related to the ForeCYTE kits.

Property, plant, and equipment:

Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:


	Useful Life (in years)
Machinery and equipment		5

Intangible assets:

For intangible assets subject to amortization, an impairment loss is recognized if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets as of December 31, 2011 were mainly software acquired for the purpose of managing laboratory results (see Note 7).

Research and Development Expenses:

Research and development costs are generally expensed as incurred. The Company’s research and development expenses consist of costs incurred for internal and external research and development.

Share Based Payments:

In December 2004, the Financial Accounting Standards Board, or the FASB, issued the Statement of Financial Accounting Standards, or SFAS, No. 123(R), “Share-Based Payment”, which replaces SFAS No. 123 and supersedes APB Opinion No. 25. SFAS No. 123(R) is now included in the FASB’s ASC Topic 718, “Compensation — Stock Compensation.” Under SFAS No. 123(R), companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees or independent contractors are required to provide services. Share-based compensation arrangements include stock options and warrants, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. In March 2005, the SEC issued Staff Accounting Bulletin No. 107, or SAB 107, which expresses views of the staff regarding the interaction between SFAS No. 123(R) and certain SEC rules and regulations and provides the staff’s views regarding the valuation of share-based payment arrangements for public companies. SFAS No. 123(R) permits public companies to adopt its requirements using one of two methods. On April 14, 2005, the SEC adopted a new rule amending the compliance dates for SFAS No. 123(R). Companies may elect to apply this statement either prospectively, or on a modified version of retrospective application under which financial statements for prior periods are adjusted on a basis consistent with the pro forma disclosures required for those periods under SFAS No. 123.

Recently Issued Accounting Pronouncements:

PREPAID EXPENSES

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Prepaid Expenses [Text Block]

NOTE 4: PREPAID EXPENSES

Prepaid expenses consisted of the following:

	September 30, 2012		December 31, 2011
Prepaid payroll taxes	$	36,083	$	-
Prepaid insurances		2,472		14,146
Prepaid hardware/software maintenance and support service fee		1,420		12,850
Prepaid rent		-		4,188
	$	39,975	$	31,184

NOTE 4: PREPAID EXPENSES

Prepaid expenses consisted of the following:


	December 31, 2011		December 31, 2010
Prepaid insurances	$	14,146	$	—
Prepaid hardware/software maintenance and support service fee		12,850		—
Prepaid rent		4,188		—
	$	31,184	$	—

RENTAL DEPOSITS

9 Months Ended

Sep. 30, 2012

Assets, Current [Abstract]

Deposit Assets Disclosures [Text Block]

NOTE 5: RENTAL DEPOSITS

Rental deposits amounted to $1,500 and $2,200 as of September 30, 2012 and December 31, 2011, respectively, mainly consisted of the security deposits for office leases. The rental deposit in the amount of $1,500 as of September 30, 2012 consisted of one office lease with the lease term from April 1, 2011 to March 31, 2013 (see Note 13). The rental deposit of $2,200 as of December 31, 2011 consisted of two office leases separate from the one as of September 30, 2012, and the lease terms were from July 11, 2011 to July 31, 2012 and from October 1, 2011 to March 31, 2012 (see Note 13). Both were terminated on July 31, 2012 and March 31, 2012, respectively and were not renewed, and the security deposits have been received in full amount as of September 30, 2012.

OTHER CURRENT ASSETS

12 Months Ended

Dec. 31, 2011

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets [Text Block]

NOTE 5: OTHER CURRENT ASSETS

Other current assets amounted to $2,200 as of December 31, 2011, and mainly consisted of security deposits for two office leases. The lease terms are from July 11, 2011 through July 31, 2012 and from October 1, 2011 to March 31, 2012, respectively (see Note 13).

PROPERTY, PLANT, AND EQUIPMENT

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 6: PROPERTY, PLANT, AND EQUIPMENT

Property, plant and equipment consisted of the following:

	September 30, 2012			December 31, 2011
Machinery and equipment	$	86,465		$	86,465
Less: Accumulated depreciation		(18,968	)		(5,998	)
Property, plant, and equipment, net	$	67,497		$	80,467

Depreciation expense for the nine months ended September 30, 2012 and 2011 was $12,970 and $3,920, respectively.

NOTE 6: PROPERTY, PLANT, AND EQUIPMENT

Property, plant and equipment consisted of the following:


	December 31, 2011			December 31, 2010
Machinery and equipment	$	86,465		$	—
Less: Accumulated depreciation		(5,998	)		—
Property, plant, and equipment, net	$	80,467		$	—

Depreciation expense for the years ended December 31, 2011 and 2010 was $5,998 and $0 respectively.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

INTANGIBLE ASSET

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 7: INTANGIBLE ASSET

Intangible assets consisted of the following:

	September 30,			December 31,
	2012			2011
Software	$	50,466		$	50,466
Patents		4,674,853			-
Less: Accumulated amortization		(22,241	)		(9,625	)
	$	4,703,078			40,841

Intangible asset amounted to $4,703,078 and $40,841 as of September 30, 2012 and December 31, 2011, respectively, mainly consisted of patents acquired related to the asset purchase of Acueity in September 2012 and software previously acquired for the purpose of managing laboratory results. The acquired software in the amount of $50,466 for the purpose of managing laboratory results pursuant to a software installation agreement was entered into on June 8, 2011. The amortization period for the purchased software is 3 years. Amortization expense for the nine months ended September 30, 2012 and 2011 was $12,616 and $5,500, respectively.

Patents

Patents amounted to $4,674,853 and $0 as of September 30, 2012 and December 31, 2011, respectively, and mainly consisted of patents acquired from Acueity on September 30, 2012 in an asset purchase transaction (see Note 15). Patents will be amortized based on their determined useful life, and tested annually for impairment. The amortization period is from 9 to 14 years. Amortization expense related to patents was $0 for the nine months ended September 30, 2012 and 2011, respectively.

Future estimated amortization expenses as of September 30, 2012 for the five succeeding years is as follows:

As of September 30,	Amounts
2013	$	376,841
2014		371,341
2015		360,100
2016		360,019
2017		360,019
Thereafter		2,874,758
	$	4,703,078

NOTE 7: INTANGIBLE ASSET

Intangible asset amounted to $40,841 as of December 31, 2011, mainly consisted of the acquired software for the purpose of managing laboratory results pursuant to a software installation agreement entered into on June 8, 2011. The amortization period for the purchased software is 3 years. Amortization expense for the year ended December 31, 2011 was $9,625.

Future estimated amortization expenses as of December 31, 2011 for the five succeeding years is as follows:


As of December 31,	Amounts
2012	$	16,822
2013		16,822
2014		7,197
2015		—
2016		—
	$	40,841

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

LINE OF CREDIT

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Line Of Credit Facility [Abstract]

Line of Credit Facilities [Text Block]

NOTE 8: LINE OF CREDIT

In June 2011, the Company entered into a commercial line of credit agreement with JPMorgan Chase Bank. The term of the loan started from June 28, 2011 with maturity date on June 28, 2012. On July 23, 2012, the Company entered into a business loan extension agreement with JPMorgan Chase Bank to extend the loan for three months from the original maturity date. The line of credit agreement provides for borrowings up to $1,000,000. The adjustable interest rate is a rate per annum equal to the sum of an index, which is the LIBOR Rate plus 1.914 percentage point(s). The outstanding balance of the line of credit was $250,000 and $1,000,000 as of September 30, 2012 and December 31, 2011, respectively. The adjustable annual interest rate for the line of credit was 2.9138% and 2.2070% as of September 30, 2012 and December 31, 2011, respectively. On October 22, 2012, the Company paid off the line of credit in full amount.

As of September 30, 2012 and December 31, 2011, $250,000 and $1,000,000 of cash was restricted as collateral for the commercial line of credit, respectively.

NOTE 8: LINE OF CREDIT

Line of credit consisted of the following at December 31, 2011 and 2010:


	December 31, 2011		December 31, 2010
Line of credit, JPMorgan Chase Bank	$	1,000,000.00	$	—

In June 2011, the Company entered into a commercial line of credit agreement with JPMorgan Chase Bank. The term of the loan started from June 28, 2011 with maturity date on June 28, 2012. The line of credit agreement provides for borrowings up to $1,000,000. The balance of the line of credit was fully drawn up as of December 31, 2011. The adjustable interest rate is a rate per annum equal to the sum of an index, which is the LIBOR Rate plus 1.914 percentage point(s). The adjustable interest rate for the line of credit was 2.2070% as of December 31, 2011.

As of December 31, 2011, $1,000,000 of cash was restricted as collateral for the commercial line of credit.

ACCRUED EXPENSES

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Payables and Accruals [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 9: ACCRUED EXPENSES

Accrued expenses consisted of the following:

	September 30, 2012		December 31, 2011
Accrued expenses	$	1,744,555	$	201,113
Accrued bonus payable		135,239		153,830
Accrued payroll tax liabilities		7,951		87,386
Accrued interest		599		-
	$	1,888,344	$	442,329

NOTE 9: ACCRUED EXPENSES

Accrued expenses consisted of the following:


	December 31, 2011		December 31, 2010
Accrued expenses	$	201,113	$	391,749
Accrued bonus payable		153,830		—
Accrued payroll tax liabilities		87,386		7,540
	$	442,329	$	399,289

STOCKHOLDERS' EQUITY

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 10: STOCKHOLDERS’ EQUITY

The Company is authorized to issue a total of 85,000,000 shares of stock consisting of 75,000,000 shares of Common Stock, par value $0.001 per share, and 10,000,000 shares of Preferred Stock, par value $0.001 per share.

Reverse Stock-Split

On September 28, 2010, the Board of Directors approved a 1-for-2.26332 reverse share split for all issued and outstanding shares of Common Stock, with no change to the par value of the Common Stock.

Prior Issuances of Common Stock

On April 30, 2009 (inception), the Company issued 1,767,316 shares (or 4,000,000 shares prior to the reverse stock-split on September 28, 2010) to Ensisheim Partners LLC, a related party to the Company through common ownership, for cash in the amount of $24,000, or $0.014 per share (or $0.006 per share prior to the reverse stock-split on September 28, 2010); 1,325,487 shares (or 3,000,000 shares prior to the reverse stock-split on September 28, 2010) to Manistee Ventures LLC, a related party to the Company through common ownership, for cash in the amount of $18,000, or $0.014 per share (or $0.006 per share prior to the reverse stock-split on September 28, 2010); and 883,662 shares (or 2,000,000 shares prior to the reverse stock-split on September 28, 2010) to the Chairman, CEO and President of the Company at that time for cash in the amount of $12,000, or $0.014 per share (or $0.006 per share prior to the reverse stock-split on September 28, 2010).

On July 28, 2009, the Company issued 39,765 shares (or 90,000 shares prior to the reverse stock-split on September 28, 2010) to a director of the Company for cash in the amount of $540, or $0.014 per share (or $0.006 per share prior to the reverse stock-split on September 28, 2010).

On December 28, 2009, the Company issued 883,658 shares (or 2,000,000 shares prior to the reverse stock-split on September 28, 2010) to Ensisheim Partners LLC for cash in the amount of $100,000, or $0.11 per share (or $0.05 per share prior to the reverse stock-split on September 28, 2010).

On January 21, 2010, the Company issued 866,007 shares (or 1,960,000 shares prior to the reverse stock-split on September 28, 2010) to forty-four (44) investors for cash in the amount of $98,000, or $0.11 per share (or $0.05 per share prior to the reverse stock-split on September 28, 2010).

On January 21, 2010, the Company issued 132,549 shares (or 300,000 shares prior to the reverse stock-split on September 28, 2010) to a servicer for effecting transactions intended to cause the Company to become a public company and to have its securities traded in the United States. The shares were issued at a value of $15,000, or $0.11 per share (or $0.05 per share prior to the reverse stock-split on September 28, 2010), the same price as the issuance of the 866,007 shares (or 1,960,000 shares prior to the reverse stock-split on September 28, 2010) for cash on the same date.

On January 21, 2010, the Company issued an additional 53,020 shares (or 120,000 shares prior to the reverse stock-split on September 28, 2010) to a shareholder who acquired 13,255 shares (or 30,000 shares prior to the reverse stock-split on September 28, 2010) for cash on the same date as one of the forty-four (44) investors. Those shares were issued to the shareholder for services to be performed, including investor relations, media relations, and corporate communications. Those shares were issued at a value of $6,000, or $0.11 per share (or $0.05 per share prior to the reverse stock-split on September 28, 2010), the same price as the issuance of the 866,007 shares (or 1,960,000 shares prior to the reverse stock-split on September 28, 2010) for cash on the same date.

On January 23, 2010, the Company issued 35,346 shares (or 80,000 shares prior to the reverse stock-split on September 28, 2010) to an investor for cash in the amount of $4,000, or $0.11 per share (or $0.05 per share prior to the reverse stock-split on September 28, 2010).

On April 27, 2010, the Company issued 13,256 shares (or 30,000 shares prior to the reverse stock-split on September 28, 2010) to a service provider for website development services pursuant to an original agreement between the Company and the web site developer executed on December 14, 2009 (the “measurement date”), where it was agreed at that time that, at the Company’s option, $50,000 would be paid or 13,256 shares (or 30,000 shares of common stock prior to the reverse stock-split on September 28, 2010) would be issued to the developer in exchange for his services.

On September 30, 2012, the Company issued 862,500 shares to the shareholders of Acueity as part of the consideration for the asset purchase (see Note 15). The shares were valued at $5.00 per share, the offering price of the then contemplated initial public offering, for which the registration statement on Form S-1 (File No. 333-179500) was subsequently declared effective by the Securities and Exchange Commission on November 7, 2012, and a prospectus was subsequently filed pursuant to Rule 424(b)(4) on November 9, 2012 (see Note 16), or $4,312,500 in total.

Private Placements and Warrants

On April 28, May 31, June 10, and June 23, 2011, pursuant to Securities Purchase Agreements with various investors (the “Investors”), the Company issued 5,256,800 shares of the Company’s common stock and 5,256,800 warrants (the “Investor Warrants”), each of which entitles the investors to purchase the Company’s common stock at $1.25 per share, for aggregate gross proceeds of $6,571,000 (the “Private Placement”).

Placement Agent Fees

In connection with the Private Placement, the Company paid Dawson James Securities, Inc. (the “Placement Agent”), a cash fee equal to 10% of the gross proceeds from sale of the common stocks and warrants, plus 3% non-accountable expense allowance, an aggregate of $857,230 (the “Placement Agent Fee”). In addition, the Company entered into Warrant Agreements with the placement agent pursuant to which the Placement Agent received 788,520 warrants (the “Placement Agent Warrants”), each of which entitles the Placement Agent to purchase one share of the Company’s common stock at $1.60 per share, plus an additional 788,520 warrants (the “Placement Agent Warrants”), each of which entitles the placement agent to purchase the Company’s common stock at $1.25 per share. The cash payment of $857,230 Placement Agent Fee and the $495,876 aggregated initial fair value of the Placement Agent Warrants (see Fair Value Considerations below) were directly attributable to an actual offering and were charged through additional paid-in capital in accordance with the SEC Staff Accounting Bulletin (SAB) Topic 5A.

Warrants

The Warrants, including the Investor Warrants and the Placement Agent Warrants, are exercisable at any time commencing after the earliest of the following to occur (the “Initial Exercise Date”):

(a)

Six (6) months from the closing of the Company Initial Public Offering (initial public offering of the Company’s Common Stock registered under the Securities Act),

(b)

The closing of a “fundamental transaction” (in case of any reclassification, capital reorganization, exchange of shares, liquidation, recapitalization or change of the Common Stock, or in case of any consolidation or merger of the Company with or into another corporation or entity, or in case of any sale, lease or conveyance to another corporation or entity of all or substantially all of the assets of the Company), or

(c)

Closing of a “significant private financing” (sale of the Company’s securities primarily for capital raising purposes in a transaction or series of related transactions that is exempt from registration under the Securities Act and in which the Company issues securities representing at least 20% of the then outstanding capital stock of the Company, calculated assuming the conversion or exercise of all outstanding options, warrants and other securities convertible into or exercisable for capital stock of the Company).

The Warrants shall expire and no longer be exercisable on the fifth anniversary of the Initial Exercise Date (the “Expiration Date”). The Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company. The Warrants may be exercised for cash or, at the option of the Investor, may be exercised on a cashless basis. There are no redemption features embodied in the Warrants and they have met the conditions provided in current accounting standards for equity classification.

Fair Value Considerations

The Company’s accounting for the issuance of warrants to the Investors and the Placement Agent required the estimation of fair values of the financial instruments. The development of fair values of financial instruments requires the selection of appropriate methodologies and the estimation of often subjective assumptions. The Company selected the valuation techniques based upon consideration of the types of assumptions that market participants would likely consider in exchanging the financial instruments in market transactions. The warrants were valued using a Black-Scholes-Merton Valuation Technique because it embodies all of the requisite assumptions (including trading volatility, estimated terms and risk free rates) necessary to fair value these instruments.

The Investor Warrants and the Placement Agent Warrants were initially valued at $1,808,025 or $0.344 per warrant, $228,712 or $0.290 per warrant, and $267,164 or $0.339 per warrant, respectively. The following tables reflect assumptions used to determine the fair value of the Warrants:

		April-June 2011			December 2011
	Fair Value Hierarchy Level	Investor Warrants			Placement Agent Warrants			Placement Agent Warrants

Indexed shares			5,256,800			788,520			788,520
Exercise price		$	1.60		$	1.60		$	1.25

Significant assumptions:
Stock price	3	$	0.906		$	0.906		$	0.906
Remaining term	3		6 years			6 years			6 years
Risk free rate	2		2.49	%		1.12	%		1.12	%
Expected volatility	3		53.55	%		54.21	%		54.21	%

Fair value hierarchy of the above assumptions can be categorized as follows:

(1)	There were no Level 1 inputs.

(2)	Level 2 inputs include:

Risk-free rate- The risk-free rate of return reflects the interest rate for United States Treasury Note with similar time-to-maturity to that of the warrants.

(3)	Level 3 inputs include:

	·	Stock price- The Company’s common stock was not publicly traded at the time the Warrants were issued. Therefore, the stock price was determined implicitly from an iterative process in order for the combined fair value of the common stock and the warrants to equal the amount of proceeds received in the Private Placement, based upon the assumption that the Private Placement was the result of an arm’s length transaction.

	·	Remaining term- The Company does not have a history to develop the expected term for its warrants. Accordingly, the Company expected that the Initial Exercise Date to occur within one year from the date of issuance plus the contractual term in the calculations.

	·	Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, as required by ASC 718-10-30, the Company has accounted for the warrants using the calculated value method. The Company identified seven public entities in the similar industry for which share price information was available, and considered the historical volatilities of those public entities’ share prices in calculating the expected volatility appropriate to the Company.

Asset Purchase and Warrants

On September 30, 2012, pursuant to the asset purchase agreement with Acueity, the Company issued 862,500 shares of common stock and 325,000 warrants (“Acueity Warrants”) to the shareholders of Acueity, each of which entitles the recipients to subscribe for and purchase from the Company one share of the Company’s common stock at $5.00 per share (the “Exercise Price”), subject to a six-month lock up agreement.

Warrants

The Acueity Warrants are exercisable at any time commencing after September 30, 2012 (the “Issuance Date”) and shall expire and no longer be exercisable on the fifth anniversary of the Issuance Date (the “Expiration Date”). The Company may at any time during the term of the Acueity Warrants reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company. The Acueity Warrants do not have a cashless exercise provision. There are no redemption features embodied in the Acueity Warrants and they have met the conditions provided in current accounting standards for equity classification.

Fair Value Considerations

The Company’s accounting for the issuance of the Acueity Warrants required the estimation of fair values of the financial instruments. The development of fair values of financial instruments requires the selection of appropriate methodologies and the estimation of often subjective assumptions. The Company selected the valuation techniques based upon consideration of the types of assumptions that market participants would likely consider in exchanging the financial instruments in market transactions. The warrants were valued using a Black-Scholes-Merton Valuation Technique because it embodies all of the requisite assumptions (including trading volatility, estimated terms and risk free rates) necessary to fair value these instruments.

The Acueity Warrants were valued at $762,353 or $2.3457 per warrant. The following tables reflect assumptions used to determine the fair value of the Warrants:

		September 2012
	Fair Value Hierarchy Level	Acueity Warrants

Indexed shares			325,000
Exercise price		$	5.00

Significant assumptions:
Stock price	3	$	5.00
Remaining term	3		5 years
Risk free rate	2		0.62	%
Expected volatility	3		56.54	%

Fair value hierarchy of the above assumptions can be categorized as follows:

(1)	There were no Level 1 inputs.

(2)	Level 2 inputs include:

Risk-free rate- The risk-free rate of return reflects the interest rate for United States Treasury Note with similar time-to-maturity to that of the warrants.

(3)	Level 3 inputs include:

	·	Stock price- The Company’s common stock was not publicly traded at the time the Acueity Warrants were issued. Therefore, the stock price was determined at the offering price of the then contemplated initial public offering, for which the registration statement on Form S-1 (File No. 333-179500) was subsequently declared effective by the Securities and Exchange Commission on November 7, 2012, and a prospectus was subsequently filed pursuant to Rule 424(b)(4) on November 9, 2012 (see Note 16).

	·	Remaining term- The Company does not have a history to develop the expected term for its warrants. Accordingly, the Company expected that the Initial Exercise Date to occur within one year from the date of issuance plus the contractual term in the calculations.

Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, as required by ASC 718-10-30, the Company has accounted for the warrants using the calculated value method. The Company identified seven public entities in the similar industry for which share price information was available, and considered the historical volatilities of those public entities’ share prices in calculating the expected volatility appropriate to the Company.

Stock Option and Incentive Plan

On September 28, 2010, the Board of Directors approved the adoption of the 2010 Stock Option and Incentive Plan, or the 2010 Plan, subject to stockholder approval, to provide for the grant of equity-based awards to employees, officers, non-employee directors and other key persons providing services to the Company. Awards of incentive options may be granted under the 2010 Plan until September 2020. No other awards may be granted under the 2010 Plan after the date that is 10 years from the date of stockholder approval. An aggregate of 1,000,000 shares (or 2,263,320 shares prior to the reverse stock-split on September 28, 2010) are reserved for issuance in connection with awards granted under the 2010 Plan, such number of shares to be subject to adjustment as provided in the plan and in any award agreements entered into by the Company under the plan, and upon the exercise or conversion of any awards granted under the plan.

On April 4, 2011, 45,000 non-qualified stock options were granted under the Plan to Dr. Tim Hunkapiller for being a member of the Company’s Scientific Advisory Board and consulting services to be provided to the Company.

On September 1, 2011, 219,000 incentive stock options were granted under the Plan to employees and officers and 200,000 non-qualified stock options were granted under the Plan to non-employee directors, respectively, for their employment with and services to be provided to the Company (see Note 14).

On April 30, 2012, 19,757 non-qualified stock options were granted under the Plan to members of the Board of Directors for their services provided to the Company.

NOTE 10: STOCKHOLDERS’ EQUITY

Reverse Stock-Split

On September 28, 2010, the Board of Directors approved a 1-for-2.26332 reverse share split for all issued and outstanding shares of Common Stock, with no change to the par value of the Common Stock.

Prior Issuances of Common Stock

On April 27, 2010, the Company issued 13,256 shares (or 30,000 shares prior to the reverse stock-split on September 28, 2010) to a service provider for website development services pursuant to an original agreement between the Company and the web site developer executed on December 14, 2009 (the “measurement date”), where it was agreed at that time that, at the Company’s option, $50,000 would be paid or $50,000 in the form of 13,256 shares (or 30,000 shares of common stock prior to the reverse stock-split on September 28, 2010) would be issued to the developer in exchange for his services.

Private Placements and Warrants

Placement Agent Fees

Warrants

The Warrants, including the Investor Warrants and the Placement Agent Warrants, are exercisable at any time commencing after the earliest of the following to occur (the “Initial Exercise Date”):

(a)

Six (6) months from the closing of the Company Initial Public Offering (initial public offering of the Company’s Common Stock registered under the Securities Act),

(b)

(c)

Fair Value Considerations


			April-June 2011			December 2011
	Fair Value Hierarchy Level		Investor Warrants			Placement Agent Warrants			Placement Agent Warrants
Indexed shares				5,256,800			788,520			788,520
Exercise price			$	1.60		$	1.60		$	1.25
Significant assumptions:
Stock price		3	$	0.906		$	0.906		$	0.906
Remaining term		3		6 years			6 years			6 years
Risk free rate		2		2.49	%		1.12	%		1.12	%
Expected volatility		3		53.55	%		54.21	%		54.21	%

Fair value hierarchy of the above assumptions can be categorized as follows:

(1)

There were no Level 1 inputs.

(2)

Level 2 inputs include:

•

Risk-free rate — The risk-free rate of return reflects the interest rate for United States Treasury Note with similar time-to-maturity to that of the warrants.

(3)

Level 3 inputs include:

•

Stock price — The Company’s common stock was not publicly traded at the time the Warrants were issued. Therefore, the stock price was determined by taking the $1.25 price per Unit (one Unit consisted of one share of common stock and one warrant) issued in the Private Placement and subtracting from $1.25 the fair value of the Warrant, which was determined by the Black-Scholes method. The difference remaining after subtracting the fair value of the Warrant ($0.344) from the price per Unit ($1.25) is the fair value of the common stock ($0.906).

•

Remaining term — The Company does not have a history to develop the expected term for its warrants. Accordingly, the Company expected that the Initial Exercise Date to occur within one year from the date of issuance plus the contractual term in the calculations.

•

Expected volatility — We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, as required by ASC 718-10-30, the Company has accounted for the warrants using the calculated value method. The Company identified seven public entities in the similar industry for which share price information was available, and considered the historical volatilities of those public entities’ share prices in calculating the expected volatility appropriate to the Company.

Stock Option and Incentive Plan

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(d),(e))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB TOPIC 4.E)
-URI http://asc.fasb.org/extlink&oid=6228006&loc=d3e74512-122707

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.29-31)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Section B
-Paragraph 7, 11A
-Chapter 1
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph d
-Article 4

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 20: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 23: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

INCOME TAXES

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 11: INCOME TAXES

The Company accounts for income taxes as outlined in ASC 740, “Income Taxes”, which was previously Statement of Financial Accounting Standards No. 109, “Accounting for Income Taxes” (“SFAS 109”). Under the asset and liability method of SFAS 109, deferred income tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial reporting and tax bases of assets and liabilities and are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

As a result of the Company’s cumulative losses, management has concluded that a full valuation allowance against the Company’s net deferred tax assets is appropriate. No income tax liabilities existed as of September 30, 2012 and December 31, 2011 due to the Company’s continuing operating losses.

NOTE 11: INCOME TAXES

As a result of the Company’s cumulative losses, management has concluded that a full valuation allowance against the Company’s net deferred tax assets is appropriate. No income tax liabilities existed as of December 31, 2011 and 2010 due to the Company’s continuing operating losses.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

+ Details

CONCENTRATION OF CREDIT RISK

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Risks and Uncertainties [Abstract]

Concentration Risk Disclosure [Text Block]

NOTE 12: CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At September 30, 2012 and December 31, 2011, the Company had $418,570 and $2,660,821 in excess of the FDIC insured limit, respectively.

NOTE 12: CONCENTRATION OF CREDIT RISK

Financial instruments that potentially subject the Company to concentration of credit risk consist principally of cash deposits. Accounts at each institution are insured by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000. At December 31, 2011 and 2010, the Company had $2,660,821 and $0 in excess of the FDIC insured limit.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13531-108611

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 20
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6442-108592

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6351-108592

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=7491637&loc=d3e13537-108611

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 21, 22, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

COMMITMENTS AND CONTINGENCIES

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 13: COMMITMENTS AND CONTINGENCIES

Lease Commitments

On September 29, 2010, the Company entered into a commercial lease agreement with CompleGen, Inc. for laboratory space located in Seattle, WA. The lease provides for monthly rent of $3,658 and a security deposit of $3,658. The lease terms are from September 29, 2010 through March 31, 2011, at which time the lease has converted to month to month unless two months’ prior written notice of the intent to terminate the agreement is given. The monthly rent for the lease increased to $4,267 commencing January 2012. For the nine months ended September 30, 2012, the Company incurred $38,403 of rent expense for the lease.

On March 4, 2011, the Company entered into a commercial lease agreement with Sanders Properties, LLC for office space located in Seattle, WA. The lease provides for monthly rent of $1,100 and a security deposit of $1,500. The lease terms are from April 1, 2011 through March 31, 2013. For the nine months ended September 30, 2012, the Company incurred $9,900 of rent expense for the lease.

On July 9, 2011, the Company entered into a commercial lease agreement with Sanders Properties, LLC for additional office space located in Seattle, WA. The lease provides for monthly rent of $600 and a security deposit of $1,200. The lease terms are from July 11, 2011 through July 31, 2012. For the nine months ended September 30, 2012, the Company incurred $4,200 of rent expense for the lease. This lease terminated on July 31, 2012 and was not renewed.

On September 27, 2011, the Company entered into another commercial lease agreement with Sanders Properties, LLC for additional office space located in Seattle, WA. The lease provides for monthly rent of $1,400 and a security deposit of $1,000. The lease terms are from October 1, 2011 to March 31, 2012. For the period of October 1, 2011 through March 31, 2012, the Company incurred $8,400 of rent expense for the lease. This lease terminated on March 31, 2012 and was not renewed.

On December 9, 2011, the Company entered into another commercial lease agreement with Fred Hutchinson Research Center for lab and office space located in Seattle, WA. The lease provides for monthly rent of $16,395 for the period from February 24, 2012 to August 31, 2012, $19,923 for the period from September 1, 2012 to August 31, 2013, and $20,548 for the period from September 1, 2013 to November 29, 2014. The security deposit of $32,789 was paid in March 2012 and recorded as Security Deposit on the consolidated balance sheet as of September 30, 2012. For the nine months ended September 30, 2012, the Company incurred $161,424 of rent expense for the lease, which included leasing office management expenses.

The future minimum lease payments due subsequent to September 30, 2012 under all non-cancelable operating leases for the next five years are as follows:

As of September 30,	Amount
2013	$	246,296
2014		246,575
2015		41,096
2016		-
2017		-
Thereafter		-
Total minimum lease payments	$	533,967

Contingencies

On December 11, 2012, Mr. Kelly filed a complaint in the United States District Court, Western Division of Washington seeking compensatory damages, interest and attorneys’ fees related to the termination of Mr. Kelly’s consulting contract and the rescission of shares issued to him. The specific amount of damages sought is to be proven at trial and not specified.

The Company is reasonably confident in its defenses to Mr. Kelly’s claims. Consequently, no provision or liability has been recorded for Mr. Kelly’s claims as of September 30, 2012. However, it is at least reasonably possible that the Company’s estimate of liability may change in the near term. Any payments by reason of an adverse determination in this matter will be charged to earnings in the period of determination.

NOTE 13: COMMITMENTS AND CONTINGENCIES

Lease Commitments

On September 29, 2010, the Company entered into a commercial lease agreement with CompleGen, Inc. for laboratory space located in Seattle, WA. The lease provides for monthly rent of $3,657.05 and a security deposit of $3,657.50. The lease terms are from September 29, 2010 through March 31, 2011, at which time the lease has converted to month to month unless two months’ prior written notice of the intent to terminate the agreement is given.

On September 27, 2011, the Company entered into another commercial lease agreement with Sanders Properties, LLC for additional office space located in Seattle, WA. The lease provides for monthly rent of $1,400 and a security deposit of $1,000. The lease terms are from October 1, 2011 to March 31, 2012. This lease terminated on March 31, 2012 and was not renewed.

On December 9, 2011, the Company entered into another commercial lease agreement with Fred Hutchinson Research Center for lab and office space located in Seattle, WA. The lease provides for monthly rent of $16,395 for the period from February 24, 2012 to August 31, 2012, $19,923 for the period from September 1, 2012 to August 31, 2013, and $20,548 for the period from September 1, 2013 to November 29, 2014. The security deposit of $32,789 was paid in March 2012 and recorded as Rental Deposit in the consolidated balance sheet as of June 30, 2012.

The future minimum lease payments due subsequent to December 31, 2011 under all non-cancelable operating leases for the next five years are as follows:


As of December 31,	Amounts
2012	$	204,576
2013		244,872
2014		226,027
2015		—
2016		—
Thereafter		—
Total minimum lease payments	$	675,476

Contingencies

On June 30, 2011, Robert Kelly, the Company’s former President, filed a counterclaim against the Company in an arbitration proceeding, alleging breach of contract in connection with the termination of a consulting agreement between Mr. Kelly (dba Pitslayer) and the Company. The consulting agreement was terminated by the Company in September 2010. Mr. Kelly seeks $450,000 in compensatory damages, which is the amount he claims would have been earned had the consulting agreement been fulfilled to completion. The Company is in arbitration with Mr. Kelly and is reasonably confident in its defenses to Mr. Kelly’s claims. Consequently, no provision or liability has been recorded for Mr. Kelly’s claims as of December 31, 2011. However, it is at least reasonably possible that the Company’s estimate of its liability may change in the near term. Any payments by reason of an adverse determination in this matter will be charged to earnings in the period of determination.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 460
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 450
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6952336&loc=d3e14435-108349

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 440
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

RELATED PARTY TRANSACTIONS

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

NOTE 14: RELATED PARTY TRANSACTIONS

Loans from Officer

On May 26, 2009, the Company borrowed $5,000 from its Chairman of the Board and Chief Executive Officer as a short-term, unsecured loan via verbal agreement and did not bear any interest. Commencing June 30, 2010, the loan was converted into a written Promissory Note bearing an annual interest rate of 10%, with a maturity date of December 31, 2010. This note was repaid in full on May 16, 2011 including approximately $439 of accrued interest.

On June 30, 2010, the Company borrowed an additional $100,000 from its Chairman of the Board and Chief Executive Officer pursuant to a promissory note. The loan under the note was funded to the Company on July 12, 2010. The note bears a 10% interest rate per annum and carries a $4,000 loan origination fee which is accreted to the loan balance throughout the life of the loan. The $4,000 loan origination fee was fully accreted to the loan balance as of March 31, 2011 and December 31, 2010, and recorded as interest expense for the year ended December 31, 2010. This note (including the $4,000 origination fee) was repaid in full on May 19, 2011 including approximately $8,959 in accrued interest.

On November 3, 2010, the Company entered into a line of credit agreement for borrowing up to $500,000 from its Chairman of the Board and Chief Executive Officer pursuant to a promissory note. The note bears a 10% interest rate per annum. An aggregate of $140,000 was funded to the Company under the line of credit as of March 31, 2011 which was repaid on May 31, 2011, including approximately $6,093 in accrued interest. As of December 31, 2011, the unpaid principal balance drawn from the line of credit was $5,078, which was fully repaid on March 31, 2012.

On July 30, 2012, the Company entered into a line of credit agreement for borrowing up to $500,000 from its Chairman of the Board and Chief Executive Officer pursuant to a promissory note. The note bears a 12% interest rate per annum. An aggregate of $79,300 was funded to the Company under the line of credit as of September 30, 2012, and the accrued interest was $1,153 as of September 30, 2012. The principal balance of $79,300 was fully repaid on October 11, 2012.

Exclusive License Agreement

On July 27, 2009, the Company entered into an exclusive license agreement with Ensisheim Partners LLC (“Ensisheim”), an entity solely owned by the Chairman and Chief Executive Officer of the Company and the Chief Technology Officer of the Company, who is also the Company’s Chairman and CEO’s wife. Pursuant to that agreement, Ensisheim granted the Company an exclusive, worldwide, perpetual, irrevocable, royalty-bearing, license to the MASCT System, with the right to grant and authorize sublicenses. The license agreement provided that the Company would pay Ensisheim a royalty equal to 2% of net sales revenue, with a minimum royalty of $12,500 per fiscal quarter during the term of the agreement, which would have increased to a minimum royalty of $25,000 per fiscal quarter beginning in the quarter in which the first commercial sale of a licensed product would have taken place. From inception through December 31, 2010, the Company had incurred $16,250 in patent-related expenses under the license agreement with Ensisheim.

On June 17, 2010, the Company and Ensisheim entered into an Assignment Agreement, whereby Ensisheim assigned to the Company all rights to the patents and patent applications underlying the MASCT System. Pursuant to the assignment, the Company will have all responsibility for prosecution, maintenance, and enforcement and will indemnify Ensisheim from any and all claims against the patent estate. Ensisheim retained no residual rights with respect to the patents and patent applications. In conjunction with the assignment, the Company terminated the exclusive license agreement between the Company and Ensisheim dated July 27, 2009. As a result of the termination, the Company has no further obligations with respect to royalty payments to Ensisheim due under the old licensing agreement. As a result, the $12,500 of patent royalty payable to Ensisheim recorded as accrued royalty payable at December 31, 2009 has been reversed through royalty expense during the second quarter of 2010.

Commercial Lease Agreement

On December 24, 2009, the Company entered into a commercial lease agreement with Ensisheim for office space located in Seattle, Washington. The lease provided for annual rent of $13,200, plus applicable sales tax. From inception through December 31, 2009, the Company incurred $248 of rent expense for the lease with security deposit of $1,100. For the period of January 1, 2010 through June 30, 2010, the Company incurred $6,600 of rent expense for the lease. On July 15, 2010 the Company and Ensisheim terminated the lease, effective July 1, 2010 and the Company commenced use of the facility rent free until April 1, 2011 when the commercial lease agreement the Company entered into with Sanders Properties, LLC became effective (see Note 13). The $1,100 security deposit paid to Ensisheim was received as of September 30, 2012.

Executive Compensation

On May 19, 2010, the Company entered into employment agreements with three executives, including its Chief Executive Officer, its former President, and its Chief Technology Officer. The annual base salaries under each agreement were calculated based on combined consideration of the success of capital raise and the operating results of the Company, and capped at $360,000, $350,000, and $250,000, respectively for the three executives.

On July 22, 2010, in connection with the resignation and departure of Robert L. Kelly, the President and a director, the Company entered into a consulting agreement with a limited liability company controlled by Mr. Kelly. Under the agreement, the Company was to receive consulting services relating to capital raising and investor relations. The agreement was terminated by the Company in September 2010, through which time a total of $30,000 consulting expense had been paid.

On July 22, 2010, the Company restated and amended the employment agreements with its CEO and CTO. The agreements modified the base annual salary amounts to $250,000 and $200,000, respectively, effective retroactively to May 19, 2010. For the year ended December 31, 2011, the total amount of salaries and bonuses of the CEO and CTO was $693,048, of which $492,095 was recorded to research and development expense. For the nine months ended September 30, 2012, salaries and bonuses of CEO and CTO amounted to $269,438 and $200,550, of which $134,719 and $200,550 were recorded to research and development expense, respectively.

Share-Based Compensation

The amended employment agreement with the CEO, entered into on July 22, 2010, granted options to purchase 250,000 shares (or 565,830 shares prior to the reverse stock-split on September 28, 2010) at a price of $5.00 per share, in consideration of his service to the Company. Of these options, 25% (or 62,500 shares) vested on December 31, 2010 with the remaining 75% (or 187,500 shares) to vest in equal quarterly installments over the next three years so long as the executive remains employed with the company. These options have five-year contractual terms.

The amended employment agreement with the CTO, entered into on July 22, 2010, granted options to purchase 100,000 shares (or 226,332 shares prior to the reverse stock-split on September 28, 2010) at a price of $5.00 per share in consideration of her service to the Company. Of these options, 25% (or 25,000 shares) vested on December 31, 2010 with the remaining 75% (or 75,000 shares) to vest in equal quarterly installments over the next three years so long as the executive remains employed with the company. These options have five-year contractual terms.

On April 4, 2011, 45,000 non-qualified stock options were granted under the 2010 Stock Option and Incentive Plan to Dr. Tim Hunkapiller for being a member of the Company’s Scientific Advisory Board and consulting services to be provided to the Company, at an exercise price of $1.25 per share. These options have a ten-year contractual term and shall vest as follows:

(i)

11,250 option shares shall vest ninety (90) days after the date of grant;

(ii)

11,000 option shares shall vest one hundred and eighty (180) days after the date of grant;

(iii)

11,500 option shares shall vest two hundred and seventy (270) days after the date of grant;

(iv)

11,250 option shares shall vest three hundred and sixty (360) days after the date of grant.

On September 1, 2011, 219,000 incentive stock options were granted under the 2010 Stock Option and Incentive Plan to employees and officers as part of their employment agreements, at an exercise price of $1.25 per share. These options have a ten-year contractual term and shall vest and become exercisable as follows:

(i)

twenty-five percent (25%) of the underlying shares on the first anniversary of the date of grant; and

(ii)

one-forty eighth (1/48) of the underlying shares monthly thereafter.

On September 1, 2011, 200,000 non-qualified stock options were granted under the 2010 Stock Option and Incentive Plan to non-employee directors for services to be provided to the Company, at an exercise price of $1.25 per share. These options have a ten-year contractual term and shall vest and become exercisable as follows:

(i)

80,000 option shares shall vest on September 1, 2011;

(ii)

30,000 options shares shall vest on December 1, 2011;

(iii)

30,000 options shares shall vest on March 1, 2012;

(iv)

30,000 options shares shall vest on June 1, 2012;

(v)

30,000 options shares shall vest on September 1, 2012.

On April 30, 2012, 19,757 non-qualified stock options were granted under the 2010 Stock Option and Incentive Plan to non-employee directors for serving as directors of the Company, at an exercise price of $6.00 per share. These options have a ten-year contractual term and shall vest and become exercisable in full immediately as of the grant date.

In accordance with the guidance provided in ASC Topic 718, Stock Compensation (formerly SFAS 123R), the compensation costs associated with these options are recognized, based on the grant-date fair values of these options, over the requisite service period, or vesting period. Accordingly, the Company recognized a compensation expense of $96,251 for the nine months ended September 30, 2012.

The Company estimated the fair value of these options using the Black-Scholes-Merton option pricing model based on the following weighted-average assumptions:

	CEO & CTO			Dr. Hunkapiller			Employees & Officers			Non-employee Directors			Non-employee Directors
Date of grant		22-Jul-10			4-Apr-11			1-Sep-11			1-Sep-11			30-Apr-12
Fair value of common stock on date of grant	$	2.756	(B)	$	0.906	(C)	$	0.906	(C)	$	0.906	(C)	$	6.00	(D)
Exercise price of the options	$	5.00		$	1.25		$	1.25		$	1.25		$	6.00
Expected life of the options (years)		3.33			5.31			5.65			5.65			5.00
Dividend yield		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Expected volatility		58.59	%		54.12	%		53.90	%		53.90	%		62.46	%
Risk-free interest rate		1.03	%		2.26	%		1.08	%		1.08	%		0.89	%
Expected forfeiture per year (%)		0.00	%		0.00	%			(A)		0.00	%		0.00	%
Weighted-average fair value of the options (per unit)	$	0.6744		$	0.3729		$	0.3579		$	0.3579		$	3.0367

	(A)	0.00% for the first year after the grant date, and 2.50% for every three months thereafter.
	(B)	The fair value of the Company’s common stock was derived implicitly from the public offering filed in March 2010 at $3.00 per share and from the terms of an underwritten offering contemplated in July 2010 at $6.00 per Unit that was filed in October 2010, with $2.756 per share being allocated to common stock using an iterative approach in order for the combined fair value of the common stock and warrants to equal the amount of consideration to be received in the offering.
	(C)	The fair value of the Company’s common stock was derived implicitly from the Private Placement during April through June 2011 at $1.25 per Unit, wherein one Unit was comprised of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $1.60 per share.
	(D)	The fair value of the Company’s common stock was derived implicitly from the public offering filed in February 2012 at $6.00 per share.

In October 2010, the Company filed a Registration Statement on Form S-1 with the SEC. However, the market for early stage investments in medical technology transactions had deteriorated between mid-2010 and early 2011. In addition, the Company’s ability to negotiate with potential investors was limited. The Company’s cash position had also diminished since the summer of 2010 and the founders of the Company were unable to finance the Company at the level needed for growth. The withdrawal of the Registration Statement in February 2011 further weakened the impression of the Company in the market. The fair value of the Company’s common stock decreased from $2.756 in 2010 to $0.906 in 2011 primarily because the grants in 2011 relied on the arm’s-length negotiation of the private placement financing (for illiquid stock) as opposed to relying on an anticipated initial public offering (of publicly-traded stock), as was the case in 2010. The private placement transactions were between the company and over 200 accredited investors and ascribed a value of $0.906 to the Company’s common stock.

Fair value hierarchy of the above assumptions can be categorized as follows:

(1)	There were no Level 1 inputs.

(2)	Level 2 inputs include:

Risk-free rate- The risk-free rate of return reflects the interest rate for United States Treasury Note with similar time-to-maturity to that of the options.

(3)	Level 3 inputs include:

Expected lives- The expected lives of options granted were derived from the output of the option valuation model and represented the period of time that options granted are expected to be outstanding.

Expected forfeitures per year- The expected forfeitures are estimated at the dates of grant and will be revised in subsequent periods pursuant to actual forfeitures, if significantly different from the previous estimates.

Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, as required by ASC 718-10-30, the Company has accounted for the options using the calculated value method. The Company identified seven public entities in the similar industry for which share price information was available, and considered the historical volatilities of those public entities’ share prices in calculating the expected volatility appropriate to the Company.

The estimates of fair value from the model are theoretical values of stock options and changes in the assumptions used in the model could result in materially different fair value estimates. The actual value of the stock options will depend on the market value of the Company’s common stock when the stock options are exercised.

Notwithstanding that the fair market value of the Company’s common stock in September 2011 was $0.906 per share, the Company filed a Registration Statement on Form S-1 in February 2012 to offer shares of its common stock at $5.00 to $7.00 per share. This increase in share value is justified by the accomplishments achieved by the Company between September 2011 and February 2012. Specifically, the MASCT System manufacturing had been completed, supplies for the Field Experience Trial were completed and the Company had established an FDA-compliant inventory and warehousing facility. Further, the National Reference Laboratory for Breast Health, the Company’s wholly-owned subsidiary, was established as a Delaware corporation, was equipped and staffed, and the protocols and procedures needed to be a CLIA-registered facility were put in place. Moreover, the ForeCYTE test, which involves cytopathology and five biomarkers of hyperplasia and one biomarker of sample integrity, was completed, tested, and validated to CLIA standards. Computer hardware and software was acquired, set up, made operational, and the ForeCYTE report template, with unique reporting information for the requesting physician and a patient letter template, were created. The company explored and identified a technology for the ArgusCYTE test, negotiated a supply agreement with the supplier, and tested and validated the test. An ArgusCYTE report template was also established and a new reporting scheme invented and a patent application filed.

Further, the Company negotiated the acquisition of the FullCYTE Microcatheter System from Hologics, reestablished the supply chain and began preparing for a commercial launch later in 2012 or early 2013. In doing so, the Company increased its U.S. patent portfolio from 5 to 31 and its total portfolio of patents and applications to over 120. The Hologic patent estate also contains the key patents that permit microcatheter-based intraductal treatment of cancer and pre-cancer. The Company also prepared marketing documents for the launch of the ForeCYTE and ArgusCYTE tests, which occurred in December 2011. The Company launched a clinical trial of the FullCYTE microcatheter to establish the feasibility of performing Next Generation Sequencing on the samples obtained with the microcatheter, negotiated the acquisition of the NextCYTE technology, and is conducting a study of the utility of the technology in providing superior information in the setting of cancer diagnosis and treatment selection.

The Company also established third-party relationships to perform the reimbursement billing in anticipation of the commercial launch and to permit electronic remittance of testing revenue. The Company launched a Field Test Experience limited launch of both the ForeCYTE and ArgusCYTE tests on schedule in December 2011 and has seen significant market acceptance of both tests from the doctors and clinics using the tests. The Company passed a CLIA inspection and became CLIA-certified, has obtained several state licenses and has pending applications in all remaining states where licensure is required. Finally, the Board of Directors and scientific advisory board were each strengthened with the addition of key new executives and scientists.

The Board of Directors considered each of the foregoing achievements, and considered input from the Company’s investment bankers, in determining that the value of the Company supports a valuation of $5.00 to $7.00 per share of the Company’s common stock.

Options issued and outstanding as of September 30, 2012 and their activities during the nine months then ended are as follows:

	Number of Underlying Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years
Outstanding as of January 1, 2012		608,000	$	3.41
Granted		19,757		6.00
Expired		-		-
Forfeited		-		-
Outstanding as of September 30, 2012		627,757		3.49		5.51
Exercisable as of September 30, 2012		508,632		3.21		6.02
Vested and expected to vest ⁽¹⁾		624,049		3.50		5.49

(1) Includes vested shares and unvested shares after a forfeiture rate is applied.

As of September 30, 2012 and December 31, 2011, the aggregate intrinsic value of options outstanding, exercisable, and vested and expected to vest was $389,053 and $329,053, respectively.

A summary of the status of the Company’s unvested shares as of September 30, 2012 and changes during the period then ended is presented below:

Unvested Shares	Shares			Weighted- Average Grant- Date Fair Value
Unvested as of January 1, 2012		289,250		$	159,013
Granted		19,757			60,000
Vested		(189,882	)		(141,761	)
Forfeited		-			-
Unvested as of September 30, 2012		119,125		$	77,252

NOTE 14: RELATED PARTY TRANSACTIONS

Loans from Officer

Exclusive License Agreement

Commercial Lease Agreement

On December 24, 2009, the Company entered into a commercial lease agreement with Ensisheim for office space located in Seattle, Washington. The lease provided for annual rent of $13,200, plus applicable sales tax. From inception through December 31, 2009, the Company incurred $248 of rent expense for the lease. As of December 31, 2009, security deposit for the lease amounted to $1,100. For the period of January 1, 2010 through June 30, 2010, the Company incurred $6,600 of rent expense for the lease. On July 15, 2010 the Company and Ensisheim terminated the lease, effective July 1, 2010 and the Company commenced use of the facility rent free until April 1, 2011 when the commercial lease agreement the Company entered into with Sanders Properties, LLC became effective (see Note 13).

Executive Compensation

On July 22, 2010, the Company restated and amended the employment agreements with its CEO and CTO. The agreements modified the base annual salary amounts to $250,000 and $200,000, respectively, effective retroactively to May 19, 2010. These salaries were accrued and amounted to $391,071 and $278,571 as of March 31, 2011 and December 31, 2010 and paid in full in April 2011. For the twelve-month periods ended December 31, 2011 and 2010, salaries and bonuses of the CEO and CTO amounted to $693,048 and $377,620 of which $492,095 and $0 was recorded to research and development expense, respectively.

Share-Based Compensation

(i)

11,250 option shares shall vest ninety (90) days after the date of grant;

(ii)

11,000 option shares shall vest one hundred and eighty (180) days after the date of grant;

(iii)

11,500 option shares shall vest two hundred and seventy (270) days after the date of grant;

(iv)

11,250 option shares shall vest three hundred and sixty (360) days after the date of grant.

(i)

twenty-five percent (25%) of the underlying shares on the first anniversary of the date of grant; and

(ii)

one-forty eighth (1/48) of the underlying shares monthly thereafter.

(i)

80,000 option shares shall vest on September 1, 2011;

(ii)

30,000 options shares shall vest on December 1, 2011;

(iii)

30,000 options shares shall vest on March 1, 2012;

(iv)

30,000 options shares shall vest on June 1, 2012;

(v)

30,000 options shares shall vest on September 1, 2012.

In accordance with the guidance provided in ASC Topic 718, Stock Compensation (formerly SFAS 123R), the compensation costs associated with these options are recognized, based on the grant-date fair values of these options, over the requisite service period, or vesting period. Accordingly, the Company recognized a compensation expense of $140,056 and $30,396 for the years ended December 31, 2011 and 2010, respectively.

The Company estimated the fair value of these options using the Black-Scholes-Merton option pricing model based on the following weighted-average assumptions:


	CEO & CTO			Dr. Hunkapiller			Employees & Officers			Non-employee Directors
Date of grant		22-Jul-10			4-Apr-11			1-Sep-11			1-Sep-11
Fair value of common stock on date of grant	$	2.756	^(B)	$	0.906	^(C)	$	0.906	^(C)	$	0.906	^(C)
Exercise price of the options	$	5.00		$	1.25		$	1.25		$	1.25
Expected life of the options (years)		3.33			5.31			5.65			5.65
Dividend yield		0.00	%		0.00	%		0.00	%		0.00	%
Expected volatility		58.59	%		54.12	%		53.90	%		53.90	%
Risk-free interest rate		1.03	%		2.26	%		1.08	%		1.08	%
Expected forfeiture per year (%)		0.00	%		0.00	%		(A)			0.00	%
Weighted-average fair value of the options (per unit)	$	0.6744		$	0.3729		$	0.3579		$	0.3579

(A)

0.00% for the first year after the grant date, and 2.50% for every three months thereafter.

(B)

The fair value of the Company's common stock derived implicitly from the public offering filed in March 2010 at $3.00 per share and from the terms of an underwritten offering contemplated in July 2010 at $6.00 per Unit that was filed in October 2010, with $2.756 per share being allocated to common stock using an iterative approach in order for the combined fair value of the common stock and warrants to equal the amount of consideration to be received in the offering.

(C)

The fair value of the Company's common stock derived implicitly from the Private Placement during April through June 2011 at $1.25 per Unit, wherein one Unit was comprised of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $1.60 per share.

Fair value hierarchy of the above assumptions can be categorized as follows:

(1)

There were no Level 1 inputs.

(2)

Level 2 inputs include:

•

Risk-free rate — The risk-free rate of return reflects the interest rate for United States Treasury Note with similar time-to-maturity to that of the options.

(3)

Level 3 inputs include:

•

Expected lives — The expected lives of options granted were derived from the output of the option valuation model and represented the period of time that options granted are expected to be outstanding.

•

Expected forfeitures per year — The expected forfeitures are estimated at the dates of grant and will be revised in subsequent periods pursuant to actual forfeitures, if significantly different from the previous estimates.

•

Expected volatility — We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, as required by ASC 718-10-30, the Company has accounted for the options using the calculated value method. The Company identified seven public entities in the similar industry for which share price information was available, and considered the historical volatilities of those public entities’ share prices in calculating the expected volatility appropriate to the Company.

Notwithstanding that the fair market value of the Company’s common stock in September 2011 was $0.906 per share, the Company filed a Registration Statement on Form S-1 in February 2012 to offer shares of its common stock at $5.00 to $7.00 per share. This increase in share value is justified by the accomplishments achieved by the Company between September 2011 and February 2012. Specifically, the MASCT System manufacturing had been completed, supplies for the Field Experience Trial were completed and the Company had established an FDA-compliant inventory and warehousing facility. Further, the National Reference Laboratory for Breast Health, the Company’s wholly-owned subsidiary, was established as a Delaware corporation, was equipped and staffed, and the protocols and procedures needed to be a CLIA-registered facility were put in place. Moreover, the ForeCYTE test, which involves cytopathology and five biomarkers of hyperplasia and one biomarker of sample integrity, was completed, tested, and validated to CLIA standards. Computer hardware and software was acquired, set up, made operational, and the ForeCYTE report template, with unique reporting information for the requesting physician and a patient letter template, were created. The company explored and identified a technology for the ArgusCYTE test (which is the technology that the Company is currently using for the ArgusCYTE test), negotiated a supply agreement with the supplier, and tested and validated the test. An ArgusCYTE report template was also established and a new reporting scheme invented and a patent application filed.

Further, the Company acquired the FullCYTE Microcatheter System from Hologics, reestablished the supply chain and began preparing for a commercial launch later in 2012 or early 2013. In doing so, the Company increased its U.S. patent portfolio from 5 to 31 and its total portfolio of patents and applications to over 120. The Hologic patent estate also contains the key patents that permit microcatheter-based intraductal treatment of cancer and pre-cancer. The Company also prepared marketing documents for the launch of the ForeCYTE and ArgusCYTE tests, which occurred in December 2011. The Company studied the use of the FullCYTE microcatheter in six patients to establish the feasibility of performing next-generation tests on samples taken with the microcatheters. Additionally, the Company’s scientists invented and filed a patent application to the NextCYTE technology and the Company has negotiated a one-year option to acquire commercial rights to additional NextCYTE-related technology to augment its existing position and has started researching the utility of the technology in providing superior information in the setting of cancer diagnosis and treatment selection.

The Board of Directors considered each of the foregoing achievements, and considered input from the Company’s investment bankers, in determining that the value of the Company supported a valuation of $5.00 to $7.00 per share of the Company’s common stock when the Company filed its initial Registration Statement on Form S-1 in February 2012.

Options issued and outstanding as of December 31, 2011 and 2010 and their activities during the years are as follows:


	Number of Underlying Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years
Outstanding as of January 1, 2010		—		—
Granted		350,000	$	5.00
Expired		—		—
Forfeited		—		—
Outstanding as of December 31, 2010		350,000		5.00		4.56
Exercisable as of December 31, 2010		87,500		5.00		4.56
Vested and expected to vest⁽¹⁾		350,000		5.00		4.56

(1)

Includes vested shares and unvested shares after a forfeiture rate is applied.

As of December 31, 2011 and 2010, the aggregate intrinsic value of options outstanding, exercisable, and vested and expected to vest was $329,053 and $236,040, respectively.

A summary of the status of the Company’s unvested shares as of December 31, 2011 and 2010, and changes during the years ended December 31, 2011 and 2010, are presented below:


Unvested Shares	Shares			Weighted- Average Grant-Date Fair Value
Unvested as of January 1, 2011		262,500		$	176,963
Granted		464,000			166,741
Vested		(228,250	)		(110,964	)
Forfeited		(209,000	)		(73,727	)
Unvested as of December 31, 2011		289,250		$	159,013


Unvested Shares	Shares			Weighted- Average Grant-Date Fair Value
Unvested as of January 1, 2010		—		$	—
Granted		350,000			236,040
Vested		(87,500	)		(59,077	)
Forfeited		—			—
Unvested as of December 31, 2010		262,500		$	176,963

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph b
-Article 3A

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph k
-Article 4

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

ASSET PURCHASE

9 Months Ended

Sep. 30, 2012

Asset Purchase [Abstract]

Schedule of Asset Purchase [Text Block]

NOTE 15: ASSET PURCHASE

On September 30, 2012, the Company entered into an asset purchase agreement with Acueity Healthcare, Inc (“Acueity”) to acquire substantially all of the assets of Acueity. Through the asset purchase, the Company acquired six 510(k) FDA cleared patents, 35 issued patents (18 issued in the U.S. and 17 issued in foreign countries) and 41 patent applications (32 in the U.S. and 9 in foreign countries), and cash in the amount of $400,000; no liabilities were assumed in the transaction. In consideration for the assets, the Company issued 862,500 shares of common stock, valued at $5.00 per share, the offering price listed on the prospectus filed pursuant to Rule 424(b)(4) on November 9, 2012 (see Note 16), and warrants to purchase up to 325,000 shares of common stock at an exercise price of $5.00 per share, to the shareholders of Acueity, subject to a six-month lock up agreement. The warrants, which have a five-year term, do not have a cashless exercise provision. The warrants were valued at $2.3457 per warrant, using a Black-Scholes-Merton Valuation Technique because it embodies all of the requisite assumptions (including trading volatility, estimated terms and risk-free rates) necessary to determine the fair value of the warrants (see Note 10). There are no future financial obligations from the Company to Acueity from the commercialization of the acquired assets.

SUBSEQUENT EVENTS

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 16: SUBSEQUENT EVENTS

On November 7, 2012, the Company’s registration statement on Form S-1 (File No. 333-179500) was declared effective by the Securities and Exchange Commission for the Company’s initial public offering. On November 9, 2012, pursuant to Rule 424(b)(4), the Company filed a prospectus for the initial public offering of 800,000 shares of its common stock with the offering price of $5.00 per share. As a result of the initial public offering, the Company received net proceeds of $3,455,000 after deducting underwriting discounts and commissions of approximately $545,000.

Management has evaluated subsequent events through December 14, 2012, the date which the consolidated financial statements were available to be issued. All subsequent events requiring recognition as of September 30, 2012 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events”.

NOTE 15: SUBSEQUENT EVENTS

Management has evaluated subsequent events through March 22, 2012, the date which the audited consolidated financial statements were available to be issued. All subsequent events requiring recognition as of December 31, 2011 have been incorporated into these consolidated financial statements and there are no subsequent events that require disclosure in accordance with FASB ASC Topic 855, “Subsequent Events”.

SUMMARY OF ACCOUNTING POLICIES (Policies)

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation:

Basis of Presentation:

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements:

Recently Issued Accounting Pronouncements:

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition:

Overview

Product Revenue

Service Revenue

Revenue Recognition:

Overview

Product Revenue

Service Revenue

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents:

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

Cash and Cash Equivalents:

Cash and cash equivalents include cash and all highly liquid instruments with original maturities of three months or less.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates:

Use of Estimates:

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

Accounts Receivable:

Accounts Receivable:

Inventory, Policy [Policy Text Block]

Inventories:

Inventories:

The Company’s inventories are stated at lower of cost or market. Cost is determined on a moving-average basis. Costs of inventories include purchase and related costs incurred in delivering the products to their present location and condition. Market value is determined by reference to selling prices after the balance sheet date or to management’s estimates based on prevailing market conditions. Inherent in the lower of cost or market calculation are several significant judgments based on a review of the aging of the inventory, inventory movement of products, economic conditions, and replacement costs. Because the sales price of the MASCT System was substantially lower than its cost for the year ended December 31, 2011, resulting in the net realizable value of the MASCT System being determined at zero as of the balance sheet date through taking the average sales price subtracted by selling expenses per unit, a $92,026 loss on reduction of inventory to the lower of cost or market was assessed and recorded as of and for the year then ended. Additionally, management periodically evaluates the composition of its inventories at least quarterly to identify slow-moving and obsolete inventories to determine if valuation allowance is required. As of December 31, 2011 and 2010, management had identified no slow moving or obsolete inventory.

The Company provides ForeCYTE testing specimen collection kits to doctors with our MASCT System for doctors to collect specimens that are returned to the Company for diagnostic analysis. These collection kits are considered part of the MASCT System. During the initial marketing phase, the Company has decided to distribute the kits to customers at no cost and bundle them with the MASCT System, and has not intended to deem the kits as a primary product line due to their nominal cost and value per unit. As a result, the kits are immediately expensed and recorded as selling expense upon purchasing of the kits. For the year ended December 31, 2011, selling expense of $0 was recorded related to the ForeCYTE kits.

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

Property, plant, and equipment:

Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

		Useful Life
		(in years)
Machinery and equipment		5

Property, plant, and equipment:

Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:


	Useful Life (in years)
Machinery and equipment		5

Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]

Intangible assets:

Intangible assets:

For intangible assets subject to amortization, an impairment loss is recognized if the carrying amount of the intangible asset is not recoverable and exceeds fair value. The carrying amount of the intangible asset is considered not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset. Intangible assets as of December 31, 2011 were mainly software acquired for the purpose of managing laboratory results (see Note 7).

Research and Development Expense, Policy [Policy Text Block]

Research and Development Expenses:

Research and development costs are generally expensed as incurred. The Company’s research and development expenses consist of costs incurred for internal and external research and development.

Research and Development Expenses:

Research and development costs are generally expensed as incurred. The Company’s research and development expenses consist of costs incurred for internal and external research and development.

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

Share Based Payments:

Share Based Payments:

In December 2004, the Financial Accounting Standards Board, or the FASB, issued the Statement of Financial Accounting Standards, or SFAS, No. 123(R), “Share-Based Payment”, which replaces SFAS No. 123 and supersedes APB Opinion No. 25. SFAS No. 123(R) is now included in the FASB’s ASC Topic 718, “Compensation — Stock Compensation.” Under SFAS No. 123(R), companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees or independent contractors are required to provide services. Share-based compensation arrangements include stock options and warrants, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. In March 2005, the SEC issued Staff Accounting Bulletin No. 107, or SAB 107, which expresses views of the staff regarding the interaction between SFAS No. 123(R) and certain SEC rules and regulations and provides the staff’s views regarding the valuation of share-based payment arrangements for public companies. SFAS No. 123(R) permits public companies to adopt its requirements using one of two methods. On April 14, 2005, the SEC adopted a new rule amending the compliance dates for SFAS No. 123(R). Companies may elect to apply this statement either prospectively, or on a modified version of retrospective application under which financial statements for prior periods are adjusted on a basis consistent with the pro forma disclosures required for those periods under SFAS No. 123.

SUMMARY OF ACCOUNTING POLICIES (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Accounting Policies [Abstract]

Property, Plant and Equipment, Useful Life [Table Text Block]

Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:

		Useful Life
		(in years)
Machinery and equipment		5

Depreciation is computed using the straight-line method over the estimated useful lives of the assets as follows:


	Useful Life (in years)
Machinery and equipment		5

PREPAID EXPENSES (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block]

Prepaid expenses consisted of the following:

	September 30, 2012		December 31, 2011
Prepaid payroll taxes	$	36,083	$	-
Prepaid insurances		2,472		14,146
Prepaid hardware/software maintenance and support service fee		1,420		12,850
Prepaid rent		-		4,188
	$	39,975	$	31,184

Prepaid expenses consisted of the following:


	December 31, 2011		December 31, 2010
Prepaid insurances	$	14,146	$	—
Prepaid hardware/software maintenance and support service fee		12,850		—
Prepaid rent		4,188		—
	$	31,184	$	—

PROPERTY, PLANT, AND EQUIPMENT (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Property, plant and equipment consisted of the following:

	September 30, 2012			December 31, 2011
Machinery and equipment	$	86,465		$	86,465
Less: Accumulated depreciation		(18,968	)		(5,998	)
Property, plant, and equipment, net	$	67,497		$	80,467

Property, plant and equipment consisted of the following:


	December 31, 2011			December 31, 2010
Machinery and equipment	$	86,465		$	—
Less: Accumulated depreciation		(5,998	)		—
Property, plant, and equipment, net	$	80,467		$	—

INTANGIBLE ASSET (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Intangible Assets and Goodwill [Table Text Block]

Intangible assets consisted of the following:

	September 30,			December 31,
	2012			2011
Software	$	50,466		$	50,466
Patents		4,674,853			-
Less: Accumulated amortization		(22,241	)		(9,625	)
	$	4,703,078			40,841

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block]

Future estimated amortization expenses as of September 30, 2012 for the five succeeding years is as follows:

As of September 30,	Amounts
2013	$	376,841
2014		371,341
2015		360,100
2016		360,019
2017		360,019
Thereafter		2,874,758
	$	4,703,078

Future estimated amortization expenses as of December 31, 2011 for the five succeeding years is as follows:


As of December 31,	Amounts
2012	$	16,822
2013		16,822
2014		7,197
2015		—
2016		—
	$	40,841

ACCRUED EXPENSES (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

Accrued expenses consisted of the following:

	September 30, 2012		December 31, 2011
Accrued expenses	$	1,744,555	$	201,113
Accrued bonus payable		135,239		153,830
Accrued payroll tax liabilities		7,951		87,386
Accrued interest		599		-
	$	1,888,344	$	442,329

Accrued expenses consisted of the following:


	December 31, 2011		December 31, 2010
Accrued expenses	$	201,113	$	391,749
Accrued bonus payable		153,830		—
Accrued payroll tax liabilities		87,386		7,540
	$	442,329	$	399,289

STOCKHOLDERS' EQUITY (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Investor, Placement Agent1 and Placement Agent2 Warrants [Member]

Schedule of Fair Value of Warrants [Table Text Block]

The following tables reflect assumptions used to determine the fair value of the Warrants:

		April-June 2011			December 2011
	Fair Value Hierarchy Level	Investor Warrants			Placement Agent Warrants			Placement Agent Warrants

Indexed shares			5,256,800			788,520			788,520
Exercise price		$	1.60		$	1.60		$	1.25

Significant assumptions:
Stock price	3	$	0.906		$	0.906		$	0.906
Remaining term	3		6 years			6 years			6 years
Risk free rate	2		2.49	%		1.12	%		1.12	%
Expected volatility	3		53.55	%		54.21	%		54.21	%

Fair value hierarchy of the above assumptions can be categorized as follows:

(1)	There were no Level 1 inputs.

(2)	Level 2 inputs include:

Risk-free rate- The risk-free rate of return reflects the interest rate for United States Treasury Note with similar time-to-maturity to that of the warrants.

(3)	Level 3 inputs include:

	·	Stock price- The Company’s common stock was not publicly traded at the time the Warrants were issued. Therefore, the stock price was determined implicitly from an iterative process in order for the combined fair value of the common stock and the warrants to equal the amount of proceeds received in the Private Placement, based upon the assumption that the Private Placement was the result of an arm’s length transaction.

	·	Remaining term- The Company does not have a history to develop the expected term for its warrants. Accordingly, the Company expected that the Initial Exercise Date to occur within one year from the date of issuance plus the contractual term in the calculations.

	·	Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, as required by ASC 718-10-30, the Company has accounted for the warrants using the calculated value method. The Company identified seven public entities in the similar industry for which share price information was available, and considered the historical volatilities of those public entities’ share prices in calculating the expected volatility appropriate to the Company.

The following tables reflect assumptions used to determine the fair value of the Warrants:


			April-June 2011			December 2011
	Fair Value Hierarchy Level		Investor Warrants			Placement Agent Warrants			Placement Agent Warrants
Indexed shares				5,256,800			788,520			788,520
Exercise price			$	1.60		$	1.60		$	1.25
Significant assumptions:
Stock price		3	$	0.906		$	0.906		$	0.906
Remaining term		3		6 years			6 years			6 years
Risk free rate		2		2.49	%		1.12	%		1.12	%
Expected volatility		3		53.55	%		54.21	%		54.21	%

Acueity Warrants [Member]

Schedule of Fair Value of Warrants [Table Text Block]

The following tables reflect assumptions used to determine the fair value of the Warrants:

		September 2012
	Fair Value Hierarchy Level	Acueity Warrants

Indexed shares			325,000
Exercise price		$	5.00

Significant assumptions:
Stock price	3	$	5.00
Remaining term	3		5 years
Risk free rate	2		0.62	%
Expected volatility	3		56.54	%

Fair value hierarchy of the above assumptions can be categorized as follows:

(1)	There were no Level 1 inputs.

(2)	Level 2 inputs include:

Risk-free rate- The risk-free rate of return reflects the interest rate for United States Treasury Note with similar time-to-maturity to that of the warrants.

(3)	Level 3 inputs include:

	·	Stock price- The Company’s common stock was not publicly traded at the time the Acueity Warrants were issued. Therefore, the stock price was determined at the offering price of the then contemplated initial public offering, for which the registration statement on Form S-1 (File No. 333-179500) was subsequently declared effective by the Securities and Exchange Commission on November 7, 2012, and a prospectus was subsequently filed pursuant to Rule 424(b)(4) on November 9, 2012 (see Note 16).

	·	Remaining term- The Company does not have a history to develop the expected term for its warrants. Accordingly, the Company expected that the Initial Exercise Date to occur within one year from the date of issuance plus the contractual term in the calculations.

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

Operating Leases of Lessee Disclosure [Table Text Block]

The future minimum lease payments due subsequent to September 30, 2012 under all non-cancelable operating leases for the next five years are as follows:

As of September 30,	Amount
2013	$	246,296
2014		246,575
2015		41,096
2016		-
2017		-
Thereafter		-
Total minimum lease payments	$	533,967

The future minimum lease payments due subsequent to December 31, 2011 under all non-cancelable operating leases for the next five years are as follows:


As of December 31,	Amounts
2012	$	204,576
2013		244,872
2014		226,027
2015		—
2016		—
Thereafter		—
Total minimum lease payments	$	675,476

- Definition

Tabular disclosure of a lessee's leasing arrangements including: (1) the basis on which contingent rental payments are determined, (2) the existence and terms of renewal or purchase options and escalation clauses, (3) restrictions imposed by lease arrangements, such as those concerning dividends, additional debt, and further leasing, (4) rent holidays, rent concessions, or leasehold improvement incentives and unusual provisions or conditions. Disclosure may also include the specific period used to amortize material leasehold improvements made at the inception of the lease or during the lease term. Additionally, for operating leases having initial or remaining noncancelable lease terms in excess of one year: (a) future minimum rental payments required as of the date of the latest balance sheet presented, in the aggregate and for each of the five succeeding fiscal years, (b) the total of minimum rentals to be received in the future under noncancelable subleases as of the date of the latest balance sheet presented, and (c) for all operating leases, rental expense for each period for which an income statement is presented, with separate amounts for minimum rentals, contingent rentals, and sublease rentals. Rental payments under leases with terms of a month or less that were not renewed need not be included.

+ References + Details

RELATED PARTY TRANSACTIONS (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

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

The Company estimated the fair value of these options using the Black-Scholes-Merton option pricing model based on the following weighted-average assumptions:

	CEO & CTO			Dr. Hunkapiller			Employees & Officers			Non-employee Directors			Non-employee Directors
Date of grant		22-Jul-10			4-Apr-11			1-Sep-11			1-Sep-11			30-Apr-12
Fair value of common stock on date of grant	$	2.756	(B)	$	0.906	(C)	$	0.906	(C)	$	0.906	(C)	$	6.00	(D)
Exercise price of the options	$	5.00		$	1.25		$	1.25		$	1.25		$	6.00
Expected life of the options (years)		3.33			5.31			5.65			5.65			5.00
Dividend yield		0.00	%		0.00	%		0.00	%		0.00	%		0.00	%
Expected volatility		58.59	%		54.12	%		53.90	%		53.90	%		62.46	%
Risk-free interest rate		1.03	%		2.26	%		1.08	%		1.08	%		0.89	%
Expected forfeiture per year (%)		0.00	%		0.00	%			(A)		0.00	%		0.00	%
Weighted-average fair value of the options (per unit)	$	0.6744		$	0.3729		$	0.3579		$	0.3579		$	3.0367

	(A)	0.00% for the first year after the grant date, and 2.50% for every three months thereafter.
	(B)	The fair value of the Company’s common stock was derived implicitly from the public offering filed in March 2010 at $3.00 per share and from the terms of an underwritten offering contemplated in July 2010 at $6.00 per Unit that was filed in October 2010, with $2.756 per share being allocated to common stock using an iterative approach in order for the combined fair value of the common stock and warrants to equal the amount of consideration to be received in the offering.
	(C)	The fair value of the Company’s common stock was derived implicitly from the Private Placement during April through June 2011 at $1.25 per Unit, wherein one Unit was comprised of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $1.60 per share.
	(D)	The fair value of the Company’s common stock was derived implicitly from the public offering filed in February 2012 at $6.00 per share.

The Company estimated the fair value of these options using the Black-Scholes-Merton option pricing model based on the following weighted-average assumptions:


	CEO & CTO			Dr. Hunkapiller			Employees & Officers			Non-employee Directors
Date of grant		22-Jul-10			4-Apr-11			1-Sep-11			1-Sep-11
Fair value of common stock on date of grant	$	2.756	^(B)	$	0.906	^(C)	$	0.906	^(C)	$	0.906	^(C)
Exercise price of the options	$	5.00		$	1.25		$	1.25		$	1.25
Expected life of the options (years)		3.33			5.31			5.65			5.65
Dividend yield		0.00	%		0.00	%		0.00	%		0.00	%
Expected volatility		58.59	%		54.12	%		53.90	%		53.90	%
Risk-free interest rate		1.03	%		2.26	%		1.08	%		1.08	%
Expected forfeiture per year (%)		0.00	%		0.00	%		(A)			0.00	%
Weighted-average fair value of the options (per unit)	$	0.6744		$	0.3729		$	0.3579		$	0.3579

(A)

0.00% for the first year after the grant date, and 2.50% for every three months thereafter.

(B)

(C)

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

Options issued and outstanding as of September 30, 2012 and their activities during the nine months then ended are as follows:

	Number of Underlying Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years
Outstanding as of January 1, 2012		608,000	$	3.41
Granted		19,757		6.00
Expired		-		-
Forfeited		-		-
Outstanding as of September 30, 2012		627,757		3.49		5.51
Exercisable as of September 30, 2012		508,632		3.21		6.02
Vested and expected to vest ⁽¹⁾		624,049		3.50		5.49

(1) Includes vested shares and unvested shares after a forfeiture rate is applied.

Options issued and outstanding as of December 31, 2011 and 2010 and their activities during the years are as follows:


	Number of Underlying Shares			Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years
Outstanding as of January 1, 2011		350,000		$	5.00
Granted		464,000			1.25
Expired		—			—
Forfeited		(206,000	)		—
Outstanding as of December 31, 2011		608,000			3.41		6.12
Exercisable as of December 31, 2011		318,750			3.31		6.27
Vested and expected to vest⁽¹⁾		608,000			3.41		6.12


	Number of Underlying Shares		Weighted- Average Exercise Price Per Share		Weighted- Average Contractual Life Remaining in Years
Outstanding as of January 1, 2010		—		—
Granted		350,000	$	5.00
Expired		—		—
Forfeited		—		—
Outstanding as of December 31, 2010		350,000		5.00		4.56
Exercisable as of December 31, 2010		87,500		5.00		4.56
Vested and expected to vest⁽¹⁾		350,000		5.00		4.56

(1)

Includes vested shares and unvested shares after a forfeiture rate is applied.

Schedule of Share-based Compensation Arrangement by Share-based Payment Award Non-Vested Shares [Table Text Block]

A summary of the status of the Company’s unvested shares as of September 30, 2012 and changes during the period then ended is presented below:

Unvested Shares	Shares			Weighted- Average Grant- Date Fair Value
Unvested as of January 1, 2012		289,250		$	159,013
Granted		19,757			60,000
Vested		(189,882	)		(141,761	)
Forfeited		-			-
Unvested as of September 30, 2012		119,125		$	77,252

A summary of the status of the Company’s unvested shares as of December 31, 2011 and 2010, and changes during the years ended December 31, 2011 and 2010, are presented below:


Unvested Shares	Shares			Weighted- Average Grant-Date Fair Value
Unvested as of January 1, 2011		262,500		$	176,963
Granted		464,000			166,741
Vested		(228,250	)		(110,964	)
Forfeited		(209,000	)		(73,727	)
Unvested as of December 31, 2011		289,250		$	159,013


Unvested Shares	Shares			Weighted- Average Grant-Date Fair Value
Unvested as of January 1, 2010		—		$	—
Granted		350,000			236,040
Vested		(87,500	)		(59,077	)
Forfeited		—			—
Unvested as of December 31, 2010		262,500		$	176,963

LINE OF CREDIT (Tables)

12 Months Ended

Dec. 31, 2011

Line Of Credit Facility [Abstract]

Schedule of Line of Credit Facilities [Table Text Block]

Line of credit consisted of the following at December 31, 2011 and 2010:


	December 31, 2011		December 31, 2010
Line of credit, JPMorgan Chase Bank	$	1,000,000.00	$	—

NATURE OF OPERATIONS (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended		32 Months Ended	41 Months Ended
NATURE OF OPERATIONS (Details Textual) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Sep. 30, 2012
Total Revenue	$ 105,576	$ 0	$ 383,386	$ 0	$ 1,500	$ 0	$ 1,500	$ 384,886

SUMMARY OF ACCOUNTING POLICIES (Details)	9 Months Ended
SUMMARY OF ACCOUNTING POLICIES (Details)	Sep. 30, 2012
Machinery and Equipment [Member]
Property, Plant and Equipment, Useful Life	5 years

SUMMARY OF ACCOUNTING POLICIES (Details Textual) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended		32 Months Ended	41 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2011	Sep. 30, 2012
Restricted cash	$ 250,000		$ 250,000		$ 1,000,000	$ 0	$ 1,000,000	$ 250,000
Loss on reduction of inventory to LCM	6,077	$ 0	29,884	$ 0	92,026	0	92,026	121,910
Selling expenses	$ 87,704	$ 0	281,971	$ 0	160,851	$ 12,204	$ 173,055	$ 455,026
ForeCYTE kits
Selling expenses			$ 36,741		$ 0

PREPAID EXPENSES (Details) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Prepaid payroll taxes	$ 36,083	$ 0
Prepaid insurances	2,472	14,146	$ 0
Prepaid hardware/software maintenance and support service fee	1,420	12,850	0
Prepaid rent	0	4,188	0
Prepaid expense	$ 39,975	$ 31,184	$ 0

- Definition

Carrying amount as of the balance sheet date of unamortized costs of insurance coverage, which will be charged against earnings ratably over the period in which contractually agreed upon coverage's will be in effect; such periods expire within one year or the normal operating cycle, if longer.

+ References + Details

RENTAL DEPOSITS (Details Textual) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Rental deposit	$ 1,500	$ 2,200	$ 0

OTHER CURRENT ASSETS (Details Textual) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Rental deposit	$ 1,500	$ 2,200	$ 0

PROPERTY, PLANT, AND EQUIPMENT (Details) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Machinery and equipment	$ 86,465	$ 86,465	$ 0
Less: Accumulated depreciation	(18,968)	(5,998)	0
Property, plant, and equipment, net	$ 67,497	$ 80,467	$ 0

- Definition

The cumulative amount of depreciation, depletion and amortization (related to property, plant and equipment, but not including land) that has been recognized in the income statement.

+ References + Details

PROPERTY, PLANT, AND EQUIPMENT (Details Textual) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011	Dec. 31, 2010
Depreciation	$ 12,970	$ 3,920	$ 5,998	$ 0

INTANGIBLE ASSET (Details) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Software	$ 50,466	$ 50,466
Patents	4,674,853	0
Less: Accumulated amortization	(22,241)	(9,625)
Intangible assets, net	$ 4,703,078	$ 40,841	$ 0

INTANGIBLE ASSET (Details 1) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
2013	$ 376,841	$ 16,822
2014	371,341	16,822
2015	360,100	7,197
2016	360,019	0
2017	360,019	0
Thereafter	2,874,758
Intangible assets, net	$ 4,703,078	$ 40,841	$ 0

INTANGIBLE ASSET (Details Textual) - USD ($)	9 Months Ended		12 Months Ended
INTANGIBLE ASSET (Details Textual) - USD ($)	Sep. 30, 2012	Sep. 30, 2011	Dec. 31, 2011
Finite-Lived Intangible Asset, Useful Life			3 years
Amortization of Intangible Assets			$ 9,625
Computer Software, Intangible Asset [Member]
Finite-Lived Intangible Asset, Useful Life	3 years
Amortization of Intangible Assets	$ 12,616	$ 5,500
Patents [Member]
Amortization of Intangible Assets	$ 0	$ 0
Patents [Member] \| Minimum [Member]
Finite-Lived Intangible Asset, Useful Life	9 years
Patents [Member] \| Maximum [Member]
Finite-Lived Intangible Asset, Useful Life	14 years

LINE OF CREDIT (Details) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Line of credit	$ 250,000
J P Morgan [Member]
Line of credit		$ 1,000,000	$ 0

LINE OF CREDIT (Details Textual) - USD ($)	1 Months Ended
LINE OF CREDIT (Details Textual) - USD ($)	Jul. 31, 2012	Jul. 23, 2012	Jun. 30, 2011	Sep. 30, 2012	Dec. 31, 2011	Jun. 28, 2011	Dec. 31, 2010
Debt Instrument, Maturity Date, Description		the Company entered into a business loan extension agreement with JPMorgan Chase Bank to extend the loan for three months from the original maturity date.
Debt Instrument, Description of Variable Rate Basis	The adjustable interest rate is a rate per annum equal to the sum of an index, which is the LIBOR Rate plus 1.914 percentage point(s)
Line of Credit				$ 250,000	$ 1,000,000		$ 0
Line of Credit Facility, Interest Rate at Period End				2.9138%	2.207%
Restricted cash				$ 250,000	$ 1,000,000		$ 0
J P Morgan [Member]
Debt Instrument, Maturity Date			Jun. 28, 2012
Line of Credit Facility, Maximum Borrowing Capacity						$ 1,000,000

- Definition

The carrying value as of the balance sheet date of the current portion of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

ACCRUED EXPENSES (Details) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Accrued expenses	$ 1,744,555	$ 201,113	$ 391,749
Accrued bonus payable	135,239	153,830	0
Accrued payroll tax liabilities	7,951	87,386	7,540
Accrued interest	599	0
Accrued Liabilities, Current	$ 1,888,344	$ 442,329	$ 399,289

- Definition

Carrying value as of the balance sheet date of obligations incurred and payable for incentive compensation awarded to employees and directors or earned by them based on the terms of one or more relevant arrangements. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

- Definition

Carrying value as of the balance sheet date of [accrued] interest payable on all forms of debt, including trade payables, that has been incurred and is unpaid. Used to reflect the current portion of the liabilities (due within one year or within the normal operating cycle if longer).

+ References + Details

STOCKHOLDERS' EQUITY (Details) - $ / shares

1 Months Ended

3 Months Ended

Dec. 31, 2011

Jun. 30, 2011

Sep. 30, 2012

Significant assumptions:

Stock price

$ 5.00

Placement Agent1 [Member]

Indexed shares

788,520

Exercise price

$ 1.6

Placement Agent1 [Member] | Fair Value, Inputs, Level 3 [Member]

Significant assumptions:

Stock price

^[1]

$ 0.906

Remaining term

^[2]

6 years

Expected volatility

^[3]

54.21%

Placement Agent1 [Member] | Fair Value, Inputs, Level 2 [Member]

Significant assumptions:

Risk free rate

^[4]

1.12%

Placement Agent2 [Member]

Indexed shares

788,520

Exercise price

$ 1.25

Placement Agent2 [Member] | Fair Value, Inputs, Level 3 [Member]

Significant assumptions:

Stock price

^[1]

$ 0.906

Remaining term

^[2]

6 years

Expected volatility

^[3]

54.21%

Placement Agent2 [Member] | Fair Value, Inputs, Level 2 [Member]

Significant assumptions:

Risk free rate

^[4]

1.12%

Investor Warrants [Member]

Indexed shares

5,256,800

Exercise price

$ 1.6

Investor Warrants [Member] | Fair Value, Inputs, Level 3 [Member]

Significant assumptions:

Stock price

^[1]

$ 0.906

Remaining term

^[2]

6 years

Expected volatility

^[3]

53.55%

Investor Warrants [Member] | Fair Value, Inputs, Level 2 [Member]

Significant assumptions:

Risk free rate

^[4]

2.49%

[1]	Stock price- The Company's common stock was not publicly traded at the time the Warrants were issued. Therefore, the stock price was determined implicitly from an iterative process in order for the combined fair value of the common stock and the warrants to equal the amount of proceeds received in the Private Placement, based upon the assumption that the Private Placement was the result of an arm's length transaction.
[2]	Remaining term- The Company does not have a history to develop the expected term for its warrants. Accordingly, the Company expected that the Initial Exercise Date to occur within one year from the date of issuance plus the contractual term in the calculations.
[3]	Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, as required by ASC 718-10-30, the Company has accounted for the warrants using the calculated value method. The Company identified seven public entities in the similar industry for which share price information was available, and considered the historical volatilities of those public entities' share prices in calculating the expected volatility appropriate to the Company.
[4]	Risk-free rate- The risk-free rate of return reflects the interest rate for United States Treasury Note with similar time-to-maturity to that of the warrants.

STOCKHOLDERS' EQUITY (Details 1)

9 Months Ended

Sep. 30, 2012

$ / shares

Significant assumptions:

Stock price

$ 5.00

Acueity Warrants [Member]

Indexed shares | shares

325,000

Exercise price

$ 5

Acueity Warrants [Member] | Fair Value, Inputs, Level 3 [Member]

Significant assumptions:

Stock price

$ 5.00

^[1]

Remaining term

5 years

^[2]

Expected volatility

56.54%

^[3]

Acueity Warrants [Member] | Fair Value, Inputs, Level 2 [Member]

Significant assumptions:

Risk free rate

0.62%

^[4]

[1]	Stock price- The Company's common stock was not publicly traded at the time the Acueity Warrants were issued. Therefore, the stock price was determined at the offering price of the then contemplated initial public offering, for which the registration statement on Form S-1 (File No. 333-179500) was subsequently declared effective by the Securities and Exchange Commission on November 7, 2012, and a prospectus was subsequently filed pursuant to Rule 424(b)(4) on November 9, 2012 (see Note 16).
[2]	Remaining term- The Company does not have a history to develop the expected term for its warrants. Accordingly, the Company expected that the Initial Exercise Date to occur within one year from the date of issuance plus the contractual term in the calculations.
[3]	Expected volatility- We did not have a historical trading history sufficient to develop an internal volatility rate for use in the model. As a result, as required by ASC 718-10-30, the Company has accounted for the warrants using the calculated value method. The Company identified seven public entities in the similar industry for which share price information was available, and considered the historical volatilities of those public entities' share prices in calculating the expected volatility appropriate to the Company.
[4]	Risk-free rate- The risk-free rate of return reflects the interest rate for United States Treasury Note with similar time-to-maturity to that of the warrants.

STOCKHOLDERS' EQUITY (Details Textual)	1 Months Ended								3 Months Ended	9 Months Ended	12 Months Ended
STOCKHOLDERS' EQUITY (Details Textual)	Sep. 01, 2011 shares	Sep. 28, 2010 shares	Apr. 27, 2010 USD ($) shares	Jan. 23, 2010 USD ($) $ / shares shares	Jan. 21, 2010 USD ($) Numbers $ / shares shares	Dec. 28, 2009 USD ($) $ / shares shares	Jul. 28, 2009 USD ($) $ / shares shares	Apr. 30, 2009 USD ($) $ / shares shares	Jun. 30, 2011 USD ($) $ / shares shares	Sep. 30, 2012 USD ($) $ / shares shares	Dec. 31, 2011 USD ($) $ / shares shares	Dec. 31, 2010 $ / shares shares
Total Shares Authorized										85,000,000	85,000,000
Common stock, shares authorized										75,000,000	75,000,000	75,000,000
Common stock, par value (in dollars per share) \| $ / shares										$ 0.001	$ 0.001	$ 0.001
Preferred stock, shares authorized										10,000,000	10,000,000	10,000,000
Preferred stock, par value (in dollars per share) \| $ / shares										$ 0.001	$ 0.001	$ 0.001
Stockholders' Equity, Reverse Stock Split		1-for-2.26332
Stock Issued During Period, Shares, Acquisitions										862,500
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross										19,757	464,000	350,000
Non-Qualified Under 2010 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross											45,000
Stock Option and Incentive Plan 2010 [Member]
Common Stock, Capital Shares Reserved for Future Issuance		1,000,000
Investor Warrants [Member]
Fair Value of Warrants (in dollars per warrant) \| $ / shares											$ 0.344
Warrants and Rights Outstanding \| $											$ 1,808,025
Private Placement [Member]
Proceeds from Issuance of Private Placement \| $									$ 6,571,000
Cash Fee Equals to Percentage of Gross Proceeds from Sale of Common Stock and Warrants									10.00%
Percentage of Non-Accountable Expense Allowance									3.00%
Fees and Commissions, Other \| $									$ 857,230
Securities Purchase Agreements, Investor [Member]
Sale of Stock, Number of Shares Issued in Transaction									5,256,800
Sale of Stock, Price Per Share \| $ / shares									$ 1.25
Securities Purchase Agreements, Investor Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									5,256,800
Placement Agent Additional Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									788,520
Exercise Price of Common Stock \| $ / shares									$ 1.25
Initial Fair Value of Warrants \| $									$ 495,876
Placement Agent1 [Member]
Fair Value of Warrants (in dollars per warrant) \| $ / shares											$ 0.290
Warrants and Rights Outstanding \| $											$ 228,712
Placement Agent Warrants [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									788,520
Exercise Price of Common Stock \| $ / shares									$ 1.60
Placement Agent2 [Member]
Fair Value of Warrants (in dollars per warrant) \| $ / shares											$ 0.339
Warrants and Rights Outstanding \| $											$ 267,164
Acueity Warrants [Member]
Stock Issued During Period, Shares, New Issues										862,500
Class of Warrant or Right, Number of Securities Called by Warrants or Rights										325,000
Exercise Price of Common Stock \| $ / shares										$ 5.00
Fair Value of Warrants (in dollars per warrant) \| $ / shares										$ 2.3457
Warrants and Rights Outstanding \| $										$ 762,353
Subsequent Event [Member]
Stock Issued During Period, Shares, New Issues										800,000
Chief Executive Officer [Member]
Stock Issued During Period, Shares, Issued for Cash								883,662
Stock Issued During Period, Value, Issued for Cash \| $								$ 12,000
Equity Issuance, Per Share Amount \| $ / shares								$ 0.014
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross												250,000
Director [Member]
Stock Issued During Period, Shares, Issued for Cash							39,765
Stock Issued During Period, Value, Issued for Cash \| $							$ 540
Equity Issuance, Per Share Amount \| $ / shares							$ 0.014
Prior To Reverse Share Split [Member] \| Stock Option and Incentive Plan 2010 [Member]
Common Stock, Capital Shares Reserved for Future Issuance		2,263,320
Prior To Reverse Share Split [Member] \| Chief Executive Officer [Member]
Stock Issued During Period, Shares, Issued for Cash								2,000,000
Equity Issuance, Per Share Amount \| $ / shares								$ 0.006
Prior To Reverse Share Split [Member] \| Director [Member]
Stock Issued During Period, Shares, Issued for Cash							90,000
Equity Issuance, Per Share Amount \| $ / shares							$ 0.006
Ensisheim Partners Llc [Member]
Stock Issued During Period, Shares, Issued for Cash						883,658		1,767,316
Stock Issued During Period, Value, Issued for Cash \| $						$ 100,000		$ 24,000
Equity Issuance, Per Share Amount \| $ / shares						$ 0.11		$ 0.014
Ensisheim Partners Llc [Member] \| Prior To Reverse Share Split [Member]
Stock Issued During Period, Shares, Issued for Cash						2,000,000		4,000,000
Equity Issuance, Per Share Amount \| $ / shares						$ 0.05		$ 0.006
Manistee Ventures Llc [Member]
Stock Issued During Period, Shares, Issued for Cash								1,325,487
Stock Issued During Period, Value, Issued for Cash \| $								$ 18,000
Equity Issuance, Per Share Amount \| $ / shares								$ 0.014
Manistee Ventures Llc [Member] \| Prior To Reverse Share Split [Member]
Stock Issued During Period, Shares, Issued for Cash								3,000,000
Equity Issuance, Per Share Amount \| $ / shares								$ 0.006
Forty-Four Investors [Member]
Stock Issued During Period, Shares, Issued for Cash					866,007
Stock Issued During Period, Value, Issued for Cash \| $					$ 98,000
Equity Issuance, Per Share Amount \| $ / shares					$ 0.11
Number of Investors \| Numbers					44
Forty-Four Investors [Member] \| Prior To Reverse Share Split [Member]
Stock Issued During Period, Shares, Issued for Cash					1,960,000
Equity Issuance, Per Share Amount \| $ / shares					$ 0.05
Servicer [Member]
Equity Issuance, Per Share Amount \| $ / shares					$ 0.11
Stock Issued During Period, Shares, New Issues					132,549
Stock Issued During Period, Value, New Issues \| $					$ 15,000
Servicer [Member] \| Prior To Reverse Share Split [Member]
Equity Issuance, Per Share Amount \| $ / shares					$ 0.05
Stock Issued During Period, Shares, New Issues					300,000
Shareholder [Member]
Stock Issued During Period, Shares, Issued for Cash					13,255
Stock Issued During Period, Value, Issued for Cash \| $					$ 6,000
Equity Issuance, Per Share Amount \| $ / shares					$ 0.11
Number of Investors \| Numbers					1
Additional Stock Issued During Period Shares Issued For Cash					53,020
Shareholder [Member] \| Prior To Reverse Share Split [Member]
Stock Issued During Period, Shares, Issued for Cash					30,000
Equity Issuance, Per Share Amount \| $ / shares					$ 0.05
Additional Stock Issued During Period Shares Issued For Cash		120,000
Investor [Member]
Stock Issued During Period, Shares, Issued for Cash				35,346
Stock Issued During Period, Value, Issued for Cash \| $				$ 4,000
Equity Issuance, Per Share Amount \| $ / shares				$ 0.11
Investor [Member] \| Prior To Reverse Share Split [Member]
Stock Issued During Period, Shares, Issued for Cash				80,000
Equity Issuance, Per Share Amount \| $ / shares				$ 0.05
Website Development Services [Member]
Stock Issued During Period, Shares, Issued for Services			13,256
Stock Issued During Period, Value, Issued for Services \| $			$ 50,000
Website Development Services [Member] \| Prior To Reverse Share Split [Member]
Stock Issued During Period, Shares, Issued for Services			30,000
Shareholders Of Acueity [Member]
Equity Issuance, Per Share Amount \| $ / shares										$ 5.00
Stock Issued During Period, Value, New Issues \| $										$ 4,312,500
Stock Issued During Period, Shares, Acquisitions										862,500
Employees and Officers [Member] \| Incentive Stock Options Under 2010 Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	219,000

CONCENTRATION OF CREDIT RISK (Details Textual) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Cash, FDIC Insured Amount	$ 250,000	$ 250,000	$ 250,000
Cash, Uninsured Amount	$ 418,570	$ 2,660,821	$ 0

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Sep. 30, 2012	Dec. 31, 2011
Future minimum payments due current	$ 246,296	$ 204,576
Future minimum payments due in two years	246,575	244,872
Future minimum payments due in three years	41,096	226,027
Future minimum payments due in four years	0	0
Future minimum payments due in five years	0	0
Thereafter	0	0
Total minimum lease payments	$ 533,967	$ 675,476

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	1 Months Ended					6 Months Ended	9 Months Ended
	Dec. 09, 2011	Sep. 27, 2011	Jul. 09, 2011	Mar. 04, 2011	Sep. 29, 2010	Mar. 31, 2012	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Security Deposit							$ 36,446	$ 5,157	$ 4,757
Lease Agreement 2010 [Member]
Operating Leases, Rent Expense							38,403
Lease Agreement 2010 [Member] \| Complegen Inc [Member]
Monthly Lease Rent					$ 3,658
Security Deposit					$ 3,658
Enhanced Lease Rent							4,267
Lease Expiration Date, Description					The lease terms are from September 29, 2010 through March 31, 2011, at which time the lease has converted to month to month unless two months' prior written notice of the intent to terminate the agreement is given.
Lease Agreement March 2011 [Member] \| Sanders Properties, Llc [Member]
Monthly Lease Rent				$ 1,100
Security Deposit				$ 1,500
Operating Leases, Rent Expense							9,900
Lease Expiration Date				Mar. 31, 2013
Lease Agreement July 2011 [Member] \| Sanders Properties, Llc [Member]
Monthly Lease Rent			$ 600
Security Deposit			$ 1,200
Operating Leases, Rent Expense							4,200
Lease Expiration Date			Jul. 31, 2012
Lease Agreement September 2011 [Member] \| Sanders Properties, Llc [Member]
Monthly Lease Rent		$ 1,400
Security Deposit		$ 1,000
Operating Leases, Rent Expense						$ 8,400
Lease Expiration Date		Mar. 31, 2012
Lease Agreement December 2011 [Member] \| Fred Hutchinson Research Center [Member]
Security Deposit	$ 32,789
Operating Leases, Rent Expense							$ 161,424
Lease Expiration Date	Nov. 30, 2014
Loss Contingency, Damages Sought, Value	$ 450,000
Lease Agreement December 2011 [Member] \| Fred Hutchinson Research Center [Member] \| Monthly Rent For Period From February 24, 2012 To August 31, 2012 [Member]
Monthly Lease Rent	16,395
Lease Agreement December 2011 [Member] \| Fred Hutchinson Research Center [Member] \| Monthly Rent For Period From September 1, 2012 To August 31, 2013 [Member]
Monthly Lease Rent	19,923
Lease Agreement December 2011 [Member] \| Fred Hutchinson Research Center [Member] \| Monthly Rent For Period From September 1, 2013 To November 29, 2014 [Member]
Monthly Lease Rent	$ 20,548

RELATED PARTY TRANSACTIONS (Details)

1 Months Ended

9 Months Ended

12 Months Ended

Jul. 31, 2010

$ / shares

Mar. 31, 2010

$ / shares

Sep. 30, 2012

$ / shares

$ / Unit

Dec. 31, 2011

$ / shares

$ / Unit

Dr.Hunkapiller [Member]

Date of grant

Apr. 04, 2011

Fair value of common stock on date of grant

^[1]

$ 0.906

Exercise price of the options

$ 1.25

Expected life of the options (years)

5 years 3 months 22 days

Dividend yield

0.00%

Expected volatility

54.12%

Risk-free interest rate

2.26%

Expected forfeiture per year (%)

0.00%

Weighted-average fair value of the options (per unit) | $ / Unit

0.3729

Chief Executive Officer and Chief Technology Officer [Member]

Date of grant

Jul. 22, 2010

Fair value of common stock on date of grant

$ 6.00

$ 3.00

$ 2.756

^[2]

$ 2.756

^[2]

Exercise price of the options

$ 5.00

Expected life of the options (years)

3 years 3 months 29 days

Dividend yield

0.00%

Expected volatility

58.59%

Risk-free interest rate

1.03%

Expected forfeiture per year (%)

0.00%

Weighted-average fair value of the options (per unit) | $ / Unit

0.6744

Employees and Officers [Member]

Date of grant

Sep. 01, 2011

Fair value of common stock on date of grant

^[1]

$ 0.906

Exercise price of the options

$ 1.25

Expected life of the options (years)

5 years 7 months 24 days

Dividend yield

0.00%

Expected volatility

53.90%

Risk-free interest rate

1.08%

Expected forfeiture per year (%)

^[3]

Weighted-average fair value of the options (per unit) | $ / Unit

0.3579

Non Employee Director [Member] | Stock Option One [Member]

Date of grant

Sep. 01, 2011

Fair value of common stock on date of grant

^[1]

$ 0.906

Exercise price of the options

$ 1.25

Expected life of the options (years)

5 years 7 months 24 days

Dividend yield

0.00%

Expected volatility

53.90%

Risk-free interest rate

1.08%

Expected forfeiture per year (%)

0.00%

Weighted-average fair value of the options (per unit) | $ / Unit

0.3579

Non Employee Director [Member] | Stock Option Two [Member]

Date of grant

Apr. 30, 2012

Fair value of common stock on date of grant

^[4]

$ 6

Exercise price of the options

$ 6.00

Expected life of the options (years)

5 years

Dividend yield

0.00%

Expected volatility

62.46%

Risk-free interest rate

0.89%

Expected forfeiture per year (%)

0.00%

Weighted-average fair value of the options (per unit) | $ / Unit

3.0367

[1]	The fair value of the Company's common stock was derived implicitly from the Private Placement during April through June 2011 at $1.25 per Unit, wherein one Unit was comprised of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $1.60 per share.
[2]	The fair value of the Company's common stock was derived implicitly from the public offering filed in March 2010 at $3.00 per share and from the terms of an underwritten offering contemplated in July 2010 at $6.00 per Unit that was filed in October 2010, with $2.756 per share being allocated to common stock using an iterative approach in order for the combined fair value of the common stock and warrants to equal the amount of consideration to be received in the offering.
[3]	0.00% for the first year after the grant date, and 2.50% for every three months thereafter.
[4]	The fair value of the Company's common stock was derived implicitly from the public offering filed in February 2012 at $6.00 per share.

RELATED PARTY TRANSACTIONS (Details 1) - $ / shares

9 Months Ended

12 Months Ended

Sep. 30, 2012

Dec. 31, 2011

Dec. 31, 2010

Number of Underlying Shares, Outstanding, Beginning balance (in shares)

608,000

350,000

Number of Underlying Shares, Granted (in shares)

19,757

464,000

350,000

Number of Underlying Shares, Expired (in shares)

Number of Underlying Shares, Forfeited (in shares)

(206,000)

Number of Underlying Shares, Outstanding, Ending balance (in shares)

627,757

608,000

350,000

Number of Underlying Shares, Exercisable (in shares)

508,632

318,750

87,500

Number of Underlying Shares, Vested and expected to vest (in shares)

^[1]

624,049

608,000

350,000

Weighted-Average Exercise Price Per Share, Outstanding, Beginning balance (in dollars per share)

$ 3.41

$ 5.00

$ 0

Weighted-Average Exercise Price Per Share, Granted (in dollars per share)

1.25

5.00

Weighted-Average Exercise Price Per Share, Expired (in dollars per share)

Weighted-Average Exercise Price Per Share, Forfeited (in dollars per share)

Weighted-Average Exercise Price Per Share, Outstanding, Ending balance (in dollars per share)

3.49

3.41

5.00

Weighted-Average Exercise Price Per Share, Exercisable (in dollars per share)

3.21

3.31

5.00

Weighted-Average Exercise Price Per Share, Vested and expected to vest (in dollars per share)

^[1]

$ 3.5

$ 3.41

$ 5.00

Weighted-Average Contractual Life Remaining in Years, Outstanding

5 years 6 months 4 days

6 years 1 month 13 days

4 years 6 months 22 days

Weighted-Average Contractual Life Remaining in Years, Exercisable

6 years 7 days

6 years 3 months 7 days

4 years 6 months 22 days

Weighted-Average Contractual Life Remaining in Years, Vested and expected to vest

^[1]

5 years 5 months 26 days

6 years 1 month 13 days

4 years 6 months 22 days

[1]	Includes vested shares and unvested shares after a forfeiture rate is applied.

RELATED PARTY TRANSACTIONS (Details 2) - USD ($)	9 Months Ended	12 Months Ended
RELATED PARTY TRANSACTIONS (Details 2) - USD ($)	Sep. 30, 2012	Dec. 31, 2011	Dec. 31, 2010
Shares, Unvested, Beginning balance (in shares)	289,250	262,500	0
Shares, Granted (in shares)	19,757	464,000	350,000
Shares, Vested (in shares)	(189,882)	(228,250)	(87,500)
Shares, Forfeited (in shares)	0	(209,000)	0
Shares, Unvested, Ending balance (in shares)	119,125	289,250	262,500
Weighted-Average Grant-Date Fair Value, Unvested Beginning balance (in dollars)	$ 159,013	$ 176,963	$ 0
Weighted-Average Grant-Date Fair Value, Granted (in dollars)	60,000	166,741	236,040
Weighted-Average Grant-Date Fair Value, Vested (in dollars)	(141,761)	(110,964)	(59,077)
Weighted-Average Grant-Date Fair Value, Forfeited (in dollars)	0	(73,727)	0
Weighted-Average Grant-Date Fair Value, Unvested Ending balance (in dollars)	$ 77,252	$ 159,013	$ 176,963

RELATED PARTY TRANSACTIONS (Details Textual) - USD ($)

1 Months Ended

3 Months Ended

6 Months Ended

8 Months Ended

9 Months Ended

12 Months Ended

20 Months Ended

32 Months Ended

41 Months Ended

Jul. 31, 2010

Mar. 31, 2010

Mar. 31, 2012

Jun. 30, 2010

Dec. 31, 2009

Sep. 30, 2012

Sep. 30, 2011

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Dec. 31, 2010

Dec. 31, 2011

Sep. 30, 2012

Jul. 30, 2012

Jun. 30, 2011

May 19, 2011

May 16, 2011

Mar. 31, 2011

Nov. 03, 2010

Dec. 24, 2009

May 26, 2009

Interest Payable, Current

$ 599

$ 0

$ 599

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

19,757

464,000

350,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

627,757

608,000

350,000

608,000

627,757

Share-based Compensation

$ 96,251

$ 111,288

$ 140,056

$ 30,396

$ 170,452

$ 266,703

Weighted-Average Exercise Price Per Share, Granted (in dollars per share)

$ 6

$ 1.25

$ 5.00

Share Price

$ 5.00

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value

$ 389,053

$ 329,053

$ 236,040

329,053

$ 389,053

Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value

389,053

329,053

236,040

329,053

389,053

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value

389,053

$ 329,053

236,040

$ 329,053

$ 389,053

Accrued Salaries

278,571

$ 391,071

Investor Warrants [Member]

Exercise price of the options

$ 1.6

$ 5.00

$ 7.00

Ensisheim Partners Llc [Member]

Exclusive License Agreement, Royalty Percentage

2.00%

Exclusive License Agreement, Minimum Royalty

$ 12,500

Exclusive License Agreement, Minimum Royalty Increased

$ 25,000

Patents Expenses

$ 16,250

Operating Lease Annual Rent

$ 13,200

Operating Leases, Rent Expense

$ 6,600

$ 248

Security Deposit Related to Lease

$ 1,100

Security Deposit Refund

$ 1,100

Ensisheim Partners Llc [Member] | Royalty Payments Expense [Member]

Other Operating Income

$ 12,500

Robert L.Kelly [Member]

Consulting Expense

$ 30,000

Dr.Hunkapiller [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

^[1]

$ 0.906

Exercise price of the options

1.25

$ 1.25

Dr.Hunkapiller [Member] | Stock Option and Incentive Plan 2010 [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

45,000

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights

(i) 11,250 option shares shall vest ninety (90) days after the date of grant; (ii) 11,000 option shares shall vest one hundred and eighty (180) days after the date of grant; (iii) 11,500 option shares shall vest two hundred and seventy (270) days after the date of grant; (iv) 11,250 option shares shall vest three hundred and sixty (360) days after the date of grant.

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term

10 years

Subsequent Event [Member]

Share Price

$ 5.00

Board Of Directors Chairman and Chief Executive Office [Member]

Debt Instrument, Interest Rate, Stated Percentage

10.00%

Line of Credit Facility, Maximum Borrowing Capacity

$ 500,000

Line of Credit Facility, Interest Rate During Period

12.00%

10.00%

Line of Credit Facility, Current Borrowing Capacity

$ 79,300

140,000

Line of Credit Facility, Accrued Interest

1,153

$ 1,153

$ 6,093

Line of Credit Facility, Periodic Payment, Principal

$ 5,078

Board Of Directors Chairman and Chief Executive Office [Member] | Subsequent Event [Member]

Line of Credit Facility, Periodic Payment, Principal

79,300

Board Of Directors Chairman and Chief Executive Office [Member] | Promissory Note One [Member]

Short-term Debt

$ 5,000

Debt Instrument, Interest Rate, Stated Percentage

10.00%

Debt Instrument, Maturity Date

Dec. 31, 2010

Interest Payable, Current

$ 439

Board Of Directors Chairman and Chief Executive Office [Member] | Promissory Note Two [Member]

Debt Instrument, Interest Rate, Stated Percentage

10.00%

Interest Payable, Current

$ 8,959

Debt Instrument, Face Amount

$ 100,000

Loan Processing Fee

$ 4,000

Interest Expense, Debt

4,000

Chief Executive Officer [Member]

Annual Base Salary

360,000

Salaries and Bonus

269,438

Modified Annual Base Salary

$ 250,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

250,000

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights

25% (or 62,500 shares) vested on December 31, 2010 with the remaining 75% (or 187,500 shares) to vest in equal quarterly installments over the next three years so long as the executive remains employed with the company.

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

62,500

Share-based Compensation Arrangement by Share-based Payment Award, Options, Expected to Vest, Outstanding Number

187,500

Chief Executive Officer [Member] | Prior To Reverse Stock Split [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

565,830

Chief Executive Officer [Member] | Research and Development Expense [Member]

Salaries and Bonus

134,719

Former President [Member]

Annual Base Salary

$ 350,000

Chief Technology Officer [Member]

Annual Base Salary

250,000

Salaries and Bonus

$ 200,550

Modified Annual Base Salary

$ 200,000

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

100,000

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights

25% (or 25,000 shares) vested on December 31, 2010 with the remaining 75% (or 75,000 shares) to vest in equal quarterly installments over the next three years so long as the executive remains employed with the company.

Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number

25,000

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term

5 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Expected to Vest, Outstanding Number

75,000

Chief Technology Officer [Member] | Prior To Reverse Stock Split [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

226,332

Chief Technology Officer [Member] | Research and Development Expense [Member]

Salaries and Bonus

$ 200,550

Chief Executive Officer and Chief Technology Officer [Member]

Salaries and Bonus

$ 693,048

$ 377,620

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term

5 years

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

$ 6.00

$ 3.00

$ 2.756

^[2]

$ 2.756

^[2]

Exercise price of the options

$ 5.00

5.00

$ 5.00

Chief Executive Officer and Chief Technology Officer [Member] | Research and Development Expense [Member]

Salaries and Bonus

$ 492,095

$ 0

Employees and Officers [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions Expected Forfeiture Rate, Description

0.00% for the first year after the grant date, and 2.50% for every three months thereafter.

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

^[1]

$ 0.906

Exercise price of the options

1.25

$ 1.25

1.25

Employees and Officers [Member] | Stock Option and Incentive Plan 2010 [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

219,000

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights

(i) twenty-five percent (25%) of the underlying shares on the first anniversary of the date of grant; and (ii) one-forty eighth (1/48) of the underlying shares monthly thereafter.

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term

10 years

Non-Employee Director [Member] | Stock Option One [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

^[1]

0.906

$ 0.906

Exercise price of the options

1.25

$ 1.25

1.25

Non-Employee Director [Member] | Stock Option Two [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value

^[3]

Exercise price of the options

$ 6.00

Non-Employee Director [Member] | Stock Option and Incentive Plan 2010 [Member] | Stock Option One [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

200,000

Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights

(i) 80,000 option shares shall vest on September 1, 2011; (ii) 30,000 options shares shall vest on December 1, 2011; (iii) 30,000 options shares shall vest on March 1, 2012; (iv) 30,000 options shares shall vest on June 1, 2012; (v) 30,000 options shares shall vest on September 1, 2012.

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term

10 years

Non-Employee Director [Member] | Stock Option and Incentive Plan 2010 [Member] | Stock Option Two [Member]

Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross

19,757

Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Outstanding Options, Weighted Average Remaining Contractual Term

10 years

[1]	The fair value of the Company's common stock was derived implicitly from the Private Placement during April through June 2011 at $1.25 per Unit, wherein one Unit was comprised of one share of common stock and one warrant to purchase one share of common stock at an exercise price of $1.60 per share.
[2]	The fair value of the Company's common stock was derived implicitly from the public offering filed in March 2010 at $3.00 per share and from the terms of an underwritten offering contemplated in July 2010 at $6.00 per Unit that was filed in October 2010, with $2.756 per share being allocated to common stock using an iterative approach in order for the combined fair value of the common stock and warrants to equal the amount of consideration to be received in the offering.
[3]	The fair value of the Company's common stock was derived implicitly from the public offering filed in February 2012 at $6.00 per share.

ASSET PURCHASE (Details Textual)	9 Months Ended
ASSET PURCHASE (Details Textual)	Sep. 30, 2012 USD ($) $ / shares shares
Cash Acquired from Acquisition \| $	$ 400,000
Stock Issued During Period, Shares, Acquisitions \| shares	862,500
Share Price	$ 5.00
Warrants Issued During Period Acquisitions \| shares	325,000
Warrants Exercise Price	$ 5.00
Warrant Terms	5 years
Warrant Price	$ 2.3457

- Definition

Number of shares of stock issued during the period pursuant to acquisitions.

+ References + Details

SUBSEQUENT EVENTS (Details Textual)	9 Months Ended
SUBSEQUENT EVENTS (Details Textual)	Sep. 30, 2012 USD ($) $ / shares shares
Share Price \| $ / shares	$ 5.00
Subsequent Event [Member]
Stock Issued During Period, Shares, New Issues \| shares	800,000
Share Price \| $ / shares	$ 5.00
Proceeds from Issuance Initial Public Offering \| $	$ 3,455,000
Underwriting Discounts and Commissions \| $	$ 545,000