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Stockholders' Equity Note Disclosure [Text Block]

NOTE 8: 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 at Inception

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).

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 a 3% non-accountable expense allowance, which resulted in a payment to the Placement Agent of 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, 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 (collectively with the warrants exercisable at $1.25 per share, 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 the $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 June 23, 2011 which is the date that the Company completed a “significant private financing” under the terms of the Warrants (the “Initial Exercise Date”). The Warrants shall expire and no longer be exercisable on the fifth anniversary of the Initial Exercise Date (the “Expiration Date”). The Warrants may be exercised for cash or, at the option of the holder, may be exercised on a cashless basis; however if a registration statement is in effect for the resale of the common stock issuable upon exercise of the Warrants then the Warrants cannot be exercised on a cashless basis. As of March 31, 2014 such a registration statement was in effect and, therefore, the Warrants cannot 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 $0.34 per warrant, $228,712 or $0.29 per warrant, and $267,164 or $0.34 per warrant, respectively. The following tables reflect assumptions used to determine the fair value of the Warrants:

	Fair		April-June 2011			December 2011
	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 would 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 $2.35 per warrant. The following tables reflect assumptions used to determine the fair value of the Warrants:

	Fair Value Hierarchy		September 2012
	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 14).

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 would 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.

2014 Public Offering of Common Stock and Warrants

On January 29, 2014, the Company closed a public offering of 5,834,234 units at the price of $2.40 per unit for the total gross proceed of approximately $14.0 million. Each unit consists of one share of common stock and a warrant to purchase 0.20 of a share of common stock (the “2014 Investor Warrants”). The 2014 Investor Warrants are exercisable at $3.00 per share and callable by the Company at $6.00 per share if certain conditions are met.

Placement Agent Fees

In connection with the 2014 Public Offering, the Company paid Dawson James Securities, Inc. (the “Placement Agent”), a cash fee equal to 7% of the gross proceeds from sale of the units, which resulted in a payment to the Placement Agent of an aggregate of $980,151 (the “Placement Agent Fee”). In addition, the Company entered into Warrant Agreements with the Placement Agent pursuant to which the Placement Agent received 175,027 warrants, or 3% of the aggregate number of shares sold in the offering (the “2014 Placement Agent Warrants” and together with the 2014 Investor Warrants, the “2014 Warrants”). Each 2014 Placement Agent Warrant entitles the Placement Agent to purchase one share of the Company’s common stock at $3.00 per share. The cash payment of the $980,151 2014 Placement Agent Fee and the $121,707 aggregated initial fair value of the 2014 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 2014 Warrants are exercisable at any time commencing after January 29, 2014 (the “Initial Exercise Date”). Subject to the call right described above, the 2014 Warrants shall expire and no longer be exercisable on the fifth anniversary of the Initial Exercise Date on November 29, 2018 (the “Expiration Date”). The 2014 Warrants cannot be exercised on a cashless basis. There are no redemption features embodied in the 2014 Warrants and they have met the conditions provided in current accounting standards for equity classification.

Fair Value Consideration

The Company’s accounting for the issuance of the 2014 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 2014 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 2014 Investor Warrants and the 2014 Placement Agent Warrants were valued at $834,986 or $0.72 per warrant, and $121,707 or $0.70 per warrant, respectively. The following tables reflect assumptions used to determine the fair value of the 2014 Warrants:

	Fair		January 29, 2014
	Value Hierarchy Level		2014 Investor Warrants			Placement Agent Warrants

Indexed shares				1,166,849			175,027
Exercise price			$	3.00		$	3.00

Significant assumptions:
Stock price		1	$	2.50		$	2.47
Remaining term		3		5 years			5 years
Risk free rate		2		1.45	%		1.42	%
Expected volatility		3		37.96	%		37.95	%

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

(1)

Level 1 inputs include:

Stock price- The Fair value of Company’s common was derived from the closing prices in NASDAQ Capital Market as of the issuance.

(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:

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 five 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.

Outstanding Warrants

As of March 31, 2014, warrants to purchase 6,073,426 shares of common stock are outstanding including:

(1)

4,292,050 warrants from the 2011 private placement (exercisable at $1.25 or $1.60),

(2)

325,000 warrants issued in the Acueity transaction (exercisable at $5.00),

(3)

1,166,849 warrants from the January 29, 2014 Public Offering (exercisable at $3.00), and

	(4)	242,027 warrants granted as placement agent fees for the Company’s offerings during 2013 and January 29, 2014 (exercisable from $2.12 to $12.43).

	(5)	47,500 warrants granted to an outside consulting firm (exercisable at $4.24).

Stock Options 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) were initially 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 January 1, 2012, 450,275 shares were added to the 2010 Plan and on January 1, 2013, 516,774 shares were added to the 2010 Plan, and on January 1, 2014, 742,973 shares were added to the 2010 plan as provided under the terms of the 2010 Plan.

The Company granted options to purchase 334,397 shares of common stock to employees and directors during the three months ended March 31, 2014. During the quarter ended March 31, 2014, a new member of the Board of Directors was appointed and in connection with that appointment he earned the right to receive 22,728 shares of restricted stock under the 2010 Plan; however, these shares were not issued as of March 31, 2014. The Company issued no shares of common stocks in connection with the exercise of employee’s stock options during the three months ended March 31, 2014. As of March 31, 2014, there are 897,617 options available for grant under the 2010 Plan.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

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+ Details

COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 11: COMMITMENTS AND CONTINGENCIES

Lease Commitments

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, 2014. On March 20, 2014, the Company entered into a new agreement with Sanders properties which extends the terms of the lease through March 31, 2015 with a monthly rent of $1,150.

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 December 31, 2012. In July 2013, the Company entered into an agreement with ARE LLC (Alexandria) to lease additional office spaces in our existing building under a separate lease agreement. The lease is from August 2013 through November 2014, and the gross rent is $ 4,800 per month. For the three months ended March 31, 2014, the Company incurred $65,605 of rent expense for the lease, which included leasing office management expenses.

On March 24, 2014, the Company entered into another commercial lease agreement with ARE LLC (Alexandria) for the Company’s laboratory space which extends the term of the existing lease with Fred Hutchison Research Center, which expires in November 2014, through November 30, 2016. The lease provides for monthly rent payments of $22,736 from December 2014 through November 2015 and $23,258 from December 2015 through November 2016. As of March 31, 2014, the Company incurred and recorded security deposits of $25,000.

The future minimum lease payments due subsequent to March 31, 2014 under all non-cancelable operating leases for the next five years are as follows:

As of December 31,	Amount
2014 (remainder of the year)	$	247,939
2015		276,805
2016		255,845
2017		-
2018		-
Thereafter		-
Total minimum lease payments	$	780,589

Affymetrix Purchase Commitment

In September 2013, the Company entered into an “OwnerChip Program Agreement” with Affymetrix, Inc, a manufacturer of GeneChip Systems, where Affymetrix has agreed to loan a GeneChip System 3000Dx v.2 (“instrument”) to us if we purchase and take delivery of a minimum thirty GeneChip Human Genme U133 Plus 2.0 (30-pack) arrays at $21,590 per 30 pack for the next three years for a total purchase obligation of $647,700 with a minimum purchase of ten 30-pack arrays per contract year. At the end of the three year contract, upon fulfillment of the purchase commitment, the instrument title and ownership transfer to Atossa at no additional cost. In addition to the GeneChip Human Genme, we must purchase a two year service contract for $51,600 to cover maintenance of the instrument during the contract period. We placed an initial order for four 30-pack arrays during 2013 for $94,723. We are obligated to purchase 26 additional arrays during the next three year contract term.

A5 Software Development Commitment

On June 10, 2013 the Company entered into an irrevocable license and service agreement with A5 Genetics KFT, Corporation, pursuant to which the Company received the world-wide (other than the European Union) exclusive license to the software used in the NextCYTE test. The Company has the right to prosecute patents related to this software, two of which the Company has filed in the United States. The patent applications have been assigned to us. The Company paid a one-time fee of $100,000 to A5 Genetics in 2013 and in March 2014 the Company completed software validation and paid an additional $100,000 to A5 Genetics. The Company is obligated to pay up to an additional $1.2 million to A5 Genetics upon the achievement of future milestones. The Company must also pay a royalty of $50 for each NextCYTE Test performed and $65 as a service fee for each NextCYTE Test performed. The agreement terminates on the later of the ten year anniversary of the agreement or the expiration of the latest to expire patent covering the software.

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 LLC) and the Company that was entered into in July 2010 in connection with his resignation from the Company as President and a director. 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.

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 in July 2010 in connection with his resignation from the Company as President and a director. The specific amount of damages sought is to be proven at trial and is not specified. On July 8, 2013, the court granted the Company’s motion to compel arbitration of these claims and therefore this action was stayed pending resolution of the arbitration of the claims; however, Mr. Kelly has not initiated arbitration of those claims.

On February 26, 2013, Mr. Victor Cononi filed a complaint in the United States District Court, Western Division of Washington seeking compensatory damages, interest and attorneys’ fees related to the rescission of shares issued to him in July 2010 in connection with Mr. Kelly’s resignation from the Company as President and a director. Mr. Cononi is the father of Mr. Kelly’s paramour. The specific amount of damages sought is to be proven at trial and is not specified. In August 2013, the court granted the Company’s motion to compel arbitration of these claims and therefore this action was stayed pending resolution of the arbitration of the claims; however, Mr. Cononi has not initiated arbitration of those claims.

A hearing in the arbitration has been held in abeyance to accommodate other third party civil and federal criminal proceedings alleging securities and wire fraud that have been brought against Mr. Kelly with respect to his prior employment and predating his service with the Company. On March 11, 2014 a press release was issued by the FBI stating that Mr. Kelly had pled guilty in Manhattan federal court to securities and wire fraud charges related to his employment as CEO of Wwebnet. Mr. Kelly also agreed to forfeit $2,111,600 and, separately, pay $2,111,600 in restitution. The sentencing hearing is scheduled for July 17, 2014.

The Company is reasonably confident in its defenses to Mr. Kelly’s and Mr. Cononi’s claims. Consequently, no provision or liability has been recorded for these claims as of March 31, 2014. 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.

On October 10, 2013, a putative securities class action complaint, captioned Cook v. Atossa Genetics, Inc., et al., No. 2:13-cv-01836-RSM, was filed in the United States District Court for the Western District of Washington against us, certain of our directors and officers and the underwriters of our November 2012 initial public offering. The complaint alleges that all defendants violated Sections 11 and 12(a)(2), and that we and certain of our directors and officers violated Section 15, of the Securities Act by making material false and misleading statements and omissions in the offering’s registration statement, and that we and certain of our directors and officers violated Sections 10(b) and 20A of the Exchange Act and SEC Rule 10b-5 promulgated thereunder by making false and misleading statements and omissions in the registration statement and in certain of our subsequent press releases and SEC filings with respect to our NAF specimen collection process, our ForeCYTE Breast Health Test and our MASCT device. This action seeks, on behalf of persons who purchased our common stock between November 8, 2012 and October 4, 2013, inclusive, damages of an unspecific amount.

On February 14, 2014, the Court appointed plaintiffs Miko Levi, Bandar Almosa and Gregory Harrison (collectively, the “Levi Group”) as lead plaintiffs, and approved their selection of co-lead counsel and liaison counsel. The Court also amended the caption of the case to read In re Atossa Genetics, Inc. Securities Litigation. No. 2:13-cv-01836-RSM. An amended complaint was filed on April 15, 2014.

We believe this lawsuit is without merit and plan to defend ourselves vigorously; however, failure by us to obtain a favorable resolution of the claims set forth in the complaint could have a material adverse effect on our business, results of operations and financial condition. Currently, the amount of such material adverse effect cannot be reasonably estimated, and no provision or liability has been recorded for these claims as of March 31, 2014. The costs associated with defending and resolving the lawsuit and ultimate outcome cannot be predicted. These matters are subject to inherent uncertainties and the actual cost, as well as the distraction from the conduct of our business, will depend upon many unknown factors and management’s view of these may change in the future.

FDA Warning Letter

On February 21, 2013, the Company received a Warning Letter (“Warning Letter”) from the FDA regarding its Mammary Aspirate Specimen Cytology Test (MASCT) System and MASCT System Collection Test (together, the “System”). The Warning Letter arises from certain FDA findings during a July 2012 inspection, to which the Company responded in August 2012, explaining why the Company believed it was in compliance with applicable regulations and/or was implementing changes responsive to the findings of the FDA inspection. The FDA alleges in the Warning Letter that following 510(k) clearance of the MASCT System, the Company changed the System in a manner that requires submission of an additional 510(k) notification to the FDA. Specifically, the FDA stated that the Instructions For Use (IFU) in the original 510(k) submission stated that the user must “Wash the collection membrane with fixative solution into the collection vial…” while the current IFU states “…apply one spray of Saccomanno’s Fixative to the collection membrane…” and that “this change fixes the NAF specimen to the filter paper rather than washing it into a collection vial.” At the time that the changes were made the Company determined and documented that the change could not significantly affect the safety or effectiveness of the MASCT System, and thus, that a new 510(k) was not required in accordance with the FDA’s guidance document entitled, “Deciding When to Submit a 510(k) for a Change to an Existing Device.” The Warning Letter also identified certain issues with respect to the Company’s marketing of the System and the Company’s compliance with FDA Good Manufacturing Practices (cGMP) regulations, among other matters. The Company responded to the Warning Letter on March 13, 2013, and identified the corrective actions that had been made, or were otherwise underway The Company also filed a new 510(k) application for the MASCT System which was withdrawn in August 2013 after receiving feedback from the FDA.

On October 4, 2013, the Company initiated a voluntary recall of the system to address FDA’s concerns regarding the modifications identified in the Warning Letter. As a result of this recall, this product is currently not being marketed or distributed in the U.S. The Company submitted a new premarket notification or 510(k) application for submission to the FDA on December 23, 2013 that covers the collection, preparation, and processing of NAF specimens at our laboratory and includes the spray method of fixing specimens to the collection membrane. We received a request from the FDA on February 28, 2014 to submit additional information in support of the application. We have until August 20, 2014 to respond to the FDA. We cannot market or distribute the ForeCYTE Breast Aspirator within United States until we receive clearance for this device form FDA.

On March 14, 2014, the FDA completed a follow up inspection at our Seattle facility. A Form 483 was provided to us at the conclusion of the inspection. In the FDA's most recent Form 483, five inspectional observations were identified regarding our quality management system. The FDA inspector also orally identified five additional discussion points related to our product labeling prior to the recall of the MASCT System; sufficiency of the content of our pending 510(k) submission for the ForeCYTE Breast Aspirator; and other compliance issues. On March 26, 2014, we submitted a response to the FDA, which included our proposed corrective actions to address the FDA's observations and discussion points. Whether the FDA will accept our response is uncertain, particularly in light of the similar nature of certain of the current inspectional observations to previous inspectional observations. If the FDA does not agree with our proposed corrective actions, or accepts them but finds that we have not implemented them adequately, or if we otherwise are found to be out of compliance with applicable regulatory requirements at a later date, the FDA could initiate an enforcement action including additional warning letters, fines and penalties. The FDA also may not clear our pending 510(k) for the ForeCYTE Breast Aspirator or our other devices and services under development. Any of the foregoing would have a material adverse effect on our business.

As of March 31, 2014, the Company has $96,201 in contingent liability and has incurred $339,042 in actual expenses related to the costs of the recall, including the estimated costs of pursuing the additional 510(k) clearance. The recall and 510(k) process may take longer than expected and we may incur costs that we have not anticipated. Accordingly, the actual amount of the loss contingency may be higher than we currently expect.

STOCK BASED COMPENSATION

3 Months Ended

Mar. 31, 2014

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

NOTE 12: STOCK BASED COMPENSATION

In accordance with the guidance provided in ASC Topic 718, Stock Compensation (formerly SFAS 123R), the compensation costs associated with the 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 $230,181 and $274,511 for the three months ended March 31, 2014 and 2013, 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:

Year Ended December 2013	Employees		Employees & Officers		Directors		CEO & CSO
Date of Grant	January - December 2013		January - June 2013		May & October 2013		March 2013

Fair value of common stock on date of grant (A)	$2.05 - $5.19		$4.11 - $4.58		$2.04 - $6.59		$	6.57
Exercise price of the options	$2.05 - $5.19		$4.11 - $4.58		$2.04 - $6.59		$	6.57
Expected life of the options (years)	6.09 - 6.11		5.00 – 6.11		5.00 – 5.31			5.00
Dividend yield	0.00	%	0.00	%	0.00	%		0.00	%
Expected volatility	40.73 – 41.81	%	40.96 - 41.05	%	41.06-41.53	%		47.09	%

Risk-free interest rate	1.73 -1.97	%	1.03-1.36	%	0.73 - 1.49	%		1.13	%
Expected forfeiture per year (%)	10.00	%	10.00	%	10.00	%		0.00	%
Weighted average fair value of the options per unit	$0.878 - $2.18		$1.69 - $1.89		$0.790 - $2.49		$	2.70

Three Months Ended March 2014	Employees			Officers			Directors
Date of Grant	January 8, 2014			January 8, 2014			March 1, 2014

Fair value of common stock on date of grant(A)	$	2.20		$	2.20		$	2.20
Exercise price of the options	$	2.20		$	2.20		$	2.20
Expected life of the options (years)		6.06			6.06			5.09
Dividend yield		0.00	%		0.00	%		0.00	%
Expected volatility		41.70- 41.72	%		41.70	%		38.68	%

Risk-free interest rate		2.11	%		2.11	%		1.53	%
Expected forfeiture per year (%)		10.00	%		10.00	%		10.00	%
Weighted average fair value of the options per unit	$	0.95		$	0.95		$	0.80

(A)

The fair values of the Company's common stock were derived from the closing prices on the NASDAQ Capital Market as of the dates of grant.

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

(1)

Level 1 inputs include:

Stock price- The fair values of the Company's common stock were derived from the closing prices on the NASDAQ Capital Market as of the dates of grant.

(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 five to 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.

Options issued and outstanding as of March 31, 2014 and their activities during the three months then ended are as follows:

	Number of Underlying		Weighted- Average Exercise Price Per		Weighted- Average Contractual Life Remaining in
	Shares		Share		Years		Aggregate Intrinsic Value
Outstanding as of January 1, 2014		2,282,719	$	4.43
Granted		311,669	$	2.20
Expired		-	$	-
Forfeited		(61,221)	$	4.70
Exercised		-	$	-
Outstanding as of March 31, 2014		2,533,167	$	4.15		7.86	$	107,800
Exercisable as of March 31, 2014		1,253,137	$	4.47		6.52	$	107,800
Vested and expected to vest (1)		2,355,778	$	4.18		7.76	$	107,800

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

Issuance of Restricted Common Stock for Director’s Compensation

On October 10, 2013, the Company issued 24,510 shares of restricted stock with a grant date value of $50,000 or $2.04 per share to a new board member. The restriction will be removed as the shares vest quarterly for a proportional number of granted shares over the first year of service on the board, and the grant date value of such shares will be expensed in the quarter the restriction is removed.

On March 1, 2014, the Company agreed to issue 22,728 shares of restricted stock with a grant date value of $50,000 or $2.20 per share to a new board member; however these shares have not been issued as of March 31, 2014. The restriction will be removed as shares vest quarterly for a proportional number of granted shares over the first year of service on the board, and the grant date value of such shares will be expensed in the quarter the restriction is removed.

For the three months ended March 31, 2014, $230,181 was recorded as stock compensation expenses, including $16,611 for restricted stock.

SUMMARY OF ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2014

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation:

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements:

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition:

Overview

Product Revenue

Service Revenue

Cost of Sales, Policy [Policy Text Block]

Cost of 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.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates:

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

Accounts Receivable:

Inventory, Policy [Policy Text Block]

Inventories:

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
Leasehold improvements		2.083

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

Intangible assets:

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

	Useful Life (in years)
Patents		9-14
Capitalized license costs		10
Software		3

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.

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

Share-Based Payments:

STOCKHOLDERS' EQUITY (Tables)

3 Months Ended

Mar. 31, 2014

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:

	Fair		April-June 2011			December 2011
	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:

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:

	Fair Value Hierarchy		September 2012
	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:

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.

Warrants 2014 and Placement Agent Warrants [Member]

Schedule of Fair Value of Warrants [Table Text Block]

The following tables reflect assumptions used to determine the fair value of the 2014 Warrants:

	Fair		January 29, 2014
	Value Hierarchy Level		2014 Investor Warrants			Placement Agent Warrants

Indexed shares				1,166,849			175,027
Exercise price			$	3.00		$	3.00

Significant assumptions:
Stock price		1	$	2.50		$	2.47
Remaining term		3		5 years			5 years
Risk free rate		2		1.45	%		1.42	%
Expected volatility		3		37.96	%		37.95	%

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

(1)

Level 1 inputs include:

Stock price- The Fair value of Company’s common was derived from the closing prices in NASDAQ Capital Market as of the issuance.

(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:

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 five 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.

PREPAID EXPENSES (Details) - USD ($)	Mar. 31, 2014	Dec. 31, 2013
Deferred Costs, Capitalized, Prepaid, and Other Assets [Line Items]
Prepaid stock purchase agreement service fee	$ 576,961	$ 651,961
Prepaid marketing educational programs	230,000	0
Prepaid hardware and software	31,551	131,204
Prepaid insurance	125,714	112,517
Retainer and security deposits	29,540	36,906
Other	24,000	0
Prepaid expense	$ 1,017,766	$ 932,588

STOCKHOLDERS' EQUITY (Details) - $ / shares

1 Months Ended

3 Months Ended

9 Months Ended

Dec. 31, 2011

Jun. 30, 2011

Sep. 30, 2012

Share Based Payment Award Stock Warrants Valuation Assumptions [Line Items]

325,000

Placement Agent1 [Member]

$ 5.00

Share Based Payment Award Stock Warrants Valuation Assumptions [Line Items]

788,520

Placement Agent2 [Member]

$ 1.60

Share Based Payment Award Stock Warrants Valuation Assumptions [Line Items]

788,520

Investor Warrants [Member]

$ 1.25

Share Based Payment Award Stock Warrants Valuation Assumptions [Line Items]

5,256,800

Fair Value, Inputs, Level 3 [Member]

$ 1.60

^[1]

$ 5.00

^[2]

5 years

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

^[3]

56.54%

^[4]

$ 0.906

^[2]

6 years

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

^[3]

54.21%

^[4]

$ 0.906

^[2]

6 years

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

^[3]

54.21%

^[4]

$ 0.906

^[2]

6 years

Fair Value, Inputs, Level 2 [Member]

^[3]

53.55%

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

^[5]

0.62%

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

^[5]

1.12%

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

^[5]

1.12%

Share Based Payment Award Stock Warrants Valuation Assumptions [Line Items]

^[5]

2.49%

[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 14).
[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 would 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]	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.
[5]	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

Indexed shares | shares

325,000

Fair Value, Inputs, Level 3 [Member]

$ 5.00

$ 5.00

^[1]

5 years

^[2]

Fair Value, Inputs, Level 2 [Member]

56.54%

^[3]

Share Based Payment Award Stock Warrants Valuation Assumptions [Line Items]

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 14).
[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 would 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 2) - $ / shares

1 Months Ended

9 Months Ended

Jan. 29, 2014

Sep. 30, 2012

325,000

Fair Value, Inputs, Level 3 [Member]

$ 5.00

^[1]

$ 5.00

^[2]

5 years

Placement Agent Warrants [Member]

^[3]

56.54%

Share Based Payment Award Stock Warrants Valuation Assumptions [Line Items]

175,027

Placement Agent Warrants [Member] | Fair Value, Inputs, Level 3 [Member]

$ 3.00

^[2]

5 years

Placement Agent Warrants [Member] | Fair Value, Inputs, Level 2 [Member]

^[4]

37.95%

Placement Agent Warrants [Member] | Fair Value, Inputs, Level 1 [Member]

^[5]

1.42%

Investor Warrants 2014 [Member]

^[6]

$ 2.47

Share Based Payment Award Stock Warrants Valuation Assumptions [Line Items]

1,166,849

Investor Warrants 2014 [Member] | Fair Value, Inputs, Level 3 [Member]

$ 3.00

^[2]

5 years

Investor Warrants 2014 [Member] | Fair Value, Inputs, Level 2 [Member]

^[4]

37.96%

Investor Warrants 2014 [Member] | Fair Value, Inputs, Level 1 [Member]

^[5]

1.45%

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

^[6]

$ 2.50

[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 14).
[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 would 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]	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 five 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.
[5]	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.
[6]	Stock price- The Fair value of Company’s common was derived from the closing prices in NASDAQ Capital Market as of the issuance.

STOCKHOLDERS' EQUITY (Details Textual)	1 Months Ended			3 Months Ended		9 Months Ended
STOCKHOLDERS' EQUITY (Details Textual)	Jan. 29, 2014 USD ($) $ / shares shares	Sep. 28, 2010 shares	Apr. 29, 2009 USD ($) $ / shares shares	Mar. 31, 2014 USD ($) $ / shares $ / Warrant shares	Jun. 30, 2011 USD ($) $ / shares shares	Sep. 30, 2012 USD ($) $ / shares shares	Dec. 31, 2013 USD ($) $ / shares shares	Dec. 31, 2012 shares	Dec. 31, 2011 USD ($) $ / shares shares
Stockholder's Equity [Line Items]
Total Shares Authorized				85,000,000
Common Stock, Shares Authorized				75,000,000			75,000,000
Common Stock, Par or Stated Value Per Share (in dollars per share) \| $ / shares				$ 0.001			$ 0.001
Preferred Stock, Shares Authorized				10,000,000			10,000,000
Preferred Stock, Par or Stated Value Per Share (in dollars per share) \| $ / shares				$ 0.001			$ 0.001
Stockholders' Equity, Reverse Stock Split		1-for-2.26332
Common Stock, Shares, Issued				24,428,568			18,574,334
Common Stock, Value, Issued \| $				$ 24,429			$ 18,574
Class of Warrant or Right, Number of Securities Called by Warrants or Rights				6,073,426
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross				311,669
Stock Option and Incentive Plan 2010 [Member]
Stockholder's Equity [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				897,617
Shares held in Employee Stock Option Plan, Suspense Shares		1,000,000		742,973			516,774	450,275
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross				334,397
Stock Issued During Period, Shares, Reverse Stock Splits		2,263,320
Stock Option and Incentive Plan 2010 [Member] \| Restricted Stock [Member]
Stockholder's Equity [Line Items]
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Grants In Period, Gross				22,728
2014 Public Offering [Member]
Stockholder's Equity [Line Items]
Class of Warrant or Right, Outstanding				1,166,849
Shares, Issued	5,834,234
Shares Issued, Price Per Share \| $ / shares	$ 2.40
Proceeds from Issuance Initial Public Offering \| $	$ 14,000,000
Stockholders Equity Note, Stock Split				Each unit consists of one share of common stock and a warrant to purchase 0.20 of a share of common stock (the 2014 Warrants).
Warrants Exercisable Per Share \| $ / shares				$ 3.00
Warrants Callable Per Share \| $ / shares				$ 6.00
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / Warrant				3.00
2011 Private Placement [Member]
Stockholder's Equity [Line Items]
Class of Warrant or Right, Outstanding				4,292,050
2013 Public Offering [Member]
Stockholder's Equity [Line Items]
Class of Warrant or Right, Outstanding				242,027
Acuiety Transaction [Member]
Stockholder's Equity [Line Items]
Class of Warrant or Right, Outstanding				325,000
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / Warrant				5.00
outside consulting firm [Member]
Stockholder's Equity [Line Items]
Class of Warrant or Right, Outstanding				47,500
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / Warrant				4.24
Warrant [Member]
Stockholder's Equity [Line Items]
Fair Value of Warrants (in dollars per warrant) \| $ / shares				$ 0.72
Initial Fair Value of Warrants \| $				$ 834,986
Private Placement [Member]
Stockholder's Equity [Line Items]
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
Initial Fair Value of Warrants \| $					$ 495,876
Securities Purchase Agreements, Investor Warrants [Member]
Stockholder's Equity [Line Items]
Sale of Stock, Number of Shares Issued in Transaction					5,256,800
Sale of Stock, Price Per Share \| $ / shares					$ 1.25
Proceeds from Issuance of Private Placement \| $					$ 6,571,000
Exercise Price of Common Stock \| $ / shares					$ 1.60
Fair Value of Warrants (in dollars per warrant) \| $ / shares					$ 0.34
Initial Fair Value of Warrants \| $					$ 1,808,025
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted					5,256,800
Placement Agent Additional Warrants [Member]
Stockholder's Equity [Line Items]
Fair Value of Warrants (in dollars per warrant) \| $ / shares									$ 0.29
Initial Fair Value of Warrants \| $									$ 228,712
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									788,520
Placement Agent Warrants [Member]
Stockholder's Equity [Line Items]
Exercise Price of Common Stock \| $ / shares									$ 1.25
Fair Value of Warrants (in dollars per warrant) \| $ / shares				$ 0.70					$ 0.34
Initial Fair Value of Warrants \| $				$ 121,707					$ 267,164
Class of Warrant or Right, Number of Securities Called by Warrants or Rights									788,520
Placement Agent2 [Member]
Stockholder's Equity [Line Items]
Exercise Price of Common Stock \| $ / shares									$ 1.25
Acueity Warrants [Member]
Stockholder's Equity [Line Items]
Stock Issued During Period, Shares, Acquisitions						862,500
Exercise Price of Common Stock \| $ / shares						$ 5.00
Fair Value of Warrants (in dollars per warrant) \| $ / shares						$ 2.35
Initial Fair Value of Warrants \| $						$ 762,353
Class of Warrant or Right, Number of Securities Called by Warrants or Rights						325,000
Chief Executive Officer [Member]
Stockholder's Equity [Line Items]
Common Stock, Shares, Issued			883,662
Common Stock, Value, Issued \| $			$ 12,000
Equity Issuance, Per Share Amount \| $ / shares			$ 0.014
Chief Executive Officer [Member] \| Prior to Reverse Share Split on September 28, 2010 [Member]
Stockholder's Equity [Line Items]
Common Stock, Shares, Issued			2,000,000
Equity Issuance, Per Share Amount \| $ / shares			$ 0.006
Placement Agent [Member]
Stockholder's Equity [Line Items]
Cash Fee Equals to Percentage of Gross Proceeds from Sale of Common Stock and Warrants				7.00%
Percentage of Non-Accountable Expense Allowance				3.00%
Fees and Commissions, Other \| $				$ 980,151
Exercise Price of Common Stock \| $ / shares				$ 3.00
Initial Fair Value of Warrants \| $				$ 121,707
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted				175,027
Minimum [Member] \| 2011 Private Placement [Member]
Stockholder's Equity [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / Warrant				1.25
Minimum [Member] \| 2013 Public Offering [Member]
Stockholder's Equity [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / Warrant				2.12
Maximum [Member] \| 2011 Private Placement [Member]
Stockholder's Equity [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / Warrant				1.60
Maximum [Member] \| 2013 Public Offering [Member]
Stockholder's Equity [Line Items]
Class of Warrant or Right, Exercise Price of Warrants or Rights \| $ / Warrant				12.43
Ensisheim Partners Llc [Member]
Stockholder's Equity [Line Items]
Common Stock, Shares, Issued			1,767,316
Common Stock, Value, Issued \| $			$ 24,000
Equity Issuance, Per Share Amount \| $ / shares			$ 0.014
Ensisheim Partners Llc [Member] \| Prior to Reverse Share Split on September 28, 2010 [Member]
Stockholder's Equity [Line Items]
Common Stock, Shares, Issued			4,000,000
Equity Issuance, Per Share Amount \| $ / shares			$ 0.006
Manistee Ventures Llc [Member]
Stockholder's Equity [Line Items]
Common Stock, Shares, Issued			1,325,487
Common Stock, Value, Issued \| $			$ 18,000
Equity Issuance, Per Share Amount \| $ / shares			$ 0.014
Manistee Ventures Llc [Member] \| Prior to Reverse Share Split on September 28, 2010 [Member]
Stockholder's Equity [Line Items]
Common Stock, Shares, Issued			3,000,000
Equity Issuance, Per Share Amount \| $ / shares			$ 0.006

COMMITMENTS AND CONTINGENCIES (Details)	Dec. 31, 2013 USD ($)
Operating Leased Assets [Line Items]
2014 (remainder of the year)	$ 247,939
2015	276,805
2016	255,845
2017	0
2018	0
Thereafter	0
Total minimum lease payments	$ 780,589

COMMITMENTS AND CONTINGENCIES (Details Textual) - USD ($)	1 Months Ended						3 Months Ended		9 Months Ended	12 Months Ended	59 Months Ended
	Mar. 24, 2014	Mar. 20, 2014	Jul. 31, 2013	Dec. 09, 2011	Jun. 30, 2011	Mar. 04, 2011	Mar. 31, 2014	Mar. 31, 2013	Sep. 30, 2013	Dec. 31, 2013	Mar. 31, 2014	Mar. 31, 2012
COMMITMENTS AND CONTINGENCIES [Line Items]
Security Deposit							$ 61,309			$ 36,446	$ 61,309
Loss Contingency, Accrual, Current							96,201			211,493	96,201
Recall expenses Actual							339,042				339,042
Cost of Services							0	$ 47,599			$ 141,509
A5 Genetics KFT [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Cost of Services, Licenses and Services										100,000
Additional License Fee Amount Paid							100,000
Additional License Fee Obligation To Pay For Future Milestones							1,200,000
Royalty Expense							50
Cost of Services							65
Affymetrix In [Member] \| OwnerChip Program Agreement [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Payments for Software									$ 21,590	$ 94,723
Purchase Obligation									647,700
Contract Receivable, Due in Rolling Year Two									$ 51,600
Robert Kelly [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Loss Contingency, Damages Sought, Value					$ 450,000
Agreed To Forfeit							2,111,600
Lease Agreement March 2011 [Member] \| Sanders Properties, Llc [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Monthly Lease Rent						$ 1,100
Security Deposit						$ 1,500
Lease Expiration Date, Descriptions						The lease terms are from April 1, 2011 through March 31, 2014.
Lease Agreement December 2011 [Member] \| Fred Hutchinson Research Center [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Security Deposit												$ 32,789
Lease Agreement December 2011 [Member] \| Fred Hutchinson Research Center [Member] \| Monthly Rent For Period From February 24, 2012 To August 31, 2012 [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Monthly Lease Rent				$ 16,395
Lease Expiration Date, Descriptions				period from February 24, 2012 to August 31, 2012
Lease Agreement December 2011 [Member] \| Fred Hutchinson Research Center [Member] \| Monthly Rent For Period From September 1, 2012 To August 31, 2013 [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Monthly Lease Rent				$ 19,923
Lease Expiration Date, Descriptions				period from September 1, 2012 to August 31, 2013
Lease Agreement December 2011 [Member] \| Fred Hutchinson Research Center [Member] \| Monthly Rent For Period From September 1, 2013 To November 29, 2014 [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Monthly Lease Rent				$ 20,548
Lease Expiration Date, Descriptions				period from September 1, 2013 to November 29, 2014
Lease Agreement December 2011 [Member] \| ARE LLC [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Monthly Lease Rent			$ 4,800
Operating Leases, Rent Expense							$ 65,605
Lease Expiration Date, Descriptions			The lease is from August 2013 through November 2014
Lease Agreement March 2014 [Member] \| Sanders Properties, Llc [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Monthly Lease Rent		$ 1,150
Lease Expiration Date, Descriptions		lease through March 31, 2015
Lease Agreement March 2014 [Member] \| ARE LLC [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Security Deposit	$ 25,000
Lease Expiration Date, Descriptions	November 2014, through November 30, 2016
Lease Agreement March 2014 [Member] \| ARE LLC [Member] \| Monthly Rent From December 2014 Through November 2015 [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Monthly Lease Rent	$ 22,736
Lease Expiration Date, Descriptions	from December 2014 through November 2015
Lease Agreement March 2014 [Member] \| ARE LLC [Member] \| Monthly Rent From December 2015 Through November 2016 [Member]
COMMITMENTS AND CONTINGENCIES [Line Items]
Monthly Lease Rent	$ 23,258
Lease Expiration Date, Descriptions	from December 2015 through November 2016

STOCK BASED COMPENSATION (Details) - $ / shares

3 Months Ended

12 Months Ended

Mar. 31, 2014

Dec. 31, 2013

Sep. 30, 2012

Employees [Member] | Stock Option [Member]

$ 5.00

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

Jan. 08, 2014

Date of grant start

Jan. 01, 2013

Date of grant end

Dec. 31, 2013

^[1]

$ 2.20

$ 2.20

6 years 22 days

0.00%

2.11%

Weighted-average fair value of the options (per unit)

10.00%

0.95

Employees [Member] | Stock Option [Member] | Minimum [Member]

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

^[1]

$ 2.05

$ 2.05

6 years 1 month 2 days

41.70%

40.73%

Weighted-average fair value of the options (per unit)

1.73%

0.878

Employees [Member] | Stock Option [Member] | Maximum [Member]

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

^[1]

$ 5.19

$ 5.19

6 years 1 month 10 days

41.72%

41.81%

Weighted-average fair value of the options (per unit)

1.97%

2.18

Employees and Officers [Member] | Stock Option [Member]

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

Date of grant start

Jan. 01, 2013

Date of grant end

Jun. 30, 2013

0.00%

Employees and Officers [Member] | Stock Option [Member] | Minimum [Member]

10.00%

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

^[1]

$ 4.11

$ 4.11

5 years

40.96%

Weighted-average fair value of the options (per unit)

1.03%

1.69

Employees and Officers [Member] | Stock Option [Member] | Maximum [Member]

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

^[1]

$ 4.58

$ 4.58

6 years 1 month 10 days

41.05%

Weighted-average fair value of the options (per unit)

1.36%

1.89

Officers [Member] | Stock Option [Member]

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

Jan. 08, 2014

^[1]

$ 2.20

$ 2.20

6 years 22 days

0.00%

41.70%

2.11%

Weighted-average fair value of the options (per unit)

10.00%

0.95

Directors [Member] | Stock Option [Member]

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

Mar. 01, 2014

Date of grant start

May 31, 2013

Date of grant end

Oct. 31, 2013

^[1]

$ 2.20

$ 2.20

5 years 1 month 2 days

0.00%

38.68%

1.53%

Weighted-average fair value of the options (per unit)

10.00%

0.80

Directors [Member] | Stock Option [Member] | Minimum [Member]

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

^[1]

$ 2.04

$ 2.04

5 years

41.06%

Weighted-average fair value of the options (per unit)

0.73%

0.790

Directors [Member] | Stock Option [Member] | Maximum [Member]

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

^[1]

$ 6.59

$ 6.59

5 years 3 months 22 days

41.53%

Weighted-average fair value of the options (per unit)

1.49%

2.49

Chief Executive Officer and Chief Scientific Officer [Member] | Stock Option [Member]

Share Based Payment Award Stock Options Valuation Assumption [Line Items]

Mar. 31, 2013

^[1]

$ 6.57

$ 6.57

5 years

0.00%

47.09%

1.13%