INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2013

Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block]

The Company is subject to taxation in the United States, Massachusetts and New Jersey. The provision for income taxes for the year ended December 31, 2013 are summarized below:

	December 31,
	2013
Current:
Federal	$	-
State		3,650
Total current		3,650

Deferred:
Federal		3,215,000
State		(174,000)
Change in valuation allowance		(3,041,000)
Total deferred		-
Income tax provision (benefit)	$	3,650

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

A reconciliation of income taxes computed by applying the statutory U.S. income tax rate to the Company’s loss before income taxes to the income provision is as follows:

	December 31,
	2013
U.S. federal statutory tax rate	34.00	%
State tax benefit, net	(0.21)	%
Gain on stock price guarantee	13.38	%
Other	(0.01)	%
Valuation allowance	(47.48)	%
Effective income tax rate	(0.32)	%

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Deferred tax assets and liabilities reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets are as follows:

	December 31,		December 31,
	2013		2012
Deferred tax assets:
NOL's	$	17,728,000	$	15,212,000
State taxes		(49,000)		-
Inventory and other reserves		22,000		-
Depreciation and amortization		(4,000)		-
NQ stock option expense		556,000		-
Total deferred tax assets		18,253,000		15,212,000
Valuation allowance		(18,253,000)		(15,212,000)
Net deferred tax assets	$	-	$	-