INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2014

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 years ended December 31, 2014 and 2013 are summarized below:

	December 31,			December 31,
	2014			2,013
Current:
Federal	$	-	$	-
State		2,430		3,650
Total current		2,430		3,650

Deferred:
Federal		(846,000)		3215000
State		(424,000)		(174,000)
Change in valuation allowance		1,270,000		(3,041,000)
Total deferred		-		-
Income tax provision (benefit)	$	2,430	$	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,			December 31,
	2014			2,013
U.S. federal statutory tax rate		34.00	%	34.00	%
State tax benefit, net		(0.04)	%	(0.21)	%
Gain on stock price guarantee		-	%	13.38	%
Other		(0.24)	%	(0.01)	%
Valuation allowance		(33.92)	%	(47.48)	%
Effective income tax rate		(0.20)	%	(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,
	2014		2013
Deferred tax assets:
NOL's	$	16,311,000	$	17,728,000
State taxes		(435,000)		(49,000)
Inventory and other reserves		194,000		22,000
Depreciation and amortization		1,000		(4,000)
Change in value of stock		238,000		-
NQ stock option expense		674,000		556,000
Total deferred tax assets		16,983,000		18,253,000
Valuation allowance		(16,983,000)		(18,253,000)
Net deferred tax assets	$	-	$	-