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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2019
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
Disaggregation of Revenue
The following tables disaggregate Total Revenues.
 
  For the three months ended June 30, 2019  For the three months ended June 30, 2018
 
  
Exchange
Transactions
  
Non-Exchange
Transactions
  Total
  
Exchange
Transactions
  
Non-Exchange
Transactions
  
Total
 
Net product sales $
8,488,291
  $
-
  $
8,488,291
  $6,857,861  
$
-
  $6,857,861 
License and royalty revenue  248,831
   
-
   248,831
   276,526   
-
   276,526 
R&D and grant revenue  619,139
   
235,125
   854,264
   755,570   830,369   1,585,939 
  $
9,356,261
  $
235,125
  $
9,591,386
  $7,888,957  $830,369  $8,720,326 
                         
          Total          Total
 
Africa         $
2,342,740
          $
2,226,540
 
Asia          
119,548
           22,348
 
Europe & Middle East
          
1,107,558
           1,213,548
 
Latin America
          
4,612,904
           3,266,290
 
United States
          
1,408,636
           
1,991,600
 
          $9,591,386
          $
8,720,326
 

  For the six months ended June 30, 2019  For the six months ended June 30, 2018
 
  
Exchange
Transactions
  
Non-Exchange
Transactions
  Total
  Exchange 
Transactions
  
Non-Exchange
Transactions
  
Total
 
Net product sales $
14,871,277
  $
-
  $
14,871,277
  $13,256,088  
$
-
  $13,256,088 
License and royalty revenue  465,022
   
-
   465,022
   478,457   
-
   478,457 
R&D and grant revenue  1,392,204
   
1,163,849
   2,556,053
   1,367,375   1,335,538   2,702,913 
  $
16,728,503
  $
1,163,849
  $
17,892,352
  $15,101,920  $1,335,538  $16,437,458 
                         
          Total          Total
 
Africa         $
4,759,040
          $
3,865,070
 
Asia          
240,646
           989,922
 
Europe & Middle East
          
3,250,779
           2,197,424
 
Latin America
          
5,684,970
           5,956,183
 
United States
          
3,956,917
           
3,428,859
 
          $17,892,352
          $
16,437,458
 
Inventories
Inventories consist of the following at:

  
June 30, 2019
  
December 31, 2018
 
Raw materials
 $2,834,559
  
$
2,803,677
 
Work in process
  1,556,944
   
263,043
 
Finished goods
  4,679,173
   
4,784,502
 
  $9,070,676
  
$
7,851,222
 
Stock-Based Compensation Expense
Stock-based compensation expense recognized in the condensed consolidated statements of operations was classified as follows:
 
 
 
For the three months ended
  
For the six months ended
 

 June 30, 2019  June 30, 2018  June 30, 2019  June 30, 2018 
Cost of product sales
 
$
 2,300  
$
5,800
  
$
5,800
  
$
14,000
 
Research and development expenses
  56,300
   
3,600
   116,100
   
15,500
 
Selling, general and administrative expenses
   318,300   
117,700
    602,500   
194,800
 
 
 
$
 376,900  
$
127,100
  
$
 724,400  
$
224,300
 
Assumptions Made in Calculating Fair Values of Options
The weighted-average assumptions made in calculating the fair values of options are as follows:

  
For the three months ended
  
For the six months ended
 
  
June 30, 2019
  
June 30, 2018
  
June 30, 2019
  
June 30, 2018
 
Expected term (in years)
  N/A
   5.4   N/A
   
5.4
 
Expected volatility
   N/A  40.12%
   N/A  
40.12
%
Expected dividend yield
  N/A
  0%
  N/A
  
0
%
Risk-free interest rate
   N/A  2.70%
  N/A
  
2.70
%
Stock Option Activity
The following table provides stock option activity for the six months ended June 30, 2019:

Stock Options
 
Number of
Shares
  
Weighted
Average
Exercise Price
per Share
 
Weighted
Average
Remaining
Contract
Term
 
Aggregate
Intrinsic
Value
 
Outstanding at December 31, 2018
  
711,968
  
$
5.62
 
3.33 years
 
$
687,364
 
              
Granted
  
-
   
-
    
-
 
Exercised
  
46,875
   
3.48
   

172,242
 
Forfeited/expired/cancelled
  15,000   5.68    30,286 
Outstanding at June 30, 2019
  650,093  
$
5.77 
3.04 years
 
$
719,362 
Exercisable at June 30, 2019
  429,009  
$
4.82 
2.37 years
 
$
703,769
 
Stock Options Outstanding
The following table summarizes information about stock options outstanding at June 30, 2019:

  
Stock Options Outstanding
  
Stock Options Exercisable
 
Range of
Exercise
Prices
 Number of Shares
  
Average
Remaining
Contract Term
(Year)
  
Weighted
Average
Exercise
Price
  
Aggregate
Intrinsic
Value
  
Number of Shares
  
Weighted
Average
Exercise
Price
  
Aggregate
Intrinsic
Value
 
1 to 2.79999
  
-
   
-
  
$
-
  
$
-
   
-
  
$
-
  
$
-
 
2.8 to 4.59999
  257,468
   1.67
   3.44
   681,419
   257,468
   3.44
   681,419
 
4.6 to 6.39999
  137,875
   2.95
   5.87
   37,943
   77,750
   5.87
   
22,350
 
6.4 to 8.19999
  207,875
   4.56
   7.31
   
-
   84,416
   7.32
   
-
 
8.2 to 12
  46,875
   4.11
   11.45
   
-
   9,375
   11.45
   
-
 
 Total
  650,093
   3.04
  
$
5.77
  
$
719,362
   429,009
  
$
4.82
  
$
703,769
 
Summary of Restricted Stock and Restricted Stock Units Outstanding
The following table summarizes information about restricted stock and restricted stock units outstanding as of June 30, 2019:

  
Number of
Shares & Units
  
Weighted
Average
Grant Date
Fair Value
 
Outstanding at December 31, 2018
  
287,564
  
$
9.65
 
         
Granted
  375,000   5.80 
Earned/released
   -    - 
Forfeited/expired/cancelled
   -    - 
Outstanding at June 30, 2019
  
662,564
  $
7.47
 
Net Product Sales by Geographic Area
Net product sales by geographic area were as follows:

  
For the three months ended
  
For the six months ended
 
  
June 30, 2019
  
June 30, 2018
  
June 30, 2019
  
June 30, 2018
 
Africa
 
$
2,342,740
  
$
2,226,540
  $4,759,040
  $3,865,070 
Asia
  
119,548
   
22,348
    240,646    989,922 
Europe & Middle East
  
741,641
   
635,579
    1,919,666   1,027,649 
Latin America
  
4,612,904
   
3,266,290
   5,684,970
     5,956,183 
United States
  
671,458
   
707,104
    2,266,955   1,417,264 
  
$
8,488,291
  
$
6,857,861
  $14,871,277
  $13,256,088 
Long-lived Assets by Geographic Area
Long-lived assets by geographic area were as follows at:

  
June 30, 2019
  
December 31, 2018
 
Asia
  459,978   466,185 
Europe & Middle East
  169,147   123,752 
United States
  2,888,576   2,283,983 
  $3,517,701  $2,873,920 
Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consisted of:

  
June 30, 2019
  
December 31, 2018
 
Accounts payable – suppliers
 
$
3,292,605
  
$
3,622,765
 
Accrued commissions and royalties
  
715,177
   
867,344
 
Accrued payroll
  
352,689
   
48,867
 
Accrued vacation
  
606,110
   
264,789
 
Accrued bonuses
  
314,565
   
494,318
 
Accrued expenses – other
  
36,663
   
590,598
 
TOTAL
 
$
5,317,809
  
$
5,888,681
 
Changes in Goodwill
Following is a table that reflects changes in goodwill:

Beginning balance December 31, 2018
 
$
4,983,127
 
opTricon measurement period adjustment  (145,760)
Change in foreign currency exchange rate
  (14,954)
Balance at June 30, 2019
 
$
4,822,413 
Intangible Assets
Intangible assets consisted of the following at:

 June 30, 2019
  December 31, 2018 

Weighted
Average
Useful Life
 
Cost
  
Accumulated
Amortization
  
Net Book
Value
  
Cost
  
Accumulated
Amortization
  
Net Book
Value
 
Intellectual property
10 $1,161,984  $232,157  $929,827  
$
1,089,688
  $173,633  $916,055 
Developed technology
7  1,890,261   154,128   1,736,133    1,910,315    -    1,910,315 
Customer contracts/relationships
8
  1,174,664   240,159
   934,505
   1,121,600   151,929   969,671 
Trade names
9
  108,521   24,842
   83,679
   
108,521
   19,731   88,790 
   $4,335,430  $651,286
  $3,684,144  
$
4,230,124
  $345,293  $3,884,831