INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The following is a summary of the components giving rise to the income tax provision (benefit) for the years ended December 31, 2015, 2014 and 2013.

	2015		2014		2013
Current:
Federal	$	-	$	-	$	-
State		-		-		-
Total current		-		-		-
Deferred:
Federal		(3,372,964)		(3,494,787)		829,306
State		(155,352)		160,319		186,414
Total deferred		(3,528,316)		(3,334,468)		1,015,720
Change in valuation allowance		3,528,316		3,334,468		(1,015,720)
	$	-	$	-	$	-

Schedule of Effective Income Tax Rate Reconciliation

The provision (benefit) for income tax varies from that which would be expected based on applying the statutory federal rate to pre-tax accounting loss as follows:

	2015			2014			2013
Statutory federal rate		(34.0)	%		(34.0)	%		(34.0)	%
Other items		0.0			0.6			1.9
Derivative liability		(0.5)			8.4			35.5
Stock based compensation		3.1			2.5			-
State tax provision, net of federal benefit		(0.9)			1.1			0.5
Valuation allowance		32.3			21.4			(3.9)
Effective tax rate (benefit) provision		0.0	%		0.0	%		0.0	%

Schedule of Deferred Tax Assets and Liabilities

Individual components of deferred taxes consist of the following as of December 31,:

	2015		2014		2013
Deferred tax assets:
Net operating loss carry-forward	$	7,745,734	$	4,775,536	$	2,616,624
Derivative liability		-		-		21,725
Accounts receivable reserve		3,499		-		-
Inventory reserve		38,707		17,713		19,584
Stock-based compensation		1,599,916		809,319		131,450
Start-up expenditures		514,680		388,130		-
Loss on equity investment		68,877		35,398		-
Severance liability		147,070		218,450		-
Other		9,272		6,561		1,292
		10,127,755		6,251,107		2,790,675
Deferred tax liabilities:
Inventory		-		-		(52,445)
Fixed assets		(227,186)		(80,251)		(2,956)
Patents and trademarks		(767,044)		(624,010)		(523,157)
Other intangible assets		(80,349)		(21,986)		-
		(1,074,579)		(726,247)		(578,558)
Valuation allowance		(9,053,176)		(5,524,860)		(2,212,117)
Net deferred taxes	$	-	$	-	$	-