INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2017

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, 2017, 2016 and 2015:

	2017		2016		2015
Current:
Federal	$	-	$	-	$	-
State		-		-		-
Total current		-		-		-
Deferred:
Federal		1,263,677		(2,424,497)		(3,372,964)
State		214,628		21,452		(155,352)
Total deferred		1,478,305		(2,403,045)		(3,528,316)
Change in valuation allowance		(1,478,305)		2,403,045		3,528,316
	$	-	$	-	$	-

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, including the effect of the change in the U.S. corporate income tax rates, as follows:

	2017			2016			2015
Statutory federal rate		(34.0)	%		(34.0)	%		(34.0)	%
Other items		(2.4)			(0.2)			0.0
Derivative liability		0.4			11.9			(0.5)
Stock based compensation		2.0			1.5			3.1
Research and development credit carryforward		(1.8)			-			-
State tax provision, net of federal benefit		1.1			0.1			(0.9)
Federal tax rate change		46.1			-			-
Valuation allowance		(11.4)			20.7			32.3
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:

	2017		2016		2015
Deferred tax assets:
Net operating loss carry-forward	$	9,917,641	$	11,626,143	$	7,745,734
Accounts receivable reserve		-		3,499		3,499
Inventory		48,011		96,934		38,707
Stock-based compensation		388,925		282,850		1,599,916
Start-up expenditures		279,709		477,917		514,680
Research and development credit carryforward		232,198		-		-
Loss on equity investment		11,760		139,676		68,877
Severance liability		-		69,860		147,070
Other		4,272		21,423		9,272
		10,882,516		12,718,302		10,127,755
Deferred tax liabilities:
Machinery and equipment		(220,888)		(316,232)		(227,186)
Patents and trademarks		(558,760)		(807,137)		(767,044)
Other intangible assets		(124,953)		(138,713)		(80,349)
		(904,601)		(1,262,082)		(1,074,579)
Valuation allowance		(9,977,915)		(11,456,220)		(9,053,176)
Net deferred taxes	$	-	$	-	$	-