10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

[X] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2017

or

[  ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from _____________ to _____________

Commission File Number 000-21615

PRESSURE BIOSCIENCES, INC.

(Exact name of registrant as specified in its charter)

Massachusetts	04-2652826
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
14 Norfolk Avenue
South Easton, Massachusetts	02375
(Address of principal executive offices)	(Zip Code)

(508) 230-1828

(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

[X] Yes [  ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

[X] Yes [  ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [  ]	Accelerated filer [  ]	Non-accelerated filer [  ]	Smaller reporting company [X]	Emerging growth company [  ]
		(Do not check if a smaller reporting company)

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Exchange Act Rule 12b-2 of the Exchange Act.

[  ] Yes [X] No

The number of shares outstanding of the Issuer’s common stock as of August 11, 2017 was 1,101,884.

TABLE OF CONTENTS

	Page
PART I - FINANCIAL INFORMATION	3
Item 1. Financial Statements	3
Consolidated Balance Sheets as of June 30, 2017 (Unaudited) and December 31, 2016	3
Consolidated Statements of Operations for the Three Months and Six Months Ended June 30, 2017 and 2016 (Unaudited)	4
Consolidated Statements of Comprehensive Loss for the Three Months and Six Months Ended June 30, 2017 and 2016 (Unaudited)	5
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2017 and 2016 (Unaudited)	6
Notes to Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 3. Quantitative and Qualitative Disclosure About Market Risk	30
Item 4. Controls and Procedures	30
PART II - OTHER INFORMATION	31
Item 1. Legal Proceedings	31
Item 1A. Risk Factors	31
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 3. Defaults Upon Senior Securities	31
Item 4. Mine Safety Disclosures	31
Item 5. Other Information	31
Item 6. Exhibits	32
SIGNATURES	33

 2

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	June 30, 2017			December 31, 2016
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	201,333		$	138,363
Accounts receivable, net of $28,169 reserve at June 30, 2017 and December 31, 2016		564,048			281,320
Inventories, net of $20,000 reserve at June 30, 2017 and December 31, 2016		1,131,488			905,284
Prepaid income taxes		7,405			7,405
Prepaid expenses and other current assets		175,910			258,103
Total current assets		2,080,184			1,590,475
Investment in available-for-sale equity securities		25,986			25,865
Property and equipment, net		21,314			9,413
TOTAL ASSETS	$	2,127,484		$	1,625,753
LIABILITIES AND STOCKHOLDERS’ DEFICIT
CURRENT LIABILITIES
Accounts payable	$	746,087		$	407,249
Accrued employee compensation		337,480			249,596
Accrued professional fees and other		1,354,615			956,884
Deferred revenue		180,397			159,654
Revolving note payable, net of unamortized debt discounts of $909,017 and $637,030, respectively		2,090,983			612,970
Related party convertible debt, net of debt discount of $99,065 and $0, respectively		192,069			-
Convertible debt, net of unamortized debt discounts of $1,037,619 and $2,235,839, respectively		5,633,751			4,005,702
Other debt, net of unamortized discounts of $111,771 and $380, respectively		1,769,376			238,157
Warrant derivative liability		1,950,681			1,685,108
Conversion option liability		907,386			951,059
Total current liabilities		15,162,825			9,266,379
LONG TERM LIABILITIES
Related party convertible debt, net of debt discount of $0 and $165,611, respectively		-			125,523
Convertible debt, net of debt discount of $0 and $740,628, respectively		-			529,742
Deferred revenue		71,499			87,527
TOTAL LIABILITIES		15,234,324			10,009,171
COMMITMENTS AND CONTINGENCIES (Note 5)
STOCKHOLDERS’ DEFICIT
Series D Convertible Preferred Stock, $.01 par value; 850 shares authorized; 300 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively (Liquidation value of $300,000)		3			3
Series G Convertible Preferred Stock, $.01 par value; 240,000 shares authorized; 86,570 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively		866			866
Series H Convertible Preferred Stock, $.01 par value; 10,000 shares authorized; 10,000 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively		100			100
Series H2 Convertible Preferred Stock, $.01 par value; 21 shares authorized; 21 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively		-			-
Series J Convertible Preferred Stock, $.01 par value; 6,250 shares authorized; 3,521 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively		35			35
Series K Convertible Preferred Stock, $.01 par value; 15,000 shares authorized; 6,816 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively		68			68
Common stock, $.01 par value; 100,000,000 shares authorized; 1,101,884 and 1,033,328 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively		11,019			10,333
Warrants to acquire common stock		7,082,460			6,325,102
Additional paid-in capital		28,234,884			27,544,265
Accumulated other comprehensive income		6,190			-
Accumulated deficit		(48,442,465	)		(42,264,190	)
Total stockholders’ deficit		(13,106,840	)		(8,383,418	)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	2,127,484		$	1,625,753

The accompanying notes are an integral part of these unaudited consolidated financial statements

 3

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2017			2016			2017			2016
Revenue:
Products, services, other	$	480,400		$	474,187		$	1,006,398		$	928,538
Grant revenue		59,972			36,776			85,331			92,904
Total revenue		540,372			510,963			1,091,729			1,021,442
Costs and expenses:
Cost of products and services		287,299			243,105			523,296			464,804
Research and development		241,783			321,428			505,239			656,698
Selling and marketing		300,111			193,885			513,120			385,121
General and administrative		915,470			813,242			1,753,468			1,621,460
Total operating costs and expenses		1,744,663			1,571,660			3,295,123			3,128,083
Operating loss		(1,204,291	)		(1,060,697	)		(2,203,394	)		(2,106,641	)
Other (expense) income:
Interest expense, net		(1,983,112	)		(1,010,236	)		(3,509,744	)		(1,845,380	)
Other expense		(80	)		-			(1,039	)		(912	)
Impairment loss on investment		-			-			(6,069	)		-
Incentive warrants for warrant exercises		(186,802	)		-			(186,802	)		-
Change in fair value of derivative liabilities		2,790,525			3,032,762			(271,227	)		(1,035,628	)
Total other income (expense)		620,531			2,022,526			(3,974,881	)		(2,881,920	)
Net (loss) income		(583,760	)		961,829			(6,178,275	)		(4,988,561	)
Net (loss) income per share attributable to common stockholders - basic	$	(0.54	)	$	1.11		$	(5.83	)	$	(6.11	)
Net (loss) income per share attributable to common stockholders - diluted	$	(0.54	)	$	(0.03	)	$	(5.83	)	$	(6.11	)
Weighted average common stock shares outstanding used in the basic net (loss) income per share calculation		1,077,529			865,128			1,059,250			816,035
Weighted average common stock shares outstanding used in the diluted net (loss) income per share calculation		1,077,529			2,358,754			1,059,250			816,035

The accompanying notes are an integral part of these unaudited consolidated financial statements

 4

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Comprehensive Income (Loss)
Net income (loss)	$	(583,760	)	$	961,829		$	(6,178,275	)	$	(4,988,561	)
Other comprehensive loss
Unrealized income (loss) on marketable securities		6,190			(73,041	)		6,190			(212,739	)
Comprehensive income (loss)	$	(577,570	)	$	888,788		$	(6,172,085	)	$	(5,201,300	)

The accompanying notes are an integral part of these unaudited consolidated financial statements

 5

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	For the Six Months Ended
	June 30,
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(6,178,275	)	$	(4,988,561	)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for debt extension		10,000			-
Depreciation and amortization		4,716			12,325
Accretion of interest and amortization of debt discount		2,922,265			1,831,289
Issuance of incentive warrants		186,802			-
Gain on forgiveness of debt		(50,000	)		-
Gain on settlement of debt		-			(5,044	)
Stock-based compensation expense		179,511			192,311
Amortization of third party fees paid in common stock and warrants		-			312,200
Warrants issued for service		15,558			-
Shares issued for service		15,000			-
Impairment loss on investment		6,069			-
Change in fair value of derivative liabilities		271,227			1,035,628
Changes in operating assets and liabilities:
Accounts receivable		(282,728	)		(397,852	)
Inventories		(226,204	)		35,989
Prepaid expenses and other assets		82,193			68,966
Accounts payable		338,838			(51,526	)
Accrued employee compensation		310,615			20,771
Deferred revenue and other accrued expenses		4,715			65,448
Net cash used in operating activities		(2,389,698	)		(1,868,056	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property plant and equipment		(16,617	)		(245	)
Net cash used in investing activities		(16,617	)		(245	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from related party convertible debt		-			96,667
Net proceeds from revolving note payable		1,660,000			-
Net proceeds from warrant exercises		140,215			-
Net proceeds from convertible debt		-			1,417,382
Payments on convertible debt		(840,541	)		-
Net proceeds from non-convertible debt		1,987,752			623,311
Payments on non-convertible debt		(478,141	)		(314,210	)
Net cash provided by financing activities		2,469,285			1,823,150
NET DECREASE IN CASH		62,970			(45,151	)
CASH AT BEGINNING OF YEAR		138,363			116,783
CASH AT END OF PERIOD	$	201,333		$	71,632
SUPPLEMENTAL INFORMATION
Interest paid in cash	$	173,243		$	1,154
NON CASH TRANSACTIONS:
Discount due to warrants issued with debt		554,998			-
Unrealized gain from available-for-sale equity securities		6,190			212,739
Derivative liability released upon warrant exercise		49,327			-
Debt discount from derivative liability		-			1,304,049
Cashless exercise of warrants		-			11,100
Conversion of preferred stock into common stock		-			63,459
Convertible debt exchanged for common stock		-			117,837
Convertible debt held in escrow		-			166,882
Common stock issued with debt		297,252			10,952
Discount due to beneficial conversion feature		-			7,962
Discount due to warrants issued with debt		-			39,755
Discount from one-time interest		175,000			-

The accompanying notes are an integral part of these unaudited consolidated financial statements

 6

PRESSURE BIOSCIENCES, INC. AND SUBSIDIARY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 2017

(UNAUDITED)

1) Business Overview, Liquidity and Management Plans

Pressure Biosciences, Inc. (“we”, “our”, “the Company”) is focused on solving the challenging problems inherent in biological sample preparation, a crucial laboratory step performed by scientists worldwide working in biological life sciences research. Sample preparation is a term that refers to a wide range of activities that precede most forms of scientific analysis. Sample preparation is often complex, time-consuming, and in our belief, one of the most error-prone steps of scientific research. It is a widely-used laboratory undertaking, the requirements of which drive what we believe is a large and growing worldwide market. We have developed and patented a novel, enabling technology platform that can control the sample preparation process. It is based on harnessing the unique properties of high hydrostatic pressure. This process, called pressure cycling technology, or PCT, uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels (35,000 psi or greater) to safely, conveniently and reproducibly control the actions of molecules in biological samples, such as cells and tissues from human, animal, plant, and microbial sources.

Our pressure cycling technology uses internally developed instrumentation that is capable of cycling pressure between ambient and ultra-high levels - at controlled temperatures and specific time intervals - to rapidly and repeatedly control the interactions of bio-molecules, such as DNA, RNA, proteins, lipids, and small molecules. Our laboratory instrument, the Barocycler®, and our internally developed consumables product line, including PULSE® (Pressure Used to Lyse Samples for Extraction) Tubes, other processing tubes, and application specific kits (which include consumable products and reagents) together make up our PCT Sample Preparation System, or PCT SPS.

In 2015, together with an investment bank, we formed a subsidiary called Pressure BioSciences Europe (“PBI Europe”) in Poland. We have 49% ownership interest with the investment bank retaining 51%. As of now, PBI Europe does not have any operating activities and we cannot reasonably predict when operations will commence. Therefore, we do not have control of the subsidiary and did not consolidate in our financial statements. PBI Europe did not have any operations in the first half of 2017 or in fiscal year 2016.

2) Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. However, we have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2017, we do not have adequate working capital resources to satisfy our current liabilities and as a result, there is substantial doubt regarding our ability to continue as a going concern. We have been successful in raising cash through debt and equity offerings in the past and as described in Notes 6 and 7, we received $3,787,967 in net proceeds from loans and warrant exercises in the first half of 2017. We have financing efforts in place to continue to raise cash through debt and equity offerings.

Management has developed a plan to continue operations. This plan includes obtaining equity or debt financing. During the six months ended June 30, 2017 we received $3,787,967 in net proceeds from warrant exercises, additional convertible and non-convertible debt. Although we have successfully completed financings and reduced expenses in the past, we cannot assure you that our plans to address these matters in the future will be successful.

We need substantial additional capital to fund normal operations in future periods. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects. These financial statements do not include any adjustments that might result from this uncertainty.

 7

3) Interim Financial Reporting

The accompanying unaudited consolidated balance sheet as of December 31, 2016, which was derived from audited financial statements, and the unaudited interim consolidated financial statements of Pressure BioSciences, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all material adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the fiscal year ended December 31, 2016 as filed with the Securities and Exchange Commission on March 22, 2017.

On June 5, 2017, we effected a 1-for-30 reverse stock split of our common stock. All common shares, stock options, and per share information presented in the consolidated financial statements have been adjusted to reflect the reverse stock split on a retroactive basis for all periods presented. In lieu of issuing fractional shares, stockholders who otherwise would have been entitled to receive fractional shares because they held a number of shares not evenly divisible by the reverse stock split ratio were automatically entitled to receive an additional fraction of a share of Common Stock to round up to the next whole share. There was no change in the par value of the Company’s common stock. The ratio by which shares of preferred stock are convertible into shares of common stock were adjusted to reflect the effects of the reverse stock split.

4) Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of Pressure BioSciences, Inc., and its wholly-owned subsidiary PBI BioSeq, Inc. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

To prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we are required to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in projecting future cash flows to quantify deferred tax assets, the costs associated with fulfilling our warranty obligations for the instruments that we sell, and the estimates employed in our calculation of fair value of stock options awarded and warrant derivative liability. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from the estimates and assumptions used.

Concentrations

Credit Risk

Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, and trade receivables. We have cash investment policies which, among other things, limit investments to investment-grade securities. We perform ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the fact that many of our customers are government institutions, large pharmaceutical and biotechnology companies, and academic laboratories.

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2017 and 2016.

	For the Three Months Ended
	June 30,
	2017			2016
Top Five Customers		60	%		68	%
Federal Agencies		11	%		8	%

	For the Six Months Ended
	June 30,
	2017			2016
Top Five Customers		42	%		40	%
Federal Agencies		8	%		10	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2017 and December 31, 2016:

	June 30, 2017			December, 31, 2016
Top Five Customers		66	%		82	%
Federal Agencies		0	%		1	%

Product Supply

CBM Industries (Taunton, MA) has recently become the manufacturer of the Barocycler® 2320EXT. CBM is ISO 13485:2003 and 9001:2008 Certified. CBM provides us with precision manufacturing services that include management support services to meet our specific application and operational requirements. Among the services provided by CBM to us are:

● CNC Machining

● Contract Assembly & Kitting

● Component and Subassembly Design

● Inventory Management

● ISO certification

At this time, we believe that outsourcing the manufacturing of our new Barocycler® 2320EXT to CBM is the most cost-effective method for us to obtain ISO Certified, CE and CSA Marked instruments. CBM’s close proximity to our South Easton, MA facility is a significant asset enabling interactions between our Engineering, R&D, and Manufacturing groups and their counterparts at CBM. CBM was instrumental in helping PBI achieve CE Marking on our Barocycler 2320EXT, as announced on February 2, 2017.

Although we currently manufacture and assemble the Barozyme HT48, Barocycler® HUB440, the SHREDDER SG3, and most of our consumables at our South Easton, MA facility, we plan to take advantage of the established relationship with CBM and transfer manufacturing of the entire Barocycler® product line, future instruments, and other products to CBM.

The Barocycler® NEP3229, launched in 2008, and manufactured by the BIT Group, will be phased out over the next several years and replaced by the new state-of-the-art Barocycler® HUB and Barozyme HT product lines.

 8

Investment in Available-For-Sale Equity Securities

As of June 30, 2017, we held 601,500 shares of common stock of Everest Investments Holdings S.A. (“Everest”), a Polish publicly traded company listed on the Warsaw Stock Exchange. We account for this investment in accordance with ASC 320 “Investments — Debt and Equity Securities” as securities available for sale. On June 30, 2017, our consolidated balance sheet reflected the fair value of our investment in Everest to be $25,986, based on the closing price of Everest shares of $0.04 per share on that day. The carrying value of our investment in Everest common stock held will change from period to period based on the closing price of the common stock of Everest as of the balance sheet date. The change in market value since the receipt of stock was determined to be other than temporary. We recorded $6,069 as an impairment loss in the first quarter of 2017. The carrying value increased in the current quarter by $6,190 and was reflected as an unrealized gain in our Comprehensive Loss Statement.

Computation of Loss per Share

Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For purposes of this calculation, convertible preferred stock, common stock dividends, and warrants and options to acquire common stock, are all considered common stock equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive to our net loss.

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2017 and 2016:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Numerator:
Net loss	$	(583,760	)	$	961,829		$	(6,178,275	)	$	(4,988,561	)
Accretion of interest and amortization of debt discount		-			991,286			-			-
Change in fair value of derivative liabilities		-			(2,016,593	)		-			-
Net loss applicable to common shareholders	$	(583,760	)	$	(63,478	)	$	(6,178,275	)	$	(4,988,561	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		1,077,529			865,128			1,059,250			816,035
Net effect of dilutive common stock equivalents		-			1,493,626			-			-
Weighted average shares outstanding - diluted		1,077,529			2,358,754			1,059,250			816,035
Income (loss) per common share - basic	$	(0.54	)	$	1.11		$	(5.83	)	$	(6.11	)
Income (loss) per common share - diluted	$	(0.54	)	$	(0.03	)	$	(5.83	)	$	(6.11	)

 9

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series G Convertible Preferred Stock, Series H and H2 Convertible Preferred Stock, Series J Convertible Preferred Stock and Series K Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

	As of June 30,
	2017		2016
Stock options		250,109		179,508
Convertible debt		827,560		844,795
Common stock warrants		890,047		880,111
Convertible preferred stock:
Series D Convertible Preferred Stock		25,000		25,000
Series G Convertible Preferred Stock		28,857		28,857
Series H Convertible Preferred Stock		33,334		33,334
Series H2 Convertible Preferred Stock		70,000		70,000
Series J Convertible Preferred Stock		117,367		118,200
Series K Convertible Preferred Stock		227,200		227,200
		2,469,474		2,407,005

Accounting for Stock-Based Compensation Expense

We maintain equity compensation plans under which incentive stock options and non-qualified stock options are granted to employees, independent members of our Board of Directors and outside consultants. We recognize stock-based compensation expense over the requisite service period using the Black-Scholes formula to estimate the fair value of the stock options on the date of grant.

Determining Fair Value of Stock Option Grants

Valuation and Amortization Method - The fair value of each option award is estimated on the date of grant using the Black-Scholes pricing model based on certain assumptions. The estimated fair value of employee stock options is amortized to expense using the straight-line method over the vesting period.

Expected Term - The Company uses the simplified calculation of expected life, as the Company does not currently have sufficient historical exercise data on which to base an estimate of expected term. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted.

Expected Volatility - Expected volatility is based on the Company’s historical stock volatility data over the expected term of the award.

Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes valuation method on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

Forfeitures - The Company records stock-based compensation expense only for those awards that are expected to vest. The Company estimated a forfeiture rate of 5% for awards granted based on historical experience and future expectations of options vesting. The Company used this historical rate as our assumption in calculating future stock-based compensation expense.

 10

The Company recognized stock-based compensation expense of $104,982 and $90,849 for the three months ended June 30, 2017 and 2016, respectively. The Company recognized stock-based compensation expense of $179,511 and $192,311 for the six months ended June 30, 2017 and 2016, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Consolidated Statements of Operations:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Research and development	$	22,949	$	15,650	$	38,918	$	36,031
Selling and marketing		13,447		9,803		24,334		22,493
General and administrative		68,586		65,396		116,259		133,787
Total stock-based compensation expense	$	104,982	$	90,849	$	179,511	$	192,311

Fair Value of Financial Instruments

Due to their short maturities, the carrying amounts for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair value. Long-term liabilities are primarily related to convertible debentures and deferred revenue with carrying values that approximate fair value.

Fair Value Measurements

The Company follows the guidance of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) as it related to all financial assets and financial liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

The Company generally defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions. A slight change in an unobservable input like volatility could have a significant impact on the fair value measurement of the derivative liability.

 11

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that its financial assets are classified within Level 1 and its financial liabilities are currently classified within Level 3 in the fair value hierarchy. The development of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management.

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2017:

			Fair value measurements at June 30, 2017 using:
	June 30, 2017		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		25,986		25,986		-		-
Total Financial Assets	$	25,986	$	25,986	$	-	$	-

	June 30, 2017		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Warrants Issued with Convertible Debt	$	1,950,681		-		-	$	1,950,681
Conversion Option Derivative Liabilities		907,386		-		-		907,386
Total Derivatives	$	2,858,067	$	-	$	-	$	2,858,067

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the six months ended June 30, 2017:

	December 31, 2016		Issuance fair value		Change in fair value			Settlement			June 30, 2017
Series D Preferred Stock Purchase Warrants	$	23,313	$	-	$	26,014		$	(49,327	)	$	-
Warrants Issued with Convertible Debt		1,661,795		-		288,886			-			1,950,681
Conversion Option Derivative Liabilities		951,059		-		(43,673	)		-			907,386
Total Derivatives	$	2,636,167	$	-	$	271,227		$	(49,327	)	$	2,858,067

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016:

			Fair value measurements at December 31, 2016 using:
	December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		25,865		25,865		-		-
Total Financial Assets	$	25,865	$	25,865	$	-	$	-

	December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	23,313		-		-	$	23,313
Warrants Issued with Convertible Debt		1,661,795		-		-		1,661,795
Conversion Option Derivative Liabilities		951,059		-		-		951,059
Total Derivatives	$	2,636,167	$	-	$	-	$	2,636,167

 12

The assumptions for the binomial pricing model are represented in the table below for the warrants issued with the Convertible Debt throughout the period reflected on a per share common stock equivalent basis.

Assumptions	At Issuance Fair value			Warrants revalued at December 31, 2016			Warrants revalued at June 30, 2017
Expected life (in months)		60.0			43.0-51.0			36.0-45.0
Expected volatility		118.3-120.1	%		110.0-116.0	%		104.1-108.5	%
Risk-free interest rate		1.48-1.69	%		1.93	%		1.50	%
Exercise price	$	12.00		$	12.00		$	12.00
Fair value per warrant	$	5.70-$6.30		$	3.60-4.20		$	4.16-4.77

The assumptions for the binomial pricing model are represented in the table below for the conversion options reflected on a per share common stock equivalent basis.

Assumptions	At Issuance fair value			At Settlement fair value			Conversion options revalued at December 31, 2016			Conversion options revalued at June 30, 2017
Expected life (in months)		6.0-24.0			0-18.0			6.0-15.0			1.0-9.0
Expected volatility		104.2-153.8	%		86.9%-142.2	%		84.4-94.8	%		88.2-104.3	%
Risk-free interest rate		0.05-0.99	%		0.01-0.72	%		0.62-0.85	%		0.84-1.24	%
Exercise price	$	3.00-$10.50		$	3.00-$7.50		$	8.40		$	8.40
Fair value per conversion option	$	2.70-$8.40		$	2.10-$7.80		$	0.90-$1.80		$	0.28-$2.14

 13

5) Commitments and Contingencies

Operating Leases

Our corporate offices are currently located at 14 Norfolk Avenue, South Easton, Massachusetts 02375. We are currently paying $4,800 per month, on a lease extension, signed on December 29, 2016, that expires December 31, 2017, for our corporate office. We expanded our space to include the first floor starting May 1, 2017 with an increase in monthly rent of $2,150.

On November 1, 2014 we signed a lease for lab space in Medford, MA. The lease expires December 30, 2017 and requires monthly payments of $5,385 subject to annual cost of living increases.

Rental costs are expensed as incurred. During the six months ended June 30, 2017 and 2016 we incurred $69,092 and $70,567 in rent expense, respectively for the use of our corporate office and research and development facilities.

Government Grants

We have received a $1.05 million NIH SBIR Phase II Grant. Under the grant, the NIH has committed to pay the Company to develop a high-throughput, high pressure-based DNA Shearing System for Next Generation Sequencing and other genomic applications.

6) Convertible Debt and Other Debt

We entered into Subscription Agreements (the “Subscription Agreement”) with various individuals (each, a “Purchaser”) between July 23, 2015 and March 31, 2016, pursuant to which the Company sold Senior Secured Convertible Debentures (the “Debentures”) and warrants to purchase shares of common stock equal to 50% of the number of shares issuable pursuant to the subscription amount (the “Warrants”) for an aggregate purchase price of $6,329,549 (the “Purchase Price”).

The Company issued a principal aggregate amount of $6,962,504 in Debentures which includes a 10% original issue discount on the Purchase Price. The Debenture does not accrue any additional interest during the first year it is outstanding but accrues interest at a rate equal to 10% per annum for the second year it is outstanding. The Debenture has a maturity date of two years from issuance. The Debenture is convertible any time after its issuance date. The Purchaser has the right to convert the Debenture into shares of the Company’s common stock at a fixed conversion price equal to $8.40 per share, subject to applicable adjustments. In the second year that the Debenture is outstanding, any interest accrued shall be payable quarterly in either cash or common stock, at the Company’s discretion.

At any time after the Issuance Date, the Company has the option, subject to certain conditions, to redeem some or all of the then outstanding principal amount of the Debenture for cash in an amount equal to the sum of (i) 120% of the then outstanding principal amount of the Debenture, (ii) accrued but unpaid interest and (iii) any liquidated damages and other amounts due in respect of the Debenture.

14

Warrants

The Company issued warrants exercisable into a total of 376,757 shares of our common stock. The Warrants issued in this transaction are immediately exercisable at an exercise price of $12.00 per share, subject to applicable adjustments including full ratchet anti-dilution in the event that we issue any securities at a price lower than the exercise price then in effect. The Warrants have an expiration period of five years from the original issue date. The Warrants are subject to adjustment for stock splits, stock dividends or recapitalizations and also include anti-dilution price protection for subsequent equity sales below the exercise price.

Subject to the terms and conditions of the Warrants, at any time commencing six months from the Final Closing, the Company has the right to call the Warrants for cancellation if the volume weighted average price of its Common Stock on the OTCQB (or other primary trading market or exchange on which the Common Stock is then traded) equals or exceeds three times the per share exercise price of the Warrants for 15 out of 20 consecutive trading days.

Security Agreement

In connection with the Subscription Agreement and Debenture, the Company entered into Security Agreements with the Purchasers whereby the Company agreed to grant to Purchasers an unconditional and continuing, first priority security interest in all of the assets and property of the Company to secure the prompt payment, performance and discharge in full of all of Company’s obligations under the Debentures, Warrants and the other Transaction Documents.

The Company determined that the conversion feature of the Debentures met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature on each debt agreement and accounted for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and are amortized to interest expense over the life of the loan. The fair value of the conversion feature was reflected in the conversion option liability line in the consolidated balance sheets.

The proceeds from these convertible debts were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in allocations to the convertible option and accounted for as a liability in the Company’s consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds are offset by debt discounts, which are amortized to interest expense over the expected life of the debt.

ASC 470-20 states that the proceeds from the issuance of debt with detachable stock warrants should be allocated between the debt and warrants on the basis of their relative fair market values. The debt discount will be amortized to interest expense over the two year term of these loans. We amortized $6,577,660 of the debt discount to interest expense through the second quarter of 2017. The warrants issued in connection with the convertible debentures are classified as warrant derivative liabilities because the warrants are entitled to certain rights in subsequent financings and the warrants contain “down-round protection” and therefore, do not meet the scope exception for treatment as a derivative under ASC 815, Derivatives and Hedging, (“ASC 815”). Since “down-round protection” is not an input into the calculation of the fair value of the warrants, the warrants cannot be considered indexed to the Company’s own stock which is a requirement for the scope exception as outlined under ASC 815. The estimated fair value of the warrants was determined using the binomial model, resulting in an allocation of $2,847,624 to the total warrants out of the gross proceeds of $6,329,549. The fair value will be affected by changes in inputs to that model including our stock price, expected stock price volatility, the contractual term, and the risk-free interest rate. We will continue to classify the fair value of the warrants as a liability until the warrants are exercised, expire or are amended in a way that would no longer require these warrants to be classified as a liability, whichever comes first.

15

The specific terms of the convertible debts and outstanding balances as of June 30, 2017 are listed in the table below.

Inception Date	Term	Loan Amount		Outstanding Balance		Original Issue Discount			Interest Rate			Deferred Finance Fees		Discount related to fair value of conversion feature and warrants/shares
July 22, 2015	24 months	$	2,180,000	$	2,180,000	$	218,000	1		10	%2	$	388,532	$	2,163,074
September 25, 2015	24 months		1,100,000		1,100,000		110,000	1		10	%2		185,956		1,022,052
October 2, 2015	24 months		150,000		150,000		15,000	1		10	%2		26,345		140,832
October 6, 2015	24 months		30,000		30,000		3,000	1		10	%2		5,168		26,721
October 14, 2015	24 months		50,000		50,000		5,000	1		10	%2		8,954		49,377
November 2, 2015	24 months		250,000		250,000		25,000	1		10	%2		43,079		222,723
November 10, 2015	24 months		50,000		50,000		5,000	1		10	%2		8,790		46,984
November 12, 2015	24 months		215,000		215,000		21,500	1		10	%2		38,518		212,399
November 20, 2015	24 months		200,000		200,000		20,000	1		10	%2		37,185		200,000
December 4, 2015	24 months		170,000		170,000		17,000	1		10	%2		37,352		170,000
December 11, 2015	24 months		360,000		360,000		36,000	1		10	%2		75,449		360,000
December 18, 2015	24 months		55,000		55,000		5,500	1		10	%2		11,714		55,000
December 31, 2015	24 months		100,000		100,000		10,000	1		10	%2		20,634		100,000
January 11, 2016	24 months		100,000		100,000		10,000	1		10	%2		24,966		80,034
January 20, 2016	24 months		50,000		50,000		5,000	1		10	%2		9,812		40,188
January 29, 2016	24 months		300,000		300,000		30,000	1		10	%2		60,887		239,113
February 26, 2016	24 months		200,000		200,000		20,000	1		10	%2		43,952		156,048
March 10, 2016	24 months		125,000		125,000		12,500	1		10	%2		18,260		106,740
March 18, 2016	24 months		360,000		360,000		36,000	1		10	%2		94,992		265,008
March 24, 2016	24 months		106,667		106,667		10,667	1		10	%2		15,427		91,240
March 31, 2016	24 months		177,882		177,882		17,788	1		10	%2		2,436		175,446
June 15, 2016	6 months		40,000		-		-			12	%		-		3,680
June 17, 2016	6 months		40,000		-		-			12	%		-		3,899
June 22, 2016	6 months		35,000		-		-			12	%		-		3,373
July 6, 2016	6 months		85,000		-		-			12	%		-		15,048
July 29, 2016	6 months		100,000		-		-			12	%		-		25,518
September 15, 2016	8 months		500,000		-		85,541			9	%		-		65,972
April 3, 2017	8 months		50,000		-		-			10	%		-		-
		$	7,179,549	$	6,329,549	$	718,496					$	1,158,408	$	6,040,469

1 The original issue discount is reflected in the first year.

2 The annual interest starts accruing in the second year.

The closings above included a total of approximately $291,000 convertible debentures purchased by related parties who were members of the Company’s Board of Directors and management and their family members.

At any time after six months from the Inception Date, the Company has the right to prepay the above Debentures in cash for 120% of the principal amount outstanding and any accrued interest.

In January 2017, we executed an amendment to the July 6, 2016 convertible note that was due on January 6, 2017. We received an extension of up to three months on the note’s due date. In exchange for the extension, we agreed to issue 1,667 shares of restricted common stock and pay the investor $10,000 for each 30-day extension. The shares issued for the extension were valued at $10,000 and recorded as interest expense. We made a payment of $34,000 in January 2017 for the first one-month extension and interest on the note from the initial close date through February 6, 2017. The Investor had the right, at any time, to convert all or part of the outstanding and unpaid principal sum and accrued interest into shares of common stock at the conversion price of $13.50. On February 28, 2017, the note was paid in full.

On April 3, 2017, we signed a six-month agreement with an investor relations firm. The agreement includes a cash payment of $10,000 plus a convertible 8-month note for $50,000 with the following significant terms: (i) convertible at $12.00/share, (ii) bears 10% annual interest, (iii) a 20% pre-payment penalty if the Company wants to pre-pay the Note, and (iv) a default rate of 18%. We terminated the agreement on June 7, 2017 and the investor relations firm agreed to forgive the loan resulting in a gain of $50,000.

16

Revolving Note Payable

On October 28, 2016, an accredited investor (the “Investor”) purchased from us a promissory note in the aggregate principal amount of up to $2,000,000 (the “Revolving Note”) due and payable on the earlier of October 28, 2017 (the “Maturity Date”) or on the seventh business day after the closing of a Qualified Offering (as defined in the Revolving Note). The Investor is obligated to provide us with advances of $250,000 under the Revolving Note, but the Investor shall not be required to advance more than $250,000 in any individual fifteen (15) day period and no more than $500,000 in the thirty (30) day period immediately following the date of the initial advance. We received $3,000,000 pursuant to the Revolving Note as amended and we issued to the Investor warrants to purchase 250,000 shares of our Common Stock at an exercise price per share equal to $12.00 per share. The terms of the Warrants are identical except for the exercise date, issue date, and termination date which are based on the advance date.

The Revolving Note was amended on May 2, 2017 to increase the aggregate principal amount to $3,000,000, to issue 16,667 shares of our Common Stock to the Investor, to decrease the exercise price per share of the warrants to the lower of (i) $12.00 or (ii) the per share purchase price of the shares of our Common Stock sold in the Qualified Offering, and to change the references in the Revolving Note from “the six (6) month anniversary of October 28, 2016” to “July 25, 2017.” The fair value of the 16,667 shares issued was accounted for as a note discount and are amortized to interest expense over the life of the loan. We evaluated the accounting impact of the Revolving Note amendment and deemed that the amendment did not have a material impact on our consolidated financial statements.

In the event that a Qualified Offering occurs on or prior to July 25, 2017, within seven (7) Business Days of the closing of the Qualified Offering, the Company shall pay a cash fee equal to five percent (5%) of the total outstanding amount owed by the Company to the Holder as of the closing date of the Qualified Offering or, at the option of the Company, issue to the Holder a number of restricted shares of the Company’s common stock equal to (x) five percent (5%) of the total outstanding amount owed by the Company to the Holder as of the closing date of the Qualified Offering divided by (y) the purchase price provided by the documents governing the Qualified Offering. A Qualified Offering means the completion of a public offering of the Company’s securities pursuant to which the Company receives aggregate gross proceeds of at least Seven Million United States Dollars (US$7,000,000) in consideration of the purchase of its securities and resulting in, pursuant to the effectiveness of the registration statement for such offering, the Company’s common stock being traded on the NASDAQ Capital Market, NASDAQ Global Select Market or the New York Stock Exchange.

In the event that a Qualified Offering occurs on or prior to July 25, 2017, but prior to the Maturity Date, within seven(7) Business Days of the closing of the Qualified Offering, the Company shall pay a cash fee equal to five percent (5%) of the total outstanding amount owed by the Company to the Holder as of the closing date of the Qualified Offering or, at the option of the Company, issue to the Holder a number of restricted shares of the Company’s common stock equal to (x) five percent (5%) of the total outstanding amount owed by the Company to the Holder as of the closing date of the Qualified Offering divided by (y) the purchase price provided by the documents governing the Qualified Offering.

Interest on the principal balance of the Revolving Note shall be paid in full on the Maturity Date, unless otherwise paid prior to the Maturity Date. Interest shall be assessed as follows: (i) a one-time interest of 10% on all principal amounts advanced prior to April 28, 2017; (ii) the foregoing and 4% on any amount remaining outstanding if the principal amount is repaid between April 28, 2017 and July 28, 2017; or (iii) both of the foregoing and 4% on any amount remaining outstanding if the principal amount is repaid between July 28, 2017 and October 28, 2017.

Broker fees amounting to $256,500, the one-time interest of $300,000 and the fair value of the 250,000 warrants issued to the Investor amounting to $1,034,729 were recorded as debt discounts and amortized over the term of the revolving note. The unamortized debt discounts as of June 30, 2017 related to the Revolving Note amounted to $909,017.

The following table provides a summary of the changes in convertible debt and revolving note payable, net of unamortized discount, during 2017:

	2017
Balance at January 1,	$	5,273,937
Issuance of convertible debt, face value		1,800,000
Forgiveness of Debt		(50,000	)
Deferred financing cost		(140,000	)
Debt discount related to one-time interest charge		(175,000	)
Debt discount from incentive shares to increase the Revolving Note aggregate principal limit		(150,000	)
Debt discount from shares and warrants issued with the notes		(554,998	)
Payments		(840,541	)
Accretion of interest and amortization of debt discount to interest expense through June 30,		2,753,405
Balance at June 30,		7,916,803
Less: current portion		7,916,803
Convertible debt, long-term portion	$	-

17

Other Notes

On January 6, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $250,000 in exchange for rights to all customer receipts until the lender is paid $322,500, which is collected at the rate of $1,280 per business day. The payments were secured by second position rights to all customer receipts until the loan has been paid in full. $138,840 of the proceeds were used to pay off the outstanding balance of a previous loan from another lender. The Company recognized a gain on the settlement of the previous loan of $5,044 which was credited to interest expense. The Company paid $2,500 in fees in connection with this loan. We received an additional $93,161 in June 2016 under the existing Merchant Agreement. The note is no longer outstanding as of June 30, 2017.

On February 8, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $100,000 in exchange for third position rights to all customer receipts until the lender is paid $129,900, which is collected at the rate of $927 per business day. The Company paid $2,000 in fees in connection with this loan. We received an additional $125,000 in June 2016 under the existing Merchant Agreement of which $48,420 was used to pay off the prior loan. The lender provided an additional $70,000 on August 16, 2016. As of June 30, 2017, the outstanding balance on this note was zero.

On August 26, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $122,465 net proceeds in exchange for rights to all customer receipts which is collected at the rate of $1,386 per business day. As of June 30, 2017, the outstanding balance on this note was zero.

On February 6, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $125,000. The Company paid $1,250 in fees in connection with this loan. Under the agreement, $16,180 was used to pay off the prior loan. The loan was no longer outstanding as of June 30, 2017.

On February 15, 2017, we received six-month, non-convertible loans in the aggregate of $220,000 from two accredited investors. We agreed to issue each investor 5,667 shares of restricted common stock. The loans earn no interest but carry a 10% original issue fee. We recorded the fair value of the shares amounting to $43,616 as debt discounts that will be amortized to interest expense during the term of the loans. The loans still remain outstanding as of June 30, 2017 with an aggregate balance of $220,000. We amortized $15,551 of debt discounts in the three months ended June 30, 2017. The unamortized debt discounts as of June 30, 2017 were $15,904.

On March 2, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $75,750. The Company paid no fees in connection with this loan. The loan was no longer outstanding as of June 30, 2017.

On March 14, 2017, we received an eight-month, non-convertible loan of $250,000 from a privately-held investment firm. The loan earns an annual interest rate of 10% and includes a 10% original issue discount. We also agreed to issue the investor 8,333 shares of restricted common stock. We recorded the fair value of the shares amounting to $51,748 as a debt discount that will be amortized to interest expense during the term of the loan. The loan still remains outstanding as of June 30, 2017 with a balance of $250,000. We amortized $7,248 of the debt discount in the three months ended June 30, 2017. The unamortized debt discount as of June 30, 2017 was $30,699.

18

On March 21, 2017, we received an eight-month, non-convertible loan of $170,000 from an accredited investor. The loan earns an annual interest rate of 10% and includes a 10% original issue discount. We also agreed to issue the investor 5,667 shares of restricted common stock. We recorded the fair value of the shares amounting to $35,079 as a debt discount that will be amortized to interest expense during the term of the loan. The loan still remains outstanding as of June 30, 2017 with a balance of $170,000. We amortized $2,893 of the debt discount in the three months ended June 30, 2017. The unamortized debt discount as of June 30, 2017 was $22,857.

On April 19, 2017, we received a 7-month non-convertible loan of $250,000 from a privately-held investment firm. The loan earns an annual interest rate of 10% and includes a 10% original issue discount. We agreed to issue 833 shares at closing. Until the loan is repaid, we will, over the next one hundred eighty (180) days, issue 2,500 shares to the Investor every sixty (60) days for a total issuance of 8,333 shares. We recorded the fair value of the shares amounting to $16,809 as a debt discount that will be amortized to interest expense during the term of the loan. The loan remains outstanding and we have issued 3,333 shares including the closing shares since inception of the loan. The unamortized debt discount as of June 30, 2017 was $33,169.

On May 19, 2017, we received a 45-day non-convertible loan of $630,000 from a private investor. The loan provides guaranteed interest of $63,000 and has an origination fee of $32,000. We paid a broker $31,500 in connection with this loan. We used these proceeds to pay off in full our September 2016 loan of $589,189. The unamortized debt discount as of June 30, 2017 was $2,100. The loan remains outstanding and accrues interest at a 20% annual rate from the maturity date.

On June 6, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $250,000. The Company paid $6,250 in fees in connection with this loan. Under the agreement, $119,021 was used to pay off three prior loans. The unamortized debt discount as of June 30, 2017 was $5,486. The loan still remains outstanding as of June 30, 2017 with a balance of approximately $220,000

On June 21, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $150,000. The Company paid $1,498 in fees in connection with this loan. The unamortized debt discount as of June 30, 2017 was $1,423. The loan still remains outstanding as of June 30, 2017 with a balance of approximately $140,000.

The total amortized expense for non-convertible debt during the six months period ended June 30, 2017 was $168,860.

7) Stockholders’ Deficit

Preferred Stock

We are authorized to issue 1,000,000 shares of preferred stock with a par value of $0.01. Of the 1,000,000 shares of preferred stock:

1)	20,000 shares have been designated as Series A Junior Participating Preferred Stock (“Junior A”)
2)	313,960 shares have been designated as Series A Convertible Preferred Stock (“Series A”)
3)	279,256 shares have been designated as Series B Convertible Preferred Stock (“Series B”)
4)	88,098 shares have been designated as Series C Convertible Preferred Stock (“Series C”)
5)	850 shares have been designated as Series D Convertible Preferred Stock (“Series D”)
6)	500 shares have been designated as Series E Convertible Preferred Stock (“Series E”)
7)	240,000 shares have been designated as Series G Convertible Preferred Stock (“Series G”)
8)	10,000 shares have been designated as Series H Convertible Preferred Stock (“Series H”)
9)	21 shares have been designated as Series H2 Convertible Preferred Stock (“Series H2”)
10)	6,250 shares have been designated as Series J Convertible Preferred Stock (“Series J”)
11)	15,000 shares have been designated as Series K Convertible Preferred Stock (“Series K”)

As of June 30, 2017, there were no shares of Junior A, and Series A, B, C and E issued and outstanding. See our Annual Report on Form 10-K for the year ended December 31, 2016 for the pertinent disclosures of preferred stock.

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Stock Options and Warrants

Our stockholders approved our amended 2005 Equity Incentive Plan (the “Plan”) pursuant to which an aggregate of 1,800,000 shares of our common stock were reserved for issuance upon exercise of stock options or other equity awards made under the Plan. Under the Plan, we may award stock options, shares of common stock, and other equity interests in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2017, options to acquire 35,608 shares were outstanding under the Plan.

On December 12, 2013 at the Company’s special meeting the shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”) pursuant to which 3,000,000 shares of our common stock were reserved for issuance upon exercise of stock options or other equity awards. Under the 2013 Plan, we may award stock options, shares of common stock, and other equity interests in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2017, options to acquire 84,564 shares were outstanding under the Plan with 2,915,436 shares available for future grants under the 2013 Plan.

On November 29, 2015 the Company’s Board of Directors adopted the 2015 Nonqualified Stock Option Plan (the “2015 Plan”) pursuant to which 5,000,000 shares of our common stock were reserved for issuance upon exercise of non-qualified stock options. Under the 2015 Plan, we may award non-qualified stock options in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2017, non-qualified options to acquire 129,937 shares were outstanding under the Plan with 4,870,063 shares available for future grants under the 2015 Plan.

All of the outstanding non-qualified options had an exercise price that was at or above the Company’s common stock share price at time of issuance.

The following tables summarize information concerning options and warrants outstanding and exercisable:

	Stock Options					Warrants
	Weighted					Weighted
	Average					Average								Total
	Shares			Price per share		Shares			Price per share		Shares			Exercisable
Balance outstanding, 12/31/16		175,642		$	12.60		881,990		$	12.00		1,057,632			991,032
Granted		87,198			8.40		188,944			11.10		276,142
Exercised		—					(19,889	)		7.50		(19,889	)
Expired		(2,868	)		30.00		(160,998	)		11.10		(163,866	)
Forfeited		(9,863	)		10.12		—			—		(9,863	)
Balance outstanding, 6/30/2017		250,109		$	10.95		890,047		$	12.00		1,140,156			1,031,492

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	Options Outstanding						Options Exercisable
	Weighted Average						Weighted Average
Range of Exercise Prices	Number of Options		Remaining Contractual Life (Years)		Exercise Price		Number of Options		Remaining Contractual Life (Years)		Exercise Price
$9.00 - $11.99		135,663		8.8	$	8.62		58,200		7.7	$	8.89
12.00 – 14.99		88,705		8.2		12.00		57,504		8.1		12.00
15.00 – 17.99		7,547		5.1		15.00		7,547		5.1		15.00
18.00 – 20.99		10,350		2.6		18.00		12,854		2.6		18.00
21.00 – 30.00		7,844		3.0		30.00		5,340		3.0		30.00
$9.00 - $30.00		250,109		8.0	$	10.95		141,445		7.1	$	12.11

As of June 30, 2017, the total estimated fair value of unvested stock options to be amortized over their remaining vesting period was $593,019. The non-cash, stock-based compensation expense associated with the vesting of these options is expected to be $191,466 remaining in 2017, $272,539 in 2018, $106,477 in 2019 and $22,537 in 2020. The fair value of options granted in 2017 was $487,914.

The aggregate intrinsic value associated with the options outstanding and exercisable as of June 30, 2017 was zero. The aggregate intrinsic value associated with the warrants outstanding and exercisable as of June 30, 2017 was zero.

In January 2017, we issued warrants to purchase 3,334 shares of restricted common stock with a fair value of $15,558 to an investor relations firm for services performed.

Common Stock Issuances

On various dates from January to March 2017, the Company issued 27,000 shares of restricted common stock to investors as compensation for loans provided to us.

We issued 1,667 shares of restricted common stock with a fair value of $15,000 to an investor relations firm.

On April 19, 2017, we received a 7-month non-convertible loan of $250,000 from a privately-held investment firm. The loan earns an annual interest rate of 10% and includes a 10% original issue discount. We agreed to issue 833 shares at closing. Until the loan is repaid, we will, over the next one hundred eighty (180) days, issue 2,500 shares to the Investor every sixty (60) days for a total issuance of 8,333 shares. The loan remains outstanding and we have issued 3,333 shares including the closing shares since inception of the loan.

The Revolving Note was amended on May 2, 2017 to increase the aggregate principal amount to $3,000,000. In exchange for this increase, we agreed to issue 16,667 shares of our Common Stock to the Investor, to decrease the exercise price per share of the warrants to the lower of (i) $12.00 or (ii) the per share purchase price of the shares of our Common Stock sold in a qualified offering, and to change the trigger date in the Revolving Note from the six month anniversary of October 28, 2016 to July 25, 2017.

On May 10, 2017, we received $149,164 from the exercise of 19,889 stock purchase warrants from the Series D registered direct offering on November 10, 2011. We paid $8,949 to a broker in connection with the warrant exercises. In consideration for the warrant exercises, we issued to the investors warrants to purchase 39,778 shares of our Common Stock at an exercise price per share equal to $8.40 per share. The warrants expire on the third year anniversary date. We determined the fair value of $186,802 for these warrants and recorded the value as other expenses.

8) Subsequent Events

On July 17, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $125,000. The Company paid $1,250 in fees in connection with this loan.

On August 1, 2017, we received a 6-month non-convertible loan of $75,000 from a privately-held investment firm. The Company paid total fees of $18,750 including original issue discount, interest, and other costs related to this loan.

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, forward-looking statements are identified by terms such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” and similar expressions intended to identify forward-looking statements. Such statements include, without limitation, statements regarding:

● our need for, and our ability to raise, additional equity or debt financing on acceptable terms, if at all;

● our need to take additional cost reduction measures, cease operations or sell our operating assets, if we are unable to obtain sufficient additional financing;

● our belief that we have sufficient liquidity to finance normal operations;

● the options we may pursue in light of our financial condition;

● the amount of cash necessary to operate our business;

● the anticipated uses of grant revenue and the potential for increased grant revenue in future periods;

● our plans and expectations with respect to our continued operations;

● our belief that PCT has achieved initial market acceptance in the mass spectrometry and other markets;

● the expected increase in the number of pressure cycling technology (“PCT”)and constant pressure (“CP”) based units installed and the increase in revenues from the sale of consumable products and extended service contracts;

● the expected development and success of new instrument and consumables product offerings;

● the potential applications for our instrument and consumables product offerings;

● the expected expenses of, and benefits and results from, our research and development efforts;

● the expected benefits and results from our collaboration programs, strategic alliances and joint ventures;

● our expectation of obtaining additional research grants from the government in the future;

● our expectations of the results of our development activities funded by government research grants;

● the potential size of the market for biological sample preparation;

● general economic conditions;

● the anticipated future financial performance and business operations of our company;

● our reasons for focusing our resources in the market for genomic, proteomic, lipidomic and small molecule sample preparation;

● the importance of mass spectrometry as a laboratory tool;

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● the advantages of PCT over other current technologies as a method of biological sample preparation in biomarker discovery, forensics, and histology and for other applications;

● the capabilities and benefits of our PCT sample preparation system, consumables and other products;

● our belief that laboratory scientists will achieve results comparable with those reported to date by certain research scientists who have published or presented publicly on PCT and our other products;

● our ability to retain our core group of scientific, administrative and sales personnel; and

● our ability to expand our customer base in sample preparation and for other applications of PCT and our other products.

These forward-looking statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements, expressed or implied, by such forward-looking statements. Also, these forward-looking statements represent our estimates and assumptions only as of the date of this Quarterly Report on Form 10-Q. Except as otherwise required by law, we expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement contained in this Quarterly Report on Form 10-Q to reflect any change in our expectations or any change in events, conditions or circumstances on which any of our forward-looking statements are based. Factors that could cause or contribute to differences in our future financial and other results include those discussed in the risk factors set forth in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2016. We qualify all of our forward-looking statements by these cautionary statements.

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OVERVIEW

We are focused on solving the challenging problems inherent in biological sample preparation, a crucial laboratory step performed by scientists worldwide working in biological life sciences research. Sample preparation is a term that refers to a wide range of activities that precede most forms of scientific analysis. Sample preparation is often complex, time-consuming and, in our belief, one of the most error-prone steps of scientific research. It is a widely-used laboratory undertaking – the requirements of which drive what we believe is a large and growing worldwide market. We have developed and patented a novel, enabling technology platform that can control the sample preparation process. It is based on harnessing the unique properties of high hydrostatic pressure. This process, which we refer to as Pressure Cycling Technology, or PCT, uses alternating cycles of hydrostatic pressure between ambient and 45,000 psi or greater to safely, conveniently and reproducibly control the actions of molecules in biological samples, such as cells and tissues from human, animal, plant and microbial sources.

Our pressure cycling technology uses internally developed instrumentation that is capable of cycling pressure between ambient and ultra-high levels at controlled temperatures and specific time intervals, to rapidly and repeatedly control the interactions of bio-molecules, such as deoxyribonucleic acid (“DNA”), ribonucleic acid (“RNA”), proteins, lipids and small molecules. Our laboratory instrument, the Barocycler^®, and our internally developed consumables product line, which include our Pressure Used to Lyse Samples for Extraction (“PULSE”) tubes, and other processing tubes, and application specific kits such as consumable products and reagents, together make up our PCT Sample Preparation System (“PCT SPS”).

We have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2017, we did not have adequate working capital resources to satisfy our current liabilities and as a result we have substantial doubt about our ability to continue as a going concern. Based on our current projections, including equity financing subsequent to June 30, 2017, we believe we will have the cash resources that will enable us to continue to fund normal operations into the foreseeable future.

We need substantial additional capital to fund normal operations in future periods. If we are able to obtain additional capital or otherwise increase our revenues, we may increase spending in specific research and development applications and engineering projects and may hire additional sales personnel or invest in targeted marketing programs. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects.

We have 14 United States granted patents and one foreign granted patent (Japan: 5587770, EXTRACTION AND PARTITIONING OF MOLECULES) covering multiple applications of PCT in the life sciences field. PBI also has 19 pending patents in the USA, Canada, Europe, Australia, China, and Taiwan PCT employs a unique approach that we believe has the potential for broad use in a number of established and emerging life sciences areas, which include, but are not limited to:

● biological sample preparation – including but not limited to sample extraction, homogenization, and digestion - in such study areas as genomic, proteomic, lipidomic, metabolomic and small molecule;

● pathogen inactivation;

● protein purification;

● control of chemical reactions, particularly enzymatic; and

● immunodiagnostics.

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We reported a number of accomplishments in the first half of 2017:

On February 2, 2017, the Company announced that it had achieved CE Marking for the Barocycler 2320EXTREME, the Company’s recently released, next-generation PCT-based sample preparation instrument. PBI is now permitted to begin sales of the Barocycler 2320EXT to the 31 countries of the European Economic Area.

On March 1, 2017, the Company announced that its Barocycler 2320EXTREME had been named the “Best New Instrument for Sample Preparation 2017” by Corporate America News (“Corp America”) as part of the publication’s 2017 North American Excellence Awards.

On March 23, 2017, the Company announced that it had significantly bolstered its marketing and sales capabilities by contracting with EKG Sales Associates, a lead generation company and by hiring two of its planned four additional field sales directors.

On April 10, 2017, the Company announced that Joseph Damasio, Jr. had joined the Company as its full-time Chief Financial Officer and Vice President of Finance.

A one-for-thirty reverse split of our common stock became effective as of June 5, 2017. As a result of the reverse stock split, every thirty shares of the Company’s common stock issued and outstanding prior to the opening of trading on June 5, 2017 was consolidated into one issued and outstanding share, with no change in the nominal par value per share of $0.01. No fractional shares were issued as a result of the reverse stock split. Shareholders who otherwise would have been entitled to receive a fractional share in connection with the reverse stock split received an additional fraction of a share of common stock to round up to the next whole share.

Results of Operations

Comparison for the three months ended June 30, 2017 and 2016

Revenue

We recognized total revenue of $540,372 for the three months ended June 30, 2017 as compared to $510,963 during the three months ended June 30, 2016, an increase of $29,409 or 6%. This increase is attributable primarily to an increase in grant related activities.

Products, Services, Other. Revenue from the sale of products and services increased 1% to $480,400 for the three months ended June 30, 2017 as compared to $474,187 during the three months ended June 30, 2016. Sales of consumables decreased for the three months ended June 30, 2017 to $52,365 compared to $72,773 during the same period in the prior year, a decrease of 28%. Products, Services, and Other Revenue included $17,088 from non-cash transactions in the current quarter. Revenue from non-cash transactions was recognized on the fair value of the assets involved per ASC 845.

Grant Revenue. During the three months ended June 30, 2017, we recorded grant revenue of $59,972 compared to grant revenue of $36,776 in the comparable period in 2016. Increase is from increased grant related activities during the current quarter.

Cost of Products and Services

The cost of products and services was $287,299 for the three months ended June 30, 2017 compared to $243,105 for the comparable period in 2016. The cost of products and services increased from an updated labor/overhead allocation. Gross profit margin on products and services decreased slightly to 47% for the three months ended June 30, 2017, as compared to 49% for the prior period.

Research and Development

Research and development expenditures were $241,783 during the three months ended June 30, 2017 as compared to $321,428 in the same period in 2016, a decrease of $79,645 or 25%. The prior period included expenses for CE marking and the development of the final prototypes of our Barocycler 2320EXTREME for production.

Research and development expense recognized in the three months ended June 30, 2017 and 2016 included $22,949 and $15,650 of non-cash, stock-based compensation expense, respectively.

Selling and Marketing

Selling and marketing expenses increased to $300,111 for the three months ended June 30, 2017 from $193,885 for the comparable period in 2016, an increase of $106,226 or 55%. This increase is primarily attributable to expansion of the company’s sales force by three individuals plus recruitment fees.

During the three months ended June 30, 2017 and 2016, selling and marketing expense included $13,447 and $9,803 of non-cash, stock-based compensation expense, respectively.

General and Administrative

General and administrative costs totaled $915,470 for the three months ended June 30, 2017 as compared to $813,242 for the comparable period in 2016, an increase of $102,228 or 13%. The increase included support activities such as investor and public relations, the hire of a chief financial officer, and other activities that we believed would augment and support our 2017 fund raising and business growth efforts.

During the three months ended June 30, 2017 and 2016, general and administrative expense included $68,586 and $65,396 of non-cash, stock-based compensation expense, respectively.

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Operating Loss

Our operating loss was $1,204,291 for the three months ended June 30, 2017 as compared to $1,060,697 for the comparable period in 2016, an increase of $143,594 or 14%. This increase was primarily due to increases in sales and marketing expenses and public relations activities, as described above.

Other Income (Expense), Net

Interest (Expense) Income

Interest expense was $1,983,112 for the three months ended June 30, 2017 as compared to interest expense of $1,010,236 for the three months ended June 30, 2016. Interest expense reflected amortization of debt discounts related primarily to the sale of senior secured convertible debentures. The increase is primarily from deferred finance charges on our Revolving Note that closed October 2016 and discussed in Note 6 of the accompanying consolidated financial statements.

Change in fair value of warrant derivative liability

During the three months ended June 30, 2017, we recorded non-cash income of $1,018,507 for warrant revaluation in our consolidated statements of operations due to a decrease in the fair value of the warrant liability related to warrants issued in our private placement offerings. We recorded $1,025,183 non-cash income in the prior comparable period. This decrease in fair value was primarily due to the decrease in price of the Company’s common stock at June 30, 2017 as compared to the price on June 30, 2016. The components for determining the fair value of the warrants are contained in the table in Note 4 of the accompanying consolidated financial statements.

Change in fair value of conversion option liability

During the three months ended June 30, 2017, we recorded non-cash income of $1,772,018 for conversion option revaluation expense in our consolidated statements of operations due to a decrease in the fair value of the conversion option liability related to convertible debt. This decrease in fair value was primarily due to the decrease in price of the Company’s common stock on June 30, 2017 as compared to the price on June 30, 2016 or the date the debt was incurred during the quarter and the shorter time to maturity of the debt. For the three months ended June 30, 2016 we recorded non-cash income $2,007,579 for conversion option liability revaluation. The components for determining the fair value of the conversion option liabilities are contained in the table in Note 4 of the accompanying consolidated financial statements.

Incentive warrants for warrant exercises

On May 10, 2017, we received $149,164 from the exercise of 19,889 stock purchase warrants from the Series D registered direct offering on November 10, 2011. In consideration for the warrant exercises, we issued to the investors warrants to purchase 39,778 shares of our Common Stock at an exercise price per share equal to $8.40 per share. The warrants expire on the third year anniversary date. We determined the fair value of $186,802 for these warrants and recorded the value as other expenses.

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Comparison for the six months ended June 30, 2017 and 2016

Revenue

We recognized total revenue of $1,091,729 for the six months ended June 30, 2017 as compared to $1,021,442 during the six months ended June 30, 2016, an increase of $70,286 or 7%. This increase is attributable to increases in the sales of our products and services as detailed below.

Products, Services, Other. Revenue from the sale of products and services increased 8% to $1,006,398 for the six months ended June 30, 2017 as compared to $928,538 during the six months ended June 30, 2016. This increase was primarily attributable to sales of the recently released Barocycler 2320EXT units. Sales of consumables remained steady for the six months ended June 30, 2017 at $115,629 compared to $117,008 during the same period in the prior year.

Grant Revenue. During the six months ended June 30, 2017, we recorded grant revenue of $85,331 compared to grant revenue of $92,904 in the comparable period in 2016. Work on the $1.05 million NIH grant decreased during the first half of 2017 as we needed to wait for certain significant parts to be manufactured. These parts were received and should result in an increase in grant work beginning in the third quarter of the 2017 calendar year.

Cost of Products and Services

The cost of products and services was $523,296 for the six months ended June 30, 2017 compared to $464,804 for the comparable period in 2016. Gross profit margin on products and services was 52% for the six months ended June 30, 2017, as compared to 50% for the prior period. We are realizing better margins from the Barocycler 2320 EXTREME system compared to the previous Barocycler NEP2320 Enhanced units.

Research and Development

Research and development expenditures were $505,239 during the six months ended June 30, 2017 as compared to $656,698 in the same period in 2016, a decrease of $151,459 or 23%. The prior period included costs expenses for CE marking and the development of the final prototypes of our Barocycler 2320EXTREME for production and lower employee costs in the current period.

Research and development expense recognized in the six months ended June 30, 2017 and 2016 included $38,918 and $36,031 of non-cash, stock-based compensation expense, respectively.

Selling and Marketing

Selling and marketing expenses increased to $513,120 for the six months ended June 30, 2017 from $385,121 for the comparable period in 2016, an increase of $127,999 or 33%. This increase is primarily attributable to expansion of the company’s sales force by three individuals plus recruitment fees.

During the six months ended June 30, 2017 and 2016, selling and marketing expense included $24,334 and $22,493 of non-cash, stock-based compensation expense, respectively.

General and Administrative

General and administrative costs totaled $1,753,468 for the six months ended June 30, 2017 as compared to $1,621,460 for the comparable period in 2016. We continued to actively support activities such as investor and public relations, outside consulting services, and other activities that we believed would augment and support our 2017 fund raising and business growth efforts.

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During the six months ended June 30, 2017 and 2016, general and administrative expense included $116,259 and $133,787 of non-cash, stock-based compensation expense, respectively.

Operating Loss

Our operating loss was $2,203,394 for the six months ended June 30, 2017 as compared to $2,106,641 for the comparable period in 2016. This increase was primarily due to sales, marketing and investor relations activities.

Other Income (Expense), Net

Interest (Expense) Income

Interest expense was $3,509,744 for the six months ended June 30, 2017 as compared to interest expense of $1,845,380 for the six months ended June 30, 2016. The interest expense is from the amortization of debt discounts relating to the sale of senior secured convertible debentures and other convertible and non-convertible notes.

Change in fair value of warrant derivative liability

During the six months ended June 30, 2017, we recorded non-cash charges of $314,900 for warrant revaluation in our consolidated statements of operations due to an overall increase in the fair value of the warrant liability related to warrants issued in our 2015/16 private placement offerings compared to non-cash charges of $162,587 for warrant revaluation for the six months ended June 30, 2016. The components for determining the fair value of the warrants are contained in the table in Note 4 of the accompanying consolidated financial statements.

Change in fair value of conversion option liability

During the six months ended June 30, 2017, we recorded non-cash income of $43,673 for conversion option revaluation in our consolidated statements of operations due to decreases in the fair value of the conversion option liability related to convertible debt compared to non-cash charges of $464,469 for conversion option revaluation for the six months ended June 30, 2016. We recorded $1,337,510 as non-cash charge at issuance of these convertible debentures. The components for determining the fair value of the conversion option liabilities are contained in the table in Note 4 of the accompanying consolidated financial statements.

Incentive warrants for warrant exercises

On May 10, 2017, we received $149,164 from the exercise of 19,889 stock purchase warrants from the Series D registered direct offering on November 10, 2011. In consideration for the warrant exercises, we issued to the investors warrants to purchase 39,778 shares of our Common Stock at an exercise price per share equal to $8.40 per share. The warrants expire on the third year anniversary date. We determined the fair value of $186,802 for these warrants and recorded the value as other expenses.

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Liquidity and Financial Condition

We have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2017, we did not have adequate working capital resources to satisfy our current liabilities and as a result, we have substantial doubt regarding our ability to continue as a going concern. We have been successful in raising cash through debt and equity offerings in the past and as described in Note 6 of the accompanying consolidated financial statements, we received $3,787,967 in net proceeds from loans and warrant exercises in the first half of 2017. We have efforts in place to continue to raise cash through debt and equity offerings.

We will need substantial additional capital to fund our operations in future periods. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects.

On December 22, 2016, the Company filed a preliminary Form S-1 with the Securities and Exchange Commission to register shares of its common stock which would allow the Company to raise up to $12.5 million.

Net cash used in operations for the six months ended June 30, 2017 was $2,389,698 as compared to $1,868,056 for the six months ended June 30, 2016. We had a slightly higher operating loss in the current period plus additional interest expense.

Net cash used in investing activities for the six months ended June 30, 2017 totaled $16,617 compared to none in the prior period. Cash capital expenditures included laboratory equipment and IT equipment.

Net cash provided by financing activities for the six months ended June 30, 2017 was $2,469,285 as compared to $1,421,674 for the same period in the prior year. The cash from financing activities in the period ending June 30, 2017 included $1,660,000 from our Revolving Note and $140,215 from warrant exercises. We also received $1,987,752 from non-convertible debt, net of fees, less payment on non-convertible debt of $478,141 and payment on convertible debt of $840,541. The prior period included proceeds from senior secured convertible debt.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This Item 3 is not applicable to us as a smaller reporting company and has been omitted.

ITEM 4. CONTROLS AND PROCEDURES

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our Securities Exchange Act of 1934 filings are recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our President and Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial Officer), as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, as ours are designed to do, and management was necessarily required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

As of June 30, 2017, we carried out an evaluation, under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934. Based upon that evaluation, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were not effective.

Our conclusion that our disclosure controls and procedures were not effective as of June 30, 2017 is due to the continued presence of the material weaknesses in our internal control over financial reporting identified in our Annual Report on Form 10-K for the year ended December 31, 2016. These material weaknesses are the following:

●	We identified a lack of sufficient segregation of duties. Specifically, this material weakness is such that the design over these areas relies primarily on detective controls and could be strengthened by adding preventative controls to properly safeguard Company assets.
●	Management has identified a lack of sufficient personnel in the accounting function due to our limited resources with appropriate skills, training and experience to perform the review processes to ensure the complete and proper application of generally accepted accounting principles, particularly as it relates to valuation of warrants and other complex debt /equity transactions. Specifically, this material weakness resulted in audit adjustments to the annual consolidated financial statements and revisions to related disclosures, valuation of warrants and other equity transactions.
●	Limited policies and procedures that cover recording and reporting of financial transactions.
●	Lack of multiple levels of review over the financial reporting process
We continue to plan to remediate those material weaknesses as follows:
●	Improve the effectiveness of the accounting group by augmenting our existing resources with additional consultants or employees to assist in the analysis and recording of complex accounting transactions, and to simultaneously achieve desired organizational structuring for improved segregation of duties. We plan to mitigate this identified deficiency by hiring an independent consultant once we generate significantly more revenue or raise significant additional working capital.
●	Improve expert review and achieve desired segregation procedures by strengthening cross approval of various functions including quarterly internal audit procedures where appropriate.

During the period covered by this Report, we implemented and performed additional substantive procedures, such as supervisory review of work papers and consistent use of financial models used in equity valuations, to ensure our consolidated financial statements as of and for the three month period ended June 30, 2017, are fairly stated in all material respects in accordance with GAAP. We have not, however, been able to fully remediate the material weaknesses due to our limited financial resources. Our remediation efforts are largely dependent upon our securing additional financing to cover the costs of implementing the changes required. If we are unsuccessful in securing such funds, remediation efforts may be adversely affected in a material manner.

Except as described above, there have been no changes in our internal controls over financial reporting that occurred during the period ended June 30, 2017 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We are not currently involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

Item 1A. Risk Factors

Factors that could cause or contribute to differences in our future financial and operating results include those discussed in the risk factors set forth in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2016. The risks described in our Form 10-K and this Report are not the only risks that we face. Additional risks not presently known to us or that we do not currently consider significant may also have an adverse effect on the Company. If any of the risks actually occur, our business, results of operations, cash flows or financial condition could suffer.

There have been no material changes to the risk factors set forth in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2016.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The Revolving Note discussed in Note 6 of the accompanying consolidated financial statements was amended on May 2, 2017 to increase the aggregate principal amount to $3,000,000, to issue 16,667 shares of our Common Stock to the Investor, to decrease the exercise price per share of the warrants to the lower of (i) $12.00 or (ii) the per share purchase price of the shares of our common stock sold in a Qualified Offering, and to change the trigger date in the Revolving Note from the six month anniversary of October 28, 2016 to July 25, 2017.

On May 10, 2017, we received $149,164 from the exercise of 19,889 stock purchase warrants from the Series D registered direct offering on November 10, 2011. In consideration for the warrant exercises, we issued to the investors warrants to purchase 39,778 shares of our Common Stock at an exercise price per share equal to $8.40 per share. The warrants expire on the third year anniversary date.

For the three months ended June 30, 2017, we received $750,000 pursuant to the Revolving Note as amended and we issued to the Investor warrants to purchase 62,500 shares of our Common Stock at an exercise price per share equal to $12.00 per share.

Item 3. Defaults upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

31

Item 6. Exhibits

Exhibits
4.1	Form of Debenture (incorporated by reference to Exhibit 4.1 of the Company’s Form 8-K filed with the SEC on April 24, 2017).
10.1	Letter Agreement, dated April 19, 2017 (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed with the SEC on April 24, 2017).
10.2	Amendment to the July 1, 2016 $200,000 Convertible Note between Vision Capital and Pressure BioSciences, Inc. (incorporated by reference to Exhibit 10.1 of the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 16, 2017).
10.3	Amendment Number 1 to October 26 Promissory Note, dated May 2, 2017 (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed with the SEC on May 26, 2017).
10.4	Promissory Note, dated May 19, 2017 (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed with the SEC on May 26, 2017).
10.5	BG Preferred Stock Letter Agreement, dated June 16, 2017 (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed with the SEC on June 22, 2017).
10.6	Form of Debenture Holder Letter Agreement, dated June 16, 2017 (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed with the SEC on June 22, 2017).
10.7	Form of Debenture and Fall 2016 Holder Letter Agreement, dated June 16, 2017 (incorporated by reference to Exhibit 10.3 of the Company’s Form 8-K filed with the SEC on June 22, 2017).
10.8	Accredited Investor Letter Agreement, dated June 16, 2017 (incorporated by reference to Exhibit 10.4 of the Company’s Form 8-K filed with the SEC on June 22, 2017).
31.1*	Principal Executive Officer and Principal Financial Officer Certification Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Principal Financial Officer Certification Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**	Principal Executive Officer Certification Pursuant to Item 601(b)(32) of Regulation S-K, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**	Principal Financial Officer Certification Pursuant to Item 601(b)(32) of Regulation S-K, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Filed herewith.

** In accordance with SEC Release 33-8238, Exhibits 32.1 and 32.2 are furnished and not filed.

32

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	PRESSURE BIOSCIENCES, INC.
Date: August 14, 2017	By:	/s/ Richard T. Schumacher
		Richard T. Schumacher
		President & Chief Executive Officer
		(Principal Executive Officer)
Date: August 14, 2017	By:	/s/ Joseph L. Damasio, Jr.
		Joseph L. Damasio, Jr.
		Vice President of Finance & Chief Financial Officer
		(Principal Financial Officer)

33

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Richard T. Schumacher, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Pressure BioSciences, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 14, 2017

/s/ Richard T. Schumacher

Richard T. Schumacher

President & Chief Executive Officer

(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Joseph L. Damasio, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of Pressure BioSciences, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiary, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal controls over financial reporting, or caused such internal controls over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 14, 2017

/s/ Joseph L. Damasio, Jr.

Joseph L. Damasio, Jr.

Vice President of Finance & Chief Financial Officer

(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

In connection with the Quarterly Report on Form 10-Q of Pressure BioSciences, Inc., a Massachusetts corporation (the “Company”) for the period ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Richard T. Schumacher, President and Chief Executive Officer of the Company, do hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) that:

(1) The Report of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2017	By:	/s/ Richard T. Schumacher
		Richard T. Schumacher
		President & Chief Executive Officer
		(Principal Executive Officer)

A signed original of this written statement required by Section 906 has been provided to Pressure BioSciences, Inc. and will be retained by Pressure BioSciences, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

Certification

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)

In connection with the Quarterly Report on Form 10-Q of Pressure BioSciences, Inc., a Massachusetts corporation (the “Company”) for the period ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joseph L. Damasio, Jr., Principal Financial Officer of the Company, do hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) that:

(1) The Report of the Company fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 14, 2017	By:	/s/ Joseph L. Damasio, Jr.
		Joseph L. Damasio, Jr.
		Vice President & Chief Financial Officer
		(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to Pressure BioSciences, Inc. and will be retained by Pressure BioSciences, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 11, 2017
Document And Entity Information
Entity Registrant Name	PRESSURE BIOSCIENCES INC
Entity Central Index Key	0000830656
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		1,101,884
Trading Symbol	PBIO
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2017

XML

Consolidated Balance Sheets (Unaudited) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 201,333	$ 138,363
Accounts receivable, net of $28,169 reserve at June 30, 2017 and December 31, 2016	564,048	281,320
Inventories, net of $20,000 reserve at June 30, 2017 and December 31, 2016	1,131,488	905,284
Prepaid income taxes	7,405	7,405
Prepaid expenses and other current assets	175,910	258,103
Total current assets	2,080,184	1,590,475
Investment in available-for-sale equity securities	25,986	25,865
Property and equipment, net	21,314	9,413
TOTAL ASSETS	2,127,484	1,625,753
CURRENT LIABILITIES
Accounts payable	746,087	407,249
Accrued employee compensation	337,480	249,596
Accrued professional fees and other	1,354,615	956,884
Deferred revenue	180,397	159,654
Revolving note payable, net of unamortized debt discounts of $909,017 and $637,030, respectively	2,090,983	612,970
Related party convertible debt, net of debt discount of $99,065 and $0, respectively	192,069
Convertible debt, net of unamortized debt discounts of $1,037,619 and $2,235,839, respectively	7,916,803	4,005,702
Other debt, net of unamortized discounts of $111,771 and $380, respectively	1,769,376	238,157
Warrant derivative liability	1,950,681	1,685,108
Conversion option liability	907,386	951,059
Total current liabilities	15,162,825	9,266,379
LONG TERM LIABILITIES
Related party convertible debt, net of debt discount of $0 and $165,611, respectively		125,523
Convertible debt, net of debt discount of $0 and $740,628, respectively		529,742
Deferred revenue	71,499	87,527
TOTAL LIABILITIES	15,234,324	10,009,171
COMMITMENTS AND CONTINGENCIES (Note 5)
STOCKHOLDERS’ DEFICIT
Common stock, $.01 par value; 100,000,000 shares authorized; 1,101,884 and 1,033,328 shares issued and outstanding on June 30, 2017 and December 31, 2016, respectively	11,019	10,333
Warrants to acquire common stock	7,082,460	6,325,102
Additional paid-in capital	28,234,884	27,544,265
Accumulated other comprehensive income	6,190
Accumulated deficit	(48,442,465)	(42,264,190)
Total stockholders’ deficit	(13,106,840)	(8,383,418)
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	2,127,484	1,625,753
Series D Convertible Preferred Stock [Member]
STOCKHOLDERS’ DEFICIT
Convertible Preferred Stock, value	3	3
Series G Convertible Preferred Stock [Member]
STOCKHOLDERS’ DEFICIT
Convertible Preferred Stock, value	866	866
Series H Convertible Preferred Stock [Member]
STOCKHOLDERS’ DEFICIT
Convertible Preferred Stock, value	100	100
Series H2 Convertible Preferred Stock [Member]
STOCKHOLDERS’ DEFICIT
Convertible Preferred Stock, value
Series J Convertible Preferred Stock [Member]
STOCKHOLDERS’ DEFICIT
Convertible Preferred Stock, value	35	35
Series K Convertible Preferred Stock [Member]
STOCKHOLDERS’ DEFICIT
Convertible Preferred Stock, value	$ 68	$ 68

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Accounts receivable, reserve	$ 28,169	$ 28,169
Inventories reserve	20,000	20,000
Revolving note payable, unamortized discount	909,017	637,030
Convertible debt related party unamortized debt discount current, net	99,065	0
Convertible debt, current unamortized discounts	1,037,619	2,235,839
Other debt, unamortized discounts net	111,771	380
Convertible debt related party unamortized debt discount net	0	165,611
Convertible debt, non current unamortized discounts	$ 0	$ 740,628
Convertible preferred stock, par value	$ 0.01
Convertible preferred stock, authorized	1,000,000
Convertible preferred stock, shares issued	1,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	1,101,884	1,033,328
Common stock, shares outstanding	1,101,884	1,033,328
Series D Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ .01
Convertible preferred stock, authorized	850	850
Convertible preferred stock, shares issued	300	300
Convertible preferred stock, shares outstanding	300	300
Convertible preferred stock, liquidation value	$ 300,000	$ 300,000
Series G Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	240,000	240,000
Convertible preferred stock, shares issued	86,570	86,570
Convertible preferred stock, shares outstanding	86,570	86,570
Series H Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	10,000	10,000
Convertible preferred stock, shares issued	10,000	10,000
Convertible preferred stock, shares outstanding	10,000	10,000
Series H2 Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	21	21
Convertible preferred stock, shares issued	21	21
Convertible preferred stock, shares outstanding	21	21
Series J Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	6,250	6,250
Convertible preferred stock, shares issued	3,521	3,521
Convertible preferred stock, shares outstanding	3,521	3,521
Series K Convertible Preferred Stock [Member]
Convertible preferred stock, par value	$ 0.01	$ 0.01
Convertible preferred stock, authorized	15,000	15,000
Convertible preferred stock, shares issued	6,816	6,816
Convertible preferred stock, shares outstanding	6,816	6,816

XML

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenue:
Products, services, other	$ 480,400	$ 474,187	$ 1,006,398	$ 928,538
Grant revenue	59,972	36,776	85,331	92,904
Total revenue	540,372	510,963	1,091,729	1,021,442
Costs and expenses:
Cost of products and services	287,299	243,105	523,296	464,804
Research and development	241,783	321,428	505,239	656,698
Selling and marketing	300,111	193,885	513,120	385,121
General and administrative	915,470	813,242	1,753,468	1,621,460
Total operating costs and expenses	1,744,663	1,571,660	3,295,123	3,128,083
Operating loss	(1,204,291)	(1,060,697)	(2,203,394)	(2,106,641)
Other (expense) income:
Interest expense, net	(1,983,112)	(1,010,236)	(3,509,744)	(1,845,380)
Other expense	(80)		(1,039)	(912)
Impairment loss on investment			(6,069)
Incentive warrants for warrant exercises	(186,802)		(186,802)
Change in fair value of derivative liabilities	2,790,525	3,032,762	(271,227)	(1,035,628)
Total other income (expense)	620,531	2,022,526	(3,974,881)	(2,881,920)
Net (loss) income	$ (583,760)	$ 961,829	$ (6,178,275)	$ (4,988,561)
Net (loss) income per share attributable to common stockholders - basic	$ (0.54)	$ 1.11	$ (5.83)	$ (6.11)
Net (loss) income per share attributable to common stockholders - diluted	$ (0.54)	$ (0.03)	$ (5.83)	$ (6.11)
Weighted average common stock shares outstanding used in the basic net (loss) income per share calculation	1,077,529	865,128	1,059,250	816,035
Weighted average common stock shares outstanding used in the diluted net (loss) income per share calculation	1,077,529	2,358,754	1,059,250	816,035

XML

Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Comprehensive Income (Loss)
Net income (loss)	$ (583,760)	$ 961,829	$ (6,178,275)	$ (4,988,561)
Other comprehensive loss
Unrealized income (loss) on marketable securities	6,190	(73,041)	6,190	(212,739)
Comprehensive income (loss)	$ (577,570)	$ 888,788	$ (6,172,085)	$ (5,201,300)

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (6,178,275)	$ (4,988,561)
Adjustments to reconcile net loss to net cash used in operating activities:
Common stock issued for debt extension	10,000
Depreciation and amortization	4,716	12,325
Accretion of interest and amortization of debt discount	2,922,265	1,831,289
Issuance of incentive warrants	6,329,549
Gain on forgiveness of debt	(50,000)
Gain on settlement of debt		(5,044)
Stock-based compensation expense	179,511	192,311
Amortization of third party fees paid in common stock and warrants		312,200
Warrants issued for service	15,558
Shares issued for service	15,000
Impairment loss on investment	6,069
Change in fair value of derivative liabilities	271,227	1,035,628
Changes in operating assets and liabilities:
Accounts receivable	(282,728)	(397,852)
Inventories	(226,204)	35,989
Prepaid expenses and other assets	82,193	68,966
Accounts payable	338,838	(51,526)
Accrued employee compensation	310,615	20,771
Deferred revenue and other accrued expenses	4,715	65,448
Net cash used in operating activities	(2,389,698)	(1,868,056)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property plant and equipment	(16,617)	(245)
Net cash used in investing activities	(16,617)	(245)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from related party convertible debt		96,667
Net proceeds from revolving note payable	1,660,000
Net proceeds from warrant exercises	140,215
Net proceeds from convertible debt		1,417,382
Payments on convertible debt	(840,541)
Net proceeds from non-convertible debt	1,987,752	623,311
Payments on non-convertible debt	(478,141)	(314,210)
Net cash provided by financing activities	2,469,285	1,823,150
NET DECREASE IN CASH	62,970	(45,151)
CASH AT BEGINNING OF YEAR	138,363	116,783
CASH AT END OF PERIOD	201,333	71,632
SUPPLEMENTAL INFORMATION
Interest paid in cash	173,243	1,154
NON CASH TRANSACTIONS:
Discount due to warrants issued with debt	554,998
Unrealized gain from available-for-sale equity securities	6,190	(212,739)
Derivative liability released upon warrant exercise	49,327
Debt discount from derivative liability		1,304,049
Cashless exercise of warrants		11,100
Conversion of preferred stock into common stock		63,459
Convertible debt exchanged for common stock		117,837
Convertible debt held in escrow		166,882
Common stock issued with debt	297,252	10,952
Discount due to beneficial conversion feature		7,962
Discount due to warrants issued with debt		39,755
Discount from one-time interest	$ 175,000

XML

Business Overview, Liquidity and Management Plans

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Business Overview, Liquidity and Management Plans

1) Business Overview, Liquidity and Management Plans

Pressure Biosciences, Inc. (“we”, “our”, “the Company”) is focused on solving the challenging problems inherent in biological sample preparation, a crucial laboratory step performed by scientists worldwide working in biological life sciences research. Sample preparation is a term that refers to a wide range of activities that precede most forms of scientific analysis. Sample preparation is often complex, time-consuming, and in our belief, one of the most error-prone steps of scientific research. It is a widely-used laboratory undertaking, the requirements of which drive what we believe is a large and growing worldwide market. We have developed and patented a novel, enabling technology platform that can control the sample preparation process. It is based on harnessing the unique properties of high hydrostatic pressure. This process, called pressure cycling technology, or PCT, uses alternating cycles of hydrostatic pressure between ambient and ultra-high levels (35,000 psi or greater) to safely, conveniently and reproducibly control the actions of molecules in biological samples, such as cells and tissues from human, animal, plant, and microbial sources.

Our pressure cycling technology uses internally developed instrumentation that is capable of cycling pressure between ambient and ultra-high levels - at controlled temperatures and specific time intervals - to rapidly and repeatedly control the interactions of bio-molecules, such as DNA, RNA, proteins, lipids, and small molecules. Our laboratory instrument, the Barocycler®, and our internally developed consumables product line, including PULSE® (Pressure Used to Lyse Samples for Extraction) Tubes, other processing tubes, and application specific kits (which include consumable products and reagents) together make up our PCT Sample Preparation System, or PCT SPS.

In 2015, together with an investment bank, we formed a subsidiary called Pressure BioSciences Europe (“PBI Europe”) in Poland. We have 49% ownership interest with the investment bank retaining 51%. As of now, PBI Europe does not have any operating activities and we cannot reasonably predict when operations will commence. Therefore, we do not have control of the subsidiary and did not consolidate in our financial statements. PBI Europe did not have any operations in the first half of 2017 or in fiscal year 2016.

XML

Going Concern

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Going Concern

2) Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. However, we have experienced negative cash flows from operations with respect to our pressure cycling technology business since our inception. As of June 30, 2017, we do not have adequate working capital resources to satisfy our current liabilities and as a result, there is substantial doubt regarding our ability to continue as a going concern. We have been successful in raising cash through debt and equity offerings in the past and as described in Notes 6 and 7, we received $3,787,967 in net proceeds from loans and warrant exercises in the first half of 2017. We have financing efforts in place to continue to raise cash through debt and equity offerings.

Management has developed a plan to continue operations. This plan includes obtaining equity or debt financing. During the six months ended June 30, 2017 we received $3,787,967 in net proceeds from warrant exercises, additional convertible and non-convertible debt. Although we have successfully completed financings and reduced expenses in the past, we cannot assure you that our plans to address these matters in the future will be successful.

We need substantial additional capital to fund normal operations in future periods. In the event that we are unable to obtain financing on acceptable terms, or at all, we will likely be required to cease our operations, pursue a plan to sell our operating assets, or otherwise modify our business strategy, which could materially harm our future business prospects. These financial statements do not include any adjustments that might result from this uncertainty.

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Interim Financial Reporting

6 Months Ended

Jun. 30, 2017

Quarterly Financial Information Disclosure [Abstract]

Interim Financial Reporting

3) Interim Financial Reporting

The accompanying unaudited consolidated balance sheet as of December 31, 2016, which was derived from audited financial statements, and the unaudited interim consolidated financial statements of Pressure BioSciences, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America (“generally accepted accounting principles” or “GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all material adjustments (consisting of only normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months and six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. For further information, refer to the audited consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K (the “Form 10-K”) for the fiscal year ended December 31, 2016 as filed with the Securities and Exchange Commission on March 22, 2017.

On June 5, 2017, we effected a 1-for-30 reverse stock split of our common stock. All common shares, stock options, and per share information presented in the consolidated financial statements have been adjusted to reflect the reverse stock split on a retroactive basis for all periods presented. In lieu of issuing fractional shares, stockholders who otherwise would have been entitled to receive fractional shares because they held a number of shares not evenly divisible by the reverse stock split ratio were automatically entitled to receive an additional fraction of a share of Common Stock to round up to the next whole share. There was no change in the par value of the Company’s common stock. The ratio by which shares of preferred stock are convertible into shares of common stock were adjusted to reflect the effects of the reverse stock split.

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Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

4) Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of Pressure BioSciences, Inc., and its wholly-owned subsidiary PBI BioSeq, Inc. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

To prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we are required to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in projecting future cash flows to quantify deferred tax assets, the costs associated with fulfilling our warranty obligations for the instruments that we sell, and the estimates employed in our calculation of fair value of stock options awarded and warrant derivative liability. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from the estimates and assumptions used.

Concentrations

Credit Risk

Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, and trade receivables. We have cash investment policies which, among other things, limit investments to investment-grade securities. We perform ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the fact that many of our customers are government institutions, large pharmaceutical and biotechnology companies, and academic laboratories.

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2017 and 2016.

	For the Three Months Ended
	June 30,
	2017			2016
Top Five Customers		60	%		68	%
Federal Agencies		11	%		8	%

	For the Six Months Ended
	June 30,
	2017			2016
Top Five Customers		42	%		40	%
Federal Agencies		8	%		10	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2017 and December 31, 2016:

	June 30, 2017			December, 31, 2016
Top Five Customers		66	%		82	%
Federal Agencies		0	%		1	%

Product Supply

CBM Industries (Taunton, MA) has recently become the manufacturer of the Barocycler® 2320EXT. CBM is ISO 13485:2003 and 9001:2008 Certified. CBM provides us with precision manufacturing services that include management support services to meet our specific application and operational requirements. Among the services provided by CBM to us are:

● CNC Machining

● Contract Assembly & Kitting

● Component and Subassembly Design

● Inventory Management

● ISO certification

At this time, we believe that outsourcing the manufacturing of our new Barocycler® 2320EXT to CBM is the most cost-effective method for us to obtain ISO Certified, CE and CSA Marked instruments. CBM’s close proximity to our South Easton, MA facility is a significant asset enabling interactions between our Engineering, R&D, and Manufacturing groups and their counterparts at CBM. CBM was instrumental in helping PBI achieve CE Marking on our Barocycler 2320EXT, as announced on February 2, 2017.

Although we currently manufacture and assemble the Barozyme HT48, Barocycler® HUB440, the SHREDDER SG3, and most of our consumables at our South Easton, MA facility, we plan to take advantage of the established relationship with CBM and transfer manufacturing of the entire Barocycler® product line, future instruments, and other products to CBM.

The Barocycler® NEP3229, launched in 2008, and manufactured by the BIT Group, will be phased out over the next several years and replaced by the new state-of-the-art Barocycler® HUB and Barozyme HT product lines.

Investment in Available-For-Sale Equity Securities

As of June 30, 2017, we held 601,500 shares of common stock of Everest Investments Holdings S.A. (“Everest”), a Polish publicly traded company listed on the Warsaw Stock Exchange. We account for this investment in accordance with ASC 320 “Investments — Debt and Equity Securities” as securities available for sale. On June 30, 2017, our consolidated balance sheet reflected the fair value of our investment in Everest to be $25,986, based on the closing price of Everest shares of $0.04 per share on that day. The carrying value of our investment in Everest common stock held will change from period to period based on the closing price of the common stock of Everest as of the balance sheet date. The change in market value since the receipt of stock was determined to be other than temporary. We recorded $6,069 as an impairment loss in the first quarter of 2017. The carrying value increased in the current quarter by $6,190 and was reflected as an unrealized gain in our Comprehensive Loss Statement.

Computation of Loss per Share

Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For purposes of this calculation, convertible preferred stock, common stock dividends, and warrants and options to acquire common stock, are all considered common stock equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive to our net loss.

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2017 and 2016:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Numerator:
Net loss	$	(583,760	)	$	961,829		$	(6,178,275	)	$	(4,988,561	)
Accretion of interest and amortization of debt discount		-			991,286			-			-
Change in fair value of derivative liabilities		-			(2,016,593	)		-			-
Net loss applicable to common shareholders	$	(583,760	)	$	(63,478	)	$	(6,178,275	)	$	(4,988,561	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		1,077,529			865,128			1,059,250			816,035
Net effect of dilutive common stock equivalents		-			1,493,626			-			-
Weighted average shares outstanding - diluted		1,077,529			2,358,754			1,059,250			816,035
Income (loss) per common share - basic	$	(0.54	)	$	1.11		$	(5.83	)	$	(6.11	)
Income (loss) per common share - diluted	$	(0.54	)	$	(0.03	)	$	(5.83	)	$	(6.11	)

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series G Convertible Preferred Stock, Series H and H2 Convertible Preferred Stock, Series J Convertible Preferred Stock and Series K Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

	As of June 30,
	2017		2016
Stock options		250,109		179,508
Convertible debt		827,560		844,795
Common stock warrants		890,047		880,111
Convertible preferred stock:
Series D Convertible Preferred Stock		25,000		25,000
Series G Convertible Preferred Stock		28,857		28,857
Series H Convertible Preferred Stock		33,334		33,334
Series H2 Convertible Preferred Stock		70,000		70,000
Series J Convertible Preferred Stock		117,367		118,200
Series K Convertible Preferred Stock		227,200		227,200
		2,469,474		2,407,005

Accounting for Stock-Based Compensation Expense

We maintain equity compensation plans under which incentive stock options and non-qualified stock options are granted to employees, independent members of our Board of Directors and outside consultants. We recognize stock-based compensation expense over the requisite service period using the Black-Scholes formula to estimate the fair value of the stock options on the date of grant.

Determining Fair Value of Stock Option Grants

Valuation and Amortization Method - The fair value of each option award is estimated on the date of grant using the Black-Scholes pricing model based on certain assumptions. The estimated fair value of employee stock options is amortized to expense using the straight-line method over the vesting period.

Expected Term - The Company uses the simplified calculation of expected life, as the Company does not currently have sufficient historical exercise data on which to base an estimate of expected term. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted.

Expected Volatility - Expected volatility is based on the Company’s historical stock volatility data over the expected term of the award.

Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes valuation method on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

Forfeitures - The Company records stock-based compensation expense only for those awards that are expected to vest. The Company estimated a forfeiture rate of 5% for awards granted based on historical experience and future expectations of options vesting. The Company used this historical rate as our assumption in calculating future stock-based compensation expense.

The Company recognized stock-based compensation expense of $104,982 and $90,849 for the three months ended June 30, 2017 and 2016, respectively. The Company recognized stock-based compensation expense of $179,511 and $192,311 for the six months ended June 30, 2017 and 2016, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Consolidated Statements of Operations:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Research and development	$	22,949	$	15,650	$	38,918	$	36,031
Selling and marketing		13,447		9,803		24,334		22,493
General and administrative		68,586		65,396		116,259		133,787
Total stock-based compensation expense	$	104,982	$	90,849	$	179,511	$	192,311

Fair Value of Financial Instruments

Due to their short maturities, the carrying amounts for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair value. Long-term liabilities are primarily related to convertible debentures and deferred revenue with carrying values that approximate fair value.

Fair Value Measurements

The Company follows the guidance of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) as it related to all financial assets and financial liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

The Company generally defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions. A slight change in an unobservable input like volatility could have a significant impact on the fair value measurement of the derivative liability.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that its financial assets are classified within Level 1 and its financial liabilities are currently classified within Level 3 in the fair value hierarchy. The development of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management.

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2017:

			Fair value measurements at June 30, 2017 using:
	June 30, 2017		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		25,986		25,986		-		-
Total Financial Assets	$	25,986	$	25,986	$	-	$	-

	June 30, 2017		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Warrants Issued with Convertible Debt	$	1,950,681		-		-	$	1,950,681
Conversion Option Derivative Liabilities		907,386		-		-		907,386
Total Derivatives	$	2,858,067	$	-	$	-	$	2,858,067

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the six months ended June 30, 2017:

	December 31, 2016		Issuance fair value		Change in fair value			Settlement			June 30, 2017
Series D Preferred Stock Purchase Warrants	$	23,313	$	-	$	26,014		$	(49,327	)	$	-
Warrants Issued with Convertible Debt		1,661,795		-		288,886			-			1,950,681
Conversion Option Derivative Liabilities		951,059		-		(43,673	)		-			907,386
Total Derivatives	$	2,636,167	$	-	$	271,227		$	(49,327	)	$	2,858,067

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016:

			Fair value measurements at December 31, 2016 using:
	December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		25,865		25,865		-		-
Total Financial Assets	$	25,865	$	25,865	$	-	$	-

	December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	23,313		-		-	$	23,313
Warrants Issued with Convertible Debt		1,661,795		-		-		1,661,795
Conversion Option Derivative Liabilities		951,059		-		-		951,059
Total Derivatives	$	2,636,167	$	-	$	-	$	2,636,167

The assumptions for the binomial pricing model are represented in the table below for the warrants issued with the Convertible Debt throughout the period reflected on a per share common stock equivalent basis.

Assumptions	At Issuance Fair value			Warrants revalued at December 31, 2016			Warrants revalued at June 30, 2017
Expected life (in months)		60.0			43.0-51.0			36.0-45.0
Expected volatility		118.3-120.1	%		110.0-116.0	%		104.1-108.5	%
Risk-free interest rate		1.48-1.69	%		1.93	%		1.50	%
Exercise price	$	12.00		$	12.00		$	12.00
Fair value per warrant	$	5.70-$6.30		$	3.60-4.20		$	4.16-4.77

The assumptions for the binomial pricing model are represented in the table below for the conversion options reflected on a per share common stock equivalent basis.

Assumptions	At Issuance fair value			At Settlement fair value			Conversion options revalued at December 31, 2016			Conversion options revalued at June 30, 2017
Expected life (in months)		6.0-24.0			0-18.0			6.0-15.0			1.0-9.0
Expected volatility		104.2-153.8	%		86.9%-142.2	%		84.4-94.8	%		88.2-104.3	%
Risk-free interest rate		0.05-0.99	%		0.01-0.72	%		0.62-0.85	%		0.84-1.24	%
Exercise price	$	3.00-$10.50		$	3.00-$7.50		$	8.40		$	8.40
Fair value per conversion option	$	2.70-$8.40		$	2.10-$7.80		$	0.90-$1.80		$	0.28-$2.14

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

5) Commitments and Contingencies

Operating Leases

Our corporate offices are currently located at 14 Norfolk Avenue, South Easton, Massachusetts 02375. We are currently paying $4,800 per month, on a lease extension, signed on December 29, 2016, that expires December 31, 2017, for our corporate office. We expanded our space to include the first floor starting May 1, 2017 with an increase in monthly rent of $2,150.

On November 1, 2014 we signed a lease for lab space in Medford, MA. The lease expires December 30, 2017 and requires monthly payments of $5,385 subject to annual cost of living increases.

Rental costs are expensed as incurred. During the six months ended June 30, 2017 and 2016 we incurred $69,092 and $70,567 in rent expense, respectively for the use of our corporate office and research and development facilities.

Government Grants

We have received a $1.05 million NIH SBIR Phase II Grant. Under the grant, the NIH has committed to pay the Company to develop a high-throughput, high pressure-based DNA Shearing System for Next Generation Sequencing and other genomic applications.

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Convertible Debt and Other Debt

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Convertible Debt and Other Debt

6) Convertible Debt and Other Debt

We entered into Subscription Agreements (the “Subscription Agreement”) with various individuals (each, a “Purchaser”) between July 23, 2015 and March 31, 2016, pursuant to which the Company sold Senior Secured Convertible Debentures (the “Debentures”) and warrants to purchase shares of common stock equal to 50% of the number of shares issuable pursuant to the subscription amount (the “Warrants”) for an aggregate purchase price of $6,329,549 (the “Purchase Price”).

The Company issued a principal aggregate amount of $6,962,504 in Debentures which includes a 10% original issue discount on the Purchase Price. The Debenture does not accrue any additional interest during the first year it is outstanding but accrues interest at a rate equal to 10% per annum for the second year it is outstanding. The Debenture has a maturity date of two years from issuance. The Debenture is convertible any time after its issuance date. The Purchaser has the right to convert the Debenture into shares of the Company’s common stock at a fixed conversion price equal to $8.40 per share, subject to applicable adjustments. In the second year that the Debenture is outstanding, any interest accrued shall be payable quarterly in either cash or common stock, at the Company’s discretion.

At any time after the Issuance Date, the Company has the option, subject to certain conditions, to redeem some or all of the then outstanding principal amount of the Debenture for cash in an amount equal to the sum of (i) 120% of the then outstanding principal amount of the Debenture, (ii) accrued but unpaid interest and (iii) any liquidated damages and other amounts due in respect of the Debenture.

Warrants

The Company issued warrants exercisable into a total of 376,757 shares of our common stock. The Warrants issued in this transaction are immediately exercisable at an exercise price of $12.00 per share, subject to applicable adjustments including full ratchet anti-dilution in the event that we issue any securities at a price lower than the exercise price then in effect. The Warrants have an expiration period of five years from the original issue date. The Warrants are subject to adjustment for stock splits, stock dividends or recapitalizations and also include anti-dilution price protection for subsequent equity sales below the exercise price.

Subject to the terms and conditions of the Warrants, at any time commencing six months from the Final Closing, the Company has the right to call the Warrants for cancellation if the volume weighted average price of its Common Stock on the OTCQB (or other primary trading market or exchange on which the Common Stock is then traded) equals or exceeds three times the per share exercise price of the Warrants for 15 out of 20 consecutive trading days.

Security Agreement

In connection with the Subscription Agreement and Debenture, the Company entered into Security Agreements with the Purchasers whereby the Company agreed to grant to Purchasers an unconditional and continuing, first priority security interest in all of the assets and property of the Company to secure the prompt payment, performance and discharge in full of all of Company’s obligations under the Debentures, Warrants and the other Transaction Documents.

The Company determined that the conversion feature of the Debentures met the definition of a liability in accordance with ASC 815-40 and therefore bifurcated the conversion feature on each debt agreement and accounted for it as a derivative liability. The fair value of the conversion feature was accounted for as a note discount and are amortized to interest expense over the life of the loan. The fair value of the conversion feature was reflected in the conversion option liability line in the consolidated balance sheets.

The proceeds from these convertible debts were allocated between the host debt instrument and the convertible option based on the residual method. The estimated fair value of the convertible option was determined using a binomial formula, resulting in allocations to the convertible option and accounted for as a liability in the Company’s consolidated balance sheet. In accordance with the provisions of ASC 815-40, the gross proceeds are offset by debt discounts, which are amortized to interest expense over the expected life of the debt.

ASC 470-20 states that the proceeds from the issuance of debt with detachable stock warrants should be allocated between the debt and warrants on the basis of their relative fair market values. The debt discount will be amortized to interest expense over the two year term of these loans. We amortized $6,577,660 of the debt discount to interest expense through the second quarter of 2017. The warrants issued in connection with the convertible debentures are classified as warrant derivative liabilities because the warrants are entitled to certain rights in subsequent financings and the warrants contain “down-round protection” and therefore, do not meet the scope exception for treatment as a derivative under ASC 815, Derivatives and Hedging, (“ASC 815”). Since “down-round protection” is not an input into the calculation of the fair value of the warrants, the warrants cannot be considered indexed to the Company’s own stock which is a requirement for the scope exception as outlined under ASC 815. The estimated fair value of the warrants was determined using the binomial model, resulting in an allocation of $2,847,624 to the total warrants out of the gross proceeds of $6,329,549. The fair value will be affected by changes in inputs to that model including our stock price, expected stock price volatility, the contractual term, and the risk-free interest rate. We will continue to classify the fair value of the warrants as a liability until the warrants are exercised, expire or are amended in a way that would no longer require these warrants to be classified as a liability, whichever comes first.

The specific terms of the convertible debts and outstanding balances as of June 30, 2017 are listed in the table below.

Inception Date	Term	Loan Amount		Outstanding Balance		Original Issue Discount			Interest Rate			Deferred Finance Fees		Discount related to fair value of conversion feature and warrants/shares
July 22, 2015	24 months	$	2,180,000	$	2,180,000	$	218,000	1		10	%2	$	388,532	$	2,163,074
September 25, 2015	24 months		1,100,000		1,100,000		110,000	1		10	%2		185,956		1,022,052
October 2, 2015	24 months		150,000		150,000		15,000	1		10	%2		26,345		140,832
October 6, 2015	24 months		30,000		30,000		3,000	1		10	%2		5,168		26,721
October 14, 2015	24 months		50,000		50,000		5,000	1		10	%2		8,954		49,377
November 2, 2015	24 months		250,000		250,000		25,000	1		10	%2		43,079		222,723
November 10, 2015	24 months		50,000		50,000		5,000	1		10	%2		8,790		46,984
November 12, 2015	24 months		215,000		215,000		21,500	1		10	%2		38,518		212,399
November 20, 2015	24 months		200,000		200,000		20,000	1		10	%2		37,185		200,000
December 4, 2015	24 months		170,000		170,000		17,000	1		10	%2		37,352		170,000
December 11, 2015	24 months		360,000		360,000		36,000	1		10	%2		75,449		360,000
December 18, 2015	24 months		55,000		55,000		5,500	1		10	%2		11,714		55,000
December 31, 2015	24 months		100,000		100,000		10,000	1		10	%2		20,634		100,000
January 11, 2016	24 months		100,000		100,000		10,000	1		10	%2		24,966		80,034
January 20, 2016	24 months		50,000		50,000		5,000	1		10	%2		9,812		40,188
January 29, 2016	24 months		300,000		300,000		30,000	1		10	%2		60,887		239,113
February 26, 2016	24 months		200,000		200,000		20,000	1		10	%2		43,952		156,048
March 10, 2016	24 months		125,000		125,000		12,500	1		10	%2		18,260		106,740
March 18, 2016	24 months		360,000		360,000		36,000	1		10	%2		94,992		265,008
March 24, 2016	24 months		106,667		106,667		10,667	1		10	%2		15,427		91,240
March 31, 2016	24 months		177,882		177,882		17,788	1		10	%2		2,436		175,446
June 15, 2016	6 months		40,000		-		-			12	%		-		3,680
June 17, 2016	6 months		40,000		-		-			12	%		-		3,899
June 22, 2016	6 months		35,000		-		-			12	%		-		3,373
July 6, 2016	6 months		85,000		-		-			12	%		-		15,048
July 29, 2016	6 months		100,000		-		-			12	%		-		25,518
September 15, 2016	8 months		500,000		-		85,541			9	%		-		65,972
April 3, 2017	8 months		50,000		-		-			10	%		-		-
		$	7,179,549	$	6,329,549	$	718,496					$	1,158,408	$	6,040,469

1 The original issue discount is reflected in the first year.

2 The annual interest starts accruing in the second year.

The closings above included a total of approximately $291,000 convertible debentures purchased by related parties who were members of the Company’s Board of Directors and management and their family members.

At any time after six months from the Inception Date, the Company has the right to prepay the above Debentures in cash for 120% of the principal amount outstanding and any accrued interest.

In January 2017, we executed an amendment to the July 6, 2016 convertible note that was due on January 6, 2017. We received an extension of up to three months on the note’s due date. In exchange for the extension, we agreed to issue 1,667 shares of restricted common stock and pay the investor $10,000 for each 30-day extension. The shares issued for the extension were valued at $10,000 and recorded as interest expense. We made a payment of $34,000 in January 2017 for the first one-month extension and interest on the note from the initial close date through February 6, 2017. The Investor had the right, at any time, to convert all or part of the outstanding and unpaid principal sum and accrued interest into shares of common stock at the conversion price of $13.50. On February 28, 2017, the note was paid in full.

On April 3, 2017, we signed a six-month agreement with an investor relations firm. The agreement includes a cash payment of $10,000 plus a convertible 8-month note for $50,000 with the following significant terms: (i) convertible at $12.00/share, (ii) bears 10% annual interest, (iii) a 20% pre-payment penalty if the Company wants to pre-pay the Note, and (iv) a default rate of 18%. We terminated the agreement on June 7, 2017 and the investor relations firm agreed to forgive the loan resulting in a gain of $50,000.

Revolving Note Payable

On October 28, 2016, an accredited investor (the “Investor”) purchased from us a promissory note in the aggregate principal amount of up to $2,000,000 (the “Revolving Note”) due and payable on the earlier of October 28, 2017 (the “Maturity Date”) or on the seventh business day after the closing of a Qualified Offering (as defined in the Revolving Note). The Investor is obligated to provide us with advances of $250,000 under the Revolving Note, but the Investor shall not be required to advance more than $250,000 in any individual fifteen (15) day period and no more than $500,000 in the thirty (30) day period immediately following the date of the initial advance. We received $3,000,000 pursuant to the Revolving Note as amended and we issued to the Investor warrants to purchase 250,000 shares of our Common Stock at an exercise price per share equal to $12.00 per share. The terms of the Warrants are identical except for the exercise date, issue date, and termination date which are based on the advance date.

The Revolving Note was amended on May 2, 2017 to increase the aggregate principal amount to $3,000,000, to issue 16,667 shares of our Common Stock to the Investor, to decrease the exercise price per share of the warrants to the lower of (i) $12.00 or (ii) the per share purchase price of the shares of our Common Stock sold in the Qualified Offering, and to change the references in the Revolving Note from “the six (6) month anniversary of October 28, 2016” to “July 25, 2017.” The fair value of the 16,667 shares issued was accounted for as a note discount and are amortized to interest expense over the life of the loan. We evaluated the accounting impact of the Revolving Note amendment and deemed that the amendment did not have a material impact on our consolidated financial statements.

In the event that a Qualified Offering occurs on or prior to July 25, 2017, within seven (7) Business Days of the closing of the Qualified Offering, the Company shall pay a cash fee equal to five percent (5%) of the total outstanding amount owed by the Company to the Holder as of the closing date of the Qualified Offering or, at the option of the Company, issue to the Holder a number of restricted shares of the Company’s common stock equal to (x) five percent (5%) of the total outstanding amount owed by the Company to the Holder as of the closing date of the Qualified Offering divided by (y) the purchase price provided by the documents governing the Qualified Offering. A Qualified Offering means the completion of a public offering of the Company’s securities pursuant to which the Company receives aggregate gross proceeds of at least Seven Million United States Dollars (US$7,000,000) in consideration of the purchase of its securities and resulting in, pursuant to the effectiveness of the registration statement for such offering, the Company’s common stock being traded on the NASDAQ Capital Market, NASDAQ Global Select Market or the New York Stock Exchange.

In the event that a Qualified Offering occurs on or prior to July 25, 2017, but prior to the Maturity Date, within seven(7) Business Days of the closing of the Qualified Offering, the Company shall pay a cash fee equal to five percent (5%) of the total outstanding amount owed by the Company to the Holder as of the closing date of the Qualified Offering or, at the option of the Company, issue to the Holder a number of restricted shares of the Company’s common stock equal to (x) five percent (5%) of the total outstanding amount owed by the Company to the Holder as of the closing date of the Qualified Offering divided by (y) the purchase price provided by the documents governing the Qualified Offering.

Interest on the principal balance of the Revolving Note shall be paid in full on the Maturity Date, unless otherwise paid prior to the Maturity Date. Interest shall be assessed as follows: (i) a one-time interest of 10% on all principal amounts advanced prior to April 28, 2017; (ii) the foregoing and 4% on any amount remaining outstanding if the principal amount is repaid between April 28, 2017 and July 28, 2017; or (iii) both of the foregoing and 4% on any amount remaining outstanding if the principal amount is repaid between July 28, 2017 and October 28, 2017.

Broker fees amounting to $256,500, the one-time interest of $300,000 and the fair value of the 250,000 warrants issued to the Investor amounting to $1,034,729 were recorded as debt discounts and amortized over the term of the revolving note. The unamortized debt discounts as of June 30, 2017 related to the Revolving Note amounted to $909,017.

The following table provides a summary of the changes in convertible debt and revolving note payable, net of unamortized discount, during 2017:

	2017
Balance at January 1,	$	5,273,937
Issuance of convertible debt, face value		1,800,000
Forgiveness of Debt		(50,000	)
Deferred financing cost		(140,000	)
Debt discount related to one-time interest charge		(175,000	)
Debt discount from incentive shares to increase the Revolving Note aggregate principal limit		(150,000	)
Debt discount from shares and warrants issued with the notes		(554,998	)
Payments		(840,541	)
Accretion of interest and amortization of debt discount to interest expense through June 30,		2,753,405
Balance at June 30,		7,916,803
Less: current portion		7,916,803
Convertible debt, long-term portion	$	-

Other Notes

On January 6, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $250,000 in exchange for rights to all customer receipts until the lender is paid $322,500, which is collected at the rate of $1,280 per business day. The payments were secured by second position rights to all customer receipts until the loan has been paid in full. $138,840 of the proceeds were used to pay off the outstanding balance of a previous loan from another lender. The Company recognized a gain on the settlement of the previous loan of $5,044 which was credited to interest expense. The Company paid $2,500 in fees in connection with this loan. We received an additional $93,161 in June 2016 under the existing Merchant Agreement. The note is no longer outstanding as of June 30, 2017.

On February 8, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $100,000 in exchange for third position rights to all customer receipts until the lender is paid $129,900, which is collected at the rate of $927 per business day. The Company paid $2,000 in fees in connection with this loan. We received an additional $125,000 in June 2016 under the existing Merchant Agreement of which $48,420 was used to pay off the prior loan. The lender provided an additional $70,000 on August 16, 2016. As of June 30, 2017, the outstanding balance on this note was zero.

On August 26, 2016 we signed a Merchant Agreement with a lender. Under the agreement we received $122,465 net proceeds in exchange for rights to all customer receipts which is collected at the rate of $1,386 per business day. As of June 30, 2017, the outstanding balance on this note was zero.

On February 6, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $125,000. The Company paid $1,250 in fees in connection with this loan. Under the agreement, $16,180 was used to pay off the prior loan. The loan was no longer outstanding as of June 30, 2017.

On February 15, 2017, we received six-month, non-convertible loans in the aggregate of $220,000 from two accredited investors. We agreed to issue each investor 5,667 shares of restricted common stock. The loans earn no interest but carry a 10% original issue fee. We recorded the fair value of the shares amounting to $43,616 as debt discounts that will be amortized to interest expense during the term of the loans. The loans still remain outstanding as of June 30, 2017 with an aggregate balance of $220,000. We amortized $15,551 of debt discounts in the three months ended June 30, 2017. The unamortized debt discounts as of June 30, 2017 were $15,904.

On March 2, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $75,750. The Company paid no fees in connection with this loan. The loan was no longer outstanding as of June 30, 2017.

On March 14, 2017, we received an eight-month, non-convertible loan of $250,000 from a privately-held investment firm. The loan earns an annual interest rate of 10% and includes a 10% original issue discount. We also agreed to issue the investor 8,333 shares of restricted common stock. We recorded the fair value of the shares amounting to $51,748 as a debt discount that will be amortized to interest expense during the term of the loan. The loan still remains outstanding as of June 30, 2017 with a balance of $250,000. We amortized $7,248 of the debt discount in the three months ended June 30, 2017. The unamortized debt discount as of June 30, 2017 was $30,699.

On March 21, 2017, we received an eight-month, non-convertible loan of $170,000 from an accredited investor. The loan earns an annual interest rate of 10% and includes a 10% original issue discount. We also agreed to issue the investor 5,667 shares of restricted common stock. We recorded the fair value of the shares amounting to $35,079 as a debt discount that will be amortized to interest expense during the term of the loan. The loan still remains outstanding as of June 30, 2017 with a balance of $170,000. We amortized $2,893 of the debt discount in the three months ended June 30, 2017. The unamortized debt discount as of June 30, 2017 was $22,857.

On April 19, 2017, we received a 7-month non-convertible loan of $250,000 from a privately-held investment firm. The loan earns an annual interest rate of 10% and includes a 10% original issue discount. We agreed to issue 833 shares at closing. Until the loan is repaid, we will, over the next one hundred eighty (180) days, issue 2,500 shares to the Investor every sixty (60) days for a total issuance of 8,333 shares. We recorded the fair value of the shares amounting to $16,809 as a debt discount that will be amortized to interest expense during the term of the loan. The loan remains outstanding and we have issued 3,333 shares including the closing shares since inception of the loan. The unamortized debt discount as of June 30, 2017 was $33,169.

On May 19, 2017, we received a 45-day non-convertible loan of $630,000 from a private investor. The loan provides guaranteed interest of $63,000 and has an origination fee of $32,000. We paid a broker $31,500 in connection with this loan. We used these proceeds to pay off in full our September 2016 loan of $589,189. The unamortized debt discount as of June 30, 2017 was $2,100. The loan remains outstanding and accrues interest at a 20% annual rate from the maturity date.

On June 6, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $250,000. The Company paid $6,250 in fees in connection with this loan. Under the agreement, $119,021 was used to pay off three prior loans. The unamortized debt discount as of June 30, 2017 was $5,486. The loan still remains outstanding as of June 30, 2017 with a balance of approximately $220,000

On June 21, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $150,000. The Company paid $1,498 in fees in connection with this loan. The unamortized debt discount as of June 30, 2017 was $1,423. The loan still remains outstanding as of June 30, 2017 with a balance of approximately $140,000.

The total amortized expense for non-convertible debt during the six months period ended June 30, 2017 was $168,860.

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Stockholders' Deficit

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Stockholders' Deficit

7) Stockholders’ Deficit

Preferred Stock

We are authorized to issue 1,000,000 shares of preferred stock with a par value of $0.01. Of the 1,000,000 shares of preferred stock:

1)	20,000 shares have been designated as Series A Junior Participating Preferred Stock (“Junior A”)
2)	313,960 shares have been designated as Series A Convertible Preferred Stock (“Series A”)
3)	279,256 shares have been designated as Series B Convertible Preferred Stock (“Series B”)
4)	88,098 shares have been designated as Series C Convertible Preferred Stock (“Series C”)
5)	850 shares have been designated as Series D Convertible Preferred Stock (“Series D”)
6)	500 shares have been designated as Series E Convertible Preferred Stock (“Series E”)
7)	240,000 shares have been designated as Series G Convertible Preferred Stock (“Series G”)
8)	10,000 shares have been designated as Series H Convertible Preferred Stock (“Series H”)
9)	21 shares have been designated as Series H2 Convertible Preferred Stock (“Series H2”)
10)	6,250 shares have been designated as Series J Convertible Preferred Stock (“Series J”)
11)	15,000 shares have been designated as Series K Convertible Preferred Stock (“Series K”)

As of June 30, 2017, there were no shares of Junior A, and Series A, B, C and E issued and outstanding. See our Annual Report on Form 10-K for the year ended December 31, 2016 for the pertinent disclosures of preferred stock.

Stock Options and Warrants

Our stockholders approved our amended 2005 Equity Incentive Plan (the “Plan”) pursuant to which an aggregate of 1,800,000 shares of our common stock were reserved for issuance upon exercise of stock options or other equity awards made under the Plan. Under the Plan, we may award stock options, shares of common stock, and other equity interests in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2017, options to acquire 35,608 shares were outstanding under the Plan.

On December 12, 2013 at the Company’s special meeting the shareholders approved the 2013 Equity Incentive Plan (the “2013 Plan”) pursuant to which 3,000,000 shares of our common stock were reserved for issuance upon exercise of stock options or other equity awards. Under the 2013 Plan, we may award stock options, shares of common stock, and other equity interests in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2017, options to acquire 84,564 shares were outstanding under the Plan with 2,915,436 shares available for future grants under the 2013 Plan.

On November 29, 2015 the Company’s Board of Directors adopted the 2015 Nonqualified Stock Option Plan (the “2015 Plan”) pursuant to which 5,000,000 shares of our common stock were reserved for issuance upon exercise of non-qualified stock options. Under the 2015 Plan, we may award non-qualified stock options in the Company to employees, officers, directors, consultants, and advisors, and to any other persons the Board of Directors deems appropriate. As of June 30, 2017, non-qualified options to acquire 129,937 shares were outstanding under the Plan with 4,870,063 shares available for future grants under the 2015 Plan.

All of the outstanding non-qualified options had an exercise price that was at or above the Company’s common stock share price at time of issuance.

The following tables summarize information concerning options and warrants outstanding and exercisable:

	Stock Options					Warrants
	Weighted					Weighted
	Average					Average								Total
	Shares			Price per share		Shares			Price per share		Shares			Exercisable
Balance outstanding, 12/31/16		175,642		$	12.60		881,990		$	12.00		1,057,632			991,032
Granted		87,198			8.40		188,944			11.10		276,142
Exercised		—					(19,889	)		7.50		(19,889	)
Expired		(2,868	)		30.00		(160,998	)		11.10		(163,866	)
Forfeited		(9,863	)		10.12		—			—		(9,863	)
Balance outstanding, 6/30/2017		250,109		$	10.95		890,047		$	12.00		1,140,156			1,031,492

	Options Outstanding						Options Exercisable
	Weighted Average						Weighted Average
Range of Exercise Prices	Number of Options		Remaining Contractual Life (Years)		Exercise Price		Number of Options		Remaining Contractual Life (Years)		Exercise Price
$9.00 - $11.99		135,663		8.8	$	8.62		58,200		7.7	$	8.89
12.00 – 14.99		88,705		8.2		12.00		57,504		8.1		12.00
15.00 – 17.99		7,547		5.1		15.00		7,547		5.1		15.00
18.00 – 20.99		10,350		2.6		18.00		12,854		2.6		18.00
21.00 – 30.00		7,844		3.0		30.00		5,340		3.0		30.00
$9.00 - $30.00		250,109		8.0	$	10.95		141,445		7.1	$	12.11

As of June 30, 2017, the total estimated fair value of unvested stock options to be amortized over their remaining vesting period was $593,019. The non-cash, stock-based compensation expense associated with the vesting of these options is expected to be $191,466 remaining in 2017, $272,539 in 2018, $106,477 in 2019 and $22,537 in 2020. The fair value of options granted in 2017 was $487,914.

The aggregate intrinsic value associated with the options outstanding and exercisable as of June 30, 2017 was zero. The aggregate intrinsic value associated with the warrants outstanding and exercisable as of June 30, 2017 was zero.

In January 2017, we issued warrants to purchase 3,334 shares of restricted common stock with a fair value of $15,558 to an investor relations firm for services performed.

Common Stock Issuances

On various dates from January to March 2017, the Company issued 27,000 shares of restricted common stock to investors as compensation for loans provided to us.

We issued 1,667 shares of restricted common stock with a fair value of $15,000 to an investor relations firm.

On April 19, 2017, we received a 7-month non-convertible loan of $250,000 from a privately-held investment firm. The loan earns an annual interest rate of 10% and includes a 10% original issue discount. We agreed to issue 833 shares at closing. Until the loan is repaid, we will, over the next one hundred eighty (180) days, issue 2,500 shares to the Investor every sixty (60) days for a total issuance of 8,333 shares. The loan remains outstanding and we have issued 3,333 shares including the closing shares since inception of the loan.

The Revolving Note was amended on May 2, 2017 to increase the aggregate principal amount to $3,000,000. In exchange for this increase, we agreed to issue 16,667 shares of our Common Stock to the Investor, to decrease the exercise price per share of the warrants to the lower of (i) $12.00 or (ii) the per share purchase price of the shares of our Common Stock sold in a qualified offering, and to change the trigger date in the Revolving Note from the six month anniversary of October 28, 2016 to July 25, 2017.

On May 10, 2017, we received $149,164 from the exercise of 19,889 stock purchase warrants from the Series D registered direct offering on November 10, 2011. We paid $8,949 to a broker in connection with the warrant exercises. In consideration for the warrant exercises, we issued to the investors warrants to purchase 39,778 shares of our Common Stock at an exercise price per share equal to $8.40 per share. The warrants expire on the third year anniversary date. We determined the fair value of $186,802 for these warrants and recorded the value as other expenses.

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Subsequent Events

6 Months Ended

Jun. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

8) Subsequent Events

On July 17, 2017, we signed a Merchant Agreement with a lender. Under the agreement we received a loan of $125,000. The Company paid $1,250 in fees in connection with this loan.

On August 1, 2017, we received a 6-month non-convertible loan of $75,000 from a privately-held investment firm. The Company paid total fees of $18,750 including original issue discount, interest, and other costs related to this loan.

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of Pressure BioSciences, Inc., and its wholly-owned subsidiary PBI BioSeq, Inc. All intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

Use of Estimates

To prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, we are required to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. In addition, significant estimates were made in projecting future cash flows to quantify deferred tax assets, the costs associated with fulfilling our warranty obligations for the instruments that we sell, and the estimates employed in our calculation of fair value of stock options awarded and warrant derivative liability. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ from the estimates and assumptions used.

Concentrations Credit Risk

Concentrations

Credit Risk

Our financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash, cash equivalents, and trade receivables. We have cash investment policies which, among other things, limit investments to investment-grade securities. We perform ongoing credit evaluations of our customers, and the risk with respect to trade receivables is further mitigated by the fact that many of our customers are government institutions, large pharmaceutical and biotechnology companies, and academic laboratories.

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2017 and 2016.

	For the Three Months Ended
	June 30,
	2017			2016
Top Five Customers		60	%		68	%
Federal Agencies		11	%		8	%

	For the Six Months Ended
	June 30,
	2017			2016
Top Five Customers		42	%		40	%
Federal Agencies		8	%		10	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2017 and December 31, 2016:

	June 30, 2017			December, 31, 2016
Top Five Customers		66	%		82	%
Federal Agencies		0	%		1	%

Product Supply

Product Supply

CBM Industries (Taunton, MA) has recently become the manufacturer of the Barocycler® 2320EXT. CBM is ISO 13485:2003 and 9001:2008 Certified. CBM provides us with precision manufacturing services that include management support services to meet our specific application and operational requirements. Among the services provided by CBM to us are:

● CNC Machining

● Contract Assembly & Kitting

● Component and Subassembly Design

● Inventory Management

● ISO certification

At this time, we believe that outsourcing the manufacturing of our new Barocycler® 2320EXT to CBM is the most cost-effective method for us to obtain ISO Certified, CE and CSA Marked instruments. CBM’s close proximity to our South Easton, MA facility is a significant asset enabling interactions between our Engineering, R&D, and Manufacturing groups and their counterparts at CBM. CBM was instrumental in helping PBI achieve CE Marking on our Barocycler 2320EXT, as announced on February 2, 2017.

Although we currently manufacture and assemble the Barozyme HT48, Barocycler® HUB440, the SHREDDER SG3, and most of our consumables at our South Easton, MA facility, we plan to take advantage of the established relationship with CBM and transfer manufacturing of the entire Barocycler® product line, future instruments, and other products to CBM.

The Barocycler® NEP3229, launched in 2008, and manufactured by the BIT Group, will be phased out over the next several years and replaced by the new state-of-the-art Barocycler® HUB and Barozyme HT product lines.

Investment in Available-For-Sale Equity Securities

Investment in Available-For-Sale Equity Securities

As of June 30, 2017, we held 601,500 shares of common stock of Everest Investments Holdings S.A. (“Everest”), a Polish publicly traded company listed on the Warsaw Stock Exchange. We account for this investment in accordance with ASC 320 “Investments — Debt and Equity Securities” as securities available for sale. On June 30, 2017, our consolidated balance sheet reflected the fair value of our investment in Everest to be $25,986, based on the closing price of Everest shares of $0.04 per share on that day. The carrying value of our investment in Everest common stock held will change from period to period based on the closing price of the common stock of Everest as of the balance sheet date. The change in market value since the receipt of stock was determined to be other than temporary. We recorded $6,069 as an impairment loss in the first quarter of 2017. The carrying value increased in the current quarter by $6,190 and was reflected as an unrealized gain in our Comprehensive Loss Statement.

Computation of Loss per Share

Computation of Loss per Share

Basic loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding. Diluted loss per share is computed by dividing loss available to common shareholders by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For purposes of this calculation, convertible preferred stock, common stock dividends, and warrants and options to acquire common stock, are all considered common stock equivalents in periods in which they have a dilutive effect and are excluded from this calculation in periods in which these are anti-dilutive to our net loss.

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2017 and 2016:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Numerator:
Net loss	$	(583,760	)	$	961,829		$	(6,178,275	)	$	(4,988,561	)
Accretion of interest and amortization of debt discount		-			991,286			-			-
Change in fair value of derivative liabilities		-			(2,016,593	)		-			-
Preferred dividends accrued		-						-			-
Net loss applicable to common shareholders	$	(583,760	)	$	(763,478	)	$	(6,178,275	)	$	(4,988,561	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		1,077,529			865,128			1,059,250			816,035
Net effect of dilutive common stock equivalents		-			1,493,626			-			-
Weighted average shares outstanding - diluted		1,077,529			2,358,754			1,059,250			816,035
Income (loss) per common share - basic	$	(0.54	)	$	1.11		$	(5.83	)	$	(6.11	)
Income (loss) per common share - diluted	$	(0.54	)	$	(0.32	)	$	(5.83	)	$	(6.11	)

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series G Convertible Preferred Stock, Series H Convertible Preferred Stock, Series J Convertible Preferred Stock and Series K Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

	As of June 30,
	2017		2016
Stock options		250,109		179,508
Convertible debt		827,560		844,795
Common stock warrants		890,047		880,111
Convertible preferred stock:
Series D Convertible Preferred Stock		25,000		25,000
Series G Convertible Preferred Stock		28,857		28,857
Series H Convertible Preferred Stock		33,334		33,333
Series H2 Convertible Preferred Stock		70,000		70,000
Series J Convertible Preferred Stock		117,367		118,200
Series K Convertible Preferred Stock		227,200		227,200
		2,469,474		2,407,004

Accounting for Stock-Based Compensation

Accounting for Stock-Based Compensation Expense

We maintain equity compensation plans under which incentive stock options and non-qualified stock options are granted to employees, independent members of our Board of Directors and outside consultants. We recognize stock-based compensation expense over the requisite service period using the Black-Scholes formula to estimate the fair value of the stock options on the date of grant.

Determining Fair Value of Stock Option Grants

Valuation and Amortization Method - The fair value of each option award is estimated on the date of grant using the Black-Scholes pricing model based on certain assumptions. The estimated fair value of employee stock options is amortized to expense using the straight-line method over the vesting period.

Expected Term - The Company uses the simplified calculation of expected life, as the Company does not currently have sufficient historical exercise data on which to base an estimate of expected term. Using this method, the expected term is determined using the average of the vesting period and the contractual life of the stock options granted.

Expected Volatility - Expected volatility is based on the Company’s historical stock volatility data over the expected term of the award.

Risk-Free Interest Rate - The Company bases the risk-free interest rate used in the Black-Scholes valuation method on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term.

Forfeitures - The Company records stock-based compensation expense only for those awards that are expected to vest. The Company estimated a forfeiture rate of 5% for awards granted based on historical experience and future expectations of options vesting. The Company used this historical rate as our assumption in calculating future stock-based compensation expense.

The Company recognized stock-based compensation expense of $104,982 and $90,849 for the three months ended June 30, 2017 and 2016, respectively. The Company recognized stock-based compensation expense of $179,511 and $192,311 for the six months ended June 30, 2017 and 2016, respectively. The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Consolidated Statements of Operations:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Research and development	$	22,949	$	15,650	$	38,918	$	36,031
Selling and marketing		13,447		9,803		24,334		22,493
General and administrative		68,586		65,396		116,259		133,787
Total stock-based compensation expense	$	104,982	$	90,849	$	179,511	$	192,311

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Due to their short maturities, the carrying amounts for cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses approximate their fair value. Long-term liabilities are primarily related to convertible debentures and deferred revenue with carrying values that approximate fair value.

Fair Value Measurements

Fair Value Measurements

The Company follows the guidance of FASB ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”) as it related to all financial assets and financial liabilities that are recognized or disclosed at fair value in the financial statements on a recurring basis.

The Company generally defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). The Company uses a three-tier fair value hierarchy, which classifies the inputs used in measuring fair values. These tiers include: Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring the Company to develop its own assumptions. A slight change in an unobservable input like volatility could have a significant impact on the fair value measurement of the derivative liability.

Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company has determined that its financial assets are classified within Level 1 and its financial liabilities are currently classified within Level 3 in the fair value hierarchy. The development of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s management.

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2017:

			Fair value measurements at June 30, 2017 using:
	June 30, 2017		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		25,986		25,986		-		-
Total Financial Assets	$	25,986	$	25,986	$	-	$	-

	June 30, 2017		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Warrants Issued with Convertible Debt	$	1,950,681		-		-	$	1,950,681
Conversion Option Derivative Liabilities		907,386		-		-		907,386
Total Derivatives	$	2,858,067	$	-	$	-	$	2,858,067

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the six months ended June 30, 2017:

	December 31, 2016		Issuance fair value		Change in fair value			Settlement					June 30, 2017
Series D Preferred Stock Purchase Warrants	$	23,313	$	-	$	26,014		$	(49,327	)	$		$	-
Warrants Issued with Convertible Debt		1,661,795		-		288,886								1,950,681
Conversion Option Derivative Liabilities		951,059		-		(43,673	)							907,386
Total Derivatives	$	2,636,167	$	-	$	271,227		$	(49,327	)	$	)	$	2,858,067

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016:

			Fair value measurements at December 31, 2016 using:
	December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		25,865		25,865		-		-
Total Financial Assets	$	25,865	$	25,865	$	-	$	-

	December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	23,313		-		-	$	23,313
Warrants Issued with Convertible Debt		1,661,795		-		-		1,661,795
Conversion Option Derivative Liabilities		951,059		-		-		951,059
Total Derivatives	$	2,636,167	$	-	$	-	$	2,636,167

The assumptions for the binomial pricing model are represented in the table below for the warrants issued with the Convertible Debt throughout the period reflected on a per share common stock equivalent basis.

Assumptions	At Issuance Fair value			Warrants revalued at December 31, 2016			Warrants revalued at June 30, 2017
Expected life (in months)		60.0			43.0-51.0			36.0-45.0
Expected volatility		118.3-120.1	%		110.0-116.0	%		104.1-108.5	%
Risk-free interest rate		1.48-1.69	%		1.93	%		1.50	%
Exercise price	$	12.00		$	12.00		$	12.00
Fair value per warrant	$	5.70-$6.30		$	3.60-4.20		$	4.16-4.77

The assumptions for the binomial pricing model are represented in the table below for the conversion options reflected on a per share common stock equivalent basis.

Assumptions	At Issuance fair value			At Settlement fair value			Conversion options revalued at December 31, 2016			Conversion options revalued at June 30, 2017
Expected life (in months)		6.0-24.0			0-18.0			6.0-15.0			1.0-9.0
Expected volatility		104.2-153.8	%		86.9%-142.2	%		84.4-94.8	%		88.2-104.3	%
Risk-free interest rate		0.05-0.99	%		0.01-0.72	%		0.62-0.85	%		0.84-1.24	%
Exercise price	$	3.00-$10.50		$	3.00-$7.50		$	8.40		$	8.40
Fair value per conversion option	$	2.70-$8.40		$	2.10-$7.80		$	0.90-$1.80		$	0.28-$2.14

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Summary of Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Summary of Customer Concentration Risk Percentage

The following table illustrates the level of concentration as a percentage of total revenues during the three months and six months ended June 30, 2017 and 2016.

	For the Three Months Ended
	June 30,
	2017			2016
Top Five Customers		60	%		68	%
Federal Agencies		11	%		8	%

	For the Six Months Ended
	June 30,
	2017			2016
Top Five Customers		42	%		40	%
Federal Agencies		8	%		10	%

The following table illustrates the level of concentration as a percentage of net accounts receivable balance as of June 30, 2017 and December 31, 2016:

	June 30, 2017			December, 31, 2016
Top Five Customers		66	%		82	%
Federal Agencies		0	%		1	%

Summary of Computation of Loss per Share

The following table illustrates our computation of loss per share for the three months and six months ended June 30, 2017 and 2016:

	For the Three Months Ended						For the Six Months Ended
	June 30,						June 30,
	2017			2016			2017			2016
Numerator:
Net loss	$	(583,760	)	$	961,829		$	(6,178,275	)	$	(4,988,561	)
Accretion of interest and amortization of debt discount		-			991,286			-			-
Change in fair value of derivative liabilities		-			(2,016,593	)		-			-
Net loss applicable to common shareholders	$	(583,760	)	$	(63,478	)	$	(6,178,275	)	$	(4,988,561	)
Denominator for basic and diluted loss per share:
Weighted average common stock shares outstanding		1,077,529			865,128			1,059,250			816,035
Net effect of dilutive common stock equivalents		-			1,493,626			-			-
Weighted average shares outstanding - diluted		1,077,529			2,358,754			1,059,250			816,035
Income (loss) per common share - basic	$	(0.54	)	$	1.11		$	(5.83	)	$	(6.11	)
Income (loss) per common share - diluted	$	(0.54	)	$	(0.03	)	$	(5.83	)	$	(6.11	)

Summary of Anti-dilutive Securities Excluded from Computation of Earnings per Share

The following table presents securities that could potentially dilute basic loss per share in the future. For all periods presented, the potentially dilutive securities were not included in the computation of diluted loss per share because these securities would have been anti-dilutive to our net loss. The Series D Convertible Preferred Stock, Series G Convertible Preferred Stock, Series H and H2 Convertible Preferred Stock, Series J Convertible Preferred Stock and Series K Convertible Preferred Stock are presented below as if they were converted into common shares according to the conversion terms.

	As of June 30,
	2017		2016
Stock options		250,109		179,508
Convertible debt		827,560		844,795
Common stock warrants		890,047		880,111
Convertible preferred stock:
Series D Convertible Preferred Stock		25,000		25,000
Series G Convertible Preferred Stock		28,857		28,857
Series H Convertible Preferred Stock		33,334		33,334
Series H2 Convertible Preferred Stock		70,000		70,000
Series J Convertible Preferred Stock		117,367		118,200
Series K Convertible Preferred Stock		227,200		227,200
		2,469,474		2,407,005

Summary of Stock Based Compensation Expense

The following table summarizes the effect of this stock-based compensation expense within each of the line items of our costs and expenses within our Consolidated Statements of Operations:

	For the Three Months Ended				For the Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Research and development	$	22,949	$	15,650	$	38,918	$	36,031
Selling and marketing		13,447		9,803		24,334		22,493
General and administrative		68,586		65,396		116,259		133,787
Total stock-based compensation expense	$	104,982	$	90,849	$	179,511	$	192,311

Schedule of Liabilities Measured at Fair Value on Recurring Basis

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2017:

			Fair value measurements at June 30, 2017 using:
	June 30, 2017		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		25,986		25,986		-		-
Total Financial Assets	$	25,986	$	25,986	$	-	$	-

	June 30, 2017		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Warrants Issued with Convertible Debt	$	1,950,681		-		-	$	1,950,681
Conversion Option Derivative Liabilities		907,386		-		-		907,386
Total Derivatives	$	2,858,067	$	-	$	-	$	2,858,067

The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs for the six months ended June 30, 2017:

	December 31, 2016		Issuance fair value		Change in fair value			Settlement			June 30, 2017
Series D Preferred Stock Purchase Warrants	$	23,313	$	-	$	26,014		$	(49,327	)	$	-
Warrants Issued with Convertible Debt		1,661,795		-		288,886			-			1,950,681
Conversion Option Derivative Liabilities		951,059		-		(43,673	)		-			907,386
Total Derivatives	$	2,636,167	$	-	$	271,227		$	(49,327	)	$	2,858,067

The following tables set forth the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016:

			Fair value measurements at December 31, 2016 using:
	December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Available-For-Sale Equity Securities		25,865		25,865		-		-
Total Financial Assets	$	25,865	$	25,865	$	-	$	-

	December 31, 2016		Quoted prices in active markets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)
Series D Preferred Stock Purchase Warrants	$	23,313		-		-	$	23,313
Warrants Issued with Convertible Debt		1,661,795		-		-		1,661,795
Conversion Option Derivative Liabilities		951,059		-		-		951,059
Total Derivatives	$	2,636,167	$	-	$	-	$	2,636,167

Schedule of Fair Value Assumptions

The assumptions for the binomial pricing model are represented in the table below for the warrants issued with the Convertible Debt throughout the period reflected on a per share common stock equivalent basis.

Assumptions	At Issuance Fair value			Warrants revalued at December 31, 2016			Warrants revalued at June 30, 2017
Expected life (in months)		60.0			43.0-51.0			36.0-45.0
Expected volatility		118.3-120.1	%		110.0-116.0	%		104.1-108.5	%
Risk-free interest rate		1.48-1.69	%		1.93	%		1.50	%
Exercise price	$	12.00		$	12.00		$	12.00
Fair value per warrant	$	5.70-$6.30		$	3.60-4.20		$	4.16-4.77

The assumptions for the binomial pricing model are represented in the table below for the conversion options reflected on a per share common stock equivalent basis.

Assumptions	At Issuance fair value			At Settlement fair value			Conversion options revalued at December 31, 2016			Conversion options revalued at June 30, 2017
Expected life (in months)		6.0-24.0			0-18.0			6.0-15.0			1.0-9.0
Expected volatility		104.2-153.8	%		86.9%-142.2	%		84.4-94.8	%		88.2-104.3	%
Risk-free interest rate		0.05-0.99	%		0.01-0.72	%		0.62-0.85	%		0.84-1.24	%
Exercise price	$	3.00-$10.50		$	3.00-$7.50		$	8.40		$	8.40
Fair value per conversion option	$	2.70-$8.40		$	2.10-$7.80		$	0.90-$1.80		$	0.28-$2.14

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Convertible Debt and Other Debt (Tables)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Schedule of Convertible Debts and Outstanding Balances

The specific terms of the convertible debts and outstanding balances as of June 30, 2017 are listed in the table below.

Inception Date	Term	Loan Amount		Outstanding Balance		Original Issue Discount			Interest Rate			Deferred Finance Fees		Discount related to fair value of conversion feature and warrants/shares
July 22, 2015	24 months	$	2,180,000	$	2,180,000	$	218,000	1		10	%2	$	388,532	$	2,163,074
September 25, 2015	24 months		1,100,000		1,100,000		110,000	1		10	%2		185,956		1,022,052
October 2, 2015	24 months		150,000		150,000		15,000	1		10	%2		26,345		140,832
October 6, 2015	24 months		30,000		30,000		3,000	1		10	%2		5,168		26,721
October 14, 2015	24 months		50,000		50,000		5,000	1		10	%2		8,954		49,377
November 2, 2015	24 months		250,000		250,000		25,000	1		10	%2		43,079		222,723
November 10, 2015	24 months		50,000		50,000		5,000	1		10	%2		8,790		46,984
November 12, 2015	24 months		215,000		215,000		21,500	1		10	%2		38,518		212,399
November 20, 2015	24 months		200,000		200,000		20,000	1		10	%2		37,185		200,000
December 4, 2015	24 months		170,000		170,000		17,000	1		10	%2		37,352		170,000
December 11, 2015	24 months		360,000		360,000		36,000	1		10	%2		75,449		360,000
December 18, 2015	24 months		55,000		55,000		5,500	1		10	%2		11,714		55,000
December 31, 2015	24 months		100,000		100,000		10,000	1		10	%2		20,634		100,000
January 11, 2016	24 months		100,000		100,000		10,000	1		10	%2		24,966		80,034
January 20, 2016	24 months		50,000		50,000		5,000	1		10	%2		9,812		40,188
January 29, 2016	24 months		300,000		300,000		30,000	1		10	%2		60,887		239,113
February 26, 2016	24 months		200,000		200,000		20,000	1		10	%2		43,952		156,048
March 10, 2016	24 months		125,000		125,000		12,500	1		10	%2		18,260		106,740
March 18, 2016	24 months		360,000		360,000		36,000	1		10	%2		94,992		265,008
March 24, 2016	24 months		106,667		106,667		10,667	1		10	%2		15,427		91,240
March 31, 2016	24 months		177,882		177,882		17,788	1		10	%2		2,436		175,446
June 15, 2016	6 months		40,000		-		-			12	%		-		3,680
June 17, 2016	6 months		40,000		-		-			12	%		-		3,899
June 22, 2016	6 months		35,000		-		-			12	%		-		3,373
July 6, 2016	6 months		85,000		-		-			12	%		-		15,048
July 29, 2016	6 months		100,000		-		-			12	%		-		25,518
September 15, 2016	8 months		500,000		-		85,541			9	%		-		65,972
April 3, 2017	8 months		50,000		-		-			10	%		-		-
		$	7,179,549	$	6,329,549	$	718,496					$	1,158,408	$	6,040,469

Summary of Changes in Convertible Debt, Net of Unamortized Discounts

The following table provides a summary of the changes in convertible debt and revolving note payable, net of unamortized discount, during 2017:

	2017
Balance at January 1,	$	5,273,937
Issuance of convertible debt, face value		1,800,000
Forgiveness of Debt		(50,000	)
Deferred financing cost		(140,000	)
Debt discount related to one-time interest charge		(175,000	)
Debt discount from incentive shares to increase the Revolving Note aggregate principal limit		(150,000	)
Debt discount from shares and warrants issued with the notes		(554,998	)
Payments		(840,541	)
Accretion of interest and amortization of debt discount to interest expense through June 30,		2,753,405
Balance at June 30,		7,916,803
Less: current portion		7,916,803
Convertible debt, long-term portion	$	-

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Stockholders' Deficit (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Schedule of Concerning Options and Warrants Outstanding and Exercisable

The following tables summarize information concerning options and warrants outstanding and exercisable:

	Stock Options					Warrants
	Weighted					Weighted
	Average					Average								Total
	Shares			Price per share		Shares			Price per share		Shares			Exercisable
Balance outstanding, 12/31/16		175,642		$	12.60		881,990		$	12.00		1,057,632			991,032
Granted		87,198			8.40		188,944			11.10		276,142
Exercised		—					(19,889	)		7.50		(19,889	)
Expired		(2,868	)		30.00		(160,998	)		11.10		(163,866	)
Forfeited		(9,863	)		10.12		—			—		(9,863	)
Balance outstanding, 6/30/2017		250,109		$	10.95		890,047		$	12.00		1,140,156			1,031,492

Schedule of Share-based Compensation Stock Option Plans by Exercise Price Range

	Options Outstanding						Options Exercisable
	Weighted Average						Weighted Average
Range of Exercise Prices	Number of Options		Remaining Contractual Life (Years)		Exercise Price		Number of Options		Remaining Contractual Life (Years)		Exercise Price
$9.00 - $11.99		135,663		8.8	$	8.62		58,200		7.7	$	8.89
12.00 – 14.99		88,705		8.2		12.00		57,504		8.1		12.00
15.00 – 17.99		7,547		5.1		15.00		7,547		5.1		15.00
18.00 – 20.99		10,350		2.6		18.00		12,854		2.6		18.00
21.00 – 30.00		7,844		3.0		30.00		5,340		3.0		30.00
$9.00 - $30.00		250,109		8.0	$	10.95		141,445		7.1	$	12.11

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Business Overview, Liquidity and Management Plans (Details Narrative)	6 Months Ended
	Jun. 30, 2017 lb
Pounds per square inch	35,000
PBI Europe [Member]
Percentage of ownership interest	49.00%
Investment Bank [Member]
Percentage of ownership interest	51.00%

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Going Concern (Details Narrative)	6 Months Ended
	Jun. 30, 2017 USD ($)
Going Concern Details Narrative
Gross proceeds from loans	$ 3,787,967
Net proceeds from additional convertible and non-convertible debt	$ 3,787,967

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Summary of Significant Accounting Policies (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Impairment loss on investment			$ 6,069
Accumulated other comprehensive income	$ 6,190		6,190
Stock-based compensation expense	104,982	$ 90,849	$ 179,511	$ 192,311
Everest Investments Holdings S.A. [Member]
Sale of stock number of shares received			601,500
Fair value of investment	$ 25,986		$ 25,986
Shares closing price per share	$ 0.04		$ 0.04

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Summary of Significant Accounting Policies - Summary of Customer Concentration Risk Percentage (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Top Five Customers [Member] | Revenue [Member]
Concentration as a percentage	60.00%	68.00%	42.00%	40.00%
Top Five Customers [Member] | Accounts Receivable [Member]
Concentration as a percentage			66.00%		82.00%
Federal Agencies [Member] | Revenue [Member]
Concentration as a percentage	8.00%	11.00%	8.00%	10.00%
Federal Agencies [Member] | Accounts Receivable [Member]
Concentration as a percentage			0.00%		1.00%

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Summary of Significant Accounting Policies - Summary of Computation of Loss per Share (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accounting Policies [Abstract]
Net loss	$ (583,760)	$ 961,829	$ (6,178,275)	$ (4,988,561)
Accretion of interest and amortization of debt discount		991,286
Change in fair value of derivative liabilities		(2,016,593)
Net loss applicable to common shareholders	$ (583,760)	$ (63,478)	$ (6,178,275)	$ (4,988,561)
Weighted average common stock shares outstanding	1,077,529	865,128	1,059,250	816,035
Net effect of dilutive common stock equivalents		1,493,626
Weighted average shares outstanding - diluted	1,077,529	2,358,754	1,059,250	816,035
Income (loss) per common share - basic	$ (0.54)	$ 1.11	$ (5.83)	$ (6.11)
Income (loss) per common share - diluted	$ (0.54)	$ (0.03)	$ (5.83)	$ (6.11)

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Summary of Significant Accounting Policies - Summary of Anti-dilutive Securities Excluded from Computation of Earnings per Share (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Total potentially dilutive shares		1,493,626
Stock Options [Member]
Total potentially dilutive shares			250,109	179,508
Convertible Debt [Member]
Total potentially dilutive shares			827,560	844,795
Common Stock Warrants [Member]
Total potentially dilutive shares			890,047	880,111
Series D Convertible Preferred Stock [Member]
Total potentially dilutive shares			25,000	25,000
Series G Convertible Preferred Stock [Member]
Total potentially dilutive shares			28,857	28,857
Series H Convertible Preferred Stock [Member]
Total potentially dilutive shares			33,334	33,334
Series H2 Convertible Preferred Stock [Member]
Total potentially dilutive shares			70,000	70,000
Series J Convertible Preferred Stock [Member]
Total potentially dilutive shares			117,367	118,200
Series K Convertible Preferred Stock [Member]
Total potentially dilutive shares			227,200	227,200
Potentially Dilutive Shares [Member]
Total potentially dilutive shares			2,469,474	2,407,005

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Summary of Significant Accounting Policies - Summary of Stock Based Compensation Expense (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Total stock-based compensation expense	$ 104,982	$ 90,849	$ 179,511	$ 192,311
Research and Development [Member]
Total stock-based compensation expense	22,949	15,650	38,918	36,031
Selling and Marketing [Member]
Total stock-based compensation expense	13,447	9,803	24,334	22,493
General and Administrative [Member]
Total stock-based compensation expense	$ 68,586	$ 65,396	$ 116,259	$ 133,787

XML

Summary of Significant Accounting Policies - Schedule of Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Total Financial Assets	$ 25,986	$ 25,865
Fair value of derivative liability	2,858,067	2,636,167
Balance	2,636,167
Issuance fair value
Change in Fair Value	271,227
Settlement	(49,327)
Balance	2,858,067
Quoted Prices in Active Markets (Level 1) [Member]
Total Financial Assets	25,986	25,865
Fair value of derivative liability		2,636,167
Significant Other Observable Inputs (Level 2) [Member]
Total Financial Assets
Fair value of derivative liability
Significant Unobservable Inputs (Level 3) [Member]
Total Financial Assets
Fair value of derivative liability	2,858,067
Available-For-Sale Equity Securities [Member]
Total Financial Assets	25,986	25,865
Balance	59,550
Available-For-Sale Equity Securities [Member] | Quoted Prices in Active Markets (Level 1) [Member]
Total Financial Assets	25,986	25,865
Available-For-Sale Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Total Financial Assets
Available-For-Sale Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Total Financial Assets
Warrants Issued with Convertible Debt [Member]
Fair value of derivative liability	1,950,681	1,661,795
Balance	1,661,795
Issuance fair value
Change in Fair Value	288,886
Balance	1,950,681
Warrants Issued with Convertible Debt [Member] | Quoted Prices in Active Markets (Level 1) [Member]
Fair value of derivative liability
Warrants Issued with Convertible Debt [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair value of derivative liability
Warrants Issued with Convertible Debt [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair value of derivative liability	1,950,681	1,661,795
Conversion Option Derivative Liabilities [Member]
Fair value of derivative liability	907,386	951,059
Balance	951,059
Issuance fair value
Change in Fair Value	(43,673)
Balance	907,386
Conversion Option Derivative Liabilities [Member] | Quoted Prices in Active Markets (Level 1) [Member]
Fair value of derivative liability
Conversion Option Derivative Liabilities [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair value of derivative liability
Conversion Option Derivative Liabilities [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair value of derivative liability	907,386	951,059
Series D Preferred Stock Purchase Warrants [Member]
Fair value of derivative liability		23,313
Balance	23,313
Issuance fair value
Change in Fair Value	26,014
Settlement	(49,327)
Balance
Series D Preferred Stock Purchase Warrants [Member] | Quoted Prices in Active Markets (Level 1) [Member]
Fair value of derivative liability
Series D Preferred Stock Purchase Warrants [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair value of derivative liability
Series D Preferred Stock Purchase Warrants [Member] | Significant Unobservable Inputs (Level 3) [Member]
Fair value of derivative liability		$ 23,313

XML

Summary of Significant Accounting Policies - Schedule of Fair Value Assumptions (Details) - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Issuance Fair Value [Member] | Minimum [Member]
Expected life (in months)	6 months
Expected volatility	104.20%
Risk-free interest rate	0.05%
Exercise price	$ 3.00
Fair value per share	$ 2.70
Issuance Fair Value [Member] | Maximum [Member]
Expected life (in months)	24 months
Expected volatility	153.80%
Risk-free interest rate	0.99%
Exercise price	$ 0.50
Fair value per share	$ 8.40
Issuance Fair Value [Member] | Warrants Issued with Convertible Debt [Member]
Expected life (in months)	60 months
Exercise price	$ 12.00
Issuance Fair Value [Member] | Warrants Issued with Convertible Debt [Member] | Minimum [Member]
Expected volatility	118.30%
Risk-free interest rate	1.48%
Fair value per share	$ 5.70
Issuance Fair Value [Member] | Warrants Issued with Convertible Debt [Member] | Maximum [Member]
Expected volatility	120.10%
Risk-free interest rate	1.69%
Fair value per share	$ 6.30
Warrants Revalued at December 31, 2016 [Member] | Warrants Issued with Convertible Debt [Member]
Risk-free interest rate		1.93%
Exercise price		$ 12.00
Warrants Revalued at December 31, 2016 [Member] | Warrants Issued with Convertible Debt [Member] | Minimum [Member]
Expected life (in months)		43 months
Expected volatility		110.00%
Fair value per share		$ 3.60
Warrants Revalued at December 31, 2016 [Member] | Warrants Issued with Convertible Debt [Member] | Maximum [Member]
Expected life (in months)		51 months
Expected volatility		116.00%
Fair value per share		$ 4.20
Warrants Revalued at June 30, 2017 [Member] | Warrants Issued with Convertible Debt [Member]
Risk-free interest rate	1.50%
Exercise price	$ 12.00
Warrants Revalued at June 30, 2017 [Member] | Warrants Issued with Convertible Debt [Member] | Minimum [Member]
Expected life (in months)	36 months
Expected volatility	104.10%
Fair value per share	$ 4.16
Warrants Revalued at June 30, 2017 [Member] | Warrants Issued with Convertible Debt [Member] | Maximum [Member]
Expected life (in months)	45 months
Expected volatility	108.50%
Fair value per share	$ 4.77
At Settlement Fair Value [Member] | Minimum [Member]
Expected life (in months)	0 months
Expected volatility	86.90%
Risk-free interest rate	0.01%
Exercise price	$ 3.00
Fair value per share	$ 2.10
At Settlement Fair Value [Member] | Maximum [Member]
Expected life (in months)	18 months
Expected volatility	142.20%
Risk-free interest rate	0.72%
Exercise price	$ 7.50
Fair value per share	7.80
Conversion Options Revalued at December 31, 2016 [Member]
Exercise price		$ 8.40
Conversion Options Revalued at December 31, 2016 [Member] | Minimum [Member]
Expected life (in months)		6 months
Expected volatility		84.40%
Risk-free interest rate		0.62%
Fair value per share		$ 0.90
Conversion Options Revalued at December 31, 2016 [Member] | Maximum [Member]
Expected life (in months)		15 months
Expected volatility		94.80%
Risk-free interest rate		0.85%
Fair value per share		$ 1.80
Conversion Options Revalued at June 30, 2017 [Member]
Exercise price	$ 8.40
Conversion Options Revalued at June 30, 2017 [Member] | Minimum [Member]
Expected life (in months)	1 month
Expected volatility	88.20%
Risk-free interest rate	0.84%
Fair value per share	$ 0.28
Conversion Options Revalued at June 30, 2017 [Member] | Maximum [Member]
Expected life (in months)	9 months
Expected volatility	104.30%
Risk-free interest rate	1.24%
Fair value per share	$ 2.14

XML

Commitments and Contingencies (Details Narrative) - USD ($)			6 Months Ended
	Dec. 29, 2016	Nov. 01, 2014	Jun. 30, 2017	Jun. 30, 2016
Rental expenses		$ 5,385	$ 69,092	$ 70,567
Lease expire date		Dec. 30, 2017
Grants receivable			1,050,000
May 1, 2017 [Member]
Rental expenses			$ 2,150
Corporate Office [Member]
Rental expenses	$ 4,800
Lease expire date	Dec. 31, 2017

XML

Convertible Debt and Other Debt (Details Narrative) - USD ($)																1 Months Ended		3 Months Ended		6 Months Ended
	Jun. 21, 2017	Jun. 06, 2017	May 19, 2017	Apr. 19, 2017	Apr. 19, 2017	Apr. 03, 2017	Mar. 21, 2017	Mar. 14, 2017	Mar. 02, 2017	Feb. 15, 2017	Feb. 06, 2017	Aug. 26, 2016	Aug. 16, 2016	Feb. 08, 2016	Jan. 06, 2016	Jan. 31, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Mar. 31, 2017	Dec. 31, 2016	Oct. 28, 2016
Debt principal amount																		$ 1,800,000		$ 1,800,000
Debt conversion price per share																						$ 13.50
Warrants rights description																				Subject to the terms and conditions of the Warrants, at any time commencing six months from the Final Closing, the Company has the right to call the Warrants for cancellation if the volume weighted average price of its Common Stock on the OTCQB (or other primary trading market or exchange on which the Common Stock is then traded) equals or exceeds three times the per share exercise price of the Warrants for 15 out of 20 consecutive trading days.
Amortized of debt discount																				$ 6,577,660
Fair value of warrant																				2,847,624
Gross proceeds from warrants																				6,329,549
Number of restricted stock issued during period																1,667
Number of restricted stock issued during period , value																$ 10,000
Interest expense																10,000		1,983,112	$ 1,010,236	3,509,744	1,845,380
Payment of debt																$ 34,000
Gain on settlement of debt																					(5,044)
Unamortized debt discount																		$ 1,037,619		1,037,619			$ 2,235,839
Proceeds from loan																				$ 3,787,967
Convertible Debentures [Member]
Prepayment of debentures, percentage																		120.00%		120.00%
Revolving Note [Member]
Fair value of warrant																				$ 25,000
Fees and commission																				256,500
One-time interest amount																				300,000
Unamortized debt discount																		$ 909,017		909,017
Revolving Note [Member] | Investor [Member]
Amortized of debt discount																				$ 1,034,729
Revolving Note [Member] | Prior to July 25, 2017 [Member]
Percentage of annual interest rates																		10.00%		10.00%
Revolving Note [Member] | Prior to April 28, 2017 [Member]
Percentage of annual interest rates																		4.00%		4.00%
Revolving Note [Member] | July 28, 2017 And October 28, 2017 [Member]
Percentage of annual interest rates																		4.00%		4.00%
Non Convertible Loan [Member]
Percentage of annual interest rates				10.00%	10.00%		10.00%	10.00%
Amortized of debt discount				$ 16,809				$ 51,748										$ 7,248		$ 168,860
Number of common stock shares issued				3,333
Unamortized debt discount																		30,699		30,699
Proceeds from loan				$ 250,000				$ 250,000
Original issue of discount percentage				10.00%	10.00%		10.00%	10.00%
Convertible debt							$ 170,000	$ 250,000
Number of shares issued				833
Non Convertible Loan [Member] | Investor [Member]
Amortized of debt discount							$ 35,079											2,893
Number of restricted stock issued during period							5,667	8,333
Unamortized debt discount																		22,857		22,857
Non Convertible Loan [Member] | Accredited Investor [Member]
Proceeds from loan							$ 170,000
Non Convertible Loan 1 [Member]
Unamortized debt discount																		33,169		33,169
Board Of Directors [Member] | Convertible Debentures [Member]
Convertible debentures issued to related parties																		$ 291,000		$ 291,000
Investor [Member]
Number of common stock shares issued					8,333
Investor [Member] | Revolving Note [Member]
Debt conversion price per share																		$ 12.00		$ 12.00
Issuance of warrants to purchase of common stock shares																								25,000
Warrant exercise price per share																								$ 12.00
Fair value of convertible note																								$ 2,000,000
Advance pursuant to revolving note																								3,000,000
Increase in debt principal amount																				$ 3,000,000
Debt instrument description																				the per share purchase price of the shares of our Common Stock sold in the Qualified Offering, and to change the references in the Revolving Note from “the six (6) month anniversary of October 28, 2016” to “July 25, 2017.”
Number of common stock shares issued																				16,667
Investor [Member] | Revolving Note [Member] | Maximum [Member] | 15 Day Period [Member]
Advance pursuant to revolving note																								500,000
Investor [Member] | Revolving Note [Member] | Maximum [Member] | 30 Day Period [Member]
Advance pursuant to revolving note																								$ 250,000
Investor [Member] | Non Convertible Loan [Member]
Number of shares issued				2,500
Investor [Member] | Non Convertible Loan [Member] | 60 Days [Member]
Number of shares issued				8,333
Holder [Member] | July 25, 2017 [Member]
Percentage of outstanding principal amount of debenture																				5.00%
Equity ownership, percentage																		5.00%		5.00%
Gross proceeds of purchase consideration																				$ 7,000,000
Private Investor [Member] | Non Convertible Loan [Member]
Percentage of annual interest rates			20.00%
Unamortized debt discount																		$ 2,100		$ 2,100
Proceeds from loan			$ 630,000
Debt fee amount			32,000
Debt instrument interst amount			63,000
Due to related parties			31,500
Private Investor [Member] | Non Convertible Loan [Member] | September 2016 Loan [Member]
Proceeds from loan			$ 589,189
Subscription Agreement [Member] | Individuals [Member] | July 23, 2015 and March 31, 2016 [Member]
Percentage of warrants to purchase shares of common stock																		50.00%		50.00%
Purchase warrants price amount																				$ 6,329,549
Debt principal amount																		$ 6,962,504		$ 6,962,504
Percentage of debt original issue discount on purchase price																				10.00%
Percentage of annual interest rates																		10.00%		10.00%
Debt conversion price per share																		$ 8.40		$ 8.40
Convertible debentures term																				2 years
Percentage of outstanding principal amount of debenture																				120.00%
Issuance of warrants to purchase of common stock shares																		376,757		376,757
Warrant exercise price per share																		$ 12.00		$ 12.00
Warrants expiration period																				5 years
Six-month agreement [Member
Payment of debt						$ 10,000
Agreement termination date						Jun. 07, 2017
Gain on settlement of debt						$ 50,000
Six-month agreement [Member | Convertible 8-month Note [Member]
Percentage of annual interest rates						10.00%
Debt conversion price per share						$ 12.00
Payment of debt						$ 50,000
Pre-payment penalty percentage						20.00%
Default interest rate						18.00%
Merchant Agreement [Member]
Other note outstanding balance																		$ 0		$ 0
Merchant Agreement [Member] | Lenders [Member]
Unamortized debt discount	$ 1,423	$ 5,486
Proceeds from loan	150,000	250,000							$ 75,750
Debt fee amount	1,498	6,250
Pay off prior loan amount		119,021
Convertible debt	$ 140,000	$ 220,000
Merchant Agreement [Member] | Non Convertible Loan [Member] | Two Accredited Investor [Member]
Amortized of debt discount																		15,551
Unamortized debt discount										$ 43,616								15,904		15,904
Proceeds from loan										$ 220,000
Original issue of discount percentage										10.00%
Convertible debt										$ 220,000
Merchant Agreement [Member] | Lender [Member]
Gain on settlement of debt															$ 5,044
Received in exchange for rights to all customer receipts														$ 100,000	250,000
Payment of other notes														129,900	322,500
Collected rate business day												$ 1,386		927	1,280
Proceeds from loan											$ 125,000				138,840
Debt fee amount														$ 2,000	2,500
Additional convertible debentures													$ 70,000		$ 93,161		$ 125,000
Pay off prior loan amount											16,180						$ 48,420		$ 48,420		$ 48,420
Proceeds from pay off outstanding balance of previous loan												$ 122,465
Loan fees paid											$ 1,250
Merchant Agreement [Member] | Lender [Member]
Other note outstanding balance																		$ 0		$ 0

XML

Convertible Debt and Other Debt - Schedule of Convertible Debts and Outstanding Balances (Details)	6 Months Ended
	Jun. 30, 2017 USD ($)
Loan Amount	$ 1,800,000
Fixed Rate Convertible Notes [Member]
Loan Amount	7,179,549
Outstanding Balance	6,329,549
Original Issue Discount	718,496
Deferred Finance Fees	1,158,408
Discount related to Fair value of conversion feature and warrants	$ 6,040,469
Fixed Rate Convertible Notes [Member] | Convertible Debt [Member]
Inception Date	Jul. 22, 2015
Term	24 months
Loan Amount	$ 2,180,000
Outstanding Balance	2,180,000
Original Issue Discount	$ 218,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 388,532
Discount related to Fair value of conversion feature and warrants	$ 2,163,074
Fixed Rate Convertible Notes [Member] | Convertible Debt Two [Member]
Inception Date	Sep. 25, 2015
Term	24 months
Loan Amount	$ 1,100,000
Outstanding Balance	1,100,000
Original Issue Discount	$ 110,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 185,956
Discount related to Fair value of conversion feature and warrants	$ 1,022,052
Fixed Rate Convertible Notes [Member] | Convertible Debt Three [Member]
Inception Date	Oct. 02, 2015
Term	24 months
Loan Amount	$ 150,000
Outstanding Balance	150,000
Original Issue Discount	$ 15,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 26,345
Discount related to Fair value of conversion feature and warrants	$ 140,832
Fixed Rate Convertible Notes [Member] | Convertible Debt Four [Member]
Inception Date	Oct. 06, 2015
Term	24 months
Loan Amount	$ 30,000
Outstanding Balance	30,000
Original Issue Discount	$ 3,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 5,168
Discount related to Fair value of conversion feature and warrants	$ 26,721
Fixed Rate Convertible Notes [Member] | Convertible Debt Five [Member]
Inception Date	Oct. 14, 2015
Term	24 months
Loan Amount	$ 50,000
Outstanding Balance	50,000
Original Issue Discount	$ 5,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 8,954
Discount related to Fair value of conversion feature and warrants	$ 49,377
Fixed Rate Convertible Notes [Member] | Convertible Debt Six [Member]
Inception Date	Nov. 02, 2015
Term	24 months
Loan Amount	$ 250,000
Outstanding Balance	250,000
Original Issue Discount	$ 25,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 43,079
Discount related to Fair value of conversion feature and warrants	$ 222,723
Fixed Rate Convertible Notes [Member] | Convertible Debt Seven [Member]
Inception Date	Nov. 10, 2015
Term	24 months
Loan Amount	$ 50,000
Outstanding Balance	50,000
Original Issue Discount	$ 5,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 8,790
Discount related to Fair value of conversion feature and warrants	$ 46,984
Fixed Rate Convertible Notes [Member] | Convertible Debt Eight [Member]
Inception Date	Nov. 12, 2015
Term	24 months
Loan Amount	$ 215,000
Outstanding Balance	215,000
Original Issue Discount	$ 21,500	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 38,518
Discount related to Fair value of conversion feature and warrants	$ 212,399
Fixed Rate Convertible Notes [Member] | Convertible Debt Nine [Member]
Inception Date	Nov. 20, 2015
Term	24 months
Loan Amount	$ 200,000
Outstanding Balance	200,000
Original Issue Discount	$ 20,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 37,185
Discount related to Fair value of conversion feature and warrants	$ 200,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Ten [Member]
Inception Date	Dec. 04, 2015
Term	24 months
Loan Amount	$ 170,000
Outstanding Balance	170,000
Original Issue Discount	$ 17,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 37,352
Discount related to Fair value of conversion feature and warrants	$ 170,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Eleven [Member]
Inception Date	Dec. 11, 2015
Term	24 months
Loan Amount	$ 360,000
Outstanding Balance	360,000
Original Issue Discount	$ 36,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 75,449
Discount related to Fair value of conversion feature and warrants	$ 360,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Twelve [Member]
Inception Date	Dec. 18, 2015
Term	24 months
Loan Amount	$ 55,000
Outstanding Balance	55,000
Original Issue Discount	$ 5,500	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 11,714
Discount related to Fair value of conversion feature and warrants	$ 55,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Thirteen [Member]
Inception Date	Dec. 31, 2015
Term	24 months
Loan Amount	$ 100,000
Outstanding Balance	100,000
Original Issue Discount	$ 10,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 20,634
Discount related to Fair value of conversion feature and warrants	$ 100,000
Fixed Rate Convertible Notes [Member] | Convertible Debt Fourteen [Member]
Inception Date	Jan. 11, 2016
Term	24 months
Loan Amount	$ 100,000
Outstanding Balance	100,000
Original Issue Discount	$ 10,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 24,966
Discount related to Fair value of conversion feature and warrants	$ 80,034
Fixed Rate Convertible Notes [Member] | Convertible Debt Fifteen [Member]
Inception Date	Jan. 20, 2016
Term	24 months
Loan Amount	$ 50,000
Outstanding Balance	50,000
Original Issue Discount	$ 5,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 9,812
Discount related to Fair value of conversion feature and warrants	$ 40,188
Fixed Rate Convertible Notes [Member] | Convertible Debt Sixteen [Member]
Inception Date	Jan. 29, 2016
Term	24 months
Loan Amount	$ 300,000
Outstanding Balance	300,000
Original Issue Discount	$ 30,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 60,887
Discount related to Fair value of conversion feature and warrants	$ 239,113
Fixed Rate Convertible Notes [Member] | Convertible Debt Seventeen [Member]
Inception Date	Feb. 26, 2016
Term	24 months
Loan Amount	$ 200,000
Outstanding Balance	200,000
Original Issue Discount	$ 20,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 43,952
Discount related to Fair value of conversion feature and warrants	$ 156,048
Fixed Rate Convertible Notes [Member] | Convertible Debt Eighteen [Member]
Inception Date	Mar. 10, 2016
Term	24 months
Loan Amount	$ 125,000
Outstanding Balance	125,000
Original Issue Discount	$ 12,500	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 18,260
Discount related to Fair value of conversion feature and warrants	$ 106,740
Fixed Rate Convertible Notes [Member] | Convertible Debt Nineteen [Member]
Inception Date	Mar. 18, 2016
Term	24 months
Loan Amount	$ 360,000
Outstanding Balance	360,000
Original Issue Discount	$ 36,000	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 94,992
Discount related to Fair value of conversion feature and warrants	$ 265,008
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty [Member]
Inception Date	Mar. 24, 2016
Term	24 months
Loan Amount	$ 106,667
Outstanding Balance	106,667
Original Issue Discount	$ 10,667	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 15,427
Discount related to Fair value of conversion feature and warrants	$ 91,240
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty One [Member]
Inception Date	Mar. 31, 2016
Term	24 months
Loan Amount	$ 177,882
Outstanding Balance	177,882
Original Issue Discount	$ 17,788	[1]
Interest Rate	10.00%	[2]
Deferred Finance Fees	$ 2,436
Discount related to Fair value of conversion feature and warrants	$ 175,446
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty Two [Member]
Inception Date	May 24, 2016
Term	7 months
Loan Amount	$ 100,000
Outstanding Balance
Original Issue Discount	$ 7,000	[1]
Interest Rate	0.00%	[2]
Deferred Finance Fees
Discount related to Fair value of conversion feature and warrants	$ 20,368
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty Three [Member]
Inception Date	Jun. 15, 2016
Term	6 months
Loan Amount	$ 40,000
Outstanding Balance
Original Issue Discount
Interest Rate	12.00%
Deferred Finance Fees
Discount related to Fair value of conversion feature and warrants	$ 3,680
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty Four [Member]
Inception Date	Jun. 17, 2016
Term	6 months
Loan Amount	$ 40,000
Outstanding Balance
Original Issue Discount
Interest Rate	12.00%
Deferred Finance Fees
Discount related to Fair value of conversion feature and warrants	$ 3,899
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty Five [Member]
Inception Date	Jun. 22, 2016
Term	6 months
Loan Amount	$ 35,000
Outstanding Balance
Original Issue Discount
Interest Rate	12.00%
Deferred Finance Fees
Discount related to Fair value of conversion feature and warrants	$ 3,373
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty Six [Member]
Inception Date	Jul. 06, 2016
Term	6 months
Loan Amount	$ 85,000
Outstanding Balance
Original Issue Discount
Interest Rate	12.00%
Deferred Finance Fees
Discount related to Fair value of conversion feature and warrants	$ 15,048
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty Seven [Member]
Inception Date	Jul. 29, 2016
Term	6 months
Loan Amount	$ 100,000
Outstanding Balance
Original Issue Discount
Interest Rate	12.00%
Deferred Finance Fees
Discount related to Fair value of conversion feature and warrants	$ 25,518
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty Eight [Member]
Inception Date	Sep. 15, 2016
Term	8 months
Loan Amount	$ 500,000
Outstanding Balance
Original Issue Discount	$ 85,541
Interest Rate	9.00%
Deferred Finance Fees
Discount related to Fair value of conversion feature and warrants	$ 65,972
Fixed Rate Convertible Notes [Member] | Convertible Debt Twenty Nine [Member]
Inception Date	Apr. 03, 2017
Term	8 months
Loan Amount	$ 50,000
Outstanding Balance
Original Issue Discount
Interest Rate	10.00%
Deferred Finance Fees
Discount related to Fair value of conversion feature and warrants

[1] The original issue discount is reflected in the first year.

[2] The annual interest starts accruing in the second year.

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Convertible Debt and Other Debt - Summary of Changes in Convertible Debt, Net of Unamortized Discounts (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Debt Disclosure [Abstract]
Balance at January 1,	$ 5,273,937
Issuance of convertible debt, face value	1,800,000
Forgiveness of Debt	(50,000)
Deferred financing cost	(140,000)
Debt discount related to one-time interest charge	(175,000)
Debt discount from incentive shares to increase the Revolving Note aggregate principal limit	(150,000)
Debt discount from shares and warrants issued with the notes	(554,998)
Payments	(840,541)
Accretion of interest and amortization of debt discount to interest expense through March 31,	2,753,405
Balance at March 31,	7,916,803
Less: current portion	7,916,803		$ 4,005,702
Convertible debt, long-term portion			$ 529,742

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Stockholders’ Deficit (Details Narrative) - USD ($)				1 Months Ended	6 Months Ended
	May 10, 2017	Apr. 19, 2017	Apr. 19, 2017	Jan. 31, 2017	Jun. 30, 2017	May 02, 2017	Mar. 21, 2017	Mar. 14, 2017	Dec. 31, 2016	Dec. 12, 2013
Convertible preferred stock, authorized					1,000,000
Convertible preferred stock, par value					$ 0.01
Convertible preferred stock, shares issued					1,000,000
Common stock, shares outstanding under the plan					1,140,156				1,057,632
Estimated fair value of unvested stock options					$ 593,019
Fair value of options granted					487,914
Aggregate intrinsic value options outstanding					0
Aggregate intrinsic value options exercisable					0
Number of restricted common stock shares issued				1,667
Number of restricted stock value				$ 10,000
Number of warrant to purchase common stock					7,082,460				$ 6,325,102
Fair value of warrant					$ 2,847,624
Revolving Note [Member]
Number of warrant to purchase common stock						$ 3,000,000
Number of warrants to purchase common stock, shares						16,667
Warrant exercise price						$ 12.00
Non Convertible Loan [Member]
Percentage of annual interest rates		10.00%	10.00%				10.00%	10.00%
Original issue of discount percentage		10.00%	10.00%				10.00%	10.00%
Number of shares issued to investor, shares			3,333
Investor [Member]
Number of shares issued to investor, shares		8,333
Investor [Member] | Every Sixty Days [Member]
Number of shares issued to investor, shares		2,500
Privately-Held Investment Firm [Member]
Percentage of annual interest rates		10.00%	10.00%
Original issue of discount percentage		10.00%	10.00%
Number of shares issued at closing		833
Number of shares issued to investor, shares		3,333
Privately-Held Investment Firm [Member] | Non Convertible Loan [Member]
Proceeds from non convertible debt			$ 250,000
Restricted Common Stock [Member]
Number of restricted common stock shares issued				3,334
Number of restricted stock value				$ 15,558
Warrants [Member]
Common stock, shares outstanding under the plan					890,047				881,990
Aggregate intrinsic value options outstanding					$ 0
Aggregate intrinsic value options exercisable					0
Remaining in 2017 [Member]
Non-cash, stock-based compensation expense					191,466
2018 [Member]
Non-cash, stock-based compensation expense					272,539
2019 [Member]
Non-cash, stock-based compensation expense					106,477
2020 [Member]
Non-cash, stock-based compensation expense					$ 22,537
2005 Equity Incentive [Member]
Common stock reserved for stock option plan					1,800,000
Common stock, shares outstanding under the plan					35,608
2013 Equity Incentive Plan [Member]
Common stock reserved for stock option plan										3,000,000
Common stock, shares outstanding under the plan										84,564
Common stock, shares available for future grant										2,915,436
2015 Equity Incentive Plan [Member]
Common stock reserved for stock option plan					5,000,000
Common stock, shares outstanding under the plan					129,937
Common stock, shares available for future grant					4,870,063
Restricted Common Stock [Member] | Investor [Member]
Number of restricted common stock shares issued					27,000
Restricted Common Stock [Member] | Investor Relations Firm [Member]
Number of restricted common stock shares issued					1,667
Number of restricted stock value					$ 15,000
Series D Registered Direct Offering [Member]
Number of shares issued to investor, shares	19,889
Number of shares issued to investor	$ 149,164
Number of warrants to purchase common stock, shares	39,778
Warrant exercise price	$ 8.40
Due to related party	$ 8,949
Fair value of warrant	$ 186,802
Series A Junior Participating Preferred Stock [Member]
Number of stock designated					20,000
Series A Convertible Preferred Stock [Member]
Number of stock designated					313,960
Series B Convertible Preferred Stock [Member]
Number of stock designated					279,256
Series C Convertible Preferred Stock [Member]
Number of stock designated					88,098
Series D Convertible Preferred Stock [Member]
Convertible preferred stock, authorized					850				850
Convertible preferred stock, par value					$ 0.01				$ .01
Convertible preferred stock, shares issued					300				300
Number of stock designated					850
Series E Convertible Preferred Stock [Member]
Number of stock designated					500
Series G Convertible Preferred Stock [Member]
Convertible preferred stock, authorized					240,000				240,000
Convertible preferred stock, par value					$ 0.01				$ 0.01
Convertible preferred stock, shares issued					86,570				86,570
Number of stock designated					240,000
Series H Convertible Preferred Stock [Member]
Convertible preferred stock, authorized					10,000				10,000
Convertible preferred stock, par value					$ 0.01				$ 0.01
Convertible preferred stock, shares issued					10,000				10,000
Number of stock designated					10,000
Series H2 Convertible Preferred Stock [Member]
Convertible preferred stock, authorized					21				21
Convertible preferred stock, par value					$ 0.01				$ 0.01
Convertible preferred stock, shares issued					21				21
Number of stock designated					21
Series J Convertible Preferred Stock [Member]
Convertible preferred stock, authorized					6,250				6,250
Convertible preferred stock, par value					$ 0.01				$ 0.01
Convertible preferred stock, shares issued					3,521				3,521
Number of stock designated					6,250
Series K Convertible Preferred Stock [Member]
Convertible preferred stock, authorized					15,000				15,000
Convertible preferred stock, par value					$ 0.01				$ 0.01
Convertible preferred stock, shares issued					6,816				6,816
Number of stock designated					15,000

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Stockholders' Deficit - Schedule of Concerning Options and Warrants Outstanding and Exercisable (Details)	6 Months Ended
	Jun. 30, 2017 $ / shares shares
Shares, Beginning balance	1,057,632
Shares, Granted	276,142
Shares, Exercised	(19,889)
Shares, Expired	(163,866)
Shares, Forfeited	(9,863)
Shares, Ending balance	1,140,156
Stock Option [Member]
Shares, Beginning balance	175,642
Shares, Granted	87,198
Shares, Exercised
Shares, Expired	(2,868)
Shares, Forfeited	(9,863)
Shares, Ending balance	250,109
Weighted average price per share, Beginning balance | $ / shares	$ 12.60
Weighted average price per share, Granted | $ / shares	8.40
Weighted average price per share, Exercised | $ / shares
Weighted average price per share, Expired | $ / shares	30.00
Weighted average price per share, Forfeited | $ / shares	10.12
Weighted average price per share, Ending balance | $ / shares	$ 10.95
Warrants [Member]
Shares, Beginning balance	881,990
Shares, Granted	188,944
Shares, Exercised	(19,889)
Shares, Expired	(160,998)
Shares, Forfeited
Shares, Ending balance	890,047
Weighted average price per share, Beginning balance | $ / shares	$ 12.00
Weighted average price per share, Granted | $ / shares	11.10
Weighted average price per share, Exercised | $ / shares	7.50
Weighted average price per share, Expired | $ / shares	11.10
Weighted average price per share, Forfeited | $ / shares
Weighted average price per share, Ending balance | $ / shares	$ 12.00
Exercisable, Beginning balance	991,032
Exercisable, Ending balance	1,031,492

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Stockholders' Deficit - Schedule of Share-based Compensation Stock Option Plans by Exercise Price Range (Details)	6 Months Ended
	Jun. 30, 2017 $ / shares shares
Exercise price range, lower range limit	$ 9.00
Exercise price range, upper range limit	$ 30.00
Options outstanding, number of options | shares	250,109
Options outstanding, weighted average remaining contractual life (years)	8 years
Options outstanding, weighted average exercise price	$ 10.95
Options exercisable, number of options | shares	141,445
Options exercisable, weighted average remaining contractual life (years)	7 years 1 month 6 days
Options exercisable, weighted average exercise price	$ 12.11
Exercise Price 1 [Member]
Exercise price range, lower range limit	9.00
Exercise price range, upper range limit	$ 11.99
Options outstanding, number of options | shares	135,663
Options outstanding, weighted average remaining contractual life (years)	8 years 29 days
Options outstanding, weighted average exercise price	$ 8.62
Options exercisable, number of options | shares	58,200
Options exercisable, weighted average remaining contractual life (years)	7 years 26 days
Options exercisable, weighted average exercise price	$ 8.89
Exercise Price 2 [Member]
Exercise price range, lower range limit	12.00
Exercise price range, upper range limit	$ 14.99
Options outstanding, number of options | shares	88,705
Options outstanding, weighted average remaining contractual life (years)	8 years 2 months 12 days
Options outstanding, weighted average exercise price	$ 12.00
Options exercisable, number of options | shares	57,504
Options exercisable, weighted average remaining contractual life (years)	8 years 1 month 6 days
Options exercisable, weighted average exercise price	$ 12.00
Exercise Price 3 [Member]
Exercise price range, lower range limit	15.00
Exercise price range, upper range limit	$ 17.99
Options outstanding, number of options | shares	7,547
Options outstanding, weighted average remaining contractual life (years)	5 years 1 month 6 days
Options outstanding, weighted average exercise price	$ 15.00
Options exercisable, number of options | shares	7,547
Options exercisable, weighted average remaining contractual life (years)	5 years 1 month 6 days
Options exercisable, weighted average exercise price	$ 15.00
Exercise Price 4 [Member]
Exercise price range, lower range limit	18.00
Exercise price range, upper range limit	$ 20.99
Options outstanding, number of options | shares	10,350
Options outstanding, weighted average remaining contractual life (years)	2 years 7 months 6 days
Options outstanding, weighted average exercise price	$ 18.00
Options exercisable, number of options | shares	12,854
Options exercisable, weighted average remaining contractual life (years)	2 years 7 months 6 days
Options exercisable, weighted average exercise price	$ 18.00
Exercise Price 5 [Member]
Exercise price range, lower range limit	21.00
Exercise price range, upper range limit	$ 30.00
Options outstanding, number of options | shares	7,844
Options outstanding, weighted average remaining contractual life (years)	3 years
Options outstanding, weighted average exercise price	$ 30.00
Options exercisable, number of options | shares	5,340
Options exercisable, weighted average remaining contractual life (years)	3 years
Options exercisable, weighted average exercise price	$ 30.00

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Subsequent Events (Details Narrative) - USD ($)				1 Months Ended	6 Months Ended
	Aug. 02, 2017	Apr. 19, 2017	Mar. 14, 2017	Jul. 17, 2017	Jun. 30, 2017
Proceeds from loan					$ 3,787,967
Non Convertible Loan [Member]
Proceeds from loan		$ 250,000	$ 250,000
Subsequent Event [Member] | Non Convertible Loan [Member]
Debt instrument, fee	$ 18,750
Proceeds from non convertible debt	$ 75,000
Subsequent Event [Member] | Merchant Agreement [Member]
Proceeds from loan				$ 125,000
Debt instrument, fee				$ 1,250