Rockwell Medical (RMTI) 10-K 15 Mar 17 2016 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2016	Feb. 17, 2017	Jun. 30, 2016
Document and Entity Information
Entity Registrant Name	ROCKWELL MEDICAL, INC.
Entity Central Index Key	1,041,024
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float			$ 318,842,000
Entity Common Stock, Shares Outstanding		51,527,711
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash and Cash Equivalents	$ 17,180,594	$ 31,198,182
Investments available for sale	40,759,703	39,482,732
Accounts Receivable, net of a reserve of $5,000 in 2016 and $75,000 in 2015	6,393,228	5,046,733
Inventory	12,141,072	7,871,780
Other Current Assets	2,034,598	1,026,889
Total Current Assets	78,509,195	84,626,316
Property and Equipment, net	1,391,575	1,646,568
Inventory, Non-Current	1,826,554
Intangible Assets	4,382	165,657
Goodwill	920,745	920,745
Other Non-current Assets	501,187	462,839
Total Assets	83,153,638	87,822,125
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts Payable	5,858,234	3,995,216
Accrued Liabilities	4,210,151	3,831,356
Customer Deposits	77,217	264,879
Total Current Liabilities	10,145,602	8,091,451
Deferred License Revenue	20,051,737	17,410,852
Shareholders' Equity:
Common Shares, no par value, 51,527,711 and 51,501,877 shares issued and outstanding	268,199,939	257,773,494
Accumulated Deficit	(214,341,092)	(194,538,176)
Accumulated Other Comprehensive Income	(902,548)	(915,496)
Total Shareholders' Equity	52,956,299	62,319,822
Total Liabilities And Shareholders' Equity	$ 83,153,638	$ 87,822,125

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
CONSOLIDATED BALANCE SHEETS
Allowance for reserve, accounts receivable (in dollars)	$ 5,000	$ 75,000
Common Shares, par value (in dollars per share)	$ 0	$ 0
Common Shares, shares issued	51,527,711	51,501,877
Common Shares, shares outstanding	51,527,711	51,501,877

CONSOLIDATED INCOME STATEMENTS

CONSOLIDATED INCOME STATEMENTS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED INCOME STATEMENTS
Sales	$ 53,284,166	$ 55,350,702	$ 54,188,444
Cost of Sales	46,531,648	46,412,848	45,643,231
Gross Profit	6,752,518	8,937,854	8,545,213
Selling, General and Administrative	21,120,901	19,078,867	18,320,720
Research and Product Development	5,840,346	4,961,313	7,783,594
Operating Income (Loss)	(20,208,729)	(15,102,326)	(17,559,101)
Interest and Investment Income, net	810,340	681,876	386,257
Interest (Expense)			(4,154,313)
Income (Loss) Before Income Taxes	(19,398,389)	(14,420,450)	(21,327,157)
Income Tax Expense	404,527	0	0
Net Income (Loss)	$ (19,802,916)	$ (14,420,450)	$ (21,327,157)
Basic Earnings (Loss) per Share	$ (0.39)	$ (0.29)	$ (0.52)
Diluted Earnings (Loss) per Share	$ (0.39)	$ (0.29)	$ (0.52)

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net Income (Loss)	$ (19,802,916)	$ (14,420,450)	$ (21,327,157)
Unrealized Gain (Loss) on Available-For-Sale Securities	13,619	(717,827)	(230,088)
Foreign Currency Translation Adjustments	(671)
Comprehensive Income (Loss)	$ (19,789,968)	$ (15,138,277)	$ (21,557,245)

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)	COMMON SHARES	PURCHASE WARRANTS	ACCUMULATED DEFICIT	ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)	Total
Balance at Dec. 31, 2013	$ 154,457,878		$ (158,790,569)	$ 32,419	$ 595,539
Balance (in shares) at Dec. 31, 2013	40,110,661
Balance (purchase warrants in shares) at Dec. 31, 2013		983,071
Balance at Dec. 31, 2013		$ 4,895,811
Increase (Decrease) in Shareholders' Equity
Net Loss			(21,327,157)		(21,327,157)
Unrealized Gain (Loss) on Available-For-Sale Securities				(230,088)	(230,088)
Issuance of Common Shares	$ 71,136,487				$ 71,136,487
Issuance of Common Shares (in shares)	9,268,460				7,816,944
Exercise of Purchase Warrants	$ 13,329,138	$ (4,895,811)			$ 8,433,327
Exercise of Purchase Warrants (in shares)	904,886	(983,071)
Stock Option Based Expense	$ 4,597,412				4,597,412
Restricted Stock Amortization	5,497,274				5,497,274
Balance at Dec. 31, 2014	$ 249,018,189		(180,117,726)	(197,669)	$ 68,702,794
Balance (in shares) at Dec. 31, 2014	50,284,007				50,284,007
Increase (Decrease) in Shareholders' Equity
Net Loss			(14,420,450)		$ (14,420,450)
Unrealized Gain (Loss) on Available-For-Sale Securities				(717,827)	(717,827)
Issuance of Common Shares	$ 4,132,250				4,132,250
Issuance of Common Shares (in shares)	1,644,248
Stock Option Based Expense	$ 5,193,481				5,193,481
Stock Tendered in Satisfaction of Tax Liabilities	$ (4,264,922)				(4,264,922)
Stock Tendered in Satisfaction of Tax Liabilities (in shares)	(426,378)
Restricted Stock Amortization	$ 3,694,496				3,694,496
Balance at Dec. 31, 2015	$ 257,773,494		(194,538,176)	(915,496)	$ 62,319,822
Balance (in shares) at Dec. 31, 2015	51,501,877				51,501,877
Balance (purchase warrants in shares) at Dec. 31, 2015					0
Increase (Decrease) in Shareholders' Equity
Net Loss			(19,802,916)		$ (19,802,916)
Unrealized Gain (Loss) on Available-For-Sale Securities				13,619	13,619
Foreign currency rate changes				(671)	(671)
Issuance of Common Shares	$ 80,161				80,161
Issuance of Common Shares (in shares)	25,834
Stock Option Based Expense	$ 5,984,524				5,984,524
Restricted Stock Amortization	4,361,760				4,361,760
Balance at Dec. 31, 2016	$ 268,199,939		$ (214,341,092)	$ (902,548)	$ 52,956,299
Balance (in shares) at Dec. 31, 2016	51,527,711				51,527,711
Balance (purchase warrants in shares) at Dec. 31, 2016					0

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flows From Operating Activities:
Net (Loss)	$ (19,802,916)	$ (14,420,450)	$ (21,327,157)
Adjustments To Reconcile Net Loss To Net Cash Used In Operating Activities:
Depreciation and Amortization	762,368	822,294	996,321
Share Based Compensation- Employees	10,346,284	8,887,977	10,094,685
Restricted Stock Retained in Satisfaction of Tax Liabilities		(2,912,859)
Loss on Disposal of Assets	8,168	5,281	7,338
(Gain) on Sale of Investments Available for Sale	26,820	58,095	1,223
Amortization of Debt Issuance Costs			882,716
Non-cash Interest Expense			874,942
Changes in Assets and Liabilities:
(Increase) Decrease in Accounts Receivable	(1,162,469)	(574,731)	106,317
(Increase) in Inventory	(6,095,846)	(3,951,595)	(1,120,537)
(Increase) in Other Assets	(1,230,084)	(360,303)	(13,466)
Increase (Decrease) in Accounts Payable	1,863,018	(1,299,299)	(3,391,638)
Increase (Decrease) in Other Liabilities	191,134	(413,652)	(2,345,486)
Increase (decrease) Deferred License Revenue	(2,065,785)	(2,081,668)	19,492,520
Increase (decrease) in Deferred International Partnership Revenue	4,706,670
Changes in Assets and Liabilities	(3,793,362)	(8,681,248)	12,727,710
Cash (Used In) Operating Activities	(12,452,638)	(16,240,910)	4,257,778
Cash Flows From Investing Activities:
Purchase of Investments Available for Sale	(25,781,853)	(21,800,000)	(13,100,000)
Sale of Investments Available for Sale	24,491,677	1,468,656	4,976,000
Purchase of Equipment	(355,264)	(815,002)	(684,593)
Proceeds from Sale of Assets	1,000	4,800
Cash Provided by (Used In) Investing Activities	(1,644,440)	(21,141,546)	(8,808,593)
Cash Flows From Financing Activities:
Proceeds from the Issuance of Common Shares and Purchase Warrants	80,161	2,780,187	79,569,815
Payments on Notes Payable and Capital Lease Obligations			(21,100,000)
Cash Provided By Financing Activities	80,161	2,780,187	58,469,815
Effects of exchange rate changes	(671)
(Decrease) Increase In Cash	(14,017,588)	(34,602,269)	53,919,000
Cash At Beginning Of Period	31,198,182	65,800,451	11,881,451
Cash At End Of Period	17,180,594	$ 31,198,182	65,800,451
Supplemental Cash Flow Information:
Interest Paid			$ 3,518,168
Income Taxes Paid	$ 404,527

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2016
Description of Business
Description of Business	1. DESCRIPTION OF BUSINESS Rockwell Medical, Inc. and Subsidiaries (collectively, “we”, “our”, “us”, or the “Company”) is a fully-integrated pharmaceutical company targeting end-stage renal disease and chronic kidney disease with innovative products for the treatment of iron deficiency, secondary hyperparathyroidism and hemodialysis. We are also an established manufacturer and leader in delivering high-quality hemodialysis concentrates/dialysates to dialysis providers and distributors in the United States and abroad. We are currently developing unique, proprietary renal drug therapies. These novel renal drug therapies support disease management initiatives to improve the quality of life and care of dialysis patients and are designed to deliver safe and effective therapy, while decreasing drug administration costs and improving patient convenience and outcome. We have obtained global licenses for certain dialysis related drugs which we are developing and planning to market. We manufacture, sell and distribute hemodialysis concentrates and other ancillary medical products and supplies used in the treatment of patients with End Stage Renal Disease, or “ESRD”. We supply our products to dialysis providers and distributors who treat patients with kidney disease. Our concentrate products are used to remove waste and replace needed nutrients in the blood of dialysis patients during their hemodialysis treatment. We primarily sell our products in the United States. We are regulated by the Federal Food and Drug Administration (“FDA”) under the Federal Drug and Cosmetics Act, as well as by other federal, state and local agencies. We hold several FDA product approvals including both drugs and medical devices.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation Our consolidated financial statements include our accounts and the accounts for our wholly owned subsidiaries, Rockwell Transportation, Inc. and Rockwell Medical India Private Limited. Rockwell Medical India Private Limited was formed in 2016 for the purpose of conducting certain commercial activities in India. All intercompany balances and transactions have been eliminated in consolidation. Revenue Recognition Our policy is to recognize revenue consistent with authoritative guidance for revenue recognition including the provisions of the Financial Accounting Standards Board Accounting Standards Codification. We recognize revenue when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery (or passage of title) has occurred or services have been rendered, (iii) the seller's price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured. Consistent with these guidelines we recognize revenue at the time we transfer title to our products to our customers which generally occurs when our products are delivered to our customer’s location consistent with our terms of sale. We recognize revenue for international shipments when title has transferred consistent with standard terms of sale. We apply judgment as we analyze each element of our contractual agreements to determine appropriate revenue recognition. The terms of our contractual agreements may include milestone payments if specified research and development objectives are achieved, non-refundable licensing fees, milestone payments on sales or royalties from product sales. When entering into an arrangement, we first determine whether the arrangement includes multiple deliverables and is subject to the accounting guidance in ASC subtopic 605-25, Multiple-Element Arrangements. If we determine that an arrangement includes multiple elements, we determine whether the arrangement should be divided into separate units of accounting and how the arrangement consideration should be measured and allocated among the separate units of accounting. An element qualifies as a separate unit of accounting when the delivered element has standalone value to the customer. Our arrangements do not include a general right of return relative to delivered elements. Any delivered elements that do not qualify as separate units of accounting are combined with other undelivered elements within the arrangement as a single unit of accounting. If the arrangement constitutes a single combined unit of accounting, we determine the revenue recognition method for the combined unit of accounting and recognize the revenue either on a straight-line basis or on a modified proportional performance method over the period from inception through the date the last deliverable within the single unit of accounting is delivered. Non-refundable upfront license fees are recorded as deferred revenue and recognized into revenue over the estimated period of our substantive performance obligations. If we do not have substantive performance obligations, we recognize non-refundable upfront fees into revenue through the date the deliverable is satisfied. Analyzing the arrangement to identify deliverables requires the use of judgment and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation. In arrangements that include license rights and other non-contingent deliverables, such as participation in a steering committee, these deliverables do not have standalone value because the non-contingent deliverables are dependent on the license rights. That is, the non-contingent deliverables would not have value without the license rights, and only we can perform the related services. Upfront license rights and non-contingent deliverables, such as participation in a steering committee, do not have standalone value as they are not sold separately and they cannot be resold. In addition, when non-contingent deliverables are sold with upfront license rights, the license rights do not represent the culmination of a separate earnings process. As such, we account for the license and the non-contingent deliverables as a single combined unit of accounting. In such instances, the license revenue in the form of non-refundable upfront payments is deferred and recognized over the applicable relationship period. For milestone payments based on sales and for royalties based on sales, we recognize revenue in the quarter that the information related to the sales becomes available and collectability is reasonably assured. We recognize drug licensing fees over the term of the related license agreement. We received an upfront payment of $4 million pursuant to our License Agreement with Wanbang Biopharmaceutical Co., Ltd. (“Wanbang”), a subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. and we also recorded deferred drug license revenue related to a license for the Middle East in 2016 with ARAM Medical. Deferred drug license revenue for our drug license agreements is being recognized over the term of those license agreements and we recognized drug license revenue of $0.3 million in 2016. The initial payment of $20 million received pursuant to our long-term Exclusive Distribution Agreement (the “Distribution Agreement”) with Baxter Healthcare Corporation (“Baxter”) in October 2014 has been accounted for as deferred license revenue. Deferred license revenue is being recognized based on the proportion of product shipments to Baxter in each period to total expected sales volume for the term of the agreement. We recognize other revenues at the time the related fees and or payments are earned. Shipping and Handling Revenue and Costs Our products are generally priced on a delivered basis with the price of delivery included in the overall price of our products which is reported as sales. Separately identified freight and handling charges are also included in sales. We include shipping and handling costs, including expenses of Rockwell Transportation, Inc., in cost of sales. Cash and Cash Equivalents We consider cash on hand, money market funds and unrestricted certificates of deposit with an original maturity of 90 days or less as cash and cash equivalents. Investments Available for Sale Investments Available for Sale are short-term investments, consisting principally of investments in short term duration bond funds, and are stated at fair value based upon observed market prices (Level 1 in the fair value hierarchy). Unrealized holding gains or losses on these securities are included in accumulated other comprehensive income (loss). Realized gains and losses, including declines in value judged to be other-than-temporary on available-for-sale securities are included as a component of other income or expense. Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when conditions warrant such an evaluation. When evaluating investment securities, consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery. The assessment of whether an OTTI exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time. Accounts Receivable Accounts receivable are stated at invoice amounts. The carrying amount of trade accounts receivable is reduced by an allowance for doubtful accounts that reflects our best estimate of accounts that may not be collected. We review outstanding trade accounts receivable balances and based on our assessment of expected collections, we estimate the portion, if any, of the balance that may not be collected as well as a general valuation allowance for other accounts receivable based primarily on historical experience. All accounts or portions thereof deemed to be uncollectible are written off to the allowance for doubtful accounts. Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined on the first‑in first‑out (FIFO) method. Inventory that is not expected to be converted to cash over the next year is classified as non-current. Our policy is to reserve for our drug product inventory that we determine is unlikely to be sold to, or if sold, unlikely to be utilized by our customers on or before its expiration date. Property and Equipment Property and equipment are recorded at cost. Expenditures for normal maintenance and repairs are charged to expense as incurred. Property and equipment are depreciated using the straight‑line method over their useful lives, which range from three to ten years. Leasehold improvements are amortized using the straight‑line method over the shorter of their useful lives or the related lease term. Licensing Fees License fees related to the technology, intellectual property and marketing rights for Triferic covered under certain issued patents have been capitalized and are being amortized over the life of the related patents which is generally 17 years. Goodwill, Intangible Assets and Long Lived Assets The recorded amounts of goodwill and other intangibles from prior business combinations are based on management’s best estimates of the fair values of assets acquired and liabilities assumed at the date of acquisition. Goodwill is not amortized; however, it must be tested for impairment at least annually. Amortization continues to be recorded for other intangible assets with definite lives over their estimated useful lives. Intangible assets subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. An impairment review of goodwill, intangible assets, and property and equipment is performed annually or whenever a change in condition occurs which indicates that the carrying amounts of assets may not be recoverable. Such changes may include changes in our business strategies and plans, changes to our customer contracts, changes to our product lines and changes in our operating practices. We use a variety of factors to assess the realizable value of long‑lived assets depending on their nature and use. The useful lives of other intangible assets are based on management’s best estimates of the period over which the assets are expected to contribute directly or indirectly to our future cash flows. Management annually evaluates the remaining useful lives of intangible assets with finite useful lives to determine whether events and circumstances warrant a revision to the remaining amortization periods. It is reasonably possible that management’s estimates of the carrying amount of goodwill and the remaining useful lives of other intangible assets may change in the near term. Income Taxes We account for income taxes in accordance with the provisions of ASC 740‑10, Income Taxes. A current tax liability or asset is recognized for the estimated taxes payable or refundable on tax returns for the year. Deferred tax liabilities or assets are recognized for the estimated future tax effects of temporary differences between book and tax accounting and operating loss and tax credit carryforwards. A valuation allowance is established for deferred tax assets if we determine it to be more likely than not that the deferred tax asset will not be realized. The effects of tax positions are generally recognized in the financial statements consistent with amounts reflected in returns filed, or expected to be filed, with taxing authorities. For tax positions that the Company considers to be uncertain, current and deferred tax liabilities are recognized, or assets derecognized, when it is probable that an income tax liability has been incurred and the amount of the liability is reasonably estimable, or when it is probable that a tax benefit, such as a tax credit or loss carryforward, will be disallowed by a taxing authority. The amount of unrecognized tax benefits related to current tax positions is insignificant. The Company recognizes interest and penalties accrued related to unrecognized tax benefits as income tax expense. Research and Product Development We recognize research and product development costs as expenses as incurred. We incurred product development and research costs related to the commercial development, patent approval and regulatory approval of new products, including Triferic and for other indications of Triferic, aggregating approximately $5,840,000, $4,961,000 and $7,784,000 in 2016, 2015 and 2014, respectively. Share Based Compensation We measure the cost of employee services received in exchange for equity awards, including stock options, based on the grant date fair value of the awards in accordance with ASC 718‑10, Compensation — Stock Compensation. The cost of equity based compensation is recognized as compensation expense over the vesting period of the awards. We estimate the fair value of compensation involving stock options utilizing the Black‑Scholes option pricing model. This model requires the input of several factors such as the expected option term, expected volatility of our stock price over the expected option term, and an expected forfeiture rate, and is subject to various assumptions. We believe the valuation methodology is appropriate for estimating the fair value of stock options we grant to employees and directors which are subject to ASC 718‑10 requirements. These amounts are estimates and thus may not be reflective of actual future results or amounts ultimately realized by recipients of these grants. Employee Retirement Plans We are the sponsor of a non‑contributory 401(k) Employee Savings Plan. Earnings per Share We compute our basic earnings (loss) per share using weighted average shares outstanding for each respective period. Diluted earnings per share also reflect the weighted average impact from the date of issuance of all potentially dilutive securities, consisting of stock options and common share purchase warrants, unless inclusion would have had an anti‑dilutive effect. Actual weighted average shares outstanding used in calculating basic and diluted earnings per share were: 2016 2015 2014 Basic Weighted Average Shares Outstanding Effect of Dilutive Securities — — — Diluted Weighted Average Shares Outstanding For 2016, 2015 and 2014, the dilutive effect of stock options, unvested restricted share grants and common share purchase warrants have not been included in the average shares outstanding for the calculation of diluted loss per share as the effect would be anti-dilutive as a result of our net loss in these periods. The table below summarizes potentially dilutive securities. 2016 2015 2014 Stock Options 7,691,501 7,759,002 6,885,083 Range of Exercise Prices of Stock Options $3.09 - $11.49 $3.09 - $11.49 $3.09 - $10.20 Unvested Restricted Common Shares 850,000 850,000 740,000 Common Share Purchase Warrants None None None Range of Exercise Prices of Warrants n/a n/a n/a Other Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Certain changes in assets and liabilities, however, such as unrealized gains and losses on available for sale securities, are reported as a direct adjustment to the equity section of the balance sheet. Such items, along with net income (loss), are considered components of comprehensive income (loss). Accumulated Other Comprehensive Income (Loss) consists almost entirely of unrealized gains and losses on available‑for‑sale investment securities. We also record foreign currency translation adjustments to Other Comprehensive Income (Loss). However, such amounts were insignificant in 2016. Estimates in Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain 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 reported amounts of revenues and expenses during the period. Actual results could differ from those estimates. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which will supersede the current revenue recognition requirements in Topic 605, Revenue Recognition . The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance initially was effective for years beginning January 1, 2017, but on July 9, 2015 the FASB deferred the effective date and, as a result, the new guidance is effective for the year beginning January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is in the process of evaluating how the new revenue recognition standard could impact the financial statements and disclosures. For the majority of our sales transactions, the new standard is not expected to significantly change the timing of revenue recognition; however, we are still analyzing our licensing arrangements to determine the impact of the new standard. The new standard will also require expanded disclosures surrounding revenue in the notes to the financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The amendments in this ASU revise the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The amendments in this ASU are effective for the Company beginning on January 1, 2019 and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. We anticipate this standard will have a material impact on our consolidated balance sheets. However, we do not believe adoption will have a material impact on our consolidated income statements. Upon implementation, the Company's lease payment obligations will be recognized at their estimated present value along with a corresponding right-of-use asset. Lease expense recognition will be generally consistent with current practice. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory, which applies to all inventory except inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is covered by the new guidance and should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments will be applied prospectively for fiscal years beginning after December 15, 2016. The Company does not expect a significant change upon implementation as cost is expected to be lower than net realizable value.

FAIR MARKET VALUE MEASUREMENTS

FAIR MARKET VALUE MEASUREMENTS	12 Months Ended
	Dec. 31, 2016
FAIR MARKET VALUE MEASUREMENTS
FAIR MARKET VALUE MEASUREMENTS	3. FAIR MARKET VALUE MEASUREMENTS Accounting standards require certain assets and liabilities be reported at fair value in the financial statements and provides a framework for establishing that fair value. The framework for determining fair value is based on a hierarchy that prioritizes observable and unobservable inputs used to measure fair value into three broad levels, which are described below: Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities. The fair value hierarchy gives the highest priority to Level 1 inputs. Level 2: Observable prices that are based on inputs not quoted in active markets, but corroborated by market data. Level 3: Unobservable inputs are used when little or no market data is available. The fair value hierarchy gives the lowest priority to Level 3 inputs. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk in its assessment of fair value. The following methods, assumptions, and valuation techniques were used to measure different financial assets and liabilities at fair value and in estimating its fair value disclosures for financial instruments. Cash and Cash Equivalents: The carrying amounts reported in the consolidated balance sheets for cash and cash equivalents are deemed to approximate fair value Investment Securities: Fair values for investment securities are determined by quoted market prices if available. Accounts Receivable, Accounts Payable and Accrued Liabilities: The fair value of trade receivables and payables approximate their carrying amounts due to the short duration before collection or payment. Based on the foregoing methods and assumptions, the carrying value and fair value of the Company’s financial instruments other than trade receivables and payables are as follows (in thousands): Carrying value Fair value Level 1 Level 2 Level 3 As of December 31, 2016 Financial assets Cash and cash equivalents $ $ $ $ — $ — Investment securities available for sale — — As of December 31, 2015 Financial assets Cash and cash equivalents $ $ $ $ — $ — Investment securities available for sale — — The Company also has certain non‑financial assets that under certain conditions are subject to measurement at fair value on a non‑recurring basis. No such measurements were required in 2016 or 2015.

INVESTMENTS IN AVAILABLE FOR SA

INVESTMENTS IN AVAILABLE FOR SALE SECURITIES	12 Months Ended
	Dec. 31, 2016
INVESTMENTS IN AVAILABLE FOR SALE SECURITIES
INVESTMENTS IN AVAILABLE FOR SALE SECURITIES	4. INVESTMENTS IN AVAILABLE FOR SALE SECURITIES As of December 31, 2016, we held investments in available for sale securities in several short term bond funds. These funds generally held high credit quality short term debt instruments. These debt instruments were subject to changes in fair market value due to changes in interest rates. The market value of these investments was $40,759,703 as of December 31, 2016. In 2016, we purchased securities with a market value of $25,781,853 and had unrealized losses of $901,877 as of December 31, 2016. In 2016, we sold securities with a market value of $24,491,677 with an average cost basis of $24,518,497. We had realized gains of $156,461 and realized losses of $183,281. As of December 31, 2015, we held investments in available for sale securities in several short term bond funds. These funds generally held high credit quality short term debt instruments. These debt instruments were subject to changes in fair market value due to changes in interest rates. As of December 31, 2015, the market value of investments in available for sale securities was $39,482,732. In 2015, we purchased securities with a market value of $21,800,000 and had unrealized gains of $69,877 and unrealized losses of $985,374 as of December 31, 2015. In 2015, we sold securities with a market value of $1,469,000 with an average cost basis of $1,527,095. We realized losses of $58,095 from sales of available for sale securities.

SIGNIFICANT MARKET SEGMENTS AND

SIGNIFICANT MARKET SEGMENTS AND CUSTOMERS	12 Months Ended
	Dec. 31, 2016
SIGNIFICANT MARKET SEGMENTS
SIGNIFICANT MARKET SEGMENTS AND CUSTOMERS	5. SIGNIFICANT MARKET SEGMENTS AND CUSTOMERS We operate in one market segment, the hemodialysis market, which involves the manufacture, sale and distribution of hemodialysis products to hemodialysis clinics including pharmaceutical, dialysis concentrates, dialysis kits and other ancillary products used in the dialysis process. In October 2014, we entered into the Distribution Agreement with Baxter pursuant to which Baxter received exclusive distribution rights for our concentrate products in the United States. Rockwell domestic customer contracts for the supply of dialysis concentrate products that permitted assignment to Baxter without consent have been assigned to Baxter. As a result, for the years ended December 31, 2016 and 2015, our direct sales to Baxter aggregated approximately 24% and 28% of sales, respectively and we had a receivable from Baxter of $2,430,159 and $2,088,000 as of December 31, 2016 and 2015, respectively. For the years ended December 31, 2016, 2015 and 2014, one customer, DaVita Healthcare Partners, Inc., accounted for 52% of our sales in 2016, 48% of our sales in 2015 and 49% of our sales in 2014. Our accounts receivable from this customer were $2,224,046 and $2,156,000 as of December 31, 2016 and 2015, respectively. DaVita and Baxter and the accounts administered by Baxter are important to our business, financial condition and results of operations. The loss of any significant accounts could have a material adverse effect on our business, financial condition and results of operations. No other customers accounted for more than 10% of our sales in any of the last three years. The majority of our international sales in each of the last three years were sales to domestic distributors that were resold to end users outside the United States. Our sales to foreign customers and distributors were less than 5% of our total sales in 2016, 2015 and 2014. Our total international sales, including sales to domestic distributors for resale outside the United States, aggregated 12%, 13% and 13%, of overall sales in 2016, 2015 and 2014, respectively.

Distribution Agreement

Distribution Agreement	12 Months Ended
	Dec. 31, 2016
DISTRIBUTION AGREEMENT.
DISTRIBUTION AGREEMENT	6. DISTRIBUTION AGREEMENT As of October 2, 2014, we entered into the Distribution Agreement with Baxter, pursuant to which Baxter became the Company’s exclusive agent for sales, marketing and distribution activities for the Company’s hemodialysis concentrate and ancillary products in the United States and various foreign countries for an initial term of 10 years. The Distribution Agreement does not include any of the Company’s drug products. The Company will retain sales, marketing and distribution rights for its hemodialysis concentrate products in specified foreign countries in which the Company has an established commercial presence. During the term of the Distribution Agreement, Baxter has agreed not to manufacture or sell any competitive concentrate products in the United States hemodialysis market, other than specified products. Pursuant to the Distribution Agreement, Baxter paid the Company $20 million in cash in October 2014 (the “Upfront Fee”). The Upfront Fee has been deferred and is being recognized as revenue based on the proportion of product shipments to Baxter in each period to total expected sales volume over the term of the Distribution Agreement. The Company recognized revenue associated with the Upfront Fee totaling $2,065,785 for the year ended December 31, 2016, $2,081,668 for the year ended December 31, 2015 and $507,480 for the year ended December 31, 2014. Under the Distribution Agreement, Baxter purchases products from the Company at established gross margin-based prices per unit, adjusted each year during the term. The Company continues to manage customer service, transportation and certain other functions for its current customers on Baxter’s behalf through at least December 31, 2017, in exchange for which Baxter will pay the Company an amount equal to the Company’s related costs to provide such functions plus a slight mark-up. The Distribution Agreement also requires Baxter to meet minimum annual gallon-equivalent purchase levels, subject to a cure period and certain other relief, in order to maintain its exclusive distribution rights. The minimum purchase levels increase each year over the term of the Distribution Agreement. Orders in any contract year that exceed the minimum will be carried forward and applied to future years’ minimum requirements. The Distribution Agreement also contains provisions governing the operating relationship between the parties, the Company’s obligations to maintain specified manufacturing capacity and quality levels, remedies, as well as representations, warranties and indemnification obligations of the parties. Either party may terminate the Distribution Agreement upon the insolvency or material breach of the other party or in the event of a force majeure. In addition, Baxter may also terminate the Distribution Agreement at any time upon 270 days’ prior written notice to the Company or if (1) prices increase beyond certain thresholds and notice is provided within 45 days after the true up payment is due for the year in which the price threshold is exceeded, (2) a change of control of the Company occurs and 270 days’ notice is provided, or (3) upon written notice that Baxter has been enjoined by a court of competent jurisdiction from selling in the United States any product covered by the Distribution Agreement due to a claim of intellectual property infringement or misappropriation relating to such product. If Baxter terminates the Distribution Agreement under the discretionary termination or the price increase provisions, it would be subject to a limited non-compete obligation in the United States with respect to certain products for a period of two years. If a “Refund Trigger Event” occurs, the Company would be obligated to repay a portion of the Upfront Fee and Facility Fee (described below) as follows: 50% if the event occurs prior to December 31, 2016, 33% if the event occurs in 2017 or 2018, and 25% if the event occurs in 2019, 2020 or 2021. A “Refund Trigger Event” means any of the following: (1) a change of control of the Company involving any of certain specified companies; (2) a termination by Baxter due to the Company’s bankruptcy or breach, or due to price increases that exceed the stated thresholds; (3) a termination by either party due to a force majeure; (4) settlement or adjudication of any claim, action or litigation relating to a covered product that materially and adversely affects Baxter’s commercialization of the product; and (5) any regulatory action or ruling relating to a covered product that materially and adversely affects Baxter’s commercialization of the product. In addition, if Baxter terminates the Distribution Agreement because Baxter has been enjoined by a court of competent jurisdiction from selling in the United States any product covered by the Distribution Agreement due to a claim of intellectual property infringement or misappropriation relating to such product prior to the end of 2018, Baxter would be entitled to a refund of up to $10 million, or $6.6 million if the termination occurs in 2019. In no event would Baxter be entitled to more than one refund payment The Distribution Agreement also required the Company to prepay its outstanding secured long-term indebtedness within 180 days and prohibits the Company from entering into a subsequent contract encumbering the assets used in the Company’s concentrate business without the prior written consent of Baxter. Baxter has also agreed to pay the Company up to $10 million (the “West Coast Facility Fee”) to build and operate a new manufacturing facility located in the Pacific time zone to service customers in the Western United States. The West Coast Facility Fee will be reduced to the extent that the facility is not operational within 12 months after the start of construction. Except for any leased components, the Company will own the facility when completed. The Distribution Agreement may be extended an additional five years by Baxter if Baxter achieves a specified sales target and pays an extension fee of $7.5 million. If the first extension occurs, the Distribution Agreement term may later be extended an additional five years at Baxter’s option at no additional cost. On September 12, 2016, Baxter initiated an arbitration proceeding against Rockwell under the Distribution Agreement. Baxter alleges that Rockwell has breached the Distribution Agreement in various respects associated with its dealings with customers, its allocation of expenses and its true-up notices, and by improperly threatening to build a West Coast facility. Baxter seeks declaratory relief giving Baxter the right to terminate the Distribution Agreement and recover up to $10 million of the upfront fee, injunctive relief to prevent Rockwell from establishing a West Coast facility, and unspecified damages. Rockwell filed a response denying all of Baxter’s claims of breach and wrongdoing, and has counterclaimed that Baxter is itself in breach of the Distribution Agreement for failing to pay substantial accounts receivable and for repudiating its obligation to pay the West Coast facility fee of up to $10 million. Rockwell is seeking damages, declaratory, injunctive and other equitable relief, as well as interest, costs and attorney fees. In addition, in October 2016, Rockwell gave notice to Baxter that it breached the minimum purchase requirement for the contract year ended October 2, 2016 and that we intended to cause its distribution rights to become non-exclusive unless it cured the shortfall within the 30-day period specified in the Distribution Agreement. Baxter disputed the existence of a breach and failed to cure the deficiency. Rockwell subsequently provided Baxter with notice of loss of exclusivity due to its failure to cure as provided in the Distribution Agreement. The determination of whether a breach occurred resulting in a loss of exclusivity and the outcome of the other pending disputes with Baxter will be determined through the arbitration process.

Inventory

Inventory	12 Months Ended
	Dec. 31, 2016
Inventory
Inventory	7. INVENTORY Components of inventory as of December 31, 2016 and 2015 are as follows: December 31, December 31, 2016 2015 Raw Materials $ $ Work in Process Finished Goods Total $ $ As of December 31, 2016, we classified $1,826,554 of inventory as non-current all of which related to the active pharmaceutical ingredient for Triferic.

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT	12 Months Ended
	Dec. 31, 2016
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT	8. PROPERTY AND EQUIPMENT Major classes of property and equipment, stated at cost, as of December 31, 2016 and 2015 are as follows: 2016 2015 Leasehold Improvements $ $ Machinery and Equipment Information Technology & Office Equipment Laboratory Equipment Transportation Equipment Accumulated Depreciation Net Property and Equipment $ $ Below is a summary of depreciation expense by period: 2016 2015 2014 Depreciation expense $ $ $

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS	12 Months Ended
	Dec. 31, 2016
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS	9. GOODWILL AND INTANGIBLE ASSETS Total goodwill was $920,745 at December 31, 2016 and 2015. We completed our annual impairment tests as of November 30, 2016 and 2015, and determined that no adjustment for impairment of goodwill was required. We have entered into a global licensing agreement for certain patents covering Triferic, a therapeutic drug compound to be delivered using our dialysate product lines. We received FDA approval for this product in January 2015. We have capitalized the licensing fees paid for the rights to use this patented technology as an intangible asset. We have capitalized certain patent approval costs. During 2011, we acquired an abbreviated new drug application (“ANDA”) for a generic version of an intravenous vitamin‑D analogue, Calcitriol. Total capitalized costs related to this ANDA were approximately $695,000. These were amortized over a five year period ending December 31, 2016. 2016 2015 2014 Capitalized Licensing Fees $ $ $ Accumulated Amortization Capitalized Licensing Fees, Net of Amortization $ $ $ Amortization Expense $ $ $ Our policy is to amortize licensing fees over the life of the patents pertaining to certain licensing agreements and to amortize patent costs over the life of the patent. Estimated amortization expense for amortization of capitalized patent costs in 2017 is approximately $353. In 2015, we recognized expenses related to milestone achievements of $275,000.

ACCRUED LIABILITIES

ACCRUED LIABILITIES	12 Months Ended
	Dec. 31, 2016
ACCRUED LIABILITIES
ACCRUED LIABILITIES	10. ACCRUED LIABILITIES We had the following accrued liabilities as of December 31, 2016 and 2015: 2016 2015 Accrued Research & Development Expense $ $ Accrued Compensation and Benefits Other Accrued Liabilities Total Accrued Liabilities $ $

OPERATING LEASES

OPERATING LEASES	12 Months Ended
	Dec. 31, 2016
OPERATING LEASES
OPERATING LEASES	11. OPERATING LEASES We lease our production facilities and administrative offices as well as certain equipment used in our operations including leases on transportation equipment used in the delivery of our products. The lease terms range from monthly to seven years. We occupy a 51,000 square foot facility and a 17,500 square foot facility in Wixom, Michigan under a lease expiring in August 2018. We also occupy a 51,000 square foot facility in Grapevine, Texas under a lease expiring in December 2020. In addition, we lease a 57,000 square foot facility in Greer, South Carolina under a lease expiring February 2018. 2016 2015 2014 Rent Expense Recognized Under Operating Leases $ $ $ Future minimum rental payments under operating lease agreements are as follows: Year ending December 31, 2017 $ Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Year ending December 31, 2021 Year ending December 31, 2022 and thereafter Total $

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2016
INCOME TAXES
INCOME TAXES	12. INCOME TAXES A reconciliation of income tax expense at the statutory rate to income tax expense at our effective tax rate is as follows: 2016 2015 2014 Tax Expense (Benefit) Computed at 34 % of Pretax Income (Loss) $ $ $ Foreign Income Tax Expense — — Effect of Change in Valuation Allowance Total Income Tax Expense $ $ — $ — The details of the net deferred tax asset are as follows: December 31, 2016 2015 Deferred tax assets: Net Operating Loss Carryforward $ $ Stock Based Compensation Deferred Revenue General Business Credit Accrued Expenses Inventories Book over Tax Depreciation Allowance for Doubtful Accounts Total Deferred Tax Assets Deferred Tax Liabilities: Goodwill & Intangible Assets Prepaid Expenses Total Deferred Tax Liabilities Subtotal Valuation Allowance Net Deferred Tax Asset $ — $ — Deferred tax assets result primarily from net operating loss carryforwards. For tax purposes, we have net operating loss carryforwards of approximately $151,400,000 that expire between 2018 and 2036. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized upon the generation of future taxable income during the periods in which those temporary differences become deductible. We recognized $404,527 in foreign income taxes paid for the year ended December 31, 2016. We recognized no income tax expense or benefit for the years ended December 31, 2015 and 2014. While we anticipate generating income within the next year or two, we expect to incur operating losses until our drug products are marketed and generating sufficient profits to offset our operating expenses. Considered together with our limited history of operating income and our net losses in 2016, 2015 and 2014, management has placed a full valuation allowance against the net deferred tax assets as of December 31, 2016 and 2015. The portion of the valuation allowance resulting from excess tax benefits on share based compensation that would be credited directly to contributed capital if recognized in subsequent periods is $5.4 million. The Company accounts for its uncertain tax positions in accordance with ASC 740‑10, Income Taxes and the amount of unrecognized tax benefits related to tax positions is not significant at December 31, 2016 and 2015.

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Dec. 31, 2016
CAPITAL STOCK
CAPITAL STOCK	13. CAPITAL STOCK Our authorized capital stock consists of 2,000,000 preferred shares, none of which were issued or outstanding at December 31, 2016, 2015 and 2014, and 120,000,000 common shares, no par value per share, of which the following shares were outstanding: 2016 2015 2014 Shares outstanding as of December 31, Summary of Share Issuances: Share Issuances related to Equity Compensation: Shares issued upon exercise of stock options by employees Proceeds realized from stock option exercises $ $ $ Average exercise price of options exercised $ $ $ Restricted Stock Grants — Share issuances related to Warrant Exercises Shares issued upon the exercise of warrants — Proceeds realized from warrant exercises — $ Share issuances related to Equity Offerings Shares issued pursuant to equity offerings — Proceeds realized from equity offerings — $ Common Shares Holders of the common shares are entitled to one vote per share on all matters submitted to a vote of our shareholders and are entitled to receive dividends when and if declared by the Board of Directors. The Board is authorized to issue additional common shares within the limits of the Company’s Articles of Incorporation without further shareholder action, subject to applicable stock exchange rules. Warrants As of December 31, 2016 and 2015, we had no outstanding warrants. During 2014, we realized $8,433,045 in net proceeds from the exercise of 904,886 warrants at an average exercise price of $9.32.

LONG TERM INCENTIVE PLAN & STOC

LONG TERM INCENTIVE PLAN & STOCK OPTIONS	12 Months Ended
	Dec. 31, 2016
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
LONG TERM INCENTIVE PLAN & STOCK OPTIONS	14. LONG TERM INCENTIVE PLAN & STOCK OPTIONS Long Term Incentive Plan & Stock Options The Board of Directors adopted the Rockwell Medical, Inc., 2007 Long Term Incentive Plan (“LTIP”) on April 11, 2007 as a replacement for the 1997 Stock Option Plan (the “Old Plan”) which was terminated as to future grants. No options were granted under the Old Plan after 2006 and no options remain outstanding as of December 31, 2016. There are 11,500,000 common shares reserved for issuance under the LTIP. The Compensation Committee of the Board of Directors (the “Committee”) is responsible for the administration of the LTIP including the grant of stock based awards and other financial incentives including performance based incentives to employees, non‑employee directors and consultants. The Committee determines the terms and conditions of options and other equity based incentives including, but not limited to, the number of shares, the exercise price, term of option and vesting requirements. The Committee approved stock option grants during 2016, 2015 and 2014 and restricted stock grants in 2015 and 2014. The stock option awards were granted with an exercise price equal to the market price of the Company’s stock on the date of the grant. The options expire 10 years from the date of grant or upon termination of employment and generally vest in three equal annual installments beginning on the first anniversary of the date of grant. Restricted Stock Grants There were no grants of restricted stock during 2016. We granted 850,000 and 740,000 restricted shares in 2015 and 2014, respectively under the LTIP. These restricted stock grants were valued at the market price on the date of grant. During 2015, restricted stock grants aggregating 850,000 common shares were granted in October 2015 with a vesting date of approximately twenty months following the grant date. Vesting is conditioned upon continued employment with the Company. During 2014, restricted stock grants aggregating 320,000 shares were granted in January 2014 with a vesting date of approximately fourteen months after the grant date and an additional 420,000 common shares were granted in October 2014 with a vesting date of approximately seven months following the grant date with vesting conditioned upon continued employment with the Company. 2016 2015 2014 Restricted Shares Granted - Average Market Value Per Share on Grant Date - $ $ Expense related to All Restricted Shares $ $ $ Unearned Stock Based Compensation for All Restricted Stock Awards Attributable to Future Periods. $ Stock Option Grants Our standard stock option agreement under the 2007 Plan allows for the payment of the exercise price of vested stock options either through cash remittance in exchange for newly issued shares, or through non‑cash exchange of previously issued shares held by the recipient for at least six months in exchange for our newly issued shares. The 1997 Plan also allows for the retention of shares in payment of the exercise price and income tax withholding. The latter method results in no cash being received by us, but also results in a lower number of total shares being outstanding subsequently as a direct result of this exchange of shares. Shares returned to us in this manner would be retired. In 2016, 2015 and 2014, the Company received cash proceeds of $80,161, $2,780,188 and $2,964,445 respectively, in exchange for shares issued upon the exercise of options during the year. No income tax benefits were recognized during 2016, 2015 and 2014 related to stock option activity as the Company has a full valuation allowance recorded against its deferred tax assets. However, tax benefits (expense) for the excess of the value of the shares issued over the price paid of $20,000, ($943,000) and $2,009,000 were created in 2016, 2015, and 2014. The cumulative excess tax benefit at December 31, 2016 is $5.4 million, which when realized, will be credited directly to shareholders' equity. A summary of the status of the LTIP and the Old Plan is as follows: WEIGHTED AVERAGE AGGREGATE EXERCISE INTRINSIC SHARES PRICE VALUE Outstanding at December 31, 2013 $ Granted Exercised $ Forfeited Outstanding at December 31, 2014 $ Granted Exercised $ Forfeited Outstanding at December 31, 2015 $ Granted Exercised $ Forfeited Outstanding at December 31, 2016 $ OPTIONS OUTSTANDING OPTIONS EXERCISABLE WEIGHTED REMAINING WEIGHTED AVERAGE NUMBER OF CONTRACTUAL EXERCISE NUMBER OF EXERCISE RANGE OF EXERCISE PRICES OPTIONS LIFE PRICE OPTIONS PRICE $3.09 to $4.93 2.0-6.5 yrs. $ $ $5.86 to $7.13 .9-9.7 yrs. $ $ $8.23 to 11.49 2.8-8.8 yrs. $ $ Total 5.7 yrs. $ $ Intrinsic Value $ $ WEIGHTED AVERAGE NUMBER OF FAIR MARKET UNVESTED VALUE AT OPTIONS GRANT DATE As of December 31, 2013 Granted $ Forfeited Vested As of December 31, 2014 Granted $ Forfeited Vested As of December 31, 2015 Granted $ Forfeited Vested As of December 31, 2016 The Company values stock options awarded using the Black‑Scholes method. Assumptions used in the stock option valuations were: 2016 2015 2014 Volatility of share price 64 - 65 % 58 - 61 % 69 - 70 % Risk free interest rate 1.3-1.6 % 1.5 - 1.7 % 1.9 - 2.0 % Expected option life 6 yrs. 6 yrs. 6 yrs. Dividend Yield 0.0% 0.0% 0.0% We believe this valuation methodology is appropriate for estimating the fair value of stock options we grant to employees and directors which are subject to ASC 718‑10 requirements. We primarily base our determination of expected volatility through our assessment of the historical volatility of our common shares. We do not believe that we are able to rely on our historical stock option exercise and post‑vested termination activity to provide accurate data for estimating our expected term for use in determining the fair value of these options. Therefore, as allowed by Staff Accounting Bulletin (SAB) No. 107, Share‑Based Payment, we have opted to use the simplified method for estimating the expected option term equal to the midpoint between the vesting period and the contractual term. The contractual term of the option is 10 years from the date of grant and the vesting term of the option is three years from date of grant. Risk free interest rates utilized are based upon published U.S. Treasury yield curves at the date of the grant for the expected option term. For the years ended December 31, 2016, 2015 and 2014, we recognized compensation expense of $5,984,524, $5,193,481 and $4,597,412 respectively related to options granted to employees under the LTIP with a corresponding credit to common stock. At December 31, 2016, the amount of unrecorded stock-based compensation expense for stock options attributable to future periods was approximately $5,834,369 which is expected to be amortized to expense over the remaining vesting periods of the options of 1 to 30 months. As of December 31, 2016, the remaining number of common shares available for equity awards under the LTIP was 545,694.

RISK MANAGEMENT

RISK MANAGEMENT	12 Months Ended
	Dec. 31, 2016
RISK MANAGEMENT
RISK MANAGEMENT	15. RISK MANAGEMENT Insurance We evaluate various kinds of risk that we are exposed to in our business. In our evaluation of risk, we evaluate options and alternatives to mitigating such risks. For certain insurable risks we may acquire insurance policies to protect against potential losses or to partially insure against certain risks. For our subsidiary, Rockwell Transportation, Inc., we maintain a partially uninsured workers' compensation plan. Under the policy, the Company's self‑insurance retention is $350,000 per occurrence and $580,388 in aggregate coverage for the policy year ending July 1, 2017. The total amount at December 31, 2016 by which retention limits exceed the claims paid and accrued is approximately $298,000 for the policy year ending July 1, 2017. Estimated additional future claims subject to payment by the Company of approximately $196,537 have been accrued for the year ended December 31, 2016. At December 31, 2016, approximately $300,000 was held in cash collateral and escrow by the insurance carrier for workers’ compensation insurance. At December 31, 2016 amounts held in cash collateral and escrow are included in prepaid expenses and other non-current assets in the consolidated financial statements.

QUARTERLY RESULTS OF OPERATIONS

QUARTERLY RESULTS OF OPERATIONS	12 Months Ended
	Dec. 31, 2016
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS	16. QUARTERLY RESULTS OF OPERATION The following is a summary of the quarterly results of operations for the years ended December 31, 2016 and 2015. First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Sales $ $ $ $ Cost of Sales Gross Profit Selling, General and Administrative Research and Product Development Operating Income (Loss) Interest and Investment Income, net Interest Expense — — — — Income (Loss) Before Income Taxes Income Tax Expense — — — Net Income (Loss) $ $ $ $ Basic And Diluted Earnings (Loss) Per Share $ $ $ $ First Quarter Second Quarter Third Quarter Fourth Quarter 2015 Sales $ $ $ $ Cost of Sales Gross Profit Selling, General and Administrative Research and Product Development Operating Income (Loss) Interest and Investment Income, net Interest Expense — — — — Income (Loss) Before Income Taxes Income Tax Expense — — — — Net Income (Loss) $ $ $ $ Basic And Diluted Earnings (Loss) Per Share $ $ $ $

SCHEDULE II - VALUATION AND QUA

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	12 Months Ended
	Dec. 31, 2016
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS	SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS Balance at Balance Beginning at End of Period Additions (Deductions) of Period Allowance for Doubtful Accounts: Year ended December 31, 2016 $ $ $ $ Year ended December 31, 2015 $ $ $ $ Year ended December 31, 2014 $ $ $ $ Inventory Reserve: Year ended December 31, 2016 $ $ $ $ Year ended December 31, 2015 $ $ $ $ Year ended December 31, 2014 $ $ $ $ Deferred Tax Asset Valuation Allowance: Year ended December 31, 2016 $ $ $ — $ Year ended December 31, 2015 $ $ — $ $ Year ended December 31, 2014 $ $ $ — $ Allowances and reserves are deducted from the accounts to which they apply

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Basis of Presentation	Basis of Presentation Our consolidated financial statements include our accounts and the accounts for our wholly owned subsidiaries, Rockwell Transportation, Inc. and Rockwell Medical India Private Limited. Rockwell Medical India Private Limited was formed in 2016 for the purpose of conducting certain commercial activities in India. All intercompany balances and transactions have been eliminated in consolidation.
Revenue Recognition	Revenue Recognition Our policy is to recognize revenue consistent with authoritative guidance for revenue recognition including the provisions of the Financial Accounting Standards Board Accounting Standards Codification. We recognize revenue when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery (or passage of title) has occurred or services have been rendered, (iii) the seller's price to the buyer is fixed or determinable, and (iv) collectability is reasonably assured. Consistent with these guidelines we recognize revenue at the time we transfer title to our products to our customers which generally occurs when our products are delivered to our customer’s location consistent with our terms of sale. We recognize revenue for international shipments when title has transferred consistent with standard terms of sale. We apply judgment as we analyze each element of our contractual agreements to determine appropriate revenue recognition. The terms of our contractual agreements may include milestone payments if specified research and development objectives are achieved, non-refundable licensing fees, milestone payments on sales or royalties from product sales. When entering into an arrangement, we first determine whether the arrangement includes multiple deliverables and is subject to the accounting guidance in ASC subtopic 605-25, Multiple-Element Arrangements. If we determine that an arrangement includes multiple elements, we determine whether the arrangement should be divided into separate units of accounting and how the arrangement consideration should be measured and allocated among the separate units of accounting. An element qualifies as a separate unit of accounting when the delivered element has standalone value to the customer. Our arrangements do not include a general right of return relative to delivered elements. Any delivered elements that do not qualify as separate units of accounting are combined with other undelivered elements within the arrangement as a single unit of accounting. If the arrangement constitutes a single combined unit of accounting, we determine the revenue recognition method for the combined unit of accounting and recognize the revenue either on a straight-line basis or on a modified proportional performance method over the period from inception through the date the last deliverable within the single unit of accounting is delivered. Non-refundable upfront license fees are recorded as deferred revenue and recognized into revenue over the estimated period of our substantive performance obligations. If we do not have substantive performance obligations, we recognize non-refundable upfront fees into revenue through the date the deliverable is satisfied. Analyzing the arrangement to identify deliverables requires the use of judgment and each deliverable may be an obligation to deliver services, a right or license to use an asset, or another performance obligation. In arrangements that include license rights and other non-contingent deliverables, such as participation in a steering committee, these deliverables do not have standalone value because the non-contingent deliverables are dependent on the license rights. That is, the non-contingent deliverables would not have value without the license rights, and only we can perform the related services. Upfront license rights and non-contingent deliverables, such as participation in a steering committee, do not have standalone value as they are not sold separately and they cannot be resold. In addition, when non-contingent deliverables are sold with upfront license rights, the license rights do not represent the culmination of a separate earnings process. As such, we account for the license and the non-contingent deliverables as a single combined unit of accounting. In such instances, the license revenue in the form of non-refundable upfront payments is deferred and recognized over the applicable relationship period. For milestone payments based on sales and for royalties based on sales, we recognize revenue in the quarter that the information related to the sales becomes available and collectability is reasonably assured. We recognize drug licensing fees over the term of the related license agreement. We received an upfront payment of $4 million pursuant to our License Agreement with Wanbang Biopharmaceutical Co., Ltd. (“Wanbang”), a subsidiary of Shanghai Fosun Pharmaceutical (Group) Co., Ltd. and we also recorded deferred drug license revenue related to a license for the Middle East in 2016 with ARAM Medical. Deferred drug license revenue for our drug license agreements is being recognized over the term of those license agreements and we recognized drug license revenue of $0.3 million in 2016. The initial payment of $20 million received pursuant to our long-term Exclusive Distribution Agreement (the “Distribution Agreement”) with Baxter Healthcare Corporation (“Baxter”) in October 2014 has been accounted for as deferred license revenue. Deferred license revenue is being recognized based on the proportion of product shipments to Baxter in each period to total expected sales volume for the term of the agreement. We recognize other revenues at the time the related fees and or payments are earned.
Shipping and Handling Revenue and Costs	Shipping and Handling Revenue and Costs Our products are generally priced on a delivered basis with the price of delivery included in the overall price of our products which is reported as sales. Separately identified freight and handling charges are also included in sales. We include shipping and handling costs, including expenses of Rockwell Transportation, Inc., in cost of sales.
Cash and Cash Equivalents	Cash and Cash Equivalents We consider cash on hand, money market funds and unrestricted certificates of deposit with an original maturity of 90 days or less as cash and cash equivalents.
Investments Available for Sale	Investments Available for Sale Investments Available for Sale are short-term investments, consisting principally of investments in short term duration bond funds, and are stated at fair value based upon observed market prices (Level 1 in the fair value hierarchy). Unrealized holding gains or losses on these securities are included in accumulated other comprehensive income (loss). Realized gains and losses, including declines in value judged to be other-than-temporary on available-for-sale securities are included as a component of other income or expense. Management evaluates securities for other-than-temporary impairment (“OTTI”) on a quarterly basis, and more frequently when conditions warrant such an evaluation. When evaluating investment securities, consideration is given to the length of time and the extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and whether the Company has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery. The assessment of whether an OTTI exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.
Accounts Receivable	Accounts Receivable Accounts receivable are stated at invoice amounts. The carrying amount of trade accounts receivable is reduced by an allowance for doubtful accounts that reflects our best estimate of accounts that may not be collected. We review outstanding trade accounts receivable balances and based on our assessment of expected collections, we estimate the portion, if any, of the balance that may not be collected as well as a general valuation allowance for other accounts receivable based primarily on historical experience. All accounts or portions thereof deemed to be uncollectible are written off to the allowance for doubtful accounts.
Inventory	Inventory Inventory is stated at the lower of cost or net realizable value. Cost is determined on the first‑in first‑out (FIFO) method. Inventory that is not expected to be converted to cash over the next year is classified as non-current. Our policy is to reserve for our drug product inventory that we determine is unlikely to be sold to, or if sold, unlikely to be utilized by our customers on or before its expiration date.
Property and Equipment	Property and Equipment Property and equipment are recorded at cost. Expenditures for normal maintenance and repairs are charged to expense as incurred. Property and equipment are depreciated using the straight‑line method over their useful lives, which range from three to ten years. Leasehold improvements are amortized using the straight‑line method over the shorter of their useful lives or the related lease term.
Licensing Fees	Licensing Fees License fees related to the technology, intellectual property and marketing rights for Triferic covered under certain issued patents have been capitalized and are being amortized over the life of the related patents which is generally 17 years.
Goodwill, Intangible Assets and Long Lived Assets	Goodwill, Intangible Assets and Long Lived Assets The recorded amounts of goodwill and other intangibles from prior business combinations are based on management’s best estimates of the fair values of assets acquired and liabilities assumed at the date of acquisition. Goodwill is not amortized; however, it must be tested for impairment at least annually. Amortization continues to be recorded for other intangible assets with definite lives over their estimated useful lives. Intangible assets subject to amortization are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable. An impairment review of goodwill, intangible assets, and property and equipment is performed annually or whenever a change in condition occurs which indicates that the carrying amounts of assets may not be recoverable. Such changes may include changes in our business strategies and plans, changes to our customer contracts, changes to our product lines and changes in our operating practices. We use a variety of factors to assess the realizable value of long‑lived assets depending on their nature and use. The useful lives of other intangible assets are based on management’s best estimates of the period over which the assets are expected to contribute directly or indirectly to our future cash flows. Management annually evaluates the remaining useful lives of intangible assets with finite useful lives to determine whether events and circumstances warrant a revision to the remaining amortization periods. It is reasonably possible that management’s estimates of the carrying amount of goodwill and the remaining useful lives of other intangible assets may change in the near term
Income Taxes	Income Taxes We account for income taxes in accordance with the provisions of ASC 740‑10, Income Taxes. A current tax liability or asset is recognized for the estimated taxes payable or refundable on tax returns for the year. Deferred tax liabilities or assets are recognized for the estimated future tax effects of temporary differences between book and tax accounting and operating loss and tax credit carryforwards. A valuation allowance is established for deferred tax assets if we determine it to be more likely than not that the deferred tax asset will not be realized. The effects of tax positions are generally recognized in the financial statements consistent with amounts reflected in returns filed, or expected to be filed, with taxing authorities. For tax positions that the Company considers to be uncertain, current and deferred tax liabilities are recognized, or assets derecognized, when it is probable that an income tax liability has been incurred and the amount of the liability is reasonably estimable, or when it is probable that a tax benefit, such as a tax credit or loss carryforward, will be disallowed by a taxing authority. The amount of unrecognized tax benefits related to current tax positions is insignificant. The Company recognizes interest and penalties accrued related to unrecognized tax benefits as income tax expense.
Research and Product Development	Research and Product Development We recognize research and product development costs as expenses as incurred. We incurred product development and research costs related to the commercial development, patent approval and regulatory approval of new products, including Triferic and for other indications of Triferic, aggregating approximately $5,840,000, $4,961,000 and $7,784,000 in 2016, 2015 and 2014, respectively.
Share Based Compensation	Share Based Compensation We measure the cost of employee services received in exchange for equity awards, including stock options, based on the grant date fair value of the awards in accordance with ASC 718‑10, Compensation — Stock Compensation. The cost of equity based compensation is recognized as compensation expense over the vesting period of the awards. We estimate the fair value of compensation involving stock options utilizing the Black‑Scholes option pricing model. This model requires the input of several factors such as the expected option term, expected volatility of our stock price over the expected option term, and an expected forfeiture rate, and is subject to various assumptions. We believe the valuation methodology is appropriate for estimating the fair value of stock options we grant to employees and directors which are subject to ASC 718‑10 requirements. These amounts are estimates and thus may not be reflective of actual future results or amounts ultimately realized by recipients of these grants.
Employee Retirement Plans	Employee Retirement Plans We are the sponsor of a non‑contributory 401(k) Employee Savings Plan.
Net Earnings Per Share	Earnings per Share We compute our basic earnings (loss) per share using weighted average shares outstanding for each respective period. Diluted earnings per share also reflect the weighted average impact from the date of issuance of all potentially dilutive securities, consisting of stock options and common share purchase warrants, unless inclusion would have had an anti‑dilutive effect. Actual weighted average shares outstanding used in calculating basic and diluted earnings per share were: 2016 2015 2014 Basic Weighted Average Shares Outstanding Effect of Dilutive Securities — — — Diluted Weighted Average Shares Outstanding For 2016, 2015 and 2014, the dilutive effect of stock options, unvested restricted share grants and common share purchase warrants have not been included in the average shares outstanding for the calculation of diluted loss per share as the effect would be anti-dilutive as a result of our net loss in these periods. The table below summarizes potentially dilutive securities. 2016 2015 2014 Stock Options 7,691,501 7,759,002 6,885,083 Range of Exercise Prices of Stock Options $3.09 - $11.49 $3.09 - $11.49 $3.09 - $10.20 Unvested Restricted Common Shares 850,000 850,000 740,000 Common Share Purchase Warrants None None None Range of Exercise Prices of Warrants n/a n/a n/a
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Certain changes in assets and liabilities, however, such as unrealized gains and losses on available for sale securities, are reported as a direct adjustment to the equity section of the balance sheet. Such items, along with net income (loss), are considered components of comprehensive income (loss). Accumulated Other Comprehensive Income (Loss) consists almost entirely of unrealized gains and losses on available‑for‑sale investment securities. We also record foreign currency translation adjustments to Other Comprehensive Income (Loss). However, such amounts were insignificant in 2016.
Estimates in Preparation of Financial Statements	Estimates in Preparation of Financial Statements The preparation of financial statements in conformity with generally accepted accounting principles requires management to make certain 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 reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.
New Accounting Pronouncement	New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers (Topic 606) , which will supersede the current revenue recognition requirements in Topic 605, Revenue Recognition . The standard’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance initially was effective for years beginning January 1, 2017, but on July 9, 2015 the FASB deferred the effective date and, as a result, the new guidance is effective for the year beginning January 1, 2018. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is in the process of evaluating how the new revenue recognition standard could impact the financial statements and disclosures. For the majority of our sales transactions, the new standard is not expected to significantly change the timing of revenue recognition; however, we are still analyzing our licensing arrangements to determine the impact of the new standard. The new standard will also require expanded disclosures surrounding revenue in the notes to the financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The amendments in this ASU revise the accounting related to lessee accounting. Under the new guidance, lessees will be required to recognize a lease liability and a right-of-use asset for all leases. The amendments in this ASU are effective for the Company beginning on January 1, 2019 and should be applied through a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. Early adoption is permitted. We anticipate this standard will have a material impact on our consolidated balance sheets. However, we do not believe adoption will have a material impact on our consolidated income statements. Upon implementation, the Company's lease payment obligations will be recognized at their estimated present value along with a corresponding right-of-use asset. Lease expense recognition will be generally consistent with current practice. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) Related to Simplifying the Measurement of Inventory, which applies to all inventory except inventory that is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is covered by the new guidance and should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments will be applied prospectively for fiscal years beginning after December 15, 2016. The Company does not expect a significant change upon implementation as cost is expected to be lower than net realizable value.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Summary of Significant Accounting Policies
Schedule of weighted average shares outstanding used in calculating basic and diluted earnings per share	2016 2015 2014 Basic Weighted Average Shares Outstanding Effect of Dilutive Securities — — — Diluted Weighted Average Shares Outstanding
Summary of potentially dilutive securities	2016 2015 2014 Stock Options 7,691,501 7,759,002 6,885,083 Range of Exercise Prices of Stock Options $3.09 - $11.49 $3.09 - $11.49 $3.09 - $10.20 Unvested Restricted Common Shares 850,000 850,000 740,000 Common Share Purchase Warrants None None None Range of Exercise Prices of Warrants n/a n/a n/a

FAIR MARKET VALUE MEASUREMENTS

FAIR MARKET VALUE MEASUREMENTS (Tables)	12 Months Ended
	Dec. 31, 2016
FAIR MARKET VALUE MEASUREMENTS
Schedule of carrying value and fair value of financial instruments other than trade receivables and payables	Based on the foregoing methods and assumptions, the carrying value and fair value of the Company’s financial instruments other than trade receivables and payables are as follows (in thousands): Carrying value Fair value Level 1 Level 2 Level 3 As of December 31, 2016 Financial assets Cash and cash equivalents $ $ $ $ — $ — Investment securities available for sale — — As of December 31, 2015 Financial assets Cash and cash equivalents $ $ $ $ — $ — Investment securities available for sale — —

Inventory (Tables)

Inventory (Tables)	12 Months Ended
	Dec. 31, 2016
Inventory
Schedule components of inventory	December 31, December 31, 2016 2015 Raw Materials $ $ Work in Process Finished Goods Total $ $

PROPERTY AND EQUIPMENT (Tables)

PROPERTY AND EQUIPMENT (Tables)	12 Months Ended
	Dec. 31, 2016
PROPERTY AND EQUIPMENT
Schedule of major classes of property and equipment, stated at cost	2016 2015 Leasehold Improvements $ $ Machinery and Equipment Information Technology & Office Equipment Laboratory Equipment Transportation Equipment Accumulated Depreciation Net Property and Equipment $ $
Summary of depreciation expense	2016 2015 2014 Depreciation expense $ $ $

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS (Tables)	12 Months Ended
	Dec. 31, 2016
GOODWILL AND INTANGIBLE ASSETS
Schedule of costs are being amortized	2016 2015 2014 Capitalized Licensing Fees $ $ $ Accumulated Amortization Capitalized Licensing Fees, Net of Amortization $ $ $ Amortization Expense $ $ $

ACCRUED LIABILITIES (Tables)

ACCRUED LIABILITIES (Tables)	12 Months Ended
	Dec. 31, 2016
ACCRUED LIABILITIES
Schedule of accrued liabilities	2016 2015 Accrued Research & Development Expense $ $ Accrued Compensation and Benefits Other Accrued Liabilities Total Accrued Liabilities $ $

OPERATING LEASES (Tables)

OPERATING LEASES (Tables)	12 Months Ended
	Dec. 31, 2016
OPERATING LEASES
Rent Expense Recognized Under Operating Leases	2016 2015 2014 Rent Expense Recognized Under Operating Leases $ $ $
Schedule of future minimum rental payments under operating lease agreements	Year ending December 31, 2017 $ Year ending December 31, 2018 Year ending December 31, 2019 Year ending December 31, 2020 Year ending December 31, 2021 Year ending December 31, 2022 and thereafter Total $

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2016
INCOME TAXES
Schedule of reconciliation of income tax expense at the statutory rate to income tax expense at Entity's effective tax rate	2016 2015 2014 Tax Expense (Benefit) Computed at 34 % of Pretax Income (Loss) $ $ $ Foreign Income Tax Expense — — Effect of Change in Valuation Allowance Total Income Tax Expense $ $ — $ —
Schedule of details of the net deferred tax asset	December 31, 2016 2015 Deferred tax assets: Net Operating Loss Carryforward $ $ Stock Based Compensation Deferred Revenue General Business Credit Accrued Expenses Inventories Book over Tax Depreciation Allowance for Doubtful Accounts Total Deferred Tax Assets Deferred Tax Liabilities: Goodwill & Intangible Assets Prepaid Expenses Total Deferred Tax Liabilities Subtotal Valuation Allowance Net Deferred Tax Asset $ — $ —

CAPITAL STOCK (Tables)

CAPITAL STOCK (Tables)	12 Months Ended
	Dec. 31, 2016
CAPITAL STOCK
Summary of capital stock share issuances	2016 2015 2014 Shares outstanding as of December 31, Summary of Share Issuances: Share Issuances related to Equity Compensation: Shares issued upon exercise of stock options by employees Proceeds realized from stock option exercises $ $ $ Average exercise price of options exercised $ $ $ Restricted Stock Grants — Share issuances related to Warrant Exercises Shares issued upon the exercise of warrants — Proceeds realized from warrant exercises — $ Share issuances related to Equity Offerings Shares issued pursuant to equity offerings — Proceeds realized from equity offerings — $

LONG TERM INCENTIVE PLAN & ST35

LONG TERM INCENTIVE PLAN & STOCK OPTIONS (Tables)	12 Months Ended
	Dec. 31, 2016
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Schedule of restricted shares	2016 2015 2014 Restricted Shares Granted - Average Market Value Per Share on Grant Date - $ $ Expense related to All Restricted Shares $ $ $ Unearned Stock Based Compensation for All Restricted Stock Awards Attributable to Future Periods. $
Summary of the status of the LTIP and the Old Plan	WEIGHTED AVERAGE AGGREGATE EXERCISE INTRINSIC SHARES PRICE VALUE Outstanding at December 31, 2013 $ Granted Exercised $ Forfeited Outstanding at December 31, 2014 $ Granted Exercised $ Forfeited Outstanding at December 31, 2015 $ Granted Exercised $ Forfeited Outstanding at December 31, 2016 $
Schedule of options outstanding and options exercisable by range of exercise prices	OPTIONS OUTSTANDING OPTIONS EXERCISABLE WEIGHTED REMAINING WEIGHTED AVERAGE NUMBER OF CONTRACTUAL EXERCISE NUMBER OF EXERCISE RANGE OF EXERCISE PRICES OPTIONS LIFE PRICE OPTIONS PRICE $3.09 to $4.93 2.0-6.5 yrs. $ $ $5.86 to $7.13 .9-9.7 yrs. $ $ $8.23 to 11.49 2.8-8.8 yrs. $ $ Total 5.7 yrs. $ $ Intrinsic Value $ $
Schedule of unvested options	WEIGHTED AVERAGE NUMBER OF FAIR MARKET UNVESTED VALUE AT OPTIONS GRANT DATE As of December 31, 2013 Granted $ Forfeited Vested As of December 31, 2014 Granted $ Forfeited Vested As of December 31, 2015 Granted $ Forfeited Vested As of December 31, 2016
Schedule of assumptions used in stock option valuation	2016 2015 2014 Volatility of share price 64 - 65 % 58 - 61 % 69 - 70 % Risk free interest rate 1.3-1.6 % 1.5 - 1.7 % 1.9 - 2.0 % Expected option life 6 yrs. 6 yrs. 6 yrs. Dividend Yield 0.0% 0.0% 0.0%

QUARTERLY RESULTS OF OPERATIO36

QUARTERLY RESULTS OF OPERATIONS (Tables)	12 Months Ended
	Dec. 31, 2016
QUARTERLY RESULTS OF OPERATIONS
Summary of the quarterly results of operations	The following is a summary of the quarterly results of operations for the years ended December 31, 2016 and 2015. First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Sales $ $ $ $ Cost of Sales Gross Profit Selling, General and Administrative Research and Product Development Operating Income (Loss) Interest and Investment Income, net Interest Expense — — — — Income (Loss) Before Income Taxes Income Tax Expense — — — Net Income (Loss) $ $ $ $ Basic And Diluted Earnings (Loss) Per Share $ $ $ $ First Quarter Second Quarter Third Quarter Fourth Quarter 2015 Sales $ $ $ $ Cost of Sales Gross Profit Selling, General and Administrative Research and Product Development Operating Income (Loss) Interest and Investment Income, net Interest Expense — — — — Income (Loss) Before Income Taxes Income Tax Expense — — — — Net Income (Loss) $ $ $ $ Basic And Diluted Earnings (Loss) Per Share $ $ $ $

SUMMARY OF SIGNIFICANT ACCOUN37

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition, PPE, Licensing and Research (Details) - USD ($)

1 Months Ended

3 Months Ended

12 Months Ended

Feb. 29, 2016

Oct. 31, 2014

Dec. 31, 2016

Sep. 30, 2016

Jun. 30, 2016

Mar. 31, 2016

Dec. 31, 2015

Sep. 30, 2015

Jun. 30, 2015

Mar. 31, 2015

Dec. 31, 2016

Dec. 31, 2015

Dec. 31, 2014

Research and Product Development

Product development and research costs

$ 1,200,729

$ 1,261,863

$ 2,063,324

$ 1,314,430

$ 2,029,736

$ 1,246,727

$ 885,259

$ 799,591

$ 5,840,346

$ 4,961,313

$ 7,783,594

Minimum

PROPERTY AND EQUIPMENT

Useful life

3 years

Maximum

PROPERTY AND EQUIPMENT

Useful life

10 years

Wanbang Biopharmaceutical

Revenue Recognition

Upfront payment

$ 4,000,000

Baxter Healthcare Organization

Revenue Recognition

Upfront payment

$ 20,000,000

Initial Payment Received

$ 20,000,000

SUMMARY OF SIGNIFICANT ACCOUN38

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock Options, Warrants, and Restricted Common Stock (Details) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Weighted average shares outstanding used in calculating basic and diluted earnings per share
Basic Weighted Average Shares Outstanding	50,676,180	50,068,129	41,404,999
Diluted Weighted Average Shares Outstanding	50,676,180	50,068,129	41,404,999
Exercise price (in dollars per share)			$ 9.32
Stock options
Weighted average shares outstanding used in calculating basic and diluted earnings per share
Securities excluded from diluted loss per share calculation	7,691,501	7,759,002	6,885,083
Stock options | Minimum
Weighted average shares outstanding used in calculating basic and diluted earnings per share
Exercisable price (in dollars per share)	$ 3.09	$ 3.09	$ 3.09
Stock options | Maximum
Weighted average shares outstanding used in calculating basic and diluted earnings per share
Exercisable price (in dollars per share)	$ 11.49	$ 11.49	$ 10.20
Restricted common shares
Weighted average shares outstanding used in calculating basic and diluted earnings per share
Securities excluded from diluted loss per share calculation	850,000	850,000	740,000

FAIR MARKET VALUE MEASUREMENT39

FAIR MARKET VALUE MEASUREMENTS (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Financial assets
Investment securities available for sale	$ 24,491,677	$ 1,469,000
Carrying value
Financial assets
Cash and cash equivalents	17,181,000	31,198,000
Investment securities available for sale	40,760,000	39,483,000
Fair value
Financial assets
Cash and cash equivalents	17,181,000	31,198,000
Investment securities available for sale	40,760,000	39,483,000
Fair value | Level 1
Financial assets
Cash and cash equivalents	17,181,000	31,198,000
Investment securities available for sale	$ 40,760,000	$ 39,483,000

INVESTMENTS IN AVAILABLE FOR 40

INVESTMENTS IN AVAILABLE FOR SALE SECURITIES (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
INVESTMENTS IN AVAILABLE FOR SALE SECURITIES
Investments available for sale	$ 40,759,703	$ 39,482,732
Market value of securities purchased	25,781,853	21,800,000	$ 13,100,000
Unrealized losses	901,877	985,374
Unrealized gains		69,877
Market value of securities sold	24,491,677	1,469,000
Average cost basis	24,518,497	1,527,095
Realized gains	156,461
Realized losses	$ 183,281	$ 58,095

SIGNIFICANT MARKET SEGMENTS A41

SIGNIFICANT MARKET SEGMENTS AND CUSTOMERS (Details)	12 Months Ended
	Dec. 31, 2016USD ($)customer	Dec. 31, 2015USD ($)customer	Dec. 31, 2014customer
Significant market segments
Accounts receivable	$ 6,393,228	$ 5,046,733
Assets	$ 83,153,638	$ 87,822,125
International sales
Significant market segments
Direct sales percentage of sales	12.00%	13.00%	13.00%
DaVita Healthcare Partners, Inc.
Significant market segments
Accounts receivable	$ 2,224,046	$ 2,156,000
Number of customers | customer	1	1	1
DaVita Healthcare Partners, Inc. | Customer concentration
Significant market segments
Direct sales percentage of sales	52.00%	48.00%	49.00%
Baxter Healthcare Organization
Significant market segments
Accounts receivable	$ 2,430,159	$ 2,088,000
Baxter Healthcare Organization | Customer concentration
Significant market segments
Direct sales percentage of sales	24.00%	28.00%

Distribution Agreement (Details

Distribution Agreement (Details) - Baxter Healthcare Organization - USD ($)	Sep. 12, 2016	Oct. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Upfront payment		$ 20,000,000
Deferred Revenue, Revenue Recognized			$ 2,065,785	$ 2,081,668	$ 507,480
Agreement termination notice period			270 days
Agreement termination significant price increase notice period			45 days
Agreement termination limited non-compete period			2 years
Agreement Refund Trigger Event repayment percent first criteria			50.00%
Agreement Refund Trigger Event repayment percent second criteria			33.00%
Agreement Refund Trigger Event repayment percent third criteria			25.00%
Agreement property infringement repayment amount first criteria			$ 10,000,000
Agreement property infringement repayment amount second criteria			$ 6,600,000
Agreement prepayment secured long-term indebtedness period			180 days
Facility Fee			$ 10,000,000
Agreement extension period			5 years
Extension fee			$ 7,500,000
Agreement extension period two			5 years
Upfront payment claimed	$ 10,000,000

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
Inventory
Raw Materials	$ 10,903,084	$ 5,504,915
Work in Process	86,452	165,910
Finished Goods	2,978,090	2,200,955
Total	13,967,626	$ 7,871,780
Inventory, non-current related to Triferic	$ 1,826,554

PROPERTY AND EQUIPMENT (Details

PROPERTY AND EQUIPMENT (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Property and equipment
Gross Property and Equipment	$ 11,066,926	$ 10,940,833
Accumulated Depreciation	(9,675,351)	(9,294,265)
Property, Plant and Equipment, Net	1,391,575	1,646,568
Depreciation expense	601,093	655,265	$ 829,292
Leasehold Improvements
Property and equipment
Gross Property and Equipment	728,151	682,992
Machinery and Equipment
Property and equipment
Gross Property and Equipment	7,169,223	7,042,836
Information Technology & Office Equipment
Property and equipment
Gross Property and Equipment	2,293,587	2,273,289
Laboratory Equipment
Property and equipment
Gross Property and Equipment	610,767	668,607
Transportation Equipment
Property and equipment
Gross Property and Equipment	$ 265,198	$ 273,109

GOODWILL AND INTANGIBLE ASSET45

GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)	Nov. 30, 2016	Nov. 30, 2015	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2011
Intangible assets
Goodwill				$ 920,745	$ 920,745
Adjustment for impairment of goodwill	$ 0	$ 0
Milestone achievement expense					275,000
Global licensing agreement
Intangible assets
Capitalized Licensing Fees				1,070,126	1,070,126	$ 1,070,126
Accumulated Amortization				(1,065,744)	(904,469)	(737,440)
Capitalized Licensing Fees, Net of Amortization				4,382	165,657	332,686
Amortization expense				$ 161,275	$ 167,029	$ 167,029
ANDA
Intangible assets
Amortization period				5 years
Capitalized Licensing Fees, Net of Amortization							$ 695,000
Patent costs | Forecast
Intangible assets
Amortization expense			$ 353

ACCRUED LIABILITIES (Details)

ACCRUED LIABILITIES (Details) - USD ($)	Dec. 31, 2016	Dec. 31, 2015
ACCRUED LIABILITIES
Accrued Research & Development Expense	$ 193,638	$ 219,070
Accrued Compensation and Benefits	2,002,767	1,893,144
Other Accrued Liabilities	2,013,746	1,719,142
Total Accrued Liabilities	$ 4,210,151	$ 3,831,356

OPERATING LEASES (Details)

OPERATING LEASES (Details)	12 Months Ended
	Dec. 31, 2016USD ($)ft²	Dec. 31, 2015USD ($)	Dec. 31, 2014USD ($)
OPERATING LEASES
Area occupied by Entity (in square feet) | ft²	51,000
Rent Expense Recognized Under Operating Leases	$ 2,369,101	$ 2,301,930	$ 2,075,919
Future minimum rental payments under operating lease agreements
Year ending December 31, 2017	1,956,338
Year ending December 31, 2018	1,827,752
Year ending December 31, 2019	1,374,550
Year ending December 31, 2020	614,292
Year ending December 31, 2021	196,975
Year ending December 31, 2022 and thereafter	54,726
Total	$ 6,024,633
Maximum
OPERATING LEASES
Lease term	7 years
Michigan
OPERATING LEASES
Area occupied by Entity (in square feet) | ft²	17,500
Texas
OPERATING LEASES
Area occupied by Entity (in square feet) | ft²	51,000
South Carolina
OPERATING LEASES
Area occupied by Entity (in square feet) | ft²	57,000

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
INCOME TAXES
Statutory rate (as a percent)		34.00%
Reconciliation of income tax expense at the statutory rate to income tax expense at Entity's effective tax rate
Tax Expense (Benefit) Computed at 34 % of Pretax Income (Loss)		$ (6,595,452)	$ (4,903,000)	$ (7,251,000)
Foreign Income Tax Expense		(404,527)
Effect of Change in Valuation Allowance		(6,595,452)	(4,903,000)	(7,251,000)
Total Income Tax Expense	$ (404,527)	(404,527)	0	$ 0
Deferred tax assets:
Net Operating Loss Carryforward		51,463,000	52,669,000
Stock Based Compensation		7,704,000	4,223,000
Deferred Revenue		6,478,000	5,920,000
General Business Credit		6,146,000	5,741,000
Accrued Expenses		605,000	511,000
Inventories		494,000	163,000
Book over Tax Depreciation		61,000	47,000
Accounts Receivable		2,000	26,000
Total Deferred Tax Assets		72,953,000	69,300,000
Deferred Tax Liabilities:
Goodwill & Intangible Assets		137,000	167,000
Prepaid Expenses		182,000	119,000
Total Deferred Tax Liabilities		319,000	286,000
Subtotal		72,634,000	69,014,000
Valuation Allowance		(72,634,000)	(69,014,000)
Net Deferred Tax Asset		0	$ 0
Net operating loss carryforwards that expire between 2018 and 20136		151,400,000
Excess tax benefits on share based compensation that would be credited directly to contributed capital, if recognized		$ 5,400,000

CAPITAL STOCK - Shares (Details

CAPITAL STOCK - Shares (Details)	12 Months Ended
	Dec. 31, 2016USD ($)Vote$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares
CAPITAL STOCK
Preferred Shares, shares authorized	2,000,000	2,000,000	2,000,000
Preferred Shares, shares issued	0	0	0
Preferred Shares, shares outstanding	0	0	0
Common Shares, shares authorized	120,000,000	120,000,000	120,000,000
Common Shares, par value (in dollars per share) | $ / shares	$ 0	$ 0	$ 0
Common Shares, shares outstanding	51,527,711	51,501,877	50,284,007
Share Issuances related to Equity Compensation:
Shares issued upon exercise of stock options by employees	25,834	657,998	711,516
Proceeds realized from stock option exercises (in dollars) | $	$ 80,161	$ 2,780,188	$ 2,964,445
Average exercise price of options exercised (in dollars per share) | $ / shares	$ 3.10	$ 4.23	$ 4.17
Restricted Stock Grants (in shares)		850,000	740,000
Share issuances related to Warrant Exercises
Shares issued upon the exercise of warrants			904,886
Proceeds realized from warrant exercises (in dollars) | $			$ 8,433,045
Share issuances related to Equity Offerings
Shares issued pursuant to equity offerings			7,816,944
Proceeds realized from equity offerings (in dollars) | $			$ 69,780,967
Share issuances in Exchange for Services
Number of votes per common share | Vote	1

CAPITAL STOCK - Warrants (Detai

CAPITAL STOCK - Warrants (Details) - USD ($)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
CAPITAL STOCK
Outstanding warrants		0	0
Proceeds realized from warrant exercises (in dollars)	$ 8,433,045
Number of warrants exercised	904,886
Exercise price (in dollars per share)	$ 9.32

LONG TERM INCENTIVE PLAN & ST51

LONG TERM INCENTIVE PLAN & STOCK OPTIONS - Summary of LTIP (Details)	1 Months Ended			12 Months Ended			120 Months Ended
	Oct. 31, 2015shares	Oct. 31, 2014shares	Jan. 31, 2014$ / sharesshares	Dec. 31, 2016USD ($)installment$ / sharesshares	Dec. 31, 2015USD ($)$ / sharesshares	Dec. 31, 2014USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2013USD ($)
Additional disclosures
Restricted Shares Granted					850,000	740,000
Expense related to All Restricted Shares | $						$ 4,597,412
Cash proceeds received upon the exercise of options | $				$ 80,161	$ 2,780,188	2,964,445
Income tax benefits related to stock option activity | $				20,000		$ 2,009,000
Income tax expense related to stock option activity | $					$ (943,000)
Excess tax benefits on share based compensation that would be credited directly to contributed capital, if recognized | $				$ 5,400,000			$ 5,400,000
WEIGHTED AVERAGE EXERCISE PRICE
Exercised (in dollars per share) | $ / shares				$ 3.10	$ 4.23	$ 4.17
AGGREGATE INTRINSIC VALUE
Outstanding (in dollars) | $				$ 1,821,384			1,821,384
Stock options
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Expiration term				10 years
Number of vesting installments | installment				3
Vesting period				3 years
Additional disclosures
Minimum period for which previously issued shares are to be held by the recipient for non-cash exchange to newly issued shares				6 months
LTIP And Old Plan
AGGREGATE INTRINSIC VALUE
Outstanding (in dollars) | $				$ 1,821,384	$ 18,648,477	$ 19,730,211	$ 1,821,384	$ 25,956,880
Exercised (in dollars) | $				$ 112,280
LTIP And Old Plan | Stock options
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Options granted (in shares)				30,000	1,697,500	1,731,500
SHARES
Outstanding at the beginning of the period (in shares)			6,228,000	7,759,002	6,885,083	6,228,000
Granted (in shares)				30,000	1,697,500	1,731,500
Exercised (in shares)				(25,834)	(794,248)	(1,029,016)
Forfeited (in shares)				(71,667)	(29,333)	(45,401)
Outstanding at the end of the period (in shares)				7,691,501	7,759,002	6,885,083	7,691,501
WEIGHTED AVERAGE EXERCISE PRICE
Outstanding at the beginning of the period (in dollars per share) | $ / shares			$ 6.27	$ 7.84	$ 7.41	$ 6.27
Granted (in dollars per share) | $ / shares				6.54	8.30	9.43
Exercised (in dollars per share) | $ / shares				4.35	3.50	2.88
Forfeited (in dollars per share) | $ / shares				9.33	6.91	6.19
Outstanding at the end of the period (in dollars per share) | $ / shares				$ 7.83	$ 7.84	$ 7.41	$ 7.83
AGGREGATE INTRINSIC VALUE
Exercised (in dollars) | $					$ 2,780,188	$ 2,964,445
LTIP
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Number of common shares reserved for issuance				11,500,000			11,500,000
Additional disclosures
Restricted Shares Granted				0	850,000	740,000
Expense related to All Restricted Shares | $				$ 5,984,524	$ 5,193,481
LTIP | Restricted common shares
Additional disclosures
Restricted Shares Granted					850,000	740,000
Average Market Value Per Share on Grant Date | $ / shares					$ 8.23	$ 9.42
Expense related to All Restricted Shares | $				4,361,760	$ 3,694,496	$ 5,497,274
Unearned Stock Based Compensation for All Restricted Stock Awards Attributable to Future Periods | $				$ 1,549,259			$ 1,549,259
LTIP | Restricted common shares | 2014 grant
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Vesting period		7 months	14 months
Additional disclosures
Restricted Shares Granted		420,000	320,000
LTIP | Restricted common shares | 2015 grant
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Vesting period	20 months
Additional disclosures
Restricted Shares Granted	850,000
Old Plan
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Options granted (in shares)							0
SHARES
Granted (in shares)							0
Outstanding at the end of the period (in shares)				0			0

LONG TERM INCENTIVE PLAN & ST52

LONG TERM INCENTIVE PLAN & STOCK OPTIONS - Options (Details)	12 Months Ended
	Dec. 31, 2016USD ($)$ / sharesshares
OPTIONS OUTSTANDING
NUMBER OF OPTIONS (in shares) | shares	7,691,501
REMAINING CONTRACTUAL LIFE	5 years 8 months 12 days
WEIGHTED EXERCISE PRICE (in dollars per share)	$ 7.83
Intrinsic Value (in dollars) | $	$ 1,821,384
OPTIONS EXERCISABLE
NUMBER OF OPTIONS (in shares) | shares	5,989,335
WEIGHTED EXERCISE PRICE (in dollars per share)	$ 7.61
Intrinsic Value (in dollars) | $	$ 1,821,134
$3.09 to $4.93
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Exercise price, low end of range (in dollars per share)	$ 3.09
Exercise price, high end of range (in dollars per share)	$ 4.93
OPTIONS OUTSTANDING
NUMBER OF OPTIONS (in shares) | shares	392,500
WEIGHTED EXERCISE PRICE (in dollars per share)	$ 3.31
OPTIONS EXERCISABLE
NUMBER OF OPTIONS (in shares) | shares	392,500
WEIGHTED EXERCISE PRICE (in dollars per share)	$ 3.31
$3.09 to $4.93 | Minimum
OPTIONS OUTSTANDING
REMAINING CONTRACTUAL LIFE	2 years
$3.09 to $4.93 | Maximum
OPTIONS OUTSTANDING
REMAINING CONTRACTUAL LIFE	6 years 6 months
$5.86 to $7.13
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Exercise price, low end of range (in dollars per share)	$ 5.86
Exercise price, high end of range (in dollars per share)	$ 7.13
OPTIONS OUTSTANDING
NUMBER OF OPTIONS (in shares) | shares	2,513,000
WEIGHTED EXERCISE PRICE (in dollars per share)	$ 6.44
OPTIONS EXERCISABLE
NUMBER OF OPTIONS (in shares) | shares	2,483,000
WEIGHTED EXERCISE PRICE (in dollars per share)	$ 6.44
$5.86 to $7.13 | Minimum
OPTIONS OUTSTANDING
REMAINING CONTRACTUAL LIFE	10 months 24 days
$5.86 to $7.13 | Maximum
OPTIONS OUTSTANDING
REMAINING CONTRACTUAL LIFE	9 years 8 months 12 days
$8.23 to $11.49
LONG TERM INCENTIVE PLAN & STOCK OPTIONS
Exercise price, low end of range (in dollars per share)	$ 8.23
Exercise price, high end of range (in dollars per share)	$ 11.49
OPTIONS OUTSTANDING
NUMBER OF OPTIONS (in shares) | shares	4,786,001
WEIGHTED EXERCISE PRICE (in dollars per share)	$ 8.94
OPTIONS EXERCISABLE
NUMBER OF OPTIONS (in shares) | shares	3,113,835
WEIGHTED EXERCISE PRICE (in dollars per share)	$ 9.09
$8.23 to $11.49 | Minimum
OPTIONS OUTSTANDING
REMAINING CONTRACTUAL LIFE	2 years 9 months 18 days
$8.23 to $11.49 | Maximum
OPTIONS OUTSTANDING
REMAINING CONTRACTUAL LIFE	8 years 9 months 18 days

LONG TERM INCENTIVE PLAN & ST53

LONG TERM INCENTIVE PLAN & STOCK OPTIONS - Unvested Options and Value (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Additional disclosures
Compensation expense (in dollars)			$ 4,597,412
Unrecorded stock-based compensation expense (in dollars)	$ 5,834,369
Minimum
Additional disclosures
Period for amortizing unrecognized compensation cost to expense	1 month
Maximum
Additional disclosures
Period for amortizing unrecognized compensation cost to expense	30 months
Stock options
NUMBER OF UNVESTED OPTIONS
Beginning of the period (in shares)	3,114,611	2,580,500	1,714,433
Granted (in shares)	30,000	1,697,500	1,731,500
Forfeited (in shares)	(71,667)	(28,333)	(45,401)
Vested (in shares)	(1,370,778)	(1,135,056)	(820,032)
End of the period (in shares)	1,702,166	3,114,611	2,580,500
WEIGHTED AVERAGE FAIR MARKET VALUE AT GRANT DATE
Granted (in dollars per share)	$ 3.85	$ 4.56	$ 5.91
Assumptions used to estimate the fair market value of stock options granted
Expected option life	6 years	6 years	6 years
Dividend yield (as a percent)	0.00%	0.00%	0.00%
Additional disclosures
Expiration term	10 years
Vesting period	3 years
Stock options | Minimum
Assumptions used to estimate the fair market value of stock options granted
Volatility of share price (as a percent)	64.00%	58.00%	69.00%
Risk free interest rate (as a percent)	1.30%	1.50%	1.90%
Stock options | Maximum
Assumptions used to estimate the fair market value of stock options granted
Volatility of share price (as a percent)	65.00%	61.00%	70.00%
Risk free interest rate (as a percent)	1.60%	1.70%	2.00%
LTIP
Additional disclosures
Compensation expense (in dollars)	$ 5,984,524	$ 5,193,481
Remaining number of common shares available for equity awards	545,694

RISK MANAGEMENT (Details)

RISK MANAGEMENT (Details) - USD ($)	Jul. 01, 2017	Dec. 31, 2016
RISK MANAGEMENT
Self insurance retention per occurrence	$ 350,000
Aggregate coverage	$ 580,388
Retention limit in excess of claims paid and accrued		$ 298,000
Estimated additional future claims		196,537
Cash collateral and escrow held by insurance carrier for workers' compensation insurance		$ 300,000

QUARTERLY RESULTS OF OPERATIO55

QUARTERLY RESULTS OF OPERATIONS (Details) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
QUARTERLY RESULTS OF OPERATIONS
Sales	$ 13,389,786	$ 12,814,815	$ 13,452,517	$ 13,627,048	$ 14,132,637	$ 14,378,528	$ 12,955,576	$ 13,883,961	$ 53,284,166	$ 55,350,702	$ 54,188,444
Cost of Sales	11,401,603	11,234,934	11,962,989	11,932,122	12,076,489	11,875,122	10,889,619	11,571,618	46,531,648	46,412,848	45,643,231
Gross Profit	1,988,183	1,579,881	1,489,528	1,694,926	2,056,148	2,503,406	2,065,957	2,312,343	6,752,518	8,937,854	8,545,213
Selling, General and Administrative	6,049,663	5,070,127	5,014,370	4,986,741	6,089,606	3,827,904	3,835,596	5,325,761	21,120,901	19,078,867	18,320,720
Research and Product Development	1,200,729	1,261,863	2,063,324	1,314,430	2,029,736	1,246,727	885,259	799,591	5,840,346	4,961,313	7,783,594
Operating Income (Loss)	(5,262,209)	(4,752,109)	(5,588,166)	(4,606,245)	(6,063,194)	(2,571,225)	(2,654,898)	(3,813,009)	(20,208,729)	(15,102,326)	(17,559,101)
Interest and Investment Income, net	207,911	188,847	227,020	186,562	293,238	156,672	118,151	113,815	810,340	681,876	386,257
Interest Expense											4,154,313
Income (Loss) Before Income Taxes	(5,054,298)	(4,563,262)	(5,361,146)	(4,419,683)	(5,769,956)	(2,414,553)	(2,536,747)	(3,699,194)	(19,398,389)	(14,420,450)	(21,327,157)
Income Tax Expense				404,527					404,527	0	0
Net Income (Loss)	$ (5,054,298)	$ (4,563,262)	$ (5,361,146)	$ (4,824,210)	$ (5,769,956)	$ (2,414,553)	$ (2,536,747)	$ (3,699,194)	$ (19,802,916)	$ (14,420,450)	$ (21,327,157)
Basic And Diluted Earnings (Loss) Per Share (in dollars per share)	$ (0.10)	$ (0.09)	$ (0.11)	$ (0.10)	$ (0.12)	$ (0.05)	$ (0.05)	$ (0.07)

SCHEDULE II - VALUATION AND Q56

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Allowance for Doubtful Accounts
Valuation and Qualifying Accounts
Balance at Beginning of Period	$ 75,160	$ 52,213	$ 37,392
Additions	13,348	72,877	40,714
(Deductions)	(83,277)	(49,930)	(25,893)
Balance at End of Period	5,231	75,160	52,213
Inventory Reserve
Valuation and Qualifying Accounts
Balance at Beginning of Period	10,662	27,274	35,009
Additions	564,451	59,581	19,701
(Deductions)	(11,298)	(76,193)	(27,435)
Balance at End of Period	563,815	10,662	27,274
Deferred Tax Asset Valuation Allowance
Valuation and Qualifying Accounts
Balance at Beginning of Period	69,014,000	69,307,000	56,272,000
Additions	3,620,000		13,035,000
(Deductions)		(293,000)
Balance at End of Period	$ 72,634,000	$ 69,014,000	$ 69,307,000