Cytosorbents (CTSO) 10-Q 13 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 10, 2015
Documentand Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Trading Symbol	ctso
Entity Registrant Name	Cytosorbents Corp
Entity Central Index Key	1,175,151
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		25,365,673

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets:
Cash and cash equivalents	$ 7,385,591	$ 3,605,280
Short-term investments	1,943,000	1,944,547
Grants and accounts receivable, net of allowance for doubtful accounts of $4,474 at September 30, 2015 and $3,756 at December 31, 2014	553,383	819,151
Inventories	1,337,185	537,566
Prepaid expenses and other current assets	372,332	700,462
Total current assets	11,591,491	7,607,006
Property and equipment, net	479,537	245,821
Other assets	731,272	615,798
Total Assets	12,802,300	8,468,625
Current Liabilities:
Accounts payable	526,670	698,307
Accrued expenses and other current liabilities	$ 756,336	824,884
Deferred revenue		833
Warrant liability	$ 2,163,840	2,981,418
Total current liabilities	$ 3,446,846	$ 4,505,442
Stockholders' Equity:
Preferred Stock, 5,000,000 shares authorized; -0- shares issued and outstanding at September 30, 2015 and December 31, 2014
Common Stock, 50,000,000 shares authorized; 25,177,005 and 23,304,640 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively	$ 25,177	$ 23,305
Additional paid-in capital	139,408,750	128,106,297
Accumulated other comprehensive income	445,712	227,701
Accumulated deficit	(130,524,185)	(124,394,120)
Total stockholders' equity	9,355,454	3,963,183
Total Liabilities and Stockholders' Equity	$ 12,802,300	$ 8,468,625

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Allowance for doubtful accounts	$ 4,474	$ 3,756
Preferred Stock, shares authorized	5,000,000	5,000,000
Preferred Stock, shares issued	0	0
Preferred Stock, shares outstanding	0	0
Common Stock, shares authorized	50,000,000	50,000,000
Common Stock, shares issued	25,177,005	23,304,640
Common Stock, shares outstanding	25,177,005	23,304,640

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue:
Sales	$ 1,071,459	$ 1,031,761	$ 2,548,229	$ 2,264,237
Grant income	$ 272,166	128,087	470,406	978,271
Other revenue		2,499	11,987	6,666
Total revenue	$ 1,343,625	1,162,347	3,030,622	3,249,174
Cost of revenue	638,830	475,890	1,408,742	1,804,578
Gross profit	704,795	686,457	1,621,880	1,444,596
Other expenses:
Research and development	866,334	880,292	2,619,018	1,464,059
Legal, financial and other consulting	288,722	49,221	802,153	451,731
Selling, general and administrative	1,700,035	1,240,497	4,841,600	3,518,374
Total expenses	2,855,091	2,170,010	8,262,771	5,434,164
Loss from operations	(2,150,296)	(1,483,553)	(6,640,891)	(3,989,568)
Other income/(expense):
Interest income (expense), net	3,190	(46,600)	8,842	(311,458)
Gain (loss) on foreign currency transactions	70,993	(202,797)	(315,594)	(234,089)
Change in warrant liability	(771,328)	234,600	817,578	208,080
Total other income (expense), net	(697,145)	(14,797)	510,826	(337,467)
Loss before benefit from income taxes	$ (2,847,441)	$ (1,498,350)	$ (6,130,065)	$ (4,327,035)
Benefit from income taxes
Net loss	$ (2,847,441)	$ (1,498,350)	$ (6,130,065)	$ (4,327,035)
Preferred stock dividend		1,281,058		3,769,819
Net loss available to common shareholders	$ (2,847,441)	$ (2,779,408)	$ (6,130,065)	$ (8,096,854)
Basic and diluted net loss per common share	$ (0.11)	$ (0.22)	$ (0.25)	$ (0.69)
Weighted average number of shares of common stock outstanding:	25,037,538	12,496,014	24,812,707	11,727,573
Weighted average number of shares of common stock outstanding:
Net loss	$ (2,847,441)	$ (1,498,350)	$ (6,130,065)	$ (4,327,035)
Other comprehensive income (loss):
Currency translation adjustment	(49,807)	118,032	218,011	123,183
Comprehensive loss	$ (2,897,248)	$ (1,380,318)	$ (5,912,054)	$ (4,203,852)

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2015 - USD ($)	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]
Balance at Dec. 31, 2014	$ 3,963,183	$ 23,305	$ 128,106,297	$ 227,701	$ (124,394,120)
Balance, shares at Dec. 31, 2014		23,304,640
Stock based compensation - employees, consultants and directors	260,232		260,232
Issuance of common stock - offering, net of fees incurred	9,408,584	$ 1,250	$ 9,407,334
Issuance of common stock - offering, net of fees incurred, shares		1,250,000
Other comprehensive income/(loss): foreign translation adjustment	$ 218,011			$ 218,011
Cashless exercise of warrants		$ 52	$ (52)
Cashless exercise of warrants, shares		51,810
Proceeds from exercise of warrants	$ 1,272,424	$ 305	1,272,119
Proceeds from exercise of warrants, shares		305,202
Cashless exercise of stock options		$ 11	(11)
Cashless exercise of stock options, shares	275,114	10,648
Proceeds from exercise of stock options	$ 363,085	$ 254	$ 362,831
Proceeds from exercise of stock options, shares		254,705
Net loss	(6,130,065)				$ (6,130,065)
Balance at Sep. 30, 2015	$ 9,355,454	$ 25,177	$ 139,408,750	$ 445,712	$ (130,524,185)
Balance, shares at Sep. 30, 2015		25,177,005

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities:
Net loss	$ (6,130,065)	$ (4,327,035)
Adjustments to reconcile net loss to net cash used in operating activities:
Issuance of common stock to consultant for services		180,100
Depreciation and amortization	$ 78,430	70,449
Amortization of debt discount		198,644
Bad debt expense		3,236
Stock-based compensation	$ 260,232	150,273
Change in warrant liability	(817,578)	$ (208,080)
Foreign currency transaction losses	211,547
Changes in operating assets and liabilities:
Grants and accounts receivable	237,202	$ (112,183)
Inventories	(769,352)	(141,467)
Prepaid expenses and other current assets	322,000	380,308
Other assets	(7,134)	(4,568)
Accounts payable and accrued expenses	(206,763)	(109,500)
Deferred revenue	(833)	(269,026)
Net cash used by operating activities	(6,822,314)	(4,188,849)
Cash flows from investing activities:
Purchases of property and equipment	(296,362)	(89,495)
Patent costs	(127,848)	$ (89,762)
Proceeds from sales of short-term investments	3,936,547
Purchases of short-term investments	(3,935,000)	$ (7,346,994)
Net cash used by investing activities	(422,663)	(7,526,251)
Cash flows from financing activities:
Proceeds from issuance of common stock	9,408,584	9,751,455
Proceeds from exercise of stock options	363,085	$ 90,855
Proceeds from exercise of warrants	1,272,424
Net cash provided by financing activities	11,044,093	$ 9,842,310
Effect of exchange rates on cash	(18,805)	123,183
Net change in cash and cash equivalents	3,780,311	(1,749,607)
Cash and cash equivalents - beginning of period	3,605,280	2,183,030
Cash and cash equivalents - end of period	$ 7,385,591	433,423
Supplemental schedule of noncash investing and financing activities:
Fair value of warrant liability		862,920
Fair value of shares issued as cost of raising capital		7,137
Note payable principal and interest conversion to equity		1,990,440
Costs paid from proceeds in conjunction with issuance of common stock and preferred stock	$ 903,916	748,545
Preferred stock dividends		$ 3,769,819

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2015
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	1. BASIS OF PRESENTATION The Company's interim financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). In the opinion of management, the Company has made all necessary adjustments, which include normal recurring adjustments necessary for a fair statement of the Company's financial position and results of operations for the interim periods presented. Certain information and disclosures normally included in the annual financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. These interim financial statements should be read in conjunction with the audited financial statements and accompanying notes for the year ended December 31, 2014 included in the Company's Annual Report on Form 10-K, as filed with the SEC on March 31, 2015. The results for the three months and nine months ended September 30, 2015 are not necessarily indicative of the results to be expected for a full year, any other interim periods or any future year or period. The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company believes that it has adequate funding for more than the next twelve months of operations, however, it may have to raise additional capital to fund its future operations. As of September 30, 2015 , the Company had an accumulated deficit of $ 130,524,185 6,130,065 nine months ended September 30, 2015 and $ 4,327,035 nine months ended September 30, 2014 . The Company's losses have resulted principally from costs incurred in the research and development of the Company's polymer technology and selling, general and administrative expenses. The Company intends to continue to conduct significant additional research, development, and clinical study activities which, together with expenses incurred for the establishment of manufacturing arrangements and a marketing and distribution presence and other selling, general and administrative expenses, are expected to result in continuing operating losses for the foreseeable future. The amount of future losses and when, if ever, the Company will achieve profitability are uncertain. The Company's ability to achieve profitability will depend, among other things, on successfully completing the development of the Company's technology and commercial products, obtaining additional requisite regulatory approvals in markets not covered by the CE Mark and for potential label extensions of the Company's current CE Mark, establishing manufacturing and sales and marketing arrangements with third parties, and raising sufficient funds to finance the Company's activities. No assurance can be given that the Company's product development efforts will be successful, that the Company's current CE Mark will enable us to achieve profitability, that additional regulatory approvals in other countries will be obtained, that any of the Company's products will be manufactured at a competitive cost and will be of acceptable quality, or that the Company will be able to achieve profitability or that profitability, if achieved, can be sustained. These matters raise substantial doubt about the Company's ability to continue as a going concern. These consolidated financial statements do not include any adjustments related to the outcome of this uncertainty.

PRINCIPAL BUSINESS ACTIVITY AND

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2015
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Business The Company is a leader in critical care immunotherapy commercializing its CytoSorb® blood purification technology to reduce deadly uncontrolled inflammation in hospitalized patients around the world with the goal of preventing or treating multiple organ failure in life-threatening illnesses. The Company, through its subsidiary CytoSorbents Medical Inc. (formerly known as CytoSorbents, Inc.), is engaged in the research, development and commercialization of medical devices with its blood purification technology platform which incorporates a proprietary adsorbent, porous polymer technology. The Company, through its European Subsidiary, conducts sales and marketing related operations for the CytoSorb ® ®, t ® The technology is based upon biocompatible, highly porous polymer sorbent beads that can actively remove toxic substances from blood and other bodily fluids by pore capture and surface absorption. The Company has numerous products under development based upon this unique blood purification technology, which is protected by 32 issued U.S. patents and multiple applications pending, including HemoDefend™, ContrastSorb, DrugSorb, and others, with multiple patent applications pending both in the United States and internationally. The Company's intellectual property consists of composition of matter, materials, method of production systems incorporating the technology, and multiple medical uses with expiration dates ranging from two 11 Reverse Stock Split On December 3, 2014, the Company effected a twenty-five Stock Market Listing On December 17, 2014 the Company's common stock was approved for listing on the NASDAQ Capital Market (“NASDAQ”), and it began trading on NASDAQ on December 23, 2014 under the symbol “CTSO”. Previously, the Company's common stock traded in the over-the-counter-market on the OTC Bulletin Board. Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include the accounts of the Parent, CytoSorbents Corporation, and its wholly-owned subsidiaries, CytoSorbents Medical, Inc. and CytoSorbents Europe GmbH. All significant intercompany transactions and balances have been eliminated in consolidation. Translation gains and losses resulting from the process of remeasuring into the U.S. dollar, the foreign currency financial statements of the European subsidiary, for which the U.S. dollar is the functional currency, are included in operations. Foreign currency transaction losses included in net loss amounted to $ 315,594 234,089 Cash and Cash Equivalents The Company considers Grants and Accounts Receivable Grants receivable represent amounts due from U.S. government agencies. Accounts receivable are unsecured, non-interest bearing customer obligations due under normal trade terms. The Company sells its devices to various hospitals and distributors. The Company performs ongoing credit evaluations of customers' financial condition. Management reviews accounts receivable periodically to determine collectability. Balances that are determined to be uncollectible are written off to the allowance for doubtful accounts. Short-Term Investments Short-term investments include certificates of deposit with original maturities of greater than three months. The cost of the certificates of deposit approximates fair value. Inventories Inventories are valued at the lower of cost or market. At September 30, 2015 and December 31, 2014, the Company's inventory was comprised of finished goods, which amounted to $ 473,452 142,693 791,243 326,047 72,490 68,826 Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is provided for by the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lesser of their economic useful lives or the term of the related leases. Gains and losses on depreciable assets retired or sold are recognized in the statements of operations in the year of disposal. Repairs and maintenance expenditures are expensed as incurred. Patents Legal costs incurred to establish and successfully defend patents are capitalized. When patents are issued, capitalized costs are amortized on the straight-line method over the related patent term. In the event a patent is abandoned, the net book value of the patent is written off. Impairment or Disposal of Long-Lived Assets The Company assesses the impairment of patents and other long-lived assets under accounting standards for the impairment or disposal of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if its carrying amount is not recoverable through its undiscounted cash flows and measures the impairment loss based on the difference between the carrying amount and fair value. Warrant Liability The Company recognizes the fair value of the warrants as of the date of the warrant grant using the binomial lattice valuation model. At each subsequent reporting date, the Company again measures the fair value of the warrants, and records a change to the warrant liability as appropriate, and the change is reported in the statement of operations. Revenue Recognition Product Sales Grant Revenue : Deferred Revenue : Research and Development All research and development costs, payments to laboratories and research consultants are expensed when incurred. Advertising Expenses Advertising expenses are charged to activities when incurred. Advertising expenses amounted to approximately $ 200,000 94,000 84,000 30,000 Income Taxes Income taxes are accounted for under the asset and liability method prescribed by accounting standards for accounting for income taxes. Deferred income taxes are recorded for temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities reflect the tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax asset will not be realized. Under Section 382 of the Internal Revenue Code, the net operating losses generated prior to the previously completed reverse merger may be limited due to the change in ownership. Additionally, net operating losses generated subsequent to the reverse merger may be limited in the event of changes in ownership. The Company follows accounting standards associated with uncertain tax positions. The Company had no unrecognized tax benefits at September 30, 2015 or December 31, 2014. The Company files tax returns in the U.S. federal and state jurisdictions. The Company currently has no open years prior to December 31, 2011 and has no income tax related penalties or interest for the periods presented in these financial statements. The Company's European subsidiary annually files a corporate tax return, VAT return and a trade tax return in Germany. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Significant estimates in these financials are the valuation of options granted, the valuation of preferred shares issued as stock dividends and valuation methods used to determine the fair value of the warrant liability. Concentration of Credit Risk The Company from time to time maintains cash balances with financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation. Management monitors the soundness of these institutions in an effort to minimize its collection risk of these balances. As of September 30, 2015, four 54 three 53 16 one U.S. government grant agency 19 one Financial Instruments The carrying values of cash and cash equivalents, short-term investments, accounts payable, notes payable, and other debt obligations approximate their fair values due to their short-term nature. Net Loss Per Common Share Basic earnings per share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using the treasury stock method on the basis of the weighted-average number of shares of common stock plus the dilutive effect of potential common shares outstanding during the period. Dilutive potential common shares include outstanding warrants, stock options and restricted shares. The computation of diluted earnings per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings (See Note 6). Stock-Based Compensation The Company accounts for its stock-based compensation under the recognition requirements of accounting standards for accounting for stock-based compensation, for employees and directors whereby each option granted is valued at fair market value on the date of grant. Under these accounting standards, the fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model. The Company also follows the guidance of accounting standards for accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services for equity instruments issued to consultants. Upon exercise of options, the Company's policy is to issue new shares of its common stock. Effects of Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40). The ASU requires all entities to evaluate for the existence of conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the issuance date of the financial statements. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2014-15 will have a significant impact on its consolidated financial statements but may impact the Company's footnote disclosures. In May 2014, the FASB issued ASU 2014-09, “Revenue with Contracts from Customers.” ASU 2014-09 supersedes the current revenue recognition guidance, including industry-specific guidance. The ASU introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In August 2014, the FASB issued ASU 2015-14 which deferred the effective date by one year. Accordingly, the updated guidance is effective for public entities for interim and annual periods beginning after December 15, 2017 and early adoption is permitted as of the beginning of an interim or annual reporting period beginning after December 31, 2016. In July 2015, the FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory.” ASU 2015-11 clarifies current guidance regarding the valuation of inventory. The ASU requires that inventory be measured at the lower of cost or net realizable value. This ASU does not apply to inventory that is measured using the last-in, first-out (LIFO) or the retail inventory method. The updated guidance is effective for public entities for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2015-11 will have a significant impact on its consolidated financial statements. Shipping and Handling Costs The cost of shipping product to customers and distributors is typically borne by the customer or distributor. The Company records other shipping and handling costs in Research and Development. Total freight costs amounted to approximately $ 98,000 77,000 32,000 29,000 Reclassifications Certain reclassifications have been made to the September 30, 2014 financial statements in order to conform to the September 30, 2015 financial statement presentation. There was no change in the reported amount of the accumulated deficit as a result of these reclassifications.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	9 Months Ended
	Sep. 30, 2015
STOCKHOLDERS' EQUITY [Abstract]
STOCKHOLDERS' EQUITY	3. STOCKHOLDERS' EQUITY Preferred Stock In December 2014, the Company amended its articles of incorporation to reduce the total number of authorized shares of preferred stock. The amended articles of incorporation authorize the issuance of up to 5,000,000 During the nine months ended September 30, 2014, the Company recorded non-cash stock dividends totaling $ 3,769,819 6,072.18 135,303 Common Stock On January 14, 2015, the Company closed an underwritten public offering (the “Offering”) consisting of 1,250,000 8.25 10,312,500 The Company received net proceeds from the Offering of approximately $ 9,409,000 The Company conducted the Offering pursuant to a registration statement on Form S-1 (File No. 333-199762), which was declared effective by the U.S. Securities and Exchange Commission (the “ ” In connection with the Offering, on January 8, 2015, the Company entered into underwriting agreements with Brean Capital, LLC and H.C. Wainwright & Co., LLC (the “Representatives”), who acted as book-running managers and as representatives of the underwriters in the Offering. In connection with the successful completion of the Offering, the underwriters received aggregate discounts and commissions of 6 30,000 These warrants had a fair value of approximately $ 30,000 five 120 85,000 On July 29, 2015, the Company's registration statement on Form S-3, as filed with the SEC on July 23, 2015, was declared effective using a “shelf” registration process. Under this shelf registration statement, the Company may issue, in one or more offerings, any combination of common stock, preferred stock, senior or subordinated debt securities, warrants, or units, up to a total dollar amount of $ 100 Stock-Based Compensation During the nine months ended September 30, 2015, the Company incurred stock-based compensation expense due to the issuance of stock options and amortization of unvested stock options. The aggregate expense for the nine months and three months ended September 30, 2015 is approximately $ 260,000 150,000 181,000 130,000 79,000 20,000 The summary of the stock option activity for the nine months ended September 30, 2015 is as follows: Weighted Average Weighted Exercise Average Shares per Share Life (Years) Outstanding, January 1, 2015 2,302,187 $ 5.37 6.1 Granted 660,000 7.90 9.3 Forfeited (164,587 ) 5.18 8.5 Exercised (275,114 ) 1.62 3.3 Expired — — — Outstanding, September 30, 2015 2,522,486 6.45 6.4 Exercisable, September 30, 2015 1,616,228 $ 6.22 5.1 The fair value of each stock option was estimated using the Black-Scholes pricing model which takes into account as of the grant date the exercise price (ranging from $ 5.20 11.48 5 10 28 72 0 0.86 1.95 The intrinsic value is calculated at the difference between the market value as of September 30, 2015 of $ 6.31 Options Outstanding Number Weighted Weighted Range of Outstanding at Average Average Aggregate Exercise September 30, Exercise Remaining Intrinsic Price 2015 Price Life (Years) Value $ 5.20 11.48 2,522,486 $ 6.45 6.40 $ 4,762,886 Options Exercisable Number Weighted Exercisable at Average Aggregate September 30, Exercise Intrinsic 2015 Price Value 1,616,228 $ 6.22 $ 4,241,896 The summary of the status of the Company's non-vested options for the nine months ended September 30, 2015 is as follows: Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2015 874,530 $ 1.37 Granted 660,000 3.30 Forfeited (176,746 ) 0.17 Vested (451,526 ) 0.13 Non-vested, September 30, 2015 906,258 $ 2.36 As of September 30, 2015, the Company had approximately $ 426,000 which will be amortized over 0.81 years 566,000 The grant date fair value of these unvested options amounted to approximately $ 1,388,000 achieved. In addition, in April 2015, the Board of Directors also granted 960,000 7,747,200 240,000 1,936,000 As of September 30, 2015, the Company has the following warrants to purchase common stock outstanding: Number of Shares Warrant Exercise Warrant To be Purchased Price per Share Expiration Date 19,600 $ 2.500 October 22, 2015 7,840 $ 3.125 October 22, 2015 6,535 $ 3.750 October 22, 2015 20,000 $ 2.500 November 19, 2015 8,000 $ 3.125 November 19, 2015 6,667 $ 3.750 November 19, 2015 10,000 $ 2.500 February 15, 2016 52,000 $ 3.125 February 15, 2016 10,001 $ 3.750 February 15, 2016 9,605 $ 31.25 October 24, 2016 40,001 $ 4.375 February 10, 2017 133,600 $ 3.750 June 21, 2018 118,000 $ 3.150 September 30, 2018 48,960 $ 7.500 March 11, 2019 736,000 $ 7.813 March 11, 2019 30,000 $ 9.900 January 14, 2020 1,256,809

WARRANT LIABILITY

WARRANT LIABILITY	9 Months Ended
	Sep. 30, 2015
WARRANT LIABILITY [Abstract]
WARRANT LIABILITY	4. WARRANT LIABILITY In connection with its $ 10,200,000 816,000 The Company recognized an initial warrant liability for the warrants issued in connection with the March 2014 Offering. The initial warrant liability recognized on the related warrants totaled $ 862,920 6.00 6.41 817,578 771,328 208,080 The assumptions used in connection with the valuation of warrants issued utilizing the binomial lattice valuation model are as follows: September September Number of shares underlying the warrants 736,000 816,000 Exercise price $ 7.81 $ 7.81 Volatility 72.3 % 28.3 % Risk-free interest rate 1.02 % 1.60 % Expected dividend yield 0 0 Expected warrant life (years) 3.44 4.44 Stock Price $ 6.41 $ 5.60

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	5. COMMITMENTS AND CONTINGENCIES Employment Agreements On July 14, 2015, CytoSorbents Corporation entered into executive employment agreements with its principal executives, Dr. Phillip P. Chan, President and Chief Executive Officer, Vincent Capponi, Chief Operating Officer, and Kathleen P. Bloch, Chief Financial Officer. Each of these agreements has an initial term of three Litigation The Company is from time to time subject to claims and litigation arising out of the ordinary course of business. The Company intends to defend vigorously against any future claims and litigation. The Company is not currently a party to any legal proceedings. Royalty Agreements Pursuant to an agreement dated August 11, 2003, an existing investor agreed to make a $ 4 3 ® 74,000 68,000 31,000 30,000 License Agreements In March 2006, the Company entered into a license agreement which provides the Company the exclusive right to use its patented technology and proprietary know how relating to adsorbent polymers for a period of 18 2.5 5 99,000 57,000 42,000 27,000

NET LOSS PER SHARE

NET LOSS PER SHARE	9 Months Ended
	Sep. 30, 2015
NET LOSS PER SHARE [Abstract]
NET LOSS PER SHARE	6. NET LOSS PER SHARE Basic loss per share and diluted loss per share for the nine months ended September 30, 2015 and 2014 have been computed by dividing the net loss for each respective period by the weighted average number of shares outstanding during that period. All outstanding warrants and options representing approximately 3,779,295 3,881,960 0 9,379,000

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2015
SUBSEQUENT EVENT [Abstract]
SUBSEQUENT EVENT	7. SUBSEQUENT EVENTS In October 2015, the Company was awarded a Phase II Small Business Innovation Research (“SBIR”) contract by the National Heart, Lung, and Blood Institute (“NHLBI”), a division of the National Institutes of Health (“NIH”) to help advance the Company's HemoDefend™ blood purification technology towards commercialization for the purification of packed red blood cell (pRBC) transfusions. The contract, entitled “pRBCs Contaminant Removal with Porous Polymer Beads”, provides for maximum funding of $ 1,521,671 two On November 4, 2015, the Company entered into a Controlled Equity OfferingSM Sales Agreement (the “Sales Agreement”) with Cantor Fitzgerald and Co., as agent (“Cantor ”), pursuant to which the Company may offer to sell, from time to time through Cantor, shares of the Company's common stock, par value $ 0.001 25,000,000 Under the Sales Agreement, Cantor may sell Shares by any method permitted by law and deemed to be an “at the market offering” as defined in Rule 415 promulgated under the Securities Act of 1933, as amended, including sales made directly on The NASDAQ Capital Market, on any existing trading market for the Common Stock or to or through a market maker. In addition, under the Sales Agreement, Cantor may sell the Shares by any other method permitted by law, including in privately negotiated transactions. The Company may instruct Cantor not to sell Shares if the sales cannot be effected at or above the price designated by the Company from time to time. The Company is not obligated to make any sales of Shares under the Sales Agreement, and if it elects to make any sales, the Company can set a minimum sales price for the Shares. The offering of Shares pursuant to the Sales Agreement will terminate upon the earlier of (a) the sale of all the shares subject to the Sales Agreement of (b) the termination of the Sales Agreement by Cantor or the Company, as permitted therein. The Company will pay a commission rate of 3.0 50,000 The Company intends to use the net proceeds raised through any “at the market” sales for research and development activities, which include the funding of additional clinical studies and costs of obtaining regulatory approvals in countries not covered by the CE Mark, capital expenditures and other costs necessary to expand production capacity, support of various sales and marketing efforts, product development and general working capital purposes.

PRINCIPAL BUSINESS ACTIVITY A14

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2015
PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Nature of Business	Nature of Business The Company is a leader in critical care immunotherapy commercializing its CytoSorb® blood purification technology to reduce deadly uncontrolled inflammation in hospitalized patients around the world with the goal of preventing or treating multiple organ failure in life-threatening illnesses. The Company, through its subsidiary CytoSorbents Medical Inc. (formerly known as CytoSorbents, Inc.), is engaged in the research, development and commercialization of medical devices with its blood purification technology platform which incorporates a proprietary adsorbent, porous polymer technology. The Company, through its European Subsidiary, conducts sales and marketing related operations for the CytoSorb ® ®, t ® The technology is based upon biocompatible, highly porous polymer sorbent beads that can actively remove toxic substances from blood and other bodily fluids by pore capture and surface absorption. The Company has numerous products under development based upon this unique blood purification technology, which is protected by 32 issued U.S. patents and multiple applications pending, including HemoDefend™, ContrastSorb, DrugSorb, and others, with multiple patent applications pending both in the United States and internationally. The Company's intellectual property consists of composition of matter, materials, method of production systems incorporating the technology, and multiple medical uses with expiration dates ranging from two 11
Reverse Stock Split	Reverse Stock Split On December 3, 2014, the Company effected a twenty-five
Stock Market Listing	Stock Market Listing On December 17, 2014 the Company's common stock was approved for listing on the NASDAQ Capital Market (“NASDAQ”), and it began trading on NASDAQ on December 23, 2014 under the symbol “CTSO”. Previously, the Company's common stock traded in the over-the-counter-market on the OTC Bulletin Board.
Basis of Consolidation and Foreign Currency Translation	Basis of Consolidation and Foreign Currency Translation The consolidated financial statements include the accounts of the Parent, CytoSorbents Corporation, and its wholly-owned subsidiaries, CytoSorbents Medical, Inc. and CytoSorbents Europe GmbH. All significant intercompany transactions and balances have been eliminated in consolidation. Translation gains and losses resulting from the process of remeasuring into the U.S. dollar, the foreign currency financial statements of the European subsidiary, for which the U.S. dollar is the functional currency, are included in operations. Foreign currency transaction losses included in net loss amounted to $ 315,594 234,089
Cash and Cash Equivalents	Cash and Cash Equivalents The Company considers
Grants and Accounts Receivable	Grants and Accounts Receivable Grants receivable represent amounts due from U.S. government agencies. Accounts receivable are unsecured, non-interest bearing customer obligations due under normal trade terms. The Company sells its devices to various hospitals and distributors. The Company performs ongoing credit evaluations of customers' financial condition. Management reviews accounts receivable periodically to determine collectability. Balances that are determined to be uncollectible are written off to the allowance for doubtful accounts.
Short-Term Investments	Short-Term Investments Short-term investments include certificates of deposit with original maturities of greater than three months. The cost of the certificates of deposit approximates fair value.
Inventories	Inventories Inventories are valued at the lower of cost or market. At September 30, 2015 and December 31, 2014, the Company's inventory was comprised of finished goods, which amounted to $ 473,452 142,693 791,243 326,047 72,490 68,826
Property and Equipment	Property and Equipment Property and equipment are recorded at cost less accumulated depreciation. Depreciation of property and equipment is provided for by the straight-line method over the estimated useful lives of the related assets. Leasehold improvements are amortized over the lesser of their economic useful lives or the term of the related leases. Gains and losses on depreciable assets retired or sold are recognized in the statements of operations in the year of disposal. Repairs and maintenance expenditures are expensed as incurred.
Patents	Patents Legal costs incurred to establish and successfully defend patents are capitalized. When patents are issued, capitalized costs are amortized on the straight-line method over the related patent term. In the event a patent is abandoned, the net book value of the patent is written off.
Impairment or Disposal of Long-Lived Assets	Impairment or Disposal of Long-Lived Assets The Company assesses the impairment of patents and other long-lived assets under accounting standards for the impairment or disposal of long-lived assets whenever events or changes in circumstances indicate that the carrying value may not be recoverable. For long-lived assets to be held and used, the Company recognizes an impairment loss only if its carrying amount is not recoverable through its undiscounted cash flows and measures the impairment loss based on the difference between the carrying amount and fair value.
Warrant Liability	Warrant Liability The Company recognizes the fair value of the warrants as of the date of the warrant grant using the binomial lattice valuation model. At each subsequent reporting date, the Company again measures the fair value of the warrants, and records a change to the warrant liability as appropriate, and the change is reported in the statement of operations.
Revenue Recognition	Revenue Recognition Product Sales Grant Revenue : Deferred Revenue :
Research and Development	Research and Development All research and development costs, payments to laboratories and research consultants are expensed when incurred.
Advertising Expenses	Advertising Expenses Advertising expenses are charged to activities when incurred. Advertising expenses amounted to approximately $ 200,000 94,000 84,000 30,000
Income Taxes	Income Taxes Income taxes are accounted for under the asset and liability method prescribed by accounting standards for accounting for income taxes. Deferred income taxes are recorded for temporary differences between financial statement carrying amounts and the tax basis of assets and liabilities. Deferred tax assets and liabilities reflect the tax rates expected to be in effect for the years in which the differences are expected to reverse. A valuation allowance is provided if it is more likely than not that some or all of the deferred tax asset will not be realized. Under Section 382 of the Internal Revenue Code, the net operating losses generated prior to the previously completed reverse merger may be limited due to the change in ownership. Additionally, net operating losses generated subsequent to the reverse merger may be limited in the event of changes in ownership. The Company follows accounting standards associated with uncertain tax positions. The Company had no unrecognized tax benefits at September 30, 2015 or December 31, 2014. The Company files tax returns in the U.S. federal and state jurisdictions. The Company currently has no open years prior to December 31, 2011 and has no income tax related penalties or interest for the periods presented in these financial statements. The Company's European subsidiary annually files a corporate tax return, VAT return and a trade tax return in Germany.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. Actual results could differ from these estimates. Significant estimates in these financials are the valuation of options granted, the valuation of preferred shares issued as stock dividends and valuation methods used to determine the fair value of the warrant liability.
Concentration of Credit Risk	Concentration of Credit Risk The Company from time to time maintains cash balances with financial institutions in excess of amounts insured by the Federal Deposit Insurance Corporation. Management monitors the soundness of these institutions in an effort to minimize its collection risk of these balances. As of September 30, 2015, four 54 three 53 16 one U.S. government grant agency 19 one
Financial Instruments	Financial Instruments The carrying values of cash and cash equivalents, short-term investments, accounts payable, notes payable, and other debt obligations approximate their fair values due to their short-term nature.
Net Loss Per Common Share	Net Loss Per Common Share Basic earnings per share is computed by dividing income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is computed using the treasury stock method on the basis of the weighted-average number of shares of common stock plus the dilutive effect of potential common shares outstanding during the period. Dilutive potential common shares include outstanding warrants, stock options and restricted shares. The computation of diluted earnings per share does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings (See Note 6).
Stock-Based Compensation	Stock-Based Compensation The Company accounts for its stock-based compensation under the recognition requirements of accounting standards for accounting for stock-based compensation, for employees and directors whereby each option granted is valued at fair market value on the date of grant. Under these accounting standards, the fair value of each option is estimated on the date of grant using the Black-Scholes option pricing model. The Company also follows the guidance of accounting standards for accounting for equity instruments that are issued to other than employees for acquiring, or in conjunction with selling, goods or services for equity instruments issued to consultants. Upon exercise of options, the Company's policy is to issue new shares of its common stock.
Effects of Recent Accounting Pronouncements	Effects of Recent Accounting Pronouncements In August 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40). The ASU requires all entities to evaluate for the existence of conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the issuance date of the financial statements. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2014-15 will have a significant impact on its consolidated financial statements but may impact the Company's footnote disclosures. In May 2014, the FASB issued ASU 2014-09, “Revenue with Contracts from Customers.” ASU 2014-09 supersedes the current revenue recognition guidance, including industry-specific guidance. The ASU introduces a five-step model to achieve its core principal of the entity recognizing revenue to depict the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In August 2014, the FASB issued ASU 2015-14 which deferred the effective date by one year. Accordingly, the updated guidance is effective for public entities for interim and annual periods beginning after December 15, 2017 and early adoption is permitted as of the beginning of an interim or annual reporting period beginning after December 31, 2016. In July 2015, the FASB issued ASU 2015-11, “Inventory: Simplifying the Measurement of Inventory.” ASU 2015-11 clarifies current guidance regarding the valuation of inventory. The ASU requires that inventory be measured at the lower of cost or net realizable value. This ASU does not apply to inventory that is measured using the last-in, first-out (LIFO) or the retail inventory method. The updated guidance is effective for public entities for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The Company is currently evaluating the impact of the updated guidance, but the Company does not believe that the adoption of ASU 2015-11 will have a significant impact on its consolidated financial statements.
Shipping and Handling Costs	Shipping and Handling Costs The cost of shipping product to customers and distributors is typically borne by the customer or distributor. The Company records other shipping and handling costs in Research and Development. Total freight costs amounted to approximately $ 98,000 77,000 32,000 29,000
Reclassifications	Reclassifications Certain reclassifications have been made to the September 30, 2014 financial statements in order to conform to the September 30, 2015 financial statement presentation. There was no change in the reported amount of the accumulated deficit as a result of these reclassifications.

STOCKHOLDERS' EQUITY (Tables)

STOCKHOLDERS' EQUITY (Tables)	9 Months Ended
	Sep. 30, 2015
STOCKHOLDERS' EQUITY [Abstract]
Summary of Stock Option Activity	Weighted Average Weighted Exercise Average Shares per Share Life (Years) Outstanding, January 1, 2015 2,302,187 $ 5.37 6.1 Granted 660,000 7.90 9.3 Forfeited (164,587 ) 5.18 8.5 Exercised (275,114 ) 1.62 3.3 Expired — — — Outstanding, September 30, 2015 2,522,486 6.45 6.4 Exercisable, September 30, 2015 1,616,228 $ 6.22 5.1
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	Options Outstanding Number Weighted Weighted Range of Outstanding at Average Average Aggregate Exercise September 30, Exercise Remaining Intrinsic Price 2015 Price Life (Years) Value $ 5.20 11.48 2,522,486 $ 6.45 6.40 $ 4,762,886 Options Exercisable Number Weighted Exercisable at Average Aggregate September 30, Exercise Intrinsic 2015 Price Value 1,616,228 $ 6.22 $ 4,241,896
Summary of Status of Non-Vested Options	Weighted Average Grant Date Shares Fair Value Non-vested, January 1, 2015 874,530 $ 1.37 Granted 660,000 3.30 Forfeited (176,746 ) 0.17 Vested (451,526 ) 0.13 Non-vested, September 30, 2015 906,258 $ 2.36
Warrants to Purchase Common Stock	Number of Shares Warrant Exercise Warrant To be Purchased Price per Share Expiration Date 19,600 $ 2.500 October 22, 2015 7,840 $ 3.125 October 22, 2015 6,535 $ 3.750 October 22, 2015 20,000 $ 2.500 November 19, 2015 8,000 $ 3.125 November 19, 2015 6,667 $ 3.750 November 19, 2015 10,000 $ 2.500 February 15, 2016 52,000 $ 3.125 February 15, 2016 10,001 $ 3.750 February 15, 2016 9,605 $ 31.25 October 24, 2016 40,001 $ 4.375 February 10, 2017 133,600 $ 3.750 June 21, 2018 118,000 $ 3.150 September 30, 2018 48,960 $ 7.500 March 11, 2019 736,000 $ 7.813 March 11, 2019 30,000 $ 9.900 January 14, 2020 1,256,809

WARRANT LIABILITY (Tables)

WARRANT LIABILITY (Tables)	9 Months Ended
	Sep. 30, 2015
WARRANT LIABILITY [Abstract]
Schedule of Warrant Liability	September September Number of shares underlying the warrants 736,000 816,000 Exercise price $ 7.81 $ 7.81 Volatility 72.3 % 28.3 % Risk-free interest rate 1.02 % 1.60 % Expected dividend yield 0 0 Expected warrant life (years) 3.44 4.44 Stock Price $ 6.41 $ 5.60

BASIS OF PRESENTATION (Details)

BASIS OF PRESENTATION (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
BASIS OF PRESENTATION [Abstract]
Accumulated deficit	$ (130,524,185)		$ (130,524,185)		$ (124,394,120)
Net loss	$ (2,847,441)	$ (1,498,350)	$ (6,130,065)	$ (4,327,035)

PRINCIPAL BUSINESS ACTIVITY A18

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Dec. 03, 2014	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Stockholders' Equity Note, Stock Split, Conversion Ratio	25
Gain (loss) on foreign currency transaction		$ 70,993	$ (202,797)	$ (315,594)	$ (234,089)
Minimum [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Amortization Period				2 years
Maximum [Member]
Principal Business Activity and Summary of Significant Accounting Policies [Line Items]
Amortization Period				11 years

PRINCIPAL BUSINESS ACTIVITY A19

PRINCIPAL BUSINESS ACTIVITY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015USD ($)item	Sep. 30, 2014USD ($)item	Sep. 30, 2015USD ($)item	Sep. 30, 2014USD ($)item	Dec. 31, 2014USD ($)item
Concentration Risk [Line Items]
Inventory of finished goods	$ 473,452		$ 473,452		$ 142,693
Inventory of work in progress	791,243		791,243		326,047
Inventory of raw materials	72,490		72,490		$ 68,826
Advertising	84,000	$ 30,000	200,000	$ 94,000
Freight costs	$ 32,000	$ 29,000	$ 98,000	$ 77,000
Grant and accounts receivable[Member] | Credit concentration risk [Member] | Distributor [Member]
Concentration Risk [Line Items]
Number of distributors | item	4		4		3
Concentration risk percentage			54.00%		53.00%
Revenue [Member] | Customer concentration risk [Member] | U.S. government agency [Member]
Concentration Risk [Line Items]
Concentration risk percentage			16.00%	19.00%
Number of government agencies | item	1	1	1	1

STOCKHOLDERS' EQUITY (Preferred

STOCKHOLDERS' EQUITY (Preferred Stock) (Details) - USD ($)	9 Months Ended
	Sep. 30, 2014	Sep. 30, 2015	Dec. 31, 2014
Stockholders Equity [Line Items]
Preferred Stock, shares authorized		5,000,000	5,000,000
Preferred stock dividends	$ 3,769,819
Preferred stock, shares issued		0	0
Preferred stock, shares outstanding		0	0
Series A Preferred Stock [Member]
Stockholders Equity [Line Items]
Issuance of shares of stock as a dividend	135,303
Series B Preferred Stock [Member]
Stockholders Equity [Line Items]
Issuance of shares of stock as a dividend	6,072.18

STOCKHOLDERS' EQUITY (Common St

STOCKHOLDERS' EQUITY (Common Stock) (Details) - USD ($)	Jan. 14, 2015	Sep. 30, 2015	Sep. 30, 2014	Jul. 29, 2015	Mar. 11, 2014
Stockholders Equity [Line Items]
Shares of common stock issued under underwritten public offering	1,250,000
Share price	$ 8.25	$ 6.31			$ 6
Value of common stock issued under underwritten public offering	$ 10,312,500	$ 9,408,584
Proceeds from issuance of common stock	9,409,000	$ 9,408,584	$ 9,751,455
Out-of-pocket expenses	$ 85,000
Aggregate registered amount for offerings				$ 100,000,000
Representatives' Warrants [Member]
Stockholders Equity [Line Items]
Underwriters discounts and commissions as a percentage of the gross proceeds of the sale of the shares in the Offering	6.00%
Number of securities called by warrants	30,000
Fair value of warrants	$ 30,000
Exercisable period	5 years
Exercise price as percentage of public offering price	120.00%

STOCKHOLDERS' EQUITY (Stock-Bas

STOCKHOLDERS' EQUITY (Stock-Based Compensation) (Details) - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	Apr. 30, 2015	Sep. 30, 2015	Sep. 30, 2015	Jan. 14, 2015	Mar. 11, 2014
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 150,000	$ 260,000
Unrecognized compensation cost related to stock option		426,000	426,000
Non-vested options expected to vest	566,000
Grant date fair value of these unvested options		$ 1,388,000	$ 1,388,000
Share price		$ 6.31	$ 6.31	$ 8.25	$ 6
Research and development [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 20,000	$ 79,000
General and administrative [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation expense		$ 130,000	$ 181,000
Stock options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected volatility rate, minimum			28.00%
Expected volatility rate, maximum			72.00%
Expected dividends			0.00%
Risk free interest rate, minimum			0.86%
Risk free interest rate, maximum			1.95%
Amortization period for total unrecognized compensation cost			9 months 22 days
Restricted Stock [Member] | Employee [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of awards granted	960,000
Value of awards granted			$ 7,747,200
Restricted Stock [Member] | Board of Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of awards granted	240,000
Value of awards granted			$ 1,936,000
Minimum [Member] | Stock options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price		$ 5.20	$ 5.20
Expected life			5 years
Maximum [Member] | Stock options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Exercise price		$ 11.48	$ 11.48
Expected life			10 years

STOCKHOLDERS' EQUITY (Summary o

STOCKHOLDERS' EQUITY (Summary of Stock Option Activity) (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Dec. 31, 2014
Shares
Outstanding, January 1, 2015	2,302,187
Granted	660,000
Forfeited	(164,587)
Exercised	(275,114)
Expired
Outstanding September 30, 2015	2,522,486	2,302,187
Exercisable, September 30, 2015	1,616,228
Weighted Average Exercise Price per Share
Outstanding, January 1, 2015	$ 5.37
Granted	7.90
Forfeited	5.18
Exercised	$ 1.62
Expired
Outstanding September 30, 2015	$ 6.45	$ 5.37
Exercisable, September 30, 2015	$ 6.22
Weighted Average Remaining Contractual Life (Years)
Outstanding	6 years 4 months 24 days	6 years 1 month 6 days
Granted	9 years 3 months 18 days
Forfeited	8 years 6 months
Exercised	3 years 3 months 18 days
Exercisable, September 30, 2015	5 years 1 month 6 days

STOCKHOLDERS' EQUITY (Schedule

STOCKHOLDERS' EQUITY (Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range) (Details) - $5.20 - $11.48 [Member]	9 Months Ended
	Sep. 30, 2015USD ($)$ / sharesshares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Price, Lower Range Limit	$ 5.20
Exercise Price, Upper Range Limit	$ 11.48
Options Outstanding
Number Outstanding at September 30, 2015 | shares	2,522,486
Weighted Average Exercise Price	$ 6.45
Weighted Average Remaining Life (Years)	6 years 4 months 24 days
Aggregate Intrinsic Value | $	$ 4,762,886
Options Exercisable
Number Exercisable at September 30, 2015 | shares	1,616,228
Weighted Average Exercise Price	$ 6.22
Aggregate Intrinsic Value | $	$ 4,241,896

STOCKHOLDERS' EQUITY (Summary25

STOCKHOLDERS' EQUITY (Summary of Status of Non-Vested Options) (Details)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Shares
Non-vested, January 1, 2015 | shares	874,530
Granted | shares	660,000
Forfeited | shares	(176,746)
Vested | shares	(451,526)
Non-vested, September 30, 2015 | shares	906,258
Weighted Average Grant Date Fair Value
Non-vested, January 1, 2015	$ 1.37
Granted	3.30
Forfeited	0.17
Vested	0.13
Non-vested, September 30, 2015	$ 2.36

STOCKHOLDERS' EQUITY (Warrants

STOCKHOLDERS' EQUITY (Warrants to Purchase Common Stock) (Details)	9 Months Ended
	Sep. 30, 2015$ / sharesshares
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	1,256,809
Warrant 1
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	19,600
Warrant Exercise Price per Share | $ / shares	$ 2.500
Warrant Expiration Date	October 22, 2015
Warrant 2
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	7,840
Warrant Exercise Price per Share | $ / shares	$ 3.125
Warrant Expiration Date	October 22, 2015
Warrant 3
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	6,535
Warrant Exercise Price per Share | $ / shares	$ 3.750
Warrant Expiration Date	October 22, 2015
Warrant 4
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	20,000
Warrant Exercise Price per Share | $ / shares	$ 2.500
Warrant Expiration Date	November 19, 2015
Warrant 5
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	8,000
Warrant Exercise Price per Share | $ / shares	$ 3.125
Warrant Expiration Date	November 19, 2015
Warrant 6
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	6,667
Warrant Exercise Price per Share | $ / shares	$ 3.750
Warrant Expiration Date	November 19, 2015
Warrant 7
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	10,000
Warrant Exercise Price per Share | $ / shares	$ 2.500
Warrant Expiration Date	February 15, 2016
Warrant 8
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	52,000
Warrant Exercise Price per Share | $ / shares	$ 3.125
Warrant Expiration Date	February 15, 2016
Warrant 9
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	10,001
Warrant Exercise Price per Share | $ / shares	$ 3.750
Warrant Expiration Date	February 15, 2016
Warrant 10
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	9,605
Warrant Exercise Price per Share | $ / shares	$ 31.25
Warrant Expiration Date	October 24, 2016
Warrant 11
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	40,001
Warrant Exercise Price per Share | $ / shares	$ 4.375
Warrant Expiration Date	February 10, 2017
Warrant 12
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	133,600
Warrant Exercise Price per Share | $ / shares	$ 3.750
Warrant Expiration Date	June 21, 2018
Warrant 13
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	118,000
Warrant Exercise Price per Share | $ / shares	$ 3.150
Warrant Expiration Date	September 30, 2018
Warrant 14
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	48,960
Warrant Exercise Price per Share | $ / shares	$ 7.500
Warrant Expiration Date	March 11, 2019
Warrant 15
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	736,000
Warrant Exercise Price per Share | $ / shares	$ 7.813
Warrant Expiration Date	March 11, 2019
Warrant 16
Class of Warrant or Right [Line Items]
Number of Shares To be Purchased	30,000
Warrant Exercise Price per Share | $ / shares	$ 9.900
Warrant Expiration Date	January 14, 2020

WARRANT LIABILITY (Details)

WARRANT LIABILITY (Details) - USD ($)	Mar. 11, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Jan. 14, 2015
Class of Warrant or Right [Line Items]
Stock Price	$ 6	$ 6.31		$ 6.31		$ 8.25
Fair value of warrant liability	$ 862,920				$ 862,920
Increase (decrease) in fair value of warrant liability		$ 771,328	$ (234,600)	$ (817,578)	$ (208,080)
Warrants [Member]
Class of Warrant or Right [Line Items]
Warrants offered	10,200,000
Number of securities called by warrants	816,000	736,000	816,000	736,000	816,000
Exercise price		$ 7.81	$ 7.81	$ 7.81	$ 7.81
Volatility				72.30%	28.30%
Risk free interest rate				1.02%	1.60%
Expected dividend yield				0.00%	0.00%
Expected warrant life (years)				3 years 5 months 8 days	4 years 5 months 8 days
Stock Price		$ 6.41	$ 5.60	$ 6.41	$ 5.60

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Jul. 14, 2015	Aug. 11, 2013	Mar. 31, 2006	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Commitments and Contingencies Disclosure [Line Items]
Initial term of employment agreement	3 years
Royalty Agreements [Member]
Commitments and Contingencies Disclosure [Line Items]
Equity investment by an existing investor		$ 4,000,000
Future royalty payment percentage on gross gross revenue		3.00%
Royalty cost				$ 31,000	$ 30,000	$ 74,000	$ 68,000
License Agreement [Member]
Commitments and Contingencies Disclosure [Line Items]
Term of License Agreement			18 years
Royalty rate, lower limit			2.50%
Royalty rate, upper limit			5.00%
Royalty cost				$ 42,000	$ 27,000	$ 99,000	$ 57,000

NET LOSS PER SHARE (Details)

NET LOSS PER SHARE (Details) - shares	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Stock Options and Warrants [Member]
Earnings Per Share Basic [Line Items]
Number of shares excluded from the calculation of diluted loss per share	3,779,295	3,881,960
Convertible Series A and Series B Preferred Stock [Member]
Earnings Per Share Basic [Line Items]
Number of shares excluded from the calculation of diluted loss per share	0	9,379,000

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - USD ($)	Nov. 04, 2015	Oct. 31, 2015
National Heart, Lung, and Blood Institute [Member]
SUBSEQUENT EVENT [Line Item]
Maximum funding to be received under the contract		$ 1,521,671
Period over which funding to be received under the contract		2 years
Cantor Fitzgerald and Co. [Member]
SUBSEQUENT EVENT [Line Item]
Common Stock, Par Value	$ 0.001
Aggregate offering price	$ 25,000,000
Commission rate as a percentage of the aggregate gross proceeds	3.00%
Maximum amount to be reimbursed for specified expenses in connection with entering into the Sales Agreement	$ 50,000